Update from ASC Actuaries

Update from ASC Actuaries

2020-2021 Mortality Tables Update

In 2019, the IRS issued two notices announcing mortality tables to be used in the calculations of the funding results under IRC 430(h)(3)(A) and associated 1.430(h)(3)-1 used to determine the minimum contribution and maximum deduction and the IRC Section 417(e) minimum lump sum (Applicable Mortality).

IRS Notice 2019-26 published the 2020 static mortality tables for plans with valuation dates in 2020. The notice also referenced the generational mortality using the 2006 base tables (from the RP-2014 Mortality Tables Report, as revised in November 2014) with the MP-2018 projection scales for valuation dates in 2020.

IRS Notice 2019-67 published the 2021 static mortality tables for plans with valuation dates in 2021. The notice also referenced the generational mortality using the 2006 base tables (from the RP-2014 Mortality Tables Report, as revised in November 2014) with the MP-2019 projection scales for valuation dates in 2021.

The latest notice also included a request for comments on considerations with respect to updating the base tables to be used in light of the recent publication of the Pri-2012 Private Retirement Plans Mortality Tables Report.

The 2020 and 2021 static and Applicable mortality, as well as the 2006 Base tables, are available for download on the ASC website by logging into the Client Support Center and accessing the Updates & Downloads tab. The MP-2018 and MP-2019 projection scales are available to users who are current on patches and do not require a manual download to apply to your system. We recommend users also select to download and review the step by step instructions in the PPA Mortality Tables Import Instructions.pdf which provides an overview of the tables available for download. A second document available from the same section is the DB Tables – Generational Mortality Projection Documentation.pdf which provides background on generational mortality tables.