Interest Assumption for Determining Variable-Rate Premium; Interest on Late Premium Payments; Interest on Underpayments and Overpayments of Single-Employer Plan Termination Liability and Multiemployer Withdrawal Liability; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal

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 October 1999 is 5.16 percent (i.e., 85 percent of the 6.07 percent yield figure for September 1999). The following table lists the assumed interest rates to be used in determining variable-rate premiums for premium payment years beginning between November 1998 and October 1999.

------------------------------------------------------------------------ The assumed For premium payment years beginning in interest rate is ------------------------------------------------------------------------ November 1998................................................ 4.26 December 1998................................................ 4.46 January 1999................................................. 4.30 February 1999................................................ 4.39 March 1999................................................... 4.56 April 1999................................................... 4.74 May 1999..................................................... 4.72 June 1999.................................................... 4.94 July 1999.................................................... 5.13 August 1999.................................................. 5.08 September 1999............................................... 5.16 October 1999................................................. 5.16 ------------------------------------------------------------------------

Late Premium Payments; Underpayments and Overpayments of Single- Employer Plan Termination Liability

Section 4007(b) of ERISA and Sec. 4007.7(a) of the PBGC's regulation on Payment of Premiums (29 CFR part 4007) require the payment of interest on late premium payments at the rate established under section 6601 of the Internal Revenue Code. Similarly, Sec. 4062.7 of the PBGC's regulation on

Liability for Termination of Single-employer Plans (29 CFR part 4062) requires that interest be charged or credited at the section 6601 rate on underpayments and overpayments of employer liability under section 4062 of ERISA. The section 6601 rate is established periodically (currently quarterly) by the Internal Revenue Service. The rate applicable to the fourth quarter (October through December) of 1999, as announced by the IRS, is 8 percent. The following table lists the late payment interest rates for premiums and employer liability for the specified time periods:

------------------------------------------------------------------------ Interest From Through rate (percent) ------------------------------------------------------------------------ 10/1/92....................................... 6/30/94 7 7/1/94........................................ 9/30/94 8 10/1/94....................................... 3/31/95 9 4/1/95........................................ 6/30/95 10 7/1/95........................................ 3/31/96 9 4/1/96........................................ 6/30/96 8 7/1/96........................................ 3/31/98 9 4/1/98........................................ 12/31/98 8 1/1/99........................................ 3/31/99 7 4/1/99........................................ 12/31/99 8 ------------------------------------------------------------------------

Underpayments and Overpayments of Multiemployer Withdrawal Liability

Section 4219.32(b) of the PBGC's regulation on Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR part 4219) specifies the rate at which a multiemployer plan is to charge or credit interest on underpayments and overpayments of withdrawal liability under section 4219 of ERISA unless an applicable plan provision provides otherwise. For interest accruing during any calendar quarter, the specified rate is the average quoted prime rate on short-term commercial loans for the fifteenth day (or the next business day if the fifteenth day is not a business day) of the month preceding the beginning of the quarter, as reported by the Board of Governors of the Federal Reserve System in Statistical Release H.15 (``Selected Interest Rates''). The rate for the fourth quarter (October through December) of 1999 (i.e., the rate reported for September 15, 1999) is 8.25 percent. The following table lists the withdrawal liability underpayment and overpayment interest rates for the specified time periods:

------------------------------------------------------------------------ Interest From Through rate (percent) ------------------------------------------------------------------------ 10/1/92....................................... 6/30/94 6.00 7/1/94........................................ 9/30/94 7.25 10/1/94....................................... 12/31/94 7.75 1/1/95........................................ 3/31/95 8.50 4/1/95........................................ 9/30/95 9.00 10/1/95....................................... 3/31/96 8.75 4/1/96........................................ 6/30/97 8.25 7/1/97........................................ 12/31/98 8.50 1/1/99........................................ 9/30/99 7.75 10/1/99....................................... 12/31/99 8.25 ------------------------------------------------------------------------

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 November 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 October 1999. David M. Strauss, Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. 99-26959 Filed 10-14-99; 8:45 am] BILLING CODE 7708-01-P