IRS Proposes New Funding Rules for Traditional Employer Pension Plans

The IRS is proposing updated regulations governing how single-employer defined-benefit pension plans calculate minimum funding requirements. The proposal does not itself announce a change to retirees’ monthly pension payments.

The Internal Revenue Service has issued a notice of proposed rulemaking that would update the regulations governing how single-employer defined benefit pension plans calculate their minimum funding requirements, according to an official announcement published in the Federal Register on August 20, 2026.

What the Proposed Pension Rules Would Change