[Federal Register Volume 61, Number 73 (Monday, April 15, 1996)]
[Rules and Regulations]
[Page 16391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8810]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 2644
Notice and 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. This amendment adds to the
appendix of that regulation a new interest rate to be effective from
April 1, 1996, to June 30, 1996. The effect of the amendment is to
advise the public of the new rate.
EFFECTIVE DATE: April 1, 1996.
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 20005-4026; telephone
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, the Pension Benefit
Guaranty Corporation 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 8.25 percent,
which will be effective from April 1, 1996, through June 30, 1996. This
rate represents a decrease of 0.50 percent from the rate in effect for
the first quarter of 1996. This rate is based on the prime rate in
effect on March 15, 1996.
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 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
* * * * *
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Date of Rate
From To quotation (percent)
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* * * * *
04/01/96............................... 6/30/96 3/15/96 8.25
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Issued in Washington, DC, on this 3d day of April 1996.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 96-8810 Filed 4-12-96; 8:45 am]
BILLING CODE 7708-01-P
