415 lump sum limits

[Gary]

The PFEA replaced the 30-year treasury rate with a rate of 5.5% when determining maximum benefits under 415 w/r/t lump sum payouts.

This meant for lump sums with ASDs during the 2004 and 2005 plan years, a rate of 5.5% had to be used when determining 415 limits. However, my understanding has been that this change was only for the plan years 2004 and 2005 and that for plan years beginning in 2006 the rate for lump sums under 415 reverts back to the 30-year treasury rate.

Does everyone agree or does anyone know of legislature that requires continued use of the 5.5% rate?

Thanks.

[mwyatt]

PPA.

[Gary]

MWYATT are you saying that the PPA continues the use of 5.5% for PYB in 2006?

I will be reviewing the PPA in detail.

Thanks.