65476 Federal Register / Vol. 61, No. 241 / Friday, December 13, 1996 / Rules and Regulations

Issued in Washington, DC, on this 10th day

of December 1996.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 96–31714 Filed 12–12–96; 8:45 am]

BILLING CODE 7708–01–P

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits

and Assets; Expected Retirement Age

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends the Pension

Benefit Guaranty Corporation’s

regulation on Allocation of Assets in

Single-Employer Plans by substituting

new Table I–97 in place of existing

Table I–96 in appendix D. Table I–97

applies to any plan being terminated

either in a distress termination or

involuntarily by the PBGC with a

valuation date falling in 1997, and is

used to determine expected retirement

ages for plan participants. This table is

needed in order to compute the value of

early retirement benefits and, thus, the

total value of benefits under the plan.

EFFECTIVE DATE: January 1, 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

20005–4026; 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) sets forth (in subpart B)

the methods for valuing plan benefits of

terminating single-employer plans

covered under Title IV of the Employee

Retirement Income Security Act of 1974.

Under ERISA section 4041(c), plans

wishing to terminate in a distress

termination must value guaranteed

benefits and benefit liabilities under the

plan in accordance with part 4044,

subpart B. In addition, when the PBGC

terminates an underfunded plan

involuntarily pursuant to ERISA Section

4042(a), it uses the subpart B valuation

rules to determine the amount of the

plan’s underfunding.

Under § 4044.51(b), early retirement

benefits are valued based on the annuity

starting date, if a retirement date has

been selected, or the expected

retirement age, if the annuity starting

date is not known on the valuation date.

Sections 4044.55 through 4044.57 set

forth rules for determining the expected

retirement ages for plan participants

entitled to early retirement benefits.

Appendix D of part 4044 contains tables

to be used in determining the expected

early retirement ages.

Table I in appendix D (Selection of

Retirement Rate Category) is used to

determine whether a participant has a

low, medium, or high probability of

retiring early. The determination is

based on the year a participant would

reach ‘‘unreduced retirement age’’ (i.e.,

the earlier of the normal retirement age

or the age at which an unreduced

benefit is first payable) and the

participant’s monthly benefit at

unreduced retirement age. The table

applies only to plans with valuation

dates in the current year and is updated

annually by the PBGC to reflect changes

in the cost of living, etc.

Tables II–A, II–B, and II–C (Expected

Retirement Ages for Individuals in the

Low, Medium, and High Categories

respectively) are used to determine the

expected retirement age after the

probability of early retirement has been

determined using Table I. These tables

establish, by probability category, the

expected retirement age based on both

the earliest age a participant could retire

under the plan and the unreduced

retirement age. This expected retirement

age is used to compute the value of the

early retirement benefit and, thus, the

total value of benefits under the plan.

This document amends appendix D to

replace Table I–96 with Table I–97 in

order to provide an updated correlation,

appropriate for calendar year 1997,

between the amount of a participant’s

benefit and the probability that the

participant will elect early retirement.

Table I–97 will be used to value benefits

in plans with valuation dates during

calendar year 1997.

The PBGC has determined that notice

of and public comment on this rule are

impracticable and contrary to the public

interest. Plan administrators need to be

able to estimate accurately the value of

plan benefits as early as possible before

initiating the termination process. For

that purpose, if a plan has a valuation

date in 1997, the plan administrator

needs the updated table being

promulgated in this rule. Accordingly,

the public interest is best served by

issuing this table expeditiously, without

an opportunity for notice and comment,

to allow as much time as possible to

estimate the value of plan benefits with

the proper table for plans with valuation

dates in early 1997. Moreover, because

of the need to provide immediate

guidance for the valuation of benefits

under such plans, and because no

adjustment by ongoing plans is required

by this amendment, the PBGC finds that

good cause exists for making this

amendment to the regulation 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

regulation, the Regulatory Flexibility

Act of 1980 does not apply (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—[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.

2. Appendix D to part 4044 is

amended by removing Table I–96 and

adding in its place Table I–97 to read as

follows:

Appendix D to Part 4044—Tables Used

to Determine Expected Retirement Age

TABLE I–97—SELECTION OF RETIREMENT RATE CATEGORY

[For Plans with valuation dates after December 31, 1996, and before January 1, 1998]

Participant reaches URA in year—

Participant’s Retirement Rate Category is—

Low 1 if

monthly benefit at URA is

less than—

Medium 2 if monthly benefit at

URA is

High 3 if

monthly benefit at URA is

From To greater than—

1998 .................................................................................................................. 409 409 1,723 1,723

1999 .................................................................................................................. 421 421 1,771 1,771
Federal Register / Vol. 61, No. 241 / Friday, December 13, 1996 / Rules and Regulations 65477

TABLE I–97—SELECTION OF RETIREMENT RATE CATEGORY—Continued

[For Plans with valuation dates after December 31, 1996, and before January 1, 1998]

Participant reaches URA in year—

Participant’s Retirement Rate Category is—

Low 1 if

monthly benefit at URA is

less than—

Medium 2 if monthly benefit at

URA is

High 3 if

monthly benefit at URA is

From To greater than—

2000 .................................................................................................................. 432 432 1,821 1,821

2001 .................................................................................................................. 445 445 1,872 1,872

2002 .................................................................................................................. 457 457 1,924 1,924

2003 .................................................................................................................. 470 470 1,978 1,978

2004 .................................................................................................................. 483 483 2,033 2,033

2005 .................................................................................................................. 496 496 2,090 2,090

2006 .................................................................................................................. 510 510 2,149 2,149

2007 or later ..................................................................................................... 525 525 2,209 2,209

1Table II–A.

2Table II–B.

3Table II–C.

* * * * *

Issued at Washington, D.C., this 10th day

of December, 1996.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 96–31713 Filed 12–12–96; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

42 CFR Part 57, Subpart B

RIN 0906–AA39

Grants for the Construction of

Teaching Facilities for Health

Professions Personnel

AGENCY: Health Resources and Services

Administration, HHS.

ACTION: Final rule.

SUMMARY: This final rule removes

obsolete regulations that governed old

sections 720–726, Part B, Title VII, of

the Public Health Service (PHS) Act,

which addressed the award of grants

and loan guarantees and interest

subsidies for the construction of

teaching facilities for medical, dental,

and other health personnel. The Health

Professions Education Extension

Amendments of 1992, Pub. L. 102–408,

repealed Part B of Title VII, Public

Health Service Act. Accordingly, the

provisions of 42 CFR Part 57, Subpart B,

are obsolete.

EFFECTIVE DATE: This regulation is

effective December 13, 1996.

FOR FURTHER INFORMATION CONTACT: Mrs.

Charlotte G. Pascoe, Director, Division

of Facilities Compliance and Recovery,

Bureau of Health Resources

Development, Health Resources and

Services Administration, room 7–31,

Parklawn Building, 5600 Fishers Lane,

Rockville, Maryland 20857; telephone:

(301) 443–5656.

SUPPLEMENTARY INFORMATION: The

Health Professions Education Extension

Amendments of 1992, Pub. L. 102–408,

repealed Part B of Title VII, Public

Health Service Act. Accordingly, the

provisions of 42 CFR Part 57, Subpart B,

are obsolete. Sections 57.101 through

57.112 and Appendix A are removed

from the Code of Federal Regulations.

The Public Health Service strongly

encourages all grant and contract

recipients to provide a smoke-free

workplace and to promote the non-use

of all tobacco products. In addition,

Pub.L. 103–227, the Pro-Children Act of

1994, prohibits smoking in certain

facilities (or, in some cases, any portion

of a facility) in which regular or routine

education, library, day care, health care

or early childhood development

services are provided to children.

Justification for Omitting Notice of

Proposed Rulemaking

Since this amendment is of a

technical nature, the Secretary has

determined, pursuant to 5 U.S.C. 553

and departmental policy, that it is

unnecessary and impractical to follow

proposed rulemaking procedures or to

delay the effective date of these

regulations.

Economic Impact

Executive Order 12866 requires that

all regulations reflect consideration of

alternatives, of costs, of benefits, of

incentives, of equity, and of available

information. Regulations must meet

certain standards, such as avoiding

unnecessary burden. Regulations which

are ‘‘significant’’ because of cost,

adverse effects on the economy,

inconsistency with other agency actions,

effects on the budget, or novel legal or

policy issues, require special analysis.

The Department believes that the

resources required to implement the

requirements in this regulation are

minimal. Therefore, in accordance with

the Regulatory Flexibility Act of 1980,

the Secretary certifies that this

regulation will not have a significant

impact on a substantial number of small

entities. For the same reasons, the

Secretary has also determined that this

is not a ‘‘significant’’ rule under

Executive Order 12866.

Paperwork Reduction Act of 1980

This final rule contains no

information collection or reporting

requirements which are subject to

review by the Office of Management and

Budget (OMB) under the Paperwork

Reduction Act of 1980.

List of Subjects in 42 CFR Part 57

Aged, Dental Health, Education of the

Disadvantaged, Educational facilities,

Educational study program, Grant

programs—education, Grant programs—

health, Health facilities, Health

professions, Loan programs, Medical

and dental schools, Scholarships and

fellowships, Student aid.

Dated: July 15, 1996.

Ciro V. Sumaya,

Administrator.

Approved: November 26, 1996.

Donna Shalala,

Secretary.

Accordingly, under the authority of

Public Law 102–408, 42 CFR part 57 is

amended as follows: