Annual Funding Notice

[FAPInJax]

I am assisting an actuary whose client wants to file their 5500 now for 2008. This will automatically trigger the Annual Funding Notice filing even though they are a small plan. Does the following appear to be correct:

For 2008 (Schedule SB numbers)

Total plan assets 2b

Carryover balance 13a

Plan liabilities 3d

At-risk 4b

For 2007 / 2006 (Schedule B numbers)

Total plan assets 1b2

Carryover balance 9h

Plan liabilities 1d2a

At-risk N/A

This seems too easy but it seems to provide the answers requested in DOL Bulletin 2009-01

[Andy the Actuary]

Your analysis seems on point.

To what PBGC address will the AFN be sent?

[dmb]

Your analysis seems on point.

To what PBGC address will the AFN be sent?

Speaking of PBGC and the funding notice, Q7 of the FAB 2009-01 states that the end of year liabilities are calculated using the interest rates used per ERISA 4006(a)(3)(E)(iv) which are the standard rates used for calculating liabilities for PbGC variable rate premium. However, there is an option to use the actual Funding Target for the variable rate premium liabilities. If that option is taken, can or should the same liabilities be used for the Funding Notice??

[Guest Chamnix]

Speaking of PBGC and the funding notice, Q7 of the FAB 2009-01 states that the end of year liabilities are calculated using the interest rates used per ERISA 4006(a)(3)(E)(iv) which are the standard rates used for calculating liabilities for PbGC variable rate premium. However, there is an option to use the actual Funding Target for the variable rate premium liabilities. If that option is taken, can or should the same liabilities be used for the Funding Notice??

I don't know the answer to that, but I have an additional question: in general, the number reported as a liability as of December 31, 2008 will not be the same as the number reported as funding target at January 1, 2009 for next year's notice, correct?