[In using this table:

1. (1) To determine the applicable rate set for any given month (month x), use the applicable 12-year rate for the second preceding month (month x−2) to find the corresponding rate set. The applicable 12-year rate for the second preceding month is the 12-year rate from the corporate bond yield curve described in section 430(h)(2)(D)(ii) of the Code determined without regard to 24-month averaging for the second month preceding the month of the desired applicable rate set.
2. (2) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate annuity rate shall apply.
3. (3) For benefits for which the deferral period is y years (where y is an integer and 0 < y ≤ 7), interest rate i1 shall apply from the valuation date for a period of y years; thereafter the immediate annuity rate shall apply.
4. (4) For benefits for which the deferral period is y years (where y is an integer and 7 < y ≤ 15), interest rate i2 shall apply from the valuation date for a period of y−7 years; interest rate i1 shall apply for the following 7 years; thereafter the immediate annuity rate shall apply.

5. (5) For benefits for which the deferral period is y years (where y is an integer and y > 15), interest rate i3 shall apply from the valuation date for a period of y−15 years; interest rate i2 shall apply for the following 8 years; interest rate i1 shall apply for the following 7 years; thereafter the immediate annuity rate shall apply.]

   For Plans With a Valuation Date On or After January 1, 2021

   Applicable 12-year rate for month x−2(percent)	Applicable rate set for month x
   Immediateannuity rate(percent)	Deferred annuity rates(percent)
   i1	i2	i3
   Below 3.18	0.00	4.00	4.00	4.00
   3.18 to 3.40	0.25	4.00	4.00	4.00
   3.41 to 3.63	0.50	4.00	4.00	4.00
   3.64 to 3.87	0.75	4.00	4.00	4.00
   3.88 to 4.10	1.00	4.00	4.00	4.00
   4.11 to 4.34	1.25	4.00	4.00	4.00
   4.35 to 4.57	1.50	4.00	4.00	4.00
   4.58 to 4.81	1.75	4.00	4.00	4.00
   4.82 to 5.04	2.00	4.00	4.00	4.00
   5.05 to 5.28	2.25	4.00	4.00	4.00
   5.29 to 5.51	2.50	4.00	4.00	4.00
   5.52 to 5.75	2.75	4.00	4.00	4.00
   5.76 to 5.98	3.00	4.00	4.00	4.00
   5.99 to 6.22	3.25	4.00	4.00	4.00
   6.23 to 6.46	3.50	4.00	4.00	4.00
   6.47 to 6.69	3.75	4.00	4.00	4.00
   6.70 to 6.93	4.00	4.00	4.00	4.00
   6.94 to 7.16	4.25	4.00	4.00	4.00
   7.17 to 7.40	4.50	4.00	4.00	4.00
   7.41 to 7.64	4.75	4.00	4.00	4.00
   7.65 to 7.87	5.00	4.25	4.00	4.00
   7.88 to 8.11	5.25	4.50	4.00	4.00
   8.12 to 8.35	5.50	4.75	4.00	4.00
   8.36 to 8.58	5.75	5.00	4.00	4.00
   8.59 to 8.82	6.00	5.25	4.00	4.00
   8.83 to 9.06	6.25	5.50	4.25	4.00
   9.07 to 9.30	6.50	5.75	4.50	4.00
   9.31 to 9.53	6.75	6.00	4.75	4.00
   9.54 to 9.78	7.00	6.25	5.00	4.00
   9.79 to 10.02	7.25	6.50	5.25	4.00
   Above 10.02	7.50	6.75	5.50	4.00

[85 FR 55591, Sept. 9, 2020]