Interest Rates for 2026 Cash Balance Contribution Calculations

[metsfan026]

Previously we had been using the rates from the Funding Table 2A (Post-ARP/ILJA 25-year segment rates) for our calculations.  This year it was:

Tier 1 - 4.75
Tier 2 - 4.81
Tier 3 - 5.50

However, I believe those rates are no more (or maybe I'm wrong).  What are we supposed to use in their place?

Thanks in advance!

[Bri]

Figure out what month the actuary elected last year, and you can see that on the SB where the rates are listed and the applicable month is indicated (0 for when the rates are the month including the valuation date).

You should be able to find the rates for this year's version of that month in table 3A.

Isn't 2A just to show how the corridors are established?

 

[metsfan026]

On 8/25/2026 at 5:07 PM, Bri said:

Figure out what month the actuary elected last year, and you can see that on the SB where the rates are listed and the applicable month is indicated (0 for when the rates are the month including the valuation date).

You should be able to find the rates for this year's version of that month in table 3A.

Isn't 2A just to show how the corridors are established?

 

So would it be prudent, for a 12/31/25 plan, to use the December '25 rates and indicate 0 for the month?  I just want to make sure I understand

[Bri]

Ha, as an actuary I'd not necessarily say it's prudent (absent facts and circumstances) but it's certainly typical