PBGC Variable premium asset date

[AndyH]

Assume that a PBGC premium calc is being done for 7/1/2004. Assume the asset valuation method for funding was market value but is switched to a smoothing method 7/1/2004 that amounts to 120% of market value. The premium instructions seen to call for the use of 6/30/2004 (market) assets, but would allow the use of 7/1/2004 provided that the actuary adjusts for the difference.

In this manner, an asset method change cannot be used to reduce PBGC premiums in the first year. Is this right?

But this all presumes that the change is effective 7/1/2004. If time permits, I suppose the change could be made effective to the prior valuation date, without phase in, and then utilized currently to reduce the premium, right?