Pension Benefit Guaranty Corporation Final Rule

2025-23799: Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age; Missing Participants Mortality Assumption

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Summary

This rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2026. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan. This rule also provides the mortality assumption for use with PBGC's missing participants program for determination dates in 2026.

The agency’s own summary, as published.

The rule, in full

1,832 words as published, December 23, 2025. View the original →

Federal Register, Volume 90 Issue 244 (Tuesday, December 23, 2025) [Federal Register Volume 90, Number 244 (Tuesday, December 23, 2025)] [Rules and Regulations] [Pages 59972-59976] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2025-23799] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 4044 Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age; Missing Participants Mortality Assumption

Agency

Pension Benefit Guaranty Corporation.

Action

Final rule. -----------------------------------------------------------------------

Summary

This rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans by substituting a [[Page 59973]] new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2026. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan. This rule also provides the mortality assumption for use with PBGC's missing participants program for determination dates in 2026.

Dates

This rule is effective January 1, 2026.

For Further Information Contact

Andrew Wilson ([email protected]), Attorney (202-860-8354), or Joseph Krettek ([email protected]), Assistant General Counsel (202-229-6772), Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-2101. If you are deaf or hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Supplementary Information

Background The Pension Benefit Guaranty Corporation (PBGC) administers the pension plan termination insurance program under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). PBGC's regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) sets forth (in subpart B) the methods for valuing plan benefits of terminating single-employer plans covered under title IV. Guaranteed benefits and benefit liabilities under a plan that is undergoing a distress termination must be valued in accordance with subpart B of part 4044. In addition, when PBGC terminates an underfunded plan involuntarily pursuant to ERISA section 4042(a), it uses the subpart B valuation rules to determine the amount of the plan's underfunding. Expected Retirement Age Low, Medium, High Tables Under Sec. 4044.51(b) of the asset allocation regulation, early retirement benefits are valued based on the annuity starting date, if a retirement date has been selected, or the expected retirement age, if the annuity starting date is not known on the valuation date. Sections 4044.55 through 4044.58 set forth rules for determining the expected retirement ages for plan participants entitled to early retirement benefits. Section 4044.58 contains tables to be used in determining the expected early retirement ages.\1\ --------------------------------------------------------------------------- \1\ In June 2024, PBGC issued a final rule at 89 FR 48291 updating the interest, mortality, and expense assumptions used to determine the present value of a single-employer plan's benefits when it terminates in a distress or involuntary termination. This rule moved the expected retirement ages tables from Appendix D in part 4044 to Sec. 4044.58. --------------------------------------------------------------------------- Table I to Sec. 4044.58 (Selection of Retirement Rate Category) is used to determine whether a participant has a low, medium, or high probability of retiring early. The determination is based on the year a participant would reach ``unreduced retirement age'' (URA) (i.e., the earlier of the normal retirement age or the age at which an unreduced benefit is first payable) and the participant's monthly benefit at the unreduced retirement age. The table applies only to plans with valuation dates in the current year and is updated annually by PBGC to reflect changes in the cost of living. Tables II-A, II-B, and II-C (Expected Retirement Ages for Individuals in the Low, Medium, and High Categories respectively) are used to determine the expected retirement age after the probability of early retirement has been determined using Table I. These tables establish, by probability category, the expected retirement age based on both the earliest age a participant could retire under the plan and the unreduced retirement age. This expected retirement age is used to compute the value of the early retirement benefit and, thus, the total value of benefits under the plan. This document amends Sec. 4044.58 to replace Table I-25 with Table I-26 to provide an updated correlation, appropriate for calendar year 2026, between the amount of a participant's benefit and the probability that the participant will elect early retirement. Table I-26 will be used to value benefits in plans with valuation dates during calendar year 2026. Missing Participants Mortality Assumptions PBGC's regulation on Missing Participants (29 CFR part 4050) provides that the mortality assumption used to determine certain amounts to be transferred on behalf of a missing participant from a terminating defined benefit plan to PBGC is the mortality table in Sec. 4044.53(h). The table currently provides the mortality assumption for benefit determination dates on or after July 31, 2024, but before January 1, 2026.\2\ This rule updates the table to provide the mortality assumption for benefit determination dates in 2026. --------------------------------------------------------------------------- \2\ PBGC's June 2024 final rule does not apply to calculations where the valuation date is before July 31, 2024. --------------------------------------------------------------------------- Compliance With Regulatory Requirements PBGC has determined that notice of, and public comment on, this rule are impracticable, unnecessary, and contrary to the public interest. PBGC's update of Sec. 4044.58 and Sec. 4044.53(h) for calendar year 2026 are routine. If a plan has a valuation date in 2026, the plan administrator needs the updated table in Sec. 4044.58 being promulgated in this rule to value benefits. Similarly, if a plan is transferring amounts on behalf of missing participants under part 4050, the plan administrator needs the updated mortality table in Sec. 4044.53(h) for benefit determination dates in 2026. Accordingly, PBGC finds that the public interest is best served by issuing these tables expeditiously, without an opportunity for notice and comment, and that good cause exists for making the table set forth in this amendment effective less than 30 days after publication to allow the use of the proper tables to determine the value benefits for dates in early 2026. PBGC has determined that this action is not a ``significant regulatory action'' under the criteria set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this regulation, the Regulatory Flexibility Act of 1980 does not apply (5 U.S.C. 601(2)). List of Subjects in 29 CFR Part 4044 Employee benefit plans, Pension insurance. In consideration of the foregoing, 29 CFR part 4044 is amended as follows: PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS 0

1. The authority citation for part 4044 continues to read as follows:

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. 0

2. Amend Sec. 4044.53 by revising table 4 to paragraph (h) to read as

follows: Sec. 4044.53 Mortality assumptions. * * * * * (h) * * * [[Page 59974]] Table 4 to Paragraph (h)--Missing Participants Unisex Mortality Table ---------------------------------------------------------------------------------------------------------------- Benefit Benefit Benefit Age determination determination determination dates in 2024 dates in 2025 dates in 2026 ---------------------------------------------------------------------------------------------------------------- 0...................................................... 0.00207 0.00204 0.00202 1...................................................... 0.00015 0.00014 0.00014 2...................................................... 0.00010 0.00009 0.00009 3...................................................... 0.00008 0.00007 0.00007 4...................................................... 0.00006 0.00006 0.00006 5...................................................... 0.00006 0.00005 0.00005 6...................................................... 0.00005 0.00005 0.00005 7...................................................... 0.00005 0.00005 0.00005 8...................................................... 0.00004 0.00004 0.00004 9...................................................... 0.00004 0.00004 0.00003 10..................................................... 0.00004 0.00004 0.00004 11..................................................... 0.00004 0.00004 0.00004 12..................................................... 0.00005 0.00005 0.00005 13..................................................... 0.00006 0.00006 0.00006 14..................................................... 0.00008 0.00007 0.00007 15..................................................... 0.00009 0.00009 0.00008 16..................................................... 0.00010 0.00010 0.00010 17..................................................... 0.00012 0.00012 0.00012 18..................................................... 0.00014 0.00014 0.00014 19..................................................... 0.00016 0.00015 0.00015 20..................................................... 0.00016 0.00016 0.00016 21..................................................... 0.00017 0.00016 0.00016 22..................................................... 0.00017 0.00017 0.00017 23..................................................... 0.00018 0.00018 0.00018 24..................................................... 0.00019 0.00019 0.00019 25..................................................... 0.00020 0.00019 0.00019 26..................................................... 0.00021 0.00020 0.00020 27..................................................... 0.00022 0.00021 0.00021 28..................................................... 0.00023 0.00022 0.00022 29..................................................... 0.00023 0.00023 0.00023 30..................................................... 0.00025 0.00025 0.00024 31..................................................... 0.00026 0.00026 0.00026 32..................................................... 0.00028 0.00027 0.00027 33..................................................... 0.00030 0.00030 0.00030 34..................................................... 0.00032 0.00031 0.00031 35..................................................... 0.00034 0.00034 0.00033 36..................................................... 0.00036 0.00036 0.00035 37..................................................... 0.00038 0.00038 0.00037 38..................................................... 0.00040 0.00040 0.00039 39..................................................... 0.00043 0.00042 0.00041 40..................................................... 0.00044 0.00044 0.00043 41..................................................... 0.00046 0.00045 0.00044 42..................................................... 0.00048 0.00047 0.00046 43..................................................... 0.00049 0.00049 0.00048 44..................................................... 0.00052 0.00051 0.00050 45..................................................... 0.00054 0.00053 0.00052 46..................................................... 0.00058 0.00057 0.00056 47..................................................... 0.00061 0.00060 0.00059 48..................................................... 0.00065 0.00064 0.00064 49..................................................... 0.00070 0.00069 0.00068 50..................................................... 0.00076 0.00076 0.00075 51..................................................... 0.00085 0.00084 0.00083 52..................................................... 0.00095 0.00094 0.00092 53..................................................... 0.00106 0.00105 0.00103 54..................................................... 0.00120 0.00118 0.00117 55..................................................... 0.00143 0.00141 0.00139 56..................................................... 0.00177 0.00174 0.00172 57..................................................... 0.00205 0.00202 0.00200 58..................................................... 0.00239 0.00235 0.00232 59..................................................... 0.00276 0.00273 0.00269 60..................................................... 0.00321 0.00317 0.00313 61..................................................... 0.00370 0.00365 0.00360 62..................................................... 0.00441 0.00434 0.00428 63..................................................... 0.00514 0.00507 0.00500 64..................................................... 0.00577 0.00570 0.00562 65..................................................... 0.00658 0.00650 0.00641 66..................................................... 0.00748 0.00738 0.00729 67..................................................... 0.00834 0.00823 0.00813 68..................................................... 0.00928 0.00916 0.00904 69..................................................... 0.01034 0.01021 0.01008 [[Page 59975]] 70..................................................... 0.01155 0.01141 0.01127 71..................................................... 0.01294 0.01278 0.01262 72..................................................... 0.01452 0.01435 0.01417 73..................................................... 0.01631 0.01611 0.01592 74..................................................... 0.01837 0.01815 0.01794 75..................................................... 0.02073 0.02049 0.02025 76..................................................... 0.02345 0.02317 0.02291 77..................................................... 0.02656 0.02626 0.02596 78..................................................... 0.03012 0.02979 0.02945 79..................................................... 0.03417 0.03382 0.03345 80..................................................... 0.03899 0.03862 0.03823 81..................................................... 0.04395 0.04356 0.04315 82..................................................... 0.04959 0.04916 0.04872 83..................................................... 0.05595 0.05549 0.05502 84..................................................... 0.06317 0.06267 0.06217 85..................................................... 0.07138 0.07083 0.07029 86..................................................... 0.08063 0.08005 0.07947 87..................................................... 0.09107 0.09044 0.08982 88..................................................... 0.10286 0.10220 0.10154 89..................................................... 0.11596 0.11526 0.11457 90..................................................... 0.13036 0.12962 0.12889 91..................................................... 0.14540 0.14463 0.14387 92..................................................... 0.16090 0.16012 0.15933 93..................................................... 0.17679 0.17601 0.17522 94..................................................... 0.19284 0.19206 0.19127 95..................................................... 0.20898 0.20822 0.20745 96..................................................... 0.22620 0.22545 0.22467 97..................................................... 0.24386 0.24311 0.24234 98..................................................... 0.26196 0.26123 0.26048 99..................................................... 0.28059 0.27986 0.27912 100.................................................... 0.29960 0.29887 0.29814 101.................................................... 0.31891 0.31817 0.31746 102.................................................... 0.33825 0.33748 0.33676 103.................................................... 0.35757 0.35673 0.35595 104.................................................... 0.37670 0.37583 0.37502 105.................................................... 0.39521 0.39436 0.39354 106.................................................... 0.41327 0.41245 0.41166 107.................................................... 0.43080 0.42999 0.42921 108.................................................... 0.44743 0.44667 0.44595 109.................................................... 0.46339 0.46271 0.46204 110.................................................... 0.47628 0.47568 0.47508 111.................................................... 0.48468 0.48417 0.48366 112.................................................... 0.49268 0.49226 0.49184 113.................................................... 0.49666 0.49634 0.49602 114.................................................... 0.49795 0.49773 0.49751 115.................................................... 0.49928 0.49915 0.49903 116.................................................... 0.49960 0.49953 0.49945 117.................................................... 0.49978 0.49973 0.49968 118.................................................... 0.49995 0.49993 0.49990 119.................................................... 0.50000 0.50000 0.50000 120.................................................... 1.00000 1.00000 1.00000 ---------------------------------------------------------------------------------------------------------------- 0

3. Amend Sec. 4044.58 by revising table 1 to the section to read as

follows: Sec. 4044.58 Tables used to determine expected retirement age. * * * * * Table 1 to Sec. 4044.58--Table I-26--Selection of Retirement Rate Category [For valuation dates in 2026 \1\] ---------------------------------------------------------------------------------------------------------------- Participant's retirement rate category is-- ------------------------------------------------------------------------------- If participant reaches URA in Medium \3\ if monthly benefit at URA High \4\ if year-- Low \2\ if monthly is-- monthly benefit at benefit at URA is ---------------------------------------- URA is greater less than-- From-- To-- than-- ---------------------------------------------------------------------------------------------------------------- 2027............................ 849 849 3,587 3,587 2028............................ 869 869 3,670 3,670 [[Page 59976]] 2029............................ 888 888 3,750 3,750 2030............................ 908 908 3,833 3,833 2031............................ 928 928 3,917 3,917 2032............................ 948 948 4,003 4,003 2033............................ 969 969 4,092 4,092 2034............................ 990 990 4,182 4,182 2035............................ 1,012 1,012 4,274 4,274 2036 or later................... 1,034 1,034 4,368 4,368 ---------------------------------------------------------------------------------------------------------------- \1\ Applicable tables for valuation dates before 2026 are available on PBGC's website (www.pbgc.gov). \2\ Table II-A. \3\ Table II-B. \4\ Table II-C. * * * * * Joseph Krettek, Assistant General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2025-23799 Filed 12-22-25; 8:45 am] BILLING CODE 7709-02-P

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Amends 1 part of the Code of Federal Regulations — the standing rules this notice rewrites.

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