75164 Federal Register / Vol. 65, No. 232 / Friday, December 1, 2000 / Rules and Regulations

cashed out. On December 30, 2005, Jane, who

has a vested benefit with a present value of

less than $5,000, leaves employment.

Because of reasonable administrative delay in

determining the amount of the benefit to be

paid, the plan does not pay Jane the value of

her benefit until January 9, 2006. Under the

provisions of this section, Jane is treated as

not having an accrued benefit on December

31, 2005 (the snapshot date for the 2006

premium), because Jane’s benefit is treated as

having been paid on December 30, 2005.

Thus, Jane is not counted as a participant for

purposes of computing the plan’s 2006

premium.

Example 4. If the plan amendment had

instead provided for cashouts as of the first

of the month following termination of

employment, and the plan paid Jane the

value of her benefit on January 1, 2006, Jane

would be treated under the provisions of this

section as having an accrued benefit on

December 31, 2005, and would thus be

counted as a participant for purposes of

computing the plan’s 2006 premium.

PART 4007—PAYMENT OF PREMIUMS

5. The authority citation for part 4007

continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1303(a),

1306, 1307.

6. In section 4007.8, a new paragraph

(i) is added to read as follows:

§ 4007.8 Late payment penalty charges.

* * * * *

(i) Safe harbor relief for certain plan

amendments prospectively changing

plan year. This waiver applies in the

case of a plan for which a reconciliation

filing is required under

§ 4007.11(a)(2)(iii). The PBGC will

waive the penalty on any underpayment

of the flat-rate premium for the period

that ends on the date the reconciliation

filing is due if, by the date the flat-rate

premium for the premium payment year

is due under § 4007.11(a)(2)(i),—

(1) The plan has been amended to

change its plan year and the amendment

as in effect on that date makes the

premium payment year a short year that

will end after that date; and

(2) The plan administrator pays at

least the lesser of—

(i) The amount determined under

§ 4007.8(g) based on the actual length of

the premium payment year, or

(ii) The amount determined under

§ 4007.8(g) based on the length that the

premium payment year would have if

the new plan year cycle began as

anticipated by the amendment.

Issued in Washington, DC, this 22nd day

of November, 2000.

Alexis M. Herman,

Chairman, Board of Directors, Pension Benefit

Guaranty Corporation.

Issued on the date set forth above pursuant

to a resolution of the Board of Directors

authorizing its Chairman to issue this final

rule.

James J. Keightley,

Secretary, Board of Directors, Pension Benefit

Guaranty Corporation.

[FR Doc. 00–30322 Filed 11–30–00; 8:45 am]

BILLING CODE 7708–01–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4011 and 4022

Disclosure to Participants; Benefits

Payable in Terminated SingleEmployer Plans

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends the

appendix to the Pension Benefit

Guaranty Corporation’s regulation on

Benefits Payable in Terminated SingleEmployer Plans by adding the

maximum guaranteeable pension benefit

that may be paid by the PBGC with

respect to a plan participant in a singleemployer pension plan that terminates

in 2001. This rule also amends the

PBGC’s regulation on Disclosure to

Participants by adding information on

2001 maximum guaranteed benefit

amounts to Appendix B (and updating

the Internet address for obtaining the

PBGC booklet ‘‘Your Guaranteed

Pension’’). The amendment is necessary

because the maximum guarantee

amount changes each year, based on

changes in the contribution and benefit

base under section 230 of the Social

Security Act. The effect of the

amendment is to advise plan

participants and beneficiaries of the

increased maximum guarantee amount

for 2001.

EFFECTIVE DATE: January 1, 2001.

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

20005–4026; 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: Section

4022(b) of the Employee Retirement

Income Security Act of 1974 provides

for certain limitations on benefits

guaranteed by the PBGC in terminating

single-employer pension plans covered

under Title IV of ERISA. One of the

limitations, set forth in section

4022(b)(3)(B), is a dollar ceiling on the

amount of the monthly benefit that may

be paid to a plan participant (in the

form of a life annuity beginning at age

65) by the PBGC. The ceiling is equal to

‘‘$750 multiplied by a fraction, the

numerator of which is the contribution

and benefit base (determined under

section 230 of the Social Security Act)

in effect at the time the plan terminates

and the denominator of which is such

contribution and benefit base in effect in

calendar year 1974 [$13,200].’’ This

formula is also set forth in § 4022.22(b)

of the PBGC’s regulation on Benefits

Payable in Terminated Single-Employer

Plans (29 CFR Part 4022). The appendix

to Part 4022 lists, for each year

beginning with 1974, the maximum

guaranteeable benefit payable by the

PBGC to participants in single-employer

plans that have terminated in that year.

Section 230(d) of the Social Security

Act (42 U.S.C. 430(d)) provides special

rules for determining the contribution

and benefit base for purposes of ERISA

section 4022(b)(3)(B). Each year the

Social Security Administration

determines, and notifies the PBGC of,

the contribution and benefit base to be

used by the PBGC under these

provisions, and the PBGC publishes an

amendment to the appendix to Part

4022 to add the guarantee limit for the

coming year.

The PBGC has been notified by the

Social Security Administration that,

under section 230 of the Social Security

Act, $59,700 is the contribution and

benefit base that is to be used to

calculate the PBGC maximum

guaranteeable benefit for 2001.

Accordingly, the formula under section

4022(b)(3)(B) of ERISA and 29 CFR

§ 4022.22(b) is: $750 multiplied by

$59,700/$13,200. Thus, the maximum

monthly benefit guaranteeable by the

PBGC in 2001 is $3,392.05 per month in

the form of a life annuity beginning at

age 65. This amendment updates the

appendix to Part 4022 to add this

maximum guaranteeable amount for

plans that terminate in 2001. (If a

benefit is payable in a different form or

begins at a different age, the maximum

guaranteeable amount is the actuarial

equivalent of $3,392.05 per month.)

Section 4011 of ERISA requires plan

administrators of certain underfunded

plans to provide notice to plan

participants and beneficiaries of the

plan’s funding status and the limits of

the PBGC’s guarantee. The PBGC’s

regulation on Disclosure to Participants

(29 CFR Part 4011) implements the

statutory notice requirement. This rule

amends Appendix B to the regulation on

Disclosure to Participants by adding

information on 2001 maximum

guaranteed benefit amounts. Plan

administrators may, subject to the

requirements of that regulation, include

Federal Register / Vol. 65, No. 232 / Friday, December 1, 2000 / Rules and Regulations 75165

this information in participant notices.

Participant notices may also include the

Internet address for obtaining the PBGC

booklet ‘‘Your Guaranteed Pension.’’

This rule updates that address.

General notice of proposed

rulemaking is unnecessary. The

maximum guaranteeable benefit is

determined according to the formula in

section 4022(b)(3)(B) of ERISA, and

these amendments make no change in

its method of calculation but simply list

2001 maximum guaranteeable benefit

amounts for the information of the

public.

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

regulation, the Regulatory Flexibility

Act of 1980 does not apply (5 U.S.C.

601(2)).

List of Subjects

29 CFR Part 4011

Employee benefit plans, Pension

insurance, Reporting and recordkeeping

requirements.

29 CFR Part 4022

Employee benefit plans, Pension

insurance, Reporting and recordkeeping

requirements.

In consideration of the foregoing, 29

CFR parts 4011 and 4022 are amended

as follows:

PART 4011—DISCLOSURE TO

PARTICIPANTS

1. The authority citation for part 4011

continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1311.

§ 4011.10 [Amended]

2. Section 4011.10 is amended by

removing the Internet address ‘‘http://

www.pbgc.gov/ygp.htm’’ from the

second sentence of paragraph (b)(9) and

adding in its place the address ‘‘http:/

/www.pbgc.gov’’.

Appendix A to Part 4011 [Amended]

3. Appendix A to part 4011 is

amended by removing the Internet

address ‘‘http://www.pbgc.gov/

ygp.htm’’ under the heading ‘‘WHERE

TO GET MORE INFORMATION’’ and

adding in its place the address ‘‘http:/

/www.pbgc.gov’’.

4. Appendix B to part 4011 is

amended by adding a new entry in

numerical order to the table to read as

follows:

Appendix B to Part 4011—Table of Maximum Guaranteed Benefits

If a plan terminates in—

The maximum guaranteed benefit for an individual starting to receive benefits at the age listed below is

the amount (monthly or annual) listed below:

Age 65 Age 62 Age 60 Age 55

Monthly Annual Monthly Annual Monthly Annual Monthly Annual

*******

*

2001 .................................................. $3,392.05 $40,704.60 $2,679.72 $32,156.64 $2,204.83 $26,457.96 $1,526.42 $18,317.04

* * * * *

PART 4022—BENEFITS PAYABLE IN

TERMINATED SINGLE-EMPLOYER

PLANS

5. 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.

6. Appendix D to part 4022 is

amended by adding a new entry in

numerical order to the table to read as

follows. The introductory text is

reproduced for the convenience of the

reader and remains unchanged.

Appendix D to Part 4022—Maximum

Guaranteeable Monthly Benefit

The following table lists by year the

maximum guaranteeable monthly

benefit payable in the form of a life

annuity commencing at age 65 as

described by § 4022.22(b) to a

participant in a plan that terminated in

that year:

Year

Maximum

guaranteeable

monthly benefit

*****

2001 ....................................... 3,392.05

Issued in Washington, D.C., this 17th day

of November, 2000.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 00–30323 Filed 11–30–00; 8:45 am]

BILLING CODE 7708–01–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits

and Assets; Expected Retirement Age

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This rule amends the Pension

Benefit Guaranty Corporation’s

regulation on Allocation of Assets in

Single-Employer Plans by substituting a

new table that applies to any plan being

terminated either in a distress

termination or involuntarily by the

PBGC with a valuation date falling in

2001, and is used to determine expected

retirement ages for plan participants.

This table is needed in order to compute

the value of early retirement benefits

and, thus, the total value of benefits

under the plan.

EFFECTIVE DATE: January 1, 2001.

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

20005–4026; 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: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) sets forth (in subpart B)

the methods for valuing plan benefits of

terminating single-employer plans

covered under Title IV of the Employee

Retirement Income Security Act of 1974.

Under ERISA section 4041(c),

guaranteed benefits and benefit