Instructions For Schedule B (Form 5500) - Actuarial Information

3. the average cash balance account of the active

separate schedule for each participating employer in the

participant in the age/service bin, using $0 for anyone who has

multiple-employer plan.

no cash balance account-based benefit.

Line 9. Shortfall Method. Under the shortfall method of

funding, the normal cost in the funding standard account is the

If the accrued benefit is the greater of a cash balance benefit or

charge per unit of production (or per unit of service) multiplied

some other benefit, average in only the cash balance account.

by the actual number of units of production (or units of service)

If the accrued benefit is the sum of a cash balance account

that occurred during the plan year. Each amortization

benefit and some other benefit, average in only the cash

installment in the funding standard account is similarly

balance account. For both the average compensation and the

calculated.

average cash balance account, do not enter an amount for age/

service bins with fewer than 20 active participants.

Lines 9a through 9q. Multiple-Employer Plans. If the plan is

a multiple-employer plan subject to the rules of Code section

In lieu of the above, two alternatives are provided for

413(c)(4)(A) for which minimum funding requirements are to be

showing compensation and cash balance accounts. Each

computed as if each employer were maintaining a separate

alternative provides for two age/service scatters (one showing

plan, complete one Schedule B for the plan. Also submit an

compensation and one showing cash balance accounts) as

attachment completed in the same format as lines 9a through

follows:

9q showing, for this plan year, for each individual employer

Alternative A:

maintaining the plan, the development of the minimum

•

Scatter 1 — Provide participant count and average

contribution requirement (taking into account the applicable

compensation for all active participants, whether or not

normal cost, amortization charges and credits, and all other

participants have account-based benefits.

applicable charges or credits to the funding standard account

•

Scatter 2 — Provide participant count and average cash

that would apply if the employer were maintaining a separate

balance account for all active participants, whether or not

plan), and label the attachment “Schedule B, lines 9a through

participants have account-based benefits.

9q – Development of Minimum Contribution Requirement

for Each Individual Employer.” Compute the entries on

Alternative B:

•

Schedule B, except for the entries on lines 9a, 9h, 9o, and 9p,

Scatter 1 — Provide participant count and average

as the sum of the appropriate individual amounts computed for

compensation for all active participants, whether or not

each employer. Compute the entry on line 9a as the sum of the

participants have account-based benefits (i.e., identical to

prior year’s funding deficiency, if any, for each individual

Scatter 1 in Alternative A).

•

employer and the entry on line 9p as the sum of the separately

Scatter 2 — Provide participant count and average cash

computed funding deficiency, if any, for the current year for

balance account for only those active participants with

each employer. Credit balance amounts on lines 9h and line 9o

account-based benefits. If the number of participants with

are separately computed in the same manner. (Note that it is

account-based benefits in a bin is fewer than 20, the average

possible for the Schedule B to show both a funding deficiency

account should not be shown even if there are more than 20

and a credit balance for section 413(c) plans. This could not

active participants in this bin on Scatter 1.

appear for other plans.)

In general, information should be determined as of the

Lines 9c and 9j. Amortization Charges and Credits. If there

valuation date. Average cash balance accounts may be

are any amortization charges or credits, attach a maintenance

determined as of either:

schedule of funding standard account bases and label the

1. the valuation date or

schedule “Schedule B, lines 9c and 9j – Schedule of

2. the day immediately preceding the valuation date.

Funding Standard Account Bases.” The attachment should

clearly indicate the type of base (i.e., original unfunded liability,

Average cash balance accounts that are offset by amounts

amendments, actuarial losses, etc.), the outstanding balance of

from another plan may be reported either as amounts prior to

each base, the number of years remaining in the amortization

taking into account the offset, or as amounts after taking into

period, and the amortization amount. If bases were combined in

account the offset. Do not report the offset amount. For any

the current year, the attachment should show information on

other unusual or unique situation, the attachment should

bases both prior to and after the combining of bases.

include an explanation of what is being provided.

The outstanding balance and amortization charges and

If the plan is a multiple-employer plan, complete one or more

credits must be calculated as of the valuation date for the plan

schedules of active-participant data in a manner consistent with

year.

the computations for the funding requirements reported on line

9. See the specific instructions for Lines 9a through 9q. For

Note. If an election was made under Code section 412(b)(7)(F)

example, if the funding requirements are computed as if each

to defer a portion of an amount otherwise determined under

participating employer maintained a separate plan, attach a

section 412(b)(2)(B)(iv), include an attachment describing this

Schedule B, Line 8c—Schedule of Active Participant Data

YEARS OF CREDITED SERVICE

Under 1

1 to 4

5 to 9

40 & up

Attained

Age

Average

No.

Comp.

Cash Bal.

No.

Comp.

Cash Bal.

No.

Comp.

Cash Bal.

No.

Comp.

Cash Bal.

Under 25

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 & up

-6-

Instructions For Schedule B (Form 5500) - Actuarial Information - 2006 Page 8

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