Guest DBPension Posted April 2, 2009 Posted April 2, 2009 Question re quicky estimate of 2009 AFTAP to see if Benefits restrictions will be triggered. Suppose the 2008 AFTAP is 110%, no material COB, Plan liabilities at 1/01/09 are down 5% from 1/01/08, Plan assets as of 1/01/09 are down 45% from 1/01/08. Looks like (based just upon asset & liability changes) the 2009 AFTAP will be below 80% trigger (maybe even below the 60% trigger), BUT .... does asset smoothing (ala funding rules) come into play in the AFTAP calculation to LESSEN the AFTAP drop so that the 2009 AFTAP may still be over the 80% trigger ?
Andy the Actuary Posted April 2, 2009 Posted April 2, 2009 Yes, actuarial value will be 110% of market value. Also, per March 31 IRS release, can change interest rate month/basis so that might get you over a hump. 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 DBPension Posted April 2, 2009 Posted April 2, 2009 Can you point me to the source (better yet a link) to this 3/31 IRS release ?
Andy the Actuary Posted April 2, 2009 Posted April 2, 2009 Can you point me to the source (better yet a link) to this 3/31 IRS release ? http://www.irs.gov/pub/irs-tege/se0309.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.
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