COVID-19 changed a lot, including the accuracy of mortality tables used by defined benefit plans to make funding decisions. Many single-employer pension plans’ tables were affected by earlier-than-expected deaths, so the IRS has approved the use of certain substitute mortality tables. However, to prevent these from overstating COVID effects on the future mortality of a plan’s participants, the IRS has established standards to follow when adjusting for years after 2019 and before 2024. These rules became effective July 30, 2024, for plan years starting Jan. 1. 2025. There’s a transition rule for previously approved substitute mortality tables. View the standards: https://bit.ly/4dnKwyU
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