Now, the plaintiffs in the suit argue that Cigna has violated the District Court's rulings by: "using ‘lookback' interest rates to annuitize the offsets that this court has allowed Cigna to take; using ‘outdated' mortality tables
from the date of the Part B lump-sum distributions rather than the ‘successor' mortality tables
to annuitize the offsets that this court has allowed Cigna to take; eliminating early retirement benefits until the ‘later of' the Part A early retirement age or the date the Part B cash balance account is distributed; and refusing to pay ‘small benefit cash-outs' to class members who have not received their Part B cash balance accounts."
Therefore, their ability to project mortality tables
would be limited.
In "Notifiable Diseases and Mortality Tables
," on pages ND403-22, weekly case counts were inadvertently omitted from the tables "Provisional cases of selected* infrequently reported notifiable diseases (<1,000 cases reported during the preceding year)--United States, week ending May 27, 2017 (21st week) ([dagger])" and "Provisional cases of selected notifiable diseases ([greater than or equal to] 1,000 cases reported during the preceding year), and selected * low frequency diseases, United States and U.S.
Even so, Mercer noted that a buyout may be "significantly more attractive compared to the balance sheet liability" as insurers have adopted new mortality tables
from the Society of Actuaries that introduce higher longevity expectations.
In addition, the Pension Benefit Guarantee Corporation (PBGC) has significantly increased its premiums and changed to new mortality tables
which are less favorable to plan sponsors.
Fitch expects the industry's performance trend to be mitigated during 2016 by the incorporation of adjustments to mortality tables
for the second half of the year.
The economic environment over the last decade along with new mortality tables
and rising PBGC premiums have put into focus just how out of control pension plan costs can get.
Lawrence, pictured at left, noted that in late July, the IRS announced that it will not adopt updated mortality tables
the Society of Actuaries released last year for use in lump-sum calculations until 2017.
The only way to take advantage of that mortality savings is with a new policy issued on the updated mortality tables
Last October, the Society of Actuaries (SOA) Retirement Plans Experience Committee (RPEC) released the final report of the RP-2014 mortality tables
. The updated tables display a consistent trend of increased life expectancy.
Private-sector plans are already required to use new mortality tables
that account for increased longevity when formulating cost estimates.