Billing Code 7709‑02‑P

PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
SUMMARY: This final rule amends the Pension Benefit Guaranty Corporation’s regulation on
Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the asset
allocation regulation for plans with valuation dates of July 1 – July 30, 2024. These interest
assumptions are used for valuing benefits under terminating single-employer plans and for other
purposes.
DATES: Effective July 1, 2024.
FOR FURTHER INFORMATION CONTACT: Monica O’Donnell
(odonnell.monica@pbgc.gov), Attorney, Office of the General Counsel, Pension Benefit
Guaranty Corporation, 445 12th Street SW, Washington, DC 20024–2101, 202–229–8706. If
you are deaf or hard of hearing or have a speech disability, please dial 7–1–1 to access
telecommunications relay services.
SUPPLEMENTARY INFORMATION: PBGC’s regulation on Allocation of Assets in
Single‑Employer Plans (29 CFR part 4044) prescribes actuarial assumptions — including
interest assumptions — for valuing benefits under terminating single‑employer plans covered by
title IV of the Employee Retirement Income Security Act of 1974 (ERISA). The interest
assumptions in the regulation are also posted on PBGC’s website (www.pbgc.gov).
PBGC uses the interest assumptions in appendix B to part 4044 (“Interest Rates Used to
Value Benefits”) to determine the present value of annuities in an involuntary or distress
termination of a single-employer plan under the asset allocation regulation. The assumptions are
also used to determine the value of multiemployer plan benefits and certain assets when a plan

terminates by mass withdrawal in accordance with PBGC’s regulation on Duties of Plan Sponsor
Following Mass Withdrawal (29 CFR part 4281).
The July 1 – July 30, 2024 interest assumptions will be 5.11 percent for the first 20 years
following the valuation date and 4.83 percent thereafter. In comparison with the interest
assumptions in effect for the second quarter of 2024, these interest assumptions represent no
change in the select period (the period during which the select rate (the initial rate) applies), a
decrease of 0.39 percent in the select rate, and no change in the ultimate rate (the final rate).
This final rule is the last rule that PBGC will publish for the interest assumption using the
select and ultimate approach. On June 6, 2024, PBGC issued a final rule at 89 FR 48291 that
changes the structure of the interest assumption for valuation dates on or after July 31, 2024,
from the select and ultimate approach to a yield curve approach. As described in the June 6 final
rule, under the yield curve approach, the interest assumption is based on a blend of two publicly
available yield curves that is adjusted to the extent necessary so that the resulting liabilities align
with group annuity prices. PBGC will determine and publish those adjustments (i.e., “spreads”)
quarterly based on survey data on pricing of private-sector group annuities.
Need for Immediate Guidance
PBGC has determined that notice of, and public comment on, this rule are impracticable,
unnecessary, and contrary to the public interest. PBGC routinely updates the interest
assumptions in appendix B of the asset allocation regulation each quarter so that they are
available to value benefits. Accordingly, PBGC finds that the public interest is best served by
issuing this rule expeditiously, without an opportunity for notice and comment, and that good
cause exists for making the assumptions set forth in this amendment effective less than 30 days
after publication.
PBGC has determined that this action is not a “significant regulatory action” under the
criteria set forth in Executive Order 12866.

Because no general notice of proposed rulemaking is required for this amendment, the
Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2).
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension insurance, Pensions.
In consideration of the foregoing, 29 CFR part 4044 is amended as follows:
PART 4044 — ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
1. The authority citation for part 4044 continues to read as follows:
Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.
2. In appendix B to part 4044, an entry for “July 2024, other than July 31” is added at the
end of the table to read as follows:
Appendix B to Part 4044 ‑‑ Interest Rates Used to Value Benefits
*

*

*

*

*

For valuation dates occurring The values of it are:
in the month —
it
for t =
*
*
*
*

it

July 2024, other than July 31

0.0483

0.0511

1-20

for t =
*

it

for t =
*

N/A

N/A

*
>20

Issued in Washington, DC, by
Gregory Katz,
Deputy Assistant General Counsel for Regulatory Affairs,
Pension Benefit Guaranty Corporation.
[FR Doc. 2024-13047 Filed: 6/13/2024 8:45 am; Publication Date: 6/14/2024]