Schedule SB, line 6 b - plan related expenses

Having a discussion about this.

What do you consider a plan related expense?

Thank you

See 1.430(d)-1(b)(1)(iii)(B) for a definition. (Just kidding! 🙃)

I would say that plan-related expenses is anything that is paid by the trust that is not benefits (or the purchase of contracts to provide benefits). If it's an end of year valuation, you can use the actual amount of plan-related expenses paid during the year. For a beginning of year val, you would have to use the amount of plan-related expenses that are expected to be paid during the year.

Just to be clear, plan-related expenses have always been part of the target normal cost that is reported on the schedule SB. This year is just the first time they are asking you to break out how much of the target normal cost is expenses vs expected increases in benefits.

When there are plan-related expenses included in the target normal cost, we have always disclosed it in the actuarial assumptions attachment to the schedule SB.

Hi

Yeah, another reserved section that does a lot for pensions.

I always (has only a few in the past many years) used expenses for fees paid to pay for DoL permitted expenses like document fees, termination fees.

One thing escaping me is the management fees directly deducted from the account by the brokers/investment companies (brain fried so cannot think today).

Thank you

I would usually treat management fees as part of the overall earnings and not a separate expense.

Agreed and thank you for your input.

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