[Federal Register: February 12, 1999 (Volume 64, Number 29)]
[Notices]
[Page 7218]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe99-118]
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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 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 interest rate for determining the variable-rate premium
under part 4006 applies to premium payment years beginning in February
1999. The interest assumptions for performing multiemployer plan
valuations following mass withdrawal under part 4281 apply to valuation
dates occurring in March 1999.
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.
(For TTY/TDD users, 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 in determining a single-employer plan's variable-
rate premium. The rate is the ``applicable percentage'' (currently 85
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 February 1999 is 4.39
percent (i.e., 85 percent of the 5.16 percent yield figure for January
1999).
The following table lists the assumed interest rates to be used in
determining variable-rate premiums for premium payment years beginning
between March 1998 and February 1999.
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The assumed
For premium payment years beginning in: interest rate
is:
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March 1998.............................................. 5.01
April 1998.............................................. 5.06
May 1998................................................ 5.03
June 1998............................................... 5.04
July 1998............................................... 4.85
August 1998............................................. 4.83
September 1998.......................................... 4.71
October 1998............................................ 4.42
November 1998........................................... 4.26
December 1998........................................... 4.46
January 1999............................................ 4.30
February 1999........................................... 4.39
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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 March 1999 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 8th day of February 1999.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 99-3469 Filed 2-11-99; 8:45 am]
BILLING CODE 7708-01-P