IRS Issues Rules for Mortality Tables in Pension Plans

The IRS released rules on the use of mortality tables in pension plans Thursday, including proposed and final regulations.

The final regulations (TD 9983) prescribe “mortality tables to be used for most defined benefit pension plans,” which specify “the probability of survival year-by-year for an individual based on age, gender, and other factors.”

The proposed regulations (REG-103525-23) would update requirements that plan sponsors of single-employer defined benefit plans have to meet “to obtain IRS approval to use mortality tables specific to the plan in calculating present value for minimum funding purposes (as a substitute for ...