Valuation of Benefits; Mortality Assumptions, 12429-12435 [05-4950]
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Federal Register / Vol. 70, No. 48 / Monday, March 14, 2005 / Proposed Rules
20590–0001. You must identify the FAA
Docket No. FAA–2005–20551 and
Airspace Docket No. 04–AWP–8 at the
beginning of your comments. You may
also submit comments through the
Internet at https://dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: Ken
McElroy, Airspace and Rules, Office of
System Operations and Safety, Federal
Aviation Administration, 800
Independence Avenue, SW.,
Washington, DC 20591; telephone: (202)
267–8783.
SUPPLEMENTARY INFORMATION:
Comments Invited
Interested parties are invited to
participate in this proposed rulemaking
by submitting such written data, views,
or arguments, as they may desire.
Comments that provide the factual basis
supporting the views and suggestions
presented are particularly helpful in
developing reasoned regulatory
decisions on the proposal. Comments
are specifically invited on the overall
regulatory, aeronautical, economic,
environmental, and energy-related
aspects of the proposal.
Communications should identify both
docket numbers (FAA Docket No. FAA–
2005–20551 and Airspace Docket No.
04–ANM–8) and be submitted in
triplicate to the Docket Management
System (see ADDRESSES section for
address and phone number). You may
also submit comments through the
Internet at https://dms.dot.gov.
Commenters wishing the FAA to
acknowledge receipt of their comments
on this action must submit with those
comments a self-addressed, stamped
postcard on which the following
statement is made: ‘‘Comments to
Docket No. FAA–2005–20551 and
Airspace Docket No. 04–AWP–8.’’ The
postcard will be date/time stamped and
returned to the commenter.
All communications received on or
before the specified closing date for
comments will be considered before
taking action on the proposed rule. The
proposal contained in this action may
be changed in light of comments
received. All comments submitted will
be available for examination in the
public docket both before and after the
closing date for comments. A report
summarizing each substantive public
contact with FAA personnel concerned
with this rulemaking will be filed in the
docket.
Availability of NPRM’s
An electronic copy of this document
may be downloaded through the
Internet at https://dms.dot.gov. Recently
published rulemaking documents can
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also be accessed through the FAA’s Web
page at https://www.faa.gov or the
Federal Register’s Web page at https://
www.gpoaccess.gov/fr/.
You may review the public docket
containing the proposal, any comments
received and any final disposition in
person in the Dockets Office (see
ADDRESSES section for address and
phone number) between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. An informal docket
may also be examined during normal
business hours at the office of the
Regional Air Traffic Division, Federal
Aviation Administration, 15000
Aviation Boulevard, Hawthorne, CA
90261.
Persons interested in being placed on
a mailing list for future NPRM’s should
call the FAA’s Office of Rulemaking,
(202) 267–9677, for a copy of Advisory
Circular No. 11–2A, Notice of Proposed
Rulemaking Distribution System, which
describes the application procedure.
History
Southern California Terminal Radar
Approach Control (TRACON) requested
modification of V–363 to
circumnavigate the Camp Pendleton
restricted area 2503D. This action would
avoid the entire Camp Pendleton, CA,
range complex. This proposed action
responds to that request.
Proposal
The FAA is proposing an amendment
to Title 14 Code of Federal Regulations
(14 CFR) part 71 (part 71) to realign V–
363. The proposed amendment would
change the alignment of V–363 between
the Pomona VORTAC and the Mission
Bay VORTAC. This amendment would
provide users with a routing that avoids
the Camp Pendleton, CA, range
complex.
The FAA has determined that this
proposed regulation only involves an
established body of technical
regulations for which frequent and
routine amendments are necessary to
keep them operationally current.
Therefore, this proposed regulation: (1)
is not a ‘‘significant regulatory action’’
under Executive Order 12866; (2) is not
a ‘‘significant rule’’ under Department of
Transportation (DOT) Regulatory
Policies and Procedures (44 FR 11034;
February 26, 1979); and (3) does not
warrant preparation of a regulatory
evaluation as the anticipated impact is
so minimal. Since this is a routine
matter that will only affect air traffic
procedures and air navigation, it is
certified that this proposed rule, when
promulgated, will not have a significant
economic impact on a substantial
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number of small entities under the
criteria of the Regulatory Flexibility Act.
List of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
The Proposed Amendment
In consideration of the foregoing, the
Federal Aviation Administration
proposes to amend 14 CFR part 71 as
follows:
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for part 71
continues to read as follows:
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p.389.
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of the Federal Aviation
Administration Order 7400.9M,
Airspace Designations and Reporting
Points, dated August 30, 2004, and
effective September 16, 2004, is
amended as follows:
Paragraph 6010
Federal Airways.
*
*
*
*
*
V–363 [Revised]
From Mission Bay, CA; INT Mission Bay,
CA, 341° and Santa Catalina, CA, 103°
radials; to INT Santa Catalina, CA, 103° and
Mission Bay, CA, 327° radials; to INT
Mission Bay, CA, 327° and El Toro, CA, 172°
radials; to INT El Toro, CA, 339° and
Pomona, CA, 179° radials; to Pomona, CA.
*
*
*
*
*
Issued in Washington, DC, on March 3,
2005.
Edith V. Parish,
Acting Manager, Airspace and Rules.
[FR Doc. 05–4909 Filed 3–11–05; 8:45 am]
BILLING CODE 4910–13–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4044
RIN 1212–AA55
Valuation of Benefits; Mortality
Assumptions
Pension Benefit Guaranty
Corporation.
ACTION: Proposed rule.
AGENCY:
SUMMARY: The Pension Benefit Guaranty
Corporation proposes to amend its
benefit valuation regulation by adopting
more current mortality assumptions
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Federal Register / Vol. 70, No. 48 / Monday, March 14, 2005 / Proposed Rules
(moving from a version of GAM–83 to
a version of GAM–94). The updated
mortality assumptions will better
conform to those used by private-sector
insurers in pricing group annuities.
DATES: Comments must be received on
or before May 13, 2005.
ADDRESSES: Comments may be mailed
or delivered to the Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005–4026.
Comments also may be submitted
electronically through the PBGC’s Web
site at https://www.pbgc.gov/regs, or by
fax to (202) 326–4112. The PBGC will
make all comments available on its Web
site, https://www.pbgc.gov. Copies of the
comments may also be obtained by
writing to the PBGC’s Communications
and Public Affairs Department at Suite
240 at the above address or by visiting
that office or calling (202) 326–4040
during normal business hours. (TTY and
TDD users may call the Federal relay
service toll-free at 1–800–877–8339 and
ask to be connected to (202) 326–4040.)
FOR FURTHER INFORMATION CONTACT:
James J. Armbruster, Acting Director, or
James L. Beller, Attorney, Legislative
and Regulatory Department, Pension
Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005–
4026, (202) 326–4024. (TTY and TTD
users may call the Federal relay service
toll-free at 1–800–877–8339 and ask to
be connected to (202) 326–4024.)
SUPPLEMENTARY INFORMATION: The
PBGC’s regulations provide rules for
valuing benefits in a single-employer
plan that terminates in a distress or
involuntary termination. (The rules are
codified at 29 CFR part 4044, subpart B.)
The PBGC uses these rules to determine:
(1) The extent to which participants’
benefits are funded under the allocation
rules of ERISA section 4044, (2) whether
a plan is sufficient for guaranteed
benefits, and (3) how much an employer
owes the PBGC as a result of a plan
termination under ERISA section 4062.
Employers must use these rules to
determine the value of plan benefit
liabilities in annual reports required to
be submitted under ERISA section 4010,
and may use these rules to ensure that
plan spinoffs, mergers, and transfers
comply with Internal Revenue Code
section 414(l).
General Valuation Approach
The valuation rules prescribe a
number of assumptions intended to
produce reasonable valuation results on
average for the range of plans
terminating in distress or involuntary
terminations, rather than for any
particular plan or plan type.
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Historically, the PBGC has matched, to
the extent possible, the private-sector
annuity market when prescribing
assumptions for valuing benefits in a
terminating plan.
To determine the market cost of
providing annuity benefits, the PBGC
has relied upon data from periodic
surveys conducted for the PBGC by the
American Council of Life Insurers (the
ACLI surveys). These ACLI surveys ask
insurers for pricing information on
group annuities. Each respondent to the
surveys provides its prices (net of
administrative expenses) for a range of
ages for immediate annuities (annuities
where payments start immediately) and
for deferred annuities (annuities where
payments are deferred to age 65). Prices
of each of the two types of annuities are
averaged at each age to get an average
market price. The PBGC then derives an
interest factor that, when combined
with the PBGC’s healthy-life mortality
assumptions, provides the best fit for
the average market prices (as obtained
from the ACLI surveys) over the entire
range of ages. The interest factor is
recalibrated to the annuity survey prices
each year. Each month between
recalibrations, the PBGC adjusts the
interest factor based on changes in the
yield on long-term corporate
investment-grade bonds. The interest
factor is then used in conjunction with
the PBGC’s mortality assumptions (and
other PBGC assumptions) to value
annuity benefits.
These derived interest factors are not
market interest rates. The factors stand
in for all the many components used in
annuity pricing that are not reflected in
the given mortality table—e.g., assumed
yield on investment, margins for profit
and contingencies, premium and
income taxes, and marketing and sales
expenses. Because of the relationship
among annuity prices, a mortality table,
and the derived interest factors, it is
never meaningful to compare PBGC’s
interest factors to market interest rates.
The PBGC’s interest factor is meaningful
only in combination with the PBGC’s
mortality assumptions.
Mortality Assumptions
One set of assumptions prescribed by
the valuation regulation relates to the
probabilities that a participant (or
beneficiary) will survive to each
expected benefit payment date, i.e.,
mortality assumptions. The mortality
assumptions now used by the PBGC to
value benefits for non-disabled
(‘‘healthy’’) participants are taken from
the 1983 Group Annuity Mortality
(GAM–83) Tables. The PBGC shifted to
these tables in 1993, noting in its
preamble to the proposed rule (at 58 FR
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5129) that many private-sector insurers
had shifted to the GAM–83 Tables when
setting group annuity prices. The PBGC
also said (at 58 FR 5129) that it intended
‘‘to keep each of its individual valuation
assumptions in line with those of
private-sector insurers, and to modify its
mortality assumptions whenever it is
necessary to do so to achieve
consistency with the private insurer
assumptions.’’ The PBGC has not
updated these mortality assumptions
since 1993. (There is no reason to expect
that the PBGC’s mortality tables under
this regulation will match the tables
prescribed for certain funding purposes
under Treasury Regulations at any point
in time. The PBGC’s mortality tables are
based on the mortality experience of
group annuitants. In contrast, the tables
to be used for certain minimum funding
purposes are based on the mortality
experience of individuals covered by
pension plans. Group annuitants, many
of whom have chosen to receive their
benefits as annuities rather than as lump
sums, tend to have longer life
expectancies than individuals covered
by pension plans.)
As noted, the ACLI periodically
conducts surveys, on behalf of the
PBGC, of insurers who provide group
annuity contracts for information on
how they price group annuities. In
addition to other pricing questions, the
ACLI from time to time has asked for
information on which mortality tables
the insurers use when pricing group
annuities in pension plans. A majority
of respondents indicated that, as of
March 31, 2002, they use a version of
the 1994 Group Annuity Mortality Basic
(GAM–94 Basic) Table and project
future improvements in mortality with
projection scale AA. Similarly, the
Society of Actuaries sponsored a survey
of pricing actuaries for insurers who
provide group annuity contracts and
found that five of the ten respondents
used a version of the GAM–94 Table.
30-Year Treasury Rates and Defined
Benefit Plans, August 22, 2001, p. 5.
That survey also found that most
companies projected future
improvements and that the most
common projection scale was AA.
Based on these surveys, the PBGC
proposes to use the GAM–94 Basic
Table as the basis for the healthy-life
mortality assumptions it uses for its
valuation of plan benefits. Specifically,
for a particular valuation, the PBGC
would use the GAM–94 Basic Table
projected to the year of that valuation
plus 10 years using Scale AA. The
updated mortality assumptions now
being proposed will permit the PBGC to
derive interest factors that, when
combined with those updated mortality
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assumptions, would enable the PBGC to
match the ACLI survey prices more
closely across the entire range of ages
than had GAM–83 been used.
The PBGC is proposing to use a
projected mortality table to take into
account expected improvements in
mortality. In order to avoid undue
complexity, the PBGC proposes to use a
projected static table rather than a
generational table. (A generational table
takes into account expected mortality
improvements but in a far more
complex manner than does a projected
static table.) The projection would be to
the year of valuation plus 10 years as a
rough approximation for the duration of
liabilities in plans that terminate in
distress or involuntary terminations. For
example, the probability of death for a
65-year old healthy male to be used in
a valuation in 2005 would be calculated
as follows: .015629 × (1 ¥ .014) (2005
¥1994 ∂ 10) = .011624. The PBGC would
publish the projected mortality tables on
its Web site (https://www.pbgc.gov).
Because of the way the PBGC
determines its interest factors, the
choice of mortality assumptions
generally would have no significant
effect on benefit valuations. The effect
that a change in mortality assumptions
would have on valuations is generally
offset by the effect of the corresponding
change in the PBGC’s interest factors.
For example, the proposed use of GAM–
94 mortality assumptions would result
in the PBGC’s deriving higher interest
factors than would the use of GAM–83
mortality assumptions (because GAM–
94 has lower mortality rates than GAM–
83). When those higher interest factors
are combined with GAM–94, the
resulting value for a given benefit would
generally be about the same as it would
have been had the PBGC used GAM–83
along with the lower interest factors
derived from the ACLI surveys using
GAM–83. (For a more detailed
explanation, see the preambles to the
PBGC’s proposed rule published on
January 19, 1993, at 58 FR 5128, and
final rule published on September 28,
1993, at 58 FR 50812.)
In addition to the mortality
assumptions for healthy individuals, the
current regulation provides two other
sets of mortality assumptions: (1) Those
for participants who are disabled under
a plan provision requiring eligibility for
Social Security disability benefits
(Social Security disabled participants),
and (2) those for participants who are
disabled under a plan provision that
does not require eligibility for Social
Security disability benefits (non-Social
Security disabled participants).
As with the mortality assumptions for
healthy individuals, the PBGC proposes
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to update the mortality assumptions
used for disabled participants. For
Social Security disabled participants,
the PBGC proposes to use the Mortality
Tables for Disabilities Occurring in Plan
Years Beginning After December 31,
1994, from Rev. Rul. 96–7 (1996–1 C.B.
59). These tables were developed by the
Internal Revenue Service as required by
the Retirement Protection Act of 1994
amendments relating to the
determination of current liability. For
non-Social Security disabled
participants, the PBGC proposes to use
the healthy life tables projected from
1994 to the calendar year in which the
valuation date occurs plus 10 years
using Scale AA and setting the resulting
table forward three years. In addition, in
order to prevent the rates at the older
ages from exceeding the corresponding
rates in the proposed table for Social
Security disabled participants, the
PBGC proposes to cap the mortality rate
for non-Social Security disabled
participants at the corresponding rate
for Social Security disabled
participants. For convenience, the PBGC
would make all of these mortality tables
(like the healthy-life mortality tables)
available on its Web site (https://
www.pbgc.gov).
The PBGC is also proposing a
clarifying change to this regulation to
reflect its practice of treating a
participant as a disabled participant if
on the valuation date the participant is
under age 65 and has a benefit that was
converted under the plan’s terms from
a disability benefit to an early or normal
retirement benefit for any reason other
than a change in the participant’s health
status. In developing this proposed rule,
the PBGC considered the comments
relating to its mortality assumptions that
it received in response to its notice of
intent to propose rulemaking issued on
March 19, 1997 (62 FR 12982). The
PBGC adopted a number of the
suggestions made by commenters. For
instance, one commenter suggested the
PBGC should not adopt a reserving table
(i.e., a table that includes a built-in
margin to provide a cushion for
reserving purposes). Another
commenter asked the PBGC to adopt a
static table rather than a generational
table. The tables proposed by PBGC are
basic (nonreserve) static tables.
Several commenters asked the PBGC
to provide mortality assumptions that
vary depending on industry or
workforce type or that vary on a planspecific basis. The proposal does not
adopt either of these approaches. As
discussed above, the PBGC selects its
mortality assumptions with the goal of
achieving consistency with the
mortality assumptions used by private-
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12431
sector insurers for pricing group annuity
contracts. To this end, ACLI
respondents were asked to identify the
mortality tables they used and any
variations to those tables. Neither the
proposed GAM 94–Basic Table, the
most commonly identified table, nor
any of the other tables identified by the
survey respondents provided mortality
assumptions that vary depending on
industry or workforce type. Moreover,
none of the survey respondents reported
that they make modifications or
adjustments based on industry or
workforce type. As for the use of planspecific mortality assumptions, the
PBGC’s general valuation approach is to
apply a common set of assumptions
(e.g., mortality, expected retirement age)
to all plans with the goal of producing
reasonable results on average. Shifting
to a plan-specific approach for mortality
would be a fundamental change that
could require burdensome verification
procedures. Therefore, the PBGC
proposes to continue to use more
general mortality assumptions that, like
its other assumptions, produce
reasonable results on average.
Other Changes to Valuation Regulation
The PBGC will continue to explore
other ways to improve its benefit
valuation regulations and may make
other changes through separate
rulemaking actions.
Compliance With Rulemaking
Guidelines
The PBGC has determined, in
consultation with the Office of
Management and Budget, that this
proposed rule is a ‘‘significant
regulatory action’’ under Executive
Order 12866. The Office of Management
and Budget has therefore reviewed this
proposed rule under Executive Order
12866. The Office of Management and
Budget, therefore, has reviewed this
proposed rule under Executive Order
12866.
The PBGC certifies under section
605(b) of the Regulatory Flexibility Act
that this proposed rule would not have
a significant economic impact on a
substantial number of small entities. As
explained earlier in this preamble, the
effect on a plan valuation of the change
in the PBGC’s mortality assumptions
will be offset by the effect on that plan’s
valuation of the PBGC’s use of higher
interest factors. Because of this
offsetting effect, the PBGC does not
expect this proposed rule to have a
significant economic impact on a
substantial number of entities of any
size. Accordingly, sections 603 and 604
of the Regulatory Flexibility Act do not
apply.
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Federal Register / Vol. 70, No. 48 / Monday, March 14, 2005 / Proposed Rules
List of Subjects in 29 CFR Part 4044
Employee benefits plans, Pension
insurance, Pensions.
For the reasons set forth above, the
PBGC proposes to amend part 4044 of
29 CFR chapter XL as follows:
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
1. The authority citation for part 4044
continues to read as follows:
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, and 1362.
§ 4044.52
[Amended]
2. Amend § 4044.52 by adding the
word ‘‘and’’ to the end of paragraph (c),
removing paragraph (d), and
redesignating paragraph (e) as paragraph
(d).
3. Revise § 4044.53 to read as follows:
§ 4044.53
Mortality assumptions.
(a) General rule. Subject to paragraph
(b) of this section (regarding certain
death benefits), the plan administrator
shall use the mortality factors
prescribed in paragraphs (c), (d), (e), (f),
and (g) of this section to value benefits
under § 4044.52.
(b) Certain death benefits. If an
annuity for one person is in pay status
on the valuation date, and if the
payment of a death benefit after the
valuation date to another person, who
need not be identifiable on the valuation
date, depends in whole or in part on the
death of the pay status annuitant, then
the plan administrator shall value the
death benefit using—
(1) The mortality rates that are
applicable to the annuity in pay status
under this section to represent the
mortality of the pay status annuitant;
and
(2) The mortality rates under
paragraph (c) of this section to represent
the mortality of the death beneficiary.
(c) Healthy lives. If the individual is
not disabled under paragraph (f) of this
section, the plan administrator will
value the benefit using—
(1) For male participants, the rates in
Table 1 of Appendix A to this part
projected from 1994 to the calendar year
in which the valuation date occurs plus
10 years using Scale AA from Table 2
of Appendix A to this part; and
(2) For female participants, the rates
in Table 3 of Appendix A to this part
projected from 1994 to the calendar year
in which the valuation date occurs plus
10 years using Scale AA from Table 4
of Appendix A to this part.
(d) Social Security disabled lives. If
the individual is Social Security
disabled under paragraph (f)(1) of this
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section, the plan administrator will
value the benefit using—
(1) For male participants, the rates in
Table 5 of Appendix A to this part; and
(2) For female participants, the rates
in Table 6 of Appendix A to this part.
(e) Non-Social Security disabled lives.
If the individual is non-Social Security
disabled under paragraph (f)(2) of this
section, the plan administrator will
value the benefit at each age using—
(1) For male participants, the lesser
of—
(i) The rate determined from Table 1
of Appendix A to this part projected
from 1994 to the calendar year in which
the valuation date occurs plus 10 years
using Scale AA from Table 2 of
Appendix A to this part and setting the
resulting table forward three years, or
(ii) The rate in Table 5 of Appendix
A to this part.
(2) For female participants, the lesser
of—
(i) The rate determined from Table 3
of Appendix A to this part projected
from 1994 to the calendar year in which
the valuation date occurs plus 10 years
using Scale AA from Table 4 of
Appendix A to this part and setting the
resulting table forward three years, or
(ii) The rate in Table 6 of Appendix
A to this part.
(f) Definitions of disability.
(1) Social Security disabled. A
participant is Social Security disabled
if, on the valuation date, the participant
is less than age 65 and has a benefit in
pay status that—
(i) Is being received as a disability
benefit under a plan provision requiring
either receipt of or eligibility for Social
Security disability benefits, or
(ii) Was converted under the plan’s
terms from a disability benefit under a
plan provision requiring either receipt
of or eligibility for Social Security
disability benefits to an early or normal
retirement benefit for any reason other
than a change in the participant’s health
status.
(2) Non-Social Security disabled. A
participant is non-Social Security
disabled if, on the valuation date, the
participant is less than age 65, is not
Social Security disabled, and has a
benefit in pay status that—
(i) Is being received as a disability
benefit under the plan, or
(ii) Was converted under the plan’s
terms from a disability benefit to an
early or normal retirement benefit for
any reason other than a change in the
participant’s health status.
(g) Contingent annuitant mortality
during deferral period. If a participant’s
joint and survivor benefit is valued as a
deferred annuity, the mortality of the
contingent annuitant during the deferral
period will be disregarded.
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4. Revise Appendix A to part 4044 to
read as follows:
Appendix A To Part 4044—Mortality
Rate Tables
The mortality tables in this appendix set
forth for each age x the probability qx that an
individual aged x (in 1994, when using Table
1 or Table 3) will not survive to attain age
x + 1. The projection scales in this appendix
set forth for each age x the annual reduction
AAx in the mortality rate at age x.
TABLE 1.—MORTALITY TABLE FOR
HEALTHY MALE PARTICIPANTS (94
GAM BASIC)
Age x
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
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41
42
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50
51
52
53
54
55
56
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58
59
60
61
62
63
64
65
66
67
68
69
70
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..............................................
..............................................
..............................................
..............................................
..............................................
E:\FR\FM\14MRP1.SGM
14MRP1
qx
0.000371
0.000421
0.000463
0.000495
0.000521
0.000545
0.000570
0.000598
0.000633
0.000671
0.000711
0.000749
0.000782
0.000811
0.000838
0.000862
0.000883
0.000902
0.000912
0.000913
0.000915
0.000927
0.000958
0.001010
0.001075
0.001153
0.001243
0.001346
0.001454
0.001568
0.001697
0.001852
0.002042
0.002260
0.002501
0.002773
0.003088
0.003455
0.003854
0.004278
0.004758
0.005322
0.006001
0.006774
0.007623
0.008576
0.009663
0.010911
0.012335
0.013914
0.015629
0.017462
0.019391
0.021354
0.023364
0.025516
Federal Register / Vol. 70, No. 48 / Monday, March 14, 2005 / Proposed Rules
12433
TABLE 1.—MORTALITY TABLE FOR TABLE 2.—PROJECTION SCALE AA TABLE 2.—PROJECTION SCALE AA
HEALTHY MALE PARTICIPANTS (94
FOR
HEALTHY MALE PARTICIFOR
HEALTHY MALE PARTICIGAM BASIC)—Continued
PANTS—Continued
PANTS—Continued
Age x
Age x
qx
71 ..............................................
72 ..............................................
73 ..............................................
74 ..............................................
75 ..............................................
76 ..............................................
77 ..............................................
78 ..............................................
79 ..............................................
80 ..............................................
81 ..............................................
82 ..............................................
83 ..............................................
84 ..............................................
85 ..............................................
86 ..............................................
87 ..............................................
88 ..............................................
89 ..............................................
90 ..............................................
91 ..............................................
92 ..............................................
93 ..............................................
94 ..............................................
95 ..............................................
96 ..............................................
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
110 ............................................
111 ............................................
112 ............................................
113 ............................................
114 ............................................
115 ............................................
116 ............................................
117 ............................................
118 ............................................
119 ............................................
120 ............................................
0.027905
0.030625
0.033549
0.036614
0.040012
0.043933
0.048570
0.053991
0.060066
0.066696
0.073780
0.081217
0.088721
0.096358
0.104559
0.113755
0.124377
0.136537
0.149949
0.164442
0.179849
0.196001
0.213325
0.231936
0.251189
0.270441
0.289048
0.306750
0.323976
0.341116
0.358560
0.376699
0.396884
0.418855
0.440585
0.460043
0.475200
0.485670
0.492807
0.497189
0.499394
0.500000
0.500000
0.500000
0.500000
0.500000
0.500000
0.500000
0.500000
1.000000
TABLE 2.—PROJECTION SCALE AA
FOR HEALTHY MALE PARTICIPANTS
Age x
15
16
17
18
19
20
21
22
23
24
25
26
AAx
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
VerDate jul<14>2003
15:27 Mar 11, 2005
Jkt 205001
0.019
0.019
0.019
0.019
0.019
0.019
0.018
0.017
0.015
0.013
0.010
0.006
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
PO 00000
AAx
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
Frm 00014
Fmt 4702
Sfmt 4700
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.006
0.007
0.008
0.009
0.010
0.011
0.012
0.013
0.014
0.015
0.016
0.017
0.018
0.019
0.020
0.020
0.020
0.019
0.018
0.017
0.016
0.016
0.016
0.015
0.015
0.014
0.014
0.014
0.013
0.013
0.014
0.014
0.015
0.015
0.015
0.015
0.015
0.014
0.014
0.013
0.012
0.011
0.010
0.009
0.008
0.008
0.007
0.007
0.007
0.006
0.005
0.005
0.004
0.004
0.003
0.003
0.003
0.002
0.002
Age x
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
110 ............................................
111 ............................................
112 ............................................
113 ............................................
114 ............................................
115 ............................................
116 ............................................
117 ............................................
118 ............................................
119 ............................................
120 ............................................
AAx
0.002
0.001
0.001
0.001
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
TABLE 3.—MORTALITY TABLE FOR
HEALTHY FEMALE PARTICIPANTS (94
GAM BASIC)
Age x
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
E:\FR\FM\14MRP1.SGM
14MRP1
qx
0.000233
0.000261
0.000281
0.000293
0.000301
0.000305
0.000308
0.000311
0.000313
0.000313
0.000313
0.000316
0.000324
0.000338
0.000356
0.000377
0.000401
0.000427
0.000454
0.000482
0.000514
0.000550
0.000593
0.000643
0.000701
0.000763
0.000826
0.000888
0.000943
0.000992
0.001046
0.001111
0.001196
0.001297
0.001408
0.001536
0.001686
12434
Federal Register / Vol. 70, No. 48 / Monday, March 14, 2005 / Proposed Rules
TABLE 3.—MORTALITY TABLE FOR
HEALTHY FEMALE PARTICIPANTS (94
GAM BASIC)—Continued
Age x
qx
52 ..............................................
53 ..............................................
54 ..............................................
55 ..............................................
56 ..............................................
57 ..............................................
58 ..............................................
59 ..............................................
60 ..............................................
61 ..............................................
62 ..............................................
63 ..............................................
64 ..............................................
65 ..............................................
66 ..............................................
67 ..............................................
68 ..............................................
69 ..............................................
70 ..............................................
71 ..............................................
72 ..............................................
73 ..............................................
74 ..............................................
75 ..............................................
76 ..............................................
77 ..............................................
78 ..............................................
79 ..............................................
80 ..............................................
81 ..............................................
82 ..............................................
83 ..............................................
84 ..............................................
85 ..............................................
86 ..............................................
87 ..............................................
88 ..............................................
89 ..............................................
90 ..............................................
91 ..............................................
92 ..............................................
93 ..............................................
94 ..............................................
95 ..............................................
96 ..............................................
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
110 ............................................
111 ............................................
112 ............................................
113 ............................................
114 ............................................
115 ............................................
116 ............................................
117 ............................................
118 ............................................
119 ............................................
120 ............................................
VerDate jul<14>2003
15:27 Mar 11, 2005
0.001864
0.002051
0.002241
0.002466
0.002755
0.003139
0.003612
0.004154
0.004773
0.005476
0.006271
0.007179
0.008194
0.009286
0.010423
0.011574
0.012648
0.013665
0.014763
0.016079
0.017748
0.019724
0.021915
0.024393
0.027231
0.030501
0.034115
0.038024
0.042361
0.047260
0.052853
0.058986
0.065569
0.072836
0.081018
0.090348
0.100882
0.112467
0.125016
0.138442
0.152660
0.167668
0.183524
0.200229
0.217783
0.236188
0.255605
0.276035
0.297233
0.318956
0.340960
0.364586
0.389996
0.415180
0.438126
0.456824
0.471493
0.483473
0.492436
0.498054
0.500000
0.500000
0.500000
0.500000
0.500000
0.500000
0.500000
0.500000
1.000000
Jkt 205001
TABLE 4.—PROJECTION SCALE AA
FOR HEALTHY FEMALE PARTICIPANTS
Age x
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
PO 00000
AAx
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
Frm 00015
Fmt 4702
Sfmt 4700
0.016
0.015
0.014
0.014
0.015
0.016
0.017
0.017
0.016
0.015
0.014
0.012
0.012
0.012
0.012
0.010
0.008
0.008
0.009
0.010
0.011
0.012
0.013
0.014
0.015
0.015
0.015
0.015
0.015
0.015
0.016
0.017
0.018
0.018
0.018
0.017
0.016
0.014
0.012
0.010
0.008
0.006
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.005
0.006
0.006
0.007
0.007
0.008
0.008
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0.006
TABLE 4.—PROJECTION SCALE AA
FOR HEALTHY FEMALE PARTICIPANTS—Continued
Age x
86 ..............................................
87 ..............................................
88 ..............................................
89 ..............................................
90 ..............................................
91 ..............................................
92 ..............................................
93 ..............................................
94 ..............................................
95 ..............................................
96 ..............................................
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
110 ............................................
111 ............................................
112 ............................................
113 ............................................
114 ............................................
115 ............................................
116 ............................................
117 ............................................
118 ............................................
119 ............................................
120 ............................................
AAx
0.005
0.004
0.004
0.003
0.003
0.003
0.003
0.002
0.002
0.002
0.002
0.001
0.001
0.001
0.001
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
TABLE 5.—MORTALITY TABLE FOR SOCIAL SECURITY DISABLED MALE
PARTICIPANTS
Age x
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
E:\FR\FM\14MRP1.SGM
14MRP1
qx
0.022010
0.022502
0.023001
0.023519
0.024045
0.024583
0.025133
0.025697
0.026269
0.026857
0.027457
0.028071
0.028704
0.029345
0.029999
0.030661
0.031331
0.032006
0.032689
0.033405
0.034184
0.034981
0.035796
0.036634
0.037493
0.038373
Federal Register / Vol. 70, No. 48 / Monday, March 14, 2005 / Proposed Rules
12435
TABLE 5.—MORTALITY TABLE FOR SO- TABLE 5.—MORTALITY TABLE FOR SO- TABLE 6.—MORTALITY TABLE FOR SOCIAL SECURITY DISABLED MALE
CIAL SECURITY DISABLED MALE
CIAL SECURITY DISABLED FEMALE
PARTICIPANTS—Continued
PARTICIPANTS—Continued
PARTICIPANTS—Continued
Age x
41 ..............................................
42 ..............................................
43 ..............................................
44 ..............................................
45 ..............................................
46 ..............................................
47 ..............................................
48 ..............................................
49 ..............................................
50 ..............................................
51 ..............................................
52 ..............................................
53 ..............................................
54 ..............................................
55 ..............................................
56 ..............................................
57 ..............................................
58 ..............................................
59 ..............................................
60 ..............................................
61 ..............................................
62 ..............................................
63 ..............................................
64 ..............................................
65 ..............................................
66 ..............................................
67 ..............................................
68 ..............................................
69 ..............................................
70 ..............................................
71 ..............................................
72 ..............................................
73 ..............................................
74 ..............................................
75 ..............................................
76 ..............................................
77 ..............................................
78 ..............................................
79 ..............................................
80 ..............................................
81 ..............................................
82 ..............................................
83 ..............................................
84 ..............................................
85 ..............................................
86 ..............................................
87 ..............................................
88 ..............................................
89 ..............................................
90 ..............................................
91 ..............................................
92 ..............................................
93 ..............................................
94 ..............................................
95 ..............................................
96 ..............................................
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
VerDate jul<14>2003
15:27 Mar 11, 2005
Age x
qx
0.039272
0.040189
0.041122
0.042071
0.043033
0.044007
0.044993
0.045989
0.046993
0.048004
0.049021
0.050042
0.051067
0.052093
0.053120
0.054144
0.055089
0.056068
0.057080
0.058118
0.059172
0.060232
0.061303
0.062429
0.063669
0.065082
0.066724
0.068642
0.070834
0.073284
0.075979
0.078903
0.082070
0.085606
0.088918
0.092208
0.095625
0.099216
0.103030
0.107113
0.111515
0.116283
0.121464
0.127108
0.133262
0.139974
0.147292
0.155265
0.163939
0.173363
0.183585
0.194653
0.206615
0.219519
0.234086
0.248436
0.263954
0.280803
0.299154
0.319185
0.341086
0.365052
0.393102
0.427255
0.469531
0.521945
0.586518
0.665268
0.760215
Jkt 205001
qx
110 ............................................
1.000000
TABLE 6.—MORTALITY TABLE FOR SOCIAL SECURITY DISABLED FEMALE
PARTICIPANTS
Age x
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
PO 00000
qx
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................
Frm 00016
Fmt 4702
Sfmt 4702
0.007777
0.008120
0.008476
0.008852
0.009243
0.009650
0.010076
0.010521
0.010984
0.011468
0.011974
0.012502
0.013057
0.013632
0.014229
0.014843
0.015473
0.016103
0.016604
0.017121
0.017654
0.018204
0.018770
0.019355
0.019957
0.020579
0.021219
0.021880
0.022561
0.023263
0.023988
0.024734
0.025504
0.026298
0.027117
0.027961
0.028832
0.029730
0.030655
0.031609
0.032594
0.033608
0.034655
0.035733
0.036846
0.037993
0.039176
0.040395
0.041653
0.042950
0.044287
0.045666
0.046828
0.048070
0.049584
0.051331
0.053268
0.055356
0.057573
0.059979
Age x
75 ..............................................
76 ..............................................
77 ..............................................
78 ..............................................
79 ..............................................
80 ..............................................
81 ..............................................
82 ..............................................
83 ..............................................
84 ..............................................
85 ..............................................
86 ..............................................
87 ..............................................
88 ..............................................
89 ..............................................
90 ..............................................
91 ..............................................
92 ..............................................
93 ..............................................
94 ..............................................
95 ..............................................
96 ..............................................
97 ..............................................
98 ..............................................
99 ..............................................
100 ............................................
101 ............................................
102 ............................................
103 ............................................
104 ............................................
105 ............................................
106 ............................................
107 ............................................
108 ............................................
109 ............................................
110 ............................................
qx
0.062574
0.065480
0.068690
0.072237
0.076156
0.080480
0.085243
0.090480
0.096224
0.102508
0.109368
0.116837
0.124948
0.133736
0.143234
0.153477
0.164498
0.176332
0.189011
0.202571
0.217045
0.232467
0.248870
0.266289
0.284758
0.303433
0.327385
0.359020
0.395842
0.438360
0.487816
0.545886
0.614309
0.694884
0.789474
1.000000
Issued in Washington, DC, this 8th day of
March, 2005.
Bradley D. Belt,
Executive Director, Pension Benefit Guaranty
Corporation.
[FR Doc. 05–4950 Filed 3–11–05; 8:45 am]
BILLING CODE 7708–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 271
[FRL–7883–6]
Tennessee: Final Authorization of
State Hazardous Waste Management
Program Revisions
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: Tennessee has applied to EPA
for Final authorization of the changes to
its hazardous waste program under the
Resource Conservation and Recovery
Act (RCRA). EPA proposes to grant final
authorization to Tennessee for RCRA
E:\FR\FM\14MRP1.SGM
14MRP1
]]>Agencies
[Federal Register Volume 70, Number 48 (Monday, March 14, 2005)]
[Proposed Rules]
[Pages 12429-12435]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4950]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
RIN 1212-AA55
Valuation of Benefits; Mortality Assumptions
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Pension Benefit Guaranty Corporation proposes to amend its
benefit valuation regulation by adopting more current mortality
assumptions
[[Page 12430]]
(moving from a version of GAM-83 to a version of GAM-94). The updated
mortality assumptions will better conform to those used by private-
sector insurers in pricing group annuities.
DATES: Comments must be received on or before May 13, 2005.
ADDRESSES: Comments may be mailed or delivered to the Legislative and
Regulatory Department, Pension Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005-4026. Comments also may be submitted
electronically through the PBGC's Web site at https://www.pbgc.gov/regs,
or by fax to (202) 326-4112. The PBGC will make all comments available
on its Web site, https://www.pbgc.gov. Copies of the comments may also
be obtained by writing to the PBGC's Communications and Public Affairs
Department at Suite 240 at the above address or by visiting that office
or calling (202) 326-4040 during normal business hours. (TTY and TDD
users may call the Federal relay service toll-free at 1-800-877-8339
and ask to be connected to (202) 326-4040.)
FOR FURTHER INFORMATION CONTACT: James J. Armbruster, Acting Director,
or James L. Beller, Attorney, Legislative and Regulatory Department,
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,
DC 20005-4026, (202) 326-4024. (TTY and TTD users may call the Federal
relay service toll-free at 1-800-877-8339 and ask to be connected to
(202) 326-4024.)
SUPPLEMENTARY INFORMATION: The PBGC's regulations provide rules for
valuing benefits in a single-employer plan that terminates in a
distress or involuntary termination. (The rules are codified at 29 CFR
part 4044, subpart B.) The PBGC uses these rules to determine: (1) The
extent to which participants' benefits are funded under the allocation
rules of ERISA section 4044, (2) whether a plan is sufficient for
guaranteed benefits, and (3) how much an employer owes the PBGC as a
result of a plan termination under ERISA section 4062. Employers must
use these rules to determine the value of plan benefit liabilities in
annual reports required to be submitted under ERISA section 4010, and
may use these rules to ensure that plan spinoffs, mergers, and
transfers comply with Internal Revenue Code section 414(l).
General Valuation Approach
The valuation rules prescribe a number of assumptions intended to
produce reasonable valuation results on average for the range of plans
terminating in distress or involuntary terminations, rather than for
any particular plan or plan type. Historically, the PBGC has matched,
to the extent possible, the private-sector annuity market when
prescribing assumptions for valuing benefits in a terminating plan.
To determine the market cost of providing annuity benefits, the
PBGC has relied upon data from periodic surveys conducted for the PBGC
by the American Council of Life Insurers (the ACLI surveys). These ACLI
surveys ask insurers for pricing information on group annuities. Each
respondent to the surveys provides its prices (net of administrative
expenses) for a range of ages for immediate annuities (annuities where
payments start immediately) and for deferred annuities (annuities where
payments are deferred to age 65). Prices of each of the two types of
annuities are averaged at each age to get an average market price. The
PBGC then derives an interest factor that, when combined with the
PBGC's healthy-life mortality assumptions, provides the best fit for
the average market prices (as obtained from the ACLI surveys) over the
entire range of ages. The interest factor is recalibrated to the
annuity survey prices each year. Each month between recalibrations, the
PBGC adjusts the interest factor based on changes in the yield on long-
term corporate investment-grade bonds. The interest factor is then used
in conjunction with the PBGC's mortality assumptions (and other PBGC
assumptions) to value annuity benefits.
These derived interest factors are not market interest rates. The
factors stand in for all the many components used in annuity pricing
that are not reflected in the given mortality table--e.g., assumed
yield on investment, margins for profit and contingencies, premium and
income taxes, and marketing and sales expenses. Because of the
relationship among annuity prices, a mortality table, and the derived
interest factors, it is never meaningful to compare PBGC's interest
factors to market interest rates. The PBGC's interest factor is
meaningful only in combination with the PBGC's mortality assumptions.
Mortality Assumptions
One set of assumptions prescribed by the valuation regulation
relates to the probabilities that a participant (or beneficiary) will
survive to each expected benefit payment date, i.e., mortality
assumptions. The mortality assumptions now used by the PBGC to value
benefits for non-disabled (``healthy'') participants are taken from the
1983 Group Annuity Mortality (GAM-83) Tables. The PBGC shifted to these
tables in 1993, noting in its preamble to the proposed rule (at 58 FR
5129) that many private-sector insurers had shifted to the GAM-83
Tables when setting group annuity prices. The PBGC also said (at 58 FR
5129) that it intended ``to keep each of its individual valuation
assumptions in line with those of private-sector insurers, and to
modify its mortality assumptions whenever it is necessary to do so to
achieve consistency with the private insurer assumptions.'' The PBGC
has not updated these mortality assumptions since 1993. (There is no
reason to expect that the PBGC's mortality tables under this regulation
will match the tables prescribed for certain funding purposes under
Treasury Regulations at any point in time. The PBGC's mortality tables
are based on the mortality experience of group annuitants. In contrast,
the tables to be used for certain minimum funding purposes are based on
the mortality experience of individuals covered by pension plans. Group
annuitants, many of whom have chosen to receive their benefits as
annuities rather than as lump sums, tend to have longer life
expectancies than individuals covered by pension plans.)
As noted, the ACLI periodically conducts surveys, on behalf of the
PBGC, of insurers who provide group annuity contracts for information
on how they price group annuities. In addition to other pricing
questions, the ACLI from time to time has asked for information on
which mortality tables the insurers use when pricing group annuities in
pension plans. A majority of respondents indicated that, as of March
31, 2002, they use a version of the 1994 Group Annuity Mortality Basic
(GAM-94 Basic) Table and project future improvements in mortality with
projection scale AA. Similarly, the Society of Actuaries sponsored a
survey of pricing actuaries for insurers who provide group annuity
contracts and found that five of the ten respondents used a version of
the GAM-94 Table. 30-Year Treasury Rates and Defined Benefit Plans,
August 22, 2001, p. 5. That survey also found that most companies
projected future improvements and that the most common projection scale
was AA.
Based on these surveys, the PBGC proposes to use the GAM-94 Basic
Table as the basis for the healthy-life mortality assumptions it uses
for its valuation of plan benefits. Specifically, for a particular
valuation, the PBGC would use the GAM-94 Basic Table projected to the
year of that valuation plus 10 years using Scale AA. The updated
mortality assumptions now being proposed will permit the PBGC to derive
interest factors that, when combined with those updated mortality
[[Page 12431]]
assumptions, would enable the PBGC to match the ACLI survey prices more
closely across the entire range of ages than had GAM-83 been used.
The PBGC is proposing to use a projected mortality table to take
into account expected improvements in mortality. In order to avoid
undue complexity, the PBGC proposes to use a projected static table
rather than a generational table. (A generational table takes into
account expected mortality improvements but in a far more complex
manner than does a projected static table.) The projection would be to
the year of valuation plus 10 years as a rough approximation for the
duration of liabilities in plans that terminate in distress or
involuntary terminations. For example, the probability of death for a
65-year old healthy male to be used in a valuation in 2005 would be
calculated as follows: .015629 x (1 - .014)
(2005 -1994 + 10) = .011624. The PBGC would publish the
projected mortality tables on its Web site (https://www.pbgc.gov).
Because of the way the PBGC determines its interest factors, the
choice of mortality assumptions generally would have no significant
effect on benefit valuations. The effect that a change in mortality
assumptions would have on valuations is generally offset by the effect
of the corresponding change in the PBGC's interest factors. For
example, the proposed use of GAM-94 mortality assumptions would result
in the PBGC's deriving higher interest factors than would the use of
GAM-83 mortality assumptions (because GAM-94 has lower mortality rates
than GAM-83). When those higher interest factors are combined with GAM-
94, the resulting value for a given benefit would generally be about
the same as it would have been had the PBGC used GAM-83 along with the
lower interest factors derived from the ACLI surveys using GAM-83. (For
a more detailed explanation, see the preambles to the PBGC's proposed
rule published on January 19, 1993, at 58 FR 5128, and final rule
published on September 28, 1993, at 58 FR 50812.)
In addition to the mortality assumptions for healthy individuals,
the current regulation provides two other sets of mortality
assumptions: (1) Those for participants who are disabled under a plan
provision requiring eligibility for Social Security disability benefits
(Social Security disabled participants), and (2) those for participants
who are disabled under a plan provision that does not require
eligibility for Social Security disability benefits (non-Social
Security disabled participants).
As with the mortality assumptions for healthy individuals, the PBGC
proposes to update the mortality assumptions used for disabled
participants. For Social Security disabled participants, the PBGC
proposes to use the Mortality Tables for Disabilities Occurring in Plan
Years Beginning After December 31, 1994, from Rev. Rul. 96-7 (1996-1
C.B. 59). These tables were developed by the Internal Revenue Service
as required by the Retirement Protection Act of 1994 amendments
relating to the determination of current liability. For non-Social
Security disabled participants, the PBGC proposes to use the healthy
life tables projected from 1994 to the calendar year in which the
valuation date occurs plus 10 years using Scale AA and setting the
resulting table forward three years. In addition, in order to prevent
the rates at the older ages from exceeding the corresponding rates in
the proposed table for Social Security disabled participants, the PBGC
proposes to cap the mortality rate for non-Social Security disabled
participants at the corresponding rate for Social Security disabled
participants. For convenience, the PBGC would make all of these
mortality tables (like the healthy-life mortality tables) available on
its Web site (https://www.pbgc.gov).
The PBGC is also proposing a clarifying change to this regulation
to reflect its practice of treating a participant as a disabled
participant if on the valuation date the participant is under age 65
and has a benefit that was converted under the plan's terms from a
disability benefit to an early or normal retirement benefit for any
reason other than a change in the participant's health status. In
developing this proposed rule, the PBGC considered the comments
relating to its mortality assumptions that it received in response to
its notice of intent to propose rulemaking issued on March 19, 1997 (62
FR 12982). The PBGC adopted a number of the suggestions made by
commenters. For instance, one commenter suggested the PBGC should not
adopt a reserving table (i.e., a table that includes a built-in margin
to provide a cushion for reserving purposes). Another commenter asked
the PBGC to adopt a static table rather than a generational table. The
tables proposed by PBGC are basic (nonreserve) static tables.
Several commenters asked the PBGC to provide mortality assumptions
that vary depending on industry or workforce type or that vary on a
plan-specific basis. The proposal does not adopt either of these
approaches. As discussed above, the PBGC selects its mortality
assumptions with the goal of achieving consistency with the mortality
assumptions used by private-sector insurers for pricing group annuity
contracts. To this end, ACLI respondents were asked to identify the
mortality tables they used and any variations to those tables. Neither
the proposed GAM 94-Basic Table, the most commonly identified table,
nor any of the other tables identified by the survey respondents
provided mortality assumptions that vary depending on industry or
workforce type. Moreover, none of the survey respondents reported that
they make modifications or adjustments based on industry or workforce
type. As for the use of plan-specific mortality assumptions, the PBGC's
general valuation approach is to apply a common set of assumptions
(e.g., mortality, expected retirement age) to all plans with the goal
of producing reasonable results on average. Shifting to a plan-specific
approach for mortality would be a fundamental change that could require
burdensome verification procedures. Therefore, the PBGC proposes to
continue to use more general mortality assumptions that, like its other
assumptions, produce reasonable results on average.
Other Changes to Valuation Regulation
The PBGC will continue to explore other ways to improve its benefit
valuation regulations and may make other changes through separate
rulemaking actions.
Compliance With Rulemaking Guidelines
The PBGC has determined, in consultation with the Office of
Management and Budget, that this proposed rule is a ``significant
regulatory action'' under Executive Order 12866. The Office of
Management and Budget has therefore reviewed this proposed rule under
Executive Order 12866. The Office of Management and Budget, therefore,
has reviewed this proposed rule under Executive Order 12866.
The PBGC certifies under section 605(b) of the Regulatory
Flexibility Act that this proposed rule would not have a significant
economic impact on a substantial number of small entities. As explained
earlier in this preamble, the effect on a plan valuation of the change
in the PBGC's mortality assumptions will be offset by the effect on
that plan's valuation of the PBGC's use of higher interest factors.
Because of this offsetting effect, the PBGC does not expect this
proposed rule to have a significant economic impact on a substantial
number of entities of any size. Accordingly, sections 603 and 604 of
the Regulatory Flexibility Act do not apply.
[[Page 12432]]
List of Subjects in 29 CFR Part 4044
Employee benefits plans, Pension insurance, Pensions.
For the reasons set forth above, the PBGC proposes to amend part
4044 of 29 CFR chapter XL as follows:
PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
1. The authority citation for part 4044 continues to read as
follows:
Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, and 1362.
Sec. 4044.52 [Amended]
2. Amend Sec. 4044.52 by adding the word ``and'' to the end of
paragraph (c), removing paragraph (d), and redesignating paragraph (e)
as paragraph (d).
3. Revise Sec. 4044.53 to read as follows:
Sec. 4044.53 Mortality assumptions.
(a) General rule. Subject to paragraph (b) of this section
(regarding certain death benefits), the plan administrator shall use
the mortality factors prescribed in paragraphs (c), (d), (e), (f), and
(g) of this section to value benefits under Sec. 4044.52.
(b) Certain death benefits. If an annuity for one person is in pay
status on the valuation date, and if the payment of a death benefit
after the valuation date to another person, who need not be
identifiable on the valuation date, depends in whole or in part on the
death of the pay status annuitant, then the plan administrator shall
value the death benefit using--
(1) The mortality rates that are applicable to the annuity in pay
status under this section to represent the mortality of the pay status
annuitant; and
(2) The mortality rates under paragraph (c) of this section to
represent the mortality of the death beneficiary.
(c) Healthy lives. If the individual is not disabled under
paragraph (f) of this section, the plan administrator will value the
benefit using--
(1) For male participants, the rates in Table 1 of Appendix A to
this part projected from 1994 to the calendar year in which the
valuation date occurs plus 10 years using Scale AA from Table 2 of
Appendix A to this part; and
(2) For female participants, the rates in Table 3 of Appendix A to
this part projected from 1994 to the calendar year in which the
valuation date occurs plus 10 years using Scale AA from Table 4 of
Appendix A to this part.
(d) Social Security disabled lives. If the individual is Social
Security disabled under paragraph (f)(1) of this section, the plan
administrator will value the benefit using--
(1) For male participants, the rates in Table 5 of Appendix A to
this part; and
(2) For female participants, the rates in Table 6 of Appendix A to
this part.
(e) Non-Social Security disabled lives. If the individual is non-
Social Security disabled under paragraph (f)(2) of this section, the
plan administrator will value the benefit at each age using--
(1) For male participants, the lesser of--
(i) The rate determined from Table 1 of Appendix A to this part
projected from 1994 to the calendar year in which the valuation date
occurs plus 10 years using Scale AA from Table 2 of Appendix A to this
part and setting the resulting table forward three years, or
(ii) The rate in Table 5 of Appendix A to this part.
(2) For female participants, the lesser of--
(i) The rate determined from Table 3 of Appendix A to this part
projected from 1994 to the calendar year in which the valuation date
occurs plus 10 years using Scale AA from Table 4 of Appendix A to this
part and setting the resulting table forward three years, or
(ii) The rate in Table 6 of Appendix A to this part.
(f) Definitions of disability.
(1) Social Security disabled. A participant is Social Security
disabled if, on the valuation date, the participant is less than age 65
and has a benefit in pay status that--
(i) Is being received as a disability benefit under a plan
provision requiring either receipt of or eligibility for Social
Security disability benefits, or
(ii) Was converted under the plan's terms from a disability benefit
under a plan provision requiring either receipt of or eligibility for
Social Security disability benefits to an early or normal retirement
benefit for any reason other than a change in the participant's health
status.
(2) Non-Social Security disabled. A participant is non-Social
Security disabled if, on the valuation date, the participant is less
than age 65, is not Social Security disabled, and has a benefit in pay
status that--
(i) Is being received as a disability benefit under the plan, or
(ii) Was converted under the plan's terms from a disability benefit
to an early or normal retirement benefit for any reason other than a
change in the participant's health status.
(g) Contingent annuitant mortality during deferral period. If a
participant's joint and survivor benefit is valued as a deferred
annuity, the mortality of the contingent annuitant during the deferral
period will be disregarded.
4. Revise Appendix A to part 4044 to read as follows:
Appendix A To Part 4044--Mortality Rate Tables
The mortality tables in this appendix set forth for each age x
the probability qx that an individual aged x (in 1994,
when using Table 1 or Table 3) will not survive to attain age x + 1.
The projection scales in this appendix set forth for each age x the
annual reduction AAx in the mortality rate at age x.
Table 1.--Mortality Table for Healthy Male Participants (94 GAM Basic)
------------------------------------------------------------------------
Age x qx
------------------------------------------------------------------------
15......................................................... 0.000371
16......................................................... 0.000421
17......................................................... 0.000463
18......................................................... 0.000495
19......................................................... 0.000521
20......................................................... 0.000545
21......................................................... 0.000570
22......................................................... 0.000598
23......................................................... 0.000633
24......................................................... 0.000671
25......................................................... 0.000711
26......................................................... 0.000749
27......................................................... 0.000782
28......................................................... 0.000811
29......................................................... 0.000838
30......................................................... 0.000862
31......................................................... 0.000883
32......................................................... 0.000902
33......................................................... 0.000912
34......................................................... 0.000913
35......................................................... 0.000915
36......................................................... 0.000927
37......................................................... 0.000958
38......................................................... 0.001010
39......................................................... 0.001075
40......................................................... 0.001153
41......................................................... 0.001243
42......................................................... 0.001346
43......................................................... 0.001454
44......................................................... 0.001568
45......................................................... 0.001697
46......................................................... 0.001852
47......................................................... 0.002042
48......................................................... 0.002260
49......................................................... 0.002501
50......................................................... 0.002773
51......................................................... 0.003088
52......................................................... 0.003455
53......................................................... 0.003854
54......................................................... 0.004278
55......................................................... 0.004758
56......................................................... 0.005322
57......................................................... 0.006001
58......................................................... 0.006774
59......................................................... 0.007623
60......................................................... 0.008576
61......................................................... 0.009663
62......................................................... 0.010911
63......................................................... 0.012335
64......................................................... 0.013914
65......................................................... 0.015629
66......................................................... 0.017462
67......................................................... 0.019391
68......................................................... 0.021354
69......................................................... 0.023364
70......................................................... 0.025516
[[Page 12433]]
71......................................................... 0.027905
72......................................................... 0.030625
73......................................................... 0.033549
74......................................................... 0.036614
75......................................................... 0.040012
76......................................................... 0.043933
77......................................................... 0.048570
78......................................................... 0.053991
79......................................................... 0.060066
80......................................................... 0.066696
81......................................................... 0.073780
82......................................................... 0.081217
83......................................................... 0.088721
84......................................................... 0.096358
85......................................................... 0.104559
86......................................................... 0.113755
87......................................................... 0.124377
88......................................................... 0.136537
89......................................................... 0.149949
90......................................................... 0.164442
91......................................................... 0.179849
92......................................................... 0.196001
93......................................................... 0.213325
94......................................................... 0.231936
95......................................................... 0.251189
96......................................................... 0.270441
97......................................................... 0.289048
98......................................................... 0.306750
99......................................................... 0.323976
100........................................................ 0.341116
101........................................................ 0.358560
102........................................................ 0.376699
103........................................................ 0.396884
104........................................................ 0.418855
105........................................................ 0.440585
106........................................................ 0.460043
107........................................................ 0.475200
108........................................................ 0.485670
109........................................................ 0.492807
110........................................................ 0.497189
111........................................................ 0.499394
112........................................................ 0.500000
113........................................................ 0.500000
114........................................................ 0.500000
115........................................................ 0.500000
116........................................................ 0.500000
117........................................................ 0.500000
118........................................................ 0.500000
119........................................................ 0.500000
120........................................................ 1.000000
------------------------------------------------------------------------
Table 2.--Projection Scale AA for Healthy Male Participants
------------------------------------------------------------------------
Age x AAx
------------------------------------------------------------------------
15......................................................... 0.019
16......................................................... 0.019
17......................................................... 0.019
18......................................................... 0.019
19......................................................... 0.019
20......................................................... 0.019
21......................................................... 0.018
22......................................................... 0.017
23......................................................... 0.015
24......................................................... 0.013
25......................................................... 0.010
26......................................................... 0.006
27......................................................... 0.005
28......................................................... 0.005
29......................................................... 0.005
30......................................................... 0.005
31......................................................... 0.005
32......................................................... 0.005
33......................................................... 0.005
34......................................................... 0.005
35......................................................... 0.005
36......................................................... 0.005
37......................................................... 0.005
38......................................................... 0.006
39......................................................... 0.007
40......................................................... 0.008
41......................................................... 0.009
42......................................................... 0.010
43......................................................... 0.011
44......................................................... 0.012
45......................................................... 0.013
46......................................................... 0.014
47......................................................... 0.015
48......................................................... 0.016
49......................................................... 0.017
50......................................................... 0.018
51......................................................... 0.019
52......................................................... 0.020
53......................................................... 0.020
54......................................................... 0.020
55......................................................... 0.019
56......................................................... 0.018
57......................................................... 0.017
58......................................................... 0.016
59......................................................... 0.016
60......................................................... 0.016
61......................................................... 0.015
62......................................................... 0.015
63......................................................... 0.014
64......................................................... 0.014
65......................................................... 0.014
66......................................................... 0.013
67......................................................... 0.013
68......................................................... 0.014
69......................................................... 0.014
70......................................................... 0.015
71......................................................... 0.015
72......................................................... 0.015
73......................................................... 0.015
74......................................................... 0.015
75......................................................... 0.014
76......................................................... 0.014
77......................................................... 0.013
78......................................................... 0.012
79......................................................... 0.011
80......................................................... 0.010
81......................................................... 0.009
82......................................................... 0.008
83......................................................... 0.008
84......................................................... 0.007
85......................................................... 0.007
86......................................................... 0.007
87......................................................... 0.006
88......................................................... 0.005
89......................................................... 0.005
90......................................................... 0.004
91......................................................... 0.004
92......................................................... 0.003
93......................................................... 0.003
94......................................................... 0.003
95......................................................... 0.002
96......................................................... 0.002
97......................................................... 0.002
98......................................................... 0.001
99......................................................... 0.001
100........................................................ 0.001
101........................................................ 0.000
102........................................................ 0.000
103........................................................ 0.000
104........................................................ 0.000
105........................................................ 0.000
106........................................................ 0.000
107........................................................ 0.000
108........................................................ 0.000
109........................................................ 0.000
110........................................................ 0.000
111........................................................ 0.000
112........................................................ 0.000
113........................................................ 0.000
114........................................................ 0.000
115........................................................ 0.000
116........................................................ 0.000
117........................................................ 0.000
118........................................................ 0.000
119........................................................ 0.000
120........................................................ 0.000
------------------------------------------------------------------------
Table 3.--Mortality Table for Healthy Female Participants (94 GAM Basic)
------------------------------------------------------------------------
Age x qx
------------------------------------------------------------------------
15......................................................... 0.000233
16......................................................... 0.000261
17......................................................... 0.000281
18......................................................... 0.000293
19......................................................... 0.000301
20......................................................... 0.000305
21......................................................... 0.000308
22......................................................... 0.000311
23......................................................... 0.000313
24......................................................... 0.000313
25......................................................... 0.000313
26......................................................... 0.000316
27......................................................... 0.000324
28......................................................... 0.000338
29......................................................... 0.000356
30......................................................... 0.000377
31......................................................... 0.000401
32......................................................... 0.000427
33......................................................... 0.000454
34......................................................... 0.000482
35......................................................... 0.000514
36......................................................... 0.000550
37......................................................... 0.000593
38......................................................... 0.000643
39......................................................... 0.000701
40......................................................... 0.000763
41......................................................... 0.000826
42......................................................... 0.000888
43......................................................... 0.000943
44......................................................... 0.000992
45......................................................... 0.001046
46......................................................... 0.001111
47......................................................... 0.001196
48......................................................... 0.001297
49......................................................... 0.001408
50......................................................... 0.001536
51......................................................... 0.001686
[[Page 12434]]
52......................................................... 0.001864
53......................................................... 0.002051
54......................................................... 0.002241
55......................................................... 0.002466
56......................................................... 0.002755
57......................................................... 0.003139
58......................................................... 0.003612
59......................................................... 0.004154
60......................................................... 0.004773
61......................................................... 0.005476
62......................................................... 0.006271
63......................................................... 0.007179
64......................................................... 0.008194
65......................................................... 0.009286
66......................................................... 0.010423
67......................................................... 0.011574
68......................................................... 0.012648
69......................................................... 0.013665
70......................................................... 0.014763
71......................................................... 0.016079
72......................................................... 0.017748
73......................................................... 0.019724
74......................................................... 0.021915
75......................................................... 0.024393
76......................................................... 0.027231
77......................................................... 0.030501
78......................................................... 0.034115
79......................................................... 0.038024
80......................................................... 0.042361
81......................................................... 0.047260
82......................................................... 0.052853
83......................................................... 0.058986
84......................................................... 0.065569
85......................................................... 0.072836
86......................................................... 0.081018
87......................................................... 0.090348
88......................................................... 0.100882
89......................................................... 0.112467
90......................................................... 0.125016
91......................................................... 0.138442
92......................................................... 0.152660
93......................................................... 0.167668
94......................................................... 0.183524
95......................................................... 0.200229
96......................................................... 0.217783
97......................................................... 0.236188
98......................................................... 0.255605
99......................................................... 0.276035
100........................................................ 0.297233
101........................................................ 0.318956
102........................................................ 0.340960
103........................................................ 0.364586
104........................................................ 0.389996
105........................................................ 0.415180
106........................................................ 0.438126
107........................................................ 0.456824
108........................................................ 0.471493
109........................................................ 0.483473
110........................................................ 0.492436
111........................................................ 0.498054
112........................................................ 0.500000
113........................................................ 0.500000
114........................................................ 0.500000
115........................................................ 0.500000
116........................................................ 0.500000
117........................................................ 0.500000
118........................................................ 0.500000
119........................................................ 0.500000
120........................................................ 1.000000
------------------------------------------------------------------------
Table 4.--Projection Scale AA for Healthy Female Participants
------------------------------------------------------------------------
Age x AAx
------------------------------------------------------------------------
15......................................................... 0.016
16......................................................... 0.015
17......................................................... 0.014
18......................................................... 0.014
19......................................................... 0.015
20......................................................... 0.016
21......................................................... 0.017
22......................................................... 0.017
23......................................................... 0.016
24......................................................... 0.015
25......................................................... 0.014
26......................................................... 0.012
27......................................................... 0.012
28......................................................... 0.012
29......................................................... 0.012
30......................................................... 0.010
31......................................................... 0.008
32......................................................... 0.008
33......................................................... 0.009
34......................................................... 0.010
35......................................................... 0.011
36......................................................... 0.012
37......................................................... 0.013
38......................................................... 0.014
39......................................................... 0.015
40......................................................... 0.015
41......................................................... 0.015
42......................................................... 0.015
43......................................................... 0.015
44......................................................... 0.015
45......................................................... 0.016
46......................................................... 0.017
47......................................................... 0.018
48......................................................... 0.018
49......................................................... 0.018
50......................................................... 0.017
51......................................................... 0.016
52......................................................... 0.014
53......................................................... 0.012
54......................................................... 0.010
55......................................................... 0.008
56......................................................... 0.006
57......................................................... 0.005
58......................................................... 0.005
59......................................................... 0.005
60......................................................... 0.005
61......................................................... 0.005
62......................................................... 0.005
63......................................................... 0.005
64......................................................... 0.005
65......................................................... 0.005
66......................................................... 0.005
67......................................................... 0.005
68......................................................... 0.005
69......................................................... 0.005
70......................................................... 0.005
71......................................................... 0.006
72......................................................... 0.006
73......................................................... 0.007
74......................................................... 0.007
75......................................................... 0.008
76......................................................... 0.008
77......................................................... 0.007
78......................................................... 0.007
79......................................................... 0.007
80......................................................... 0.007
81......................................................... 0.007
82......................................................... 0.007
83......................................................... 0.007
84......................................................... 0.007
85......................................................... 0.006
86......................................................... 0.005
87......................................................... 0.004
88......................................................... 0.004
89......................................................... 0.003
90......................................................... 0.003
91......................................................... 0.003
92......................................................... 0.003
93......................................................... 0.002
94......................................................... 0.002
95......................................................... 0.002
96......................................................... 0.002
97......................................................... 0.001
98......................................................... 0.001
99......................................................... 0.001
100........................................................ 0.001
101........................................................ 0.000
102........................................................ 0.000
103........................................................ 0.000
104........................................................ 0.000
105........................................................ 0.000
106........................................................ 0.000
107........................................................ 0.000
108........................................................ 0.000
109........................................................ 0.000
110........................................................ 0.000
111........................................................ 0.000
112........................................................ 0.000
113........................................................ 0.000
114........................................................ 0.000
115........................................................ 0.000
116........................................................ 0.000
117........................................................ 0.000
118........................................................ 0.000
119........................................................ 0.000
120........................................................ 0.000
------------------------------------------------------------------------
Table 5.--Mortality Table for Social Security Disabled Male Participants
------------------------------------------------------------------------
Age x qx
------------------------------------------------------------------------
15......................................................... 0.022010
16......................................................... 0.022502
17......................................................... 0.023001
18......................................................... 0.023519
19......................................................... 0.024045
20......................................................... 0.024583
21......................................................... 0.025133
22......................................................... 0.025697
23......................................................... 0.026269
24......................................................... 0.026857
25......................................................... 0.027457
26......................................................... 0.028071
27......................................................... 0.028704
28......................................................... 0.029345
29......................................................... 0.029999
30......................................................... 0.030661
31......................................................... 0.031331
32......................................................... 0.032006
33......................................................... 0.032689
34......................................................... 0.033405
35......................................................... 0.034184
36......................................................... 0.034981
37......................................................... 0.035796
38......................................................... 0.036634
39......................................................... 0.037493
40......................................................... 0.038373
[[Page 12435]]
41......................................................... 0.039272
42......................................................... 0.040189
43......................................................... 0.041122
44......................................................... 0.042071
45......................................................... 0.043033
46......................................................... 0.044007
47......................................................... 0.044993
48......................................................... 0.045989
49......................................................... 0.046993
50......................................................... 0.048004
51......................................................... 0.049021
52......................................................... 0.050042
53......................................................... 0.051067
54......................................................... 0.052093
55......................................................... 0.053120
56......................................................... 0.054144
57......................................................... 0.055089
58......................................................... 0.056068
59......................................................... 0.057080
60......................................................... 0.058118
61......................................................... 0.059172
62......................................................... 0.060232
63......................................................... 0.061303
64......................................................... 0.062429
65......................................................... 0.063669
66......................................................... 0.065082
67......................................................... 0.066724
68......................................................... 0.068642
69......................................................... 0.070834
70......................................................... 0.073284
71......................................................... 0.075979
72......................................................... 0.078903
73......................................................... 0.082070
74......................................................... 0.085606
75......................................................... 0.088918
76......................................................... 0.092208
77......................................................... 0.095625
78......................................................... 0.099216
79......................................................... 0.103030
80......................................................... 0.107113
81......................................................... 0.111515
82......................................................... 0.116283
83......................................................... 0.121464
84......................................................... 0.127108
85......................................................... 0.133262
86......................................................... 0.139974
87......................................................... 0.147292
88......................................................... 0.155265
89......................................................... 0.163939
90......................................................... 0.173363
91......................................................... 0.183585
92......................................................... 0.194653
93......................................................... 0.206615
94......................................................... 0.219519
95......................................................... 0.234086
96......................................................... 0.248436
97......................................................... 0.263954
98......................................................... 0.280803
99......................................................... 0.299154
100........................................................ 0.319185
101........................................................ 0.341086
102........................................................ 0.365052
103........................................................ 0.393102
104........................................................ 0.427255
105........................................................ 0.469531
106........................................................ 0.521945
107........................................................ 0.586518
108........................................................ 0.665268
109........................................................ 0.760215
110........................................................ 1.000000
------------------------------------------------------------------------
Table 6.--Mortality Table for Social Security Disabled Female
Participants
------------------------------------------------------------------------
Age x qx
------------------------------------------------------------------------
15......................................................... 0.007777
16......................................................... 0.008120
17......................................................... 0.008476
18......................................................... 0.008852
19......................................................... 0.009243
20......................................................... 0.009650
21......................................................... 0.010076
22......................................................... 0.010521
23......................................................... 0.010984
24......................................................... 0.011468
25......................................................... 0.011974
26......................................................... 0.012502
27......................................................... 0.013057
28......................................................... 0.013632
29......................................................... 0.014229
30......................................................... 0.014843
31......................................................... 0.015473
32......................................................... 0.016103
33......................................................... 0.016604
34......................................................... 0.017121
35......................................................... 0.017654
36......................................................... 0.018204
37......................................................... 0.018770
38......................................................... 0.019355
39......................................................... 0.019957
40......................................................... 0.020579
41......................................................... 0.021219
42......................................................... 0.021880
43......................................................... 0.022561
44......................................................... 0.023263
45......................................................... 0.023988
46......................................................... 0.024734
47......................................................... 0.025504
48......................................................... 0.026298
49......................................................... 0.027117
50......................................................... 0.027961
51......................................................... 0.028832
52......................................................... 0.029730
53......................................................... 0.030655
54......................................................... 0.031609
55......................................................... 0.032594
56......................................................... 0.033608
57......................................................... 0.034655
58......................................................... 0.035733
59......................................................... 0.036846
60......................................................... 0.037993
61......................................................... 0.039176
62......................................................... 0.040395
63......................................................... 0.041653
64......................................................... 0.042950
65......................................................... 0
