Lexus1

Thank you Mike for the suggestion and I'll make good use of it in the future. Also, Thank you for answering my questions. I think the word actuarial assumption in my questions need to be re-phrased. I was trying to mention the mortality/interest used in the calculation.

Thanks for the suggestion David. FYI: my employer has more than one actuaries and my role is to help the actuaries entering data and preparing the reports for their review. I'm interested to teach myself how to perform DB plan actuarial valuation if possible outside of my work reading materials and joining forums. I'm sure I'll achieve my plan of acquiring the DB Plan valuation one way or the other because I'm determined to do so.

I'm working DB Plan but with very limited knowledge in Defined Benefit Retirement Plan administration. My employer uses Sunguard Relius software and I'm struggling to fully understand the Internal Actuarial Data (IAD) Report for a single owner DB plan. The Benefit formula is 14% of Average compensation X Year of Participation Up 5 The owner attained age was 68 with 1 Year of Participation and 4 years of future participation, and his NRA is 72 The Highest three consecutive years Average compensation is over $260,000 Reviewing the IAD -Accrued Plan Benefit = $2,807, which appears to be calculated using 5% & 1994 GAR Is there any specific reasons why the 5% &1994 assumption used? -The 415 limit = $2,818.71, which appear to be calculated using 5% & 2011 Applicable Is there any specific reason why the 5% & 2011 Applicable assumption used? -Accrued Plan PV = $252,573, which appears to be calculated using 5.5% & 1994 GAR Is there any specific reason why the 5.5% & 1994 GAR assumption used? -415 PV = 256,550F, which appears to be calculated using 5.5% & 1994 GAR Is there any specific reason why the 5.5% & 1994 GAR assumption used? -How should the Minimum Required Contribution (MRC), the Target Normal Cost (TNC), the Funding Target (FT) calculated for this particular case. Finally, I was told we need three PVAB calculated, including PVAB for Funding, PVAB for Testing, and PVAB for GATT. The PVAV for Funding is the one that needs to be used in determining he MRC, TNC & FT. Why? Please explain me the step by step process in getting me understand this DB valuation concept. Thanks! Lexus!