last day of plan year valuation date

[Gary]

I was reviewing my first end of plan year valuation date valuation and Q 19:110.1 of the defined benefit answer book states that for a valuation date that is not the first day of the plan year the segment rates must be based on the month that contains the valuation date. So for example if a valuation date is 12/31/2010 then the December 2010 segment rates must be used.

Is that correct?

There is no cite for this position, presumably can be found in the regs.

Thanks.

[david rigby]

See IRS Reg. 1.430(h)(2)-1, especially subsection (b)(5).

From reg published in federal register 10/15/2009 .

[SoCalActuary]

I was reviewing my first end of plan year valuation date valuation and Q 19:110.1 of the defined benefit answer book states that for a valuation date that is not the first day of the plan year the segment rates must be based on the month that contains the valuation date. So for example if a valuation date is 12/31/2010 then the December 2010 segment rates must be used.

Is that correct?

There is no cite for this position, presumably can be found in the regs.

Thanks.

You actually have five different choices for the segment rates, the month of the val and each of the prior four months.

Further, existing plans under PPA could also choose five transitional sets. If you use the full yield curve, it has two variations, yearly and semi-annually. But the 2009 year also had a special set of rules because of the instability of the interest rate market in late 2008.