Questions regarding DB valuations

[Guest Doogie61]

With the new PPA funding method, when a plan has been "around a while" you sometimes get a huge disparity between the minimum required and maximum permissible contribution. We have been running our valuations under say the "old school" individual aggregate just to get what we like to call a "suggested contribution" amount. It gets a bit tricky with sole props of course..lol

Just curious as to what others are doing on their vals?

[FAPInJax]

I have been recommending that clients maintain a 'recommended' contribution method (which may be EAN or Individual Aggregate) - something that has a logical basis for funding the projected benefit.

PPA is producing numbers using unit credit and many clients are going to be surprised when their contributions keep jumping every year due to age.

[Lou S.]

We have been giving the PPA min and max (with a warning if this might create 415 payout issues) and a "suggested" amount based on the pre-PPA funding method.

However, we do mostly small plans so 9 out of 10 clients ignore our suggested amount and make the min because they had a bad year or the max because they want the deduction.