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Schedule B - Line 2c - What is Implication if < 70%


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Guest HarveyC
Posted

Schedule B, line 2c, requires an entry of the percentage if market value assets divided by RPA current liability is less than 70%. What's the implication of this, ie, what is it used for? Is it applicable to multiemployer plans?

thx

Posted

See ERISA section 103(d)(11)

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Guest HarveyC
Posted

Thanks, Pax, but that section just repeats the instructions in the Sch B to indicate the percentage in the event such is less than 70%. What I'm curious to know is what are the implications if an entry is made (ie if the percentage is less than 70%). In other words, what, if anything, does that trigger? What is it used for other than perhaps a flag that the plan is not very well funded? Also, does this in any way tie into the AFC so that this does not apply to multiemployer plans?

thx

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