Which mortality table for 2007 lump sums?

[tuni88]

Has there been a change yet in the mandated mortality table? If not, when will a new table be required and which table is it going to be?

[SoCalActuary]

We got the news today. Use the proposed rates as of December 2005, where you

use the RP 2000 table separately for males & females.

All plans will now have the option to use the blended table or the separate tables

for annuitants and non-annuitants.

This is based on the projection of mortality improvements.

Annuitants have projected improvements to 2014, and

non-annuitants have projected improvements to 2022.

[david rigby]

http://benefitslink.com/taxregs/td9310.pdf

[abanky]

is this for lump sums too... I thought it was strictly current liability?

I've still been using 94 GAR for lump sums, have i been doing it wrong?

[Guest DFerrare]

I believe that the new tables only replace the sex-distinct GAM 83 tables for current liability.

[SoCalActuary]

is this for lump sums too... I thought it was strictly current liability?

I've still been using 94 GAR for lump sums, have i been doing it wrong?

Nothing wrong with that. 417(e)/415 mandated mortality has not changed for 2007.

However, for 2008, PPA does change the rules.

[Mike Preston]

Chicken, egg. Should somebody tell the retirees that retiring is bad for their health?

[SoCalActuary]

Chicken, egg. Should somebody tell the retirees that retiring is bad for their health?

Maybe the reality is that their health forced them to retire, and the govt finally noticed.

[mwyatt]

Double checked twice, but was a little surprised, based on the 2007 combined female table, that current liabilities were actually lower than generated using the 83 GAF. Anyone else notice this?

[david rigby]

Yes, I noticed that result. In our sampling, a majority female population had a small overall increase; a majority male population had an increase of about 10%. However, in both cases the CL-NC increased about 15%. We are still reviewing, so this is preliminary.

[FAPInJax]

Has anyone noticed (or am I mistaken) that for a 1/1/2007 valuation that the current liability calculated for funding purposes is using the new mortality BUT the PBGC liability for the variable premium must still use the old mortality (because the snapshot date is 12/31/2006 - and the PBGC notice actually references that fact)??

[Effen]

http://benefitslink.com/boards/index.php?showtopic=34656

[david rigby]

PBGC Technical Update 07-1, issued 02/13/07:

http://www.pbgc.gov/practitioners/Whats-Ne.../page15560.html

[FAPInJax]

Thanks to all for the cites and pointers for the PBGC mortality.