Source: https://www.federalregister.gov/documents/2002/09/13/02-23345/required-interest-rate-assumption-for-determining-variable-rate-premium-interest-assumptions-for
Timestamp: 2017-10-21 03:36:10
Document Index: 65849710

Matched Legal Cases: ['art 4006', 'art 4281', 'art 4006', 'art 4281', 'art 4044', 'art 4044', 'art 4044', 'art 4044']

A Notice by the Pension Benefit Guaranty Corporation on 09/13/2002
The required interest rate for determining the variable-rate premium under part 4006 applies to premium payment years beginning in September 2002. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in October 2002.
67 FR 58086
02-23345
https://www.federalregister.gov/d/02-23345 https://www.federalregister.gov/d/02-23345
Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income Security Act of 1974 (ERISA) and section 4006.4(b)(1) of the PBGC's regulation on Premium Rates (29 CFR part 4006) prescribe use of an assumed interest rate (the “required interest rate”) in determining a single-employer plan's variable-rate premium. The required interest rate is the “applicable percentage” (currently 100 percent) of the annual yield on 30-year Treasury securities for the month preceding the beginning of the plan year for which premiums are being paid (the “premium payment year”). (Although the Treasury Department has ceased issuing 30-year securities, the Internal Revenue Service announces a surrogate yield figure each month—based on the 30-year Treasury bond maturing in February 2031—which the PBGC uses to determine the required interest rate.)
The required interest rate to be used in determining variable-rate premiums for premium payment years beginning in September 2002 is 5.08 percent.
The following table lists the required interest rates to be used in determining variable-rate premiums for premium payment years beginning between October 2001 and September 2002.
The PBGC's regulation on Duties of Plan Sponsor Following Mass Withdrawal (29 CFR part 4281) prescribes the use of interest assumptions under the PBGC's regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044). The interest assumptions applicable to valuation dates in October 2002 under part 4044 are contained in an amendment to part 4044 published elsewhere in today's Federal Register. Tables showing the assumptions applicable to prior periods are codified in appendix B to 29 CFR part 4044.
[FR Doc. 02-23345 Filed 9-12-02; 8:45 am]