Key IRS Interest After PPA (updated upon release of figures in IRS Notice usually by the end of the first full business week of the month) Below are Tables I, II, and III showing official interest rates reflecting changes made by the PPA and MAP-21. Explanations of the various rates can be found at the bottom of the tables. Key IRS interest rates for the years 1991 through 2003, 2004 through 2007 and 2008 through 2011 are posted separately. For rates before 1991, contact the Buck Knowledge Center. Click here for a link to the IRS website containing the posted rates. Click here for the complete monthly PPA yield curves. Table I Primary (see explanation of rates directly below table) Section 430 Section 430 Segment MAP-21 Section 430 Segment (24-month (24-month ) with 25-year Corridor) 1 st 2 nd 3 rd 1 st 2 nd 3 rd Jan 14 1.25 4.06 5.08 Jan 14 Feb 14 1.22 4.06 5.09 Feb 14 Section 430 Segment MAP-21 Section 430 Segment (24-month (24-month ) with 25-year Corridor) 1 st 2 nd 3 rd 1 st 2 nd 3 rd Jan 13 1.62 4.40 5.45 Jan 13 Feb 13 1.58 4.34 5.38 Feb 13 Mar 13 1.54 4.28 5.32 Mar 13 Apr 13 1.50 4.22 5.26 Apr 13 May 13 1.46 4.15 5.20 May 13
Key IRS - After PPA Jun 13 1.43 4.10 5.15 Jun 13 Jul 13 1.41 4.07 5.11 Jul 13 Aug 13 1.39 4.05 5.08 Aug 13 Sep 13 1.37 4.05 5.06 Sep 13 Oct 13 1.35 4.05 5.05 Oct 13 Nov 13 1.31 4.05 5.05 Nov 13 Dec 13 1.28 4.05 5.07 Dec 13 Section 430 Segment (24-month ) MAP-21 Section 430 Segment (24-month with 25-year Corridor) 1 st 2 nd 3 rd 1 st 2 nd 3 rd Jan 12 1.98 5.07 6.19 Jan 12 Feb 12 1.96 5.01 6.13 Feb 12 Mar 12 1.93 4.95 6.07 Mar 12 Apr 12 1.90 4.90 6.01 Apr 12 May 12 1.87 4.84 5.96 May 12 Jun 12 1.84 4.79 5.90 Jun 12 Jul 12 1.81 4.73 5.85 Jul 12 Aug 12 1.77 4.67 5.78 Aug 12 Sep 12 1.75 4.62 5.72 Sep 12 Oct 12 1.72 4.58 5.67 Oct 12 Nov 12 1.69 4.53 5.60 Nov 12 Dec 12 1.66 4.47 5.52 Dec 12 2013 - - - 2013 - - - 2013 - - - 2013 - - - https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]
Key IRS - After PPA Section 430 Segment (24-month ) MAP-21 Section 430 Segment (24-month with 25-year Corridor) 1 st 2 nd 3 rd 1 st 2 nd 3 rd Sep 11 2.06 5.25 6.32 Sep 11 Oct 11 2.03 5.20 6.30 Oct 11 Nov 11 2.01 5.16 6.28 Nov 11 Dec 11 1.99 5.12 6.24 Dec 11 Section 417(e)(3) Section 417 (3) Segment 1 st 2 nd 3 rd Jan 14 any 1.25 4.57 5.60 Feb 14 any 1.24 4.42 5.40 Jan 13 Section 417 (3) Segment 1 st 2 nd 3 rd 2011 1.38 3.43 4.39 2012 1.00 3.57 4.77 2013 1.00 3.57 4.77 Feb 13 any 1.00 3.73 4.89 Mar 13 any 0.99 3.82 5.02 Apr 13 any 0.97 3.82 5.11 May 13 any 0.93 3.61 4.88 Jun 13 any 0.97 3.76 5.01 Jul 13 any 1.24 4.25 5.43 Aug 13 any 1.34 4.45 5.44 Sep 13 any 1.36 4.60 5.58 https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]
Key IRS - After PPA Oct 13 any 1.40 4.66 5.62 Nov 13 any 1.24 4.47 5.52 Dec 13 any 1.19 4.53 5.66 (c) Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Section 417(e)(3) Segment 1 st 2 nd 3 rd 2011 2.25 4.16 4.79 2012 2.07 4.45 5.24 2011 2.08 4.09 4.76 2012 1.84 4.36 5.19 2011 1.87 4.04 4.69 2012 1.56 4.27 5.08 2011 1.91 4.14 4.80 2012 1.57 4.36 5.18 2011 1.87 4.08 4.75 2012 1.54 4.30 5.14 2011 1.86 3.88 4.62 2012 1.59 4.12 5.04 2011 1.82 3.72 4.48 2012 1.60 3.97 4.93 2011 1.49 3.45 4.12 2012 1.22 3.66 4.50 2011 1.46 3.52 4.17 2012 1.13 3.71 4.52 2011 1.39 3.54 4.31 2012 1.02 3.71 4.67 2013 1.02 3.71 4.67 2011 1.35 3.44 4.24 2012 0.96 3.57 4.58 2013 0.96 3.57 4.58 2011 1.34 3.36 4.24 2012 0.97 3.50 4.60 2013 0.97 3.50 4.60 Explanation of for table (by column) Multiple plan year rows are shown for the Section 430 With Transition rates and the Section 417(e)(3) rates due to the https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]
Key IRS - After PPA PPA transition rules (i.e., the phase-in percentages vary based on plan year). For example, under the 430 With Transition rules, the rates for October 2008 could apply to an October 1, 2008 plan year using no lookback (in which case the rate used would be 66-2/3% of the 30- Treasury rate plus 33-1/3% of the non-transition segment rates), or to a January 1, 2009 plan year with a 3-month lookback (in which case the rate used would be 33-1/3% of the 30- Treasury rate plus 66-2/3% of the non-transition segment rates). - The Pension Protection Act of 2006 (PPA) added Section 430 to the IRC regarding the funding rules for single employer plans, which are generally effective beginning with 2008 plan years. Section 430 specifies the interest rates to be used to determine funding target and target normal cost. - Section 430(h)(2) provides that funding target and target normal cost are determined using three 24-month average interest rates ( segment rates ) derived from a Treasury-issued corporate bond yield curve. These segment rates apply to cash flows during specified periods. However, an election may be made to use the full yield curve in place of the segment rates. - These columns show rates used for the month shown if no lookback month is used. If a plan uses a lookback month, earlier rates would be used. For example, the rates shown for January 2008 are the rates derived from the period ending with December 2007, and can be used for January 2008 valuation dates if no lookback month is used. - Effective beginning with 2012 plan years, MAP-21 provides that, for purposes of determining minimum required contributions, AFTAP, and certain other purposes, each 430 segment rate is adjusted to fall within a corridor determined as specified percentages of the average of the segment rates for the 25-year period ending on September 30 preceding the calendar year that includes the first day of the plan year. The corridor percentages as shown in this table: For plan years beginning in Use the 25-year average for the period ending Minimum Percentage Maximum Percentage 2012 9/30/11 90% 110% 2013 9/30/12 85% 115% 2014 9/30/13 80% 120% 2015 9/30/14 75% 125% After 2015 9/30 of prior year 70% 130% (c) The Pension Protection Act of 2006 (PPA) provides that the applicable interest rates under Section 417(e)(3) are the segment rates computed without regard to a 24-month average. For the 2008 through 2011 plan years, the applicable interest rate is the monthly segment rates blended with the pre-ppa 417(e)(3) applicable rates (i.e., the 30- Treasury rates) (see Table III below). This column shows rates used for the month shown if the first lookback month is used. If a plan uses an earlier lookback month or period, earlier rates would be used. For example, the rates shown for January 2008 are the rates derived from December 2007, and can be used for January 2008 stability periods if the lookback is one month. If a plan s 417(e)(3) rate is the rate for the second full calendar month preceding the applicable stability period, the rates shown for December 2009 derived from November 2009 are used for stability periods beginning January 2010. Table II Segment The first, second and third segment rates beginning September 2005 are shown in the following table. These rates are used to derive the 24-month average segment rates and the minimum present value transitional segment rates. Beginning with 2008 plan years, these rates are also used to determine the present value of vested benefits for purposes of the PBGC variable-rate premium (i.e., the premium funding target ). For premium purposes, the applicable segment rates are the rates for the month preceding the month in which the plan year begins (e.g., for plan years beginning in January 2008, the December 2007 segment rates should be used). Segment https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]
Key IRS - After PPA 1 st 2014 1.24 2 nd 2014 4.42 3 rd 2014 5.40 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec 1 st 2013 1.00 0.99 0.97 0.93 0.97 1.24 1.34 1.36 1.40 1.24 1.19 1.25 2 nd 2013 3.73 3.82 3.82 3.61 3.76 4.25 4.45 4.60 4.66 4.47 4.53 4.57 3 rd 2013 4.89 5.02 5.11 4.88 5.01 5.43 5.44 5.58 5.62 5.52 5.66 5.60 1 st 2012 1.84 1.56 1.57 1.54 1.59 1.60 1.22 1.13 1.02 0.96 0.97 1.00 2 nd 2012 4.36 4.27 4.36 4.30 4.12 3.97 3.66 3.71 3.71 3.57 3.50 3.57 3 rd 2012 5.19 5.08 5.18 5.14 5.04 4.93 4.50 4.52 4.67 4.58 4.60 4.77 1 st 2011 1.93 2.02 1.91 1.93 1.72 1.7 1.72 1.85 1.98 2.09 1.99 2.07 2 nd 2011 5.25 5.34 5.23 5.23 5.00 4.99 4.97 4.62 4.49 4.56 4.47 4.45 3 rd 2011 6.42 6.54 6.46 6.44 6.21 6.33 6.28 6.02 5.80 5.50 5.26 5.24 1 st 2010 2.31 2.29 2.29 2.3 2.34 2.35 2.06 1.81 1.74 1.56 1.65 1.98 2 nd 2010 5.64 5.77 5.65 5.60 5.42 5.35 5.10 4.81 4.75 4.73 4.91 5.23 3 rd 2010 6.47 6.63 6.58 6.47 6.26 6.29 6.11 5.88 6.03 6.22 6.52 6.52 1 st 2009 5.2 5.24 5.70 5.12 4.27 3.89 3.39 3.08 2.73 2.60 2.35 2.35 2 nd 2009 6.80 7.07 7.53 7.15 7.00 6.59 6.28 5.94 5.63 5.58 5.57 5.65 3 rd 2009 6.31 7.08 7.85 6.92 6.77 6.55 6.47 6.21 6.07 6.07 6.29 6.45 1 st 2008 4.39 4.11 4.28 4.60 4.67 4.99 5.16 5.21 5.86 7.35 7.11 6.72 2 nd 2008 6.01 6.18 6.38 6.28 6.36 6.64 6.88 6.87 7.35 8.61 8.23 7.12 3 rd 2008 6.72 7.05 6.99 6.96 6.77 6.95 7.04 6.91 6.88 7.26 7.42 6.36 1 st 2007 5.35 5.31 5.13 5.23 5.32 5.58 5.53 5.4 5.28 5.17 4.92 4.93 2 nd 2007 5.78 5.76 5.68 5.81 5.85 6.21 6.22 6.20 6.12 6.02 6.02 6.13 3 rd 2007 6.22 6.13 6.19 6.34 6.32 6.61 6.60 6.66 6.55 6.38 6.47 6.69 1 st 2006 4.96 5.19 5.27 5.43 5.52 5.67 5.67 5.46 5.32 5.33 5.25 5.16 2 nd 2006 5.49 5.61 5.77 6.06 6.19 6.21 6.19 5.98 5.81 5.81 5.64 5.60 3 rd 2006 6.14 6.09 6.31 6.67 6.79 6.78 6.75 6.59 6.42 6.36 6.07 6.09 1 st 2005 4.44 4.78 4.95 4.96 2 nd 2005 5.23 5.50 5.60 5.54 3 rd 2005 6.05 6.27 6.34 6.24 Shown in the table below are the first, second and third 25-year average segment rates as determined under MAP-21. The MAP- 21 corridor percentages are applied to these rates to determine the corridor for Section 430 segment rates. Segment 25- Period Ending 9/30 For s Beginning in 1 st 2013 2014 5.54 2 nd 2013 2014 7.02 3 rd 2013 2014 7.77 1 st 2012 2013 5.81 2 nd 2012 2013 7.23 3 rd 2012 2013 7.95 1 st 2011 2012 6.15 2 nd 2011 2012 7.61 3 rd 2011 2012 8.35 https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]
Key IRS - After PPA Table III 30- Treasury and Corporate Composite Bond (see explanation of rates directly below table) The 30- Treasury rates are used to determine the Section 417 rates under PPA during the required transition period (2008 2011). The corridor around the 4-year weighted average of the 30- Treasury rates is used to calculate current liability for multiemployer plans beginning with 2008. The 4-year weighted average of the Corporate Composite Bond rates is used to determine the Section 430(h) funding rates under PPA during the transition period (2008 2009). s Starting in 30- Treasury Rate 30- Treasury 4-90% of 4-105% of 4- Jan 14 3.89 3.46 3.12 3.64 Feb 14 3.77 3.46 3.12 3.63 s Starting in 30- Treasury Rate 30- Treasury 4-90% of 4-105% of 4- Jan 13 2.88 3.60 3.24 3.78 Feb 13 3.08 3.57 3.22 3.75 Mar 13 3.17 3.55 3.19 3.72 Apr 13 3.16 3.52 3.17 3.69 May 13 2.93 3.48 3.13 3.66 Jun 13 3.11 3.45 3.11 3.63 Jul 13 3.40 3.44 3.09 3.61 Aug 13 3.61 3.43 3.09 3.60 Sep 13 3.76 3.43 3.09 3.61 Oct 13 3.79 3.44 3.10 3.62 Nov 13 3.68 3.45 3.10 3.62 Dec 13 3.80 3.46 3.11 3.63 s Starting in 30- Treasury Rate 30- Treasury 4-90% of 4-105% of 4- https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]
Key IRS - After PPA Jan 12 2.98 4.08 3.67 4.29 Feb 12 3.03 4.04 3.64 4.25 Mar 12 3.11 4.00 3.60 4.20 Apr 12 3.28 3.97 3.57 4.17 May 12 3.18 3.93 3.54 4.13 Jun 12 2.93 3.88 3.49 4.08 Jul 12 2.70 3.83 3.44 4.02 Aug 12 2.59 3.77 3.39 3.96 Sep 12 2.77 3.73 3.35 3.91 Oct 12 2.88 3.69 3.32 3.88 Nov 12 2.90 3.66 3.30 3.84 Dec 12 2.80 3.63 3.26 3.81 Rate 4- Wght d Avg Rate 4- Wght d Avg Composite Corporate Bond Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec 2013 3.98 - - - - - - - - - - - 2013 5.01 - - - - - - - - - - - 2012 4.71 4.56 4.49 4.57 4.54 4.39 4.27 3.97 4.01 4.05 3.93 3.91 2012 5.72 5.67 5.61 5.55 5.50 5.44 5.38 5.31 5.25 5.20 5.13 5.07 Explanation of for table (by column) & Beginning February 18, 2002 the Treasury stopped supplying an estimate of the 30-year constant maturity yield for the FRB H.15 release. In March 2002, the IRS released Notice 2002-26 which indicated that the 30- Treasury rate will be the average of the daily yields on the Treasury bond maturing in February 2031. Currently, the 30- Treasury rate is the average of the daily yields on the most recently issued 30-year Treasury bond. For 2004 and 2005 plan years, the Pension Funding Equity Act of 2004 replaced the use of the interest on 30- Treasury securities with "interest on amounts invested conservatively in long-term investment grade corporate bonds". IRS Notice 2004-34 defines this Composite Corporate Bond Rate to be based on the following three indices for September 2000 and later: Citigroup High Grade Credit Index (AAA/AA, 10+ s), Merrill Lynch US Corporates AA- AAA Rated 10+ s, and Lehman Brothers US A Long Credit. The monthly Composite Corporate Bond Rate is determined by first averaging the daily values for the yield to maturity for the bonds included in each of the indices (determined by the financial service firm maintaining the index), and then averaging those three monthly amounts. The Pension Protection Act of 2006 extended the use of these rates for 2006 and 2007 plan years. The 4-year weighted average is determined by giving a weight of 4 to the most recent 12 monthly rates, 3 to the rates that are 13-24 months in the past, 2 to the rates that are 25-36 months in the past, and 1 to the rates that are 37-48 months in the past. https://www.bucknet.buckconsultants.com/sites/krc/nlrc/key%20indicators/key%20irs%20%20-%20after%20ppa-map.htm[2/21/2014 10:43:12 AM]