2009 Instructions For Schedule Sb (Form 5500) Single-Employer Defined Benefit Plan Actuarial Information Page 10

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are determined as the value of assets reported on line 2b
beginning of the plan year and the valuation date (using the
reduced by any funding standard carryover balance and
effective interest rate for the current plan year) before
prefunding balance reported on line 13, columns (a) and (b),
subtracting from the value of assets reported on line 2b.
minus the funding target reported on line 3d, column (2) (but not
However, see Code section 430(f)(4)(B)(ii) and ERISA section
less than zero). If the plan’s valuation date is not the first day of
303(f)(4)(B)(ii) for special rules in the case of a binding
the plan year, adjust the amounts reported on line 13, columns
agreement with the PBGC providing that all or a portion of the
(a) and (b), for interest at the effective interest rate for the
funding standard carryover balance and/or prefunding balance
period between the beginning of the plan year and the valuation
is not available to offset the minimum required contribution for
date, before subtracting those amounts from the value of assets
the plan year.
reported on line 2b.
Shortfall amortization installment — Enter the sum of:
Line 32. Amortization Installments.
1. Any shortfall amortization installments that were
established to amortize shortfall amortization bases established
Line 32a. Shortfall Amortization Bases and Amortization
in prior years, excluding amortization installments for bases that
Installments. Outstanding balance — If the plan’s funding
have been or are deemed to be fully amortized, and
shortfall (determined under Code section 430(c)(4) and ERISA
2. The shortfall amortization installment that corresponds to
section 303(c)(4)) is zero, all amortization bases and related
any new shortfall amortization base established for the current
installments are considered fully amortized. In this case, enter
plan year. This amount is the level amortization payment that
zero. Otherwise, enter the sum of the outstanding balances of
will amortize the new shortfall amortization base over 7 annual
all shortfall amortization bases (including any new shortfall
payments, using the interest rates reported in line 21 for the
amortization base established for the current plan year). The
current plan year.
outstanding balance for each amortization base established in
past years is equal to the present value as of the valuation date
Note. Shortfall amortization installments for a given shortfall
of any remaining amortization installments for each base
amortization base are not re-determined from year to year
(including the amortization installment for the current plan year),
regardless of any changes in interest rates.
using the interest rates reported on line 21.
Line 32b. Waiver Amortization Bases and Amortization
A plan is generally exempt from the requirement to establish
Installments. Outstanding balance — If the plan’s funding
a new shortfall amortization base for the current plan year if the
shortfall (determined under Code section 430(c)(4) and ERISA
funding target reported on line 3d, column (2), is less than or
section 303(c)(4)) is zero, all waiver amortization bases and
equal to the adjusted value of assets. However, if the plan
related installments are considered fully amortized. In this case,
existed during 2007 and was not subject to Code section 412(l)
enter zero. Otherwise, enter the present value as of the
or ERISA section 302(d) for the last plan year beginning before
valuation date of all remaining waiver amortization installments
the plan was subject to ERISA section 303 or Code section 430
(including any installment for the current plan year), using the
(the “pre-effective plan year”), only 94% of the funding target is
interest rates reported on line 21. Do not include any new
taken into account for this calculation for plan years beginning
waiver amortization base established for a waiver of minimum
in 2009.
funding requirements for the current plan year.
For the purpose of determining whether a plan is exempt
Waiver amortization installments — Enter the sum of any
from the requirement to establish a new shortfall amortization
remaining waiver amortization installments that were
base for the current plan year, the adjusted value of assets is
established to amortize any waiver amortization bases for prior
the amount reported on line 2b, reduced by the full value of the
plan years, unless such bases have been or are deemed to be
prefunding balance reported on line 13, column (b) if (and only
fully amortized. Do not include an amortization installment for
if) the plan sponsor has elected to use any portion of the
any new waiver amortization base established for a waiver of
prefunding balance to offset the minimum required contribution
minimum funding requirements for the current plan year.
for the current plan year, as reported on line 35. If the plan’s
Note. If a waiver of minimum funding requirements has been
valuation date is not the first day of the plan year, adjust the
granted for the current plan year, a waiver amortization base is
amount reported in line 13, column (b) for interest for the period
established as of the valuation date for the current plan year
between the beginning of the plan year and the valuation date
equal to the amount of the funding waiver reported in line 33.
(using the effective interest rate for the current plan year) before
The waiver amortization installment that corresponds to any
subtracting it from the value of assets reported on line 2b. The
waiver amortization base established for the current year is the
assets are not reduced by the amount of any funding standard
level amortization payment that will amortize the new waiver
carryover balance for this calculation regardless of whether any
amortization base over 5 annual payments, using the same
portion of the funding standard carryover balance is used to
segment interest rates or rates from the full yield curve reported
offset the minimum required contribution for the plan year.
on line 21 for the current plan year, but with the first payment
If the plan is not exempt from the requirement to establish a
due on the valuation date for the following plan year. The
new shortfall amortization base for the current plan year, the
amount of the waiver amortization base and the waiver
amount of that base is equal to the difference between the
amortization installments for this base are not reported in line
funding shortfall as of the valuation date (determined under
32b for the year in which they are established. Rather, these
Code section 430(c)(4) and ERISA section 303(c)(4)) and the
are included in the entries for line 32b on the Schedule SB for
sum of any outstanding balances of any previously established
the following plan year.
shortfall and waiver amortization bases. The new shortfall
Note. Waiver amortization installments (including the waiver
amortization base may be either greater than or less than zero.
amortization installments of any waiver amortization base
For the purpose of determining the amount of any new
established for the prior plan year) are not re-determined from
shortfall amortization base, the funding shortfall is generally
year to year regardless of any changes in interest rates.
equal to the amount of the funding target reported on line 3d,
Required attachment. If there are any shortfall or waiver
column (2), minus the adjusted value of assets, but not less
amortization bases, include as an attachment a listing of all
than zero. However, if the plan existed during 2007 and was not
bases (other than a base established for a funding waiver for
subject to Code section 412(l) or ERISA section 302(d) for the
the current plan year) showing for each base:
pre-effective plan year, only 94% of the funding target is taken
into account for this calculation for plan years beginning in
1. The type of base (shortfall or waiver),
2009. The adjusted value of assets is generally the amount
2. The present value of any remaining installments
reported on line 2b, reduced by the sum of the funding standard
(including the installment for the current plan year),
carryover balance and the prefunding balance reported on line
3. The valuation date as of which the base was established,
13, columns (a) and (b). If the plan’s valuation date is not the
4. The number of years remaining in the amortization
first day of the plan year, adjust the amounts reported on line
period, and
13, columns (a) and (b), for interest for the period between the
5. The amortization installment.
-64-
Instructions for Schedule SB (Form 5500)

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