65610 Federal Register / Vol. 62, No. 240 / Monday, December 15, 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

* * * * * * *

51 01–1–98 02–1–98 4.25 4.00 4.00 4.00 7 8

Issued in Washington, D.C., on this 10th

day of December 1997.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 97–32731 Filed 12–12–97; 8:45 am]

BILLING CODE 7708–01–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits

and Assets; Expected Retirement Age

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends the Pension

Benefit Guaranty Corporation’s

regulation on Allocation of Assets in

Single-Employer Plans by substituting

new Table I–98 in place of existing

Table I–97 in appendix D. Table I–98

applies to any plan being terminated

either in a distress termination or

involuntarily by the PBGC with a

valuation date falling in 1998, and is

used to determine expected retirement

ages for plan participants. This table is

needed in order to compute the value of

early retirement benefits and, thus, the

total value of benefits under the plan.

EFFECTIVE DATE: January 1, 1998.

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

20005–4026; 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) sets forth (in subpart B)

the methods for valuing plan benefits of

terminating single-employer plans

covered under Title IV of the Employee

Retirement Income Security Act of 1974.

Under ERISA section 4041(c), plans

wishing to terminate in a distress

termination must value guaranteed

benefits and benefit liabilities under the

plan in accordance with part 4044,

subpart B. In addition, when the PBGC

terminates an underfunded plan

involuntarily pursuant to ERISA Section

4042(a), it uses the subpart B valuation

rules to determine the amount of the

plan’s underfunding.

Under § 4044.51(b), early retirement

benefits are valued based on the annuity

starting date, if a retirement date has

been selected, or the expected

retirement age, if the annuity starting

date is not known on the valuation date.

Sections 4044.55 through 4044.57 set

forth rules for determining the expected

retirement ages for plan participants

entitled to early retirement benefits.

Appendix D of part 4044 contains tables

to be used in determining the expected

early retirement ages.

Table I in appendix D (Selection of

Retirement Rate Category) is used to

determine whether a participant has a

low, medium, or high probability of

retiring early. The determination is

based on the year a participant would

reach ‘‘unreduced retirement age’’ (i.e.,

the earlier of the normal retirement age

or the age at which an unreduced

benefit is first payable) and the

participant’s monthly benefit at

unreduced retirement age. The table

applies only to plans with valuation

dates in the current year and is updated

annually by the PBGC to reflect changes

in the cost of living, etc.

(The PBGC’s general practice has been

to issue annual update amendments on

or about December 15 of each year, at

the same time it issues interest updates

for other regulations. However, the

information needed to update the

expected retirement age table is

typically available earlier than the

information for the interest updates. The

PBGC intends in the future to publish

annual updates of the expected

retirement age table earlier than

December 15.)

Tables II–A, II–B, and II–C (Expected

Retirement Ages for Individuals in the

Low, Medium, and High Categories

respectively) are used to determine the

expected retirement age after the

probability of early retirement has been

determined using Table I. These tables

establish, by probability category, the

expected retirement age based on both

the earliest age a participant could retire

under the plan and the unreduced

retirement age. This expected retirement

age is used to compute the value of the

early retirement benefit and, thus, the

total value of benefits under the plan.

This document amends appendix D to

replace Table I–97 with Table I–98 in

order to provide an updated correlation,

appropriate for calendar year 1998,

between the amount of a participant’s

benefit and the probability that the

participant will elect early retirement.

Table I–98 will be used to value benefits

in plans with valuation dates during

calendar year 1998.

The PBGC has determined that notice

of and public comment on this rule are

impracticable and contrary to the public

interest. Plan administrators need to be

able to estimate accurately the value of

plan benefits as early as possible before

initiating the termination process. For

that purpose, if a plan has a valuation

date in 1998, the plan administrator

needs the updated table being

promulgated in this rule. Accordingly,

the public interest is best served by

issuing this table expeditiously, without

an opportunity for notice and comment,

to allow as much time as possible to

estimate the value of plan benefits with

the proper table for plans with valuation

dates in early 1998. Moreover, because

of the need to provide immediate

guidance for the valuation of benefits
Federal Register / Vol. 62, No. 240 / Monday, December 15, 1997 / Rules and Regulations 65611

under such plans, and because no

adjustment by ongoing plans is required

by this amendment, the PBGC finds that

good cause exists for making this

amendment to the regulation 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

regulation, the Regulatory Flexibility

Act of 1980 does not apply (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—[AMENDED]

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. Appendix D to part 4044 is

amended by removing Table I–97 and

adding in its place Table I–98 to read as

follows:

APPENDIX D TO PART 4044—TABLES USED TO DETERMINE EXPECTED RETIREMENT AGE

TABLE I–98.—SELECTION OF RETIREMENT RATE CATEGORY

[For Plans with valuation dates after December 31, 1997, and before January 1, 1999]

Participant reaches URA in year—

Participant’s retirement Rate category is—

Low 1 if

monthly

benefit at

URA is less

than—

Medium 2 if monthly benefit

at URA is

High 3 if

monthly

benefit at

URA is

greater

From To than—

1999 .................................................................................................................................. 419 419 1,766 1,766

2000 .................................................................................................................................. 431 431 1,814 1,814

2001 .................................................................................................................................. 442 442 1,863 1,863

2002 .................................................................................................................................. 454 454 1,913 1,913

2003 .................................................................................................................................. 466 466 1,965 1,965

2004 .................................................................................................................................. 479 479 2,018 2,018

2005 .................................................................................................................................. 492 492 2,072 2,072

2006 .................................................................................................................................. 505 505 2,128 2,128

2007 .................................................................................................................................. 519 519 2,186 2,186

2008 or later ..................................................................................................................... 533 533 2,245 2,245

1Table II–A.

2Table II–B.

3Table II–C.

* * * * *

Issued at Washington, D.C., this 10th day

of December, 1997.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 97–32734 Filed 12–12–97; 8:45 am]

BILLING CODE 7708–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[CA 179–0061; FRL–5929–9]

Approval and Promulgation of

Implementation Plans; California State

Implementation Plan Revision; Bay

Area Air Quality Management District

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule.

SUMMARY: EPA is finalizing the approval

of revisions to the California State

Implementation Plan (SIP) proposed in

the Federal Register on April 17, 1997.

The revisions concern rules from the

Bay Area Air Quality Management

District (BAAQMD). This approval

action will incorporate these rules into

the federally approved SIP. The

intended effect of approving these rules

is to regulate emissions of oxides of

nitrogen (NOX) in accordance with the

requirements of the Clean Air Act, as

amended in 1990 (CAA or the Act). The

rules concern the control of NOX

emissions from boilers, steam

generators, process heaters, stationary

internal combustion engines, stationary

gas turbines, and glass melting furnaces

in the San Francisco Bay area. Thus,

EPA is finalizing the approval of these

revisions into the California SIP under

provisions of the CAA regarding EPA

actions on SIP submittals, and SIPs for

national primary and secondary ambient

air quality standards. The rules are

being approved into the SIP in

accordance with the area’s ozone

maintenance plan for redesignation to

attainment.

DATES: This action is effective on

January 14, 1998.

ADDRESSES: Copies of the rules and

EPA’s evaluation report for each rule are

available for public inspection at EPA’s

Region IX office during normal business

hours. Copies of the submitted rules are

available for inspection at the following

locations:

Rulemaking Office (AIR–4), Air

Division, U.S. Environmental Protection

Agency, Region IX, 75 Hawthorne

Street, San Francisco, CA 94105.

Environmental Protection Agency, Air

Docket (6102), 401 ‘‘M’’ Street, SW.,

Washington, DC 20460.

California Air Resources Board,

Stationary Source Division, Rule

Evaluation Section, 2020 ‘‘L’’ Street,

Sacramento, CA 95812.

Bay Area Air Quality Management

District, Rule Development Section, 939

Ellis Street, San Francisco, CA 94109.

FOR FURTHER INFORMATION CONTACT:

Thomas C. Canaday, Rulemaking Office

(AIR–4), Air Division, U.S.

Environmental Protection Agency,

Region IX, 75 Hawthorne Street, San

Francisco, CA 94105–3901, Telephone:

(415) 744–1202.

SUPPLEMENTARY INFORMATION:

I. Applicability

The BAAQMD rules being approved

into the California SIP include:

Regulation 9, Rule 7, Nitrogen Oxides

and Carbon Monoxide from Industrial,

Institutional, and Commercial Boilers,

Steam Generators, and Process Heaters;