david rigby

Tammy, a small comment about terminology. Andy's answer correctly distinguishes between "burn" and "apply". Also, "waive" is usually a synonym for "burn".

Anyone check the ADP test?

Cop out. Just do the val. You did not create the bad news, just report it. If the sponsor is also the trustee, he/she should be talking to his ERISA attorney about the word "fiduciary". BTW, any possibility that the plan might have been frozen?

Also, the phrase "no pre-ret mortality" may be injecting some confusion. Generally, this refers to the time period between current age and normal retirment date and is (sometimes) part of the actuarial assumptions used for determining liabilities; it also might be part of the definition of actuarial equivalent for the same time period. It does not refer to the time period between NRD and (a later) retirement date.

Coming soon. Pi Day. March 14.

It may be reasonable to assume that most acturaries, most plan sponsors and most auditors will prefer the simplest method. But it also depends on how significant interim (quarterly) reporting is, and even whether or not there are other significant events included in such interim reporting. Thus, put the alternatives in front of the sponsor and auditor, and let them decide.

Data as of 27-FEB-09 (Friday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.43 5.43 Aa 6.12 6.04 6.08 A 6.38 6.80 6.59 Baa 7.85 8.63 8.24 Avg 6.78 6.73 6.76 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.18 Medium-Term (5-10 yrs) 2.60 Long-Term (10+ yrs) 3.83

Respectfully, I disagree with (1). I have recognized settlements at different points in time, and the auditor always signed off (although I may have made the suggestion first).

Caution: this is an actuarial assumption. Do not assume the valuation count equals the PBGC participant count.

Don't want to put words in Andy's mouth, but I think his use of "contractural" was a reference to plan provisions. That is, does the Plan require the purchase of an annuity?

IMHO, a definition that refers to 417e means you must use all 3 segment rates. This is a recipe for confusion and error. I suggest amending the plan to make sure only one rate (maybe the pre-PPA rate) is used.

Can you help by providing a source?

Funding Standard CarryOver Balance If all assets were distributed under a termination, does not that define the end of the final plan year? and the plan no longer exists?

Maybe, but that is (probably) a different question. I've wondered the same thing as the original question, which I restate in my own words: "When a NQ payment is being made to an employee/retiree and the payment is subject to FICA, does the FICA (and FUTA?) taxation change if a portion or survivor benefit is paid to a beneficiary?"

If it were me, I might want to be talking to my attorney before making such suggestion.

Andy, your answer is better than mine. My apologies for thinking the original question was silly. (Perhaps the original questioner should have described his/her relationship to the plan/sponsor/actuary). Possibly, the sponsor asked the actuary to help with something (not having any idea the consequences) and the actuary responded (correctly) that it could be accomplished only by changing the plan year. The result is the actuary is seen as "requesting" a change.

Well, duh! Changing the plan year can only be accomplished via plan amendment. Does the actuary have such authority?

The instructions say "The plan administrator must sign...", and "the employer must sign...". No doubt, DOL regs provide more description of the former, perhaps about the latter. Does Ima's boss care if Ima signs the form? (I suspect your fact set is pretty common.)

Why? Does the plan define the ER contribution as discretionary?

IMHO, the PPA language is clear that your burn as much CB to get the plan to a needed threshold level, but don't burn anything if you can't get there. For example, see IRC 436(f)(3).

Probably, it's mostly a survey of job satisfaction, with factors for compensation, lack of heavy lifting, etc. Don't know if there are any factors for "future prospects".

Ask the "broker" to produce evidence supporting the position? You provide similar evidence (i.e., plan provisions), and see if the broker can justify his/her position.

Discussion here about IRS and SSA letter forwarding programs. http://benefitslink.com/boards/index.php?showtopic=40445

Don't know if it's current, but PA did not.

Don't know if your situation is "sham" or simply "remarry". Some discussion here.