Cash Balance Interest Credits: Rates Near Record Lows

The Federal Reserve has posted the November Treasury interest rates.  The 10 year constant maturity yield is 2.76%, which is near a record low.  This rate is the basis for many cash balance plan interest crediting rates.  Perhaps this low growth rate will inspire plan sponsors to change the interest credit index.  This is allowed under the recently issued hybrid plan regulations as discussed in a previous post.

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