Hi proEdj,
Let me rephrase the last statement in my previous response. We did have post-yield in the seal ridge area on the freeze plugs. (There was a visible impression or groove left in post-mortiem examinations of the adjacent sealing surface which means that the material exceeded yield and went somewhere); AND, there were no problems with loosing, or loss of seal, or structural integrity of the plug or the surrounding material.
Again, consider the post-yield performance of 3XX SST particularly the plate stock you are working with (50 to 55% elongation). How about this analogy? Buy some taffy candy. Buy a new shirt. Take the twenty or so pins out of the new shirt and force them into the taffy. Did the taffy split apart or show signs of cracking? Was there post-yield of the taffy? (Ans: yes out along the axis of the pins). Do the pins loosen or fall out? Does the taffy have good post yield performance, ie. high ductility?
Don't be concerned with those small local areas where (Mechanica?) shows stress exceeds yield unless it is a structure that undergoes numerous load and stress reversals. Even though there can be local flow of material immediately around the interference fit, there is a prevailing load back onto the pin generated by all of the elastically strained material around the hole, beyond the small area that shows post-yield stress. You can experimentally verify this by using a special strain gage for measuring compression strain. 1) Insert the pin, 2) apply the gage over the pin and hole and null out the instrumentation, 3) drill out the pin and 4) measure the residual strain in the gage.
Also consider this: "Ductile materials under compression loading merely swell or buckle without fracture, hence do not have a compressive ultimate strength." In addition, those troublesome safety factors you mentioned are not intended to be applied as a blanket to *static* loaded transition areas in highly ductile material where localized post-yield material flow can redistribute and reduce stresses in a safe manner.