the Year 2000 problem and DB plans

[Guest glevins1]

Can anyone provide me with some specific examples of how the Y2K problem might adversely affect a DB plan, assuming an employer's benefit systems are not Year 2000 compliant after 12/31/99?

[Lorraine Dorsa]

I've done Beta testing for the Pentabs DB system with regard to Y2K issues.

Just about everything can go wrong if the system is not compliant.

The most obvious areas to have problems are service and age computations which in turn affect benefit computations and funding, which is results in just about everything going wrong.

Then there are all sorts of not so obvious areas, such as PIA calcs, 415 limits, various interest rates (GATT, PBGC), report printing, etc., etc., etc.

If your system is not Y2K compliant, I would be very hesitant to use it for anything other than a preliminary proposal which I then thoroughly checked by hand.