PBGC Tweaks Pension Math for Plan Terminations
Published Date: 6/30/2026
Rule
Summary
Starting July 31, 2026, the Pension Benefit Guaranty Corporation (PBGC) is updating how it calculates interest rates used to value benefits in single-employer pension plans that are ending. This change affects plan sponsors and employers involved in these plans, helping make sure benefit values match current market conditions. If you’re involved with these plans, get ready for new numbers that could impact how much money is set aside or owed.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Interest assumptions updated for terminations
Starting July 31, 2026, PBGC changes the spreads component of the interest assumption used to value benefits in terminating single-employer pension plans for valuation dates July 31, 2026 through October 30, 2026. If you are a plan sponsor or employer involved with a terminating single-employer plan, these new spreads can change the present value of annuities and therefore how much money must be set aside or is owed.
Assumptions required for other plan valuations
PBGC's specified interest assumption spreads (the 4044 yield curve spreads) are used beyond terminations: they are used to determine withdrawn employers' reallocation liability under multiemployer mass withdrawals (parts 4219 and 4281), and multiemployer plans that receive special financial assistance under part 4262 must use the interest assumption to determine withdrawal liability for a prescribed period. Plan sponsors must also use some or all of these assumptions for specified filings such as Annual Financial and Actuarial Information Reporting (part 4010) and for determining amounts to transfer to PBGC's Missing Participants Program (part 4050).
Third-quarter 2026 spreads published
The rule publishes the third-quarter 2026 spreads used to build the 4044 yield curve for maturity points from 0.5 to 30.0 years; for example, the third-quarter 2026 spread at the 0.5-year point is 0.71 percent and at the 30.0-year point is -0.11 percent. PBGC also notes the 4044 yield curve is posted monthly on PBGC's website so practitioners can determine liabilities as soon as the underlying bond yield curves are available.
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Key Dates
Department and Agencies
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