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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
    • The last composite corporate bond rate published at the IRS website is for December 2017, which appears in the 2017 Print Edition. As soon as the IRS resumes updating that webpage, we will post newer rates. The IRS webpage is at http://bit.ly/2G1iX2z.
  • Table 1B: 30-year Treasury rate
    • January 2018: 2.88%
    • February 2018: 3.13%
    • March 2018: 3.09%
    • April 2018: 3.07%
    • May 2018: 3.13%
    • June 2018: 3.05%
    • July 2018: 3.01%
    • August 2018: 3.04%
  • 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 2018: 24-month average segment rate - 1.84% (1st segment), 3.66% (2nd segment), 4.49% (3rd segment)
    • March 2018: 24-month average segment rate - 1.89% (1st segment), 3.66% (2nd segment), 4.46% (3rd segment)
    • April 2018: 24-month average segment rate - 1.94% (1st segment), 3.66% (2nd segment), 4.44% (3rd segment)
    • May 2018: 24-month average segment rate - 2.00% (1st segment), 3.68% (2nd segment), 4.44% (3rd segment)
    • June 2018: 24-month average segment rate - 2.07% (1st segment), 3.70% (2nd segment), 4.43% (3rd segment)
    • July 2018: 24-month average segment rate - 2.14% (1st segment), 3.73% (2nd segment), 4.44% (3rd segment)
    • August 2018: 24-month average segment rate - 2.21% (1st segment), 3.77% (2nd segment), 4.45% (3rd segment)
    • September 2018: 24-month average segment rate - 2.28% (1st segment), 3.81% (2nd segment), 4.46% (3rd segment)
  • Table 1C-2: Monthly Spot Segment Rates
    • January 2018: 2.48% (1st segment), 3.65% (2nd segment), 4.15% (3rd segment)
    • February 2018: 2.72% (1st segment), 3.94% (2nd segment), 4.33% (3rd segment)
    • March 2018: 2.91% (1st segment), 3.99% (2nd segment), 4.43% (3rd segment)
    • April 2018: 2.99% (1st segment), 4.04% (2nd segment), 4.43% (3rd segment)
    • May 2018: 3.08% (1st segment), 4.19% (2nd segment), 4.58% (3rd segment)
    • June 2018: 3.12% (1st segment), 4.20% (2nd segment), 4.60% (3rd segment)
    • July 2018: 3.15% (1st segment), 4.20% (2nd segment), 4.47% (3rd segment)
    • August 2018: 3.10% (1st segment), 4.15% (2nd segment), 4.46% (3rd segment)
  • Table 1C-3: Adjusted 24-month average segment rates to reflect segment rate stabilization rule under IRC §430(h)(2)(C)(iv)
    • Rates for 2019 plan years: 3.92% (1st segment), 5.52% (2nd segment), 6.29% (3rd segment)
  • Table 1D: Minimum present value segment rates for plan years beginning in 2013 and subsequent plan years
    • January 2018: 2.48% (1st segment), 3.65% (2nd segment), 4.15% (3rd segment)
    • February 2018: 2.72% (1st segment), 3.94% (2nd segment), 4.33% (3rd segment)
    • March 2018: 2.91% (1st segment), 3.99% (2nd segment), 4.43% (3rd segment)
    • April 2018: 2.99% (1st segment), 4.04% (2nd segment), 4.43% (3rd segment)
    • May 2018: 3.08% (1st segment), 4.19% (2nd segment), 4.58% (3rd segment)
    • June 2018: 3.12% (1st segment), 4.20% (2nd segment), 4.60% (3rd segment)
    • July 2018: 3.15% (1st segment), 4.20% (2nd segment), 4.47% (3rd segment)
    • August 2018: 3.10% (1st segment), 4.15% (2nd segment), 4.46% (3rd segment)

Table 2: Applicable Federal Mid-Term Rates

  • March 2018: 2.57%, 3.08% (120%), 3.87% (150%), 4.51% (175%)
  • April 2018: 2.72%, 3.27% (120%), 4.09% (150%), 4.79% (175%)
  • May 2018: 2.69%, 3.23% (120%), 4.05% (150%), 4.72% (175%)
  • June 2018: 2.86%, 3.44% (120%), 4.31% (150%), 5.03% (175%)
  • July 2018: 2.87%, 3.45% (120%), 4.33% (150%), 5.05% (175%)
  • August 2018: 2.80%, 3.37% (120%), 4.21% (150%), 4.93% (175%)
  • September 2018: 2.86%, 3.44% (120%), 4.31% (150%), 5.03% (175%)
  • October 2018: 2.83%, 3.40% (120%), 4.26% (150%), 4.98% (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 2018: 5%
  • Third quarter 2018: 5%
  • Fourth quarter 2018: 5%

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

  • March 2018: 0.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • April 2018: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • May 2018: 1.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • June 2018: 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • July 2018: 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • August 2018: 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • September 2018: 1.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%
  • October 2018: 1.25%, 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 2018: 2.48% (1st segment), 3.65% (2nd segment), 4.15% (3rd segment)
  • March 2018: 2.72% (1st segment), 3.94% (2nd segment), 4.33% (3rd segment)
  • April 2018: 2.91% (1st segment), 3.99% (2nd segment), 4.43% (3rd segment)
  • May 2018: 2.99% (1st segment), 4.04% (2nd segment), 4.43% (3rd segment)
  • June 2018: 3.08% (1st segment), 4.19% (2nd segment), 4.58% (3rd segment)
  • July 2018: 3.12% (1st segment), 4.20% (2nd segment), 4.60% (3rd segment)
  • August 2018: 3.15% (1st segment), 4.20% (2nd segment), 4.47% (3rd segment)
  • September 2018: 3.10% (1st segment), 4.15% (2nd segment), 4.46% (3rd segment)

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