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Notice

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

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Information about this document as published in the Federal Register.

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AGENCY:

Pension Benefit Guaranty Corporation.

ACTION:

Notice of interest rates and assumptions.

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 Start Printed Page 64894are 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 2001. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in January 2002.

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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.)

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SUPPLEMENTARY INFORMATION:

Variable-Rate Premiums

Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income Security Act of 1974 (ERISA) and § 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 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 required interest rate to be used in determining variable-rate premiums for premium payment years beginning in December 2001 is 4.35 percent (i.e., 85 percent of the 5.12 percent yield figure for November 2001).

The following table lists the required interest rates to be used in determining variable-rate premiums for premium payment years beginning between January 2001 and December 2001.

For premium payment years beginning in:The required interest rate is:
January 20014.67
February 20014.71
March 20014.63
April 20014.54
May 20014.80
June 20014.91
July 20014.82
August 20014.77
September 20014.66
October 20014.66
November 20014.52
December 20014.35

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 2002 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.

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Issued in Washington, DC, on this 11th day of December 2001.

Steven A. Kandarian,

Executive Director, Pension Benefit Guaranty Corporation.

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[FR Doc. 01-30964 Filed 12-13-01; 8:45 am]

BILLING CODE 7708-01-P