PBGC male purchase rates

[Gary]

When a Plan defines act equiv for a lump sum based on the PBGC male purchase rates what mortality table are they referring to?

I mean it really isn't specific, if I were to play devil's advocate.

For example PBGC Table 1is considered the healthy male mortality table and is based on the GAM83 table for males. The PBGC table for lump sums is Table 3, which is the UP84 unisex table. That is Table 3 is neither a male or a female table.

The Plan uses the UO84 table with a 1 year set forward as the male table. While I believe this to be true, I am not sure where there is actual documentation supporting this assertion.

Curious to hear any thoughts out there.

Thanks.

[david rigby]

Not sure what is meant, but it could mean the original UP84 unisex table, with a one-year set-forward. In PBGC Reg. 2619.44 are several tables. The first is labeled as "Mortality Table for Healthy Male Participants". As near as I can tell, this is the UP84 table with a 1-year set-forward.

Unless this is a governmental plan, or other plan not covered by IRC 417, I would expect to see some definition that references GATT.

[Gary]

This was in connection with a termination that occurred in the 1990s, that is why PBGC is still used in this case.

You refer to 2619.44. What you say w/r/t this section makes sense, but I thought this section was superceded by 4044 and that it cannot even be found in current books on the code and regulations?

[david rigby]

In my CCH copy of regs and statutes, I have the following commentary at the beginning of several regs:

"Prior to July 1, 1996, PBGC regulations were under Chapter XXVI of Title 29 of the Code of Federal Regulations. Effective July 1, 1996, PBGC regulations were moved to Chapter XL, and were renumbered and reorganized."

Not sure why this was done, but one result was to make the reg numbers conform to the ERISA section numbers.

Reg. 4044 has an Appendix A containing several tables. Table I is labeled "Mortality Table for Healthy Male Participants." This is the 1983 GAM table for males (no set-back or set-forward).

[Larry M]

pax,

I wonder if you would be willing to be the replacement for the online research service I am currently using?

[david rigby]

How much? (I doubt you can afford me.)

[Gary]

Larry

What service do you use? Is it TAG something or other?

gary

[Larry M]

RIA (checkpoint - pensions and benefits), and I'm quite pleased with it. My practice encompasses both areas.

An associate, who is strictly in qualified plans, uses TAG and he is pleased with it.