FAQ 266: Pre-PPA Funding Methods - Funding method shows as FIL


This is a takeover case. I'm trying to use the Individual Aggregate funding method, but for some reason, I continue to have this problem of getting the wrong method. If I use 5 or 6 as the funding method, I usually get FIL or Aggregate, but not Individual Aggregate. Am I inputting something in error?


Funding method 6 is aggregate and will print as such.

In order to run funding method 5 - ISG over Prior AL + NC, you must enter Prior AL and/or Prior NC in each active participant's costs/costs screen (lower right hand section) for both 412 and 404.

Alternatively, in a takeover case you may use option 4 and change to option 5 for subsequent years (I believe this is allowed in the "change funding methods" regulations). Any of the assets that can't be allocated are treated as a gain/loss item and amortized. When the system sees a base with a non-immediate gain method, the funding method prints as FIL.

Additional items that cause the funding method to print as FIL:

(1) Assets are greater than PVAB, and in the Funding Method, Limit Allocation to PVAB is checked "Yes" (changing this to "No" will produce negative normal costs, but the method will print as Aggregate or Individual Aggregate as coded.

(2) Prior contribution and/or interest on prior contribution was entered, but the prior minimum contribution requirement was left blank (or differs from the sum of prior contribution plus interest on prior contribution).

(3) A base was entered in the basis screen, or was carried forward to the bases screen from the prior year.

(4) All participants are new entrants and assets were entered in the Contribution screen (assets cannot be allocated to new entrants)