erjones on PROD1PC72 with RULES

60428 Federal Register / Vol. 71, No. 198 / Friday, October 13, 2006 / Rules and Regulations 

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 November 2006. Interest 

assumptions are also published on the 

PBGC’s Web site http://www.pbgc.gov. 

DATES: Effective November 1, 2006. 

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 November 2006, 

(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 

November 2006, 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 

November 2006. 

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 5.70 

percent for the first 20 years following 

the valuation date and 4.75 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for October 2006) of 0.30 percent 

for the first 20 years following the 

valuation date and are otherwise 

unchanged. These interest assumptions 

reflect the PBGC’s recently updated 

mortality assumptions, which are 

effective for terminations on or after 

January 1, 2006. See the PBGC’s final 

rule published December 2, 2005 (70 FR 

72205), which is available at http:// 

www.pbgc.gov/docs/05-23554.pdf. 

Because the updated mortality 

assumptions reflect improvements in 

mortality, these interest assumptions are 

higher than they would have been using 

the old mortality assumptions. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 2.75 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 October 2006) 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 November 2006, 

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 

157, as set forth below, is added to the 

table. 

Appendix B to Part 4022—Lump Sum 

Interest Rates for PBGC Payments 

* * * * * 

erjones on PROD1PC72 with RULES

Federal Register / Vol. 71, No. 198 / Friday, October 13, 2006 / Rules and Regulations 60429 

157 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or 

after Before i1 i2 i3 n1 

* * * * * * 

............................................................ 11–1–06 12–1–06 2.75 4.00 4.00 4.00 

n2 

* 

7 8 

■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum 

157, as set forth below, is added to the Interest Rates for Private-Sector 

table. Payments 

* * * * * 

For plans with a Deferred annuities 

valuation date Immediate (percent) 

Rate set annuity rate 

On or Before (percent) i1 i2 i3 n1 n2 after 

* * * * * * *


157 ............................................................ 11–1–06 12–1–06 2.75 4.00 4.00 4.00 7 8 


PART 4044—ALLOCATION OF Authority: 29 U.S.C. 1301(a), 1302(b)(3), Appendix B to Part 4044—Interest 

ASSETS IN SINGLE-EMPLOYER 1341, 1344, 1362. Rates Used to Value Benefits 

PLANS ■ 5. In appendix B to part 4044, a new * * * * * 

■ 4. The authority citation for part 4044 entry for November 2006, as set forth 

continues to read as follows: below, is added to the table. 

The values of it are: 

For valuation dates occurring in the month— 

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

* * * * * * *


November 2006 ........................................................................................ .0570 1–20 .0475 >20 N/A N/A 


Issued in Washington, DC, on this 5th day 

of October 2006. 

James C. Gerber, 

Acting Interim Director, Pension Benefit 

Guaranty Corporation. 

[FR Doc. E6–16958 Filed 10–12–06; 8:45 am] 

BILLING CODE 7709–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 81 

[EPA OAR–2003–0083; FRL–8231–1] 

Air Quality Designations and 

Classifications for the 8-Hour Ozone 

National Ambient Air Quality 

Standards; Early Action Compact 

Areas With Deferred Effective Dates 

AGENCY: Environmental Protection 


Agency (EPA). 


ACTION: Final rule. 


SUMMARY: This action corrects the 8-

hour ozone nonattainment boundary for 

Monroe County, Georgia by deleting a 

highway from the boundary description, 

and clarifies the 8-hour ozone 

nonattainment boundary for Murray 

County, Georgia by adding a boundary 

description. Monroe County, Georgia is 

part of the Macon, Georgia 8-hour ozone 

nonattainment area and a portion of 

Murray County, Georgia makes up the 

Murray County (Chattahoochee National 

Forest Mountains), Georgia 8-hour 

ozone nonattainment area. The 

nonattainment boundaries for these two 

counties were described in EPA’s final 

8-hour ozone designations rule which 

was published in the Federal Register 

on April 30, 2004. EPA is clarifying the 

exact location of the 8-hour ozone 

nonattainment boundary for Murray 

County by including the precise 

descriptions of the boundary in the 

Code of Federal Regulations. In 

addition, pursuant to Clean Air Act 

(CAA) section 110(k)(6), EPA is also 

correcting an error made in identifying 

the 8-hour ozone nonattainment 

boundary for Monroe County. 

EFFECTIVE DATE: This action is effective: 

October 13, 2006. 

ADDRESSES: EPA has established dockets 

for this action under Docket ID No. 

EPA OAR–2003–0083 (Designations) 

and EPA OAR–2003–0090 (Early 

Action Compacts). All documents in the 

docket are listed on the 

www.regulations.gov Web site. Although 

listed in the index, some information is 

not publicly available, i.e., Confidential 

Business Information or other 

information whose disclosure is 

restricted by statute. Certain other 

material, such as copyrighted material, 

is not placed on the Internet and will be 

publicly available only in hard copy 

form. Publicly available docket 

materials are available either 

electronically in www.regulations.gov 

Web site or in hard copy at the Docket, 

EPA/DC, EPA West, Room B102, 1301 

Constitution Ave., NW., Washington, 

DC. The Public Reading Room is open 

from 8:30 a.m. to 4:30 p.m. Monday 

through Friday, excluding legal 

holidays. The telephone number for the