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The ERISA Outline Book - Rate Tables

The following entries are rates issued after the publication of the 2017 Print Edition of The ERISA Outline Book. For explanations of the use of these rates, consult the introductory material for each table, as provided in the current edition of the book.

Table 1: Benchmark interest rates for certain defined benefit plan calculations

  • Table 1A: Composite corporate bond rate
    • January 2017: 4.09%
    • February 2017: 4.11%
    • March 2017: 4.16%
    • April 2017: 4.01%
    • May 2017: 3.99%
    • June 2017: 3.82%
    • July 2017: 3.83%
    • August 2017: 3.78%
    • September 2017: 3.77%
    • October 2017: 3.77%
  • Table 1B: 30-year Treasury rate
    • January 2017: 3.02%
    • February 2017: 3.03%
    • March 2017: 3.08%
    • April 2017: 2.94%
    • May 2017: 2.96%
    • June 2017: 2.80%
    • July 2017: 2.88%
    • August 2017: 2.80%
    • September 2017: 2.78%
    • October 2017: 2.88%
  • Table 1C-1: Corporate bond yield curve segment rates (see Table 1C-3 below for the adjusted rates after application of the 25-year average stablization rule under IRC §430(h)(2)(C)(iv))
    • February 2017: 24-month average segment rate - 1.60% (1st segment), 3.79% (2nd segment), 4.74% (3rd segment)
    • March 2017: 24-month average segment rate - 1.62% (1st segment), 3.80% (2nd segment), 4.75% (3rd segment)
    • April 2017: 24-month average segment rate - 1.65% (1st segment), 3.82% (2nd segment), 4.76% (3rd segment)
    • May 2017: 24-month average segment rate - 1.68% (1st segment), 3.83% (2nd segment), 4.77% (3rd segment)
    • June 2017: 24-month average segment rate - 1.71% (1st segment), 3.83% (2nd segment), 4.75% (3rd segment)
    • July 2017: 24-month average segment rate - 1.72% (1st segment), 3.80% (2nd segment), 4.72% (3rd segment)
    • August 2017: 24-month average segment rate - 1.73% (1st segment), 3.78% (2nd segment), 4.69% (3rd segment)
    • September 2017: 24-month average segment rate - 1.75% (1st segment), 3.76% (2nd segment), 4.66% (3rd segment)
    • October 2017: 24-month average segment rate - 1.76% (1st segment), 3.74% (2nd segment), 4.63% (3rd segment)
    • November 2017: 24-month average segment rate - 1.77% (1st segment), 3.73% (2nd segment), 4.60% (3rd segment)
  • Table 1C-2: Monthly Spot Segment Rates
    • January 2017: 2.00% (1st segment), 3.91% (2nd segment), 4.66% (3rd segment)
    • February 2017: 1.96% (1st segment), 3.91% (2nd segment), 4.69% (3rd segment)
    • March 2017: 2.06% (1st segment), 3.95% (2nd segment), 4.75% (3rd segment)
    • April 2017: 1.96% (1st segment), 3.78% (2nd segment), 4.66% (3rd segment)
    • May 2017: 1.96% (1st segment), 3.77% (2nd segment), 4.62% (3rd segment)
    • June 2017: 1.96% (1st segment), 3.80% (2nd segment), 4.72% (3rd segment)
    • July 2017: 1.97% (1st segment), 3.66% (2nd segment), 4.37% (3rd segment)
    • August 2017: 1.93% (1st segment), 3.57% (2nd segment), 4.36% (3rd segment)
    • September 2017: 1.96% (1st segment), 3.58% (2nd segment), 4.35% (3rd segment)
    • October 2017: 2.05% (1st segment), 3.61% (2nd segment), 4.27% (3rd segment)
  • Table 1C-3: Adjusted 24-month average segment rates to reflect segment rate stabilization rule under IRC §430(h)(2)(C)(iv)
    • For a plan year beginning in 2018, where the segment rate stabilization rule must be applied, the applicable rate in Table C-1 is adjusted to be no less than the 90% corridor and no more than the 110% corridor shown in the table below. Due to the historically low interest rates yielded by the 24-month average shown in Table C-1, the 90% corridor rates will apply instead. In Notice 2017-50, the IRS announced the 25-year average rates for the period beginning October 1, 1992, and ending September 30, 2017, as 4.35% (1st segment), 6.13% (2nd segment), and 6.99% (3rd segment), which apply to segment rate stabilization for 2018 plan years. Accordingly, where rate stablization applies, the following segment rates apply for the 2018 plan year instead of the rates shown in Table 1C-1:
      • 3.92% (1st segment), 5.52% (2nd segment), and 6.29% (3rd segment)
  • Table 1D: Minimum present value segment rates for plan years beginning in 2013 and subsequent plan years
    • January 2017: 2.00% (1st segment), 3.91% (2nd segment), 4.66% (3rd segment)
    • February 2017: 1.96% (1st segment), 3.91% (2nd segment), 4.69% (3rd segment)
    • March 2017: 2.06% (1st segment), 3.95% (2nd segment), 4.75% (3rd segment)
    • April 2017: 1.96% (1st segment), 3.78% (2nd segment), 4.66% (3rd segment)
    • May 2017: 1.96% (1st segment), 3.77% (2nd segment), 4.62% (3rd segment)
    • June 2017: 1.96% (1st segment), 3.80% (2nd segment), 4.72% (3rd segment)
    • July 2017: 1.97% (1st segment), 3.66% (2nd segment), 4.37% (3rd segment)
    • August 2017: 1.93% (1st segment), 3.57% (2nd segment), 4.36% (3rd segment)
    • September 2017: 1.96% (1st segment), 3.58% (2nd segment), 4.35% (3rd segment)
    • October 2017: 2.05% (1st segment), 3.61% (2nd segment), 4.27% (3rd segment)

Table 2: Applicable Federal Mid-Term Rates

  • March 2017: 2.05%, 2.47% (120%), 3.08% (150%), 3.60% (175%)
  • April 2017: 2.12%, 2.55% (120%), 3.20% (150%), 3.72% (175%)
  • May 2017: 2.04%, 2.45% (120%), 3.07% (150%), 3.58% (175%)
  • June 2017: 1.96%, 2.35% (120%), 2.95% (150%), 3.44% (175%)
  • July 2017: 1.89%, 2.27% (120%), 2.84% (150%), 3.32% (175%)
  • August 2017: 1.95%, 2.34% (120%), 2.93% (150%), 3.43% (175%)
  • September 2017: 1.94%, 2.33% (120%), 2.92% (150%), 3.41% (175%)
  • October 2017: 1.85%, 2.22% (120%), 2.78% (150%), 3.25% (175%)
  • November 2017: 2.00%, 2.40% (120%), 3.01% (150%), 3.51% (175%)
  • December 2017: 2.11%, 2.54% (120%), 3.17% (150%), 3.71% (175%)

Table 3A: Weighted average and permissible range using long-term corporate bond rate

Since the weighted average and permissing range are no longer applicable to IRC §430 minimum funding calculations, and the IRS no longer includes these factors in its monthly publication of corporate bond rates and IRC §417(e) rates, we have discontinued publishing these facts after 2013. To obtain post-2013 factors, go to http://www.irs.gov/Retirement-Plans/Composite-Corporate-Bond-Rate-Table.

Table 4: Quarterly interest rate charges for underpayment of federal taxes

  • Second quarter 2017: 4%
  • Third quarter 2017: 4%
  • Fourth quarter 2017: 4%
  • First quarter 2018: 4%

Table 5: PBGC Interest Rates To Compute Lump Sums for Private-Sector Plans

  • March 2017: 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • April 2017: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • May 2017: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • June 2017: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • July 2017: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • August 2017: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • September 2017: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • October 2017: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • November 2017: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • December 2017: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • January 2018: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

Table 6A: Spot segment rates for VRP calculations in post-2007 plan years

  • February 2017: 2.00% (1st segment), 3.91% (2nd segment), 4.66% (3rd segment)
  • March 2017: 1.96% (1st segment), 3.91% (2nd segment), 4.69% (3rd segment)
  • April 2017: 2.06% (1st segment), 3.95% (2nd segment), 4.75% (3rd segment)
  • May 2017: 1.96% (1st segment), 3.78% (2nd segment), 4.66% (3rd segment)
  • June 2017: 1.96% (1st segment), 3.77% (2nd segment), 4.62% (3rd segment)
  • July 2017: 1.96% (1st segment), 3.80% (2nd segment), 4.72% (3rd segment)
  • August 2017: 1.97% (1st segment), 3.66% (2nd segment), 4.37% (3rd segment)
  • September 2017: 1.93% (1st segment), 3.57% (2nd segment), 4.36% (3rd segment)
  • October 2017: 1.96% (1st segment), 3.58% (2nd segment), 4.35% (3rd segment)
  • November 2017: 2.05% (1st segment), 3.61% (2nd segment), 4.27% (3rd segment)

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