AFTAP between 60 and 80%

[nancy]

If a plan has an AFTAP below 80% is there an exception to the benefit distribution restriction that allows the plan to automtically freeze and be able to make lump sum distributions? The AFTAP is above 60%.

[SoCalActuary]

If a plan has an AFTAP below 80% is there an exception to the benefit distribution restriction that allows the plan to automatically freeze and be able to make lump sum distributions? The AFTAP is above 60%.

If you want a freeze, just do it. If you want an automatic freeze, don't certify the AFTAP until 9+ months.

But the lump sum exception only goes for freezes before September 2005. This does not work from your facts presented above. You have a 50% lump sum problem.