### Question
How is the term applicable interest rate defined?


### Answer
The term **applicable interest rate** is defined in *29 U.S.C. § 1055* as the following:

> the adjusted first, second, and third segment rates applied under rules similar to the rules of section 1083(h)(2)(C) of this title for the month before the date of the distribution or such other time as the Secretary of the Treasury may by regulations prescribe

#### Citation:
  - *29 U.S.C. § 1055*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 2-participation and vesting**

