Instructions For Schedule B (Form 5500) - Actuarial Information - 2006
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11The Pension Protection Act of 2006 Changes the 2006
Instructions for Schedule B (Form 5500), Actuarial
Information.
CAUTION
–
If you downloaded the 2006 Instructions
for Schedule B (Form 5500) before December 13, 2006,
you may need to download them again.
The recently enacted Pension Protection Act of 2006 changed the interest rate
used in calculating a plan’s current liability. See the following changes.
•
On page 2, under Specific Instructions for Part I [Line 1d(2)(a). “RPA ’94”
Current Liability.], the first paragraph now reads:
“All Plans regardless of the number of participants must provide the
information indicated in accordance with these instructions. The
interest rate used to compute the “RPA ‘94” current liability must be in
accordance with guidelines issued by the IRS and, pursuant to the
Pension Protection Act of 2006, must not be above and must not be
more than 10 percent below the weighted average of the rates of
interest, as set forth by the Treasury Department, on amounts invested
conservatively in long-term investment-grade corporate bonds during
the 4-year period ending on the last day before the beginning of the
2006 plan year.”
•
On page 2, under Specific Instructions for Part I [Line1d(2)(c). Current
Liability Computed at Highest Allowable Interest Rate.], the first
sentence now reads:
“Enter the current liability computed using the highest allowable
interest rate (100% of the weighted average interest rate on
amounts invested conservatively in long-term investment-grade
corporate bonds during the 4-year period ending on the last day
before the beginning of the 2006 plan year).”
•
On page 4, under Specific Instructions for Part I [Line 6a. “RPA ‘94”
Current Liability Interest Rate.], the paragraph now reads:
“Enter the interest rate used to determine “RPA ‘94” current liability.
The interest rate used must be in accordance with the guidelines
issued by the IRS and, pursuant to the Pension Protection Act of 2006,
must not be above and must not be more than 10 percent below the
weighted average of the rates of interest, as set forth by the Treasury
Department, on amounts invested conservatively in long-term
investment-grade corporate bonds during the 4-year period ending on
the last day before the beginning of the 2006 plan year. Enter the rate
to the nearest .01 percent.”
In addition, the Pension Protection Act of 2006 provides funding relief for certain
defined benefit plans (other than multiemployer plans) maintained by a commercial
passenger airline or by an employer whose principal business is providing catering
services to a commercial passenger airline. This provision allows eligible plans to
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