LIBOR Posted March 10, 2003 Report Share Posted March 10, 2003 I'm currently involved with a municipal DB plan that calls for mandatory ee contributions. With limited understanding of 414(h)(2) my impression is that the plan can be amended to replace or augment the mandatories with a "pick-up" arrangement. We're currently funding the plan under the Projected Unit Credit method and the annual suggested Town contribution is comprised of net service cost ( i.e total service cost net of mandatories) plus an amortization of the unfunded. Since the "pick-ups" are employer contributions, they would just go towards the suggested Town contribution described above, correct ?? And lastly, if the "pick-up" arrangement augments the current mandatory arrangement & if the mandatories are a % of base pay, then base pay would include the "pick-up" amounts, correct ?? Link to comment Share on other sites More sharing options...
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