Financial Reporting and Regulatory Update

Fourth Quarter 2017

From the SOA

Mortality Improvement Scale Update

The Society of Actuaries (SOA) on Oct. 20, 2017, updated its mortality improvement scale for pension plans. According to the SOA, mortality rates increased between 2014 and 2015, which is the first annual rate increase since 2005. The SOA noted that the increase in mortality rates, reflected in the new MP-2017 improvement scale, might reduce pension plan obligations. The updated mortality scale incorporates data through 2014 and preliminary 2015 data developed by the SOA and obtained from the Centers for Disease Control and Prevention, the Centers for Medicare & Medicaid Services, and the U.S. Census Bureau.