[Federal Register: December 15, 2003 (Volume 68, Number 240)]
[Notices]
[Page 69730-69731]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15de03-85]
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PENSION BENEFIT GUARANTY CORPORATION
Required Interest Rate 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 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
December 2003. The interest assumptions for
[[Page 69731]]
performing multiemployer plan valuations following mass withdrawal
under part 4281 apply to valuation dates occurring in January 2004.
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.
(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. The required interest
rate is the ``applicable percentage'' (currently 100 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''). (Although the Treasury Department has ceased
issuing 30-year securities, the Internal Revenue Service announces a
surrogate yield figure each month--based on the 30-year Treasury bond
maturing in February 2031--which the PBGC uses to determine the
required interest rate.)
The required interest rate to be used in determining variable-rate
premiums for premium payment years beginning in December 2003 is 5.12
percent.
The following table lists the required interest rates to be used in
determining variable-rate premiums for premium payment years beginning
between January 2003 and December 2003.
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The
required
For premium payment years beginning in: interest
rate is:
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January 2003............................................... 4.92
February 2003.............................................. 4.94
March 2003................................................. 4.81
April 2003................................................. 4.80
May 2003................................................... 4.90
June 2003.................................................. 4.53
July 2003.................................................. 4.37
August 2003................................................ 4.93
September 2003............................................. 5.31
October 2003............................................... 5.14
November 2003.............................................. 5.16
December 2003.............................................. 5.12
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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 January 2004 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 10th day of December, 2003.
Joseph H. Grant,
Deputy Executive Director and Chief Operating Officer, Pension Benefit
Guaranty Corporation.
[FR Doc. 03-30948 Filed 12-12-03; 8:45 am]
BILLING CODE 7708-01-P