Has anyone seen anything related to the RPA rates that will be applicable to 2006 now that PPA has passed?

Haven't seen anything yet, but I assume that the IRS still has this data. A point of formality maybe, but release may be tied to Bush formally signing the bill before actual release. (Best guess for Jan '06 PFEA upper CL limit - 5.75%?).

We definitely won't see anything before it is signed. Jim Holland states that the IRS is keenly aware of the need for official guidance on the CL rates. For now, we should give them the benefit of the doubt; remember that PFEA was signed on a Saturday, and the IRS issued guidance on Monday. Pretty good.

Are they waiting for a pig roast to sign it this time?

From the White House website, 08/04/06,
"I look forward to signing this important legislation into law soon."

Hmm, soon means in the near future. Since he started 10 day vacation on August 3 guess he won't get to it till he gets back to Washington. That means some time next week.

Geez, Janet, be patient. Imporant things must be done first. Today's briefing:

Press Gaggle by Tony Snow
Crawford Middle School
Crawford, Texas

12:07 P.M. CDT

MR. SNOW: All right, welcome. Let me just start with a couple of little items of business here, and then we'll go to questions. Those of you who are eating, you may proceed through the line and shout out whatever you want.

First, the Department of Commerce has released the latest numbers on wages. Productivity growth continues to be strong. It's 2.4 percent over the past four quarters. Hourly compensation is averaging 5.7 percent over the last four quarters.

Today the President got up, had his normal intelligence briefing. He also had briefings from the National Security Advisor and the Homeland Security Advisor. And I believe they're working on a dock today. There will also be other adventures in the afternoon.

Questions.

Q They're working on a dock?

MR. SNOW: They're working on a dock.

Q They have a lake?

MR. SNOW: I believe that there is no waterway directly to the ocean, so I think a lake or a pond would be a more likely option. (Laughter.)

AndyH I chucked at the ending too. You are right, very important stuff going on in Crawford today. Note I fixed date in previous post.

Q What about this afternoon? You said there will be something more this afternoon?

MR. SNOW: I believe there will be hundred degree club activities later in the afternoon.

Q I see, not some presidential appearance that we're going to be summoned to?

MR. SNOW: Not that I'm aware of.

Q Will you report back to us --

MR. SNOW: If you are summoned, we will make sure that you are duly informed.

Q We'll expect a full report on the hundred degree club.

Sources in my office tell me the President will sign the PPA Bill on Thursday August 17th.

Since the PBGC has published 85% of the Corp. bond rate, into 2006 for 4010 filings, you should be able to divide these rates by .85 and get a very good idea what the RPA rate will be.

Jan 06 RPA rate s/b 5.72%

PBGC 4010 rates

We did an independent calculation of the Corp bond rate and got 5.72% for the month, and 5.77% for the weighted average.

The summary of the PPA prepared by ASPPA seems to imply that the extension of the PFEA rates also extends tha "grandfathering" of the 30-year T-rates> Does anyone else see it that way?

IRS and PBGC verbally confirmed to me (earlier this year) the 5.72% Corp. bond rate for December 2005, after PBGC had published that 85% of the Corp. bond rate was 4.86%. That results in an RPA permissible range for January 2006 of 5.19% - 5.77% .

AndyH and JanetM, just an FYI, according to the tracking notes for H.R. 4:

http://www.govtrack.us/congress/bill.xpd?bill=h109-4

Aug 14, 2006 - Bill Action
H.R. 4: Pension Protection Act of 2006
Sent to President. To provide economic security for all Americans, and for other purposes.

Presented for signature 5 days after your posts. Just an fyi.

FYI, President has signed PPA into law at 1:19 ET today.

I am looking forward to seeing IRS and PBGC officially update their interest rate tables on their web sites by the end of day tomorrow. Too optimistic ?

Geez, could this timing have something to do with the fact that he returned from vacation 5 days after our posts? This was in fact sat on for 2 weeks, which I and many of my clients think is outrageous.

Updated composite corporate bond rates:
http://www.irs.gov/retirement/article/0,,id=123229,00.html

http://www.irs.gov/pub/irs-drop/n-06-75.pdf

PBGC has also provided the revised premium interest rates:

Revised premium rates

So you like getting mad at the pres... but what does the two weeks matter? Can you tell us what harm you encountered to offset the glee you gain for your cheap shot?

Moe/Moe2??

I think you can figure out how additional time before 9/15 and 10/15 might be helpful with plans subject to 412(l), accountant's opinions, quarterly contributions, top 25 restrictions, and PBGC premiums without me laying out all the details for you.

Or did you tell everybody that the pre-PPA rates were in effect?

I did not wait. When the pres stated on August 4 that he intended to sign it, why should anyone wait?

Well, let's see. When did the IRS issue the 2006 rates? The PBGC? What might they have been waiting for?

The 4010 rates published by the PBGC followed the PFEA rules and were a clear example
of where the PBGC would go for variable premiums after passage.

But it does not matter now, since we have the new rates.