Federal Register / Vol. 72, No. 93 / Tuesday, May 15, 2007 / Rules and Regulations 27243 

[FR Doc. E7–9243 Filed 5–14–07; 8:45 am] 

BILLING CODE 4910–13–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 June 2007. Interest assumptions 

are also published on the PBGC’s Web 

site (http://www.pbgc.gov). 

DATES: Effective June 1, 2007. 

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 

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 June 2007, (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 June 

2007, 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 June 2007. 

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 5.14 

percent for the first 20 years following 

the valuation date and 4.81 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for May 2007) of 0.06 percent for 

the first 20 years following the valuation 

date and 0.06 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 3.00 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 are 

unchanged from those in effect for May 

2007. 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 June 2007, 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 

164, 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

* * * * * * * 

164 ........................................ 6–1–07 7–1–07 3.00 4.00 4.00 4.00 7 8 


cprice-sewell on PROD1PC62 with RULES
27244 Federal Register / Vol. 72, No. 93 / Tuesday, May 15, 2007 / Rules and Regulations 

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

164, 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

* * * * * * * 

164 ........................................ 6–1–07 7–1–07 3.00 4.00 4.00 4.00 7 8 

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 June 2007, 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 = 

* * * * * * * 

June 2007 ......................................................................... .0514 1–20 .0481 >20 N/A N/A 

Issued in Washington, DC, on this 10th day 

of May 2007. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E7–9331 Filed 5–14–07; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[COTP SAVANNAH 06–160] 

RIN 1625–AA87 

Security Zone, Elba Island LNG 

Mooring Slip, Savannah River, 

Savannah, GA 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is 

establishing a permanent security zone 

due to recent changes in Liquefied 

Natural Gas (LNG) tankship mooring 

arrangements following the activation of 

two new berths within a slip at the 

Southern LNG Facility on the Savannah 

River. The Security zone includes all 

the waters from surface to bottom of the 

northeastern most mooring dolphin, 

located at approximately 32°05.01′ N, 

080°59.38′ W, to the southeastern most 

mooring dolphin, located at 

approximately 32°04.79′ N, 080°59.35′ 

W, and continues west along the North 

and South shoreline of the mooring slip 

to the shoreline of the right descending 

bank of the Savannah River. This 

regulation is necessary to protect life 

and property on the navigable waters of 

the Savannah River and within the LNG 

slip due to potential security risks 

associated with the LNG Facility. 

DATES: This rule is effective June 14, 

2007. 

ADDRESSES: Comments and material 

received from the public, as well as 

documents indicated in this preamble as 

being available in the docket, are part of 

docket [COTP Savannah 06–160], and 

are available for inspection or copying 

at Marine Safety Unit Savannah, Juliette 

Gordon Low Federal Building, Suite 

1017, 100 W. Oglethorpe, Savannah, 

Georgia 31401, between 7:30 a.m. and 

4:30 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Lieutenant Robert Webb, Waterways 

Management Officer, Marine Safety Unit 

Savannah; (912) 652–4353. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

On January 9, 2007, we published an 

interim rule with request for comments 

titled Security Zone, Elba Island LNG 

Mooring Slip, Savannah River, 

Savannah, GA in the Federal Register 

(72 FR 907). We received one comment 

on the rule. No public meeting was 

requested, and none was held. 

Background and Purpose 

In May of 2002, Southern LNG, Inc., 

submitted a letter of intent to expand 

the LNG facility on Elba Island that 

would nearly double the LNG storage 

capacity and substantially increase the 

number of LNG tankship arrivals. The 

expansion project, completed in early 

2006, resulted in the creation of two 

new berths within a slip at the Southern 

LNG Facility on the Savannah River. 

The design of the new slip inadvertently 

creates a safe refuge off the Savannah 

River with unrestricted access to LNG 

berths. As a result, the LNG facility and 

arriving LNG vessels are put at risk of 

sabotage or other adverse action that 

could result in significant damage to 

property and loss of life. 

This concern was confirmed by a 

recent incident where on June 6, 2006, 

a sailing vessel entered the LNG slip 

and anchored for six hours, one day 

before the scheduled arrival of an LNG 

carrier. This incident raised security 

concerns and prompted the LNG facility 

to conduct a visual inspection of the 

above water mooring features and a 

complete underwater survey, in turn 

delaying the LNG vessel. The visual 

inspection and underwater survey was 

necessary to ensure no objects that 

could potentially harm the vessel or 

facility were left in the slip. Although 


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