Federal Register / Vol. 61, No. 200 / Tuesday, October 15, 1996 / Rules and Regulations 53623

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Rate for

Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in November 1996.

EFFECTIVE DATE: November 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024 (202–326–4179

for TTY and TDD).

SUPPLEMENTARY INFORMATION: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest rates

and factors. These interest rates and

factors are intended to reflect current

conditions in the financial and annuity

markets.

Two sets of interest rates and factors

are prescribed, one set for the valuation

of benefits to be paid as annuities and

one set for the valuation of benefits to

be paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest rates and

factors for valuing benefits in plans with

valuation dates during November 1996.

For annuity benefits, the interest rates

will be 6.20 percent for the first 20 years

following the valuation date and 4.75

percent thereafter. For benefits to be

paid as lump sums, the interest

assumptions to be used by the PBGC

will be 5.00 percent for the period

during which benefits are in pay status,

4.25 percent during the seven-year

period directly preceding the benefit’s

placement in pay status, and 4.00

percent during any other years

preceding the benefit’s placement in pay

status. The annuity interest assumptions

represent a decrease (from those in

effect for October 1996) of .10 percent

for the first 20 years following the

valuation date and are otherwise

unchanged. The lump sum interest

assumptions represent a decrease (from

those in effect for October 1996) of .25

percent for the period during which

benefits are in pay status and for the

seven years directly preceding that

period; they are otherwise unchanged.

The PBGC has determined that notice

and public comment on this amendment

are impracticable and contrary to the

public interest. This finding is based on

the need to determine and issue new

interest rates and factors promptly so

that the rates and factors can reflect, as

accurately as possible, current market

conditions.

Because of the need to provide

immediate guidance for the valuation of

benefits in plans with valuation dates

during November 1996, the PBGC finds

that good cause exists for making the

rates and factors set forth in this

amendment effective less than 30 days

after publication.

The PBGC has determined that this

action is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866.

Because no general notice of proposed

rulemaking is required for this

amendment, the Regulatory Flexibility

Act of 1980 does not apply. See 5 U.S.C.

601(2).

List of Subjects in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is hereby amended as

follows:

PART 4044—[AMENDED]

1. The authority citation for part 4044

continues to read as follows:

Authority: 29 U.S.C. 1301(a), 1302(b)(3),

1341, 1344, 1362.

2. In appendix B, a new entry is

added to Table I, and Rate Set 37 is

added to Table II, as set forth below.

The introductory text of each table is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 4044—Interest

Rates Used To Value Annuities and

Lump Sums

Table I.—Annuity Valuations

[This table sets forth, for each indicated

calendar month, the interest rates (denoted

by i1, i2, * * *, and referred to generally as

it) assumed to be in effect between specified

anniversaries of a valuation date that occurs

within that calendar month; those

anniversaries are specified in the columns

adjacent to the rates. The last listed rate is

assumed to be in effect after the last listed

anniversary date.]

For valuation dates occurring in the month—

The values of it are:

it for t= it for t= it for t=

* * * * * * *

November 1996 ............................................................................. .0620 1–20 .0475 >20 N/A N/A

Table II.—Lump Sum Valuations

[In using this table: (1) For benefits for

which the participant or beneficiary is

entitled to be in pay status on the valuation

date, the immediate annuity rate shall apply;

(2) For benefits for which the deferral period

is y years (where y is an integer and 0<y≤n1),

interest rate i1 shall apply from the valuation

date for a period of y years, and thereafter the

immediate annuity rate shall apply; (3) For

benefits for which the deferral period is y

years (where y is an integer and n1<y≤n1+n2),

interest rate i2 shall apply from the valuation

date for a period of y¥n1 years, interest rate

i1 shall apply for the following n1 years, and

thereafter the immediate annuity rate shall

apply; (4) For benefits for which the deferral

period is y years (where y is an integer and

y>n1+n2), interest rate i3 shall apply from the

valuation date for a period of y¥n1¥n2

years, interest rate i2 shall apply for the

following n2 years, interest rate i1 shall apply

for the following n1 years, and thereafter the

immediate annuity rate shall apply.]
53624 Federal Register / Vol. 61, No. 200 / Tuesday, October 15, 1996 / Rules and Regulations

Rate set

For plans with a valuation date Immediate annuity rate

(percent)

Deferred annuities (percent)

On or

after Before i1 i2 i3 n1 n2

* * * * * * *

37 ........................................................................ 11–1–96 12–1–96 5.00 4.25 4.00 4.00 7 8

Issued in Washington, DC, on this 9th day

of October 1996.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 96–26345 Filed 10–11–96; 8:45 am]

BILLING CODE 7708–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[Region II Docket No. 144; NJ22–1–7069a,

FRL–5554–9]

Approval and Promulgation of

Implementation Plans; New Jersey

Transportation Control Measures

AGENCY: Environmental Protection

Agency.

ACTION: Direct final rule.

SUMMARY: The Environmental Protection

Agency (EPA) is approving a request by

the State of New Jersey to revise its State

Implementation Plan (SIP) to

incorporate transportation control

measures (TCMs) as part of the State’s

effort to attain the national ambient air

quality standard for ozone. EPA finds

that New Jersey adequately

demonstrated in its November 15, 1993

SIP that growth in emissions from

growth in vehicle miles traveled will

not increase and, therefore, offsetting

emission reduction measures are not

required. In its November 15, 1993 SIP

revision, the State submitted a list

containing 136 TCMs as part of the plan

to reduce emissions of volatile organic

compounds by 15 percent between 1990

and 1996.

DATES: This rule is effective on

December 16, 1996, unless adverse or

critical comments are received by

November 14, 1996. If adverse

comments are received, this notice will

be withdrawn in the Federal Register

prior to the effective date of this rule.

ADDRESSES: All comments should be

addressed to: William S. Baker, Chief,

Air Programs Branch, Environmental

Protection Agency, Region II Office, 290

Broadway, 20th Floor, New York, New

York 10007–1866.

Copies of New Jersey’s submittals are

available at the following addresses for

inspection during normal business

hours:

Environmental Protection Agency,

Region II Office, Air Programs Branch,

290 Broadway, 20th Floor, New York,

New York 10007–1866.

New Jersey Department of

Environmental Protection, Office of

Air Quality Management, Bureau of

Air Pollution Control, 401 East State

Street, CN027, Trenton, New Jersey

08625.

Environmental Protection Agency, Air

and Radiation Docket and Information

Center (MC 6102), 401 M Street, S.W.,

Washington, D.C. 20460.

FOR FURTHER INFORMATION CONTACT:

Rudolph K. Kapichak, Air Programs

Branch, Environmental Protection

Agency, 290 Broadway, 20th Floor, New

York, New York 10007–1866, (212) 637–

4249.

SUPPLEMENTARY INFORMATION:

Background

Section 182(d)(1)(A) of the Clean Air

Act Amendments of 1990 requires states

containing ozone nonattainment areas

classified as ‘‘severe’’ pursuant to

Section 181(a) of the Act to adopt

transportation control measures (TCMs)

and transportation strategies to offset

growth in emissions from growth in

vehicle miles traveled (VMT) or number

of vehicle trips, and to attain reductions

in motor vehicle emissions (in

combination with other emission

requirements) as necessary to comply

with the Act’s Reasonable Further

Progress (RFP) milestone and attainment

requirements. The requirements for

establishing a VMT offset program are

discussed in the April 16, 1992 General

Preamble to Title I of the Act (57 FR

13498), in addition to Section

182(d)(1)(A) of the Act. The VMT offset

provision requires that states submit by

November 15, 1992 specific enforceable

TCMs and strategies to offset any growth

in emissions from growth in VMT or

number of vehicle trips sufficient to

allow total area emissions to comply

with the RFP and attainment

requirements of the Act.

EPA has observed that these three

elements (i.e., offsetting growth in

mobile source emissions, attainment of

the RFP reduction, and attainment of

ozone national ambient air quality

standards (NAAQS) create a timing

problem of which Congress was perhaps

not fully aware. As discussed in EPA’s

April 16, 1992 General Preamble to Title

I, ozone nonattainment areas affected by

this provision were not otherwise

required to submit SIPs that show

attainment of the 1996 15 percent RFP

milestone until November 15, 1993, and

likewise are not required to demonstrate

post-1996 RFP and attainment of the

NAAQS until November 15, 1994. The

SIP demonstrations due on November

15, 1993, and on November 15, 1994 are

broader in scope than growth in VMT or

trips in that they necessarily address

emission trends and control measures

for non-motor vehicle emission sources

and, in the case of attainment

demonstrations, complex

photochemical modeling studies.

EPA does not believe that Congress

intended the VMT offset provision to

advance dates for these broader

submissions. Further, EPA believes that

the November 15, 1992 date would not

allow sufficient time for states to have

fully developed specific sets of

measures that would comply with all of

the elements of the VMT offset

requirements of Section 182(d)(1)(A)

over the long term. Consequently, EPA

believes it would be appropriate to

interpret the Act to provide the

following alternative set of staged

deadlines for submittal of elements of

the VMT offset SIP.

Under this interpretation, the three

required elements of Section

182(d)(1)(A) are separable, and can be

divided into three separate submissions

on different dates. Section 179(a) of the

Act, in establishing how EPA would be

required to apply mandatory sanctions

if a state fails to submit a full SIP also

provides that the sanctions clock starts

if a state fails to submit one or more SIP

elements, as determined by the

Administrator. EPA believes that this

language provides EPA the authority to

determine that the different elements of

a SIP submission are separable.

Moreover, given the continued timing

problems addressed earlier, EPA

believes it is appropriate to allow states

to separate the VMT offset SIP into three

elements, each to be submitted at

different times: (1) The initial

requirement to submit TCMs that offset