ProAdmin computes PPA 417(e) mortality rates using the methodology below. This methodology matched the calculation for 2008 as shown in Revenue Ruling 2007-67.

1. Start with RP-2000, with separate rates for annuitants and non-annuitants (and for males and females).

2. Project the non-annuitant table 23 years (23 = 2008 - 2000 + 15), and the annuitant table 15 years (15 = 2008 - 2000 + 7) using Scale AA. The 15 and the 7 are supposed to reflect average duration to each benefit payment date.

3. Replace the non-annuitant rates at age 80 and above with the annuitant rates.

4. Replace the rates at ages 71-79 using the following from the IRS: The total difference between the rates at ages 70 and 80 is divided by 55; the rate at age 71 is set equal to the rate at age 70 plus 1/55 of the total difference, the age 72 rate is equal to the rate at age 71 plus 2/55 of the total difference, etc.

5. Replace the annuitant rates at age 40 and below with the non-annuitant rates.

6. Replace the male rates at ages 41-49 using the same method described in #4.

7. Replace the female annuitant rates from ages 40-46 with the non-annuitant rates.

8. Replace the female rates at ages 47-49 using the same method described in #4, but with 10 in the denominator instead of 55.

9. Create the Combined table using the applicable weighting factors at each age.

10. Blend the male and female rates from the combined table 50/50.

Note: ProAdmin will change the projection in step 2 above based on the appropriate plan year in which the commencement date occurs. For example, any calculation processed for commencements that would occur during the 2011 plan year the non-annuitant table would be projected 26 years and the annuitant table would be projected 18 years using Scale AA.