PBGC Variable Rate Premium exemption

[Guest HaroldA]

In order to qualify for exemption from the PBGC VRP under the "Fully funded plan with fewer than 500 participants", what are the requirements for calculating the vested benefits?

It seems that you have to use the Required Interest Rate, but what mortality table is required (if any)?

Can you use the decrements that are used in the actuarial assumptions for plan funding purposes? Or, is this an interest only calculation?

[david rigby]

PBGC Instructions: http://www.pbgc.gov/plan_admin/forms/PPP20...nstructions.pdf

Don't overlook the discussion of Technical Update 00-4 on page 23.

[SoCalActuary]

http://www.pbgc.gov/laws/lawsregs/code/CFR4006R.HTM

This is the relevant instruction on actuarial assumptions, namely that the decrement model is consistent with the RPA FFL calculations in 412(l).