Funding Target, Target Normal Cost, and AFTAP for Plan with End of Year Valuation Date

[Pension RC]

For a plan with an end of year valuation date, would the:

1) funding target be end of year present value of the BOY liability?

2) target normal cost be the end of year present value of the accrual during the year?

3) AFTAP include the funding target and the target normal cost in the denominator?

I saw an SB that included the funding target and the target normal cost in the denominator for the AFTAP, but not for the FTAP. Is this a mistake?

Any help would be appreciated!

[Calavera]

I believe it is correct and in accordance with the Sch SB instruction. Note that for the AFTAP the Asset in nominator should be increased by contributions for the current plan year. See the following for more details:

http://www.ccactuaries.org/opportunities/ea2013/onsite/302.pdf

[Hojo]

I don't think that there are regulations for EOY valuations reagrding this yet, but all of the examples that I have seen so far use

FT + TNC = Liability

AVA + Cont discounted for interest - Balances using actual ROR = Assets

AFTAP = Asset/Liability

FTAP = (AVA - Balances using EIR)/FT

[Pension RC]

Thanks!!