The Pension Benefits Guaranty Corp. on Friday issued the December interest rate assumptions that must be used when single employer retirement plans are terminated.

The rule, which goes into effect on Dec. 1 and is updated monthly, sets interest rate assumptions at 1.75 percent for the period during which a benefit is already being paid and 4 percent during any years prior to participants receiving benefits. The rates are unchanged from November.

The interest rates are meant to reflect conditions in the financial and annuity markets. The rates are used for determining payments when single-employer plans are terminated under the pension insurance system administered by PBGC.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.