Due to the recent U.S. government shutdown, the IRS announced limited operations on October 21, 2025. As part of these limited operations, the IRS has delayed the publication of certain monthly interest rates for retirement plans. This delay can affect plan participants and sponsors who rely on these rates.
Calculations affected
- Lump Sum Benefits: For defined benefit plans that provide lump sum benefits, payments are determined using IRS published interest rates. As of this writing, August 2025 rates were the most recent interest rates the IRS released. Therefore, retiring participants have already been affected if their defined benefit plan uses September 2025 interest rates to determine their lump sum amounts.
- Plan Contributions: IRS published interest rates are also used to calculate the minimum required contribution and the maximum deductible contribution. Sponsors of defined plans with valuation dates subsequent to the start of the shutdown may already have noticed delays in determining their funding range if their plan uses October 2025 interest rates for this purpose.
Lump sum payment of benefits and calculation of contribution amounts may continue to be delayed depending on the extent of the shutdown. If you are a plan sponsor wondering how this impacts your plan, reach out to your IAI consultant.
