Updated Mortality Improvement Rates and Static Mortality


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Updated Mortality Improvement Rates and Static Mortality Tables for Defined Benefit Pension Plans for 2023
Notice 2022-22
PURPOSE
This notice specifies updated mortality improvement rates and static mortality tables to be used for defined benefit pension plans under § 430(h)(3)(A) of the Internal Revenue Code (Code) and section 303(h)(3)(A) of the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, as amended (ERISA). These updated mortality improvement rates and static mortality tables, which are being issued pursuant to the regulations under section 430(h)(3)(A) of the Code, apply for purposes of determining present value and making any other computation under section 430 for valuation dates occurring during the 2023 calendar year.
This notice also includes a modified unisex version of the mortality tables for use in determining minimum present value under section 417(e)(3) of the Code and section 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in the 2023 calendar year.
BACKGROUND
Section 412 of the Code provides minimum funding requirements that generally apply for defined benefit plans. Section 412(a)(2) provides that section 430 sets forth the minimum funding requirements that apply to defined benefit plans that are not multiemployer plans or CSEC plans. Section 430(a) defines the minimum required contribution for such a plan by reference to the plan’s funding target for the plan year. Under section 430(d)(1), a plan’s funding target for a plan year generally is the present value of all benefits accrued or earned under the plan as of the first day of that plan year.
Section 430(h)(3) provides rules regarding the mortality tables that generally are used under section 430. Under section 430(h)(3)(A), except as provided in section 430(h)(3)(C) or (D), the Secretary is to prescribe by regulation mortality tables to be used in determining any present value or making any computation under section 430. Those tables are to be based on the actual experience of pension plans and projected trends in that experience. Section 430(h)(3)(B) requires the Secretary to revise any table in effect under section 430(h)(3)(A) at least every 10 years to reflect the actual experience of pension plans and projected trends in that experience.
Section 430(h)(3)(C) provides that, upon request by a plan sponsor and approval by the Secretary, substitute mortality tables that meet the applicable requirements may be used in lieu of the standard mortality tables provided under

2
section 430(h)(3)(A). Section 430(h)(3)(D) provides for the use of separate mortality tables with respect to certain individuals who are entitled to benefits on account of disability.
Mortality Tables for Purposes of § 430
Treas. Reg. § 1.430(h)(3)-1 provides rules regarding the mortality tables used under section 430(h)(3)(A) for plan years beginning on or after January 1, 2018. The mortality tables used under section 430(h)(3)(A) are based on the tables in the RP-2014 Mortality Tables Report,1 adjusted for mortality improvement. Section 1.430(h)(3)-1(d) sets forth base mortality tables with a base year of 2006.
Section 1.430(h)(3)-1(a) permits plan sponsors to apply the projection of mortality improvement in one of two ways: through use of static tables that are updated annually to reflect expected improvements in mortality or through use of generational tables. Section 1.430(h)(3)-1(a)(2)(i)(C) provides that, for valuation dates occurring in calendar years after 2018, updated mortality improvement rates that take into account new data for mortality improvement trends of the general population, along with static mortality tables that reflect those updated mortality improvement rates, will be provided through guidance published in the Internal Revenue Bulletin.2
Treas. Reg. § 1.430(h)(3)-2 provides rules for the use of substitute mortality tables that are based on the mortality experience of the plan. Pursuant to § 1.430(h)(3)-2(c)(3)(ii), substitute mortality tables are developed using the mortality improvement rates used under § 1.430(h)(3)-1.
Application of These Tables for Other Funding Rules
Section 431 provides the minimum funding standards for multiemployer plans described in section 414(f) that are subject to section 412. Section 431(c)(6)(D)(iv) provides that the Secretary may by regulation prescribe mortality tables to be used in determining current liability for purposes of section 431(c)(6)(B). Treas. Reg. § 1.431(c)(6)-1 provides that the same mortality assumptions that apply for purposes of section 430(h)(3)(A) and § 1.430(h)(3)1(a)(2) are used to determine a multiemployer plan’s current liability for purposes of applying the full-funding rules of § 431(c)(6). For this purpose, a multiemployer plan may apply either the static mortality tables or the generational mortality tables (as updated pursuant to § 1.430(h)(3)-1(a)(2)(i)(C) and (a)(3)).
1 The RP-2014 Mortality Tables Report, as revised November 2014, is available at https://www.soa.org/Files/Research/Exp-Study/research-2014-rp-report.pdf. 2 Notice 2018-2, 2018-2 IRB 281, Notice 2019-26, 2019-15 IRB 943, Notice 2019-67, 2019-52 IRB 1510, and Notice 2020-85, 2020-51 IRB 1645, provide mortality improvement rates and static mortality tables that apply for valuation dates occurring during 2019, 2020, 2021, and 2022, respectively.

3
Section 433 provides the minimum funding standards for CSEC plans described in section 414(y). Section 433(h)(3)(B)(i) provides that the Secretary may by regulation prescribe mortality tables to be used in determining current liability for purposes of section 433(c)(7)(C). Treas. Reg. § 1.433(h)(3)-1(a) provides that the mortality tables described in section 430(h)(3)(A) are to be used to determine current liability under section 433(c)(7)(C).
Application of Mortality Tables for Minimum Present Value Requirements under Section 417(e)(3)
Section 417(e)(3) generally provides that the present value of certain accelerated forms of benefit under a qualified pension plan (including single-sum distributions) must not be less than the present value of the accrued benefit using applicable interest rates and the applicable mortality table. Section 417(e)(3)(B) defines the term “applicable mortality table” as the mortality table specified for the plan year under section 430(h)(3)(A) (without regard to section 430(h)(3)(C) or (D)), modified as appropriate by the Secretary.
Rev. Rul. 2007-67, 2007-2 CB 1047, provides that, except as otherwise stated in future guidance, the applicable mortality table under section 417(e)(3) is a static mortality table set forth in published guidance that is developed based on a fixed blend of 50 percent of the static male combined mortality rates and 50 percent of the static female combined mortality rates used under § 1.430(h)(3)-1. Rev. Rul. 2007-67 also provides that the applicable mortality table for a calendar year applies to distributions with annuity starting dates that occur during stability periods that begin during that calendar year.
MORTALITY IMPROVEMENT RATES FOR 2023
The mortality improvement rates for valuation dates occurring during 2023 are the mortality improvement rates in the Mortality Improvement Scale MP-2021 Report (issued by the Retirement Plans Experience Committee (RPEC) of the Society of Actuaries and available at https://www.soa.org/globalassets/assets/files/resources/experiencestudies/2021/2021-mp-scale-report.pdf).
STATIC MORTALITY TABLES FOR 2023
The static mortality tables that apply under section 430(h)(3)(A) for valuation dates occurring during 2023 are set forth in the appendix to this notice. The mortality rates in these tables have been developed from the methodology and base mortality rates set forth in § 1.430(h)(3)-1(c) and (d) using the mortality improvement rates specified in the previous section of this notice.
The static mortality table that applies under section 417(e)(3) for distributions with annuity starting dates occurring during stability periods

4
beginning in 2023 is set forth in the appendix to this notice in the column labeled “Unisex.” The mortality rates in this table are derived from the mortality tables specified under section 430(h)(3)(A) for 2023 in accordance with the procedures set forth in Rev. Rul. 2007-67.
Drafting Information
The principal authors of this notice are Arslan Malik and Linda S. F. Marshall of the Office of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For further information regarding this notice, contact Arslan Malik or Linda Marshall at (202) 317-6700 (not a toll-free number).

5
APPENDIX
Mortality Tables for 2023
Valuation Dates Occurring During 2023 and Distributions Subject to Section 417(e)(3) with Annuity Starting Dates
During Stability Periods Beginning in 2023

Male

Male

Male

Female Female

Female

Unisex

2023

2023 Table

2023

2023 Optional

2023

Optional

for

Non-

2023

Combined

Non-

2023

Combined

Distributions

Annuitant Annuitant

Table for

Annuitant Annuitant Table for

Subject to

Age

Table

Table

Small Plans

Table

Table Small Plans

§ 417(e)(3)

0

0.002575

0.002575

0.002575

0.002261 0.002261

0.002261

0.002418

1

0.000151

0.000151

0.000151

0.000142 0.000142

0.000142

0.000147

2

0.000104

0.000104

0.000104

0.000094 0.000094

0.000094

0.000099

3

0.000087

0.000087

0.000087

0.000071 0.000071

0.000071

0.000079

4

0.000069

0.000069

0.000069

0.000054 0.000054

0.000054

0.000062

5

0.000061

0.000061

0.000061

0.000050 0.000050

0.000050

0.000056

6

0.000056

0.000056

0.000056

0.000046 0.000046

0.000046

0.000051

7

0.000050

0.000050

0.000050

0.000043 0.000043

0.000043

0.000047

8

0.000043

0.000043

0.000043

0.000041 0.000041

0.000041

0.000042

9

0.000035

0.000035

0.000035

0.000038 0.000038

0.000038

0.000037

10

0.000030

0.000030

0.000030

0.000036 0.000036

0.000036

0.000033

11

0.000032

0.000032

0.000032

0.000038 0.000038

0.000038

0.000035

12

0.000048

0.000048

0.000048

0.000044 0.000044

0.000044

0.000046

13

0.000065

0.000065

0.000065

0.000051 0.000051

0.000051

0.000058

14

0.000081

0.000081

0.000081

0.000057 0.000057

0.000057

0.000069

15

0.000097

0.000097

0.000097

0.000063 0.000063

0.000063

0.000080

16

0.000115

0.000115

0.000115

0.000068 0.000068

0.000068

0.000092

17

0.000133

0.000133

0.000133

0.000073 0.000073

0.000073

0.000103

18

0.000153

0.000153

0.000153

0.000078 0.000078

0.000078

0.000116

19

0.000174

0.000174

0.000174

0.000081 0.000081

0.000081

0.000128

20

0.000194

0.000194

0.000194

0.000082 0.000082

0.000082

0.000138

21

0.000221

0.000221

0.000221

0.000085 0.000085

0.000085

0.000153

22

0.000247

0.000247

0.000247

0.000088 0.000088

0.000088

0.000168

23

0.000268

0.000268

0.000268

0.000093 0.000093

0.000093

0.000181

24

0.000282

0.000282

0.000282

0.000097 0.000097

0.000097

0.000190

25

0.000276

0.000276

0.000276

0.000101 0.000101

0.000101

0.000189

26

0.000276

0.000276

0.000276

0.000107 0.000107

0.000107

0.000192

27

0.000280

0.000280

0.000280

0.000114 0.000114

0.000114

0.000197

28

0.000289

0.000289

0.000289

0.000121 0.000121

0.000121

0.000205

29

0.000303

0.000303

0.000303

0.000130 0.000130

0.000130

0.000217

6

30

0.000321

0.000321

0.000321

31

0.000342

0.000342

0.000342

32

0.000366

0.000366

0.000366

33

0.000391

0.000391

0.000391

34

0.000414

0.000414

0.000414

35

0.000436

0.000436

0.000436

36

0.000455

0.000455

0.000455

37

0.000474

0.000474

0.000474

38

0.000494

0.000494

0.000494

39

0.000516

0.000516

0.000516

40

0.000542

0.000542

0.000542

41

0.000570

0.000576

0.000570

42

0.000603

0.000656

0.000603

43

0.000644

0.000779

0.000646

44

0.000693

0.000943

0.000698

45

0.000750

0.001146

0.000759

46

0.000817

0.001390

0.000833

47

0.000891

0.001675

0.000916

48

0.000973

0.002004

0.001010

49

0.001066

0.002383

0.001120

50

0.001169

0.002817

0.001244

51

0.001284

0.003008

0.001370

52

0.001416

0.003218

0.001540

53

0.001556

0.003426

0.001734

54

0.001714

0.003652

0.001964

55

0.001898

0.003903

0.002312

56

0.002115

0.004189

0.002773

57

0.002374

0.004515

0.003183

58

0.002685

0.004885

0.003653

59

0.003051

0.005302

0.004173

60

0.003483

0.005773

0.004773

61

0.003980

0.006292

0.005445

62

0.004550

0.006866

0.006195

63

0.005206

0.007514

0.007030

64

0.005945

0.008227

0.007852

65

0.006759

0.008992

0.008731

66

0.007575

0.009837

0.009683

67

0.008460

0.010755

0.010643

68

0.009432

0.011768

0.011684

69

0.010530

0.012926

0.012857

70

0.011740

0.014211

0.014147

71

0.013105

0.015669

0.015609

72

0.014651

0.017334

0.017278

73

0.016393

0.019222

0.019171

0.000143 0.000156 0.000171 0.000186 0.000202 0.000217 0.000231 0.000247 0.000263 0.000281 0.000299 0.000318 0.000339 0.000363 0.000391 0.000423 0.000459 0.000500 0.000546 0.000596 0.000654 0.000719 0.000795 0.000883 0.000985 0.001100 0.001228 0.001370 0.001525 0.001690 0.001865 0.002050 0.002245 0.002456 0.002686 0.002929 0.003262 0.003628 0.004043 0.004516 0.005055 0.005670 0.006377 0.007184

0.000143 0.000156 0.000171 0.000186 0.000202 0.000217 0.000231 0.000247 0.000263 0.000281 0.000299 0.000316 0.000359 0.000425 0.000516 0.000631 0.000771 0.000939 0.001138 0.001371 0.001642 0.001733 0.001848 0.001994 0.002170 0.002380 0.002624 0.002907 0.003225 0.003580 0.003965 0.004381 0.004825 0.005304 0.005826 0.006378 0.006994 0.007673 0.008438 0.009314 0.010311 0.011443 0.012744 0.014219

0.000143 0.000156 0.000171 0.000186 0.000202 0.000217 0.000231 0.000247 0.000263 0.000281 0.000299 0.000318 0.000339 0.000363 0.000391 0.000425 0.000464 0.000511 0.000566 0.000628 0.000704 0.000778 0.000873 0.000988 0.001126 0.001343 0.001627 0.001893 0.002184 0.002514 0.002905 0.003403 0.003947 0.004598 0.005212 0.005879 0.006665 0.007417 0.008228 0.009135 0.010133 0.011267 0.012571 0.014052

0.000232 0.000249 0.000269 0.000289 0.000308 0.000327 0.000343 0.000361 0.000379 0.000399 0.000421 0.000444 0.000471 0.000505 0.000545 0.000592 0.000649 0.000714 0.000788 0.000874 0.000974 0.001074 0.001207 0.001361 0.001545 0.001828 0.002200 0.002538 0.002919 0.003344 0.003839 0.004424 0.005071 0.005814 0.006532 0.007305 0.008174 0.009030 0.009956 0.010996 0.012140 0.013438 0.014925 0.016612

7

74

0.018381

0.021392

0.021345

75

0.020625

0.023860

0.023818

76

0.023153

0.026669

0.026632

77

0.026011

0.029884

0.029854

78

0.029220

0.033542

0.033520

79

0.032800

0.037690

0.037677

80

0.036804

0.042409

0.042409

81

0.038779

0.047564

0.047564

82

0.042471

0.053493

0.053493

83

0.047875

0.060210

0.060210

84

0.055112

0.067926

0.067926

85

0.064208

0.076650

0.076650

86

0.075247

0.086534

0.086534

87

0.088214

0.097631

0.097631

88

0.103217

0.110080

0.110080

89

0.120285

0.123982

0.123982

90

0.139404

0.139404

0.139404

91

0.155723

0.155723

0.155723

92

0.172495

0.172495

0.172495

93

0.189416

0.189416

0.189416

94

0.206322

0.206322

0.206322

95

0.222904

0.222904

0.222904

96

0.241036

0.241036

0.241036

97

0.259609

0.259609

0.259609

98

0.278783

0.278783

0.278783

99

0.298557

0.298557

0.298557

100

0.318715

0.318715

0.318715

101

0.339088

0.339088

0.339088

102

0.359387

0.359387

0.359387

103

0.379567

0.379567

0.379567

104

0.399139

0.399139

0.399139

105

0.417508

0.417508

0.417508

106

0.435423

0.435423

0.435423

107

0.452373

0.452373

0.452373

108

0.468127

0.468127

0.468127

109

0.483049

0.483049

0.483049

110

0.496973

0.496973

0.496973

111

0.501966

0.501966

0.501966

112

0.501208

0.501208

0.501208

113

0.500603

0.500603

0.500603

114

0.500001

0.500001

0.500001

115

0.499300

0.499300

0.499300

116

0.499600

0.499600

0.499600

117

0.499800

0.499800

0.499800

0.008110 0.009171 0.010382 0.011771 0.013355 0.015162 0.017202 0.018997 0.022399 0.027462 0.034254 0.042829 0.053201 0.065455 0.079602 0.095631 0.113553 0.127432 0.142079 0.157436 0.173120 0.189259 0.206635 0.224625 0.243330 0.262575 0.282507 0.302631 0.323025 0.343404 0.363591 0.383361 0.402637 0.420905 0.438323 0.454656 0.469951 0.484210 0.497359 0.502764 0.501052 0.499500 0.499750 0.499850

0.015905 0.017832 0.020029 0.022555 0.025456 0.028794 0.032611 0.036875 0.041763 0.047381 0.053827 0.061163 0.069445 0.078806 0.089236 0.100765 0.113553 0.127432 0.142079 0.157436 0.173120 0.189259 0.206635 0.224625 0.243330 0.262575 0.282507 0.302631 0.323025 0.343404 0.363591 0.383361 0.402637 0.420905 0.438323 0.454656 0.469951 0.484210 0.497359 0.502764 0.501052 0.499500 0.499750 0.499850

0.015747 0.017685 0.019898 0.022445 0.025374 0.028748 0.032611 0.036875 0.041763 0.047381 0.053827 0.061163 0.069445 0.078806 0.089236 0.100765 0.113553 0.127432 0.142079 0.157436 0.173120 0.189259 0.206635 0.224625 0.243330 0.262575 0.282507 0.302631 0.323025 0.343404 0.363591 0.383361 0.402637 0.420905 0.438323 0.454656 0.469951 0.484210 0.497359 0.502764 0.501052 0.499500 0.499750 0.499850

0.018546 0.020752 0.023265 0.026150 0.029447 0.033213 0.037510 0.042220 0.047628 0.053796 0.060877 0.068907 0.077990 0.088219 0.099658 0.112374 0.126479 0.141578 0.157287 0.173426 0.189721 0.206082 0.223836 0.242117 0.261057 0.280566 0.300611 0.320860 0.341206 0.361486 0.381365 0.400435 0.419030 0.436639 0.453225 0.468853 0.483462 0.493088 0.499284 0.501684 0.500527 0.499400 0.499675 0.499825

8

118

0.499950

0.499950

0.499950

119

0.500000

0.500000

0.500000

120

1.000000

1.000000

1.000000

0.500000 0.500000 1.000000

0.500000 0.500000 1.000000

0.500000 0.500000 1.000000

0.499975 0.500000 1.000000

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Updated Mortality Improvement Rates and Static Mortality