Proposed regulations: Mortality tables for determining present value under defined benefit pension plans

Proposed to apply to plan years beginning on or after January 1, 2023

Defined benefit pension plans

The U.S. Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-106384-20) prescribing mortality tables to be used for most qualified retirement plans that are defined benefit pension plans.

The proposed regulations [PDF 281 KB] (10 pages as published in the Federal Register on April 28, 2022) are proposed to apply to plan years beginning on or after January 1, 2023.

The mortality tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. The tables are used (together with other actuarial assumptions) to calculate the present value of a stream of expected future benefit payments for purposes of determining the minimum funding requirements for a defined benefit plan. The tables are also relevant for determining the minimum required amount of a lump-sum distribution from such a plan.

Comments and outlines of topics to be discussed at the public hearing scheduled for June 28, 2022, at 10:00 a.m., must be received by June 9, 2022.

 

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