Deemed Burn of Carryover Balance

[nancy]

If my 1/1/2009 AFTAP is above 94% but the FTAP is below 80%, am I required to burn enough of the carryover balance as of 1/1/2009 to get the FTAP to 80% for 430 purposes?

[dmb]

If my 1/1/2009 AFTAP is above 94% but the FTAP is below 80%, am I required to burn enough of the carryover balance as of 1/1/2009 to get the FTAP to 80% for 430 purposes?

No, credit balance is only deemed to be waived if AFTAP could be increased to 80% (or 60% as the case may be). Since your AFTAP is over 80%, no deemed waiver of credit balance is necessary.

[SoCalActuary]

If my 1/1/2009 AFTAP is above 94% but the FTAP is below 80%, am I required to burn enough of the carryover balance as of 1/1/2009 to get the FTAP to 80% for 430 purposes?

Your use of terms is ambiguous here. What is your funding target, actuarial value of assets, COB and PFB?

If Asset / FT (the "raw" funding percent) is above 94%, that is not your AFTAP unless it is also above 100%.

[Andy the Actuary]

If my 1/1/2009 AFTAP is above 94% but the FTAP is below 80%, am I required to burn enough of the carryover balance as of 1/1/2009 to get the FTAP to 80% for 430 purposes?

Your use of terms is ambiguous here. What is your funding target, actuarial value of assets, COB and PFB?

If Asset / FT (the "raw" funding percent) is above 94%, that is not your AFTAP unless it is also above 100%.

Wouldn't it be possible that the transition rule applied through 2010 so that the 2009 AFTAP would be 94%?