For pension plan years beginning in July 2011, the IRS has released the corporate bond weighted average interest rate, the permissible range of interest rates used to calculate current plan liability and to determine the required contribution under Code Sec. 412(l) for plan years through 2011, and the current corporate bond yield curve and related segment rates for the purpose of establishing a plan’s funding target under Code Sec. 430(h)(2).
The corporate bond weighted average interest rate for plan years beginning in July 2011 is 5.97 percent; and the 90-percent to 100-percent permissible range is 5.37 percent to 5.97 percent.
The 24-month average corporate bond segment rates for July 2011 are: 2.18 for the first segment; 5.36 for the second segment; and 6.33 for the third segment.
The annual rate of interest on 30-year Treasury securities for June 2011, used to determine the minimum present value of a participant’s benefit under Code Sec. 417(e)(1) and (2), is 4.23 percent.
For plan years beginning in 2011, the minimum present value transitional segment rates for June 2011 are: 2.21 for the first segment; 4.84 for the second segment; and 5.91 for the third segment.
Notice 2011-59, 2011FED ¶46,409
Code Sec. 401
CCH Reference – 2011FED ¶17,730.40
Code Sec. 412
CCH Reference – 2011FED ¶19,125.505
Code Sec. 417
Code Sec. 430
CCH Reference – 2011FED ¶20,161.30
Tax Research Consultant
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