John314 Posted March 1, 2018 Posted March 1, 2018 Do we have any guidance on how to allocate PPA funding results following a non de-minimis spin off? Specifically, how do we handle shortfall amortization bases, credit balance, and smoothed assets? If we are still operating without guidance, can you offer any suggestions on what you have done/seen? If it is helpful, here are details of my specific situation. Plan spun out a non de minimis portion of participants at 12/31/2017 to a new plan as a result of a change in controlled group. Assets have been allocated and split as of 1/1/2018. The plan is over 100% funded on a PPA funding relief basis (but wasn't on a 4044 PVAB basis), smooths assets and has FSCB and PFB.
david rigby Posted March 1, 2018 Posted March 1, 2018 Do you have access to the Gray Book? There are several post-PPA Q&As related to "spin-off". For example, 2012-12, attached. In addition, see IRS §1.430(g)-1(c). Might be other references. 2012_Gray_Book_QA2012.12.pdf I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Calavera Posted March 1, 2018 Posted March 1, 2018 I am not aware of any official guidance. Hope this will help: https://www.actuary.org/files/publications/PC_PPAIssues_FINAL.pdf
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