Loan & Distribution Specialist AimPoint Pension
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Regional Vice President of Sales The Retirement Plan Company
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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AimPoint Pension
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Compass
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Bates & Company, Inc.
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Think Your Plan Is Well Funded? You May Be in for a Surprise
Vanguard [Guidance Overview] Feb. 4, 2015
"HATFA rates, as with those under the expired MAP-21, apply to funding, and not to lump-sum payments or annuity purchases.... For lump-sum payouts, rates similar to market corporate bond rates are required. For group annuity purchases, rates are lower still because the annuity provider (generally an insurance company) is taking on risk and administration of the benefits.... [A] HATFA calculation will show a pretty strong funding level. But when it comes time to act on it, such as paying lump sums or terminating a plan, you may be in for a surprise."
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