IRS T.D.: Mortality Tables for Determining Present Value Under Defined Benefit Pension (IRC §430)

Final regulations prescribing mortality tables to be used for most defined benefit pension plans, the IRS released. The tables: (1) specify the probability of survival year-by-year for an individual based on age, gender, and other factors; (2) 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 the plan; and (3) are also relevant for determining the minimum required amount of a lump-sum distribution from such a plan. These regulations affect participants in, beneficiaries of, employers maintaining, and administrators of certain ...