Andy the Actuary Posted January 3, 2009 Posted January 3, 2009 Calendar year plan. 2008 AFTAP=91%. 2009 AFTAP= 72%. Discussion bandied about is whether EA should certify 2009 AFTAP early and thus restrict lump sum payments or wait until say September 30. Further, question that has been posed what does the client want. Perhaps, our answer lies in the attached? Pages_from_ea_program_booklet_fall_2008.pdf 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 5, 2009 Posted January 5, 2009 And to clarify that, there is an "s" on the end of participants; letting the first few rats off of the ship, even though they are participants, doesn't count.
tymesup Posted January 5, 2009 Posted January 5, 2009 If it's a healthy employer and the plan is a long-term financial arrangement, then everyone should get everything that's been promised to them. Not paying the first rats means not honoring the commitment made to them. Further, not paying the first rats may make other rats more inclined to get off the ship, making the problem worse. Nope, we still face a dilemma.
SoCalActuary Posted January 5, 2009 Posted January 5, 2009 Remember this: 436 restrictions do not prevent a participant from receiving a pension. They prevent the participant from removing the employer's risk for the pension so they can be taking the risk on themselves. Some participants and some employers want to transfer that risk. Others don't. Be a good consultant, and find out which.
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