Regulatory Updates

2023 Mortality Rates and Tables for DB Plans

The IRS has issued Notice 2022-22, containing “mortality improvement rates” and “static mortality tables” to be used in certain liability determinations for defined benefit (DB) pension plans. To the extent that mortality rates reflect longer life expectancy, the liabilities of a DB plan can increase; to the extent mortality rates reflect shorter life expectancy, the liabilities of a DB plan may decrease. (This is generally of less relevance when benefits from a DB plan are received by participants as lump sums.)

The updated mortality improvement rates and static tables in Notice 2022-22 apply for the calculation of a DB plan’s funding target—and certain other items—for valuation dates occurring in the 2023 calendar year.

Regulatory Updates

Proposed Enhanced Disclosures About ESG Investment Practices

Proposed Enhanced Disclosures About ESG Investment Practices

The SEC has issued a proposed rule that would add reporting requirements for registered investment advisors, registered investment companies, certain advisers that are exempt from registration, and business development companies.