IRS Updates Mortality Table Requirements for Pension Valuation

The IRS issued final regulations Tuesday updating the requirements pension sponsors must meet to use plan-specific mortality tables when calculating present value of all benefits accrued or earned under the plan.

Sponsors of single-employer pensions need to meet certain minimum funding requirements, calculating the value of all included benefits. Pension sponsors can use a specific mortality table instead of the generally applicable one to better reflect the specific mortality rates of the plan’s population, according to the updated regulations.

The updated regulations (RIN: 1545-BQ67), which provide a new methodology for developing those substitute mortality tables, will apply for plan ...