IRS Releases Mortality Table Guidance for Disabled Participants

March 6, 2008 ( - Internal Revenue Service (IRS) officials have advised pension plan sponsors that they should continue using the guidance in Revenue Ruling 96-7 for mortality tables when determining benefits for disabled workers.

In   Notice 2008-29. the IRS said the tables and the rules for whether a benefit is payable on account of disability apply under §§ 430(h)(3)(D) and 431(c)(6)(D)(v) are still in force.

Revenue Ruling. 96-7, 1996-1 C.B. 59, which was effective for plan years beginning after December 31, 1995, presented mortality tables that were permitted to be used pursuant to § 412(l)(7)(C)(iii)(I) for disabilities occurring in plan years beginning before January 1, 1995, and for disabilities occurring in plan years beginning after December 31, 1994, the IRS said.

Inviting Comments

The IRS also announced it is considering issuing updated mortality tables under §§ 430(h)(3)(D) and 431(c)(6)(D)(v) that could be used for individuals who are entitled to pension plan benefits on account of disability.The IRS is inviting comments on the construction of these updated mortality tables, including suggestions for sources of updated data regarding mortality experience with disabled participants.

Officials are also asking for comments about the use of select and ultimate mortality tables under which mortality rates vary depending on the individual’s age and the number of years that the individual has been disabled.

Written comments should be submitted by June 23, 2008 . Send submissions to CC:PA:LPD:DRU (Notice 2008-29), Room 5203, Internal Revenue Service, POB 7604 Ben Franklin Station, Washington, D.C. 20044.

Comments may be hand delivered between the hours of 8 a.m. and 4 p.m., Monday through Friday, to CC:PA:LPD:DRU (Notice 2008-29),Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW.,Washington , DC , or sent electronically via the Federal eRulemaking portal at (Notice 2008-29).

The latest IRS notice is  here .