Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations 34655

any Canadian national (including 

Canadian business entities organized 

under the laws of Canada), dual citizen 

of Canada and a third country (subject 

to section 126.1), and permanent 

resident registered in Canada in 

accordance with the Canadian Defense 

Production Act, and such other 

Canadian Crown Corporations identified 

by the Department of State in a list of 

such persons publicly available through 

the Internet Web site of the Directorate 

of Defense Trade Controls and by other 

means. The defense articles, related 

technical data, and defense services 

identified in 22 CFR 121.1 continuing to 

require a license are:

* * * * *

(6) Firearms, close assault weapons 

and combat shotguns listed in Category 

I.

* * * * *

(10) All Category VIII(a) items, and 

developmental aircraft, engines and 

components identified in Category 

VIII(f).

* * * * *

(13) Nuclear radiation measuring 

devices manufactured to military 

specifications listed in Category XVI(c).

* * * * *

(18) Nuclear weapons, design and 

testing equipment listed in Category 

XVI.

* * * * *

(21) Man-portable air defense systems, 

and their parts and components, and 

technical data for such systems covered 

by Category IV. 

(c) Defense service exemption. A 

defense service is exempt from the 

licensing requirements of part 124 of 

this subchapter, when the following 

criteria can be met. 

(1) The item, technical data, defense 

service and transaction is not identified 

in paragraphs (b)(1) through (21) of this 

section; and

* * * * *

Notes to Sec. 126.5

* * * * *

2. Additional exemptions exist in 

other sections of this subchapter that are 

applicable to Canada, for example Secs. 

123.9, 125.4 and 124.2, which allows for 

the performance of defense services 

related to training in basic operations 

and maintenance, without a license, for 

defense articles lawfully exported, 

including those identified in paragraphs 

(b)(1) through (21) of this section.

PART 127—VIOLATIONS AND 

PENALTIES

■ 9. The authority citation for part 127 is 

amended to read as follows:

Authority: Secs. 2, 38, and 42, Pub. L. 90–

629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2791); E.O. 11958, 42 FR 4311; 3 CFR, 1977 

Com. p. 79; 22 U.S.C. 401; 22 U.S.C. 2651a; 

22 U.S.C. 2779a; 22 U.S.C. 2780.

■ 10. Section 127.12 is amended by 

revising paragraph (g) as follows:

§ 127.12 Voluntary disclosures.

* * * * *

(g) Voluntary disclosures should be 

sent to the Office of Defense Trade 

Controls Compliance, Directorate of 

Defense Trade Controls. Exporters 

should consult the Directorate of 

Defense Trade Controls Web site at 

http://www.pmdtc.org for the 

appropriate street address.

* * * * *

Dated: May 10, 2005. 

John R. Bolton, 

Under Secretary, Arms Control and 

International Security, Department of State.

[FR Doc. 05–11892 Filed 6–14–05; 8:45 am] 

BILLING CODE 4710–25–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 July 2005. Interest assumptions 

are also published on the PBGC’s Web 

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

DATES: Effective July 1, 2005.

FOR FURTHER INFORMATION CONTACT:

Catherine B. Klion, Attorney, 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). 

Accordingly, 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 July 2005, (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 July 

2005, 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 July 2005. 

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 3.60 

percent for the first 20 years following 

the valuation date and 4.75 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for June 2005) of 0.10 percent for 

the first 20 years following the valuation 

date and are otherwise unchanged. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 2.50 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 are 

unchanged from those in effect for June 

2005. 

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 

34656 Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations 

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 

and payment of benefits in plans with 

valuation dates during July 2005, 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 

141, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.)

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

* * * * * * * 

141 .................................... 7–1–05 8–1–05 2.50 4.00 4.00 4.00 7 8 

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

141, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.) 

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

* * * * * * * 

141 .................................... 7–1–05 8–1–05 2.50 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, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.)

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 = 

* * * * * * * 

July 2005 .......................................................................... .0360 1–20 .0475 >20 N/A N/A 

Issued in Washington, DC, on this 8th day 

of June 2005. 

Vincent K. Snowbarger, 

Deputy Executive Director, Pension Benefit 

Guaranty Corporation.

[FR Doc. 05–11769 Filed 6–14–05; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF DEFENSE

Office of the Secretary 

32 CFR Part 311 

[Administrative Instruction 81] 

Privacy Act; Implementation

AGENCY: Office of the Secretary, DoD.

ACTION: Final rule.

SUMMARY: The Office of the Secretary of 

Defense is exempting those records 

contained in DCIFA 01, entitled ‘‘CIFA 

Operational and Analytical Records’’

when an exemption has been previously 

claimed for the records in another 

Privacy Act system of records. The 

exemption will preserve the exempt