AFTAP - Takeover Plan

[actuary_pension]

Logistics of the situation:

- PBGC Plan, S Corp, Involves testing, Plan Eff date is within the last 5 years (for purposes of 436 restrictions)

- 2025 Valuation completed (signed report but no SB) by prior Actuary, BOY Valuation, AFTAP over 100% certified before September 2025

- After takeover, decided to redo the 2025 valuation and valuation date changed to End of Year. No other assumptions changed. Automatic approval for change to end of year due to Revenue Procedure 2017-56 Section 4.01. 

Do I need to re-certify the 2025 AFTAP or can I rely on prior Actuary's AFTAP and use it on the 2025 SB?

To clarify, the 2025 valuation report is expected to be recertified in next few weeks (say 6/15/2026). So, if I cannot rely on prior Actuary, will the AFTAP restrictions apply until certified?

Thanks!

[Calavera]

You will be signing the 2025 SB, so you will need to put the correct AFTAP on your SB, which would be different from the prior actuary's certified AFTAP. The calculation of the AFTAP for EOY valuations is different. I assume your AFTAP will still be over 100%. In this case, I don't think you actually need to issue the re-certified AFTAP, but I would suggest doing it anyway to have clear records.

 

 

[actuary_pension]

Thank you. I recertified the AFTAP using the takeover match numbers and I'll use it on the SB. Right, the recertified AFTAP is very close to the previous Actuary's certified AFTAP.