Source: https://www.federalregister.gov/documents/2000/12/15/00-31990/benefits-payable-in-terminated-single-employer-plans-allocation-of-assets-in-single-employer-plans
Timestamp: 2018-08-15 11:30:50
Document Index: 106906813

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 12/15/2000
65 FR 78414
00-31990
https://www.federalregister.gov/d/00-31990 https://www.federalregister.gov/d/00-31990
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 January 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 January 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 January 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 January 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 6.70 Start Printed Page 78415percent for the first 20 years following the valuation date and 6.25 percent thereafter. These interest assumptions (in comparison with those in effect for December 2000) reflect a 5-year decrease in the period during which the initial rate applies (from a period of 25 years following the valuation date to a period of 20 years following the valuation date). The initial rate, in effect during the 20-year period, represents a decrease (from the initial rate in effect for December 2000) of 0.30 percent. The ultimate rate, in effect thereafter, is 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 a decrease (from those in effect for December 2000) 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 January 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 87, 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 87, as set forth below, is added to the table. (The introductory text of the table is omitted.)
January 2001 .0670 1-20 .0625 >20 N/A N/A
Issued in Washington, DC, on this 12th day of December 2000.
[FR Doc. 00-31990 Filed 12-14-00; 8:45 am]