WRERA election

[Guest JM123]

Does a plan that was certified to be in critical status last year but which made a WRERA election considered to remain in critical status until the actuary certifies otherwise? Sec 432 indicates that plan emerges from critical status when actuary certifies (essentially) otherwise.

[Effen]

The actuary needs to certify the plan's status each year. This needs to be done within 90 days of the first day of the plan year.

[Guest JM123]

The actuary needs to certify the plan's status each year. This needs to be done within 90 days of the first day of the plan year.

I don't disagree, but is the plan technically in critical status by virtue of prior year certification?

[Brian Haynes]

All of the pension funds I have seen that made the WRERA election in 2009 certified their critical status in 2010. I think the funds take the position that the election to stay out of critical status for 2009 means that they were never in red status for purposes of removing itself from that status in the following years.

[Effen]

I agree. If you were "green" in 2008 and you froze your status for 2009, you are considered "green" for 2009 even though your actual 2009 certification said you would have been critical if you hadn't frozen your status.

If your 2010 status shows you are "green" again, then you are green and you were never really critical.

but is the plan technically in critical status by virtue of prior year certification

No, assuming they froze their status and their 2008 status was not Critical (many funds froze their status even though their status wasn't going to change to avoid updating their funding improvement or rehab plans)