Pension Plan Funding Segment Rates

 

For a pension plan to qualify for tax-exempt status, the plan sponsor must arrange sufficient funding for the plan's future liabilities, including future pension benefits. Determining sufficient funding requires calculating the present value of future benefits which is, in part, based on discounting those benefits with interest. This page provides the interest rates a plan actuary must use to apply this discounting for a single employer defined benefit pension plan.

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Key Segment Rate Components

The American Rescue Plan Act of 2021 (ARP) made recent changes to the methods of determining the required interest rates. Find pre-ARP and post-ARP tables below:

Determination Components and Tables

Determination Components Tables Determined under ARP & IIJA Rules Tables Determined Under Pre-ARP Rules
Applicable Percentage Limits Table 1A Table 1B
25-Year Average Segment Rates and Permissible Corridors Table 2A Table 2B
24-Month Average Segment Rates Table 3A Table 3B

Segment Rates Overview

Generally, for single-employer plans, for funding purposes, the rates for discounting are three 24-month average segment rates (Internal Revenue Code (IRC) Section 430(h)(2)). However, special rules apply for certain plans (see Plans Not Subject to Standard Segment Rate Provisions).

The three segment rates are the averages of the yields over different blocks of maturity periods of the Treasury high quality corporate bond yield curves averaged over 24-months.These rates are subject to additional criteria: they are constrained by applicable percentage limits on the 25-year average yield curve segment rates. These rules have been affected by several amendments to IRC Section 430(h)(2) (see Amendments to Code Segment Rate Provisions). The recent changes under ARP affected the determination of the 25-year average segment rates and the applicable percentages, but also allowed plan sponsors to elect to use the pre-ARP rules for certain years.

Tables 1A, 2A, and 3A below have the constraints and segment rates determined taking into account ARP Section 9706(a) and the Infrastructure Investment and Jobs Act (IIJA) amendments generally for plan years beginning after 2019. Tables 1B, 2B, and 3B have the constraints and segment rates determined under pre-ARP rules, for plan years beginning before 2020, or for plan years beginning in 2020 and 2021 if the plan sponsor makes the election available in ARP Section 9706(c)(2) to use the pre-ARP rules.

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Applicable Percentage Limits: Funding Table 1A and 1B

Funding Table 1A lists the applicable minimum and maximum percentages under IRC Section 430(h)(2)(C)(iv) as amended by ARP Section 9706(a)(1) and IIJA Section 80602.

Funding Table 1B lists the applicable minimum and maximum percentages under IRC Section 430(h)(2)(C)(iv) as amended by BBA but without the amendments by ARP, for use in plan years beginning before 2020, or for plan years beginning in 2020 and 2021 as permitted with an election under ARP Section 9706(c)(2) to use pre-ARP rates.

Funding Table 1A: Post-ARP/IIJA Applicable Maximum and Minimum Percentages

Plan Years Beginning in Applicable Minimum Applicable Maximum
2020 to 2030 95% 105%
2031 90% 105%
2032 85% 125%
2033 80% 120%
2034 75% 125%
After 2034 70% 130%

Funding Table 1B: Pre-ARP Applicable Maximum and Minimum Percentages

Plan Years Beginning in

Applicable Minimum

Applicable Maximum

2012-2020 90% 110%
2021 85% 115%

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25-Year Average Segment Rates and Permissible Corridors: Funding Tables 2A and 2B

Funding Table 2A lists the 25-year average segment rates determined under Section 430(h)(2)(C)(iv) as amended by Section 9706(a)(1) of ARP and Section 80602 of IIJA, including a floor of 5%, and the permissible corridor of the 24-month average segment rates based on the applicable minimum and maximum percentages under those amendments.

Funding Table 2B lists the 25-year average segment rates determined under IRC Section 430(h)(2)(c)(iv) as amended by BBA but without amendments by ARP, and lists the permissible corridor of the 24-month average segment rates based the applicable minimum and maximum percentages, for plan years beginning before 2020, or for plan years beginning in 2020 and 2021 as permitted with an election under ARP Section 9706(c)(2) to use pre-ARP rates.

Funding Table 2A: Post-ARP/IIJA 25-Year Segment Rates and Permissible Corridors

25-Year Segment Rates, Limited by ARP/IIJA Permissible Corridors Under ARP & IIJA Applicable Minimum and Maximum Percentages
Plan Years Beginning in First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2022 5.00 5.45 6.23 4.75 to 5.25% 5.18 to 5.72% 5.92 to 6.54%
2021 5.00 5.64 6.43 4.75 to 5.25% 5.36 to 5.92% 6.11 to 6.75%
2020 5.00 5.79 6.60 4.75 to 5.25% 5.50 to 6.08% 6.27 to 6.93%

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Funding Table 2B: Pre-ARP 25-Year Segment Rates and Permissible Corridors

Pre-ARP 25-Year Segment Rates Pre-ARP Permissible Corridors Under BBA Applicable Minimum and Maximum Percentages
Plan Years Beginning in First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2021 3.90 5.64 6.43 3.32 to 4.49% 4.79 to 6.49% 5.47 to 7.39%
2020 4.04 5.79 6.60 3.64 to 4.44% 5.21 to 6.37% 5.94 to 7.26%
2019 4.15 5.94 6.79 3.74 to 4.57% 5.35 to 6.53% 6.11 to 7.47%
2018 4.35 6.13 6.99 3.92 to 4.79% 5.52 to 6.74% 6.29 to 7.69%
2017 4.62 6.35 7.20 4.16 to 5.08% 5.72 to 6.99% 6.48 to 7.92%
2016 4.92 6.57 7.39 4.43 to 5.41% 5.91 to 7.23% 6.65 to 8.13%
2015 5.24 6.79 7.57 4.70 to 5.76% 6.11 to 7.47% 6.81 to 8.33%
2014 5.54 7.02 7.77 4.99 to 6.09% 6.35 to 7.72% 6.99 to 8.55%
2013 5.81 7.23 7.95 5.23 to 6.39% 6.51 to 7.95% 7.16 to 8.45%
2012 6.15 7.61 8.35 5.54 to 6.77% 6.87 to 8.37% 7.52 to 9.19%

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24-Month Average Segment Rates: Funding Tables 3A and 3B

Funding Table 3A 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 ARP / IIJA applicable minimum and maximum percentages of the 25-year average segment rates, generally effective for plan years beginning after 2019 (unless electing under ARP Section 9706(c)(2) to defer the application of the ARP Section 9706(a) amendments to plan years beginning after 2021). Funding Table 3A is divided into parts based on the calendar year in which the plan year begins.

Funding Table 3B lists the 24-month average segment rates without adjustment for applicable percentages of the 25-year average segment rates, and the adjusted 24-month average segment rates as adjusted under BBA for plan years beginning before 2020, and for plan years beginning in 2020 and 2021 as permitted with an election under ARP Section 9706(c)(2) to use the pre-ARP rates. However, see Historical Funding Segment Rate Tables, for certain electing plans under HATFA and BBA, and for plan years beginning before 2014. Funding Table 3B is divided into parts based on the calendar year in which the plan year begins.

Funding Table 3A: Post-ARP / IIJA 24-Month Average Segment Rates

Funding Table 3A for Years: 20232022 | 2021 | 2020

Funding Table 3A for 2023

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Post-ARP/IIJA Adjusted 24-Month Average Segment Rates
For Plan Years Beginning in Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2023 Sep 2022 1.41 3.09 3.58 4.75 5.00 5.74

Funding Table 3A for 2022

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Post-ARP/IIJA Adjusted 24-Month Average Segment Rates
For Plan Years Beginning in Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2022 Sep 2022 1.41 3.09 3.58 4.75 5.18 5.92
2022 Aug 2022 1.27 2.99 3.51 4.75 5.18 5.92
2022 Jul 2022 1.14 2.89 3.44 4.75 5.18 5.92
2022 Jun 2022 1.02 2.80 3.38 4.75 5.18 5.92
2022 May 2022 0.93 2.72 3.32 4.75 5.18 5.92
2022 Apr 2022 0.87 2.67 3.29 4.75 5.18 5.92
2022 Mar 2022 0.87 2.64 3.28 4.75 5.18 5.92
2022 Feb 2022 0.86 2.61 3.26 4.75 5.18 5.92
2022 Jan 2022 0.88 2.61 3.27 4.75 5.18 5.92
2022 Dec 2021 0.92 2.62 3.29 4.75 5.18 5.92
2022 Nov 2021 0.96 2.64 3.32 4.75 5.18 5.92
2022 Oct 2021 1.01 2.65 3.34 4.75 5.18 5.92
2022 Sep 2021 1.07 2.68 3.36 4.75 5.18 5.92

Funding Table 3A for 2021

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Post-ARP/IIJA Adjusted 24-Month Average Segment Rates
For Plan Years Beginning in Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2021 Sep 2022 1.41 3.09 3.58 4.75 5.36 6.11
2021 Aug 2022 1.27 2.99 3.51 4.75 5.36 6.11
2021 Jul 2022 1.14 2.89 3.44 4.75 5.36 6.11
2021 Jun 2022 1.02 2.80 3.38 4.75 5.36 6.11
2021 May 2022 0.93 2.72 3.32 4.75 5.36 6.11
2021 Apr 2022 0.87 2.67 3.29 4.75 5.36 6.11
2021 Mar 2022 0.87 2.64 3.28 4.75 5.36 6.11
2021 Feb 2022 0.86 2.61 3.26 4.75 5.36 6.11
2021 Jan 2022 0.88 2.61 3.27 4.75 5.36 6.11
2021 Dec 2021 0.92 2.62 3.29 4.75 5.36 6.11
2021 Nov 2021 0.96 2.64 3.32 4.75 5.36 6.11
2021 Oct 2021 1.01 2.65 3.34 4.75 5.36 6.11
2021 Sep 2021 1.07 2.68 3.36 4.75 5.36 6.11
2021 Aug 2021 1.13 2.70 3.38 4.75 5.36 6.11
2021 Jul 2021 1.20 2.73 3.42 4.75 5.36 6.11
2021 Jun 2021 1.27 2.77 3.45 4.75 5.36 6.11
2021 May 2021 1.36 2.80 3.49 4.75 5.36 6.11
2021 Apr 2021 1.45 2.85 3.52 4.75 5.36 6.11
2021 Mar 2021 1.54 2.89 3.55 4.75 5.36 6.11
2021 Feb 2021 1.64 2.96 3.59 4.75 5.36 6.11
2021 Jan 2021 1.75 3.04 3.65 4.75 5.36 6.11
2021 Dec 2020 1.87 3.12 3.72 4.75 5.36 6.11
2021 Nov 2020 1.99 3.21 3.80 4.75 5.36 6.11
2021 Oct 2020 2.11 3.30 3.86 4.75 5.36 6.11
2021 Sep 2020 2.22 3.38 3.92 4.75 5.36 6.11

Funding Table 3A for 2020

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Post-ARP/IIJA Adjusted 24-Month Average Segment Rates
For Plan Years Beginning in Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2020 Jan 2022 0.88 2.61 3.27 4.75 5.50 6.27
2020 Dec 2021 0.92 2.62 3.29 4.75 5.50 6.27
2020 Nov 2021 0.96 2.64 3.32 4.75 5.50 6.27
2020 Oct 2021 1.01 2.65 3.34 4.75 5.50 6.27
2020 Sep 2021 1.07 2.68 3.36 4.75 5.50 6.27
2020 Aug 2021 1.13 2.70 3.38 4.75 5.50 6.27
2020 Jul 2021 1.20 2.73 3.42 4.75 5.50 6.27
2020 Jun 2021 1.27 2.77 3.45 4.75 5.50 6.27
2020 May 2021 1.36 2.80 3.49 4.75 5.50 6.27
2020 Apr 2021 1.45 2.85 3.52 4.75 5.50 6.27
2020 Mar 2021 1.54 2.89 3.55 4.75 5.50 6.27
2020 Feb 2021 1.64 2.96 3.59 4.75 5.50 6.27
2020 Jan 2021 1.75 3.04 3.65 4.75 5.50 6.27
2020 Dec 2020 1.87 3.12 3.72 4.75 5.50 6.27
2020 Nov 2020 1.99 3.21 3.80 4.75 5.50 6.27
2020 Oct 2020 2.11 3.30 3.86 4.75 5.50 6.27
2020 Sep 2020 2.22 3.38 3.92 4.75 5.50 6.27
2020 Aug 2020 2.33 3.46 3.98 4.75 5.50 6.27
2020 Jul 2020 2.44 3.54 4.04 4.75 5.50 6.27
2020 Jun 2020 2.54 3.61 4.09 4.75 5.50 6.27
2020 May 2020 2.62 3.66 4.14 4.75 5.50 6.27
2020 Apr 2020 2.68 3.71 4.19 4.75 5.50 6.27
2020 Mar 2020 2.71 3.75 4.21 4.75 5.50 6.27
2020 Feb 2020 2.75 3.80 4.26 4.75 5.50 6.27
2020 Jan 2020 2.77 3.83 4.28 4.75 5.50 6.27
2020 Dec 2019 2.78 3.85 4.30 4.75 5.50 6.27
2020 Nov 2019 2.79 3.87 4.33 4.75 5.50 6.27
2020 Oct 2019 2.79 3.90 4.35 4.75 5.50 6.27
2020 Sep 2019 2.79 3.92 4.38 4.75 5.50 6.27

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Funding Table 3B: Pre-ARP 24-Month Average Segment Rates

Funding Tables 3B for Years: 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014

Funding Table 3B for 2021

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In  Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2021 Aug 2022 1.27 2.99 3.51 3.32 4.79 5.47
2021 Jul 2022 1.14 2.89 3.44 3.32 4.79 5.47
2021 Jun 2022 1.02 2.80 3.38 3.32 4.79 5.47
2021 May 2022 0.93 2.72 3.32 3.32 4.79 5.47
2021 Apr 2022 0.87 2.67 3.29 3.32 4.79 5.47
2021 Mar 2022 0.87 2.64 3.28 3.32 4.79 5.47
2021 Feb 2022 0.86 2.61 3.26 3.32 4.79 5.47
2021 Jan 2022 0.88 2.61 3.27 3.32 4.79 5.47
2021 Dec 2021 0.92 2.62 3.29 3.32 4.79 5.47
2021 Nov 2021 0.96 2.64 3.32 3.32 4.79 5.47
2021 Oct 2021 1.01 2.65 3.34 3.32 4.79 5.47
2021 Sep 2021 1.07 2.68 3.36 3.32 4.79 5.47
2021 Aug 2021 1.13 2.70 3.38 3.32 4.79 5.47
2021 Jul 2021 1.20 2.73 3.42 3.32 4.79 5.47
2021 Jun 2021 1.27 2.77 3.45 3.32 4.79 5.47
2021 May 2021 1.36 2.80 3.49 3.32 4.79 5.47
2021 Apr 2021 1.45 2.85 3.52 3.32 4.79 5.47
2021 Mar 2021 1.54 2.89 3.55 3.32 4.79 5.47
2021 Feb 2021 1.64 2.96 3.59 3.32 4.79 5.47
2021 Jan 2021 1.75 3.04 3.65 3.32 4.79 5.47
2021 Dec 2020 1.87 3.12 3.72 3.32 4.79 5.47
2021 Nov 2020 1.99 3.21 3.80 3.32 4.79 5.47
2021 Oct 2020 2.11 3.30 3.86 3.32 4.79 5.47
2021 Sep 2020 2.22 3.38 3.92 3.32 4.79 5.47

Funding Table 3B for 2020

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2020 Jan 2022 0.88 2.61 3.27 3.64 5.21 5.94
2020 Dec 2021 0.92 2.62 3.29 3.64 5.21 5.94
2020 Nov 2021 0.96 2.64 3.32 3.64 5.21 5.94
2020 Oct 2021 1.01 2.65 3.34 3.64 5.21 5.94
2020 Sep 2021 1.07 2.68 3.36 3.64 5.21 5.94
2020 Aug 2021 1.13 2.70 3.38 3.64 5.21 5.94
2020 Jul 2021 1.20 2.73 3.42 3.64 5.21 5.94
2020 Jun 2021 1.27 2.77 3.45 3.64 5.21 5.94
2020 May 2021 1.36 2.80 3.49 3.64 5.21 5.94
2020 Apr 2021 1.45 2.85 3.52 3.64 5.21 5.94
2020 Mar 2021 1.54 2.89 3.55 3.64 5.21 5.94
2020 Feb 2021 1.64 2.96 3.59 3.64 5.21 5.94
2020 Jan 2021 1.75 3.04 3.65 3.64 5.21 5.94
2020 Dec 2020 1.87 3.12 3.72 3.64 5.21 5.94
2020 Nov 2020 1.99 3.21 3.80 3.64 5.21 5.94
2020 Oct 2020 2.11 3.30 3.86 3.64 5.21 5.94
2020 Sep 2020 2.22 3.38 3.92 3.64 5.21 5.94
2020 Aug 2020 2.33 3.46 3.98 3.64 5.21 5.94
2020 Jul 2020 2.44 3.54 4.04 3.64 5.21 5.94
2020 Jun 2020 2.54 3.61 4.09 3.64 5.21 5.94
2020 May 2020 2.62 3.66 4.14 3.64 5.21 5.94
2020 Apr 2020 2.68 3.71 4.19 3.64 5.21 5.94
2020 Feb 2020 2.75 3.80 4.26 3.64 5.21 5.94
2020 Jan 2020 2.77 3.83 4.28 3.64 5.21 5.94
2020 Dec 2019 2.78 3.85 4.30 3.64 5.21 5.94
2020 Nov 2019 2.79 3.87 4.33 3.64 5.21 5.94
2020 Oct 2019 2.79 3.90 4.35 3.64 5.21 5.94
2020 Sep 2019 2.79 3.92 4.38 3.64 5.21 5.94

Funding Table 3B for 2019

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2019 Jan 2021 1.75 3.04 3.65 3.74 5.35 6.11
2019 Dec 2020 1.87 3.12 3.72 3.74 5.35 6.11
2019 Nov 2020 1.99 3.21 3.8 3.74 5.35 6.11
2019 Oct 2020 2.11 3.3 3.86 3.74 5.35 6.11
2019 Sep 2020 2.22 3.38 3.92 3.74 5.35 6.11
2019 Aug 2020 2.33 3.46 3.98 3.74 5.35 6.11
2019 Jul 2020 2.44 3.54 4.04 3.74 5.35 6.11
2019 Jun 2020 2.54 3.61 4.09 3.74 5.35 6.11
2019 May 2020 2.62 3.66 4.14 3.74 5.35 6.11
2019 Apr 2020 2.68 3.71 4.19 3.74 5.35 6.11
2019 Mar 2020 2.71 3.75 4.21 3.74 5.35 6.11
2019 Feb 2020 2.75 3.8 4.26 3.74 5.35 6.11
2019 Jan 2020 2.77 3.83 4.28 3.74 5.35 6.11
2019 Dec 2019 2.78 3.85 4.30 3.74 5.35 6.11
2019 Nov 2019 2.79 3.87 4.33 3.74 5.35 6.11
2019 Oct 2019 2.79 3.90 4.35 3.74 5.35 6.11
2019 Sep 2019 2.79 3.92 4.38 3.74 5.35 6.11
2019 Aug 2019 2.78 3.94 4.41 3.74 5.35 6.11
2019 Jul 2019 2.76 3.95 4.43 3.74 5.35 6.11
2019 Jun 2019 2.74 3.96 4.44 3.74 5.35 6.11
2019 May 2019 2.71 3.96 4.45 3.74 5.35 6.11
2019 Apr 2019 2.68 3.95 4.46 3.74 5.35 6.11
2019 Mar 2019 2.65 3.95 4.48 3.74 5.35 6.11
2019 Feb 2019 2.60 3.94 4.49 3.74 5.35 6.11
2019 Jan 2019 2.55 3.93 4.49 3.74 5.35 6.11
2019 Dec 2018 2.50 3.92 4.50 3.74 5.35 6.11
2019 Nov 2018 2.43 3.89 4.49 3.74 5.35 6.11
2019 Oct 2018 2.35 3.85 4.47 3.74 5.35 6.11
2019 Sep 2018 2.28 3.81 4.46 3.74 5.35 6.11

Funding Table 3B for 2018

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2018 Jan 2020 2.77 3.83 4.28 3.92 5.52 6.29
2018 Dec 2019 2.78 3.85 4.30 3.92 5.52 6.29
2018 Nov 2019 2.79 3.87 4.33 3.92 5.52 6.29
2018 Oct 2019 2.79 3.90 4.35 3.92 5.52 6.29
2018 Sep 2019 2.79 3.92 4.38 3.92 5.52 6.29
2018 Aug 2019 2.78 3.94 4.41 3.92 5.52 6.29
2018 Jul 2019 2.76 3.95 4.43 3.92 5.52 6.29
2018 Jun 2019 2.74 3.96 4.44 3.92 5.52 6.29
2018 May 2019 2.71 3.96 4.45 3.92 5.52 6.29
2018 Apr 2019 2.68 3.95 4.46 3.92 5.52 6.29
2018 Mar 2019 2.65 3.95 4.48 3.92 5.52 6.29
2018 Feb 2019 2.60 3.94 4.49 3.92 5.52 6.29
2018 Jan 2019 2.55 3.93 4.49 3.92 5.52 6.29
2018 Dec 2018 2.50 3.92 4.50 3.92 5.52 6.29
2018 Nov 2018 2.43 3.89 4.49 3.92 5.52 6.29
2018 Oct 2018 2.35 3.85 4.47 3.92 5.52 6.29
2018 Sep 2018 2.28 3.81 4.46 3.92 5.52 6.29
2018 Aug 2018 2.21 3.77 4.45 3.92 5.52 6.29
2018 Jul 2018 2.14 3.73 4.44 3.92 5.52 6.29
2018 Jun 2018 2.07 3.70 4.43 3.92 5.52 6.29
2018 May 2018 2.00 3.68 4.44 3.92 5.52 6.29
2018 Apr 2018 1.94 3.66 4.44 3.92 5.52 6.29
2018 Mar 2018 1.89 3.66 4.46 3.92 5.52 6.29
2018 Feb 2018 1.84 3.66 4.49 3.92 5.52 6.29
2018 Jan 2018 1.81 3.68 4.53 3.92 5.52 6.29
2018 Dec 2017 1.79 3.70 4.56 3.92 5.52 6.29
2018 Nov 2017 1.77 3.73 4.60 3.92 5.52 6.29
2018 Oct 2017 1.76 3.74 4.63 3.92 5.52 6.29
2018 Sep 2017 1.75 3.76 4.66 3.92 5.52 6.29

Funding Table 3B for 2017

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2017 Jan 2019 2.55 3.93 4.49 4.16 5.72 6.48
2017 Dec 2018 2.50 3.92 4.50 4.16 5.72 6.48
2017 Nov 2018 2.43 3.89 4.49 4.16 5.72 6.48
2017 Oct 2018 2.35 3.85 4.47 4.16 5.72 6.48
2017 Sep 2018 2.28 3.81 4.46 4.16 5.72 6.48
2017 Aug 2018 2.21 3.77 4.45 4.16 5.72 6.48
2017 Jul 2018 2.14 3.73 4.44 4.16 5.72 6.48
2017 Jun 2018 2.07 3.70 4.43 4.16 5.72 6.48
2017 May 2018 2.00 3.68 4.44 4.16 5.72 6.48
2017 Apr 2018 1.94 3.66 4.44 4.16 5.72 6.48
2017 Mar 2018 1.89 3.66 4.46 4.16 5.72 6.48
2017 Feb 2018 1.84 3.66 4.49 4.16 5.72 6.48
2017 Jan 2018 1.81 3.68 4.53 4.16 5.72 6.48
2017 Dec 2017 1.79 3.70 4.56 4.16 5.72 6.48
2017 Nov 2017 1.77 3.73 4.60 4.16 5.72 6.48
2017 Oct 2017 1.76 3.74 4.63 4.16 5.72 6.48
2017 Sep 2017 1.75 3.76 4.66 4.16 5.72 6.48
2017 Aug 2017 1.73 3.78 4.69 4.16 5.72 6.48
2017 Jul 2017 1.72 3.80 4.72 4.16 5.72 6.48
2017 Jun 2017 1.71 3.83 4.75 4.16 5.72 6.48
2017 May 2017 1.68 3.83 4.77 4.16 5.72 6.48
2017 Apr 2017 1.65 3.82 4.76 4.16 5.72 6.48
2017 Mar 2017 1.62 3.80 4.75 4.16 5.72 6.48
2017 Feb 2017 1.60 3.79 4.74 4.16 5.72 6.48
2017 Jan 2017 1.57 3.77 4.73 4.16 5.72 6.48
2017 Dec 2016 1.55 3.76 4.73 4.16 5.72 6.48
2017 Nov 2016 1.53 3.76 4.74 4.16 5.72 6.48
2017 Oct 2016 1.52 3.78 4.76 4.16 5.72 6.48
2017 Sep 2016 1.52 3.80 4.79 4.16 5.72 6.48

Funding Table 3B for 2016

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2016 Jan 2018 1.81 3.68 4.53 4.43 5.91 6.65
2016 Dec 2017 1.79 3.70 4.56 4.43 5.91 6.65
2016 Nov 2017 1.77 3.73 4.60 4.43 5.91 6.65
2016 Oct 2017 1.76 3.74 4.63 4.43 5.91 6.65
2016 Sep 2017 1.75 3.76 4.66 4.43 5.91 6.65
2016 Aug 2017 1.73 3.78 4.69 4.43 5.91 6.65
2016 Jul 2017 1.72 3.80 4.72 4.43 5.91 6.65
2016 Jun 2017 1.71 3.83 4.75 4.43 5.91 6.65
2016 May 2017 1.68 3.83 4.77 4.43 5.91 6.65
2016 Apr 2017 1.65 3.82 4.76 4.43 5.91 6.65
2016 Mar 2017 1.62 3.80 4.75 4.43 5.91 6.65
2016 Feb 2017 1.60 3.79 4.74 4.43 5.91 6.65
2016 Jan 2017 1.57 3.77 4.73 4.43 5.91 6.65
2016 Dec 2016 1.55 3.76 4.73 4.43 5.91 6.65
2016 Nov 2016 1.53 3.76 4.74 4.43 5.91 6.65
2016 Oct 2016 1.52 3.78 4.76 4.43 5.91 6.65
2016 Sep 2016 1.52 3.80 4.79 4.43 5.91 6.65
2016 Aug 2016 1.51 3.83 4.82 4.43 5.91 6.65
2016 Jul 2016 1.51 3.86 4.86 4.43 5.91 6.65
2016 Jun 2016 1.50 3.88 4.89 4.43 5.91 6.65
2016 May 2016 1.48 3.90 4.90 4.43 5.91 6.65
2016 Apr 2016 1.47 3.92 4.92 4.43 5.91 6.65
2016 Mar 2016 1.46 3.93 4.94 4.43 5.91 6.65
2016 Feb 2016 1.43 3.94 4.96 4.43 5.91 6.65
2016 Jan 2016 1.41 3.96 4.97 4.43 5.91 6.65
2016 Dec 2015 1.39 3.98 5.00 4.43 5.91 6.65
2016 Nov 2015 1.36 3.99 5.02 4.43 5.91 6.65
2016 Oct 2015 1.35 4.01 5.04 4.43 5.91 6.65
2016 Sep 2015 1.34 4.03 5.06 4.43 5.91 6.65

Funding Table 3B for 2015

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2015 Jan 2017 1.57 3.77 4.73 4.72 6.11 6.81
2015 Dec 2016 1.55 3.76 4.73 4.72 6.11 6.81
2015 Nov 2016 1.53 3.76 4.74 4.72 6.11 6.81
2015 Oct 2016 1.52 3.78 4.76 4.72 6.11 6.81
2015 Sep 2016 1.52 3.80 4.79 4.72 6.11 6.81
2015 Aug 2016 1.51 3.83 4.82 4.72 6.11 6.81
2015 Jul 2016 1.51 3.86 4.86 4.72 6.11 6.81
2015 Jun 2016 1.50 3.88 4.89 4.72 6.11 6.81
2015 May 2016 1.48 3.90 4.90 4.72 6.11 6.81
2015 Apr 2016 1.47 3.92 4.92 4.72 6.11 6.81
2015 Mar 2016 1.46 3.93 4.94 4.72 6.11 6.81
2015 Feb 2016 1.43 3.94 4.96 4.72 6.11 6.81
2015 Jan 2016 1.41 3.96 4.97 4.72 6.11 6.81
2015 Dec 2015 1.39 3.98 5.00 4.72 6.11 6.81
2015 Nov 2015 1.36 3.99 5.02 4.72 6.11 6.81
2015 Oct 2015 1.35 4.01 5.04 4.72 6.11 6.81
2015 Sep 2015 1.34 4.03 5.06 4.72 6.11 6.81
2015 Aug 2015 1.32 4.06 5.09 4.72 6.11 6.81
2015 Jul 2015 1.31 4.07 5.10 4.72 6.11 6.81
2015 Jun 2015 1.30 4.07 5.11 4.72 6.11 6.81
2015 May 2015 1.28 4.07 5.11 4.72 6.11 6.81
2015 Apr 2015 1.26 4.07 5.13 4.72 6.11 6.81
2015 Mar 2015 1.25 4.08 5.15 4.72 6.11 6.81
2015 Feb 2015 1.23 4.10 5.18 4.72 6.11 6.81
2015 Jan 2015 1.22 4.11 5.20 4.72 6.11 6.81
2015 Dec 2014 1.20 4.10 5.20 4.72 6.11 6.81
2015 Nov 2014 1.18 4.08 5.18 4.72 6.11 6.81
2015 Oct 2014 1.17 4.07 5.17 4.72 6.11 6.81
2015 Sep 2014 1.15 4.06 5.15 4.72 6.11 6.81

Funding Table 3B for 2014

24-Month Average Segment Rates Not Adjusted For 25-Year Averages Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Beginning In   Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2014 Jan 2016 1.41 3.96 4.97 4.99 6.32 6.99
2014 Dec 2015 1.39 3.98 5.00 4.99 6.32 6.99
2014 Nov 2015 1.36 3.99 5.02 4.99 6.32 6.99
2014 Oct 2015 1.35 4.01 5.04 4.99 6.32 6.99
2014 Sep 2015 1.34 4.03 5.06 4.99 6.32 6.99
2014 Aug 2015 1.32 4.06 5.09 4.99 6.32 6.99
2014 Jul 2015 1.31 4.07 5.10 4.99 6.32 6.99
2014 Jun 2015 1.30 4.07 5.11 4.99 6.32 6.99
2014 May 2015 1.28 4.07 5.11 4.99 6.32 6.99
2014 Apr 2015 1.26 4.07 5.13 4.99 6.32 6.99
2014 Mar 2015 1.25 4.08 5.15 4.99 6.32 6.99
2014 Feb 2015 1.23 4.10 5.18 4.99 6.32 6.99
2014 Jan 2015 1.22 4.11 5.20 4.99 6.32 6.99
2014 Dec 2014 1.20 4.10 5.20 4.99 6.32 6.99
2014 Nov 2014 1.18 4.08 5.18 4.99 6.32 6.99
2014 Oct 2014 1.17 4.07 5.17 4.99 6.32 6.99
2014 Sep 2014 1.15 4.06 5.15 4.99 6.32 6.99
2014 Aug 2014 1.15 4.06 5.14 4.99 6.32 6.99
2014 Jul 2014 1.14 4.04 5.11 4.99 6.32 6.99
2014 Jun 2014 1.16 4.04 5.11 4.99 6.32 6.99
2014 May 2014 1.18 4.05 5.11 4.99 6.32 6.99
2014 Apr 2014 1.19 4.06 5.11 4.99 6.32 6.99
2014 Mar 2014 1.20 4.06 5.10 4.99 6.32 6.99
2014 Feb 2014 1.22 4.06 5.09 4.99 6.32 6.99
2014 Jan 2014 1.25 4.06 5.08 4.99 6.32 6.99
2014 Dec 2013 1.28 4.05 5.07 4.99 6.32 6.99
2014 Nov 2013 1.31 4.05 5.05 4.99 6.32 6.99
2014 Oct 2013 1.35 4.05 5.05 4.99 6.32 6.99
2014 Sep 2013 1.37 4.05 5.06 4.99 6.32 6.99

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Amendments to Code Provisions for Segment Rates

The Code provisions specifying the required segment rates have been amended several times, by:

  • Moving Ahead for Progress in the 21st Century Act (MAP-21) - added IRC 430(h)(2)(C)(iv) and requires that the 24-month average segment rates be adjusted by the applicable maximum and applicable minimum percentages of 25-year average segment rates.
  • Highway and Transportation Funding Act of 2014 (HATFA) Section 2003(a) - amended the applicable percentages under IRC 430(h)(2)(C)(iv)
  • Bipartisan Budget Act of 2015 (BBA) Section 504 - amended the applicable percentages again, generally effective for plan years beginning after December 31, 2015.
  • American Rescue Plan Act of 2021 (ARP) Section 9706(a) - amended the applicable percentages as well as the determination of the 25-year average segment rates, generally effective for plan years beginning after 2019. However, for plan years beginning before 2022, plan sponsors may elect under ARP Section 9706(c)(2) to not apply the changes under Section 9706(a).
  • Infrastructure Investment and Jobs Act (IIJA). Section 80602(a) - amended the applicable percentages.

Pre-ARP Rules

Under ARP Section 9706(c)(2) the plan sponsor may elect not to apply the segment rates as revised by ARP Section 9706(a) for a plan year beginning in 2020 or 2021 either for all purposes, or for only certain purposes.

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Plans Not Subject to Standard Segment Rate Provisions

These plans are not subject to the ARP provisions noted above:

  • Plans noted in the Pension Protection Act of 2006 Section 402
  • CSEC plans under IRC 414(y)
  • Plans that elect to use the full yield curve under IRC Section 430(h)(2)(D)(ii) in place of the segment rates. 

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Pre-2014 Segment Rates

For segment rates for plan years before 2014, and for certain electing plans under HATFA and BBA, see the Historical Funding Segment Rate Tables.

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