PBGC Publishes List of Interest Rates
65 F.R. 69071-69072
- Institutional AuthorsPension Benefit Guaranty Corporation
- Code Sections
- Subject Area/Tax Topics
- Index TermsPBGCERISApension plans, benefits, valuationpension plans, multiemployer, benefits, valuationpension plans, assets, valuationpension plans, multiemployer, assets, valuationpension plans, terminationsinterest, overpaymentsinterest, underpayments
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-29441 (2 original pages)
- Tax Analysts Electronic Citation2000 TNT 223-35
=============== SUMMARY ===============
The Pension Benefit Guaranty Corporation has published a listing of interest rates and assumptions that are used under PBGC regulations.
Listed are the interest assumptions for determining the variable-rate premium for premium payment years beginning in November 2000, and the interest assumptions for making multiemployer plan valuations after mass withdrawals that apply to valuation dates occurring in December 2000.
=============== FULL TEXT ===============
PENSION BENEFIT GUARANTY CORPORATION
[1] AGENCY: Pension Benefit Guaranty Corporation.
[2] ACTION: Notice of interest rates and assumptions.
[3] 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 (www.pbgc.gov).
[4] DATES: The interest rate for determining the variable-rate premium under part 4006 applies to premium payment years beginning in November 2000. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in December 2000.
FOR FURTHER INFORMATION CONTACT:
[5] 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
[6] 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 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.
[7] The assumed interest rate to be used in determining variable-rate premiums for premium payment years beginning in November 2000 is 4.93 percent (i.e., 85 percent of the 5.80 percent yield figure for October 2000).
[8] The following table lists the assumed interest rates to be used in determining variable-rate premiums for premium payment years beginning between December 1999 and November 2000.
________________________________________________________________
The assumed
For premium payment years interest rate
beginning in: is:
________________________________________________________________
December 1999 5.23
January 2000 5.40
February 2000 5.64
March 2000 5.30
April 2000 5.14
May 2000 4.97
June 2000 5.23
July 2000 5.04
August 2000 4.97
September 2000 4.86
October 2000 4.96
November 2000 4.93
________________________________________________________________
Multiemployer Plan Valuations Following Mass Withdrawal
[9] 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 December 2000 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.
[10] Issued in Washington, DC, on this 8th day of November 2000.
David M. Strauss,
Executive Director, Pension
Benefit Guaranty Corporation
- Institutional AuthorsPension Benefit Guaranty Corporation
- Code Sections
- Subject Area/Tax Topics
- Index TermsPBGCERISApension plans, benefits, valuationpension plans, multiemployer, benefits, valuationpension plans, assets, valuationpension plans, multiemployer, assets, valuationpension plans, terminationsinterest, overpaymentsinterest, underpayments
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-29441 (2 original pages)
- Tax Analysts Electronic Citation2000 TNT 223-35