n-26-27.pdf

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Updated Static Mortality Tables for Defined Benefit Pension Plans for 2027

Notice 2026-27

PURPOSE

This notice specifies updated 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 static mortality
tables, which are being issued pursuant to the regulations under § 430(h)(3)(A)
of the Code, apply for purposes of calculating the funding target and other items
for valuation dates occurring during the 2027 calendar year.

This notice also includes a modified unisex version of the mortality tables
for use in determining minimum present value under § 417(e)(3) and section
205(g)(3) of ERISA for distributions with annuity starting dates that occur during
stability periods beginning in the 2027 calendar year.

BACKGROUND

Mortality Tables for Purposes of § 430

Section 412 of the Code provides minimum funding requirements that
generally apply for defined benefit plans. Pursuant to § 412(a)(2), § 430 sets
forth the minimum funding requirements that apply to a defined benefit plan
(other than a multiemployer plan described in § 414(f) or a CSEC plan described
in § 414(y)). 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
§ 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 § 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.
1
Those tables are to be based on the actual experience of pension plans
and projected trends in that experience. In accordance with that standard, the
Department of the Treasury and the Internal Revenue Service issued

1
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 § 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.

2
§ 1.430(h)(3)-1 to provide base mortality tables and mortality improvement rates
that apply for valuation dates occurring on or after January 1, 2024.

Section 1.430(h)(3)-1(a)(1) permits the projection of mortality improvement
to be applied in either of two ways: through use of generational mortality tables or
through use of static mortality tables (available only to small plans described in
§ 1.430(h)-1(c)(1)(ii)) that are updated annually to reflect expected improvements
in mortality. Note 1 to § 1.430(h)(3)-1(c)(1)(iv) states that the static mortality
tables for valuation dates occurring in calendar years starting with 2025 will be
published in the Internal Revenue Bulletin.

Application of § 430 Mortality Tables to Other Funding Rules

Section 431 provides the minimum funding standards for multiemployer
plans that are subject to § 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 § 431(c)(6)(B). Section 1.431(c)(6)-1 provides that
the same mortality assumptions that apply for purposes of § 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, either the generational mortality tables or the static mortality tables are
permitted to be used without regard to whether the plan is a small plan.

Section 433 provides the minimum funding standards for CSEC plans.
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
§ 433(c)(7)(C). Section 1.433(h)(3)-1(a) provides that the mortality tables
described in § 430(h)(3)(A) are to be used to determine current liability under
§ 433(c)(7)(C). For this purpose, either the generational mortality tables or the
static mortality tables are permitted to be used without regard to whether the plan
is a small plan.

Application of Mortality Tables for Minimum Present Value Requirements
under § 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 § 430(h)(3)(A) (without regard to § 430(h)(3)(C) or (D)), modified
as appropriate by the Secretary. Under § 1.417(e)-1(d)(2)(i), the applicable
mortality table for a calendar year is the mortality table that is prescribed by the
Commissioner in guidance published in the Internal Revenue Bulletin.

3
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 TABLES FOR 2027

The static mortality tables that apply under § 430(h)(3)(A) for valuation
dates occurring during 2027 are set forth in the appendix to this notice. The
mortality rates in these tables have been developed using the methodology set
forth in § 1.430(h)(3)-1(c), the base mortality rates set forth in § 1.430(h)(3)-1(d),
and the mortality improvement rates that are incorporated by reference under
§ 1.430(h)(3)-1(b)(1)(iv)(A).

The static mortality table that applies under § 417(e)(3) for distributions
with annuity starting dates occurring during stability periods beginning in 2027 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
§ 430(h)(3)(A) for 2027 in accordance with the procedures set forth in
Rev. Rul. 2007-67.

Drafting Information

The principal author of this notice is Arslan Malik of the Office of the
Associate Chief Counsel (Employee Benefits, Exempt Organizations, and
Employment Taxes). For further information regarding this notice, contact Arslan
Malik at (202) 317-6700 (not a toll-free number).

4
APPENDIX

Mortality Tables for 2027

Valuation Dates Occurring During 2027 and
Distributions Subject to § 417(e)(3) with Annuity Starting Dates During
Stability Periods Beginning in 2027

Age Males Females Unisex
0
0.00348 0.00299

0.00324
1
0.00024 0.00021

0.00023
2
0.00016 0.00013

0.00015
3
0.00012 0.00010

0.00011
4
0.00010 0.00007

0.00009
5
0.00009 0.00007

0.00008
6
0.00008 0.00006

0.00007
7
0.00007 0.00006

0.00007
8
0.00006 0.00005

0.00006
9
0.00005 0.00005

0.00005
10
0.00005 0.00005

0.00005
11
0.00005 0.00005

0.00005
12
0.00008 0.00006

0.00007
13
0.00010 0.00007

0.00009
14
0.00013 0.00008

0.00011
15
0.00017 0.00008

0.00013
16
0.00021 0.00009

0.00015
17
0.00024 0.00009

0.00017
18
0.00028 0.00009

0.00019
19
0.00033 0.00010

0.00022
20
0.00035 0.00010

0.00023
21
0.00036 0.00010

0.00023
22
0.00036 0.00011

0.00024
23
0.00037 0.00012

0.00025
24
0.00038 0.00013

0.00026
25
0.00039 0.00014

0.00027
26
0.00040 0.00014

0.00027
27
0.00042 0.00015

0.00029
28
0.00043 0.00016

0.00030
29
0.00045 0.00016

0.00031
30
0.00048 0.00018

0.00033
31
0.00049 0.00019

0.00034
32
0.00052 0.00020

0.00036
33
0.00055 0.00022

0.00039
34
0.00057 0.00023

0.00040

5

Age Males Females Unisex
35
0.00060 0.00025

0.00043
36
0.00063 0.00028

0.00046
37
0.00065 0.00030

0.00048
38
0.00068 0.00032

0.00050
39
0.00071 0.00034

0.00053
40
0.00072 0.00036

0.00054
41
0.00073 0.00038

0.00056
42
0.00075 0.00040

0.00058
43
0.00077 0.00042

0.00060
44
0.00079 0.00044

0.00062
45
0.00081 0.00047

0.00064
46
0.00086 0.00050

0.00068
47
0.00090 0.00054

0.00072
48
0.00095 0.00058

0.00077
49
0.00102 0.00062

0.00082
50
0.00110 0.00069

0.00090
51
0.00121 0.00078

0.00100
52
0.00134 0.00088

0.00111
53
0.00150 0.00099

0.00125
54
0.00169 0.00112

0.00141
55
0.00200 0.00135

0.00168
56
0.00247 0.00166

0.00207
57
0.00289 0.00190

0.00240
58
0.00336 0.00220

0.00278
59
0.00388 0.00253

0.00321
60
0.00447 0.00292

0.00370
61
0.00511 0.00336

0.00424
62
0.00600 0.00400

0.00500
63
0.00687 0.00467

0.00577
64
0.00756 0.00524

0.00640
65
0.00841 0.00605

0.00723
66
0.00934 0.00691

0.00813
67
0.01030 0.00767

0.00899
68
0.01135 0.00851

0.00993
69
0.01253 0.00945

0.01099
70
0.01387 0.01057

0.01222
71
0.01539 0.01189

0.01364
72
0.01709 0.01336

0.01523
73
0.01903 0.01504

0.01704
74
0.02124 0.01701

0.01913
75
0.02377 0.01929

0.02153
76
0.02666 0.02188

0.02427

6

Age Males Females Unisex
77
0.02997 0.02481

0.02739
78
0.03380 0.02811

0.03096
79
0.03821 0.03179

0.03500
80
0.04339 0.03628

0.03984
81
0.04892 0.04061

0.04477
82
0.05518 0.04542

0.05030
83
0.06224 0.05081

0.05653
84
0.07026 0.05688

0.06357
85
0.07945 0.06376

0.07161
86
0.08986 0.07172

0.08079
87
0.10157 0.08080

0.09119
88
0.11468 0.09121

0.10295
89
0.12914 0.10288

0.11601
90
0.14488 0.11589

0.13039
91
0.16147 0.12933

0.14540
92
0.17846 0.14336

0.16091
93
0.19580 0.15794

0.17687
94
0.21320 0.17284

0.19302
95
0.23056 0.18815

0.20936
96
0.24888 0.20450

0.22669
97
0.26748 0.22151

0.24450
98
0.28640 0.23930

0.26285
99
0.30578 0.25773

0.28176
100
0.32531 0.27674

0.30103
101
0.34486 0.29618

0.32052
102
0.36407 0.31568

0.33988
103
0.38291 0.33516

0.35904
104
0.40141 0.35455

0.37798
105
0.41901 0.37374

0.39638
106
0.43621 0.39250

0.41436
107
0.45247 0.41085

0.43166
108
0.46810 0.42839

0.44825
109
0.48303 0.44520

0.46412
110
0.49240 0.46130

0.47685
111
0.49374 0.47665

0.48520
112
0.49512 0.49112

0.49312
113
0.49651 0.49731

0.49691
114
0.49795 0.49840

0.49818
115
0.49930 0.49950

0.49940
116
0.49960 0.49975

0.49968
117
0.49980 0.49985

0.49983
118
0.49985 0.50000

0.49993

7

Age Males Females Unisex
119
0.50000 0.50000

0.50000
120
1.00000 1.00000

1.00000