Column (1) is the market yield on U.S. Treasury
securities at 30-year constant maturity quoted on investment basis. These were
the interest rates used for 415 and 417(e) purposes for plan years beginning
prior to 1/1/2008.
Column (2) is the average, determined by the IRS, of
the monthly yields for corporate bond indices pursuant to Notice 2004-34. These
are used to determine the corporate bond weighted average interest rate and the
resulting permissible range of interest rates (Column 7) used to calculate the
old current liability values prior to 2008.
Column (3) rates are currently used exclusively for
determining IRC 404(o) amounts since 2012. They are the 24-month average
corporate bond segment rates without adjustment by the applicable percentage of
25-year average segment rates. Prior to 2012, these rates were also used for IRC
430 minimum funding requirements and IRC 436 AFTAP certifications with an option
to use them in 2012.
Column (4) are IRC 430(h)(2)(C) interest rates for
minimum funding requirements and IRC 436 AFTAP certifications since 2012. They
the 24-month average corporate bond segment rates as adjusted by the applicable
percentage of the 25-year average segment rates. There was an option in 2012 to
use the old 404(o) rates, but could not use these rates for AFTAP if not used
Column (5) are IRC 417(e) minimum present value
segment rates for lump sum and period certain only annuities since 2008.
Column (6) rates are used to value vested benefit for
PBGC variable premiums since 2008. Note that for plan years beginning in 2012
and later, they are the same as the IRC 417(e) minimum present value segment
rates (Column 5)
Column (7) shows the range of interest rates, which
are still published by the IRS, for the old Current Liability amounts for
funding purposes prior to 2008.
Column (8) rates were used to calculate interest
charges for late or missed quarterly contribution requirements prior to 2008.
Column (9) are the interest rates used for
accumulating employee contributions in Defined Benefit plans.
- Funding Yield Curve Segment Rates: