Transitioanl Segment Rates for Valuation

[flosfur]

I thought the whole idea of a transitional rule is to lessen the impact of new laws/regulations.

With that in mind, I thought the transitional segment rates would produce lower required contributions. But that is not to happening in general because looking at the 2008 rates, the 2nd & 3rd segments are about equal to or less than the regular rates!

Needless to say, transitional rates produce higher FT & TNC for a benefit stream starting after 5 years than the regular segment rates!

Was this intended or is there something wrong with the published transitional 2nd & 3rd segment rates or have copied them down wrong?

[SoCalActuary]

Your theory of the "intent" of the transitional rules is as good as any.

However, another theory is that the transitional rules do not make anything easier. They just dampen the raw economic changes.

However, the yield curve since September is most unusual, and has been dramatically different than other recession cycles.