The IRS has unveiled a new mortality table expected to increase pension plan funding liabilities. The Internal Revenue Service's new table, introduced on Thursday, is effective retroactive to Jan. 1. Plan funding liabilities are generally expected to increase because the new table assumes longer life expectancies for male workers.
But Ron Gebhardtsbauer, senior pension fellow for the American Academy of Actuaries in Washington, said the IRS simplified the table for 2007 and provided for the plan costs to be amortized over a 10-year period. The simplified table will make it easier for actuaries to figure pension fund calculations this year, according to Mr. Gebhardtsbauer.
Some benefits industry lobbyists wanted the IRS to postpone the effective date of the new table until Jan. 1, 2008, when many of the Pension Protection Act's funding requirements go into effect.