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Posted

Looks as though it's official (IRS Notice 2016-50) - the mandated mortality rates for 2017 (for all purposes related to the funding rules, including PBGC premiums, and also under IRC Section 417(e)) will be the same as they have been (with one more year of mortality improvements factored in).

So there is no longer any danger that minimum funding or minimum lump sums for plan years beginning in 2017 will reflect, in any way, shape or form, the mortality tables and projection methodologies published by the Society of Actuaries in 2014. The use of static tables (no further mortality improvements) will continue to be acceptable at least through 2017 for all ERISA-related calculations.

It remains to be seen how future mortality improvements will be taken into account after the IRS tables are changed for 2018 and later years (if future improvements are required at all).

Always check with your actuary first!

Posted

Got link?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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