Minimum funding standards for single-employer defined benefit pension plans

Significant Index No. 0430.00-00
TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION
Re:
Dear
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
FEB 0 4 2015
201518022
This letter constitutes notice that approval has been granted for the change in assumptions as described below. The ruling applies for the plan year beginning October 1, 2013. This ruling is made in accordance with section 430(h}(5} of the Internal Revenue Code (Code} and section 303(h)(5) of the Employee Retirement Income Security Act of 1974. Your authorized representatives reviewed and confirmed each of the rates contained in this ruling on November 10, 2014.
In issuing this ruling, we have considered only the acceptability of the new assumptions and, as necessary, the method by which the transition is to be made between the prior and the new assumptions. Accordingly, we are not expressing any opinion as to the accuracy or acceptability of any calculation or oth~r material submitted with your request. Please note that this letter addresses only specific issues arising under section 430 of the Code and the approval granted herein should not be read to imply that the Plan as it stands satisfies the requirements of other sections of the Code.
This approval applies to the following changes in assumptions:
• Retirement rates
• Disability rates
• Select and ultimate withdrawal. rates
• Percent electing a joint and survivor option
2
201518022
The retirement rates that have been approved are as follows:
10/1/20
30- 32years
Age Less than 30 years
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
10/1/20
30-32 years
Less than 30 years
Age
47
48
49
50
51
52
53
54
55
56
57
58
Over 32 years
-
Over 32 years
-
3
10/1/20
Age Less than 30 years 30-32 years
59
60
61
62
63
64
65
66
67
68
69
70
10/1/20
Age Less than 30 years 30-32 years
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
'
68
69
70
201518 0-22
Over 32 years
-
Over 32 years
'
-
4
201518022
10/1/20
Age Less than 30 years 30-32 years
Over 32 years
47
48
49
50
'
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
-
The disability rates that have been approved are as follows:
Age Rates
27 %
28 %
29
%
30 %
31 %
32 %
33
%
34 '%
35 %
36 %
37 %
38 %
39 1%
40 %
… :..;:..._
5
Disability rates (Continue d)
Age Rates
41 %
42
%
43 %
44
%
45 %
46
%
47 %
48
%
49
%
50 %
51 %
52 %
53 %
%
54
55 %
56
%
57
%
58
%
59 %
60 %
61 %
62 %
63
%
64 % ...:..::: …
201518022
The withdraw rates that have been approved are as follows:
2 4
Age/Service 1 3
0
25 %
% %
% %
26 %
%
% % %
27 %
%
% % %
28 %
%
% % %
29 %
%
% % %
%
% %
%
30 %
5
'%
%
%
%
%
~ .---
6
201518022
Withdraw rates (continued)
~e
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59+
0
%
%
%
%
%
·%
%
% o/o o/o
% o/o o/o
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
·%
1
%
%
%
%
%
%
%
%
%
%
·%
%
%
%
%
%
%
%
% o/o
%
%
%
%
%
%
%
% o/o
2
%
%
%
%
%
%
%
%
% o/o
% o/o
%
% o/o
%
% o/o
%
%
% lo/o
•%
%
%
%
% o/o
%
3
%
%
%
%
% o/o
%
%
%
%
%
% o/o
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
4
%
%
0,{,
%
%
%
%
%
%
%
%
%
% o/o
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
5
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
·%
%
%
·%
%
%
%
%
%
%
The percent electing a joint and survivor option assumption is approved as follows:
Male
Female
Percentaoe
%
%
When filing Form 5500 for the plan year beginning October 1. , please indicate on line 24 of the Schedule 58 by checking the "Yes" box that a change in non-prescribed assumptions has been made for the current year. You should also include a copy of this letter as an attachment to the Schedule SB labeled: "Schedule SB, line 24 -
Change in Non-Prescribed Actuarial Assumptions."
7
201518022
If you have any questions regarding this matter, please contact
(10# ) at
Sincerely yours,
David M. Ziegler, Manager
Employee Plans Actuarial Group 2
Cc: