24444 Federal Register / Vol. 61, No. 95 / Wednesday, May 15, 1996 / Rules and Regulations

PART 520—ORAL DOSAGE FORM

NEW ANIMAL DRUGS

1. The authority citation for 21 CFR

part 520 continues to read as follows:

Authority: Sec. 512 of the Federal Food,

Drug, and Cosmetic Act (21 U.S.C. 360b).

§ 520.1448a [Amended]

2. Section 520.1448a Monensin blocks

is amended in paragraph (c)(4)(iii) by

removing the phrase ‘‘weighing more

than 400 pounds’’.

PART 558—NEW ANIMAL DRUGS FOR

USE IN ANIMAL FEEDS

3. The authority citation for 21 CFR

part 558 continues to read as follows:

Authority: Secs. 512, 701 of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C.

360b, 371).

§ 558.355 [Amended]

4. Section 558.355 Monensin is

amended in paragraph (f)(3)(iii)(b) and

(f)(3)(v)(b) by removing the phrase

‘‘weighing more than 400 pounds’’.

Dated: April 4, 1996.

Robert C. Livingston,

Director, Office of New Animal Drug

Evaluation, Center for Veterinary Medicine.

[FR Doc. 96–12156 Filed 5–14–96; 8:45 am]

BILLING CODE 4160–01–F

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

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 June 1996,

and to multiemployer plans with

valuation dates in June 1996. The effect

of these amendments is to advise the

public of the adoption of these

assumptions.

EFFECTIVE DATE: June 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).

SUPPLEMENTARY INFORMATION: This rule

adopts the June 1996 interest

assumptions to be used under the

Pension Benefit Guaranty Corporation’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. 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 June 1996 and

multiemployer plans that have

undergone mass withdrawal and have

valuation dates during June 1996.

For annuity benefits, the interest rates

will be 6.20% 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 5.00% for

the period during which benefits are in

pay status, 4.25% 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 interest assumptions

represent an increase (from those in

effect for May 1996) of .20 percent for

the first 20 years following the valuation

date and are otherwise unchanged. The

lump sum interest assumptions are

unchanged from those in effect for May

1996.

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 June 1996,

and in multiemployer plans that have

undergone mass withdrawal and have

valuation dates during June 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 no general notice of proposed

rulemaking is required for this

amendment, the Regulatory Flexibility
Federal Register / Vol. 61, No. 95 / Wednesday, May 15, 1996 / Rules and Regulations 24445

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 32 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 vo : 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 ii 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 year; 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

* * * * * * *

32 ..... 06–1–96 07–1–96 5.00 4.25 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 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=

* * * * * * *

June 1996 .... .0620 1–20 .0475 >20 N/A N/A

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 32 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 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 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
24446 Federal Register / Vol. 61, No. 95 / Wednesday, May 15, 1996 / Rules and Regulations

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 2i2 i3 n1 n2

* * * * * * *

32 ..... 06–1–96 07–1–96 5.00 4.25 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 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 =

* * * * * * *

June 1996 .... .0620 1–20 .0475 >20 N/A N/A

Issued in Washington, DC, on this 9th day

of May 1996.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 96–12125 Filed 5–14–96; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF EDUCATION

34 CFR Part 685

RIN 1840–AC19

William D. Ford Federal Direct Loan

Program

AGENCY: Department of Education.

ACTION: Final regulations.

SUMMARY: The Secretary amends the

William D. Ford Federal Direct Loan

Program regulations to add the Office of

Management and Budget (OMB) control

number to a section of the regulations.

The section contains information

collection requirements approved by

OMB. Under the Paperwork Reduction

Act of 1995, no persons are required to

respond to a collection of information

unless it displays a valid OMB control

number. The Secretary takes this action

to inform the public that these

requirements have been approved and

affected parties must comply with them.

EFFECTIVE DATE: These regulations are

effective on July 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Rachel Edelstein, Program Specialist,

Direct Loan Policy Group, Policy

Development Division, U.S. Department

of Education, 600 Independence Avenue

SW. (Room 3053, ROB–3), Washington,

D.C. 20202. Telephone (202) 708–9406.

Individuals who use a

telecommunications device for the deaf

(TDD) may call the Federal Information

Relay Service (FIRS) at 1–800–877–8339

between 8 a.m. and 8 p.m. Eastern time,

Monday through Friday.

SUPPLEMENTARY INFORMATION: Final

regulations for the William D. Ford

Federal Direct Loan Program were

published in the Federal Register on

December 1, 1995 (60 FR 61820).

Compliance with information collection

requirements in a section of these

regulations was delayed until those

requirements were approved by OMB

under the Paperwork Reduction Act of

1995. OMB approved the information

collection requirements in the

regulations on November 24, 1995. The

information collection requirements in

these regulations will therefore become

effective with all of the other provisions

of the regulations on July 1, 1996.

Waiver of Proposed Rulemaking

It is the practice of the Secretary to

offer interested parties the opportunity

to comment on proposed regulations.

However, the publication of OMB

control numbers is purely technical and

does not establish substantive policy.

Therefore, the Secretary has determined

under 5 U.S.C. 553(b)(B), that public

comment on the regulations is

unnecessary and contrary to the public

interest.

List of Subjects in 34 CFR Part 685

Administrative practice and

procedure, Colleges and universities,

Education, Loan programs—education,

Reporting and recordkeeping

requirements, Student aid, Vocational

education.