FAQ 263: PBGC plan termination

Problem: How do I print a PBGC Notice of Plan Benefits? Benefits should be calculated as of the proposed distribution date. For instance, my proposed distribution date is 9/30/2021. My last valuation date was 1/1/2021. Are these calculations going to be using rounded ages?

Solution: If a participant is expected to receive an additional accrual in 2021 you can run an end of year valuation, update the file to 2022 and enter the 2021 data needed to calculate the increased benefits, or override the current benefits with the correct amounts. Each participant should have complete information in their record, including all dates, salary, and beneficiary information for any participants receiving benefits. Before running the Benefit Commitment statement, you should complete the information in plan specifications on the General > Definitions > CORPORAT screen and be sure that the correct actuarial equivalence and 417(e) assumptions are coded in plan specifications. After setting up the file, go to Reports > Actuarial > Participant Termination/Optional Forms, check the PBGC Benefit Commitment - Active report to print notices for active and terminated vested participants, and the Retired statement to print notices for participants receiving monthly benefits. Select the Calculation Date for determining benefits, enter the information in the PBGC Benefit Commitments frame and select the calculation methods in the Recalculation Options frame.