Federal Tax Day - Current, I.6, Current Plan Liability Rates Set for August 2026 (Notice 2026-51), (Aug 24, 2026)

For pension plan years beginning in August 2026, the IRS has released:

• the 30-year Treasury bond weighted average interest rate,

• the unadjusted segment rates,

• the adjusted rates, and

• the minimum present value segment rates.

Corporate Bond Rate

The three 24-month average corporate bond segment rates applicable for August 2026 (without adjustment for the 25-year average segment rate limits) are as follows:

• 4.35 for the first segment rate,

• 5.28 for the second, and

• 5.96 for the third.

August 2026 Adjustment Segment Rate

The August 2026 adjusted segment rates for plan years beginning in 2025 are:

• 4.75 for the first segment rate,

• 5.28 for the second, and

• 5.96 for the third.

The August 2026 adjusted segment rates for plan years beginning in 2026 are:

• 4.75 for the first segment rate,

• 5.25 for the second, and

• 5.96 for the third.

30-Year Treasury Weighted Average

For plan years beginning in August 2026, the 30-year Treasury weighted average securities rate is 4.59, with a permissible range of 4.13 to 4.82 under Code Sec. 431(c)(6)(E)(ii)(I). The rate of interest on 30-year Treasury securities for July 2026 is 5.10 percent.

The minimum present value segment rates under Code Sec. 417(e)(3)(D) for July 2026 are:

• 4.62 for the first segment rate,

• 5.62 for the second, and

• 6.51 for the third.

Notice 2026-51