CFR > Title 29 - Labor > SUBTITLE B—Regulations Relating to Labor > CHAPTER XL—PENSION BENEFIT GUARANTY CORPORATION (parts 4000 to 4907) > SUBCHAPTER E—PLAN TERMINATIONS (parts 4041 to 4050) > PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS > SUBPART B—Valuation of Benefits and Assets (§4044.41 to §4044.75) > 4044.73—Lump sums and other alternative forms of distribution in lieu of annuities.

4044.73—Lump sums and other alternative forms of distribution in lieu of annuities.

(a) Valuation. (1) The value of the lump sum or other alternative form of distribution is the present value of the normal form of benefit provided by the plan payable at normal retirement age, determined as of the date of distribution using reasonable actuarial assumptions as to interest and mortality.
(2) If the participant dies before the date of distribution, but had elected a lump sum benefit, the present value shall be determined as if the participant were alive on the date of distribution.
(b) Actuarial assumptions. The plan administrator shall specify the actuarial assumptions used to determine the value calculated under paragraph (a) of this section when the plan administrator submits the benefit valuation data to the PBGC pursuant to § 2617.12 of part 2617 of this chapter. The same actuarial assumptions shall be used for all such calculations. The PBGC reserves the right to review the actuarial assumptions used and to re-value the benefits determined by the plan administrator if the actuarial assumptions are found to be unreasonable.
(See Note at beginning of part 4044.)

Code of Federal Regulations

Effective Date Note: At 76 FR 34606, June 14, 2011, § 4044.73 was amended by removing “pursuant to § 2617.12 ofpart 2617 of this chapter” in the first sentence of paragraph (b), and by removing “(See Note at beginning of part 4044.)” at the end of the section, effective July 14, 2011.