cash balance plan

[thepensionmaven]

Need help calculating contribution for second year of plan.

[Effen]

Call your actuary.

[AndyH]

Call your actuary.

Effen, I think it is becoming more apparent that the qualified group is much smaller than any actuary. Not even all actuaries who write Answer Books about such topics have the subject mastered, it would seem. And, as you know, cash balance plans are not part of the current EA education program either.

[Effen]

I agree, maybe I should of said, ask an actuary who knows what they are doing.

It is a little difficult to respond to "Need help calculating contribution for second year of plan." How should I (we) respond to someone who is obviously doing cash balance work when they probably shouldn't be. If they don't know where to start, there isn't much we can do for them here in cyberspace. Hopefully, somewhere in their organization, they have someone who knows, I was assuming this person would be an actuary and therefore, they need to seek help from that person.

Here are a few more possible responses:

- Don't we all

- How did you do the first year?

- Didn't your computer give you the answer like it did in the first year?

- Try doing a little research

- Send the work to me and I will be glad to take care of it for you

[AndyH]

I like the alternative responses

My point was actually the opposite, that the universe of people experienced in and knowledgeable about cash balance work is a small subset of those who can sign Schedule B's. We shall see more and more errors in this type of work with takeovers as the number of these plans expand.

So, referring our friend to an actuary may be insufficient. Maybe the actuary needs help also-it could be a takeover. I've posted many questions here on behalf of others, including actuaries.

p.s. I have interviewed or screened a lot of experienced actuaries in the last 2 years or so and a very small percentage claim any knowledge of or experience with cash balance plans.

[Effen]

Although it is usually at the clients expense, one persons crappy cash balance work is often money in my pocket. Sort of like the old Fran commercial, you can pay me now, or pay me later. If you want to go with the person who is charging $100/ Schedule B ... good luck. Maybe I'll see you on the other side.

I agree, lots of people doing lots of bad cash balance work... It's almost getting as bad as the 401(k) world...

[david rigby]

Better than "call" or "ask", how about "hire an actuary", especially one who is experienced in your concern.