IRS Releases Updated Mortality Tables for Defined Benefit Pension Plans  

The IRS issued a notice unveiling updated static mortality tables for defined benefit pension plans. The tables will be applicable for valuation dates occurring in 2026. 

The tables are essential tools used to calculate pension liabilities. The updated figures help determine funding targets, minimum present values for certain distributions and other key pension plan calculations. 

The tables reflect the latest mortality assumptions and improvements based on pension plan experience, as required by law. Small pension plans are permitted to use these updated static mortality tables, while larger plans typically use generational mortality tables. 

Additionally, the notice includes a modified, unisex version of the mortality tables. It must be used when determining minimum present value for distributions with annuity starting dates that fall within stability periods beginning in 2026. 

The IRS confirmed that the mortality rates were derived using a prescribed methodology that incorporated base mortality rates and improvement scales previously established by the Department of the Treasury and the IRS. 

These mortality tables are considered essential tools for plan sponsors and actuaries, since they directly influence how much money defined benefit pension plans must set aside to meet obligations. Accurate mortality assumptions help ensure plan solvency, while balancing funding requirements with employer costs.