Check current IRS pension plan funding segment rates

The IRS publishes monthly segment rates used to calculate minimum present values (lump sums) for defined benefit pensions under §417(e). For May 2026, the three spot segment rates are 4.42% (years 1-5), 5.47% (years 5-20), and 6.31% (years 20+). Higher rates produce smaller lump sums.

Source: Internal Revenue Service (IRS)articleApplies to: 2026

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Pension Benefit Estimation

A defined benefit pension pays a guaranteed monthly income for life, calculated as: Years of Service × Final Average Salary × Benefit Multiplier. A typical 2% multiplier over 30 years replaces 60% of your final salary. Only 14% of private sector workers still have access to a pension (2025), but 86% of public sector workers do.

Last reviewed: 2027-01-15 • Federal / General