[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Proposed Rules]
[Pages 25161-25170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06330]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-106384-20]
RIN 1545-BQ14


Mortality Tables for Determining Present Value Under Defined 
Benefit Pension Plans

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

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SUMMARY: This document sets forth proposed regulations prescribing 
mortality tables to be used for most defined benefit pension plans. The 
tables specify the probability of survival year-by-year for an 
individual based on age, gender, and other factors. The tables are used 
(together with other actuarial assumptions) to calculate the present 
value of a stream of expected future benefit payments for purposes of 
determining the minimum funding requirements for the plan. These 
mortality tables are also relevant for determining the minimum required 
amount of a lump-sum distribution from such a plan. These regulations 
affect participants in, beneficiaries of, employers maintaining, and 
administrators of certain defined benefit pension plans.

DATES: Written or electronic comments must be received by June 9, 2022. 
A public hearing on these proposed regulations has been scheduled for 
June 28, 2022 at 10 a.m. EST. Requests to speak and outlines of topics 
to be discussed at the public hearing must be received by June 9, 2022. 
If no outlines are received by June 9, 2022, the public hearing will be 
cancelled. Requests to attend the public hearing must be received by 5 
p.m. EST on June 24, 2022. The telephonic hearing will be made 
accessible to people with disabilities. Requests for special assistance 
during the telephonic hearing must be received by June 23, 2022.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at www.regulations.gov (indicate IRS and REG-106384-
20) by following the online instructions for submitting comments. Once 
submitted to the Federal eRulemaking Portal, comments cannot be edited 
or withdrawn. The IRS expects to have limited personnel available to 
process public comments that are submitted on paper through mail. Until 
further notice, any comments submitted on paper will be considered to 
the extent practicable. The Department of the Treasury (the Treasury 
Department) and the IRS will publish for public availability any 
comment submitted electronically, and to the extent practicable on 
paper, to its public docket. Send paper submissions to: CC:PA:LPD:PR 
(REG-106384-20), room 5203, Internal Revenue Service, P.O. Box 7604, 
Ben Franklin Station, Washington, DC 20044.
    For those requesting to speak during the hearing, send an outline 
of topic submissions electronically via the Federal eRulemaking Portal 
at www.regulations.gov (indicate IRS and REG-106384-20).
    Individuals who want to testify (by telephone) at the public 
hearing must send an email to [email protected] to receive the 
telephone number and access code for the hearing. The subject line of 
the email must contain the regulation number REG-106384-20 and the word 
TESTIFY. For example, the subject line may say: Request to TESTIFY at 
Hearing for REG-106384-20. The email should include a copy of the 
speaker's public comments and outline of topics. Individuals who want 
to attend (by telephone) the public hearing must also send an email to 
[email protected] to receive the telephone number and access code 
for the hearing. The subject line of the email must contain the 
regulation number REG-106384-20 and the word ATTEND. For example, the 
subject line may say: Request to ATTEND Hearing for REG-106384-20. To 
request special assistance during the telephonic hearing contact the 
Publications and Regulations Branch of the Office of Associate Chief 
Counsel (Procedure and Administration) by sending an email to 
[email protected] (preferred) or by telephone at (202) 317-5177 
(not a toll-free number).

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Arslan 
Malik or Linda Marshall at (202) 317-6700; concerning submission of 
comments and outlines of topics for the public hearing, call Regina 
Johnson at (202) 317-6901 (not toll-free numbers) or email 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 412 of the Internal Revenue Code (Code) prescribes minimum 
funding requirements for defined benefit pension plans, and section 430 
specifies the minimum funding requirements that apply generally to 
defined benefit plans that are not multiemployer plans.\1\ Section 
430(a) defines the minimum required contribution 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.
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    \1\ Section 302 of the Employee Retirement Income Security Act 
of 1974, Public Law 93-406, as amended (ERISA) sets forth funding 
rules that are parallel to those in section 412 of the Code, and 
section 303 of ERISA sets forth additional funding rules for defined 
benefit plans (other than multiemployer plans) that are parallel to 
those in section 430 of the Code. Pursuant to section 101 of 
Reorganization Plan No. 4 of 1978, 5 U.S.C. App., as amended, the 
Secretary of the Treasury has interpretive jurisdiction over the 
subject matter addressed in these proposed regulations for purposes 
of ERISA, as well as the Code. Thus, these proposed Treasury 
regulations issued under section 430 of the Code also apply for 
purposes of section 303 of ERISA.
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    Section 430(h)(3) provides rules regarding the mortality tables to 
be 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

[[Page 25162]]

present value or making any computation under section 430. Those 
mortality tables are to be based on the actual mortality experience of 
pension plan participants and projected trends in that experience. In 
prescribing those mortality tables, the Secretary is required to take 
into account results of available independent studies of mortality of 
individuals covered by pension plans. Under section 430(h)(3)(B), the 
Secretary is required to revise any mortality table in effect under 
section 430(h)(3)(A) at least every 10 years to reflect actual 
mortality experience of pension plan participants and projected trends 
in that experience. Under section 430(h)(3)(C), a plan sponsor is 
permitted to request the Secretary's approval to use plan-specific 
substitute mortality tables that meet requirements specified in the 
statute rather than the generally applicable mortality tables. If 
approved, these substitute mortality tables are used to determine 
present values and make computations under section 430 during the 
period of consecutive plan years (not to exceed 10) specified in the 
request.
    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. These separate mortality tables are permitted 
to be used with respect to disabled individuals in lieu of the 
generally applicable mortality tables provided pursuant to section 
430(h)(3)(A) or the substitute mortality tables under section 
430(h)(3)(C). The Secretary is to establish separate tables for 
individuals with disabilities occurring in plan years beginning before 
January 1, 1995, and for individuals with disabilities occurring in 
later plan years, with the mortality tables for individuals with 
disabilities occurring in those later plan years applying only to 
individuals who are disabled within the meaning of Title II of the 
Social Security Act.
    Section 417(e)(3) generally provides that the present value of 
certain benefits 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 for minimum 
funding purposes under section 430(h)(3)(A) (without regard to the 
rules for substitute mortality tables under section 430(h)(3)(C) or 
mortality tables for disabled individuals under section 430(h)(3)(D)), 
modified as appropriate by the Secretary. The modifications made by the 
Secretary to the section 430(h)(3)(A) mortality table to determine the 
section 417(e)(3)(B) applicable mortality table are not addressed in 
these proposed regulations. Revenue Ruling 2007-67, 2007-2 CB 1047, 
describes the modifications that are currently applied to determine the 
section 417(e)(3)(B) applicable mortality table.
    Final regulations under section 430(h)(3) were published in the 
Federal Register on October 5, 2017 in TD 9826, 82 FR 46388 (the 2017 
regulations). Section 1.430(h)(3)-1 prescribes base mortality tables 
and a set of mortality improvement rates, which may be reflected 
through the use of either generational mortality tables or static 
mortality tables. The generational mortality tables are a series of 
mortality tables, one for each year of birth, each of which fully 
reflects projected trends in mortality rates. The static mortality 
tables (which are updated annually \2\) use a single mortality table 
for all years of birth to approximate the present value that would be 
determined using the generational mortality tables.
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    \2\ Static mortality tables were published in Notice 2017-60, 
2017-43 IRB 365, Notice 2018-02, 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.
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    The mortality tables included in the 2017 regulations are based on 
the mortality tables included in the RP-2014 Mortality Tables Report 
\3\ (referred to in this preamble as the RP-2014 mortality tables), 
which was released by the Retirement Plan Experience Committee (RPEC) 
of the Society of Actuaries (SOA) in October 2014 (as revised in 
November 2014), and a set of mortality improvement rates (the Scale MP-
2016 rates) as released by RPEC.\4\ In 2016, RPEC initiated a study of 
private-sector retirement plans in the U.S. in order to provide an 
update to RP-2014, and in 2019, RPEC issued the Pri-2012 Private 
Retirement Plans Mortality Tables Report (Pri-2012 Report).\5\
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    \3\ This report is available at https://www.soa.org/globalassets/assets/files/research/exp-study/research-2014-rp-report.pdf.
    \4\ This report is available at https://www.soa.org/globalassets/assets/Files/Research/Exp-Study/mortality-improvement-scale-mp-2016.pdf.
    \5\ This report is available at https://www.soa.org/globalassets/assets/files/resources/experience-studies/2019/pri-2012-mortality-tables-report.pdf.
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    In Notice 2019-67 (which provides mortality improvement rates and 
static mortality tables for 2021), the Treasury Department and the IRS 
asked for comments regarding future mortality tables under section 
430(h)(3)(A). The notice identified the mortality tables in the Pri-
2012 Report as a potential source for developing updated mortality 
tables under section 430(h)(3)(A) and requested comments regarding (1) 
whether there are other studies of actual mortality experience of 
individuals covered by pension plans and projected trends in that 
experience that should be considered for use in developing updated 
mortality tables under section 430(h)(3)(A), such as studies that 
examine the mortality experience of individuals covered by large 
public-sector pension plans, and (2) if the mortality tables in the 
Pri-2012 Report were to be used to develop updated mortality tables 
under section 430(h)(3)(A), which of the tables in that report should 
be used. In October 2021, RPEC published the Mortality Improvement 
Scale MP-2021 Report (MP-2021 Report), which is the latest update to 
its study on mortality improvement.\6\ In response to the request for 
comments in Notice 2019-67, the Treasury Department and the IRS 
received seven comments. The comments are discussed in the Explanation 
of Provisions.
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    \6\ This report is available at https://www.soa.org/globalassets/assets/files/resources/experience-studies/2021/2021-mp-scale-report.pdf.
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    The standards prescribed for developing the mortality tables under 
430(h)(3)(A) are the same as the standards that are prescribed for 
developing mortality tables for multiemployer plans under section 
431(c)(6)(D)(iv)(II) (which are used to determine current liability in 
order to determine the minimum full funding limitation under section 
431(c)(6)(B)). See Sec.  1.431(c)(6)-1 (providing that the same 
mortality assumptions that apply for purposes of section 430(h)(3)(A) 
and Sec.  1.430(h)(3)-1(a) are used to determine a multiemployer plan's 
current liability). These standards also apply for CSEC plans described 
in section 414(y) for purposes of developing mortality tables that are 
used for purposes of section 433(h)(3)(B)(i) (to determine current 
liability in order to determine the minimum full funding limitation 
under section 433(c)(2)(C) and the funded current liability percentage 
under section 433(i)). See Sec.  1.433(h)(3)-1 (providing that the same 
mortality assumptions that apply for purposes of section 430(h)(3)(A) 
and Sec.  1.430(h)(3)-1(a) are used to determine a CSEC plan's current 
liability).

Explanation of Provisions

    These proposed regulations set forth the methodology that the 
Treasury Department and the IRS intend to use to update the generally 
applicable mortality tables that are used to

[[Page 25163]]

determine present value or make any computation under section 430. 
Pursuant to section 417(e)(3)(B), a modified version of these updated 
tables would be used for purposes of determining the amount of a 
single-sum distribution (or another accelerated form of distribution). 
In addition, these tables would be used to determine current liability 
for multiemployer plans under section 431(c)(6) and CSEC plans under 
section 433(h).
    The methodology for developing updated tables under section 
430(h)(3)(A) is being proposed pursuant to the requirement under 
section 430(h)(3)(B) to revise the mortality tables used under section 
430 to reflect the actual mortality experience of pension plan 
participants and projected trends in that experience. As under the 2017 
regulations, the methodology involves the separate determination of 
base mortality tables and the projection of mortality improvement.

A. Base Mortality Tables

    The base mortality tables proposed for use under section 
430(h)(3)(A) are derived from the tables set forth in the Pri-2012 
Report. After reviewing the Pri-2012 Report and comments received in 
response to Notice 2019-67, the Treasury Department and the IRS have 
determined that the experience study used to develop the Pri-2012 
Report is the best available study of the actual mortality experience 
of pension plan participants (other than disabled individuals). 
Accordingly, the mortality tables in the Pri-2012 Report are the 
foundation for the base mortality tables used to project the mortality 
of pension plan participants under these proposed regulations. Like the 
mortality tables provided in the 2017 regulations, the mortality tables 
set forth in these proposed regulations are gender-distinct and provide 
separate non-annuitant and annuitant mortality rates.
    Unlike the Pri-2012 Report, these proposed regulations do not 
provide separate tables for annuitants who are retirees and annuitants 
who are contingent beneficiaries. In response to the request for 
comments in Notice 2019-67, most commenters recommended against the use 
of separate mortality tables for retirees and contingent beneficiaries 
because: (1) Those separate mortality tables are complex to apply on an 
exact basis; (2) applying those mortality tables would require 
actuaries to use historical data that may be difficult to obtain; and 
(3) the use of those separate mortality tables would not have a 
significant effect in measuring a plan's liabilities. After reviewing 
the comments, the Treasury Department and the IRS concluded that the 
regulations should not provide separate mortality tables for annuitants 
who are retirees and annuitant who are contingent beneficiaries. 
Accordingly, these proposed regulations provide annuitant mortality 
tables that combine the mortality experience of retirees and contingent 
beneficiaries.
    As under the 2017 regulations, these proposed regulations provide 
that the annuitant mortality tables are applied to determine the 
present value of benefits for an annuitant. For a non-annuitant, the 
non-annuitant mortality tables are applied for the periods before the 
participant is projected to commence receiving benefits, and the 
annuitant mortality tables are used for later periods. With respect to 
a beneficiary of a participant, the annuitant mortality tables apply 
for the period beginning with each assumed commencement of benefits for 
the participant. If the participant has died (or to the extent the 
participant is assumed to die before commencing benefits), the 
annuitant mortality tables apply with respect to the beneficiary for 
the period beginning with each assumed commencement of benefits for the 
beneficiary.
    These proposed regulations set forth base tables that are to be 
used to develop the mortality tables for future years. These base 
tables have a base year of 2012 (the central year of the experience 
study used to develop the mortality tables in the Pri-2012 Report). 
These base tables generally have the same mortality rates as the 
employee and non-disabled annuitant mortality rates that were released 
by RPEC in connection with the Pri-2012 Report. However, these base 
tables also include non-annuitant mortality rates for ages below age 18 
and above age 80 and annuitant mortality rates for ages below age 50. 
This generally is the same approach that was used to develop the base 
mortality tables in the 2017 regulations.
    The non-annuitant mortality rates for ages above age 80 were 
developed by (1) using the annuitant rates from the base mortality 
tables for ages 90 and older, and (2) interpolating between the rates 
for age 80 and age 90 in order to produce a smooth transition between 
the age 80 rates from the non-annuitant tables to the age 90 rates from 
the annuitant tables. The interpolation uses increasing fractions with 
a denominator of 55 to allocate the total difference between the rates 
at ages 80 and 90 over those 10 years. Thus, the rate at age 81 is set 
equal to the rate at age 80 plus 1/55 of the total difference, the age 
82 rate is equal to the rate at age 81 plus 2/55 of the total 
difference (so that the age 82 rate is equal to the rate at age 80 plus 
3/55 of the total difference), and so on for other ages.
    A similar approach was used to develop annuitant rates for ages 
below age 50 for males and 52 for females. The annuitant rates for ages 
under age 50 for males and 52 for females were determined by (1) using 
the non-annuitant rates from the base mortality tables for ages 18 to 
40, and (2) interpolating between the rates for age 40 and a later age, 
using the same methodology described in the preceding paragraph. The 
later age for males was 50 and for females was 52 (requiring that a 
denominator of 78 be substituted for 55 when that methodology was 
applied for females). This method produces a smooth transition between 
the age 40 rates from the non-annuitant tables and the age 50 rates for 
males, and age 52 rates for females, from the annuitant tables. In 
addition, some anomalous rates for female annuitants at ages 55 and 56 
in the Pri-2012 Report were smoothed by using a straight linear 
interpolation between the age 54 rates and the age 57 rates from the 
female annuitant table. For ages below age 18, both the non-annuitant 
and annuitant rates incorporate the juvenile rates from the Pri-2012 
Report.

B. Mortality Improvement

    These proposed regulations use the Scale MP-2021 Rates (the 
mortality improvement scale in the MP-2021 Report) for valuation dates 
in the 2023 calendar year. This mortality improvement scale was 
developed using the same underlying methodology used to develop earlier 
mortality improvement scales but reflects historical population data 
through 2019 and the change to the RPEC-selected assumptions for the 
long-term rate of mortality improvement that was first incorporated in 
the Mortality Improvement Scale MP-2020 Report.\7\ The Treasury 
Department and the IRS understand that RPEC expects to issue updated 
mortality improvement rates that reflect new data for mortality 
improvement trends for the general population on an annual basis. The 
Treasury Department and the IRS expect to take those updates into 
account in determining the mortality rates to be used under section 
430(h)(3) for valuation dates in years after 2023. Those rates will be 
specified in guidance to be published in the Internal Revenue Bulletin. 
See Sec.  601.601(d).
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    \7\ This report is available at https://www.soa.org/globalassets/assets/files/resources/experience-studies/2020/mortality-improvement-scale-mp-2020.pdf.

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[[Page 25164]]

C. Use of Static Tables for Small Plans

    The 2017 regulations provide for the use of separate generational 
non-annuitant and annuitant mortality tables and separate static non-
annuitant and annuitant mortality tables. The preamble to those 
regulations explains that static mortality tables are permitted to be 
used (notwithstanding that generational mortality tables yield more 
accurate results) because of the limitations of some current actuarial 
software that is not designed to use generational tables. Since the 
issuance of the 2017 regulations, the software needed to use 
generational mortality tables has become widely used and is often used 
for other business needs such as financial accounting. There is no 
longer a need to allow the use of static mortality tables for most 
plans because most actuarial firms have the capability to use 
generational mortality tables. Requiring most employers to use 
generational mortality tables also minimizes anti-selection by plan 
sponsors who determine that the use of static mortality tables results 
in lower minimum funding requirements. Accordingly, these proposed 
regulations eliminate the use of separate static non-annuitant and 
annuitant mortality tables and require the use of generational 
mortality tables for plans that are not considered small plans.
    These proposed regulations continue to allow the use of static 
mortality tables for small plans (defined as plans with 500 or fewer 
participants), as well as for multiemployer and CSEC plans. However, 
the static mortality tables that may be used for these plans are 
combined tables reflecting non-annuitant and annuitant mortality rates. 
These tables are constructed from a blend of non-annuitant and 
annuitant mortality rates based on the underlying data used in 
developing the Pri-2012 Report.

Applicability Date

    These regulations are proposed to apply to plan years beginning on 
or after January 1, 2023.

Other Matters

A. Effect of Regulations on Previously Approved Substitute Mortality 
Tables

    The 2017 regulations also included rules regarding the use of plan-
specific mortality tables under section 430(h)(3)(C), which are set 
forth in Sec.  1.430(h)(3)-2.\8\ Section 1.430(h)(3)-2(c)(6)(ii) 
provides for the early termination of the use of substitute mortality 
tables in certain circumstances, including pursuant to a replacement of 
the mortality tables specified in Sec.  1.430(h)(3)-1. Under Sec.  
1.430(h)(3)-2(c)(6)(ii)(E), the early termination pursuant to such a 
replacement must be effective as of a date specified in guidance 
published in the Internal Revenue Bulletin. Except as described in the 
next paragraph, the Treasury Department and the IRS do not intend to 
require the early termination of previously approved substitute 
mortality tables in connection with the proposed replacement of the 
generally applicable mortality tables.
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    \8\ Rev. Proc. 2017-55, 2017-43 IRB 373, sets forth the 
procedure by which a plan sponsor of a defined benefit plan may 
request and obtain approval for the use of plan-specific substitute 
mortality tables in accordance with section 430(h)(3)(C).
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    Under Sec.  1.430(h)(3)-2(c)(6)(ii)(C), the use of substitute 
mortality tables is terminated early if there is a significant change 
in the individuals covered by the plan. As defined in Sec.  
1.430(h)(3)-2(c)(6)(iii)(A), a significant change is either an increase 
or decrease in the number of individuals covered by the substitute 
mortality table for the plan year of more than 20 percent of the 
average number of individuals in that population over the years covered 
by the experience study on which the substitute mortality tables are 
based. However, under Sec.  1.430(h)(3)-2(c)(6)(iii)(A), a change in 
coverage is not treated as significant if the plan's actuary certifies 
in writing to the satisfaction of the Commissioner that the substitute 
mortality tables used for the plan population continue to be accurately 
predictive of future mortality of that population (taking into account 
the effect of the change in the population).
    When final regulations providing for the replacement of mortality 
tables under section 430 are issued, the Treasury Department and the 
IRS anticipate issuing guidance in the Internal Revenue Bulletin 
pursuant to Sec.  1.430(h)(3)-2(c)(6)(ii)(E) that will require the 
early termination of a plan's previously approved substitute mortality 
table only if the plan has experienced a significant change in coverage 
under Sec.  1.430(h)(3)-2(c)(6)(iii). The early termination would apply 
without regard to any plan actuary certification that the substitute 
mortality tables used for the plan population continue to be accurately 
predictive of future mortality of that population.

B. Impact of COVID-19 on Mortality Rates

    The mortality improvement rates in these proposed regulations are 
based on the MP-2021 Report, which was prepared in 2021 based on the 
most recent data available at that time (estimated 2019 calendar year 
data). Accordingly, the MP-2021 mortality improvement scale does not 
take into account any mortality experience in calendar years 2020 and 
2021, which are the first years affected by the COVID-19 pandemic. In 
selecting their assumed long-term improvement rates, RPEC did not make 
any adjustments to take into account any effects of COVID-19 on 
mortality rates in the long term because there was no consensus on 
COVID-19's effect on expected future mortality experience.\9\ 
Accordingly, the mortality improvement rates in these regulations do 
not take into account the impact of the COVID-19 pandemic.
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    \9\ RPEC cited uncertainty relating to the effectiveness of 
vaccines and treatments, severity of future variants, and the long-
term effect of having recovered from COVID-19 on an employee's 
health.
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    The MP-2021 Report includes a review of actual mortality data from 
2020 and a portion of 2021. For the 40-week period starting March 22, 
2020, the review indicated that the number of deaths was approximately 
120 percent of the expected number. For 2021, that ratio dropped to 110 
percent in the spring, before increasing in the summer. The number of 
deaths attributable to the COVID-19 pandemic has remained high during 
the early part of 2022. These higher mortality rates do not indicate 
that the MP-2021 mortality improvement scale is flawed, but merely 
reflect that the model did not anticipate COVID-19 in projecting the 
mortality rates for these years.
    The mortality rates provided in these proposed regulations would 
apply starting in 2023. If the impact of COVID-19 on mortality 
experience is viewed as only a short-term phenomenon, the mere fact 
that the model in the MP-2021 Report (upon which these proposed 
regulations are based) did not reflect the actual mortality experience 
for 2020 through 2022 does not mean that the mortality rates in these 
proposed regulations are inappropriate because it is not clear to what 
extent the increased mortality associated with COVID-19 will continue 
for 2023 and later years. However, to the extent there is a long-term 
higher mortality rate from COVID-19, the Treasury Department and the 
IRS expect that RPEC will reflect the long-term impact of COVID-19 in 
future mortality improvement scales, which could be specified for use 
in future guidance. The Treasury Department and the IRS request 
comments about how the data for periods in which mortality experience 
for plan participants has been significantly affected by the COVID-19 
pandemic should be taken

[[Page 25165]]

into account in future mortality improvement rates under these 
regulations and future base mortality tables.
    These proposed regulations do not change any of the rules or 
procedures required for employers to request substitute mortality 
tables. The Treasury Department and the IRS request comments about 
whether the rules and procedures relating to development of substitute 
mortality tables should be modified to recognize the potential that the 
mortality experience for the period of the COVID-19 pandemic is not 
accurately predictive of the future mortality experience for 
participants of a plan for which substitute mortality tables are 
requested.

Incorporation by Reference

    Section 1.430(h)(3)-1(b)(1)(iii) of the proposed regulations 
provides that the mortality improvement rates used to construct 
generational tables to be used for valuation dates occurring during 
2023 are the Scale MP-2021 Rates, which are included in the Mortality 
Improvement Scale MP-2021 Report. The Office of the Federal Register 
(OFR) has regulations concerning incorporation by reference. 1 CFR part 
51. These regulations require that agencies must discuss in the 
preamble to a rule or proposed rule the way in which materials that the 
agency incorporates by reference are reasonably available to interested 
persons, and how interested parties can obtain the materials. 1 CFR 
51.5(b).
    The Scale MP-2021 Rates and the Mortality Improvement Scale MP-2021 
Report are described in this preamble under the heading ``B. Mortality 
Improvement'' in the Explanation of Provisions section of this 
preamble. The Mortality Improvement Scale MP-2021 Report was issued by 
the Retirement Plans Experience Committee of the Society of Actuaries 
on October 27, 2021, and is available at https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021.

Statement of Availability of IRS Documents

    IRS Revenue Rulings, Revenue Procedures, and Notices cited in this 
document are published in the Internal Revenue Bulletin (or Cumulative 
Bulletin) and are available from the Superintendent of Documents, U.S. 
Government Printing Office, Washington, DC 20402, or by visiting the 
IRS website at www.irs.gov.

Special Analyses

    These regulations are not subject to review under section 6(b) of 
Executive Order 12866 pursuant to the Memorandum of Agreement (April 
11, 2018) between the Treasury Department and the Office of Management 
and Budget regarding review of tax regulations.
    Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it 
is hereby certified that the regulations will not have a significant 
economic impact on a substantial number of small entities. The only 
provision that increases regulatory burden is Sec.  1.430(h)(3)-1(b), 
which generally requires the use of generational mortality tables. 
However, under Sec.  1.430(h)(3)-1(c), small entities are not required 
to use generational mortality tables. Therefore, the proposed rule 
would not have a significant economic impact on a substantial number of 
small entities.
    Pursuant to section 7805(f) of the Code, these proposed regulations 
will be submitted to the Chief Counsel for Advocacy of the Small 
Business Administration for comment on their impact on small business.

Comments and Public Hearing

    Before these proposed amendments to the regulations are adopted as 
final regulations, consideration will be given to comments that are 
submitted timely to the IRS as prescribed in the preamble under the 
ADDRESSES section. The Treasury Department and the IRS request comments 
on all aspects of these proposed regulations.
    A public hearing is being held by teleconference on June 28, 2022, 
beginning at 10 a.m. EST. The rules of 26 CFR 601.601(a)(3) apply to 
the hearing. Persons who wish to present oral comments by telephone at 
the hearing must submit electronic or written comments and an outline 
of the topics to be addressed and the time to be devoted to each topic 
by June 9, 2022, as prescribed in the preamble under the ADDRESSES 
section.
    A period of 10 minutes will be allocated to each person for making 
comments. After the deadline for receiving outlines has passed, the IRS 
will prepare an agenda containing the schedule of speakers. Copies of 
the agenda will be made available at www.regulations.gov, search IRS 
and REG-106384-20. Copies of the agenda will also be available by 
emailing a request to [email protected]. Please put ``REG-106384-
20 Agenda Request'' in the subject line of the email.

Drafting Information

    The principal authors of these regulations are Arslan Malik and 
Linda S.F. Marshall of the Office of Associate Chief Counsel (Employee 
Benefits, Exempt Organizations, and Employment Taxes). However, other 
personnel from the Treasury Department and the IRS participated in the 
development of these regulations.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read, in 
part, as follows:

    Authority:  26 U.S.C. 7805 * * *

0
Par. 2. Section 1.430(h)(3)-1 is revised to read as follows:


Sec.  1.430  (h)(3)-1 Mortality tables used to determine present value.

    (a) Overview--(1) Standard mortality tables. This section sets 
forth rules for the mortality tables to be used in determining present 
value or making any computation under section 430. These mortality 
tables include--
    (i) Generational mortality tables described in paragraph (b) of 
this section; and
    (ii) Static mortality tables for small plans described in paragraph 
(c) of this section.
    (2) Alternative tables--(i) Plan-specific mortality tables. In lieu 
of using the mortality tables provided under this section, plan-
specific substitute mortality tables are permitted to be used for 
purposes of section 430 pursuant to section 430(h)(3)(C), provided that 
the requirements of Sec.  1.430(h)(3)-2 are satisfied.
    (ii) Disabled individuals. In lieu of using the mortality tables 
provided under this section, mortality tables for disabled individuals 
are permitted to be used pursuant to section 430(h)(3)(D). These tables 
are provided in guidance published in the Internal Revenue Bulletin. 
See Sec.  601.601(d) of this chapter.
    (b) Generational mortality tables--(1) In general--(i) Construction 
of generational mortality tables. The generational mortality tables 
that are permitted to be used under section 430(h)(3)(A) and paragraph 
(a)(1)(i) of this section are constructed from the base mortality 
tables described in

[[Page 25166]]

paragraph (b)(1)(ii) of this section and the mortality improvement 
rates described in paragraph (b)(1)(iii) of this section.
    (ii) Base mortality tables. The base mortality tables are set forth 
in paragraph (d) of this section. The base year for those tables is 
2012.
    (iii) Mortality improvement rates. The mortality improvement rates 
for valuation dates occurring during 2023 are the Scale MP-2021 Rates.

    Note 1 to paragraph (b)(1)(iii):  For later years, updated 
mortality improvement rates that take into account new data for 
mortality improvement trends of the general population will also be 
incorporated by reference.

    (iv) Incorporation by reference. The material listed in this 
paragraph (b)(1)(iv) is incorporated by reference into this section 
with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51. This material is available for 
inspection at the IRS and at the National Archives and Records 
Administration (NARA). Contact IRS at: Qualified Plans Branch 1, 
CC:EEE:QP1, 1111 Constitution Avenue NW, Washington, DC 20224; (202) 
317-6700; www.irs.gov/retirement-plans/interest-rates-tables. For 
information on the availability of this material at NARA, email: 
[email protected], or go to: www.archives.gov/federal-register/cfr/ibr-locations.html. The material is available from the Society of 
Actuaries at: Society of Actuaries, 475 N. Martingale Rd., Suite 600, 
Schaumburg, IL 60173; (847) 706-3500; https://www.soa.org/resources/experience-studies/2021/mortality-improvement-scale-mp-2021/.
    (A) The Scale MP-2021 Rates.
    (B) [Reserved]
    (2) Application of mortality improvement rates--(i) In general. 
Under the generational mortality tables described in this paragraph 
(b), the probability of an individual's death at a particular age in 
the future is determined as the individual's base mortality rate that 
applies at that age (that is, the applicable mortality rate from the 
tables set forth in paragraph (d) of this section for that age, gender, 
and status as an annuitant or a non-annuitant) multiplied by the 
cumulative mortality improvement factor for the individual's gender and 
for that age for the period from 2012 through the calendar year in 
which the individual is projected to reach the particular age. 
Paragraph (b)(3) of this section shows how the base mortality tables in 
paragraph (d) of this section and the mortality improvement rates for 
valuation dates occurring during 2023 are combined to determine 
projected mortality rates.
    (ii) Cumulative mortality improvement factor. The cumulative 
mortality improvement factor for an age and gender for a period is the 
product of the annual mortality improvement factors for that age and 
gender for each year within that period.
    (iii) Annual mortality improvement factor. The annual mortality 
improvement factor for an age and gender for a year is 1 minus the 
mortality improvement rate that applies for that age and gender for 
that year. If that annual mortality improvement rate is greater than 1 
(corresponding to a negative mortality improvement rate), then the 
projected mortality rate for that age and gender for that year is 
greater than the projected mortality rate for the same age and gender 
for the preceding year.
    (3) Example of calculation--(i) Calculation of mortality rate. The 
mortality rate for 2023 that is applied to male annuitants who are age 
67 in 2023 is equal to the product of the mortality rate for 2012 that 
applied to male annuitants who were age 67 in 2012 (0.01288) and the 
cumulative mortality improvement factor for age 67 males from 2012 to 
2023. The cumulative mortality improvement factor for age 67 males for 
the period from 2012 to 2023 is 0.9919, and the mortality rate for 2023 
for male annuitants who are age 67 in that year would be 0.01278, as 
shown in the following table.

                                         Table 1 to Paragraph (b)(3)(i)
----------------------------------------------------------------------------------------------------------------
                                                                Annual mortality
                                                                  improvement       Cumulative
                                                  Mortality       factor  (1-        mortality
                Calendar year                    improvement       mortality        improvement   Mortality rate
                                                    rate          improvement         factor
                                                                     rate)
----------------------------------------------------------------------------------------------------------------
2012.........................................             n/a                n/a             n/a         0.01288
2013.........................................          0.0052             0.9948          0.9948  ..............
2014.........................................          0.0027             0.9973          0.9921  ..............
2015.........................................          0.0009             0.9991          0.9912  ..............
2016.........................................        (0.0003)             1.0003          0.9915  ..............
2017.........................................        (0.0010)             1.0010          0.9925  ..............
2018.........................................        (0.0016)             1.0016          0.9941  ..............
2019.........................................        (0.0016)             1.0016          0.9957  ..............
2020.........................................        (0.0010)             1.0010          0.9967  ..............
2021.........................................          0.0000             1.0000          0.9967  ..............
2022.........................................          0.0015             0.9985          0.9952  ..............
2023.........................................          0.0033             0.9967          0.9919         0.01278
----------------------------------------------------------------------------------------------------------------

    (ii) Probability of survival for an individual. After the projected 
mortality rates are derived for each age for each year, the rates are 
used to calculate the present value of a benefit stream that depends on 
the probability of survival year-by-year. For example, for purposes of 
calculating the present value (for a 2023 valuation date) of future 
payments in a benefit stream payable for a male annuitant who is age 67 
in 2023, the probability of survival for the annuitant is based on the 
mortality rate for a male annuitant who is age 67 in 2023 (0.01278), 
and the projected mortality rate for a male annuitant who will be age 
68 in 2024 (0.01378), age 69 in 2025 (0.01489), and so on.
    (4) Use of the tables--(i) Separate tables for annuitants and non-
annuitants. Separate mortality tables are provided for use for 
annuitants and non-annuitants. The non-annuitant mortality tables are 
applied to determine the probability of survival for a non-annuitant 
for the period before the non-annuitant is projected to commence 
receiving benefits. The annuitant mortality tables are applied to 
determine the present value of benefits

[[Page 25167]]

for each annuitant. In addition, the annuitant mortality tables are 
applied for each non-annuitant with respect to each assumed 
commencement of benefits for the period beginning with that assumed 
commencement. For purposes of this section, an annuitant means a plan 
participant who has commenced receiving benefits and a non-annuitant 
means a plan participant who has not yet commenced receiving benefits 
(for example, an active employee or a terminated vested participant). A 
participant whose benefit has partially commenced is treated as an 
annuitant with respect to the portion of the benefit that has commenced 
and treated as a non-annuitant with respect to the balance of the 
benefit. In addition, with respect to a beneficiary of a participant, 
the annuitant mortality tables apply for the period beginning with each 
assumed commencement of benefits for the participant. If the 
participant has died (or to the extent the participant is assumed to 
die before commencing benefits), the annuitant mortality tables apply 
with respect to the beneficiary for the period beginning with each 
assumed commencement of benefits for the beneficiary.
    (ii) Examples of calculation using separate non-annuitant and 
annuitant tables. With respect to a 45-year-old active participant who 
is projected to commence receiving an annuity at age 55, the funding 
target is determined using the non-annuitant mortality tables for the 
period before the participant attains age 55 and using the annuitant 
mortality tables for the period ages 55 and above. Similarly, for a 45-
year-old terminated vested participant who is projected to commence an 
annuity at age 65, the funding target is determined using the non-
annuitant mortality tables for the period before the participant 
attains age 65 and using the annuitant mortality tables for ages 65 and 
above.
    (c) Static mortality tables--(1) Availability of alternative tables 
for small plans--(i) In general. As an alternative to the generational 
mortality tables defined in paragraph (b) of this section, static 
mortality tables may be used for a small plan. The static mortality 
tables described in this paragraph (c) are constructed from the 
separate non-annuitant and annuitant static mortality tables described 
in paragraph (c)(2)(i) of this section, combined using the procedure 
described in paragraph (c)(2)(ii) of this section.
    (ii) Definition of small plan. For purposes of this paragraph (c), 
a small plan is defined as a plan with 500 or fewer total participants 
(including both active and inactive participants and beneficiaries of 
deceased participants) on the valuation date.
    (iii) Use of static mortality tables. The static mortality tables 
that are used for a valuation date are the static mortality tables for 
the calendar year that includes the valuation date.
    (iv) Publication of mortality tables. The static mortality tables 
for the 2023 calendar year are set forth in paragraph (e) of this 
section.

    Note 2 to paragraph (c)(1)(iv):  The static mortality tables for 
valuation dates for later calendar years will be published in the 
Internal Revenue Bulletin. See Sec.  601.601(d) of this chapter.

    (2) Development of static mortality tables--(i) Non-annuitant and 
annuitant mortality tables. The non-annuitant and annuitant static 
mortality tables are determined using the base mortality tables 
described in paragraph (b)(1)(ii) of this section. The rates in those 
base mortality tables are adjusted using the mortality improvement 
rates described in paragraph (b)(1)(iii) of this section, in accordance 
with the rules set forth in paragraph (c)(3) of this section.
    (ii) Combined static mortality tables. The static mortality tables 
described in this paragraph (c) are constructed from the separate non-
annuitant and annuitant static mortality tables pursuant to paragraph 
(c)(2)(i) of this section, blended using the weighting factors in 
paragraph (d) of this section. The weighting factors are applied to 
develop these combined static tables using the following equation: 
Combined mortality rate = [non-annuitant rate * (1-weighting factor)] + 
[annuitant rate * weighting factor].
    (3) Projection of mortality improvements--(i) General rule. Except 
as provided in paragraph (c)(3)(iii) of this section, the static 
mortality tables for a calendar year are determined by multiplying the 
applicable mortality rate for each age from the base mortality tables 
by both--
    (A) The cumulative mortality improvement factor (determined under 
paragraph (b)(2)(ii) of this section) for the period from 2012 through 
that calendar year; and
    (B) The cumulative mortality improvement factor (determined under 
paragraph (b)(2)(ii) of this section) for the period beginning in that 
calendar year and continuing beyond that calendar year for the number 
of years in the projection period described in paragraph (c)(3)(ii) of 
this section.
    (ii) Projection period for static mortality tables--(A) In general. 
The projection period is 8 years for males and 9 years for females, as 
adjusted based on age as provided in paragraph (c)(3)(ii)(B) of this 
section.
    (B) Age adjustment. For ages below 80, the projection period is 
increased by 1 year for each year below age 80. For ages above 80, the 
projection period is reduced (but not below zero) by \1/3\ year for 
each year above 80.
    (iii) Fractional projection periods. If for an age the number of 
years in the projection period determined under paragraph (c)(3)(ii) of 
this section is not a whole number, then the mortality rate for that 
age is determined by using linear interpolation between--
    (A) The mortality rate for that age that would be determined under 
paragraph (c)(3)(i) of this section if the number of years in the 
projection period were the next lower whole number; and
    (B) The mortality rate for that age that would be determined under 
paragraph (c)(3)(i) of this section if the number of years in the 
projection period were the next higher whole number.
    (iv) Example. For example, at age 85 the projection period for a 
male is 6\1/3\ years (8 years minus \1/3\ year for each of the 5 years 
above age 80). For a valuation date in 2023, the mortality rate in the 
static mortality table for an 85-year-old male is based on a projection 
of mortality improvement for 6\1/3\ years beyond 2023. Under paragraph 
(c)(3)(iii) of this section, the mortality rate for an 85-year-old male 
annuitant in the static mortality table for 2023 is \2/3\ times the 
projected mortality rate for a male annuitant that age in 2029 plus \1/
3\ times the projected mortality rate for a male annuitant that age in 
2030. Accordingly, the mortality rate for an 85-year-old male annuitant 
in the static mortality table for 2023 is 0.07967 (\2/3\ times the 
projected mortality rate for an 85-year-old male annuitant in 2029 
(0.07986) plus \1/3\ times the projected mortality rate for an 85-year-
old male annuitant in 2030 (0.07928)).
    (d) Base mortality tables. The following are the base mortality 
tables. The base year for these tables is 2012.

[[Page 25168]]



                                                                Table 2 to Paragraph (d)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Males                                          Females
                                                         -----------------------------------------------------------------------------------------------
                           Age                                                               Weighting                                       Weighting
                                                           Non-annuitant     Annuitant      factor for     Non-annuitant     Annuitant      factor for
                                                                                            small plans                                     small plans
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.......................................................         0.00650         0.00650          0.0000         0.00544         0.00544          0.0000
1.......................................................         0.00045         0.00045          0.0000         0.00038         0.00038          0.0000
2.......................................................         0.00030         0.00030          0.0000         0.00023         0.00023          0.0000
3.......................................................         0.00022         0.00022          0.0000         0.00018         0.00018          0.0000
4.......................................................         0.00019         0.00019          0.0000         0.00013         0.00013          0.0000
5.......................................................         0.00016         0.00016          0.0000         0.00012         0.00012          0.0000
6.......................................................         0.00014         0.00014          0.0000         0.00011         0.00011          0.0000
7.......................................................         0.00013         0.00013          0.0000         0.00010         0.00010          0.0000
8.......................................................         0.00011         0.00011          0.0000         0.00009         0.00009          0.0000
9.......................................................         0.00009         0.00009          0.0000         0.00009         0.00009          0.0000
10......................................................         0.00008         0.00008          0.0000         0.00009         0.00009          0.0000
11......................................................         0.00009         0.00009          0.0000         0.00009         0.00009          0.0000
12......................................................         0.00013         0.00013          0.0000         0.00010         0.00010          0.0000
13......................................................         0.00017         0.00017          0.0000         0.00012         0.00012          0.0000
14......................................................         0.00022         0.00022          0.0000         0.00013         0.00013          0.0000
15......................................................         0.00028         0.00028          0.0000         0.00013         0.00013          0.0000
16......................................................         0.00034         0.00034          0.0000         0.00014         0.00014          0.0000
17......................................................         0.00040         0.00040          0.0000         0.00015         0.00015          0.0000
18......................................................         0.00046         0.00046          0.0000         0.00015         0.00015          0.0000
19......................................................         0.00053         0.00053          0.0000         0.00015         0.00015          0.0000
20......................................................         0.00056         0.00056          0.0000         0.00015         0.00015          0.0000
21......................................................         0.00056         0.00056          0.0000         0.00015         0.00015          0.0000
22......................................................         0.00056         0.00056          0.0000         0.00016         0.00016          0.0000
23......................................................         0.00055         0.00055          0.0000         0.00018         0.00018          0.0000
24......................................................         0.00055         0.00055          0.0000         0.00019         0.00019          0.0000
25......................................................         0.00054         0.00054          0.0000         0.00019         0.00019          0.0000
26......................................................         0.00054         0.00054          0.0000         0.00019         0.00019          0.0000
27......................................................         0.00054         0.00054          0.0000         0.00020         0.00020          0.0000
28......................................................         0.00054         0.00054          0.0000         0.00020         0.00020          0.0000
29......................................................         0.00054         0.00054          0.0000         0.00020         0.00020          0.0000
30......................................................         0.00055         0.00055          0.0000         0.00021         0.00021          0.0000
31......................................................         0.00055         0.00055          0.0000         0.00022         0.00022          0.0000
32......................................................         0.00056         0.00056          0.0000         0.00023         0.00023          0.0000
33......................................................         0.00058         0.00058          0.0000         0.00025         0.00025          0.0000
34......................................................         0.00059         0.00059          0.0000         0.00026         0.00026          0.0000
35......................................................         0.00061         0.00061          0.0000         0.00028         0.00028          0.0000
36......................................................         0.00063         0.00063          0.0000         0.00031         0.00031          0.0000
37......................................................         0.00065         0.00065          0.0000         0.00034         0.00034          0.0000
38......................................................         0.00068         0.00068          0.0000         0.00036         0.00036          0.0000
39......................................................         0.00071         0.00071          0.0000         0.00040         0.00040          0.0000
40......................................................         0.00074         0.00074          0.0000         0.00043         0.00043          0.0000
41......................................................         0.00077         0.00082          0.0008         0.00047         0.00049          0.0010
42......................................................         0.00081         0.00099          0.0016         0.00051         0.00061          0.0020
43......................................................         0.00086         0.00124          0.0024         0.00055         0.00078          0.0030
44......................................................         0.00091         0.00158          0.0032         0.00060         0.00101          0.0040
45......................................................         0.00097         0.00200          0.0040         0.00065         0.00130          0.0051
46......................................................         0.00105         0.00251          0.0047         0.00071         0.00165          0.0061
47......................................................         0.00113         0.00310          0.0055         0.00077         0.00206          0.0071
48......................................................         0.00123         0.00378          0.0063         0.00083         0.00252          0.0081
49......................................................         0.00134         0.00454          0.0071         0.00090         0.00304          0.0091
50......................................................         0.00147         0.00539          0.0079         0.00098         0.00362          0.0101
51......................................................         0.00161         0.00544          0.0140         0.00107         0.00426          0.0185
52......................................................         0.00177         0.00565          0.0209         0.00116         0.00495          0.0262
53......................................................         0.00194         0.00588          0.0302         0.00126         0.00500          0.0349
54......................................................         0.00213         0.00616          0.0430         0.00137         0.00512          0.0449
55......................................................         0.00234         0.00647          0.0898         0.00148         0.00517          0.0853
56......................................................         0.00257         0.00686          0.1676         0.00161         0.00522          0.1535
57......................................................         0.00281         0.00728          0.2153         0.00175         0.00528          0.1923
58......................................................         0.00308         0.00770          0.2635         0.00190         0.00561          0.2291
59......................................................         0.00338         0.00811          0.3144         0.00206         0.00601          0.2680
60......................................................         0.00369         0.00848          0.3821         0.00224         0.00643          0.3192
61......................................................         0.00403         0.00882          0.4579         0.00243         0.00690          0.3731
62......................................................         0.00441         0.00918          0.5935         0.00264         0.00743          0.4705
63......................................................         0.00481         0.00960          0.7153         0.00287         0.00796          0.5668
64......................................................         0.00525         0.01014          0.7764         0.00312         0.00859          0.6230
65......................................................         0.00573         0.01087          0.8454         0.00339         0.00928          0.7172
66......................................................         0.00636         0.01178          0.9002         0.00380         0.01003          0.8006
67......................................................         0.00706         0.01288          0.9275         0.00427         0.01089          0.8414

[[Page 25169]]

 
68......................................................         0.00784         0.01418          0.9431         0.00480         0.01192          0.8658
69......................................................         0.00870         0.01564          0.9547         0.00540         0.01309          0.8857
70......................................................         0.00967         0.01729          0.9642         0.00606         0.01444          0.9046
71......................................................         0.01073         0.01914          0.9732         0.00681         0.01597          0.9240
72......................................................         0.01192         0.02121          0.9791         0.00765         0.01770          0.9365
73......................................................         0.01323         0.02354          0.9823         0.00860         0.01967          0.9437
74......................................................         0.01469         0.02613          0.9847         0.00966         0.02192          0.9512
75......................................................         0.01632         0.02905          0.9868         0.01085         0.02445          0.9568
76......................................................         0.01812         0.03233          0.9889         0.01219         0.02727          0.9637
77......................................................         0.02012         0.03604          0.9906         0.01370         0.03042          0.9682
78......................................................         0.02234         0.04026          0.9920         0.01539         0.03391          0.9727
79......................................................         0.02480         0.04504          0.9935         0.01729         0.03775          0.9765
80......................................................         0.02754         0.05046          1.0000         0.01943         0.04198          1.0000
81......................................................         0.02989         0.05657          1.0000         0.02134         0.04663          1.0000
82......................................................         0.03460         0.06343          1.0000         0.02516         0.05178          1.0000
83......................................................         0.04166         0.07114          1.0000         0.03089         0.05754          1.0000
84......................................................         0.05108         0.07977          1.0000         0.03853         0.06401          1.0000
85......................................................         0.06285         0.08946          1.0000         0.04808         0.07132          1.0000
86......................................................         0.07698         0.10032          1.0000         0.05955         0.07954          1.0000
87......................................................         0.09346         0.11248          1.0000         0.07293         0.08879          1.0000
88......................................................         0.11229         0.12600          1.0000         0.08822         0.09936          1.0000
89......................................................         0.13348         0.14088          1.0000         0.10542         0.11124          1.0000
90......................................................         0.15703         0.15703          1.0000         0.12453         0.12453          1.0000
91......................................................         0.17401         0.17401          1.0000         0.13818         0.13818          1.0000
92......................................................         0.19151         0.19151          1.0000         0.15250         0.15250          1.0000
93......................................................         0.20936         0.20936          1.0000         0.16737         0.16737          1.0000
94......................................................         0.22742         0.22742          1.0000         0.18274         0.18274          1.0000
95......................................................         0.24569         0.24569          1.0000         0.19863         0.19863          1.0000
96......................................................         0.26415         0.26415          1.0000         0.21509         0.21509          1.0000
97......................................................         0.28281         0.28281          1.0000         0.23214         0.23214          1.0000
98......................................................         0.30169         0.30169          1.0000         0.24983         0.24983          1.0000
99......................................................         0.32077         0.32077          1.0000         0.26814         0.26814          1.0000
100.....................................................         0.33996         0.33996          1.0000         0.28698         0.28698          1.0000
101.....................................................         0.35910         0.35910          1.0000         0.30619         0.30619          1.0000
102.....................................................         0.37794         0.37794          1.0000         0.32549         0.32549          1.0000
103.....................................................         0.39633         0.39633          1.0000         0.34472         0.34472          1.0000
104.....................................................         0.41415         0.41415          1.0000         0.36375         0.36375          1.0000
105.....................................................         0.43131         0.43131          1.0000         0.38243         0.38243          1.0000
106.....................................................         0.44771         0.44771          1.0000         0.40065         0.40065          1.0000
107.....................................................         0.46329         0.46329          1.0000         0.41828         0.41828          1.0000
108.....................................................         0.47800         0.47800          1.0000         0.43522         0.43522          1.0000
109.....................................................         0.49181         0.49181          1.0000         0.45139         0.45139          1.0000
110.....................................................         0.50000         0.50000          1.0000         0.46673         0.46673          1.0000
111.....................................................         0.50000         0.50000          1.0000         0.48120         0.48120          1.0000
112.....................................................         0.50000         0.50000          1.0000         0.49477         0.49477          1.0000
113.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
114.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
115.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
116.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
117.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
118.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
119.....................................................         0.50000         0.50000          1.0000         0.50000         0.50000          1.0000
120.....................................................         1.00000         1.00000          1.0000         1.00000         1.00000          1.0000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (e) Static tables for 2023. The following static mortality tables 
are used pursuant to paragraph (a)(1)(ii) of this section for 
determining present value or making any computation under section 430 
with respect to valuation dates occurring during 2023.

                        Table 3 to Paragraph (e)
------------------------------------------------------------------------
                      Age                           Male        Female
------------------------------------------------------------------------
0.............................................      0.00226      0.00194
1.............................................      0.00016      0.00014
2.............................................      0.00011      0.00008
3.............................................      0.00008      0.00007
4.............................................      0.00007      0.00005
5.............................................      0.00006      0.00005
6.............................................      0.00005      0.00004
7.............................................      0.00005      0.00004
8.............................................      0.00004      0.00004
9.............................................      0.00004      0.00004
10............................................      0.00003      0.00004
11............................................      0.00004      0.00004
12............................................      0.00005      0.00004
13............................................      0.00007      0.00005
14............................................      0.00009      0.00006

[[Page 25170]]

 
15............................................      0.00012      0.00006
16............................................      0.00015      0.00006
17............................................      0.00017      0.00007
18............................................      0.00020      0.00007
19............................................      0.00024      0.00007
20............................................      0.00026      0.00007
21............................................      0.00026      0.00007
22............................................      0.00027      0.00008
23............................................      0.00027      0.00009
24............................................      0.00028      0.00010
25............................................      0.00029      0.00010
26............................................      0.00030      0.00011
27............................................      0.00032      0.00012
28............................................      0.00033      0.00012
29............................................      0.00035      0.00013
30............................................      0.00037      0.00014
31............................................      0.00038      0.00015
32............................................      0.00040      0.00016
33............................................      0.00043      0.00018
34............................................      0.00045      0.00018
35............................................      0.00048      0.00020
36............................................      0.00051      0.00022
37............................................      0.00053      0.00024
38............................................      0.00055      0.00026
39............................................      0.00058      0.00028
40............................................      0.00059      0.00029
41............................................      0.00061      0.00031
42............................................      0.00063      0.00033
43............................................      0.00065      0.00035
44............................................      0.00067      0.00037
45............................................      0.00069      0.00039
46............................................      0.00073      0.00042
47............................................      0.00078      0.00046
48............................................      0.00083      0.00049
49............................................      0.00088      0.00053
50............................................      0.00097      0.00059
51............................................      0.00106      0.00065
52............................................      0.00118      0.00074
53............................................      0.00132      0.00084
54............................................      0.00148      0.00094
55............................................      0.00176      0.00113
56............................................      0.00217      0.00140
57............................................      0.00254      0.00161
58............................................      0.00296      0.00188
59............................................      0.00342      0.00218
60............................................      0.00396      0.00254
61............................................      0.00456      0.00294
62............................................      0.00539      0.00354
63............................................      0.00623      0.00418
64............................................      0.00693      0.00476
65............................................      0.00779      0.00555
66............................................      0.00874      0.00640
67............................................      0.00972      0.00717
68............................................      0.01081      0.00798
69............................................      0.01201      0.00893
70............................................      0.01337      0.01002
71............................................      0.01490      0.01130
72............................................      0.01663      0.01276
73............................................      0.01858      0.01442
74............................................      0.02081      0.01636
75............................................      0.02336      0.01858
76............................................      0.02629      0.02115
77............................................      0.02966      0.02406
78............................................      0.03353      0.02736
79............................................      0.03796      0.03106
80............................................      0.04313      0.03557
81............................................      0.04868      0.04000
82............................................      0.05503      0.04498
83............................................      0.06223      0.05058
84............................................      0.07040      0.05694
85............................................      0.07967      0.06416
86............................................      0.09014      0.07229
87............................................      0.10191      0.08147
88............................................      0.11507      0.09197
89............................................      0.12960      0.10372
90............................................      0.14540      0.11681
91............................................      0.16201      0.13032
92............................................      0.17900      0.14437
93............................................      0.19623      0.15892
94............................................      0.21351      0.17370
95............................................      0.23063      0.18881
96............................................      0.24879      0.20508
97............................................      0.26725      0.22194
98............................................      0.28591      0.23947
99............................................      0.30502      0.25760
100...........................................      0.32431      0.27640
101...........................................      0.34372      0.29564
102...........................................      0.36307      0.31511
103...........................................      0.38223      0.33471
104...........................................      0.40097      0.35426
105...........................................      0.41863      0.37356
106...........................................      0.43581      0.39243
107...........................................      0.45234      0.41085
108...........................................      0.46796      0.42844
109...........................................      0.48288      0.44529
110...........................................      0.49240      0.46134
111...........................................      0.49374      0.47665
112...........................................      0.49507      0.49112
113...........................................      0.49651      0.49746
114...........................................      0.49795      0.49840
115...........................................      0.49930      0.49950
116...........................................      0.49960      0.49975
117...........................................      0.49980      0.49985
118...........................................      0.49995      0.50000
119...........................................      0.50000      0.50000
120...........................................      1.00000      1.00000
------------------------------------------------------------------------

    (f) Applicability date. This section applies for plan years 
beginning on or after January 1, 2023.
0
Par. 3. Section 1.431(c)(6)-1 is revised to read as follows:


Sec.  1.431(c)(6)-1   Mortality tables used to determine current 
liability.

    (a) Mortality tables used to determine current liability. In 
accordance with section 431(c)(6)(D), the mortality assumptions that 
apply to a single-employer defined benefit plan for the plan year 
pursuant to sections 430(h)(3)(A) and 430(h)(3)(D) and Sec. Sec.  
1.430(h)(3)-1(a)(1) and (a)(2)(ii) are used to determine a 
multiemployer plan's current liability for purposes of applying the 
rules of section 431(c)(6). For purposes of this paragraph (a), either 
the generational mortality tables used pursuant to Sec.  1.430(h)(3)-
1(b) or the static mortality tables used pursuant to Sec.  1.430(h)(3)-
1(c) are permitted to be used without regard to whether the plan is a 
small plan. However, substitute mortality tables under Sec. Sec.  
1.430(h)(3)-1(a)(2)(i) and 1.430(h)(3)-2 are not permitted to be used 
for purposes of this paragraph (a).
    (b) Applicability date. This section applies for plan years 
beginning on or after January 1, 2023.
0
Par. 4. Section 1.433(h)(3)-1 is revised to read as follows:


Sec.  1.433(h)(3)-1   Mortality tables used to determine current 
liability.

    (a) Mortality tables used to determine current liability. In 
accordance with section 433(h)(3)(B), the mortality assumptions that 
apply to a single-employer defined benefit plan for the plan year 
pursuant to sections 430(h)(3)(A) and 430(h)(3)(D) and Sec. Sec.  
1.430(h)(3)-1(a)(1) and (a)(2)(ii) are used to determine a cooperative 
and small-employer charity (CSEC) plan's current liability under 
section 433(h). For purposes of this paragraph (a), either the 
generational mortality tables used pursuant to Sec.  1.430(h)(3)-1(b) 
or the static mortality tables used pursuant to Sec.  1.430(h)(3)-1(c) 
are permitted to be used without regard to whether the plan is a small 
plan. However, substitute mortality tables under Sec. Sec.  
1.430(h)(3)-1(a)(2)(i) and 1.430(h)(3)-2 are not permitted to be used 
for purposes of this paragraph (a).
    (b) Applicability date. This section applies for plan years 
beginning on or after January 1, 2023.

Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2022-06330 Filed 4-27-22; 8:45 am]
BILLING CODE 4830-01-P