Federal Register / Vol. 63, No. 136 /Thursday, July 16, 1998 /Rules and Regulations 38305

of all finfish except Acipenseriformes,

1,000 to 2,000 μL/L (ppm) for 15

minutes; eggs of Acipenseriformes, up

to 1,500 μL/L (ppm) for 15 minutes.

* * * * *

Dated: July 9, 1998.

Stephen F. Sundlof,

Director, Center for Veterinary Medicine.

[FR Doc. 98–18955 Filed 7–15–98; 8:45 am]

BILLING CODE 4160–01–F

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4011, 4022, 4041A, 4044,

4050 and 4281

RIN 1212–AA88

Valuation and Payment of Lump Sum

Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation is amending its regulations

to increase the maximum value of

benefits that the PBGC may pay in lump

sum form, and certain other lump sum

thresholds, from $3,500 to $5,000. The

amendments do not affect lump sum

benefits paid by ongoing plans.

DATES: The amendments to 29 CFR

4022.7, 4044.52(b), and 4044.54 are

effective July 16, 1998. (However,

except to the extent they affect

determinations under § 4022.7, the

amendments to 29 CFR 4044.52(b) and

4044.54 apply only to a plan with a

termination date on or after August 17,

1998.) The final rule is otherwise

effective August 17, 1998.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, or Marc L. Jordan, Attorney,

Pension Benefit Guaranty Corporation,

Office of the General Counsel, Suite 340,

1200 K Street, NW., Washington, DC

20005–4026, 202–326–4024. (For TTY/

TTD 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

203(e) of ERISA specifies the maximum

value that a plan may provide it will

pay in a lump sum (i.e., single

installment) to a participant or surviving

spouse without consent. The Taxpayer

Relief Act of 1997 increased the section

203(e) maximum from $3,500 to $5,000

effective for plan years beginning after

August 5, 1997.

On April 30, 1998, the PBGC

proposed to amend its regulations to

increase various $3,500 thresholds to

$5,000 and to make other changes

relating to lump sum payments. The

PBGC received no comments in

response to the proposed rule and is

issuing the final rule without change, as

follows:

• Under the final rule, the PBGC may

make a lump sum payment of a benefit

that has a value of $5,000 or less as of

the plan’s termination date. (See

§ 4022.7 and, to the extent they affect

determinations under § 4022.7,

§§ 4044.52(b), and 4044.54.) There are

special rules for applying the lump sum

threshold where the PBGC issues a

determination on title IV benefits before

it issues a determination on benefits

payable under ERISA section 4022(c).

Consistent with its current practice, the

PBGC will give the participant the

option to receive the benefit in the form

of an annuity if the monthly benefit (at

normal retirement age in the normal

form for an unmarried participant) is

equal to or greater than $25.

Applicability: This amendment

applies to any initial determination

issued on or after July 16, 1998. For any

initial determination issued before July

16, 1998, the PBGC may make a lump

sum payment of a benefit with a value

of $5,000 or less, provided (1) the

benefit is not yet in pay status, and (2)

the participant (with spousal consent) or

beneficiary elects the lump sum

payment.

• Under the final rule, the lump sum

threshold under §§ 4044.52(b) and

4044.54, which is used for determining

whether lump sum or annuity

assumptions are used to value benefits

for purposes of allocating assets to

benefits under ERISA section 4044, is

$5,000.

Applicability: This amendment

applies to any plan with a termination

date on or after August 17, 1998.

• The reference to the lump sum

threshold in the PBGC’s Model

Participant Notice (Part 4011, Appendix

A) is changed from $3,500 to $5,000.

Applicability: This amendment

applies to any Participant Notice issued

on or after August 17, 1998. However,

for a reasonable time period, the PBGC

will not treat a Participant Notice as

failing to satisfy the Participant Notice

requirements merely because it refers to

the $3,500 threshold.

• The dollar thresholds in the

Missing Participants regulation are

increased from $3,500 to $5,000. See

§§ 4050.2 (definition of missing

participant annuity assumptions) and

4050.5(a)(2) (de minimis lump sum).

Applicability: This amendment

applies to missing participants for

whom the deemed distribution date is

on or after August 17, 1998.

• The dollar threshold up to which

the plan sponsor of a terminated

multiemployer plan that is closing out

may make a lump sum payment of

nonforfeitable benefits is increased from

$3,500 to $5,000 (see § 4041A.43(b)(1)).

Applicability: This amendment

applies to any distribution made on or

after August 17, 1998.

• In the case of participant deaths

after the termination date, the final rule

allows the PBGC to make a lump sum

payment of a qualified preretirement

survivor annuity with a value of $5,000

or less if the surviving spouse elects a

lump sum (§ 4022.7(b)(1)(iii)).

Applicability: This amendment

applies to any lump sum payment made

on or after July 16, 1998.

• The final rule allows the PBGC to

make a lump sum payment, without

regard to amount, of any benefits due to

an estate (e.g., under a certain and

continuous benefit where the designated

beneficiary predeceases the participant)

if the estate elects a lump sum (see

§ 4022.7(b)(1)(iv)).

Applicability: This amendment

applies to any payment made on or after

July 16, 1998.

Finally, the final rule (1) eliminates,

as unnecessary, two provisions in its

multiemployer valuation regulation that

refer to the $3,500 limit, and (2) makes

clear that the lump sum value of a

benefit is calculated by valuing the

monthly annuity benefit (which

excludes the value of certain

preretirement death benefits, such as a

qualified preretirement survivor

annuity).

Rulemaking Requirements

The PBGC has determined that good

cause exists to make certain

amendments (the amendments to 29

CFR 4022.7 and, to the extent they affect

determinations under 29 CFR 4022.7,

the amendments to §§ 4044.52(b) and

4044.54) effective and applicable

immediately. These amendments

impose requirements only on the PBGC.

A delayed effective date is unnecessary

because no person other than the PBGC

needs time to prepare. See 5 U.S.C.

553(d)(3).

E.O. 12866 and the Regulatory

Flexibility Act

The PBGC has determined that this

final rule is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866. The PBGC

certifies that the amendments will not

have a significant economic impact on

a substantial number of small entities.

The amendments will affect only de

minimis benefits and will have an

immaterial effect on liabilities
38306 Federal Register / Vol. 63, No. 136 /Thursday, July 16, 1998 /Rules and Regulations

associated with plan termination.

Accordingly, as provided in section

605(b) of the Regulatory Flexibility Act,

sections 603 and 604 do not apply.

List of Subjects

29 CFR Parts 4022 and 4041A

Pension insurance, Pensions,

Reporting and recordkeeping

requirements.

29 CFR Part 4044

Pension insurance, Pensions.

29 CFR Parts 4011, 4050 and 4281

Pensions, Reporting and

recordkeeping requirements.

For the reasons set forth above, the

PBGC is amending parts 4011, 4022,

4041A, 4044, 4050, and 4281 of 29 CFR

chapter XL 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) and 1311.

Appendix A to Part 4011 [Amended]

2. Appendix A to Part 4011 is

amended by removing the sentence

‘‘The PBGC does not pay lump sums

exceeding $3,500.’’ which immediately

precedes the heading ‘‘WHERE TO GET

MORE INFORMATION’’, and adding in

its place the sentence ‘‘The PBGC

generally does not pay lump sums

exceeding $5,000.’’

PART 4022—BENEFITS PAYABLE IN

TERMINATED SINGLE-EMPLOYER

PLANS

3. The authority citation for part 4022

continues to read as follows:

Authority: 29 U.S.C. 1302 and 1322.

4. In § 4022.7, paragraph (b)(1) is

revised, and new paragraph (d) is

added, to read as follows:

§ 4022.7 Benefits payable in a single

installment.

* * * * *

(b)(1) Payment in lump sum.

Notwithstanding paragraph (a) of this

section:

(i) In general. If the lump sum value

of a benefit payable by the PBGC is

$5,000 or less and the benefit is not yet

in pay status, the benefit may be paid in

a lump sum. In determining whether the

lump sum value of a benefit is $5,000

or less, the value of any amounts

returned under paragraph (b)(2) of this

section is disregarded. If the PBGC

determines a title IV benefit before it

determines the benefit payable under

section 4022(c) of ERISA, the $5,000

threshold shall apply separately to the

title IV benefit. The section 4022(c)

benefit shall be paid in annuity form if

the title IV benefit is paid in annuity

form, and otherwise shall be separately

subject to the $5,000 threshold.

(ii) Annuity option. If the PBGC

would otherwise make a lump sum

payment in accordance with paragraph

(b)(1)(i) of this section and the monthly

benefit is equal to or greater than $25 (at

normal retirement age and in the normal

form for an unmarried participant), the

PBGC shall provide the participant (or

the beneficiary of a participant who is

deceased as of the termination date) the

option to receive the benefit in the form

of an annuity.

(iii) Election of QPSA lump sum. If

the lump sum value of a qualified

preretirement survivor annuity is $5,000

or less, the benefit is not yet in pay

status, and the participant dies after the

termination date, the benefit may be

paid in a lump sum if so elected by the

surviving spouse.

(iv) Certain and continuous payments

to estates. The PBGC may pay any

benefits payable to an estate (e.g., in the

case of benefits under a certain and

continuous annuity where the

designated beneficiary predeceases the

participant) in a lump sum without

regard to the threshold in paragraph

(b)(1)(i) of this section if so elected by

the estate. The payments shall be

discounted using the immediate interest

rate that would be applicable to the plan

under § 4044.52(b) if the termination

date had been the date of death (or, if

later, July 16, 1998).

* * * * *

(d) Determination of lump sum

amount. The lump sum value of a

benefit shall be determined in

accordance with § 4044.52(b).

PART 4041A—TERMINATION OF

MULTIEMPLOYER PLANS

5. The authority citation for part

4041A continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1341a,

1441.

§ 4041A.43 [Amended]

6. In § 4041A.43, paragraph (b)(1) is

amended by removing ‘‘$3,500’’ and

adding, in its place, ‘‘$5,000’.

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

7. The authority citation for part 4044

continues to read as follows:

Authority: 29 U.S.C. 1301(a), 1302(b)(3),

1341, 1344, 1362.

8. In section 4044.52, the introductory

text to paragraph (b) is revised to read

as follows:

§ 4044.52 Valuation of benefits.

* * * * *

(b) Benefits payable as lump sums.

For valuing benefits payable as lump

sums (including the return of

accumulated employee contributions

upon death), and for determining

whether the lump sum value of a benefit

exceeds $5,000, the plan administrator

shall determine the lump sum value of

a benefit by valuing, in accordance with

paragraph (a) of this section, the

monthly annuity benefits payable in the

form determined under § 4044.51(a) and

commencing at the time determined

under § 4044.51(b), except that—

* * * * *

§ 4044.54 [Amended]

9. Section 4044.54 is amended by

removing ‘‘$3,500’’ and adding, in its

place, ‘‘$5,000’’.

PART 4050—MISSING PARTICIPANTS

10. The authority citation for part

4050 continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1350.

§ 4050.2 [Amended]

11. In § 4050.2, paragraph (5) of the

definition of Missing Participant

Annuity Assumptions is amended by

removing ‘‘$3,500’’ and adding, in its

place, ‘‘$5,000’’.

§ 4050.5 [Amended]

12. In § 4050.5, paragraph (a)(2) is

amended by removing ‘‘$3,500’’ and

adding, in its place, ‘‘$5,000’’.

Appendix A to Part 4050 [Amended]

13. In Appendix A, the heading is

amended by adding at the end, the

words ‘‘in plans with deemed

distribution dates on and after August

17, 1998’’; the introductory text to

Example 1 is amended by removing

‘‘$1,750’’ and adding, in its place,

‘‘$3,500’’; paragraph (1) to Example 1 is

amended by removing ‘‘$1,700’’ each

time it appears and adding, in each

place, ‘‘$3,000’’; paragraph (2) to

Example 1 is amended by removing

‘‘$3,700’’ and adding, in its place,

‘‘$5,200’’ and removing ‘‘$3,200’’ each

time it appears and adding, in each

place, ‘‘$4,700’’; paragraph (3) to

Example 1 is amended by removing

‘‘$3,400’’ and adding, in its place,

‘‘$4,900’’ and removing ‘‘$3,450’’ each

time it appears and adding, in each

place, ‘‘$4,950’’; and paragraph (1) of

Example 2 is amended by removing
Federal Register / Vol. 63, No. 136 /Thursday, July 16, 1998 /Rules and Regulations 38307

‘‘$3,500’’ and adding, in its place,

‘‘$5,000’’.

PART 4281—DUTIES OF PLAN

SPONSOR FOLLOWING MASS

WITHDRAWAL

14. The authority citation for part

4281 continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1341a,

1399(c)(1)(D), and 1441.

§ 4281.13 [Amended]

15. In section 4281.13, paragraph (b)

is removed, the introductory text to

paragraph (a) is amended by removing

the paragraph designation, the heading,

and the words ‘‘paragraph (b) of this

section (regarding the valuation of

benefits payable as lump sums under

trusteed plans) and’’, and paragraphs

(a)(1) through (a)(5) are redesignated as

paragraphs (a) through (e).

§ 4281.14 [Amended]

16. In section 4281.14, the section

heading is amended by removing the

phrase ‘‘—in general’’, and paragraph (a)

is amended by removing the words

‘‘Except as otherwise provided in

§ 4281.15 (regarding the valuation of

benefits payable as lump sums under

trusteed plans), and subject’’ and

adding, in their place, the word

‘‘Subject’’.

§ 4281.15 [Removed and Reserved]

17. Section 4281.15 is removed and

reserved.

Issued in Washington, DC, this 10th day of

July, 1998.

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.

Terrence Deneen,

Acting Secretary, Board of Directors, Pension

Benefit Guaranty Corporation.

[FR Doc. 98–18995 Filed 7–15–98; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 165

[CGD11–97–010]

RIN 2115–AE84

Regulated Navigation Area: Copper

Canyon, Lake Havasu, Colorado River

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: The Coast Guard is

establishing a Regulated Navigation

Area (RNA) within the Copper Canyon,

Lake Havasu region on the waters of the

Colorado River. This action is necessary

because the Coast Guard has determined

that the extremely heavy traffic of

recreational vessels in this area,

particularly during peak holiday

periods, creates conditions hazardous to

navigation and causes vessels carrying

law enforcement and emergency

medical personnel to be unable to

access the area. This RNA will establish

an access lane to enhance navigation

safety and to permit law enforcement

and emergency response officials to

reach all areas of Copper Canyon and

provide services.

DATES: Effective August 17, 1998.

FOR FURTHER INFORMATION CONTACT:

Petty Officer Greg Nelson, U.S. Coast

Guard Marine Safety Office; telephone

number (619) 683–6492.

SUPPLEMENTARY INFORMATION:

Regulatory History

On April 2, 1998, the Coast Guard

published a notice of proposed

rulemaking (NPRM) for this regulation

in the Federal Register (63 FR 16181–

16182). The comment period ended

June 1, 1998. The Coast Guard received

no comments on the proposal. A public

hearing was not requested and no

hearing was held.

Discussion of Rule

In the past, emergency medical and

law enforcement personnel have had

difficulty getting through the severe

congestion of recreational boats in

Copper Canyon. This hazardous

condition has become a major public

safety concern, particularly during

holidays and other times of heavy

congestion. This RNA will effectively

provide an emergency access lane for

law enforcement and other emergency

services officials. This land will

significantly enhance public safety by

allowing quicker emergency response

time.

Vessels using Copper Canyon, other

than designated patrol vessels, are

prohibited from anchoring, mooring,

loitering in, or otherwise impeding the

transit of any other vessel within the

emergency access lane. These nonpatrol vessels shall expeditiously and

continuously transit the land via the

most direct route consistent with

navigational safety. At times of heavy

congestion, however, designated by

periodic Coast Guard Broadcast Notices

to Mariners on VHF–FM Channel 16,

the emergency access land will be

closed to all traffic other than

designated patrol vessels, and no entry

will be permitted by any recreational or

commercial vessel except with the

express permission of the Captain of the

Port or his designated representative.

The geographic description of the

emergency access land constituting this

RNA is as follows: beginning at the

approximate center of the mouth of

Copper Canyon and drawing a line

down the approximate center of the

canyon, extending shoreward to the end

of the navigable waters of the canyon,

and comprising a semi-rectangular area

extending 30 feet on each side of the

line, for a total semi-rectangular width

of 60 feet.

This line is more precisely described

as: beginning at latitude 34°25′42′′ N,

longitude 114°18′26′′ W, thence

southwesterly to latitude 34°25′38′′ N,

longitude 114°18′26′′ W, thence

southwesterly to latitude 34°25′37′′ N,

longitude 114°18′26′′ W, thence

southwesterly to latitude 34°25′34′′ N,

longitude 114°18′26′′ W, thence

southwesterly to latitude 34°25′33′′ N,

longitude 114°18′28′′ W, thence

southwesterly to latitude 34°25′29′′ N,

longitude 114°18′29′′ W, thence to the

end of the navigable waters of the

canyon.

Discussion of Comments

No comments were received.

Regulatory Evaluation

This regulation is not a significant

regulatory action under section 3(f) of

Executive Order 12866 and does not

require assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has been exempted from review

by the Office of Management and

Budget under that Order. It is not

significant under the regulatory policies

and procedures of the Department of

Transportation (DOT) (44 FR 11040,

February 26, 1979). The Coast Guard

expects the economic impact of this

regulation to be so minimal that a full

Regulatory Evaluation under paragraph

10(e) of the regulatory policies and

procedures of the Department of

Transportation is unnecessary, because

use of the Copper Canyon by both

recreational and commercial vessels

will not be precluded by this regulation;

nor will such use be more nominally

affected.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.), the Coast Guard

must consider whether this rule will

have a significant economic impact on

a substantial number of small entities.

‘‘Small entities’’ may include small

businesses and not-for-profit