33688 Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Rules and Regulations 

tanning services, which is $142.86 (($150/ 

$1050) × $1000). If E does not pay the tax at 

the time E pays for the bundled services, S 

is liable for the tax. 

Example 6. G operates a full-service gym 

facility that offers fitness classes, multiple 

exercise machines (such as treadmills, 

stationary bicycles, weight training 

machines, and free weights), and has as its 

predominant business providing these 

facilities, equipment, and services to 

members for purposes of exercise and 

physical fitness. G provides its members with 

access to indoor tanning services, comprised 

of two tanning beds that meet the definition 

of indoor tanning services under paragraph 

(c)(1) of this section. G generally charges its 

members a fee for monthly usage of its 

facilities, equipment, and services, but also 

offers short-term or free trial memberships 

and allows non-members to purchase 

individual or a series of exercise classes. G 

does not charge any fee for the indoor 

tanning services, does not offer indoor 

tanning services separately from its other 

services, and has no membership tier or 

category that differs from others based on 

access to the indoor tanning services. G holds 

itself out to the public through advertising 

and marketing as providing equipment and 

services to improve physical fitness. On July 

1, 2010, F pays a membership fee to G in 

return for use of G’s facility during the month 

of July. Under paragraph (b)(3) of this 

section, no portion of F’s membership fee 

payment is treated as a payment made for 

indoor tanning services, because G is a 

qualified physical fitness facility under 

paragraph (c)(4) of this section. Therefore, no 

liability for tax arises under section 5000B. 

(h) Effective/applicability date. This 

section applies to amounts paid after 

June 30, 2010, for indoor tanning 

services. 

(i) Expiration date. This section 

expires on or before June 11, 2013. 

PART 602—OMB CONTROL NUMBERS 

UNDER THE PAPERWORK 

REDUCTION ACT 

■ Par. 9. The authority citation for part 

602 continues to read as follows: 

Authority: 26 U.S.C. 7805. 

■ Par. 10. In § 602.101, paragraph (b) is 

amended by adding the following entry 

in numerical order to the table to read 

as follows: 

§ 602.101 OMB Control numbers. 

* * * * * 

(b) * * * 

CFR part or section where 

indentified and described 

Current 

OMB control 

No. 

* * * * * 

1.5000B–1 ................................ 1545–2177 

* * * * * 

Approved: June 9, 2010. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–14398 Filed 6–11–10; 11:15 am] 

BILLING CODE 4830–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Allocation of Assets in SingleEmployer Plans; Benefits Payable in 

Terminated Single-Employer Plans; 

Interest Assumptions for Valuing and 

Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: Pension Benefit Guaranty 

Corporation’s regulations on Allocation 

of Assets in Single-Employer Plans and 

Benefits Payable in Terminated SingleEmployer Plans prescribe interest 

assumptions for valuing and paying 

certain benefits under terminating 

single-employer plans. This final rule 

(1) amends the asset allocation 

regulation to adopt interest assumptions 

for plans with valuation dates in the 

third quarter of 2010 and (2) amends the 

benefit payments regulation to adopt 

interest assumptions for plans with 

valuation dates in July 2010. Interest 

assumptions are also published on 

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

DATES: Effective July 1, 2010. 

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: 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. 

These interest assumptions are found 

in two PBGC regulations: the regulation 

on Allocation of Assets in SingleEmployer Plans (29 CFR part 4044) and 

the regulation on Benefits Payable in 

Terminated Single-Employer Plans (29 

CFR part 4022). Assumptions under the 

asset allocation regulation are updated 

quarterly; assumptions under the benefit 

payments regulation are updated 

monthly. This final rule updates the 

assumptions under the asset allocation 

regulation for the third quarter (July 

through September) of 2010 and updates 

the assumptions under the benefit 

payments regulation for July 2010. 

The interest assumptions prescribed 

under the asset allocation regulation 

(found in Appendix B to Part 4044) are 

used for the valuation of benefits for 

allocation purposes under ERISA 

section 4044. Two sets of interest 

assumptions are prescribed under the 

benefit payments regulation: (1) A set 

for PBGC to use to determine whether 

a benefit is payable as a lump sum and 

to determine lump-sum amounts to be 

paid by PBGC (found in Appendix B to 

Part 4022), and (2) a set for privatesector pension practitioners to refer to if 

they wish to use lump-sum interest rates 

determined using 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 the third quarter 

(July through September) of 2010, (2) 

adds to appendix B to part 4022 the 

interest assumptions for PBGC to use for 

its own lump-sum payments in plans 

with valuation dates during July 2010, 

and (3) adds to appendix C to part 4022 

the interest assumptions for privatesector pension practitioners to refer to if 

they wish to use lump-sum interest rates 

determined using PBGC’s historical 

methodology for valuation dates during 

July 2010. 

The interest assumptions that PBGC 

will use for valuing benefits for 

allocation purposes (set forth in 

appendix B to part 4044) will be 4.93 

percent for the first 20 years following 

the valuation date and 4.66 percent 

thereafter. In comparison with the 

interest assumptions in effect for the 

second quarter of 2010, these interest 

assumptions represent an increase of 

0.30 percent for the first 20 years 

following the valuation date and an 

increase of 0.15 percent for all years 

thereafter. 

The interest assumptions that 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 

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Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Rules and Regulations 33689 

status. In comparison with the interest 

assumptions in effect for June 2010, 

these interest assumptions represent a 

decrease 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 PBGC for 

determining and paying lump sums (set 

forth in appendix B to part 4022). 

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 July 2010, PBGC 

finds that good cause exists for making 

the assumptions set forth in this 

amendment effective less than 30 days 

after publication. 

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 

201, as set forth below, is added to the 

table. 

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

*******

201 7–1–10 8–1–10 2.50 4.00 4.00 4.00 7 8 

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

201, 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

*******

201 7–1–10 8–1–10 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 for July—September 2010, 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 months— 

The values of it are: 

it for t = it for t = it for t = 

*******

July–September 2010 ....................................................... 0.0493 1–20 0.0466 >20 N/A N/A 

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33690 Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Rules and Regulations 

Issued in Washington, DC, on this 8th day 

of June 2010. 

Vincent K. Snowbarger, 

Acting Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2010–14299 Filed 6–14–10; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2010–0443] 

RIN 1625–AA00 

Safety Zone, Lights on the River 

Fireworks Display, Delaware River, 

New Hope, PA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone on 

the Delaware River in New Hope, PA. 

The safety zone will restrict vessel 

traffic on the Delaware River from 

operating within 400 yards of a 

fireworks barge located at 40°21′49′′ N./ 

074°56′54′′ W. The safety zone will 

protect life and property while 

preventing vessel traffic from navigating 

on the Delaware River near the Bridge 

Street Bridge and for 800 feet downriver 

of the bridge in New Hope, PA. 

DATES: This rule is effective from June 

15, 2010 through July 30, 2010. This 

rule may be enforced with actual notice 

starting on the signature date. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket USCG–2010– 

0443 and are available online by going 

to http://www.regulations.gov, inserting 

USCG–2010–0443 in the ‘‘Keyword’’ 

box, and then clicking ‘‘Search.’’ They 

are also available for inspection or 

copying at the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

rule, call or e-mail Ensign Gary George, 

Chief Waterways Management, Sector 

Delaware Bay, Coast Guard; telephone 

215–271–4851, e-mail 

gary.e.george@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

The Coast Guard is issuing this 

temporary final rule without prior 

notice and opportunity to comment 

pursuant to authority under section 4(a) 

of the Administrative Procedure Act 

(APA) (5 U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule. Delaying action 

on this rulemaking to allow for a 

comment period would be contrary to 

the public interest in allowing this event 

to go on as scheduled. Furthermore, the 

location of the event and short duration 

(one hour once each week, in the 

evening) mean that the chance of 

significant impact on or interest by the 

boating public is small. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard further finds that good cause 

exists for making this rule effective less 

than 30 days after publication in the 

Federal Register for the same reason as 

above. Delaying the establishment of the 

safety zone could result in mariners 

approaching the fireworks barge, 

creating a hazardous scenario with 

potential for loss of life and property. 

Basis and Purpose 

The New Hope Chamber of Commerce 

has contracted Garden State Fireworks 

Inc. for a fireworks display to reoccur 

once a week on Friday evenings from 

May 21, 2010 to July 30, 2010. The 

establishment of this safety zone will 

prevent vessels from entering the 

fireworks fallout area, located on the 

Delaware River at 40°21′49′′ N./ 

074°567′54′′ W. This safety zone will 

help protect both life and property on 

the Delaware River. 

Discussion of Rule 

The Coast Guard is establishing a 

temporary safety zone which will be 

enforced May 21, 2010 from 8 p.m. to 

9 p.m. and then every Friday from May 

28, 2010 through July 30, 2010 from 9 

p.m. until 10 p.m. 

Except for persons or vessels 

authorized by the Captain of the Port, no 

person or vessel may enter or remain in 

the regulated area during the 

enforcement period. The safety zone is 

necessary to protect life and property 

operating on the navigable waterways of 

the Delaware River in New Hope, PA. 

Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on 13 of these statutes or 

executive orders. 

Regulatory Planning and Review 

This rule is not a significant 

regulatory action under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, and does not 

require an assessment of potential costs 

and benefits under section 6(a)(3) of that 

Order. The Office of Management and 

Budget has not reviewed it under that 

Order. Although this regulation restricts 

vessel traffic on the navigable waters of 

the Delaware River, the effect of this 

regulation will not be significant due to 

the limited duration that the safety zone 

will be in effect. While the safety zone 

will be reoccurring on a weekly basis, 

the enforcement window lasts for only 

an hour in an area that is bordered 

downriver by rapids, minimizing local 

traffic that might pass though the 

affected area. 

Small Entities 

Under the Regulatory Flexibility Act 

(5 U.S.C. 601–612), we have considered 

whether this rule would have a 

significant economic impact on a 

substantial number of small entities. 

The term ‘‘small entities’’ comprises 

small businesses, not-for-profit 

organizations that are independently 

owned and operated and are not 

dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

The Coast Guard certifies under 5 

U.S.C. 605(b) that this rule will not have 

a significant economic impact on a 

substantial number of small entities. 

This rule will affect the following 

entities, some of which may be small 

entities: The owners or operators of 

vessels intending to transit in a portion 

of the Delaware River, New Hope, PA 

Fridays from May 28, 2010 through July 

30, 2010 from 9 p.m. until 10 p.m. 

This safety zone will not have a 

significant economic impact on a 

substantial number of small entities for 

the following reasons. This rule will be 

enforced for a maximum duration of one 

hour. Vessel traffic may pass through 

the affected area on the Delaware River 

during time periods other than the time 

needed to enforce the safety zone in 

during the ‘‘Lights on the River’’ 

fireworks shows. 

Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

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