Projected Unit Credit Funding With Top Heavy Minimums

[Guest merlin]

A plan is currently top heavy. The valuation assumptions include a 4% annual salary scale. The numbers for a specific participant are as follows:

Projected NRB by formula = 2457

Projected t/h ben at NRA = 1690

Accrual service at val date = 1 year

Toal projected accrual service at NRD = 36 years

Should the PUC NC be 2457/36 = 69, or

1690/10 = 169?

Should the PUC AL be 69 or 169?

[SoCalActuary]

What's your decrement model?

If you assume all terminations occur in 10 years, then 169.

If you assume no decrements until NRA, then 69.

[Guest merlin]

Thank you, SoCal. We're assuming no decrements prior to NRA, so 69/69 was my answer. Now I can fight with the software people.