FAQ 946: Cash Balance - Immediate lump sum for term vesteds

Problem:

I am currently working on coding a cash balance plan. Is there any way to assume deferred lump sums for active participants and immediate lump sums for terminated vested participants?


Solution:

For Cash Balance plans, users can assign a participant's Annuity Type to 'A- Lump Sum' to have the Funding Target for Minimum & Maximum and the PBGC Premium funding target set equal to the Cash Balance account amount for status codes TMRDG. In addition, the Target Normal Cost for a newly terminated participant in a plan with an EOY valuation date will be set equal to their vested Expected Contribution amount if their Annuity Type is set to 'A-Lump Sum'.