55500 Federal Register / Vol. 69, No. 178 / Wednesday, September 15, 2004 / Rules and Regulations 

electronic comments were received in 

response to the notice of proposed 

rulemaking. No requests to speak at the 

public hearing were received, and, 

accordingly, the hearing was canceled. 

Explanation of Provisions 

This Treasury decision adopts the 

language of the proposed regulation 

without change. The temporary 

regulation is removed. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

also has been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to this regulation, and because this 

regulation does not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f) of the Code, the notice 

of proposed rulemaking preceding this 

regulation was submitted to the Chief 

Counsel for Advocacy of the Small 

Business Administration for comment 

on its impact on small businesses. 

Drafting Information 

The principal author of this regulation 

is Edward R. Barret, Office of the 

Associate Chief Counsel (International). 

However, other personnel from the IRS 

and Treasury Department participated 

in its development.

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements.

Adoption of amendments to the 

Regulations

■ Accordingly, 26 CFR part 1 is amended 

as follows:

PART 1—INCOME TAXES

■ Paragraph 1. The authority citation for 

part 1 continues to read in part as 

follows:

Authority: 26 U.S.C. 7805 * * *

■ Par. 2. Section 1.6038A–1 is amended 

by revising paragraph (n)(2) to read as 

follows:

§ 1.6038A–1 General requirements and 

definitions.

* * * * *

(n) * * * (1) * * * 

(2) Section 1.6038A–2. Section 

1.6038A–2 (relating to the requirement 

to file Form 5472) generally applies for 

taxable years beginning after July 10, 

1989. However, § 1.6038A–2 as it 

applies to reporting corporations whose 

sole trade or business in the United 

States is a banking, financing, or similar 

business as defined in § 1.864–4(c)(5)(i) 

applies for taxable years beginning after 

December 10, 1990. The final sentence 

of § 1.6038A–2(d) applies for taxable 

years ending on or after January 1, 2003. 

For taxable years ending prior to 

January 1, 2003, see § 1.6038A–2(d) in 

effect prior to January 1, 2003 (see 26 

CFR part 1 revised as of April 1, 2002).

* * * * *

■ Par. 3. Section 1.6038A–2 is amended 

by revising paragraph (d) to read as 

follows:

§ 1.6038A–2 Requirement of return.

* * * * *

(d) Time and place for filing returns.

A Form 5472 required under this 

section shall be filed with the reporting 

corporation’s income tax return for the 

taxable year by the due date (including 

extensions) of that return. A duplicate 

Form 5472 (including any attachments 

and schedules) shall be filed at the same 

time with the Internal Revenue Service 

Center, Philadelphia, PA 19255. A Form 

5472 that is timely filed electronically 

satisfies the duplicate filing 

requirement.

* * * * *

§ 1.6038A–2T [Removed]

■ Par. 4. Section 1.6038A–2T is 

removed.

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 30, 2004. 

Gregory Jenner, 

Acting Assistant Secretary of the Treasury.

[FR Doc. 04–20804 Filed 9–14–04; 8:45 am] 

BILLING CODE 4830–01–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 October 2004. Interest 

assumptions are also published on the 

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

DATES: Effective October 1, 2004.

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. (TTY/TDD users 

may 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 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 October 2004, (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 

October 2004, 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 October 2004.

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 4.00 

percent for the first 20 years following 

the valuation date and 5.00 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for September 2004) of 0.20 

Federal Register / Vol. 69, No. 178 / Wednesday, September 15, 2004 / Rules and Regulations 55501

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 3.00 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. These interest assumptions 

represent a decrease (from those in 

effect for September 2004) of 0.25 

percent for the period during which a 

benefit is in pay status and are 

otherwise unchanged. 

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 

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 October 2004, 

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 

132, 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

*******

132 10–1–04 11–1–04 3.00 4.00 4.00 4.00 7 8 

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

132, 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

* * * * * * * 

132 10–1–04 11–1–04 3.00 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 = 

* * * * * * * 

October 2004 ............................................................................................ .0400 1–20 .0500 >20 N/A N/A 

55502 Federal Register / Vol. 69, No. 178 / Wednesday, September 15, 2004 / Rules and Regulations 

Issued in Washington, DC, on this 9th day 

of September, 2004. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 04–20737 Filed 9–14–04; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165

[COTP San Francisco Bay 04–002] 

RIN 1625–AA87

Security Zones; Monterey Bay and 

Humboldt Bay, CA

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule; change in 

effective period. 

SUMMARY: The Coast Guard is revising 

the enforcement period of moving and 

fixed security zones extending 100 

yards in the U.S. navigable waters 

around and under all cruise ships, tank 

vessels, and High Interest Vessels (HIVs) 

that enter, are moored or anchored in, 

or depart from the designated waters of 

Monterey Bay or Humboldt Bay, 

California. These security zones are 

needed for national security reasons to 

protect the public and ports of Monterey 

Bay and Humboldt Bay from potential 

subversive acts. Entry into these 

security zones is prohibited, unless 

specifically authorized by the Captain of 

the Port San Francisco Bay, or his 

designated representative.

DATES: This rule is effective from 

11:59:01 p.m. on September 5, 2004, to 

11:59 p.m. on March 5, 2005.

ADDRESSES: Documents indicated in this 

preamble, as being available in the 

docket, are part of docket COTP San 

Francisco Bay 04–002 and are available 

for inspection or copying at the 

Waterways Management Branch 

between 9 a.m. and 4 p.m., Monday 

through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Lieutenant Doug Ebbers, Waterways 

Management Branch, U.S. Coast Guard 

Marine Safety Office San Francisco Bay, 

(510) 437–2770.

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

We did not publish a notice of 

proposed rulemaking (NPRM) for this 

regulation. Under 5 U.S.C. 553(b)(B), the 

Coast Guard finds that good cause exists 

for not publishing an NPRM because the 

threat to U.S. assets and the public 

currently exists and is ongoing. Under 5 

U.S.C. 553(d)(3), the Coast Guard finds 

that good cause exists for making this 

rule effective less than 30 days after 

publication in the Federal Register

because the threat of maritime attacks is 

real as evidenced by the October 2002 

attack of a tank vessel off the coast of 

Yemen and the continuing threat to U.S. 

assets as described in the President’s 

finding in Executive Order 13273 of 

August 21, 2002 (67 FR 56215, 

September 3, 2002), that the security of 

the U.S. is endangered by the September 

11, 2001, attacks and that such 

disturbances continue to endanger the 

international relations of the United 

States. See also Continuation of the 

National Emergency with Respect to 

Certain Terrorist Attacks, (67 FR 58317, 

September 13, 2002); Continuation of 

the National Emergency With Respect 

To Persons Who Commit, Threaten To 

Commit, Or Support Terrorism, (67 FR 

59447, September 20, 2002). 

Additionally, a Maritime Advisory was 

issued to: Operators of U.S. Flag and 

Effective U.S. controlled Vessels and 

other Maritime Interests, detailing the 

current threat of attack, MARAD 02–07 

(October 10, 2002). As a result, a 

heightened level of security has been 

established around all cruise ships, tank 

vessels, and High Interest Vessels (HIVs) 

in Monterey Bay and Humboldt Bay, 

California. Additionally, the measures 

contemplated by this rule are intended 

to prevent future terrorist attacks against 

individuals and facilities within or 

adjacent to cruise ships, tank vessels, 

and HIVs located in Monterey Bay and 

Humboldt Bay. Any delay in the 

effective date of this TFR is impractical 

and contrary to the public interest. 

In addition to this temporary final 

rule (TFR), we will be publishing a 

notice of proposed rulemaking (NPRM) 

under docket COTP San Francisco Bay 

04–003, in which we propose to make 

permanent these temporary security 

zones around cruise ships, tank vessels, 

and HIVs in Monterey Bay and 

Humboldt Bay. In the NPRM, we 

propose to amend 33 CFR 165.1183, 

which was added by the final rule 

(COTP San Francisco Bay 02–019) 

published in the Federal Register (67 

FR 79854) on December 31, 2002, and 

later amended by final rule (COTP San 

Francisco Bay 03–002) published in the 

Federal Register (69 FR 8817) on 

February 26, 2004. Section 165.1183, 

‘‘Security Zones; Cruise Ships, Tank 

Vessels, and High Interest Vessels, San 

Francisco Bay and Delta ports, 

California’’, established security zones 

around cruise ships, tank vessels, and 

HIVs in the San Francisco Bay and Delta 

ports, but does not address security 

zones around these vessels when they 

are located in Monterey Bay and 

Humboldt Bay, California. This 

temporary rule will provide security in 

Monterey Bay and Humboldt Bay during 

a notice-and-comment rulemaking for a 

permanent rule, and § 165.1183 will 

remain in effect until amended by a 

future rule.

Background and Purpose 

Since the September 11, 2001, 

terrorist attacks on the World Trade 

Center in New York, the Pentagon in 

Arlington, Virginia and Flight 93, the 

Federal Bureau of Investigation (FBI) 

has issued several warnings concerning 

the potential for additional terrorist 

attacks within the United States. In 

addition, the ongoing hostilities in 

Afghanistan and the conflict in Iraq 

have made it prudent for U.S. ports to 

be on a higher state of alert because AlQaeda and other organizations have 

declared an ongoing intention to 

conduct armed attacks on U.S. interests 

worldwide. 

The threat of maritime attacks is real 

as evidenced by the attack on the USS 

COLE and the subsequent attack in 

October 2002 against a tank vessel off 

the coast of Yemen. These threats 

manifest a continuing threat to U.S. 

assets as described in the President’s 

finding in Executive Order 13273 of 

August 21, 2002 (67 FR 56215, 

September 3, 2002), that the security of 

the U.S. is endangered by the September 

11, 2001, attacks and that such 

aggression continues to endanger the 

international relations of the United 

States. See also Continuation of the 

National Emergency with Respect to 

Certain Terrorist Attacks (67 FR 58317, 

September 13, 2002), and Continuation 

of the National Emergency with Respect 

to Persons Who Commit, Threaten To 

Commit, Or Support Terrorism (67 FR 

59447, September 20, 2002). The U.S. 

Maritime Administration (MARAD) in 

Advisory 02–07 advised U.S. shipping 

interests to maintain a heightened status 

of alert against possible terrorist attacks. 

MARAD more recently issued Advisory 

03–05 informing operators of maritime 

interests of increased threat possibilities 

to vessels and facilities and a higher risk 

of terrorist attack to the transportation 

community in the United States. 

Ongoing foreign hostilities have made it 

prudent for U.S. ports and waterways to 

be on a higher state of alert because the 

Al-Qaeda organization and other similar 

organizations have declared an ongoing 

intention to conduct armed attacks on 

U.S. interests worldwide.