Funding Method Change - Frozen Plan

[flosfur]

Need to clarify my understanding:

Under Section 4.02 of Rev Proc. 2002-40, the only approved change is the change to the Unit Credit method.

This means, under the Procedue, a change in assets valuation method and/or Val date to BOY cannot made for a frozen plan!?

[david rigby]

Under 4.01(5), a frozen plan can change its funding method to UC. But read the language carefully.

Section 4.02 deals with terminating plans, not frozen plans.

This should not restrict the change in asset method.

[Blinky the 3-eyed Fish]

See 6.02(5). It describes the restrictions on changing for a frozen plan and of course doesn't dispute anything pax mentions.

[flosfur]

Under 4.01(5), a frozen plan can change its funding method to UC. But read the language carefully.

Section 4.02 deals with terminating plans, not frozen plans.

This should not restrict the change in asset method.

Sorry - I meant to say 4.01 (.02 happens to be the item right after 4.01(5)).

Because the frozen plan is separately mentioned, I concluded that a change to UC method is the only change permissible! If a frozen plan could use any of the other 16 method changes, why would the UC method would be singled out?

But reading on ..

Section 6.02(5) states that the approvals 3.02 thru 3.09 do not apply to a frozen plan, which would imply that the approvals 3.10 thru 3.17 (assets method & val date changes) are permissible.

Given Section 6.02(5), isn't Section 4.01(5) redundunt? Or does 4.01(5) cover a situation not covered in 6.02(5) or elsewhere?

Confusioning