Appendix C to Part 4022 - Lump Sum Interest Rates for Private-Sector Payments
29:9.1.5.16.8.7.20.5.8 : Appendix C
Appendix C to Part 4022 - Lump Sum Interest Rates for
Private-Sector Payments
[In using this table:
(1) To determine the applicable rate set for any given month
(month x), use the applicable 12-year rate for the second preceding
month (month x−2) to find the corresponding rate set. The
applicable 12-year rate for the second preceding month is the
12-year rate from the corporate bond yield curve described in
section 430(h)(2)(D)(ii) of the Code determined without regard to
24-month averaging for the second month preceding the month of the
desired applicable rate set.
(2) For benefits for which the participant or beneficiary is
entitled to be in pay status on the valuation date, the immediate
annuity rate shall apply.
(3) For benefits for which the deferral period is y years (where
y is an integer and 0 < y ≤ 7), interest rate i1 shall apply
from the valuation date for a period of y years; thereafter the
immediate annuity rate shall apply.
(4) For benefits for which the deferral period is y years (where
y is an integer and 7 < y ≤ 15), interest rate i2 shall apply
from the valuation date for a period of y−7 years; interest rate i1
shall apply for the following 7 years; thereafter the immediate
annuity rate shall apply.
(5) For benefits for which the deferral period is y years (where
y is an integer and y > 15), interest rate i3 shall apply from
the valuation date for a period of y−15 years; interest rate i2
shall apply for the following 8 years; interest rate i1 shall apply
for the following 7 years; thereafter the immediate annuity rate
shall apply.]
For Plans With a Valuation Date On or After
January 1, 2021
Applicable
12-year rate for month x−2
(percent) |
Applicable rate
set for month x |
Immediate
annuity rate
(percent) |
Deferred annuity
rates
(percent) |
| i1 |
i2 |
i3 |
| Below 3.18 |
0.00 |
4.00 |
4.00 |
4.00 |
| 3.18 to 3.40 |
0.25 |
4.00 |
4.00 |
4.00 |
| 3.41 to 3.63 |
0.50 |
4.00 |
4.00 |
4.00 |
| 3.64 to 3.87 |
0.75 |
4.00 |
4.00 |
4.00 |
| 3.88 to 4.10 |
1.00 |
4.00 |
4.00 |
4.00 |
| 4.11 to 4.34 |
1.25 |
4.00 |
4.00 |
4.00 |
| 4.35 to 4.57 |
1.50 |
4.00 |
4.00 |
4.00 |
| 4.58 to 4.81 |
1.75 |
4.00 |
4.00 |
4.00 |
| 4.82 to 5.04 |
2.00 |
4.00 |
4.00 |
4.00 |
| 5.05 to 5.28 |
2.25 |
4.00 |
4.00 |
4.00 |
| 5.29 to 5.51 |
2.50 |
4.00 |
4.00 |
4.00 |
| 5.52 to 5.75 |
2.75 |
4.00 |
4.00 |
4.00 |
| 5.76 to 5.98 |
3.00 |
4.00 |
4.00 |
4.00 |
| 5.99 to 6.22 |
3.25 |
4.00 |
4.00 |
4.00 |
| 6.23 to 6.46 |
3.50 |
4.00 |
4.00 |
4.00 |
| 6.47 to 6.69 |
3.75 |
4.00 |
4.00 |
4.00 |
| 6.70 to 6.93 |
4.00 |
4.00 |
4.00 |
4.00 |
| 6.94 to 7.16 |
4.25 |
4.00 |
4.00 |
4.00 |
| 7.17 to 7.40 |
4.50 |
4.00 |
4.00 |
4.00 |
| 7.41 to 7.64 |
4.75 |
4.00 |
4.00 |
4.00 |
| 7.65 to 7.87 |
5.00 |
4.25 |
4.00 |
4.00 |
| 7.88 to 8.11 |
5.25 |
4.50 |
4.00 |
4.00 |
| 8.12 to 8.35 |
5.50 |
4.75 |
4.00 |
4.00 |
| 8.36 to 8.58 |
5.75 |
5.00 |
4.00 |
4.00 |
| 8.59 to 8.82 |
6.00 |
5.25 |
4.00 |
4.00 |
| 8.83 to 9.06 |
6.25 |
5.50 |
4.25 |
4.00 |
| 9.07 to 9.30 |
6.50 |
5.75 |
4.50 |
4.00 |
| 9.31 to 9.53 |
6.75 |
6.00 |
4.75 |
4.00 |
| 9.54 to 9.78 |
7.00 |
6.25 |
5.00 |
4.00 |
| 9.79 to 10.02 |
7.25 |
6.50 |
5.25 |
4.00 |
| Above 10.02 |
7.50 |
6.75 |
5.50 |
4.00 |
[85 FR 55591, Sept. 9, 2020]