{"id":2443,"date":"2024-09-03T13:26:55","date_gmt":"2024-09-03T17:26:55","guid":{"rendered":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/?p=2443"},"modified":"2024-09-03T13:26:58","modified_gmt":"2024-09-03T17:26:58","slug":"take-note-of-pbgcs-new-single-employer-pension-plan-valuation-assumptions-and-methods","status":"publish","type":"post","link":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/take-note-of-pbgcs-new-single-employer-pension-plan-valuation-assumptions-and-methods\/","title":{"rendered":"Take Note of PBGC\u2019s New Single Employer Pension Plan Valuation Assumptions and Methods"},"content":{"rendered":"<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2024\/09\/pbgc-final-rule-1024x683.jpeg\" alt=\"The PBGC issued a rule updating the interest mortality and expense assumptions for SEPs\" class=\"wp-image-2444\" srcset=\"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2024\/09\/pbgc-final-rule-1024x683.jpeg 1024w, https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2024\/09\/pbgc-final-rule-300x200.jpeg 300w, https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2024\/09\/pbgc-final-rule-768x512.jpeg 768w, https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2024\/09\/pbgc-final-rule.jpeg 1125w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<p class=\"leading\">In June 2024, the Pension Benefit Guaranty Corporation (PBGC) issued its final rule updating the interest mortality and expense assumptions used to determine the present value of benefits for Single Employer Pension plans (SEPs) under subpart B of the PBGC\u2019s regulations on Allocation of Assets in SEPs. This is to determine components of mass withdrawal liability for a multiemployer pension plan and other purposes. The final rule is basically the same as the proposed rule published in August 2023 except for certain technical and editorial changes.<\/p>\n<h2 class=\"wp-block-heading\">Final Rule\u2019s Primary Elements<\/h2>\n<p>Following are the major provisions of the PBGC\u2019s final rules:<\/p>\n<ul>\n<li>Modernizing the interest assumption by adopting a yield curve approach<\/li>\n<li>Enabling the use of market interest rates as of the date of liability measurement (i.e., the valuation date) as the basis for the interest assumption<\/li>\n<li>Increasing transparency by using a procedure based on publicly available yield curves as of the valuation date<\/li>\n<li>Adopting a more recent mortality table along with a generational mortality improvement projection<\/li>\n<li>Simplifying the expense assumption<\/li>\n<\/ul>\n<p>The final rule uses the ERISA 4044 mortality table for healthy lives, which is derived from the tables in the Private Retirement Plans Mortality Tables Report which was published by the Society of Actuaries in 2019.&nbsp;This table is then projected generationally using a prescribed mortality improvement scale.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In June 2024, the Pension Benefit Guaranty Corporation (PBGC) issued its final rule updating the interest mortality and expense assumptions used to determine the present value of benefits for Single Employer Pension plans (SEPs) under subpart B of the PBGC\u2019s regulations on Allocation of Assets in SEPs. This is to determine components of mass withdrawal&#8230;  <a class=\"excerpt-read-more\" href=\"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/take-note-of-pbgcs-new-single-employer-pension-plan-valuation-assumptions-and-methods\/\" title=\"Read Take Note of PBGC\u2019s New Single Employer Pension Plan Valuation Assumptions and Methods\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/2443"}],"collection":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/comments?post=2443"}],"version-history":[{"count":1,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/2443\/revisions"}],"predecessor-version":[{"id":2445,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/2443\/revisions\/2445"}],"wp:attachment":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/media?parent=2443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/categories?post=2443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/tags?post=2443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}