Plan sponsors need to watch out for 2018. That's when they'll have to start using new IRS-provided mortality tables to determine minimum pension funding requirements and to calculate lump-sum pension payouts.
The Society for Human Resource Management reports that newly updated tables from the IRS will take effect next year. The new mortality tables for single-employer defined benefit plans were announced in IRS Notice 2017-60, which also includes a unisex table for determining minimum and maximum benefits amounts.
The IRS also issued Revenue Procedure 2017-55, with instructions for obtaining approval to use plan-specific and gender-based mortality tables for pension funding and related purposes instead of the standard mortality tables.
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