HBActuary

Under 415, there is no credit for a YOP when a plan is frozen because the Participant cannot accrue a benefit (i.e., participate) when the plan is frozen. It's a different story if the plan is active, but the participant does not earn an increase in their benefit, for example, a formula of $100 x YOP up to 3 YOP. In year 4 the Participant will earn a YOP if the required hours were worked for 415.

The answer is no, can't have a YOP for 415 when a plan is frozen. There are many work arounds to your situation but the devil is in the details of what your document says on 436 restrictions and the timing things are done. But you can easily amend at some point to pick up the lost 415 years, something like .50% x YOP up to 10 which won't even have an impact on the accrued benefit. Can do it differently if you want an increase, but need to satisfy any 436 rules on amendments. If you intentionally freeze an owner only plan best practice is to instead use .50% of pay formula x 10 YOP to continue to pick up 415 YOP. Or amend when you terminate.

It's very clear that once you are in the PBGC term process you cannot do an auto cash out. Missing and unresponsive under cashout go to PBGC. Missing over cashout go to PBGC. Unresponsive over cashout must have an annuity purchased.

Andy - I would like to see your spreadheet. If you want you can email to mrocco@earthlink.net or post here? I'm having trouble matching you guys and need to find where I'm going wrong... Mary Ann

He can't even find the date and amount of the rollover out of the old DB plan? That along with the effective date of the plan and the date of termination and your basically good to go! If they can't find the date of termination I usually assume it's the year before the year of distribution. On most of these situations I find that having those prior YOP are VERY helpful in producing higher contributions when funding for a NRA in the new plan that is less than 10 years away.