69820 Federal Register / Vol. 69, No. 230 / Wednesday, December 1, 2004 / Rules and Regulations 

■ Par. 2. In § 31.6302(c)–3, paragraphs 

(a)(2) and (a)(3) are revised to read as 

follows:

§ 31.6302(c)–3 Use of Government 

depositaries in connection with tax under 

the Federal Unemployment Tax Act. 

(a) * * *

(2) Special rule where accumulated 

amount does not exceed $500. The 

provisions of paragraph (a)(1) of this 

section shall not apply with respect to 

any period described therein if the 

amount of the tax imposed by section 

3301 for such period (as computed 

under section 6157) plus amounts not 

deposited for prior periods does not 

exceed $500 ($100 in the case of periods 

ending on or before December 31, 2004). 

Thus, an employer shall not be required 

to make a deposit for a period unless his 

tax for such period plus tax not 

deposited for prior periods exceeds 

$500. 

(3) Requirement for deposit in lieu of 

payment with return. If the amount of 

tax reportable on a return on Form 940 

exceeds by more than $500 ($100 in the 

case of calendar years before 2005) the 

sum of the amounts deposited by the 

employer pursuant to paragraph (a)(1) of 

this section for such calendar year, the 

employer shall, on or before the last day 

of the first calendar month following the 

calendar year for which the return is 

required to be filed, deposit the balance 

of the tax due with an authorized 

financial institution.

* * * * *

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: November 23, 2004. 

Gregory Jenner, 

Acting Assistant Secretary of the Treasury.

[FR Doc. 04–26511 Filed 11–30–04; 8:45 am] 

BILLING CODE 4830–01–P

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4011 and 4022

Disclosure to Participants; Benefits 

Payable in Terminated SingleEmployer Plans

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends Appendix D 

to the Pension Benefit Guaranty 

Corporation’s regulation on Benefits 

Payable in Terminated Single-Employer 

Plans by adding the maximum 

guaranteeable pension benefit that may 

be paid by the PBGC with respect to a 

plan participant in a single-employer 

pension plan that terminates in 2005. 

This rule also amends the PBGC’s 

regulation on Disclosure to Participants 

by adding information on 2005 

maximum guaranteed benefit amounts 

to Appendix B. The amendment is 

necessary because the maximum 

guarantee amount changes each year, 

based on changes in the contribution 

and benefit base under section 230 of 

the Social Security Act. The effect of the 

amendment is to advise plan 

participants and beneficiaries of the 

increased maximum guarantee amount 

for 2005.

EFFECTIVE DATE: January 1, 2005.

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 

20005–4026; 202–326–4024. (TTY/TDD 

users may call the Federal relay service 

toll-free at 1–800–877–8339 and ask to 

be connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: Section 

4022(b) of the Employee Retirement 

Income Security Act of 1974 provides 

for certain limitations on benefits 

guaranteed by the PBGC in terminating 

single-employer pension plans covered 

under title IV of ERISA. One of the 

limitations, set forth in section 

4022(b)(3)(B), is a dollar ceiling on the 

amount of the monthly benefit that may 

be paid to a plan participant (in the 

form of a life annuity beginning at age 

65) by the PBGC. The ceiling is equal to 

‘‘$750 multiplied by a fraction, the 

numerator of which is the contribution 

and benefit base (determined under 

section 230 of the Social Security Act) 

in effect at the time the plan terminates 

and the denominator of which is such 

contribution and benefit base in effect in 

calendar year 1974 [$13,200].’’ This 

formula is also set forth in § 4022.22(b) 

of the PBGC’s regulation on Benefits 

Payable in Terminated Single-Employer 

Plans (29 CFR part 4022). Appendix D 

to part 4022 lists, for each year 

beginning with 1974, the maximum 

guaranteeable benefit payable by the 

PBGC to participants in single-employer 

plans that have terminated in that year. 

Section 230(d) of the Social Security 

Act (42 U.S.C. 430(d)) provides special 

rules for determining the contribution 

and benefit base for purposes of ERISA 

section 4022(b)(3)(B). Each year the 

Social Security Administration 

determines, and notifies the PBGC of, 

the contribution and benefit base to be 

used by the PBGC under these 

provisions, and the PBGC publishes an 

amendment to Appendix D to Part 4022 

to add the guarantee limit for the 

coming year. 

The PBGC has been notified by the 

Social Security Administration that, 

under section 230 of the Social Security 

Act, $66,900 is the contribution and 

benefit base that is to be used to 

calculate the PBGC maximum 

guaranteeable benefit for 2005. 

Accordingly, the formula under section 

4022(b)(3)(B) of ERISA and 29 CFR 

§ 4022.22(b) is: $750 multiplied by 

$66,900/$13,200. Thus, the maximum 

monthly benefit guaranteeable by the 

PBGC in 2005 is $3,801.14 per month in 

the form of a life annuity beginning at 

age 65. This amendment updates 

Appendix D to Part 4022 to add this 

maximum guaranteeable amount for 

plans that terminate in 2005. (If a 

benefit is payable in a different form or 

begins at a different age, the maximum 

guaranteeable amount is the actuarial 

equivalent of $3,801.14 per month.) 

Section 4011 of ERISA requires plan 

administrators of certain underfunded 

plans to provide notice to plan 

participants and beneficiaries of the 

plan’s funding status and the limits of 

the PBGC’s guarantee. The PBGC’s 

regulation on Disclosure to Participants 

(29 CFR Part 4011) implements the 

statutory notice requirement. This rule 

amends Appendix B to the regulation on 

Disclosure to Participants by adding 

information on 2005 maximum 

guaranteed benefit amounts. Plan 

administrators may, subject to the 

requirements of that regulation, include 

this information in participant notices.

General notice of proposed 

rulemaking is unnecessary. The 

maximum guaranteeable benefit is 

determined according to the formula in 

section 4022(b)(3)(B) of ERISA, and 

these amendments make no change in 

its method of calculation but simply list 

2005 maximum guaranteeable benefit 

amounts for the information of the 

public. 

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 

regulation, the Regulatory Flexibility 

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

601(2)).

List of Subjects 

29 CFR Part 4011

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements.

Federal Register / Vol. 69, No. 230 / Wednesday, December 1, 2004 / Rules and Regulations 69821

29 CFR Part 4022

Pension insurance, Pensions, 

Reporting and recordkeeping 

requirements.

■ In consideration of the foregoing, 29 

CFR parts 4011 and 4022 are amended as 

follows:

PART 4011—DISCLOSURE TO 

PARTICIPANTS

■ 1. The authority citation for part 4011 

continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1311.

■ 2. Appendix B to part 4011 is amended 

by adding a new entry in numerical order 

to the table to read as follows.

APPENDIX B TO PART 4011—TABLE OF MAXIMUM GUARANTEED BENEFITS

If a plan

terminates in—

The maximum guaranteed benefit for an individual starting to receive benefits at the age listed below is the amount

(monthly or annual)

listed below: 

Age 65 Age 62 Age 60 Age 55

Monthly Annual Monthly Annual Monthly Annual Monthly Annual 

*******

2005 .................. $3,801.14 $45,613.68 $3,002.90 $36,034.80 $2,470.74 $29,648.88 $1,710.51 $20,526.12

* * * * *

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS

■ 3. The authority citation for Part 4022 

continues to read as follows:

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344.

■ 4. Appendix D to part 4022 is amended 

by adding a new entry to the table to read 

as follows. The introductory text is 

reproduced for the convenience of the 

reader and remains unchanged.

Appendix D to Part 4022—Maximum 

Guaranteeable Monthly Benefit 

The following table lists by year the 

maximum guaranteeable monthly benefit 

payable in the form of a life annuity 

commencing at age 65 as described by 

§ 4022.22(b) to a participant in a plan that 

terminated in that year:

Year 

Maximum

guaranteeable 

monthly benefit 

*****

2005 .................................... $3,801.14

Issued in Washington, DC, this 23rd day of 

November, 2004. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 04–26428 Filed 11–30–04; 8:45 am] 

BILLING CODE 7708–01–P

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits 

and Assets; Expected Retirement Age

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends the Pension 

Benefit Guaranty Corporation’s 

regulation on Allocation of Assets in 

Single-Employer Plans by substituting a 

new table that applies to any plan being 

terminated either in a distress 

termination or involuntarily by the 

PBGC with a valuation date falling in 

2005, and is used to determine expected 

retirement ages for plan participants. 

This table is needed in order to compute 

the value of early retirement benefits 

and, thus, the total value of benefits 

under the plan.

EFFECTIVE DATE: January 1, 2005.

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 

20005–4026; 202–326–4024. (TTY/TDD 

users may call the Federal relay service 

toll-free at 1–800–877–8339 and ask to 

be connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: The 

PBGC’s regulation on Allocation of 

Assets in Single-Employer Plans (29 

CFR part 4044) sets forth (in subpart B) 

the methods for valuing plan benefits of 

terminating single-employer plans 

covered under Title IV of the Employee 

Retirement Income Security Act of 1974. 

Under ERISA section 4041(c), 

guaranteed benefits and benefit 

liabilities under a plan that is 

undergoing a distress termination must 

be valued in accordance with part 4044, 

subpart B. In addition, when the PBGC 

terminates an underfunded plan 

involuntarily pursuant to ERISA Section 

4042(a), it uses the subpart B valuation 

rules to determine the amount of the 

plan’s underfunding. 

Under § 4044.51(b), early retirement 

benefits are valued based on the annuity 

starting date, if a retirement date has 

been selected, or the expected 

retirement age, if the annuity starting 

date is not known on the valuation date. 

Sections 4044.55 through 4044.57 set 

forth rules for determining the expected 

retirement ages for plan participants 

entitled to early retirement benefits. 

Appendix D of part 4044 contains tables 

to be used in determining the expected 

early retirement ages. 

Table I in appendix D (Selection of 

Retirement Rate Category) is used to 

determine whether a participant has a 

low, medium, or high probability of 

retiring early. The determination is 

based on the year a participant would 

reach ‘‘unreduced retirement age’’ (i.e., 

the earlier of the normal retirement age 

or the age at which an unreduced 

benefit is first payable) and the 

participant’s monthly benefit at 

unreduced retirement age. The table 

applies only to plans with valuation 

dates in the current year and is updated 

annually by the PBGC to reflect changes 

in the cost of living, etc. 

Tables II–A, II–B, and II–C (Expected 

Retirement Ages for Individuals in the 

Low, Medium, and High Categories 

respectively) are used to determine the 

expected retirement age after the 

probability of early retirement has been 

determined using Table I. These tables 

establish, by probability category, the