13906 Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / Rules and Regulations

1The guarantee described herein is not intended

to refer to a securities dealer submitting or

forwarding a noncompetitive bid for a customer.

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 i i 2 i 3 n 1 n 2

* * * * * * *

18 4–1–95 5–1–95 5.75 5.00 4.00 4.00 7 8

Annuity Valuations

In determining the value of interest factors

of the form v0: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 i 1, i 2, * * *, 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 i t are:

i for t = i t for t = i t for t =

* * * * * * *

April 1995 ............................................................................................................................ .0710 1–20 .0575 >20 N/A N/A

Issued in Washington, DC, on this 8th day

of March 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 95–6359 Filed 3–14–95; 8:45 am]

BILLING CODE 7708–01–M

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 356

Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds

(Department of the Treasury Circular,

Public Debt Series No. 1–93)

AGENCY: Bureau of the Public Debt,

Fiscal Service, Department of the

Treasury.

ACTION: Final rule.

SUMMARY: The Department of the

Treasury (‘‘Department’’) is issuing in

final form an amendment to 31 CFR Part

356, published as a final rule on January

5, 1993 (58 FR 412). This amendment

clarifies the definition of the term ‘‘bid’’

and changes the required format for

competitive bids for Treasury notes and

bonds from two decimals to three

decimals.

EFFECTIVE DATE: February 22, 1995.

FOR FURTHER INFORMATION CONTACT:

Michael W. Sunner, Deputy Assistant

Commissioner, Office of Financing,

Bureau of the Public Debt (202) 219–

3350, or Margaret Marquette, AttorneyAdviser, Office of the Chief Counsel,

Bureau of the Public Debt (202) 219–

3320.

SUPPLEMENTARY INFORMATION: 31 CFR

Part 356, also referred to as the uniform

offering circular, sets out the terms and

conditions for the sale and issuance by

the Department of the Treasury to the

public of marketable Treasury bills,

notes, and bonds. The final rule

contained herein amends §§ 356.2 and

356.12 of the uniform offering circular.

In § 356.2, the definition of the term

‘‘bid’’ has been modified. The

Department has become aware that

securities dealers may enter into

transactions whereby they effectively

‘‘guarantee’’ the amount and price of

securities their customers will receive

following a Treasury auction.1 The price

guaranteed may be simply an agreedupon price, or it may be a price fixed

in terms of an agreed-upon standard,

e.g., the weighted average auction price.

The dealer may obtain securities to

fulfill such a guarantee either through

an auction bid or through the whenissued market, or both.

The Department views the guarantee

described above to be the equivalent of

a when-issued trade between the dealer

and its customer. Therefore, the

Department has determined that, for

purposes of Treasury’s auction rules,

any bid of the dealer to obtain securities

to fulfill such a guarantee is a bid for the

dealer’s own account and not a bid for

a customer, as the term customer is

defined in the offering circular. This

means that the recipient of the

guarantee may not be listed as a

customer in connection with any bid to

fulfill the guarantee. Rather, the

depository institution or dealer that has

made the guarantee is considered the

bidder and must include such amount

as part of its own bid. The guaranteeing

entity may reflect the guaranteed

amount being included in its bid as a

short position in calculating its net long

position. If the recipient of the

guarantee for a specific security also

bids for that same security in its own

name either directly or through a

submitter, it must treat the amount of

any guarantee as a long position in

calculating its net long position.
Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / Rules and Regulations 13907

The definition of the term ‘‘bid’’ in

§ 356.2 has been expanded to clarify

that an offer to purchase a stated par

amount of a security by a depository

institution or dealer to fulfill a

guarantee as described above is a bid for

the depository institution’s or dealer’s

own account and not a bid for a

customer.

In § 356.12, the requirement to

express a competitive bid with two

decimals has been changed with regard

to Treasury notes and bonds. Prior to

the publication of this rule, a

competitive bid for a note or bond had

to show the yield bid, expressed with

two decimals. Effective with the

publication of this rule, such bids must

show the yield bid, expressed with three

decimals. The requirement for a

competitive bid for a Treasury bill to

show the discount rate bid, expressed

with two decimals, remains unchanged.

Further, the restriction against using

fractions still applies to bids for all

securities.

The change from two decimal places

to three decimal places for notes and

bonds is being made to encourage

greater participation in Treasury

auctions.

Procedural Requirements

This final rule does not meet the

criteria for a ‘‘significant regulatory

action’’ pursuant to Executive Order

12866.

Because this rule relates to public

contracts and procedures for United

States securities, the notice, public

comment, and delayed effective date

provisions of the Administrative

Procedure Act are inapplicable,

pursuant to 5 U.S.C. 553(a)(2).

As no notice of proposed rulemaking

is required, the provisions of the

Regulatory Flexibility Act (5 U.S.C. 601,

et seq.) do not apply.

There are no collections of

information required by this final rule,

and, therefore, the Paperwork Reduction

Act does not apply.

List of Subjects in 31 CFR Part 356

Bonds, Federal Reserve System,

Government securities, Securities.

Dated: March 9, 1995.

Gerald Murphy,

Fiscal Assistant Secretary.

31 CFR Chapter II, Subchapter B, Part

356, is hereby amended as follows:

PART 356—SALE AND ISSUE OF

MARKETABLE BOOK-ENTRY

TREASURY BILLS, NOTES, AND

BONDS (DEPARTMENT OF THE

TREASURY CIRCULAR, PUBLIC DEBT

SERIES NO. 1–93)

1. The authority citation for Part 356

continues to read as follows:

Authority: 5 U.S.C. 301; 31 U.S.C. 3102, et

seq.

2. Section 356.2 is amended by

revising the definition of ‘‘bid’’ to read

as follows:

§ 356.2 Definitions.

* * * * *

Bid means an offer to purchase a

stated par amount of securities, either

competitively or noncompetitively, in

an auction. An offer to purchase a stated

par amount of securities submitted by a

depository institution or dealer to fulfill

a guarantee to sell a specified amount of

securities at an agreed-upon price or a

price fixed in terms of an agreed-upon

standard is a bid of the depository

institution or dealer and not a bid of a

customer.

* * * * *

3. Section 356.12 is amended by

revising paragraph (c)(1) to read as

follows:

§ 356.12 Noncompetitive and competitive

bidding.

* * * * *

(c) * * *

(1) Bid format.

(i) Treasury bills. A competitive bid

must show the discount rate bid,

expressed with two decimals. Fractions

may not be used.

(ii) Treasury notes and bonds. A

competitive bid must show the yield

bid, expressed with three decimals.

Fractions may not be used.

* * * * *

[FR Doc. 95–6394 Filed 3–14–95; 8:45 am]

BILLING CODE 4810–39–P

SELECTIVE SERVICE SYSTEM

32 CFR Part 1636

Selective Service Regulations;

Registrant Processing Procedures

AGENCY: Selective Service System.

ACTION: Final rule.

SUMMARY: Procedures for the processing

of registrants under the Military

Selective Service Act are amended to

assure greater fairness and efficiency in

administration in the processing of

registrants.

EFFECTIVE DATE: March 15, 1995.

FOR FURTHER INFORMATION CONTACT:

Henry N. Williams, General Counsel,

Selective Service System, 1515 Wilson

Blvd., Arlington, VA 22209–2425.

Phone (703) 235–2050.

Analysis of Comments

The proposed amendment to Selective

Service Regulations was published in

the Federal Register on December 28,

1994 (59 FR 66839) for public comment.

No comment was received.

The proposed regulation will become

the final rule.

Executive Order 12866

In promulgating this regulation, I have

adhered to the regulatory philosophy

and the applicable principles of

regulation set forth in section 1 of

Executive Order 12866, Regulatory

Planning and Review. This amendment

has not been reviewed by the Office of

Management and Budget under that

Executive order, as it is not deemed

‘‘significant’’ thereunder.

Regulatory Flexibility Act

I certify under the Regulatory

Flexibility Act (5 U.S.C. chapter 6) that

this rulemaking will not have a

significant economic impact on a

substantial number of small entities.

Paperwork Reduction Act

The Paperwork Reduction Act (44

U.S.C. chapter 35) does not apply

because this rulemaking does not

contain information collection

requirements that require the approval

of the Office of Management and

Budget.

Certificate

Whereas, on December 28, 1994, the

Director of Selective Service published

a Notice of Proposed Amendments of

Selective Service Regulations at 59 FR

66839; and whereas such publication

complied with the publication

requirement of section 13(b) of the

Military Selective Service Act (50 App.

U.S.C. 463(b)) in that more than 30 days

have elapsed subsequent to such

publication during which period

comments from the public (summarized

above) have been received and

considered; and I certify that I have

requested the view of officials named in

section 2(a) of Executive Order 11623

and none of them has timely requested

that the matter be referred to the

President for decision.

Now therefore by virtue of the

authority vested in me by the Military

Selective Service Act, as amended (50

App. U.S.C. section 451 et seq.) and

Executive Order 11623 of October 12,

1971, the Selective Service Regulations