Update from ASC Actuaries

IRS Releases MAP-21 Rates

Valerie Lopez By: Valerie M. Lopez, FSA, EA, MSPA

2013 Plan Year MAP-21 Rates Recently Released

Actuaries running minimum funding and AFTAP valuations for plan years starting in 2013 were rewarded for their patience as the MAP-21 rates for 2013 plan years were recently released. The 25-year average rates for the period ending September 30, 2012 are 5.81%, 7.23%, and 7.95% and were published in IRS Notice 2013-11. The 25-year average rates adjusted for the 85% – 115% corridor for the 2013 plan year result in segment rates of 4.94%, 6.15% and 6.76% . These rates are confirmed for the period September 2012 through February 2013. If the underlying 24-month average segment rates continue to remain low, it is likely that the 4.94%/6.15%/6.76% rates will apply for all 2013 plan year minimum required contribution calculations. No doubt, actuaries working with plan sponsors on 2013 AFTAPs are now fast at work. We are in the process of posting the rates to our segment rate download file. Until the MAP-21 lookup feature is available, users can manually enter the MAP-21 segment rates for plan years beginning in 2013.