Terminated vesteds in cash balance valuation

[Draper55]

End of year valuation for cash balance plan. Document requires 500 hours for a pay credit. Interest is credited through the ASD. For people who left during the year(fully vested), is it reasonable/required to value  them independent of where their distribution is in process. I think I have heard this argued as a requirement for traditional db plans, but not so sure about a cash balance plan. The rule would be if no distribution has been reported, I value them similar to an active life..that is with projected interest to NRA discounted back at the relevant segment rate.  Whether one would generate  benefit statement on this basis is perhaps a separate issue.

[Mike Preston]

You value a term vested at end of year based on actual events through end of year. Generating a benefit statement on fictitious information is never the preferred course.