[Federal Register Volume 72, Number 115 (Friday, June 15, 2007)]
[Notices]
[Pages 33260-33261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11560]


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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 
June 2007. The interest assumptions for performing multiemployer plan 
valuations following mass withdrawal under part 4281 apply to valuation 
dates occurring in July 2007.

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

[[Page 33261]]

``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 June 2007 is 6.01 
percent (i.e., 100 percent of the 6.01 percent composite corporate bond 
rate for May 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 July 2006 and June 2007.

------------------------------------------------------------------------
                                                          The required
        For premium payment years beginning in:           interest rate
                                                               is:
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July 2006.............................................              5.36
August 2006...........................................              5.36
September 2006........................................              5.19
October 2006..........................................              5.06
November 2006.........................................              5.05
December 2006.........................................              4.90
January 2007..........................................              5.75
February 2007.........................................              5.89
March 2007............................................              5.85
April 2007............................................              5.84
May 2007..............................................              5.98
June 2007.............................................              6.01
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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 2007 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 12th day of June 2007.
John H. Hanley,
Director, Legislative and Regulatory Department Pension Benefit 
Guaranty Corporation.
 [FR Doc. E7-11560 Filed 6-14-07; 8:45 am]
BILLING CODE 7709-01-P