Significant Index No. 0430.00-00 2 0 1111019 DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 2022.4
TAX EXEMPT AND
GOVERNMENT ENTITIES
OIVISION
AUG 21 2009 Re: Dear This letter is to inform you that your request to use substitute mortality tables for making computations under section 430 of the Internal Revenue Code (the "Code") for the Plan has been granted with respect to the populations specified in this letter, effective for a period of up to 10 years beginning with the plan year commencing October 1, 20' Your request has been granted in accordance with section 430(h)(3) of the Code and section 303(h)(3} of the Employee Retirement Income Security Act of 1974 ("ERISA"). In granting this approval, we have considered only the development of the substitute mortality rates and whether they sufficiently reflect the mortality experience of the applicable plan populations. Accordingly. we are not expressing any opinion as to the accuracy or acceptability of any calculations or other material submitted with your rp.qIJA~t Permission is herby granted to use the healthy and disabled male and female substitute mortality rates shown in the tables below: He~lthy lives Disabled Lives
Age
1
2 3 4 5 6 7
201111 0 19:.
2 Healthy Lives Disabled Lives Age 8
9
10
11
12
13
14
15
16
17
18 19 20 21 22 23
24
25
26
27
28
29 30
31
32
33
3~ 35
36
37 38 39 40 41 42 43 44 45 46 47 48
201111019
3 Healthy Lives Disabled Lives Age Males Females Males Females '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
76 77 78 79 80 81 82 83 84 85 86 87 88 89
2 0 1111019
4 Healthy Lives Disabled Lives
Age Males Females Males Females
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
~16 117 118 119 120 The above tables will be used for all healthy and disabled male and female participants, respectively, in the Plan. The above rates were developed based on an experience study period from October 1,2002, through September 30,2007, and were calculated using the Karup-King method. The base year for the resulting tables is 2005. The I nternal Revenue Service has reviewed the substitute mortality rates and supporting information, and has determined that based on the information submitted, the rates sufficiently reflect the mortality experience of the applicable populations within the Plan. Your attention is called to section 430(h)(3)(C)(ii) of the Code, section 303(h)(3)(C)(ii) of ERISA, and section 1,430(h)(3)-2(d)(4) of the regulations, which describe the
201111019
5 circumstances in which the use of the substitute mortality table will terminate before the end of the 10-year period described above. In general, the substitute mortality tables can no longer be used as of the earliest of: (1) The plan year in which the plan fails to satisfy the requirements of paragraph 1.430(h)(3)-2(c)(1) of the regulations, requiring that the groups for which substitute mortality tables is used must have credible mortality experience, (2) The plan year in which the plan fails to satisfy the requirements of paragraph 1.430(h)(3)-2(d)(1) of the regulations, regarding 'the requirement that other plans and populations in the controlled group must use substitute mortality tables unless it can be demonstrated that they do not have credible mortality experience, (3) The second plan year following the plan year in which there is a significant change in individuals covered by the plan as described in paragraph 1.430(h)(3)-2(d)(4)(ii) of the regulations (generally applicable when there is a change of 20% or more in the number of individuals in the population for which the substitute mortality table is used), (4) The plan year following the plan year in which a substitute mortality table used for a plan population is no longer accurately predictive of future mortality of that population, as determined by the Commissioner oras certified by the Plan's actuary to the satisfaction of the Commissioner, and (5) The date specified in guidance published in the Internal Revenue Bulletin pursuant to a replacement of mortaJity tables specified under section 430(h)(3)(A) and 1.430(h)(3)-1, other than annual updates to the statiC mortality tables issued pursuant to 1.430(h)(3)-1(a)(3) of the regulations. This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of the Code provides that it may not be used or cited by others as precedent. When filing Form 5500 for the plan years for which the substitute mortality tabies are used, please note the information that is required to be attached to Schedule S8 (Actuarial Information) in accordance with the instructions to that form. We have sent a copy of this letter to your Authorized Representative pursuant to a power of attorney on file in this office and to the
2 0 1111 0 19 6 If you require further assistance in this matter, please contact Sincerely, ~~h2~ David M. Ziegler, Manager Employee Plans Actuarial Group 2