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Practitioners


October 15, 2013 Interest Rate Update

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October 25, 2013

This page was updated on October 25, 2013 to include the spot segment rates for the variable rate premium which were not previously available.

The immediate interest rate for valuing lump sum payments for the month of November 2013 is 1.75% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for October 2013 was 1.75% for lump sum payments; the deferred interest rate I1 was 4.00%, I2 was 4.00%, and I3 was 4.00%).

The spot first, second, and third segment rates for determining the variable rate premium amount for premium payment years commencing in October 2013 are, respectively, 1.40%, 4.66%, and 5.62%.  The spot first, second, and third segment rates for determining the variable rate premium amount for premium payment years commencing in September 2013 were, respectively, 1.36%, 4.60% and 5.58%.

The select and ultimate interest rates for valuing annuity benefits in single-employer plans and multiemployer plans for the month of November 2013 are 3.00% for the first 20 years following the date of plan termination, and 3.31% thereafter, respectively. (The select interest rate for October 2013 was 3.00% for the first 20 years and the ultimate rate was 3.31%).

The interest rate that PBGC will charge on employer liability, unpaid contributions, and unpaid premiums, for the calendar quarter beginning October 1, and ending December 31, 2013, is 3.00%. (The interest rate for July 1 to September 30, 2013 was 3.00%).

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 October 1, and ending December 31, 2013, is 3.25%. (The interest rate for July 1 to September 30, 2013 was 3.25%).