61558 Federal Register / Vol. 62, No. 222 / Tuesday, November 18, 1997 / Notices

Dated: November 14, 1997.

William M. Hill, Jr.,

Secy Tracking Officer, Office of the Secretary.

[FR Doc. 97–30403 Filed 11–14–97; 2:33 pm]

BILLING CODE 7590–01–M

RAILROAD RETIREMENT BOARD

1998 Railroad Experience Rating

Proclamations, Monthly Compensation

Base and Other Determinations

AGENCY: Railroad Retirement Board.

ACTION: Notice.

SUMMARY: Pursuant to section 8(c)(2)

and section 12(r)(3) of the Railroad

Unemployment Insurance Act (Act) (45

U.S.C. 358(c)(2) and 45 U.S.C. 362(r)(3),

respectively), the Board gives notice of

the following:

1. The balance to the credit of the

Railroad Unemployment Insurance

(RUI) Account, as of June 30, 1997, is

$83,062,894.58;

2. The September 30, 1997, balance of

any new loans to the RUI Account,

including accrued interest, is zero;

3. The system compensation base is

$2,754,953,781.58 as of June 30, 1997;

4. The cumulative system unallocated

charge balance is ($194,812,974.38) as of

June 30, 1997;

5. The pooled credit ratio for calendar

year 1998 is zero;

6. The pooled charged ratio for

calendar year 1998 is zero;

7. The surcharge rate for calendar year

1998 is 1.5 percent;

8. The monthly compensation base

under section 1(i) of the Act is $925 for

months in calendar year 1998;

9. The amount described in section

1(k) of the Act as ‘‘2.5 times the monthly

compensation base’’ is $2,312.50 for

base year (calendar year) 1998;

10. The amount described in section

2(c) of the Act as ‘‘an amount that bears

the same ratio to $775 as the monthly

compensation base for that year as

computed under section 1(i) of this Act

bears to $600’’ is $1,195 for months in

calendar year 1998;

11. The amount described in section

3 of the Act as ‘‘2.5 times the monthly

compensation base’’ is $2,312.50 for

base year (calendar year) 1998;

12. The amount described in section

4(a–2)(i)(A) of the Act as ‘‘2.5 times the

monthly compensation base’’ is

$2,312.50 with respect to

disqualifications ending in calendar

year 1998;

13. The maximum daily benefit rate

under section 2(a)(3) of the Act is $44

with respect to days of unemployment

and days of sickness in registration

periods beginning after June 30, 1998.

DATES: The balance in notice (1) and the

determinations made in notices (3)

through (7) are based on data as of June

30, 1997. The balance in notice (2) is

based on data as of September 30, 1997.

The determinations made in notices (5)

through (7) apply to the calculation,

under section 8(a)(1)(C) of the Act, of

employer contribution rates for 1998.

The determinations made in notices (8)

through (12) are effective January 1,

1998. The determination made in notice

(13) is effective for registration periods

beginning after June 30, 1998.

ADDRESSES: Secretary to the Board,

Railroad Retirement Board, 844 Rush

Street, Chicago, Illinois 60611–2092.

FOR FURTHER INFORMATION CONTACT:

Marla L. Huddleston, Bureau of the

Actuary, Railroad Retirement Board, 844

Rush Street, Chicago, Illinois 60611–

2092, telephone (312) 751–4779.

SUPPLEMENTARY INFORMATION: The RRB

is required by section 8(c)(1) of the

Railroad Unemployment Insurance Act

(Act) (45 U.S.C. 358(c)(1)) as amended

by Pub. L. 100–647, to proclaim by

October 15 of each year certain systemwide factors used in calculating

experience-based employer contribution

rates for the following year. The RRB is

further required by section 8(c)(2) of the

Act (45 U.S.C. 358(c)(2)) to publish the

amounts so determined and proclaimed.

The RRB is required by section 12(r)(3)

of the Act (45 U.S.C. 362(r)(3)) to

publish by December 11, 1997, the

computation of the calendar year 1998

monthly compensation base (section 1(i)

of the Act) and amounts described in

sections 1(k), 2(c), 3 and 4(a–2)(i)(A) of

the Act which are related to changes in

the monthly compensation base. Also,

the RRB is required to publish, by June

11, 1998, the maximum daily benefit

rate under section 2(a)(3) of the Act for

days of unemployment and days of

sickness in registration periods

beginning after June 30, 1998.

Surcharge Rate

A surcharge is added in the

calculation of each employer’s

contribution rate, subject to the

applicable maximum rate, for a calendar

year whenever the balance to the credit

of the RUI Account is less than $100

million on the preceding June 30. If the

RUI Account balance is less than $100

million, but at least $50 million, the

surcharge will be 1.5 percent. If the RUI

Account balance is less than $50

million, but greater than zero, the

surcharge will be 2.5 percent. The

maximum surcharge of 3.5 percent

applies if the RUI Account balance is

less than zero.

The Account balance on June 30,

1997, was $83,062,894.58. Accordingly,

the surcharge rate for calendar year 1998

is 1.5 percent.

Monthly Compensation Base

For years after 1988, section 1(i) of the

Act contains a formula for determining

the monthly compensation base. Under

the prescribed formula, the monthly

compensation base increases by

approximately two-thirds of the

cumulative growth in average national

wages since 1984. The monthly

compensation base for months in

calendar year 1998 shall be equal to the

greater of (a) $600 or (b) $600 [1 + {(A

¥37,800)/56,700}], where A equals the

amount of the applicable base with

respect to tier 1 taxes for 1998 under

section 3231(e)(2) of the Internal

Revenue Code of 1986. Section 1(i)

further provides that if the amount so

determined is not a multiple of $5, it

shall be rounded to the nearest multiple

of $5.

The calendar year 1998 tier 1 tax base

is $68,400. Subtracting $37,800 from

$68,400 produces $30,600. Dividing

$30,600 by $56,700 yields a ratio of

0.53968254. Adding one gives

1.53968254. Multiplying $600 by the

amount 1.53968254 produces the

amount of $923.81, which must then be

rounded to $925. Accordingly, the

monthly compensation base is

determined to be $925 for months in

calendar year 1998.

Amounts Related to Changes in

Monthly Compensation Base

For years after 1988, sections 1(k),

2(c), 3 and 4(a–2)(i)(A) of the Act

contain formulas for determining

amounts related to the monthly

compensation base.

Under section 1(k), remuneration

earned from employment covered under

the Act cannot be considered subsidiary

remuneration if the employee’s base

year compensation is less than 2.5 times

the monthly compensation base for

months in such base year. Multiplying

2.5 by the calendar year 1998 monthly

compensation base of $925 produces

$2,312.50. Accordingly, the amount

determined under section 1(k) is

$2,312.50 for calendar year 1998.

Under section 2(c), the maximum

amount of normal benefits paid for days

of unemployment within a benefit year

and the maximum amount of normal

benefits paid for days of sickness within

a benefit year shall not exceed an

employee’s compensation in the base

year. In determining an employee’s base

year compensation, any money

remuneration in a month not in excess

of an amount that bears the same ratio
Federal Register / Vol. 62, No. 222 / Tuesday, November 18, 1997 / Notices 61559

to $775 as the monthly compensation

base for that year bears to $600 shall be

taken into account.The calendar year

1998 monthly compensation base is

$925. The ratio of $925 to $600 is

1.54166667. Multiplying 1.54166667 by

$775 produces $1,195. Accordingly, the

amount determined under section 2(c) is

$1,195 for months in calendar year

1998.

Under section 3, an employee shall be

a ‘‘qualified employee’’ if his/her base

year compensation is not less than 2.5

times the monthly compensation base

for months in such base year.

Multiplying 2.5 by the calendar year

1998 monthly compensation base of

$925 produces $2,312.50. Accordingly,

the amount determined under section 3

is $2,312.50 for calendar year 1998.

Under section 4(a–2)(i)(A), an

employee who leaves work voluntarily

without good cause is disqualified from

receiving unemployment benefits until

he has been paid compensation of not

less than 2.5 times the monthly

compensation base for months in the

calendar year in which the

disqualification ends. Multiplying 2.5

by the calendar year 1998 monthly

compensation base of $925 produces

$2,312.50. Accordingly, the amount

determined under section 4(a–2)(i)(A) is

$2,312.50 for calendar year 1998.

Maximum Daily Benefit Rate

Section 2(a)(3) contains a formula for

determining the maximum daily benefit

rate for registration periods beginning

after June 30, 1989, and after each June

30 thereafter. Legislation enacted on

October 9, 1996, revised the formula for

indexing maximum daily benefit rates.

Under the prescribed formula, the

maximum daily benefit rate increases by

approximately two-thirds of the

cumulative growth in average national

wages since 1984. The maximum daily

benefit rate for registration periods

beginning after June 30, 1998, shall be

equal to 5 percent of the monthly

compensation base for the base year

immediately preceding the beginning of

the benefit year. Section 2(a)(3) further

provides that if the amount so computed

is not a multiple of $1, it shall be

rounded down to the nearest multiple of

$1.

The calendar year 1997 monthly

compensation base is $890. Multiplying

$890 by 0.05 yields $44.50, which must

then be rounded down to $44.

Accordingly, the maximum daily benefit

rate for days of unemployment and days

of sickness beginning in registration

periods after June 30, 1998, is

determined to be $44.

Dated: November 10, 1997.

By authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 97–30168 Filed 11–17–97; 8:45 am]

BILLING CODE 7905–01–P

SECURITIES AND EXCHANGE

COMMISSION

Submission for OMB Review;

Comment Request

Upon Written Request, Copies Available

From: Securities and Exchange

Commission, Office of Filings and

Information Services, Washington, DC

20549

Extension:

Rule 10b–10, SEC File No. 270–389, OMB

Control No. 3235–0444

Rule 11Ac1–3, SEC File No. 270–382, OMB

Control No. 3235–0435

Rule 15c2–12, SEC File No. 270–330, OMB

Control No. 3235–0372

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.) the Securities

and Exchange Commission

(‘‘Commission’’) has submitted to the

Office of Management and Budget

requests for extension of the previously

approved collections of information

discussed below.

Rule 10b–10, Confirmation of

Transactions, applies to all securities

transactions, other than transactions in

municipal securities or U.S. savings

bonds, it would potentially apply to all

of the approximately 5,400 firms

registered with the Securities and

Exchange Commission that effect

transactions on behalf of customers.

Rule 10b–10 requires broker-dealers

convey to customers basic trade

information regarding their securities

transactions. This information includes

the date and time of the transaction; the

identity and number of shares bought or

sold; and the trading capacity of the

broker-dealer. Depending on the trading

capacity of the broker-dealer, the rule

requires the disclosure of commissions

and, under specified circumstances,

mark-up and mark-down information.

For transactions in debt securities, the

rule requires the disclosure of

redemption and yield information.

The confirmation process is

automated, and it takes about one

minute to generate and send a

confirmation. The cost per confirmation

generally stays the same. Per year, it is

estimated that broker-dealers spend 10.8

million hours complying with Rule

10b–10.

It is important to note, however, that

the confirmation is a customary

document used by the industry. The

staff estimates the costs of producing

and sending a confirmation to be

approximately 89 cents, although the

amount of confirmations sent and the

cost of sending each confirmation will

vary from firm to firm. Smaller firms

will send fewer confirmations because

they will have fewer transactions. As a

result, the total cost to the industry is

approximately $578 million per year

(650 million confirmations at 89 cents

per confirmation).

Rule 11Ac1–3, Customer Account

Statements, requires disclosure on each

new account and on a yearly basis

thereafter, on the annual statement, the

firm’s policies regarding receipt of

payment for order flow from any market

makers, exchanges or exchange

members to which it routes customers’

order in the national market system

securities for execution; and

information regarding the aggregate

amount of monetary payments,

discounts, rebates or reduction in fees

received by the firm over the past year.

It is estimated that there are 5,308

registered broker-dealers with customer

accounts. The staff estimates that the

average number of hours necessary for

each broker-dealer to comply with the

Rule 11Ac1–3 is fourteen hours

annually. Thus, the total burden is

74,312 hours annually. The average cost

per hour is approximately $40.

Therefore, the total cost of compliance

for broker-dealers is $297,248.

Rule 15c2–12, Municipal Securities

Disclosure, requires underwriters of

municipal securities: (1) To obtain and

review a copy of an official statement

deemed final by an issuer of the

securities, except for the omission of

specified information; (2) in noncompetitively bid offerings, to make

available, upon request, the most recent

preliminary official statement, if any; (3)

to contract with the issuer of the

securities, or its agent, to receive, within

specified time periods, sufficient copies

of the issuer’s final official statement to

comply both with this rule and any

rules of the Municipal Securities

Rulemaking Board; (4) to provide, for a

specified period of time, copies of the

final official statement to any potential

customer upon request; (5) before

purchasing or selling municipal

securities in connection with an

offering, to reasonably determine that

the issuer or other specified person has

undertaken, in a written agreement or

contract, for the benefit of holders of

such municipal securities, to provide

certain information about the issue or

issuer on a continuing basis to a

nationally recognized municipal

securities information repository; and

(6) to review the information the issuer