29 C.F.R. §§ 4044.41–4044.58

§4044.41. General valuation rules.

29 C.F.R. § 4044.41

(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).

Notes, amendments, and revision history

Amendments

[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]

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

[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]

§4044.51. Benefits to be valued.

29 C.F.R. § 4044.51

(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.

Notes, amendments, and revision history

Amendments

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

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

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

§4044.52. Valuation of benefits.

29 C.F.R. § 4044.52

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.

Notes, amendments, and revision history

Amendments

[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]

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

[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.

29 C.F.R. § 4044.53

(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 [email protected]. 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.

(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.

(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.

(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.

Notes, amendments, and revision history

Amendments

[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]

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

[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.

29 C.F.R. § 4044.54

(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.

Notes, amendments, and revision history

Amendments

[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]

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

[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]

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

29 C.F.R. § 4044.55

(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.

Notes, amendments, and revision history

Amendments

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

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

[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.

29 C.F.R. § 4044.56

(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.

Notes, amendments, and revision history

Amendments

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

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

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

§4044.57. Special rule for facility closing.

29 C.F.R. § 4044.57

(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.

Notes, amendments, and revision history

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

§4044.58. Tables used to determine expected retirement age.

29 C.F.R. § 4044.58

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

Notes, amendments, and revision history

Amendments

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

Authority

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

Source

Source: 61 FR 34059, July 1, 1996, unless otherwise noted.

Amendments

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