A news release from the Pension Benefit Guaranty Corporation (PBGC) said the regulation aims to match the cost of terminating a pension plan through the purchase of group annuity contracts in the private sector.
The amendment would update PBGC’s mortality table from a version of GAM 83 to a version of GAM 94 Basic projected, to provide for longer life expectancies and otherwise to conform to updated tables insurance companies use. The proposed regulation appeared in Monday’s Federal Register.
By employing updated mortality assumptions, PBGC’s interest factors can continue to produce valuation results that match private sector group annuity prices, according to the agency announcement.
More information about the agency is at www.pbgc.gov .