PBGC amends regulation on allocation of assets in single-employer plans for 2014

The PBGC regulation that governs the allocation of assets in single-employer plans and sets forth the methods for valuing benefits of terminating single-employer plans covered by ERISA has been amended. The regulation provides a new table that applies to any plan being terminated, either in a distress termination or an involuntary termination by the PBGC, with a valuation date falling in 2014, and is used to determine expected retirement ages for plan participants. This table is needed in order to compute the value of early retirement benefits and, thus, the total value of benefits under the plan.

Source: Amendment to Table I-14, Selection of Retirement Rate Category.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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