42384 Federal Register / Vol. 61, No. 159 / Thursday, August 15, 1996 / Rules and Regulations

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Rate 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 September 1996.

EFFECTIVE DATE: September 1, 1996.

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: 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 rates

and factors. These interest rates and

factors are intended to reflect current

conditions in the financial and annuity

markets.

Two sets of interest rates and factors

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 rates and

factors for valuing benefits in plans with

valuation dates during September 1996.

For annuity benefits, the interest rates

will be 6.30 percent for the first 20 years

following the valuation date and 4.75

percent thereafter. For benefits to be

paid as lump sums, the interest

assumptions to be used by the PBGC

will be 5.25 percent for the period

during which benefits are in pay status,

4.50 percent during the seven-year

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. The annuity and lump sum

interest assumptions are unchanged

from those in effect for August 1996.

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 rates and factors promptly so

that the rates and factors 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 September 1996, the PBGC finds

that good cause exists for making the

rates and factors 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 hereby amended as

follows:

PART 4044—[AMENDED]

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.

Appendix B to Part 4044—[Amended]

2. In appendix B, a new entry is

added to Table I, and Rate Set 35 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 =

* * * * * * *

September 1996 ................................................................ .0630 1–20 .0475 >20 N/A N/A
Federal Register / Vol. 61, No. 159 / Thursday, August 15, 1996 / Rules and Regulations 42385

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

* * * * * * *

35 09–1–96 10–1–96 5.25 4.50 4.00 4.00 7 8

Issued in Washington, DC, on this 12th day

of August 1996.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 96–20845 Filed 8–14–96; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Health Care Financing Administration

42 CFR Part 415

[BPD–827–CN]

RIN 0938–AG96

Medicare Program; Revisions to

Payment Policies and Adjustments to

the Relative Value Units Under the

Physician Fee Schedule for Calendar

Year 1996

AGENCY: Health Care Financing

Administration (HCFA), HHS.

ACTION: Correction of final rule with

comment period.

SUMMARY: This document corrects

technical errors that appeared in the

final rule with comment period

published in the Federal Register on

December 8, 1995 (60 FR 63124) entitled

‘‘Medicare Program; Revisions to

Payment Policies and Adjustments to

the Relative Value Units Under the

Physician Fee Schedule for Calendar

Year 1996.’’

EFFECTIVE DATES: January 1, 1996, except

part 415, which is effective July 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Shana Olshan, (410) 786–5714; William

Morse, (410) 786–4520.

SUPPLEMENTARY INFORMATION:

Background

In the Federal Register Document

[95–29754], dated December 8, 1995, on

page 63172 there is a technical error in

the preamble and, on pages 63177 and

63187 there are technical errors in the

regulations text in § 414.30

(‘‘Conversion factor update’’) and

§ 415.178 (‘‘Anesthesia services’’),

respectively. In § 414.30, due to a

typographical error, we inadvertently

identified a revision being made to

paragraph (b)(3) as adding a new

paragraph (c). We correct both the

amendatory statement and the

regulations text. In the final rule, we

also inadvertently retained language

reflected in the July 26, 1995 (60 FR

38430) proposed rule concerning

documentation of a preoperative and

postoperative visit by the teaching

physician in connection with anesthesia

services. To be consistent with our

policy of not requiring the teaching

surgeon to be present at the preoperative

and postoperative visit, we intended to

revise the language related to the

teaching anesthesiologist.

Correction of Errors

Preamble

Beginning on page 63171, in column

3, the first sentence of the last paragraph

is corrected to read: ‘‘The information

collection requirements in § 415.178

(‘‘Anesthesia services’’), paragraph (b),

concern documentation of the teaching

physician’s presence or participation in

the administration of the anesthesia. To

be consistent with our policy

concerning teaching surgeons, we will

not require documentation of presence

at the preoperative and postoperative

visit.’’

Regulations Text

1. On page 63177, in column 1, item

4 is corrected to read as follows:

‘‘4. In § 414.30, the introductory text

to the section and the introductory text

to paragraph (b) are republished and

paragraphs (b)(2) and (3) are revised to

read as follows:

§ 414.30 Conversion factor update.

Unless Congress acts in accordance

with section 1848(d)(3) of the Act—

* * * * *

(b) Downward adjustment. The

downward adjustment may not exceed

the following:

* * * * *

(2) For CY 1994, 2.5 percentage

points.

(3) For CYs 1995 and thereafter, 5

percentage points.’’

§ 415.178 [Corrected]

2. On page 63187, in column 1,

paragraph (b) of § 415.178 (‘‘Anesthesia

services’’) is corrected to read as

follows: ‘‘(b) Documentation.

Documentation must indicate the

physician’s presence or participation in

the administration of the anesthesia.’’

(Section 1848 of the Social Security Act (42

U.S.C. 1395w–4))

(Catalog of Federal Domestic Assistance

Program No. 93.774, Medicare—

Supplementary Medical Insurance Program)

Dated: August 8, 1996.

Neil J. Stillman,

Deputy Assistant Secretary for Information

Resources Management

[FR Doc. 96–20764 Filed 8–14–96; 8:45 am]

BILLING CODE 4120–01–M

42 CFR Parts 417, 473 and 498

[BPD–704–CN]

Medicare and Medicaid Programs:

Provider Appeals; Technical

Amendments; Corrections

AGENCY: Health Care Financing

Administration, HHS.

ACTION: Correction notice.

SUMMARY: Federal Register document

96–13521 beginning on page 32347 of

the issue of June 24, 1996, updated

HCFA regulations that pertain to

provider appeals from determinations