2018 Mortality Tables Update

The IRS issued final 1.430(h)(3)-1 regulations and, separately, Notice 2017-60 announcing the 2018 mortality tables to be used in the calculations of the:

  • Funding results used to determine the minimum contribution and maximum deduction.
  • IRC Section 417(e) minimum lump sum (Applicable Mortality).

The final 1.430(h)(3)-1 Mortality tables used to determine present value regulations published by the IRS reference the following mortality tables for use in funding target calculations:

  • Generational mortality using 2006 base tables with MP-2016 projection scales (mortality improvement)
  • Default static mortality tables for plans with valuation dates in 2018
  • Former 430 regulation static mortality tables required for plan years beginning in 2017 with valuation dates in 2018 and optional for plan years beginning in 2018. Actuaries should be aware that while the tables are referenced in the final regulation, the mortality rates themselves are published in Notice 2017-60.

The 2018 default static table is published in the final regulations. Notice 2017-60 published the 2018 static table specified by the former 430 regulation approach presented in the final regulations. In addition, the Notice includes the Applicable Mortality Table.

Users are advised to read both the final regulations and the Notice 2017-60 to fully understand the guidance, particularly with respect to which static mortality table is appropriate to use. ASC is programmed to handle generational mortality projection calculations and we would expect that users with non-calendar plan years should take careful note of which of the 2018 static tables are required to be used in your funding valuations.

The 2018 static (default and the version based on the former 430 methodology) and Applicable mortality, as well as the 2006 Base (and MP-2016 projection scales) tables, are available for download on the ASC website by logging into the Client Support Center and accessing the Updates & Downloads tab. We recommend users also select to download and review the step by step instructions PPA Mortality Tables Import Instructions.pdf which provides an overview of the tables available for download. The instructions also cover the naming convention used to distinguish between the default 2018 static tables and the 2018 static tables under the former 430 methodology.