PBGC Issues Final Rule Amending the Allocation of Assets for Single-Employer Pension Plans

The Pension Benefit Guaranty Corporation (PBGC) released a final rule to amend the 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. The new table is needed to compute the value of early retirement benefits and the total value of benefits under a plan.

This rule also updates the table to provide the mortality assumption for use with PBGC’s missing participants program for benefit determination dates in 2026.

The final regulations are effective January 1, 2026.