61352 Federal Register / Vol. 73, No. 201 / Thursday, October 16, 2008 / Rules and Regulations 

IV. Findings and Certifications 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531– 

1538) (UMRA) establishes requirements 

for federal agencies to assess the effects 

of their regulatory actions on state, 

local, and tribal governments and the 

private sector. This proposed rule does 

not impose any federal mandates on any 

state, local, or tribal government or the 

private sector within the meaning of 

UMRA. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘Federalism’’) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either imposes 

substantial direct compliance costs on 

state and local governments and is not 

required by statute, or the rule preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Order. This rule does 

not have federalism implications and 

would not impose substantial direct 

compliance costs on state and local 

governments nor preempt state law 

within the meaning of the Order. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.), generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. This rule, 

consistent with recent statutory 

amendments, provides PHAs with the 

flexibility to enter into energy 

performance contracts with terms of not 

more than 20 years. These revisions 

impose no significant economic impact 

on a substantial number of small 

entities. Therefore, the undersigned 

certifies that this rule will not have a 

significant impact on a substantial 

number of small entities. 

Notwithstanding HUD’s view that this 

rule will not have a significant effect on 

a substantial number of small entities, 

HUD specifically invites comments 

regarding any less burdensome 

alternatives to this rule that will meet 

HUD’s objectives as described in this 

preamble. 

Environmental Impact 

This final rule does not direct, 

provide for assistance or loan and 

mortgage insurance for, or otherwise 

govern or regulate real property 

acquisition, disposition, leasing, 

rehabilitation, alteration, demolition, or 

new construction; or establish, revise, or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this rule is 

categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance program number is 14.850. 

List of Subjects in 24 CFR Part 990 

Accounting, Grant programs—housing 

and community development, Public 

housing, Reporting and recordkeeping 

requirements. 

■ Accordingly, for the reasons described 

in the preamble, HUD amends 24 CFR 

part 990 as follows: 

PART 990—THE PUBLIC HOUSING 

OPERATING FUND PROGRAM 

■ 1. The authority citation for part 990 

continues to read as follows: 

Authority: 42 U.S.C. 1437g; 42 U.S.C. 

3535(d). 

■ 2. In § 990.185, revise paragraph (a) 

introductory text and paragraph 

(a)(3)(iv), to read as follows: 

§ 990.185 Utilities expense level: 

Incentives for energy conservation/rate 

reduction. 

(a) General/consumption reduction. If 

a PHA undertakes energy conservation 

measures that are financed by an entity 

other than HUD, the PHA may qualify 

for the incentives available under this 

section. For a PHA to qualify for these 

incentives, the PHA must enter into a 

contract to finance the energy 

conservation measures, and must obtain 

HUD approval. Such approval shall be 

based on a determination that payments 

under a contract can be funded from 

reasonably anticipated energy cost 

savings. The contract period shall not 

exceed 20 years. The energy 

conservation measures may include, but 

are not limited to: Physical 

improvements financed by a loan from 

a bank, utility, or governmental entity; 

management of costs under the 

performance contract; or a shared 

savings agreement with a private energy 

service company. All such contracts 

shall be known as energy performance 

contracts. PHAs may extend an 

executed energy performance contract 

with a term of less than 20 years to a 

term of not more than 20 years, to 

permit additional energy conservation 

improvements without the 

reprocurement of energy performance 

contractors. The PHA must obtain HUD 

approval to extend the term of an 

executed energy performance contract. 

* * * * * 

(3) * * * 

(iv) If energy cost savings are less than 

the amount necessary to meet 

amortization payments specified in a 

contract, the contract term may be 

extended (up to the 20-year limit) if 

HUD determines that the shortfall is the 

result of changed circumstances, rather 

than a miscalculation or 

misrepresentation of projected energy 

savings by the contractor or PHA. The 

contract term may be extended only to 

accommodate payment to the contractor 

and associated direct costs. 

* * * * * 

Dated: September 11, 2008. 

Paula O. Blunt, 

General Deputy Assistant Secretary for Public 

and Indian Housing. 

[FR Doc. E8–24573 Filed 10–15–08; 8:45 am] 

BILLING CODE 4210–67–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets 

in Single-Employer Plans; Interest 

Assumptions for Valuing and Paying 

Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation’s regulations on Benefits 

Payable in Terminated Single-Employer 

Plans and Allocation of Assets in 

Single-Employer Plans prescribe interest 

assumptions for valuing and paying 

benefits under terminating singleemployer plans. This final rule amends 

the regulations to adopt interest 

assumptions for plans with valuation 

dates in November 2008. Interest 

assumptions are also published on the 

PBGC’s Web site (http://www.pbgc.gov). 

DATES: Effective November 1, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, Legislative and 

Regulatory Department, Pension Benefit 

Guaranty Corporation, 1200 K Street, 

NW., Washington, DC 20005, 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 regulations prescribe actuarial 

assumptions—including interest 


rwilkins on PROD1PC63 with NOTICES
Federal Register / Vol. 73, No. 201 / Thursday, October 16, 2008 / Rules and Regulations 61353 

assumptions—for valuing and paying 

plan benefits of terminating singleemployer plans covered by title IV of 

the Employee Retirement Income 

Security Act of 1974. The interest 

assumptions are intended to reflect 

current conditions in the financial and 

annuity markets. 

Three sets of interest assumptions are 

prescribed: (1) A set for the valuation of 

benefits for allocation purposes under 

section 4044 (found in Appendix B to 

Part 4044), (2) a set for the PBGC to use 

to determine whether a benefit is 

payable as a lump sum and to determine 

lump-sum amounts to be paid by the 

PBGC (found in Appendix B to Part 

4022), and (3) a set for private-sector 

pension practitioners to refer to if they 

wish to use lump-sum interest rates 

determined using the PBGC’s historical 

methodology (found in Appendix C to 

Part 4022). 

This amendment (1) adds to 

Appendix B to Part 4044 the interest 

assumptions for valuing benefits for 

allocation purposes in plans with 

valuation dates during November 2008, 

(2) adds to Appendix B to Part 4022 the 

interest assumptions for the PBGC to 

use for its own lump-sum payments in 

plans with valuation dates during 

November 2008, and (3) adds to 

Appendix C to Part 4022 the interest 

assumptions for private-sector pension 

practitioners to refer to if they wish to 

use lump-sum interest rates determined 

using the PBGC’s historical 

methodology for valuation dates during 

November 2008. 

For valuation of benefits for allocation 

purposes, the interest assumptions that 

the PBGC will use (set forth in 

Appendix B to part 4044) will be 7.09 

percent for the first 20 years following 

the valuation date and 6.16 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for October 2008) of 0.91 percent 

for the first 20 years following the 

valuation date and 0.91 percent for all 

years thereafter. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 3.75 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. These interest assumptions 

represent an increase (from those in 

effect for October 2008) of 0.50 percent 

in the immediate annuity rate and are 

otherwise unchanged. For private-sector 

payments, the interest assumptions (set 

forth in Appendix C to part 4022) will 

be the same as those used by the PBGC 

for determining and paying lump sums 

(set forth in Appendix B to part 4022). 

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 assumptions promptly so that 

the assumptions can reflect current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during November 2008, 

the PBGC finds that good cause exists 

for making the assumptions 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 

29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4044 

Employee benefit plans, Pension 

insurance, Pensions. 

■ In consideration of the foregoing, 29 

CFR parts 4022 and 4044 are amended 

as follows: 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS 

■ 1. 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. 

■ 2. In appendix B to part 4022, Rate Set 

181, as set forth below, is added to the 

table. 

Appendix B to Part 4022—Lump Sum 

Interest Rates for PBGC Payments 

* * * * * 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

* * * * * * * 

181 11–1–08 12–1–08 3.75 4.00 4.00 4.00 7 8 

■ 3. In appendix C to part 4022, Rate Set 

181, as set forth below, is added to the 

table. 

Appendix C to Part 4022—Lump Sum 

Interest Rates for Private-Sector 

Payments 

* * * * * 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

* * * * * * * 

181 11–1–08 12–1–08 3.75 4.00 4.00 4.00 7 8 


rwilkins on PROD1PC63 with NOTICES
61354 Federal Register / Vol. 73, No. 201 / Thursday, October 16, 2008 / Rules and Regulations 

PART 4044—ALLOCATION OF 

ASSETS IN SINGLE-EMPLOYER 

PLANS 

■ 4. The authority citation for part 4044 

continues to read as follows: 

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

1341, 1344, 1362. 

■ 5. In appendix B to part 4044, a new 

entry for November 2008, as set forth 

below, is added to the table. 

Appendix B to Part 4044—Interest 

Rates Used To Value Benefits 

* * * * * 

For valuation dates occurring in the month— 

The values of it are: 

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

* * * * * * * 

November 2008 ................................................................ .0709 1–20 .0616 >20 N/A N/A 

Issued in Washington, DC, on this 9th day 

of October 2008. 

Vincent K. Snowbarger, 

Deputy Director for Operations,Pension 

Benefit Guaranty Corporation. 

[FR Doc. E8–24651 Filed 10–15–08; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF EDUCATION 

34 CFR Part 5b 

RIN 1880–AA85 

[Docket ID ED, ED–2008–OM–0004] 

Privacy Act Regulations 

AGENCY: Office of Management, 

Department of Education. 

ACTION: Final regulations. 

SUMMARY: The Secretary amends the 

regulations implementing the Privacy 

Act of 1974, as amended (Privacy Act). 

These changes are intended to exempt 

from certain Privacy Act requirements 

investigative material in a new system 

of records maintained by the 

Department that will be known as the 

Office of Inspector General Data 

Analytics System (ODAS) (18–10–02). 

Specifically, the exemption applies to 

materials compiled by the Department’s 

Office of Inspector General (OIG) for law 

enforcement purposes to identify 

internal control weaknesses and system 

issues and to improve methods of data 

modeling and annual audit planning in 

order to detect and investigate fraud, 

waste, and mismanagement in 

Department programs and operations. 

DATES: These regulations are effective 

November 17, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Shelley Shepherd, Office of Inspector 

General, U.S. Department of Education, 

400 Maryland Avenue, SW., room 8166, 

Washington, DC 20202–5920. 

Telephone: (202) 245–7077. 

If you use a telecommunications 

device for the deaf (TDD), you may call 

the Federal Relay Service (FRS) at 

1–800–877–8339. 

Individuals with disabilities can 

obtain this document in an alternative 

format (e.g., Braille, large print, 

audiotape, or computer diskette) on 

request to the contact person listed 

under FOR FURTHER INFORMATION

CONTACT. 

SUPPLEMENTARY INFORMATION: On May 8, 

2008 the Secretary published a notice of 

proposed rulemaking (NPRM) for this 

part in the Federal Register (73 FR 

26056). In the summary to the NPRM, 

on pages 26056 and 26507, the Secretary 

discussed how the proposed regulations 

would amend the Department’s Privacy 

Act regulations to exempt from certain 

Privacy Act requirements investigative 

material in a new system of records. The 

new system of records is the Office of 

Inspector General Data Analytics 

System (ODAS) and the exemption 

would apply to materials compiled by 

the Office of Inspector General (OIG) for 

law enforcement purposes. 

There are no differences between the 

NPRM and these final regulations. 

Analysis of Comments and Changes 

In response to the Secretary’s 

invitation in the NPRM, the Department 

received no comments on the proposed 

regulations. 

Executive Order 12866 

We have reviewed these final 

regulations in accordance with 

Executive Order 12866. Under the terms 

of the order we have assessed the 

potential costs and benefits of this 

regulatory action. 

The potential costs associated with 

the final regulations are those resulting 

from statutory requirements and those 

we have determined to be necessary for 

administering this program effectively 

and efficiently. 

In assessing the potential costs and 

benefits—both quantitative and 

qualitative—of these final regulations, 

we have determined that the benefits of 

the regulations justify the costs. 

We have also determined that this 

regulatory action does not unduly 

interfere with State, local, and tribal 

governments in the exercise of their 

governmental functions. 

We summarized the potential costs 

and benefits of these final regulations in 

the NPRM at 73 FR 26058. 

Paperwork Reduction Act of 1995 

These regulations do not contain any 

information collection requirements. 

Electronic Access to This Document 

You can view this document, as well 

as all other documents of this 

Department published in the Federal 

Register, in text and Adobe Portable 

Document Format (PDF) on the Internet 

at the following site: http://www.ed.gov/ 

news/fedregister. 

To use PDF you must have Adobe 

Acrobat Reader, which is available free 

at this site. If you have questions about 

using PDF, call the U.S. Government 

Printing Office (GPO), toll free, at 1– 

888–293–6498; or in the Washington, 

DC area at (202) 512–1530. 

Note: The official version of this document 

is the document published in the Federal 

Register. Free Internet access to the official 

edition of the Federal Register and the Code 

of Federal Regulations is available on GPO 

Access at: http://www.gpoaccess.gov/nara/ 

index.html. 

(Catalog of Federal Domestic Assistance 

Number does not apply.) 

Dated: October 10, 2008. 

Christopher P. Marston, 

Assistant Secretary for Management. 

■ For the reasons discussed in the 

preamble, the Secretary amends Part 5b 

of title 34 of the Code of Federal 

Regulations as follows: 

PART 5b—PRIVACY ACT 

REGULATIONS 

■ 1. The authority citation for part 5b 

continues to read as follows: 

Authority: 5 U.S.C. 301, 5 U.S.C. 552a. 

■ 2. Section 5b.11 is amended by 

revising paragraph (c)(1) introductory 

text to read as follows: 


rwilkins on PROD1PC63 with NOTICES