Changes to note for 2007 valuations

[mwyatt]

Just starting to get requests in for 1/1/2007 beginning of year valuations. Have the following questions:

1) 2006 valuations used the 1983 GAM and GAF tables for current liability. Are these tables still in effect for 2007 valuations or do we switch to more recent tables (ala the 417 table switch from 95-6 to 2001-62).

2) Similar question on mortality table to use for PBGC variable rate premiums for 2007.

Any other things we should note for 2007 valuations?

[david rigby]

There is a proposed change, to be effective in 2007. However, as far as I know, it is still proposed as of today. http://www.irs.gov/irb/2005-51_IRB/ar15.html

[mwyatt]

So it sounds like last year with the interest rate issue, in that valuations for the most part can be run to determine the contribution ranges (assuming that CL doesn't factor into the equation), with possible revision of the CL results later in the year if these tables are adopted?

[SoCalActuary]

PBGC ties their variable premium to the mortality tables for current liability. Since they are still

publishing at 85% corporate rates, I would guess that current liability tables remain on 1983 GAM.

When the IRS finalizes the 412 regs on mortality, then the PBGC will change as well.

Don't forget that PPA will force the RP-2000 mortality table with projections starting in 2008.

My vague recollection is that IRS scheduled hearings on the proposed regs. No one wants to

comment, so the IRS was going to finalize them. But I have not yet found their comments on the

IRS web site.