CORPORATE BOND WEIGHTED AVERAGE INTEREST RATE
Sections 412(b)(5)(B)(ii) and 412(l)(7)(C)(i), as amended by the
Pension Funding Equity Act of 2004 and by the Pension Protection Act
of 2006 (PPA), provide that the interest rates used to calculate
current liability and to determine the required contribution under §
412(l) for plan years beginning in 2004 through 2007 must be within
a permissible range based on the weighted average of the rates of
interest on amounts invested conservatively in long term investment
grade corporate bonds during the 4-year period ending on the last
day before the beginning of the plan year.
Notice 2004-34, 2004-1 C.B. 848, provides guidelines for
determining the corporate bond weighted average interest rate and
the resulting permissible range of interest rates used to calculate
current liability. That notice establishes that the corporate bond
weighted average is based on the monthly composite corporate bond
rate derived from designated corporate bond
indices. The methodology for determining the monthly composite
corporate bond rate as set forth in Notice 2004-34 continues to
apply in determining that rate. See Notice 2006-75, 2006-2 C.B. 366.
The composite corporate bond rate for July 2009 is 6.39 percent.
Pursuant to Notice 2004-34, the Service has determined this rate as
the average of the monthly yields for the included corporate bond
indices for that month.
The tables are found in this pdf file.
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