actuary_pension

The plan was frozen for 2026 already and so 2026 is not an issue. The plan sponsor decided to make the whole 2025 MRC deposit for now!

The accrual requirement is 1000 hours which is already met. MRC for the 2025 plan year is close to ~$300k and the plan sponsor would like to reduce the MRC to ~$150k

Logistics: 2025 Plan Year, Cash Balance Plan, Sole Prop, Current Benefit Formula: 100% of Compensation Can the benefit formula be amended to 50% of Compensation (i.e. decrease the benefit without violating 411) for 2025 plan year only under 401(b)(3)? I assume not but wanted to see if community has any thoughts. I understand the accrual rules are generally not a consideration when increasing the benefits under 401(b((3) but does the same apply for 411? Thank you.

Thank you. I recertified the AFTAP using the takeover match numbers and I'll use it on the SB. Right, the recertified AFTAP is very close to the previous Actuary's certified AFTAP.

Logistics of the situation: - PBGC Plan, S Corp, Involves testing, Plan Eff date is within the last 5 years (for purposes of 436 restrictions) - 2025 Valuation completed (signed report but no SB) by prior Actuary, BOY Valuation, AFTAP over 100% certified before September 2025 - After takeover, decided to redo the 2025 valuation and valuation date changed to End of Year. No other assumptions changed. Automatic approval for change to end of year due to Revenue Procedure 2017-56 Section 4.01. Do I need to re-certify the 2025 AFTAP or can I rely on prior Actuary's AFTAP and use it on the 2025 SB? To clarify, the 2025 valuation report is expected to be recertified in next few weeks (say 6/15/2026). So, if I cannot rely on prior Actuary, will the AFTAP restrictions apply until certified? Thanks!