More retirement-related regulatory news for plan sponsors, including links to detailed information.
Proposed rule on mortality tables for determining present value under DB plans
The Internal Revenue Service (IRS) issued proposed regulations prescribing mortality tables to be used by most defined benefit (DB) pension plans. The tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. This information is 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.
These mortality tables are also relevant to determining the minimum required amount of a lump-sum distribution from such a plan.
To read the entire proposed rule, click here.
Updates to determination letter instructions for DB plans with risk transfer language
The IRS updated its posting regarding determination letter instructions for DB plans with risk transfer language.
To read the updated information, click here.