cfr_sections
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27 rows where part_number = 4044 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 29:29:9.1.4.17.14.1.18.1 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.1 Purpose and scope. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34605, June 14, 2011; 89 FR 48300, June 6, 2024] | This part implements section 4044 of ERISA, which contains rules for allocating a plan's assets when the plan terminates. These rules have been in effect since September 2, 1974, the date of enactment of ERISA. This part applies to any single-employer plan covered by title IV of ERISA that submits a notice of intent to terminate, or for which PBGC commences an action to terminate the plan under section 4042 of ERISA. (a) Subpart A. Sections 4044.1 through 4044.4 set forth general rules for applying §§ 4044.10 through 4044.17. Sections 4044.10 through 4044.17 interpret the rules and describe procedures for allocating plan assets to priority categories 1 through 6. (b) Subpart B. The purpose of subpart B is to establish the method of determining the value of benefits and assets under terminating single-employer pension plans covered by title IV of ERISA. This valuation is needed for both plans trusteed under title IV and plans which are not trusteed. For the former, the valuation is needed to allocate plan assets in accordance with subpart A of this part and to determine the amount of any plan asset insufficiency. For the latter, the valuation is needed to allocate assets in accordance with subpart A and to distribute the assets in accordance with subpart B of part 4041 of this chapter. (1) Section 4044.41 sets forth the general provisions of subpart B and applies to all terminating single-employer plans. Sections 4044.51 through 4044.58 prescribe the benefit valuation rules for plans that are placed into trusteeship by PBGC, including (in §§ 4044.55 through 4044.58) the rules and procedures a plan administrator shall follow to determine the expected retirement age (XRA) for a plan participant entitled to early retirement benefits for whom the annuity starting date is not known as of the valuation date. This applies to all trusteed plans which have such early retirement benefits. The plan administrator shall determine an XRA under § 4044.55, § 4044.56 or § 4044.57, as appropriate, for each active participant… | |||
| 29:29:9.1.4.17.14.1.18.2 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.2 Definitions. | PBGC | [61 FR 34059, July 1, 1996, as amended at 67 FR 16959, Apr. 8, 2002; 74 FR 11035, Mar. 16, 2009; 76 FR 34605, June 14, 2011; 83 FR 49806, Oct. 3, 2018; 89 FR 48300, June 6, 2024] | (a) The following terms are defined in § 4001.2 of this chapter: annuity, bankruptcy filing date, basic-type benefit, Code, distribution date, earliest retirement age at valuation date, ERISA, expected retirement age (XRA), fair market value, guaranteed benefit, insurer, IRS, irrevocable commitment, majority owner, mandatory employee contributions, nonbasic-type benefit, nonforfeitable benefit, non-PPA 2006 bankruptcy termination, normal retirement age, notice of intent to terminate, PBGC, person, plan, plan administrator, single-employer plan, termination date, unreduced retirement age (URA), and voluntary employee contributions. (b) For purposes of this part: Deferred annuity means an annuity under which the specified date or age at which payments are to begin occurs after the valuation date. Early retirement benefit means an annuity benefit payable under the terms of the plan, under which the participant is entitled to begin receiving payments before his or her normal retirement age and which is not payable on account of the disability of the participant. It may be reduced according to the terms of the plan. Non-trusteed plan means a single-employer plan which is able to close out by purchasing annuities in the private sector Priority category means one of the categories contained in sections 4044 (a)(1) through (a)(6) of ERISA that establish the order in which plan assets are to be allocated. Trusteed plan means a single-employer plan which has been placed into trusteeship by PBGC. Valuation date means (1) for non-trusteed plans, the date of distribution and (2) for trusteed plans, the termination date. (c) For purposes of subpart B of this part (unless otherwise required by the context): Age means the participant's age at his or her nearest birthday and is determined by rounding the individual's exact age to the nearest whole year. Half years are rounded to the next highest year. This is also known as the “insurance age.” (d) For purposes of §§ 4044.55 through 4044.58: Monthly benefit mean… | |||
| 29:29:9.1.4.17.14.1.18.3 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.3 General rule. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34605, June 14, 2011] | (a) Asset allocation. Upon the termination of a single-employer plan, the plan administrator shall allocate the plan assets available to pay for benefits under the plan in the manner prescribed by this subpart. Plan assets available to pay for benefits include all plan assets (valued according to § 4044.41(b)) remaining after the subtraction of all liabilities, other than liabilities for future benefit payments, paid or payable from plan assets under the provisions of the plan. Liabilities include expenses, fees and other administrative costs, and benefit payments due before the allocation date. Except as provided in § 4044.4(b), an irrevocable commitment by an insurer to pay a benefit, which commitment is in effect on the date of the asset allocation, is not considered a plan asset, and a benefit payable under such a commitment is excluded from the allocation process. (b) Allocation date. For plans that close out under § 4041.28 or § 4041.50, assets shall be allocated as of the date plan assets are to be distributed. For other plans, assets shall be allocated as of the termination date. | |||
| 29:29:9.1.4.17.14.1.18.4 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.4 Violations. | PBGC | (a) General. A plan administrator violates ERISA if plan assets are allocated or distributed upon plan termination in a manner other than that prescribed in section 4044 of ERISA and this subpart, except as may be required to prevent disqualification of the plan under the Code and regulations thereunder. (b) Distributions in anticipation of termination. A distribution, transfer, or allocation of assets to a participant or to an insurance company for the benefit of a participant, made in anticipation of plan termination, is considered to be an allocation of plan assets upon termination, and is covered by paragraph (a) of this section. In determining whether a distribution, transfer, or allocation of assets has been made in anticipation of plan termination PBGC will consider all of the facts and circumstances including— (1) Any change in funding or operation procedures; (2) Past practice with regard to employee requests for forms of distribution; (3) Whether the distribution is consistent with plan provisions; and (4) Whether an annuity contract that provides for a cutback based on the guarantee limits in subpart B of part 4022 of this chapter could have been purchased from an insurance company. | ||||
| 29:29:9.1.4.17.14.1.19.10 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.15 Priority category 5 benefits. | PBGC | The benefits assigned to priority category 5 with respect to each participant are all of the participant's nonforfeitable benefits under the plan. | ||||
| 29:29:9.1.4.17.14.1.19.11 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.16 Priority category 6 benefits. | PBGC | The benefits assigned to priority category 6 with respect to each participant are all of the participant's benefits under the plan, whether forfeitable or nonforfeitable. | ||||
| 29:29:9.1.4.17.14.1.19.12 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.17 Subclasses. | PBGC | (a) General rule. A plan may establish one or more subclasses within any priority category, other than priority categories 1 and 2, which subclasses will govern the allocation of assets within that priority category. The subclasses may be based only on a participant's longer service, older age, or disability, or any combination thereof. (b) Limitation. Except as provided in paragraph (c) of this section, whenever the allocation within a priority category on the basis of the subclasses established by the plan increases or decreases the cumulative amount of assets that otherwise would be allocated to guaranteed benefits, the assets so shifted shall be reallocated to other participants' benefits within the priority category in accordance with the subclasses. (c) Exception for subclasses in effect on September 2, 1974. A plan administrator may allocate assets to subclasses within any priority category, other than priority categories 1 and 2, without regard to the limitation in paragraph (b) of this section if, on September 2, 1974, the plan provided for allocation of plan assets upon termination of the plan based on a participant's longer service, older age, or disability, or any combination thereof, and— (1) Such provisions are still in effect; or (2) The plan, if subsequently amended to modify or remove those subclasses, is re-amended to re-establish the same subclasses on or before July 28, 1981. (d) Discrimination under Code. Notwithstanding the provisions of paragraphs (a) through (c) of this section, allocation of assets to subclasses established under this section is permitted only to the extent that the allocation does not result in discrimination prohibited under the Code and regulations thereunder. | ||||
| 29:29:9.1.4.17.14.1.19.5 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.10 Manner of allocation. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34605, June 14, 2011; 83 FR 49806, Oct. 3, 2018] | (a) General. The plan administrator shall allocate plan assets available to pay for benefits under the plan using the rules and procedures set forth in paragraphs (b) through (f) of this section, or any other procedure that results in each participant (or beneficiary) receiving the same benefits he or she would receive if the procedures in paragraphs (b) through (f) were followed. (b) Assigning benefits. The basic-type and nonbasic-type benefits payable with respect to each participant in a terminated plan shall be assigned to one or more priority categories in accordance with §§ 4044.11 through 4044.16. Benefits derived from voluntary employee contributions, which are assigned only to priority category 1, are treated, under section 204(c)(4) of ERISA and section 411(d)(5) of the Code, as benefits under a separate plan. The amount of a benefit payable with respect to each participant shall be determined as of the termination date, but, in a PPA 2006 bankruptcy termination, subject to the limitations in sections 4022(g) and 4044(e) of ERISA (and corresponding provisions of these regulations). (c) Valuing benefits. The value of a participant's benefit or benefits assigned to each priority category shall be determined, as of the allocation date, in accordance with the provisions of subpart B of this part. The value of each participant's basic-type benefit or benefits in a priority category shall be reduced by the value of the participant's benefit of the same type that is assigned to a higher priority category. Except as provided in the next two sentences, the same procedure shall be followed for nonbasic-type benefits. The value of a participant's nonbasic-type benefits in priority categories 3, 5, and 6 shall not be reduced by the value of the participant's nonbasic-type benefit assigned to priority category 2. Benefits in priority category 1 shall neither be included in nor subtracted from lower priority categories. In no event shall a benefit assigned to a priority category be valued at less than zero. … | |||
| 29:29:9.1.4.17.14.1.19.6 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.11 Priority category 1 benefits. | PBGC | (a) Definition. The benefits in priority category 1 are participants' accrued benefits derived from voluntary employee contributions. (b) Assigning benefits. Absent an election described in the next sentence, the benefit assigned to priority category 1 with respect to each participant is the balance of the separate account maintained for the participant's voluntary contributions. If a participant has elected to receive an annuity in lieu of his or her account balance, the benefit assigned to priority category 1 with respect to that participant is the present value of that annuity. | ||||
| 29:29:9.1.4.17.14.1.19.7 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.12 Priority category 2 benefits. | PBGC | [61 FR 34059, July 1, 1996, as amended at 79 FR 70095, Nov. 25, 2014] | (a) Definition. The benefits in priority category 2 are participants' accrued benefits derived from mandatory employee contributions, whether to be paid as an annuity benefit with a pre-retirement death benefit that returns mandatory employee contributions or, if a participant so elects under the terms of the plan and subpart A of part 4022 of this chapter, as a lump sum benefit. Benefits are primarily basic-type benefits although nonbasic-type benefits may also be included as follows: (1) Basic-type benefits. The basic-type benefit in priority category 2 with respect to each participant is the sum of the values of the annuity benefit and the pre-retirement death benefit determined under the provisions of paragraph (c)(1) of this section. (2) Nonbasic-type benefits. If a participant elects to receive a lump sum benefit and if the value of the lump sum benefit exceeds the value of the basic-type benefit in priority category 2 determined with respect to the participant, the excess is a nonbasic-type benefit. There is no nonbasic-type benefit in priority category 2 for a participant who does not elect to receive a lump sum benefit. (b) Conversion of mandatory employee contributions to an annuity benefit. Subject to the limitation set forth in paragraph (b)(3) of this section, a participant's accumulated mandatory employee contributions shall be converted to an annuity form of benefit payable at the normal retirement age or, if the plan provides for early retirement, at the expected retirement age. The conversion shall be made using the interest rates and factors specified in paragraph (b)(2) of this section. The form of the annuity benefit (e.g., straight life annuity, joint and survivor annuity, cash refund annuity, etc.) is the form that the participant or beneficiary is entitled to on the termination date. If the participant does not have a nonforfeitable right to a benefit, other than the return of his or her mandatory contributions in a lump sum, the annuity form of benefit is the form the participan… | |||
| 29:29:9.1.4.17.14.1.19.8 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.13 Priority category 3 benefits. | PBGC | [61 FR 34059, July 1, 1996, as amended at 62 FR 67729, Dec. 30, 1997; 67 FR 16959, Apr. 8, 2002; 67 FR 38003, May 31, 2002; 76 FR 34605, June 14, 2011] | (a) Definition. The benefits in priority category 3 are those annuity benefits that were in pay status before the beginning of the 3-year period ending on the termination date, and those annuity benefits that could have been in pay status (then or as of the next payment date under the plan's rules for starting benefit payments) for participants who, before the beginning of the 3-year period ending on the termination date, had reached their Earliest PBGC Retirement Date (as determined under § 4022.10 of this chapter) based on plan provisions in effect on the day before the beginning of the 3-year period ending on the termination date. For example, in a plan with a termination date of September 1, 2012, the benefits in priority category 3 are those annuity benefits that were in pay status on or before September 1, 2009, and those annuity benefits that could have been in pay status for participants who, on or before September 1, 2009, had reached their Earliest PBGC Retirement Date based on plan provisions in effect on September 1, 2009. Benefit increases, as defined in § 4022.2, that were in effect throughout the 5-year period ending on the termination date, including automatic benefit increases during that period to the extent provided in paragraph (b)(5) of this section, shall be included in determining the priority category 3 benefit. For example, in a plan with a termination date of September 1, 2012, a benefit increase that was in effect throughout the 5-year period from September 2, 2007, to September 1, 2012, is included in priority category 3. Benefits are primarily basic-type benefits, although nonbasic-type benefits will be included if any portion of a participant's priority category 3 benefit is not guaranteeable under the provisions of subpart A of part 4022 and § 4022.21 of this chapter. (b) Assigning benefits. The annuity benefit that is assigned to priority category 3 with respect to each participant is the lowest annuity that was paid or payable under the rules in paragraphs (b)(2) through (b)(… | |||
| 29:29:9.1.4.17.14.1.19.9 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.14 Priority category 4 benefits. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011; 83 FR 49806, Oct. 3, 2018] | The benefits assigned to priority category 4 with respect to each participant are the participant's guaranteed benefits, except as provided in the next sentence. The benefit assigned to priority category 4 with respect to a participant is not limited by the aggregate benefits limitations set forth in § 4022B.1 of this chapter for individuals who are participants in more than one plan or by the guarantee limitation applicable to majority owners set forth in § 4022.26. | |||
| 29:29:9.1.4.17.14.1.20.13 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | A | Subpart A—Allocation of Assets | § 4044.30 [Reserved] | PBGC | |||||
| 29:29:9.1.4.17.14.2.21.1 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.41 General valuation rules. | PBGC | [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] | (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). | |||
| 29:29:9.1.4.17.14.2.22.2 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.51 Benefits to be valued. | PBGC | [61 FR 34059, July 1, 1996, as amended at 89 FR 48300, June 6, 2024] | (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. | |||
| 29:29:9.1.4.17.14.2.22.3 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.52 Valuation of benefits. | PBGC | [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] | 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. | |||
| 29:29:9.1.4.17.14.2.22.4 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.53 Mortality assumptions. | PBGC | [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] | (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… | |||
| 29:29:9.1.4.17.14.2.22.5 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.54 Interest assumptions. | PBGC | [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] | (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 Bon… | |||
| 29:29:9.1.4.17.14.2.23.6 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.55 XRA when a participant must retire to receive a benefit. | PBGC | [61 FR 34059, July 1, 1996, as amended at 89 FR 48306, June 6, 2024] | (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. | |||
| 29:29:9.1.4.17.14.2.23.7 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.56 XRA when a participant need not retire to receive a benefit. | PBGC | [61 FR 34059, July 1, 1996, as amended at 89 FR 48306, June 6, 2024] | (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. | |||
| 29:29:9.1.4.17.14.2.23.8 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.57 Special rule for facility closing. | PBGC | (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. | ||||
| 29:29:9.1.4.17.14.2.23.9 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.58 Tables used to determine expected retirement age. | PBGC | [89 FR 48306, June 6, 2024, as amended at 89 FR 104043, Dec. 20, 2024; 90 FR 59975, Dec. 23, 2025] | 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 ] 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 Table 3 to § 4044.58—Table II-B—Expected Retirement Ages for Individuals in the Medium Category Table 4 to § 4044.58—Table II-C—Expected Retirement Ages for Individuals in the High Category | |||
| 29:29:9.1.4.17.14.2.24.10 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.71 Valuation of annuity benefits. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011] | 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. | |||
| 29:29:9.1.4.17.14.2.24.11 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.72 Form of annuity to be valued. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011] | (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 name… | |||
| 29:29:9.1.4.17.14.2.24.12 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.73 Lump sums and other alternative forms of distribution in lieu of annuities. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011] | (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. | |||
| 29:29:9.1.4.17.14.2.24.13 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.74 Withdrawal of employee contributions. | PBGC | (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). | ||||
| 29:29:9.1.4.17.14.2.24.14 | 29 | Labor | XL | E | 4044 | PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS | B | Subpart B—Valuation of Benefits and Assets | § 4044.75 Other lump sum benefits. | PBGC | [61 FR 34059, July 1, 1996, as amended at 76 FR 34606, June 14, 2011] | 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. |
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title_number INTEGER,
title_name TEXT,
chapter TEXT,
subchapter TEXT,
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