Source: https://www.federalregister.gov/documents/2002/09/13/02-23346/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2017-08-19 18:19:10
Document Index: 680821033

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 09/13/2002
67 FR 57949
02-23346
https://www.federalregister.gov/d/02-23346 https://www.federalregister.gov/d/02-23346
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 October 2002. Interest assumptions are also published on the PBGC's Web site (http://www.pbgc.gov).
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 October 2002, (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 October 2002, 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 October 2002.
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 5.30 percent for the first 25 years following the valuation date and 4.25 percent thereafter. These interest assumptions represent a decrease (from those in effect for September 2002) of 0.10 percent for the first 25 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 4.00 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 represent a decrease (from those in effect for September 2002) 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 October 2002, the PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication.
Start List of Subjects Start Printed Page 57950
2. In appendix B to part 4022, Rate Set 108, 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 108, as set forth below, is added to the table. (The introductory text of the table is omitted.)
October 2002 .0530 1-25 .0425 >25 N/A N/A
Issued in Washington, DC, on this 6th day of September, 2002.
[FR Doc. 02-23346 Filed 9-12-02; 8:45 am]