The Society of Actuaries recently released new mortality tables for use by plan sponsors when measuring benefit plan costs and obligations. The new tables, RP-2014 (mortality tables) and MP-2014 (longevity improvement scale), will most likely result in higher defined benefit obligations in benefit plans.
These tables reflect improvement in life expectancy, therefore obligations are expected to increase by approximately 5 to 10%. US generally accepted accounting principles (GAAP) require "best estimates" when considering assumptions in measuring components of a benefit plan. Although these tables are not required under US GAAP they will be universally accepted as the "best estimate" for measuring mortality.
For more information on this topic, or to learn how Baker Tilly employee benefit plan audit specialists can help, contact our team.