New PPA interest rates - ETA?

[AndyH]

Anybody out there "in the know" about when we might expect any information on the new rates for 2008? I am interested in particular about the relative increase in the 417(e) rate once phased in, and how that might compare to both the Treasury rate and the segmented yield curve rates. But I guess everybody else is also.

[Belgarath]

Oh, I don't know about that. Some of us are far more interested in having the snow melt off so we can hit a few golf balls, and dream about being Tiger Woods when we finally grow up...

But on a more serious note, was just mentioning this to our actuary yesterday, who also hasn't heard anything of substance.

[david rigby]

Surely this was discussed at the Enrolled Actuaries meeting, earlier this week.

Any attendees able to provide feedback?

[FAPInJax]

The feedback from EA was that - Yes, it would be nice to publish something soon. This is due to the '180 days' necessary for a potential lump sum payment in early 2008??

HOWEVER, the issue became whether we (the royal WE) wanted something published OR whether we wanted to comment on the rates first (which would then delay publication). A vote was taken of those in the room and 80% wanted them to just release something by 7/1. However, the remaining people wanted to see the methodology before accepting the rates which would then delay the publication (IRS is supposed to publish the methodology as part of the law).

The IRS does intend to release regulations on a piecemeal basis (depending on when certain things become more urgent). For example, their first priority (believe it or not) is to publish something for the ability to provide a specific mortality table for use in the calculations. These tables must be submitted by 5/31?.

Their next priority might be the lump sum rules.