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Notice 2023-73


(back to all Revenue Rulings, or view IRB 2023-45)



Notice 2023-73

PURPOSE

This notice specifies a mortality table for use in determining minimum present value under § 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 2024 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 § 430 sets forth the minimum funding requirements that apply to defined benefit plans that are not multiemployer plans or CSEC plans.

Section 430(h)(3) provides rules regarding the mortality tables that generally are used under § 430. Under § 430(h)(3)(A), except as provided in § 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 § 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 § 430(h)(3)(A) at least every 10 years to reflect the actual experience of pension plans and projected trends in that experience.

In TD 9983 (88 FR 72357), the Department of the Treasury and Internal Revenue Service issued § 1.430(h)(3)-1, which provides updated mortality tables, mortality improvement rates, and static mortality tables for defined benefit pension plans, applicable for valuation dates occurring on or after January 1, 2024. Section 1.430(h)(3)-1(a) provides that the mortality tables to be used in determining present value under section 430 are the generational mortality tables described in § 1.430(h)(3)-1(b) and the static mortality tables for small plans described in § 1.430(h)(3)-1(c). The static mortality tables for small plans for valuation dates occurring in 2024, which consist of separate mortality rates that apply for each gender, are set forth in § 1.430(h)(3)-1(e).

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 § 430(h)(3)(A) (without regard to § 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 § 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.

STATIC MORTALITY TABLE APPLICABLE UNDER § 417(e)(3) FOR 2024

The static mortality table that applies under § 417(e)(3) for distributions with annuity starting dates occurring during stability periods beginning in 2024 is set forth in the appendix to this notice. The mortality rates in this table are derived from the mortality tables specified under § 430(h)(3)(A) for 2024 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).

APPENDIX Mortality Table for Distributions Subject to § 417(e)(3) with Annuity Starting Dates during Stability Periods That Begin in 2024

  2024 Table
  for
  Distributions
  Subject to
Age § 417(e)(3)
0 0.00331
1 0.00024
2 0.00015
3 0.00011
4 0.00010
5 0.00008
6 0.00008
7 0.00007
8 0.00006
9 0.00005
10 0.00006
11 0.00006
12 0.00007
13 0.00009
14 0.00011
15 0.00013
16 0.00015
17 0.00018
18 0.00020
19 0.00022
20 0.00023
21 0.00024
22 0.00024
23 0.00026
24 0.00027
25 0.00027
26 0.00028
27 0.00030
28 0.00030
29 0.00032
30 0.00034
31 0.00035
32 0.00037
33 0.00040
34 0.00042
35 0.00044
36 0.00047
37 0.00049
38 0.00051
39 0.00054
40 0.00056
41 0.00057
42 0.00059
43 0.00061
44 0.00063
45 0.00066
46 0.00070
47 0.00074
48 0.00079
49 0.00084
50 0.00092
51 0.00102
52 0.00114
53 0.00127
54 0.00144
55 0.00172
56 0.00212
57 0.00246
58 0.00285
59 0.00328
60 0.00379
61 0.00433
62 0.00512
63 0.00591
64 0.00656
65 0.00740
66 0.00832
67 0.00920
68 0.01017
69 0.01126
70 0.01251
71 0.01396
72 0.01559
73 0.01745
74 0.01959
75 0.02204
76 0.02485
77 0.02805
78 0.03169
79 0.03583
80 0.04079
81 0.04583
82 0.05150
83 0.05787
84 0.06508
85 0.07327
86 0.08259
87 0.09310
88 0.10497
89 0.11814
90 0.13262
91 0.14773
92 0.16329
93 0.17927
94 0.19542
95 0.21170
96 0.22904
97 0.24682
98 0.26513
99 0.28401
100 0.30325
101 0.32271
102 0.34211
103 0.36140
104 0.38043
105 0.39884
106 0.41675
107 0.43400
108 0.45044
109 0.46615
110 0.47865
111 0.48673
112 0.49436
113 0.49788
114 0.49885
115 0.49978
116 0.49990
117 0.49998
118 0.50000
119 0.50000
120 1.00000



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