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Showing results for tags 'prefunding balance'.
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Is it reasonable that the Prefunding Balance can jump from $145M to $982M in one year? Previously the balance ranged between $100M to $200M. (That's about 25% of the Total Plan Assets). Is this something to worry about? What might cause it? The data came from my pension annual funding notice. I'm retired now. -
A calendar year plan has $0 Credit Balance and $0 Prefunding Balance. Quarterly contributions are required. The sponsor has standing elections to increase the Prefunding Balance and use it to meet quarterlies and minimum requirements. The sponsor has been timely contributing the quarterly requirements when due. It is now September 18, 2017. The actuary has confirmed that all of the required contributions for the 2016 plan year have been timely made. The April and July quarterlies for the 2017 plan year have also been timely made. The actuary decides that if the April and July 2017 quarterlies are deemed 2016 contributions, then a Prefunding Balance will be automatically created. This Prefunding Balance can then be used to meet the April and July quarterlies. (Assume the excess contributions create sufficient Prefunding Balance to do so.) My question is, is this allowed? When was the Prefunding Balance created? If used to meet the April or July quarterly, didn't it have to exist when the quarterly is due?