24 Sep 2025
📊Key Updates on Pension Asset Allocation and Interest Assumptions
Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing Benefits
Summary
This final rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans to prescribe the spreads component of the interest assumption under the asset allocation regulation for plans with valuation dates of October 31, 2025-January 30, 2026. These interest assumptions are used for valuing benefits under terminating single-employer plans and for other purposes.
Agencies
- Pension Benefit Guaranty Corporation
Business Impact
$$$ - High
The regulation impacts single-employer plans governed by ERISA, specifying interest rate assumptions for valuation. Businesses must ensure compliance with these updated assumptions when managing pension liabilities, affecting financial planning and reporting obligations.