[Federal Register Volume 62, Number 53 (Wednesday, March 19, 1997)]
[Proposed Rules]
[Page 12982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6908]



[[Page 12982]]

=======================================================================
-----------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 4044

RIN 1212-AA61


Allocation of Assets in Single-Employer Plans; Valuation of 
Benefits and Assets

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intent to propose rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation is considering 
amending its benefit valuation and asset allocation regulations to 
adopt more current mortality tables. This notice invites public comment 
on this and any other issue under the regulations.

DATES: Comments must be received on or before May 19, 1997.

ADDRESSES: Comments may be mailed to the Office of the General Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, 
DC 20005-4026, or delivered to Suite 340 at the above address. Comments 
also may be sent by Internet e-mail to [email protected]. Comments 
will be available for public inspection at the PBGC's Communications 
and Public Affairs Department, Suite 240.

FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General 
Counsel, or James L. Beller, Attorney, Office of the General Counsel, 
PBGC, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024 (202-
326-4179 for TTY and TDD).

SUPPLEMENTARY INFORMATION: The PBGC's interest assumption for valuing 
benefits, when combined with the PBGC's mortality assumption, is 
intended to reflect the market price of single-premium, 
nonparticipating group annuity contracts for terminating plans. In 
developing its interest assumptions, the PBGC uses data from surveys 
conducted by the American Council of Life Insurance. The PBGC currently 
uses a mortality assumption based on the 1983 Group Annuity Mortality 
Table in its benefit valuation and asset allocation regulations (29 CFR 
parts 4044 and 4281).
    In May 1995, the Society of Actuaries Group Annuity Valuation Table 
Task Force issued a report that recommends new mortality tables for a 
new Group Annuity Reserve Valuation Standard and a new Group Annuity 
Mortality Valuation Standard. In December 1996, the National 
Association of Insurance Commissioners adopted the new tables as models 
for determining reserve liabilities for group annuities.
    The PBGC is now considering incorporating the new tables into its 
regulations. The PBGC invites comments on the appropriateness of 
adopting the new tables and any need for modifications.
    The PBGC also invites comments on any other issues relating to its 
valuation and allocation regulations. In particular, the PBGC is 
interested in the following areas:
    (1) What additional annuity pricing information is available that 
the PBGC could use in reviewing its valuation assumptions?
    (2) What steps could the PBGC take to simplify the valuation and 
allocation process?

    Issued in Washington, D.C., this 14th day of March 1997.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-6908 Filed 3-18-97; 8:45 am]
BILLING CODE 7708-01-P