Mortality Table Election

[Andy the Actuary]

My weary eyes are unable to find a reference that prescribes that the Employer or Plan Administrator must elect whether to use the annuitant/nonannuitant or combined tables. Must there be an election to use the combined table?

[david rigby]

Choice is permitted only if 500 or fewer participants. See:

- 1.430(h)(3)-1(b), in federal register 5/29/07, and

- Notice 2008-85, in IRB 10/20/08.

However, it states "sponsor" is permitted to choose, which does not sound like an actuarial assumption. Perhaps, it is part of the method. But there may be something I've missed.

[Andy the Actuary]

Sounds as if we have both concluded the same, viz a viz, "?"

It appears the mortality assumption may not require an employer election but once postulated may be subject to IRS approval if such change decreases the funding shortfall.