38114 Federal Register / Vol. 64, No. 135 /Thursday, July 15, 1999 /Rules and Regulations

8In other words, carriers, which are currently

required to disclose code-share and change-of-gauge

services in discussions with consumers, would be

required as of August 25 to make these disclosures

before booking transportation, and the same

requirements would apply to travel agents. The new

code-share and long-term wet-lease disclosures

would not be required at this time.

9 It is our understanding that carriers are already

complying with those parts of the schedule notice

requirement that go beyond 14 CFR 257.5(a) and the

oral notice requirement imposes no new

requirement on carriers.

10We tentatively find that imposing the same

requirements on tour operators that those parts of

the rules that are to take effect on August 25 will

impose on travel agents would burden the tour

operators excessively by forcing them to reprogram

their front-end systems not once but twice.

Compliance with some parts of the rules

does not require any CRS

reprogramming. For example, travel

agents, who still sell most air

transportation, are in a position to begin

providing some of this information by

complying with the oral disclosure

portions of the rules that already apply

to carriers. We have therefore tentatively

decided to dispose of the requests for

postponement by granting them only

insofar as necessary—i.e., by only

postponing the effective date until

March 15, 2000, for those parts of the

rules with which carriers and ticket

agents cannot fully comply until the

CRSs have completed their

reprogramming, as specified below. To

this end, we are postponing the effective

date of both rules until August 25, 1999,

and giving interested parties fifteen days

to submit comments on our tentative

findings and the actions they

contemplate. We will issue a final

notice on or before August 25.

Accordingly, this document

postpones the effective date of the CodeSharing Rule, 14 CFR part 257, the

Change-of-Gauge Rule, 14 CFR part 258,

and the removal of 14 CFR 399.88, until

August 25, 1999.

This document also invites comment

on whether the effective date of certain

parts of the rule should be further

extended. In this regard, based on the

petitions and public input received

since parts 257 and 258 were adopted,

the Department believes that the

effective date of the following parts of

the Code-Share Rule should not be

further postponed:

• § 257.1 Purpose.

• § 257.2 Applicability.

• § 257.3 Definitions.

• § 257.4 Unfair and deceptive practice.

• § 257.5 Notice requirement.

(b) Oral notice to prospective consumers,

but only insofar as compliance with this

section does not require reprogramming

by CRSs.8

(d) Advertising.

Similarly, the Department believes the

effective date of the following parts of

the Change-of-Gauge Rule should not be

further postponed:

• § 258.1 Purpose.

• § 258.2 Applicability.

• § 258.3 Definitions.

• § 258.4 Unfair and deceptive practice.

• § 258.5 Notice requirement.

(a) Notice in schedules.

(b) Oral notice to prospective consumers.

However, if the Department views are

not altered by the comments we are

inviting here, the Department will take

further action by August 25, 1999, to

postpone the effective date of the

following parts of the Code-Share Rule

until March 15, 2000:

• § 257.5 Notice requirement.

(a) Notice in schedules.

(b) Oral notice to prospective consumers,

except as specified in paragraph (1).

(c) Written notice.9

Similarly, we would postpone the

effective date of the following part of the

Change-of-Gauge Rule until March 15,

2000:

• § 257.5 Notice requirement.

(c) Written notice.

Finally, we believe that USTOA has

shown good cause for the Department to

refrain as a matter of discretion from

enforcing both rules in their entirety

against tour operators until six months

after March 15, 2000.10

In closing, we strongly encourage the

CRSs and other information systems to

proceed with their reprogramming

efforts with all possible expedition. Any

affected parties that can comply with

the rules before they become effective

should do so. For example, while we are

tentatively agreeing to postpone the

effective date of both rules’ written

notice requirements, we are aware that

some carriers and some travel agents are

already disclosing much of the required

information in the itineraries they

provide to passengers, and we

encourage all sellers of air

transportation to do so who have the

capability.

Regulatory Analyses and Notices

The Department has determined that

this action is not an economically

significant regulatory action under

Executive Order 12866 or the

Department’s Regulatory Policies and

Procedures, and it has not been

reviewed by the Office of Management

and Budget. This rule is significant

under the Department’s Regulatory

Policies and Procedures because of

congressional and public interest. The

rule does not impose unfunded

mandates or requirements that will have

any effect on the quality of the human

environment. A summary of the

regulatory analyses of the rules whose

effective date is being extended here

was published at 64 FR 12850–12851

and 12859, March 15, 1999. Also

published there were discussions of the

rules’ effects on small businesses and

their Federalism and Paperwork

Reduction Act implications. Apart for

the Y2K implications recently brought

to light and addressed above, the

determinations made previously are not

significantly affected by the limited

extensions of the effective date made

and proposed here.

Authority: 49 U.S.C. 41712.

Issued in Washington, DC on July 9, 1999,

under authority delegated by 49 CFR

1.56a(h)2.

A. Bradley Mims,

Acting Assistant Secretary for Aviation and

International Affairs.

[FR Doc. 99–17963 Filed 7–14–99; 8:45 am]

BILLING CODE 4910–62–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

for Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in August 1999. Interest

assumptions are also published on the

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

EFFECTIVE DATE: August 1, 1999.

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 regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest
Federal Register / Vol. 64, No. 135 /Thursday, July 15, 1999 /Rules and Regulations 38115

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions are

prescribed, one set for the valuation of

benefits to be paid as annuities and one

set for the valuation of benefits to be

paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest

assumptions for valuing benefits in

plans with valuation dates during

August 1999.

For annuity benefits, the interest

assumptions will be 6.30 percent for the

first 20 years following the valuation

date and 5.25 percent thereafter. The

annuity interest assumptions represent

an increase (from those in effect for July

1999) of 0.30 percent for the first 20

years following the valuation date and

are otherwise unchanged. For benefits to

be paid as lump sums, the interest

assumptions to be used by the PBGC

will be 5.00 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. The lump sum interest

assumptions represent an increase (from

those in effect for June 1999) of 0.50

percent for the period during which a

benefit is in pay status and are

otherwise unchanged.

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 of

benefits in plans with valuation dates

during August 1999, 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 in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is amended as follows:

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

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. In appendix B, a new entry is

added to Table I, and Rate Set 70 is

added to Table II, as set forth below.

The introductory text of each table is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 4044—Interest Rates Used to Value Annuities and Lump Sums

TABLE I.—ANNUITY VALUATIONS

[This table sets forth, for each indicated calendar month, the interest rates (denoted by i1, i2, . . ., and referred to generally as it) assumed to be

in effect between specified anniversaries of a valuation date that occurs within that calendar month; those anniversaries are specified in the

columns adjacent to the rates. The last listed rate is assumed to be in effect after the last listed anniversary date.]

For valuation dates occurring in the month—

The values of it are:

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

* * * * * * *

August 1999 .......................................................................... .0630 1–20 .0525 >20 N/A N/A

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

* * * * * * *

70 08–1–99 09–1–99 5.00 4.00 4.00 4.00 7 8

Issued in Washington, DC, on this 8th day of July 1999.

David M. Strauss,

Executive Director, Pension Benefit Guaranty Corporation.

[FR Doc. 99–18032 Filed 7–14–99; 8:45 am]

BILLING CODE 7708–01–P