50070 Federal Register / Vol. 69, No. 156 / Friday, August 13, 2004 / 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 September 2004. Interest 

assumptions are also published on the 

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

EFFECTIVE DATE: September 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 September 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 

September 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 

September 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 4.20 

percent for the first 20 years following 

the valuation date and 5.00 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for August 2004) of 0.10 percent 

for the first 20 years following the 

valuation date and are otherwise 

unchanged. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 3.25 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 August 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 September 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:

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

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

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

131, 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

*******

131 9–1–04 10–1–04 3.25 4.00 4.00 4.00 7 8

Federal Register / Vol. 69, No. 156 / Friday, August 13, 2004 / Rules and Regulations 50071

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

131, 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

*******

131 9–1–04 10–1–04 3.25 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 occurring in the month—

The values of i t are: 

i 1 for t = i t for t = i 1 for t =

*******

September 2004 ............................................................................................................... .0420 1–20 .0500 >20 N/A N/A 

Issued in Washington, DC, on this 10th day 

of August 2004. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 04–18538 Filed 8–12–04; 8:45 am] 

BILLING CODE 7708–01–P

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52

[R01–OAR–2004–CT–0003; A–1–FRL–7801–

2] 

Approval and Promulgation of Air 

Quality ImplementationPlans; 

Connecticut; Carbon Monoxide 

Maintenance Plan Updates; Limited 

Maintenance Plans

AGENCY: Environmental Protection 

Agency (EPA).

ACTION: Final rule.

SUMMARY: EPA is approving a State 

Implementation Plan (SIP) revision 

submitted by the State of Connecticut. 

This revision establishes limited 

maintenance plans for the Hartford-New 

Britain-Middletown, the New HavenMeriden-Waterbury, and the 

Connecticut portion of the New YorkNorthern New Jersey-Long Island carbon 

monoxide attainment areas, and 

provides the ten-year update to these 

three carbon monoxide maintenance 

plans. EPA is taking this action under 

the Clean Air Act.

DATES: Effective Date: This rule will 

become effective on September 13, 

2004.

ADDRESSES: EPA has established a 

docket for this action under Regional 

Material in EDocket (RME) Docket ID 

Number R01–OAR–2004–CT–0003. All 

documents in the docket are listed in 

the Regional Material in EDocket (RME) 

index at http://docket.epa.gov/rmepub/,

once in the system, select ‘‘quick 

search,’’ then key in the appropriate 

RME Docket identification number. 

Although listed in the electronic docket, 

some information is not publicly 

available, i.e., CBI 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 

Regional Material in EDocket or in hard 

copy at Office of Ecosystem Protection, 

U.S. Environmental Protection Agency, 

EPA New England Regional Office, One 

Congress Street, Suite 1100, Boston, 

MA. EPA requests that if at all possible, 

you contact the contact listed in the FOR

FURTHER INFORMATION CONTACT section to 

schedule your inspection. The Regional 

Office’s official hours of business are 

Monday through Friday, 8:30 to 4:30 

excluding Federal holidays. 

Copies of the documents relevant to 

this action are also available for public 

inspection during normal business 

hours, by appointment at the Bureau of 

Air Management, Department of 

Environmental Protection, State Office 

Building, 79 Elm Street, Hartford, CT 

06106–1630.

FOR FURTHER INFORMATION CONTACT:

Donald O. Cooke, Air Quality Unit, U.S. 

Environmental Protection Agency, EPA 

New England Regional Office, Office of 

Ecosystem Protection, One Congress 

Street, Suite 1100 (CAQ), Boston, MA 

02114–2023, telephone number (617) 

918–1668, fax number (617) 918–0668, 

e-mail cooke.donald@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

On June 28, 2004, the Connecticut 

Department of Environmental Protection 

(CT DEP) submitted a revision to its 

State Implementation Plan (SIP) for 

‘‘Limited Maintenance Plans for the 

Hartford, the New Haven, and the 

Connecticut Portion of the New York/

New Jersey/Connecticut Carbon 

Monoxide Maintenance Areas.’’ The 

revision consists of a second follow-on 

ten-year carbon monoxide maintenance 

plan for the Hartford-New BritainMiddletown carbon monoxide 

attainment area (period 2006 to 2015) 

and a request for a limited carbon 

monoxide maintenance plan 

designation. The State of Connecticut 

also requested limited maintenance plan 

approval and early approval of the 

second follow-on ten-year maintenance 

plans for both the New Haven-MeridenVerDate jul<14>2003 15:03 Aug 12, 2004 Jkt 203001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\13AUR1.SGM 13AUR1