Federal Register / Vol. 70, No. 220 / Wednesday, November 16, 2005 / Notices 69613 

Comments are particularly invited on: 

Whether this collection of information 

is necessary for the proper performance 

of functions of the Office of Personnel 

Management and whether it will have 

practical utility; whether our estimate of 

the public burden of this collection of 

information is accurate and based on 

valid assumptions and methodology; 

and ways in which we can minimize the 

burden of the collection of information 

on respondents, through the use of 

appropriate technological collection 

techniques or other forms of information 

technology. 

For copies of this proposal, contact 

Mary Beth Smith-Toomey by telephone 

(202) 606–8358, or by e-mail 

MaryBeth.Smith-Toomey@opm.gov. 

DATES: Comments on this proposal 

should be received within 60 calendar 

days from the date of this publication. 

ADDRESSES: Send or deliver comments 

to: Daniel Fusco, Manager, Recruiting, 

Examining and Assessment Group, U.S. 

Office of Personnel Management, 1900 E 

Street, NW., Room 6500, Washington, 

DC 20415. 

U.S. Office of Personnel Management. 

Linda M. Springer, 

Director. 

[FR Doc. 05–22741 Filed 11–15–05; 8:45 am] 

BILLING CODE 6325–39–P 

RAILROAD RETIREMENT BOARD 

2006 Railroad Experience Rating 

Proclamations, Monthly Compensation 

Base and Other Determinations 

AGENCY: Railroad Retirement Board. 

ACTION: Notice. 

SUMMARY: Pursuant to section 8(c)(2) 

and section 12(r)(3) of the Railroad 

Unemployment Insurance Act (Act) (45 

U.S.C. 358(c)(2) and 45 U.S.C. 362(r)(3), 

respectively), the Board gives notice of 

the following: 

1. The balance to the credit of the 

Railroad Unemployment Insurance 

(RUI) Account, as of June 30, 2005, is 

$113,140,562.89; 

2. The September 30, 2005, balance of 

any new loans to the RUI Account, 

including accrued interest, is zero; 

3. The system compensation base is 

$3,174,496,243.69 as of June 30, 2005; 

4. The cumulative system unallocated 

charge balance is ($269,505,519.27) as of 

June 30, 2005; 

5. The pooled credit ratio for calendar 

year 2006 is zero; 

6. The pooled charged ratio for 

calendar year 2006 is zero; 

7. The surcharge rate for calendar year 

2006 is 1.5 percent; 

8. The monthly compensation base 

under section 1(i) of the Act is $1,195 

for months in calendar year 2006; 

9. The amount described in section 

1(k) of the Act as ‘‘2.5 times the monthly 

compensation base’’ is $2,987.50 for 

base year (calendar year) 2006; 

10. The amount described in section 

2(c) of the Act as ‘‘an amount that bears 

the same ratio to $775 as the monthly 

compensation base for that year as 

computed under section 1(i) of this Act 

bears to $600’’ is $1,544 for months in 

calendar year 2006; 

11. The amount described in section 

3 of the Act as ‘‘2.5 times the monthly 

compensation base’’ is $2,987.50 for 

base year (calendar year) 2006; 

12. The amount described in section 

4(a–2)(i)(A) of the Act as ‘‘2.5 times the 

monthly compensation base’’ is 

$2,987.50 with respect to 

disqualifications ending in calendar 

year 2006; 

13. The maximum daily benefit rate 

under section 2(a)(3) of the Act is $57 

with respect to days of unemployment 

and days of sickness in registration 

periods beginning after June 30, 2006. 

DATES: The balance in notice (1) and the 

determinations made in notices (3) 

through (7) are based on data as of June 

30, 2005. The balance in notice (2) is 

based on data as of September 30, 2005. 

The determinations made in notices (5) 

through (7) apply to the calculation, 

under section 8(a)(1)(C) of the Act, of 

employer contribution rates for 2006. 

The determinations made in notices (8) 

through (12) are effective January 1, 

2006. The determination made in notice 

(13) is effective for registration periods 

beginning after June 30, 2006. 

ADDRESSES: Secretary to the Board, 

Railroad Retirement Board, 844 Rush 

Street, Chicago, Illinois 60611–2092. 

FOR FURTHER INFORMATION CONTACT: 

Marla L. Huddleston, Bureau of the 

Actuary, Railroad Retirement Board, 844 

Rush Street, Chicago, Illinois 60611–

2092, telephone (312) 751–4779. 

SUPPLEMENTARY INFORMATION: The RRB 

is required by section 8(c)(1) of the 

Railroad Unemployment Insurance Act 

(Act) (45 U.S.C. 358(c)(1)) as amended 

by Public Law 100–647, to proclaim by 

October 15 of each year certain systemwide factors used in calculating 

experience-based employer contribution 

rates for the following year. The RRB is 

further required by section 8(c)(2) of the 

Act (45 U.S.C. 358(c)(2)) to publish the 

amounts so determined and proclaimed. 

The RRB is required by section 12(r)(3) 

of the Act (45 U.S.C. 362(r)(3)) to 

publish by December 11, 2005, the 

computation of the calendar year 2006 

monthly compensation base (section 1(i) 

of the Act) and amounts described in 

sections 1(k), 2(c), 3 and 4(a–2)(i)(A) of 

the Act which are related to changes in 

the monthly compensation base. Also, 

the RRB is required to publish, by June 

11, 2006, the maximum daily benefit 

rate under section 2(a)(3) of the Act for 

days of unemployment and days of 

sickness in registration periods 

beginning after June 30, 2006. 

Surcharge Rate 

A surcharge is added in the 

calculation of each employer’s 

contribution rate, subject to the 

applicable maximum rate, for a calendar 

year whenever the balance to the credit 

of the RUI Account on the preceding 

June 30 is less than the greater of $100 

million or the amount that bears the 

same ratio to $100 million as the system 

compensation base for that June 30 

bears to the system compensation base 

as of June 30, 1991. If the RUI Account 

balance is less than $100 million (as 

indexed), but at least $50 million (as 

indexed), the surcharge will be 1.5 

percent. If the RUI Account balance is 

less than $50 million (as indexed), but 

greater than zero, the surcharge will be 

2.5 percent. The maximum surcharge of 

3.5 percent applies if the RUI Account 

balance is less than zero. 

The system compensation base as of 

June 30, 1991 was $2,763,287,237.04. 

The system compensation base for June 

30, 2005 was $3,174,496,243.69. The 

ratio of $3,174,496,243.69 to 

$2,763,287,237.04 is 1.14881153. 

Multiplying 1.14881153 by $100 million 

yields $114,881,153. Multiplying $50 

million by 1.14881153 produces 

$57,440,577. The Account balance on 

June 30, 2005, was $113,140,562.89. 

Accordingly, the surcharge rate for 

calendar year 2006 is 1.5 percent. 

Monthly Compensation Base 

For years after 1988, section 1(i) of the 

Act contains a formula for determining 

the monthly compensation base. Under 

the prescribed formula, the monthly 

compensation base increases by 

approximately two-thirds of the 

cumulative growth in average national 

wages since 1984. The monthly 

compensation base for months in 

calendar year 2006 shall be equal to the 

greater of (a) $600 or (b) $600 [1 + 

{(A¥37,800)/56,700}], where A equals 

the amount of the applicable base with 

respect to tier 1 taxes for 2006 under 

section 3231(e)(2) of the Internal 

Revenue Code of 1986. Section 1(i) 

further provides that if the amount so 

determined is not a multiple of $5, it 

shall be rounded to the nearest multiple 

of $5. 

69614 Federal Register / Vol. 70, No. 220 / Wednesday, November 16, 2005 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

The calendar year 2006 tier 1 tax base 

is $94,200. Subtracting $37,800 from 

$94,200 produces $56,400. Dividing 

$56,400 by $56,700 yields a ratio of 

0.99470899. Adding one gives 

1.99470899. Multiplying $600 by the 

amount 1.99470899 produces the 

amount of $1,196.83, which must then 

be rounded to $1,195. Accordingly, the 

monthly compensation base is 

determined to be $1,195 for months in 

calendar year 2006. 

Amounts Related to Changes in 

Monthly Compensation Base 

For years after 1988, sections 1(k), 

2(c), 3 and 4(a–2)(i)(A) of the Act 

contain formulas for determining 

amounts related to the monthly 

compensation base. 

Under section 1(k), remuneration 

earned from employment covered under 

the Act cannot be considered subsidiary 

remuneration if the employee’s base 

year compensation is less than 2.5 times 

the monthly compensation base for 

months in such base year. Multiplying 

2.5 by the calendar year 2006 monthly 

compensation base of $1,195 produces 

$2,987.50. Accordingly, the amount 

determined under section 1(k) is 

$2,987.50 for calendar year 2006. 

Under section 2(c), the maximum 

amount of normal benefits paid for days 

of unemployment within a benefit year 

and the maximum amount of normal 

benefits paid for days of sickness within 

a benefit year shall not exceed an 

employee’s compensation in the base 

year. In determining an employee’s base 

year compensation, any money 

remuneration in a month not in excess 

of an amount that bears the same ratio 

to $775 as the monthly compensation 

base for that year bears to $600 shall be 

taken into account. 

The calendar year 2006 monthly 

compensation base is $1,195. The ratio 

of $1,195 to $600 is 1.99166667. 

Multiplying 1.99166667 by $775 

produces $1,544. Accordingly, the 

amount determined under section 2(c) is 

$1,544 for months in calendar year 

2006. 

Under section 3, an employee shall be 

a ‘‘qualified employee’’ if his/her base 

year compensation is not less than 2.5 

times the monthly compensation base 

for months in such base year. 

Multiplying 2.5 by the calendar year 

2006 monthly compensation base of 

$1,195 produces $2,987.50. 

Accordingly, the amount determined 

under section 3 is $2,987.50 for calendar 

year 2006. 

Under section 4(a–2)(i)(A), an 

employee who leaves work voluntarily 

without good cause is disqualified from 

receiving unemployment benefits until 

he has been paid compensation of not 

less than 2.5 times the monthly 

compensation base for months in the 

calendar year in which the 

disqualification ends. Multiplying 2.5 

by the calendar year 2006 monthly 

compensation base of $1,195 produces 

$2,987.50. Accordingly, the amount 

determined under section 4(a–2)(i)(A) is 

$2,987.50 for calendar year 2006. 

Maximum Daily Benefit Rate 

Section 2(a)(3) contains a formula for 

determining the maximum daily benefit 

rate for registration periods beginning 

after June 30, 1989, and after each June 

30 thereafter. Legislation enacted on 

October 9, 1996, revised the formula for 

indexing maximum daily benefit rates. 

Under the prescribed formula, the 

maximum daily benefit rate increases by 

approximately two-thirds of the 

cumulative growth in average national 

wages since 1984. The maximum daily 

benefit rate for registration periods 

beginning after June 30, 2006, shall be 

equal to 5 percent of the monthly 

compensation base for the base year 

immediately preceding the beginning of 

the benefit year. Section 2(a)(3) further 

provides that if the amount so computed 

is not a multiple of $1, it shall be 

rounded down to the nearest multiple of 

$1. 

The calendar year 2005 monthly 

compensation base is $1,150. 

Multiplying $1,150 by 0.05 yields 

$57.50, which must then be rounded 

down to $57. Accordingly, the 

maximum daily benefit rate for days of 

unemployment and days of sickness 

beginning in registration periods after 

June 30, 2006, is determined to be $57. 

Dated: November 8, 2005. 

By authority of the Board. 

Beatrice Ezerski, 

Secretary to the Board. 

[FR Doc. 05–22724 Filed 11–15–05; 8:45 am] 

BILLING CODE 7905–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 52753/November 9, 2005] 

Securities Exchange Act of 1934; 

Order Regarding Alternative Net 

Capital Computation for Lehman 

Brothers Inc., Which Has Elected To 

Be Supervised on a Consolidated 

Basis 

Lehman Brothers Inc. (‘‘LB’’), a 

broker-dealer registered with the 

Securities and Exchange Commission 

(‘‘Commission’’), and its ultimate 

holding company, Lehman Brothers 

Holdings Inc. (‘‘LBHI’’), have indicated 

their desire to be supervised by the 

Commission as a consolidated 

supervised entity (‘‘CSE’’). LB, therefore, 

has submitted an application to the 

Commission for authorization to use the 

alternative method of computing net 

capital contained in Appendix E to Rule 

15c3–1 (17 CFR 240.15c3–1e) to the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’). 

Based on a review of the application 

that LB submitted, the Commission has 

determined that the application meets 

the requirements of Appendix E. The 

Commission also has determined that 

LBHI is in compliance with the terms of 

its undertakings, as provided to the 

Commission under Appendix E. The 

Commission, therefore, finds that 

approval of the application is necessary 

or appropriate in the public interest or 

for the protection of investors. 

Accordingly, 

It is ordered, under paragraph (a)(7) of 

Rule 15c3–1 (17 CFR 240.15c3–1) to the 

Exchange Act, that LB may calculate net 

capital using the market risk standards 

of Appendix E to compute a deduction 

for market risk on some or all of its 

positions, instead of the provisions of 

paragraphs (c)(2)(vi) and (c)(2)(vii) of 

Rule 15c3–1, and using the credit risk 

standards of Appendix E to compute a 

deduction for credit risk on certain 

credit exposures arising from 

transactions in derivatives instruments, 

instead of the provision of paragraph 

(c)(2)(iv) of Rule 15c3–1. 

By the Commission. 

Jonathan G. Katz, 

Secretary. 

[FR Doc. E5–6327 Filed 11–15–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52752; File No. SR–NASD–

2004–044] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing of 

Proposed Rule Change and 

Amendments Nos. 1 and 2 Thereto 

Relating to Short Sale Delivery 

Requirements 

November 8, 2005. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’)1 thnsp; and Rule 19b–4 

thereunder,2 notice is hereby given that 

on March 10, 2005, the National 

Association of Securities Dealers, Inc.