line 24 schedul sb

[Gary]

The instructions state "Generally, if the "Yes" box is checked and the non-prescribed assumptions have been changed in a way that decerases the funding shortfall for the current plan year, approval for such change may be required."

When they use the word "approval" does that mean plan sponsor approval, or IRS approval? My understanding is plan sponsor.

And when they use the phrase "may be required", what is the "may" conditioned upon? When is it required and when is it not required?

Perhaps this is in the regs and I need to revisit them, but some input would be helpful too.

thanks

[Gary]

in looking at the 430 regs it seems that this approval for change in assumtpions may only apply to large plans and approval may be required by the IRS and not plan sponsor.

[david rigby]

Yes, "approval" refers to IRS when discussing actuarial assumptions.

Approval of the plan sponsor has always been a requirement of changing the funding method (for example, an asset smoothing method)