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Measuring UVBs for Variable-Rate Premiums: The Alternative vs. Standard Method Election Due October 15, 2022
October Three Consulting Link to more items from this source
Sept. 1, 2022

"Defined benefit plan sponsors that [1] are currently using the alternative (24-month average) method to determine unfunded vested benefits (UVBs) for purposes of calculating [PBGC] variable-rate premiums, and who [2] have the ability to elect to switch to the standard (spot-rate) method, may want to consider electing to switch to the standard method for 2022 ... While that election will generally not have a significant effect on 2022 variable-rate premiums, it is likely that it will reduce 2023 premiums significantly. And there are some 'pros and cons' to making that election this year."

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