Election to use PFB

[RLR]

For a 1/1/11 valuation with a PFB, what is the deadline to make a written election to use the PFB toward the MRC for 2011? Last year's funded ratio was greater than 80%.

[Andy the Actuary]

Well, you can use it now. Problem may be that you've missed quarterly contributions. So, suppose election had been made before 4/15/2011, then you would be okay. There is actually an ordering principle in the final regs. that stipulates in what progression credit balance elections apply.

[StormShadow]

The election must be made no later than the last date for making the MRC. If you missed quarterlies, you can still use the PFB but will need to discount with additional 5%. As Andy points out, you will need to be careful of ordering rules to make sure the balance is still available (for example, a deemed election may result in less balance than you thought when you go to make the election to offset MRC).

[RLR]

Thank you - I appreciate these answers.