[Federal Register Volume 62, Number 53 (Wednesday, March 19, 1997)]
[Proposed Rules]
[Page 12982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6908]
[[Page 12982]]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
RIN 1212-AA61
Allocation of Assets in Single-Employer Plans; Valuation of
Benefits and Assets
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of intent to propose rulemaking.
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SUMMARY: The Pension Benefit Guaranty Corporation is considering
amending its benefit valuation and asset allocation regulations to
adopt more current mortality tables. This notice invites public comment
on this and any other issue under the regulations.
DATES: Comments must be received on or before May 19, 1997.
ADDRESSES: Comments may be mailed to the Office of the General Counsel,
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,
DC 20005-4026, or delivered to Suite 340 at the above address. Comments
also may be sent by Internet e-mail to reg.comments@pbgc.gov. Comments
will be available for public inspection at the PBGC's Communications
and Public Affairs Department, Suite 240.
FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General
Counsel, or James L. Beller, Attorney, Office of the General Counsel,
PBGC, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024 (202-
326-4179 for TTY and TDD).
SUPPLEMENTARY INFORMATION: The PBGC's interest assumption for valuing
benefits, when combined with the PBGC's mortality assumption, is
intended to reflect the market price of single-premium,
nonparticipating group annuity contracts for terminating plans. In
developing its interest assumptions, the PBGC uses data from surveys
conducted by the American Council of Life Insurance. The PBGC currently
uses a mortality assumption based on the 1983 Group Annuity Mortality
Table in its benefit valuation and asset allocation regulations (29 CFR
parts 4044 and 4281).
In May 1995, the Society of Actuaries Group Annuity Valuation Table
Task Force issued a report that recommends new mortality tables for a
new Group Annuity Reserve Valuation Standard and a new Group Annuity
Mortality Valuation Standard. In December 1996, the National
Association of Insurance Commissioners adopted the new tables as models
for determining reserve liabilities for group annuities.
The PBGC is now considering incorporating the new tables into its
regulations. The PBGC invites comments on the appropriateness of
adopting the new tables and any need for modifications.
The PBGC also invites comments on any other issues relating to its
valuation and allocation regulations. In particular, the PBGC is
interested in the following areas:
(1) What additional annuity pricing information is available that
the PBGC could use in reviewing its valuation assumptions?
(2) What steps could the PBGC take to simplify the valuation and
allocation process?
Issued in Washington, D.C., this 14th day of March 1997.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-6908 Filed 3-18-97; 8:45 am]
BILLING CODE 7708-01-P
