Federal Register / Vol. 71, No. 220 / Wednesday, November 15, 2006 / Rules and Regulations 66455 

viticultural area, TTB is amending 

paragraph (a) of 27 CFR 9.32. This 

technical amendment clarifies the fact 

that either ‘‘Los Carneros’’ or 

‘‘Carneros’’ standing alone may be used 

as the name of the viticultural area, and 

that both terms are viticulturally 

significant for the purposes of part 4 of 

the TTB regulations. 

Impact on Current Wine Labels 

This technical amendment to the Los 

Carneros viticultural area does not affect 

currently approved wine labels that use 

the ‘‘Los Carneros’’ or ‘‘Carneros’’

names. Part 4 of the TTB regulations 

prohibits any label reference on a wine 

that indicates or implies an origin other 

than the wine’s true place of origin. For 

a wine to be eligible to use as an 

appellation of origin a viticultural area 

name or other term specified as being 

viticulturally significant in part 9 of the 

TTB regulations, at least 85 percent of 

the wine must be derived from grapes 

grown within the area represented by 

that name or other term, and the wine 

must meet the other conditions listed in 

27 CFR 4.25(e)(3). Different rules apply 

if a wine has a brand name containing 

a viticultural area name or other 

viticulturally significant term that was 

used as a brand name on a label 

approved before July 7, 1986. See 27 

CFR 4.39(i)(2) for details. 

Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required, the provisions 

of the Regulatory Flexibility Act (5 

U.S.C. chapter 6) do not apply. 

Inapplicability of Prior Notice and 

Comment and Delayed Effective Date 

Procedures 

Because this regulatory action merely 

codifies an existing policy adopted in 

1983 as part of a prior rulemaking action 

that included a public notice and 

comment period, TTB has determined 

that no notice of proposed rulemaking 

and public comment period are required 

under 5 U.S.C. 553(b). For the same 

reason, this final rule is not subject to 

the delayed effective date requirement 

of 5 U.S.C. 553(d). 

Executive Order 12866 

This final rule is not a significant 

regulatory action as defined by 

Executive Order 12866, 58 FR 51735. 

Therefore, it requires no regulatory 

assessment. 

Drafting Information 

N. A. Sutton of the Regulations and 

Rulings Division drafted this notice. 

List of Subjects in 27 CFR Part 9 

Wine. 

The Regulatory Amendment 

For the reasons discussed in the 

preamble, we amend 27 CFR, chapter 1, 

part 9, as follows: 

PART 9—AMERICAN VITICULTURAL 

AREAS 

■ 1. The authority citation for part 9 

continues to read as follows: 

Authority: 27 U.S.C. 205. 

Subpart C—Approved American 

Viticultural Areas 

■ 2. Section § 9.32 is amended by 

revising paragraph (a) to read as follows: 

§ 9.32 Los Carneros. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘Los 

Carneros’’. ‘‘Carneros’’ may also be used 

as the name of the viticultural area 

described in this section. For purposes 

of part 4 of this chapter, ‘‘Los Carneros’’

and ‘‘Carneros’’ are terms of viticultural 

significance. 

* * * * * 

Signed: October 2, 2006. 

John J. Manfreda, 

Administrator. 

Approved: October 13, 2006. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. E6–19231 Filed 11–14–06; 8:45 am] 

BILLING CODE 4810–31–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 December 2006. Interest 

assumptions are also published on the 

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

DATES: Effective December 1, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, Legislative and 

Regulatory Department, Pension Benefit 

Guaranty Corporation, 1200 K Street, 

NW., Washington, DC 20005, 202–326–

4024. (TTY/TDD users may call the 

Federal relay service toll-free 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). 

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 December 2006, 

(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 

December 2006, 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 

December 2006. 

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 5.80 

percent for the first 20 years following 

the valuation date and 4.75 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for November 2006) of 0.10 

percent for the first 20 years following 

the valuation date and are otherwise 

unchanged. These interest assumptions 


rmajette on PROD1PC67 with RULES1
66456 Federal Register / Vol. 71, No. 220 / Wednesday, November 15, 2006 / Rules and Regulations 

reflect the PBGC’s recently updated 

mortality assumptions, which are 

effective for terminations on or after 

January 1, 2006. See the PBGC’s final 

rule published December 2, 2005 (70 FR 

72205), which is available at http:// 

www.pbgc.gov/docs/05–23554.pdf. 

Because the updated mortality 

assumptions reflect improvements in 

mortality, these interest assumptions are 

higher than they would have been using 

the old mortality assumptions. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 3.00 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 

represent an increase (from those in 

effect for November 2006) of 0.25 

percent in the immediate annuity rate 

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 current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during December 2006, 

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 

158, as set forth below, is added to the 

table. 

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

* * * * * * * 

158 12–1–06 1–1–07 3.00 4.00 4.00 4.00 7 8 

■ 3. In appendix C to part 4022, Rate Set 

158, as set forth below, is added to the 

table. 

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

* * * * * * * 

158 12–1–06 1–1–07 3.00 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 for December 2006, as set forth 

below, is added to the table. 

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 = 

* * * * * * * 

December 2006 ........................................................................................ .0580 1–20 .0475 >20 N/A N/A 


rmajette on PROD1PC67 with RULES1
Federal Register / Vol. 71, No. 220 / Wednesday, November 15, 2006 / Rules and Regulations 66457 

Issued in Washington, DC, on this 8th day 

of November 2006. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E6–19257 Filed 11–14–06; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 235 

[DOD–2005–OS–0149] 

RIN 0790–AH86 

Sale or Rental of Sexually Explicit 

Material on DoD Property (DoD 

Instruction 4105.70) 

AGENCY: Department of Defense. 

ACTION: Final rule. 

SUMMARY: This rule prohibits the sale or 

rental of sexually explicit material on 

property under DoD jurisdiction. It 

establishes responsibilities for 

monitoring compliance, establishes a 

review board to determine whether a 

material offered for sale or rental is 

sexually explicit as consistent with the 

definition in 10 U.S.C. 2489a, and 

delineates review board procedures. 

This updated rule includes 

administrative changes and one new 

policy allowing materials which have 

been determined by the Board to be 

sexually explicit to be submitted for 

reconsideration every 5 years. 

DATES: Effective Date: December 15, 

2006. 

FOR FURTHER INFORMATION CONTACT: 

Commander F. Stich, 703–602–4601. 

SUPPLEMENTARY INFORMATION: On 

December 19, 2005 (70 FR 75091) the 

Department of Defense published the 

proposed rule for public comment. 

Twenty-eight comments were posted, 14 

of which merited a response: 

1. Comment posted 1/12/06: 

General Comment: I don’t think the 

DoD should be selling or renting 

sexually explicit material other than 

artistic publications such as Playboy. 

DoD response: The Part, which 

implements 10 U.S.C. 2489a, prohibits 

the sale or rental of sexually explicit 

material on property under DoD 

jurisdiction, as well as the sale or rental 

of sexually explicit material by DoD 

military and civilian personnel acting in 

an official capacity. 

2. Comment posted 2/2/06: 

General Comment: In addition to 

appointing senior representative to the 

Resale Activities Board of Review, there 

should also be a consumer group 

composed of enlisted members and 

officers to help analyze material for 

decency. 

DoD response: Forming the suggested 

consumer group is unnecessary. The 

Resale Activities Board of Review 

includes civilian representatives from 

the Army, Navy, and Air Force who are 

capable of identifying sexually explicit 

material. 

3. Comment posted 2/6/06: 

General Comment: I think that the 

proposed rule to prohibit sexually 

explicit material being sold on the 

property of the Department of Defense 

and by those employed by the 

Department of Defense is a bit too 

restricting. I can understand prohibiting 

it on government property, however, 

prohibiting those employed by the 

Department of Defense has gone too far. 

It is not the government’s job to regulate 

what people do with their private lives. 

It’s like telling people that they can’t 

smoke if they want to work for that 

person. 

DoD response: The Part does not 

prohibit DoD personnel from possessing 

sexually explicit material. It prohibits 

the sale or rental of sexually explicit 

material on property under DoD 

jurisdiction, and it prohibits the sale or 

rental of sexually explicit material by 

DoD military and civilian personnel 

when acting in an official capacity. 

4. Comment posted 2/6/06: 

General Comment: It seems that if 

magazines and videos containing 

sexually explicit materials are to be 

restricted but books containing sexually 

explicit materials are not, then a double 

standard is being created. In essence 

sexually explicit materials are 

acceptable in one format but not in 

another. Either all sexually explicit 

materials should be allowed or it all 

should be banned. 

DoD response: The Part is consistent 

with 10 U.S.C. 2489a, which does not 

include books in the definition of 

‘‘sexually explicit material.’’

5. Comment posted 2/6/06: 

General Comment: I think the military 

should be able to possess whatever 

types of media they choose, as long as 

it does not violate the law. 

DoD response: The Part does not 

regulate possession of sexually explicit 

material by DoD military and civilian 

employees. It prohibits the sale or rental 

of sexually explicit material on property 

under the DoD jurisdiction, and it 

prohibits the sale or rental of sexually 

explicit material by DoD military and 

civilian employees acting in an official 

capacity. 

6. Comment posted 2/6/06: 

General Comment: I don’t see how the 

barring of sale or rental of pornographic 

materials is going to help anything. If 

the issue is pornography on property 

owned by the Dept. of Defense, then 

possession of it should be banned 

entirely. 

DoD response: The Part does not 

regulate the possession of sexually 

explicit material by DoD military and 

civilian employees. It prohibits the sale 

or rental of sexually explicit material on 

property under DoD jurisdiction, and by 

DoD civilian and military employees 

when acting in an official capacity. 

7. Comment posted 2/6/06: 

General Comment: I believe that this 

proposed rule is too restrictive based on 

the fact that all DoD property is 

included. While explicit materials 

should be restricted from certain areas 

under DoD’s property, such as work 

areas, other property, such as personal 

living areas, should not be included. 

DoD response: The Part does not 

prohibit the possession of sexually 

explicit material by DoD military and 

civilian employees. It prohibits the sale 

or rental of sexually explicit material on 

property under DoD jurisdiction, and by 

DoD military and civilian employees 

when acting in an official capacity. 

8. Comment posted 2/6/06: 

General Comment: I think this 

regulation needs some clarification. I 

would also like to know why the 

government has banned trade of 

sexually explicit material in the armed 

forces. 

DoD response: The Part implements 

10 U.S.C. 2489a, which prohibits the 

sale or rental of sexually explicit 

material on property under DoD 

jurisdiction, and by DoD military and 

civilian employees when acting in an 

official capacity. 

9. Comment posted 2/6/06: 

General Comment: The Department of 

Defense should not restrict the rights of 

military personnel more so than the 

general public. If military people want 

to look at pornographic material that is 

available in the open market, they 

should be allowed to do so. 

DoD response: The Part does not 

prohibit the possession of sexually 

explicit material by DoD civilian or 

military employees. It prohibits the sale 

or rental of sexually explicit material on 

property under DoD jurisdiction, and by 

DoD military and civilian employees 

when acting in an official capacity. 

10. Comment posted 2/6/06: 

General Comment: What is rationale 

behind not allowing members of the 

armed forces to view these materials? 


rmajette on PROD1PC67 with RULES1