Effective date for new PPA rates/mortality for lump sums

[John Feldt ERPA CPC QPA]

I must be missing something regarding the date on which the new PPA rates and mortality apply for lump sum payouts.

Do these apply in determining the amount payable to a Participant having an annuity starting date on or after January 1, 2008, regardless of the plan year?

I expected this to be tied to the plan year, but I didn't see the plan year tie-in.

So, for example, could (or should) an October 1 plan year begin utilizing the new PPA interest rate and mortality January 1, 2008?

[Guest KennyH]

http://www.irs.gov/pub/irs-tege/rr2007-67.end.pdf

However, pursuant to the effective date rules of PPA’ 06, the 2008 Applicable Mortality Table does not apply before the first day of the first plan year beginning in 2008. Thus, for example, in the case of a plan with a September 1 to August 31 plan year, and a calendar year stability period, the 2008 Applicable Mortality Table (as well as the applicable interest rates that are based on the § 430(h)(2)© segment rates) would not apply to distributions with annuity starting dates prior to September 1, 2008, but would apply to distributions with annuity starting dates beginning on or after September 1, 2008.

[John Feldt ERPA CPC QPA]

thanks!