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Funding Yield Curve Segment Rates

Generally (except for certain plans under sections 104, 105, and 402 of the Pension Protection Act of 2006 and CSEC plans under § 414(y)), for funding purposes, single-employer plans are required to use the 24-month average segment rates determined under section 430(h)(2) of the Code, as amended by the Moving Ahead for Progress in the 21st Century Act (MAP-21) and the Highway and Transportation Funding Act of 2014 (HATFA). However, a plan sponsor is permitted to elect to use the monthly yield curve under section 430(h)(2)(D)(ii) in place of the segment rates. Section 430(h)(2)(c)(iv), which was added by MAP-21, requires that the 24-month average segment rates be adjusted by the applicable maximum and applicable minimum percentages of the 25-year average segment rates from the 25-year period ending September 30 of the year before the calendar year in which the plan year begins. Section 2003(a) of HATFA amended the applicable percentages under section 430(h)(2)(C)(iv) of the Code. This change generally applies to plan years beginning on or after January 1, 2013. However, a plan sponsor is permitted to elect not to have the amendments made to the applicable percentages by HATFA apply to any plan year beginning in 2013. This election can be made either for all purposes or, alternatively, for purposes of determining the adjusted funding target attainment percentage under section 436 of the Code.

Funding Table 1 lists the applicable minimum and maximum percentages under section 430(h)(2)(C)(iv) as amended by HATFA for plan years beginning in the stated calendar year (including the HATFA applicable percentages for plan years beginning after 2012).

Funding Table 1

Plan Years Beginning in
Applicable Minimum Applicable Maximum
2012 to 2017 90% 110%
2018 85% 115%
2019 80% 120%
2020 75% 125%
2021 and after 70% 130%

For certain electing plans, Funding Table 1 – MAP-21 lists the MAP-21 applicable minimum and maximum percentages for plan years beginning in 2013 (see section 2003(e)(2) of HATFA).

Funding Table 1 - MAP-21

Plan Years Beginning in
Applicable Minimum Applicable Maximum
2013 85% 115%

Funding Table 2 lists the HATFA 25-year average segment rates and the corridor of the HATFA applicable minimum and maximum percentages for the 24-month segment rates for the periods listed.  But see Table 2 - MAP-21 for certain electing plans.

Funding Table 2
25-Year Segment Rates Permissible Corridor Based on HATFA Applicable Minimum and Maximum Percentages
Plan Years Beginning in First Segment Second Segment Third Segment   First Segment Second Segment Third Segment

2012

6.15

7.61

8.35
Min.

Max.
5.54
to
6.77
6.85
to
8.37
7.52
to
9.19

2013

5.81

7.23

7.95
Min.

Max.
5.23
to
6.39
6.51
to
7.95
7.16
to
8.75
2014 5.54 7.02 7.77 Min.

Max.
4.99
to
6.09
6.32
to
7.72
6.99
to
8.55

Funding Table 2 – MAP-21 lists the 25-year average segment rates and the corridor of the MAP-21 applicable minimum and maximum percentages for the 24-month segment rates for plan years beginning in 2013. These rates apply to a plan to the extent the plan sponsor has made an election pursuant to section 2003(e)(2) of HATFA to defer the application of the HAFTA amendments until plan years beginning in 2014.

Funding Table 2 - MAP-21
25-Year Segment Rates Permissible Corridor Based on MAP-21 Applicable Minimum and Maximum Percentages
Plan Years Beginning in First Segment Second Segment Third Segment   First Segment Second Segment Third Segment

2013

5.81

7.23

7.95
Min.

Max.
4.94
to
6.68
6.15
to
8.31
6.76
to
9.14

Funding Table 3 lists the 24-month average segment rates without adjustment for the applicable percentages of the 25-year average segment rates, and lists the 24-month average segment rates as adjusted by the HATFA applicable maximum and applicable minimum percentages of the 25-year average segment rates. But see Table 3 - MAP-21 for certain electing plans.

Funding Table 3

 

For Plan Years Beginning In

   24-Month Average Segment Rates Not Adjusted Adjusted 24-Month Average Segment Rates, Based on HATFA Applicable Percentage of 25-Year Average Rates
Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2015 Dec-14 1.20 4.10 5.20 4.72 6.11 6.81
2015 Nov-14 1.18 4.08 5.18 4.72 6.11 6.81
2015 Oct-14 1.17 4.07 5.17 4.72 6.11 6.81
2015 Sep-14 1.15 4.06 5.15 4.72 6.11 6.81
  Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2014 Dec-14 1.20 4.10 5.20 4.99 6.32 6.99
2014 Nov-14 1.18 4.08 5.18 4.99 6.32 6.99
2014 Oct-14 1.17 4.07 5.17 4.99 6.32 6.99
2014 Sep-14 1.15 4.06 5.15 4.99 6.32 6.99
2014 Aug-14 1.15 4.06 5.14 4.99 6.32 6.99
2014 Jul-14 1.14 4.04 5.11 4.99 6.32 6.99
2014 Jun-14 1,16 4.04 5.11 4.99 6.32 6.99
2014 May-14 1.18 4.05 5.11 4.99 6.32 6.99
2014 Apr-14 1.19 4.06 5.11 4.99 6.32 6.99
2014 Mar-14 1.20 4.06 5.10 4.99 6.32 6.99
2014 Feb-14 1.22 4.06 5.09 4.99 6.32 6.99
2014 Jan-14 1.25 4.06 5.08 4.99 6.32 6.99
               
2014 Dec-13 1.28 4.05 5.07 4.99 6.32 6.99
2014 Nov-13 1.31 4.05 5.05 4.99 6.32 6.99
2014 Oct-13 1.35 4.05 5.05 4.99 6.32 6.99
2014 Sep-13 1.37 4.05 5.06 4.99 6.32 6.99
  Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2013 Dec-14 1.20 4.10 5.20 5.23 6.51 7.16
2013 Nov-14 1.18 4.08 5.18 5.23 6.51 7.16
2013 Oct-14 1.17 4.07 5.17 5.23 6.51 7.16
2013 Sep-14 1.15 4.06 5.15 5.23 6.51 7.16
2013 Aug-14 1.15 4.06 5.14 5.23 6.51 7.16
2013 Jul-14 1.14 4.04 5.11 5.23 6.51 7.16
2013 Jun-14 1.16 4.04 5.11 5.23 6.51 7.16
2013 May-14 1.18 4.05 5.11 5.23 6.51 7.16
2013 Apr-14 1.19 4.06 5.11 5.23 6.51 7.16
2013 Mar-14 1.20 4.06 5.10 5.23 6.51 7.16
2013 Feb-14 1.22 4.06 5.09 5.23 6.51 7.16
2013 Jan-14 1.25 4.06 5.08 5.23 6.51 7.16
               
2013 Dec-13 1.28 4.05 5.07 5.23 6.51 7.16
2013 Nov-13 1.31 4.05 5.05 5.23 6.51 7.16
2013 Oct-13 1.35 4.05 5.05 5.23 6.51 7.16
2013 Sep-13 1.37 4.05 5.06 5.23 6.51 7.16
2013 Aug-13 1.39 4.05 5.08 5.23 6.51 7.16
2013 Jul-13 1.41 4.07 5.11 5.23 6.51 7.16
2013 Jun-13 1.43 4.10 5.15 5.23 6.51 7.16
2013 May-13 1.46 4.15 5.20 5.23 6.51 7.16
2013 Apr-13 1.50 4.22 5.26 5.23 6.51 7.16
2013 Mar-13 1.54 4.28 5.32 5.23 6.51 7.16
2013 Feb-13 1.58 4.34 5.38 5.23 6.51 7.16
2013 Jan-13 1.62 4.40 5.45 5.23 6.51 7.16
               
2013 Dec-12 1.66 4.47 5.52 5.23 6.51 7.16
2013 Nov-12 1.69 4.53 5.60 5.23 6.51 7.16
2013 Oct-12 1.72 4.58 5.67 5.23 6.51 7.16
2013 Sep-12 1.75 4.62 5.72 5.23 6.51 7.16
  Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2012 Jan-14 1.25 4.06 5.08 5.54 6.85 7.52
               
2012 Dec-13 1.28 4.05 5.07 5.54 6.85 7.52
2012 Nov-13 1.31 4.05 5.05 5.54 6.85 7.52
2012 Oct-13 1.35 4.05 5.05 5.54 6.85 7.52
2012 Sep-13 1.37 4.05 5.06 5.54 6.85 7.52
2012 Aug-13 1.39 4.05 5.08 5.54 6.85 7.52
2012 Jul-13 1.41 4.07 5.11 5.54 6.85 7.52
2012 Jun-13 1.43 4.10 5.15 5.54 6.85 7.52
2012 May-13 1.46 4.15 5.20 5.54 6.85 7.52
2012 Apr-13 1.50 4.22 5.26 5.54 6.85 7.52
2012 Mar-13 1.54 4.28 5.32 5.54 6.85 7.52
2012 Feb-13 1.58 4.34 5.38 5.54 6.85 7.52
2012 Jan-13 1.62 4.40 5.45 5.54 6.85 7.52
               
2012 Dec-12 1.66 4.47 5.52 5.54 6.85 7.52
2012 Nov-12 1.69 4.53 5.60 5.54 6.85 7.52
2012 Oct-12 1.72 4.58 5.67 5.54 6.85 7.52
2012 Sep-12 1.75 4.62 5.72 5.54 6.85 7.52
2012 Aug-12 1.77 4.67 5.78 5.54 6.85 7.52
2012 Jul-12 1.81 4.73 5.85 5.54 6.85 7.52
2012 Jun-12 1.84 4.79 5.90 5.54 6.85 7.52
2012 May-12 1.87 4.84 5.96 5.54 6.85 7.52
2012 Apr-12 1.90 4.90 6.01 5.54 6.85 7.52
2012 Mar-12 1.93 4.95 6.07 5.54 6.85 7.52
2012 Feb-12 1.96 5.01 6.13 5.54 6.85 7.52
2012 Jan-12 1.98 5.07 6.19 5.54 6.85 7.52
  Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2012 Dec-11 1.99 5.12 6.24 5.54 6.85 7.52
2012 Nov-11 2.01 5.16 6.28 5.54 6.85 7.52
2012 Oct-11 2.03 5.20 6.30 5.54 6.85 7.52
2012 Sep-11 2.06 5.25 6.32 5.54 6.85 7.52

Funding Table 3 - MAP-21 lists the 24-month average segment rates adjusted by MAP-21 applicable maximum and applicable minimum percentages of the 25-year average segment rates. These rates apply to a plan to the extent the plan sponsor has made an election pursuant to section 2003(e)(2) of HATFA to defer the application of the HAFTA amendments until plan years beginning in 2014.

Funding Table 3 - MAP-21

 

For Plan Years Beginning In

  Adjusted 24-Month Average Segment Rates, Based on MAP-21 Applicable Percentage of 25-Year Average Rates
Applicable Month First
Segment
Second
Segment
Third
Segment
2013 Dec-14 4.94 6.15 6.76
2013 Nov-14 4.94 6.15 6.76
2013 Oct-14 4.94 6.15 6.76
2013 Sep-14 4.94 6.15 6.76
2013 Aug-14 4.94 6.15 6.76
2013 Jul-14 4.94 6.15 6.76
2013 Jun-14 4.94 6.15 6.76
2013 May-14 4.94 6.15 6.76
2013 Apr-14 4.94 6.15 6.76
2013 Mar-14 4.94 6.15 6.76
2013 Feb-14 4.94 6.15 6.76
2013 Jan-14 4.94 6.15 6.76
         
2013 Dec-13 4.94 6.15 6.76
2013 Nov-13 4.94 6.15 6.76
2013 Oct-13 4.94 6.15 6.76
2013 Sep-13 4.94 6.15 6.76
2013 Aug-13 4.94 6.15 6.76
2013 Jul-13 4.94 6.15 6.76
2013 Jun-13 4.94 6.15 6.76
2013 May-13 4.94 6.15 6.76
2013 Apr-13 4.94 6.15 6.76
2013 Mar-13 4.94 6.15 6.76
2013 Feb-13 4.94 6.15 6.76
2013 Jan-13 4.94 6.15 6.76
         
2013 Dec-12 4.94 6.15 6.76
2013 Nov-12 4.94 6.15 6.76
2013 Oct-12 4.94 6.15 6.76
2013 Sep-12 4.94 6.15 6.76

Funding Table 4 lists the 24-month average segment rates for the stated applicable months not adjusted by a percentage of any 25-year average rates, and without reference to the transitional segment rates under section 430(h)(2)(G).

Funding Table 4

24-Month Segment Rates

Applicable Month/Year

First
Segment

Second
Segment

 Third
Segment

Dec-11

1.99

5.12

6.24

Nov-11

2.01

5.16

6.28

Oct-11

2.03

5.20

6.30

Sep-11

2.06

5.25

6.32

Aug-11

2.11

5.31

6.32

Jul-11

2.18

5.36

6.33

Jun-11

2.27

5.43

6.34

May-11

2.38

5.51

6.36

Apr-11

2.51

5.59

6.38

Mar-11

2.67

5.69

6.44

Feb-11

2.81

5.76

6.46

Jan-11

2.94

5.82

6.46

Applicable Month/Year

First
Segment

Second
Segment

 Third
Segment

Dec-10

3.14

5.90

6.45

Nov-10

3.37

6.04

6.49

Oct-10

3.61

6.20

6.53

Sep-10

3.78

6.31

6.57

Aug-10

3.92

6.40

6.61

Jul-10

4.05

6.47

6.65

Jun-10

4.16

6.52

6.68

May-10

4.26

6.56

6.70

Apr-10

4.35

6.59

6.72

Mar-10

4.44

6.62

6.74

Feb-10

4.51

6.64

6.75

Jan-10

4.60

6.65

6.76

Applicable Month/Year

First
Segment

Second
Segment

 Third
Segment

Dec-09

4.71

6.67

6.77

Nov-09

4.81

6.69

6.78

Oct-09

4.92

6.71

6.80

Sep-09

5.03

6.73

6.82

Aug-09

5.12

6.74

6.83

Jul-09

5.21

6.74

6.84

Jun-09

5.28

6.72

6.84

May-09

5.33

6.68

6.82

Apr-09

5.33

6.62

6.80

Mar-09

5.31

6.54

6.73

Feb-09

5.31

6.49

6.69

Jan-09

5.32

6.45

6.69

Applicable Month/Year

First
Segment

Second
Segment

 Third
Segment

Dec-08

5.25

6.38

6.68

Nov-08

5.17

6.28

6.62

Oct-08

5.09

6.16

6.58

Sep-08

5.07

6.09

6.56

Aug-08

5.08

6.06

6.55

Jul-08

5.10

6.03

6.54

Jun-08

5.13

6.01

6.53

May-08

5.16

6.00

6.53

Apr-08

5.20

5.99

6.52

Mar-08

5.24

5.97

6.49

Feb-08

5.28

5.95

6.45

Jan-08

5.31

5.92

6.43

Applicable Month/Year

First
Segment

Second
Segment 

Third
Segment

Dec-07

5.31

5.90

6.41

Nov-07

5.31

5.88

6.40

Oct-07

5.29

5.86

6.40

Sep-07

5.26

5.82

6.38

The funding transitional segment rates of §430(h)(2)(G) are used for minimum funding requirements for plan years beginning before 2010 if the 24-month rates above do not apply and if no election is made under §430(h)(2)(D)(ii) to use the full yield curve. The transitional segment rates take into account blending with the Corporate Bond Weighted Average as determined under section 412(b)(5)(B)(ii)(II) as in effect for plan years beginning in 2007.

Funding Table 5 lists the transitional segment rates for the plan years beginning in the stated year with respect to the applicable month and year listed.

Funding Table 5

 

Month/Year

Plan
Year

First
Segment

Second 
Segment 

Third
Segment

Dec-10

2009

4.14

5.98

6.35

Nov-10

2009

4.30

6.08

6.38

Oct-10

2009

4.48

6.20

6.42

Sep-10

2009

4.60

6.29

6.46

Aug-10

2009

4.71

6.36

6.50

Jul-10

2009

4.81

6.42

6.54

Jun-10

2009

4.89

6.46

6.57

May-10

2009

4.96

6.50

6.59

Apr-10

2009

5.03

6.52

6.61

Mar-10

2009

5.09

6.55

6.63

Feb-10

2009

5.14

6.56

6.64

Jan-10

2009

5.21

6.57

6.65

Month/Year

Plan
Year

First
Segment

Second 
Segment

Third
Segment

Dec-09

2008

5.85

6.50

6.54

Dec-09

2009

5.28

6.59

6.65

Nov-09

2008

5.90

6.52

6.55

Nov-09

2009

5.35

6.61

6.67

Oct-09

2008

5.95

6.54

6.57

Oct-09

2009

5.43

6.63

6.69

Sep-09

2008

5.99

6.56

6.59

Sep-09

2009

5.51

6.64

6.70

Aug-09

2008

6.03

6.57

6.60

Aug-09

2009

5.57

6.65

6.71

Jul-09

2008

6.05

6.56

6.59

Jul-09

2009

5.63

6.65

6.72

Jun-09

2008

6.07

6.55

6.59

Jun-09

2009

5.67

6.63

6.71

May-09

2008

6.06

6.51

6.56

May-09

2009

5.70

6.60

6.69

Apr-09

2008

6.04

6.47

6.53

Apr-09

2009

5.68

6.54

6.66

Mar-09 

2008

6.00

6.41

6.48

Mar-09

2009

5.66

6.48

6.60

Feb-09

2008

5.98

6.38

6.44

Feb-09

2009

5.65

6.43

6.57

Jan-09

2008

5.97

6.34

6.42

Jan-09

2009

5.64

6.40

6.56

Month/Year

Plan
Year

First
Segment

Second 
Segment 

 Third
Segment

Dec-08

2008

5.93

6.31

6.41

Dec-08

2009

5.59

6.34

6.54

Nov-08

2008

5.86

6.23

6.34

Nov-08

2009

5.51

6.25

6.48

Oct-08

2008

5.79

6.15

6.29

Oct-08

2009

5.44

6.15

6.43

Sep-08

2008

5.76

6.10

6.25

Sep-08

2009

5.41

6.09

6.41

Aug-08

2008

5.74

6.07

6.23

Jul-08

2008

5.73

6.04

6.21

Jun-08

2008

5.72

6.02

6.19

May-08

2008

5.72

6.00

6.18

Apr-08

2008

5.73

5.99

6.17

Mar-08

2008

5.72

5.96

6.14

Feb-08

2008

5.72

5.94

6.11

Jan-08

2008

5.72

5.92

6.09

Month/Year

Plan
Year

First
Segment

Second 
Segment 

Third 
Segment

Dec-07

2008

5.70

5.90

6.07

Nov-07

2008

5.70

5.89

6.06

Oct-07

2008

5.68

5.87

6.05

Sep-07

2008

5.66

5.85

6.03

 

Page Last Reviewed or Updated: 10-Dec-2014