PPA Funding and insurance

[mwyatt]

Looking through the proposed regs on assets and liabilities, appears that what we exclude from FT is the benefit guaranteed by the insurance solely based upon premiums paid prior to the valuation date (and assuming no further payments). Let's just say you're starting a plain jane DB plan partially funded through whole life insurance. Appears minimum contribution would still just be the TNC with no special provision for the insurance (i.e., side fund would be TNC less premium paid). Assume that 2nd year would be especially underfunded since your CSV would be close to $0.

What I'm getting at: how does insurance funding work in DB plans post PPA? Just saw a 2008 proposal that made no sense to me (loaded with insurance) wherein their 2008 side fund and premiums were approximately double what the TNC would be on their porported end of year accrued benefit. Any consensus out there how insurance will work in '08 and beyond?

[FAPInJax]

My understanding is that the funding for the death benefit throws everything into the funding target. You must value an ancillary death cost (one year term cost method is no longer permitted) and use the envelope funding method.