Schedule A

[Guest ak]

Scenario: In 2005, DB plan buys group annuity contract to purchase half of its liabilities. All deferred benefits. In 2006, there is no activity (i.e., premium paid, benefits paid, etc) with respect to the contract. I think Sch. A information needs to be provided for both years regardless of activity as long as benefits are funded with the contract. Another opinion expressed by another party states that only 2005 requires Sch. A information because that is the year contract was purchased and no information needs to be reported for 2006 because no activity took place. Which position is correct?

[JanetM]

No activity? You mean you had no earnings, fees, or anything. I would continue to file Schedule A. You should be reporting the beginning and ending values of the contract as well as lives covered.

[Guest ak]

No activity? You mean you had no earnings, fees, or anything. I would continue to file Schedule A. You should be reporting the beginning and ending values of the contract as well as lives covered.

I need to clarify one point. The contract is an "allocated" contract for a DB plan.

Snapper

[JanetM]

That doesn't make a difference. Allocated and Unallocated contracts file Schedule A's. Report unallocated totals on Part 2-line 5 and allocated totals on Part 2-line 6.