The Erisa Outline Book- Updates to Rate Tables

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The ERISA Outline Book

Rate Tables

The following entries are rates issued after the publication of the 2010 Edition of The ERISA Outline Book. The tables are organized in the same order as those in Part C. of Section II of Chapter 15: Table 1: Benchmark interest rates for certain defined benefit plan calculations (Composite corporate bond rate in Table 1A; 30-year Treasury rate in Table 1B; Corporate bond yield curve segment rates (2008 plan years); Corporate bond yield curve segment rates (2009 plan years); Monthly Spot Segment Rates; Minimum present value segment rates in Table 1D), Table 2: Federal Mid-Term Rates, Table 3A: Weighted Average Interest Rates (based on corporate bond rate), Table 4: Quarterly Interest Rate Charges for Underpayment of Federal Taxes, Table 5: PBGC Interest Rates to Compute Lump Sums for Private Sector Plans, and Table 6A: Spot segment rates for VRP calculations in post-2007 plan years. 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 2010: 5.88%
February 2010: 6.01%
March 2010: 5.90%
April 2010: 5.84%
May 2010: 5.67%
June 2010: 5.66%

Table 1B: 30-year Treasury rate
January 2010: 4.60%
February 2010: 4.62%
March 2010: 4.65%
April 2010: 4.69%
May 2010: 4.29%
June 2010: 4.13%

Table 1C-1: Corporate bond yield curve segment rates (2010 plan years)
February 2010: 24-month average segment rate - 4.51% (1st segment), 6.64% (2nd segment), 6.75% (3rd segment)
March 2010: 24-month average segment rate - 4.44% (1st segment), 6.62% (2nd segment), 6.74% (3rd segment)
April 2010: 24-month average segment rate - 4.35% (1st segment), 6.59% (2nd segment), 6.72% (3rd segment)
May 2010: 24-month average segment rate - 4.26% (1st segment), 6.56% (2nd segment), 6.70% (3rd segment)
June 2010: 24-month average segment rate - 4.16% (1st segment), 6.52% (2nd segment), 6.68% (3rd segment)
July 2010: 24-month average segment rate - 4.05% (1st segment), 6.47% (2nd segment), 6.65% (3rd segment)

Table 1C-1: Corporate bond yield curve segment rates (2009 plan years)
February 2010: 24-month average segment rate - 4.51% (1st segment), 6.64% (2nd segment), 6.75% (3rd segment); funding transitional segment rate - 5.14% (1st segment), 6.56% (2nd segment), 6.64% (3rd segment)
March 2010: 24-month average segment rate - 4.44% (1st segment), 6.62% (2nd segment), 6.74% (3rd segment); funding transitional segment rate - 5.09% (1st segment), 6.55% (2nd segment), 6.63% (3rd segment)
April 2010: 24-month average segment rate - 4.35% (1st segment), 6.59% (2nd segment), 6.72% (3rd segment); funding transitional segment rate - 5.03% (1st segment), 6.52% (2nd segment), 6.61% (3rd segment)
May 2010: 24-month average segment rate - 4.26% (1st segment), 6.56% (2nd segment), 6.70% (3rd segment); funding transitional segment rate - 4.96% (1st segment), 6.50% (2nd segment), 6.59% (3rd segment)
June 2010: 24-month average segment rate - 4.16% (1st segment), 6.52% (2nd segment), 6.68% (3rd segment); funding transitional segment rate - 4.89% (1st segment), 6.46% (2nd segment), 6.57% (3rd segment)
July 2010: 24-month average segment rate - 4.05% (1st segment), 6.47% (2nd segment), 6.65% (3rd segment); funding transitional segment rate - 4.81% (1st segment), 6.42% (2nd segment), 6.54% (3rd segment)

Table 1C-2: Monthly Spot Segment Rates
January 2010: 2.31% (1st segment), 5.64% (2nd segment), 6.47% (3rd segment)
February 2010: 2.29% (1st segment), 5.77% (2nd segment), 6.63% (3rd segment)
March 2010: 2.29% (1st segment), 5.65% (2nd segment), 6.58% (3rd segment)
April 2010: 2.30% (1st segment), 5.60% (2nd segment), 6.47% (3rd segment)
May 2010: 2.34% (1st segment), 5.42% (2nd segment), 6.26% (3rd segment)
June 2010: 2.35% (1st segment), 5.35% (2nd segment), 6.29% (3rd segment)
Table 1D: Minimum present value segment rates for plan years beginning in 2010
January 2010: 3.23% (1st segment), 5.22% (2nd segment), 5.72% (3rd segment)
February 2010: 3.22% (1st segment), 5.31% (2nd segment), 5.83% (3rd segment)
March 2010: 3.23% (1st segment), 5.25% (2nd segment), 5.81% (3rd segment)
April 2010: 3.26% (1st segment), 5.24% (2nd segment), 5.76% (3rd segment)
May 2010: 3.12% (1st segment), 4.97% (2nd segment), 5.47% (3rd segment)
June 2010: 3.06% (1st segment), 4.86% (2nd segment), 5.43% (3rd segment)

Table 1D: Minimum present value segment rates for plan years beginning in 2009
January 2010: 3.68% (1st segment), 5.02% (2nd segment), 5.35% (3rd segment)
February 2010: 3.69% (1st segment), 5.08% (2nd segment), 5.42% (3rd segment)
March 2010: 3.71% (1st segment), 5.05% (2nd segment), 5.42% (3rd segment)
April 2010: 3.73% (1st segment), 5.05% (2nd segment), 5.40% (3rd segment)
May 2010: 3.51% (1st segment), 4.74% (2nd segment), 5.08% (3rd segment)
June 2010: 3.42% (1st segment), 4.62% (2nd segment), 4.99% (3rd segment)

Table 2: Federal Mid-Term Rates

March 2010: 2.69%, 3.23% (120%), 4.05% (150%), 4.72% (175%)

April 2010: 2.70%, 3.25% (120%), 4.06% (150%), 4.74% (175%)

May 2010: 2.87%, 3.45% (120%), 4.33% (150%), 5.05% (175%)

June 2010: 2.72%, 3.27% (120%), 4.09% (150%), 4.79% (175%)

July 2010: 2.35%, 2.83% (120%), 3.54% (150%), 4.14% (175%)

August 2010: 2.18%, 2.62% (120%), 3.29% (150%), 3.84% (175%)

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

February 2010: 6.41% (5.77% to 6.41% permissible range)

March 2010: 6.40% (5.76% to 6.40% permissible range)

April 2010: 6.39% (5.75% to 6.39% permissible range)

May 2010: 6.37% (5.73% to 6.37% permissible range)

June 2010: 6.34% (5.71% to 6.34% permissible range)

July 2010: 6.32% (5.68% to 6.32% permissible range)

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

Second quarter 2010: 4%

Third quarter 2010: 4%

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

March 2010: 2.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

April 2010: 2.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

May 2010: 3.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

June 2010: 2.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

July 2010: 2.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

August 2010: 2.25%, 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 2010: 2.31% (1st segment), 5.64% (2nd segment), 6.47% (3rd segment)

March 2010: 2.29% (1st segment), 5.77% (2nd segment), 6.63% (3rd segment)

April 2010: 2.29% (1st segment), 5.65% (2nd segment), 6.58% (3rd segment)

May 2010: 2.30% (1st segment), 5.60% (2nd segment), 6.47% (3rd segment)

June 2010: 2.34% (1st segment), 5.42% (2nd segment), 6.26% (3rd segment)

July 2010: 2.35% (1st segment), 5.35% (2nd segment), 6.29% (3rd segment)

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Last updated 20.7.2010