A new post-retirement mortality table ‘Indian Individual Annuitant’s Mortality (2012-15)’ was published after due consultation and concurrence of the Insurance Regulatory Development Authority of India (IRDAI) and it is effective from 1st April 2021. This table is now applicable for the purpose of actuarial valuation for all Pension Schemes, Post-retirement Medical Benefit Schemes etc.

The old table ‘Indian Individual Annuitant’s Mortality (1996-98)’ was based on mortality study on lives receiving annuities during the period 1996-98 whereas the new table is based on data from life insurance companies from 1st April 2012 to 31st March 2015. Individual annuities in payment with option type “Life annuity with Return of Corpus (RoC)” have been considered for the detailed investigation done by Actuarial Oversight and Review Committee (AORC). This standard table has been published after due consultation and concurrence of IRDAI.

Overall new mortality rates have declined as compared to the old rates, this is expected due to improved public health facilities. As expected, this will also result in increased annuity prices in the Insurance market. From actuarial valuation perceptive, pension liabilities will increase significantly; especially at the time of adopting the new table during FY 2020-21. The impact on pension liability will depend upon various factors such as employee census and pensioners’ profile covered under the scheme such as average age, plan specifications etc. Provided below are mortality rates from both tables for specific ages for our readers to compare –

Age (in years) Old Annuitant’s table
New Annuitant’s table
60 1.09% 0.63%
65 1.39% 1.01%
70 2.43% 1.64%
75 4.33% 2.74%
80 7.08% 4.67%
85 10.69% 8.08%
90 15.15% 13.98%
95 20.47% 23.67%
100 26.65% 38.21%

Age Definition: Age is defined as age as at last birthday ; Last Age in Table: 115 years