2009 Instructions For Schedule Sb (Form 5500) Single-Employer Defined Benefit Plan Actuarial Information Page 5

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increased by the aggregate amount of purchases of annuities
Show only contributions actually made to the plan by the
for employees other than highly compensated employees (as
date Schedule SB is signed. Do not adjust contributions to
defined in Code section 414(q)) which were made by the plan
reflect interest.
during the preceding two plan years.
Certain employer contributions must be made in quarterly
See Code section 436(j)(3) and ERISA section 206(g)(9)(C)
installments. See ERISA section 303(j) and Code section
for rules regarding circumstances in which the actuarial value of
430(j). Contributions made to meet the liquidity requirement of
plan assets is not reduced by the funding standard carryover
ERISA section 303(j)(4) and Code section 430(j)(4) should be
balance and prefunding balance for certain fully-funded plans
reported. Include contributions made to avoid benefit
when determining the AFTAP. Note that this special rule applies
restrictions under ERISA section 206(g) and Code section 436.
only to the calculation of the AFTAP and not to the FTAP
Add the amounts in both columns 18(b) and 18(c) separately
reported in line 14.
and enter each result in the corresponding column on the total
Report the final certified AFTAP for the plan year, reflecting
line. All contributions except those made to avoid benefit
any adjustments pertaining to the plan year subsequent to the
restrictions under ERISA section 206(g) and Code section 436
valuation. The AFTAP reported on line 15 must reflect the final
must be credited toward minimum funding requirements for a
certified AFTAP for the current plan year, even if the plan
particular plan year.
administrator elects to apply the limitation on benefit accruals
Line 19. Discounted Employer Contributions. Employer
under Code section 436(e) and ERISA section 206(g)(4) based
contributions reported in line 18 that were made on a date other
on the 2008 AFTAP as permitted under section 203 of WRERA.
than the valuation date must be adjusted to reflect interest for
the time period between the valuation date for the plan year to
For plans with valuation dates other than the first day of the
which the contribution is allocated and the date the contribution
plan year, report the AFTAP that is the final certified AFTAP
was made. In general, adjust each contribution using the
based on the valuation results for the current plan year at the
effective interest rate for the plan year to which the contribution
time that the Schedule SB is filed (reflecting contributions for
is allocated.
the current plan year and reflecting other adjustments as
described in applicable guidance), even if that AFTAP is not
Allocate the interest-adjusted employer contributions to lines
used to apply the restrictions under Code section 436 and
19a, 19b, and 19c to report the purpose for which they were
ERISA section 206(g) until the following plan year.
made (as described below).
Special rules for airlines using 10-year amortization
Attach a schedule showing the dates and amounts of
period under section 402(a)(2) of PPA. Section 402(a)(2) of
individual contributions, the year to which the contributions (or
PPA (as amended) states that for plans electing the 10-year
the portion of individual contributions) are applied, the
funding amortization period, the funding target during that
applicable effective interest rate (including increased rate for
period is determined using an interest rate of 8.25% rather than
late quarterly installments, where applicable), and the
the interest rates or segment rates calculated on the basis of
interest-adjusted contribution. It is not necessary to include
the corporate bond yield curve. Report the AFTAP for these
interest-adjusted contributions allocated toward the minimum
plans based on the funding target determined using the special
required contribution for the current year (reported in line 19c)
8.25% interest rate.
in this schedule, unless any of those contributions represent
Line 16. Prior Year’s Funding Percentage for Purposes of
late quarterly installments. However, if any of the contributions
Determining Whether Carryover/Prefunding Balances May
reported in line 19c represent late quarterly installments,
Be Used To Offset Current Year’s Funding Requirement.
include all contributions reported in line 19c on this schedule.
Under ERISA section 303(f)(3) and Code section 430(f)(3), the
Label the attachment “Schedule SB, line 19 – Discounted
funding standard carryover balance and prefunding balance
Employer Contributions.”
may not be applied toward minimum contribution requirements
Special note for small plans with valuation dates after
unless the ratio of plan assets for the preceding plan year to the
the beginning of the plan year. If the valuation date is after
funding target for the preceding plan year (as described in
the beginning of the plan year and contributions for the current
ERISA section 303(f)(3)(C) and Code section 430(f)(3)(C)) is
year were made during the plan year but before the valuation
80% or more.
date, such contributions are increased with interest to the
valuation date using the effective interest rate for the current
Enter the applicable percentage as described below,
plan year. These contributions and the interest calculated as
truncated at .01% (e.g., report 81.239% as 81.23%). In general,
described in the preceding sentence are excluded from the
the percentage is the ratio that the prior-year actuarial value of
value of assets reported in lines 2a and 2b.
plan assets (reduced by the amount of any prefunding balance,
but not the funding standard carryover balance) bears to the
Interest adjustment for contributions representing late
prior-year funding target determined without regard to the
required quarterly installments — installments due after
additional rules for plans in at-risk status. For the 2009 plan
the valuation date. If the full amount of a required installment
year, this percentage is determined as follows:
due after the valuation date for the current plan year is not paid
For plans that are not in at-risk status, divide the amount
by the due date for that installment, increase the effective
reported on line 2b of the 2008 Schedule SB by the funding
interest rate used to discount the contribution by 5 percentage
target reported on line 3d of the 2008 Schedule SB.
points for the period between the due date for the required
For plans that are in at-risk status, divide the amount
installment and the date on which the payment is made. If all or
reported on line 2b of the 2008 Schedule SB by the funding
a portion of the late required quarterly installment is due to a
target reported on line 4a of the 2008 Schedule SB.
liquidity shortfall, the increased interest rate is used for a period
Line 17. Ratio of Current Value of Assets to Funding Target
of time corresponding to the period between the due date for
if Below 70%. This calculation is required under ERISA
the installment and the end of that quarter, regardless of when
section 103(d)(11). If line 2b divided by the funding target
the contribution is actually paid.
reported in line 3d, column (2), is less than 70%, enter such
Line 19a. Contributions Allocated Toward Unpaid Minimum
percentage. Otherwise, leave this line blank.
Required Contribution from Prior Plan Years. Code section
4971(c)(4)(B) provides that any payment to or under a plan for
Specific Instructions for Part IV —
any plan year shall be allocated first to unpaid minimum
Contributions and Liquidity Shortfalls
required contributions for all preceding plan years on a first-in,
Line 18. Contributions Made to the Plan. Show all employer
first-out basis and then to the minimum required contribution for
and employee contributions for the plan year. Include employer
the current plan year. Report any contributions from line 18 that
contributions made within 8
1
/
months after the end of the plan
are allocated toward unpaid minimum required contributions
2
year to the extent such contributions are designated for this
from prior plan years, discounted for interest from the date the
plan year. Include amounts that will be allocated toward an
contribution was made to the valuation date for the plan year for
unpaid minimum required contribution for a prior year.
which the contribution was originally required as described
-59-
Instructions for Schedule SB (Form 5500)

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