david rigby

Data as of 31-MAY-11 (Tuesday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 4.94 4.94 Aa 5.00 5.01 5.01 A 5.23 5.21 5.22 Baa 5.64 5.75 5.70 Avg 5.29 5.23 5.26 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.18 Medium-Term (5-10 yrs) 1.21 Long-Term (10+ yrs) 3.35

Sharon, you've received a fine gift from vebaguru. With respect to: be very careful how "profit" is determined.

Ditto. Why make it more complex than necessary? Special class of NHCEs that get an extra PS contribution?

This is the correct solution. Without reviewing the report, no one can answer this question, but the actuary you hire will review and provide an answer.

As far as I know, there is no statemetn in IRC or in IRS reg that contemplates any discounting for accrued interest, anywhere. IMHO, it would be a gigantic leap to assume anyone in DC understands time value of money (or money value of time, for that matter). I'm just sayin'.

Govt. owned hospital buys the practice of a doc. Doc sponsors his/her own plan (401a plan, not 403b plan). Doc is now an employee of the hospital. What can/must happen to the plan? Is the plan frozen? Terminated? Can the hospital continue to operate the plan?

I have the following originals: 1988 5500 form and instructions; 1989 5500 form and instructions; 1990 5500 form and instructions; 1991 5500 form and instructions; 1992 5500 form and instructions; 1993 5500 form and instructions; 1994 5500 instructions; If you want any/all, please e-mail me.

Are ya sure?

As Andy says (and assuming the plan is subject to ERISA), the plan cannot pay a lump sum based on UP84/7.5% unless that amount is greater than the LS based on the 417 interest and mortality. Thus, what you assume in the valuation should reflect the actual plan provisions.

QDROphile is correct. http://benefitslink.com/boards/index.php?showtopic=43688

My guess is that he means "medical benefits" rather than "medical insurance". To my limited understanding, this is similar to the difference between "self-insured" vs. "insured". In the latter case, state insurance laws are relevant. A few other non-attorney thoughts: - You state "bargained to impasse". Is this the same as saying "no CBA exists"? If so, did the ER have any valid position to continue paying to the llocal health plan? If not, is there a solution by going back to that point in time? - If no CBA exists, and the ER wants to make sure its EEs have some coverage, is there anything prohibiting the ER from unilaterally purchasing insurance or otherwise contracting with a PPO? (Even if the answer is yes, this will likely leave some recent terminations out of COBRA coverage.)

Must? not likely. The termination process usually involves asking each participant about the distribution, "Do you want a cash payment or a direct rollover? We will make the distribution within 30 days after you respond." Thus, the late responders should not inhibit the early responders.

Almost. If it's a hard freeze, any 415-related increases will not affect any accrued benefit. The freeze amendment could have been structured to include 415 increases, but it appears too late for that.

RPN forever! I was told once that the 12C has at least one limitation that is not in the HP-17BII: the former cannot solve for non-integral "n", but the latter does just fine. Sorry, I've never confirmed whether it's true, but I think the 17BII is superior.

As best I recall (don't have the reg in front of me), the 415 reg (April 2007?) includes significant discussion about whether to include comp, but the focus is only on comp received after the DOT. If that is correct, then comp received before DOT is not severance comp. (But my recollection may be incomplete.) BTW, the reg states that DOT is an event, not gradual or phased in.

Data as of 29-APR-11 (Friday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.09 5.09 Aa 5.20 5.15 5.18 A 5.46 5.38 5.42 Baa 5.86 5.93 5.90 Avg 5.51 5.39 5.45 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.23 Medium-Term (5-10 yrs) 1.48 Long-Term (10+ yrs) 3.63

Agree. Very strongly.

McKay Hochman also has a DB prototype.

Indeed. Pay attention to SoCal's very important phrase, "properly drafted".

Actuarial Exam, Part 1: answer (e) = undefined

Probably so, assuming the plan is subject to ERISA. Is it possible the plan has offered the retiree an election to receive a lump sum?

There has been at least one prior discussion thread on this point. Try the Search feature.

Not sure if I understand the emphasis in your Q, but here goes: 1. Required? Do you mean for funding, or for LS? For funding, I think the answer is NO, but that is a function of a reasonable retirement decrement. For LS, it is/should be based on plan definition. 2. Yes, if you include the condition that, the PV of ER-reduced immediate annuity should not be less than the PV of unreduced NRD annuity. Is that the gist of your Q?

Pi

Depending on the meaning of "went of business" and the precise wording of the document, the plan may have automatically been terminated.