Updated Static Mortality Tables for Defined Benefit Pension Plans in 2026, What Plan Sponsors Need to Know

The IRS has released Notice 2025-40, which provides the updated static mortality tables that defined benefit pension plans must use for valuation dates occurring in 2026. These tables are central to calculating a plan's funding target, minimum required contributions, and minimum lump sum values. Because mortality assumptions directly influence plan liabilities, every plan sponsor, actuary, and administrator needs to understand the updates.

This notice also includes the 2026 unisex mortality table for determining minimum present value under section 417(e)(3).

Here’s what the new tables mean in practice for funding, contributions, and minimum lump sum calculations.

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Updated Static Mortality Tables for 2026

The IRS has published new male, female, and unisex static mortality rates for every age from 0 to 120, shown in the appendix to the notice. These values were developed using the methodology in Treas. Reg. §1.430(h)(3)-1, which incorporates:

• Base mortality rates released in earlier regulations

• Mortality improvement rates projected through 2026

• Annual updates required for plans using static, rather than generational, tables

Plans that rely on static tables, including many small plans, must adopt these 2026 values for all valuation dates during the year.

For example, page 4 of the notice shows:

• Age 65 male static mortality rate, 0.00847

• Age 65 female static mortality rate, 0.00610

• Age 65 unisex static mortality rate, 0.00729

These tables directly drive the present value of accrued benefits, which means even modest mortality shifts can change funding targets by millions of dollars for larger plans.

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Applicability for Funding Rules Under Sections 430, 431, and 433

The mortality tables apply directly to multiple plan types:

Single employer DB plans

Required under section 430, which ties minimum contributions to the plan's funding target.

Multiemployer plans

Section 431 allows the use of the same mortality assumptions for determining current liability under the full funding limitation rules.

CSEC plans

Under section 433, the same tables apply for determining current liability for actuarial funding.

Plans may also use generational tables instead of static tables, but small plans using static tables must switch to the 2026 update automatically.

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Unisex Mortality Table for Minimum Lump Sums

Section 417(e)(3) requires that lump sum distributions use the mortality table specified for the plan year, modified to be unisex. The notice includes this unisex version in the 2026 appendix, using a blend of 50 percent male and 50 percent female static mortality rates.

Plans must use this table for annuity starting dates occurring in stability periods that begin in 2026, along with the appropriate segment interest rates.

This affects:

• Minimum lump sum values

• Accelerated distribution forms

• Participant elections during stability periods

Because mortality changes influence the discounting of annuities into lump sums, these updates can alter employer cash outflows and participant behavior.

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Why the Update Matters for Plan Administrators

The updated mortality assumptions affect every core area of pension plan management:

• Funding requirements, which depend on the present value of accrued benefits

• Contribution strategy for 2026 plan years

• Lump sum calculations, using the new 417(e)(3) unisex table

• PBGC premium computations, particularly the variable rate premium

• Actuarial valuation reports and audit documentation

Even small mortality rate adjustments can increase or decrease the plan's funding target, influencing required contributions and long term funding schedules.

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How Margen Helps Pension Professionals Apply the 2026 Mortality Tables

Mortality updates quietly ripple through funding projections, liability measures, lump sums, and long term plan strategy. With Margen, actuaries and plan sponsors can quickly test scenarios and get clear answers to questions such as:

• "How will switching from 2025 to 2026 mortality tables change our funding target?"

• "What unisex mortality rates apply to lump sum distributions for our 2026 stability period?"

• "Should our plan use static or generational mortality under the current regulations?"

• "How does the new mortality assumption affect our PBGC variable rate premium projection?"

Margen will use the full IRS tables from Notice 2025-40 and combine them with plan specific details to give precise, regulation compliant outputs that help you stay accurate and audit ready.

For full details, see IRS Notice 2025-40.