Instructions For Schedule B (Form 5500) - Actuarial Information

Also, include any other information needed to disclose the

the valuation assumes a maturity value to provide the

actuarial position of the plan fully and fairly.

post-retirement income without separately identifying the

mortality, interest and expense elements, under

Line 6a. “RPA ’94” Current Liability Interest Rate. Enter the

“post-retirement,” enter on line 6d the value of $1.00 of monthly

interest rate used to determine “RPA ’94” current liability. The

pension beginning at the age shown on line 6b, assuming the

interest rate used must be in accordance with the guidelines

normal form of annuity for an unmarried person; in this case

issued by the IRS and, pursuant to the Pension Protection Act

check “N/A” on lines 6e and 6f.

of 2006, must not be above and must not be more than 10

Line 6e. Valuation Liability Interest Rate. Enter the

percent below the weighted average of the rates of interest, as

assumption as to the expected interest rate (investment return)

set forth by the Treasury Department, on amounts invested

used to determine all the calculated values except for current

conservatively in long-term investment-grade corporate bonds

liability and liabilities determined under the alternative funding

during the 4-year period ending on the last day before the

standard account (see instructions for line 8b). If the assumed

beginning of the 2006 plan year. Enter the rate to the nearest

rate varies with the year, enter the weighted average of the

.01 percent.

assumed rate for 20 years following the valuation date. Enter

Line 6b. Weighted Average Retirement Age. If each

rates to the nearest .01 percent.

participant is assumed to retire at his/her normal retirement

Line 6f. Expense Loading. If there is no expense loading,

age, enter the age specified in the plan as normal retirement

enter -0-. For instance, there would be no expense loading

age. If the normal retirement age differs for individual

attributable to investments if the rate of investment return on

participants, enter the age that is the weighted average normal

assets is adjusted to take investment expenses into account. If

retirement age; do not enter “NRA.” Otherwise, enter the

there is a single expense loading not separately identified as

assumed retirement age. If the valuation uses rates of

pre-retirement or post-retirement, enter it under pre-retirement

retirement at various ages, enter the nearest whole age that is

and check “N/A” under post-retirement. Where expenses are

the weighted average retirement age. On an attachment to

assumed other than as a percentage of plan costs or liabilities,

Schedule B, list the rate of retirement at each age and describe

enter the assumed pre-retirement expense as a percentage of

the methodology used to compute the weighted average

the plan’s normal cost, and enter the post-retirement expense

retirement age, including a description of the weight applied at

as a percentage of plan liabilities. If the normal cost of the plan

each potential retirement age, and label the list “Schedule B,

is zero, enter the assumed pre-retirement expense as a

line 6b – Description of Weighted Average Retirement

percentage of the sum of the lines 9c(1) and 9c(2), minus line

Age.”

9j. Enter rates to the nearest .1 percent.

Line 6c. Check “Yes,” if the rates in the contract were used

Line 6g. Annual Withdrawal Rates. Enter rates to the nearest

(e.g., purchase rates at retirement).

.01 percent. Enter the rate assumed for a new entrant to the

Line 6d. Mortality Table. The 1983 G.A.M. mortality table

plan at the age shown. Enter “S” before the rate if that rate is

published in Rev. Rul. 95-28 must be used in the calculation of

different for participants with the same age but longer service.

“RPA ’94” current liability for non-disabled lives. The mortality

Enter “U” before the rate if all participants of that age are

tables published in Rev. Rul. 96-7 may be used in the

assumed to experience the same withdrawal rates, regardless

calculation of “RPA ’94” current liability for disabled lives. Enter

of service. Enter “C” before the rate if criteria other than service

the mortality table code for non-disabled lives used for valuation

apply to the rates used.

purposes as follows:

Line 6h. Salary Scale. If a uniform level annual rate of salary

increase is used, enter that annual rate. Otherwise, enter the

Mortality Table

Code

level annual rate of salary increase that is equivalent to the

rate(s) of salary increase used. Enter the annual rate as a

1951 Group Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . .

percentage to the nearest .01 percent, used for a participant

from age 25 to assumed retirement age. If the plan’s benefit

1971 Group Annuity Mortality (G.A.M.) . . . . . . . . . . . . . .

formula is not related to compensation, check “N/A.”

1971 Individual Annuity Mortality (I.A.M.) . . . . . . . . . . . . .

Line 6i. Estimated Investment Return – Actuarial Value.

UP-1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the estimated rate of return on the actuarial value of plan

assets for the 1-year period ending on the valuation date. For

1983 I.A.M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

this purpose, the rate of return is determined by using the

1983 G.A.M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

formula 2I/(A + B - I), where I is the dollar amount of the

investment return under the asset valuation method used for

1983 G.A.M. (solely per Rev. Rul. 95-28) . . . . . . . . . . . . .

the plan, A is the actuarial value of the assets one year ago,

UP-1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and B is the actuarial value of the assets on the current

valuation date. Enter rates to the nearest .1 percent. If entering

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a negative number, enter a minus sign “ – ” to the left of the

None . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

number.

Note. Use the above formula even if the actuary feels that the

Code 6 includes all sex-distinct versions of the 1983 G.A.M.

result of using the formula does not represent the true

table other than the table published in Rev. Rul. 95-28. Thus,

estimated rate of return on the actuarial value of plan assets for

for example, Code 6 also would include the 1983 G.A.M.

the 1-year period ending on the valuation date. The actuary

may attach a statement showing both the actuary’s estimate of

male-only table used for males, where the 1983 G.A.M.

male-only table with a 6-year setback is used for females. Code

the rate of return and the actuary’s calculations of that rate, and

9 includes mortality tables other than those listed in Codes 1

label the statement “Schedule B, line 6i – Estimated Rate of

through 8, including any unisex version of the 1983 G.A.M.

Investment Return (Actuarial Value).”

table.

Line 6j. Estimated Investment Return – Current (Market)

Where an indicated table consists of separate tables for

Value. Enter the estimated rate of return on the current value

males and females, add F to the female table (e.g., 1F). When

of plan assets for the 1-year period ending on the valuation

a projection is used with a table, follow the code with “P” and

date. (The current value is the same as the fair market value —

the year of projection (omit the year if the projection is unrelated

see line 1(b)(1) instructions.) For this purpose, the rate of return

to a single calendar year); the identity of the projection scale

is determined by using the formula 2I/(A + B - I), where I is the

should be omitted. When an age setback or set forward is used,

dollar amount of the investment return, A is the current value of

indicate with “-” or “+” and the number of years. For example, if

the assets one year ago, and B is the current value of the

for females the 1951 Group Annuity Table with Projection C to

assets on the current valuation date. Enter rates to the nearest

1971 is used with a 5-year setback, enter “1P71-5.” If the table

.1 percent. If entering a negative number, enter a minus sign

is not one of those listed, enter “9” with no further notation. If

(“ – ”) to the left of the number.

-4-

Instructions For Schedule B (Form 5500) - Actuarial Information - 2006 Page 6

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