Type of Interest Rate

Format

Example

Resulting Interest

Comments

Single rate

Value as a number or as a percent

5.25%
5.25
.0525

5.25%

This is the simplest use of the interest rate assumption – one rate that applies for all time.

PPA segment rates

PPA segment rates

3 values entered as text:
“rate1/rate2/rate3”

“1.47/3.34/4.3”

PPA segment interest rates:
1.47% for payments made in the first 5 years,
3.34% for payments made in the next 15 years,
4.3% thereafter

Be sure to enter the parameter as a text string, otherwise Excel will treat this as a single rate = .

This is a special case of the use of spot rates.

Deferred and immediate

Deferred and immediate
2 rates

2 values entered as text:
“rate1/rate2”

“4/5”

4% during deferral, 5% during payment

Be sure to enter the parameter as a text string, otherwise Excel will treat this as a single rate =.

Deferred and immediate
PBGC, 4 rates

4 values entered as text:
“rate1/rate2/rate3/rate4”

“1/2/3/4”

1% for first 7 years of deferral,
2% for next 8 years of deferral,
3% thereafter during deferral;
4% during payment

Be sure to enter the parameter as a text string, otherwise Excel will treat this as a single rate = .

Select and ultimate rates

Select and ultimate
20 years for ERISA 4044 annuities

2 values entered as text:
“rate1+rate2”

“1+2”

Select and ultimate interest rates:
1% for first 20 years, 2% thereafter

Be sure to enter the parameter as a text string, otherwise Excel will treat this as a single rate =.

This is a special case of the use of forward rates.

Select and ultimate
25 years for ERISA 4044 annuities

2 values entered as text:
“rate1^rate2”

“3^4”

Select and ultimate interest rates:
3% for first 25 years, 4% thereafter

Be sure to enter the parameter as a text string, otherwise Excel will treat this as a single rate =.

This is a special case of the use of forward rates.

Spot rates

Spot rates
IRS yield curve

“IRS month/year”

“irs 11/2021”

IRS Monthly Yield Curve Spot Rates for 1/2021:
.24%, .37%, .5%, .67%, .89%, 1.15%, ...

These are spot rates for whole years from The Treasury High Quality Market (HQM) Corporate Bond Yield Curve published on the IRS web site for Monthly Yield Curve Tables. January 2020 and later are available.

Spot rates
ERISA 4044 yield curve

“ERISA4044 month/year”

“erisa4044 7/2024”

ERISA 4044 Monthly Yield Curve Spot Rates for 7/2024:
5.37%, 4.99%, 4.82%, 4.77%, 4.78%, 4.83%, …

These are spot rates for whole years from the ERISA 4044 interest rates published on the PBGC web site. July 2024 and later are available.

Spot rates
FTSE yield curve

“FTSE month/year”

“ftse 10/2021”

FTSE Pension Discount Curve Spot Rates for 10/2021:
.374112%, .730893%, 1.024209%, 1.308087%, 1.494215%, 1.7185%, ...

These are spot rates for whole years from the FTSE Pension Discount Curve published on the Yield Book web site for FTSE Pension Liability Index.

Spot rates
FTSE Above Median Double-A Curve

“FTSEABOVE month/year”

“ftseabove 11/2021”

FTSE Above Median Double-A Curve Spot Rates for 11/2021:
.662121%, .94696%, 1.270489%, 1.520365%, 1.644386%, 1.860225%, ...

These are spot rates for whole years from the FTSE Pension Discount Curve published on the Yield Book web site for FTSE Above Median Double-A Index.

Spot rates

Reference to a range of values by providing the address of a named range, or the range name

“B1:B30”
or
a range name that refers to “B1:B30”

Spot rates from the array of values in the range

The range can be vertical or horizontal.

If the range contains exactly 3 rates, then they are used as 3 PPA segment rates.

Forward rates

Forward rates

Reference to a range of values by providing the address of a named range, or the range name, where the first item in the array is the word “forward”

“B1:B30”
or
a range name that refers to “B1:B30”
(the first item in the range is the word “forward”)

Forward rates from the array of values in the range, starting with the second item in the array (because the first item is the word “forward”)

The range can be vertical or horizontal.