| FAQ 431: Frozen Plan - Benefit Accruals |
I have a plan that freezes the accrued benefit effective 12/31/19. I am running the 1/1/20 valuation. How should I code the plan specs to reflect this?
If the benefit formula is on the "traditional" formula screen (in other words, not "group" formulas or a cash balance formula), put all of the employees in a group (select group 1 in their Principal codes), the system will ignore them for benefit calculation purposes, but the existing benefits will be handled correctly. However, since top-heavy minimums will still be applied, you will also need to change the top-heavy minimum benefit percent to zero.
Alternatively, you could eliminate the benefit formula (including top-heavy minimum if the plan is top-heavy).