Source: https://www.federalregister.gov/documents/2001/05/15/01-12198/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2017-08-21 06:58:27
Document Index: 751012663

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 05/15/2001
66 FR 26791
26791-26793 (3 pages)
https://www.federalregister.gov/d/01-12198 https://www.federalregister.gov/d/01-12198
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 Start Printed Page 26792the regulations to adopt interest assumptions for plans with valuation dates in June 2001. 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 June 2001, (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 June 2001, 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 June 2001.
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 6.60 percent for the first 20 years following the valuation date and 6.25 percent thereafter. These interest assumptions represent an increase (from those in effect for May 2001) of 0.20 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 5.00 percent for the period during which a benefit is in pay status, 4.25 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 an increase (from those in effect for May 2001) of 0.25 percent for the period during which a benefit is in pay status and the seven-year period directly preceding the benefit's placement 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 June 2001, 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 92, 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 92, as set forth below, is added to the table. (The introductory text of the table is omitted.)
End Amendment Part Start Appendix Start Printed Page 26793
June 2001 .0660 1-20 .0625 >20 N/A N/A
[FR Doc. 01-12198 Filed 5-14-01; 8:45 am]