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Interest Rate Tables

The table below shows relevant interest rate tables affecting worplace retirement plans. Except where indicated, the rates shown are for the most recent 12-month period.

Benchmark interest rates for certain defined benefit plan calculations

The rates below are used for various funding calculations under IRC §430 and for distribution calculations under IRC §417(e).

  • 30-year Treasury rate
    • October 2018: 3.34%
    • November 2018: 3.36%
    • December 2018: 3.10%
    • January 2019: 2.92%
    • February 2019: 3.02%
    • March 2019: 2.98%
    • April 2019: 2.94%
    • May 2019: 2.82%
    • June 2019: 2.57%
    • July 2019: 2.57%
    • August 2019: 2.90%
    • September 2019: 2.16%
  • Corporate bond yield curve segment rates for target normal cost and funding target calculations [see the Adjusted 24-month Average Rates below for the adjusted rates after application of the 25-year average stablization rule under IRC §430(h)(2)(C)(iv)]
    • November 2018: 24-month average segment rate - 2.43% (1st segment), 3.89% (2nd segment), 4.49% (3rd segment)
    • December 2018: 24-month average segment rate - 2.50% (1st segment), 3.92% (2nd segment), 4.50% (3rd segment)
    • January 2019: 24-month average segment rate - 2.55% (1st segment), 3.93% (2nd segment), 4.49% (3rd segment)
    • February 2019: 24-month average segment rate - 2.60% (1st segment), 3.94% (2nd segment), 4.49% (3rd segment)
    • March 2019: 24-month average segment rate - 2.65% (1st segment), 3.95% (2nd segment), 4.48% (3rd segment)
    • April 2019: 24-month average segment rate - 2.68% (1st segment), 3.95% (2nd segment), 4.46% (3rd segment)
    • May 2019: 24-month average segment rate - 2.71% (1st segment), 3.96% (2nd segment), 4.45% (3rd segment)
    • June 2019: 24-month average segment rate - 2.74% (1st segment), 3.96% (2nd segment), 4.44% (3rd segment)
    • July 2019: 24-month average segment rate - 2.76% (1st segment), 3.95% (2nd segment), 4.43% (3rd segment)
    • August 2019: 24-month average segment rate - 2.78% (1st segment), 3.94% (2nd segment), 4.41% (3rd segment)
    • September 2019: 24-month average segment rate - 2.79% (1st segment), 3.92% (2nd segment), 4.38% (3rd segment)
    • October 2019: 24-month average segment rate - 2.79% (1st segment), 3.90% (2nd segment), 4.35% (3rd segment)
  • Monthly Spot Segment Rates
    • October 2018: 3.33% (1st segment), 4.39% (2nd segment), 4.72% (3rd segment)
    • Npvember 2018: 3.43% (1st segment), 4.46% (2nd segment), 4.88% (3rd segment)
    • December 2018: 3.38% (1st segment), 4.32% (2nd segment), 4.69% (3rd segment)
    • January 2019: 3.19% (1st segment), 4.25% (2nd segment), 4.60% (3rd segment)
    • February 2019: 3.01% (1st segment), 4.11% (2nd segment), 4.41% (3rd segment)
    • March 2019: 2.86% (1st segment), 4.00% (2nd segment), 4.42% (3rd segment)
    • April 2019: 2.79% (1st segment), 3.88% (2nd segment), 4.33% (3rd segment)
    • May 2019: 2.72% (1st segment), 3.76% (2nd segment), 4.33% (3rd segment)
    • June 2019: 2.41% (1st segment), 3.51% (2nd segment), 4.16% (3rd segment)
    • July 2019: 2.34% (1st segment), 3.38% (2nd segment), 4.01% (3rd segment)
    • August 2019: 2.09% (1st segment), 3.00% (2nd segment), 3.61% (3rd segment)
    • September 2019: 2.13% (1st segment), 3.07% (2nd segment), 3.65% (3rd segment)
  • Adjusted 24-month average segment rates to reflect segment rate stabilization rule under IRC §430(h)(2)(C)(iv) [Plan years beginning before 2021 reflect 90% of the 25-year average segment rates, as required by IRC §430(h)(2)(C)(iv)]
    Use of these percentages: Where the
    segment rate stabilization rule applies (e.g., determining minimum funding obligations under IRC §430), if the 24-month yield curve segment rates shown above for the applicable month are less than the rate below for the year in which the plan year begins, substitute the adjusted segment rates shown below.
    • Rates for plan years beginning in 2018: 3.92% (1st segment), 5.52% (2nd segment), 6.29% (3rd segment)
    • Rates for plan years beginning in 2019: 3.74% (1st segment), 5.35% (2nd segment), 6.11% (3rd segment)
    • Rates for plan years beginning in 2020: 3.64% (1st segment), 5.21% (2nd segment), 5.94% (3rd segment)
  • Minimum present value segment rates for plan years beginning in 2013 and subsequent plan years [The applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average, and correspond to the spot segment rates described above]
    • October 2018: 3.33% (1st segment), 4.39% (2nd segment), 4.72% (3rd segment)
    • November 2018: 3.43% (1st segment), 4.46% (2nd segment), 4.88% (3rd segment)
    • December 2018: 3.38% (1st segment), 4.32% (2nd segment), 4.69% (3rd segment)
    • January 2019: 3.19% (1st segment), 4.25% (2nd segment), 4.60% (3rd segment)
    • February 2019: 3.01% (1st segment), 4.11% (2nd segment), 4.41% (3rd segment)
    • March 2019: 2.86% (1st segment), 4.00% (2nd segment), 4.42% (3rd segment)
    • April 2019: 2.79% (1st segment), 3.88% (2nd segment), 4.33% (3rd segment)
    • May 2019: 2.72% (1st segment), 3.76% (2nd segment), 4.33% (3rd segment)
    • June 2019: 2.41% (1st segment), 3.51% (2nd segment), 4.16% (3rd segment)
    • July 2019: 2.34% (1st segment), 3.38% (2nd segment), 4.01% (3rd segment)
    • August 2019: 2.09% (1st segment), 3.00% (2nd segment), 3.61% (3rd segment)
    • September 2019: 2.13% (1st segment), 3.07% (2nd segment), 3.65% (3rd segment)

Applicable Federal Mid-Term Rates[Note: The applicable federal mid-term rate is determined pursuant to IRC §1274. For retirement plans, 120% of this rate is used to calculate accumulated mandatory contributions under a DB plan (IRC §411(c)(2)(C)), 150% of this rate is used to calculate the amortization payments on a waived funding deficiency, unless the plan's interest assumption is greater (IRC §412(d)), 175% of this rate is used to determine charges against the funding standard account for missed quarterly installment payments, unless the plan's interest assumption is greater (IRC §412(m))]

  • December 2018: 3.07%, 3.69% (120%), 4.63% (150%), 5.41% (175%)
  • January 2019: 2.89%, 3.47% (120%), 4.36% (150%), 5.08% (175%)
  • February 2019: 2.63%, 3.15% (120%), 3.96% (150%), 4.62% (175%)
  • March 2019: 2.59%, 3.10% (120%), 3.90% (150%), 4.55% (175%)
  • April 2019: 2.55%, 3.06% (120%), 3.84% (150%), 4.48% (175%)
  • May 2019: 2.37%, 2.85% (120%), 3.57% (150%), 4.17% (175%)
  • June 2019: 2.38%, 2.86% (120%), 3.59% (150%), 4.19% (175%)
  • July 2019: 2.08%, 2.50% (120%), 3.13% (150%), 3.65% (175%)
  • August 2019: 1.87%, 2.24% (120%), 2.81% (150%), 3.29% (175%)
  • September 2019: 1.78%, 2.13% (120%), 2.68% (150%), 3.12% (175%)
  • October 2019: 1.51%, 1.81% (120%), 2.26% (150%), 2.65% (175%)
  • November 2019: 1.59%, 1.91% (120%), 2.38% (150%), 2.79% (175%)

Quarterly interest rate charges for underpayment of federal taxes (IRC §6621(a)(2)) [Note: The DOL uses these rates to calculate Lost Earnings under its Voluntary Fiduciary Compliance Program. The PBGC uses these rates to calculate interest charges on late premium payments.]

  • First quarter 2019: 6%
  • Second quarter 2019: 6%
  • Third quarter 2019: 5%
  • Fourth quarter 2019: 5%

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

  • November 2018: 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • December 2018: 1.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • January 2019: : 1.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • February 2019: : 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • March 2019: : 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • April 2019: : 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • May 2019: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • June 2019: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • July 2019: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • August 2019: 0.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • September 2019: 0.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • October ber 2019: 0.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • November 2010: 0.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

Spot segment rates for VRP calculations in post-2007 plan years [Note: These rates are based on the spot segment rates that would be used for minimum funding purposes, using such rates in effect for the month preceding the month in which the plan year begins; the 24-month average segment rates (shown above) apply instead to planes that elect to use an alternative premium funding target to determine unfunded benefits for VRP calculations]

  • November 2018: 3.33% (1st segment), 4.39% (2nd segment), 4.72% (3rd segment)
  • December 2018: 3.43% (1st segment), 4.46% (2nd segment), 4.88% (3rd segment)
  • January 2019: 3.38% (1st segment), 4.32% (2nd segment), 4.69% (3rd segment)
  • February 2019: 3.19% (1st segment), 4.25% (2nd segment), 4.60% (3rd segment)
  • March 2019: 3.01% (1st segment), 4.11% (2nd segment), 4.41% (3rd segment)
  • April 2019: 2.86% (1st segment), 4.00% (2nd segment), 4.42% (3rd segment)
  • May 2019: 2.79% (1st segment), 3.88% (2nd segment), 4.33% (3rd segment)
  • June 2019: 2.72% (1st segment), 3.76% (2nd segment), 4.33% (3rd segment)
  • July 2019: 2.41% (1st segment), 3.51% (2nd segment), 4.16% (3rd segment)
  • August 2019: 2.34% (1st segment), 3.38% (2nd segment), 4.01% (3rd segment)
  • September 2019: 2.09% (1st segment), 3.00% (2nd segment), 3.61% (3rd segment)
  • October 2019: 2.13% (1st segment), 3.07% (2nd segment), 3.65% (3rd segment)

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