The Pension Benefit Guaranty Corporation updated its 4044 and 4050 mortality tables for 2024. The tables are named after the sections of the Employee Retirement Income Security Act to which they apply.
The 4044 table is used for calculating withdrawal liabilities when a single-employer plan terminates involuntarily or via distress termination, or when a multiemployer plan terminates following a mass withdrawal.
Under 4050, a unisex mortality table is used to determine benefit transfer amount under the Missing Participants Program, in which a terminating plan transfers to the PBGC the benefits owed to a missing participant. When that participant is found, the participant is given the benefits.
Scott Hittner, the chief actuary at October Three Consulting, says Section 335 of the SECURE 2.0 Act of 2022, which caps annual mortality improvements at 0.78%, does not apply to these tables. Section 335 only applies to tables used “for minimum required contribution purposes.”
The tables are available here.
Tags: ERISA, mortality rate, mortality tables, PBGC, secure 2.0, Single Employer Pension Plan