The Society of Actuaries (SoA) has released the new base mortality tables for use within private sector pension plans, that will impact both single employer and multiemployer plans. The change to the new table, from RP-2006 to Pri-2012, will impact liabilities generally within +/-1%.

Collar type will have a significant impact along with benefit level:

  • Blue-collar workers may see decreases for females and older males (up to 1.5%) and increases for younger males (up to 1.7%)
  • White-collar may see decreases (up to 1%) and larger decreases for the older population
  • Those with no-collar may see increases for younger participants (males up to 1% and females up to 0.3%) and decreases for older (over age 75) participants

SoA also released new projection tables for generational mortality as they do each year around this time. The 2019 tables will result in decreases in liability relative to the 2018 tables. Combined with the new baseline tables, most plans should see decreases in liability due to the new mortality, unless they have a young blue-collar/no-collar male population.

Single Employer Plans

These changes will hit year-end accounting results for single employer plans. They will be included in the single employer funding calculations after the IRS reviews them and issues a notice on said tables.

Multiemployer plans

These plans may see the results in new valuations if their actuary adopts them – it is not yet mandatory within these plans.

As always, when retirement plan changes arise, feel free to send me any questions.

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Legal Note

Information provided by SEI Investments Management Corporation, a registered investment adviser and wholly owned subsidiary of SEI Investments Company.