Rule2025-18461
Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing Benefits
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 24, 2025
Effective
October 31, 2025
Issuing agencies
Pension Benefit Guaranty Corporation
Abstract
This final rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans to prescribe the spreads component of the interest assumption under the asset allocation regulation for plans with valuation dates of October 31, 2025-January 30, 2026. These interest assumptions are used for valuing benefits under terminating single-employer plans and for other purposes.
Full Text
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<title>Federal Register, Volume 90 Issue 183 (Wednesday, September 24, 2025)</title>
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[Federal Register Volume 90, Number 183 (Wednesday, September 24, 2025)]
[Rules and Regulations]
[Pages 45918-45920]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18461]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Interest
Assumptions for Valuing Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
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SUMMARY: This final rule amends the Pension Benefit Guaranty
Corporation's regulation on Allocation of Assets in Single-Employer
Plans to prescribe the spreads component of the interest assumption
under the asset allocation regulation for plans with valuation dates of
October 31, 2025-January 30, 2026. These interest assumptions are used
for valuing benefits under terminating single-employer plans and for
other purposes.
DATES: Effective October 31, 2025.
FOR FURTHER INFORMATION CONTACT: Monica O'Donnell
(<a href="/cdn-cgi/l/email-protection#731c171c1d1d161f1f5d1e1c1d1a101233031114105d141c05"><span class="__cf_email__" data-cfemail="7e111a1110101b121250131110171d1f3e0e1c191d50191108">[email protected]</span></a>), Attorney, Regulatory Affairs Division,
Office of the General Counsel, Pension Benefit Guaranty Corporation,
445 12th Street SW, Washington, DC 20024-2101, 202-229-5507. 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: PBGC's regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part 4044) prescribes actuarial
assumptions--including an interest assumption--for valuing benefits
under terminating single-employer plans covered by title IV of the
Employee Retirement Income Security Act of 1974 (ERISA). The interest
assumption is also posted on PBGC's website (<a href="http://www.pbgc.gov">www.pbgc.gov</a>).
PBGC uses the interest assumption in Sec. 4044.54 to determine the
present value of annuities in an involuntary or distress termination of
a single-employer plan under the asset allocation regulation. The
assumptions in part 4044 of PBGC's regulations are also used in other
situations where it is appropriate for liabilities to align with
private sector group annuity prices. For example, PBGC's regulations on
Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR
part 4219) and Duties of Plan Sponsor Following Mass Withdrawal (29 CFR
part 4281) provide that these assumptions are used to value liabilities
for purposes of determining withdrawn employers' reallocation liability
in the event of a mass withdrawal from a multiemployer plan.
Multiemployer plans that receive special financial assistance under the
regulation on Special Financial Assistance by PBGC (29 CFR part 4262)
must, as a condition of receiving special financial assistance, use the
interest assumption to determine withdrawal liability for a prescribed
period. Additionally, plan sponsors are required to use some, or all of
these assumptions for specified purposes (e.g., reporting benefit
liabilities in filings required under PBGC's regulation on Annual
Financial and Actuarial Information Reporting (29 CFR part 4010) or
determining certain amounts to transfer to PBGC's Missing Participants
Program on behalf of a missing participant of a terminating defined
benefit plan under PBGC's regulation on Missing Participants (29 CFR
part 4050)) and may use them for other purposes (e.g., to ensure that
plan spinoffs comply with section 414(l) of the Internal Revenue Code).
Part 4044 of PBGC's regulations provides that the interest
assumption for part 4044 purposes is a yield curve (i.e., the ``4044
yield curve'') that is based on a blend of two publicly available bond
yield curves that is adjusted to the extent necessary so that the
resulting liabilities align with group annuity prices. The adjustments
are referred to as ``spreads.'' PBGC determines and publishes spreads
quarterly based on survey data on pricing of private-sector group
annuities. PBGC posts the 4044 yield curve on its website at
<a href="http://www.pbgc.gov">www.pbgc.gov</a> each month shortly after its underlying data become
available. In addition, practitioners are able to determine the 4044
yield curve as of the end of any month using the publicly available
bond yield curves and the spreads specified in the regulation.
This rule amends the regulation to specify the spreads used to
determine the 4044 yield curve as of the last days of October,
November, and December of 2025 (i.e., the ``fourth quarter 2025
spreads''). Due to space constraints, table 1 to paragraph (e) shows
spreads for only the most recent four quarters. Historical spreads are
available on <a href="http://www.pbgc.gov">www.pbgc.gov</a>, along with more recent spreads.
[[Page 45919]]
Need for Immediate Guidance
PBGC has determined that notice of, and public comment on, this
rule are impracticable, unnecessary, and contrary to the public
interest. PBGC routinely updates the spreads component of the interest
assumption in the asset allocation regulation so that the 4044 yield
curve may be determined as soon as the underlying bond yield curves
become 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. Accordingly, PBGC finds that the
public interest is best served by issuing this rule expeditiously,
without an opportunity for notice and comment, and that good cause
exists for making the assumptions set forth in this amendment effective
less than 30 days after publication.
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 amendment, the Regulatory Flexibility Act of 1980 does not apply.
See 5 U.S.C. 601(2).
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension insurance, Pensions.
For the reasons stated in the preamble, PBGC amends 29 CFR part
4044 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. In Sec. 4044.54, revise table 1 to paragraph (e) to read as
follows:
Sec. 4044.54 Interest assumptions.
* * * * *
(e) * * *
(3) * * *
Table 1 to Paragraph (e)--Spreads
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First quarter Second quarter Third quarter Fourth quarter
Maturity point 2025 spreads 2025 spreads 2025 spreads 2025 spreads
(percent) (percent) (percent) (percent)
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0.5................................. 0.36 0.38 0.40 0.49
1.0................................. 0.36 0.38 0.40 0.49
1.5................................. 0.36 0.37 0.40 0.49
2.0................................. 0.36 0.37 0.40 0.49
2.5................................. 0.36 0.37 0.40 0.49
3.0................................. 0.36 0.37 0.40 0.49
3.5................................. 0.36 0.37 0.39 0.48
4.0................................. 0.36 0.37 0.39 0.48
4.5................................. 0.36 0.37 0.39 0.47
5.0................................. 0.36 0.37 0.39 0.47
5.5................................. 0.35 0.36 0.38 0.46
6.0................................. 0.35 0.36 0.38 0.46
6.5................................. 0.35 0.35 0.37 0.44
7.0................................. 0.35 0.35 0.37 0.44
7.5................................. 0.35 0.35 0.36 0.43
8.0................................. 0.35 0.35 0.36 0.43
8.5................................. 0.34 0.34 0.34 0.41
9.0................................. 0.34 0.34 0.34 0.41
9.5................................. 0.34 0.33 0.33 0.39
10.0................................ 0.34 0.33 0.33 0.39
10.5................................ 0.33 0.32 0.32 0.37
11.0................................ 0.33 0.32 0.32 0.37
11.5................................ 0.33 0.32 0.30 0.34
12.0................................ 0.33 0.32 0.30 0.34
12.5................................ 0.32 0.31 0.28 0.32
13.0................................ 0.32 0.31 0.28 0.32
13.5................................ 0.32 0.30 0.27 0.30
14.0................................ 0.32 0.30 0.27 0.30
14.5................................ 0.31 0.29 0.25 0.27
15.0................................ 0.31 0.29 0.25 0.27
15.5................................ 0.30 0.28 0.24 0.25
16.0................................ 0.30 0.28 0.24 0.25
16.5................................ 0.30 0.27 0.22 0.23
17.0................................ 0.30 0.27 0.22 0.23
17.5................................ 0.29 0.26 0.20 0.20
18.0................................ 0.29 0.26 0.20 0.20
18.5................................ 0.29 0.25 0.19 0.18
19.0................................ 0.29 0.25 0.19 0.18
19.5................................ 0.28 0.24 0.17 0.16
20.0................................ 0.28 0.24 0.17 0.16
20.5................................ 0.28 0.23 0.16 0.14
21.0................................ 0.28 0.23 0.16 0.14
21.5................................ 0.27 0.22 0.14 0.12
22.0................................ 0.27 0.22 0.14 0.12
22.5................................ 0.27 0.22 0.13 0.10
23.0................................ 0.27 0.22 0.13 0.10
23.5................................ 0.26 0.21 0.12 0.08
24.0................................ 0.26 0.21 0.12 0.08
[[Page 45920]]
24.5................................ 0.26 0.20 0.11 0.07
25.0................................ 0.26 0.20 0.11 0.07
25.5................................ 0.26 0.20 0.10 0.06
26.0................................ 0.26 0.20 0.10 0.06
26.5................................ 0.26 0.20 0.09 0.05
27.0................................ 0.26 0.20 0.09 0.05
27.5................................ 0.25 0.19 0.09 0.04
28.0................................ 0.25 0.19 0.09 0.04
28.5................................ 0.25 0.19 0.09 0.03
29.0................................ 0.25 0.19 0.09 0.03
29.5................................ 0.25 0.19 0.09 0.03
30.0................................ 0.25 0.19 0.09 0.03
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* * * * *
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2025-18461 Filed 9-23-25; 8:45 am]
BILLING CODE 7709-02-P
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