The Moving Ahead for Progress in the 21st Century Act (“MAP-21”), signed by President Obama on July 6, made significant changes to defined benefit plan funding requirements. Beginning with 2012 plan years, the legislation increases “segment” interest rates for purposes of calculating minimum required contributions and creates a year-long window period in which plan sponsors may switch from using the full yield curve to using segment rates without obtaining IRS approval. These changes are expected to significantly reduce minimum required contributions to defined benefit plans in the short term. MAP-21 also sharply increases flat- and variable-rate PBGC premiums. A detailed description of MAP-21’s defined benefit plan funding and PBGC premium provisions will be included in the August edition of the Compensation and Benefits Insights.