[Federal Register Volume 64, Number 136 (Friday, July 16, 1999)]
[Rules and Regulations]
[Page 38534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18404]
[[Page 38533]]
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Part V
Pension Benefit Guaranty Corporation
_______________________________________________________________________
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Interest Assumptions for
Valuing Benefits; Correction; Final Rule
Federal Register / Vol. 64, No. 136 / Friday, July 16, 1999 / Rules
and Regulations
[[Page 38534]]
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Interest
Assumptions for Valuing Benefits; Correction
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule; correction.
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SUMMARY: This document corrects a final rule document published by the
Pension Benefit Guaranty Corporation on July 15, 1999 (at 64 FR 38114).
The rule prescribes interest assumptions for valuing benefits under
terminating single-employer plans.
EFFECTIVE DATE: August 1, 1999.
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.
(For TTY/TDD users, call the Federal relay service toll-free at 1-800-
877-8339 and ask to be connected to 202-326-4024.)
SUPPLEMENTARY INFORMATION: The PBGC's regulation on Allocation of
Assets in Single-Employer Plans (29 CFR part 4044) prescribes actuarial
assumptions for valuing plan benefits of terminating single-employer
plans covered by title IV of the Employee Retirement Income Security
Act of 1974. Among the actuarial assumptions prescribed in part 4044
are interest assumptions. On July 15, 1999, the PBGC published in the
Federal Register (at 64 FR 38114) a final rule amending the regulation
to adopt interest assumptions for plans with valuation dates in August
1999. In that final rule document, the i1 rate was
erroneously published as 4.00 percent rather than 4.25 percent.
Accordingly, the final rule document is corrected as follows:
1. In the preamble, the last two sentences in the second full
paragraph on page 38115 are corrected to read as follows: ``For
benefits to be paid as lump sums, the interest assumptions to be used
by the PBGC 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.
The lump sum interest assumptions represent an increase (from those in
effect for July 1999) of 0.50 percent for the period during which a
benefit is in pay status and 0.25 percent for the seven years directly
preceding that period; they are otherwise unchanged.''
Appendix B to Part 4044 [Corrected]
2. On page 38115, the entry in Table II is corrected to read as
follows:
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For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
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* * * * * * *
70 08-1-99 09-1-99 5.00 4.25 4.00 4.00 7 8
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Issued in Washington, DC on this 15th day of July 1999.
David M. Strauss,
Exercutive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 99-18404 Filed 7-15-99; 10:19 am]
BILLING CODE 7708-01-P
