Minimum funding standards for single-employer defined benefit pension plans

Significant Index No. 0430.00-00
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
Re:
Dear
201506019
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
Females
Males
Females Age
0.000120
0.000176
0.000467 8
0.000114
0.000171
0.000304 9
0.000115
0.000173
10
0.000227
0.000117
0.000179
0.000170 11
0.000121
0.000186
0.000154 12
0.000127
0.000196
0.000144 13
0.000135
0.000210
0.000135 14
2015060 .. 1,9
2
Nondisabled
Age Males
15 0.000222
16 0.000234
17 0.000248
18 0.000261
19 0.000273
20 0.000285
21 0.000298
0.000308
22
23 0.000321
24 0.000330
25 0.000340
26 0.000356
27 0.000363
0.000374
28
29 0.000392
30 0.000422
31 0.000475
32 0.000535
33 0.000600
34 0.000668
0.000735
35
0.000800
36
37 0.000860
0.000910
38
0.000950
39
0.000983
40
41 0.001009
42 0.001030
43 0.001052
0.001077
44
45 0.001110
0.001155
46
0.001219
47
0.001304
48
49 0.001416
50 0.001558
51 0.001734
52 0.001944
0.002191
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
0.000190
0.000198
0.000208
0.000219
0.000231
0.000244
0.000258
0.000271
0.000282
0.000292
0.000300
0.000306
0.000312
0.000320
0.000332
0.000353
0.000388
0.000443
0.000519
0.000616
0.000734
0.000872
0.001031
0.001212
0.001416
0.001643
0.001895
0.002173
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
0.002475
0.002793
0.003142
0.003518
0.003914
0.004329
0.004764
0.005224
0.005712
0.006236
0.006804
0.007427
0.008120
0.008899
0.009786
0.010806
0.011992
0.013378
0.015007
0.016925
0.019182
0.021832
0.024931
0.028537
0.032707
0.037500
0.042971
0.049174
0.056160
0.063974
0.072654
0.082233
0.092736
0.104183
0.116588
0.129962
0.144313
0.159648
0.177311
Nondisabled
Females
0.002477
0.002809
0.003169
0.003559
0.003982
0.004437
0.004929
0.005458
0.006027
0.006640
0.007302
0.008018
0.008800
0.009660
0.010616
0.011684
0.012887
0.014246
0.015786
0.017535
0.019523
0.021783
0.024352
0.027276
0.030600
0.034379
0.038665
0.043514
0.048980
0.055117
0.061976
0.069605
0.078051
0.087355
0.097556
0.108688
0.120781
0.133862
0.147953 z·otso6o .. 19
3
Nondisabled Nondisabled Nondisabled Nondisabled
Age Males Females Age Males Females
93 0.197891 0.163072 107 0.400000 0.373153
94 0.220338 0.179232 108 0.400000 0.377344
95 0.243709 0.196444 109 0.400000 0.381275
96 0.267170 0.214712 110 0.400000 0.385105
97 0.289993 0.234044 111 0.400000 0.388873
98 0.311560 0.254439 112 0.400000 0.392502
99 0.331357 0.275902 113 0.400000 0.395796
100 0.348981 0.298431 114 0.400000 0.398439
101 0.364135 0.318798 115 0.400000 0.400000
102 0.376629 0.334489 116 0.400000 0.400000
103 0.386383 0.346489 117 0.400000 0.400000
104 0.393422 0.355665 118 0.400000 0.400000
105 0.397881 0.362767 119 0.400000 0.400000
106 0.400000 0.368425 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), ~01506019 4

(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
(ID# ) at( ) cc:
Sincerely,
David M. Ziegler, Manager
Employee Plans Actuarial Group 2