Annual Funding Notices

[AndyH]

How are people doing them? Manually? How long are they taking? Relus' isn't ready nor are they committing to when they will be. We're proceeding manually at this point. Slooowly.

[Andy the Actuary]

Yup, manually. No relius-ability.

I set up a master tailored to all of my clients. Then, for each client, set up a revised master with yellow high light. Then copy client mast to AFN2008, AFN2009, etc. They're taking about an hour, sometimes two, but generally three! It will be quicker next year unless the format changes, which it undoubtably will.

Take Note: In the good old days, I used to send out 5500s before the SAR software was issued. Now, you must proivide the AFN no later than the date the 5500 is filed.

Please note at the 2009 EA meeting, Ms. Amy Viener of the PBGC indicated that the plan administrator may instruct (e.g., int he cover letter) Plan participants to call the PBGC if they have questions about the information contained in the notice. Obviously, the PBGC will not have information about specific content since the corresponding 5500 may not be filed with the EBSA for 6 months! Here's what I have suggested that clients include in their cover memo to the AFN:

Law requires that Potrezebie, Inc. provide you with the attached notice, which replaces the Summary Annual Report. This notice covers some of the information that will be contained on the 2008 IRS Form 5500 (Annual Report) that will be filed with the US Department of Labor by October 15, 2009. Please contact the Pension Benefit Guarantee Corporation (PBGC) toll-free at (800) 400-7242 for answers to your questions about the meaning of information reported in this notice. The notice is not required to be filed with the PBGC so the PBGC may not be able to answer your questions about specific content.

[AndyH]

Thanks for the feedback. That is much quicker than I'm seeing. But of course enconomics classes taught us that the marginal cost of the first widget can't be the price.

[Effen]

We are doing same as Andy. Excel spreadsheet, merged into a word document. Easily 2+ hours each by the time you gather the information (including funding and investment policy infro from client), input the data, merge it, check the output, write email/letter, and confirm with client that they have it.

[SoCalActuary]

I count my blessings. Our software vendor gave us the product and input forms last week. We are now working on collecting a few last items to put some AFNs into our clients' hands.