Federal Register / Vol. 72, No. 240 / Friday, December 14, 2007 / Rules and Regulations 71071 

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 January 2008. Interest 

assumptions are also published on the 

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

DATES: Effective January 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 

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 January 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 

January 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 January 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 5.42 

percent for the first 20 years following 

the valuation date and 4.49 percent 

thereafter. These interest assumptions 

represent an increase (in comparison to 

those in effect for December 2008) of 

0.05 percent for the first 20 years 

following the valuation date and a 

decrease of 0.55 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 

represent no change from those in effect 

for December 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 January 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 

171, 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

* * * * * * * 

171 01–1–08 02–1–08 3.00 4.00 4.00 4.00 7 8 


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71072 Federal Register / Vol. 72, No. 240 / Friday, December 14, 2007 / Rules and Regulations 

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

171, 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

* * * * * * * 

171 01–1–08 02–1–08 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 January 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 = 

* * * * * * * 

January 2008 .0542 1–20 .0449 >20 N/A N/A 

Issued in Washington, DC, on this 10th day 

of December 2007. 

Vincent K. Snowbarger, 

Deputy Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E7–24245 Filed 12–13–07; 8:45 am] 

BILLING CODE 7709–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 50 and 51 

[EPA–HQ–OAR–2005–0159; FRL–8506–6] 

RIN 2060–AN40 

Exceptional Events Rule; Notice of 

Action Denying Petition for 

Reconsideration 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Notice of Action Denying 

Petition for Reconsideration. 

SUMMARY: The EPA is providing notice 

that it has responded to a petition for 

reconsideration of the Exceptional 

Events Rule (EER). On March 22, 2007, 

EPA finalized a rule in the Federal 

Register to govern the review and 

handling of air quality monitoring data 

influenced by exceptional events. 

Section 319 of the Clean Air Act (CAA), 

as amended by section 6013 of the Safe 

Accountable Flexible EfficientTransportation Equity Act: A Legacy for 

Users (SAFE–TEA–LU) of 2005 required 

the Administrator to publish a proposed 

rule in the Federal Register by March 1, 

2006. Further, SAFE–TEA–LU required 

the EPA Administrator to publish a final 

rule within 1 year of the proposal. The 

final rule on the ‘‘Treatment of Data 

Influenced by Exceptional Events’’

became effective on May 21, 2007. 

Subsequent to the publication of this 

action, a petition for reconsideration 

from the Natural Resources Defense 

Council (NRDC) was received by EPA 

on May 21, 2007, signed by John D. 

Walke; Director, Clean Air Program; 

Natural Resources Defense Council; 

1200 New York Avenue, NW., Suite 

400, Washington, DC 20005–3928. The 

EPA considered the petition and 

supporting information along with 

information contained in the 

rulemaking docket (Docket number 

EPA–HQ–OAR–2005–0159–0163) in 

reaching a decision on the petitions. 

EPA Administrator Stephen L. Johnson 

denied the petition for reconsideration 

in a letter to the petitioner dated 

November 5, 2007. The letter documents 

EPA’s reasons for the denial. 

FOR FURTHER INFORMATION CONTACT: 

Padmini Singh, U.S. EPA, Office of 

General Counsel, Mail Code 2344A, 

1200 Pennsylvania Avenue, NW., 

Washington, DC 20460, telephone (202) 

564–5641, e-mail at 

singh.padmini@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. How Can I Get Copies of This 

Document and Other Related 

Information? 

This Federal Register notice, the 

petition for reconsideration, and the 

letter denying the petition for 

reconsideration are available in the 

docket that EPA established for the 

Exceptional Events Rule (docket number 

EPA–HQ–OAR–2005–0159). The table 

below identifies the petition received by 

EPA, the date EPA received the petition, 

the document identification number for 

the petition, the date of EPA’s response, 

and the document identification number 

for EPA’s response. (Note that all the 

document numbers listed in the table 

are in the form of ‘‘EPA–HQ–OAR–

XXXX–XXXX-xxxx.’’) 

Petitioner Date of 

petition to EPA 

Petition: Document No. in 

docket 

Date of EPA 

response 

EPA response: 

Document No. 

in docket 

Natural Resources Defense Council ............................................................... 5/21/2007 0163 11/05/2007 0175 


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