Proposed Rule2022-06330
Mortality Tables for Determining Present Value Under Defined Benefit Pension Plans
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Published
April 28, 2022
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document sets forth proposed regulations prescribing mortality tables to be used for most defined benefit pension plans. The tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. The tables are used (together with other actuarial assumptions) to calculate the present value of a stream of expected future benefit payments for purposes of determining the minimum funding requirements for the plan. These mortality tables are also relevant for determining the minimum required amount of a lump-sum distribution from such a plan. These regulations affect participants in, beneficiaries of, employers maintaining, and administrators of certain defined benefit pension plans.
Full Text
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<title>Federal Register, Volume 87 Issue 82 (Thursday, April 28, 2022)</title>
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[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Proposed Rules]
[Pages 25161-25170]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06330]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-106384-20]
RIN 1545-BQ14
Mortality Tables for Determining Present Value Under Defined
Benefit Pension Plans
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking and notice of public hearing.
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SUMMARY: This document sets forth proposed regulations prescribing
mortality tables to be used for most defined benefit pension plans. The
tables specify the probability of survival year-by-year for an
individual based on age, gender, and other factors. The tables are used
(together with other actuarial assumptions) to calculate the present
value of a stream of expected future benefit payments for purposes of
determining the minimum funding requirements for the plan. These
mortality tables are also relevant for determining the minimum required
amount of a lump-sum distribution from such a plan. These regulations
affect participants in, beneficiaries of, employers maintaining, and
administrators of certain defined benefit pension plans.
DATES: Written or electronic comments must be received by June 9, 2022.
A public hearing on these proposed regulations has been scheduled for
June 28, 2022 at 10 a.m. EST. Requests to speak and outlines of topics
to be discussed at the public hearing must be received by June 9, 2022.
If no outlines are received by June 9, 2022, the public hearing will be
cancelled. Requests to attend the public hearing must be received by 5
p.m. EST on June 24, 2022. The telephonic hearing will be made
accessible to people with disabilities. Requests for special assistance
during the telephonic hearing must be received by June 23, 2022.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically. Submit electronic submissions via the Federal
eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> (indicate IRS and REG-106384-
20) by following the online instructions for submitting comments. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn. The IRS expects to have limited personnel available to
process public comments that are submitted on paper through mail. Until
further notice, any comments submitted on paper will be considered to
the extent practicable. The Department of the Treasury (the Treasury
Department) and the IRS will publish for public availability any
comment submitted electronically, and to the extent practicable on
paper, to its public docket. Send paper submissions to: CC:PA:LPD:PR
(REG-106384-20), room 5203, Internal Revenue Service, P.O. Box 7604,
Ben Franklin Station, Washington, DC 20044.
For those requesting to speak during the hearing, send an outline
of topic submissions electronically via the Federal eRulemaking Portal
at <a href="http://www.regulations.gov">www.regulations.gov</a> (indicate IRS and REG-106384-20).
Individuals who want to testify (by telephone) at the public
hearing must send an email to <a href="/cdn-cgi/l/email-protection#710104131d181219141003181f1602311803025f161e07"><span class="__cf_email__" data-cfemail="6a1a1f08060309020f0b1803040d192a031819440d051c">[email protected]</span></a> to receive the
telephone number and access code for the hearing. The subject line of
the email must contain the regulation number REG-106384-20 and the word
TESTIFY. For example, the subject line may say: Request to TESTIFY at
Hearing for REG-106384-20. The email should include a copy of the
speaker's public comments and outline of topics. Individuals who want
to attend (by telephone) the public hearing must also send an email to
<a href="/cdn-cgi/l/email-protection#d5a5a0b7b9bcb6bdb0b4a7bcbbb2a695bca7a6fbb2baa3"><span class="__cf_email__" data-cfemail="29595c4b45404a414c485b40474e5a69405b5a074e465f">[email protected]</span></a> to receive the telephone number and access code
for the hearing. The subject line of the email must contain the
regulation number REG-106384-20 and the word ATTEND. For example, the
subject line may say: Request to ATTEND Hearing for REG-106384-20. To
request special assistance during the telephonic hearing contact the
Publications and Regulations Branch of the Office of Associate Chief
Counsel (Procedure and Administration) by sending an email to
<a href="/cdn-cgi/l/email-protection#ccbcb9aea0a5afa4a9adbea5a2abbf8ca5bebfe2aba3ba"><span class="__cf_email__" data-cfemail="cfbfbaada3a6aca7aaaebda6a1a8bc8fa6bdbce1a8a0b9">[email protected]</span></a> (preferred) or by telephone at (202) 317-5177
(not a toll-free number).
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Arslan
Malik or Linda Marshall at (202) 317-6700; concerning submission of
comments and outlines of topics for the public hearing, call Regina
Johnson at (202) 317-6901 (not toll-free numbers) or email
<a href="/cdn-cgi/l/email-protection#fd8d889f91949e95989c8f94939a8ebd948f8ed39a928b"><span class="__cf_email__" data-cfemail="b0c0c5d2dcd9d3d8d5d1c2d9ded7c3f0d9c2c39ed7dfc6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Section 412 of the Internal Revenue Code (Code) prescribes minimum
funding requirements for defined benefit pension plans, and section 430
specifies the minimum funding requirements that apply generally to
defined benefit plans that are not multiemployer plans.\1\ Section
430(a) defines the minimum required contribution by reference to the
plan's funding target for the plan year. Under section 430(d)(1), a
plan's funding target for a plan year generally is the present value of
all benefits accrued or earned under the plan as of the first day of
that plan year.
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\1\ Section 302 of the Employee Retirement Income Security Act
of 1974, Public Law 93-406, as amended (ERISA) sets forth funding
rules that are parallel to those in section 412 of the Code, and
section 303 of ERISA sets forth additional funding rules for defined
benefit plans (other than multiemployer plans) that are parallel to
those in section 430 of the Code. Pursuant to section 101 of
Reorganization Plan No. 4 of 1978, 5 U.S.C. App., as amended, the
Secretary of the Treasury has interpretive jurisdiction over the
subject matter addressed in these proposed regulations for purposes
of ERISA, as well as the Code. Thus, these proposed Treasury
regulations issued under section 430 of the Code also apply for
purposes of section 303 of ERISA.
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Section 430(h)(3) provides rules regarding the mortality tables to
be used under section 430. Under section 430(h)(3)(A), except as
provided in section 430(h)(3)(C) or (D), the Secretary is to prescribe
by regulation mortality tables to be used in determining any
[[Page 25162]]
present value or making any computation under section 430. Those
mortality tables are to be based on the actual mortality experience of
pension plan participants and projected trends in that experience. In
prescribing those mortality tables, the Secretary is required to take
into account results of available independent studies of mortality of
individuals covered by pension plans. Under section 430(h)(3)(B), the
Secretary is required to revise any mortality table in effect under
section 430(h)(3)(A) at least every 10 years to reflect actual
mortality experience of pension plan participants and projected trends
in that experience. Under section 430(h)(3)(C), a plan sponsor is
permitted to request the Secretary's approval to use plan-specific
substitute mortality tables that meet requirements specified in the
statute rather than the generally applicable mortality tables. If
approved, these substitute mortality tables are used to determine
present values and make computations under section 430 during the
period of consecutive plan years (not to exceed 10) specified in the
request.
Section 430(h)(3)(D) provides for the use of separate mortality
tables with respect to certain individuals who are entitled to benefits
on account of disability. These separate mortality tables are permitted
to be used with respect to disabled individuals in lieu of the
generally applicable mortality tables provided pursuant to section
430(h)(3)(A) or the substitute mortality tables under section
430(h)(3)(C). The Secretary is to establish separate tables for
individuals with disabilities occurring in plan years beginning before
January 1, 1995, and for individuals with disabilities occurring in
later plan years, with the mortality tables for individuals with
disabilities occurring in those later plan years applying only to
individuals who are disabled within the meaning of Title II of the
Social Security Act.
Section 417(e)(3) generally provides that the present value of
certain benefits under a qualified pension plan (including single-sum
distributions) must not be less than the present value of the accrued
benefit using applicable interest rates and the applicable mortality
table. Section 417(e)(3)(B) defines the term ``applicable mortality
table'' as the mortality table specified for the plan year for minimum
funding purposes under section 430(h)(3)(A) (without regard to the
rules for substitute mortality tables under section 430(h)(3)(C) or
mortality tables for disabled individuals under section 430(h)(3)(D)),
modified as appropriate by the Secretary. The modifications made by the
Secretary to the section 430(h)(3)(A) mortality table to determine the
section 417(e)(3)(B) applicable mortality table are not addressed in
these proposed regulations. Revenue Ruling 2007-67, 2007-2 CB 1047,
describes the modifications that are currently applied to determine the
section 417(e)(3)(B) applicable mortality table.
Final regulations under section 430(h)(3) were published in the
Federal Register on October 5, 2017 in TD 9826, 82 FR 46388 (the 2017
regulations). Section 1.430(h)(3)-1 prescribes base mortality tables
and a set of mortality improvement rates, which may be reflected
through the use of either generational mortality tables or static
mortality tables. The generational mortality tables are a series of
mortality tables, one for each year of birth, each of which fully
reflects projected trends in mortality rates. The static mortality
tables (which are updated annually \2\) use a single mortality table
for all years of birth to approximate the present value that would be
determined using the generational mortality tables.
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\2\ Static mortality tables were published in Notice 2017-60,
2017-43 IRB 365, Notice 2018-02, 2018-2 IRB 281, Notice 2019-26,
2019-15 IRB 943, Notice 2019-67, 2019-52 IRB 1510, and Notice 2020-
85, 2020-51 IRB 1645.
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The mortality tables included in the 2017 regulations are based on
the mortality tables included in the RP-2014 Mortality Tables Report
\3\ (referred to in this preamble as the RP-2014 mortality tables),
which was released by the Retirement Plan Experience Committee (RPEC)
of the Society of Actuaries (SOA) in October 2014 (as revised in
November 2014), and a set of mortality improvement rates (the Scale MP-
2016 rates) as released by RPEC.\4\ In 2016, RPEC initiated a study of
private-sector retirement plans in the U.S. in order to provide an
update to RP-2014, and in 2019, RPEC issued the Pri-2012 Private
Retirement Plans Mortality Tables Report (Pri-2012 Report).\5\
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\3\ This report is available at <a href="https://www.soa.org/globalassets/assets/files/research/exp-study/research-2014-rp-report.pdf">https://www.soa.org/globalassets/assets/files/research/exp-study/research-2014-rp-report.pdf</a>.
\4\ This report is available at <a href="https://www.soa.org/globalassets/assets/Files/Research/Exp-Study/mortality-improvement-scale-mp-2016.pdf">https://www.soa.org/globalassets/assets/Files/Research/Exp-Study/mortality-improvement-scale-mp-2016.pdf</a>.
\5\ This report is available at <a href="https://www.soa.org/globalassets/assets/files/resources/experience-studies/2019/pri-2012-mortality-tables-report.pdf">https://www.soa.org/globalassets/assets/files/resources/experience-studies/2019/pri-2012-mortality-tables-report.pdf</a>.
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In Notice 2019-67 (which provides mortality improvement rates and
static mortality tables for 2021), the Treasury Department and the IRS
asked for comments regarding future mortality tables under section
430(h)(3)(A). The notice identified the mortality tables in the Pri-
2012 Report as a potential source for developing updated mortality
tables under section 430(h)(3)(A) and requested comments regarding (1)
whether there are other studies of actual mortality experience of
individuals covered by pension plans and projected trends in that
experience that should be considered for use in developing updated
mortality tables under section 430(h)(3)(A), such as studies that
examine the mortality experience of individuals covered by large
public-sector pension plans, and (2) if the mortality tables in the
Pri-2012 Report were to be used to develop updated mortality tables
under section 430(h)(3)(A), which of the tables in that report should
be used. In October 2021, RPEC published the Mortality Improvement
Scale MP-2021 Report (MP-2021 Report), which is the latest update to
its study on mortality improvement.\6\ In response to the request for
comments in Notice 2019-67, the Treasury Department and the IRS
received seven comments. The comments are discussed in the Explanation
of Provisions.
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\6\ This report is available at <a href="https://www.soa.org/globalassets/assets/files/resources/experience-studies/2021/2021-mp-scale-report.pdf">https://www.soa.org/globalassets/assets/files/resources/experience-studies/2021/2021-mp-scale-report.pdf</a>.
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The standards prescribed for developing the mortality tables under
430(h)(3)(A) are the same as the standards that are prescribed for
developing mortality tables for multiemployer plans under section
431(c)(6)(D)(iv)(II) (which are used to determine current liability in
order to determine the minimum full funding limitation under section
431(c)(6)(B)). See Sec. 1.431(c)(6)-1 (providing that the same
mortality assumptions that apply for purposes of section 430(h)(3)(A)
and Sec. 1.430(h)(3)-1(a) are used to determine a multiemployer plan's
current liability). These standards also apply for CSEC plans described
in section 414(y) for purposes of developing mortality tables that are
used for purposes of section 433(h)(3)(B)(i) (to determine current
liability in order to determine the minimum full funding limitation
under section 433(c)(2)(C) and the funded current liability percentage
under section 433(i)). See Sec. 1.433(h)(3)-1 (providing that the same
mortality assumptions that apply for purposes of section 430(h)(3)(A)
and Sec. 1.430(h)(3)-1(a) are used to determine a CSEC plan's current
liability).
Explanation of Provisions
These proposed regulations set forth the methodology that the
Treasury Department and the IRS intend to use to update the generally
applicable mortality tables that are used to
[[Page 25163]]
determine present value or make any computation under section 430.
Pursuant to section 417(e)(3)(B), a modified version of these updated
tables would be used for purposes of determining the amount of a
single-sum distribution (or another accelerated form of distribution).
In addition, these tables would be used to determine current liability
for multiemployer plans under section 431(c)(6) and CSEC plans under
section 433(h).
The methodology for developing updated tables under section
430(h)(3)(A) is being proposed pursuant to the requirement under
section 430(h)(3)(B) to revise the mortality tables used under section
430 to reflect the actual mortality experience of pension plan
participants and projected trends in that experience. As under the 2017
regulations, the methodology involves the separate determination of
base mortality tables and the projection of mortality improvement.
A. Base Mortality Tables
The base mortality tables proposed for use under section
430(h)(3)(A) are derived from the tables set forth in the Pri-2012
Report. After reviewing the Pri-2012 Report and comments received in
response to Notice 2019-67, the Treasury Department and the IRS have
determined that the experience study used to develop the Pri-2012
Report is the best available study of the actual mortality experience
of pension plan participants (other than disabled individuals).
Accordingly, the mortality tables in the Pri-2012 Report are the
foundation for the base mortality tables used to project the mortality
of pension plan participants under these proposed regulations. Like the
mortality tables provided in the 2017 regulations, the mortality tables
set forth in these proposed regulations are gender-distinct and provide
separate non-annuitant and annuitant mortality rates.
Unlike the Pri-2012 Report, these proposed regulations do not
provide separate tables for annuitants who are retirees and annuitants
who are contingent beneficiaries. In response to the request for
comments in Notice 2019-67, most commenters recommended against the use
of separate mortality tables for retirees and contingent beneficiaries
because: (1) Those separate mortality tables are complex to apply on an
exact basis; (2) applying those mortality tables would require
actuaries to use historical data that may be difficult to obtain; and
(3) the use of those separate mortality tables would not have a
significant effect in measuring a plan's liabilities. After reviewing
the comments, the Treasury Department and the IRS concluded that the
regulations should not provide separate mortality tables for annuitants
who are retirees and annuitant who are contingent beneficiaries.
Accordingly, these proposed regulations provide annuitant mortality
tables that combine the mortality experience of retirees and contingent
beneficiaries.
As under the 2017 regulations, these proposed regulations provide
that the annuitant mortality tables are applied to determine the
present value of benefits for an annuitant. For a non-annuitant, the
non-annuitant mortality tables are applied for the periods before the
participant is projected to commence receiving benefits, and the
annuitant mortality tables are used for later periods. With respect to
a beneficiary of a participant, the annuitant mortality tables apply
for the period beginning with each assumed commencement of benefits for
the participant. If the participant has died (or to the extent the
participant is assumed to die before commencing benefits), the
annuitant mortality tables apply with respect to the beneficiary for
the period beginning with each assumed commencement of benefits for the
beneficiary.
These proposed regulations set forth base tables that are to be
used to develop the mortality tables for future years. These base
tables have a base year of 2012 (the central year of the experience
study used to develop the mortality tables in the Pri-2012 Report).
These base tables generally have the same mortality rates as the
employee and non-disabled annuitant mortality rates that were released
by RPEC in connection with the Pri-2012 Report. However, these base
tables also include non-annuitant mortality rates for ages below age 18
and above age 80 and annuitant mortality rates for ages below age 50.
This generally is the same approach that was used to develop the base
mortality tables in the 2017 regulations.
The non-annuitant mortality rates for ages above age 80 were
developed by (1) using the annuitant rates from the base mortality
tables for ages 90 and older, and (2) interpolating between the rates
for age 80 and age 90 in order to produce a smooth transition between
the age 80 rates from the non-annuitant tables to the age 90 rates from
the annuitant tables. The interpolation uses increasing fractions with
a denominator of 55 to allocate the total difference between the rates
at ages 80 and 90 over those 10 years. Thus, the rate at age 81 is set
equal to the rate at age 80 plus 1/55 of the total difference, the age
82 rate is equal to the rate at age 81 plus 2/55 of the total
difference (so that the age 82 rate is equal to the rate at age 80 plus
3/55 of the total difference), and so on for other ages.
A similar approach was used to develop annuitant rates for ages
below age 50 for males and 52 for females. The annuitant rates for ages
under age 50 for males and 52 for females were determined by (1) using
the non-annuitant rates from the base mortality tables for ages 18 to
40, and (2) interpolating between the rates for age 40 and a later age,
using the same methodology described in the preceding paragraph. The
later age for males was 50 and for females was 52 (requiring that a
denominator of 78 be substituted for 55 when that methodology was
applied for females). This method produces a smooth transition between
the age 40 rates from the non-annuitant tables and the age 50 rates for
males, and age 52 rates for females, from the annuitant tables. In
addition, some anomalous rates for female annuitants at ages 55 and 56
in the Pri-2012 Report were smoothed by using a straight linear
interpolation between the age 54 rates and the age 57 rates from the
female annuitant table. For ages below age 18, both the non-annuitant
and annuitant rates incorporate the juvenile rates from the Pri-2012
Report.
B. Mortality Improvement
These proposed regulations use the Scale MP-2021 Rates (the
mortality improvement scale in the MP-2021 Report) for valuation dates
in the 2023 calendar year. This mortality improvement scale was
developed using the same underlying methodology used to develop earlier
mortality improvement scales but reflects historical population data
through 2019 and the change to the RPEC-selected assumptions for the
long-term rate of mortality improvement that was first incorporated in
the Mortality Improvement Scale MP-2020 Report.\7\ The Treasury
Department and the IRS understand that RPEC expects to issue updated
mortality improvement rates that reflect new data for mortality
improvement trends for the general population on an annual basis. The
Treasury Department and the IRS expect to take those updates into
account in determining the mortality rates to be used under section
430(h)(3) for valuation dates in years after 2023. Those rates will be
specified in guidance to be published in the Internal Revenue Bulletin.
See Sec. 601.601(d).
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\7\ This report is available at <a href="https://www.soa.org/globalassets/assets/files/resources/experience-studies/2020/mortality-improvement-scale-mp-2020.pdf">https://www.soa.org/globalassets/assets/files/resources/experience-studies/2020/mortality-improvement-scale-mp-2020.pdf</a>.
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[[Page 25164]]
C. Use of Static Tables for Small Plans
The 2017 regulations provide for the use of separate generational
non-annuitant and annuitant mortality tables and separate static non-
annuitant and annuitant mortality tables. The preamble to those
regulations explains that static mortality tables are permitted to be
used (notwithstanding that generational mortality tables yield more
accurate results) because of the limitations of some current actuarial
software that is not designed to use generational tables. Since the
issuance of the 2017 regulations, the software needed to use
generational mortality tables has become widely used and is often used
for other business needs such as financial accounting. There is no
longer a need to allow the use of static mortality tables for most
plans because most actuarial firms have the capability to use
generational mortality tables. Requiring most employers to use
generational mortality tables also minimizes anti-selection by plan
sponsors who determine that the use of static mortality tables results
in lower minimum funding requirements. Accordingly, these proposed
regulations eliminate the use of separate static non-annuitant and
annuitant mortality tables and require the use of generational
mortality tables for plans that are not considered small plans.
These proposed regulations continue to allow the use of static
mortality tables for small plans (defined as plans with 500 or fewer
participants), as well as for multiemployer and CSEC plans. However,
the static mortality tables that may be used for these plans are
combined tables reflecting non-annuitant and annuitant mortality rates.
These tables are constructed from a blend of non-annuitant and
annuitant mortality rates based on the underlying data used in
developing the Pri-2012 Report.
Applicability Date
These regulations are proposed to apply to plan years beginning on
or after January 1, 2023.
Other Matters
A. Effect of Regulations on Previously Approved Substitute Mortality
Tables
The 2017 regulations also included rules regarding the use of plan-
specific mortality tables under section 430(h)(3)(C), which are set
forth in Sec. 1.430(h)(3)-2.\8\ Section 1.430(h)(3)-2(c)(6)(ii)
provides for the early termination of the use of substitute mortality
tables in certain circumstances, including pursuant to a replacement of
the mortality tables specified in Sec. 1.430(h)(3)-1. Under Sec.
1.430(h)(3)-2(c)(6)(ii)(E), the early termination pursuant to such a
replacement must be effective as of a date specified in guidance
published in the Internal Revenue Bulletin. Except as described in the
next paragraph, the Treasury Department and the IRS do not intend to
require the early termination of previously approved substitute
mortality tables in connection with the proposed replacement of the
generally applicable mortality tables.
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\8\ Rev. Proc. 2017-55, 2017-43 IRB 373, sets forth the
procedure by which a plan sponsor of a defined benefit plan may
request and obtain approval for the use of plan-specific substitute
mortality tables in accordance with section 430(h)(3)(C).
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Under Sec. 1.430(h)(3)-2(c)(6)(ii)(C), the use of substitute
mortality tables is terminated early if there is a significant change
in the individuals covered by the plan. As defined in Sec.
1.430(h)(3)-2(c)(6)(iii)(A), a significant change is either an increase
or decrease in the number of individuals covered by the substitute
mortality table for the plan year of more than 20 percent of the
average number of individuals in that population over the years covered
by the experience study on which the substitute mortality tables are
based. However, under Sec. 1.430(h)(3)-2(c)(6)(iii)(A), a change in
coverage is not treated as significant if the plan's actuary certifies
in writing to the satisfaction of the Commissioner that the substitute
mortality tables used for the plan population continue to be accurately
predictive of future mortality of that population (taking into account
the effect of the change in the population).
When final regulations providing for the replacement of mortality
tables under section 430 are issued, the Treasury Department and the
IRS anticipate issuing guidance in the Internal Revenue Bulletin
pursuant to Sec. 1.430(h)(3)-2(c)(6)(ii)(E) that will require the
early termination of a plan's previously approved substitute mortality
table only if the plan has experienced a significant change in coverage
under Sec. 1.430(h)(3)-2(c)(6)(iii). The early termination would apply
without regard to any plan actuary certification that the substitute
mortality tables used for the plan population continue to be accurately
predictive of future mortality of that population.
B. Impact of COVID-19 on Mortality Rates
The mortality improvement rates in these proposed regulations are
based on the MP-2021 Report, which was prepared in 2021 based on the
most recent data available at that time (estimated 2019 calendar year
data). Accordingly, the MP-2021 mortality improvement scale does not
take into account any mortality experience in calendar years 2020 and
2021, which are the first years affected by the COVID-19 pandemic. In
selecting their assumed long-term improvement rates, RPEC did not make
any adjustments to take into account any effects of COVID-19 on
mortality rates in the long term because there was no consensus on
COVID-19's effect on expected future mortality experience.\9\
Accordingly, the mortality improvement rates in these regulations do
not take into account the impact of the COVID-19 pandemic.
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\9\ RPEC cited uncertainty relating to the effectiveness of
vaccines and treatments, severity of future variants, and the long-
term effect of having recovered from COVID-19 on an employee's
health.
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The MP-2021 Report includes a review of actual mortality data from
2020 and a portion of 2021. For the 40-week period starting March 22,
2020, the review indicated that the number of deaths was approximately
120 percent of the expected number. For 2021, that ratio dropped to 110
percent in the spring, before increasing in the summer. The number of
deaths attributable to the COVID-19 pandemic has remained high during
the early part of 2022. These higher mortality rates do not indicate
that the MP-2021 mortality improvement scale is flawed, but merely
reflect that the model did not anticipate COVID-19 in projecting the
mortality rates for these years.
The mortality rates provided in these proposed regulations would
apply starting in 2023. If the impact of COVID-19 on mortality
experience is viewed as only a short-term phenomenon, the mere fact
that the model in the MP-2021 Report (upon which these proposed
regulations are based) did not reflect the actual mortality experience
for 2020 through 2022 does not mean that the mortality rates in these
proposed regulations are inappropriate because it is not clear to what
extent the increased mortality associated with COVID-19 will continue
for 2023 and later years. However, to the extent there is a long-term
higher mortality rate from COVID-19, the Treasury Department and the
IRS expect that RPEC will reflect the long-term impact of COVID-19 in
future mortality improvement scales, which could be specified for use
in future guidance. The Treasury Department and the IRS request
comments about how the data for periods in which mortality experience
for plan participants has been significantly affected by the COVID-19
pandemic should be taken
[[Page 25165]]
into account in future mortality improvement rates under these
regulations and future base mortality tables.
These proposed regulations do not change any of the rules or
procedures required for employers to request substitute mortality
tables. The Treasury Department and the IRS request comments about
whether the rules and procedures relating to development of substitute
mortality tables should be modified to recognize the potential that the
mortality experience for the period of the COVID-19 pandemic is not
accurately predictive of the future mortality experience for
participants of a plan for which substitute mortality tables are
requested.
Incorporation by Reference
Section 1.430(h)(3)-1(b)(1)(iii) of the proposed regulations
provides that the mortality improvement rates used to construct
generational tables to be used for valuation dates occurring during
2023 are the Scale MP-2021 Rates, which are included in the Mortality
Improvement Scale MP-2021 Report. The Office of the Federal Register
(OFR) has regulations concerning incorporation by reference. 1 CFR part
51. These regulations require that agencies must discuss in the
preamble to a rule or proposed rule the way in which materials that the
agency incorporates by reference are reasonably available to interested
persons, and how interested parties can obtain the materials. 1 CFR
51.5(b).
The Scale MP-2021 Rates and the Mortality Improvement Scale MP-2021
Report are described in this preamble under the heading ``B. Mortality
Improvement'' in the Explanation of Provisions section of this
preamble. The Mortality Improvement Scale MP-2021 Report was issued by
the Retirement Plans Experience Committee of the Society of Actuaries
on October 27, 2021, and is available at <a href="https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021">https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021</a>.
Statement of Availability of IRS Documents
IRS Revenue Rulings, Revenue Procedures, and Notices cited in this
document are published in the Internal Revenue Bulletin (or Cumulative
Bulletin) and are available from the Superintendent of Documents, U.S.
Government Printing Office, Washington, DC 20402, or by visiting the
IRS website at <a href="http://www.irs.gov">www.irs.gov</a>.
Special Analyses
These regulations are not subject to review under section 6(b) of
Executive Order 12866 pursuant to the Memorandum of Agreement (April
11, 2018) between the Treasury Department and the Office of Management
and Budget regarding review of tax regulations.
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it
is hereby certified that the regulations will not have a significant
economic impact on a substantial number of small entities. The only
provision that increases regulatory burden is Sec. 1.430(h)(3)-1(b),
which generally requires the use of generational mortality tables.
However, under Sec. 1.430(h)(3)-1(c), small entities are not required
to use generational mortality tables. Therefore, the proposed rule
would not have a significant economic impact on a substantial number of
small entities.
Pursuant to section 7805(f) of the Code, these proposed regulations
will be submitted to the Chief Counsel for Advocacy of the Small
Business Administration for comment on their impact on small business.
Comments and Public Hearing
Before these proposed amendments to the regulations are adopted as
final regulations, consideration will be given to comments that are
submitted timely to the IRS as prescribed in the preamble under the
ADDRESSES section. The Treasury Department and the IRS request comments
on all aspects of these proposed regulations.
A public hearing is being held by teleconference on June 28, 2022,
beginning at 10 a.m. EST. The rules of 26 CFR 601.601(a)(3) apply to
the hearing. Persons who wish to present oral comments by telephone at
the hearing must submit electronic or written comments and an outline
of the topics to be addressed and the time to be devoted to each topic
by June 9, 2022, as prescribed in the preamble under the ADDRESSES
section.
A period of 10 minutes will be allocated to each person for making
comments. After the deadline for receiving outlines has passed, the IRS
will prepare an agenda containing the schedule of speakers. Copies of
the agenda will be made available at <a href="http://www.regulations.gov">www.regulations.gov</a>, search IRS
and REG-106384-20. Copies of the agenda will also be available by
emailing a request to <a href="/cdn-cgi/l/email-protection#b5c5c0d7d9dcd6ddd0d4c7dcdbd2c6f5dcc7c69bd2dac3"><span class="__cf_email__" data-cfemail="601015020c090308050112090e0713200912134e070f16">[email protected]</span></a>. Please put ``REG-106384-
20 Agenda Request'' in the subject line of the email.
Drafting Information
The principal authors of these regulations are Arslan Malik and
Linda S.F. Marshall of the Office of Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and Employment Taxes). However, other
personnel from the Treasury Department and the IRS participated in the
development of these regulations.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read, in
part, as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.430(h)(3)-1 is revised to read as follows:
Sec. 1.430 (h)(3)-1 Mortality tables used to determine present value.
(a) Overview--(1) Standard mortality tables. This section sets
forth rules for the mortality tables to be used in determining present
value or making any computation under section 430. These mortality
tables include--
(i) Generational mortality tables described in paragraph (b) of
this section; and
(ii) Static mortality tables for small plans described in paragraph
(c) of this section.
(2) Alternative tables--(i) Plan-specific mortality tables. In lieu
of using the mortality tables provided under this section, plan-
specific substitute mortality tables are permitted to be used for
purposes of section 430 pursuant to section 430(h)(3)(C), provided that
the requirements of Sec. 1.430(h)(3)-2 are satisfied.
(ii) Disabled individuals. In lieu of using the mortality tables
provided under this section, mortality tables for disabled individuals
are permitted to be used pursuant to section 430(h)(3)(D). These tables
are provided in guidance published in the Internal Revenue Bulletin.
See Sec. 601.601(d) of this chapter.
(b) Generational mortality tables--(1) In general--(i) Construction
of generational mortality tables. The generational mortality tables
that are permitted to be used under section 430(h)(3)(A) and paragraph
(a)(1)(i) of this section are constructed from the base mortality
tables described in
[[Page 25166]]
paragraph (b)(1)(ii) of this section and the mortality improvement
rates described in paragraph (b)(1)(iii) of this section.
(ii) Base mortality tables. The base mortality tables are set forth
in paragraph (d) of this section. The base year for those tables is
2012.
(iii) Mortality improvement rates. The mortality improvement rates
for valuation dates occurring during 2023 are the Scale MP-2021 Rates.
Note 1 to paragraph (b)(1)(iii): For later years, updated
mortality improvement rates that take into account new data for
mortality improvement trends of the general population will also be
incorporated by reference.
(iv) Incorporation by reference. The material listed in this
paragraph (b)(1)(iv) is incorporated by reference into this section
with the approval of the Director of the Federal Register under 5
U.S.C. 552(a) and 1 CFR part 51. This material is available for
inspection at the IRS and at the National Archives and Records
Administration (NARA). Contact IRS at: Qualified Plans Branch 1,
CC:EEE:QP1, 1111 Constitution Avenue NW, Washington, DC 20224; (202)
317-6700; <a href="http://www.irs.gov/retirement-plans/interest-rates-tables">www.irs.gov/retirement-plans/interest-rates-tables</a>. For
information on the availability of this material at NARA, email:
<a href="/cdn-cgi/l/email-protection#5f392d7136312c2f3a3c2b3630311f313e2d3e71383029"><span class="__cf_email__" data-cfemail="167064387f7865667375627f7978567877647738717960">[email protected]</span></a>, or go to: <a href="http://www.archives.gov/federal-register/cfr/ibr-locations.html">www.archives.gov/federal-register/cfr/ibr-locations.html</a>. The material is available from the Society of
Actuaries at: Society of Actuaries, 475 N. Martingale Rd., Suite 600,
Schaumburg, IL 60173; (847) 706-3500; <a href="https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021/">https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021/</a>.
(A) The Scale MP-2021 Rates.
(B) [Reserved]
(2) Application of mortality improvement rates--(i) In general.
Under the generational mortality tables described in this paragraph
(b), the probability of an individual's death at a particular age in
the future is determined as the individual's base mortality rate that
applies at that age (that is, the applicable mortality rate from the
tables set forth in paragraph (d) of this section for that age, gender,
and status as an annuitant or a non-annuitant) multiplied by the
cumulative mortality improvement factor for the individual's gender and
for that age for the period from 2012 through the calendar year in
which the individual is projected to reach the particular age.
Paragraph (b)(3) of this section shows how the base mortality tables in
paragraph (d) of this section and the mortality improvement rates for
valuation dates occurring during 2023 are combined to determine
projected mortality rates.
(ii) Cumulative mortality improvement factor. The cumulative
mortality improvement factor for an age and gender for a period is the
product of the annual mortality improvement factors for that age and
gender for each year within that period.
(iii) Annual mortality improvement factor. The annual mortality
improvement factor for an age and gender for a year is 1 minus the
mortality improvement rate that applies for that age and gender for
that year. If that annual mortality improvement rate is greater than 1
(corresponding to a negative mortality improvement rate), then the
projected mortality rate for that age and gender for that year is
greater than the projected mortality rate for the same age and gender
for the preceding year.
(3) Example of calculation--(i) Calculation of mortality rate. The
mortality rate for 2023 that is applied to male annuitants who are age
67 in 2023 is equal to the product of the mortality rate for 2012 that
applied to male annuitants who were age 67 in 2012 (0.01288) and the
cumulative mortality improvement factor for age 67 males from 2012 to
2023. The cumulative mortality improvement factor for age 67 males for
the period from 2012 to 2023 is 0.9919, and the mortality rate for 2023
for male annuitants who are age 67 in that year would be 0.01278, as
shown in the following table.
Table 1 to Paragraph (b)(3)(i)
----------------------------------------------------------------------------------------------------------------
Annual mortality
improvement Cumulative
Mortality factor (1- mortality
Calendar year improvement mortality improvement Mortality rate
rate improvement factor
rate)
----------------------------------------------------------------------------------------------------------------
2012......................................... n/a n/a n/a 0.01288
2013......................................... 0.0052 0.9948 0.9948 ..............
2014......................................... 0.0027 0.9973 0.9921 ..............
2015......................................... 0.0009 0.9991 0.9912 ..............
2016......................................... (0.0003) 1.0003 0.9915 ..............
2017......................................... (0.0010) 1.0010 0.9925 ..............
2018......................................... (0.0016) 1.0016 0.9941 ..............
2019......................................... (0.0016) 1.0016 0.9957 ..............
2020......................................... (0.0010) 1.0010 0.9967 ..............
2021......................................... 0.0000 1.0000 0.9967 ..............
2022......................................... 0.0015 0.9985 0.9952 ..............
2023......................................... 0.0033 0.9967 0.9919 0.01278
----------------------------------------------------------------------------------------------------------------
(ii) Probability of survival for an individual. After the projected
mortality rates are derived for each age for each year, the rates are
used to calculate the present value of a benefit stream that depends on
the probability of survival year-by-year. For example, for purposes of
calculating the present value (for a 2023 valuation date) of future
payments in a benefit stream payable for a male annuitant who is age 67
in 2023, the probability of survival for the annuitant is based on the
mortality rate for a male annuitant who is age 67 in 2023 (0.01278),
and the projected mortality rate for a male annuitant who will be age
68 in 2024 (0.01378), age 69 in 2025 (0.01489), and so on.
(4) Use of the tables--(i) Separate tables for annuitants and non-
annuitants. Separate mortality tables are provided for use for
annuitants and non-annuitants. The non-annuitant mortality tables are
applied to determine the probability of survival for a non-annuitant
for the period before the non-annuitant is projected to commence
receiving benefits. The annuitant mortality tables are applied to
determine the present value of benefits
[[Page 25167]]
for each annuitant. In addition, the annuitant mortality tables are
applied for each non-annuitant with respect to each assumed
commencement of benefits for the period beginning with that assumed
commencement. For purposes of this section, an annuitant means a plan
participant who has commenced receiving benefits and a non-annuitant
means a plan participant who has not yet commenced receiving benefits
(for example, an active employee or a terminated vested participant). A
participant whose benefit has partially commenced is treated as an
annuitant with respect to the portion of the benefit that has commenced
and treated as a non-annuitant with respect to the balance of the
benefit. In addition, with respect to a beneficiary of a participant,
the annuitant mortality tables apply for the period beginning with each
assumed commencement of benefits for the participant. If the
participant has died (or to the extent the participant is assumed to
die before commencing benefits), the annuitant mortality tables apply
with respect to the beneficiary for the period beginning with each
assumed commencement of benefits for the beneficiary.
(ii) Examples of calculation using separate non-annuitant and
annuitant tables. With respect to a 45-year-old active participant who
is projected to commence receiving an annuity at age 55, the funding
target is determined using the non-annuitant mortality tables for the
period before the participant attains age 55 and using the annuitant
mortality tables for the period ages 55 and above. Similarly, for a 45-
year-old terminated vested participant who is projected to commence an
annuity at age 65, the funding target is determined using the non-
annuitant mortality tables for the period before the participant
attains age 65 and using the annuitant mortality tables for ages 65 and
above.
(c) Static mortality tables--(1) Availability of alternative tables
for small plans--(i) In general. As an alternative to the generational
mortality tables defined in paragraph (b) of this section, static
mortality tables may be used for a small plan. The static mortality
tables described in this paragraph (c) are constructed from the
separate non-annuitant and annuitant static mortality tables described
in paragraph (c)(2)(i) of this section, combined using the procedure
described in paragraph (c)(2)(ii) of this section.
(ii) Definition of small plan. For purposes of this paragraph (c),
a small plan is defined as a plan with 500 or fewer total participants
(including both active and inactive participants and beneficiaries of
deceased participants) on the valuation date.
(iii) Use of static mortality tables. The static mortality tables
that are used for a valuation date are the static mortality tables for
the calendar year that includes the valuation date.
(iv) Publication of mortality tables. The static mortality tables
for the 2023 calendar year are set forth in paragraph (e) of this
section.
Note 2 to paragraph (c)(1)(iv): The static mortality tables for
valuation dates for later calendar years will be published in the
Internal Revenue Bulletin. See Sec. 601.601(d) of this chapter.
(2) Development of static mortality tables--(i) Non-annuitant and
annuitant mortality tables. The non-annuitant and annuitant static
mortality tables are determined using the base mortality tables
described in paragraph (b)(1)(ii) of this section. The rates in those
base mortality tables are adjusted using the mortality improvement
rates described in paragraph (b)(1)(iii) of this section, in accordance
with the rules set forth in paragraph (c)(3) of this section.
(ii) Combined static mortality tables. The static mortality tables
described in this paragraph (c) are constructed from the separate non-
annuitant and annuitant static mortality tables pursuant to paragraph
(c)(2)(i) of this section, blended using the weighting factors in
paragraph (d) of this section. The weighting factors are applied to
develop these combined static tables using the following equation:
Combined mortality rate = [non-annuitant rate * (1-weighting factor)] +
[annuitant rate * weighting factor].
(3) Projection of mortality improvements--(i) General rule. Except
as provided in paragraph (c)(3)(iii) of this section, the static
mortality tables for a calendar year are determined by multiplying the
applicable mortality rate for each age from the base mortality tables
by both--
(A) The cumulative mortality improvement factor (determined under
paragraph (b)(2)(ii) of this section) for the period from 2012 through
that calendar year; and
(B) The cumulative mortality improvement factor (determined under
paragraph (b)(2)(ii) of this section) for the period beginning in that
calendar year and continuing beyond that calendar year for the number
of years in the projection period described in paragraph (c)(3)(ii) of
this section.
(ii) Projection period for static mortality tables--(A) In general.
The projection period is 8 years for males and 9 years for females, as
adjusted based on age as provided in paragraph (c)(3)(ii)(B) of this
section.
(B) Age adjustment. For ages below 80, the projection period is
increased by 1 year for each year below age 80. For ages above 80, the
projection period is reduced (but not below zero) by \1/3\ year for
each year above 80.
(iii) Fractional projection periods. If for an age the number of
years in the projection period determined under paragraph (c)(3)(ii) of
this section is not a whole number, then the mortality rate for that
age is determined by using linear interpolation between--
(A) The mortality rate for that age that would be determined under
paragraph (c)(3)(i) of this section if the number of years in the
projection period were the next lower whole number; and
(B) The mortality rate for that age that would be determined under
paragraph (c)(3)(i) of this section if the number of years in the
projection period were the next higher whole number.
(iv) Example. For example, at age 85 the projection period for a
male is 6\1/3\ years (8 years minus \1/3\ year for each of the 5 years
above age 80). For a valuation date in 2023, the mortality rate in the
static mortality table for an 85-year-old male is based on a projection
of mortality improvement for 6\1/3\ years beyond 2023. Under paragraph
(c)(3)(iii) of this section, the mortality rate for an 85-year-old male
annuitant in the static mortality table for 2023 is \2/3\ times the
projected mortality rate for a male annuitant that age in 2029 plus \1/
3\ times the projected mortality rate for a male annuitant that age in
2030. Accordingly, the mortality rate for an 85-year-old male annuitant
in the static mortality table for 2023 is 0.07967 (\2/3\ times the
projected mortality rate for an 85-year-old male annuitant in 2029
(0.07986) plus \1/3\ times the projected mortality rate for an 85-year-
old male annuitant in 2030 (0.07928)).
(d) Base mortality tables. The following are the base mortality
tables. The base year for these tables is 2012.
[[Page 25168]]
Table 2 to Paragraph (d)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Males Females
-----------------------------------------------------------------------------------------------
Age Weighting Weighting
Non-annuitant Annuitant factor for Non-annuitant Annuitant factor for
small plans small plans
--------------------------------------------------------------------------------------------------------------------------------------------------------
0....................................................... 0.00650 0.00650 0.0000 0.00544 0.00544 0.0000
1....................................................... 0.00045 0.00045 0.0000 0.00038 0.00038 0.0000
2....................................................... 0.00030 0.00030 0.0000 0.00023 0.00023 0.0000
3....................................................... 0.00022 0.00022 0.0000 0.00018 0.00018 0.0000
4....................................................... 0.00019 0.00019 0.0000 0.00013 0.00013 0.0000
5....................................................... 0.00016 0.00016 0.0000 0.00012 0.00012 0.0000
6....................................................... 0.00014 0.00014 0.0000 0.00011 0.00011 0.0000
7....................................................... 0.00013 0.00013 0.0000 0.00010 0.00010 0.0000
8....................................................... 0.00011 0.00011 0.0000 0.00009 0.00009 0.0000
9....................................................... 0.00009 0.00009 0.0000 0.00009 0.00009 0.0000
10...................................................... 0.00008 0.00008 0.0000 0.00009 0.00009 0.0000
11...................................................... 0.00009 0.00009 0.0000 0.00009 0.00009 0.0000
12...................................................... 0.00013 0.00013 0.0000 0.00010 0.00010 0.0000
13...................................................... 0.00017 0.00017 0.0000 0.00012 0.00012 0.0000
14...................................................... 0.00022 0.00022 0.0000 0.00013 0.00013 0.0000
15...................................................... 0.00028 0.00028 0.0000 0.00013 0.00013 0.0000
16...................................................... 0.00034 0.00034 0.0000 0.00014 0.00014 0.0000
17...................................................... 0.00040 0.00040 0.0000 0.00015 0.00015 0.0000
18...................................................... 0.00046 0.00046 0.0000 0.00015 0.00015 0.0000
19...................................................... 0.00053 0.00053 0.0000 0.00015 0.00015 0.0000
20...................................................... 0.00056 0.00056 0.0000 0.00015 0.00015 0.0000
21...................................................... 0.00056 0.00056 0.0000 0.00015 0.00015 0.0000
22...................................................... 0.00056 0.00056 0.0000 0.00016 0.00016 0.0000
23...................................................... 0.00055 0.00055 0.0000 0.00018 0.00018 0.0000
24...................................................... 0.00055 0.00055 0.0000 0.00019 0.00019 0.0000
25...................................................... 0.00054 0.00054 0.0000 0.00019 0.00019 0.0000
26...................................................... 0.00054 0.00054 0.0000 0.00019 0.00019 0.0000
27...................................................... 0.00054 0.00054 0.0000 0.00020 0.00020 0.0000
28...................................................... 0.00054 0.00054 0.0000 0.00020 0.00020 0.0000
29...................................................... 0.00054 0.00054 0.0000 0.00020 0.00020 0.0000
30...................................................... 0.00055 0.00055 0.0000 0.00021 0.00021 0.0000
31...................................................... 0.00055 0.00055 0.0000 0.00022 0.00022 0.0000
32...................................................... 0.00056 0.00056 0.0000 0.00023 0.00023 0.0000
33...................................................... 0.00058 0.00058 0.0000 0.00025 0.00025 0.0000
34...................................................... 0.00059 0.00059 0.0000 0.00026 0.00026 0.0000
35...................................................... 0.00061 0.00061 0.0000 0.00028 0.00028 0.0000
36...................................................... 0.00063 0.00063 0.0000 0.00031 0.00031 0.0000
37...................................................... 0.00065 0.00065 0.0000 0.00034 0.00034 0.0000
38...................................................... 0.00068 0.00068 0.0000 0.00036 0.00036 0.0000
39...................................................... 0.00071 0.00071 0.0000 0.00040 0.00040 0.0000
40...................................................... 0.00074 0.00074 0.0000 0.00043 0.00043 0.0000
41...................................................... 0.00077 0.00082 0.0008 0.00047 0.00049 0.0010
42...................................................... 0.00081 0.00099 0.0016 0.00051 0.00061 0.0020
43...................................................... 0.00086 0.00124 0.0024 0.00055 0.00078 0.0030
44...................................................... 0.00091 0.00158 0.0032 0.00060 0.00101 0.0040
45...................................................... 0.00097 0.00200 0.0040 0.00065 0.00130 0.0051
46...................................................... 0.00105 0.00251 0.0047 0.00071 0.00165 0.0061
47...................................................... 0.00113 0.00310 0.0055 0.00077 0.00206 0.0071
48...................................................... 0.00123 0.00378 0.0063 0.00083 0.00252 0.0081
49...................................................... 0.00134 0.00454 0.0071 0.00090 0.00304 0.0091
50...................................................... 0.00147 0.00539 0.0079 0.00098 0.00362 0.0101
51...................................................... 0.00161 0.00544 0.0140 0.00107 0.00426 0.0185
52...................................................... 0.00177 0.00565 0.0209 0.00116 0.00495 0.0262
53...................................................... 0.00194 0.00588 0.0302 0.00126 0.00500 0.0349
54...................................................... 0.00213 0.00616 0.0430 0.00137 0.00512 0.0449
55...................................................... 0.00234 0.00647 0.0898 0.00148 0.00517 0.0853
56...................................................... 0.00257 0.00686 0.1676 0.00161 0.00522 0.1535
57...................................................... 0.00281 0.00728 0.2153 0.00175 0.00528 0.1923
58...................................................... 0.00308 0.00770 0.2635 0.00190 0.00561 0.2291
59...................................................... 0.00338 0.00811 0.3144 0.00206 0.00601 0.2680
60...................................................... 0.00369 0.00848 0.3821 0.00224 0.00643 0.3192
61...................................................... 0.00403 0.00882 0.4579 0.00243 0.00690 0.3731
62...................................................... 0.00441 0.00918 0.5935 0.00264 0.00743 0.4705
63...................................................... 0.00481 0.00960 0.7153 0.00287 0.00796 0.5668
64...................................................... 0.00525 0.01014 0.7764 0.00312 0.00859 0.6230
65...................................................... 0.00573 0.01087 0.8454 0.00339 0.00928 0.7172
66...................................................... 0.00636 0.01178 0.9002 0.00380 0.01003 0.8006
67...................................................... 0.00706 0.01288 0.9275 0.00427 0.01089 0.8414
[[Page 25169]]
68...................................................... 0.00784 0.01418 0.9431 0.00480 0.01192 0.8658
69...................................................... 0.00870 0.01564 0.9547 0.00540 0.01309 0.8857
70...................................................... 0.00967 0.01729 0.9642 0.00606 0.01444 0.9046
71...................................................... 0.01073 0.01914 0.9732 0.00681 0.01597 0.9240
72...................................................... 0.01192 0.02121 0.9791 0.00765 0.01770 0.9365
73...................................................... 0.01323 0.02354 0.9823 0.00860 0.01967 0.9437
74...................................................... 0.01469 0.02613 0.9847 0.00966 0.02192 0.9512
75...................................................... 0.01632 0.02905 0.9868 0.01085 0.02445 0.9568
76...................................................... 0.01812 0.03233 0.9889 0.01219 0.02727 0.9637
77...................................................... 0.02012 0.03604 0.9906 0.01370 0.03042 0.9682
78...................................................... 0.02234 0.04026 0.9920 0.01539 0.03391 0.9727
79...................................................... 0.02480 0.04504 0.9935 0.01729 0.03775 0.9765
80...................................................... 0.02754 0.05046 1.0000 0.01943 0.04198 1.0000
81...................................................... 0.02989 0.05657 1.0000 0.02134 0.04663 1.0000
82...................................................... 0.03460 0.06343 1.0000 0.02516 0.05178 1.0000
83...................................................... 0.04166 0.07114 1.0000 0.03089 0.05754 1.0000
84...................................................... 0.05108 0.07977 1.0000 0.03853 0.06401 1.0000
85...................................................... 0.06285 0.08946 1.0000 0.04808 0.07132 1.0000
86...................................................... 0.07698 0.10032 1.0000 0.05955 0.07954 1.0000
87...................................................... 0.09346 0.11248 1.0000 0.07293 0.08879 1.0000
88...................................................... 0.11229 0.12600 1.0000 0.08822 0.09936 1.0000
89...................................................... 0.13348 0.14088 1.0000 0.10542 0.11124 1.0000
90...................................................... 0.15703 0.15703 1.0000 0.12453 0.12453 1.0000
91...................................................... 0.17401 0.17401 1.0000 0.13818 0.13818 1.0000
92...................................................... 0.19151 0.19151 1.0000 0.15250 0.15250 1.0000
93...................................................... 0.20936 0.20936 1.0000 0.16737 0.16737 1.0000
94...................................................... 0.22742 0.22742 1.0000 0.18274 0.18274 1.0000
95...................................................... 0.24569 0.24569 1.0000 0.19863 0.19863 1.0000
96...................................................... 0.26415 0.26415 1.0000 0.21509 0.21509 1.0000
97...................................................... 0.28281 0.28281 1.0000 0.23214 0.23214 1.0000
98...................................................... 0.30169 0.30169 1.0000 0.24983 0.24983 1.0000
99...................................................... 0.32077 0.32077 1.0000 0.26814 0.26814 1.0000
100..................................................... 0.33996 0.33996 1.0000 0.28698 0.28698 1.0000
101..................................................... 0.35910 0.35910 1.0000 0.30619 0.30619 1.0000
102..................................................... 0.37794 0.37794 1.0000 0.32549 0.32549 1.0000
103..................................................... 0.39633 0.39633 1.0000 0.34472 0.34472 1.0000
104..................................................... 0.41415 0.41415 1.0000 0.36375 0.36375 1.0000
105..................................................... 0.43131 0.43131 1.0000 0.38243 0.38243 1.0000
106..................................................... 0.44771 0.44771 1.0000 0.40065 0.40065 1.0000
107..................................................... 0.46329 0.46329 1.0000 0.41828 0.41828 1.0000
108..................................................... 0.47800 0.47800 1.0000 0.43522 0.43522 1.0000
109..................................................... 0.49181 0.49181 1.0000 0.45139 0.45139 1.0000
110..................................................... 0.50000 0.50000 1.0000 0.46673 0.46673 1.0000
111..................................................... 0.50000 0.50000 1.0000 0.48120 0.48120 1.0000
112..................................................... 0.50000 0.50000 1.0000 0.49477 0.49477 1.0000
113..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
114..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
115..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
116..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
117..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
118..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
119..................................................... 0.50000 0.50000 1.0000 0.50000 0.50000 1.0000
120..................................................... 1.00000 1.00000 1.0000 1.00000 1.00000 1.0000
--------------------------------------------------------------------------------------------------------------------------------------------------------
(e) Static tables for 2023. The following static mortality tables
are used pursuant to paragraph (a)(1)(ii) of this section for
determining present value or making any computation under section 430
with respect to valuation dates occurring during 2023.
Table 3 to Paragraph (e)
------------------------------------------------------------------------
Age Male Female
------------------------------------------------------------------------
0............................................. 0.00226 0.00194
1............................................. 0.00016 0.00014
2............................................. 0.00011 0.00008
3............................................. 0.00008 0.00007
4............................................. 0.00007 0.00005
5............................................. 0.00006 0.00005
6............................................. 0.00005 0.00004
7............................................. 0.00005 0.00004
8............................................. 0.00004 0.00004
9............................................. 0.00004 0.00004
10............................................ 0.00003 0.00004
11............................................ 0.00004 0.00004
12............................................ 0.00005 0.00004
13............................................ 0.00007 0.00005
14............................................ 0.00009 0.00006
[[Page 25170]]
15............................................ 0.00012 0.00006
16............................................ 0.00015 0.00006
17............................................ 0.00017 0.00007
18............................................ 0.00020 0.00007
19............................................ 0.00024 0.00007
20............................................ 0.00026 0.00007
21............................................ 0.00026 0.00007
22............................................ 0.00027 0.00008
23............................................ 0.00027 0.00009
24............................................ 0.00028 0.00010
25............................................ 0.00029 0.00010
26............................................ 0.00030 0.00011
27............................................ 0.00032 0.00012
28............................................ 0.00033 0.00012
29............................................ 0.00035 0.00013
30............................................ 0.00037 0.00014
31............................................ 0.00038 0.00015
32............................................ 0.00040 0.00016
33............................................ 0.00043 0.00018
34............................................ 0.00045 0.00018
35............................................ 0.00048 0.00020
36............................................ 0.00051 0.00022
37............................................ 0.00053 0.00024
38............................................ 0.00055 0.00026
39............................................ 0.00058 0.00028
40............................................ 0.00059 0.00029
41............................................ 0.00061 0.00031
42............................................ 0.00063 0.00033
43............................................ 0.00065 0.00035
44............................................ 0.00067 0.00037
45............................................ 0.00069 0.00039
46............................................ 0.00073 0.00042
47............................................ 0.00078 0.00046
48............................................ 0.00083 0.00049
49............................................ 0.00088 0.00053
50............................................ 0.00097 0.00059
51............................................ 0.00106 0.00065
52............................................ 0.00118 0.00074
53............................................ 0.00132 0.00084
54............................................ 0.00148 0.00094
55............................................ 0.00176 0.00113
56............................................ 0.00217 0.00140
57............................................ 0.00254 0.00161
58............................................ 0.00296 0.00188
59............................................ 0.00342 0.00218
60............................................ 0.00396 0.00254
61............................................ 0.00456 0.00294
62............................................ 0.00539 0.00354
63............................................ 0.00623 0.00418
64............................................ 0.00693 0.00476
65............................................ 0.00779 0.00555
66............................................ 0.00874 0.00640
67............................................ 0.00972 0.00717
68............................................ 0.01081 0.00798
69............................................ 0.01201 0.00893
70............................................ 0.01337 0.01002
71............................................ 0.01490 0.01130
72............................................ 0.01663 0.01276
73............................................ 0.01858 0.01442
74............................................ 0.02081 0.01636
75............................................ 0.02336 0.01858
76............................................ 0.02629 0.02115
77............................................ 0.02966 0.02406
78............................................ 0.03353 0.02736
79............................................ 0.03796 0.03106
80............................................ 0.04313 0.03557
81............................................ 0.04868 0.04000
82............................................ 0.05503 0.04498
83............................................ 0.06223 0.05058
84............................................ 0.07040 0.05694
85............................................ 0.07967 0.06416
86............................................ 0.09014 0.07229
87............................................ 0.10191 0.08147
88............................................ 0.11507 0.09197
89............................................ 0.12960 0.10372
90............................................ 0.14540 0.11681
91............................................ 0.16201 0.13032
92............................................ 0.17900 0.14437
93............................................ 0.19623 0.15892
94............................................ 0.21351 0.17370
95............................................ 0.23063 0.18881
96............................................ 0.24879 0.20508
97............................................ 0.26725 0.22194
98............................................ 0.28591 0.23947
99............................................ 0.30502 0.25760
100........................................... 0.32431 0.27640
101........................................... 0.34372 0.29564
102........................................... 0.36307 0.31511
103........................................... 0.38223 0.33471
104........................................... 0.40097 0.35426
105........................................... 0.41863 0.37356
106........................................... 0.43581 0.39243
107........................................... 0.45234 0.41085
108........................................... 0.46796 0.42844
109........................................... 0.48288 0.44529
110........................................... 0.49240 0.46134
111........................................... 0.49374 0.47665
112........................................... 0.49507 0.49112
113........................................... 0.49651 0.49746
114........................................... 0.49795 0.49840
115........................................... 0.49930 0.49950
116........................................... 0.49960 0.49975
117........................................... 0.49980 0.49985
118........................................... 0.49995 0.50000
119........................................... 0.50000 0.50000
120........................................... 1.00000 1.00000
------------------------------------------------------------------------
(f) Applicability date. This section applies for plan years
beginning on or after January 1, 2023.
0
Par. 3. Section 1.431(c)(6)-1 is revised to read as follows:
Sec. 1.431(c)(6)-1 Mortality tables used to determine current
liability.
(a) Mortality tables used to determine current liability. In
accordance with section 431(c)(6)(D), the mortality assumptions that
apply to a single-employer defined benefit plan for the plan year
pursuant to sections 430(h)(3)(A) and 430(h)(3)(D) and Sec. Sec.
1.430(h)(3)-1(a)(1) and (a)(2)(ii) are used to determine a
multiemployer plan's current liability for purposes of applying the
rules of section 431(c)(6). For purposes of this paragraph (a), either
the generational mortality tables used pursuant to Sec. 1.430(h)(3)-
1(b) or the static mortality tables used pursuant to Sec. 1.430(h)(3)-
1(c) are permitted to be used without regard to whether the plan is a
small plan. However, substitute mortality tables under Sec. Sec.
1.430(h)(3)-1(a)(2)(i) and 1.430(h)(3)-2 are not permitted to be used
for purposes of this paragraph (a).
(b) Applicability date. This section applies for plan years
beginning on or after January 1, 2023.
0
Par. 4. Section 1.433(h)(3)-1 is revised to read as follows:
Sec. 1.433(h)(3)-1 Mortality tables used to determine current
liability.
(a) Mortality tables used to determine current liability. In
accordance with section 433(h)(3)(B), the mortality assumptions that
apply to a single-employer defined benefit plan for the plan year
pursuant to sections 430(h)(3)(A) and 430(h)(3)(D) and Sec. Sec.
1.430(h)(3)-1(a)(1) and (a)(2)(ii) are used to determine a cooperative
and small-employer charity (CSEC) plan's current liability under
section 433(h). For purposes of this paragraph (a), either the
generational mortality tables used pursuant to Sec. 1.430(h)(3)-1(b)
or the static mortality tables used pursuant to Sec. 1.430(h)(3)-1(c)
are permitted to be used without regard to whether the plan is a small
plan. However, substitute mortality tables under Sec. Sec.
1.430(h)(3)-1(a)(2)(i) and 1.430(h)(3)-2 are not permitted to be used
for purposes of this paragraph (a).
(b) Applicability date. This section applies for plan years
beginning on or after January 1, 2023.
Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2022-06330 Filed 4-27-22; 8:45 am]
BILLING CODE 4830-01-P
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