n-22-22.pdf

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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/exper ience-
studies/2021/2021-mp-scale-r epor t.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 F emale F emale F emale

Unisex
Age
2023
Non-
Annuitant
T able
2023
Annuitant
T able
2023 Optional
Combined
Table for
Small Plans
2023
Non-
Annuitant
T able
2023
Annuitant
T able
2023
Optional
Combined
Table for
Small Plans
2023 Table
for
Distributions
Subject to
§ 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 0.000143 0.000143 0.000143

0.000232
31 0.000342 0.000342 0.000342 0.000156 0.000156 0.000156

0.000249
32 0.000366 0.000366 0.000366 0.000171 0.000171 0.000171

0.000269
33 0.000391 0.000391 0.000391 0.000186 0.000186 0.000186

0.000289
34 0.000414 0.000414 0.000414 0.000202 0.000202 0.000202

0.000308
35 0.000436 0.000436 0.000436 0.000217 0.000217 0.000217

0.000327
36 0.000455 0.000455 0.000455 0.000231 0.000231 0.000231

0.000343
37 0.000474 0.000474 0.000474 0.000247 0.000247 0.000247

0.000361
38 0.000494 0.000494 0.000494 0.000263 0.000263 0.000263

0.000379
39 0.000516 0.000516 0.000516 0.000281 0.000281 0.000281

0.000399
40 0.000542 0.000542 0.000542 0.000299 0.000299 0.000299

0.000421
41 0.000570 0.000576 0.000570 0.000318 0.000316 0.000318

0.000444
42 0.000603 0.000656 0.000603 0.000339 0.000359 0.000339

0.000471
43 0.000644 0.000779 0.000646 0.000363 0.000425 0.000363

0.000505
44 0.000693 0.000943 0.000698 0.000391 0.000516 0.000391

0.000545
45 0.000750 0.001146 0.000759 0.000423 0.000631 0.000425

0.000592
46 0.000817 0.001390 0.000833 0.000459 0.000771 0.000464

0.000649
47 0.000891 0.001675 0.000916 0.000500 0.000939 0.000511

0.000714
48 0.000973 0.002004 0.001010 0.000546 0.001138 0.000566

0.000788
49 0.001066 0.002383 0.001120 0.000596 0.001371 0.000628

0.000874
50 0.001169 0.002817 0.001244 0.000654 0.001642 0.000704

0.000974
51 0.001284 0.003008 0.001370 0.000719 0.001733 0.000778

0.001074
52 0.001416 0.003218 0.001540 0.000795 0.001848 0.000873

0.001207
53 0.001556 0.003426 0.001734 0.000883 0.001994 0.000988

0.001361
54 0.001714 0.003652 0.001964 0.000985 0.002170 0.001126

0.001545
55 0.001898 0.003903 0.002312 0.001100 0.002380 0.001343

0.001828
56 0.002115 0.004189 0.002773 0.001228 0.002624 0.001627

0.002200
57 0.002374 0.004515 0.003183 0.001370 0.002907 0.001893

0.002538
58 0.002685 0.004885 0.003653 0.001525 0.003225 0.002184

0.002919
59 0.003051 0.005302 0.004173 0.001690 0.003580 0.002514

0.003344
60 0.003483 0.005773 0.004773 0.001865 0.003965 0.002905

0.003839
61 0.003980 0.006292 0.005445 0.002050 0.004381 0.003403

0.004424
62 0.004550 0.006866 0.006195 0.002245 0.004825 0.003947

0.005071
63 0.005206 0.007514 0.007030 0.002456 0.005304 0.004598

0.005814
64 0.005945 0.008227 0.007852 0.002686 0.005826 0.005212

0.006532
65 0.006759 0.008992 0.008731 0.002929 0.006378 0.005879

0.007305
66 0.007575 0.009837 0.009683 0.003262 0.006994 0.006665

0.008174
67 0.008460 0.010755 0.010643 0.003628 0.007673 0.007417

0.009030
68 0.009432 0.011768 0.011684 0.004043 0.008438 0.008228

0.009956
69 0.010530 0.012926 0.012857 0.004516 0.009314 0.009135

0.010996
70 0.011740 0.014211 0.014147 0.005055 0.010311 0.010133

0.012140
71 0.013105 0.015669 0.015609 0.005670 0.011443 0.011267

0.013438
72 0.014651 0.017334 0.017278 0.006377 0.012744 0.012571

0.014925
73 0.016393 0.019222 0.019171 0.007184 0.014219 0.014052

0.016612

7
74 0.018381 0.021392 0.021345 0.008110 0.015905 0.015747

0.018546
75 0.020625 0.023860 0.023818 0.009171 0.017832 0.017685

0.020752
76 0.023153 0.026669 0.026632 0.010382 0.020029 0.019898

0.023265
77 0.026011 0.029884 0.029854 0.011771 0.022555 0.022445

0.026150
78 0.029220 0.033542 0.033520 0.013355 0.025456 0.025374

0.029447
79 0.032800 0.037690 0.037677 0.015162 0.028794 0.028748

0.033213
80 0.036804 0.042409 0.042409 0.017202 0.032611 0.032611

0.037510
81 0.038779 0.047564 0.047564 0.018997 0.036875 0.036875

0.042220
82 0.042471 0.053493 0.053493 0.022399 0.041763 0.041763

0.047628
83 0.047875 0.060210 0.060210 0.027462 0.047381 0.047381

0.053796
84 0.055112 0.067926 0.067926 0.034254 0.053827 0.053827

0.060877
85 0.064208 0.076650 0.076650 0.042829 0.061163 0.061163

0.068907
86 0.075247 0.086534 0.086534 0.053201 0.069445 0.069445

0.077990
87 0.088214 0.097631 0.097631 0.065455 0.078806 0.078806

0.088219
88 0.103217 0.110080 0.110080 0.079602 0.089236 0.089236

0.099658
89 0.120285 0.123982 0.123982 0.095631 0.100765 0.100765

0.112374
90 0.139404 0.139404 0.139404 0.113553 0.113553 0.113553

0.126479
91 0.155723 0.155723 0.155723 0.127432 0.127432 0.127432

0.141578
92 0.172495 0.172495 0.172495 0.142079 0.142079 0.142079

0.157287
93 0.189416 0.189416 0.189416 0.157436 0.157436 0.157436

0.173426
94 0.206322 0.206322 0.206322 0.173120 0.173120 0.173120

0.189721
95 0.222904 0.222904 0.222904 0.189259 0.189259 0.189259

0.206082
96 0.241036 0.241036 0.241036 0.206635 0.206635 0.206635

0.223836
97 0.259609 0.259609 0.259609 0.224625 0.224625 0.224625

0.242117
98 0.278783 0.278783 0.278783 0.243330 0.243330 0.243330

0.261057
99 0.298557 0.298557 0.298557 0.262575 0.262575 0.262575

0.280566
100 0.318715 0.318715 0.318715 0.282507 0.282507 0.282507

0.300611
101 0.339088 0.339088 0.339088 0.302631 0.302631 0.302631

0.320860
102 0.359387 0.359387 0.359387 0.323025 0.323025 0.323025

0.341206
103 0.379567 0.379567 0.379567 0.343404 0.343404 0.343404

0.361486
104 0.399139 0.399139 0.399139 0.363591 0.363591 0.363591

0.381365
105 0.417508 0.417508 0.417508 0.383361 0.383361 0.383361

0.400435
106 0.435423 0.435423 0.435423 0.402637 0.402637 0.402637

0.419030
107 0.452373 0.452373 0.452373 0.420905 0.420905 0.420905

0.436639
108 0.468127 0.468127 0.468127 0.438323 0.438323 0.438323

0.453225
109 0.483049 0.483049 0.483049 0.454656 0.454656 0.454656

0.468853
110 0.496973 0.496973 0.496973 0.469951 0.469951 0.469951

0.483462
111 0.501966 0.501966 0.501966 0.484210 0.484210 0.484210

0.493088
112 0.501208 0.501208 0.501208 0.497359 0.497359 0.497359

0.499284
113 0.500603 0.500603 0.500603 0.502764 0.502764 0.502764

0.501684
114 0.500001 0.500001 0.500001 0.501052 0.501052 0.501052

0.500527
115 0.499300 0.499300 0.499300 0.499500 0.499500 0.499500

0.499400
116 0.499600 0.499600 0.499600 0.499750 0.499750 0.499750

0.499675
117 0.499800 0.499800 0.499800 0.499850 0.499850 0.499850

0.499825

8
118 0.499950 0.499950 0.499950 0.500000 0.500000 0.500000

0.499975
119 0.500000 0.500000 0.500000 0.500000 0.500000 0.500000

0.500000
120 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000

1.000000