SECTION 2. BACKGROUND

INFORMATION

.01 Statutory background . Section 412 sets forth minimum funding requirements for defined benefit pension plans. In ac

34Section 302 of the Employee Retirement Income Security Act of 1974, Pub. L. 93–406, as amended (ERISA) sets forth funding rules that are parallel to those in § 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 § 430 of the Code. Section 303(h)(3)(C) of ERISA requires the approval of the Secretary of Treasury for the use of substitute mortality tables, and this revenue procedure applies for that purpose.

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experience study for the population, and (3) in the case of a plan with partially credible mortality experience, a weighting factor based on the credibility of the plan’s experience.

.06 Controlled group consistency re- quirement . Except as provided by the Secretary, a plan sponsor may not use substitute mortality tables for any plan for a plan year unless substitute mortality tables are established and used for each other plan subject to § 430 that is maintained by the plan sponsor or a member of the plan sponsor’s controlled group for that plan year (or, for plans with different plan years, a portion of that plan year). Under the regulations, the use of substitute mortality tables for one plan is not prohibited merely because another plan maintained by the plan sponsor (or by a member of the plan sponsor’s controlled group) may not use substitute mortality tables because neither the males nor the females under that other plan have credible mortality information for a plan year.

.07 Treatment of disabled individuals . If separate mortality tables are used for disabled individuals pursuant to § 430(h) (3)(D), then those individuals are disregarded for all purposes under this revenue procedure.

.08 Treatment of multiple-employer plans . A multiple-employer plan for which the proportion of the plan’s funding target attributable to employees and former employees of the employer and members of the employer’s controlled group is greater than 50 percent is treated as maintained by that employer for purposes of the controlled group consistency requirement pursuant to § 1.430(h)(3)–2(c)(7)(ii). By contrast, any other multiple-employer plan in which the employer or a member of the employer’s controlled group participates is not treated as maintained by the employer for purposes of the controlled group consistency requirement and is disregarded under this revenue procedure.