[Federal Register Volume 60, Number 9 (Friday, January 13, 1995)] [Rules and Regulations] [Pages 3084-3085] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-967] ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 2644 Notice and Collection of Withdrawal Liability; Adoption of New Interest Rate agency: Pension Benefit Guaranty Corporation. action: Final rule. ----------------------------------------------------------------------- summary: This is an amendment to the Pension Benefit Guaranty Corporation's regulation on Notice and Collection of Withdrawal Liability. That regulation incorporates certain interest rates published by another Federal agency. This amendment adds to the appendix of that regulation a new interest rate to be effective from January 1, 1995, to March 31, 1995. The effect of the amendment is to advise the public of the new rate. effective date: January 1, 1995. 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 20005-4026; telephone 202-326-4024 (202-326-4179 for TTY and TDD). These are not toll-free numbers. supplementary information: Under section 4219(c) of the Employee Retirement Income Security Act of 1974, as amended (``ERISA''), the Pension Benefit Guaranty Corporation (``the PBGC'') promulgated a final regulation on Notice and Collection of Withdrawal Liability. That regulation, codified at 29 CFR part 2644, deals with the rate of interest to be charged by multiemployer pension plans on withdrawal liability payments that are overdue or in default, or to be credited by plans on overpayments of withdrawal liability. The regulation allows plans to set rates, subject to certain restrictions. Where a plan does not set the interest rate, Sec. 2644.3(b) of the regulation provides that the rate to be charged or credited for any calendar quarter 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''). Because the regulation incorporates interest rates published in Statistical Release H.15, that release is the authoritative source for the rates that are to be applied under the regulation. As a convenience to persons using the regulation, however, the PBGC collects the applicable rates and republishes them in an appendix to part 2644. This amendment adds to this appendix the interest rate of 8.50 percent, which will [[Page 3085]] be effective from January 1, 1995, through March 31, 1995. This rate represents an increase of .75 percent from the rate in effect for the fourth quarter of 1994. This rate is based on the prime rate in effect on December 15, 1994. The appendix to 29 CFR part 2644 does not prescribe interest rates under the regulation; the rates prescribed in the regulation are those published in Statistical Release H.15. The appendix merely collects and republishes the rates in a convenient place. Thus, the interest rates in the appendix are informational only. Accordingly, the PBGC finds that notice of and public comment on this amendment would be unnecessary and contrary to the public interest. For the above reasons, the PBGC also believes that good cause exists for making this amendment effective immediately. The PBGC has determined that this action is not a ``significant regulatory action'' under the criteria set forth in Executive Order 12866, because it will not have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). List of Subjects in 29 CFR Part 2644 Employee benefit plans, Pensions. In consideration of the foregoing, part 2644 of subchapter F of chapter XXVI of title 29, Code of Federal Regulations, is amended as follows: PART 2644--NOTICE AND COLLECTION OF WITHDRAWAL LIABILITY 1. The authority citation for part 2644 continues to read as follows: Authority: 29 U.S.C. 1302(b)(3), 1399(c)(6). 2. Appendix A to part 2644 is amended by adding to the end of the table a new entry to read as follows: Appendix A to Part 2644--Table of Interest Rates * * * * * ------------------------------------------------------------------------ Date of Rate From To quotation (percent) ------------------------------------------------------------------------ * * * * * 1/01/95............................ 3/31/95 12/15/94 8.50 ------------------------------------------------------------------------ Issued in Washington, DC, on this 10th day of January 1995. Martin Slate, Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. 95-967 Filed 1-12-95; 8:45 am] BILLING CODE 7708-01-M