GATT Interest Rates
GATT Interest Rates
Lump sum distribution calculations for large pension programs are often based on monthly interest rates. Our experienced and specialized Financial Advisors can help explain how changes in interest rates affect your pension, as well as your options and ways to help gain more control over your hard-earned assets. Contact a Lohnes Wealth Management Financial Advisor today to get started.
Updating GATT Rates
2025
- November - 4.89%
- December - 4.92%
2026
- January - 4.87%
- February - 4.74%
What is GATT Interest Rate?
The GATT (General Agreement on Tariffs and Trade, an international trade agreement) interest rate uses the 30-year Treasury rate, as determined daily by the financial markets. The GATT rate, with respect to a Computation Period, is based on the average annual yield on 30-year Treasury securities.
How does the GATT Rate Affect My Lump Sum?
As demonstrated in the chart above, when GATT rates are low, pension lump sums are generally higher, and vice versa. When GATT rates are low, personalized internal rate-of-return targets for your retirement portfolio may be more attainable.
How do interest rates affect lump sum pension?
How do Interest Rates Affect Lump Sum Pensions?
Interest rates have an inverse effect on lump sum pension payouts. When interest rates are higher, you can expect a lower lump sum, as this calculation discounts the potential value of what would be a stream of future payments.
How can a Lump Sum Give You More Control of your Assets?
Accepting a lump sum offer can give you greater control over your assets as you’ll have the freedom to manage your investments and drawdown strategies according to your needs and preferences. Even if interest rates are less than optimal, once you have your payout, you’ll be able to better control, preserve, and thus, predict your income streams.
Why does my Pension Go Down when Interest Rates Go Up?
GATT rates, in particular, are issued on a monthly basis. Due to an inverse relationship between interest rates and the pension lump sum you would receive, when these interest rates go down, the value of your pension lump sum goes up. The reverse is also true.
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