SECTION 4. DRAFTING

INFORMATION

The principal authors of this notice are Stephanie Bland, Amanda Dunlap, and Natalie Payne of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For questions regarding this notice, contact Stephanie Bland or Amanda Dunlap at (202) 317-6855 (not a tollfree number).

1 Pursuant to § 433(h)(3)(A), the third 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)).

May 2, 2022 1044 Bulletin No. 2022–18

yield curve derived from March 2022 data is in Table 2022-3 at the end of this notice. The spot first, second, and third segment rates for the month of March 2022 are, respectively, 2.44, 3.71, and 3.94

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. The 25-year average segment rates for plan years beginning in 2021 and 2022 were published in Notice 2020-72, 2020-40 I.R.B. 789, and Notice 2021-54, 2021-41 I.R.B. 457, respectively.

24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES

The three 24-month average corporate bond segment rates applicable for April 2022 without adjustment for the 25-year average segment rate limits are as follows:

24-Month Average Segment Rates Without 25-Year Average Adjustment Applicable Month First Segment Second Segment Third Segment April 2022 0.87 2.67 3.29

25-YEAR AVERAGE SEGMENT RATES

Section 9706(a) of the American Rescue Plan Act of 2021, Pub. L. 117-2 (the ARP), which was enacted on March 11, 2021, changed the 25-year average segment rates and the applicable minimum and maximum percentages used under § 430(h)(2)(C)(iv) of the Code to adjust the 24-month average segment rates. ² Prior to this change, the applicable minimum and maximum percentages were 85% and 115% for a plan year beginning in 2021, and 80% and 120% for

a plan year beginning in 2022, respectively. After this change, the applicable minimum and maximum percentages are 95% and 105% for a plan year beginning in 2021 or 2022. In addition, pursuant to this change, any 25-year average segment rate that is less than 5% is deemed to be 5%. ³

Pursuant to § 9706(c)(1) of the ARP, these changes apply with respect to plan years beginning on or after January 1, 2020. However, § 9706(c)(2) of the ARP provides that a plan sponsor may elect not to have these changes apply to any plan year beginning before January 1, 2022. ⁴

The adjusted 24-month average segment rates set forth in the chart below reflect § 430(h)(2)(C)(iv) of the Code as amended by § 9706(a) of the ARP. These adjusted 24-month average segment rates apply only for plan years for which an election under § 9706(c)(2) of the ARP is not in effect. For a plan year for which such an election does not apply, the 24-month averages applicable for April 2022, adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates in accordance with § 430(h)(2) (C)(iv) of the Code, are as follows:

Adjusted 24-Month Average Segment Rates For Plan Years Applicable First

Second Segment

First Segment

Third Segment

Beginning In

Applicable

Month

2021 April 2022 4.75 5.36 6.11

2022 April 2022 4.75 5.18 5.92

The adjusted 24-month average segment rates set forth in the chart below do not reflect the changes to § 430(h)(2)(C) (iv) of the Code made by § 9706(a) of the ARP. These adjusted 24-month average

segment rates apply only for plan years for which an election under § 9706(c)(2) of the ARP is in effect. For a plan year for which such an election applies, the 24-month averages applicable for April

2022, adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates in accordance with § 430(h)(2) (C)(iv) of the Code, are as follows:

Pre-ARP Adjusted 24-Month Average Segment Rates For Plan Years Applicable First

First Segment

Second Segment

Third Segment

Beginning In

Applicable

Month

2021 April 2022 3.32 4.79 5.47

2 Section 80602 of the Infrastructure Investment and Jobs Act, Pub. L. 117-58, makes further changes to the time periods for which specified applicable minimum and maximum percentages apply.

3 Pursuant to this change, the 25-year averages of the first segment rate for 2021 and 2022 are increased to 5.00% because those 25-year averages as originally published are below 5.00%.

4 This election may be made either for all purposes for which the amendments under § 9706 of the ARP apply or solely for purposes of determining the adjusted funding target attainment percentage under § 436 of the Code for the plan year.

Bulletin No. 2022–18 1045 May 2, 2022

30-YEAR TREASURY SECURITIES INTEREST RATES

Section 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 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 8873, 1988-2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on

30-year Treasury securities for March 2022 is 2.41 percent. The Service determined this rate as the average of the daily determinations of yield on the 30year Treasury bond maturing in February 2052. For plan years beginning in April 2022, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rates used to calculate current liability are as follows:

Permissible Range

90% to 105%

Treasury Weighted Average Rates For Plan Years 30-Year Treasury

Beginning In

30-Year Treasury Weighted Average

April 2022 2.09 1.88 to 2.20

MINIMUM PRESENT VALUE SEGMENT RATES

In general, the applicable interest rates

under § 417(e)(3)(D) are segment rates 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 segment rates determined for March 2022 are as follows:

Minimum Present Value Segment Rates Month First Segment Second Segment Third Segment March 2022 2.44 3.71 3.94

DRAFTING INFORMATION

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

Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). However, other personnel from the IRS participated in the development

of this guidance. For further information regarding this notice, contact Mr. Morgan at 202-317-6700 or Osmundo Bernabe at 626-927-1344 (not toll-free numbers).

May 2, 2022 1046 Bulletin No. 2022–18

Table 2022-3 Monthly Yield Curve for March 2022

Derived from February 2022 Data

Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield 0.5 1.31 20.5 3.98 40.5 3.94 60.5 3.93 80.5 3.92 1.0 1.79 21.0 3.98 41.0 3.94 61.0 3.93 81.0 3.92 1.5 2.19 21.5 3.98 41.5 3.94 61.5 3.93 81.5 3.92 2.0 2.47 22.0 3.97 42.0 3.94 62.0 3.93 82.0 3.92 2.5 2.65 22.5 3.97 42.5 3.93 62.5 3.93 82.5 3.92 3.0 2.73 23.0 3.97 43.0 3.93 63.0 3.93 83.0 3.92 3.5 2.77 23.5 3.96 43.5 3.93 63.5 3.93 83.5 3.92 4.0 2.80 24.0 3.96 44.0 3.93 64.0 3.93 84.0 3.92 4.5 2.83 24.5 3.96 44.5 3.93 64.5 3.93 84.5 3.92 5.0 2.87 25.0 3.96 45.0 3.93 65.0 3.93 85.0 3.92 5.5 2.92 25.5 3.95 45.5 3.93 65.5 3.93 85.5 3.92 6.0 2.98 26.0 3.95 46.0 3.93 66.0 3.93 86.0 3.92 6.5 3.06 26.5 3.95 46.5 3.93 66.5 3.93 86.5 3.92 7.0 3.14 27.0 3.95 47.0 3.93 67.0 3.93 87.0 3.92 7.5 3.22 27.5 3.95 47.5 3.93 67.5 3.93 87.5 3.92 8.0 3.31 28.0 3.95 48.0 3.93 68.0 3.93 88.0 3.92 8.5 3.39 28.5 3.95 48.5 3.93 68.5 3.93 88.5 3.92 9.0 3.47 29.0 3.94 49.0 3.93 69.0 3.93 89.0 3.92 9.5 3.55 29.5 3.94 49.5 3.93 69.5 3.93 89.5 3.92 10.0 3.61 30.0 3.94 50.0 3.93 70.0 3.93 90.0 3.92 10.5 3.68 30.5 3.94 50.5 3.93 70.5 3.93 90.5 3.92 11.0 3.73 31.0 3.94 51.0 3.93 71.0 3.93 91.0 3.92 11.5 3.78 31.5 3.94 51.5 3.93 71.5 3.93 91.5 3.92 12.0 3.83 32.0 3.94 52.0 3.93 72.0 3.93 92.0 3.92 12.5 3.87 32.5 3.94 52.5 3.93 72.5 3.93 92.5 3.92 13.0 3.90 33.0 3.94 53.0 3.93 73.0 3.93 93.0 3.92 13.5 3.92 33.5 3.94 53.5 3.93 73.5 3.93 93.5 3.92 14.0 3.94 34.0 3.94 54.0 3.93 74.0 3.93 94.0 3.92 14.5 3.96 34.5 3.94 54.5 3.93 74.5 3.93 94.5 3.92 15.0 3.97 35.0 3.94 55.0 3.93 75.0 3.93 95.0 3.92 15.5 3.98 35.5 3.94 55.5 3.93 75.5 3.93 95.5 3.92 16.0 3.99 36.0 3.94 56.0 3.93 76.0 3.93 96.0 3.92 16.5 3.99 36.5 3.94 56.5 3.93 76.5 3.93 96.5 3.92 17.0 4.00 37.0 3.94 57.0 3.93 77.0 3.93 97.0 3.92 17.5 4.00 37.5 3.94 57.5 3.93 77.5 3.93 97.5 3.92 18.0 4.00 38.0 3.94 58.0 3.93 78.0 3.93 98.0 3.92 18.5 4.00 38.5 3.94 58.5 3.93 78.5 3.92 98.5 3.92 19.0 3.99 39.0 3.94 59.0 3.93 79.0 3.92 99.0 3.92 19.5 3.99 39.5 3.94 59.5 3.93 79.5 3.92 99.5 3.92 20.0 3.99 40.0 3.94 60.0 3.93 80.0 3.92 100.0 3.92

Bulletin No. 2022–18 1047 May 2, 2022

2021 Section 45K(d)(2)(C) Reference Price