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Practitioners

PBGC December 31, 2000 Interest Rate Update

The interest rate for valuing lump sum payments for the month of January 2001 is 5.00%. The deferred interest rate I1 is 4.25%, I2 is 4%, and I3 is 4%. (The interest rate for December 2000 was 5.25% for lump sum payments; the deferred interest rate I1 was 4.50%, I2 was 4%, and I3 was 4%.)

The interest rate for determining the variable rate premium amount for premium payment years commencing in December 2000 is 4.91%. (The interest rate for November 2000 was 4.93%.)

The interest rate for valuing annuity benefits in single-employer plans and multiemployer plans for the month of January 2001 is 6.70% for the first 20 years following the date of plan termination and 6.25% thereafter. (The interest rate for December 2000 was 7.00% for the first 25 years.)

The interest rate that PBGC will charge on employer liability, unpaid contributions, and unpaid premiums, for the calendar quarter beginning January 1, and ending March 31, 2001, is 9%. (The interest rate for October 1 to December 31, 2000 was 9%.)

The interest rate to be charged by multiemployer pension plans on withdrawal liability payments that are overdue or in default, or that is to be credited by such plans on overpayments of withdrawal liability during the calendar quarter beginning January 1, and ending March 31, 2001, is 9.50%. (The interest rate for October 1 to December 31, 2000 was 9.50%.)