Source: https://www.federalregister.gov/documents/2005/11/15/05-22604/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2018-04-22 05:19:27
Document Index: 664044983

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

A Rule by the Pension Benefit Guaranty Corporation on 11/15/2005
https://www.federalregister.gov/d/05-22604 https://www.federalregister.gov/d/05-22604
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 Start Printed Page 69278the Employee Retirement Income Security Act of 1974. The interest assumptions are intended to reflect current conditions in the financial and annuity markets.
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 December 2005, (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 December 2005, 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 December 2005.
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 4.00 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 November 2005) of 0.30 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 2.75 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 an increase (from those in effect for November 2005) of 0.25 percent for the period during which a benefit is in pay status and are otherwise unchanged.
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during December 2005, 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 146, as set forth below, is added to the table.
3. In appendix C to part 4022, Rate Set 146, as set forth below, is added to the table.
Start Part Start Printed Page 69279
5. In appendix B to part 4044, a new entry for December 2005, as set forth below, is added to the table.
Issued in Washington, DC, on this 9th day of November 2005.
Acting Director, Legislative and Regulatory Department, Pension Benefit Guaranty Corporation.
[FR Doc. 05-22604 Filed 11-14-05; 8:45 am]