ERISA section 4010 generally requires controlled groups to report to the PBGC if the aggregate unfunded vested benefits in plans maintained by the controlled group exceed $50 million (disregarding plans with no unfunded vested benefits) ("the 4010 Gateway Test"). The following table provides the applicable rates to be used for the 4010 Gateway Test.
On February 2, 2007, the Internal Revenue Service (IRS) published final regulations containing updated mortality tables for determining current liability under section 412(l)(7) of the Code and section 302(d)(7) of ERISA for plan years beginning on or after January 1, 2007. As a result, in accordance with section 4006(a)(3)(E)(iii) of ERISA, the interest rate to be used for the 4010 Gateway test for plan years ending on or after December 31, 2006 increases from 85 to 100 percent of the composite corporate bond rate.
Note - The Pension Protection Act of 2006 (PPA) replaces the $50 million 4010 Gateway test with a new Gateway test based on funding percentage. The new Gateway test uses a different interest rate basis and applies only to information years beginning after 2007. The interest rates on this page relate only to the pre-PPA Gateway test. See Technical Update 07-2 for more information.
|
Plan years |
Interest rate to be used for 4010 Gateway Test |
|
|---|---|---|
| Ending on or after | And before | |
|
June 30, 2008 |
July 31,2008 |
6.69% |
|
May 31, 2008 |
June 30, 2008 |
6.47% |
|
April 30, 2008 |
May 31, 2008 |
6.45% |
|
March 31, 2008 |
April 30, 2008 |
6.46% |
|
February 29, 2008 |
March 31, 2008 |
6.36% |
|
January 31, 2008 |
February 29, 2008 |
6.16% |
|
December 31, 2007 |
January 31, 2007 |
6.28% |
|
November 30, 2007 |
December 31, 2007 |
6.14% |
|
October 31, 2007 |
November 30, 2007 |
6.14% |
|
September 30, 2007 |
October 31, 2007 |
6.23% |
|
August 31, 2007 |
September 30, 2007 |
6.33% |
|
July 31, 2007 |
August 31, 2007 |
6.33% |
|
June 30, 2007 |
July 31, 2007 |
6.32% |
|
May 31, 2007 |
June 30, 2007 |
6.01% |
|
April 30, 2007 |
May 31, 2007 |
5.98% |
|
March 31, 2007 |
April 30, 2007 |
5.84% |
|
February 28, 2007 |
March 31, 2007 |
5.85% |
|
January 31, 2007 |
February 28, 2007 |
5.89% |
|
December 31, 2006 |
January 31, 2007 |
5.75% |
|
November 30, 2006 |
December 31, 2006 |
4.90% |
|
October 31, 2006
|
November 30, 2006
|
5.05%
|
|
September 30, 2006 |
October 31, 2006 |
5.06% |
|
August 31, 2006 |
September 30, 2006 |
5.19% |
|
July 31, 2006 |
August 31, 2006 |
5.36% |
|
June 30, 2006 |
July 31, 2006 |
5.36% |
|
May 31, 2006 |
June 30, 2006 |
5.35% |
|
April 30, 2006 |
May 31, 2006 |
5.25% |
|
March 31, 2006 |
April 30, 2006 |
5.01% |
|
February 28, 2006 |
March 31, 2006 |
4.87% |
|
January 31, 2006 |
February 28, 2006 |
4.80%. |
|
December 31, 2005 |
January 31, 2006 |
4.86%. |