Source: https://www.federalregister.gov/documents/2000/08/15/00-20703/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2018-02-24 20:28:04
Document Index: 120748182

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

A Rule by the Pension Benefit Guaranty Corporation on 08/15/2000
49737-49739 (3 pages)
https://www.federalregister.gov/d/00-20703 https://www.federalregister.gov/d/00-20703
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 September 2000. 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 September 2000, (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 September 2000, 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 September 2000.
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 7.00 percent for the first 25 years following the valuation date and 6.25 percent thereafter. These interest assumptions represent a decrease (from those in effect for August 2000) 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 5.25 percent for the period during which a benefit is in pay status, 4.50 percent during the seven-year period directly preceding the benefit's placement in pay status, and 4.00 percent during any other years preceding the benefit's placement in pay status. These interest assumptions represent no change from those in effect for August 2000.
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). Start Printed Page 49738
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during September 2000, 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 83, 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 83, as set forth below, is added to the table. (The introductory text of the table is omitted.)
5. In appendix B to part 4044, a new entry, as set forth below, is added to the table. (The introductory text of the table is omitted.) Start Printed Page 49739
September 2000 .070 1-25 .0625 25 N/A N/A
[FR Doc. 00-20703 Filed 8-14-00; 8:45 am]