PPA Interest rates

[FAPInJax]

I believe there is general agreement that for funding the target uses a 24 month average rate set by the Secretary and that PVAB minimum lump sums are calculated using a yield curve without the 24 month average.

Does the PBGC variable rate premium use the same yield curve as the PVAB? It appears to read the same but would appreciate another set of eyes.

Thanks in advance for any and all comments.

[SoCalActuary]

Not the same as PVAB in my view.

PVAB in 417(e) will be based on rates approved by the Secretary, which allows up to 4-5 months of lookback, if Treasury wants it.

PVAB for variable premium is one month lookback only.

[FAPInJax]

Darn! I was hoping for at least one simple calculation where the interest rates didn't keep changing. Oh well!

Thanks for the input.