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Many companies use one of these monthly interest rates to calculate lump sum distributions from their pension plans. Many plans will automatically defer to the rate that will yield the highest payout. If you would like to know how changes in these rates can affect your pension distribution, please call our office.
2018-2019 GATT Rates
The GATT Rate is the 30-year Treasury Bond interest rate, and is used as a benchmark for calculations of lump sum distribution from defined benefit plans.
GATT stands for General Agreement on Tariffs and Trade. Decisions that fall under the GATT jurisdiction are made by the Council for Trade in Goods, which is made up of ten representatives from the WTO (World Trade Organization). The GATT's main goal is to ensure fair trading between the countries of the world. Some of the areas they cover are: agriculture, market access for goods, rules of origin, anti-dumping, plus a number more, and it is still growing. Anything the Council can think of to help the world will be implemented in the future.
The 30-year Treasury Bill is a loan against the U.S. Treasury. GATT regulates this sort of thing, since it affects the population of the entire globe. Pension plans are often paid out yearly, but there is the option to receive one lump sum. Since the pension plan in question would be based on the value of treasury bills, the GATT rules what the percentage will be on a lump sum.
Source of Rates: IRS Official GATT Rate Information Tables
2017 GATT Rates
2016 GATT Rates
2015 GATT Rates
2014 GATT Rates
2013 GATT Rates
2012 GATT Rates