Rev Proc 2008-62

.02 Section 3.01 of Rev. Proc. 2008–3
reflects those areas in which rulings or determination letters will not be issued with
respect to specific questions and problems.
.03 Section 5.08 of Rev. Proc. 2008–3
provides that the Service will not rule on
the tax consequences of arrangements described in § 409A, including rulings as to
whether an arrangement is an arrangement
described in § 409A.
.04 Section 409A provides certain requirements applicable to nonqualified deferred compensation plans. If a plan does
not meet those requirements, participants
in the plan are required to immediately include amounts deferred under the plan in
income and pay additional taxes on such
income.
.05 The Treasury Department and the
Service have issued final regulations under § 409A (T.D. 9321, 2007–19 I.R.B.
1123 [72 Fed. Reg. 19234] (April 17,
2007)). The final regulations apply to taxable years beginning on or after January
1, 2009. Notice 2007–86, 2007–46 I.R.B.
990. The final regulations define the terms
nonqualified deferred compensation plan
and deferral of compensation for purposes
of § 409A. See § 1.409A–1(a) & (b).
.06 Since publication of the final regulations, the Treasury Department and
Service have issued Notice 2007–100,
2007–52 I.R.B. 1243, providing transitional relief and guidance on the correction
of certain failures of a nonqualified deferred compensation plan to comply with
§ 409A in operation. Section V of Notice 2007–100 requests comments on all
aspects of a potential corrections program
in which taxpayers could correct certain
failures to comply with § 409A(a) in the
operation of a nonqualified deferred compensation plan.
.07 Based on experience with the private letter ruling program, the Service has
determined that section 5.08 of Rev. Proc.
2008–3 unnecessarily restricts the ability
of the Service to issue private letter rulings
under Rev. Proc. 2008–1, 2008–1 I.R.B.
1 and Rev. Proc. 2008–4, 2008–1 I.R.B.
121. For example, the existing no-rule policy prevents the Service from issuing private letter rulings with respect to estate
and gift tax consequences of proposed inter vivos or testamentary transfers of rights
under nonqualified deferred compensation
plans, even though such issues do not directly involve the application of § 409A.

October 20, 2008

Also, the Service has been unable to issue private letter rulings concerning issues
arising under the Federal Insurance Contributions Act (FICA) with respect to nonqualified deferred compensation.
.08 In light of the final regulations becoming applicable on January 1, 2009, and
the issuance of Notice 2007–100, the Service has decided to modify and amplify
Rev. Proc. 2008–3. The Service will continue not to issue rulings concerning the
income tax consequences of establishing,
operating, or participating in a nonqualified deferred compensation plan described
in § 409A, but the Service generally will
rule on the application of certain other tax
law provisions (such as FICA and estate
and gift taxes) to taxpayers who participate
in those plans. Specifically, rulings will
not be issued with respect to the following:
the income tax (including income tax withholding) consequences of establishing, operating, or participating in a nonqualified
deferred compensation plan as defined in
§ 1.409A–1(a); whether a plan is described
in § 1.409A–1(a)(3)(iv) (certain plans subject to a totalization agreement and similar plans) or § 1.409A–1(a)(3)(v) (certain broad-based foreign retirement plans);
whether a plan is a bona fide vacation
leave, sick leave, or compensatory time
plan described in § 1.409A–1(a)(5); and
whether a plan provides for the deferral
of compensation under § 1.409A–1(b) (including whether an amount is a short-term
deferral and whether certain stock rights,
foreign plans, and separation pay plans are
subject to § 409A).
SECTION 3. PROCEDURE
Rev. Proc. 2008–3 is modified by
deleting section 5.08. Rev. Proc. 2008–3
is amplified by adding the following to
section 3.01:
Section 409A.—Inclusion in Gross
Income of Deferred Compensation Under Nonqualified Deferred Compensation
Plans.—The income tax consequences
of establishing, operating, or participating in a nonqualified deferred compensation plan within the meaning of
§ 1.409A–1(a); whether a plan is described in § 1.409A–1(a)(3)(iv) or (v);
whether a plan is a bona fide vacation
leave, sick leave, or compensatory time
plan described in § 1.409A–1(a)(5); and

935

whether a plan provides for the deferral of
compensation under § 1.409A–1(b).
SECTION 4. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Proc. 2008–3 is modified and
amplified.
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to rulings and determination letters issued after
September 25, 2008.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Bill Schmidt of the Office of
Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities).
For further information regarding this revenue procedure, contact Mr. Schmidt at
(202) 622–6030 (not a toll-free call).
26 CFR 601.201: Rulings and determination letters.
(Also Part I, § 430.)

Rev. Proc. 2008–62
SECTION 1. PURPOSE AND
CHANGES FROM REV. PROC.
2007–37
.01 The purpose of this revenue procedure is to set forth the procedure by
which the sponsor of a defined benefit
plan, other than a multiemployer plan,
may request and obtain approval for the
use of plan-specific substitute mortality
tables in accordance with § 430(h)(3)(C)
of the Internal Revenue Code (Code) and
§ 303(h)(3)(C) of the Employee Retirement Income Security Act of 1974, as
amended (ERISA).
.02 This revenue procedure is an update of Rev. Proc. 2007–37, 2007–25
I.R.B. 1433. Rev. Proc. 2007–37 was
based on the proposed regulations issued
under § 430(h)(3)(C) of the Code and
§ 303(h)(3)(C) of ERISA published in
the Federal Register on May 29, 2007, at
72 FR 29456 [REG–143601–06, 2007–24
I.R.B. 1398] (“proposed regulations”).
Final regulations under § 430(h)(3)(C)
were published in § 1.430(h)(3)–2 in the
Federal Register on July 31, 2008, at 73 FR
44632 [T.D. 9419, 2008–40 I.R.B. 790]

2008–42 I.R.B.

(“regulations” or “final regulations”). This
revenue procedure reflects the provisions
of the final regulations, and includes
the following changes from Rev. Proc.
2007–37:
(1) The requirements in subsection 2.02
were updated to reflect the ability to use
a period of up to 5 years (or such longer
period as the Commissioner may permit in
future guidance) for the Experience Study
Period, and subsection 10.01 was revised
to clarify that the Experience Study Period
used to develop the unadjusted base tables
must coincide with the Experience Study
Period used to demonstrate credible mortality experience.
(2) Subsections 4.01 and 5.06 were updated to reflect the extension of the deadline for submitting requests to October 1,
2008, for substitute mortality tables to be
used effective for plan years beginning in
2009.
(3) The definition of the Base
Year in subsection 5.03 was updated
to reflect the revised definition in
§ 1.430(h)(3)–2(c)(2)(iii) of the final regulations.
(4) A new subsection 7.03 was inserted (and the former subsection 7.03 was
renumbered as subsection 7.04) to permit
plans within a Permissive Group to use
different Experience Study Periods (subject to specified conditions) if the plans
have different plan years.
(5) Subsection 9.01 was revised to reflect the requirement in
§ 1.430(h)(3)–2(d)(1) of the final regulations to increase the length of the period
used to demonstrate lack of credible
mortality experience if the Experience
Study Period is longer than 4 years.
(6) A new subsection 9.06 was inserted
to provide guidance for demonstrating lack
of credible mortality experience when the
Experience Study Period is developed using the approach in new subsection 7.03.
(7) A new subsection 9.07 was inserted
to permit alternative means of demonstrating lack of credible mortality experience.
(8) One set of sample annuity values
was eliminated with respect to nonannuitant mortality tables and adjustments were
made to the date of birth used for the annuity values reported in subsection 13.03.
(9) References throughout the revenue
procedure to “newly acquired” plans were
changed to “newly affiliated” plans to con-

2008–42 I.R.B.

form to the language in the final regulations.
SECTION 2. BACKGROUND
INFORMATION
.01 Section 412 of the Code provides
minimum funding requirements for defined benefit pension plans. Section 430,
which was added by the Pension Protection Act of 2006, Pub. L. No. 109–280,
120 Stat. 780 (“PPA ’06”), specifies
the minimum funding requirements for
defined benefit plans other than multiemployer plans pursuant to § 412 and is
generally effective for plan years beginning on or after January 1, 2008. Section
430(h)(3)(A) sets forth rules regarding
the use of generally applicable mortality tables for purposes of § 430. Section
430(h)(3)(C) and § 303(h)(3)(C) of ERISA
provide that the Secretary of the Treasury
may approve substitute mortality tables
to be used in determining any present
value or making any computation under
those sections for a period not to exceed
ten years. Mortality tables meet the requirements for substitute mortality tables
if the pension plan has a sufficient number of plan participants and the plan has
been maintained for a sufficient period of
time in order to have credible mortality
experience, and such tables reflect the actual experience of the plan and projected
trends in general mortality experience of
participants in pension plans. Except as
provided by the Secretary, a plan sponsor
cannot use substitute mortality tables for
any plan unless substitute mortality tables
are established and used for each other
plan subject to § 430 of the Code that is
maintained by the plan sponsor and the
plan sponsor’s controlled group.
.02 Section 1.430(h)(3)–1 of the Income Tax Regulations, which sets forth
rules regarding the use of generally applicable mortality tables for purposes
of § 430, and § 1.430(h)(3)–2, which
sets forth rules for the use of substitute
mortality tables under § 430(h)(3)(C),
were published in the Federal Register in proposed form on May 29, 2007.
Rev. Proc. 2007–37 was issued to provide procedures under which sponsors
of eligible plans could request and obtain approval for plan-specific mortality
tables in accordance with proposed regulation § 1.430(h)(3)–2. Final regulations

936

under § 430(h)(3)(C) were published in
§ 1.430(h)(3)–2 in the Federal Register on
July 31, 2008. This Rev. Proc. 2008–62
updates the procedures outlined in Rev.
Proc. 2007–37 to reflect the changes in
the final regulations.
Under both the proposed and final regulations, substitute mortality tables must reflect the actual mortality experience of the
pension plan maintained by the plan sponsor for which the tables are to be used and
that mortality experience must be credible.
Separate mortality tables must be established for each gender under the plan, and a
substitute mortality table is permitted to be
established for a gender only if the plan has
credible mortality experience with respect
to that gender. If the mortality experience
for one gender is credible but the mortality experience for the other gender is not
credible, then the substitute mortality tables are used for the gender that has credible mortality experience, and the mortality
tables under § 1.430(h)(3)–1 are used for
the gender that does not have credible mortality experience. If separate mortality tables under § 430(h)(3)(D) are used for certain disabled individuals under a plan, then
those individuals are disregarded for all
purposes with respect to substitute mortality tables under § 430(h)(3)(C). Thus, if the
mortality tables under § 430(h)(3)(D) are
used for certain disabled individuals under
a plan, mortality experience with respect
to those individuals must be excluded in
determining mortality rates for substitute
mortality tables with respect to a plan.
Under the proposed regulations, a substitute mortality table would be based on
credible mortality experience for a gender
within a plan if and only if the mortality experience is based on at least 1,000 deaths
within that gender over the period covered
by the experience study. The experience
study would be based on mortality experience data over a 2, 3, or 4-consecutive
year period, the last day of which must be
less than 3 years before the first day of the
first plan year for which the substitute mortality tables are to apply. The final regulations retain the above provisions, except
that the maximum period of the experience
study is extended to a 5-consecutive year
period. In addition, the final regulations
provide that the Commissioner may allow
further extensions of the maximum experience study period in future guidance.

October 20, 2008

Development of a substitute mortality
table under the regulations requires creation of a base table (Base Table) and identification of a base year (Base Year), which
are then used to determine generational
substitute mortality tables. The Base Table must be developed from a study of
the mortality experience of the plan using amounts-weighted data. The regulations also set forth rules regarding development of amounts-weighted mortality
rates for an age and the determination of
the Base Year. The regulations provide
that amounts-weighted mortality rates may
be derived from amounts-weighted mortality rates for age groups.
The regulations provide that Base Tables may be constructed either directly
through graduation of amounts-weighted
mortality rates or indirectly by applying
a level percentage to tables prescribed by
§ 430(h)(3)(A), provided that the resulting
tables sufficiently reflect the plan’s mortality experience. The Service may permit
the construction of Base Tables through
application of a level percentage to other
recognized mortality tables, applying similar standards to ensure that the resulting
tables are sufficiently reflective of the
plan’s mortality experience.
The final regulations provide that a plan
sponsor cannot use substitute mortality tables for any plan for a plan year unless substitute mortality tables are established and
used for each other plan subject to § 430
that is maintained by the plan sponsor and
the plan sponsor’s controlled group for that
plan year (or, for plans with different plan
years, a portion of that plan year). Under
the regulations, the use of substitute mortality tables for one plan would not be prohibited merely because another plan maintained by the plan sponsor (or by a member of the plan sponsor’s controlled group)
cannot use substitute mortality tables because neither the males nor the females
under that other plan have credible mortality experience for a plan year. Thus,
if a sponsor’s controlled group maintains
two pension plans subject to § 430, each
of which has credible mortality experience
for at least one gender, then either both
plans must obtain approval from the Service to use substitute mortality tables or
neither plan may use substitute mortality
tables. By contrast, if, for one of those
plans, neither males nor females have credible mortality experience, then the plan

October 20, 2008

without credible mortality experience will
not interfere with the ability of the plan
with credible mortality experience to use
substitute mortality tables.
SECTION 3. GENERAL
ADMINISTRATIVE PROCEDURES
.01 Compliance with Regulations. Requests submitted on or after December
1, 2008, must satisfy the requirements of
final regulation § 1.430(h)(3)–2 and this
Rev. Proc. 2008–62. Requests submitted
before December 1, 2008, may either satisfy those requirements or, alternatively,
may satisfy the requirements of proposed
regulation § 1.430(h)(3)–2 and Rev. Proc.
2007–37.
.02 Submission. Requests for the use of
substitute mortality tables must be submitted to:
Internal Revenue Service
Attention: EP Letter Rulings
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
The user fee required by paragraph (10)
of subsection 6.01 of Rev. Proc. 2008–8,
2008–1 I.R.B. 233, or its successors, must
be sent with such requests.
.03 Necessary Procedural Documents.
A request will not be considered unless it
complies with paragraphs (1) through (3)
of this subsection 3.03, below.
(1) The request (and any subsequently
provided additional information) must be
signed by the employer maintaining the
plan(s) (the “applicant”) or an authorized
representative of the applicant who must
be identified in (a), (b), (c), (d) or (e)
of paragraph (11) of subsection 9.02 of
Rev. Proc. 2008–4, 2008–1 I.R.B. 121, or
its successors. Where an authorized representative signs the request or will appear before the Service in connection with
the request, a properly signed and dated
Form 2848, Power of Attorney and Declaration of Representative, must be submitted with the request. An individual is not
an authorized representative of the applicant merely on account of being the administrator or trustee of the plan.
(2) The request also must contain a
declaration in the following form: “Under
penalties of perjury, I declare that I have
examined this request, or this modification

937

to the request, including accompanying documents, and, to the best of my
knowledge and belief, the request or the
modification contains all the relevant facts
relating to the request, and such facts are
true, correct, and complete.” This declaration must be signed by the applicant
(e.g., an authorized officer of a corporation). The signature of an individual with
a power of attorney will not suffice for
the declaration. See paragraph (13) of
subsection 9.02 of Rev. Proc. 2008–4.
(3) Because a request for the use of
substitute mortality tables constitutes a request for a ruling, compliance with § 6110
of the Code is also required. Section
601.201 of the Statement of Procedural
Rules sets forth the requirements applicable to requests for rulings and determination letters which are subject to § 6110.
Section 601.201(e) furnishes specific instructions to applicants.
The applicant must provide with the
request either a statement of proposed
deletions and the statutory basis for each
proposed deletion, or a statement that no
information other than names, addresses,
and taxpayer identifying numbers need be
deleted.
.04 Checklist. A checklist has been
provided in Appendix A, which must be
signed and dated by the applicant or authorized representative and placed on top
of the request.
SECTION 4. DEADLINE FOR
REQUESTING THE USE OF
SUBSTITUTE MORTALITY TABLES
.01 In General. A request for the use of
substitute mortality tables generally must
be submitted at least 7 months prior to the
first day of the first plan year for which
the substitute mortality tables are to apply.
Thus, for example, if the first plan year to
which substitute mortality tables are to apply is the plan year that begins January 1,
2010, then the deadline is June 1, 2009.
Notwithstanding the generally applicable
deadline, a request to use substitute mortality tables for a plan year that begins during 2009 is timely if it is submitted on or
before October 1, 2008.
.02 Incomplete Requests. Generally, an
incomplete request for the use of substitute
mortality tables will be summarily denied
absent mutual agreement of the Service
and the applicant to extend the 180-day pe-

2008–42 I.R.B.

riod specified under § 430(h)(3)(C)(v)(II).
Except as provided in subsection 5.06
of this revenue procedure, the applicant
should not assume that the Service will
agree to extend the 180-day period for a
request that does not include substantially
all of the applicable information specified
in sections 5 through 13 of this revenue
procedure.
SECTION 5. GENERAL RULES
.01 The Service will deny a request if
the request fails to meet the requirements
of this revenue procedure or if the Service
determines that a substitute mortality table
does not sufficiently reflect the mortality
experience of the applicable plan population.
.02 If separate mortality tables are
used for disabled individuals pursuant to
§ 430(h)(3)(D), then those individuals are
disregarded for all purposes under this
revenue procedure.
.03 A separate request must be made
with respect to each plan (the “Plan”), or
group of plans that are permissively aggregated (the “Permissive Group”), for which
the use of a substitute mortality table or
tables is requested. The request must include a complete copy of the Base Tables
that will form the basis for the substitute
mortality tables that will be used. The request must state the first day of the first
plan year for which the substitute mortality
tables are to be applicable (the “Requested
Effective Plan Year”) and must state the
term of years (not more than 10) that the
tables are requested to be used.
Each request also must identify the
Base Year of the Base Tables. Under
§ 1.430(h)(3)–2(c)(2)(iii), the base year is
the calendar year that contains the day before the midpoint of the Experience Study
Period. For example, if an Experience
Study Period consists of the 5-consecutive-year period beginning July 1, 2006,
and ending June 30, 2011, the midpoint of
the Experience Study Period is January 1,
2009, and the Base Year is 2008. If the
Experience Study Period reflects different
plan years for plans within the Permissive
Group as described in subsection 7.03, the
midpoint is determined taking into account
the total number of years and months reflected in the Experience Study Period.
.04 The request must include a description of the populations within the Plan (or

2008–42 I.R.B.

the Permissive Group) for which the use of
substitute mortality tables is requested and
a description of the populations, if any, for
which the use of substitute mortality tables
is not requested.
For example, if the use of substitute
mortality tables is requested for nondisabled female individuals (but for no other
individuals) where separate mortality tables are used for disabled individuals pursuant to § 430(h)(3)(D), then the population for whom the use of substitute mortality tables is requested would be described
as “Nondisabled Females” and the population for whom the use of substitute mortality tables is not requested would be described as “Nondisabled Males.”
Similarly, if the use of substitute mortality tables is requested for male annuitants (but not male nonannuitants) and for
females on a combined annuitant/nonannuitant basis, in each case including disabled individuals, then the populations for
whom the use of substitute mortality tables
is requested would be described as “Male
Annuitants” and “Females,” and the population for whom the use of substitute mortality tables is not requested would be described as “Male Nonannuitants.”
.05 The request must include the plan
identification information described in
Section 6, the credible mortality experience demonstrations described in Section
7, the stability demonstrations described
in Section 8, the lack of credible mortality
experience demonstrations described in
Section 9, the unadjusted mortality experience described in Section 10, the Base
Table construction methods as set forth in
Section 11 or 12, and the demonstrations
with respect to the Base Tables described
in Section 13.
.06 If there are other plans subject to
§ 430 maintained by the applicant, or
members of the applicant’s controlled
group, that have credible mortality experience for which the use of substitute
mortality tables will be requested in a
separate request, then the Service will not
summarily deny the request for the use of
substitute mortality tables on the grounds
that all plans with credible mortality experience maintained by the applicant would
not be using substitute mortality tables,
but only if the applicant requests that the
180-day review period provided under
§ 430(h)(3)(C)(v)(II) not begin for the initial request and any such separate request

938

until the date all such separate requests
have been received, and only if those separate requests are submitted within 90 days
after the receipt of the initial request (and
no later than the deadline that applies to
each such separate request under section 4
of this revenue procedure). In the absence
of such a request for a delay in the start of
the 180-day review period, or if all such
separate requests are not submitted within
90 days after the receipt of the initial request, the Service will summarily deny the
request for the use of substitute mortality
tables on the grounds that all plans with
credible mortality experience maintained
by the applicant would not be using substitute mortality tables.
Example. Employer E maintains Plans A and B,
both of which are calendar year plans that have each
had over 2,500 deaths in each of the last five years.
Employer E submits a request for the use of substitute mortality tables for Plan A for the 2010 plan year
that is received on February 15, 2009 (the “A Request”). To avoid denial of the A Request on the
grounds that all plans with credible mortality experience maintained by the applicant would not be using
substitute mortality tables, Employer E requests that
the 180-day review period of the A Request not begin
until the receipt of a separate request for the 2010 plan
year from Employer E for the use of substitute mortality tables by Plan B. The Service agrees to defer
commencement of the 180-day period, but will summarily deny the application unless Employer E submits a separate request for the use of substitute mortality tables for Plan B no later than May 15, 2009.

.07 If two or more plans are permissively aggregated for the purpose of constructing substitute mortality tables, then
such plans are treated as a single plan for
all purposes of this revenue procedure.
Accordingly, if two or more plans are permissively aggregated, then all populations
within the plans must be so aggregated.
Example. Employer F maintains Plans C, D, and
E, each of which had 500 male deaths and 100 female
deaths in each of the last five years. Employer F may
request to use one substitute male mortality table and
one substitute female mortality table for the aggregation of Plans C, D, and E. However, Employer F may
not aggregate Plans C, D, and E and request to use
one substitute female mortality table for Plans C, D,
and E, and three separate substitute male mortality tables for Plans C, D, and E.

SECTION 6. IDENTIFICATION OF
PLANS
.01 The following plan information
must be provided for the Plan (or for each
plan within the Permissive Group) for
which the use of substitute mortality tables
is requested:
(1) Plan name;

October 20, 2008

(2) Plan number;
(3) Plan year (i.e., calendar, or if fiscal,
the first and last day);
(4) Employer identification number;
(5) Date of plan establishment; and
(6) Copies of the actuarial valuation reports for each plan year which begins or
ends during the Experience Study Period
as defined in section 7 of this revenue procedure.
.02 The following information must
be provided for each plan that is subject
to § 430 maintained by the applicant, or
members of the applicant’s controlled
group, for which the use of substitute mortality tables is not requested:
(1) Plan name;
(2) Plan number;
(3) Plan year (i.e., calendar, or if fiscal,
the first and last day);
(4) Employer identification number;
(5) Date of plan establishment;
(6) If the plan is a newly affiliated plan
under § 1.430(h)(3)–2(d)(1)(iii)(B), the
date of the merger, acquisition, or similar
transaction described in § 1.410(b)–2(f),
and the last day of the plan year described
in § 1.430(h)(3)–2(d)(1)(iii)(A); and
(7) The Lack of Credible Mortality Experience Demonstration Period, or, if the
plan is not required to identify such a period, the applicable exception. (See section 9 of this revenue procedure.)
.03 The following additional information must be provided with respect to each
plan that is subject to § 430 that is maintained by the applicant, or member of the
applicant’s controlled group, that was spun
off from another plan that is maintained by
the applicant within the five-year period
preceding the date of the request:
(1) The plan name and the plan number
of the spun off plan, and the plan name and
number of the plan from which the spinoff
occurred;
(2) The employer identification number
of the employer maintaining the spun off
plan and the employer identification number of the employer maintaining the plan
from which the spinoff occurred;
(3) The date of the spinoff;
(4) The approximate number of individuals covered by the spun off plan as of
the date of the spinoff and the approximate
number of individuals covered by the plan
from which the spinoff occurred, prior to
the spinoff; and
(5) The reason for the spinoff.

October 20, 2008

SECTION 7. DEMONSTRATIONS
OF CREDIBLE MORTALITY
EXPERIENCE
.01 The applicant’s request must identify the period of time covered by the
mortality experience study (the “Experience Study Period”) used to develop the
Base Table(s) and must identify the Base
Year. Different Experience Study Periods
for different populations within a plan
are not permitted. Except as provided in
subsections .02 and .03 of this section,
different Experience Study Periods for different plans within the Permissive Group
are not permitted. Thus, a plan that does
not have mortality experience for the entire Experience Study Period may not be
included in the Permissive Group. Similarly, a plan that was acquired subsequent
to the first day of the Experience Study
Period may be included in the Permissive
Group only if the applicant includes mortality experience for the full Experience
Study Period. Thus, in such cases, the
mortality experience study must include
mortality experience that occurred before
the date of acquisition.
.02 A plan that came into existence by
reason of a spinoff from the Plan (or from
a plan within the Permissive Group) during the Experience Study Period may be
included in the Permissive Group. In such
a case, the period of time covered by the
mortality experience study with respect to
the spun off plan will begin as of the date
of the spinoff. However, the mortality experience of the individuals covered by the
spun off plan from the first day of the Experience Study Period to the date of the
spinoff would be included as part of the
experience of the single plan that existed
before the spinoff.
.03 If separate plans within a Permissive Group have different plan years, the
Experience Study Period may consist of a
combination of different periods for analyzing the experience data for each plan,
provided that the period for each plan:
(1) is based on the plan year for that
plan,
(2) consists of the same number of
years,
(3) ends less than 3 years before the
first day of the first plan year for which
the substitute mortality table is to apply for
any plan in the Permissive Group, and

939

(4) minimizes the total period of time
covered by the overall Experience Study
Period by overlapping (to the greatest extent possible) the periods used to analyze
experience data for each plan in the Permissive Group.
For example, consider a Permissive
Group consisting of two plans, Plan A with
a calendar-year plan year and Plan B with
a March 1-February 28 plan year, with
experience data gathered by plan years for
each plan. If the plan sponsor submits a
request to use substitute mortality tables
for the Permissive Group effective with
the plan year beginning January 1, 2009,
for Plan A and March 1, 2009, for Plan B,
the plan sponsor may use an Experience
Study Period ending as early as December
31, 2006, based on the first day of the
plan year for Plan A. If the plan sponsor
wishes to use the approach provided in this
subsection .03 and uses a 4-year period
ending on December 31, 2006, to analyze
the experience data for Plan A, the period
used to analyze the experience data for
Plan B must be a 4-year period ending on
February 28, 2007. The Experience Study
Period in this case would be the period
beginning January 1, 2003, and ending
February 28, 2007.
.04 In order to demonstrate credible
mortality experience, the number of deaths
during each year of the Experience Study
Period (and, in total, for the entire Experience Study Period) within each population
for which the use of substitute mortality
tables is requested must be provided in
tabular form.
SECTION 8. DEMONSTRATION OF
STABILITY
.01 The following information must be
provided in tabular form for each population within the Plan (or plans within the
Permissive Group) for which the use of a
substitute mortality table is requested, aggregating all plans that have the same plan
year:
(1) The average number of individuals
within the population during the Experience Study Period; and
(2) The number of individuals within
the population as of the last day of the plan
year immediately preceding the plan year
during which the use of substitute mortality tables is requested.

2008–42 I.R.B.

A reasonable estimate of the number
of plan individuals, such as the estimated
number of participants and beneficiaries
used for purposes of PBGC Form 1–ES,
may be used to provide the information requested in paragraph (2) of this subsection
8.01.
.02 If the difference between paragraphs (1) and (2) of subsection 8.01
within any population, for any plan year,
reflects a difference of 20 percent or more,
then an analysis that shows that the mortality experience during the Experience
Study Period is still accurately predictive
of the future mortality of the population
must be submitted.
SECTION 9. DEMONSTRATIONS OF
LACK OF CREDIBLE MORTALITY
EXPERIENCE
.01 General Rule. For all plans maintained by the applicant, except as described
in subsections .02 and .03 of this section,
the period of time used to demonstrate
a lack of credible mortality experience
must be identified (the “Lack of Credible
Mortality Experience Demonstration Period”). This period must consist of at least
4 consecutive years, with the last such
year ending less than 3 years before the
first day of the plan year for which lack
of credible mortality experience is being
demonstrated. However, if the Experience
Study Period used for the substitute mortality tables for the Permissive Group is
longer than 4 years, then the Lack of Credible Mortality Experience Demonstration
Period must include the same number
of years as the Experience Study Period
and must end less than 3 years before the
first day of the plan year for which lack
of credible mortality experience is being
demonstrated. See subsection .06 of this
section for rules that apply when the Experience Study Period is a combination of
different periods as described in subsection 7.03.
.02 General Exception. Plans described
in paragraph (1), (2), or (3) of this subsection 9.02 are not required to identify a Lack
of Credible Mortality Experience Demonstration Period.
(1) Plans for which the use of substitute mortality tables is requested for all
populations (other than disabled populations for whom the tables prescribed under
§ 430(h)(3)(D) are used);

2008–42 I.R.B.

(2) Plans for which the use of substitute mortality tables has previously been
approved by the Service and the term of
years of such approval ends subsequent to
the last day of the Requested Effective Plan
Year; and
(3) Newly affiliated plans for which
the last day of the plan year described in
§ 1.430(h)(3)–2(d)(1)(iii)(A) is a date on
or after the first day of the plan year for
which the use of substitute mortality tables
is requested.
.03 Exception for Certain Newly Affiliated Plans. Newly affiliated plans (as defined in § 1.430(h)(3)–2(d)(1)(iii)(B)) for
which the last day of the plan year described in § 1.430(h)(3)–2(d)(1)(iii)(A) is
a date prior to the first day of the plan year
for which the use of substitute mortality
tables is requested, and for which the applicant has elected not to include mortality experience prior to the date of the acquisition, may identify a Lack of Credible
Mortality Experience Demonstration Period consisting of fewer years than otherwise required under subsection .01 of this
section. For such plans, the Lack of Credible Mortality Experience Demonstration
Period must begin no later than the date the
plan became newly affiliated and end not
more than one year and one day before the
first day of the plan year for which the use
of substitute mortality tables is requested.
.04 Demonstration of Plan-Wide Lack
of Credible Mortality Experience. The following information must be provided in
tabular form for each plan that is not within
the Permissive Group and which does not
fall within one of the exceptions provided
in subsection .02 of this section:
(1) The number of male deaths during
the Lack of Credible Mortality Experience
Demonstration Period; and
(2) The number of female deaths during
the Lack of Credible Mortality Experience
Demonstration Period.
.05 Demonstration of Lack of Credible
Mortality Experience for Certain Populations. The number of male and female
deaths during the Lack of Credible Mortality Experience Demonstration Period must
be provided in tabular form for each relevant population within the Plan (or plans
within the Permissive Group) for which
the use of substitute mortality tables is not
requested.
The relevant populations for this purpose would, for example, be nondisabled

940

females if the request was to use a substitute mortality table for nondisabled males
(but for no other individuals) where separate mortality tables were used for disabled
individuals pursuant to § 430(h)(3)(D).
Similarly, the relevant populations would
be male nonannuitants and females, in
each case including disabled individuals,
if the request was to use a substitute mortality table for male annuitants (but not
for male nonannuitants) where separate
mortality tables were not used for disabled
individuals pursuant to § 430(h)(3)(D).
.06 Application when Experience Study
Period is a Combination of Different Periods as Described in Subsection 7.03. For
plans or populations within a Permissive
Group, if the Experience Study Period covers a period of more than 4 years because
it consists of a combination of 4-year (or
longer) periods for analyzing the experience data for individual plans included in
the Permissive Group, the Lack of Credible Mortality Experience Demonstration
Period must also consist of a combination
of 4-year periods for each plan (or such
longer periods as used for the Experience
Study Period), subject to the same constraints as in subsection 7.03.
For example, the Permissive Group illustrated in subsection 7.03 used an Experience Study Period consisting of 4 years
based on the plan year for Plan A and 4
years based on the plan year of Plan B
(for an overall Experience Study Period of
4 years and 2 months). Therefore, lack
of credible mortality experience must be
demonstrated for any populations within
that Permissive Group for which substitute mortality tables are not requested, on
the basis of a Lack of Credible Mortality
Experience Demonstration Period covering a 4-year period corresponding to the
plan year for the plan covering the population (for an overall Lack of Credible
Mortality Experience Demonstration Period of 4 years and 2 months). Accordingly, for demonstrations applying to plan
years beginning in 2011, the Lack of Credible Mortality Experience Demonstration
Period could either be based on 4-year periods ending December 31, 2008, for populations covered under Plan A and February 28, 2009, for populations covered under Plan B, or on 4-year periods ending December 31, 2009, for populations covered
under Plan A and February 28, 2010, for
populations covered under Plan B.

October 20, 2008

However, if the overall Experience
Study Period is less than 4 years in length,
or if the population or plan for which lack
of credibility experience is being demonstrated is not in the Permissive Group,
then the general rule of subsection .01 of
this section is applied based on the number of years of data used for each plan
in the Permissive Group. For example,
if the periods used to analyze experience
data for Plans A and B were only 2 years
in length, the Lack of Credible Mortality
Experience Demonstration Period for any
plans or populations within the Permissive
Group could either be a period of 4 years
(with both plans using the same period of
time to analyze experience data) or 4 years
and 2 months (using 4-year periods corresponding to the plan year for each plan
to analyze the experience data). In either
case, the Lack of Credible Mortality Experience Demonstration Period must end
less than 3 years before the first day of any
plan year for which lack of credible mortality experience is being demonstrated.
.07 Alternative Demonstrations of Lack
of Credible Mortality Experience. In lieu
of the information described in subsections
.04 through .06 of this section, lack of credible mortality experience may be demonstrated by providing alternative information if such information demonstrates to
the satisfaction of the Commissioner that
the number of male and/or female deaths
would not exceed 1,000 during the Lack
of Credible Mortality Experience Demonstration Period. For example, a year-byyear reconciliation of the participant population (such as might be shown in an actuarial valuation report) could be submitted showing that the total number of participants leaving the plan during the Lack
of Credible Mortality Experience Demonstration Period is less than 1,000, as this
would clearly show that the number of
male and female deaths must also be less
than 1,000 during that period. Similarly,
if the total number of participants in the
plan does not exceed 1,000 for any year
during the Lack of Credible Mortality Experience Demonstration Period, the yearby-year number of participants in the plan
during such period could be submitted in
lieu of the information described in subsections .04 through .06 of this section, as
this would indicate that it would be highly
unlikely that the total number of deaths
during that period would exceed 1,000.

October 20, 2008

SECTION 10. UNADJUSTED
MORTALITY EXPERIENCE
.01 In General. The information below
must be provided in tabular form for all individuals within each population for whom
the use of a separate mortality table is requested, for each year of the Experience
Study Period, and for the Experience Study
Period in its entirety, for all ages between
18 and 100 (except as provided in subsection .03 of this section). The same Experience Study Period must be used to develop the information below as was used to
demonstrate credible mortality experience
in section 7.
(1) The sum of the accrued benefits (or
payable benefits, in the case of individuals
in pay status) of all individuals at that age
at the beginning of the year, other than
individuals who left the population during
the year for reasons other than death;
(2) The sum of the accrued (or payable)
benefits of all individuals at that age at the
beginning of the year who left the population during the year for reasons other than
death, adjusted to reflect exposure periods
of less than one year;
(3) The sum of the accrued (or payable)
benefits of all individuals at that age at the
beginning of the year who died during the
year;
(4) The quotient determined by dividing
the sum of the accrued (or payable) benefits of all individuals at that age who died
during the year by the sum of the accrued
(or payable) benefits for all individuals at
that age adjusted for individuals at that age
who left the population for reasons other
than death (i.e., the amount determined in
paragraph (3), divided by the total of the
amounts determined in paragraphs (1) and
(2);
(5) The total number of individuals at
that age at the beginning of the year;
(6) The total number of individuals at
that age at the beginning of the year who
left the population for reasons other than
death;
(7) The total number of individuals at
that age at the beginning of the year who
died during the year; and
(8) The average accrued benefit of all
individuals at that age at the beginning of
the year.
.02 Adjustment for Exposure Periods of
Less than One Year. The request must include a description of the method(s) used

941

to adjust the accrued benefits of individuals who left for reasons other than death
to reflect exposure periods of less than one
year.
.03 Grouping of Ages. The information
requested in subsection .01 of this section
may be presented in five-year age groups.
In such cases, the groups at the extreme
ages may include more than five ages provided such groups either do not include
ages greater than age 24 or do not include
ages less than age 95. Thus, for example, an age group consisting of all ages 24
and lower would be permissible whereas
an age group consisting of all ages 25 and
lower would not be permissible.
.04 Unadjusted Base Tables. An Unadjusted Base Table for each population for
which the use of substitute mortality tables is requested shall, for all ages or all
groups of ages, consist of the quotients determined in paragraph (4) of subsection .01
of this section for the Experience Study Period in its entirety. The request must include a complete copy of each such Unadjusted Base Table.
SECTION 11. BASE TABLE
CONSTRUCTION – GENERAL
METHOD
.01 In General. Except as otherwise
provided in section 12 of this revenue procedure, a Base Table for a population must
be created from the Unadjusted Base Table for the population through the application of a graduation method generally used
by the actuarial profession in the United
States (e.g., Whittaker-Henderson Type B,
Karup-King). Section 12 of this revenue
procedure provides for an alternate method
of constructing a Base Table through the
application of a fixed percentage to the
mortality rates of a Standard Mortality Table, projected to the Base Year.
.02 Information Regarding Graduation
Methods. The graduation method must
be identified and the parameters of the
graduation method used must be specified
(e.g., for Whittaker-Henderson Type B, the
number of differences and the “h” value
must be specified). If more than one graduation is performed, then the parameters
must be specified for each such graduation.
.03 Intermediate Values. If more than
one graduation is performed in the process
of adjusting an Unadjusted Base Table to a

2008–42 I.R.B.

Base Table, then a copy of each intermediate table so created must be provided.
.04 Rationale. The rationale for the
selection of each particular graduation
method used must be provided along with
the rationale for the selection of the particular parameters used as part of the method.
.05 Extension to Extreme Ages. At extreme ages for which insufficient data exists, the Base Tables must be extended to
blend into the applicable Standard Mortality Table, provided in subsection .06 of this
section, projected to the Base Year using
Projection Scale AA, as set forth in the regulations. In such cases, the method (and
the rationale for the method) used for the
extension must be described.
.06 Standard Mortality Tables. For purposes of this revenue procedure, the following are the Standard Mortality Tables:
(1) The Male Base Nonannuitant Mortality Table (Year 2000) as set forth in
§ 1.430(h)(3)–1;
(2) The Male Base Annuitant Mortality Table (Year 2000) as set forth in
§ 1.430(h)(3)–1;
(3) The Female Base Nonannuitant
Mortality Table (Year 2000) as set forth in
§ 1.430(h)(3)–1;
(4) The Female Base Annuitant Mortality Table (Year 2000) as set forth in
§ 1.430(h)(3)–1;
(5) The Male Base Combined Mortality Table (Year 2000) determined in accordance with subsection .07 of this section;
and
(6) The Female Base Combined Mortality Table (Year 2000) determined in accordance with subsection .07 of this section.
.07 Gender-Specific Base (Year 2000)
Mortality Combined Tables. For purposes
of this revenue procedure, the Male Base
Combined Mortality Table (Year 2000)
is the table determined through application of the male Weighting Factors for
Small Plans (the “Weights”) to the Male
Base Nonannuitant and Annuitant Mortality Tables (Year 2000) as set forth in
§ 1.430(h)(3)–1. Similarly, the Female
Base Combined Mortality Table (Year
2000) is the table determined through
application of the female Weights to the
Female Base Nonannuitant and Annuitant
Mortality Tables (Year 2000) as set forth
in § 1.430(h)(3)–1.

2008–42 I.R.B.

SECTION 12. BASE TABLE
CONSTRUCTION – ALTERNATE
METHOD
.01 General Rule. A Base Table for a
population may be created by applying a
fixed percentage (the “Fixed Percentage”)
to the mortality rates in the Projected Applicable Standard Mortality Table only if
the requirements of subsections .02 and .03
of this section are satisfied and the Service determines that the resulting Base Table sufficiently reflects the mortality experience of the applicable plan population.
For this purpose the Projected Applicable
Standard Mortality Table is the applicable
Standard Mortality Table, projected to the
Base Year using Projection Scale AA, as
set forth in § 1.430(h)(3)–1. See subsection .05 of this section with regard to the
possible use of other mortality tables for
this purpose.
Under this section 12, the Unadjusted
Base Mortality Tables must be constructed
using five-year age groups. For each
Base Table constructed using the alternate method described in this section, the
Fixed Percentage and the mortality table
to which such percentage is to be applied
must be identified. In addition, for each so
constructed Base Table, the ratios of the
mortality rates from the Unadjusted Base
Mortality Table for the population to the
central age mortality rates (i.e., the mortality rates for the ages that are the midpoints
of the age ranges) from the Projected Applicable Standard Mortality Table must be
provided, in tabular form, for all five-year
age groups for which mortality experience
is available.
.02 Selection of the Fixed Percentage.
(1) If the applicable Standard Mortality
Table for a population is the table provided
in either paragraph (1) or paragraph (3) of
subsection 11.06, then the Fixed Percentage must be within two percentage points
of the arithmetic average of the ratios of
the mortality rates from the Unadjusted
Base Mortality Table for the population
to the central age mortality rates from the
Projected Applicable Standard Mortality
Table of each of the five-year age groups
from the 35–39 age group to the 60–64 age
group, inclusive, unless the applicant can
demonstrate that a different set of five-year
age groups (consisting of no less than six
such groups) is more appropriate for this
purpose.

942

(2) If the applicable Standard Mortality
Table for a population is the table provided
in either paragraph (2) or paragraph (4) of
subsection 11.06, then the Fixed Percentage must be within two percentage points
of the arithmetic average of the ratios of
the mortality rates from the Unadjusted
Base Mortality Table for the population
to the central age mortality rates from the
Projected Applicable Standard Mortality
Table of each of the five-year age groups
from the 55–59 age group to the 80–84 age
group, inclusive, unless the applicant can
demonstrate that a different set of five-year
age groups (consisting of no less than six
such groups) is more appropriate for this
purpose.
(3) If the applicable Standard Mortality
Table for a population is the table provided
in either paragraph (5) or paragraph (6) of
subsection 11.06, then the Fixed Percentage must be within two percentage points
of the arithmetic average of the ratios of
the mortality rates from the Unadjusted
Base Mortality Table for the population
to the central age mortality rates from the
Projected Applicable Standard Mortality
Table of each of the five-year age groups
from the 45–49 age group to the 80–84 age
group, inclusive, unless the applicant can
demonstrate that a different set of five-year
age groups (consisting of no less than eight
such groups) is more appropriate for this
purpose.
.03 Consistency Requirement. The consistency requirement of this subsection .03
is satisfied only if each of the applicable ratios described in subsection .02 of this section is within 10 percentage points of the
Fixed Percentage.
.04 Terminal Age. Notwithstanding
subsection .01 of this section, the mortality
rate for the terminal age in any Base Table
created by applying a Level Percentage to
a Standard Mortality Table shall be 1.000.
.05 Other Mortality Tables. The Service will consider requests for the approval
of Base Tables constructed through the
application of a fixed percentage to the
mortality rates of other published generally accepted mortality tables (e.g., the
1983 Group Annuity Mortality Table) using standards similar to those provided in
subsections .01 through .04 of this section.
.06 Example. The age group rates from the Male
Unadjusted Base Table (determined in accordance
with section 10 of this revenue procedure), the central
age rates from the Male Base Combined Mortality

October 20, 2008

Table (Year 2000), projected to the Base Year, and
the ratios of such rates are as follows:

Age Group
45
50
55
60
65
70
75
80

to
to
to
to
to
to
to
to

A

B

C

Mortality Rate from Unadjusted
Base Mortality Table

Base Combined Mortality Table
(Year 2000), Projected to the Base
Year, Age Group Mortality Rate

Ratio of Mortality Rate from
Unadjusted Mortality Table to Base
Mortality Rate (Year 2000)

0.00163
0.00211
0.00376
0.00765
0.01569
0.02439
0.03768
0.07948

0.00165
0.00241
0.00431
0.00812
0.01506
0.02502
0.04387
0.07732

98.79%
87.55%
87.24%
94.21%
104.18%
97.48%
85.89%
102.79%

49
54
59
64
69
74
79
84

Arithmetic Average Percentage
In accordance with subsection .02 of this section,
the Fixed Percentage to be applied to the Male Base
Mortality Table (Year 2000), projected to the Base
Year, must be between 92.77% and 96.77%. However, a Fixed Percentage that is less than 94.18%
would fail to satisfy the requirements of subsection
.03 of this section because the ratio for the 65–69
Age Group (i.e., 104.18%) would then not be within
10 percentage points of a Fixed Percentage less than
94.18%. Similarly, a Fixed Percentage that is greater
than 95.89% would fail the requirements of subsection .03 because the ratio for the 75–79 Age Group
(i.e., 85.89%) would then not be within 10 percentage points of a Fixed Percentage greater than 95.89%.
Accordingly, under the facts in this example, if the applicant were to request the use of a Base Table constructed through the application of a percentage to the
Male Base Mortality Table (Year 2000) that is a fixed
integer, the applicant would be limited to a Fixed Percentage of 95%.

SECTION 13. DEMONSTRATIONS
WITH RESPECT TO BASE TABLES
The following information must be provided with respect to each population for
which the use of substitute mortality tables
is requested:
.01 Generational Mortality Tables.
Sample generational mortality tables, as
of the Requested Effective Plan Year, for
individuals whose years of birth are 1940,
1950, and 1960, constructed from the Base
Tables using a methodology in accordance
with § 1.430(h)(3)–1 (except that the projection period used to determine each
particular mortality improvement factor
is the number of years between the Base
Year and the year for which the probability
of death is determined).
.02 Funding Target Comparisons. The
liability of the plan(s) for which the use of
substitute mortality tables is requested as
of the valuation date for a plan year ending

October 20, 2008

94.77%

no earlier than one year and one day before
the first plan year to which the substitute
mortality tables will apply (the “Comparison Year”). The liability is to be measured
using generational mortality tables determined in accordance with the methodology described in subsection .01 of this section. The liability is to be provided separately for active participants, terminated
vested participants, and retirees and beneficiaries in pay status, and is to be determined as follows:
(1) For Comparison Years beginning
in 2007, the liability to be reported is the
Current Liability determined in accordance with § 412(l) as it existed prior to
PPA ’06 and, for comparison, what the
Current Liability would have been if the
substitute mortality table(s) had been used
to determine Current Liability, holding all
other assumptions constant.
(2) For Comparison Years beginning after 2007, the liability to be reported is
the Funding Target, determined without regard to at-risk assumptions under § 430(i),
and, for comparison, what the Funding
Target would have been if the substitute
mortality table(s) had been used to determine the Funding Target, holding all other
assumptions constant.
.03 Annuity Factors. The following annuity factors based on generational mortality tables for individuals whose year of
birth is 20 years before the Base Year, determined using interest and mortality assumptions consistent with those used under subsection .02 of this section.
(1) For all Base Tables with the exception of annuitant Base Tables, deferred to
age 55 factors at quinquennial ages from
20 to 50.

943

(2) For all Base Tables with the exception of nonannuitant Base Tables, immediate annuity factors at quinquennial ages
from 50 to 90.
.04 Graphical Displays. A comparison
in the form of graphs with the X-axis representing age and the Y-axis representing
the mortality rate, for each of the following
pairs of mortality rates, for each population
for which the use of substitute mortality tables is requested:
(1) The mortality rates from the Base
Unadjusted Mortality Table and the mortality rates from the proposed Base Table;
and
(2) The mortality rates from the proposed Base Table and from the applicable Standard Mortality Table (as described
in subsection 11.06 of this revenue procedure), projected to the Base Year.
SECTION 14. EFFECTIVE DATE
This revenue procedure is effective for
all requests for the use of plan-specific
substitute mortality tables in accordance
with § 430(h)(3)(C) of the Code and
§ 303(h)(3)(C) of ERISA submitted on or
after December 1, 2008. Requests submitted prior to December 1, 2008, may rely
on this revenue procedure or Rev. Proc.
2007–37.
SECTION 15. PAPERWORK
REDUCTION ACT
The collection of information contained in this revenue procedure has been
reviewed and approved by the Office
of Management and Budget in accordance with the Paperwork Reduction Act

2008–42 I.R.B.

(44 U.S.C. section 3507) under control
number 1545–2073.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this
revenue procedure is in sections 3 through
13. This collection of information is required to evaluate, process and obtain
approval of the request for the use of
substitute mortality tables. This information will be used to make determinations
under § 430(h)(3) of the Code. The
likely respondents are businesses or other

for-profit institutions and nonprofit institutions.
The estimated total annual reporting/recordkeeping burden is 25,400 hours.
The estimated annual burden per respondent/recordkeeper varies from 335
to 681 hours, depending on individual
circumstances, with an estimated average
burden of 508 hours. The estimated annual number of respondents/recordkeepers
is 50.
The estimated annual frequency of responses is once every 10 years.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in

the administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. section 6103.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Carolyn E. Zimmerman of
the Employee Plans, Tax Exempt and
Government Entities Division. For further
information regarding this revenue procedure, please contact Ms. Zimmerman at
retirementplanquestions@irs.gov.

Appendix A
REQUEST FOR THE USE OF SUBSTITUTE MORTALITY TABLES CHECKLIST
IS YOUR SUBMISSION COMPLETE?
Instructions
The Service will be able to respond more quickly to your request for the use of substitute mortality tables if it is carefully prepared
and complete. To ensure your request is in order, use this checklist. Answer each question in the checklist by indicating Y for
yes, N for no, or N/A for not applicable. Explanations must be provided for N or N/A responses. Sign and date the checklist
(as taxpayer or authorized representative) and place it on top of your request.
You must submit a completed copy of this checklist with your request. If a completed checklist is not submitted with your request
or if explanations are not provided for N and N/A responses, then your submission will be considered incomplete for purposes of
determining the first day of the 180-day period described in § 430(h)(3)(C)(v)(II) of the Code.
1.

If you want to designate an authorized representative, have you included a properly executed Form 2848 (Power of Attorney
and Declaration of Representative)?

2.

Have you satisfied all the requirements of Rev. Proc. 2008–4 or its successors (especially concerning signatures and
penalties of perjury statement)? (See paragraphs (1) and (2) of subsection 3.03)

3.

Have you included a statement of proposed deletions? (See paragraph (3) of subsection 3.03)

4.

Have you included the user fee required under Rev. Proc. 2008–8 or its successors? (See subsection 3.02)

5.

Have you included a copy of the Base Tables which will form the basis for the substitute mortality tables whose use is
requested? (See subsection 5.03)

6.

Have you identified the first day of the first plan year for which the use of substitute mortality tables is requested? (See
subsection 5.03)

7.

Have you stated the number of years for which the use of substitute mortality tables is requested? (See subsection 5.03)

8.

Have you identified the Base Year of the Base Tables? (See subsection 5.03)

9.

Have you included a description of the populations for which the use of substitute mortality tables is requested? (See
subsection 5.04)

10. Have you included a description of the populations for which the use of substitute mortality tables is not requested? (See
subsection 5.04)
11. Have you requested that the 180-day review period not begin until a separate request is received for another plan(s)
maintained by the applicant is received? (See subsection 5.06)
12. Have you identified all plans subject to § 430 maintained by the applicant, or members of the applicant’s controlled group,
including the additional information required for spun-off plans under subsection 6.03? (See section 6)

2008–42 I.R.B.

944

October 20, 2008

13. Have you identified the Experience Study Period for each plan in the Permissive Group? (See subsections 7.01 through 7.03)
14. Have you included a table showing the number of deaths, for each applicable population within the Plan (or within the
Permissive Group), for each year (and in total) of the Experience Study Period? (See subsection 7.04)
15. Have you included a table showing the average number of individuals during the Experience Study Period and the number of
individuals within the population as of the last day of the plan year immediately preceding the plan year during which the
use of substitute mortality tables is requested for each population within the Plan (or plans within the Permissive Group)
for which the use of a substitute mortality table is requested? (See section 8)
16. Have you included a table for each plan that is not within the Permissive Group showing the number of male and female
deaths during the plan’s Lack of Credible Mortality Experience Demonstration Period, including identification of the Lack
of Credible Mortality Experience Demonstration Period? (See subsections 9.01, 9.04, and 9.06.) Alternatively, have you
provided other information that demonstrates that the number of deaths during the Lack of Credible Mortality Experience
Demonstration Period would not exceed 1,000? (See subsection 9.07)
17. Have you included a table for each population within the Plan (or plans within the Permissive Group) for which the use of
substitute mortality tables is not requested, showing the number of deaths within the population? (See subsections 9.01, 9.05,
and 9.06) Alternatively, have you provided other information that demonstrates that the number of deaths during the Lack of
Credible Mortality Experience Demonstration Period would not exceed 1,000? (See subsection 9.07)
18. Have you included a table showing the accrued benefits, counts of individuals covered under the plan, and other information
for all ages (or groups of ages) for each year (and in total) of the Experience Study Period? (See subsection 10.01)
19. Have you included a description of the method(s) used to adjust the accrued benefits of individuals who left for reasons other
than death? (See subsection 10.02)
20. Have you included complete copies of each Unadjusted Base Table? (See subsection 10.04)
21. Have you identified the graduation method(s) used to create the Base Table(s) from the Unadjusted Base Table(s), along with
any intermediate tables resulting from applying the graduation method(s)? (See subsections 11.02 and 11.03)
22. Have you provided the rationale(s) for use of the particular graduation method(s) selected? (See subsection 11.04)
23. Have you described the method used to extend the Base Tables to extreme ages? (See subsection 11.05)
24. Have you identified a Fixed Percentage and a mortality table associated with all Base Tables constructed using the alternate
method provided in section 12? (See subsection 12.01)
25. Have you included a table showing the ratios of the mortality rates from the Unadjusted Base Mortality Table to the central
age mortality rates from the Projected Applicable Standard Mortality Table for each Base Table constructed using the
alternate method of section 12? (See subsection 12.01)
26. Have you included (three) sample generational mortality tables as of the Requested Effective Plan Year? (See subsection
13.01)
27. Have you included a comparison of hypothetical funding targets determined using standard mortality tables and generational
tables developed from the proposed Base Tables? (See subsection 13.02)
28. Have you included annuity factors for each Base Table, based on generational mortality tables for individuals whose year of
birth is 20 years before the applicable Base Year? (See subsection 13.03)
29. Have you included graphical displays of the rates from the Base Unadjusted Mortality Tables, the proposed Base Tables, and
the applicable Standard Mortality Tables? (See subsection 13.04)

October 20, 2008

945

2008–42 I.R.B.