Mortality Tables

[Jim Chad]

My software (Relius) has the option to use several mortality tables. There are several years to choose from, individual or group and male and female to choose. The 1983 Group Annuity Male seems to be the default. Any thoughts?

[Tom Poje]

ha. I mention this little bit into this in my ASPPA talk. (but probably most people fall asleep by the time I get to that point in the talk so...zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz)

One of the steps in the calculation of an individuals E-BAR is to divide by the APR (that is, based on whatever mortality table you have chosen)

now, if all employees have the same retirement age, then that would be a constant, and thus have no effect on anything.

if someone has continued working past normal retirement (or retirement age is 65/5, those E-BARs are generally so small that the mortality table choice makes no difference.

Now, all that being said, the choice of mortality table does make a difference even though it is a constant.

If you impute disparity then it makes a difference, and enough of a difference to possibly pass or fail testing.

1983 IAF produces the largest APR and that is generally the one I would use.