The IRS on April 27 issued proposed regulations that prescribe mortality tables to be used by most pension plans. The proposed regulations affect participants in, beneficiaries of, employers maintaining, and administrators of certain defined benefit plans.
The tables specify the probability of survival year-by-year for an individual based on age, gender and other factors. Together with other actuarial assumptions, this information is used to calculate the present value of a stream of expected future benefit payments in order to determine the minimum funding requirements for a pension plan.
These mortality tables are also relevant to determining the minimum required amount of a lump-sum distribution from such a plan. In addition, the proposed regulations update the requirements a plan sponsor must meet in order to obtain IRS approval to use mortality tables specific to the plan for minimum funding purposes (instead of the generally applicable mortality tables).
The IRS will hold a public hearing on the proposed regulations on June 28, 2022 in the auditorium in the Internal Revenue Building at 1111 Constitution Avenue, NW, Washington, DC. It will accept comments on the proposed regulations and outlines of topics to be discussed at the hearing through June 9, 2022.
Submissions should be sent to:
CC:PA:LPD:PR (REG-106384-20)
Room 5203
Internal Revenue Service
PO Box 7604
Ben Franklin Station
Washington, DC 20044
Submissions also may be sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov. Note that they concern IRS REG-112324-15).
The proposed regulations will appear in the Federal Register of April 28, 2022.
- Log in to post comments