PBGC missing participants assumptions
PBGC missing participants assumptions means the actuarial assumptions prescribed in 4044.51 through 4044.57 of this chapter with the following modifications:
(1) The present value is determined as of the benefit determination date instead of the plan termination date.
(2) The mortality assumption is a fixed blend of 50 percent of the healthy male mortality rates in § 4044.53(c)(1) of this chapter and 50 percent of the healthy female mortality rates in § 4044.53(c)(2) of this chapter.
(3) No adjustment is made for loading expenses under § 4044.52(d) of this chapter.
(4) The interest assumption used is the assumption applicable to valuations occurring in January of the calendar year in which the benefit determination date occurs.
(5) The assumed payment form of a benefit not in pay status is a straight life annuity.
(6) Pre-retirement death benefits are disregarded.
(7) Notwithstanding the expected retirement age (XRA) assumptions in §§ 4044.55 through 4044.57 of this chapter,—
(i) In the case of a participant who is not in pay status and whose normal retirement date is on or after the benefit determination date, benefits are assumed to commence at the XRA, determined using the high retirement rate category under Table II–C of appendix D to part 4044 of this chapter;
(ii) In the case of a participant who is not in pay status and whose normal retirement date is before the benefit determination date, benefits are assumed to commence on the participant's normal retirement date (or accrual cessation date if later);
(iii) In the case of a participant who is in pay status, benefits are assumed to commence on the date on which benefits actually commenced; and
(iv) In the case of a beneficiary, benefits are assumed to commence on the benefit determination date or, if later, the earliest date the beneficiary can begin to receive benefits.
Source
29 CFR § 4050.302
Scoping language
The following terms are defined in 4001.2 of this chapter: Annuity, Code, ERISA, PBGC, person, and plan administrator. In addition, for purposes of this subpart: