2023 Funding Mortality Tables – December Update

IRS Notice 2022-22

On April 27th, the IRS issued Notice 2022-22 announcing the 2023 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 table or AMT). The notice published the static mortality tables for plans with valuation dates in 2023 and 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-2021 projection scales for valuation dates in 2023.

April 28, 2022 Proposed Regulations

The proposed regulation includes a number of changes, including a change to the mortality tables that would be used for funding calculations for plan years beginning in 2023.

A complete summary of the proposed regulation is included in our 2023 Mortality Tables Update and Proposed Regulation Changes to Funding Mortality Tables article.

December 8, 2022 IRS Announcement Regarding the Proposed Regulations

On December 8, 2022, the IRS and Department of the Treasury announced that they would not finalize the proposed regulations. No additional commentary or explanation was provided with the announcement.

Analysis

As a result of the December 8 announcement, the 2023 funding mortality tables included in IRS Notice 2022-22 will apply for 2023 valuations.

ASC Resources

The 2023 static and applicable mortality tables published in Notice 2022-22, 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-2021 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, PPA Mortality Tables Import Instructions.pdf, which provides an overview of the tables available for download. A second document available from the same section, DB Tables – Generational Mortality Projection Documentation.pdf, provides background on generational mortality tables.

Please refer to our May 2022 Actuaries Update for our initial analysis on IRS Notice 2022-22 and Mortality Tables.


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