Interest Assumption for Determining Variable-Rate Premium; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal

[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Notices]
[Pages 48513-48514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23475]


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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 provides information about 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); the PBGC furnishes the information in this notice simply for the convenience of the public. Interest rates

are also published on the PBGC's home page (www.pbgc.gov).

Dates

The interest rate for determining the variable-rate premium under part 4006 applies to premium payment years beginning in September 1996. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in October 1996.

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 September 1996 (i.e., 80 percent of the yield figure for August 1996) is 5.47%. The following table lists the assumed interest rates to be used in determining variable rate premiums for premium payment years beginning in the one- year period ending with September 1996.

------------------------------------------------------------------------ The required For premium payment years beginning in interest rate is ------------------------------------------------------------------------ October 1995.................................................. 5.24 November 1995................................................. 5.10 December 1995................................................. 5.01 January 1996.................................................. 4.85 February 1996................................................. 4.84 March 1996.................................................... 4.99 April 1996.................................................... 5.28 May 1996...................................................... 5.43 June 1996..................................................... 5.54 July 1996..................................................... 5.65 August 1996................................................... 5.62 September 1996................................................ 5.47 ------------------------------------------------------------------------

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 October 1996 under part 4044 are contained in an amendment to part 4044 published elsewhere in today's Federal Register.

Issued in Washington, DC, on this 9th day of September 1996. Martin Slate, Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. 96-23475 Filed 9-12-96; 8:45 am] BILLING CODE 7708-01-P