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Funding Yield Curve Segment Rates

Generally, (except for certain plans under sections104 and 105 of the Pension Protection Act of 2006), for funding purposes 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). However, plans may elect to use the monthly yield curve under section 430(h)(2)(D)(ii) in place of the segment rates. 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.  However, a plan sponsor may elect not to apply the MAP-21 25-year average adjustment for the plan year beginning in 2012.  

Funding Table 1 lists the applicable minimum and maximum percentages for plan years beginning in the stated calendar year.  

Funding Table 1

Plan Years Beginning in
Applicable Minimum Applicable Maximum
2012 90% 110%
2013 85% 115%
2014 80% 120%
2015 75% 125%
2016 and after 70% 130%


Funding Table 2 lists the 25-year average segment rates and the corridor of the applicable minimum and maximum percentages for the 24-month segment rates for the periods listed.

Funding Table 2
25-Year Segment Rates Permissible Corridor Based on Applicable Minimum and Maximum Percentages
25-Year Period Ending First Segment Second Segment Third Segment   First Segment Second Segment Third Segment

Sept. 30, 2011

6.15

7.61

8.35
Min.

Max.
5.54
to
6.77
6.85
to
8.37
7.52
to
9.18

Sept. 30, 2012

5.81

7.23

7.95
Min.

Max.
4.94
to
6.68
6.15
to
8.31
6.76
to
9.14
Sept. 30, 2013 5.54 7.02 7.77 Min.

Max.
4.43
to
6.65
5.62
to
8.42
6.22
to
9.32

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 applicable maximum and applicable minimum percentages of the 25-year average segment rates.

Funding Table 3

 

For Plan Years Beginning In

   24-Month Average Segment Rates Not Adjusted Adjusted 24-Month Average Segment Rates, Based on Applicable Percentage of 25-Year Average Rates
Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2014 Apr-14 1.19 4.06 5.11 4.43 5.62 6.22
2014 Mar-14 1.20 4.06 5.10 4.43 5.62 6.22
2014 Feb-14 1.22 4.06 5.09 4.43 5.62 6.22
2014 Jan-14 1.25 4.06 5.08 4.43 5.62 6.22
               
2014 Dec-13 1.28 4.05 5.07 4.43 5.62 6.22
2014 Nov-13 1.31 4.05 5.05 4.43 5.62 6.22
2014 Oct-13 1.35 4.05 5.05 4.43 5.62 6.22
2014 Sep-13 1.37 4.05 5.06 4.43 5.62 6.22
  Applicable Month First
Segment
Second
Segment
Third
Segment
First
Segment
Second
Segment
Third
Segment
2013 Apr-14 1.19 4.06 5.11 4.94 6.15 6.76
2013 Mar-14 1.20 4.06 5.10 4.94 6.15 6.76
2013 Feb-14 1.22 4.06 5.09 4.94 6.15 6.76
2013 Jan-14 1.25 4.06 5.08 4.94 6.15 6.76
               
2013 Dec-13 1.28 4.05 5.07 4.94 6.15 6.76
2013 Nov-13 1.31 4.05 5.05 4.94 6.15 6.76
2013 Oct-13 1.35 4.05 5.05 4.94 6.15 6.76
2013 Sep-13 1.37 4.05 5.06 4.94 6.15 6.76
2013 Aug-13 1.39 4.05 5.08 4.94 6.15 6.76
2013 Jul-13 1.41 4.07 5.11 4.94 6.15 6.76
2013 Jun-13 1.43 4.10 5.15 4.94 6.15 6.76
2013 May-13 1.46 4.15 5.20 4.94 6.15 6.76
2013 Apr-13 1.50 4.22 5.26 4.94 6.15 6.76
2013 Mar-13 1.54 4.28 5.32 4.94 6.15 6.76
2013 Feb-13 1.58 4.34 5.38 4.94 6.15 6.76
2013 Jan-13 1.62 4.40 5.45 4.94 6.15 6.76
               
2013 Dec-12 1.66 4.47 5.52 4.94 6.15 6.76
2013 Nov-12 1.69 4.53 5.60 4.94 6.15 6.76
2013 Oct-12 1.72 4.58 5.67 4.94 6.15 6.76
2013 Sep-12 1.75 4.62 5.72 4.94 6.15 6.76
  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

For plan years beginning before 2012, the funding segment rates are the 24-month average segment rates determined under section 430(h)(2) without reference to a percentage of the 25-year averages. However, plans may elect to use the monthly yield curve in place of the segment rates.  In addition, plans could elect to use the segment rates without adjustment for the 25-year average segment rates for plan years beginning in 2012 (see Funding Table 3 above).  

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: 08-Apr-2014