37482 Federal Register / Vol. 65, No. 116 / Thursday, June 15, 2000 / Rules and Regulations

§ 1.1032–3 Disposition of stock or stock

options in certain transactions not

qualifying under any other nonrecognition

provision.

* * * * *

(c) * * *

(1) The acquiring entity acquires stock

of the issuing corporation directly or

indirectly from the issuing corporation

in a transaction in which, but for this

section, the basis of the stock of the

issuing corporation in the hands of the

acquiring entity would be determined,

in whole or in part, with respect to the

issuing corporation’s basis in the issuing

corporation’s stock under section 362(a)

or 723 (provided that, in the case of an

indirect acquisition by the acquiring

entity, the transfers of issuing

corporation stock through intermediate

entities occur immediately after one

another);

* * * * *

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 00–15036 Filed 6–14–00; 8:45 am]

BILLING CODE 4830–01–U

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 July 2000. Interest assumptions

are also published on the PBGC’s web

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

EFFECTIVE DATE: July 1, 2000.

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. (For TTY/TDD

users, 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). (See the PBGC’s two final

rules published March 17, 2000, in the

Federal Register (at 65 FR 14752 and

14753). Effective May 1, 2000, these

rules changed how the interest

assumptions are used and where they

are set forth in the PBGC’s regulations.)

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 July 2000, (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 July

2000, 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 July 2000.

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 7.40

percent for the first 25 years following

the valuation date and 6.25 percent

thereafter. These interest assumptions

represent an increase (from those in

effect for June 2000) of 0.30 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 5.50 percent for the

period during which a benefit is in pay

status, 4.75 percent during the sevenyear 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. These interest assumptions

represent an increase (from those in

effect for June 2000) of 0.25 percent for

the period during which a benefit is in

pay status and for the seven-year period

directly preceding the benefit’s

placement in pay status and are

otherwise unchanged.

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 July 2000, 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

81, as set forth below, is added to the

table. (The introductory text of the table

is omitted.)

Federal Register / Vol. 65, No. 116 / Thursday, June 15, 2000 / Rules and Regulations 37483

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

* * * ** * *

81 ...................................... 7–1–00 8–1–00 5.50 4.75 4.00 4.00 7 8

3. In appendix C to part 4022, Rate Set 81, as set forth below, is added to the table. (The introductory text

of the table is omitted.)

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

* * * ** * *

81 ...................................... 7–1–00 8–1–00 5.50 4.75 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 i are:

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

*******

July 2000 .............................................................................. .0740 1–25 0625 >25 N/A N/A

Issued in Washington, DC, on this 8th day

of June 2000.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 00–15118 Filed 6–14–00; 8:45 am]

BILLING CODE 7708–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 300

[FRL–6711–8]

National Oil and Hazardous Substance

Pollution Contingency Plan; National

Priorities List

AGENCY: Environmental Protection

Agency.

ACTION: Notice of Partial Deletion of

Moton Elementary School, including

Mugrauer Playground (Operable Unit 4)

and Groundwater (Operable Unit 5) of

the Agriculture Street Landfill

Superfund Site from the National

Priorities List.

SUMMARY: The Environmental Protection

Agency (EPA) Region 6 announces the

deletion of Moton Elementary School,

including Mugrauer Playground

(Operable Unit 4) and Groundwater

(Operable Unit 5) of the Agriculture

Street Landfill Superfund Site from the

National Priorities List (NPL).

The NPL, promulgated pursuant to

section 105 of the Comprehensive

Environmental Response,

Compensation, and Liability Act

(CERCLA) of 1980, as amended,

constitutes Appendix B of 40 CFR Part

300 which is the National Oil and

Hazardous Substances Pollution

Contingency Plan (NCP). This partial

deletion is consistent with the EPA’s

Notice of Policy Change: Policy

Regarding Partial Deletion of Sites