Funding a Cash Balance Plan

[Guest pension222]

I have never been involved with a cash balance plan but understand the concept.

My question has to do with how the annual contribution is calculated.

Is one funding method favored over another? I can see how unit credit would make sense because one would fund for the current accrual each year. I think I could also make a case for individual aggregate, especially for a small plan.

In order to determine the PVB for a participant, does one take the current cash balance account and project with an assumed interest rate to NRA and project the current contribution rate (with a salary scale?) also to NRA, sum the two, convert to an annuity (under funding assumptions) and then discount to current age?

In order to calculate the EAN Normal Cost, do you take the current compensation, project back to entry age using a salary scale and then go forward (and then backward) to get the EAN PVB?