On Sep. 19, PBGC updated interest assumption spreads component.
PBGC issued rule amending regulation on allocation of assets in single-employer plans.
Amends 29 CFR 4044.54 to prescribe spreads component of interest assumption under the asset allocation regulation for plans with valuation dates of Oct. 31 - Jan. 30, 2025
Follows PBGC Aug. 2023 proposed to update valuation assumptions, see #182407.
Final Rule
Assumptions are used for valuing benefits under terminating single-employer plans.
Amends regulation to specify the spreads used to determine the 4044 yield curve as of the last days of Oct., Nov., and Dec. of 2024, ( i.e., the fourth quarter 2024 spreads).
Spreads component of interest assumption in the asset allocation regulation updated so 4044 yield curve determined as soon as underlying bond yield curves available.
These amendments are merely technical; they ensure that use of PBGC's interest assumption continues to yield liabilities in line with group annuity prices.
PBGC finds that the public interest is best served by issuing this rule expeditiously.
Effectiveness
Final rule is effective as of Oct. 31, 2024.
Regulators
PBGC
Entity Types
Ins; Pension
Reference
89 FR 76730, 9/19/2024; Citation: 29 CFR 4044.54;
Functions
Actuarial and Valuation; Compliance; Financial; HR; Legal; Reporting; Resolution; Treasury
