Valuation Assets

[JBones]

For a plan with a beginning of year valuation that had late quarterly contributions in the prior year, when determining the valuation assets for the current year, can someone confirm that the contributions made for the prior year after the current valuation date are still discounted using only the effective interest rate and no additional discount is applied for the late quarterly interest?

[My 2 cents]

My understanding is as follows:

For purposes of assessing the satisfaction of last year's minimum funding requirement, you would discount the contributions back to the beginning of last year (with interest penalties as necessary).

For purposes of determining the assets as of the beginning of this year, you would discount any receivable amounts back to the beginning of this year using last year's effective interest rate. There would be no adjustment in that calculation to take into account the fact that some or all of the receivable contributions represented late quarterly contributions.

[Effen]

http://benefitslink.com/boards/index.php?s...arterly+penalty

[JBones]

I didn't see that previous post, but I guess everyone seems to agree. Thanks all.