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Compliance March 25, 2019
New Mortality Tables Issued for 2020 DB Plan Calculations
The IRS has issued Notice 2019-26, which specifies updated mortality improvement rates and static mortality tables, as well as a modified unisex version of the mortality tables, to be used for defined benefit (DB) plans.
Reported by Rebecca Moore
The IRS has issued Notice 2019-26, which specifies updated mortality improvement rates and static mortality tables to be used for defined benefit (DB) plans under Section 430(h)(3)(A) of the Internal Revenue Code (Code) and section 303(h)(3)(A) of the Employee Retirement Income Security Act (ERISA).
The updated mortality improvement rates and static tables apply for purposes of calculating a DB plan’s funding target and other items for valuation dates occurring during the 2020 calendar year.
The 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 2020 calendar year.