Guest RBlaine Posted January 2, 2009 Posted January 2, 2009 What is the Effective Rate for a new plan with $0 FT? I thought I had read a thread regarding this, but it may have been somewhere else.
Andy the Actuary Posted January 2, 2009 Posted January 2, 2009 What is the Effective Rate for a new plan with $0 FT?I thought I had read a thread regarding this, but it may have been somewhere else. Another pot-hole. A vote for using the TNC as a proxy. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Guest RBlaine Posted January 2, 2009 Posted January 2, 2009 What is the Effective Rate for a new plan with $0 FT?I thought I had read a thread regarding this, but it may have been somewhere else. Another pot-hole. A vote for using the TNC as a proxy. That gets my vote, too.
mwyatt Posted January 2, 2009 Posted January 2, 2009 Asked Harlan that question last spring at the EA Meeting (the cute answer of 0% EIR because FT was $0 circulating around didn't make sense, plus if I factor correctly, any rate times $0 is still $0). He seconded the opinion of basing on TNC in that situation for the first year.
Andy the Actuary Posted January 2, 2009 Posted January 2, 2009 Asked Harlan that question last spring Dean Wormer never would have spoken so colloquially about one of the dreaded Deltas! The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
mwyatt Posted January 3, 2009 Posted January 3, 2009 When presented with illogical results, even IRS/Treasury will concede the sensible (sometimes).
david rigby Posted January 3, 2009 Posted January 3, 2009 When presented with illogical results, even IRS/Treasury will concede the sensible (sometimes). Well, sometimes, they are the cause of the illogic. (Of course, in this regard, no one measures up to Congress.) I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
tymesup Posted January 5, 2009 Posted January 5, 2009 There's a thread at COPA, they don't know anything official, either. Holland supposedly answered this at the COPA conference - use the Target Normal Cost. I don't see it in the 12/31/07 proposed regs on Measurement of Assets and Liabilities.
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