SECTION 13. — Internal Revenue Bulletin 2007-25

WITH RESPECT TO BASE TABLES

The following information must be provided with respect to each population for which the use of substitute mortality tables is requested:

.01 Generational Mortality Tables . Sample generational mortality tables, as of the Requested Effective Plan Year, for individuals whose years of birth are 1940, 1950, and 1960, constructed from the Base Tables using methodology in accordance with § 1.430(h)(3)–1 (except that the projection period used to determine each particular mortality improvement factor is the number of years between the Base Year and the year for which the probability of death is determined).

.02 Funding Target Comparisons . The liability of the plan(s) for which the use of substitute mortality tables is requested as of the valuation date for a plan year ending no earlier than one year and one day before the first plan year to which the substitute mortality tables will apply (the “Comparison Year”). The liability is to be measured using generational mortality tables determined in accordance with the methodology described in subsection .01 of this section. The liability is to be provided separately for active participants, terminated vested participants, and retirees and beneficiaries in pay status, and is to be determined as follows:

(1) For Comparison Years beginning in 2006, the liability to be reported is the Current Liability recalculated using the mortality tables published in § 1.412(l)(7)–1 of

the regulations, and, for comparison, what the Current Liability would have been if the substitute mortality table(s) had been used to determine Current Liability, in each case holding all other assumptions constant.

(2) For Comparison Years beginning in 2007, the liability to be reported is the Current Liability and, for comparison, what the Current Liability would have been if the substitute mortality table(s) had been used to determine Current Liability, holding all other assumptions constant.

(3) For Comparison Years beginning after 2007, the liability to be reported is the Funding Target, determined without regard to at-risk assumptions under § 430(i), and, for comparison, what the Funding Target would have been if the substitute mortality table(s) had been used to determine the Funding Target, holding all other assumptions constant.

.03 Annuity Factors . The following annuity factors based on generational mortality tables for individuals whose year of birth is 1950, determined using interest and mortality assumptions consistent with those used under subsection .02 of this section.

(1) For all Base Tables with the exception of annuitant Base Tables:

(a) Deferred to age 55 factors at quinquennial ages from 20 to 50; and

(b) Deferred to age 65 factors at quinquennial ages from 20 to 60.

(2) For all Base Tables with the exception of nonannuitant Base Tables, immediate annuity factors at quinquennial ages from 50 to 90.

.04 Graphical Displays . A comparison in the form of graphs with the X-axis representing age and the Y-axis representing the mortality rate, for each of the following pairs of mortality rates, for each population for which the use of substitute mortality tables is requested:

(1) The mortality rates from the Base Unadjusted Mortality Table and the mortality rates from the proposed Base Table; and

(2) The mortality rates from the proposed Base Table and from the applicable Standard Mortality Table (as described in section 11.06 of this revenue procedure), projected to the Base Year.

June 18, 2007 1439 2007–25 I.R.B.

his telephone number is (202) 283–9710 (not a toll-free call).

Employee Plans, Tax Exempt and Government Entities Division. For further information regarding how this revenue procedure applies to employee plans matters, contact the Employee Plans Customer

Assistance Service between the hours of 9 a.m. and 4:30 p.m. Eastern time, Monday through Friday at 1–877–829–5500 (a toll-free call). Mr. Isaacs may be reached at retirementplanquestions@irs.gov and

Appendix A

REQUEST FOR THE USE OF SUBSTITUTE MORTALITY TABLES CHECKLIST

IS YOUR SUBMISSION COMPLETE?

Instructions

The Service will be able to respond more quickly to your request for the use of substitute mortality tables if it is carefully prepared and complete. To ensure your request is in order, use this checklist. Answer each question in the checklist by indicating Y for yes, N for no, or N/A for not applicable. Explanations must be provided for N or N/A responses. Sign and date the checklist (as taxpayer or authorized representative) and place it on top of your request.

You must submit a completed copy of this checklist with your request. If a completed checklist is not submitted with your request or if explanations are not provided for N and N/A responses, then your submission will be considered incomplete for purposes of determining the first day of the 180-day period described in § 430(h)(3)(C)(v)(II) of the Code.

If you want to designate an authorized representative, have you included a properly executed Form 2848 ( Power of Attorney and Declaration of Representative )?
Have you satisfied all the requirements of Rev. Proc. 2007–4 or its successors (especially concerning signatures and penalties of perjury statement)? (See sections 3.03(1) and (2))
Have you included statement of proposed deletions? (See section 3.03(3))
Have you included the user fee required under Rev. Proc. 2007–8 or its successors? (See section 3.02)
Have you included a copy of the Base Tables which will form the basis for the substitute mortality tables whose use is requested? (See section 5.03)
Have you identified the first day of the first plan year for which the use of substitute mortality tables is requested? (See section 5.03)
Have you stated the number of years for which the use of substitute mortality tables is requested? (See section 5.03)
Have you identified the Base Year of the Base Tables? (See section 5.03)
Have you included a description of the populations for which the use of substitute mortality tables is requested? (See section 5.04)
Have you included a description of the populations for which the use of substitute mortality tables is not requested? (See section 5.04)
Have you requested that the 180-day review period not begin until a separate request is received for another plan(s) maintained by the applicant is received? (See section 5.06)
Have you identified all plans subject to § 430 maintained by the applicant, or members of the applicant’s controlled group, including the additional information required for spun-off plans under section 6.03? (See section 6)
Have you identified the Experience Study Period? (See section 7.01)
Have you included a table showing the number of deaths, for each applicable population within the Plan (or within the Permissive Group), for each year (and in total) of the Experience Study Period? (See section 7.03)
Have you included a table showing the average number of individuals during the Experience Study Period and the number of individuals within the population as of the last day of the plan year immediately preceding the plan year during which the use of substitute mortality tables is requested for each population within the Plan (or plans within the Permissive Group) for which the use of a substitute mortality table is requested? (See section 8)
Have you included a table for each plan that is not within the Permissive Group showing the number of male and female deaths during the plan’s Lack of Credible Mortality Experience Demonstration Period, including identification of the Lack of Credible Mortality Experience Demonstration Period? (See sections 9.01 and 9.04)

2007–25 I.R.B. 1440 June 18, 2007

Have you included a table for each population within the Plan (or plans within the Permissive Group) for which the use of substitute mortality tables is not requested, showing the number of deaths within the population? (See section 9.05)
Have you included a table showing the accrued benefits, counts of individuals covered under the plan, and other information for all ages (or groups of ages) for each year (and in total) of the Experience Study Period? (See section 10.01)
Have you included a description of the method(s) used to adjust the accrued benefits of individuals who left for reasons other than death? (See section 10.02)
Have you included complete copies of each Unadjusted Base Table? (See section 10.04)
Have you identified the graduation method(s) used to create the Base Table(s) from the Unadjusted Base Table(s), along with any intermediate tables resulting from applying the graduation method(s)? (See sections 11.02 and 11.03)
Have you provided the rationale(s) for use of the particular graduation method(s) selected? (See section 11.04)
Have you described the method used to extend the Base Tables to extreme ages? (See section 11.05)
Have you identified a Fixed Percentage and a mortality table associated with all Base Tables constructed using the alternate method provided in section 12? (See section 12.01)
Have you included a table showing the ratios of the mortality rates from the Unadjusted Base Mortality Table to the central age mortality rates from the Projected Applicable Standard Mortality Table for each Base Table constructed using the alternate method of section 12? (See section 12.01)
Have you included (three) sample generational mortality tables as of the Requested Effective Plan Year? (See section 13.01)
Have you included a comparison of hypothetical funding targets determined using standard mortality tables and generational tables developed from the proposed Base Tables? (See section 13.02)
Have you included annuity factors based on generational mortality tables for individuals whose year of birth is 1950 for each population for which the use of substitute mortality factors is requested? (See section 13.03)
Have you included graphical displays of the rates from the Base Unadjusted Mortality Tables, the proposed Base Tables, and the applicable Standard Mortality Tables? (See section 13.04)

June 18, 2007 1441 2007–25 I.R.B.

26 CFR 601.602: Tax forms and instructions. (Also Part 1, §§ 3504, 6011, 6061, 6302; 31.3504–1, 31.6011(a)–7, 31.6061–1, 31.6302–1.)

Rev. Proc. 2007–38

TABLE OF CONTENTS

SECTION 1. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1442

SECTION 2. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1442

SECTION 3. SIGNIFICANT CHANGES TO REV. PROC. 2003–69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1443

SECTION 4. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1443

SECTION 5. SCOPE OF REPORTING AGENT AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1443

SECTION 6. COMPLETING A REPORTING AGENT AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445

SECTION 7. SUBMITTING A REPORTING AGENT AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445

SECTION 8. SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445

SECTION 9. ADMINISTRATIVE REVIEW PROCESS FOR PROPOSED SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445

SECTION 10. EFFECT OF SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446

SECTION 11. APPEAL OF SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446

SECTION 12. INTERNAL REVENUE SERVICE CONTACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446

SECTION 13. OTHER RELATED DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446

SECTION 14. EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446

SECTION 15. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446

SECTION 16. DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446