IRS issues updated static mortality tables for 2016

The IRS has issued a notice providing the static mortality tables to be used under Code Sec. 430(h)(3)(A) and ERISA §303(h)(3)(A) for purposes of calculating the funding target and other items for valuation dates occurring during calendar year 2016. The notice includes a modified “unisex” version of the mortality tables for use in determining minimum present value under Code Sec. 417(e)(3) and ERISA §205(g)(3) for distributions with annuity starting dates that occur during stability periods beginning in the 2016 calendar year.

IRS Notice 2013-49, which provided static mortality tables for valuation dates during 2014 and 2015, requested comments concerning the publication of mortality tables for future years. The IRS received several comments. Later, the IRS received comments in response to October 2014 reports concerning mortality tables from the Society of Actuaries. The IRS is considering the comments received and expects to issue proposed regulations revising the base mortality rates and projection factors in IRS Reg. §1.430(h)(3)-1. The IRS states, however, that the new regulations will not apply until 2017 in order to give time for notice and comment on the proposed regulations.

Cooperative and small employer charity plans

The IRS noted that, under Code Sec. 433(h)(3)(B)(i), regulations may be issued to prescribe mortality tables for cooperative and small employer charity (CSEC) plans to be used in determining current liability for purposes of Code Sec. 433(c)(7)(C). The IRS expects to issue regulations prescribing that the mortality tables described in Code Sec. 430(h)(3)(A) are to be used to determine current liability under Code Sec. 433(c)(7)(C).
Source: IRS Notice 2015-53.

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