54474 Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Rules and Regulations 

Issued in Kansas City, Missouri, on 

September 8, 2005. 

David R. Showers, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 05–18199 Filed 9–14–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–22413; Directorate 

Identifier 2005–NM–167–AD; Amendment 

39–14271; AD 2005–19–06] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 747–100, 747–100B, 747–100B 

SUD, 747–200B, 747–200C, 747–200F, 

747–300, 747SR, and 747SP Series 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Boeing Model 747–100, 747–100B, 747–

100B SUD, 747–200B, 747–200C, 747–

200F, 747–300, 747SR, and 747SP series 

airplanes. This AD requires repetitive 

detailed and ultrasonic inspections of 

the thrust links of the rear engine 

mounts for any crack or fracture and 

corrective actions if necessary. This AD 

results from the finding of a fractured 

forward lug of the rear engine mount 

thrust link on the number one strut. We 

are issuing this AD to detect and correct 

cracked or fractured thrust links that 

could lead to the loss of the load path 

for the rear engine mount bulkhead and 

damage to other primary engine mount 

structure, which could result in the inflight separation of the engine from the 

airplane and consequent loss of control 

of the airplane. 

DATES: This AD becomes effective 

September 30, 2005. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of September 30, 2005. 

We must receive comments on this 

AD by November 14, 2005. 

ADDRESSES: Use one of the following 

addresses to submit comments on this 

AD. 

• DOT Docket Web site: Go to 

http://dms.dot.gov and follow the 

instructions for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov 

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street SW., Nassif Building, 

room PL–401, Washington, DC 20590. 

• Fax: (202) 493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Contact Boeing Commercial 

Airplanes, P.O. Box 3707, Seattle, 

Washington 98124–2207, for service 

information identified in this AD. 

FOR FURTHER INFORMATION CONTACT: Ivan 

Li, Aerospace Engineer, Airframe 

Branch, ANM–120S, FAA, Seattle 

Aircraft Certification Office, 1601 Lind 

Avenue, SW., Renton, Washington 

98055–4056; telephone (425) 917–6437; 

fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We have received a report indicating 

that one operator found a fractured 

forward lug of the rear engine mount 

thrust link on the number one strut. The 

fractured thrust link was found on a 

Model 747–200B series airplane 

equipped with Pratt & Whitney JT9D–

7Q engines. The fractured thrust link 

had accumulated 91,173 total flight 

hours (and 27,931 total flight cycles). 

The fracture occurred about 65,000 

flight hours (and 14,000 flight cycles) 

after the thrust link had been 

overhauled to replace a worn spherical 

bearing. The same operator also 

reported finding a cracked thrust link on 

the number one strut of a Model 747–

200B series airplane equipped with 

Pratt & Whitney JT9D–7Q engines. That 

cracked thrust link had accumulated 

about 66,000 total flight hours (and 

about 19,000 total flight cycles) and 

about 55,700 flight hours (and about 

11,100 flight cycles) since it was last 

overhauled. Metallurgical analysis by 

the airplane manufacturer indicates that 

cracking of the high-strength steel thrust 

links resulted from fatigue. In both of 

the reported incidents, cracking could 

have occurred before the overhaul. 

Continued airplane operation with a 

cracked or fractured thrust link could 

lead to the loss of the load path for the 

rear engine mount bulkhead and 

damage to other primary engine mount 

structure. This condition, if not detected 

and corrected, could result in the inflight separation of the engine from the 

airplane and consequent loss of control 

of the airplane. 

The rear engine mount thrust links on 

the Model 747–200B series airplanes 

equipped with Pratt & Whitney JT9D–

7Q engines are similar to those on the 

affected Model 747–100, 747–100B, 

747–100B SUD, 747–200C, 747–200F, 

747–300, 747SR, and 747SP series 

airplanes, equipped with Pratt & 

Whitney JT9D–3 and –7 series engines, 

except JT9D–70 engines. Therefore, all 

of these models may be subject to the 

same unsafe condition. 

Other Related Rulemaking 

On July 19, 2001, we issued AD 2001–

15–15, amendment 39–12349 (66 FR 

39425, dated July 31, 2001), applicable 

to certain Boeing Model 747 airplanes 

powered by Pratt & Whitney JT9D–7 

series engines. That AD requires 

detailed visual inspections of the lugs 

on the bulkhead fitting of the rear 

engine mounts, and corrective action if 

necessary. That AD also requires 

ultrasonic inspections and, for certain 

airplanes, rework of the bulkhead fitting 

of the rear engine mounts. Reworking 

the lugs on the bulkhead fitting of the 

rear engine mounts (in accordance with 

‘‘Part 5—Rework’’ of the 

Accomplishment Instructions of Boeing 

Service Bulletin 747–54A2200, Revision 

1, dated February 15, 2001) as specified 

in paragraphs (b)(2), (e), and (f) of AD 

2001–15–15 is acceptable for 

compliance with ‘‘Part 3—Rear Engine 

Mount Bulkhead Inspection and Lug 

Overhaul and Upper Fitting Overhaul 

and Bolt Replacement’’ of the 

Accomplishment Instructions of Boeing 

Alert Service Bulletin 747–71A2309, 

dated August 18, 2005 (which is 

referenced as the appropriate source of 

service information for doing the actions 

required by this AD). 

On March 24, 2004, we issued AD 

2004–07–22, amendment 39–13566 (69 

FR 18250, April 7, 2004), applicable to 

all Boeing Model 747 airplanes. (A 

correction to AD 2004–07–22 was 

published in the Federal Register on 

May 3, 2004 (69 FR 24063).) That AD 

requires that the FAA-approved 

maintenance inspection program be 

revised to include inspections that will 

give no less than the required damage 

tolerance rating for each structural 

significant item (SSI), and repair of 

cracked structure. Accomplishing the 

inspections and repetitive overhaul or 

replacement specified in paragraphs (g) 

and (j) of this AD are approved as an 

alternative method of compliance to 

paragraphs (c) and (d) of AD 2004–07–

22 for the inspections of SSI S–2, for the 

thrust links only, of the Boeing 

Supplemental Structural Inspection 

Document D6–35022, Revision G, dated 

December 2000. 

Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Rules and Regulations 54475 

Relevant Service Information 

We have reviewed Boeing Alert 

Service Bulletin 747–71A2309, dated 

August 18, 2005. The service bulletin 

describes procedures for doing detailed 

and ultrasonic inspections of the thrust 

link lugs of the rear engine mount of 

struts 1, 2, 3, and 4 for any crack or 

fracture and other specified and 

corrective actions as applicable. 

If a thrust link is not cracked or 

fractured, the service bulletin specifies 

repeating the detailed and ultrasonic 

inspections and doing other specified 

actions. The other specified actions are 

to repetitively replace the thrust link 

with a new or overhauled thrust link, 

which ends the repetitive inspections of 

the thrust link lugs. 

If a thrust link is cracked, the 

corrective action is to repetitively 

replace the cracked thrust link with a 

new or overhauled thrust link. If the 

thrust link is fractured, the corrective 

actions include the following: 

• Repetitively replacing the fractured 

thrust link with a new or overhauled 

thrust link (Part 2 of the 

Accomplishment Instructions of the 

service bulletin). 

• Inspecting the upper fitting 

assembly of the rear engine mount for 

cracks and material deformation and 

repairing if necessary; doing a detailed 

inspection of the bulkhead assembly of 

the rear engine mount for cracks, 

fracture, and material deformation and 

contacting the manufacturer for 

additional instructions if necessary; 

overhauling the lugs of the rear engine 

mount bulkhead and upper fitting 

assembly and contacting the 

manufacturer for additional instructions 

if necessary; and replacing the bolts that 

attach the upper fitting to the rear 

engine mount bulkhead with new bolts 

(Part 3 of the Accomplishment 

Instructions of the service bulletin). 

• Doing the inspection of the engine 

nacelle for damage, as specified in 

Chapter 05–51–06 of the Boeing 747–

100/–200/–300 Airplane Maintenance 

Manual, and contacting the 

manufacturer for additional instructions 

if necessary (Part 4 of the 

Accomplishment Instructions of the 

service bulletin). 

• Doing a detailed inspection of the 

forward engine mount for material 

deformation and contacting the 

manufacturer for additional instructions 

if necessary (Part 5 of the 

Accomplishment Instructions of the 

service bulletin). 

FAA’s Determination and Requirements 

of This AD 

The unsafe condition described 

previously is likely to exist or develop 

on other airplanes of the same type 

design. For this reason, we are issuing 

this AD to detect and correct cracked or 

fractured thrust links of the rear engine 

mount that could lead to the loss of the 

load path for the rear engine mount 

bulkhead and damage to other primary 

engine mount structure, which could 

result in the in-flight separation of the 

engine from the airplane and 

consequent loss of control of the 

airplane. This AD requires repetitive 

detailed and ultrasonic inspections of 

the thrust link lugs of the rear engine 

mount of struts 1, 2, 3, and 4 for any 

crack or fracture and corrective actions 

as applicable in accordance with the 

service information described above, 

except as discussed under ‘‘Differences 

Between the AD and Service Bulletin.’’

Differences Between the AD and 

Service Bulletin 

The service bulletin specifies to 

contact the manufacturer for 

instructions on how to repair certain 

conditions, but this AD requires 

repairing those conditions in one of the 

following ways: 

• Using a method that we approve; or 

• Using data that meet the 

certification basis of the airplane, and 

that have been approved by an 

Authorized Representative for the 

Boeing Commercial Airplanes 

Delegation Option Authorization 

Organization whom we have authorized 

to make those findings. 

The service bulletin specifies doing 

corrective actions if a fractured thrust 

link is found during any required 

inspections, but does not specify what 

action to take if one is found during any 

replacement or overhaul of the thrust 

link. This AD requires accomplishing 

those same corrective actions before 

further flight, whether the fractured 

thrust link is found during an 

inspection, replacement, or overhaul. 

(Those corrective actions are defined in 

the ‘‘Relevant Service Information’’

section of this AD.) This difference has 

been coordinated with the 

manufacturer. 

Although the service bulletin 

recommends repetitively replacing the 

thrust links of the rear engine mounts 

with new or overhauled thrust links at 

an initial threshold of within 36 months 

after issuance of the service bulletin, 

this AD is not mandating those 

replacements in this rulemaking action. 

Instead, we have included those 

replacements as an optional terminating 

action in this AD. 

Interim Action 

This is considered to be interim 

action. The FAA is currently 

considering requiring the repetitive 

replacement or overhaul of the thrust 

links of the rear engine mounts, which 

will constitute terminating action for the 

repetitive inspections required by this 

AD action. However, the planned 

compliance time for the other specified 

actions is sufficiently long so that notice 

and opportunity for prior public 

comment will be practicable. 

FAA’s Determination of the Effective 

Date 

Since an unsafe condition exists that 

requires the immediate adoption of this 

AD, we have found that notice and 

opportunity for public comment before 

issuing this AD are impracticable, and 

that good cause exists to make this AD 

effective in less than 30 days. 

Comments Invited 

This AD is a final rule that involves 

requirements that affect flight safety and 

was not preceded by notice and an 

opportunity for public comment; 

however, we invite you to submit any 

relevant written data, views, or 

arguments regarding this AD. Send your 

comments to an address listed in the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2005–22413; Directorate Identifier 

2005–NM–167–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of the AD that might suggest a 

need to modify it. 

We will post all comments we 

receive, without change, to http:// 

dms.dot.gov, including any personal 

information you provide. We will also 

post a report summarizing each 

substantive verbal contact with FAA 

personnel concerning this AD. Using the 

search function of that Web site, anyone 

can find and read the comments in any 

of our dockets, including the name of 

the individual who sent the comment 

(or signed the comment on behalf of an 

association, business, labor union, etc.). 

You may review the DOT’s complete 

Privacy Act Statement in the Federal 

Register published on April 11, 2000 

(65 FR 19477–78), or you may visit 

http://dms.dot.gov. 

Examining the Dockets 

You may examine the AD docket on 

the Internet at http://dms.dot.gov, or in 

person at the Docket Management 

Facility office between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The Docket 

Management Facility office (telephone 

(800) 647–5227) is located on the plaza 

level of the Nassif Building at the DOT 

street address stated in the ADDRESSES

section. Comments will be available in 

54476 Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Rules and Regulations 

the AD docket shortly after the Docket 

Management System receives them. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in subtitle VII, 

part A, subpart III, section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We have determined that this AD will 

not have federalism implications under 

Executive Order 13132. This AD will 

not have a substantial direct effect on 

the States, on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that the regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

See the ADDRESSES section for a location 

to examine the regulatory evaluation. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

■ Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The Federal Aviation 

Administration (FAA) amends § 39.13 

by adding the following new 

airworthiness directive (AD): 

2005–19–06 Boeing: Amendment 39–14271. 

Docket No. FAA–2005–22413; 

Directorate Identifier 2005–NM–167–AD. 

Effective Date 

(a) This AD becomes effective September 

30, 2005. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Boeing Model 747–

100, 747–100B, 747–100B SUD, 747–200B, 

747–200C, 747–200F, 747–300, 747SR, and 

747SP series airplanes, certificated in any 

category; equipped with Pratt & Whitney 

JT9D–3 and –7 series engines, except JT9D–

70 engines; as identified in Boeing Alert 

Service Bulletin 747–71A2309, dated August 

18, 2005. 

Unsafe Condition 

(d) This AD results from the finding of a 

fractured forward lug of the rear engine 

mount thrust link on the number one strut. 

We are issuing this AD to detect and correct 

cracked or fractured thrust links that could 

lead to the loss of the load path for the rear 

engine mount bulkhead and damage to other 

primary engine mount structure, which could 

result in the in-flight separation of the engine 

from the airplane and consequent loss of 

control of the airplane. 

Compliance 

(e) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Service Bulletin References 

(f) The term ‘‘service bulletin,’’ as used in 

this AD, means the Accomplishment 

Instructions of Boeing Alert Service Bulletin 

747–71A2309, dated August 18, 2005. 

Repetitive Inspections of Thrust Links 

(g) Within 90 days after the effective date 

of this AD, do a detailed inspection and 

ultrasonic inspection of thrust link lugs 

having part number (P/N) 65B90360–1 or –4 

of the rear engine mount of struts 1, 2, 3, and 

4 for any crack or fracture, in accordance 

with Part 1 of the service bulletin. If the 

thrust link is not found cracked or fractured: 

Repeat the inspections thereafter at intervals 

not to exceed 1,200 flight cycles or 18 

months, whichever is first, until the optional 

repetitive replacement or overhaul of the 

thrust link as specified in paragraph (j) of this 

AD is accomplished. Accomplishing the 

repetitive replacement or overhaul of a thrust 

link specified in paragraph (h) or (j) of this 

AD terminates the repetitive inspections for 

that thrust link only. 

Corrective Actions 

(h) If a cracked thrust link is found during 

any inspection required by paragraph (g) of 

this AD or during any replacement or 

overhaul done in accordance with the service 

bulletin: Before further flight, do the actions 

specified in paragraph (h)(1) of this AD. If a 

fractured thrust link is found during any 

inspection required by paragraph (g) of this 

AD or during any replacement or overhaul 

done in accordance with the service bulletin: 

Before further flight, do the actions specified 

in paragraphs (h)(1) and (h)(2) of this AD. 

(1) Replace the cracked thrust link with a 

new or overhauled thrust link in accordance 

with Part 2 of the service bulletin; except as 

provided by paragraph (i) of this AD. Repeat 

the replacement at the applicable compliance 

time specified in paragraph (h)(1)(i) or 

(h)(2)(ii) of this AD. 

(i) For replacement with a thrust link 

assembly having P/N 65B90360–1 or –4: 

Thereafter at intervals not to exceed 6,000 

flight cycles. 

(ii) For replacement with a thrust link 

assembly having P/N 65B90360–7: Thereafter 

at intervals not to exceed 12,000 flight cycles. 

(2) Do the corrective actions in accordance 

with Parts 3, 4, and 5 of the service bulletin; 

except as provided by paragraph (i) of this 

AD. 

(i) Where the service bulletin specifies to 

contact Boeing for appropriate action, do the 

corrective action using a method approved in 

accordance with paragraph (l) of this AD. 

Optional Repetitive Replacement or 

Overhaul of a Thrust Link 

(j) For a thrust link that is not found 

cracked or fractured during the inspections 

required by paragraph (g) of this AD: 

Repetitive replacement of the thrust link with 

a new or overhauled thrust link at the 

applicable compliance time specified in 

paragraph (j)(1) or (j)(2) of this AD, in 

accordance with Part 2 of the service 

bulletin, terminates the repetitive inspections 

required by paragraph (g) of this AD for that 

thrust link only. If a cracked or fractured 

thrust link is found during any replacement 

or overhaul done in accordance with the 

service bulletin: Before further flight, do the 

applicable corrective actions specified in 

paragraph (h) of this AD at the applicable 

compliance time specified in that paragraph. 

(1) For a thrust link assembly having P/N 

65B90360–1 or –4: Within 36 months after 

the effective date of this AD. Thereafter at 

intervals not to exceed 6,000 flight cycles. 

(2) For a thrust link assembly having P/N 

65B90360–7: Within 12,000 flight cycles after 

the new or overhauled thrust link has been 

installed. Thereafter at intervals not to 

exceed 12,000 flight cycles. 

Credit for Certain Corrective Actions 

(k) Reworking the lugs on the bulkhead 

fitting of the rear engine mount as specified 

in paragraphs (b)(2), (e), and (f) of AD 2001–

15–15, amendment 39–12349, is acceptable 

for compliance with accomplishing the 

corrective action specified in ‘‘Part 3—Rear 

Engine Mount Bulkhead Inspection and Lug 

Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Rules and Regulations 54477 

Overhaul and Upper Fitting Overhaul and 

Bolt Replacement’’ of the service bulletin. 

Alternative Methods of Compliance 

(AMOCs) 

(l)(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested in accordance with the procedures 

found in 14 CFR 39.19. 

(2) An AMOC that provides an acceptable 

level of safety may be used for any repair 

required by this AD, if it is approved by an 

Authorized Representative for the Boeing 

Commercial Airplanes Delegation Option 

Authorization Organization who has been 

authorized by the Manager, Seattle ACO, to 

make those findings. For a repair method to 

be approved, the repair must meet the 

certification basis of the airplane, and the 

approval must specifically refer to this AD. 

(3) The actions identified in paragraphs (g) 

and (j) of this AD are approved as an AMOC 

to paragraphs (c) and (d) of AD 2004–07–22, 

amendment 39–13566, for the inspections of 

structural significant item S–2, for the thrust 

links only, of Boeing Supplemental 

Structural Inspection Document D6–35022, 

Revision G, dated December 2000. All 

provisions of AD 2004–07–22 that are not 

specifically referenced in this paragraph, 

including the initial inspection threshold 

required by paragraph (d) of AD 2004–07–22, 

remain fully applicable and must be 

complied with. 

Material Incorporated by Reference 

(m) You must use Boeing Alert Service 

Bulletin 747–71A2309, dated August 18, 

2005, to perform the actions that are required 

by this AD, unless the AD specifies 

otherwise. The Director of the Federal 

Register approved the incorporation by 

reference of this document in accordance 

with 5 U.S.C. 552(a) and 1 CFR part 51. 

Contact Boeing Commercial Airplanes, P.O. 

Box 3707, Seattle, Washington 98124–2207, 

for a copy of this service information. You 

may review copies at the Docket Management 

Facility, U.S. Department of Transportation, 

400 Seventh Street SW., room PL–401, Nassif 

Building, Washington, DC; on the Internet at 

http://dms.dot.gov; or at the National 

Archives and Records Administration 

(NARA). For information on the availability 

of this material at the NARA, call (202) 741–

6030, or go to http://www.archives.gov/ 

federal_register/code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Renton, Washington, on 

September 6, 2005. 

Kalene C. Yanamura, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 05–18212 Filed 9–14–05; 8:45 am] 

BILLING CODE 4910–13–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets 

in Single-Employer Plans; Interest 

Assumptions for Valuing and Paying 

Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation’s regulations on Benefits 

Payable in Terminated Single-Employer 

Plans and Allocation of Assets in 

Single-Employer Plans prescribe interest 

assumptions for valuing and paying 

benefits under terminating singleemployer plans. This final rule amends 

the regulations to adopt interest 

assumptions for plans with valuation 

dates in October 2005. Interest 

assumptions are also published on the 

PBGC’s Web site (http://www.pbgc.gov). 

DATES: Effective October 1, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Attorney, Legislative 

and Regulatory Department, Pension 

Benefit Guaranty Corporation, 1200 K 

Street, NW., Washington, DC 20005, 

202–326–4024. (TTY/TDD users may 

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 regulations prescribe actuarial 

assumptions—including interest 

assumptions—for valuing and paying 

plan benefits of terminating singleemployer plans covered by title IV of 

the Employee Retirement Income 

Security Act of 1974. The interest 

assumptions are intended to reflect 

current conditions in the financial and 

annuity markets. 

Three sets of interest assumptions are 

prescribed: (1) A set for the valuation of 

benefits for allocation purposes under 

section 4044 (found in appendix B to 

part 4044), (2) a set for the PBGC to use 

to determine whether a benefit is 

payable as a lump sum and to determine 

lump-sum amounts to be paid by the 

PBGC (found in appendix B to part 

4022), and (3) a set for private-sector 

pension practitioners to refer to if they 

wish to use lump-sum interest rates 

determined using the PBGC’s historical 

methodology (found in appendix C to 

part 4022). 

Accordingly, this amendment (1) 

Adds to appendix B to part 4044 the 

interest assumptions for valuing benefits 

for allocation purposes in plans with 

valuation dates during October 2005, (2) 

adds to appendix B to part 4022 the 

interest assumptions for the PBGC to 

use for its own lump-sum payments in 

plans with valuation dates during 

October 2005, and (3) adds to appendix 

C to part 4022 the interest assumptions 

for private-sector pension practitioners 

to refer to if they wish to use lump-sum 

interest rates determined using the 

PBGC’s historical methodology for 

valuation dates during October 2005. 

For valuation of benefits for allocation 

purposes, the interest assumptions that 

the PBGC will use (set forth in appendix 

B to part 4044) will be 3.50 percent for 

the first 20 years following the valuation 

date and 4.75 percent thereafter. These 

interest assumptions represent a 

decrease (from those in effect for August 

2005) of 0.10 percent for the first 20 

years following the valuation date and 

are otherwise unchanged. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in appendix B to 

part 4022) will be 2.25 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. These interest assumptions 

represent a decrease (from those in 

effect for August 2005) of 0.25 percent 

for the period during which a benefit is 

in pay status and are otherwise 

unchanged. 

For private-sector payments, the 

interest assumptions (set forth in 

appendix C to part 4022) will be the 

same as those used by the PBGC for 

determining and paying lump sums (set 

forth in appendix B to part 4022). 

The PBGC has determined that notice 

and public comment on this amendment 

are impracticable and contrary to the 

public interest. This finding is based on 

the need to determine and issue new 

interest assumptions promptly so that 

the assumptions can reflect, as 

accurately as possible, current market 

conditions. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during October 2005, 

the PBGC finds that good cause exists 

for making the assumptions set forth in 

this amendment effective less than 30 

days after publication. 

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 

amendment, the Regulatory Flexibility 

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

601(2).