75420 Federal Register / Vol. 71, No. 241 / Friday, December 15, 2006 / Rules and Regulations 

and other selected services. ‘‘Other 

selected services’’ includes, but is not 

limited to: Account collection services; 

disbursements to fund news-gathering 

costs of broadcasters; disbursements to 

fund news-gathering costs of print 

media; disbursements to fund 

production costs of motion pictures; 

disbursements to fund production costs 

of broadcast program material other 

than news; disbursements to maintain 

government tourism and business 

promotion offices; disbursements for 

sales promotion and representation; 

disbursements to participate in foreign 

trade shows (purchases only); 

employment agencies and temporary 

help supply services; language 

translation services; mailing, 

reproduction, and commercial art; 

medical services (non-patient—e.g., 

laboratory or diagnostic services); 

salvage services; satellite photography 

and remote sensing/satellite imagery 

services; security services; space 

transport (includes satellite launches, 

transport of goods and people for 

scientific experiments, and space 

passenger transport); transcription 

services; and waste treatment and 

depollution services. The intangible 

assets covered by the BE–120 survey are 

rights related to: Industrial processes 

and products; books, compact discs, 

audio tapes and other copyrighted 

material and intellectual property; 

trademarks, brand names, and 

signatures; performances and events 

pre-recorded on motion picture film and 

television tape, including digital 

recording; broadcast and recording of 

live performances and events; general 

use computer software; business format 

franchising fees; and other intangible 

assets, including indefeasible rights of 

users. 

[FR Doc. E6–21429 Filed 12–14–06; 8:45 am] 

BILLING CODE 3510–07–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 January 2007. Interest 

assumptions are also published on the 

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

DATES: Effective January 1, 2007. 

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 January 2007, (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 

January 2007, 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 January 2007. 

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 4.88 

percent for the first 20 years following 

the valuation date and 4.55 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for December 2006) of 0.92 

percent for the first 20 years following 

the valuation date and 0.20% for all 

years thereafter. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 2.75 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 a decrease (from those in 

effect for December 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 January 2007, 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: 


cprice-sewell on PROD1PC66 with RULES
Federal Register / Vol. 71, No. 241 / Friday, December 15, 2006 / Rules and Regulations 75421 

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 

159, 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

* * * * * * * 

159 1–1–07 2–1–07 2.75 4.00 4.00 4.00 7 8 

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

159, 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

* * * * * * * 

159 1–1–07 2–1–07 2.75 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 January 2007, 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 = 

* * * * * * * 

January 2007 .................................................................... .0488 1–20 .0455 >20 N/A N/A 

Issued in Washington, DC, on this 12th day 

of December 2006. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E6–21444 Filed 12–14–06; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Parts 151 and 158 

46 CFR Parts 30, 98, 151, and 153 

[USCG–2006–26341] 

Revised MARPOL Annex II and IBC 

Code Implementation: Publication of 

Guidelines 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of availability. 

SUMMARY: The Coast Guard announces 

the availability of Navigation and Vessel 

Inspection Circular (NVIC) No. 03–06, 

titled ‘‘Guidance on Implementation of 

Revisions to MARPOL Annex II and the 

IBC Code.’’ This NVIC provides 

guidelines on how the revisions to 

Annex II of the International 

Convention for the Prevention of 

Pollution from Ships, 1973, as modified 

by the Protocol of 1978 relating thereto 

(MARPOL), and the International Code 

for the Construction and Equipment of 

Ships Carrying Dangerous Chemicals in 

Bulk (IBC Code) will be implemented in 

the U.S. These revisions come into force 

internationally on January 1, 2007. 

DATES: The Coast Guard issued NVIC 

03–06 on November 28, 2006. 

ADDRESSES: You may request a copy of 

NVIC 03–06 from U.S. Coast Guard 

Headquarters (CG–3PSO–3), Room 1214, 

2100 2nd Street, SW., Washington, DC 

20593. The NVIC is available on the 

Internet at: http://www.uscg.mil/hq/g-m/ 

nvic/index.htm. It is also available in 

the public docket (USCG–2006–26341) 

and is available for inspection or 


cprice-sewell on PROD1PC66 with RULES