Using prefunding balance for minimum funding contribution (MRC)

[Jakyasar]

Have not dealt with this 10+ years so memory not good. Hopefully some DB gurus out there are still using/remembering.

May be looking into taking over plan a db plan which has a good amount of prefunding balance. The sponsor wants to use portion of it for MRC for 2025.

I do not see an election signed by 12/31/2025 - are they late of they have till 9/15/2026 to make the election?

Does FTAP need to be over 80% or 100%?

Does prior year funding % need to be over 80% or 100%? I recall being 80%+

Thank you for the reminder before I decide what to do.

[Jakyasar]

Any takers?

[Calavera]

2024 funded ratio (Asset - PFB) / TL should be 80% or higher in order to use the PFB for 2025 contributions. They have time until 9/15/2026 to make an election.