Jump to content
Sign in to follow this  
Guest Ken Newhouse

Deductible cont in under funded plan

Recommended Posts

Guest Ken Newhouse

An underfunded plan feezes benefits but will not terminate for several years. They would like to fund up to 110% of CL so that HCE's can take lump sums without restriction. How can this be done on a deductible basis without unrealistic assumptions? The deductible limit can bring you up to 100% of CL but how do you ever get to 110% of CL without terminating the plan?

Share this post


Link to post
Share on other sites

You can reasonably modify your actuarial assumptions to those required for payment of lump sums under the plan's definition of actuarial equivalent. This is especially justifiable if the plan termination is soon. Even if not, it may be reasonable to make such modification, or something close to it, now.

Another thing to do is to review the data, to see if there is any missing items, such as multiple periods of employment for any EE. This is usually important in any plan termination, so you may as well get started now. It may help you further refine exactly what your liability is.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...