Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Rules and Regulations 64327

TABLE I–96.—SELECTION OF RETIREMENT RATE CATEGORY—Continued

[For Plans with valuation dates after December 31, 1995, and before January 1, 1997]

Participant reaches NRA in year—

Participant’s retirement rate category is— High 3 if

monthly

benefit at

NRA is

greater

than—

Low1 if

monthly

benefit at

NRA is less

than—

Medium 2 if monthly benefit

at NRA is

From To

2006 or later ..................................................................................................................... 528 528 2,221 2,221

1Table II–A.

2Table II–B.

3Table II–C.

Issued at Washington, DC this 11th day of

December, 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–30495 Filed 12–14–95; 8:45 am]

BILLING CODE 7708–01–P

29 CFR Parts 2619 and 2676

Valuation of Plan Benefits in SingleEmployer Plans; Valuation of Plan

Benefits and Plan Assets Following

Mass Withdrawal; Amendments

Adopting Additional PBGC Rates

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This final rule amends the

Pension Benefit Guaranty Corporation’s

(‘‘PBGC’s’’) regulations on Valuation of

Plan Benefits in Single-Employer Plans

and Valuation of Plan Benefits and Plan

Assets Following Mass Withdrawal. The

former regulation contains the interest

assumptions that the PBGC uses to

value benefits under terminating singleemployer plans. The latter regulation

contains the interest assumptions for

valuations of multiemployer plans that

have undergone mass withdrawal. The

amendments set out in this final rule

adopt the interest assumptions

applicable to single-employer plans

with termination dates in January 1996,

and to multiemployer plans with

valuation dates in January 1996. The

effect of these amendments is to advise

the public of the adoption of these

assumptions.

EFFECTIVE DATE: January 1, 1996.

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, 202–326–4024 (202–326–4179

for TTY and TDD). (These are not tollfree numbers.)

SUPPLEMENTARY INFORMATION: This rule

adopts the January 1996 interest

assumptions to be used under the

Pension Benefit Guaranty Corporation’s

(‘‘PBGC’s’’) regulations on Valuation of

Plan Benefits in Single-Employer Plans

(29 CFR part 2619, the ‘‘single-employer

regulation’’) and Valuation of Plan

Benefits and Plan Assets Following

Mass Withdrawal (29 CFR part 2676, the

‘‘multiemployer regulation’’).

Part 2619 sets forth the methods for

valuing plan benefits of terminating

single-employer plans covered under

title IV of the Employee Retirement

Income Security Act of 1974, as

amended (‘‘ERISA’’). Under ERISA

section 4041(c), all single-employer

plans wishing to terminate in a distress

termination must value guaranteed

benefits and ‘‘benefit liabilities,’’ i.e., all

benefits provided under the plan as of

the plan termination date, using the

formulas set forth in part 2619, subpart

C. (Plans terminating in a standard

termination may, for purposes of the

Standard Termination Notice filed with

PBGC, use these formulas to value

benefit liabilities, although this is not

required.) In addition, when the PBGC

terminates an underfunded plan

involuntarily pursuant to ERISA section

4042(a), it uses the subpart C formulas

to determine the amount of the plan’s

underfunding. Part 2676 prescribes

rules for valuing benefits and certain

assets of multiemployer plans under

sections 4219(c)(1)(D) and 4281(b) of

ERISA.

Appendix B to part 2619 sets forth the

interest rates and factors under the

single-employer regulation. Appendix B

to part 2676 sets forth the interest rates

and factors under the multiemployer

regulation. Because these rates and

factors are intended to reflect current

conditions in the financial and annuity

markets, it is necessary to update the

rates and factors periodically.

The PBGC issues two sets of interest

rates and factors, one set to be used for

the valuation of benefits to be paid as

annuities and one set for the valuation

of benefits to be paid as lump sums. The

same assumptions apply to terminating

single-employer plans and to

multiemployer plans that have

undergone a mass withdrawal. This

amendment adds to appendix B to parts

2619 and 2676 sets of interest rates and

factors for valuing benefits in singleemployer plans that have termination

dates during January 1996 and

multiemployer plans that have

undergone mass withdrawal and have

valuation dates during January 1996.

For annuity benefits, the interest rates

will be 5.60% for the first 20 years

following the valuation date and 4.75%

thereafter. For benefits to be paid as

lump sums, the interest assumptions to

be used by the PBGC will be 4.50% for

the period during which benefits are in

pay status, and 4.0% during all years

preceding the benefit’s placement in pay

status. The above annuity interest

assumptions represent a decrease (from

those in effect for December 1995) of .40

percent for the first 20 years following

the valuation date and of 1.00 percent

thereafter. The lump sum interest

assumptions are unchanged (from those

in effect for December 1995).

Generally, the interest rates and

factors under these regulations are in

effect for at least one month. However,

the PBGC publishes its interest

assumptions each month regardless of

whether they represent a change from

the previous month’s assumptions. The

assumptions normally will be published

in the Federal Register by the 15th of

the preceding month or as close to that

date as circumstances permit.

The PBGC has determined that notice

and public comment on these

amendments are impracticable and

contrary to the public interest. This

finding is based on the need to

determine and issue new interest rates

and factors promptly so that the rates

and factors can reflect, as accurately as

possible, current market conditions.

Because of the need to provide

immediate guidance for the valuation of

benefits in single-employer plans whose
64328 Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Rules and Regulations

termination dates fall during January

1996, and in multiemployer plans that

have undergone mass withdrawal and

have valuation dates during January

1996, the PBGC finds that good cause

exists for making the rates and factors

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 it 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 this

amendment, the Regulatory Flexibility

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

601(2).

List of Subjects

29 CFR Part 2619

Employee benefit plans, Pension

insurance, and Pensions.

29 CFR Part 2676

Employee benefit plans and Pensions.

In consideration of the foregoing,

parts 2619 and 2676 of chapter XXVI,

title 29, Code of Federal Regulations, are

hereby amended as follows:

PART 2619—[AMENDED]

1. The authority citation for part 2619

continues to read as follows:

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

1341, 1344, 1362.

2. In appendix B, Rate Set 27 is added

to Table I, and a new entry is added to

Table II, as set forth below. The

introductory text of both tables is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 2619—Interest

Rates Used To Value Lump Sums and

Annuities

Lump Sum Valuations

In determining the value of interest factors

of the form v0n: (as defined in § 2619.49

(b)(1)) for purposes of applying the formulas

set forth in § 2619.49(b) through (i) and in

determining the value of any interest factor

used in valuing benefits under this subpart

to be paid as lump sums (including the

return of accumulated employee

contributions upon death), the PBGC shall

employ the values of it set out in Table I

hereof as follows:

(1) For benefits for which the participant

or beneficiary is entitled to be in pay status

on the valuation date, the immediate annuity

rate shall apply.

(2) For benefits for which the deferral

period is y years (y is an integer and 0 < y

≤ n1), interest rate i1 shall apply from the

valuation date for a period of y years;

thereafter the immediate annuity rate shall

apply.

(3) For benefits for which the deferral

period is y years (y is an integer and n1 < y

≤ n1 + n2), interest rate i2 shall apply from

the valuation date for a period of y ¥ n1

years, interest rate i1 shall apply for the

following n1 years; thereafter the immediate

annuity rate shall apply.

(4) For benefits for which the deferral

period is y years (y is an integer and y > n1

+ n2), interest rate i3 shall apply from the

valuation date for a period of y ¥ n1 ¥ n2

years, interest rate i2 shall apply for the

following n2 years, interest rate i1 shall apply

for the following n1 years; thereafter the

immediate annuity rate shall apply.

TABLE I

[Lump sum valuations]

Rate set

For plans with a valuation date Immediate annuity rate (percent)Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

* * * * * * *

27 1–1–96 2–1–96 4.50 4.00 4.00 4.00 7 8

Annuity Valuations

In determining the value of interest factors

of the form v0n: (as defined in § 2619.49(b)(1))

for purposes of applying the formulas set

forth in § 2619.49 (b) through (i) and in

determining the value of any interest factor

used in valuing annuity benefits under this

subpart, the plan administrator shall use the

values of it prescribed in Table II hereof.

The following table tabulates, for each

calendar month of valuation ending after the

effective date of this part, the interest rates

(denoted by i1, i2, * * *, and referred to

generally as it) assumed to be in effect

between specified anniversaries of a

valuation date that occurs within that

calendar month; those anniversaries are

specified in the columns adjacent to the

rates. The last listed rate is assumed to be in

effect after the last listed anniversary date.

TABLE II

[Annuity valuations]

For valuation dates occurring in the month—

The values of it are:

it for t = it for t = it for t =

* * * * * * *

January 1996 ....................................................................................................................... .0560 1–20 .0475 >20 N/A ... N/A
Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Rules and Regulations 64329

PART 2676—[AMENDED]

3. The authority citation for part 2676

continues to read as follows:

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

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

4. In appendix B, Rate Set 27 is added

to Table I, and a new entry is added to

Table II, as set forth below. The

introductory text of both tables is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 2676—Interest

Rates Used To Value Lump Sums and

Annuities

Lump Sum Valuations

In determining the value of interest factors

of the form v0n: (as defined in § 2676.13(b)(1))

for purposes of applying the formulas set

forth in § 2676.13 (b) through (i) and in

determining the value of any interest factor

used in valuing benefits under this subpart

to be paid as lump sums, the PBGC shall use

the values of it prescribed in Table I hereof.

The interest rates set forth in Table I shall be

used by the PBGC to calculate benefits

payable as lump sum benefits as follows:

(1) For benefits for which the participant

or beneficiary is entitled to be in pay status

on the valuation date, the immediate annuity

rate shall apply.

(2) For benefits for which the deferral

period is y years (y is an integer and 0 < y

± n1), interest rate i1 shall apply from the

valuation date for a period of y years;

thereafter the immediate annuity rate shall

apply.

(3) For benefits for which the deferral

period is y years (y is an integer and n1 < y

≤ n1 + n2), interest rate i2 shall apply from the

valuation date for a period of y ¥ n1 years,

interest rate i1 shall apply for the following

n1 years; thereafter the immediate annuity

rate shall apply.

(4) For benefits for which the deferral

period is y years (y is an integer and y > n1

+ n2), interest rate i3 shall apply from the

valuation date for a period of y ¥ n1 ¥ n2

years, interest rate i2 shall apply for the

following n2 years, interest rate i1 shall apply

for the following n1 years; thereafter the

immediate annuity rate shall apply.

TABLE I

[Lump sum valuations]

Rate set

For plans with a valuation date Immediate annuity rate (percent)Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

* * * * * * *

27 1–1–96 2–1–96 4.50 4.00 4.00 4.00 7 8

Annuity Valuations

In determining the value of interest factors

of the form v0n: (as defined in § 2676.13(b)(1))

for purposes of applying the formulas set

forth in § 2676.13(b) through (i) and in

determining the value of any interest factor

used in valuing annuity benefits under this

subpart, the plan administrator shall use the

values of it prescribed in the table below.

The following table tabulates, for each

calendar month of valuation ending after the

effective date of this part, the interest rates

(denoted by i1, i2, * * *, and referred to

generally as it) assumed to be in effect

between specified anniversaries of a

valuation date that occurs within that

calendar month; those anniversaries are

specified in the columns adjacent to the

rates. The last listed rate is assumed to be in

effect after the last listed anniversary date.

TABLE II

[Annuity valuations]

For valuation dates occurring in the month—

The values of it are:

it for t = it for t = it for t =

* * * * * * *

January 1996 ....................................................................................................................... .0560 1–20 .0475 >20 N/A ... N/A

Issued in Washington, DC, on this 11th day

of December 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–30496 Filed 12–14–95; 8:45 am]

BILLING CODE 7708–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 60

[FRL–5346–7]

Standards of Performance for New

Stationary Sources; Supplemental

Delegation of Authority to Mississippi

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Informational notice.

SUMMARY: On September 29, 1995, the

state of Mississippi, through the

Department of Environmental Quality,

requested that EPA delegate authority

for implementation and enforcement of

an amended category of the New Source

Performance Standards (NSPS). Since

EPA’s review of Mississippi’s pertinent

laws, rules, and regulations showed

them to be adequate and effective

procedures for the implementation and

enforcement of these Federal standards,

EPA has made the delegation as

requested.

EFFECTIVE DATE: The effective date of the

delegation of authority is October 30,

1995.

ADDRESSES: Copies of the request for

delegation of authority and EPA’s letter

of delegation are available for public

inspection during normal business

hours at the following locations.