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.
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