30160 Federal Register / Vol. 61, No. 116 / Friday, June 14, 1996 / Rules and Regulations

CFR part or section where

identified and described

Current

OMB control No.

* * * * *

1.1275–2 ................................... 1545–1450

1.1275–3 ................................... 1545–0887

1545–1353

1545–1450

1.1275–4 ................................... 1545–1450

1.1275–6 ................................... 1545–1450

* * * * *

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved: March 22, 1996.

Leslie Samuels,

Assistant Secretary of the Treasury.

[FR Doc. 96–14918 Filed 6–11–96; 8:45 am]

BILLING CODE 4830–01–P

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 July 1996, and

to multiemployer plans with valuation

dates in July 1996. The effect of these

amendments is to advise the public of

the adoption of these assumptions.

EFFECTIVE DATE: July 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 July 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 July 1996 and

multiemployer plans that have

undergone mass withdrawal and have

valuation dates during July 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. These

annuity and lump sum interest

assumptions are unchanged from those

in effect for June 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 July 1996,

and in multiemployer plans that have

undergone mass withdrawal and have

valuation dates during July 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

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.
Federal Register / Vol. 61, No. 116 / Friday, June 14, 1996 / Rules and Regulations 30161

2. In appendix B, Rate Set 33 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.

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

* * * * * * *

33 07–1–96 08–1–96 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 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 =

* * * * * * *

July 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 33 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 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.
30162 Federal Register / Vol. 61, No. 116 / Friday, June 14, 1996 / Rules and Regulations

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

* * * * * * *

33 07–1–96 08–1–96 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 =

* * * * * * *

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

Issued in Washington, DC, on this 11th day

of June 1996.

Martin Slate,

Executive Director, Pension Benefit Guaranty

Corporation

[FR Doc. 96–15153 Filed 6–13–96; 8:45 am]

BILLING CODE 7708–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 51

[FRL–5520–1]

Control of Air Pollution; Removal and

Modification of Obsolete, Superfluous

or Burdensome Rules

AGENCY: Environmental Protection

Agency.

ACTION: Revision of direct final rule.

SUMMARY: On April 11, 1996, EPA

published a direct final rule under the

Clean Air Act deleting superfluous,

obsolete or burdensome regulations

from the Code of Federal Regulations

(CFR). This action was published

without prior proposal because EPA

anticipated no adverse comment.

Because EPA received adverse

comments on a few discrete portions of

this action, EPA is withdrawing those

aspects the final rule. EPA will address

all public comments received on those

portions in a subsequent final rule based

on the proposed rule also published on

April 11, 1996.

EFFECTIVE DATE: June 14, 1996.

FOR FURTHER INFORMATION CONTACT:

Maureen Delaney, Office of Air and

Radiation, Office of Policy Analysis and

Review, (202) 260–7431.

SUPPLEMENTARY INFORMATION: On April

11, 1996, EPA published a final rule to

delete numerous obsolete, superfluous

or burdensome rules from the CFR (61

FR 16050). Among the rules to be

deleted were 40 CFR 51.100(o),

definition of reasonably available

control technology (RACT); § 51.101,

stipulations; § 51.110(g), attainment and

maintenance of national standards; and

§ 51.213, transportation control

measures. EPA promulgated this direct

final rulemaking without prior proposal

because the Agency viewed it as noncontroversial and anticipated no adverse

comments. The final rule was published

in the Federal Register with a provision

for a 30-day comment period. At the

same time, EPA published a proposed

rule which announced that in the event

that adverse comments were submitted

to EPA within 30 days of publication of

the rule in the Federal Register (61 FR

16068), those portions of the final rule

that were the subject of those comments

would convert to a proposed rule

through EPA’s publishing a notice

announcing withdrawal of those

provisions.

EPA received adverse comment

within the prescribed comment period

on the following rules: 40 CFR

51.100(o), 51.101, 51.110(g) and 51.213.

Therefore, EPA is withdrawing the April

11, 1996 final rulemaking action

pertaining to those rules. EPA will not

institute a second comment period on

this document. The portions of the April

11, 1996 rule that were not the subject

of adverse comments remain final and

effective as published.

List of Subjects in 40 CFR Part 51

Environmental protection, Air

pollution control.

Dated: June 6, 1996.

Carol M. Browner,

Administrator.

PART 51—[AMENDED]

40 CFR part 51 is amended as follows:

1. The authority citation for part 51

continues to read as follows:

Authority: 42 U.S.C. 7401–7671q.

2. Section 51.100 is amended by

adding paragraph (o) to read as follows:

§ 51.100 Definitions.

* * * * *

(o) Reasonably available control

technology (RACT) means devices,

systems, process modifications, or other

apparatus or techniques that are

reasonably available taking into

account:

(1) The necessity of imposing such

controls in order to attain and maintain

a national ambient air quality standard;