The Pension Benefit Guaranty Corp. issued its interest rate assumptions for December that must be used when single-employer pension plans are terminated.
The rule, which goes into effect March 1, sets the interest rate assumptions for March at 1.50 percent for the benefits that are already being paid out to beneficiaries and 4 percent for any years prior to participants receiving benefits.
PBGC uses the interest assumptions to determine whether a benefit is payable as a lump sum and to determine the amount to pay. They are intended to reflect current market conditions in the financial and annuity markets.
Assumptions under the benefit payments regulation are updated monthly.
These interest assumptions are a decrease of 0.25 percent in the immediate annuity rate from February 2014, but are otherwise unchanged.