Interest Rate for EBAR Calculation

[Stash026 0]

Is the approved interest rate when calculating an EBAR in a Cash Balance Plan still between 7.5% and 8.5%?  I was discussing this with someone and know that used to be the acceptable range, but I wasn't sure if that had been changed or indexed.

Thanks!

[C. B. Zeller 270]

That is still the definition of "standard interest rate" in 1.401(a)(4)-12

[Cloudy 2]

Assuming you are doing annual testing on a benefits basis, project the CB pay credit to retirement age using the CB interest crediting rate defined in the plan for the testing year (not a testing interest rate) and divide that result by an annuity factor at retirement based on the plans definition of actuarial equivalence. Divide that by testing compensation to get the CB EBAR. That assumes testing age equals retirement age.