The New 2016 Mortality Table Update
The Society of Actuaries recently published the 2016 update to the mortality table released in the fall of 2014. The modifications result in an improvement to the projection scale. The new mortality table includes three additional years of population mortality data and adjusts two model inputs. With the 2016 update, the mortality table now includes Social Security Administration data for 2012 and 2013 along with the preliminary 2014 mortality rates. The adjustments to two underlying model assumptions are anticipated to produce more stable results while still generating consistent results when additional data is added in year after year. The 2016 numbers result in a decrease in accounting liability. The decrease depends dramatically based on age and is most pronounced with older individuals. Depending on the demographics of a plan, it can anticipate a change of between 1.5% to 2% in accounting liabilities. However, the discount rate is down .75% from the beginning of the year so liabilities will still be up from the beginning of the year, they just will not have increased as much as they would have without the 2016 mortality table updates.