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Mortality tables

IRS proposes new regulations/mortality tables for DB valuations

On April 28, 2022, the IRS published proposed regulations/mortality tables for determining the present value of benefits under defined benefit plans for purposes of determining the plan’s ERISA minimum funding requirements, Pension Benefit Guaranty Corporation variable-rate premiums, and lump-sum valuations.

De-risking in 2020

In this article we discuss how changes in interest rates, Pension Benefit Guaranty Corporation premiums, and mortality assumptions may affect sponsor decisions to de-risk (or not de-risk) defined benefit plan liabilities in 2020. For purposes of this article, by de-risking we mean paying out a participant’s benefit as a lump sum and thereby eliminating the…Read More

2019 year in review

In this article we review some of the significant retirement policy developments of 2019, including Congress’s consideration of broad bipartisan legislation (the SECURE Act), DOL’s electronic participant communications proposal, and the Supreme Court putting three ERISA retirement plan cases on its docket. Legislation Retirement policy-related legislative activity focused on passage of the Setting Every Community Up…Read More

IRS proposes updated life expectancy tables for required minimum distributions

On November 7, 2019, IRS proposed changes to the required minimum distribution (RMD) rules, updating the life expectancy tables to be used in calculating required distributions. The new tables significantly increase the applicable life expectancy assumptions and, consequently, reduce required distribution amounts. In this article we briefly review IRS’s proposal. Background Internal Revenue Code section…Read More

Society of Actuaries publishes MP-2019 mortality improvement scale and new mortality tables, showing decrements in life expectancy

In October 2019, the Society of Actuaries published (1) a new Mortality Improvement Scale MP-2019 and (2) new base Pri-2012 Mortality Tables. Both MP-2019 and Pri-2012 reflect decrements in age 65 life expectancy which, when adopted by sponsors and regulators, will generally reduce (marginally) defined benefit plan liability valuations. In this article we very briefly…Read More

De-risking in 2019

In this article we discuss how changes in interest rates, Pension Benefit Guaranty Corporation premiums and mortality assumptions may affect sponsor decisions to de-risk (or not de-risk) defined benefit plan liabilities in 2019. For purposes of this article, by de-risking we mean paying out a participant’s benefit as a lump sum and thereby eliminating the…Read More

Current legislative outlook – January 2019

In this article we review the new committee leadership of the 116th Congress and note two significant Senate bipartisan retirement policy proposals introduced at the end of 2018. New committee leadership In the 116th Congress, the leadership of three of the four Congressional committees that oversee retirement policy has changed: Congressman Neal (D-MA) has taken…Read More

2018 Year in Review

In this article we review some of the significant 2018 retirement policy developments in legislation, regulation and litigation. Legislation If the 116th Congress takes up retirement policy, some (perhaps, many) of the bipartisan proposals that were considered by the current (115th) Congress will be on the table. The following is an inventory of some of…Read More