Source: https://www.federalregister.gov/documents/2000/10/13/00-26329/interest-assumption-for-determining-variable-rate-premium-interest-on-late-premium-payments-interest
Timestamp: 2018-07-22 06:01:50
Document Index: 362317632

Matched Legal Cases: ['art 4006', 'art 4281', 'art 4007', 'art 4062', 'art 4219', '§\u20094007', 'art 4007', '§\u20094062', 'art 4062', 'art 4219', 'art 4281', 'art 4044', 'art 4044', 'art 4044', 'art 4044']

A Notice by the Pension Benefit Guaranty Corporation on 10/13/2000
The interest rate for determining the variable-rate premium under part 4006 applies to premium payment years beginning in October 2000. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in November 2000. The interest rates for late premium payments under part 4007 and for underpayments and overpayments of single-employer plan termination liability under part 4062 and multiemployer withdrawal liability under part 4219 apply to interest accruing during the fourth quarter (October through December) of 2000.
65 FR 60988
60988-60989 (2 pages)
00-26329
https://www.federalregister.gov/d/00-26329 https://www.federalregister.gov/d/00-26329
The assumed interest rate to be used in determining variable-rate premiums for premium payment years beginning in October 2000 is 4.96 percent (i.e., 85 percent of the 5.83 percent yield figure for September 2000).
The following table lists the assumed interest rates to be used in determining variable-rate premiums for premium payment years beginning between November 1999 and October 2000.
November 1999 5.32
Section 4007(b) of ERISA and § 4007.7(a) of the PBGC's regulation on Payment of Premiums (29 CFR part 4007) require the payment of interest on late premium payments at the rate established under section 6601 of the Internal Revenue Code. Similarly, § 4062.7 of the PBGC's regulation on Liability for Termination of Single-Employer Plans (29 CFR part 4062) requires that interest be charged or credited at the section 6601 rate on underpayments and overpayments of employer liability under section 4062 of ERISA. The section 6601 rate is established periodically (currently quarterly) by the Internal Revenue Service. The rate applicable to the fourth quarter (October through Start Printed Page 60989December) 2000, as announced by the IRS, is 9 percent.
10/1/94 3/31/95 9
4/1/95 6/30/95 10
7/1/95 3/31/96 9
4/1/96 6/30/96 8
4/1/00 12/31/00 9
Section 4219.32(b) of the PBGC's regulation on Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR part 4219) specifies the rate at which a multiemployer plan is to charge or credit interest on underpayments and overpayments of withdrawal liability under section 4219 of ERISA unless an applicable plan provision provides otherwise. For interest accruing during any calendar quarter, the specified rate is the average quoted prime rate on short-term commercial loans for the fifteenth day (or the next business day if the fifteenth day is not a business day) of the month preceding the beginning of the quarter, as reported by the Board of Governors of the Federal Reserve System in Statistical Release H.15 (“Selected Interest Rates”). The rate for the fourth quarter (October through December) of 2000 (i.e., the rate reported for September 15, 2000) is 9.50 percent.
10/1/94 12/31/94 7.75
1/1/95 3/31/95 8.50
4/1/95 9/30/95 9.00
10/1/95 3/31/96 8.75
4/1/96 6/30/97 8.25
7/1/00 12/31/00 9.50
The PBGC's regulation on Duties of Plan Sponsor Following Mass Withdrawal (29 CFR part 4281) prescribes the use of interest assumptions under the PBGC's regulation on Allocation of Assets in Single-employer Plans (29 CFR part 4044). The interest assumptions applicable to valuation dates in November 2000 under part 4044 are contained in an amendment to part 4044 published elsewhere in today's Federal Register. Tables showing the assumptions applicable to prior periods are codified in appendix B to 29 CFR part 4044.
Issued in Washington, DC, on this 6th day of October 2000.
[FR Doc. 00-26329 Filed 10-12-00; 8:45 am]