Federal Register / Vol. 60, No. 72 / Friday, April 14, 1995 / Rules and Regulations 18995

The Internal Revenue Service has

announced that for the quarter

beginning April 1, 1995, the interest

charged on the underpayment of taxes

will be at a rate of 10 percent.

Accordingly, the PBGC is amending

appendix A to 29 CFR part 2610 and

appendix A to 29 CFR part 2622 to set

forth this rate for the April 1, 1995,

through June 30, 1995, quarter.

Under ERISA section

4006(a)(3)(E)(iii)(II), in determining a

single-employer plan’s unfunded vested

benefits for premium computation

purposes, plans must use an interest

rate equal to 80% of the annual yield on

30-year Treasury securities for the

month preceding the beginning of the

plan year for which premiums are being

paid. Under § 2610.23(b)(1) of the

premium regulation, this value is

determined by reference to 30-year

Treasury constant maturities as reported

in Federal Reserve Statistical Releases

G.13 and H.15. The PBGC publishes

these rates in appendix B to the

regulation.

The PBGC publishes these monthly

interest rates in appendix B on a

quarterly basis to coincide with the

publication of the late payment interest

rate set forth in appendix A. (The PBGC

publishes the appendix A rates every

quarter, regardless of whether the rate

has changed.) Unlike the appendix A

rate, which is determined prospectively,

the appendix B rate is not known until

a short time after the first of the month

for which it applies. Accordingly, the

PBGC is hereby amending appendix B to

part 2610 to add the vested benefits

valuation rates for plan years beginning

in February of 1995 through April of

1995.

The appendices to 29 CFR parts 2610

and 2622 do not prescribe the interest

rates under these regulations. Under

both regulations, the appendix A rates

are the rates determined under section

6601(a) of the Code. The interest rates

in appendix B to part 2610 are

prescribed by ERISA section

4006(a)(3)(E)(iii)(II) and § 2610.23(b)(1)

of the regulation. These appendices

merely collect and republish the interest

rates in a convenient place. Thus, the

interest rates in the appendices are

informational only. Accordingly, the

PBGC finds that notice of and public

comment on these amendments would

be unnecessary and contrary to the

public interest. For the above reasons,

the PBGC also believes that good cause

exists for making these amendments

effective immediately.

The PBGC has determined that none

of these actions is a ‘‘significant

regulatory action’’ under the criteria set

forth in Executive Order 12866, because

they will not have an annual effect on

the economy of $100 million or more or

adversely affect in a material way the

economy, a sector of the economy,

productivity, competition, jobs, the

environment, public health or safety, or

State, local, or tribal governments or

communities; create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency; materially alter the

budgetary impact of entitlements,

grants, user fees, or loan programs or the

rights and obligations of recipients

thereof; or raise novel legal or policy

issues arising out of legal mandates, the

President’s priorities, or the principles

set forth in Executive Order 12866.

Because no general notice of proposed

rulemaking is required for these

amendments, the Regulatory Flexibility

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

601(2).

List of Subjects

29 CFR Part 2610

Employee benefit plans, Penalties,

Pension insurance, Pensions, and

Reporting and recordkeeping

requirements.

29 CFR Part 2622

Business and industry, Employee

benefit plans, Pension insurance,

Pensions, Reporting and recordkeeping

requirements, and Small businesses.

In consideration of the foregoing, part

2610 and part 2622 of chapter XXVI of

title 29, Code of Federal Regulations, are

hereby amended as follows:

PART 2610—PAYMENT OF PREMIUMS

1. The authority citation for part 2610

continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1306,

1307.

2. Appendix A to part 2610 is

amended by adding a new entry for the

quarter beginning April 1, 1995, to read

as follows. The introductory text is

republished for the convenience of the

reader and remains unchanged.

Appendix A to Part 2610—Late

Payment Interest Rates

The following table lists the late

payment interest rates under § 2610.7(a)

for the specified time periods:

From Through Interest rate

(percent)

* * * * *

April 1, 1995 . June 30, 1995 10

3. Appendix B to part 2610 is

amended by adding to the table of

interest rates new entries for premium

payment years beginning in February of

1995 through April of 1995, to read as

follows. The introductory text is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 2610—Interest

Rates for Valuing Vested Benefits

The following table lists the required

interest rates to be used in valuing a

plan’s vested benefits under

§ 2610.23(b) and in calculating a plan’s

adjusted vested benefits under

§ 2610.23(c)(1):

For premium payment years

beginning in—

Required interest rate 1

* * * * *

February 1995 .......................... 6.28

March 1995 ............................... 6.09

April 1995 ................................. 5.96

1The required interest rate listed above is

equal to 80% of the annual yield for 30-year

Treasury constant maturities, as reported in

Federal Reserve Statistical Release G.13 and

H.15 for the calendar month preceding the calendar month in which the premium payment

year begins.

PART 2622—EMPLOYER LIABILITY

FOR WITHDRAWALS FROM AND

TERMINATIONS OF SINGLEEMPLOYER PLANS

4. The authority citation for part 2622

continues to read as follows:

Authority: 29 U.S.C. 1302(b)(3), 1362–

1364, 1367–68.

5. Appendix A to part 2622 is

amended by adding a new entry for the

quarter beginning April 1, 1995, to read

as follows. The introductory text is

republished for the convenience of the

reader and remains unchanged.

Appendix A to Part 2622—Late

Payment and Overpayment Interest

Rates

The following table lists the late

payment and overpayment interest rates

under § 2622.7 for the specified time

periods:

From Through Interest rate

(percent)

* * * * *

April 1, 1995 . June 30, 1995 10

Issued in Washington, DC, this 11th day of

April 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–9237 Filed 4–13–95; 8:45 am]

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