SECTION 7. REQUEST FOR

COMMENTS AND CONTACT INFORMATION

The Treasury Department and the IRS request comments on the regulations described in section 4.06 of this notice (concerning reporting requirements). Specifically, comments are requested on whether the regulations should provide rules similar to those in the recently finalized reg

August 24, 2015 216 Bulletin No. 2015–34

ulations under sections 367(a) and 6038B regarding failures to file gain recognition agreements or to satisfy other reporting obligations, including the standards for relief therein. See T.D. 9704, 2014–50 I.R.B. 922. Comments also are requested on whether an Acceleration Event should exclude a distribution of Section 721(c) Property to an unrelated foreign partner beyond the seven-year limitation of section 704(c)(1)(B). Finally, comments are also requested regarding the regulations described in section 5 of this notice that will provide specified valuation methods and periodic adjustment rules for controlled transactions involving partnerships based on § 1.482–7(g) and (i)(6), and the extent to which the documentation requirements described in § 1.6662– 6(d)(2)(iii) should be expanded to include specific requirements for transactions involving partnerships.

Written comments may be submitted to the Internal Revenue Service, CC:PA: LPD (Notice 2015–54), Room 5207, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Comments also may be hand-delivered Monday through Friday between the hours of 8:00 a.m. to 4:00 p.m. to the Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Attn: CC:PA:LPD:PR (Notice 2015–54). Comments also may be submitted electronically to notice. comments@irscounsel.treas.gov. Please include “Notice 2015–54” in the subject line of any electronic submission. Comments will be available for public inspection and copying. The principal authors of this notice are Ryan A. Bowen and Kenneth A. Jeruchim of the Office of Associate Chief Counsel (International). However, other personnel from the Treasury Department and the IRS also participated in its development. For further informa

Applicable

Month

First Segment

tion regarding this notice contact Mr. Bowen (section 4) at (202) 317-6937 or Mr. Jeruchim (section 5) at (202) 317-6939 (not a toll-free number).

Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

Notice 2015–55

This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I).

YIELD CURVE AND SEGMENT RATES

Generally, except for certain plans under sections 104 and 105 of the Pension Protection Act of 2006 and CSEC plans under § 414(y), § 430 of the Code specifies the minimum funding requirements that apply to single-employer plans pursuant to § 412. Section 430(h)(2) specifies the interest rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates (“segment rates”), each of which applies to cash flows during specified periods. To the extent provided under § 430(h)(2)(C)(iv), these segment rates are adjusted by the applicable percentage of the

25-year average segment rates for the period ending September 30 of the year preceding the calendar year in which the plan year begins. ¹ However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates.

Notice 2007–81, 2007–44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent with the methodology specified in Notice 2007–81, the monthly corporate bond yield curve derived from July 2015 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of July 2015 are, respectively, 1.63, 4.14, and 5.13.

The 24-month average segment rates determined under § 430(h)(2)(C)(i) through (iii) must be adjusted pursuant to § 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates. For plan years beginning before 2018, the applicable minimum percentage is 90% and the applicable maximum percentage is 110%. The 25-year average segment rates for plan years beginning in 2012, 2013, 2014 and 2015 were published in Notice 2012–55, 2012–36 I.R.B. 332, Notice 2013–11, 2013–11 I.R.B. 610, Notice 2013–58, 2013–40 I.R.B. 294, and Notice 2014–50, 2014–40 I.R.B. 590, respectively.

24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES

The three 24-month average corporate bond segment rates applicable for August 2015 without adjustment for the 25-year average segment rate limits are as follows:

Third Segment

Second Segment

August 2015 1.32 4.06 5.09

pc;norm Based on § 430(h)(2)(C)(iv), the 24-month averages applicable for August 2015 adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates, are as follows:

1Pursuant to § 433(h)(3)(A), the 3rd segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount of the full funding limitation under § 433(c)(7)(C)).

Bulletin No. 2015–34 217 August 24, 2015

For Plan

Years Beginning

25-Year Average Rates

Applicable First Second

Adjusted 24-Month Average Segment Rates, Based on the HATFA

Applicable Percentage of

In

Applicable First Second Third

Month Segment Segment Segment

2014 August 2015 4.99 6.32 6.99

2015 August 2015 4.72 6.11 6.81

Second Segment

Month

First Segment

rate of interest on 30-year Treasury securities for July 2015 is 3.07 percent. The Service determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in May 2045. For plan years beginning in the month shown below, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rate used to calculate current liability are as follows:

Permissible Range

30-YEAR TREASURY SECURITIES INTEREST RATES

Generally for plan years beginning after 2007, § 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in § 431(c)(6)(A), based on the plan’s current liability. Section

For Plan Years

Beginning in

431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88–73, 1988–2 C.B. 383, provides guidelines for determining the weighted average interest rate. The

30-Year Treasury Weighted

Month Year Average 90% to 105%

August 2015 3.17 2.85 3.33

MINIMUM PRESENT VALUE SEGMENT RATES

In general, the applicable interest rates under § 417(e)(3)(D) are segment rates

First Segment

computed without regard to a 24-month average. Notice 2007–81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value seg

Second Segment

ment rates determined for July 2015 are as follows:

Third Segment

1.63 4.14 5.13

DRAFTING INFORMATION

The principal author of this notice is Tom Morgan of the Office of the Associ

ate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS participated in the development of this guidance. For further

information regarding this notice, contact Mr. Morgan at 202-317-8719 or Tony Montanaro at 202-317-8698 (not a tollfree number).

August 24, 2015 218 Bulletin No. 2015–34

Table I Monthly Yield Curve for July 2015

Derived from July 2015 Data

Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield

Bulletin No. 2015–34 219 August 24, 2015