Federal Register / Vol. 62, No. 114 / Friday, June 13, 1997 / Rules and Regulations 32197

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

for Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in July 1997.

EFFECTIVE DATE: July 1, 1997.

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 (202–326–4179

for TTY and TDD).

SUPPLEMENTARY INFORMATION: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions are

prescribed, one set for the valuation of

benefits to be paid as annuities and one

set for the valuation of benefits to be

paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest

assumptions for valuing benefits in

plans with valuation dates during July

1997.

For annuity benefits, the interest

assumptions will be 6.30 percent for the

first 25 years following the valuation

date and 5.00 percent thereafter. The

annuity interest assumptions represent a

decrease (from those in effect for June

1997) of 0.10 percent for the first 25

years following the valuation date and

are otherwise unchanged. For benefits to

be paid as lump sums, the interest

assumptions to be used by the PBGC

will be 5.25 percent for the period

during which a benefit is in pay status,

4.50 percent during the seven-year

period directly preceding the benefit’s

placement in pay status, and 4.00

percent during any other years

preceding the benefit’s placement in pay

status. The lump sum interest

assumptions are unchanged from those

in effect for June 1997.

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 of

benefits in plans with valuation dates

during July 1997, 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 in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is amended as follows:

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

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. In appendix B, a new entry is

added to Table I, and Rate Set 45 is

added to Table II, as set forth below.

The introductory text of each table is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 4044—Interest Rates Used to Value Annuities and Lump Sums

TABLE I.—ANNUITY VALUATIONS

[This table sets forth, for each indicated calendar month, the interest rates (denoted by i1, i2, . . . , and referred to generally as it) assumed to

be in effect between specified anniversaries of a valuation date that occurs within that calendar month; those anniversaries are specified in

the columns adjacent to the rates. The last listed rate is assumed to be in effect after the last listed anniversary date.]

For valuation dates occurring in the month—

The values of it are:

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

* * * * * * *

July 1997 ............................................................................... .0630 1–25 .0500 >25 N/A .......... N/A
32198 Federal Register / Vol. 62, No. 114 / Friday, June 13, 1997 / Rules and Regulations

TABLE II.—LUMP SUM VALUATIONS

[In using this table: (1) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate annuity rate shall apply; (2) For benefits for which the deferral period is y years (where y is an integer and 0 < y≤n1), interest rate i1 shall apply

from the valuation date for a period of y years, and thereafter the immediate annuity rate shall apply; (3) For benefits for which the deferral

period is y years (where y is an integer and n1 < y—n1 + n2), interest rate i2 shall apply from the valuation date for a period of y≤n1 years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate annuity rate shall apply; (4) For benefits for which the deferral period is y years (where y is an integer and y > n1 + n2), interest rate i3 shall apply from the valuation date for a period of y—n1—n2

years, interest rate i2 shall apply for the following n2 years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate

annuity rate shall apply.]

Rate set

For plans with a valuation

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

* * * * * * *

45 07–1–97 08–1–97 5.25 4.50 4.00 4.00 7 8

Issued in Washington, D.C., on this 6th day

of June 1997.

John Seal,

Acting Executive Director, Pension Benefit

Guaranty Corporation.

[FR Doc. 97–15458 Filed 6–12–97; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD07–97–027]

RIN 2115–AE46

Special Local Regulations; Deerfield

Beach, Florida

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: Special temporary local

regulations are being adopted for the

Deerfield Super Boat Grand Prix. The

event will be held on the Atlantic Ocean

off Deerfield Beach, Florida, on July 20,

1997, from 12:30 p.m. until 4 p.m.

Eastern Daylight Time (EDT). The

regulations are needed to provide for the

safety of life on navigable waters during

the event.

DATES: These regulations are effective

between 11:30 a.m. and 4:30 p.m. EDT

on July 20, 1997.

FOR FURTHER INFORMATION CONTACT:

QMCS T.E. KJERULFF Coast Guard

Group Miami, Florida at (305) 535–

4448.

SUPPLEMENTARY INFORMATION:

Background and Purpose

Super Boat International Productions

Inc., is sponsoring a high speed power

boat race with approximately thirty-five

(35) race boats participating in the

event, ranging in length from 24 to 50

feet. There will be approximately two

hundred (200) spectator craft. The race

will take place in the Atlantic Ocean

1,300 feet off the Deerfield Beach shore

from Hillsboro Inlet to Boca Raton Inlet.

The race boats will be competing at high

speeds with numerous spectator craft in

the area, creating an extra or unusual

hazard in the navigable waterways.

In accordance with 5 U.S.C. § 553, a

notice of proposed rulemaking has not

been published for these regulations.

Following normal rulemaking

procedures would have been

impracticable, as there was not

sufficient time remaining to publish

proposed rules in advance of the event,

as the request for the regulations was

received less that two months before the

event.

Discussion of Regulations

These regulations create a regulated

area on July 20, 1997, offshore of

Deerfield Beach, Florida. The

regulations will prohibit entry into the

regulated area by unauthorized vessels

during the duration of the Deerfield

Super Boat Grand Prix. The regulations

will also create an area for spectator

craft to safely view the event.

Regulatory Evaluation

This rule is not a significant

regulatory action under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has been exempted from review

by the Office of Management and

Budget under that order. It is not

significant under the regulatory policies

and procedures of the Department of

Transportation (DOT) (44 FR 11040;

February 26, 1979). The Coast Guard

expects the economic impact of this

proposal to be so minimal that a full

Regulatory Evaluation under paragraph

10e of the regulatory policies and

procedures of DOT is unnecessary.

Entry into the regulated area is

prohibited for only 5.0 hours on the day

of the event.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601–612), the Coast Guard

considered whether this rule will have

a significant economic impact on a

substantial number of small entities.

‘‘Small entities’’ include small

businesses, not-for-profit organizations

that are independently owned and

operated and are not dominant in their

fields, and governmental jurisdictions

with populations of less than 50,000.

The Coast Guard certifies under 5

U.S.C. 605(b) that this rule will not have

a significant economic impact on a

substantial number of small entities as

the regulations will be in effect for

approximately five hours.

Collection of Information

This rule contains no collection of

information requirements under the

Paperwork Reduction Act (44 U.S.C.

3501–3520).

Federalism

This action has been analyzed in

accordance with the principles and

criteria contained in Executive Order

12612, and it has been determined that

the rulemaking does not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

Environmental Assessment

The Coast Guard has considered the

environmental impact of this action and

has determined pursuant to section

2.B.2.e(34)(g) of Commandant

Instruction M16475.1B, that this action

is categorically excluded from further