Source: https://www.federalregister.gov/documents/2006/07/14/E6-11101/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2017-11-21 10:57:04
Document Index: 537531822

Matched Legal Cases: ['art 4044', 'art 4022', 'art 4022', 'art 4044', 'art 4022', 'art 4022', 'art 4022', 'art 4022', 'art\n3', 'art 4022', 'art 4044']

A Rule by the Pension Benefit Guaranty Corporation on 07/14/2006
https://www.federalregister.gov/d/E6-11101 https://www.federalregister.gov/d/E6-11101
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The Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans prescribe interest assumptions for valuing and paying benefits under terminating single-employer plans. This final rule amends the regulations to adopt interest assumptions for plans with valuation dates in August 2006. Interest assumptions are also published on the PBGC's Web site (http://www.pbgc.gov).
This amendment (1) Adds to Appendix B to Part 4044 the interest assumptions for valuing benefits for allocation purposes in plans with valuation dates during August 2006, (2) adds to Appendix B to Part 4022 the interest assumptions for the PBGC to use for its own lump-sum payments in plans with valuation dates during August 2006, and (3) adds to Appendix C to Part 4022 the interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using the PBGC's historical methodology for valuation dates during August 2006.
For valuation of benefits for allocation purposes, the interest assumptions that the PBGC will use (set forth in Appendix B to part 4044) will be 6.40 percent for the first 20 years following the valuation date and 4.75 percent thereafter. These interest assumptions represent an increase (from those in effect for July 2006) of 0.10 percent for the first 20 years following the valuation date and are otherwise unchanged. These interest assumptions reflect the PBGC's recently updated mortality assumptions, which are effective for terminations on or after January 1, 2006. See the PBGC's final rule published December 2, 2005 (70 FR 72205), which is available at http://www.pbgc.gov/​docs/​05-23554.pdf. Because the updated mortality assumptions reflect improvements in mortality, these interest assumptions are higher than they would have been using the old mortality assumptions.
The interest assumptions that the PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 3.50 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit's placement in pay status. These interest assumptions represent no change from those in effect for July 2006. For private-sector payments, the interest assumptions (set forth in Appendix C to part 4022) will be the same as those used by the PBGC for determining and paying lump sums (set forth in Appendix B to part 4022).
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during August 2006, the PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication.
2. In appendix B to part 4022, Rate Set 154, as set forth below, is added to the table.
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3. In appendix C to part 4022, Rate Set 154, as set forth below, is added to the table.
5. In appendix B to part 4044, a new entry for August 2006, as set forth below, is added to the table.
August 2006 .0640 1-20 .0475 >20 N/A N/A
[FR Doc. E6-11101 Filed 7-13-06; 8:45 am]