[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

* * * * *

------------------------------------------------------------------------
                                                     Date of      Rate  
                  From                       To     quotation  (percent)
------------------------------------------------------------------------
                                                                        
              *        *        *        *        *                     
04/01/96...............................    6/30/96    3/15/96       8.25
------------------------------------------------------------------------

    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