[Federal Register: February 8, 2007 (Volume 72, Number 26)]
[Notices]               
[Page 6012-6013]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe07-83]                         

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PENSION BENEFIT GUARANTY CORPORATION

 
Required Interest Rate Assumption for Determining Variable-Rate 
Premium for Premium Payment Years Beginning in January 2007

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of interest rate assumption.

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SUMMARY: This notice informs the public of the interest rate assumption 
to be used for determining the variable-rate premium under the Pension 
Benefit Guaranty Corporation's regulation on premium rates, for premium 
payment years beginning in January 2007. This notice revises a 
previously-published notice to reflect the recent publication by the 
Internal Revenue Service of updated mortality tables. This interest 
rate assumption can be derived from rates published elsewhere, but is 
published in this notice for the convenience of the public. Interest 
rates are also published on the PBGC's Web site (http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.pbgc.gov).


DATES: The required interest rate assumption for determining the 
variable-rate premium under part 4006 applies to premium payment years 
beginning in January 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: 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.
    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)

[[Page 6013]]

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 required interest rate for plan 
years beginning on or after January 1, 2007, is 100 percent 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 (premium payment year).
    On January 12, 2007 (at 72 FR 1564), the Pension Benefit Guaranty 
Corporation (PBGC) published a notice informing the public of the 
interest rate assumption to be used for determining variable-rate 
premiums for premium payment years beginning in January 2007. In light 
of IRS's publication of the updated mortality tables, that required 
interest rate assumption has changed.
    The required interest rate to be used for determining variable-rate 
premiums for premium payment years beginning in January 2007 is 5.75 
percent (i.e., 100 percent of the 5.75 percent composite corporate bond 
rate for December 2006).
    PBGC will post the revised required interest rate on its Web site 
(http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.pbgc.gov).


    Issued in Washington, DC, on this 5th day of February 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-2087 Filed 2-7-07; 8:45 am]

BILLING CODE 7709-01-P