| FAQ 651: Pre-PPA Funding Methods - Method change to FIL |
I have several plans that use an Individual Aggregate Funding method. It seems that when I am trying to end up with no contribution due, the funding method changes to an FIL. Why does this happen and what can I do to prevent it?
The two most common causes for this are (1) assets are greater than present value of future benefits - in this case, change the spec in the funding method screen for "Limit ISG Allocation to PVFB" to "No". This will produce a negative normal cost rather than creating a base for the excess assets, and (2) prior actuarial liability and normal cost fields for all participants are blank - in the Costs/Costs screen, enter the prior values for 412 and 404.