The Society of Actuaries Updates Mortality Improvement Scale

Delivers on commitment to update scale as new data becomes available

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Oct 08, 2015, 02:01 ET

SCHAUMBURG, Ill., Oct. 8, 2015 /PRNewswire/ -- The Society of Actuaries (SOA) today released an updated mortality improvement scale for pension plans that incorporates two additional years of Social Security mortality data that have been recently released. The updated scale – MP-2015 – reflects a trend toward somewhat smaller improvements in longevity.

"The data continues to show that people are living longer, but longevity is increasing at a slower rate than previously available data indicated," said Dale Hall, managing director of research for the Society. "The new improvement scale will ensure the pension actuarial community has the most up-to-date information available to help them accurately measure private retirement plan obligations."

In October 2014, the Society released the RP-2014 base mortality tables and MP-2014 improvement scale, the first update to the SOA's pension plan mortality tables in more than a decade. At that time, the SOA indicated the mortality improvement scale (used to project mortality rates) would be updated more frequently as new longevity data became available. The improvement scale released today includes Social Security Administration mortality data from 2010 and 2011.

The SOA's preliminary estimates suggest that updating to the MP-2015 scale released today might reduce a plan's liabilities by between zero and two percent, depending on each plan's specific characteristics.

According to Hall, "Every plan is different, and it is important that professionals working in this field perform their own calculations on the impact to their plan. It is up to plan sponsors, working with their plan actuaries, to determine whether to incorporate MP-2015 into their plan valuations."

The updated mortality improvement scale was developed by the SOA's Retirement Plans Experience Committee (RPEC).

For more information, view a full version of the Mortality Improvement Scale MP-2015 report.

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Actuaries bring a complex future into focus by applying unique insight to risk and opportunity. Known for their comprehensive approach, actuaries enable smart, more confident decisions.

About the Society of Actuaries
The Society of Actuaries is an educational, research and professional organization dedicated to serving the public, its members and candidates. The SOA's mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, business and societal problems. The SOA's vision is for actuaries to be the leading professionals in the measurement and management of risk.