Federal Register / Vol. 69, No. 30 / Friday, February 13, 2004 / Rules and Regulations 7119

§ 635.124 Participation in contract claim 

awards and settlements.

* * * * *

(b) The FHWA shall be made aware 

by the STD of the details of the claim 

at an early stage so that coordination of 

efforts can be satisfactorily 

accomplished. It is expected that STDs 

will diligently pursue the satisfactory 

resolution of claims within a reasonable 

period of time. Claims arising on 

exempt non-NHS projects should be 

processed in accordance with the State’s 

approved Stewardship Plan.

* * * * *

■ 13. Revise § 635.202 to read as follows:

§ 635.202 Applicability. 

This subpart applies to all Federal-aid 

and other highway construction projects 

financed in whole or in part with 

Federal funds and to be constructed by 

a State transportation department or a 

subdivision thereof in pursuant of 

agreements between any other State 

transportation department and the 

Federal Highway Administration 

(FHWA).

■ 14. Revise § 635.303 to read as follows:

§ 635.303 Applicability. 

The provisions of this subpart are 

applicable to all Federal-aid highway 

construction projects.

■ 15. Revise § 635.405 to read as follows:

§ 635.405 Applicability. 

The requirements and procedures 

prescribed in this subpart apply to all 

contracts relating to Federal-aid 

highway projects.

Subpart E to Part 635—[Removed]

■ 16. Remove subpart E to part 635.

PART 640—[REMOVED]

■ 17. Remove part 640.

[FR Doc. 04–3273 Filed 2–12–04; 8:45 am] 

BILLING CODE 4910–22–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 March 2004. Interest 

assumptions are also published on the 

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

EFFECTIVE DATE: March 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 March 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 

March 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 March 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 4.10 

percent for the first 20 years following 

the valuation date and 5.00 percent 

thereafter. These interest assumptions 

are unchanged from those in effect for 

February 2004. 

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 February 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 March 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:

7120 Federal Register / Vol. 69, No. 30 / Friday, February 13, 2004 / Rules and Regulations 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344.

■ 2. In appendix B to part 4022, Rate Set 

125, 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 i 1 i 2 i 3 n 1 n 2

*******

125 3–1–04 4–1–04 3.00 4.00 4.00 4.00 7 8 

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

125, 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 i 1 i 2 i 3 n 1 n 2

*******

125 3–1–04 4–1–04 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 occuring in the month— 

The values of it are: 

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

*******

March 2004 ....................................................................... .0410 1–20 .0500 >20 N/A N/A 

Issued in Washington, DC, on this 10th day 

of February 2004. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 04–3244 Filed 2–12–04; 8:45 am] 

BILLING CODE 7708–01–P

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4904 

RIN 1212–AA99 

Ethical Conduct of Employees

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty 

Corporation is removing its regulations 

on the ethical conduct of employees 

(Part 4904). The standards of ethical 

conduct issued by the Office of 

Government Ethics provide guidance for 

PBGC employees on this subject.

EFFECTIVE DATE: February 13, 2004.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General 

Counsel, or Thomas H. Gabriel, 

Attorney, Office of the General Counsel, 

PBGC, 1200 K Street, NW., Washington, 

DC 20005–4026; 202–326–4024. (For 

TTY/TDD users, call the Federal relay 

service toll-free at 1–800–877–8339 and 

ask to be connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: On August 

7, 1992 (57 FR 35006), the Office of 

Government Ethics published a final 

rule on Standards of Ethical Conduct for 

Employees of the Executive Branch. The 

OGE standards (5 CFR part 2635), which 

took effect on February 3, 1993, 

establish uniform ethical conduct 

standards applicable to all executive 

branch personnel. 

When OGE published the standards, it 

stated that although most existing 

individual agency standards of conduct 

would be superseded when the 

standards took effect, an agency’s 

standards dealing with outside 

employment would be preserved for one 

year or until the agency issued a 

supplemental regulation, whichever 

occurred first. (The time period was 

subsequently extended, but has now 

expired for the PBGC.) 

On January 14, 1993 (58 FR 4318), the 

PBGC issued a final rule that amended 

its regulations on the Ethical Conduct of