[Federal Register: December 14, 2007 (Volume 72, Number 240)]
[Notices]
[Page 71167-71168]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14de07-76]
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PENSION BENEFIT GUARANTY CORPORATION
Required Interest Rate Assumption for Determining Variable-Rate
Premium for Single-Employer Plans; 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 can be derived from rates published elsewhere), but are
collected and published in this notice for the convenience of the
public. Interest rates are also published on the PBGC's Web site
(http://www.pbgc.gov).
DATES: The required interest rate for determining the variable-rate
premium under part 4006 applies to premium payment years beginning in
December 2007. The interest assumptions for performing multiemployer
plan
[[Page 71168]]
valuations following mass withdrawal under part 4281 apply to valuation
dates occurring in January 2008.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager,
Regulatory and Policy Division, Legislative and Regulatory Department,
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,
DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4024.)
SUPPLEMENTARY INFORMATION:
Variable-Rate Premiums
Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income
Security Act of 1974 (ERISA) 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 (the ``required interest rate'') in determining a
single-employer plan's variable-rate premium. Pursuant to the Pension
Protection Act of 2006, for premium payment years beginning in 2006 or
2007, the required interest rate is the ``applicable percentage'' of
the annual rate of interest determined by the Secretary of the Treasury
on amounts invested conservatively in long-term investment grade
corporate bonds for the month preceding the beginning of the plan year
for which premiums are being paid (the ``premium payment year'').
On February 2, 2007 (at 72 FR 4955), the Internal Revenue Service
(IRS) published final regulations containing updated mortality tables
for determining current liability under section 412(l)(7) of the Code
and section 302(d)(7) of ERISA for plan years beginning on or after
January 1, 2007. As a result, in accordance with section
4006(a)(3)(E)(iii)(II) of ERISA, the ``applicable percentage'' to be
used in determining the required interest rate for plan years beginning
in 2007 is 100 percent.
The required interest rate to be used in determining variable-rate
premiums for premium payment years beginning in December 2007 is 6.14
percent (i.e., 100 percent of the 6.14 percent composite corporate bond
rate for November 2007 as determined by the Treasury).
The following table lists the required interest rates to be used in
determining variable-rate premiums for premium payment years beginning
between January 2007 and December 2007.
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The required
For premium payment years beginning in: interest rate
is:
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January 2007............................................ 5.75
February 2007........................................... 5.89
March 2007.............................................. 5.85
April 2007.............................................. 5.84
May 2007................................................ 5.98
June 2007............................................... 6.01
July 2007............................................... 6.32
August 2007............................................. 6.33
September 2007.......................................... 6.33
October 2007............................................ 6.23
November 2007........................................... 6.14
December 2007........................................... 6.14
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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 January 2008 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, DC, on this 10th day of December 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-24244 Filed 12-13-07; 8:45 am]
BILLING CODE 7709-01-P