Source: https://www.federalregister.gov/documents/2008/08/15/E8-19061/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2018-03-23 10:06:47
Document Index: 523960600

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 08/15/2008
73 FR 47831
E8-19061
https://www.federalregister.gov/d/E8-19061 https://www.federalregister.gov/d/E8-19061
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 2008, (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 2008, 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 2008.
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 6.24 percent for the first 20 years following the valuation date and 5.31 percent thereafter. These interest assumptions represent an increase (from those in effect for August 2008) of 0.19 percent for the first 20 years following the valuation date and 0.19 percent for all years thereafter.
The interest assumptions that the PBGC will use for its own lump-sum payments (set forth in appendix B to part 4022) will be 3.50 percent for the period during which a benefit is in pay Start Printed Page 47832status 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 August 2008) of 0.25 percent in the immediate annuity rate and are otherwise unchanged. 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).
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during September 2008, 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 179, as set forth below, is added to the table.
3. In appendix C to part 4022, Rate Set 179, as set forth below, is added to the table.
5. In appendix B to part 4044, a new entry for September 2008, as set forth below, is added To the table.
September 2008 .0624 1-20 .0531 >20 N/A N/A
Issued in Washington, DC, on this 11th day of August 2008.
[FR Doc. E8-19061 Filed 8-14-08; 8:45 am]