PBGC Updates Spreads for Interest Assumptions

The Pension Benefit Guaranty Corporation (PBGC) has updated its regulation on Allocation of Assets in Single-Employer Plans, which prescribes actuarial assumptions—including an interest assumption—for valuing benefits under terminating single-employer plans covered by ERISA. The rule prescribes the spreads component of the interest assumption used for valuing benefits under terminating single-employer plans and for other purposes, with valuation dates of January 31, 2026–April 29, 2026. These assumptions may also be used for determining certain amounts to transfer to PBGC’s Missing Participants Program on behalf of a missing participant of a terminating defined benefit plan.