[from the U.S. Pension Benefit Guaranty Corporation]
Updated information is now available about the interest rates used to determine the “premium funding target” [external charts] (i.e., the present value of vested benefits) for variable-rate premium (VRP) purposes unless the plan has an election in effect to use the Alternative Premium Funding Target.
Because the following interest rates are updated on a quarterly basis, no updates are available for the following interest rates at this time:
- ERISA 4044 Annuities [external charts] – These rates are used for determining the present value of annuities for involuntary or distress terminations as well as valuing benefits under multi-employer plans following a mass withdrawal.
- Late Premium Payment Interest Charges [external charts] – These rates are used to determine the amount of interest PBGC assesses on late PBGC premiums.
- Late or Defaulted Withdrawal Liability [external charts] – Unless rules adopted by the plan provide otherwise, these rates are used by multi-employer plans to charge withdrawn employers if their withdrawal liability payments are late or in default.