JAY21 Posted July 7, 2006 Posted July 7, 2006 Do both of the House and Senate bills contain provisions to eliminated the whipsaw issue with cash-balance plans ?
Effen Posted July 7, 2006 Posted July 7, 2006 I believe so, but I'm not sure. It all may be for not since from what I here there is a very good possibility that nothing is going to get passed. Milliman Newsletter This article sounds more possitive than what others closer to the action are saying. The DOL may actually be pushing for "no action" since the low interest rates will generate the needed increases in contributions. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted July 10, 2006 Posted July 10, 2006 Does this mean, for example, that the use of a variable rate of 3.95% for PBGC calcs will apply this year??!! I know, that is minor compared to other things, but it is still a complete outrage IMHO when I consider that I have spent 4 hours in the last couple of business days trying to fix problems with a client's mypaa.com account. The PBGC is a bottomless pit.
Effen Posted July 10, 2006 Posted July 10, 2006 That is the way I understand it... 3.95% PBGC premiums, 5.10% RPA calcs, 204(h) notices for everyone! Time to start studying for my CFP exams... The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted July 10, 2006 Posted July 10, 2006 Don't forget those PBGC Participant Notices for the plans that were Fully Funded for the past 15 years. And of course the informal notices explaining why the formal notices are needed and the letter to the client explaining why the informal notices about the formal notices are a good idea, and how the plan has only dropped from 100% funded to 81% funded "temporarily"! But Congress is gonna fix it all one of these Holidays.
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