Federal Register / Vol. 62, No. 94 / Thursday, May 15, 1997 / Rules and Regulations 26741

26 CFR Part 601

Administrative practice and

procedure, Freedom of information,

Reporting and recordkeeping

requirements, Taxes.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 1, 301, and

601 are 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 1.446–1, paragraph

(e)(3)(i) is amended by adding a

sentence at the end of the paragraph to

read as follows:

§ 1.446–1 General rule for methods of

accounting.

* * * * *

(e)(3) * * * For any Form 3115 filed

on or after May 15, 1997, see § 1.446–

1T(e)(3)(i)(B).

Par. 3. Section 1.446–1T is added to

read as follows:

§ 1.446–1T General rule for methods of

accounting (temporary).

(a) through (d) [Reserved] For further

guidance, see § 1.446–1 (a) through (d).

(e) Requirement respecting the

adoption or change of accounting

method.

(1) and (2) [Reserved] For further

guidance, see § 1.446–1(e) (1) and (2).

(3)(i)(A) [Reserved] For further

guidance, see § 1.446–1(e)(3)(i).

(B) For any Form 3115 filed on or

after May 15, 1997, permission to

change a taxpayer’s method of

accounting will not be granted unless

the taxpayer agrees to the

Commissioner’s prescribed terms and

conditions for effecting the change,

including the taxable year or years in

which any adjustment necessary to

prevent amounts from being duplicated

or omitted is to be taken into account.

(ii) and (iii) [Reserved] For further

guidance, see § 1.446–1(e)(3) (ii) and

(iii).

PART 301—PROCEDURE AND

ADMINISTRATION

Par. 4. The authority citation for part

301 continues to read in part as follows:

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

Par. 5. In § 301.9100–1T, paragraph

(h) is amended by adding a sentence at

the end of the paragraph to read as

follows:

§ 301.9100–1T Extensions of time to make

elections (temporary).

* * * * *

(h) * * * In addition, § 301.9100–

3T(c)(2)(i) is effective for any Form 3115

filed on or after May 15, 1997.

Par. 6. In § 301.9100–3T, paragraph

(c)(2)(i) is revised to read as follows:

§ 301.9100–3T Other extensions

(temporary).

* * * * *

(c) * * *

(2) * * *

(i) Subject to the procedure described

in § 1.446–1T(e)(3)(i) of this chapter

(requiring the advance written consent

of the Commissioner);

* * * * *

PART 601—STATEMENT OF

PROCEDURAL RULES

Par. 7. The authority citation for part

601 continues to read as follows:

Authority: 26 U.S.C. 301 and 552, unless

otherwise noted.

Par. 8. Section 601.204, paragraph (b)

is amended by adding a sentence at the

end of the paragraph to read as follows:

§ 601.204 Changes in accounting periods

and in methods of accounting.

* * * * *

(b) * * * For any Form 3115 filed on

or after May 15, 1997, see

§ 601.204T(b)(2).

Par. 9. Section 601.204T is added to

read as follows:

§ 601.204T Changes in accounting periods

and in methods of accounting (temporary).

(a) [Reserved] For further guidance,

see § 601.204(a).

(b) Methods of accounting. (1)

[Reserved] For further guidance, see

§ 601.204(b).

(2) For any Form 3115 filed on or after

May 15, 1997, application for

permission to change the method of

accounting employed shall be made on

Form 3115 and filed with the

Commissioner during the taxable year in

which the taxpayer desires to make the

change in method of accounting.

Permission to change the method of

accounting will not be granted unless

the taxpayer and the Commissioner

agree to the terms and conditions under

which the change will be effected.

(c) and (d) [Reserved] For further

guidance, see § 601.204 (c) and (d).

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved: May 2, 1997.

Donald C. Lubick,

Assistant Secretary of the Treasury.

[FR Doc. 97–12514 Filed 5–14–97; 8:45 am]

BILLING CODE 4830–01–U

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

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 June 1997.

EFFECTIVE DATE: June 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, 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

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions 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

assumptions for valuing benefits in

plans with valuation dates during June

1997.

For annuity benefits, the interest

assumptions will be 6.40 percent for the

first 25 years following the valuation

date and 5.00 percent thereafter. The

annuity interest assumptions represent

an increase (from those in effect for May

1997) of 0.10 percent for the first 25

years following the valuation date and

are otherwise unchanged. 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 a benefit is in pay status,

4.50 percent during the seven-year

period directly preceding the benefit’s
26742 Federal Register / Vol. 62, No. 94 / Thursday, May 15, 1997 / Rules and Regulations

placement in pay status, and 4.00

percent during any other years

preceding the benefit’s placement in pay

status. The lump sum interest

assumptions represent an increase (from

those in effect for May 1997) of 0.25

percent for the period during which a

benefit is in pay status and for the seven

years directly preceding that period;

they are otherwise unchanged.

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 of

benefits in plans with valuation dates

during June 1997, 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 in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is amended as follows:

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

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. In appendix B, a new entry is

added to Table I, and Rate Set 44 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=

* * * * * * *

June 1997 .......................................................................... .0640 1–25 .0500 >25 N/A N/A

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

* * * * * * *

44 ........................................ 06–1–97 07–1–97 5.25 4.50 4.00 4.00 7 8

Issued in Washington, D.C., on this 12th

day of May 1997.

John Seal,

Acting Executive Director, Pension Benefit

Guaranty Corporation.

[FR Doc. 97–12774 Filed 5–14–97; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 706

Certifications and Exemptions Under

the International Regulations for

Preventing Collisions at Sea, 1972

Amendment

AGENCY: Department of the Navy, DOD.

ACTION: Final rule.

SUMMARY: The Department of the Navy

is amending its certifications and

exemptions under the International

Regulations for Preventing Collisions at

Sea, 1972 (72 COLREGS), to reflect that

the Deputy Assistant Judge Advocate

General (Admiralty) of the Navy has

determined that USS CARNEY (DDG 64)

is a vessel of the Navy which, due to its

special construction and purpose,

cannot comply fully with certain

provisions of the 72 COLREGS without

interfering with its special functions as

a naval ship. The intended effect of this

rule is to warn mariners in waters where

72 COLREGS apply.

EFFECTIVE DATE: May 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Captain R.R. Pixa, JAGC, U.S. Navy,

Admiralty Counsel, Office of the Judge

Advocate General, Navy Department,

200 Stovall Street, Alexandria, VA