Federal Register / Vol. 67, No. 158 / Thursday, August 15, 2002 / Rules and Regulations 53307

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 September 2002. Interest 

assumptions are also published on the 

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

EFFECTIVE DATE: September 1, 2002.

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, 202–326–4024. (TTY/TDD users 

may call the Federal relay service tollfree 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). 

Accordingly, 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 September 2002, 

(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 

September 2002, 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 

September 2002. 

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 5.40 

percent for the first 25 years following 

the valuation date and 4.25 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for August 2002) of 0.10 percent 

for the first 25 years following the 

valuation date and are otherwise 

unchanged. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 4.25 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 

August 2002. 

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, as 

accurately as possible, current market 

conditions. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during September 2002, 

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 

107, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.) 

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

* * * * * * * 

107 9–1–02 10–1–02 4.25 4.00 4.00 4.00 7 8

3. In appendix C to part 4022, Rate Set 107, as set forth below, is added to the table. (The introductory text 

of the table is omitted.) 

53308 Federal Register / Vol. 67, No. 158 / Thursday, August 15, 2002 / Rules and Regulations 

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

* * * * * * * 

107 9–1–02 10–1–02 4.25 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, as set forth below, is added to the table. (The introductory text 

of the table is omitted.)

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 = 

* * * * * * * 

September 2002 ................................................................... .0540 1–25 .0425 25 N/A N/A 

Issued in Washington, DC, on this 8th day 

of August 2002. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 02–20702 Filed 8–14–02; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard 

33 CFR Part 100 

[CGD05–02–052] 

RIN 2115–AE46 

Special Local Regulations for Marine 

Events; Atlantic Ocean, Point Pleasant 

Beach to Bay Head, NJ

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is 

establishing temporary special local 

regulations for the ‘‘OPA–SBI–NJOPRA 

National Grand Prix’’, a marine event to 

be held on the waters of the Atlantic 

Ocean between Point Pleasant Beach 

and Bay Head, New Jersey. These 

special local regulations are necessary to 

provide for the safety of life on 

navigable waters during the event. This 

action is intended to restrict vessel 

traffic in the regulated area during the 

event.

DATES: This rule is effective from 10:30 

a.m. to 4:30 p.m. (local time) on August 

16, 2002.

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket, are part of docket CGD05–02–

052 and are available for inspection or 

copying at Commander (Aoax), Fifth 

Coast Guard District, 431 Crawford 

Street, Portsmouth, Virginia 23704–

5004, between 9 a.m. and 2 p.m., 

Monday through Friday, except Federal 

holidays.

FOR FURTHER INFORMATION CONTACT: S. L. 

Phillips, Project Manager, Commander 

(Aoax), Fifth Coast Guard District, 431 

Crawford Street, Portsmouth, Virginia 

23704–5004, at (757) 398–6204.

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

We did not publish a notice of 

proposed rulemaking (NPRM) for this 

regulation. In keeping with 5 U.S.C. 

553(b)(B) and 553(d)(3), the Coast Guard 

finds that good cause exists for not 

publishing a NPRM and for making this 

rule effective less than 30 days after 

publication in the Federal Register. The 

event will be held on August 16, 2002. 

There is not sufficient time to allow for 

an appropriate notice and comment 

period, prior to the event. Because of the 

danger inherent in high-speed boat 

races, special local regulations are 

necessary to provide for the safety of 

participants, spectator craft and other 

vessels transiting the event area. For the 

safety concerns noted, it is in the public 

interest to have these regulations in 

effect during the event. In addition, 

advance notifications will be made via 

the Local Notice to Mariners, marine 

information broadcasts, and area 

newspapers. 

Background and Purpose 

On August 16, 2002, the Offshore 

Performance Association will sponsor 

the OPA–SBI–NJOPRA National Grand 

Prix. The event will consist of 40 to 45 

offshore power boats racing along an 

oval course on the waters of the Atlantic 

Ocean. A fleet of spectator vessels is 

expected to gather near the event site to 

view the competition. To provide for the 

safety of participants, spectators and