Minimum funding standards for single-employer defined benefit pension plans

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
Re:
Dear
201506013
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
NOV 1 3 2014
{the "Plan")
This letter is to inform you that your request to use substitute mortality tables for making computations under section 430 of the Internal Revenue Code (the "Code") for the Plan has been granted with respect to the populations specified in this letter, effective for a period of up to 10 years beginning with the plan year commencing January 1, 2015.
Your request has been granted in accordance with section 430(h)(3) of the Code and section 303(h)(3) of the Employee Retirement Income Security Act of 1974 {"ERISA").
In granting this approval, we have considered only the development of the substitute mortality rates and whether they sufficiently reflect the mortality experience of the applicable plan populations. Accordingly, we are not expressing any opinion as to the accuracy or acceptability of any calculations or other material submitted with your request.
Permission is hereby granted to use the male and female substitute mortality rates shown in the tables below:
Nondisabled
Age Males
1 0.000520
2 0.000351
3 0.000292
4 0.000227
5 0.000208
6 0.000199
7 0.000191
Nondisabled Nondisabled
Nondisabled
Males Females
Females Age
0.000467 0.000176 0.000120
8
0.000171 0.000114
0.000304 9
0.000227 0.000173 0.000115
10
0.000179 0.000117
11
0.000170
0.000186 0.000121
0.000154 12
0.000144 0.000196 0.000127
13
0.000135 0.000210 0.000135
14
201506018
Nondisabled
Age Males
15 0.000222
16 0.000234
17 0.000248
18 0.000261
19 0.000273
20 0.000285
21 0.000297
22 0.000309
23 0.000321
24 0.000333
25 0.000346
26 0.000359
27 0.000374
28 0.000391
29 0.000412
30 0.000436
31 0.000465
32 0.000501
0.000543
33
34 0.000593
35 0.000653
36 0.000724
37 0.000806
38 0.000901
0.001011
39
40 0.001135
41 0.001276
42 0.001435
0.001612
43
44 0.001809
45 0.002027
0.002266
46
47 0.002527
0.002811
48
49 0.003119
0.003450
50
51 0.003806
0.004186
52
0.004589
53
Nondisabled
Females
0.000145
0.000152
0.000160
0.000163
0.000163
0.000163
0.000162
0.000163
0.000168
0.000173
0.000180
0.000189
0.000201
0.000215
0.000233
0.000256
0.000287
0.000327
0.000377
0.000441
0.000520
0.000616
0.000732
0.000868
0.001028
0.001213
0.001424
0.001662
0.001927
0.002220
0.002541
0.002889
0.003262
0.003659
0.004078
0.004514
0.004965
0.005429
0.005907
2
Age
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
Nondisabled
Males
0.005018
0.005474
0.005958
0.006476
0.007032
0.007632
0.008285
0.008999
0.009787
0.010663
0.011642
0.012743
0.013988
0.015398
0.016998
0.018815
0.020878
0.023216
0.025864
0.028852
0.032216
0.035986
0.040196
0.044872
0.050041
0.055729
0.061958
0.068748
0.076117
0.084082
0.092658
0.101855
0.111682
0.122146
0.133250
0.144997
0.157387
0.170420
0.184094
Nondisabled
Females
0.006399
0.006906
0.007428
0.007969
0.008532
0.009122
0.009746
0.010411
0.011125
0.011894
0.012728
0.013633
0.014618
0.015691
0.016864
0.018150
0.019565
0.021131
0.022874
0.024826
0.027026
0.029516
0.032341
0.035546
0.039178
0.043281
0.047899
0.053073
0.058842
0.065242
0.072305
0.080057
0.088522
0.097717
0.107654
0.118339
0.129778
0.141970
0.154916
201506018
3
Nondisabled Nondisabled Nondisabled Nondisabled
Age Males Females Age Males Females
93 0.198409 0.168615 107 0.400000 0.322725
94 0.213363 0.183065 108 0.400000 0.337441
95 0.228956 0.198266
109 0.400000 0.351544
96 0.247094 0.211215 110 0.400000 0.364617
97 0.268391 0.220214
111 0.400000 0.376246
98 0.291103 0.226988 112 0.400000 0.386015
99 0.313746 0.232961 113 0.400000 0.393507
100 0.335097 0.239247 114 0.400000 0.398308
101 0.354193 0.246659 115 0.400000 0.400000
102 0.370331 0.255702
116 0.400000 0.400000
103 0.383070 0.266579 117 0.400000 0.400000
104 0.392229 0.279187
118 0.400000 0.400000
105 0.397886 0.293116 119 0.400000 0.400000
106 0.400000 0.307811 120 1.000000 1.000000
The above tables will be used for all male and female participants, respectively, in the
Plan. The above rates were developed based on an experience study period from
January 1, 2008, through December 31, 2012, and were calculated using the Whittaker-
Henderson graduation method. The base year for the resulting tables is 2010. The
Service has reviewed the substitute mortality rates and supporting information, and has determined that based on the information submitted, the rates sufficiently reflect the mortality experience of the applicable plan populations.
Your attention is called to section 430(h)(3)(C)(ii) of the Code, section 303(h)(3)(C)(ii) of
ERISA, and section 1.430(h)(3)-2(d)(4) of the regulations, which describe the circumstances in which the use of the substitute mortality table will terminate before the end of the 1 0-year period described above. In general, the substitute mortality tables can no longer be used as of the earliest of:

(1) The plan year in which the plan fails to satisfy the requirements of paragraph
1.430(h)(3)-2(c)(1) of the regulations, requiring that the groups for which substitute mortality tables are used must have credible mortality experience,

(2) The plan year in which the plan fails to satisfy the requirements of paragraph
1.430(h)(3)-2(d)(1) of the regulations, regarding the requirement that other plans and populations in the controlled group must use substitute mortality tables unless it can be demonstrated that they do not have credible mortality experience,

(3) The second plan year following the plan year in which there is a significant change in individuals covered by the plan as described in paragraph 1.430(h)(3)-2(d)(4)(ii) of the regulations (generally applicable when there is a change of 20% or more in the number of individuals in the population for which the substitute mortality table is used), 4 201506018

(4) The plan year following the plan year in which a substitute mortality table used for a plan population is no longer accurately predictive of future mortality of that population, as determined by the Commissioner or as certified by the plan's actuary to the satisfaction of the Commissioner, and

(5) The date specified in guidance published in the Internal Revenue Bulletin pursuant to a replacement of mortality tables specified under section 430(h)(3)(A) and 1.430(h)(3)-1, other than annual updates to the static mortality tables issued pursuant to 1.430(h)(3)-1 (a)(3) of the regulations.
This ruling is directed only to the taxpayer that requested it. Section 611 O(k)(3) of the
Code provides that it may not be used or cited by others as precedent.
When filing Form 5500 for the plan years for which the substitute mortality tables are used, please note the information that is required to be attached to Schedule SB (Actuarial Information) in accordance with the instructions to that form.
We have sent a copy of this letter to your Authorized Representative pursuant to a power of attorney on file in this office and to the Manager, EP Classification in Baltimore, Maryland and to the Manager, EP Compliance Unit in Chicago, Illinois.
If you require further assistance in this matter, please contact
(10# ) at ( ) cc:
Sincerely,
David M. Ziegler, Manager
Employee Plans Actuarial Group 2