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Old 06-29-2018, 04:15 PM   #41
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Originally Posted by Big_Hitter View Post
after GATT became effective for lump sump calculations, which I believe was in 97 or so, they stopped selling 30 year bonds so the rate was essentially made up until they started selling them again. that's why I said constructed

do you guys think I just make this stuff up?

No, just wondering how it was done... and if it is based on 30 year then why would the lump sum be going down if the interest rate is going down the last two months...


BTW, it was a bit later when they stopped and it was not that long either... from Wiki...
The U.S. Federal government suspended issuing 30-year Treasury bonds for four years from February 18, 2002 to February 9, 2006


Edit to add..... looks like they do a 4 month lookback at the rate... so if you keep up with it you will know when it is the best time to retire... looks pretty flat for the next few months.... but, not sure if this is for everybody...



http://hr.bpglobal.com/LifeBenefits/...ent-rates.aspx
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Old 07-02-2018, 09:08 AM   #42
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No, just wondering how it was done... and if it is based on 30 year then why would the lump sum be going down if the interest rate is going down the last two months...

depends on the lookback or stability period used to determine the rate
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Old 07-02-2018, 09:10 AM   #43
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BTW, it was a bit later when they stopped and it was not that long either... from Wiki...
not many plan sponsors stuck with the gatt rate, but i remember that treasury stopped issuing 30 year debt during the gatt interest rate era

typically when the statutory lump sum basis is changed there is no requirement to grandfather the prior basis
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Old 07-02-2018, 09:44 AM   #44
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My mega corp used the PBGC rate for lump sum for as long as I can remember.

https://www.pbgc.gov/prac/interest/vls
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