Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Rules and Regulations 53539

2. In appendix B, a new entry is

added to Table I, and Rate Set 49 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 =

* * * * * * *

November 1997 ..................................................................... .0570 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

* * * * * * *

49 11–1–97 12–1–97 4.50 4.00 4.00 4.00 7 8

Issued in Washington, D.C., on this 9th day

of October 1997.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 97–27273 Filed 10–14–97; 8:45 am]

BILLING CODE 7708–01–P

POSTAL SERVICE

39 CFR Part 111

Bulk Parcel Return Service and

Shipper Paid Forwarding

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule sets forth the

Domestic Mail Manual (DMM)

standards adopted by the Postal Service

to implement the decision of the

Governors of the Postal Service in Postal

Rate Commission Docket No. MC97–4,

Bulk Parcel Return Service and Shipper

Paid Forwarding.

EFFECTIVE DATES: The amendments to

section S concerning Bulk Parcel Return

Service are effective October 12, 1997,

and the amendments to sections F and

R concerning Shipper Paid Forwarding

are effective January 4, 1998.

FOR FURTHER INFORMATION CONTACT: Tom

DeVaughan, (202) 268–4491.

SUPPLEMENTARY INFORMATION: On June 6,

1997, the United States Postal Service

filed a Request with the Postal Rate

Commission pursuant to sections 3622

and 3623 of the Postal Reorganization

Act, 39 U.S.C. 101 et seq., for a

recommended decision on proposed

changes to the Domestic Mail

Classification Schedule (DMCS). The

proposed revisions also included

proposed new fees. The Postal Service

requested the consideration of two

changes affecting the forwarding and

return of Standard Mail (A) parcels that

were initially considered in Docket No.

MC97–2. It requested that Bulk Parcel

Return Service (BPRS) and Shipper Paid

Forwarding (SPF) be established.

Pursuant to 39 U.S.C. 3624, on

September 4, 1997, the PRC issued its

Recommended Decision in Docket

MC97–4, to the Governors of the United

States Postal Service. That decision

adopted the BPRS and SPF

classifications and fees proposed in a

Revised Stipulation and Agreement

submitted by most of the parties in the

proceeding. Pursuant to 39 U.S.C. 3625,

the Governors acted on the PRC’s

Recommendation on October 6, 1997.

The Governors approved the PRC’s

recommendations, and set an

implementation date of October 12,

1997, for BPRS. Due to software and

other support modifications needed for

Computer Forwarding Sites and the

Address Change Service network to

support SPF, the Governors set January

4, 1998, for the effective date of SPF.

Under current practice, forwarding

and return of bulk Standard Mail (A)

parcels are obtained by endorsing pieces

‘‘Forwarding Service Requested’’ (or

until December 31, 1997, ‘‘Forwarding

and Return Postage Guaranteed’’) or

‘‘Address Service Requested’’ (or until

December 31, 1997, ‘‘Forwarding and

Return Postage Guaranteed, Address

Correction Requested’’). The postage

charged at the time that a parcel is

returned is a weighted fee that is 2.472

times the applicable single-piece rate.

This fee indirectly pays for forwarding

service of other parcels: 1.472 is the

average number of pieces forwarded for
53540 Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Rules and Regulations

every piece that is returned. Multiplying

1.472 by the single-piece rate is

intended to cover the cost of the

forwarding service.

BPRS and SPF will provide mailers

other options. SPF allows mailers to pay

forwarding postage (the applicable

single-piece rate) directly through the

use of the tracking capabilities of the

existing electronic Address Change

Service (ACS). Only mailers authorized

to participate in ACS and who mail

machinable parcels with the required

endorsement will be eligible. An

advance postage due deposit account is

required. BPRS, through bulk handling

of returned parcels, lowers the average

cost of the return service. BPRS mailers

must arrange for pickup of their

returned parcels in bulk at a specified

frequency at a designated postal

facility(s), or arrange to have their

returned parcels delivered to them in

bulk by the Postal Service. Only

machinable parcels weighing less than

one pound, with the required

endorsements, are eligible for BPRS. A

minimum requirement of 10,000

returned parcels per year at each site

(return address) is required. BPRS

mailers must document their returned

parcel volume and maintain an advance

deposit account. A flat $1.75 per-piece

fee for each returned parcel and an

annual permit fee of $85.00 are required

at each designated facility. BPRS and

SPF can be combined, beginning with

the January 4, 1998, effective date for

SPF.

This final rule contains the DMM

standards adopted by the Postal Service

to implement the Governors decision.

Appropriate clarifications are included.

Lists of Subjects in 39 CFR Part 111

Postal Service.

For the reasons discussed above, the

Postal Service hereby adopts the

following amendments to the Domestic

Mail Manual, which is incorporated by

reference in the Code of Federal

Regulations (see 39 CFR part 111).

PART 111—[AMENDED]

The authority citation for 39 CFR part

111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,

401, 403, 404, 3001–3011, 3201–3219, 3403–

3406, 3621, 3626, 5001.

Revise the following sections of the

Domestic Mail Manual as noted below:

* * * * *

F FORWARDING AND RELATED

SERVICES

F010 Basic Information

* * * * *

5.0 CLASS TREATMENT FOR

ANCILLARY SERVICES

* * * * *

5.3 Standard Mail (A)

* * * * *

[Redesignate existing 5.3c through 5.3e

as 5.3d through 5.3f, respectively;

redesignate existing 5.3g as 5.3i. Amend

5.3 by adding a new 5.3c and new 5.3h

to read as follows:].

* * * * *

c. Effective January 4, 1998, mail that

qualifies for Shipper Paid Forwarding

(F020) under the applicable standards is

forwarded (and if necessary) returned at

the Standard Mail (A) single-piece rate.

* * * * *

h. Mail that qualifies for Bulk Parcel

Return Service (BPRS) under the

applicable standards in S924 is returned

at the BPRS per piece fee, if the mailer

uses one of the endorsements that

includes ‘‘— BPRS.’’ Until January 4,

1998, when SPF becomes effective,

mailers using BPRS will not be able to

request forwarding services.

‘‘Return Service Requested—BPRS’’ ....... Piece returned with new address or reason for nondelivery attached; only the Bulk Parcel Return

Service fee charged (address correction fee not charged).

(Effective January 4, 1998)

‘‘Address Service Requested—BPRS’’ ..... Months 1 through 12: piece forwarded; no charge to addressee; separate ACS notice of new address provided; ACS address correction fee and postage at single-piece Standard Mail (A) rate

charged via ACS participant code.

Months 13 through 18: piece returned with new address attached; only the Bulk Parcel Return Service fee charged (address correction fee not charged).

After month 18, or if undeliverable: piece returned with reason for nondelivery attached; only Bulk

Parcel Return Service fee charged (address correction fee not charged).

* * * * *

F020 Forwarding

* * * * *

3.0 POSTAGE FOR FORWARDING

* * * * *

3.5 Standard Mail (A)

[Amend 3.5 to read as follows:]

Generally, Standard Mail (A) is

subject to collection of additional

postage from the mailer when

forwarding service is provided by

charging the Standard Mail (A)

weighted fee on all returns. Shipper

Paid Forwarding, used in conjunction

with Address Change Service (F030),

provides mailers of Standard Mail (A)

machinable parcels an option of paying

forwarding postage at the Standard Mail

(A) single-piece rate. Mail that qualifies

for Bulk Parcel Return Service (BPRS) is

returned at the BPRS per piece charge

if the mailer uses one of the ancillary

service endorsements that specifies

BPRS (e.g., ‘‘Return Service Requested—

BPRS’’). * * *

* * * * *

F030 Address Correction, Address

Change, FASTforward,SM and Return

Services

* * * * *

2.0 ADDRESS CHANGE SERVICE

(ACS)

2.1 Description

[Amend 2.1 to read as follows:]

Address Change Service (ACS)

centralizes, automates, and improves

the processing of address correction

requests for mailers. ACS involves

transmitting address correction

information to a central point where the

changes are consolidated electronically

by unique publication or mailer

identifier. These records are

sequentially organized by USPSassigned codes and distributed to each

participating mailer. ACS can also be

used to pay forwarding postage on most

Standard Mail pieces using Shipper

Paid Forwarding under 2.5.

* * * * *

[Add new 2.5 to read as follows:]

2.5 Shipper Paid Forwarding

Shipper Paid Forwarding (SPF) is an

ACS fulfillment vehicle. It allows

mailers of Standard Mail (A)

machinable parcels (effective January 4,

1998), and most Standard Mail (B) to

pay forwarding charges via approved

ACS participant code(s). For

information, write to the National
Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Rules and Regulations 53541

Customer Support Center (see G043 for

address).

* * * * *

R RATES AND FEES

* * * * *

R600 Standard Mail

* * * * *

10.0 FEES

10.1 Mailing

[Redesignate current 10.1b and 10.1c as

10.1c and 10.1d respectively; add new

10.1b to read as follows]

b. Bulk Parcel Return Service Permit

Fee: $85.00

* * * * *

[Add new 10.4 to read as follows:]

10.4 Bulk Parcel Return Service Fee

Bulk Parcel Return Service fee per

piece returned: $1.75

* * * * *

S900 Special Postal Services

* * * * *

S920 Convenience

* * * * *

[Add new S924 to read as follows:]

S924 Bulk Parcel Return Service

1.0 BASIC INFORMATION

1.1 Description

Bulk Parcel Return Service (BPRS)

provides a method whereby highvolume parcel mailers may have

undeliverable-as-addressed machinable

parcels returned to designated postal

facilities for bulk pickup by the mailer

at a predetermined frequency prescribed

by the Postal Service, or delivered by

the Postal Service in bulk in a manner

and frequency prescribed by the Postal

Service. Mailers using this service pay

only the BPRS per piece fee for each

parcel returned.

1.2 Availability

BPRS is available only for the return

of machinable parcels, as defined in

C050, initially prepared and mailed as

Regular or Nonprofit Standard Mail (A)

machinable parcels. Mail for which

BPRS is requested must bear one of the

BPRS endorsements in F010 and a

return address that is in the delivery

area of the post office that issued the

BPRS permit. Effective January 4, 1998,

BPRS may also be combined with the

Shipper Paid Forwarding service (F030).

Any Standard Mail (A) parcel that

qualifies for a single-piece Standard

Mail (B) rate under the applicable

standards, and that contains the name of

the Standard Mail (B) rate in the

mailer’s ancillary service endorsement

is not eligible for BPRS.

1.3 Payment Guarantee

The permit holder guarantees

payment of fees on all returned parcels

from a centralized advance deposit

postage due account.

1.4 Where Service Established

BPRS may be established at any post

office in the United States and its

territories and possessions or at any U.S.

military post office overseas (APO/FPO).

It is not available in any foreign country.

2.0 PERMITS

2.1 Application Process and

Participation

To participate in BPRS, the mailer

must make a written request to the

postmaster at each post office where

parcels are to be returned. The request

must:

a. Demonstrate receipt of 10,000

returned machinable Standard Mail (A)

parcels at a given delivery point during

the previous 12 months, or

b. Demonstrate a high likelihood of

receiving a minimum of 10,000 returned

machinable Standard Mail (A) parcels at

a given delivery point in the coming 12

months.

The written request must be

submitted with the annual permit fee, a

description of the mail (e.g., size,

packaging), a sample of the

documentation to be used to

substantiate individually, the number of

parcels returned each day, and the

requested frequency and location of the

pickup or delivery of the parcels. If the

mailer’s request is approved, the USPS

issues the mailer an authorization letter

and agreement with the BPRS permit

number (which will be used solely for

account and annual fee tracking). The

BPRS permit number is not to appear on

the mail. The mailer must have a valid

postage due advance deposit account

and pay the annual BPRS permit fee to

participate in BPRS.

2.2 Permit Renewal

An annual renewal notice is provided

to each BPRS permit holder. The notice

must be returned to the post office that

issued the permit with the fee payment

or authorization for the postmaster to

deduct the fee from the advance deposit

account by the expiration date of the

permit. Written authorization is not

needed for permit renewal if there is no

change to the authorization on file at the

post office where the parcels are to be

returned. If, after notice, the permit

holder does not renew a BPRS permit,

the USPS endorses the mail ‘‘Bulk

Parcel Return Service Canceled’’ and

charges postage due at the single-piece

Standard Mail (A) rate. If the singlepiece Standard Mail (A) rate is not paid,

the mail is then forwarded to the nearest

mail recovery center for final

disposition.

2.3 Procedure

An approved BPRS permit and fee

payment must be on file at every post

office to which parcels are returned.

2.4 Permit Cancellation

The USPS may cancel a permit if the

permit holder fails to meet the

minimum requirements, refuses to

accept and pay the required fee for

parcels returned, fails to keep sufficient

funds in the advance deposit account to

cover fees due for returned parcels, or

fails to meet terms of the authorization

(e.g., fails to pickup mail on agreed

upon frequency).

2.5 Reapplying After Cancellation

To receive a new permit at the same

post office after a BPRS permit is

canceled, the applicant must resubmit a

letter to that office; pay a new permit

fee; provide evidence that the reasons

for the permit cancellation are

corrected; and provide and keep funds

in an advance deposit account to cover

normal returns for at least 2 weeks.

3.0 POSTAGE AND FEES

3.1 Permit Fee

A permit fee is charged once each 12-

month period on the anniversary date of

the permit. The fee may be paid in

advance only for the next year and only

during the last 30 days of the current

service period. The fee charged is that

which is in effect on the date of

payment.

3.2 Payment

The permit holder must pay BPRS per

piece fees by an advance deposit

account. The post office delivers parcels

under this service only when estimated

sufficient funds are in the account to

pay all applicable fees. The permit

holder may establish a unique advance

deposit account or use an existing one

to pay postage under BPRS.

* * * * *

An appropriate amendment to 39 CFR

111.3 will be published to reflect these

changes.

Neva R. Watson,

Alternate Liaison Officer.

[FR Doc. 97–27299 Filed 10–10–97; 11:50

am]

BILLING CODE 7710–12–P