Instructions For Schedule B (Form 5500) - Actuarial Information

assembling the package for filing, you can place attachments

Line 1d(2)(a). “RPA ’94” Current Liability. All plans

for a schedule either directly behind that schedule or at the end

regardless of the number of participants must provide the

of the filing.

information indicated in accordance with these instructions. The

interest rate used to compute the “RPA ’94” current liability

Do not include attachments that contain a visible social

must be in accordance with guidelines issued by the IRS and,

security number. The Schedule B and its attachments are open

pursuant to the Pension Protection Act of 2006, must not be

to public inspection, and the contents are public information and

above and must not be more than 10 percent below the

are subject to publication on the Internet. Because of privacy

weighted average of the rates of interest, as set forth by the

concerns, the inclusion of a visible social security number on an

Treasury Department, on amounts invested conservatively in

attachment may result in the rejection of the filing.

long-term investment-grade corporate bonds during the 4-year

period ending on the last day before the beginning of the 2006

Specific Instructions for Part I

plan year.

Line 1. All entries must be reported as of the valuation date.

The “RPA ’94” current liability must be computed using the

Line 1a. Actuarial Valuation Date. The valuation for a plan

1983 G.A.M. mortality table for non-disabled lives published in

Rev. Rul. 95-28, 1995-1 C.B. 74, and may be computed taking

year may be as of any date in the plan year, including the first

or last day of the plan year. Valuations must be performed

into account the mortality tables for disabled lives published in

within the period specified by ERISA section 103(d) and Code

Rev. Rul. 96-7, 1996-1 C.B. 59.

section 412(c)(9).

Each other actuarial assumption used in calculating the

“RPA ’94” current liability must be the same assumption used

Line 1b(1). Current Value of Assets. Enter the current value

for calculating other costs for the funding standard account. See

of assets as of the valuation date. The current value is the

same as the fair market value. Do not adjust for items such as

Notice 90-11, 1990-1 C.B. 319. The actuary must take into

account rates of early retirement and the plan’s early retirement

the existing credit balance or the outstanding balances of

and turnover provisions as they relate to benefits, where these

certain amortization bases. Contributions designated for 2006

would significantly affect the results. Regardless of the

should not be included in this amount. Note that this entry may

valuation date, “RPA ’94” current liability is computed taking into

be different from the entry in line 2a. Such a difference may

result, for example, if the valuation date is not the first day of

account only credited service through the end of the prior plan

year. No salary scale projections should be used in these

the plan year, or if insurance contracts are excluded from

computations. Do not include the expected increase in current

assets reported on line 1b(1) but not on line 2a.

liability due to benefits accruing during the plan year reported in

Rollover amounts or other assets held in individual accounts

line 1d(2)(b) in these computations.

that are not available to provide defined benefits under the plan

Line 1d(2)(b). Expected Increase in Current Liability. Enter

should not be included on line 1(b)(1) regardless of whether

the amount by which the “RPA ’94” current liability is expected

they are reported on the 2006 Schedule H (Form 5500) (line 1l,

to increase due to benefits accruing during the plan year on

column (a)) or Schedule I (Form 5500) (line 1c, column (a)), or,

account of credited service and/or salary changes for the

alternatively, the 2006 Form 5500-EZ (line 11a, column (a):

current year. One year’s salary scale may be reflected.

total assets at the beginning of the year). Additionally, asset

and liability amounts must be determined in a consistent

Line 1d(2)(c). Current Liability Computed at Highest

manner. Therefore, if the value of any insurance contracts have

Allowable Interest Rate. Enter the current liability computed

been excluded from the amount reported on line 1b(1), liabilities

using the highest allowable interest rate (100% of the weighted

satisfied by such contracts should also be excluded from the

average interest rate on amounts invested conservatively in

liability values reported on lines 1c(1), 1c(2), and 1d(2).

long-term investment-grade corporate bonds during the 4-year

period ending on the last day before the beginning of the 2006

Line 1b(2). Actuarial Value of Assets. Enter the value of

plan year). All other assumptions used should be identical to

assets determined in accordance with Code section 412(c)(2)

those used for lines 1d(2)(a) and (b). It is not necessary to

or ERISA section 302(c)(2). Do not adjust for items such as the

complete line 1d(2)(c) if the plan is a multiemployer plan or if

existing credit balance or the outstanding balances of certain

the plan had 100 or fewer participants in the prior plan year.

amortization bases, and do not include contributions designated

Whether or not a plan had 100 or fewer participants in the prior

for 2006 in this amount.

plan year is determined according to the instructions under the

Line 1c(1). Accrued Liability for Immediate Gain Methods.

Who Must File discussion for Schedule B. This line need not

Complete this line only if you use an immediate gain method

be completed if the actuarial value of assets (line 1b(2)) divided

(see Rev. Rul. 81-213, 1981-2 C.B. 101, for a definition of

by the “RPA ’94” current liability (line 1d(2)(a)) is greater than or

immediate gain method).

equal to 90%. However, if this line is not completed, sufficient

Lines 1c(2)(a), (b), and (c). Information for Plans Using

records should be retained so that the current liability amount

Spread Gain Methods. Complete these lines only if you use a

that would otherwise have been entered on this line can be

spread gain method (see Rev. Rul. 81-213 for a definition of

computed at a later time if required.

spread gain method).

Line 1d(2)(d). Expected Release from “RPA ’94” Current

Line 1c(2)(a). Unfunded Liability for Methods with Bases.

Liability for the Plan Year. Do not complete this line if Code

Complete this line only if you use the frozen initial liability or

section 412(l) does not apply to the plan for this plan year under

attained age normal cost method.

Code sections 412(l)(1), 412(l)(6), or 412(l)(9). Enter the

expected release from “RPA ’94” current liability on account of

Lines 1c(2)(b) and (c). Entry Age Normal Accrued Liability

disbursements (including single sum distributions) from the plan

and Normal Cost. For spread gain methods, the full funding

expected to be paid after the valuation date but prior to the end

limitation is calculated using the entry age normal method (see

of the plan year (see also Q&A-7 of Rev. Rul. 96-21).

Rev. Rul. 81-13, 1981-1 C.B. 229).

Line 1d(3). Expected Plan Disbursements. Enter the amount

Line 1d(1). Amount Excluded from Current Liability. In

of plan disbursements expected to be paid for the plan year.

computing current liability for purposes of Code section 412(l)

(but not for purposes of section 412(c)(7)), certain service is

Line 2. All entries must be reported as of the beginning of the

disregarded under Code section 412(l)(7)(D) and ERISA

2006 plan year. Lines 2a and 2b should include all assets and

section 302(d)(7)(D). If the plan has participants to whom those

liabilities under the plan except for assets and liabilities

provisions apply, only a percentage of the years of service

attributable to: (1) rollover amounts or other amounts in

before such individuals became participants in the plan is taken

individual accounts that are not available to provide defined

into account. Enter the amount excluded from “RPA ’94” current

benefits, or (2) benefits for which an insurer has made an

liability. If an employer has made an election under section

irrevocable commitment as defined in 29 CFR 4001.2. The

412(l)(7)(D)(iv) not to disregard such service, enter zero. Note

pre-participation service phase-in of Internal Revenue Code

that such an election, once made, cannot be revoked without

section 412(l)(7)(D) and ERISA section 302(d)(7)(D) will apply

the consent of the Secretary of the Treasury.

in computing the liabilities shown in line 2b, unless the

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Instructions For Schedule B (Form 5500) - Actuarial Information - 2006 Page 4

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