Federal Register / Vol. 63, No. 218 /Thursday, November 12, 1998 /Rules and Regulations 63179

Appendix 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

* * * * *

1999 ...................................... 3,051.14

PART 4011—DISCLOSURE TO

PARTICIPANTS

3. The authority citation for Part 4011

continues to read as follows:

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

4. Appendix B to part 4011 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 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

* * * * *

1999 ........ $3,051.14 $36,613.68 $2,410.40 $28,924.80 $1,983.24 $23,798.88 $1,373.01 $16,476.12

Issued in Washington, D.C., this 5th day of

November, 1998.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 98–30188 Filed 11–10–98; 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

new Table I–99 in place of existing

Table I–98 in appendix D. Table I–99

applies to any plan being terminated

either in a distress termination or

involuntarily by the PBGC with a

valuation date falling in 1999, 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, 1999.

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. (For TTY/

TDD users, 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

expected retirement age based on both

the earliest age a participant could retire

under the plan and the unreduced

retirement age. This expected retirement

age is used to compute the value of the

early retirement benefit and, thus, the

total value of benefits under the plan.

This document amends appendix D to

replace Table I–98 with Table I–99 in

order to provide an updated correlation,

appropriate for calendar year 1999,

between the amount of a participant’s

benefit and the probability that the

participant will elect early retirement.

Table I–99 will be used to value benefits

in plans with valuation dates during

calendar year 1999.

The PBGC has determined that notice

of and public comment on this rule are

impracticable and contrary to the public

interest. Plan administrators need to be

able to estimate accurately the value of

plan benefits as early as possible before

initiating the termination process. For
63180 Federal Register / Vol. 63, No. 218 /Thursday, November 12, 1998 /Rules and Regulations

that purpose, if a plan has a valuation

date in 1999, the plan administrator

needs the updated table being

promulgated in this rule. Accordingly,

the public interest is best served by

issuing this table expeditiously, without

an opportunity for notice and comment,

to allow as much time as possible to

estimate the value of plan benefits with

the proper table for plans with valuation

dates in early 1999.

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 in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is 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. Appendix D to part 4044 is

amended by removing Table I–98 and

adding in its place Table I–99 to read as

follows:

Appendix D to Part 4044—Tables Used To Determine Expected Retirement Age

TABLE I–99—SELECTION OF RETIREMENT RATE CATEGORY

[For Plans with valuation dates after December 31, 1998, and before January 1, 2000]

Participant reaches URA in year—

Participant’s retirement rate category is—

Low1 if monthly benefit at

URA is less

than—

Medium2 if monthly benefit at

URA is

High3 if

monthly benefit at URA is

From To greater than—

2000 .................................................................................................................. 423 423 1,784 1,784

2001 .................................................................................................................. 433 433 1,825 1,825

2002 .................................................................................................................. 443 443 1,867 1,867

2003 .................................................................................................................. 453 453 1,910 1,910

2004 .................................................................................................................. 464 464 1,954 1,954

2005 .................................................................................................................. 474 474 1,999 1,999

2006 .................................................................................................................. 485 485 2,045 2,045

2007 .................................................................................................................. 496 496 2,092 2,092

2008 .................................................................................................................. 508 508 2,140 2,140

2009 or later ..................................................................................................... 519 519 2,189 2,189

1Table II–A.

2Table II–B.

3Table II–C.

* * * * *

Issued in Washington, D.C., this 5th day of

November, 1998.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 98–30189 Filed 11–10–98; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 117

[CGD01–98–156]

Drawbridge Operation Regulations:

Harlem River, NY

AGENCY: Coast Guard, DOT.

ACTION: Notice of temporary deviation

from regulations.

SUMMARY: The District Commander,

First Coast Guard District has issued a

temporary deviation from the

regulations listed under 33 CFR

117.789, governing the operation of the

Broadway Bridge, mile 6.8, across the

Harlem River in New York City. This

deviation allows the bridge owner, the

New York City Department of

Transportation (NYCDOT), to keep the

bridge in the closed position from

October 21, 1998 to November 30, 1998,

to facilitate repairs. Vessels which can

pass under the bridge without a bridge

opening may do so at any time.

DATES: This deviation is effective from

October 21, 1998 through November 30,

1998.

FOR FURTHER INFORMATION CONTACT:

Ms. Judy Yee, Project Manager, Bridge

Branch at (212) 668–7165.

SUPPLEMENTARY INFORMATION: The

Broadway Bridge, mile 6.8, over the

Harlem River has a vertical clearance of

24 feet at mean high water (MHW) and

29 feet at mean low water (MLW) in the

closed position.

The City of New York requested a

temporary deviation from the operating

regulations for the Broadway Bridge

because the bridge is presently unable to

open as a result of a start up transformer

and contacts failure. The parts necessary

to perform the repairs are no longer

stock items and must be custom

manufactured from specifications.

Vessels that can pass under the bridge

without an opening may do so at all

times during this closed period.

This deviation to the operating

regulations will allow the bridge to

remain in the closed position from

October 21, 1998 to November 30, 1998.

This deviation from the normal

operating regulations is authorized

under 33 CFR 117.35.

Dated: October 27, 1998.

R.M. Larrabee,

Rear Admiral, U.S. Coast Guard, Commander,

First Coast Guard District.

[FR Doc. 98–30209 Filed 11–10–98; 8:45 am]

BILLING CODE 4910–15–M

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 117

[CGD 08–98–070]

Drawbridge Operating Regulation; Gulf

Intracoastal Waterway, TX

AGENCY: Coast Guard, DOT.