IRS Publishes Notice Updating Rates for Pension Plan Funding Calculations

The IRS has published a notice on updated interest rates and yield curves that pension plans must use for funding calculations. The notice provides corporate bond monthly yield curves, 24-month average segment rates under I.R.C. §430(h)(2), 30-year Treasury securities interest rates under I.R.C. §417(e)(3) and I.R.C. §431(c)(6)(E)(ii)(I), and minimum present value segment rates under I.R.C. §417(e)(3)(D). The rates apply to single-employer and multiemployer pension plans for determining minimum funding requirements, target normal costs, funding targets, and current liability calculations. The spot first-, second-, and third-segment rates for April 2026 are 4.27 percent, 5.34 percent, and 6.22 percent, respectively. [IRS, Notice ...