[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1033]
[[Page Unknown]]
[Federal Register: January 14, 1994]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 2644
Collection of Withdrawal Liability; Adoption of New Interest Rate
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
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SUMMARY: This is an amendment to the Pension Benefit Guaranty
Corporation's regulation on Notice and Collection of Withdrawal
Liability. That regulation incorporates certain interest rates
published by another Federal agency. The effect of this amendment is to
add to the appendix of that regulation a new interest rate to be
effective from January 1, 1994, to March 21, 1994.
EFFECTIVE DATE: January 1, 1994.
FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General
Counsel, Office of the General Counsel, Pension Benefit Guaranty
Corporation, 1200 K Street, NW., Washington, DC 20005, 202-326-4024
(202-326-4179 for TTY and TDD). (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION: Under section 4219(c) of the Employee
Retirement Income Security Act of 1974, as amended (``ERISA''), the
Pension Benefit Guaranty Corporation (``the PBGC'') promulgated a final
regulation on Notice and Collection of Withdrawal Liability. That
regulation, codified at 29 CFR part 2644, deals with the rate of
interest to be charged by multiemployer pension plans on withdrawal
liability payments that are overdue or in default, or to be credited by
plans on overpayments of withdrawal liability. The regulation allows
plans to set rates, subject to certain restrictions. Where a plan does
not set the interest rate, Sec. 2644.3(b) of the regulation provides
that the rate to be charged or credited for any calendar quarter is the
average quoted prime rate on short-term commercial loans for the
fifteenth day (or the next business day if the fifteenth day is not a
business day) of the month preceding the beginning of the quarter, as
reported by the Board of Governors of the Federal Reserve System in
Statistical Release H.15 (``Selected Interest Rates'').
Because the regulation incorporates interest rates published in
Statistical Release H.15, that release is the authoritative source for
the rates that are to be applied under the regulation. As a convenience
to persons using the regulation, however, the PBGC collects the
applicable rates and republishes them in an appendix to part 2644. This
amendment adds to this appendix the interest rate of 6 percent, which
will be effective from January 1, 1994 through March 31, 1994. This
rate represents no change from the rate in effect for the fourth
quarter of 1993. This rate is based on the prime rate in effect on
December 15, 1993.
The appendix to 29 CFR part 2644 does not prescribe interest rates
under the regulation; the rates prescribed in the regulation are those
published in Statistical Release H.15. The appendix merely collects and
republishes the rates in a convenient place. Thus, the interest rates
in the appendix are informational only. Accordingly, the PBGC finds
that notice of and public comment on this amendment would be
unnecessary and contrary to the public interest. For the above reasons,
the PBGC also believes that good cause exists for making this amendment
effective immediately.
The PBGC has determined that this action is not a ``significant
regulatory action'' under the criteria set forth in Executive Order
12866, because it will not have an annual effect on the economy of $100
million or more or adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities; create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency; materially
alter the budgetary impact of entitlements, grants, user fees, or loan
programs or the rights and obligations of receipients thereof; or raise
novel legal or policy issues arising out of legal mandates, the
President's priorities, or the principles set forth in Executive Order
12866.
Because no general notice of proposed rulemaking is required for
this amendment, the Regulatory Flexibility Act of 1980 does not apply.
See 5 U.S.C. 601(2).
List of Subjects in 29 CFR Part 2644
Employee benefit plans, Pensions.
In consideration of the foregoing, part 2644 of Subchapter F of
Chapter XXVI of Title 29, Code of Federal Regulations, is amended as
follows:
PART 2644--NOTICE AND COLLECTION OF WITHDRAWAL LIABILITY
1. The authority citation for part 2644 continues to read as
follows:
Authority: 29 U.S.C. 1302(b)(3), 1399(c)(6).
2. Appendix A to part 2644 is amended by adding to the end of the
table a new entry to read as follows:
Appendix A to part 2644--Table of Interest Rates
* * * * *
------------------------------------------------------------------------
Rate
From To Date of (percent)
quotation
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* * * * * * *
01/01/94............................. 03/31/94 12/15/93 6
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Issued in Washington, DC, on this 11th day of January 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-1033 Filed 1-13-94; 8:45 am]
BILLING CODE 7708-01-M
