97-15459. Interest Assumption for Determining Variable-Rate Premium; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal

[Federal Register Volume 62, Number 114 (Friday, June 13, 1997)]
[Notices]
[Pages 32387-32388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15459]


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PENSION BENEFIT GUARANTY CORPORATION


Interest Assumption for Determining Variable-Rate Premium; 
Interest Assumptions for Multiemployer Plan Valuations Following Mass 
Withdrawal

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of interest rates and assumptions.

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SUMMARY: This notice informs the public of the interest rates and 
assumptions to be used under certain Pension Benefit Guaranty 
Corporation regulations. These rates and assumptions are published 
elsewhere (or are derivable from rates published elsewhere), but are 
collected

[[Page 32388]]

and published in this notice for the convenience of the public. 
Interest rates are also published on the PBGC's home page (http://
www.pbgc.gov).

DATES: The interest rate for determining the variable-rate premium 
under part 4006 applies to premium payment years beginning in June 
1997. The interest assumptions for performing multiemployer plan 
valuations following mass withdrawal under part 4281 apply to valuation 
dates occurring in July 1997.

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).

SUPPLEMENTARY INFORMATION:

Variable-Rate Premiums

    Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income 
Security Act of 1974 and Sec. 4006.4(b)(1) of the PBGC's regulation on 
Premium Rates (29 CFR part 4006) prescribe use of an assumed interest 
rate in determining a single-employer plan's variable-rate premium. The 
rate is a specified percentage (currently 80 percent) of the annual 
yield on 30-year Treasury securities for the month preceding the 
beginning of the plan year for which premiums are being paid (the 
``premium payment year''). The yield figure is reported in Federal 
Reserve Statistical Releases G.13 and H.15.
    The assumed interest rate to be used in determining variable-rate 
premiums for premium payment years beginning in June 1997 (i.e., 80 
percent of the yield figure for May 1997) is 5.55 percent. The 
following table lists the assumed interest rates to be used in 
determining variable-rate premiums for premium payment years beginning 
between July 1996 and June 1997.

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                                                           The required 
         For premium  payment years beginning in           interest rate
                                                                is      
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July 1996...............................................            5.65
August 1996.............................................            5.62
September 1996..........................................            5.47
October 1996............................................            5.62
November 1996...........................................            5.45
December 1996...........................................            5.18
January 1997............................................            5.24
February 1997...........................................            5.46
March 1997..............................................            5.35
April 1997..............................................            5.54
May 1997................................................            5.67
June 1997...............................................            5.55
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Multiemployer Plan Valuations Following Mass Withdrawal

    The PBGC's regulation on Duties of Plan Sponsor Following Mass 
Withdrawal (29 CFR part 4281) prescribes the use of interest 
assumptions under the PBGC's regulation on Allocation of Assets in 
Single-employer Plans (29 CFR part 4044). The interest assumptions 
applicable to valuation dates in July 1997 under part 4044 are 
contained in an amendment to part 4044 published elsewhere in today's 
Federal Register. Tables showing the assumptions applicable to prior 
periods are codified in appendix B to 29 CFR part 4044.

    Issued in Washington, D.C., on this 6th day of June 1997.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-15459 Filed 6-12-97; 8:45 am]
BILLING CODE 7708-01-P