# Notice 2023-5: Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

> Federal · IRS notices · In force

URL: https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_5

## Section

- **Citation:** Notice 2023-5
- **Heading:** Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
- **Jurisdiction:** Federal
- **Kind:** IRS notices
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Internal Revenue Bulletin / IRB 2023 / Notice / Notice 2023-5

## Text

Part III --- Administrative, Miscellaneous, and Procedural
Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

Notice 2023-5

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 30-year Treasury weighted average rate under
§ 431(c)(6)(E)(ii)(I).

YIELD CURVE AND SEGMENT RATES

Section 430 specifies the minimum funding requirements that apply to single-employer
plans (except for CSEC plans under § 414(y)) 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 November
2022 data is in Table 2022-11 at the end of this notice
7-81, 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 November
2022 data is in Table 2022-11 at the end of this notice. The spot first, second, and third segment
rates for the month of November 2022 are, respectively, 5.09, 5.60, and 5.41.

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, 2022 and 2023 were published in
Notice 2020-72, 2020-40 I.R.B. 789, Notice 2021-54, 2021-41 I.R.B. 457, and Notice 2022-40,
2022-40 I.R.B. 266, respectively.

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)).
2

24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES

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

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
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 December 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:

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%
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.
24-Month Average Segment Rates Without 25-Year Average Adjustment

Applicable Month
First Segment
Second Segment
Third Segment

December 2022
1.95
3.50
3.85
Adjusted 24-Month Average Segment Rates
For Plan Years

First
Second
Third
Beginning In
Applicable Month
Segment
Segment
Segment

2021
December 2022
4.75
5.36
6.11

2022
December 2022
4.75
5.18
5.92

2023
December 2022
4.75
5.00
5.74
3

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 December 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:

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
gment rates in accordance
with § 430(h)(2)(C)(iv) of the Code, are as follows:

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 88-73, 1988-2 C.B. 383,
provides guidelines for determining the weighted average interest rate. The rate of interest on
30-year Treasury securities for November 2022 is 3.99 percent. The Service determined this
rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing
in August 2052 determined each day through August 9, 2022 and the yield on the 30-year
Treasury bond maturing in November 2052 determined each day for the balance of the month.
For plan years beginning in December 2022, 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:

Treasury Weighted Average Rates

For Plan Years
30-Year Treasury
Permissible Range

Beginning In
Weighted Average
90% to 105%

December 2022
2.38
2.14 to 2.50
Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years

First
Second
Third
Beginning In
Applicable Month
Segment
Segment
Segment

2021
December 2022
3.32
4.79
5.47
4

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
December 2022
2.38
2.14 to 2.50
Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years

First
Second
Third
Beginning In
Applicable Month
Segment
Segment
Segment

2021
December 2022
3.32
4.79
5.47
4

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 November 2022 are as follows:

2022 are as follows:

DRAFTING INFORMATION

The principal author of this notice is Tom Morgan of the Office of 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 Tony Montanaro at 626-927-1475
not toll-free calls).

Minimum Present Value Segment Rates

Month
First Segment
Second Segment
Third Segment

November 2022
5.09
5.60
5.41
5

Table 2022-11

Monthly Yield Curve for November 2022
Derived from November 2022 Data
Maturity
Yiel
d

Maturity
Yiel
d

Maturity
Yiel
d

Maturity
Yiel
d

Maturity
Yiel
d
0.5
4.94
20.5
5.63
40.5
5.38
60.5
5.31
80.5
5.27
1.0
5.04
21.0
5.62
41.0
5.38
61.0
5.31
81.0
5.27
1.5
5.11
21.5
5.61
41.5
5.38
61.5
5.31
81.5
5.27
2.0
5.14

22.0
5.59

42.0
5.38

62.0
5.31

82.0
5.27
2.5
5.15

22.5
5.58

42.5
5.37

62.5
5.31

82.5
5.27
3.0
5.13

23.0
5.57

43.0
5.37

63.0
5.31

83.0
5.27
3.5
5.11
23.5
5.56
43.5
5.37
63.5
5.30
83.5
5.27
4.0
5.09
24.0
5.55
44.0
5.37
64.0
5.30
84.0
5.27
4.5
5.09

24.5
5.54

44.5
5.36

64.5
5.30

84.5
5.27
5.0
5.10

25.0
5.53

45.0
5.36

65.0
5.30

85.0
5.27
5.5
5.13
25.5
5.52
45.5
5.36
65
42.5
5.37

62.5
5.31

82.5
5.27
3.0
5.13

23.0
5.57

43.0
5.37

63.0
5.31

83.0
5.27
3.5
5.11
23.5
5.56
43.5
5.37
63.5
5.30
83.5
5.27
4.0
5.09
24.0
5.55
44.0
5.37
64.0
5.30
84.0
5.27
4.5
5.09

24.5
5.54

44.5
5.36

64.5
5.30

84.5
5.27
5.0
5.10

25.0
5.53

45.0
5.36

65.0
5.30

85.0
5.27
5.5
5.13
25.5
5.52
45.5
5.36
65.5
5.30
85.5
5.27
6.0
5.17

26.0
5.51

46.0
5.36

66.0
5.30

86.0
5.27
6.5
5.22
26.5
5.50
46.5
5.36
66.5
5.30
86.5
5.27
7.0
5.28

27.0
5.50

47.0
5.35

67.0
5.30

87.0
5.27
7.5
5.34

27.5
5.49

47.5
5.35

67.5
5.30

87.5
5.27
8.0
5.40

28.0
5.48

48.0
5.35

68.0
5.29

88.0
5.26
8.5
5.45

28.5
5.48

48.5
5.35

68.5
5.29

88.5
5.26
9.0
5.51

29.0
5.47

49.0
5.35

69.0
5.29

89.0
5.26
9.5
5.56

29.5
5.47

49.5
5.34

69.5
5.29

89.5
5.26
10.0
5.60
30.0
5.46
50.0
5.34
70.0
5.29
90.0
5.26
10.5
5.64

30.5
5.46

50.5
5.34

70.5
5.29

90.5
5.26
11.0
5.68

31.0
5.45

51.0
5.34

71.0
5.29

91.0
5.26
11.5
5.70
31.5
5.45
51.5
5.34
71.5
5.29
91.5
5.26
12.0
5.73

32.0
5.44

52.0
5.34

72.0
5.29

92.0
5.26
12.5
5.74

32.5
5.44

52.5
5.33

72.5
5.29

92.5
5.26
13.0
5.76
33.0
5.44
53.0
5.33
73.0
5.29
93.0
5.26
13.5
5.76
33.5
5.43
53.5
5.33
73.5
5.29
93.5
5.26
14.0
5.77
34.0
5.43
54.0
5.33
74.0
5.28
94.0
5.26
14.5
5.77
34.5
5.42
54.5
5.33
74.5
5.28
94.5
5.26
15.0
5.76
35.0
5.42
55.0
5.33
75.0
5.28
95.0
5.26
15.5
5.76
35.5
5.42
55.5
5.32
75.5
5.28
95.5
5.26
16.0
5.75
36.0
5.41
56.0
5.32
76.0
5.28
96.0
5.26
16.5
5.74
36.5
5.41
56.5
5.32
76.5
5.28
96.5
5.26
17.0
5.73
37.0
5.41
57.0
5.32
77.0
5.28
97.0
5.26
17.5
5.71

37.5
5.40

57.5
5.32

77.5
5.28

97.5
5.25
18.0
5.70

38.0
5.40

58.0
5.32

78.0
5.28

98.0
5.25
18.5
5.69
38.5
5.40
58.5
5.76
35.5
5.42
55.5
5.32
75.5
5.28
95.5
5.26
16.0
5.75
36.0
5.41
56.0
5.32
76.0
5.28
96.0
5.26
16.5
5.74
36.5
5.41
56.5
5.32
76.5
5.28
96.5
5.26
17.0
5.73
37.0
5.41
57.0
5.32
77.0
5.28
97.0
5.26
17.5
5.71

37.5
5.40

57.5
5.32

77.5
5.28

97.5
5.25
18.0
5.70

38.0
5.40

58.0
5.32

78.0
5.28

98.0
5.25
18.5
5.69
38.5
5.40
58.5
5.32
78.5
5.28
98.5
5.25
19.0
5.67
39.0
5.39
59.0
5.32
79.0
5.28
99.0
5.25
19.5
5.66
39.5
5.39
59.5
5.31
79.5
5.28
99.5
5.25
20.0
5.65
40.0
5.39
60.0
5.31
80.0
5.28
100.0
5.25

## Nearby sections

- [Notice 2023-1 Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_1.md)
- [Notice 2023-2 Initial Guidance Regarding the Application of the Excise Tax on Repurchases of Corporate Stock under Section 4501 of the Internal Revenue Code](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_2.md)
- [Notice 2023-3 2023 Standard Mileage Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_3.md)
- [Notice 2023-4 Administrative, Procedural, and Miscellaneous 26 CFR 54.9816-6T: Calculating the qualifying payment amounts in 2023](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_4.md)
- [Notice 2023-5 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_5.md)
- [Notice 2023-6 Sustainable Aviation Fuel Credit; Registration; Certificates; Request for Public Comments](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_6.md)
- [Notice 2023-7 Initial Guidance Regarding the Application of the Corporate Alternative Minimum Tax under Sections 55, 56A, and 59 of the Internal Revenue Code](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_7.md)
- [Notice 2023-8 Additional Guidance Related to Transfers of Publicly Traded Partnership Interests under Section 1446(f)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_8.md)
- [Notice 2023-9 Part III – Administrative, Procedural, and Miscellaneous Section 45W Commercial Clean Vehicles and Incremental Cost for 2023](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_9.md)
- [Notice 2023-11 Part III - Administrative, Procedural, and Miscellaneous Foreign Financial Institution Temporary U.S. Taxpayer Identification Number Relief](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_11.md)
- [Notice 2023-12 Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_12.md)
- [Notice 2023-16 Part III – Administrative, Procedural, and Miscellaneous Certain Definitions of Terms in Section 30D Clean Vehicle Credit](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_16.md)
- [Notice 2023-17 Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_17.md)
- [Notice 2023-18 Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation Program Under Section 48C(e)](https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_18.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IRS_NOTICE_2023_5. Check the current official text before relying on it. Not legal advice.