Federal Register / Vol. 66, No. 116 / Friday, June 15, 2001 / Rules and Regulations 32543

Approved: June 1, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Mark A. Weinberger,

Assistant Secretary of the Treasury.

[FR Doc. 01–14815 Filed 6–14–01; 8:45 am]

BILLING CODE 4830–01–P

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 2001. Interest assumptions

are also published on the PBGC’s Web

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

EFFECTIVE DATE: July 1, 2001.

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).

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 2001, (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

2001, 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 2001.

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 6.60

percent for the first 20 years following

the valuation date and 6.25 percent

thereafter. These interest assumptions

are unchanged from those in effect for

June 2001.

The interest assumptions that the

PBGC will use for its own lump-sum

payments (set forth in Appendix B to

part 4022) will be 5.00 percent for the

period during which a benefit is in pay

status, 4.25 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 are

unchanged from those in effect for June

2001.

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 2001, 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

93, 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 valuataion

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

32544 Federal Register / Vol. 66, No. 116 / Friday, June 15, 2001 / Rules and Regulations

Rate set

For plans with a valuataion

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

*******

93 7–1–01 8–1–01 5.00 4.25 4.00 4.00 7 8

3. In appendix C to part 4022, Rate Set 93, 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 valuataion

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

*******

93 7–1–01 8–1–01 5.00 4.25 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 =

*******

July 2001 .......................................................................... .0660 1–20 .0625 >20 N/A N/A

Issued in Washington, DC, on this 11th day

of June 2001.

John Seal,

Acting Executive Director, Pension Benefit

Guaranty Corporation.

[FR Doc. 01–15156 Filed 6–14–01; 8:45 am]

BILLING CODE 7708–01–P

POSTAL RATE COMMISSION

39 CFR Part 3000

[Docket No. RM2001–1; Order No. 1313]

Revision to Standards of Conduct

AGENCY: Postal Rate Commission.

ACTION: Final rule.

SUMMARY: The Commission is updating

its standards of conduct to reflect

government-wide ethics rules. This

entails eliminating existing, redundant

procedures for reviewing employees’

security holdings for conflicts of

interests. This change will help avoid

confusion in administration of the

Commission’s ethics program.

DATES: Effective June 15, 2001.

ADDRESSES: Send comments to Steven

W. Williams, Acting Secretary, Postal

Rate Commission, 1333 H Street NW.,

Suite 300, Washington, DC 20268–0001.

FOR FURTHER INFORMATION CONTACT:

Stephen L. Sharfman, 202–789–6820.

SUPPLEMENTARY INFORMATION:

A. Regulatory History

66 FR 11242–43 (Order No. 1303);

Order No. 1313 (May 15, 2001).

B. Background

On February 7, 2001, the Commission

issued a notice of proposed rulemaking

proposing to delete rule 103(b) (39 CFR

3000.735.103(b)) from the Commission’s

standards of conduct. See order no.

1303 published in the Federal Register

on Friday, February 23, 2001 (66 FR

11242–43).

Rule 103(b) was a de minimis rule. It

provided that security interests held by

a Commission employee that were

valued below a certain amount would

receive a different level of scrutiny for

conflicts of interest than security

interests valued above the specified

amount. The notice observed that this

provision had been superceded by, and

become duplicative of, governmentwide ethical standards and screening

procedures. To conform the

Commission’s standards of conduct

with government-wide ethics rules and

financial disclosure procedures, the

Commission proposed that rule 103(b)

be deleted.

The notice provided a 30-day period

from the date of its publication in the

Federal Register for public comment.

No comments were received.

Accordingly, the proposal is adopted as

proposed.

Rule 103(b) (39 CFR 3000.735.103(b))

is hereby deleted from the