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PBGC Amends its Valuation Regulation

Government Affairs

The Pension Benefit Guaranty Corporation (PBGC) on Dec. 7 published a final rule amending its valuation regulation by substituting a new table for selecting the retirement rate category.

The new table is used to determine the applicable expected retirement age for participants in single-employer plans with 2020 valuation dates. Expected retirement age is one of the assumptions used to determine liabilities under ERISA Section 4044. 

For ERISA Section 4044 calculations, the age at which benefits are assumed to commence depends on two factors:

1. whether the benefit amount is considered low, medium or high (the Retirement Rate Category), and

2. when participants, under the provisions of their plan, can begin receiving reduced and unreduced benefits (the expected retirement age tables).

A copy of the table, and tables for the Retirement Rate Category for 2008-2020, are available on the PBGC’s ERISA Section 4044 Retirement Assumptions web page here