Federal Register / Vol. 60, No. 31 / Wednesday, February 15, 1995 / Rules and Regulations 8555

must meet the following eligibility

criteria:

(a) Be a federally recognized tribe or

a consortium of federally recognized

tribes as defined in Public Law 93–638.

(b) Document, with an official action

of the tribal governing body, a formal

request to enter negotiations with the

Department of Interior (Department)

under the Tribal Self-Governance Act

authority. In the case of a consortium of

tribes, the governing body of each

participating tribe must authorize

participation by an official action by the

tribal governing body.

(c) Demonstrate financial stability and

financial management capability by

furnishing organization-wide single

audit reports as prescribed by Public

Law 96–502, the Single Audit Act of

1984, for the previous three years. These

audits must not contain material audit

exceptions. In the case of tribal

consortiums, each signatory to the

agreement must meet this requirement.

Non-signatory tribes participating in the

consortium do not have to meet this

requirement.

(d) Successfully complete the

planning phase for self-governance. A

final planning report must be submitted

which demonstrates that the tribe has

conducted—

(1) legal and budgetary research; and

(2) internal tribal government and

organizational planning.

(e) To be included in the applicant

pool, tribes or tribal consortiums may

submit their applications at any time.

The application should state which year

the tribe desires to enter negotiations.

§ 1001.3 Priority ranking for negotiations.

In addition to the eligibility criteria

identified above, a tribe or consortium

of tribes seeking priority ranking for

negotiations must submit a description

of the efforts of the tribe or consortium

to seek to enter negotiations and/or

prepare for operations under the selfgovernance option. This narrative

should identify any activities that the

tribe has pursued, carefully identifying

and documenting the dates involved,

including, but not limited to, the

following:

(a) Prior planning activities related to

self-governance, noting the source of

funding for the planning activity and

whether or not it was sanctioned by the

Office of Self-Governance (OSG),

including documentation as applicable.

(b) Prior efforts to secure planning

and/or negotiation grants.

(c) Meetings with the OSG or other

Departmental offices in which the tribe

expressed an interest in participating in

the Self-Governance Project.

(d) Correspondence between the tribe

and the Department in which the tribe

has expressed an interest in

participating in the Self-Governance

Project.

(e) All actions of the tribal governing

body related to participating in the selfgovernance option.

§ 1001.4 Application review and approval.

Upon receipt of an application, the

OSG will review the package and

determine whether or not it is complete.

Upon determination that it is complete,

the name of the tribe or consortium will

be included in the official applicant

pool. Incomplete submissions will be

returned with the deficiencies

identified. Revised applications may be

resubmitted for consideration at any

time.

§ 1001.5 Application review and selection

process for negotiations for funding

agreements.

Upon acceptance into the applicant

pool, the OSG will assign to each tribe

or consortium a ranking relative to other

applicants based upon the date the OSG

receives the complete application

package. This ranking will constitute a

master list that will be maintained and

updated on a continuous basis from year

to year. When receipt dates are the same

for two or more applications, several

other factors will be considered in

determining the placement of the tribe

or consortium on the list. These factors

are identified in priority order as

follows:

(a) Designation by the Congress

through report language that a tribe

should be considered for participation.

These designations will be considered

based upon the actual language of the

report.

(b) Documentation of OSG

sanctioning of the tribe’s selfgovernance planning and subsequent

evidence of actual planning by the tribe.

(c) Submission of a completed

planning or negotiation grant

application in the previous year.

(d) A signed agreement pursuant to

the Indian Health Service (IHS) selfgovernance project.

(e) Receipt of a planning grant

awarded by the IHS.

§ 1001.6 Submitting Applications.

(a) Applications for inclusion in the

applicant pool will be accepted on an

on-going basis.

(b) Applications may be mailed or

hand-delivered.

(c) Applications for negotiations in

1996 that are mailed must be

postmarked no later than May 16, 1995.

(d) Applications must be sent to:

Director, Office of Self Governance,

Department of the Interior, 1849 C

Street, NW MIB RM/MS–2548,

Washington, DC 20240.

Dated: February 6, 1995.

Ada E. Deer,

Assistant Secretary, Indian Affairs.

[FR Doc. 95–3445 Filed 2–14–95; 8:45 am]

BILLING CODE 4310–02–M

PENSION BENEFIT GUARANTY

CORPORATION

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 March 1995,

and to multiemployer plans with

valuation dates in March 1995. The

effect of these amendments is to advise

the public of the adoption of these

assumptions.

EFFECTIVE DATE: March 1, 1995.

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 March 1995 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’’).
8556 Federal Register / Vol. 60, No. 31 / Wednesday, February 15, 1995 / Rules and Regulations

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 March 1995 and

multiemployer plans that have

undergone mass withdrawal and have

valuation dates during March 1995.

For annuity benefits, the interest rates

will be 7.30% for the first 20 years

following the valuation date and 5.75%

thereafter. For benefits to be paid as

lump sums, the interest assumptions to

be used by the PBGC will be 6.00% for

the period during which benefits are in

pay status, 5.25% during the seven-year

period directly preceding the benefit’s

placement in pay status, and 4.0%

during any other years preceding the

benefit’s placement in pay status. The

above annuity and lump sum interest

assumptions are unchanged from those

in effect for February 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

termination dates fall during March

1995, and in multiemployer plans that

have undergone mass withdrawal and

have valuation dates during March

1995, 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 17 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 v0:n (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.
Federal Register / Vol. 60, No. 31 / Wednesday, February 15, 1995 / Rules and Regulations 8557

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

* * * * * * *

17 3–1–95 4–1–95 6.00 5.25 4.00 4.00 7 8

Annuity Valuations

In determining the value of interest factors

of the form v0:n (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 i1ü 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=

* * * * * * *

March 1995 ........................................................................ .0730 1–20 .0575 >20 N/A N/A

PART 2676—[AMENDED]

3. The authority citation 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 17 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 vO:n (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 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 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 deferred

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

annuities rate

(percent)

Deferred annuities rate (percent)

On or after Before i1 i2 i3 n1 n2

* * * * * * *

17 3–1–95 4–1–95 6.00 5.25 4.00 4.00 7 8

Annuity Valuations

In determining the value of interest factors

of the form vO:n (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.
8558 Federal Register / Vol. 60, No. 31 / Wednesday, February 15, 1995 / Rules and Regulations

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=

* * * * * * *

March 1995 ........................................................................ .0730 1–20 .0575 >20 N/A N/A

Issued in Washington, DC, on this 10th day

of February 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–3775 Filed 2–14–95; 8:45 am]

BILLING CODE 7708–01–M

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 917

Kentucky Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.

ACTION: Final rule; approval of

amendment.

SUMMARY: OSM is approving a proposed

amendment to the Kentucky regulatory

program (hereinafter referred to as the

Kentucky program) under the Surface

Mining Control and Reclamation Act of

1977 (SMCRA). Kentucky has proposed

revisions to the Kentucky

Administrative Rules (KAR) at 405 KAR

7:080 concerning the types of assistance

provided by Kentucky’s Small Operator

Assistance Program (SOAP) and the

eligibility criteria for that assistance.

The amendment is intended to revise

the Kentucky program to be consistent

with changes in section 507 of SMCRA

enacted by Congrss as part of the Energy

Policy Act of 1992, Public Law 102–486.

EFFECTIVE DATE: February 15, 1995.

FOR FURTHER INFORMATION CONTACT:

William J. Kovacic, Director, Lexington

Field Office, Office of Surface Mining

Reclamation and Enforcement, 2675

Regency Rd, Lexington, Kentucky

40503. Telephone: (606) 233–2896.

SUPPLEMENTARY INFORMATION:

I. Background on the Kentucky Program

II. Submission of the Proposed Amendment

III. Director’s Findings

IV. Summary and Disposition of Comments

V. Director’s Decision

VI. Procedural Determinations

I. Background on the Kentucky

Program

On May 18, 1982, the Secretary of the

Interior conditionally approved the

Kentucky program. Background

information on the Kentucky program,

including the Secretary’s findings, the

disposition of comments, and the

conditions of approval can be found in

the May 18, 1982, Federal Register (47

FR 21404). Subsequent actions

concerning conditions of approval and

program amendments can be found at

30 CFR 917.11, 917.13, 917.15, 917.16,

and 917.17.

II. Submission of the Proposed

Amendment

By letter dated April 26, 1994

(Administrative Record No. KY–1278),

Kentucky submitted a proposed

amendment to its program on its own

initiative. This amendment proposed to

revise ten sections of Kentucky’s

regulations at 405 KAR 7:080

concerning Kentucky’s Small Operator

Assistance Program (SOAP). The

proposed amendment included

revisions to the sections pertaining to

program services, eligibility for services,

information requirements, and applicant

liability. It also contained editorial

revisions and clarifications of other

sections.

OSM announced receipt of the

proposed amendment in the May 20,

1994, Federal Register (59 FR 26471),

and in the same document opened the

public comment period and provided an

opportunity for a public hearing on the

adequacy of the proposed amendment.

The public comment period closed on

June 20, 1994.

In the September 1, 1994, Federal

Register (59 FR 45201), the Director of

OSM announced his decision to

approve the amendment, with certain

exceptions. As part of his decision, the

Director required Kentucky to submit a

second proposed amendment to further

revise 405 KAR 7:080 sections 5(2) and

11(1) to:

(1) Delete the phrase ‘‘the twelve (12)

months immediately following the date

the permit is issued’’;

(2) Provide that an applicant establish

that his or her probable total attributed

annual production from all locations on

which the operator is issued the surface

coal mining and reclamation permit will

not exceed 300,000 tons; and

(3) Either delete the word

‘‘laboratory’’ in the phrase ‘‘The

applicant shall reimburse the cabinet for

the costs of the laboratory services

performed * * *’’ or otherwise specify

that the costs of all services rendered

pursuant to 405 KAR 7:080 shall be

reimbursed by SOAP recipients.

By letter dated October 3, 1994

(Administrative Record No. KY–1320),

Kentucky submitted further rule

revisions in an amendment intended to

address the requirements in the

Director’s September 1, 1994, decision

and to make other editorial corrections

to Kentucky’s regulations. OSM

announced receipt of the proposed

amendment in the November 14, 1994,

Federal Register (59 FR 56449), and in

the same document opened the public

comment period and provided an

opportunity for a public hearing on the

adequacy of the proposed amendment.

The public comment period closed on

December 14, 1994.

III. Director’s Findings

Set forth below, pursuant to SMCRA

and the Federal regulations at 30 CFR

732.15 and 732.17, are the Director’s

findings concerning the proposed

amendment.

Revisions not specifically discussed

below concern nonsubstantive wording

changes, or cross-references and

paragraph notations to reflect

organizational changes resulting from

this amendment.

A. Revisions to Kentucky’s Regulations

That Are Substantively Identical to the

Corresponding Provisions of the Federal

Regulations