18576 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Rules and Regulations 

Need for Correction 

As published, temporary regulations 

(TD 9313) contain an error that may 

prove to be misleading and is in need 

of clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

amendment: 

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 1.368–2T is amended 

by revising paragraph (l)(2)(iv) to read as 

follows: 

§ 1.368–2T Definition of terms (temporary). 

* * * * * 

(l) * * * 

(2) * * * 

(iv) Exception. This paragraph (l)(2) 

does not apply to a transaction 

otherwise described in section 1.358–

6(b)(2) or section 368(a)(1)(G) by reason 

of section 368(a)(2)(D). 

* * * * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. E7–6979 Filed 4–12–07; 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 May 2007. Interest assumptions 

are also published on the PBGC’s Web 

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

DATES: Effective May 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, 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). 

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 May 2007, (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 May 

2007, 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 May 2007. 

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 5.20 

percent for the first 20 years following 

the valuation date and 4.87 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for April 2007) of 0.21 percent for 

the first 20 years following the valuation 

date and 0.21 percent for all years 

thereafter. 

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 an increase (from those in 

effect for April 2007) of 0.25 percent in 

the immediate annuity rate 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 current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during May 2007, 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 

163, as set forth below, is added to the 

table. 


cprice-sewell on PRODPC61 with RULES
Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Rules and Regulations 18577 

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

* * * * * * * 

163 5–1–07 6–1–07 3.00 4.00 4.00 4.00 7 8 

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

163, as set forth below, is added to the 

table. 

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

* * * * * * * 

163 5–1–07 6–1–07 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 for May 2007, as set forth below, 

is added to the table. 

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 = 

* * * * * * * 

May 2007 .......................................................................... .0520 1–20 .0487 >20 N/A N/A 

Issued in Washington, DC, on this 10th day 

of April 2007. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E7–7071 Filed 4–12–07; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

30 CFR Part 250 

RIN 1010–AD10 

Oil, Gas, and Sulphur Operations in the 

Outer Continental Shelf (OCS)—Plans 

and Information—Protection of Marine 

Mammals and Threatened and 

Endangered Species 

AGENCY: Minerals Management Service 

(MMS), Interior. 

ACTION: Final rule. 

SUMMARY: This final rule requires 

lessees of Federal oil and gas leases in 

the OCS to provide information on how 

they will conduct their proposed 

activities in a manner consistent with 

provisions of the Endangered Species 

Act (ESA) and the Marine Mammal 

Protection Act (MMPA). It identifies 

environmental, monitoring, and 

mitigation information that lessees must 

submit with plans for exploration and 

development and production. This final 

rulemaking specifies what information 

the MMS needs to ensure compliance 

with the OCSLA, the ESA, and the 

MMPA. The final rule will help assure 

that lessees conduct their activities in a 

manner consistent with the provisions 

of the ESA and the MMPA. 

DATES: Effective Date: This regulation is 

effective as of May 14, 2007. 

FOR FURTHER INFORMATION CONTACT: Judy 

Wilson, Chief, Environmental 

Compliance Unit, Environmental 

Division, (703) 787–1075. 

SUPPLEMENTARY INFORMATION: The OCS 

Lands Act (OCSLA) at 43 U.S.C. 1333, 

mandates ‘‘The Constitution and laws 

and civil and political jurisdiction of the 

United States (U.S.) are extended to the 

subsoil and seabed of the OCS and to all 

artificial islands, and all installations 

and other devices permanently or 

temporarily attached to the seabed 

which may be erected thereon for the 

purpose of exploring for, developing, or 

producing resources therefrom, or any 

such installation or other device (other 

than a ship or vessel) for the purpose of 

transporting such resources * * *’’

Those laws include the ESA and the 

MMPA. Every lease the MMS issues 

contains a requirement that the lessee 

must comply with applicable laws. The 

OCSLA at 43 U.S.C. 1332, requires 

‘‘* * * expeditious and orderly 

development, subject to environmental 

safeguards * * *’’


cprice-sewell on PRODPC61 with RULES