PBGC Raises Rates for Terminating Single-Employer Pension Plans

The Pension Benefit Guaranty Corporation is amending the interest rates that terminating single-employer pension plans use to value their benefits.

First-quarter 2023 interest rate assumptions will be 4.86% for the first 20 years following the valuation date and 4.70% afterward. That’s a 0.96% increase in select and 1.05% increase in ultimate rates over the fourth quarter of 2022.

The federal government’s private-sector pension insurer sets interest rate assumptions for the valuation of terminating pension plans covered by the Employee Retirement Income Security Act each quarter.

Interest rate assumptions determine the likely return on investments for plans that are terminating and ...