Funding percentages

[FAPInJax]

There are various funding percentages calculated and used for different things under PPA. However, one particular series has raised some questions.

AA Actuarial value of assets

FT Funding target

CB Credit balance

PF Pre-funding balance

AN Annuities

1 FTAP

(AA - CB - PF) / FT

What is this percentage used for??

It appears it may go on the new Schedule B (SB).

It also appears to be the percentage used for the notice to participants? (Interesting when you have a large CB and the numerator is zero - telling the participant there plan is 0% funded)

2 AFTAP

(AA - CB - PF + AN) / FT

This one controls the restrictions under 436

I believe it also controls the use of the credit balance / pre-funding balance against the quarterlies and minimum contribution.

However, there appears to be a special exemption calculation for this (also used for the establishment of a shortfall base??)

(AA / FT) if this percentage is greater than 92 (2008) / 94 / 96 / 100 (2011)

Does this number then appear on the Actuarial Certification (if the exemption is used?)?

The regulations say something like 'for purposes of 436 and this section (but not section 430(d)'. I am not sure what 'this section' refers to (although I believe the reference to 430(d) is referring to the calculation for the use of the credit balance / pre-funding to offset the minimum contribution. Is this latter correct?

Thanks for any and all input.