[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