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Guest TammyS

PBGC premium filing

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Guest TammyS

What is the UVB valuation date for the PBGC premium filing for a calendar year plan?

For a BOY val is it 12/31/2007 or 1/1/2008? I'm thinking 1/1/2008.

Is it 12/31/2008 for an EOY val?

For an EOY val, are the liabilities calculated as of 12/31/2008 but using the BOY accrued benefit?

Also, I assume that the market value of assets is as of 12/31/2008 (for EOY val). So if no 2008 contributions are deposited during 2008 then it would be using the 12/31/2008 MV only (#2a of Schedule SB).

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2008 instructions here: http://www.pbgc.gov/docs/2008comprehensivebooklet.pdf

I think you want page 16.

So for 2008, the UVB date is 1/1/2008 for BOY vals and 12/31/2008 for EOY vals (same date as valuation for calculating the minimum contribution).

So, do cash balance plans (and, I suppose, any other DB plans) that use EOY valuations get a raw deal from the PBGC?

For example, for a 1/1/2008 BOY valuation, the 2008 accruals don't come into the equation; but, for a 12/31/2008 EOY valuation, the 2008 accruals are counted in the UVB.

Should plans that use an EOY valuation be making contributions prior to the EOY to reduce PBGC premiums?

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2008 instructions here: http://www.pbgc.gov/docs/2008comprehensivebooklet.pdf

I think you want page 16.

So for 2008, the UVB date is 1/1/2008 for BOY vals and 12/31/2008 for EOY vals (same date as valuation for calculating the minimum contribution).

So, do cash balance plans (and, I suppose, any other DB plans) that use EOY valuations get a raw deal from the PBGC?

For example, for a 1/1/2008 BOY valuation, the 2008 accruals don't come into the equation; but, for a 12/31/2008 EOY valuation, the 2008 accruals are counted in the UVB.

Should plans that use an EOY valuation be making contributions prior to the EOY to reduce PBGC premiums?

Dig deeper into your instructions. The 2008 contributions and benefit accruals are not part of this calculation, and must be backed out of the assets and UVB.

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2008 instructions here: http://www.pbgc.gov/docs/2008comprehensivebooklet.pdf

I think you want page 16.

So for 2008, the UVB date is 1/1/2008 for BOY vals and 12/31/2008 for EOY vals (same date as valuation for calculating the minimum contribution).

So, do cash balance plans (and, I suppose, any other DB plans) that use EOY valuations get a raw deal from the PBGC?

For example, for a 1/1/2008 BOY valuation, the 2008 accruals don't come into the equation; but, for a 12/31/2008 EOY valuation, the 2008 accruals are counted in the UVB.

Should plans that use an EOY valuation be making contributions prior to the EOY to reduce PBGC premiums?

Dig deeper into your instructions. The 2008 contributions and benefit accruals are not part of this calculation, and must be backed out of the assets and UVB.

Because the Premium Funding Target is based upon benefits accrued as of BOY, even though it is measured on the funding valuation date! Cool! Thanks!

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