Aug 18 -- Pension Benefit Guaranty Corporation (PBGC) invites comments on a proposed rule that would update the interest, mortality, and expense assumptions used to determine the present value of benefits for a single-employer pension plan under subpart B of the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans, to determine components of mass withdrawal liability for a multiemployer pension plan, and for other purposes. Comments must be submitted on or before October 17, 2023,
This proposed rule would update the actuarial assumptions used to determine the present value of a single-employer plan's benefits when it terminates in a distress or involuntary termination, to determine the present value of multiemployer plan benefits in certain withdrawal liability calculations, and for other purposes.
This proposed rule would modify the interest, mortality, and expense assumptions for valuing benefits under subpart B to PBGC's regulation on Allocation of Assets in Single-Employer Plans (“benefits valuation regulation”) (29 CFR part 4044) to:
• Modernize the interest assumption structure by adopting a yield curve approach;
• Enable the use of market interest rates as of the date of liability measurement (i.e., the valuation date) as the basis for the interest assumption;
• Increase transparency by using a procedure based on publicly available yield curves as of the valuation date;
• Adopt a more recent mortality table along with a generational mortality improvement projection; and
• Simplify the expense assumption.
FRN:
https://www.federalregister.gov/d/2023-17521 [17 pages]
