Revised mortality tables for private-sector retirement plans were made available for comment Wednesday by the Society of Actuaries.
The exposure draft of the new private-sector retirement plan tables, Pri-2012, will be available for comment through July 31 and then finalized later this year.
Mortality tables are used by pension actuaries and plan sponsors to calculate retirement plan obligations and for future projections based on mortality improvement assumptions. The Society of Actuaries has committed to updating its mortality tables every five years, as new data becomes available.
The latest tables are based on data collected for 2010-2014 and are named after the central year, 2012. They include 16.1 million life-years of exposure and 343,000 deaths from 402 plans, and include both single and multiemployer pension plans.
While the current table had minimal multiemployer data, the new one includes a substantial amount of data from multiemployer plans; with roughly 41% of the total dataset and about 70% of the multiemployer data coming from those plans.
Plan sponsors updating mortality assumption from the previous tables, RP-2006, will most likely experience less than a 1% change in pension liabilities, the SOA said in a release. The amount of change will depend on occupations, ages, gender, discount rates and other assumptions used to compute liabilities.
Life expectancies between the current and new tables are roughly unchanged for a 65-year-old female pension plan participant, at 87.4 years, while the life expectancy of a 65-year-old male participant decreased 1.3%, to 84.7 years from 85 years.
Mortality for multiemployer plan participants was not significantly different, and the SOA found that blue-collar vs. white-collar occupations were a stronger predictor of mortality.