37944 Federal Register / Vol. 62, No. 135 / Tuesday, July 15, 1997 / Notices

The schedule for Commission

meetings is subject to change on short

notice. To verify the status of meetings

call (Recording)—(301) 415–1292.

CONTACT PERSON FOR MORE INFORMATION:

Bill Hill, (301) 415–1661.

The NRC Commission Meeting

Schedule can be found on the Internet

at:

http://www./nrc.gov/SECY/smj/

schedule.htm

This notice is distributed by mail to

several hundred subscribers; if you no

longer wish to receive it, or would like

to be added to it, please contact the

Office of the Secretary, Attn: Operations

Branch, Washington, D.C. 20555 (301–

415–1661).

In addition, distribution of this

meeting notice over the internet system

is available. If you are interested in

receiving this Commission meeting

schedule electronically, please send an

electronic message to wmh@nrc.gov or

dkw@nrc.gov.

Dated: July 11, 1997.

William M. Hill, Jr.,

Secy, Tracking Officer, Office of the Secretary.

[FR Doc. 97–18759 Filed 7–11–97; 3:43 pm]

BILLING CODE 7590–01–M

PENSION BENEFIT GUARANTY

CORPORATION

Interest Assumption for Determining

Variable-Rate Premium; Interest on

Late Premium Payments; Interest on

Underpayments and Overpayments of

Single-Employer Plan Termination

Liability and Multiemployer Withdrawal

Liability; Interest Assumptions for

Multiemployer Plan Valuations

Following Mass Withdrawal

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Notice of interest rates and

assumptions.

SUMMARY: This notice informs the public

of the interest rates and assumptions to

be used under certain Pension Benefit

Guaranty Corporation regulations. These

rates and assumptions are published

elsewhere (or are derivable from rates

published elsewhere), but are collected

and published in this notice for the

convenience of the public. Interest rates

are also published on the PBGC’s home

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

DATES: The interest rate for determining

the variable-rate premium under part

4006 applies to premium payment years

beginning in July 1997. The interest

assumptions for performing

multiemployer plan valuations

following mass withdrawal under part

4281 apply to valuation dates occurring

in August 1997. The interest rates for

late premium payments under part 4007

and for underpayments and

overpayments of single-employer plan

termination liability under part 4062

and multiemployer withdrawal liability

under part 4219 apply to interest

accruing during the third quarter (July

through September) of 1997.

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 (202–326–4179

for TTY and TDD).

SUPPLEMENTARY INFORMATION:

Variable-Rate Premiums

Section 4006(a)(3)(E)(iii)(II) of the

Employee Retirement Income Security

Act of 1974 (ERISA) and § 4006.4(b)(1)

of the PBGC’s regulation on Premium

Rates (29 CFR part 4006) prescribe use

of an assumed interest rate in

determining a single-employer plan’s

variable-rate premium. The rate is the

‘‘applicable percentage’’ (described in

the statute and the regulation) of the

annual yield on 30-year Treasury

securities for the month preceding the

beginning of the plan year for which

premiums are being paid (the ‘‘premium

payment year’’). The yield figure is

reported in Federal Reserve Statistical

Releases G.13 and H.15.

For plan years beginning before July

1, 1997, the applicable percentage of the

30-year Treasury yield has been 80

percent. The Retirement Protection Act

of 1994 (RPA) amended ERISA section

4006(a)(3)(E)(iii)(II) to provide that the

applicable percentage is 85 percent for

plan years beginning on or after July 1,

1997, through (at least) plan years

beginning before January 1, 2000.

However, under section 774(c) of the

RPA, the application of the amendment

is deferred for certain regulated public

utility (RPU) plans for as long as six

months. The applicable percentage for

RPU plans will therefore remain 80

percent for plan years beginning before

January 1, 1998. (The rules governing

the applicable percentages for ‘‘partial’’

RPU plans are described in § 4006.5(g)

of the premium rates regulation.)

For plans for which the applicable

percentage is 85 percent, the assumed

interest rate to be used in determining

variable-rate premiums for premium

payment years beginning in July 1997 is

5.75 percent (i.e., 85 percent of the 6.77

percent yield figure for June 1997).

The following table lists the assumed

interest rates to be used in determining

variable-rate premiums for premium

payment years beginning between

August 1996 and July 1997. The rate for

July 1997 in the table reflects an

applicable percentage of 85 percent and

thus applies only to non-RPU plans.

However, the rates for months before

July 1997, which reflect an applicable

percentage of 80 percent, apply to RPU

(and ‘‘partial’’ RPU) plans as well as to

non-RPU plans.

For premium payment years

beginning in—

The assumed interest rate

is—

August 1996 .............................. 5.62

September 1996 ....................... 5.47

October 1996 ............................ 5.62

November 1996 ........................ 5.45

December 1996 ........................ 5.18

January 1997 ............................ 5.24

February 1997 .......................... 5.46

March 1997 ............................... 5.35

April 1997 .................................. 5.54

May 1997 .................................. 5.67

June 1997 ................................. 5.55

July 1997 .................................. 5.75

For premium payment years

beginning in July 1997, the assumed

interest rate to be used in determining

variable-rate premiums for RPU plans

(determined using an applicable

percentage of 80 percent) is 5.42

percent. For ‘‘partial’’ RPU plans, the

assumed interest rates to be used in

determining variable-rate premiums can

be computed by applying the rules in

§ 4006.5(g) of the premium rates

regulation. The PBGC’s premium

payment instruction booklet also

describes these rules and provides a

worksheet for computing the assumed

rate.

Late Premium Payments;

Underpayments and Overpayments of

Single-Employer Plan Termination

Liability

Section 4007(b) of ERISA and

§ 4007.7(a) of the PBGC’s regulation on

Payment of Premiums (29 CFR part

4007) require the payment of interest on

late premium payments at the rate

established under section 6601 of the

Internal Revenue Code. Similarly,

§ 4062.7 of the PBGC’s regulation on

Liability for Termination of Singleemployer Plans (29 CFR part 4062)

requires that interest be charged or

credited at the section 6601 rate on

underpayments and overpayments of

employer liability under section 4062 of

ERISA. The section 6601 rate is

established periodically (currently

quarterly) by the Internal Revenue

Service. The rate applicable to the third

quarter (July through September) of

1997, as announced by the IRS, is 9

percent.
Federal Register / Vol. 62, No. 135 / Tuesday, July 15, 1997 / Notices 37945

1Custody of Investment Company Assets With

Futures Commission Merchants and Commodity

Clearing Organizations, Investment Company Act

Release No. 22389 (Dec. 11, 1996) [61 FR 66207

(Dec. 17, 1996)].

The following table lists the late

payment interest rates for premiums and

employer liability for the specified time

periods:

From— Through—

Interest

rate

(percent)

4/1/91 .................... 12/31/91 10

1/1/92 .................... 3/31/92 9

4/1/92 .................... 9/30/92 8

10/1/92 .................. 6/30/94 7

7/1/94 .................... 9/30/94 8

10/1/94 .................. 3/31/95 9

4/1/95 .................... 6/30/95 10

7/1/95 .................... 3/31/96 9

4/1/96 .................... 6/30/96 8

7/1/96 .................... 12/31/96 9

1/1/97 .................... 3/31/97 9

4/1/97 .................... 6/30/97 9

7/1/97 .................... 9/30/97 9

Underpayments and Overpayments of

Multiemployer Withdrawal Liability

Section 4219.32(b) of the PBGC’s

regulation on Notice, Collection, and

Redetermination of Withdrawal

Liability (29 CFR part 4219) specifies

the rate at which a multiemployer plan

is to charge or credit interest on

underpayments and overpayments of

withdrawal liability under section 4219

of ERISA unless an applicable plan

provision provides otherwise. For

interest accruing during any calendar

quarter, the specified rate is the average

quoted prime rate on short-term

commercial loans for the fifteenth day

(or the next business day if the fifteenth

day is not a business day) of the month

preceding the beginning of the quarter,

as reported by the Board of Governors

of the Federal Reserve System in

Statistical Release H.15 (‘‘Selected

Interest Rates’’). The rate for the third

quarter (July through September) of

1997 (i.e., the rate reported for June 16,

1997) is 8.50 percent.

The following table lists the

withdrawal liability underpayment and

overpayment interest rates for the

specified time periods:

From— Through— Rate

(percent)

7/1/91 .................... 9/30/91 8.50

10/1/91 .................. 12/31/91 8.00

1/1/92 .................... 3/31/92 7.50

4/1/92 .................... 9/30/92 6.50

10/1/92 .................. 6/30/94 6.00

7/1/94 .................... 9/30/94 7.25

10/1/94 .................. 12/31/94 7.75

1/1/95 .................... 3/31/95 8.50

4/1/95 .................... 9/30/95 9.00

10/1/95 .................. 3/31/96 8.75

4/1/96 .................... 12/31/96 8.25

1/1/97 .................... 3/31/97 8.25

4/1/97 .................... 6/30/97 8.25

7/1/97 .................... 9/30/97 8.50

Multiemployer Plan Valuations

Following Mass Withdrawal

The PBGC’s regulation on Duties of

Plan Sponsor Following Mass

Withdrawal (29 CFR part 4281)

prescribes the use of interest

assumptions under the PBGC’s

regulation on Allocation of Assets in

Single-employer Plans (29 CFR part

4044). The interest assumptions

applicable to valuation dates in August

1997 under part 4044 are contained in

an amendment to part 4044 published

elsewhere in today’s Federal Register.

Tables showing the assumptions

applicable to prior periods are codified

in appendix B to 29 CFR part 4044.

Issued in Washington, DC, on this 10th day

of July 1997.

John Seal,

Acting Executive Director, Pension Benefit

Guaranty Corporation.

[FR Doc. 97–18573 Filed 7–14–97; 8:45 am]

BILLING CODE 7708–01–P

SECURITIES AND EXCHANGE

COMMISSION

Proposed Collection; Comment

Request

Upon Written Request, Copies

Available From: Securities and

Exchange Commission, Office of Filings

and Information Services, Washington,

DC 20549.

Extension:

Rule 17f–6, SEC File No. 270–392,

OMB Control No. 3235–0447

Rule 2a19–1, SEC File No. 270–294,

OMB Control No. 3235–0332

Rule 17f–2, SEC File No. 270–233,

OMB Control No. 3235–0223

Notice is hereby given that, pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) is soliciting comments

on the collections of information

summarized below. The Commission

plans to submit these existing

collections of information to the Office

of Management and Budget for

extension and approval.

Rule 17f–6 under the Investment

Company Act of 1940 (‘‘Act’’) permits

registered investment companies

(‘‘funds’’) to maintain assets (i.e.,

margin) with futures commission

merchants (‘‘FCMs’’) in connection with

commodity transactions effected on

both domestic and foreign exchanges.1

Prior to the adoption of the rule, funds

generally were required to maintain

such assets in special accounts with a

custodian bank.

Rule 17f–6 permits funds to maintain

their assets with FCMs that are

registered under the Commodity

Exchange Act (‘‘CEA’’) and that are not

affiliated with the fund. The rule

requires that the manner in which the

FCM maintains a fund’s assets be

governed by a written contract, which

must contain certain provisions. First,

the contract must provide that the FCM

must comply with the segregation

requirements of section 4d(2) of the CEA

[7 U.S.C. 6d(2)] and the rules thereunder

[17 CFR Chapter I] or, if applicable, the

secured amount requirements of rule

30.7 under the CEA [17 CFR 30.7].

Second, the contract must provide that

when placing the fund’s margin with

another entity for clearing purposes, the

FCM must obtain an acknowledgment

that the fund’s assets are held on behalf

of the FCM’s customers in accordance

with provisions under the CEA. Lastly,

the contract must require the FCM,

upon request, to furnish records on the

fund’s assets to the Commission or its

staff.

The requirement of a written contract

that contains certain provisions ensure

important safeguards and other benefits

relative to the custody of investment

company assets by FCMs. For example,

requiring FCMs upon request to furnish

to the Commission or its staff

information concerning the investment

company’s assets facilitates Commission

inspections of investment companies.

The contract requirement governing

transfers of investment company margin

seeks to accommodate the legitimate

needs of the participants in the

commodity settlement process,

consistent with the safekeeping of

investment company assets. The

contract requirement requiring FCMs to

comply with the segregation or secured

amount requirements of the CEA and

the rules thereunder is designed to

safeguard fund assets held by FCMs.

The Commission estimates that

approximately 2,000 investment

companies could deposit margin with

FCMs under rule 17f–6 in connection

with their investments in futures

contracts and commodity options. It is

estimated that each investment

company uses and deposits margin with

3 different FMCs in connection with its

commodity transactions. Approximately

241 FCMs are eligible to hold