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such change (see section 103(d) of ERISA). Label the summary

Line 6e. Expense Loading. If there is no expense loading,

“Schedule MB, line 6 – Summary of Plan Provisions.”

enter “0”. For instance, there would be no expense loading

attributable to investments if the rate of investment return on

Also, include any other information needed to disclose the

assets is adjusted to take investment expenses into account. If

actuarial position of the plan fully and fairly.

there is a single expense loading not separately identified as

Line 6a. Current Liability Interest Rate. Enter the interest

pre-retirement or post-retirement, enter it under “Pre-retirement”

rate used to determine current liability. The interest rate used

and leave “Post-retirement” blank. Where expenses are

must be in accordance with the guidelines issued by the IRS

assumed other than as a percentage of plan costs or liabilities,

and, pursuant to PPA, must not be more than 5 percent above

enter the assumed pre-retirement expense as a percentage of

and must not be more than 10 percent below the weighted

the plan’s normal cost, and enter the post-retirement expense

average of the rates of interest, as set forth by the Treasury

as a percentage of plan liabilities. If the normal cost of the plan

Department, on 30-year Treasury securities during the 4-year

is zero, enter the assumed pre-retirement expense as a

period ending on the last day before the beginning of the 2009

percentage of the sum of lines 9c(1), 9c(2), and 9c(3), minus

plan year. Enter the rate to the nearest .01 percent.

line 9h. Enter rates to the nearest .1 percent.

Line 6b. Check “Yes,” if the rates in the contract were used

Line 6f. Salary Scale. If a uniform level annual rate of salary

(e.g., purchase rates at retirement).

increase is used, enter that annual rate. Otherwise, enter the

Line 6c. Mortality Table. The mortality table published in

level annual rate of salary increase that is equivalent to the

section 1.431(c)(6)-1 of the Treasury Regulations must be used

rate(s) of salary increase used. Enter the annual rate as a

in the calculation of current liability for non-disabled lives. Enter

percentage to the nearest .01 percent, used for a participant

the mortality table code for non-disabled lives used for valuation

from age 25 to assumed retirement age. If the plan’s benefit

purposes as follows:

formula is not related to compensation, leave line 6f blank.

Mortality Table

Code

Line 6g. Estimated Investment Return – Actuarial Value.

Enter the estimated rate of return on the actuarial value of plan

1951 Group Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

assets for the 1-year period ending on the valuation date. For

this purpose, the rate of return is determined by using the

1971 Group Annuity Mortality (G.A.M.) . . . . . . . . . . . . . .

2

formula 2I/(A + B – I), where I is the dollar amount of the

1971 Individual Annuity Mortality (I.A.M.) . . . . . . . . . . . . .

3

investment return under the asset valuation method used for

the plan, A is the actuarial value of the assets one year ago,

UP-1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

and B is the actuarial value of the assets on the current

1983 I.A.M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

valuation date. Enter rates to the nearest .1 percent. If entering

a negative number, enter a minus sign (“ – ”) to the left of the

1983 G.A.M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

number.

1983 G.A.M. (solely per Rev. Rul. 95-28) . . . . . . . . . . . . .

7

Note. Use the above formula even if the actuary feels that the

UP-1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

result of using the formula does not represent the true

Mortality table applicable to current plan year under section

estimated rate of return on the actuarial value of plan assets for

1.431(c)(6)-1 of the Income Tax Regulations . . . . . . . . . .

9

the 1-year period ending on the valuation date. The actuary

may attach a statement showing both the actuary’s estimate of

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A

the rate of return and the actuary’s calculations of that rate, and

None . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0

label the statement “Schedule MB, line 6g – Estimated Rate

of Investment Return (Actuarial Value).”

Code 6 includes all sex-distinct versions of the 1983 G.A.M.

Line 6h. Estimated Investment Return – Current (Market)

table other than the table published in Rev. Rul. 95-28, 1995-1

Value. Enter the estimated rate of return on the current value

C.B. 74. Thus, for example, Code 6 also would include the 1983

of plan assets for the 1-year period ending on the valuation

G.A.M. male-only table used for males, where the 1983 G.A.M.

date. (The current value is the same as the fair market value —

male-only table with a 6-year setback is used for females. Code

see line 1b(1) instructions.) For this purpose, the rate of return

A includes mortality tables other than those listed in Codes 1

is determined by using the formula 2I/(A + B – I), where I is the

through 9, including any unisex version of the 1983 G.A.M.

dollar amount of the investment return, A is the current value of

table.

the assets one year ago, and B is the current value of the

Where an indicated table consists of separate tables for

assets on the current valuation date. Enter rates to the nearest

males and females, add F to the female table (e.g., 1F). When

.1 percent. If entering a negative number, enter a minus sign

a projection is used with a table, follow the code with “P” and

(“ – ”) to the left of the number.

the year of projection (omit the year if the projection is unrelated

to a single calendar year); the identity of the projection scale

Note. Use the above formula even if the actuary feels that the

should be omitted. When an age setback or set forward is used,

result of using the formula does not represent the true

indicate with “ – ” or “+” and the number of years. For example, if

estimated rate of return on the current value of plan assets for

for females the 1951 Group Annuity Table with Projection C to

the 1-year period ending on the valuation date. The actuary

1971 is used with a 5-year setback, enter “1P71-5.” If the table

may attach a statement showing both the actuary’s estimate of

is not one of those listed, enter “A” with no further notation. If

the rate of return and the actuary’s calculations of that rate, and

the valuation assumes a maturity value to provide the

label the statement “Schedule MB, line 6h – Estimated Rate

post-retirement income without separately identifying the

of Investment Return (Current Value).”

mortality, interest and expense elements, enter on line 6c,

under “Post-retirement,” the value of $1.00 of monthly pension

Line 7. New Amortization Bases Established. List all new

beginning at the plan’s weighted average retirement age,

amortization bases established in the current plan year (before

assuming the normal form of annuity for an unmarried person.

the combining of bases, if bases were combined). Use the

In such a case, leave lines 6d and 6e blank.

following table to indicate the type of base established, and

enter the appropriate code under “Type of base.” List

Line 6d. Valuation Liability Interest Rate. Enter the

amortization bases and charges and/or credits as of the

assumption as to the expected interest rate (investment return)

valuation date. Bases that are considered fully amortized

used to determine all the calculated values except for current

because there is a credit for the plan year on line 9j(3) should

liability. If the assumed rate varies with the year, enter the

be listed. If entering a negative number, enter a minus sign

weighted average of the assumed rate for 20 years following

(“ – ”) to the left of the number.

the valuation date. Enter rates to the nearest .01 percent.

-48-

Instructions for Schedule MB (Form 5500)

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