Source: https://www.federalregister.gov/documents/2004/04/15/04-8588/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2018-03-20 14:02:12
Document Index: 743429697

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

A Rule by the Pension Benefit Guaranty Corporation on 04/15/2004
69 FR 19925
04-8588
https://www.federalregister.gov/d/04-8588 https://www.federalregister.gov/d/04-8588
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 May 2004. Interest assumptions are also published on the PBGC's Web site (http://www.pbgc.gov).
The PBGC's regulations prescribe actuarial assumptions—including interest assumptions—for valuing and paying plan benefits of terminating single-employer plans covered by title IV of the Employee Retirement Income Start Printed Page 19926Security Act of 1974. The interest assumptions are intended to reflect current conditions in the financial and annuity markets.
Accordingly, 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 May 2004, (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 May 2004, 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 May 2004.
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 3.90 percent for the first 20 years following the valuation date and 5.00 percent thereafter. These interest assumptions represent a decrease (from those in effect for April 2004) of 0.10 percent for the first 20 years following the valuation date and are otherwise unchanged.
The interest assumptions that the PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 3.00 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 are unchanged from those in effect for April 2004.
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during May 2004, 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 127, as set forth below, is added to the table. (The introductory text of the table is omitted.)
3. In appendix C to part 4022, Rate Set 127, as set forth below, is added to the table. (The introductory text of the table is omitted.)
May 2004 .0390 1-20 .0500 >20 N/A N/A
Issued in Washington, DC, on this 8th day of April 2004.
[FR Doc. 04-8588 Filed 4-14-04; 8:45 am]