Effect of new MAP-21

[Belgarath]

Pardon my ignorance, as I'm not a DB person. I'm trying find if there is a relatively straight answer (hah!) to this:

For plan terminations, one would normally use 417 rates, yes? If so, under MAP-21, must you still use 417 rates, or are you allowed to use the "annuity substitution" rates, and therefore possibly reduce the lump-sum payout? I'm under the impression that it is the former rather than the latter.

Thanks!

P.S. - as I look over my question, I think perhaps there is a defference for plan terminations and for normal plan FUNDING. So, for example, when calculating funding for lump sums for a non-terminating plan, you can use annuity substitution rates, even though the lump sum benefit itself does not change? Maybe I'm just confusing the issue more...

[david rigby]

Yes, funding and plan termination are different. The MAP21 rates apply only to funding issues, and have no effect on 417e lump sum values.

[Belgarath]

Thank you!!