Federal Register #2026-06556

PBGC Final Rule: Updated Interest Assumptions for Single-Employer Pension Plans

This final rule from the Pension Benefit Guaranty Corporation (PBGC) updates technical regulations for pension plan asset allocation: - Government Buyer: - Pension Benefit Guaranty Corporation (PBGC), a U.S. federal agency - OEMs and Vendors: - No OEMs or vendors are involved; this is a regulatory update, not a procurement - Products/Services Requested: - No products or services are being requested or procured - The rule amends the interest assumption spreads for valuing benefits in terminating single-employer pension plans - Applies to plans with valuation dates from April 30, 2026, to July 30, 2026 - Unique or Notable Requirements: - The updated interest assumptions align liabilities with private sector group annuity prices - Used for regulatory purposes such as withdrawal liability calculations and financial reporting - Provides immediate technical guidance for actuaries and plan sponsors - No purchase quantities, part numbers, or procurement actions are specified

Description

This final rule by the Pension Benefit Guaranty Corporation amends regulations on Allocation of Assets in Single-Employer Plans to specify the spreads component of the interest assumption used for valuing benefits under terminating single-employer plans. The rule prescribes updated interest assumptions for plans with valuation dates from April 30, 2026, to July 30, 2026, which are also used for other regulatory purposes such as withdrawal liability and financial reporting. The amendments ensure that liabilities align with private sector group annuity prices and are effective April 30, 2026.

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