2009 Instructions For Schedule Sb (Form 5500) Single-Employer Defined Benefit Plan Actuarial Information Page 9

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Line 19 – Discount contributions to the applicable valuation
Code
Alternative Funding Rule
date using the 8.85% discount rate provided under section
1
Certain multiple-employer plans maintained by
402(e)(4)(B) of PPA.
rural cooperatives or related organizations as
Line 20 – Reflect required quarterly installments based on
described in section 104 of PPA
the minimum required contribution determined under section
2
Temporary relief for certain PBGC settlement
402(e) of PPA to the extent applicable (i.e., for purposes of
plans described in section 105 of PPA
calculating the required annual payment under Code section
430(j)(3)(D)(ii)(l) and ERISA section 303(j)(3)(D)(ii)(l)).
3
Certain plans maintained by government
Line 29 – Reflect the minimum required contribution
contractors as described in section 106 of PPA
determined under section 402(e) of PPA when determining the
4
Plans with binding agreements with PBGC to
unpaid minimum required contribution.
maintain prefunding and/or funding standard
Also, attach a worksheet showing the information below,
carryover balances described in Code section
determined in accordance with section 402(e) of PPA. Label
430(f)(4)(B)(ii) and ERISA section 303(f)(4)(B)(ii)
this worksheet “Schedule SB, line 27 – Alternative 17-Year
5
Airlines using 10-year amortization period for initial
Funding Schedule for Airlines.”
post-PPA shortfall amortization base under section
Date as of which plan benefits were frozen as required under
402(a)(2) of PPA (as amended)
section 402(b)(2) of PPA.
6
Alternative 17-year funding schedule for airlines
Date on which the first applicable plan year began.
with frozen plans under section 402(a)(1) of PPA
Accrued liability under the unit credit method calculated as of
7
Interstate transit company described in section
the first day of the plan year, using an interest rate of 8.85%.
115 of PPA
A summary of all other assumptions used to calculate the unit
credit accrued liability.
Fair market value of assets as of the first day of the plan
Plans entitled to delayed effective dates for PPA funding
year.
rules (codes 1, 2, and 3). For plan years before Code section
Unfunded liability under section 402(e)(3)(A) of PPA.
430 and ERISA section 303 apply to the plan, complete only the
Alternative funding schedule:
following lines on Schedule SB:
1. Contribution necessary to amortize the unfunded liability
Lines A through F.
over the remaining number of years, assuming payments at the
Part I (including signature of enrolled actuary), determined as
valuation date for each plan year and using an interest rate of
if PPA provisions were effective for the plan year beginning in
8.85%;
2008.
2. Employer contributions for the plan year, discounted for
Part III, line 14, determined as if PPA provisions were
interest to the valuation date for the plan year, and using a rate
effective for the plan year beginning in 2008.
of 8.85%; and
Also, report other information for the current plan year using
3. Contribution shortfall, if any ((1)-(2) but not less than
a 2007 Schedule B (Form 5500). Label this attachment “2009
zero).
Schedule SB, line 27 – Actuarial Information Based on
Pre-PPA Funding Rules.” Complete all items, and attach the
Interstate transit company (code 7). Complete the entire
form and all applicable attachments to the Schedule SB. Note
Schedule SB, reflecting the modifications to the
that under PPA, the third segment rate determined under Code
otherwise-required funding rules under section 115(b) of PPA,
section 430(h)(2)(C)(iii) and ERISA section 303(h)(2)(C)(iii) is
and disregarding the attachment required for plans reporting the
substituted for the current liability interest rate under Code
use of the substitute mortality table in line 23.
section 412(b)(5)(B) and ERISA section 302(b)(5)(B) (as in
Specific Instructions for Part VII —
effect before PPA).
Reconciliation of Unpaid Minimum Required
Plans with binding agreements with the PBGC to
Contributions for Prior Years
maintain prefunding and/or carryover balances (code 4).
Complete entire Schedule SB and attachments as outlined in
Line 28. Unpaid Minimum Required Contributions for Prior
these instructions. In addition, report on an attachment the
Years. Enter the total amount of any unpaid minimum required
amount subject to the binding agreement with the PBGC,
contributions for all years from line 40 of the Schedule SB for
reported separately for the funding standard carryover balance
the prior plan year.
and prefunding balance. Label the attachment “Schedule SB,
If this is the first year that the plan is subject to the minimum
line 27 – Balances Subject to Binding Agreement with
funding requirements of ERISA section 303 or Code section
PBGC.”
430, enter the amount of any accumulated funding deficiency at
Airline using 10-year amortization period for initial
the end of the prior year (the pre-effective plan year). This is the
post-PPA shortfall amortization base (code 5). Complete
amount reported on line 9p of the 2007 Schedule B form that
the entire Schedule SB and attachments as outlined in these
was submitted as an attachment to the Schedule SB for the
instructions. Under section 402(a)(2) of PPA (as amended), the
pre-effective plan year.
funding target for plans funded using this alternative is
Line 29. Employer Contributions Allocated Toward Unpaid
determined using an interest rate of 8.25% for each of the 10
Minimum Required Contributions from Prior Years. Enter
years during the amortization period instead of the interest rates
the total amount of discounted contributions made for the
otherwise required under Code section 430(h)(2) and ERISA
current plan year allocated toward unpaid minimum required
section 303(h)(2). However, this special 8.25% interest rate
contributions from prior years as reported in line 19a.
does not apply for other purposes, including the calculation of
Line 30. Remaining Unpaid Minimum Required
target normal cost or the amortization of the funding shortfall.
Contributions. Enter the amount in line 28 minus the amount
Alternative 17-year funding schedule for airlines with
in line 29.
frozen plans (code 6). Complete the following lines on
Specific Instructions for Part VIII — Minimum
Schedule SB and provide associated attachments:
Required Contribution for Current Year
Lines A through F.
Part I (including signature of enrolled actuary) – complete all
Line 31. Target Normal Cost, Adjusted if Applicable. In
lines.
general, enter the target normal cost as reported in line 6.
Parts III through VII – complete all lines.
However, if the minimum required contribution is determined
For this purpose, disregard the special funding rules under
under Code section 430(a)(2) or ERISA section 303(a)(2)
section 402(e) of PPA except for the information reported on
(relating to plans with excess assets), enter the amount of the
the following lines:
minimum required contribution. For this purpose, excess assets
-63-
Instructions for Schedule SB (Form 5500)

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