Document headings vary by document type but may contain
                    the following: the agency or agencies that issued and signed a document
the number of the CFR title and the number of each part
                      the document amends, proposes to amend, or is directly
                      related to
the agency docket number / agency internal file number
the RIN which identifies each regulatory action listed in
                      the Unified Agenda of Federal Regulatory and Deregulatory
                      Actions See the
                    Document Drafting Handbook
                    for more details.
 Pension Benefit Guaranty Corporation 29 CFR Parts 4011 and 4022
 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 Single-Employer Plans by adding the maximum guaranteeable pension benefit that may be paid by the PBGC with respect to a plan participant in a single-employer 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 
                    ( print page 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
 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 55Monthly
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