IRS Publishes Notice on Updated Interest Rates, Yield Curves for Pension Plan Funding

The IRS has published a notice providing updated corporate bond monthly yield curves, segment rates, and Treasury security interest rates that pension plans must use for funding calculations. The notice provides spot segment rates for January 2026, 24-month average segment rates for February 2026 (both adjusted and unadjusted for 25-year average limits), and 30-year Treasury weighted average rates. Single-employer plans use these rates under I.R.C. §430 to determine target normal costs and funding targets, while multiemployer plans apply them under I.R.C. §431 for minimum funding requirements. The notice also specifies minimum present value segment rates under I.R.C. §417 for benefit ...