Do u have to switch to UC for a frozen DB Plan?

[himt4]

We got a small DB plan using individual aggregate funding. The owner has accrued his full benefit. Last year, before the Plan was frozen, He was just three years from NRD, and his unfunded liability was amortized over those three years. Now that the plan is frozen, it is the actuary's understanding that the IRS expects you to change to Unit Credit funding for frozen plans. In which case we would in effect be amortizing the owners unfunded liability over 10 years instead of two. Doesn't seem to make much sense. The unfunded liability of the others is insignificant.

[david rigby]

Several related prior discussions. See this one first,

http://benefitslink.com/boards/index.php?showtopic=27946

and use the Search feature to find others.

BTW, perhaps using the Unfunded Current Liability to define the upper bound of your contribution range will help.