Alert / Retirement
Mortality Rates Steady for 2017 DB Plan Funding

Plan sponsors have at least another year before they need to start worrying about new plan funding mortality assumptions. A recent IRS Notice defined the tables for 2017 to have the same underlying basis as 2016’s tables, though the Notice does indicate an adjustment will likely occur for 2018 plan years.

This is no surprise, as the Society of Actuaries released a 2014 study on mortality indicating that plan participants are living longer than anticipated. Since the IRS previously relied on this research, many expected to see the mandated mortality for plan funding change. What’s that mean for plan sponsors? A switch to the new tables will mean a 5–10 percent increase in their liabilities.

What strategies can defined benefit plan sponsors consider while looking ahead? Read more in this update from Vice President, Consulting Actuary Pam Devling of Lockton’s Retirement Services Practice.

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