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CCH® PENSION AND BENEFITS — 2/1/08

PBGC ends publication of certain interest rates in Federal Register

The Pension Benefit Guaranty Corporation (PBGC) has announced that it will cease publishing certain monthly interest rates and assumptions, including the variable rate premium, in the Federal Register and instead rely on web site publication.

Several regulations of the PBGC require the use of interest rates and assumptions that change monthly or quarterly and are set by the PBGC, while other regulations require the use of rates and assumptions which are not set by the PBGC. The PBGC has previously made these interest rates and assumptions available both through a Federal Register notice and through its web site.

The PBGC noted that plans subject to PBGC regulations are now required to make premium filings electronically through the PBGC web site. Web access is therefore required in order to fulfill the premium e-filing obligation. For this reason, the PBGC has concluded that, for rates not set by the PBGC, it is no longer necessary to duplicate the posting of interest rates and assumptions on its web site by also publishing the monthly Federal Register notices. Monthly publication of the rules amending the benefit payments and allocation regulations will continue because of the need to amend these regulations monthly to provide the interest rates and assumptions which are set by the PBGC.

The PBGC web page is at: www.pbgc.gov; the interest rates and assumptions are accessible from the "Practitioners Page."

CCH Note: Current PBGC interest rates are published in the CCH Pension Plan Guide at ¶52 and historical PBGC interest rates are set out beginning at ¶71.

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