Rule2023-23267
Mortality Tables for Determining Present Value Under Defined Benefit Pension Plans
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 20, 2023
Effective
October 20, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document sets forth final 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 88 Issue 202 (Friday, October 20, 2023)</title>
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[Federal Register Volume 88, Number 202 (Friday, October 20, 2023)]
[Rules and Regulations]
[Pages 72357-72366]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23267]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9983]
RIN 1545-BQ14
Mortality Tables for Determining Present Value Under Defined
Benefit Pension Plans
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
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SUMMARY: This document sets forth final 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:
Effective date: These regulations are effective October 20, 2023.
Applicability date: These regulations apply to valuation dates
occurring on or after January 1, 2024.
Incorporation by reference: The incorporation by reference of
certain publications listed in the rule is approved by the Director of
the Federal Register as of October 20, 2023.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Arslan
Malik or Linda Marshall at (202) 317-6700; concerning the construction
of the base mortality tables and the static mortality tables for 2024,
Christopher Denning at (202) 317-5755 (not toll free).
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 for a plan 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, 88 Stat. 829 (1974), 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 regulations for purposes
of ERISA, as well as the Code. Thus, these Treasury regulations
issued under section 430 of the Code also apply for purposes of
section 303 of ERISA. Similarly, Treasury regulations under sections
431 and 433 apply for purposes of sections 304 and 306 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 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 may
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, the
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
[[Page 72358]]
provided pursuant to section 430(h)(3)(A). 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.\2\
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\2\ Mortality tables that were permitted to be used for disabled
participants under section 412(l)(7)(C)(iii)(I) as in effect before
2008 were provided in Rev. Rul. 96-7, 96-3 IRB 12. Notice 2008-29,
2008-1 CB 637, adopted those tables for use under section
430(h)(3)(D).
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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 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 \3\) 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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\3\ 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, Notice 2020-85,
2020-51 IRB 1645, and Notice 2022-22, 2022-20 IRB 1057.
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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
\4\ (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 as released by
RPEC in the Mortality Improvement Scale MP-2016 Report.\5\ In 2016,
RPEC initiated a study of private-sector retirement plans in the U.S.
in order to provide an update to the RP-2014 mortality tables, and in
2019, RPEC issued the Pri-2012 Private Retirement Plans Mortality
Tables Report (Pri-2012 Report).\6\ In October 2021, RPEC published the
Mortality Improvement Scale MP-2021 Report (MP-2021 Report), which
includes the latest mortality improvement scale issued by RPEC.\7\
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\4\ 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>.
\5\ 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>.
\6\ 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>.
\7\ 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
section 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)). 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)).
Proposed regulations to update the mortality tables issued under
section 430(h)(3) and make certain other changes regarding those tables
were published in the Federal Register on April 28, 2022 (87 FR 25161)
(the proposed regulations). Five comments on the proposed regulations
were received. No commenters requested to speak at the scheduled public
hearing; accordingly, the public hearing was canceled.
On October 27, 2022, RPEC released a report titled the ``RPEC 2022
Mortality Improvement Update.'' \8\ Unlike RPEC's previously issued
reports regarding mortality improvement, this report does not include a
new mortality improvement scale. RPEC noted that, as of the date of
that report, the most recent year for which full-year mortality data
was available was 2020, which was severely affected by the COVID-19
pandemic. RPEC concluded that it would not be appropriate to
incorporate, without adjustment, the substantially higher rates of
mortality experience from 2020 into the models RPEC had previously used
to project future mortality.\9\ Therefore, RPEC chose not to release a
new mortality improvement scale in 2022. Instead, RPEC recommended the
use of an assumed increase in mortality rates to reflect the impact of
the COVID-19 pandemic, which would be phased out after an appropriate
period. RPEC did not recommend a specific level for this assumed
increase but provided data about mortality rates for 2020 through the
first half of 2022 and provided examples of assumed increases that
could be used (including the assumed increase used in the 2022 Annual
Report of the Board of Trustees of the Federal Old-Age and Survivors
Insurance and Federal Disability Insurance Trust Funds).
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\8\ This report is available at <a href="https://www.soa.org/resources/research-reports/2022/rpec-mortality-improvement/">https://www.soa.org/resources/research-reports/2022/rpec-mortality-improvement/</a>.
\9\ RPEC noted that, if it had used its standard graduation
model and had included 2020 data in accordance with its usual
practice, this would have had the effect of elevating mortality
improvement rates for periods prior to the pandemic.
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Section 335 of the SECURE 2.0 Act of 2022 (SECURE 2.0 Act), which
was enacted on December 29, 2022 as Division T of the Consolidated
Appropriations Act, 2023, Public Law 117-328 (136 Stat. 4459),
instructs the Secretary or the Secretary's delegate to amend the
regulations under section 430(h)(3)(A) no later than June 30, 2024.
Under this provision, for valuation dates occurring during or after
2024, the mortality improvement rates specified in those regulations
must not assume for years beyond the valuation date mortality
improvements at any age that are greater than 0.78 percent. Section 335
of the SECURE 2.0 Act also instructs the Secretary (or delegate) to
modify the 0.78 percent limitation to reflect material changes in the
overall rate of improvement projected by the Social Security
Administration.
[[Page 72359]]
After consideration of public comments received on the proposed
regulations (and taking into account section 335 of the SECURE 2.0
Act), the proposed regulations are adopted by this Treasury decision,
with certain changes. These changes include: (1) a delay in the
applicability date; (2) modifications in the mortality improvement
rates to reflect the expected ongoing impact of COVID-19 on mortality
rates and to reflect the 0.78 percent annual cap on mortality
improvement rates as required by section 335 of the SECURE 2.0 Act; and
(3) a minor change related to the treatment of individuals who are not
identified as male or female.
Summary of Comments and Explanation of Revisions
These regulations set forth the updated methodology for determining
the generally applicable mortality tables that are used to calculate
present value under section 430 of the Code. Pursuant to section
417(e)(3)(B), a modified version of these tables is used for purposes
of determining the amount of a single-sum distribution (or another
accelerated form of distribution). In addition, these tables are used
to determine current liability for multiemployer plans under section
431(c)(6) and CSEC plans under section 433(h).
The updated methodology for determining the generally applicable
mortality tables under section 430(h)(3)(A) is issued 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
well as the requirement under section 335 of the SECURE 2.0 Act that
mortality improvement rates provided under the regulations for years
after the year that includes the applicable valuation date may not
exceed 0.78 percent per year. As under the 2017 regulations and the
proposed regulations, the methodology for determining generally
applicable mortality tables involves the separate determination of base
mortality tables and the projection of mortality improvement.
A. Base Mortality Tables
These regulations adopt the base mortality tables set forth in the
proposed regulations for use under section 430(h)(3)(A) of the Code,
which are derived from the tables set forth in the Pri-2012 Report. No
commenter suggested any alternative source for base mortality tables.
Like the base mortality tables provided in the 2017 regulations,
the base mortality tables set forth in these regulations are gender-
distinct and provide separate non-annuitant and annuitant mortality
rates. The base mortality 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 (amounts weighted) 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 18 and above 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 preamble to the proposed regulations describes the
methodology that was used to develop non-annuitant mortality rates for
ages below age 18 and above age 80 and annuitant mortality rates for
ages below age 50. See 87 FR 25161, 25163.
B. Mortality Improvement
These regulations adopt the methodology set forth in the proposed
regulations regarding the adjustment of the base mortality tables to
reflect expected trends in mortality improvement but use different
mortality improvement rates. The proposed regulations applied 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.\10\
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\10\ 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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One commenter expressed concern that the expected long-term
improvements in longevity reflected in the MP-2021 Report may be overly
optimistic and suggested that regulations apply a cap on the long-term
mortality improvement rates used. Another commenter recommended that
future mortality rates be increased to reflect the long-term impact of
COVID-19.
After considering all the comments and the RPEC 2022 Mortality
Improvement Update, the Department of the Treasury (Treasury
Department) and the IRS have decided to adopt a modified version of the
MP-2021 Mortality Improvement Scale for valuation dates occurring on or
after January 1, 2024. The mortality improvement scale applicable for
valuation dates occurring on or after January 1, 2024, which is
referred to as the 2024 Adjusted Scale MP-2021 Rates, is based on the
Scale MP-2021 Rates. However, the 2024 Adjusted Scale MP-2021 Rates
reflect a modification to the Scale MP-2021 Rates that eliminates any
mortality improvement during 2020, 2021, 2022, and 2023 (while
retaining any projected mortality deterioration for those years under
the MP-2021 Mortality Improvement Scale).\11\ In addition, in response
to the statutory instruction in section 335 of the SECURE 2.0 Act, the
2024 Adjusted Scale MP-2021 incorporates a cap on mortality improvement
rates of 0.78 percent per year for years after 2024.\12\ This cap on
mortality improvement rates is statutorily required by a clear
statutory instruction, and public comment on the cap rate is
unnecessary.
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\11\ Because the mortality rates provided in these regulations
apply beginning in 2024 (that is, after the height of the COVID-19
pandemic), the significantly higher rates of mortality experience
during 2020 through 2023 are not determinative of mortality rates
for later years. However, the Treasury Department and the IRS expect
that mortality in the future will be marginally higher than what was
projected based on mortality experience prior to the COVID-19
pandemic. This expectation has been reflected through the
elimination of any mortality improvement assumption for the years
2020 through 2023.
\12\ Because the 0.78 percent cap applies to rates for years
after the year that includes the applicable valuation date, the
first impact of that cap will be on the mortality rates that are
projected to apply in 2025.
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The Treasury Department and the IRS intend to consider new data
regarding mortality trends of the general population as it becomes
available (including future reports and mortality improvement scales
issued by RPEC, as well as projections of mortality improvement issued
by the Social Security Administration) and to specify new mortality
improvement rates that reflect updated data when future modifications
become appropriate. Those new mortality improvement rates will
incorporate the cap on mortality improvement rates described in section
335 of the SECURE 2.0 Act (including a change to the level of the 0.78
percent cap on annual mortality improvement rates as a result of any
material changes in the overall rate of improvement
[[Page 72360]]
projected by the Social Security Administration).
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. However, the proposed
regulations provided for the elimination of the use of static mortality
tables other than for small plans. This change was proposed because the
Treasury Department and the IRS believe that there was no longer a need
to allow the use of static mortality tables for larger plans (as most
actuarial firms have the capability to use generational mortality
tables) and to minimize anti-selection by plan sponsors who determine
that the use of static mortality tables results in lower minimum
funding requirements. No commenters objected to this change, and these
regulations adopt that change.
D. Individuals Not Identified as Male or Female
One commenter requested that final regulations clarify how the
mortality tables under section 430(h)(3)(A) are applied in the case of
a participant or beneficiary who identifies as nonbinary. To address
this issue, and to clarify how these tables should be applied for the
portion of a plan's population for whom gender data is not available,
the regulations provide that the plan's actuary must use a reasonable
approach in applying the section 430(h)(3)(A) mortality tables with
respect to the portion of a plan's population whose gender is not
identified as male or female (for example, a plan participant who
identifies as nonbinary or for whom gender is not known). The
regulations include two examples of reasonable approaches that may be
used for this purpose. These two approaches are merely two reasonable
methods for determining liabilities with respect to individuals for
whom male or female gender is not identified, and other reasonable
approaches may be appropriate.\13\
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\13\ For example, it might be reasonable to apply an approach
based on an equal weighting of male mortality rates and female
mortality rates if the gender ratio of the portion of the plan
population for whom male or female gender is identified is
sufficiently close to 50 percent male and 50 percent female.
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Under the first approach, the liability for an individual is
determined as the weighted average of the liability calculated as if
the individual were male and the liability calculated as if the
individual were female, using an appropriate weighting that takes into
account the distribution of gender in the plan's population for
individuals for whom gender is identified. For example, if the gender
distribution in a plan's population for whom the gender is identified
is \2/3\ male and \1/3\ female, the liability calculated for the
individual would be equal to \2/3\ of the liability calculated as if
the individual were male and \1/3\ of the liability calculated as if
the individual were female.
The second approach might be used in connection with actuarial
software that is not able to apply a weight to individuals in the plan
census. Under the second approach, either male or female status is
assigned randomly to an individual for whom male or female gender is
not identified in a manner that is expected to result in an appropriate
proportion of males and females for the plan population that takes into
account the distribution of gender for individuals in the plan's
population for whom gender is identified. For example, if the gender
distribution in a plan population for whom the gender is identified is
\2/3\ male and \1/3\ female, a gender may be assigned to an individual
for whom gender is not identified based on the individual's birthdate,
with someone born in the first 8 months of the year assigned male
gender and someone born in the last 4 months of the year assigned
female gender.
Applicability Date
These regulations apply for valuation dates occurring on or after
January 1, 2024.
Effect of Regulations on Previously Approved Substitute Mortality
Tables
The 2017 regulations also included rules regarding the use of plan-
specific substitute mortality tables under section 430(h)(3)(C), which
are set forth in Sec. 1.430(h)(3)-2. 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 in conjunction with 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 in
conjunction with a replacement of the generally applicable mortality
tables will apply as of a date specified in guidance published in the
Internal Revenue Bulletin. As stated in the preamble to the proposed
regulations, the Treasury Department and the IRS generally will not
require that the use of previously approved substitute mortality tables
be terminated solely as a result of replacement of the generally
applicable mortality tables.
Proposed regulations modifying the rules for approving plan-
specific substitute mortality tables are being published in the
proposed rules section of this issue of the Federal Register. Those
regulations are proposed to apply to plan years beginning on or after
January 1, 2025. Until amendments to the plan-specific substitute
mortality regulations are finalized--and an updated revenue procedure
that reflects the final regulations is issued--the Treasury Department
and the IRS will not require that any previously approved plan-specific
substitute mortality tables be terminated pursuant to Sec.
1.430(h)(3)-2(c)(6)(ii)(E).
Incorporation by Reference
Section 1.430(h)(3)-1(b)(1)(iii) of these regulations provides that
the mortality improvement rates used to construct generational tables
to be used for valuation dates occurring on or after January 1, 2024,
are the 2024 Adjusted Scale MP-2021 Rates as described in the third
paragraph of section B of the Summary of Comments and Explanation of
Revisions in this preamble. 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 2024 Adjusted Scale MP-2021 Rates may be found at
<a href="http://www.irs.gov/retirement-plans/pension-plan-mortality-tables">www.irs.gov/retirement-plans/pension-plan-mortality-tables</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
Pursuant to the Memorandum of Agreement, Review of Treasury
Regulations under Executive Order 12866 (June 9, 2023), tax regulatory
actions issued by the IRS are not subject to the requirements of
section 6 of Executive Order 12866, as amended. Therefore, a regulatory
impact assessment is not required.
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.
[[Page 72361]]
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, these
regulations will not have a significant economic impact on a
substantial number of small entities.
Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that agencies assess anticipated costs and benefits and take certain
other actions before issuing a final rule that includes any Federal
mandate that may result in expenditures in any one year by a State,
local, or tribal government, in the aggregate, or by the private
sector, of $100 million in 1995 dollars, updated annually for
inflation. These regulations do not include any Federal mandate that
may result in expenditures by State, local, or tribal governments, or
by the private sector in excess of that threshold.
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial, direct compliance costs on State and local
governments, and is not required by statute, or preempts State law,
unless the agency meets the consultation and funding requirements of
section 6 of the Executive order. These regulations do not have
federalism implications, impose substantial direct compliance costs on
State and local governments, or preempt State law within the meaning of
the Executive order.
Pursuant to section 7805(f) of the Code, the proposed regulations
that preceded these regulations were submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on their
impact on small business.
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
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, Incorporation by reference, Reporting and
recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is 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.
(3) Individuals not identified as either male or female. The
mortality tables in this section are applied for an individual based on
the individual's gender. With respect to the portion of a plan's
population for which male or female gender is not identified (for
example, because an individual identifies as nonbinary or because the
gender information for an individual is not available), the plan's
actuary must use a reasonable approach for determining liability. Some
reasonable approaches for these individuals include--
(i) Determining the liability for an individual for whom male or
female gender is not identified as the weighted average of the
liability calculated as if the individual were male and the liability
calculated as if the individual were female, with an appropriate
weighting that takes into account the distribution of gender for
individuals in the plan's population for whom gender is identified; and
(ii) Assigning either male or female status randomly to an
individual for whom male or female gender is not identified in a manner
that is expected to result in an appropriate proportion of males and
females for the plan's population that takes into account the
distribution of gender for individuals in the plan's population for
whom gender is identified.
(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 paragraph (b)(1)(ii) of this section and the
mortality improvement rates described in paragraph (b)(1)(iii) of this
section, as adjusted in accordance with paragraph (b)(1)(v) of this
section.
(ii) Base mortality tables. The base mortality tables are set forth
in paragraph (d) of this section.
(iii) Mortality improvement rates--(A) Mortality improvement rates
for valuation dates occurring on or after January 1, 2024. Except as
otherwise provided in this paragraph (b)(1)(iii), the mortality
improvement rates for valuation dates occurring on or after January 1,
2024, are the 2024 Adjusted Scale MP-2021 Rates as incorporated by
reference pursuant to paragraph (b)(1)(iv)(A) of this section.
(B) [Reserved.]
(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: IRS Office of Chief Counsel,
Qualified Plans Branch 1, CC:EEE:EB:QP1, 1111 Constitution Avenue NW,
Washington, DC 20224; (202) 317-6700; <a href="http://www.irs.gov/retirement-plans/pension-plan-mortality-tables">www.irs.gov/retirement-plans/pension-plan-mortality-tables</a>. For information on the availability of
this material at NARA, visit <a href="http://www.archives.gov/federal-register/cfr/ibr-locations">www.archives.gov/federal-register/cfr/ibr-locations</a> or email <a href="/cdn-cgi/l/email-protection#385e4a1651564b485d5b4c5157567856594a59165f574e"><span class="__cf_email__" data-cfemail="ec8a9ec285829f9c898f98858382ac828d9e8dc28b839a">[email protected]</span></a>. The material may be obtained
from IRS: <a href="http://www.irs.gov/retirement-plans/pension-plan-mortality-tables">www.irs.gov/retirement-plans/pension-plan-mortality-tables</a>.
(A) 2024 Adjusted Scale MP-2021 Rates, dated August 11, 2023.
(B) [Reserved]
(2) Application of mortality improvement rates--(i) In general.
Under the generational mortality tables
[[Page 72362]]
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 the
base year for those mortality tables through the calendar year in which
the individual is projected to reach the particular age. Paragraph
(b)(3) of this section provides an example that shows how the base
mortality tables in paragraph (d) of this section and the mortality
improvement rates for valuation dates occurring during 2024 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 2024 that is applied to a male annuitant who is age
68 in 2024 is equal to the product of the mortality rate under
paragraph (d) of this section for a male annuitant who was age 68 in
2012 (0.01418) and the cumulative mortality improvement factor
calculated from the 2024 Adjusted Scale MP-2021 Rates for an age 68
male from 2012 to 2024. The cumulative mortality improvement factor for
age 68 males for the period from 2012 to 2024 is 0.9827, and the
mortality rate for 2024 for male annuitants who are age 68 in that year
is 0.01393, as shown in the following table.
Table 1 to Paragraph (b)(3)(i)
----------------------------------------------------------------------------------------------------------------
Rate of mortality Annual mortality
improvement from improvement factor Cumulative
Calendar year prior year to (1 - mortality mortality Mortality rate
current year improvement rate) improvement factor
----------------------------------------------------------------------------------------------------------------
2012................................ n/a n/a n/a 0.01418
2013................................ 0.0071 0.9929 0.9929 ..............
2014................................ 0.0047 0.9953 0.9882 ..............
2015................................ 0.0029 0.9971 0.9854 ..............
2016................................ 0.0017 0.9983 0.9837 ..............
2017................................ 0.0009 0.9991 0.9828 ..............
2018................................ 0.0001 0.9999 0.9827 ..............
2019................................ (0.0001) 1.0001 0.9828 ..............
2020................................ 0.0001 0.9999 0.9827 ..............
2021................................ 0.0000 1.0000 0.9827 ..............
2022................................ 0.0000 1.0000 0.9827 ..............
2023................................ 0.0000 1.0000 0.9827 ..............
2024................................ 0.0000 1.0000 0.9827 0.01393
----------------------------------------------------------------------------------------------------------------
(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 2024 valuation date) of future
payments in a benefit stream payable for a male annuitant who is age 68
in 2024, the probability of survival for the annuitant is based on the
mortality rate for a male annuitant who is age 68 in 2024 (0.01393),
and the projected mortality rate for a male annuitant who will be age
69 in 2025 (0.01507), age 70 in 2026 (0.01635), and so on.
(4) Use of the tables--(i) Separate tables for annuitants and non-
annuitants. Separate mortality tables are provided for use with respect
to 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 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
[[Page 72363]]
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 2024 calendar year are set forth in paragraph (e) of this
section.
Note 1 to paragraph (c)(1)(iv): The static mortality tables for
valuation dates occurring in 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 2024, 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 2024. Under paragraph
(c)(3)(iii) of this section, the mortality rate for an 85-year-old male
annuitant in the static mortality table for 2024 is \2/3\ times the
projected mortality rate for a male annuitant that age in 2030 plus \1/
3\ times the projected mortality rate for a male annuitant that age in
2031. Accordingly, the mortality rate for an 85-year-old male annuitant
in the static mortality table for 2024 is 0.08126 (\2/3\ times the
projected mortality rate for an 85-year-old male annuitant in 2030
(0.08146) plus \1/3\ times the projected mortality rate for an 85-year-
old male annuitant in 2031 (0.08086)).
(d) Base mortality tables. The following are the base mortality
tables. The base year for these tables is 2012.
Table 2 to Paragraph (d)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Males Females
------------------------------------------------------------------------------------------------
Age Weighting Weighting
Non-annuitant Annuitant factor for Non-annuitant Annuitant factor for
small plan 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
[[Page 72364]]
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
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
[[Page 72365]]
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 2024. 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 2024.
Table 3 to Paragraph (e)
------------------------------------------------------------------------
Age Male Female
------------------------------------------------------------------------
0................................................. 0.00356 0.00306
1................................................. 0.00025 0.00022
2................................................. 0.00017 0.00013
3................................................. 0.00012 0.00010
4................................................. 0.00011 0.00008
5................................................. 0.00009 0.00007
6................................................. 0.00008 0.00007
7................................................. 0.00008 0.00006
8................................................. 0.00006 0.00005
9................................................. 0.00005 0.00005
10................................................ 0.00005 0.00006
11................................................ 0.00005 0.00006
12................................................ 0.00008 0.00006
13................................................ 0.00010 0.00008
14................................................ 0.00013 0.00008
15................................................ 0.00017 0.00008
16................................................ 0.00021 0.00009
17................................................ 0.00025 0.00010
18................................................ 0.00029 0.00010
19................................................ 0.00034 0.00010
20................................................ 0.00036 0.00010
21................................................ 0.00037 0.00010
22................................................ 0.00037 0.00011
23................................................ 0.00038 0.00013
24................................................ 0.00039 0.00014
25................................................ 0.00040 0.00014
26................................................ 0.00041 0.00015
27................................................ 0.00043 0.00016
28................................................ 0.00044 0.00016
29................................................ 0.00046 0.00017
30................................................ 0.00049 0.00018
31................................................ 0.00050 0.00019
32................................................ 0.00053 0.00021
33................................................ 0.00056 0.00023
34................................................ 0.00059 0.00024
35................................................ 0.00062 0.00026
36................................................ 0.00065 0.00029
37................................................ 0.00067 0.00031
38................................................ 0.00070 0.00032
39................................................ 0.00072 0.00035
40................................................ 0.00074 0.00037
41................................................ 0.00075 0.00039
42................................................ 0.00077 0.00041
43................................................ 0.00079 0.00043
44................................................ 0.00081 0.00045
45................................................ 0.00084 0.00048
[[Page 72366]]
46................................................ 0.00088 0.00051
47................................................ 0.00092 0.00055
48................................................ 0.00098 0.00059
49................................................ 0.00104 0.00064
50................................................ 0.00113 0.00070
51................................................ 0.00124 0.00080
52................................................ 0.00137 0.00090
53................................................ 0.00153 0.00101
54................................................ 0.00173 0.00115
55................................................ 0.00206 0.00138
56................................................ 0.00253 0.00170
57................................................ 0.00296 0.00195
58................................................ 0.00344 0.00225
59................................................ 0.00397 0.00258
60................................................ 0.00458 0.00299
61................................................ 0.00523 0.00343
62................................................ 0.00615 0.00409
63................................................ 0.00703 0.00478
64................................................ 0.00774 0.00537
65................................................ 0.00861 0.00619
66................................................ 0.00957 0.00707
67................................................ 0.01054 0.00786
68................................................ 0.01163 0.00871
69................................................ 0.01283 0.00968
70................................................ 0.01419 0.01082
71................................................ 0.01575 0.01217
72................................................ 0.01750 0.01368
73................................................ 0.01949 0.01540
74................................................ 0.02175 0.01742
75................................................ 0.02433 0.01975
76................................................ 0.02729 0.02240
77................................................ 0.03069 0.02540
78................................................ 0.03460 0.02878
79................................................ 0.03912 0.03254
80................................................ 0.04442 0.03715
81................................................ 0.05008 0.04158
82................................................ 0.05649 0.04650
83................................................ 0.06372 0.05202
84................................................ 0.07192 0.05823
85................................................ 0.08126 0.06527
86................................................ 0.09180 0.07337
87................................................ 0.10364 0.08255
88................................................ 0.11688 0.09305
89................................................ 0.13148 0.10480
90................................................ 0.14733 0.11790
91................................................ 0.16404 0.13141
92................................................ 0.18111 0.14547
93................................................ 0.19847 0.16007
94................................................ 0.21588 0.17495
95................................................ 0.23319 0.19020
96................................................ 0.25152 0.20655
97................................................ 0.27010 0.22354
98................................................ 0.28899 0.24127
99................................................ 0.30836 0.25965
100............................................... 0.32788 0.27862
101............................................... 0.34742 0.29799
102............................................... 0.36672 0.31750
103............................................... 0.38574 0.33705
104............................................... 0.40436 0.35650
105............................................... 0.42191 0.37576
106............................................... 0.43897 0.39452
107............................................... 0.45520 0.41279
108............................................... 0.47064 0.43024
109............................................... 0.48536 0.44694
110............................................... 0.49448 0.46282
111............................................... 0.49552 0.47794
112............................................... 0.49656 0.49215
113............................................... 0.49756 0.49820
114............................................... 0.49870 0.49900
115............................................... 0.49975 0.49980
116............................................... 0.49990 0.49990
117............................................... 0.49995 0.50000
118............................................... 0.50000 0.50000
119............................................... 0.50000 0.50000
120............................................... 1.00000 1.00000
------------------------------------------------------------------------
(f) Applicability date. This section applies for valuation dates
occurring on or after January 1, 2024.
0
Par. 3. Section 1.430(h)(3)-2 is amended by:
0
a. In paragraph (c)(3)(ii) deleting the text ``Sec. 1.430(h)(3)-
1(a)(2)(i)(E)'' and adding in its place ``Sec. 1.430(h)(3)-
1(b)(2)(ii)'';
0
b. Revising paragraph (c)(6)(ii)(E); and
0
c. In paragraph (d)(4)(iii)(A):
0
i. Deleting the text ``Sec. 1.430(h)(3)-1(a)(2)(i)(E)'' and adding in
its place ``Sec. 1.430(h)(3)-1(b)(2)(ii)'';
0
ii. Deleting ``2006'' and adding in its place ``2012''; and
0
iii. Deleting the text ``Sec. 1.430(h)(3)-1(a)(2)(i)(C)'' and adding
in its place ``Sec. 1.430(h)(3)-1(b)(1)(iii).''
The revision reads as follows:
Sec. 1.430(h)(3)-2 Plan-specific substitute mortality tables used to
determine present value.
* * * * *
(c) * * *
(6) * * *
(ii) * * *
(E) The date specified in guidance published in the Internal
Revenue Bulletin (see Sec. 601.601(d) of this chapter) in conjunction
with a replacement of mortality tables specified under section
430(h)(3)(A) and Sec. 1.430(h)(3)-1 (other than changes to the
mortality improvement rates under Sec. 1.430(h)(3)-1(b)(1)(iii) or
annual updates to the static mortality tables issued as noted in Sec.
1.430(h)(3)-1(c)(1)(iv)).
* * * * *
0
Par. 4. 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 section 430(h)(3)(A) and (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 valuation dates
occurring on or after January 1, 2024.
0
Par. 5. 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 section 430(h)(3)(A) and (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 as defined in Sec.
1.430(h)(3)-1(c)(1)(ii). 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 valuation dates
occurring on or after January 1, 2024.
Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
Approved: October 4, 2023.
Lily L. Batchelder,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2023-23267 Filed 10-19-23; 8:45 am]
BILLING CODE 4830-01-P
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