IRS Updates Mortality Improvement Rates, Static Mortality Tables for 2023

IRS on April 27 issued updated mortality improvement rates and static mortality tables for defined benefit plans for 2023. The update is contained in Notice 2022-22.

Notice 2022-22 specifies updated mortality improvement rates and static mortality tables to be used for DB plans under Internal Revenue Code Section 430(h)(3)(A) and ERISA Section 303(h)(3)(A). These updated mortality improvement rates and static tables apply for calculating funding targets and other items for valuation dates that will occur during the 2023 calendar year.

Mortality Improvement Rates. The mortality improvement rates for valuation dates occurring during 2023 are the mortality improvement rates in the Mortality Improvement Scale MP-2021 Report. 

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 Notice 2022-22. The mortality rates in these tables have been developed from the methodology and base mortality rates set forth in Treas. Reg. §1.430(h)(3)-1(c) and (d) using the mortality improvement rates the Notice specifies.

The static mortality table that applies under Section 417(e)(3) for distributions with annuity starting dates occurring during stability periods beginning in 2023 is set forth in the appendix to Notice 2022-22 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 2021 in accordance with the procedures set forth in Rev. Rul. 2007-67.