Technical Corrections Bill

[Guest RMPension]

As I understand it now, the Shortfall Base established is the difference between the assets and the "Transitional" Funding Target not the total Funding Target. Is this retroactive to 1/1/08? In other words, do I now have to redo all my underfunded 2008 valuations?

[Andy the Actuary]

If HR 7327 is signed as is, then "yes." The bill indicates that the "provision is effective as if included in the Act," where Act refers to PPA. As of this moment, not yet signed into law.

[JAY21]

Different question, but was it decided the technical correction's bill suspension of minimum distributions for 2009 doe NOT apply to DB plans ? I thought I saw that post here somewhere.

[Guest RBlaine]

Different question, but was it decided the technical correction's bill suspension of minimum distributions for 2009 doe NOT apply to DB plans ? I thought I saw that post here somewhere.

that is correct.

[chc93]

Different question, but was it decided the technical correction's bill suspension of minimum distributions for 2009 doe NOT apply to DB plans ? I thought I saw that post here somewhere.

that is correct.

Does the plan need to be amended for the 2009 calendar year to suspend minimum distributions? Or can we simply rely on the law and ignore the plan provisions.

[Guest mjb]

If HR 7327 is signed as is, then "yes." The bill indicates that the "provision is effective as if included in the Act," where Act refers to PPA. As of this moment, not yet signed into law.

it was signed today.

[Andy the Actuary]

If HR 7327 is signed as is, then "yes." The bill indicates that the "provision is effective as if included in the Act," where Act refers to PPA. As of this moment, not yet signed into law.

it was signed today.

Thank you. Here's is the White House Reference for those from Missouri:

http://www.whitehouse.gov/news/releases/20...20081223-2.html

[AndyH]

Different question, but was it decided the technical correction's bill suspension of minimum distributions for 2009 doe NOT apply to DB plans ? I thought I saw that post here somewhere.

ASPPA confirmed their ASAP was errant/unclear on his point because it described "qualified plans' and did not note that it did not apply to DB plans.

[tymesup]

As I understand it now, the Shortfall Base established is the difference between the assets and the "Transitional" Funding Target not the total Funding Target. Is this retroactive to 1/1/08? In other words, do I now have to redo all my underfunded 2008 valuations?

I was under the impression this wasn't necessary, but can't find it in WRERA.

However, if you don't redo, is any harm done? Your minimum will be higher than necessary, your Carryover and Prefunding Balances are lower than necessary, but who has any incentive to care? I suppose you can get into trouble with the combined plan limit if you need the minimum to be deductible.

I guess we're fortunate that we're so far behind that we won't have to redo too many valuations.