Notice 2022-22

PURPOSE

This notice specifies updated mortality improvement rates and static mortality tables to be used for defined benefit pension

Bulletin No. 2022–20 1057 May 16, 2022

plans under § 430(h)(3)(A) of the Internal Revenue Code (Code) and section 303(h) (3)(A) of the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, as amended (ERISA). These updated mortality improvement rates and static mortality tables, which are being issued pursuant to the regulations under section 430(h)(3)(A) of the Code, apply for purposes of determining present value and making any other computation under section 430 for valuation dates occurring during the 2023 calendar year.

This notice also includes a modified unisex version of the mortality tables for use in determining minimum present value under section 417(e)(3) of the Code and section 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in the 2023 calendar year.

BACKGROUND

Section 412 of the Code provides minimum funding requirements that generally apply for defined benefit plans. Section 412(a)(2) provides that section 430 sets forth the minimum funding requirements that apply to defined benefit plans that are not multiemployer plans or CSEC plans. Section 430(a) defines the minimum required contribution for such a plan 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.

Section 430(h)(3) provides rules regarding the mortality tables that generally are 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 present value or making any computation under section 430. Those tables are to be based on the actual experience of pension plans and projected trends in that experience. Section 430(h)(3)(B) requires the Secretary to revise any table in effect under section

430(h)(3)(A) at least every 10 years to reflect the actual experience of pension plans and projected trends in that experience.

Section 430(h)(3)(C) provides that, upon request by a plan sponsor and approval by the Secretary, substitute mortality tables that meet the applicable requirements may be used in lieu of the standard mortality tables provided under section 430(h)(3)(A). 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.

Mortality Tables for Purposes of § 430

Treas. Reg. § 1.430(h)(3)-1 provides rules regarding the mortality tables used under section 430(h)(3)(A) for plan years beginning on or after January 1, 2018. The mortality tables used under section 430(h)(3)(A) are based on the tables in the RP‑2014 Mortality Tables Report, ¹ adjusted for mortality improvement. Section 1.430(h)(3)-1(d) sets forth base mortality tables with a base year of 2006.

Section 1.430(h)(3)-1(a) permits plan sponsors to apply the projection of mortality improvement in one of two ways: through use of static tables that are updated annually to reflect expected improvements in mortality or through use of generational tables. Section 1.430(h)(3)-1(a) (2)(i)(C) provides that, for valuation dates occurring in calendar years after 2018, updated mortality improvement rates that take into account new data for mortality improvement trends of the general population, along with static mortality tables that reflect those updated mortality improvement rates, will be provided through guidance published in the Internal Revenue Bulletin. ²

Treas. Reg. § 1.430(h)(3)-2 provides rules for the use of substitute mortality tables that are based on the mortality experience of the plan. Pursuant to § 1.430(h) (3)-2(c)(3)(ii), substitute mortality tables are developed using the mortality improvement rates used under § 1.430(h) (3)-1.

Application of These Tables for Other Funding Rules

Section 431 provides the minimum funding standards for multiemployer plans described in section 414(f) that are subject to section 412. Section 431(c)(6) (D)(iv) provides that the Secretary may by regulation prescribe mortality tables to be used in determining current liability for purposes of section 431(c)(6) (B). Treas. Reg. § 1.431(c)(6)-1 provides that the same mortality assumptions that apply for purposes of section 430(h)(3) (A) and § 1.430(h)(3)-1(a)(2) are used to determine a multiemployer plan’s current liability for purposes of applying the full-funding rules of § 431(c)(6). For this purpose, a multiemployer plan may apply either the static mortality tables or the generational mortality tables (as updated pursuant to § 1.430(h)(3)-1(a)(2)(i)(C) and (a)(3)).

Section 433 provides the minimum funding standards for CSEC plans described in section 414(y). Section 433(h) (3)(B)(i) provides that the Secretary may by regulation prescribe mortality tables to be used in determining current liability for purposes of section 433(c)(7)(C). Treas. Reg. § 1.433(h)(3)-1(a) provides that the mortality tables described in section 430(h) (3)(A) are to be used to determine current liability under section 433(c)(7)(C).

Application of Mortality Tables for Minimum Present Value Requirements under Section 417(e)(3)

Section 417(e)(3) generally provides that the present value of certain accelerated forms of benefit 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 under section 430(h)(3)(A) (without regard to section 430(h)(3)(C) or (D)), modified as appropriate by the Secretary.

1 The RP-2014 Mortality Tables Report, as revised November 2014, is available at https://www.soa.org/Files/Research/Exp-Study/research-2014-rp-report.pdf. <?> The RP-2014 Mortality Tables Report, as revised November 2014, is available at https://www.soa.org/Files/Research/Exp-Study/research-2014-rp-report.pdf.

2 Notice 2018-2, 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, provide mortality improvement rates and static mortality tables that apply for valuation dates occurring during 2019, 2020, 2021, and 2022, respectively.

May 16, 2022 1058 Bulletin No. 2022–20

Rev. Rul. 2007-67, 2007-2 CB 1047, provides that, except as otherwise stated in future guidance, the applicable mortality table under section 417(e)(3) is a static mortality table set forth in published guidance that is developed based on a fixed blend of 50 percent of the static male combined mortality rates and 50 percent of the static female combined mortality rates used under § 1.430(h)(3)1. Rev. Rul. 2007-67 also provides that the applicable mortality table for a calendar year applies to distributions with annuity starting dates that occur during stability periods that begin during that calendar year.

MORTALITY IMPROVEMENT RATES FOR 2023

The mortality improvement rates for valuation dates occurring during 2023 are the mortality improvement rates in

the Mortality Improvement Scale MP2021 Report (issued by the Retirement Plans Experience Committee (RPEC) of the Society of Actuaries and available at https://www.soa.org/globalassets/ assets/files/resources/experience-studies/2021/2021-mp-scale-report.pdf).

STATIC MORTALITY TABLES FOR 2023

The static mortality tables that apply under section 430(h)(3)(A) for valuation dates occurring during 2023 are set forth in the appendix to this notice. The mortality rates in these tables have been developed from the methodology and base mortality rates set forth in § 1.430(h)(3)-1(c) and (d) using the mortality improvement rates specified in the previous section of this notice.

The static mortality table that applies under section 417(e)(3) for distributions

APPENDIX

Mortality Tables for 2023

with annuity starting dates occurring during stability periods beginning in 2023 is set forth in the appendix to this notice in the column labeled “Unisex.” The mortality rates in this table are derived from the mortality tables specified under section 430(h)(3)(A) for 2023 in accordance with the procedures set forth in Rev. Rul. 2007-67.

Drafting Information

The principal authors of this notice are Arslan Malik and Linda S. F. Marshall of the Office of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For further information regarding this notice, contact Arslan Malik or Linda Marshall at (202) 317-6700 (not a tollfree number).

Valuation Dates Occurring During 2023 and Distributions Subject to Section 417(e)(3) with Annuity Starting Dates During

Stability Periods Beginning in 2023

Male Male Male Female Female Female Unisex

2023 Non-Annuitant

Table

2023 Table for Distributions

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

Non-Annuitant Annuitant Table for Small Non-Annuitant Annuitant Table for Small Subject to

Age Table Table Plans Table Table Plans § 417(e)(3)

0 0.002575 0.002575 0.002575 0.002261 0.002261 0.002261 0.002418 1 0.000151 0.000151 0.000151 0.000142 0.000142 0.000142 0.000147 2 0.000104 0.000104 0.000104 0.000094 0.000094 0.000094 0.000099 3 0.000087 0.000087 0.000087 0.000071 0.000071 0.000071 0.000079 4 0.000069 0.000069 0.000069 0.000054 0.000054 0.000054 0.000062 5 0.000061 0.000061 0.000061 0.000050 0.000050 0.000050 0.000056 6 0.000056 0.000056 0.000056 0.000046 0.000046 0.000046 0.000051 7 0.000050 0.000050 0.000050 0.000043 0.000043 0.000043 0.000047 8 0.000043 0.000043 0.000043 0.000041 0.000041 0.000041 0.000042 9 0.000035 0.000035 0.000035 0.000038 0.000038 0.000038 0.000037 10 0.000030 0.000030 0.000030 0.000036 0.000036 0.000036 0.000033 11 0.000032 0.000032 0.000032 0.000038 0.000038 0.000038 0.000035 12 0.000048 0.000048 0.000048 0.000044 0.000044 0.000044 0.000046 13 0.000065 0.000065 0.000065 0.000051 0.000051 0.000051 0.000058

Age

2023 Non-Annuitant

Table

Bulletin No. 2022–20 1059 May 16, 2022

Male Male Male Female Female Female Unisex

2023 Non-Annuitant

Table

2023 Table for Distributions

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

Non-Annuitant Annuitant Table for Small Non-Annuitant Annuitant Table for Small Subject to

Age Table Table Plans Table Table Plans § 417(e)(3)

14 0.000081 0.000081 0.000081 0.000057 0.000057 0.000057 0.000069 15 0.000097 0.000097 0.000097 0.000063 0.000063 0.000063 0.000080 16 0.000115 0.000115 0.000115 0.000068 0.000068 0.000068 0.000092 17 0.000133 0.000133 0.000133 0.000073 0.000073 0.000073 0.000103 18 0.000153 0.000153 0.000153 0.000078 0.000078 0.000078 0.000116 19 0.000174 0.000174 0.000174 0.000081 0.000081 0.000081 0.000128 20 0.000194 0.000194 0.000194 0.000082 0.000082 0.000082 0.000138 21 0.000221 0.000221 0.000221 0.000085 0.000085 0.000085 0.000153 22 0.000247 0.000247 0.000247 0.000088 0.000088 0.000088 0.000168 23 0.000268 0.000268 0.000268 0.000093 0.000093 0.000093 0.000181 24 0.000282 0.000282 0.000282 0.000097 0.000097 0.000097 0.000190 25 0.000276 0.000276 0.000276 0.000101 0.000101 0.000101 0.000189 26 0.000276 0.000276 0.000276 0.000107 0.000107 0.000107 0.000192 27 0.000280 0.000280 0.000280 0.000114 0.000114 0.000114 0.000197 28 0.000289 0.000289 0.000289 0.000121 0.000121 0.000121 0.000205 29 0.000303 0.000303 0.000303 0.000130 0.000130 0.000130 0.000217 30 0.000321 0.000321 0.000321 0.000143 0.000143 0.000143 0.000232 31 0.000342 0.000342 0.000342 0.000156 0.000156 0.000156 0.000249 32 0.000366 0.000366 0.000366 0.000171 0.000171 0.000171 0.000269 33 0.000391 0.000391 0.000391 0.000186 0.000186 0.000186 0.000289 34 0.000414 0.000414 0.000414 0.000202 0.000202 0.000202 0.000308 35 0.000436 0.000436 0.000436 0.000217 0.000217 0.000217 0.000327 36 0.000455 0.000455 0.000455 0.000231 0.000231 0.000231 0.000343 37 0.000474 0.000474 0.000474 0.000247 0.000247 0.000247 0.000361 38 0.000494 0.000494 0.000494 0.000263 0.000263 0.000263 0.000379 39 0.000516 0.000516 0.000516 0.000281 0.000281 0.000281 0.000399 40 0.000542 0.000542 0.000542 0.000299 0.000299 0.000299 0.000421 41 0.000570 0.000576 0.000570 0.000318 0.000316 0.000318 0.000444 42 0.000603 0.000656 0.000603 0.000339 0.000359 0.000339 0.000471 43 0.000644 0.000779 0.000646 0.000363 0.000425 0.000363 0.000505 44 0.000693 0.000943 0.000698 0.000391 0.000516 0.000391 0.000545 45 0.000750 0.001146 0.000759 0.000423 0.000631 0.000425 0.000592 46 0.000817 0.001390 0.000833 0.000459 0.000771 0.000464 0.000649 47 0.000891 0.001675 0.000916 0.000500 0.000939 0.000511 0.000714 48 0.000973 0.002004 0.001010 0.000546 0.001138 0.000566 0.000788 49 0.001066 0.002383 0.001120 0.000596 0.001371 0.000628 0.000874 50 0.001169 0.002817 0.001244 0.000654 0.001642 0.000704 0.000974 51 0.001284 0.003008 0.001370 0.000719 0.001733 0.000778 0.001074 52 0.001416 0.003218 0.001540 0.000795 0.001848 0.000873 0.001207 53 0.001556 0.003426 0.001734 0.000883 0.001994 0.000988 0.001361 54 0.001714 0.003652 0.001964 0.000985 0.002170 0.001126 0.001545

Age

2023 Non-Annuitant

Table

May 16, 2022 1060 Bulletin No. 2022–20

Male Male Male Female Female Female Unisex

2023 Non-Annuitant

Table

2023 Table for Distributions

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

Non-Annuitant Annuitant Table for Small Non-Annuitant Annuitant Table for Small Subject to

Age Table Table Plans Table Table Plans § 417(e)(3)

55 0.001898 0.003903 0.002312 0.001100 0.002380 0.001343 0.001828 56 0.002115 0.004189 0.002773 0.001228 0.002624 0.001627 0.002200 57 0.002374 0.004515 0.003183 0.001370 0.002907 0.001893 0.002538 58 0.002685 0.004885 0.003653 0.001525 0.003225 0.002184 0.002919 59 0.003051 0.005302 0.004173 0.001690 0.003580 0.002514 0.003344 60 0.003483 0.005773 0.004773 0.001865 0.003965 0.002905 0.003839 61 0.003980 0.006292 0.005445 0.002050 0.004381 0.003403 0.004424 62 0.004550 0.006866 0.006195 0.002245 0.004825 0.003947 0.005071 63 0.005206 0.007514 0.007030 0.002456 0.005304 0.004598 0.005814 64 0.005945 0.008227 0.007852 0.002686 0.005826 0.005212 0.006532 65 0.006759 0.008992 0.008731 0.002929 0.006378 0.005879 0.007305 66 0.007575 0.009837 0.009683 0.003262 0.006994 0.006665 0.008174 67 0.008460 0.010755 0.010643 0.003628 0.007673 0.007417 0.009030 68 0.009432 0.011768 0.011684 0.004043 0.008438 0.008228 0.009956 69 0.010530 0.012926 0.012857 0.004516 0.009314 0.009135 0.010996 70 0.011740 0.014211 0.014147 0.005055 0.010311 0.010133 0.012140 71 0.013105 0.015669 0.015609 0.005670 0.011443 0.011267 0.013438 72 0.014651 0.017334 0.017278 0.006377 0.012744 0.012571 0.014925 73 0.016393 0.019222 0.019171 0.007184 0.014219 0.014052 0.016612 74 0.018381 0.021392 0.021345 0.008110 0.015905 0.015747 0.018546 75 0.020625 0.023860 0.023818 0.009171 0.017832 0.017685 0.020752 76 0.023153 0.026669 0.026632 0.010382 0.020029 0.019898 0.023265 77 0.026011 0.029884 0.029854 0.011771 0.022555 0.022445 0.026150 78 0.029220 0.033542 0.033520 0.013355 0.025456 0.025374 0.029447 79 0.032800 0.037690 0.037677 0.015162 0.028794 0.028748 0.033213 80 0.036804 0.042409 0.042409 0.017202 0.032611 0.032611 0.037510 81 0.038779 0.047564 0.047564 0.018997 0.036875 0.036875 0.042220 82 0.042471 0.053493 0.053493 0.022399 0.041763 0.041763 0.047628 83 0.047875 0.060210 0.060210 0.027462 0.047381 0.047381 0.053796 84 0.055112 0.067926 0.067926 0.034254 0.053827 0.053827 0.060877 85 0.064208 0.076650 0.076650 0.042829 0.061163 0.061163 0.068907 86 0.075247 0.086534 0.086534 0.053201 0.069445 0.069445 0.077990 87 0.088214 0.097631 0.097631 0.065455 0.078806 0.078806 0.088219 88 0.103217 0.110080 0.110080 0.079602 0.089236 0.089236 0.099658 89 0.120285 0.123982 0.123982 0.095631 0.100765 0.100765 0.112374 90 0.139404 0.139404 0.139404 0.113553 0.113553 0.113553 0.126479 91 0.155723 0.155723 0.155723 0.127432 0.127432 0.127432 0.141578 92 0.172495 0.172495 0.172495 0.142079 0.142079 0.142079 0.157287 93 0.189416 0.189416 0.189416 0.157436 0.157436 0.157436 0.173426 94 0.206322 0.206322 0.206322 0.173120 0.173120 0.173120 0.189721 95 0.222904 0.222904 0.222904 0.189259 0.189259 0.189259 0.206082

Age

2023 Non-Annuitant

Table

Bulletin No. 2022–20 1061 May 16, 2022

Male Male Male Female Female Female Unisex

2023 Non-Annuitant

Table

2023 Table for Distributions

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

2023 Annuitant

Table

2023 Optional Combined Table for Small

Plans

Non-Annuitant Annuitant Table for Small Non-Annuitant Annuitant Table for Small Subject to

Age Table Table Plans Table Table Plans § 417(e)(3)

96 0.241036 0.241036 0.241036 0.206635 0.206635 0.206635 0.223836 97 0.259609 0.259609 0.259609 0.224625 0.224625 0.224625 0.242117 98 0.278783 0.278783 0.278783 0.243330 0.243330 0.243330 0.261057 99 0.298557 0.298557 0.298557 0.262575 0.262575 0.262575 0.280566 100 0.318715 0.318715 0.318715 0.282507 0.282507 0.282507 0.300611 101 0.339088 0.339088 0.339088 0.302631 0.302631 0.302631 0.320860 102 0.359387 0.359387 0.359387 0.323025 0.323025 0.323025 0.341206 103 0.379567 0.379567 0.379567 0.343404 0.343404 0.343404 0.361486 104 0.399139 0.399139 0.399139 0.363591 0.363591 0.363591 0.381365 105 0.417508 0.417508 0.417508 0.383361 0.383361 0.383361 0.400435 106 0.435423 0.435423 0.435423 0.402637 0.402637 0.402637 0.419030 107 0.452373 0.452373 0.452373 0.420905 0.420905 0.420905 0.436639 108 0.468127 0.468127 0.468127 0.438323 0.438323 0.438323 0.453225 109 0.483049 0.483049 0.483049 0.454656 0.454656 0.454656 0.468853 110 0.496973 0.496973 0.496973 0.469951 0.469951 0.469951 0.483462 111 0.501966 0.501966 0.501966 0.484210 0.484210 0.484210 0.493088 112 0.501208 0.501208 0.501208 0.497359 0.497359 0.497359 0.499284 113 0.500603 0.500603 0.500603 0.502764 0.502764 0.502764 0.501684 114 0.500001 0.500001 0.500001 0.501052 0.501052 0.501052 0.500527 115 0.499300 0.499300 0.499300 0.499500 0.499500 0.499500 0.499400 116 0.499600 0.499600 0.499600 0.499750 0.499750 0.499750 0.499675 117 0.499800 0.499800 0.499800 0.499850 0.499850 0.499850 0.499825 118 0.499950 0.499950 0.499950 0.500000 0.500000 0.500000 0.499975 119 0.500000 0.500000 0.500000 0.500000 0.500000 0.500000 0.500000 120 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000

Age

2023 Non-Annuitant

Table

26 CFR 1.1441-1(e)(5) and (6). Proposed Amendments to the Qualified Intermediary Agreement in Rev. Proc. 2017-15.