SECTION 13. — Internal Revenue Bulletin 2008-42

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 a 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 2007, the liability to be reported is the Current Liability determined in accordance with § 412(l) as it existed prior to PPA ’06 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.

(2) 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 20 years before the Base Year, 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, deferred to age 55 factors at quinquennial ages from 20 to 50.

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the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. section 6103.

DRAFTING INFORMATION

The principal author of this revenue procedure is Carolyn E. Zimmerman of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this revenue procedure, please contact Ms. Zimmerman at retirementplanquestions@irs.gov .

(44 U.S.C. section 3507) under control number 1545–2073.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

The collection of information in this revenue procedure is in sections 3 through 13. This collection of information is required to evaluate, process and obtain approval of the request for the use of substitute mortality tables. This information will be used to make determinations under § 430(h)(3) of the Code. The likely respondents are businesses or other

for-profit institutions and nonprofit institutions.

The estimated total annual reporting/recordkeeping burden is 25,400 hours.

The estimated annual burden per respondent/recordkeeper varies from 335 to 681 hours, depending on individual circumstances, with an estimated average burden of 508 hours. The estimated annual number of respondents/recordkeepers is 50.

The estimated annual frequency of responses is once every 10 years.

Books or records relating to a collection of information must be retained as long as their contents may become material in

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. 2008–4 or its successors (especially concerning signatures and penalties of perjury statement)? (See paragraphs (1) and (2) of subsection 3.03)
Have you included a statement of proposed deletions? (See paragraph (3) of subsection 3.03)
Have you included the user fee required under Rev. Proc. 2008–8 or its successors? (See subsection 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 subsection 5.03)
Have you identified the first day of the first plan year for which the use of substitute mortality tables is requested? (See subsection 5.03)
Have you stated the number of years for which the use of substitute mortality tables is requested? (See subsection 5.03)
Have you identified the Base Year of the Base Tables? (See subsection 5.03)
Have you included a description of the populations for which the use of substitute mortality tables is requested? (See subsection 5.04)
Have you included a description of the populations for which the use of substitute mortality tables is not requested? (See subsection 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 subsection 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 subsection 6.03? (See section 6)

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Have you identified the Experience Study Period for each plan in the Permissive Group? (See subsections 7.01 through 7.03)
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 subsection 7.04)
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 subsections 9.01, 9.04, and 9.06.) Alternatively, have you provided other information that demonstrates that the number of deaths during the Lack of Credible Mortality Experience Demonstration Period would not exceed 1,000? (See subsection 9.07)
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 subsections 9.01, 9.05, and 9.06) Alternatively, have you provided other information that demonstrates that the number of deaths during the Lack of Credible Mortality Experience Demonstration Period would not exceed 1,000? (See subsection 9.07)
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 subsection 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 subsection 10.02)
Have you included complete copies of each Unadjusted Base Table? (See subsection 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 subsections 11.02 and 11.03)
Have you provided the rationale(s) for use of the particular graduation method(s) selected? (See subsection 11.04)
Have you described the method used to extend the Base Tables to extreme ages? (See subsection 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 subsection 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 subsection 12.01)
Have you included (three) sample generational mortality tables as of the Requested Effective Plan Year? (See subsection 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 subsection 13.02)
Have you included annuity factors for each Base Table, based on generational mortality tables for individuals whose year of birth is 20 years before the applicable Base Year? (See subsection 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 subsection 13.04)

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.02 The Agreement requires that the Borrower transfer collateral to secure the Borrower’s obligations under the Agreement;

.03 The Borrower defaults under the Agreement as a direct or indirect result of its bankruptcy (or the bankruptcy of an affiliate); and

.04 As soon as is commercially practicable after the default (but in no event more than 30 days following the default), the Lender applies collateral provided under the Agreement (or cash generated by the sale of such collateral) to the purchase of identical securities.