EAC PV Tools is updated in version 2018.6 with new mortality tables and other enhancements:

• 2019 IRS tables under 430(h)(3)(A) and 417(e)(3) -- The IRS has released Notice 2018-02 which establishes the 2019 static mortality tables for minimum funding requirements under §430(h)(3), and for minimum present value under §417(e)(3) for distributions with annuity starting dates that occur during stability periods beginning in the 2019 calendar year.
• 2018 ERISA Section 4044/4050 mortality tables -- The PBGC has published 2018 tables under ERISA Section 4044 (for valuing annuities in distress and involuntary single-employer plan terminations) and ERISA Section 4050 (for valuing annuities of missing participants). https://www.pbgc.gov/prac/mortality-retirement-and-pv-max-guarantee/erisa-mortality-tables
• Added new present value methods using traditional Nx and Dx commutation functions.
• Added new commutation functions: lxy, Cxy, Dxy, Mxy, Nxy
  
• Audit feature has been enhanced, new "audits" added.
• Added ability to multiply the mortality improvement projection scale by a factor.
• Smaller file size and faster startup.

It looks like the long expected change to the IRS prescribed mortality tables is finally here, proposed to take effect in 2018. Read the news at ASPPA web site here. The proposed regulations are here and here and here. Work to add the new tables has begun and will be available just as soon as possible, allowing you to see what the new proposed tables look like and to evaluate the effect of the proposed change.

Recent updates are implemented:

• Mortality Improvement Scale MP-2015 and RP2006 (adjusted RP-2014).
• Table RPH-2014 added.
• New function wx provides turnover rates from published "T tables".
• Fixed qx for ages < 30 for RP-2000 white collar and blue collar. This was a very small correction, all other qx are unchanged.

In Notice 2015-53 the IRS provides updates the static mortality tables to be used for defined benefit pension plans. Because these tables are based on existing methodology, EAC PV Tools handles these tables without modification. For 2016 the 417(e)(3) applicable mortality table name is "LS2016".

Updates on RP-2014 and Scale MP-2014 Resources

As anticipated in last week's communication, the Society of Actuaries (SOA) has released a revised RP-2014 Mortality Tables Report, which includes the previously announced corrections to the collar- and quartile-specific Employee mortality rates. The revised report is available on the SOA website.

The RP-2014 Comment Response Document's Section 3 has also been updated with the latest progress made in the effort to provide Pension Benefit Guaranty Corporation (PBGC) mortality data to the SOA.

In addition to the revised materials, the SOA's Retirement Plans Experience Committee (RPEC) has announced the release of two additional resources related to the RP-2014 and Mortality Improvement Scale MP-2014 reports:

Headcount-weighted versions of the RP-2014 tables

An additional set of tables has been developed using the same underlying datasets and method used to construct the RP-2014 tables, but with mortality rates weighted by headcount rather than by amount. RPEC believes that these headcount-weighted mortality tables, denoted RPH-2014, might be more suitable than amount-weighted rates in certain applications. These new tables can be found in the Supplement to the RP-2014 Mortality Tables Report.

A new Excel-based tool that implements the RPEC_2014 model

The MP-2014 Report acknowledges that some actuaries may wish to construct two-dimensional mortality improvement scales based on assumption sets other than that used by RPEC to construct Scale MP-2014. This tool produces two-dimensional mortality improvement rates under the RPEC_2014 model based on user-selected assumption sets. Download the RPEC_2014 model implementation tool.