david rigby

Just asking. Are these the same thing? That is, when one partner leaves, does that automatically dissolve the partnership?

Data as of 30-AUG-13 (Friday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 4.49 4.49 Aa 4.47 4.67 4.57 A 4.67 4.76 4.72 Baa 5.17 5.50 5.34 Avg 4.77 4.86 4.82 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.11 Medium-Term (5-10 yrs) 2.20 Long-Term (10+ yrs) 3.39

Exactly. Any actuary could speculate about the meaning, but the first solution should be to ask the other actuary. BTW, that "description" seems very odd to this actuary.

Presumably this means "the plan sponsor acquired..." Presumably "acquired" refers to "...purchased the entire ownership of..." and does not refer to "... purchased the assets of..." If otherwise, please specify.

I think Effen is correct, but there may be two other issues: - what does the plan say (maybe nothing, maybe not), and - what is the historical precedent (if any).

I think either of these answers is reasonable. Most importantly, it should be part of the asset valuation method, and should be clearly documented.

Prospectively, not retroactively.

Yes, but nothing in the post indicated that such restriction applied.

A deemed burn is associated with a 436 restriction. No restriction has been identified.

As far as I can tell, the facts in the OP do not require a burn.

How do you know there is a deemed burn?

This statement should not be interpreted that the plan will follow the instructions contained in a will. Post #2 above is the central advice.

No doubt, your attorney will review several existing service contracts to make sure there is no "trigger" related to the sale.

Don't forget the different accrual minimums in 415: the 415 dollar limitation accrues over (minimum 10) years of participation, while the 100% of pay limitation accrues of (minimum 10) years of service. Does this affect your question about NC?

Sounds like the "freeze" does not include any increase in the 415 limit. Andy is correct: confirm first that this is what the plan provisions actually provide.

Is this a one-person plan, esp w/ any excess assets? If so, amend to unfreeze?

In addition to possible amendment of the order, don't overlook the possible need for amendment of the plan.

Any room to increase the benefit to absorb the excess? w/r/t expenses, you may be able to use excess for paying current year expenses, but it might be problematic to go back to prior years. But ask the plan's attorney. If all else fails, I'm willing to be a plan participant to help you use up the excess.

http://fuguerre.wordpress.com/2006/05/23/involuntary-transfer-of-prisoners-pension-benefits-violates-anti-alienation-rules/

Don't forget that you might wear several hats. If the plan does not have the payout language you anticipate, an amendment may be possible. However, it is not usually the Trustee who executes an amendment.

ERISA 511 uses the word "fined". Thus, it goes to the "guv'mint".

See "COLA Increases Table" at this link: http://www.irs.gov/Retirement-Plans/COLA-Increases-for-Dollar-Limitations-on-Benefits-and-Contributions

The "Response" above indicates the use of the ER benefit and an immediate LS factor. But the Regulation cited does not mention ER, only NR. A bit confusing. So far, I have no other cites.

This might help. Gray Book 2006-33 Other DB Plan Issues: Early Retirement Benefits and Minimum Lump Sum Requirements A qualified defined benefit plan provides lump sum benefits (non-small-amount). For employees eligible for early retirement, the plan states that the lump sum benefit is the larger of: (i) The present value of the immediate annuity commencing at the participant’s early retirement date calculated using the plan’s general basis for actuarial equivalence -- the applicable mortality table and 7%, and (ii) The present value of the participant’s deferred annuity commencing at normal retirement age using the applicable mortality table and the applicable interest rate. Does this plan meet the minimum lump sum requirements of ERISA and the Internal Revenue Code? RESPONSE No. Under regulation §1.417(e)-1(d)(1), the applicable interest rate and mortality table must be used to determine the minimum value of any benefit that is valued. Thus, a third value would need to be considered in this scenario – the present value of the early retirement benefit using the applicable interest rate and applicable mortality table.

Data as of 31-JUL-13 (Wednesday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 4.38 4.38 Aa 4.38 4.51 4.45 A 4.61 4.68 4.65 Baa 5.16 5.40 5.28 Avg 4.72 4.74 4.73 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.91 Medium-Term (5-10 yrs) 1.95 Long-Term (10+ yrs) 3.28