Interest Rate for 2005

[Guest Bob_DB]

My understanding is that a rate of 5.07% was used for determining lump sum distributions in 2004 (e.g., employee terminates and accrued benefits are converted to equivalent present value).

My questions are:

How is this rate determined?

Do we know what the rate will be for 2005?

Thanks.

[david rigby]

5.07% may be the rate for 2004, depending on plan provisions. It is the December 2003 30-year Treasury Security Rate,

http://www.irs.gov/retirement/article/0,,id=96450,00.html

We will not know the December 2004 rate until a few days into January.