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Title 29

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Displaying title 29, up to date as of 10/02/2026. Title 29 was last amended 9/30/2026.
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  1. Title 29 —Labor
  2. Subtitle B —Regulations Relating to Labor
  3. Chapter XL —Pension Benefit Guaranty Corporation
  4. Subchapter E —Plan Terminations
  5. Part 4044 —Allocation of Assets in Single-Employer Plans
  6. Subpart B
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Subpart B—Valuation of Benefits and Assets

General Provisions

§ 4044.41 General valuation rules.

(a) Valuation of benefits —

(1) Trusteed plans. The plan administrator of a plan that has been or will be placed into trusteeship by the PBGC shall value plan benefits in accordance with §§ 4044.51 through 4044.58.

(2) Non-trusteed plans. The plan administrator of a non-trusteed plan shall value plan benefits in accordance with §§ 4044.71 through 4044.75. If a plan is unable to satisfy all benefits assigned to priority categories 1 through 4 on the distribution date, the PBGC will place it into trusteeship and the plan administrator shall re-value the benefits in accordance with §§ 4044.51 through 4044.58.

(b) Valuation of assets. Plan assets generally will be valued at their fair market value as defined in § 4001.2 of this chapter. As appropriate, plan assets will be valued at their fair value in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

[61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011; 88 FR 44052, July 11, 2023; 89 FR 48300, June 6, 2024]

Trusteed Plans

§ 4044.51 Benefits to be valued.

(a) Form of benefit. The plan administrator shall determine the form of each benefit to be valued in accordance with the following rules:

(1) If a benefit is in pay status as of the valuation date, the plan administrator shall value the form of the benefit being paid.

(2) If a benefit is not in pay status as of the valuation date but a valid election with respect to the form of benefit has been made on or before the valuation date, the plan administrator shall value the form of benefit so elected.

(3) If a benefit is not in pay status as of the valuation date and no valid election with respect to the form of benefit has been made on or before the valuation date, the plan administrator shall value the form of benefit that, under the terms of the plan, is payable in the absence of a valid election.

(b) Timing of benefit. The plan administrator shall value benefits whose starting date is subject to election using the assumption specified in paragraph (b)(1) or (b)(2) of this section.

(1) Where election made. If a valid election of the starting date of a benefit has been made on or before the valuation date, the plan administrator shall assume that the starting date of the benefit is the starting date so elected.

(2) Where no election made. If no valid election of the starting date of a benefit has been made on or before the valuation date, the plan administrator shall assume that the starting date of the benefit is the later of—

(i) The expected retirement age, as determined under §§ 4044.55 through 4044.58, of the participant with respect to whom the benefit is payable, or

(ii) The valuation date.

[61 FR 34059, July 1, 1996, as amended at 89 FR 48300, June 6, 2024]

§ 4044.52 Valuation of benefits.

The plan administrator shall value all benefits as of the valuation date by—

(a) Using the mortality assumptions prescribed by § 4044.53 and the interest assumptions prescribed by § 4044.54;

(b) Using interpolation methods, where necessary, at least as accurate as linear interpolation;

(c) Using valuation formulas that accord with generally accepted actuarial principles and practices; and

(d) Adding an expense loading charge determined in accordance with this paragraph (d) to the total value of benefits.

(1) Expense loading charge. The expense loading charge equals the sum of—

(i) Four hundred dollars ($400) multiplied by the applicable inflation multiplier determined in accordance with paragraph (d)(2) of this section and rounded to the nearest dollar, multiplied by the lesser of the participant count and 100, and

(ii) Two hundred-fifty dollars ($250) multiplied by the applicable inflation multiplier determined in accordance with paragraph (d)(2) of this section and rounded to the nearest dollar, multiplied by the excess, if any, of the participant count over 100.

(2) Applicable inflation multiplier. Except as provided in the next sentence, the applicable inflation multiplier equals the value of the CPI-U for September of the year preceding the year containing the valuation date divided by 296.808 (the value of the CPI-U for September of 2022), but not less than 1. However, for a valuation date on any day in January except the 31st, the applicable inflation multiplier is determined as if the valuation date were December 31 of the year preceding the year containing the valuation date. The term “CPI-U” means the Consumer Price Index for All Urban Consumers, not seasonally adjusted as published by the Bureau of Labor Statistics of the Department of Labor.

[65 FR 14753, Mar. 17, 2000, as amended at 70 FR 72207, Dec. 2, 2005; 89 FR 48300, June 6, 2024; 90 FR 39328, Aug. 15, 2025]

§ 4044.53 Mortality assumptions.

(a) General rule. Subject to paragraph (b) of this section (regarding certain death benefits), the plan administrator shall use the mortality factors prescribed in paragraphs (c), (d), (e), (f), and (g) of this section to value benefits under § 4044.52.

(b) Certain death benefits. If an annuity for one person is in pay status on the valuation date, and if the payment of a death benefit after the valuation date to another person, who need not be identifiable on the valuation date, depends in whole or in part on the death of the pay status annuitant, then the plan administrator shall value the death benefit using—

(1) The mortality rates that are applicable to the annuity in pay status under this section to represent the mortality of the pay status annuitant; and

(2) The mortality rates under paragraph (c) of this section to represent the mortality of the death beneficiary.

(c) Healthy lives —

(1) In general. If the individual is not disabled under paragraph (f) of this section, the plan administrator must value the benefit using generational mortality tables described in this paragraph (c).

(i) Construction of generational mortality tables. The generational mortality tables in this paragraph (c) are constructed from the base mortality tables described in paragraph (c)(1)(ii) of this section and the mortality improvement rates described in paragraph (c)(1)(iii) of this section.

(ii) Base mortality tables. The base mortality tables are set forth in paragraph (c)(5) of this section. The base year for those tables is 2012.

(iii) Mortality improvement rates. The mortality improvement rates are the Scale MP-2021 Rates described in the Mortality Improvement Scale MP-2021 Report.

(iv) Incorporation by reference. The Mortality Improvement Scale MP-2021 Report, October 2021 is incorporated by reference into this section with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. This incorporation by reference (IBR) material is available for inspection at PBGC and at the National Archives and Records Administration (NARA). Contact PBGC at: Disclosure Division, Office of the General Counsel, Pension Benefit Guaranty Corporation; 445 12th Street SW, Washington, DC 20024; 202-326-4040. For information on the availability of this material at NARA, visit www.archives.gov/federal-register/cfr/ibr-locations.html or email . The material may be obtained from the Society of Actuaries at: Society of Actuaries, 475 N. Martingale Rd., Suite 600, Schaumburg, IL 60173; (847) 706-3500; https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021.

(2) Application of mortality improvement rates —

(i) In general. Under the generational mortality tables described in this paragraph (c), the probability of an individual's death at a particular age in the future is determined as the individual's base mortality rate that applies at that age (that is, the applicable mortality rate from the tables set forth in paragraph (c)(5) of this section for that age, gender, and status as an annuitant or a non-annuitant) multiplied by the cumulative mortality improvement factor for the individual's gender and for that age for the period from 2012 through the calendar year in which the individual is projected to reach the particular age. Paragraph (c)(3) of this section provides an example that illustrates how the base mortality tables in paragraph (c)(5) of this section and the Scale MP-2021 mortality improvement rates are combined to determine projected mortality rates.

(ii) Cumulative mortality improvement factor. The cumulative mortality improvement factor for an age and gender for a period is the product of the annual mortality improvement factors for that age and gender for each year within that period.

(iii) Annual mortality improvement factor. The annual mortality improvement factor for an age and gender for a year is 1 minus the mortality improvement rate that applies for that age and gender for that year. If that annual mortality improvement rate is greater than 1 (corresponding to a negative mortality improvement rate), then the projected mortality rate for that age and gender for that year is greater than the projected mortality rate for the same age and gender for the preceding year.

(3) Example of calculation using scale MP-2021 rates —

(i) Calculation of mortality rate. The mortality rate that is applied to male annuitants who are age 67 in 2024 is equal to the product of the mortality rate for 2012 that applied to male annuitants who were age 67 in 2012 (0.01288) and the cumulative mortality improvement factor for age 67 males from 2012 to 2024. The cumulative mortality improvement factor for age 67 males for the period from 2012 to 2024 is 0.9867, and the mortality rate for 2024 for male annuitants who are age 67 in that year would be 0.01271, as shown in the following table.

Table 1 to Paragraph (c)(3)(i)—Example Mortality Rate Calculation
Calendar year Scale MP-2021
mortality
improvement
rate		 Annual mortality
improvement
factor
(1-mortality
improvement
rate)		 Cumulative
mortality
improvement
factor		 Mortality rate
2012 n/a n/a n/a 0.01288
2013 0.0052 0.9948 0.9948
2014 0.0027 0.9973 0.9921
2015 0.0009 0.9991 0.9912
2016 (0.0003) 1.0003 0.9915
2017 (0.0010) 1.0010 0.9925
2018 (0.0016) 1.0016 0.9941
2019 (0.0016) 1.0016 0.9957
2020 (0.0010) 1.0010 0.9967
2021 0.0000 1.0000 0.9967
2022 0.0015 0.9985 0.9952
2023 0.0033 0.9967 0.9919
2024 0.0052 0.9948 0.9867 0.01271

(ii) Probability of survival for an individual. After the projected mortality rates are derived for each age for each year, the rates are used to calculate the present value of a benefit stream that depends on the probability of survival year-by-year. For example, using the Scale MP-2021 rates, for purposes of calculating the present value of future payments in a benefit stream payable for a male annuitant who is age 67 in 2024, the probability of survival for the annuitant is based on the mortality rate for a male annuitant who is age 67 in 2024 (0.01271), and the projected mortality rate for a male annuitant who will be age 68 in 2025 (0.01369), age 69 in 2026 (0.01478), and so on.

(4) Use of the tables —

(i) Separate tables for annuitants and non-annuitants. Separate mortality tables are provided for use for annuitants and non-annuitants. The non-annuitant mortality tables are applied to determine the probability of survival for a non-annuitant for the period before the non-annuitant is projected to commence receiving benefits. The annuitant mortality tables are applied to determine the present value of benefits for each annuitant. In addition, the annuitant mortality tables are applied for each non-annuitant with respect to each assumed commencement of benefits for the period beginning with that assumed commencement. For purposes of this section, an annuitant means a plan participant who has commenced receiving benefits, and a non-annuitant means a plan participant who has not yet commenced receiving benefits (for example, an active employee or a terminated vested participant). A participant whose benefit has partially commenced is treated as an annuitant for the portion of the benefit that has commenced and treated as a non-annuitant for the balance of the benefit. In addition, for a beneficiary of a participant, the annuitant mortality tables apply for the period beginning with each assumed commencement of benefits for the participant. If the participant has died (or to the extent the participant is assumed to die before commencing benefits), the annuitant mortality tables apply with respect to the beneficiary for the period beginning with each assumed commencement of benefits for the beneficiary.

(ii) Examples of calculation using separate non-annuitant and annuitant tables. For a 45-year-old active participant who is projected to commence receiving an annuity at age 55, benefit liabilities are determined using the non-annuitant mortality tables for the period before the participant attains age 55 and using the annuitant mortality tables for the period ages 55 and above. Similarly, for a 45-year-old terminated vested participant who is projected to commence an annuity at age 65, benefit liabilities are determined using the non-annuitant mortality tables for the period before the participant attains age 65 and using the annuitant mortality tables for ages 65 and above.

(5) Base mortality tables. The following are the base mortality tables. The base year for these tables is 2012.

Table 2 to Paragraph (c)(5)—Healthy Lives Base Mortality Table
Age Males Females
Non-annuitant Annuitant Non-annuitant Annuitant
0 0.00650 0.00650 0.00544 0.00544
1 0.00045 0.00045 0.00038 0.00038
2 0.00030 0.00030 0.00023 0.00023
3 0.00022 0.00022 0.00018 0.00018
4 0.00019 0.00019 0.00013 0.00013
5 0.00016 0.00016 0.00012 0.00012
6 0.00014 0.00014 0.00011 0.00011
7 0.00013 0.00013 0.00010 0.00010
8 0.00011 0.00011 0.00009 0.00009
9 0.00009 0.00009 0.00009 0.00009
10 0.00008 0.00008 0.00009 0.00009
11 0.00009 0.00009 0.00009 0.00009
12 0.00013 0.00013 0.00010 0.00010
13 0.00017 0.00017 0.00012 0.00012
14 0.00022 0.00022 0.00013 0.00013
15 0.00028 0.00028 0.00013 0.00013
16 0.00034 0.00034 0.00014 0.00014
17 0.00040 0.00040 0.00015 0.00015
18 0.00046 0.00046 0.00015 0.00015
19 0.00053 0.00053 0.00015 0.00015
20 0.00056 0.00056 0.00015 0.00015
21 0.00056 0.00056 0.00015 0.00015
22 0.00056 0.00056 0.00016 0.00016
23 0.00055 0.00055 0.00018 0.00018
24 0.00055 0.00055 0.00019 0.00019
25 0.00054 0.00054 0.00019 0.00019
26 0.00054 0.00054 0.00019 0.00019
27 0.00054 0.00054 0.00020 0.00020
28 0.00054 0.00054 0.00020 0.00020
29 0.00054 0.00054 0.00020 0.00020
30 0.00055 0.00055 0.00021 0.00021
31 0.00055 0.00055 0.00022 0.00022
32 0.00056 0.00056 0.00023 0.00023
33 0.00058 0.00058 0.00025 0.00025
34 0.00059 0.00059 0.00026 0.00026
35 0.00061 0.00061 0.00028 0.00028
36 0.00063 0.00063 0.00031 0.00031
37 0.00065 0.00065 0.00034 0.00034
38 0.00068 0.00068 0.00036 0.00036
39 0.00071 0.00071 0.00040 0.00040
40 0.00074 0.00074 0.00043 0.00043
41 0.00077 0.00082 0.00047 0.00049
42 0.00081 0.00099 0.00051 0.00061
43 0.00086 0.00124 0.00055 0.00078
44 0.00091 0.00158 0.00060 0.00101
45 0.00097 0.00200 0.00065 0.00130
46 0.00105 0.00251 0.00071 0.00165
47 0.00113 0.00310 0.00077 0.00206
48 0.00123 0.00378 0.00083 0.00252
49 0.00134 0.00454 0.00090 0.00304
50 0.00147 0.00539 0.00098 0.00362
51 0.00161 0.00544 0.00107 0.00426
52 0.00177 0.00565 0.00116 0.00495
53 0.00194 0.00588 0.00126 0.00500
54 0.00213 0.00616 0.00137 0.00512
55 0.00234 0.00647 0.00148 0.00517
56 0.00257 0.00686 0.00161 0.00522
57 0.00281 0.00728 0.00175 0.00528
58 0.00308 0.00770 0.00190 0.00561
59 0.00338 0.00811 0.00206 0.00601
60 0.00369 0.00848 0.00224 0.00643
61 0.00403 0.00882 0.00243 0.00690
62 0.00441 0.00918 0.00264 0.00743
63 0.00481 0.00960 0.00287 0.00796
64 0.00525 0.01014 0.00312 0.00859
65 0.00573 0.01087 0.00339 0.00928
66 0.00636 0.01178 0.00380 0.01003
67 0.00706 0.01288 0.00427 0.01089
68 0.00784 0.01418 0.00480 0.01192
69 0.00870 0.01564 0.00540 0.01309
70 0.00967 0.01729 0.00606 0.01444
71 0.01073 0.01914 0.00681 0.01597
72 0.01192 0.02121 0.00765 0.01770
73 0.01323 0.02354 0.00860 0.01967
74 0.01469 0.02613 0.00966 0.02192
75 0.01632 0.02905 0.01085 0.02445
76 0.01812 0.03233 0.01219 0.02727
77 0.02012 0.03604 0.01370 0.03042
78 0.02234 0.04026 0.01539 0.03391
79 0.02480 0.04504 0.01729 0.03775
80 0.02754 0.05046 0.01943 0.04198
81 0.02989 0.05657 0.02134 0.04663
82 0.03460 0.06343 0.02516 0.05178
83 0.04166 0.07114 0.03089 0.05754
84 0.05108 0.07977 0.03853 0.06401
85 0.06285 0.08946 0.04808 0.07132
86 0.07698 0.10032 0.05955 0.07954
87 0.09346 0.11248 0.07293 0.08879
88 0.11229 0.12600 0.08822 0.09936
89 0.13348 0.14088 0.10542 0.11124
90 0.15703 0.15703 0.12453 0.12453
91 0.17401 0.17401 0.13818 0.13818
92 0.19151 0.19151 0.15250 0.15250
93 0.20936 0.20936 0.16737 0.16737
94 0.22742 0.22742 0.18274 0.18274
95 0.24569 0.24569 0.19863 0.19863
96 0.26415 0.26415 0.21509 0.21509
97 0.28281 0.28281 0.23214 0.23214
98 0.30169 0.30169 0.24983 0.24983
99 0.32077 0.32077 0.26814 0.26814
100 0.33996 0.33996 0.28698 0.28698
101 0.35910 0.35910 0.30619 0.30619
102 0.37794 0.37794 0.32549 0.32549
103 0.39633 0.39633 0.34472 0.34472
104 0.41415 0.41415 0.36375 0.36375
105 0.43131 0.43131 0.38243 0.38243
106 0.44771 0.44771 0.40065 0.40065
107 0.46329 0.46329 0.41828 0.41828
108 0.47800 0.47800 0.43522 0.43522
109 0.49181 0.49181 0.45139 0.45139
110 0.50000 0.50000 0.46673 0.46673
111 0.50000 0.50000 0.48120 0.48120
112 0.50000 0.50000 0.49477 0.49477
113 0.50000 0.50000 0.50000 0.50000
114 0.50000 0.50000 0.50000 0.50000
115 0.50000 0.50000 0.50000 0.50000
116 0.50000 0.50000 0.50000 0.50000
117 0.50000 0.50000 0.50000 0.50000
118 0.50000 0.50000 0.50000 0.50000
119 0.50000 0.50000 0.50000 0.50000
120 1.00000 1.00000 1.00000 1.00000

(d) Social Security disabled lives. If the individual is Social Security disabled under paragraph (f)(1) of this section, the plan administrator will value the benefit using the following table.

Table 3 to Paragraph (d)—Social Security Disabled Lives Mortality Table
Age Male Female
16 0.012544 0.004759
17 0.007102 0.006541
18 0.005859 0.008035
19 0.009998 0.008369
20 0.008926 0.009224
21 0.008533 0.008144
22 0.008158 0.008616
23 0.008970 0.008127
24 0.008433 0.008318
25 0.008696 0.008851
26 0.009211 0.008002
27 0.009362 0.008694
28 0.009780 0.009477
29 0.010049 0.009664
30 0.011093 0.009417
31 0.011075 0.009985
32 0.010931 0.010524
33 0.011890 0.010648
34 0.012529 0.011252
35 0.012418 0.011450
36 0.013234 0.011448
37 0.013832 0.012135
38 0.014457 0.012579
39 0.015830 0.012619
40 0.016153 0.013578
41 0.016859 0.014243
42 0.017464 0.014520
43 0.018302 0.014773
44 0.019127 0.015630
45 0.020380 0.016131
46 0.021607 0.016874
47 0.023407 0.017547
48 0.023956 0.018198
49 0.025631 0.019281
50 0.026384 0.019413
51 0.027277 0.020343
52 0.028582 0.020488
53 0.030164 0.021316
54 0.031262 0.021960
55 0.031728 0.021969
56 0.033067 0.022897
57 0.034230 0.023556
58 0.035474 0.024159
59 0.036790 0.024958
60 0.037772 0.025905
61 0.039297 0.027414
62 0.039954 0.028394
63 0.041069 0.029795
64 0.042280 0.030776
65 0.039144 0.028230
66 0.043862 0.031667
67 0.046182 0.033318
68 0.048624 0.034728
69 0.052077 0.037341
70 0.055284 0.039491
71 0.058951 0.042134
72 0.062301 0.044962
73 0.067099 0.047548
74 0.071469 0.051148
75 0.075068 0.055271
76 0.080425 0.059382
77 0.085531 0.063489
78 0.091585 0.068675
79 0.098383 0.074929
80 0.104788 0.080536
81 0.113110 0.088455
82 0.122062 0.094573
83 0.131697 0.103589
84 0.140430 0.111345
85 0.151890 0.122160
86 0.165777 0.130844
87 0.176875 0.142631
88 0.188397 0.156112
89 0.206651 0.166591
90 0.223252 0.182064
91 0.235073 0.197059
92 0.249318 0.205768
93 0.267740 0.225325
94 0.277033 0.240441
95 0.284003 0.260724
96 0.298740 0.281817
97 0.313086 0.293156
98 0.328740 0.308400
99 0.345177 0.324436
100 0.362436 0.341307
101 0.380558 0.359055
102 0.399586 0.377726
103 0.419565 0.397368
104 0.440543 0.418031
105 0.462571 0.439768
106 0.485699 0.462636
107 0.509984 0.486693
108 0.535483 0.512001
109 0.562257 0.538626
110 0.590370 0.566634
111+ 1.000000 1.000000

(e) Non-Social Security disabled lives. If the individual is non-Social Security disabled under paragraph (f)(2) of this section, the plan administrator will value the benefit using generational mortality tables described in paragraph (c) of this section.

(f) Definitions of disability —

(1) Social Security disabled. A participant is Social Security disabled if, on the valuation date, the participant is less than age 65 and has a benefit in pay status that—

(i) Is being received as a disability benefit under a plan provision requiring either receipt of or eligibility for Social Security disability benefits, or

(ii) Was converted under the plan's terms from a disability benefit under a plan provision requiring either receipt of or eligibility for Social Security disability benefits to an early or normal retirement benefit for any reason other than a change in the participant's health status.

(2) Non-Social Security disabled. A participant is non-Social Security disabled if, on the valuation date, the participant is less than age 65, is not Social Security disabled, and has a benefit in pay status that—

(i) Is being received as a disability benefit under the plan, or

(ii) Was converted under the plan's terms from a disability benefit to an early or normal retirement benefit for any reason other than a change in the participant's health status.

(g) Contingent annuitant mortality during deferral period. If a participant's joint and survivor benefit is valued as a deferred annuity, the mortality of the contingent annuitant during the deferral period will be disregarded.

(h) Missing participants mortality. The following mortality table is used to value benefits using “PBGC missing participants assumptions” under part 4050, subparts A, C, and D of this chapter.

Table 4 to Paragraph (h)—Missing Participants Unisex Mortality Table
Age Benefit determination
dates in 2024		 Benefit determination
dates in 2025		 Benefit determination
dates in 2026
0 0.00207 0.00204 0.00202
1 0.00015 0.00014 0.00014
2 0.00010 0.00009 0.00009
3 0.00008 0.00007 0.00007
4 0.00006 0.00006 0.00006
5 0.00006 0.00005 0.00005
6 0.00005 0.00005 0.00005
7 0.00005 0.00005 0.00005
8 0.00004 0.00004 0.00004
9 0.00004 0.00004 0.00003
10 0.00004 0.00004 0.00004
11 0.00004 0.00004 0.00004
12 0.00005 0.00005 0.00005
13 0.00006 0.00006 0.00006
14 0.00008 0.00007 0.00007
15 0.00009 0.00009 0.00008
16 0.00010 0.00010 0.00010
17 0.00012 0.00012 0.00012
18 0.00014 0.00014 0.00014
19 0.00016 0.00015 0.00015
20 0.00016 0.00016 0.00016
21 0.00017 0.00016 0.00016
22 0.00017 0.00017 0.00017
23 0.00018 0.00018 0.00018
24 0.00019 0.00019 0.00019
25 0.00020 0.00019 0.00019
26 0.00021 0.00020 0.00020
27 0.00022 0.00021 0.00021
28 0.00023 0.00022 0.00022
29 0.00023 0.00023 0.00023
30 0.00025 0.00025 0.00024
31 0.00026 0.00026 0.00026
32 0.00028 0.00027 0.00027
33 0.00030 0.00030 0.00030
34 0.00032 0.00031 0.00031
35 0.00034 0.00034 0.00033
36 0.00036 0.00036 0.00035
37 0.00038 0.00038 0.00037
38 0.00040 0.00040 0.00039
39 0.00043 0.00042 0.00041
40 0.00044 0.00044 0.00043
41 0.00046 0.00045 0.00044
42 0.00048 0.00047 0.00046
43 0.00049 0.00049 0.00048
44 0.00052 0.00051 0.00050
45 0.00054 0.00053 0.00052
46 0.00058 0.00057 0.00056
47 0.00061 0.00060 0.00059
48 0.00065 0.00064 0.00064
49 0.00070 0.00069 0.00068
50 0.00076 0.00076 0.00075
51 0.00085 0.00084 0.00083
52 0.00095 0.00094 0.00092
53 0.00106 0.00105 0.00103
54 0.00120 0.00118 0.00117
55 0.00143 0.00141 0.00139
56 0.00177 0.00174 0.00172
57 0.00205 0.00202 0.00200
58 0.00239 0.00235 0.00232
59 0.00276 0.00273 0.00269
60 0.00321 0.00317 0.00313
61 0.00370 0.00365 0.00360
62 0.00441 0.00434 0.00428
63 0.00514 0.00507 0.00500
64 0.00577 0.00570 0.00562
65 0.00658 0.00650 0.00641
66 0.00748 0.00738 0.00729
67 0.00834 0.00823 0.00813
68 0.00928 0.00916 0.00904
69 0.01034 0.01021 0.01008
70 0.01155 0.01141 0.01127
71 0.01294 0.01278 0.01262
72 0.01452 0.01435 0.01417
73 0.01631 0.01611 0.01592
74 0.01837 0.01815 0.01794
75 0.02073 0.02049 0.02025
76 0.02345 0.02317 0.02291
77 0.02656 0.02626 0.02596
78 0.03012 0.02979 0.02945
79 0.03417 0.03382 0.03345
80 0.03899 0.03862 0.03823
81 0.04395 0.04356 0.04315
82 0.04959 0.04916 0.04872
83 0.05595 0.05549 0.05502
84 0.06317 0.06267 0.06217
85 0.07138 0.07083 0.07029
86 0.08063 0.08005 0.07947
87 0.09107 0.09044 0.08982
88 0.10286 0.10220 0.10154
89 0.11596 0.11526 0.11457
90 0.13036 0.12962 0.12889
91 0.14540 0.14463 0.14387
92 0.16090 0.16012 0.15933
93 0.17679 0.17601 0.17522
94 0.19284 0.19206 0.19127
95 0.20898 0.20822 0.20745
96 0.22620 0.22545 0.22467
97 0.24386 0.24311 0.24234
98 0.26196 0.26123 0.26048
99 0.28059 0.27986 0.27912
100 0.29960 0.29887 0.29814
101 0.31891 0.31817 0.31746
102 0.33825 0.33748 0.33676
103 0.35757 0.35673 0.35595
104 0.37670 0.37583 0.37502
105 0.39521 0.39436 0.39354
106 0.41327 0.41245 0.41166
107 0.43080 0.42999 0.42921
108 0.44743 0.44667 0.44595
109 0.46339 0.46271 0.46204
110 0.47628 0.47568 0.47508
111 0.48468 0.48417 0.48366
112 0.49268 0.49226 0.49184
113 0.49666 0.49634 0.49602
114 0.49795 0.49773 0.49751
115 0.49928 0.49915 0.49903
116 0.49960 0.49953 0.49945
117 0.49978 0.49973 0.49968
118 0.49995 0.49993 0.49990
119 0.50000 0.50000 0.50000
120 1.00000 1.00000 1.00000

[70 FR 72207, Dec. 2, 2005, as amended at 89 FR 48300, June 6, 2024; 89 FR 104041, Dec. 20, 2024; 90 FR 59973, Dec. 23, 2025]

§ 4044.54 Interest assumptions.

(a) General rule. The plan administrator must use the interest rates prescribed in this section to value benefits under § 4044.52.

(b) Interest rate. The interest rate used to discount an expected benefit payment is the interest rate from the applicable 4044 yield curve determined under paragraph (c) of this section for the maturity point that corresponds to the period of time from the valuation date to the date the benefit is expected to be paid unless that period of time exceeds 30 years. In that case, the interest rate used is the interest rate that corresponds to the maturity point at year 30.0. To address the timing of benefit payments during a year, reasonable approximations may be used to value benefit payments that are expected to be made during a plan year.

(c) 4044 yield curve. A 4044 yield curve consists of interest rates (as percentages) that correspond to mid-year and whole-year maturity points for 30.0 years. The applicable 4044 yield curve is the applicable blended market yield curve determined under paragraphs (d)(1) and (2) of this section adjusted in accordance with paragraph (e)(2) of this section by the applicable spreads determined under paragraph (e)(1) of this section.

(d) Blended market yield curves. A blended market yield curve consists of interest rates (as percentages), determined as of the last day of a month, that correspond to mid-year and whole-year maturity points for 30.0 years.

(1) Applicable blended market yield curve. The applicable blended market yield curve is the blended market yield curve as of the valuation date if the valuation date is the last day of a month, otherwise it is the blended market yield curve as of the last day of the month before the month containing the valuation date.

(2) Determination of blended market yield curve. The blended market yield curve is determined by combining the Department of the Treasury's TNC Treasury Yield Curve Spot Rates, End of Month yield curve (TNC Yield Curve) with the Department of the Treasury's HQM Corporate Bond Yield Curve Spot Rates, End of Month yield curve (HQM Bond Yield Curve) in accordance with this paragraph (d)(2). To determine the blended market yield curve as of the last day of a month—

(i) Obtain the rate for each maturity point from 0.5 to 30.0 from the TNC Yield Curve for the end of the month published by the Department of the Treasury.

(ii) Obtain the rate for each maturity point from 0.5 to 30.0 from the HQM Bond Yield Curve for the end of the month published by the Department of the Treasury.

(iii) Determine the interest rate for each maturity point from 0.5 to 30.0 on the blended market yield curve by multiplying the rate determined in paragraph (d)(2)(i) of this section by one-third, multiplying the rate determined in paragraph (d)(2)(ii) of this section at the year by two-thirds, and adding the products.

(e) Spreads —

(1) Applicable spreads. The applicable spreads for a blended market yield curve are the spreads set forth in table 1 to this paragraph (e) for the calendar quarter containing the date of the blended market yield curve.

(2) Using spreads to adjust a blended market yield curve. The 4044 yield curve described in paragraph (c) of this section is determined by adjusting the blended market yield curve. This adjustment is made by adding the interest rate for each maturity point on the blended market yield curve to the spread corresponding to that maturity point from the applicable spreads.

(3) Examples. The following examples illustrate how to determine the applicable blended market yield curve and applicable spreads for a given valuation date:

(i) Example 1—August 31, 2024, valuation date. Because the valuation date is the last day of a month, the applicable blended market yield curve determined under paragraph (d)(1) of this section is the blended market yield curve as of that date. Because August 31, 2024, is in the third calendar quarter of 2024, the applicable spreads are the third quarter 2024 spreads, available on www.pbgc.gov.

(ii) Example 2—November 15, 2024, valuation date. Because the valuation date is not the last day of a month, the applicable blended market yield curve determined under paragraph (d)(1) of this section is the blended market yield curve as of the last day of the month before the month containing the valuation date, October 31, 2024. Because October 31, 2024, is in the fourth calendar quarter of 2024, the applicable spreads are the fourth quarter 2024 spreads, available on www.pbgc.gov.

Table 1 to Paragraph(e)—Spreads
Maturity point Fourth
quarter
2025
spreads
(percent)		 First
quarter
2026
spreads
(percent)		 Second
quarter
2026
spreads
(percent)		 Third
quarter
2026
spreads
(percent)
0.5 0.49 0.56 0.63 0.71
1.0 0.49 0.56 0.63 0.71
1.5 0.49 0.56 0.62 0.70
2.0 0.49 0.56 0.62 0.70
2.5 0.49 0.55 0.62 0.69
3.0 0.49 0.55 0.62 0.69
3.5 0.48 0.54 0.60 0.68
4.0 0.48 0.54 0.60 0.68
4.5 0.47 0.53 0.59 0.66
5.0 0.47 0.53 0.59 0.66
5.5 0.46 0.52 0.57 0.64
6.0 0.46 0.52 0.57 0.64
6.5 0.44 0.50 0.54 0.61
7.0 0.44 0.50 0.54 0.61
7.5 0.43 0.48 0.52 0.59
8.0 0.43 0.48 0.52 0.59
8.5 0.41 0.45 0.49 0.55
9.0 0.41 0.45 0.49 0.55
9.5 0.39 0.43 0.46 0.52
10.0 0.39 0.43 0.46 0.52
10.5 0.37 0.40 0.43 0.48
11.0 0.37 0.40 0.43 0.48
11.5 0.34 0.37 0.39 0.44
12.0 0.34 0.37 0.39 0.44
12.5 0.32 0.34 0.36 0.40
13.0 0.32 0.34 0.36 0.40
13.5 0.30 0.31 0.32 0.36
14.0 0.30 0.31 0.32 0.36
14.5 0.27 0.28 0.28 0.32
15.0 0.27 0.28 0.28 0.32
15.5 0.25 0.25 0.24 0.28
16.0 0.25 0.25 0.24 0.28
16.5 0.23 0.22 0.21 0.23
17.0 0.23 0.22 0.21 0.23
17.5 0.20 0.19 0.17 0.19
18.0 0.20 0.19 0.17 0.19
18.5 0.18 0.16 0.13 0.15
19.0 0.18 0.16 0.13 0.15
19.5 0.16 0.13 0.10 0.11
20.0 0.16 0.13 0.10 0.11
20.5 0.14 0.11 0.07 0.08
21.0 0.14 0.11 0.07 0.08
21.5 0.12 0.08 0.04 0.04
22.0 0.12 0.08 0.04 0.04
22.5 0.10 0.06 0.01 0.01
23.0 0.10 0.06 0.01 0.01
23.5 0.08 0.04 −0.02 −0.02
24.0 0.08 0.04 −0.02 −0.02
24.5 0.07 0.02 −0.04 −0.05
25.0 0.07 0.02 −0.04 −0.05
25.5 0.06 0.00 −0.06 −0.07
26.0 0.06 0.00 −0.06 −0.07
26.5 0.05 −0.01 −0.08 −0.09
27.0 0.05 −0.01 −0.08 −0.09
27.5 0.04 −0.02 −0.09 −0.10
28.0 0.04 −0.02 −0.09 −0.10
28.5 0.03 −0.03 −0.10 −0.11
29.0 0.03 −0.03 −0.10 −0.11
29.5 0.03 −0.03 −0.10 −0.11
30.0 0.03 −0.03 −0.10 −0.11

[89 FR 48305, June 6, 2024, as amended at 89 FR 54347, July 1, 2024; 89 FR 76731, Sept. 19, 2024; 89 FR 104425, Dec. 23, 2024; 90 FR 14578, Apr. 3, 2025; 90 FR 28900, July 2, 2025; 90 FR 45919, Sept. 24, 2025; 91 FR 2300, Jan. 20, 2026; 91 FR 16839, Apr. 3, 2026; 91 FR 47790, July 29, 2026; 91 FR 39464, June 30, 2026]

Expected Retirement Age

§ 4044.55 XRA when a participant must retire to receive a benefit.

(a) Applicability. Except as provided in § 4044.57, the plan administrator shall determine the XRA under this section when plan provisions or established plan practice require a participant to retire from his or her job to begin receiving an early retirement benefit.

(b) Data needed. The plan administrator shall determine for each participant who is entitled to an early retirement benefit—

(1) The amount of the participant's monthly benefit payable at unreduced retirement age in the normal form payable under the terms of the plan or in the form validly elected by the participant before the termination date;

(2) The calendar year in which the participant reaches unreduced retirement age (“URA”);

(3) The participant's URA; and

(4) The participant's earliest retirement age at the valuation date.

(c) Procedure.

(1) The plan administrator shall determine whether a participant is in the high, medium, or low retirement rate category using the applicable Selection of Retirement Rate Category Table in § 4044.58, based on the participant's benefit determined under paragraph (b)(1) of this section and the year in which the participant reaches URA.

(2) Based on the retirement rate category determined under paragraph (c)(1), the plan administrator shall determine the XRA from Table II-A, II-B or II-C, as appropriate, by using the participant's URA and earliest retirement age at valuation date.

[61 FR 34059, July 1, 1996, as amended at 89 FR 48306, June 6, 2024]

§ 4044.56 XRA when a participant need not retire to receive a benefit.

(a) Applicability. Except as provided in § 4044.57, the plan administrator shall determine the XRA under this section when plan provisions or established plan practice do not require a participant to retire from his or her job to begin receiving his or her early retirement benefit.

(b) Data needed. The plan administrator shall determine for each participant—

(1) The participant's URA; and

(2) The participant's earliest retirement age at valuation date.

(c) Procedure. Participants in this case are always assigned to the high retirement rate category and therefore the plan administrator shall use table II-C (Expected Retirement Ages for Individuals in the High Category) in § 4044.58 to determine the XRA. The plan administrator shall determine the XRA from table II-C by using the participant's URA and earliest retirement age at termination date.

[61 FR 34059, July 1, 1996, as amended at 89 FR 48306, June 6, 2024]

§ 4044.57 Special rule for facility closing.

(a) Applicability. The plan administrator shall determine the XRA under this section, rather than § 4044.55 or § 4044.56, when both the conditions set forth in paragraphs (a)(1) and (a)(2) of this section exist.

(1) The facility at which the participant is or was employed permanently closed within one year before the valuation date, or is in the process of being permanently closed on the valuation date.

(2) The participant left employment at the facility less than one year before the valuation date or was still employed at the facility on the valuation date.

(b) XRA. The XRA is equal to the earliest retirement age at valuation date.

§ 4044.58 Tables used to determine expected retirement age.

The following tables are used for determining expected retirement age under §§ 4044.55 through 4044.57.

Table 1 to § 4044.58—Table I-26—Selection of Retirement Rate Category

[For valuation dates in 2026 1]
If participant reaches URA in year— Participant's retirement rate category is—
Low 2 if monthly benefit at URA is less than— Medium 3 if monthly benefit at URA is— High 4 if monthly benefit at URA is greater than—
From— To—
2027 849 849 3,587 3,587
2028 869 869 3,670 3,670
2029 888 888 3,750 3,750
2030 908 908 3,833 3,833
2031 928 928 3,917 3,917
2032 948 948 4,003 4,003
2033 969 969 4,092 4,092
2034 990 990 4,182 4,182
2035 1,012 1,012 4,274 4,274
2036 or later 1,034 1,034 4,368 4,368
1 Applicable tables for valuation dates before 2026 are available on PBGC's website (www.pbgc.gov).
2 Table II-A.
3 Table II-B.
4 Table II-C.

Table 2 to § 4044.58—Table II-A—Expected Retirement Ages for Individuals in the Low Category
Participant's earliest retirement age at valuation date Unreduced retirement age
60 61 62 63 64 65 66 67 68 69 70
42 53 53 53 54 54 54 54 54 54 54 54
43 53 54 54 54 55 55 55 55 55 55 55
44 54 54 55 55 55 55 55 56 56 56 56
45 54 55 55 56 56 56 56 56 56 56 56
46 55 55 56 56 56 57 57 57 57 57 57
47 56 56 56 57 57 57 57 57 57 57 57
48 56 57 57 57 58 58 58 58 58 58 58
49 56 57 58 58 58 58 59 59 59 59 59
50 57 57 58 58 59 59 59 59 59 59 59
51 57 58 58 59 59 60 60 60 60 60 60
52 58 58 59 59 60 60 60 60 60 60 60
53 58 59 59 60 60 61 61 61 61 61 61
54 58 59 60 60 61 61 61 61 61 61 61
55 59 59 60 61 61 61 62 62 62 62 62
56 59 60 60 61 61 62 62 62 62 62 62
57 59 60 61 61 62 62 62 62 62 62 62
58 59 60 61 61 62 62 63 63 63 63 63
59 59 60 61 62 62 63 63 63 63 63 63
60 60 60 61 62 62 63 63 63 63 63 63
61 61 61 62 63 63 63 63 64 64 64
62 62 62 63 63 63 64 64 64 64
63 63 63 64 64 65 65 65 65
64 64 64 65 65 65 65 65
65 65 65 65 65 65 65
66 66 66 66 66 66
67 67 67 67 67
68 68 68 68
69 69 69
70 70

Table 3 to § 4044.58—Table II-B—Expected Retirement Ages for Individuals in the Medium Category
Participant's earliest retirement age at valuation date Unreduced retirement age
60 61 62 63 64 65 66 67 68 69 70
42 49 49 49 49 49 49 49 49 49 49 49
43 50 50 50 50 50 50 50 50 50 50 50
44 50 51 51 51 51 51 51 51 51 51 51
45 51 51 52 52 52 52 52 52 52 52 52
46 52 52 52 53 53 53 53 53 53 53 53
47 53 53 53 53 53 54 54 54 54 54 54
48 54 54 54 54 54 54 54 54 54 54 54
49 54 55 55 55 55 55 55 55 55 55 55
50 55 55 56 56 56 56 56 56 56 56 56
51 56 56 56 57 57 57 57 57 57 57 57
52 56 57 57 57 57 58 58 58 58 58 58
53 57 57 58 58 58 58 58 58 58 58 58
54 57 58 58 59 59 59 59 59 59 59 59
55 58 58 59 59 59 60 60 60 60 60 60
56 58 59 59 60 60 60 60 60 60 60 60
57 59 59 60 60 61 61 61 61 61 61 61
58 59 60 60 61 61 61 61 61 61 61 61
59 59 60 61 61 62 62 62 62 62 62 62
60 60 60 61 62 62 62 62 62 62 62 62
61 61 61 62 62 63 63 63 63 63 63
62 62 62 62 63 63 63 63 63 63
63 63 63 64 64 64 64 64 64
64 64 64 64 64 64 64 64
65 65 65 65 65 65 65
66 66 66 66 66 66
67 67 67 67 67
68 68 68 68
69 69 69
70 70

Table 4 to § 4044.58—Table II-C—Expected Retirement Ages for Individuals in the High Category
Participant's earliest retirement age at valuation date Unreduced retirement age
60 61 62 63 64 65 66 67 68 69 70
42 46 46 46 46 46 47 47 47 47 47 47
43 47 47 47 47 47 47 47 47 47 47 47
44 48 48 48 48 48 48 48 48 48 48 48
45 49 49 49 49 49 49 49 49 49 49 49
46 50 50 50 50 50 50 50 50 50 50 50
47 51 51 51 51 51 51 51 51 51 51 51
48 52 52 52 52 52 52 52 52 52 52 52
49 53 53 53 53 53 53 53 53 53 53 53
50 54 54 54 54 54 54 54 54 54 54 54
51 54 55 55 55 55 55 55 55 55 55 55
52 55 55 56 56 56 56 56 56 56 56 56
53 56 56 56 57 57 57 57 57 57 57 57
54 57 57 57 57 57 58 58 58 58 58 58
55 57 58 58 58 58 58 58 58 58 58 58
56 58 58 59 59 59 59 59 59 59 59 59
57 58 59 59 60 60 60 60 60 60 60 60
58 59 59 60 60 60 60 61 61 61 61 61
59 59 60 60 61 61 61 61 61 61 61 61
60 60 60 61 61 61 62 62 62 62 62 62
61 61 61 62 62 62 62 62 62 62 62
62 62 62 62 62 62 62 62 62 62
63 63 63 63 64 64 64 64 64
64 64 64 64 64 64 64 64
65 65 65 65 65 65 65
66 66 66 66 66 66
67 67 67 67 67
68 68 68 68
69 69 69
70 70

[89 FR 48306, June 6, 2024, as amended at 89 FR 104043, Dec. 20, 2024; 90 FR 59975, Dec. 23, 2025]

Non-Trusteed Plans

§ 4044.71 Valuation of annuity benefits.

The value of a benefit which is to be paid as an annuity is the cost of purchasing the annuity on the date of distribution from an insurer.

[61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011]

§ 4044.72 Form of annuity to be valued.

(a) When both the participant and beneficiary are alive on the date of distribution, the form of annuity to be valued is—

(1) For a participant or beneficiary already receiving a monthly benefit, that form which is being received, or

(2) For a participant or beneficiary not receiving a monthly benefit, the normal annuity form payable under the plan or the optional form for which the participant has made a valid election.

(b) When the participant dies after the date of plan termination but before the date of distribution, the form of annuity to be valued is determined under paragraph (b)(1) or (b)(2) of this section:

(1) For a participant who was entitled to a deferred annuity—

(i) If the form was a single or joint life annuity, no benefit shall be valued; or

(ii) If the participant had made a valid election of a lump sum benefit before he or she died, the form to be valued is the lump sum.

(2) For a participant who was eligible for immediate retirement, and for a participant who was in pay status at the date of termination—

(i) If the form was a single life annuity, no benefit shall be valued;

(ii) If the form was an annuity for a period certain and life thereafter, the form to be valued is an annuity for the certain period;

(iii) If the form was a joint and survivor annuity, the form to be valued is a single life annuity payable to the beneficiary, unless the beneficiary has also died, in which case no benefit shall be valued;

(iv) If the form was an annuity for a period certain and joint and survivor thereafter, the form to be valued is an annuity for the certain period and the life of the beneficiary thereafter, unless the beneficiary has also died, in which case the form to be valued is an annuity for the certain period;

(v) If the form was a cash refund annuity, the form to be valued is the remaining lump sum death benefit; or

(vi) If the participant had elected a lump sum benefit before he or she died, the form to be valued is the lump sum.

(c) When the participant is still living and the named beneficiary or spouse dies after the date of termination but before the date of distribution, the form of annuity to be valued is determined under paragraph (c)(1) or (c)(2) of this section:

(1) For a participant entitled to a deferred annuity—

(i) If the form was a joint and survivor annuity, the form to be valued is a single life annuity payable to the participant; or

(ii) If the form was an annuity for a period certain and joint and survivor thereafter, the form to be valued is an annuity for the certain period and the life of the participant thereafter.

(2) For a participant eligible for immediate retirement and for a participant in pay status at the date of termination—

(i) If the form was a joint and survivor annuity, the form to be valued is a single life annuity payable to the participant; or

(ii) If the form was an annuity for a period certain and joint survivor thereafter annuity, the form to be valued is an annuity for the certain period and for the life of the participant thereafter.

[61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011]

§ 4044.73 Lump sums and other alternative forms of distribution in lieu of annuities.

(a) Valuation.

(1) The value of the lump sum or other alternative form of distribution is the present value of the normal form of benefit provided by the plan payable at normal retirement age, determined as of the date of distribution using reasonable actuarial assumptions as to interest and mortality.

(2) If the participant dies before the date of distribution, but had elected a lump sum benefit, the present value shall be determined as if the participant were alive on the date of distribution.

(b) Actuarial assumptions. The plan administrator shall specify the actuarial assumptions used to determine the value calculated under paragraph (a) of this section when the plan administrator submits the benefit valuation data to the PBGC. The same actuarial assumptions shall be used for all such calculations. The PBGC reserves the right to review the actuarial assumptions used and to re-value the benefits determined by the plan administrator if the actuarial assumptions are found to be unreasonable.

[61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011]

§ 4044.74 Withdrawal of employee contributions.

(a) If a participant has not started to receive monthly benefit payments on the date of distribution, the value of the lump sum which returns mandatory employee contributions is equal to the total amount of contributions made by the participant, plus interest that is payable to the participant under the terms of the plan, plus interest on that total amount from the date of termination to the date of distribution. The rate of interest credited on employee contributions up to the date of termination shall be the greater of the interest rate provided under the terms of the plan or the interest rate required under section 204(c) of ERISA or section 411(c) of the IRC.

(b) If a participant has started to receive monthly benefit payments on the date of distribution, part of which are attributable to his or her contributions, the value of the lump sum which returns employee contributions is equal to the excess of the amount described in paragraph (b)(1) of this section over the amount computed in paragraph (b)(2) of this section.

(1) The amount of accumulated mandatory employee contributions remaining in the plan as of the date of termination plus interest from the date of termination to the date of distribution.

(2) The excess of benefit payments made from the plan between date of plan termination and the date of distribution, over the amount of payments that would have been made if the employee contributions had been paid as a lump sum on the date of plan termination, with interest accumulated on the excess from the date of payment to the date of distribution.

(c) Interest assumptions. The interest rate used under this section to credit interest between the date of termination to the date of distribution shall be a reasonable rate and shall be the same for both paragraphs (a) and (b).

§ 4044.75 Other lump sum benefits.

The value of a lump sum benefit which is not covered under § 4044.73 or § 4044.74 is equal to—

(a) The value under the irrevocable commitment, if an insurer provides the benefit; or

(b) The present value of the benefit as of the date of distribution, determined using reasonable actuarial assumptions, if the benefit is to be distributed other than by the purchase of the benefit from an insurer. The PBGC reserves the right to review the actuarial assumptions as to reasonableness and re-value the benefit if the actuarial assumptions are unreasonable.

[61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011]

eCFR Content