Instructions For Schedule B (Form 5500) - Actuarial Information - 2006 Page 11

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calculation and label the schedule “Schedule B, line 12m(4) –
airline. If an employer has made an election to apply the
Alternative UCEB Calculation.”
alternative funding schedule for 2006 in accordance with IRS
Announcement 2006-70, 2006-40 I.R.B. 629, complete all items
Line 12m(5). “RPA ’94” Additional Amount. Subtract line
on this Schedule B (including item 9) as if the alternative
12g from line 12e. If the result is zero or less than zero, enter
funding schedule had not been elected, except as indicated
-0-. If the result is a positive number, multiply the result by the
below:
percentage used to calculate line 12i. Enter the excess, if any,
Line 8b. Alternative Methods or Rules. Enter code 6 to
of this amount over the amount on line 12i.
indicate that the plan is using the alternative 17-year funding
Line 12n. Preliminary charge. Adjust with interest using the
schedule for airlines.
“RPA ’94” current liability interest rate.
Also, attach a worksheet showing the information below,
Line 12o. Contributions needed to increase current liability
determined in accordance with section 402(e) of the Pension
percentage to 100%. This amount is equal to the excess, if
Protection Act of 2006. Label this worksheet “Schedule B, line
any, of the “adjusted current liability” over the “adjusted assets.”
8b – Alternative 17-Year Funding Schedule for Airlines.”
The adjusted current liability is equal to the excess of (1) the
Date as of which plan benefits were frozen as required under
sum of lines 1d(2)(a) and 1d(2)(b), over (2) line 1d(2)(d), each
section 402(b)(2) of the PPA.
adjusted to the end of the plan year using the “RPA ’94” current
Date on which the first applicable plan year begins.
liability interest rate.
If the plan sponsor elected to change the plan year as
The adjusted assets are equal to the actuarial value of
provided in section 402(d)(1)(C) of the PPA, the beginning and
assets for the plan year adjusted by (1) subtracting any credit
ending dates of the plan year immediately preceding the first
balance (or adding any debit balance) in the plan’s funding
applicable plan year.
standard account as of the end of the prior plan year, adjusted
Unit credit accrued liability calculated as of the first day of the
with interest to the valuation date at the valuation interest rate,
plan year, using an interest rate of 8.85% and other
(2) subtracting the disbursements from the plan (including
assumptions as reported in lines 6b-6g of the Schedule B and
single sum distributions) expected to be paid after the valuation
related attachments.
date but prior to the end of the plan year, (3) adding the
Fair market value of assets as of the first day of the plan
charges to the funding standard account as maintained under
year.
Code section 412(b) for the plan year (other than the additional
Unfunded liability used to calculate the 17-year amortization
funding charge under Code section 412(I)), and (4) subtracting
charge.
the credits to the funding standard account as maintained under
Alternative funding schedule:
Code section 412(b) for the plan year (other than credits under
1. Charge necessary to amortize the unfunded liability over
Code sections 412(b)(3)(A) and 412(b)(3)(C)). The actuarial
17 years, assuming payments at the end of the plan year and
value of assets and the adjustments described above are
using an interest rate of 8.85%;
determined as of the valuation date, and each is appropriately
2. Employer contributions for the plan year which were
adjusted with interest to the end of the plan year at the
made before the end of the plan year, as reported in line 3,
valuation interest rate. The result of the calculation of adjusted
column (b), increased for interest to the end of the plan year
assets may be a negative number.
using a rate of 8.85%;
Line 12q. If the plan had 150 or more participants on each day
3. Employer contributions for the plan year which were
of the preceding plan year, enter 100%. If the plan had less
made after the end of the plan year, as reported in line 3,
than 150 participants but more than 100 participants on each
column (b), discounted for interest to the end of the plan year
day of the preceding plan year, enter the applicable percentage.
using a rate of 8.85%; and
The same participant aggregation rule described in the
4. Contribution shortfall, if any ((1)-(2)-(3), but not less than
instructions for line 12 applies. The applicable percentage is
zero).
calculated as follows: (1) Determine the greatest number of
participants on any day during the preceding plan year in
Note. If a portion of the plan was the result of a spin-off during
excess of 100. (2) The applicable percentage is 2% times the
the plan year as described in section 402(e)(5) of the Pension
number of such participants in excess of 100. The percentage
Protection Act of 2006, provide the above information for the
should not exceed 100%. The amount on line 12q is also the
plan as a whole (disregarding the spin-off) as well as the
amount entered on line 9f.
allocation of the minimum funding requirements between (or
among) the affected plans.
Special Instructions for Plans Utilizing
Line 10. Contribution Necessary to Avoid Deficiency. Enter
Alternative 17-Year Funding Schedule
zero if the contributions to the plan for the plan year are not less
than the minimum required contribution determined under such
for Airlines
alternative schedule (i.e., if the contribution shortfall in line 4 of
Section 402(e) of the Pension Protection Act (PPA) of 2006
the alternative funding schedule is zero; see special instructions
provides funding relief for certain defined benefit plans (other
for line 8b above). Additional information will be provided later
than multiemployer plans) maintained by a commercial
in the case where there is a contribution shortfall in the
passenger airline, or by an employer whose principal business
alternative funding schedule.
is providing catering services to a commercial passenger
-9-

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