January 15, 2002 Interest Rate Update
The immediate interest rate for valuing lump sum payments for the month of February 2002 is 4.75%. The deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for January 2002 was 4.50% for lump sum payments; the deferred interest rate I1 was 4.00%, I2 was 4.00%, and I3 was 4.00%.)
The required interest rate for determining the variable rate premium amount for premium payment years commencing in January 2002 is 4.66%. (The interest rate for December 2001 was 4.35%.)
NOTE: The required interest rate for the variable rate premium for January 2002 has been revised due to the Job Creation and Worker Assistance Act of 2002. Please refer to the Variable Rate Premium page for the revised rate.
The select and ultimate interest rates for valuing annuity benefits in single-employer plans and multiemployer plans for the month of February 2002 are 5.80% for the first 25 years following the date of plan termination and 4.25% thereafter, respectively. (The select interest rate for January 2002 was 5.80% for the first 25 years and the ultimate rate was 4.25%.)
The interest rate that PBGC will charge on employer liability, unpaid contributions, and unpaid premiums, for the calendar quarter beginning January 1, and ending March 31, 2002, is 6%. (The interest rate for October 1 to December 31, 2001 was 7%.)
The interest rate to be charged by multiemployer pension plans on withdrawal liability payments that are overdue or in default, or that is to be credited by such plans on overpayments of withdrawal liability during the calendar quarter beginning January 1, and ending March 31, 2002, is 4.75%. (The interest rate for October 1 to December 31, 2001 was 6.50%.)
This page was updated on February 15, 2002.