[Billing Code 7708 01 P] PENSION BENEFIT GUARANTY CORPORATION 29 CFR PART 4044 RIN 1212 AA55 Valuation of Benefits; Mortality Assumptions AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. SUMMARY: The Pension Benefit Guaranty Corporation is amending its benefit valuation regulation by adopting more current mortality assumptions. The mortality assumptions prescribed under PBGC’s regulations to be used to value benefits for non disabled (Ahealthy@) participants are taken from the 1983 Group Annuity Mortality (GAM 83) Tables. The PBGC published a final rule adopting these tables in 1993, noting that many private sector insurers used the GAM 83 Tables when setting group annuity prices. At that time, the PBGC also said 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. This rule updates those assumptions by replacing a version of the GAM 83 Tables with a version of the GAM 94 Tables. The updated mortality assumptions will better conform to those used by private sector insurers in pricing group annuities. DATES: Effective January 1, 2006. For a discussion of applicability of the amendments, see the Applicability section in SUPPLEMENTARY INFORMATION. FOR FURTHER INFORMATION CONTACT: James J. Armbruster, Acting Director, Legislative and Regulatory Department , or James L. Beller, Jr., Attorney, Legislative and Regulatory Department, PBGC, 1200 K Street, N.W., Washington, DC 20005 4026; 202 326 4024. (TTY/TDD 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: On March 14, 2005 (at 70 FR 12429), the Pension Benefit Guaranty Corporation (PBGC) published a proposed rule modifying 29 CFR part 4044 (Allocation of Assets in Single-employer Plans). The PBGC received one comment letter on the proposed rule (which is addressed below) and is issuing the final regulation as proposed. 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. The assumptions prescribed by this rule for valuing benefits in terminating plans match the private sector annuity market to the extent possible. The market cost of providing annuity benefits is based 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. Interest factors are derived so that, when combined with the PBGC=s healthy life mortality assumptions, they provide the best fit for the average market prices (as obtained from the ACLI surveys) over the entire range of ages. The interest factors are recalibrated to the annuity survey prices each year. Each month between recalibrations, the interest factors are adjusted based on changes in the yield on long term corporate investment grade bonds. The interest factors are 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 C 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 factors are 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 to value benefits for non disabled (Ahealthy@) participants are taken from the 1983 Group Annuity Mortality (GAM 83) Tables. The PBGC published a final rule adopting these tables in 1993, noting in the preamble to the proposed rule, 58 FR 5128, 5129 (January 19, 1993), that many private sector insurers used the GAM 83 Tables when setting group annuity prices. The PBGC also said (at 58 FR 5129) that it intended Ato 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.@ These mortality assumptions have not been updated since 1993. 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 and six of the ten used an unloaded (i.e., basic) table. 30 Year Treasury Rates and Defined Benefit Plans, August 22, 2001, p.5. That survey also found that most of the surveyed companies projected future improvements and that the most common projection scale was AA. Based on these surveys, this regulation adopts the GAM 94 Basic Table as the basis for the healthy life mortality assumptions to be used for PBGC valuations of plan benefits. Specifically, for a particular valuation, the regulation prescribes the use of the GAM 94 Basic Table projected to the year of that valuation plus 10 years using Scale AA. The updated mortality assumptions will result in interest factors that, when combined with those updated mortality assumptions, will provide prices that match the ACLI survey prices more closely across the entire range of ages than had GAM-83 been used. The regulation prescribes a projected mortality table to take into account expected improvements in mortality. While it would be ideal to reflect mortality improvement through the use of a fully generational mortality table (i.e., a table that provides for full generational mortality improvement), this would be unduly complex. A fully generational table is constructed from a group of static tables. For example, the value of an annuity payable to a participant beginning at age 65 in 2007 would be calculated from a 2007 static table for the probability of death at age 65, a 2008 static table for the probability of death at age 66, a 2009 static table for the probability of death at age 67, etc. One method of approximating the effect of full generational mortality improvement is to project the current table for a specified number of years and use the resulting table without further projection. The number of years of projection would be equal to the years to the valuation date plus the duration of liabilities. This rule adopts this approach. A mortality table that includes projection for the liability duration takes into account expected mortality improvements and achieves results very close to those of a fully generational table but in a much less complex manner. The regulation calls for the use of mortality tables projected 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. Thus, for a valuation in 2006, mortality is projected to the year 2016 for each age. For a valuation in 2007, mortality is projected to the year 2017. For example, the probability of death for a 65 year-old healthy male to be used in a valuation in 2006 would be calculated as follows: .015629 x (1 - .014) (2006-1994+10) = .011461. The PBGC will publish the projected mortality tables on its Web site (www.pbgc.gov). There is no reason to expect that the mortality tables under this regulation will match the tables that are 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. Because of the way the PBGC’s interest factors are determined, the choice of mortality assumptions generally is expected to have no significant effect on benefit valuations. The effect that a change in mortality assumptions will have on valuations generally will be offset by the effect of the corresponding change in the interest factors. For example, the use of GAM 94 mortality assumptions will result in 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 will generally be about the same as it would be using GAM 83 along with the lower interest factors derived from the ACLI survey prices 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, this rule updates the mortality assumptions used for disabled participants. For Social Security disabled participants, the regulation calls for the use of 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 regulation calls for the use of 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 mortality rate for non Social Security disabled participants is capped at the corresponding rate for Social Security disabled participants. For convenience, the PBGC will make all of these mortality tables (like the healthy life mortality tables) available on its Web site (www.pbgc.gov). The rule also makes a clarifying change to this regulation to reflect the PBGC’s practice of treating a participant as a disabled participant (Social Security disabled and non-Social Security disabled, whichever is applicable) 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 addition, for clarity, paragraph 4044.52(d) is expressed more simply and moved to paragraph 4044.53(g). That paragraph, which deals with mortality when valuing deferred joint annuities, is being moved from the subsection that deals generally with valuation to the subsection that deals specifically with mortality. Comments on notice of intent to propose rulemaking. In developing the 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 proposed rule adopted a number of the suggestions made by commenters. For instance, one commenter suggested that the regulation should not call for the use of a reserving table (i.e., a table that includes a built in margin to provide a cushion for reserving purposes). Another commenter asked for the adoption of a static table rather than a generational table. This final rule adopts basic (nonreserve) tables that approximate the effect of full generational mortality improvements without the complexity of a fully generational table. Several commenters asked that the rule provide mortality assumptions that vary depending on industry or workforce type or that vary on a plan specific basis. The proposed rule did not adopt either of these approaches. As discussed above and in the proposed rule, the mortality assumptions are selected 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 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 proposed to continue to use more general mortality assumptions that, like its other assumptions, produce reasonable results on average. (No comments were received on the proposed rule with respect to this issue.) Comments on proposed rule. One comment letter on the proposed rule was received. The commenter, an actuary in private practice, asserted that the GAM-94 Basic Table is not widely available and asked the PBGC to explain this table more clearly and to publish the exact Qs (mortality rates). The commenter also suggested that the PBGC should clarify why the proposed rates tables for Social Security disabled lives, which differ from other popular rates tables for disabled lives (for example, the RP 2000 disabled life mortality table), are appropriate. The GAM-94 Basic Table is also known as the 1994 Uninsured Pensioner Mortality Table (UP 94), which is widely available; for example, it is included in the Society of Actuaries= mortality table software, ATable Manager.@ The GAM 94 Basic Table, with specific Qs and the projection scale, was part of the proposed rule (and is included in this final rule). In addition, as stated above and in the proposed rule, the PBGC will publish the projected mortality tables on its Web site (www.pbgc.gov). The rule calls for the use of rates from the Mortality Tables for Disabilities Occurring in Plan Years Beginning After December 31, 1994, from Rev. Rul. 96 7 (1996 1 C.B. 59) for Social Security disabled participants, because those rates were developed based on the Social Security Administration's experience for individuals who are receiving benefits under its program. These tables differ from certain other popular tables (in particular, the RP 2000 table), which are based on a population of all disabled lives, rather than the narrower population of Social Security disabled lives. Applicability These amendments apply to any plan with a termination date on or after January 1, 2006. 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 rule is a Asignificant regulatory action@ under Executive Order 12866. The Office of Management and Budget, therefore, has reviewed this rule under Executive Order 12866. The PBGC certifies under section 605(b) of the Regulatory Flexibility Act that this rule will 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 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. This final rule contains no collection of information requirements within the meaning of the Paperwork Reduction Act of 1995. List of Subjects 29 CFR Part 4044 Employee benefits plans, Pension insurance, Pensions. For the reasons set forth above, the PBGC amends 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. 2. Amend ' 4044.52 by adding the word Aand@ 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 C (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 C (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 C (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 C (1) For male participants, the lesser of C (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 C (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 C (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 C (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 B 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 B 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 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 B 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 B 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 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 B 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 B 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 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 B 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 0.044287 66 0.045666 67 0.046828 68 0.048070 69 0.049584 70 0.051331 71 0.053268 72 0.055356 73 0.057573 74 0.059979 75 0.062574 76 0.065480 77 0.068690 78 0.072237 79 0.076156 80 0.080480 81 0.085243 82 0.090480 83 0.096224 84 0.102508 85 0.109368 86 0.116837 87 0.124948 88 0.133736 89 0.143234 90 0.153477 91 0.164498 92 0.176332 93 0.189011 94 0.202571 95 0.217045 96 0.232467 97 0.248870 98 0.266289 99 0.284758 100 0.303433 101 0.327385 102 0.359020 103 0.395842 104 0.438360 105 0.487816 106 0.545886 107 0.614309 108 0.694884 109 0.789474 110 1.000000 * * * * * Issued in Washington, DC, this ___ day of ________, 2005. ____________________________________ Elaine L. Chao Chairman, Board of Directors Pension Benefit Guaranty Corporation Issued on the date set forth above pursuant to a resolution of the Board of Directors authorizing its Chairman to issue this final rule. ____________________________________ Judith R. Starr Secretary, Board of Directors Pension Benefit Guaranty Corporation