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 2009 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 2009: 6.47%
February 2009: 6.83%
March 2009: 7.22%
April 2009: 7.05%
May 2009: 6.95%
June 2009: 6.64%
July 2009: 6.39%
August 2009: 6.03%
September 2009: 5.79%
October 2009: 5.76%
November 2009: 5.79%
December 2009: 5.88%
January 2010: 5.88%
February 2010: 6.01%

Table 1B: 30-year Treasury rate
January 2009: 3.13%
February 2009: 3.59%
March 2009: 3.64%
April 2009: 3.76%
May 2009: 4.23%
June 2009: 4.52%
July 2009: 4.41%
August 2009: 4.37%
September 2009: 4.19%
October 2009: 4.19%
November 2009: 4.31%
December 2009: 4.49%
January 2010: 4.60%
February 2010: 4.62%

Table 1C-1: Corporate bond yield curve segment rates (2008 plan years)
February 2009: 24-month average segment rate - 5.31% (1st segment), 6.49% (2nd segment), 6.69% (3rd segment); funding transitional segment rate - 5.98% (1st segment), 6.38% (2nd segment), 6.44% (3rd segment)
March 2009: 24-month average segment rate - 5.31% (1st segment), 6.54% (2nd segment), 6.73% (3rd segment); funding transitional segment rate - 6.00% (1st segment), 6.41% (2nd segment), 6.48% (3rd segment)
April 2009: 24-month average segment rate - 5.33% (1st segment), 6.62% (2nd segment), 6.80% (3rd segment); funding transitional segment rate - 6.04% (1st segment), 6.47% (2nd segment), 6.53% (3rd segment)
May 2009: 24-month average segment rate - 5.33% (1st segment), 6.68% (2nd segment), 6.82% (3rd segment); funding transitional segment rate - 6.06% (1st segment), 6.51% (2nd segment), 6.56% (3rd segment)
June 2009: 24-month average segment rate - 5.28% (1st segment), 6.72% (2nd segment), 6.84% (3rd segment); funding transitional segment rate - 6.07% (1st segment), 6.55% (2nd segment), 6.59% (3rd segment)
July 2009: 24-month average segment rate - 5.21% (1st segment), 6.74% (2nd segment), 6.84% (3rd segment); funding transitional segment rate - 6.05% (1st segment), 6.56% (2nd segment), 6.59% (3rd segment)
August 2009: 24-month average segment rate - 5.12% (1st segment), 6.74% (2nd segment), 6.83% (3rd segment); funding transitional segment rate - 6.03% (1st segment), 6.57% (2nd segment), 6.60% (3rd segment)
September 2009: 24-month average segment rate - 5.03% (1st segment), 6.73% (2nd segment), 6.82% (3rd segment); funding transitional segment rate - 5.99% (1st segment), 6.56% (2nd segment), 6.59% (3rd segment)
October 2009: 24-month average segment rate - 4.92% (1st segment), 6.71% (2nd segment), 6.80% (3rd segment); funding transitional segment rate - 5.95% (1st segment), 6.54% (2nd segment), 6.57% (3rd segment)
November 2009: 24-month average segment rate - 4.81% (1st segment), 6.69% (2nd segment), 6.78% (3rd segment); funding transitional segment rate - 5.90% (1st segment), 6.52% (2nd segment), 6.55% (3rd segment)
December 2009: 24-month average segment rate - 4.71% (1st segment), 6.67% (2nd segment), 6.77% (3rd segment); funding transitional segment rate - 5.85% (1st segment), 6.50% (2nd segment), 6.54% (3rd segment)

Table 1C-2: Corporate bond yield curve segment rates (2009 plan years)
February 2009: 24-month average segment rate - 5.31% (1st segment), 6.49% (2nd segment), 6.69% (3rd segment); funding transitional segment rate - 5.65% (1st segment), 6.43% (2nd segment), 6.57% (3rd segment)
March 2009: 24-month average segment rate - 5.31% (1st segment), 6.54% (2nd segment), 6.73% (3rd segment); funding transitional segment rate - 5.66% (1st segment), 6.48% (2nd segment), 6.60% (3rd segment)
April 2009: 24-month average segment rate - 5.33% (1st segment), 6.62% (2nd segment), 6.80% (3rd segment); funding transitional segment rate - 5.68% (1st segment), 6.54% (2nd segment), 6.66% (3rd segment)
May 2009: 24-month average segment rate - 5.33% (1st segment), 6.68% (2nd segment), 6.82% (3rd segment); funding transitional segment rate - 5.70% (1st segment), 6.60% (2nd segment), 6.69% (3rd segment)
June 2009: 24-month average segment rate - 5.28% (1st segment), 6.72% (2nd segment), 6.84% (3rd segment); funding transitional segment rate - 5.67% (1st segment), 6.63% (2nd segment), 6.71% (3rd segment)
July 2009: 24-month average segment rate - 5.21% (1st segment), 6.74% (2nd segment), 6.84% (3rd segment); funding transitional segment rate - 5.63% (1st segment), 6.65% (2nd segment), 6.72% (3rd segment)
August 2009: 24-month average segment rate - 5.12% (1st segment), 6.74% (2nd segment), 6.83% (3rd segment); funding transitional segment rate - 5.57% (1st segment), 6.65% (2nd segment), 6.71% (3rd segment)
September 2009: 24-month average segment rate - 5.03% (1st segment), 6.73% (2nd segment), 6.82% (3rd segment); funding transitional segment rate - 5.51% (1st segment), 6.64% (2nd segment), 6.70% (3rd segment)
October 2009: 24-month average segment rate - 4.92% (1st segment), 6.71% (2nd segment), 6.80% (3rd segment); funding transitional segment rate - 5.43% (1st segment), 6.63% (2nd segment), 6.69% (3rd segment)
November 2009: 24-month average segment rate - 4.81% (1st segment), 6.69% (2nd segment), 6.78% (3rd segment); funding transitional segment rate - 5.35% (1st segment), 6.61% (2nd segment), 6.67% (3rd segment)
December 2009: 24-month average segment rate - 4.71% (1st segment), 6.67% (2nd segment), 6.77% (3rd segment); funding transitional segment rate - 5.28% (1st segment), 6.59% (2nd segment), 6.65% (3rd segment)
January 2010: 24-month average segment rate - 4.60% (1st segment), 6.65% (2nd segment), 6.76% (3rd segment); funding transitional segment rate - 5.21% (1st segment), 6.57% (2nd segment), 6.65% (3rd segment)
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)
January 2010 (for plan years beginning in 2010): 24-month average segment rate - 4.60% (1st segment), 6.65% (2nd segment), 6.76% (3rd segment) (there is no transitional rule for post-2009 plan years)
February 2010 (for plan years beginning in 2010): 24-month average segment rate - 4.51% (1st segment), 6.64% (2nd segment), 6.75% (3rd segment)
March 2010 (for plan years beginning in 2010): 24-month average segment rate - 4.44% (1st segment), 6.62% (2nd segment), 6.74% (3rd segment)

Table 1C-3: Monthly Spot Segment Rates
January 2009: 5.20% (1st segment), 6.80% (2nd segment), 6.31% (3rd segment)
February 2009: 5.24% (1st segment), 7.07% (2nd segment), 7.08% (3rd segment)
March 2009: 5.70% (1st segment), 7.53% (2nd segment), 7.85% (3rd segment)
April 2009: 5.12% (1st segment), 7.15% (2nd segment), 6.92% (3rd segment)
May 2009: 4.27% (1st segment), 7.00% (2nd segment), 6.77% (3rd segment)
June 2009: 3.89% (1st segment), 6.59% (2nd segment), 6.55% (3rd segment)
July 2009: 3.39% (1st segment), 6.28% (2nd segment), 6.47% (3rd segment)
August 2009: 3.08% (1st segment), 5.94% (2nd segment), 6.21% (3rd segment)
September 2009: 2.73% (1st segment), 5.63% (2nd segment), 6.07% (3rd segment)
October 2009: 2.60% (1st segment), 5.58% (2nd segment), 6.07% (3rd segment)
November 2009: 2.35% (1st segment), 5.57% (2nd segment), 6.29% (3rd segment)
December 2009: 2.35% (1st segment), 5.65% (2nd segment), 6.45% (3rd segment)
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)
Table 1D-1: Minimum present value segment rates for plan years beginning in 2008
January 2009: 3.54% (1st segment), 3.86% (2nd segment), 3.77% (3rd segment)
February 2009: 3.92% (1st segment), 4.29% (2nd segment), 4.29% (3rd segment)
March 2009: 4.05% (1st segment), 4.42% (2nd segment), 4.48% (3rd segment)
April 2009: 4.03% (1st segment), 4.44% (2nd segment), 4.39% (3rd segment)
May 2009: 4.24% (1st segment), 4.78% (2nd segment), 4.74% (3rd segment)
June 2009: 4.39% (1st segment), 4.93% (2nd segment), 4.93% (3rd segment)
July 2009: 4.21% (1st segment), 4.78% (2nd segment), 4.82% (3rd segment)
August 2009: 4.11% (1st segment), 4.68% (2nd segment), 4.74% (3rd segment)
September 2009: 3.90% (1st segment), 4.48% (2nd segment), 4.57% (3rd segment)
October 2009: 3.87% (1st segment), 4.47% (2nd segment), 4.57% (3rd segment)
November 2009: 3.92% (1st segment), 4.56% (2nd segment), 4.71% (3rd segment)

Table 1D-2: Minimum present value segment rates for plan years beginning in 2009
January 2009: 3.96% (1st segment), 4.60% (2nd segment), 4.40% (3rd segment)
February 2009: 4.25% (1st segment), 4.98% (2nd segment), 4.99% (3rd segment)
March 2009: 4.46% (1st segment), 5.20% (2nd segment), 5.32% (3rd segment)
April 2009: 4.30% (1st segment), 5.12% (2nd segment), 5.02% (3rd segment)
May 2009: 4.25% (1st segment), 5.34% (2nd segment), 5.25% (3rd segment)
June 2009: 4.27% (1st segment), 5.35% (2nd segment), 5.33% (3rd segment)
July 2009: 4.00% (1st segment), 5.16% (2nd segment), 5.23% (3rd segment)
August 2009: 3.85% (1st segment), 5.00% (2nd segment), 5.11% (3rd segment)
September 2009: 3.61% (1st segment), 4.77% (2nd segment), 4.94% (3rd segment)
October 2009: 3.55% (1st segment), 4.75% (2nd segment), 4.94% (3rd segment)
November 2009: 3.53% (1st segment), 4.81% (2nd segment), 5.10% (3rd segment)
December 2009: 3.63% (1st segment), 4.95% (2nd segment), 5.27% (3rd segment)
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)

Table 1D-3: Minimum present value segment rates for plan years beginning in 2010 (new table - not in 2009 Edition)
August 2009: 3.60% (1st segment), 5.31% (2nd segment), 5.47% (3rd segment)
September 2009: 3.31% (1st segment), 5.05% (2nd segment), 5.32% (3rd segment)
October 2009: 3.24% (1st segment), 5.02% (2nd segment), 5.32% (3rd segment)
November 2009: 3.13% (1st segment), 5.07% (2nd segment), 5.50% (3rd segment)
December 2009: 3.21% (1st segment), 5.19% (2nd segment), 5.67% (3rd segment)
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)

Table 2: Federal Mid-Term Rates

February 2009: 1.65%, 1.98% (120%), 2.48% (150%), 2.89% (175%)

March 2009: 1.94%, 2.33% (120%), 2.92% (150%), 3.41% (175%)

April 2009: 2.15%, 2.59% (120%), 3.24% (150%), 3.79% (175%)

May 2009: 2.05%, 2.47% (120%), 3.08% (150%), 3.60% (175%)

June 2009: 2.25%, 2.71% (120%), 3.39% (150%), 3.96% (175%)

July 2009: 2.76%, 3.32% (120%), 4.15% (150%), 4.86% (175%)

August 2009: 2.80%, 3.37% (120%), 4.21% (150%), 4.93% (175%)

September 2009: 2.87%, 3.45% (120%), 4.33% (150%), 5.05% (175%)

October 2009: 2.66%, 3.20% (120%), 4.00% (150%), 4.67% (175%)

November 2009: 2.59%, 3.10% (120%), 3.90% (150%), 4.55% (175%)

December 2009: 2.64%, 3.16% (120%), 3.97% (150%), 4.64% (175%)

January 2010: 2.45%, 2.95% (120%), 3.69% (150%), 4.32% (175%)

February 2010: 2.82%, 3.39% (120%), 4.24% (150%), 4.96% (175%)

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

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

February 2009: 6.32% (5.69% to 6.32% permissible range)

March 2009: 6.35% (5.72% to 6.35% permissible range)

April 2009: 6.39% (5.75% to 6.39% permissible range)

May 2009: 6.43% (5.78% to 6.43% permissible range)

June 2009: 6.46% (5.81% to 6.46% permissible range)

July 2009: 6.47% (5.83% to 6.47% permissible range)

August 2009: 6.48% (5.83% to 6.48% permissible range)

September 2009: 6.47% (5.83% to 6.47% permissible range)

October 2009: 6.46% (5.82% to 6.46% permissible range)

November 2009: 6.44% (5.80% to 6.44% permissible range)

December 2009: 6.42% (5.78% to 6.42% permissible range)

January 2010: 6.42% (5.77% to 6.42% permissible range)

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

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

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

Second quarter 2009: 4%

Third quarter 2009: 4%

Fourth quarter 2009: 4%

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

December 2008: 4.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

January 2009: 4.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

February 2009: 3.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

March 2009: 3.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

April 2009: 3.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

May 2009: 3.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

June 2009: 3.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

July 2009: 3.75%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

August 2009: 3.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

September 2009: 3.00%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

October 2009: 2.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

November 2009: 2.25%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

December 2009: 2.50%, First Tier - 4.00%, Second Tier - 4.00%, Third Tier - 4.00%

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

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

March 2010: 2.75%, 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 2009: 5.20% (first segment), 6.80% (second segment), 6.31% (third segment)

March 2009: 5.24% (first segment), 7.07% (second segment), 7.08% (third segment)

April 2009: 5.70% (1st segment), 7.53% (2nd segment), 7.85% (3rd segment)

May 2009: 5.12% (1st segment), 7.15% (2nd segment), 6.92% (3rd segment)

June 2009: 4.27% (1st segment), 7.00% (2nd segment), 6.77% (3rd segment)

July 2009: 3.89% (1st segment), 6.59% (2nd segment), 6.55% (3rd segment)

August 2009: 3.39% (1st segment), 6.28% (2nd segment), 6.47% (3rd segment)

September 2009: 3.08% (1st segment), 5.94% (2nd segment), 6.21% (3rd segment)

October 2009: 2.73% (1st segment), 5.63% (2nd segment), 6.07% (3rd segment)

November 2009: 2.60% (1st segment), 5.58% (2nd segment), 6.07% (3rd segment)

December 2009: 2.35% (1st segment), 5.57% (2nd segment), 6.29% (3rd segment)

January 2010: 2.35% (1st segment), 5.65% (2nd segment), 6.45% (3rd segment)

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)

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Last updated 6.3.2010