Presumptive method

[Guest Salvador A Mander]

Does anyone have a very general sense for how variable a long-term employer's withdrawal liability is from year to year where the plan uses the presumptive method? I know it's the least variable of the methods for calculating withdrawal liabilility but wanted to get a more tangible understanding of how it compares. Assuming typical investment experience, what kind of variability can be expected - 10%, 50%? I realize there are many factors, but if anyone has clients who have been in a plan for at least 5 years and the plan uses the presumptive method, I'd appreciate any info about the w/d liab variability.

Anyone know where I might find some examples of calculations?

[Bill Ecklund]

Does anyone have a very general sense for how variable a long-term employer's withdrawal liability is from year to year where the plan uses the presumptive method? I know it's the least variable of the methods for calculating withdrawal liabilility but wanted to get a more tangible understanding of how it compares. Assuming typical investment experience, what kind of variability can be expected - 10%, 50%? I realize there are many factors, but if anyone has clients who have been in a plan for at least 5 years and the plan uses the presumptive method, I'd appreciate any info about the w/d liab variability.

Anyone know where I might find some examples of calculations?

Go to the website of the Sheet Metal Workers National Pension Fund: http://www.smwnpf.org/ They have the presumptive method formula for the calculation of withdrawal liabiliy for their plan on the website. You can create an excel spreadsheet and play around with the variables.

[Guest Salvador A Mander]

Does anyone have a very general sense for how variable a long-term employer's withdrawal liability is from year to year where the plan uses the presumptive method? I know it's the least variable of the methods for calculating withdrawal liabilility but wanted to get a more tangible understanding of how it compares. Assuming typical investment experience, what kind of variability can be expected - 10%, 50%? I realize there are many factors, but if anyone has clients who have been in a plan for at least 5 years and the plan uses the presumptive method, I'd appreciate any info about the w/d liab variability.

Anyone know where I might find some examples of calculations?

Go to the website of the Sheet Metal Workers National Pension Fund: http://www.smwnpf.org/ They have the presumptive method formula for the calculation of withdrawal liabiliy for their plan on the website. You can create an excel spreadsheet and play around with the variables.

That is exactly what I needed. Thank you!