Department of the Treasury Department of Labor Pension Benefit

Internal Revenue Service Employee Benefits Guaranty Corporation

Security Administration

2005

Instructions for

Schedule B (Form 5500)

Actuarial Information

Code section references are to the Internal Revenue Code unless otherwise noted.

ERISA refers to the Employee Retirement Income Security Act of 1974.

2. Part II should not be filed for plans that have 100 or fewer General Instructions participants in the prior plan year as described above.

Who Must File In addition, please note that “TRA ’97” refers to the Taxpayer The employer or plan administrator of a defined benefit plan Relief Act of 1997 and “RPA ’94” refers to the Retirement that is subject to the minimum funding standards (see Code Protection Act of 1994. section 412 and Part 3 of Title I of ERISA) must file this

schedule as an attachment to the Form 5500 or Form 5500-EZ. Note. (1) For split-funded plans, the costs and contributions

The Schedule B does not have to be filed if Form 5500-EZ is reported on Schedule B should include those relating to both

not required to be filed (in accordance with the instructions for trust funds and insurance carriers. (2) For plans with funding

Form 5500-EZ); however, the funding standard account for the standard account amortization charges and credits see the

plan must continue to be maintained, even if the Schedule B is instructions for lines 9c, 9j, and 12j, as applicable, regarding

not filed. attachment. (3) For terminating plans, Rev. Rul. 79-237, 1979-2

C.B. 190, provides that minimum funding standards apply until If a money purchase defined contribution plan (including a the end of the plan year that includes the termination date. target benefit plan) has received a waiver of the minimum Accordingly, the Schedule B is not required to be filed for any funding standard, and the waiver is currently being amortized,

lines 3, 9, and 10 of Schedule B must be completed. The later plan year. However, if a termination fails to occur —

whether because assets remain in the plan’s related trust (see Schedule B must be attached to Form 5500 but it need not be Rev. Rul. 89-87, 1989-2 C.B. 81) or for any other reason (e.g., signed by an enrolled actuary. the PBGC issues a notice of noncompliance pursuant to 29 Check the Schedule B box on the Form 5500 (Part II, line CFR section 4041.31 for a standard termination) — there is no 10a(2)) if a Schedule B is attached to the Form 5500. termination date, and therefore, minimum funding standards

Lines A through E and G (most recent enrollment number) continue to apply and a Schedule B continues to be required.

must be completed for ALL plans. If the Schedule B is attached

to a Form 5500, lines A, B, C, and D should include the same Statement by Enrolled Actuary

information as reported in Part II of the Form 5500. You may An enrolled actuary must sign Schedule B. The signature of abbreviate the plan name (if necessary) to fit in the space the enrolled actuary may be qualified to state that it is subject to provided. attached qualifications. See Treasury Regulation section Do not use a social security number in line D in lieu of an 301.6059-1(d) for permitted qualifications. If the actuary has not EIN. The Schedule B and its attachments are open to public fully reflected any final or temporary regulation, revenue ruling inspection if filed with a Form 5500, and the contents are public or notice promulgated under the statute in completing the information and are subject to publication on the Internet. Schedule B, check the box on the last line of page 1. If this box Because of privacy concerns, the inclusion of a social security is checked, indicate on an attachment whether an accumulated number on this Schedule B or any of its attachments may result funding deficiency or a contribution that is not wholly deductible in the rejection of the filing. would result if the actuary had fully reflected such regulation,

EINs may be obtained by applying for one on Form SS-4, revenue ruling, or notice, and label this attachment “Schedule

Application for Employer Identification Number, as soon as B – Statement by Enrolled Actuary.” A stamped or machine

possible. You can obtain Form SS-4 by calling produced signature is not acceptable. The most recent

1-800-TAX-FORM (1-800-829-3676) or at the IRS Web Site at enrollment number must be entered in line G. In addition, the

www.irs.gov. The EBSA does not issue EINs. actuary may offer any other comments related to the

Check the box in line F if the plan has 100 or fewer information contained in Schedule B.

participants in the prior plan year. A plan has 100 or fewer Attachments participants in the prior plan year only if there were 100 or fewer

participants (both active and nonactive) on each day of the All attachments to the Schedule B must be properly identified,

preceding plan year, taking into account participants in all and must include the name of the plan, plan sponsor’s EIN, and

defined benefit plans maintained by the same employer (or any plan number. Put “Schedule B” and the line item to which the

member of such employer’s controlled group) who are also schedule relates at the top of each attachment. When

employees of that employer or member. Nonactive participants assembling the package for filing, you can place attachments

include vested terminated and retired employees. for a schedule either directly behind that schedule or at the end

of the filing. All defined benefit plans, regardless of size or type, must

complete and file Part I. Part II must be filed for all plans other Do not include attachments that contain a visible social

than those specified in 1 and 2 below: security number. The Schedule B and its attachments are open

1. Part II should not be filed for multiemployer plans for to public inspection, and the contents are public information and

which box 1 in line E is checked. are subject to publication on the Internet. Because of privacy

Cat. No. 13513I
concerns, the inclusion of a visible social security number on an special rule under Code section 412(b)(5)(B)(ii)(II) provides

attachment may result in the rejection of the filing. that, for the 2005 plan year, the interest rate used to determine

current liability must not be above and must not be more than

Specific Instructions for Part I 10 percent below the weighted average of the rates of interest,

as set forth by the Treasury department, on amounts invested Line 1. All entries must be reported as of the valuation date. conservatively in long-term investment-grade corporate bonds Line 1a. Actuarial Valuation Date. The valuation for a plan during the 4-year period ending on the last day before the year may be as of any date in the plan year, including the first beginning of the 2005 plan year. See Notice 2004-34. or last day of the plan year. Valuations must be performed The “RPA ’94” current liability must be computed using the within the period specified by ERISA section 103(d) and Code 1983 G.A.M. mortality table for non-disabled lives published in section 412(c)(9). Rev. Rul. 95-28, 1995-1 C.B. 74, and may be computed taking Line 1b(1). Current Value of Assets. Enter the current value into account the mortality tables for disabled lives published in of assets as of the valuation date. The current value is the Rev. Rul. 96-7, 1996-1 C.B. 59. same as the fair market value. Do not adjust for items such as

the existing credit balance or the outstanding balances of Each other actuarial assumption used in calculating the

certain amortization bases. Contributions designated for 2005 “RPA ’94” current liability must be the same assumption used

should not be included in this amount. Note that this entry may for calculating other costs for the funding standard account. See

be different from the entry in line 2a. Such a difference may Notice 90-11, 1990-1 C.B. 319. The actuary must take into

result, for example, if the valuation date is not the first day of account rates of early retirement and the plan’s early retirement

the plan year, or if insurance contracts are excluded from and turnover provisions as they relate to benefits, where these

assets reported on line 1b(1) but not on line 2a. would significantly affect the results. Regardless of the

valuation date, “RPA ’94” current liability is computed taking into Rollover amounts or other assets held in individual accounts account only credited service through the end of the prior plan that are not available to provide defined benefits under the plan year. No salary scale projections should be used in these should not be included on line 1(b)(1) regardless of whether computations. Do not include the expected increase in current they are reported on the 2005 Schedule H (Form 5500) (line 1l, liability due to benefits accruing during the plan year reported in column (a)) or Schedule I (Form 5500) (line 1c, column (a)), or, line 1d(2)(b) in these computations. alternatively, the 2005 Form 5500-EZ (line 11a, column (a):

total assets at the beginning of the year). Additionally, asset Line 1d(2)(b). Expected Increase in Current Liability. Enter

and liability amounts must be determined in a consistent the amount by which the “RPA ’94” current liability is expected

manner. Therefore, if the value of any insurance contracts have to increase due to benefits accruing during the plan year on

been excluded from the amount reported on line 1b(1), liabilities account of credited service and/or salary changes for the

satisfied by such contracts should also be excluded from the current year. One year’s salary scale may be reflected.

liability values reported on lines 1c(1), 1c(2), and 1d(2). Line 1d(2)(c). Current Liability Computed at Highest Line 1b(2). Actuarial Value of Assets. Enter the value of Allowable Interest Rate. Enter the current liability computed assets determined in accordance with Code section 412(c)(2) using the highest allowable interest rate (100% of the weighted or ERISA section 302(c)(2). Do not adjust for items such as the average interest rate on amounts invested conservatively in existing credit balance or the outstanding balances of certain long-term investment-grade corporate bonds during the 4-year amortization bases, and do not include contributions designated period ending on the last day before the beginning of the 2005 for 2005 in this amount. plan year). All other assumptions used should be identical to

Line 1c(1). Accrued Liability for Immediate Gain Methods. those used for lines 1d(2)(a) and (b). It is not necessary to

Complete this line only if you use an immediate gain method complete line 1d(2)(c) if the plan is a multiemployer plan or if

(see Rev. Rul. 81-213, 1981-2 C.B. 101, for a definition of the plan had 100 or fewer participants in the prior plan year.

immediate gain method). Whether or not a plan had 100 or fewer participants in the prior

plan year is determined according to the instructions under the Lines 1c(2)(a), (b), and (c). Information for Plans Using

Spread Gain Methods. Complete these lines only if you use a Who Must File discussion for Schedule B. This line need not

be completed if the actuarial value of assets (line 1b(2)) divided spread gain method (see Rev. Rul. 81-213 for a definition of by the “RPA ’94” current liability (line 1d(2)(a)) is greater than or spread gain method). equal to 90%. However, if this line is not completed, sufficient Line 1c(2)(a). Unfunded Liability for Methods with Bases. records should be retained so that the current liability amount Complete this line only if you use the frozen initial liability or that would otherwise have been entered on this line can be attained age normal cost method. computed at a later time if required. Lines 1c(2)(b) and (c). Entry Age Normal Accrued Liability Line 1d(2)(d). Expected Release from “RPA ’94” Current and Normal Cost. For spread gain methods, the full funding Liability for the Plan Year. Do not complete this line if Code limitation is calculated using the entry age normal method (see section 412(l) does not apply to the plan for this plan year under Rev. Rul. 81-13, 1981-1 C.B. 229). Code sections 412(l)(1), 412(l)(6), or 412(l)(9). Enter the Line 1d(1). Amount Excluded from Current Liability. In expected release from “RPA ’94” current liability on account of computing current liability for purposes of Code section 412(l) disbursements (including single sum distributions) from the plan (but not for purposes of section 412(c)(7)), certain service is expected to be paid after the valuation date but prior to the end disregarded under Code section 412(l)(7)(D) and ERISA of the plan year (see also Q&A-7 of Rev. Rul. 96-21). section 302(d)(7)(D). If the plan has participants to whom those

provisions apply, only a percentage of the years of service Line 1d(3). Expected Plan Disbursements. Enter the amount

before such individuals became participants in the plan is taken of plan disbursements expected to be paid for the plan year.

into account. Enter the amount excluded from “RPA ’94” current Line 2. All entries must be reported as of the beginning of the liability. If an employer has made an election under section 2005 plan year. Lines 2a and 2b should include all assets and 412(l)(7)(D)(iv) not to disregard such service, enter zero. Note liabilities under the plan except for assets and liabilities that such an election, once made, cannot be revoked without attributable to: (1) rollover amounts or other amounts in

the consent of the Secretary of the Treasury. individual accounts that are not available to provide defined

Line 1d(2)(a). “RPA ’94” Current Liability. All plans benefits, or (2) benefits for which an insurer has made an

regardless of the number of participants must provide the irrevocable commitment as defined in 29 CFR 4001.2. The

information indicated in accordance with these instructions. The pre-participation service phase-in of Internal Revenue Code

interest rate used to compute the “RPA ’94” current liability section 412(l)(7)(D) and ERISA section 302(d)(7)(D) will apply

must be in accordance with guidelines issued by the IRS, using in computing the liabilities shown in line 2b, unless the

the 90% to 105% interest rate corridor of Code section employer has made an election under Code section

412(l)(7)(C)(i) for plan years beginning in 2005. However, a 412(l)(7)(D)(iv).

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Line 2a. Current Value of Assets. Enter the current value of the certification “Schedule B, line 4b – Liquidity

net assets as of the first day of the plan year. Except for plans Requirement Certification” (see Code section

with excluded assets as described above, this entry should be 412(m)(5)(E)(ii)(II) and Q&A-13 of Rev. Rul. 95-31).

the same as reported on the 2005 Schedule H (Form 5500) If the plan has a liquidity shortfall for any quarter of the plan (line 1l, column (a)) or Schedule I (Form 5500) (line 1c, column year (see Q&A-10 of Rev. Rul. 95-31), enter the amount of the (a)), or, alternatively, the 2005 Form 5500-EZ (line 11a, column liquidity shortfall for each such quarter. If the plan was subject (a): total assets at the beginning of the year). Note that to the liquidity requirement, but did not have a liquidity shortfall, contributions designated for the 2005 plan year are not included enter zero. File Form 5330, Return of Excise Taxes Related to on those lines. Employee Benefit Plans, with the IRS to pay the 10% excise

Line 2b. “RPA ’94” Current Liability (beginning of plan tax(es) if there is a failure to pay the liquidity shortfall by the

year). Enter the “RPA ’94” current liability as of the first day of required due date, unless a waiver of the 10% tax under Code

the plan year. Do not include the expected increase in current section 4971(f) has been granted.

liability due to benefits accruing during the plan year. See the Line 5. Actuarial Cost Method. Enter only the primary method instructions for line 1d(2)(a) for actuarial assumptions used in used. If the plan uses one actuarial cost method in one year as determining “RPA ’94” current liability. the basis of establishing an accrued liability for use under the

Column (1)—Enter the number of participants and frozen initial liability method in subsequent years, answer as if

beneficiaries as of the beginning of the plan year. If the current the frozen initial liability method was used in all years. The

liability figures are derived from a valuation that follows the first projected unit credit method is included in the “Accrued benefit

day of the plan year, the participant and beneficiary count (unit credit)” category of line 5c. If a method other than a

entries should be derived from the counts used in that valuation method listed in lines 5a through 5g is used, check the box for

in a manner consistent with the derivation of the current liability line 5h and specify the method. For example, if a modified

reported in columns (2) and (3). individual level premium method for which actuarial gains and

Column (2)—Include only the portion of the current liability losses are spread as a part of future normal cost is used, check

the box for 5h and describe the cost method. For the shortfall attributable to vested benefits.

method, check the appropriate box for the underlying actuarial Column (3)—Include the current liability attributable to all cost method used to determine the annual computation charge. benefits, both vested and nonvested. Changes in funding methods include changes in actuarial Line 2c. This calculation is required under ERISA section cost method, changes in asset valuation method, and changes 103(d)(11). Do not complete if line 2a divided by line 2b(4), in the valuation date of plan costs and liabilities or of plan column (3), is 70% or greater. assets. Changes in the funding method of a plan include not Line 3. Contributions Made to Plan. Show all employer and only changes to the overall funding method used by the plan, employee contributions for the plan year. Include employer but also changes to each specific method of computation used contributions made not later than 21

/2 months (or the later date in applying the overall method. Generally, these changes allowed under Code section 412(c)(10) and ERISA section require IRS approval. If the change was made pursuant to Rev. 302(c)(10)) after the end of the plan year. Show only Proc. 2000-40, 2000-2 C.B. 357, check “Yes” in line 5j. If contributions actually made to the plan by the date Schedule B approval was granted by either an individual ruling letter or a is signed. Certain employer contributions must be made in class ruling letter for this plan, enter the date of the applicable quarterly installments. See Code section 412(m). Note that ruling letter in line 5k. Note that the plan sponsor’s agreement contributions made to meet the liquidity requirement of Code to a change in funding method (made pursuant to Rev. Proc. section 412(m)(5) should be reported. 2000-40 or a class ruling letter) should be reported on line 7 of

Add the amounts in both columns (b) and (c) and enter both Schedule R (Form 5500).

results on the total line. All contributions must be credited Line 6. Actuarial Assumptions. If gender-based assumptions toward a particular plan year. are used in developing plan costs, enter those rates where

Line 4a. Quarterly Contributions. In accordance with “RPA appropriate in line 6. Note that requests for gender-based cost

’94,” only plans that have a funded current liability percentage information do not suggest that gender-based benefits are

(as provided in Rev. Rul. 95-31, 1995-1 C.B. 76) for the legal. If unisex tables are used, enter the values in both “Male”

preceding plan year of less than 100 percent are subject to the and “Female” lines. Complete all blanks. Check “N/A” if not

quarterly contribution requirement of Code section 412(m) and applicable.

ERISA section 302(e). For 2005, the funded current liability Attach a statement of actuarial assumptions (if not fully percentage for the preceding plan year is equal to line 1b(2) described by line 6) and actuarial methods used to calculate the (actuarial value of assets) divided by line 1d(2)(a) (“RPA ’94” figures shown in lines 1 and 9 (if not fully described by line 5), current liability), both lines as reported on the 2004 Schedule B and label the statement “Schedule B, line 6 – Statement of (Q&A-3, 4 and 5 of Rev. Rul. 95-31, also provide guidance on Actuarial Assumptions/Methods.” The statement must

this computation). If line 1d(2)(a) is zero for 2004 or if Box B(1) describe all actuarial assumptions used to determine the of Part I of Form 5500 is checked, enter 100%. liabilities. For example, the statement for non-traditional plans

Note. Section 101(d)(2) of the Pension Funding Equity Act of (e.g., cash balance plans) must include the assumptions used

2004 provided a lookback rule for the purpose of applying to convert balances to annuities.

section 412(m)(1) of the Internal Revenue Code of 1986, for Also attach a summary of the principal eligibility and benefit plan years beginning after December 31, 2003. If this lookback provisions on which the valuation was based, including the rule is used, attach a demonstration of the use of this lookback status of the plan (e.g., eligibility frozen, service/pay frozen, rule to the Schedule B and label the attachment “Schedule B, benefits frozen), optional forms of benefits, special plan line 4a – 412(m)(1) Lookback Rule.” provisions, including those that apply only to a subgroup of

Line 4b. Multiemployer plans, plans with funded current liability employees (e.g., those with imputed service), supplemental

percentages (as provided in Code section 412(m)(1)) of 100 benefits, an identification of benefits not included in the

percent or more for the preceding plan year, and plans that on valuation (e.g., shutdown benefits), a description of any

every day of the preceding plan year had 100 or fewer significant events that occurred during the year, a summary of

participants (as defined under the Who Must File discussion for any changes in principal eligibility or benefit provisions since the

Schedule B) are not subject to the liquidity requirement of Code last valuation, a description (or reasonably representative

section 412(m)(5) and ERISA section 302(e)(5) and should not sample) of plan early retirement factors, and any change in

complete this line. See Q&As 7 through 17 of Rev. Rul. 95-31 actuarial assumptions or cost methods and justifications for any

for guidance on the liquidity requirement. Note that a such change (see section 103(d) of ERISA), and label the

certification by the enrolled actuary must be attached if the summary “Schedule B, line 6 – Summary of Plan

special rule for nonrecurring circumstances is used, and label Provisions.”

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Also, include any other information needed to disclose the to a single calendar year); the identity of the projection scale

actuarial position of the plan fully and fairly. should be omitted. When an age setback or set forward is used,

indicate with “-” or “+” and the number of years. For example, if Line 6a. “RPA ’94” Current Liability Interest Rate. Enter the for females the 1951 Group Annuity Table with Projection C to interest rate used to determine “RPA ’94” current liability.

Generally, the interest rate used must not fall outside the 1971 is used with a 5-year setback, enter “1P71-5.” If the table

is not one of those listed, enter “9” with no further notation. If corridor of 90% to 105% of the weighted average interest rate the valuation assumes a maturity value to provide the (see Code section 412(l)(7)(C)(i)). However, a special rule post-retirement income without separately identifying the under Code section 412(b)(5)(B)(ii)(II) provides that, for the mortality, interest and expense elements, under 2005 plan year, the interest rate used to determine current “post-retirement,” enter on line 6d the value of $1.00 of monthly liability must not be above and must not be more than 10 pension beginning at the age shown on line 6b, assuming the percent below the weighted average of the rates of interest, as normal form of annuity for an unmarried person; in this case set forth by the Treasury department, on amounts invested check “N/A” on lines 6e and 6f. conservatively in long-term investment-grade corporate bonds

during the 4-year period ending on the last day before the Line 6e. Valuation Liability Interest Rate. Enter the

beginning of the plan year. The rate used must be in assumption as to the expected interest rate (investment return)

accordance with the guidelines issued by the IRS. See Notices used to determine all the calculated values except for current

90-11, 2004-34, and Rev. Rul. 96-21. Enter rate to the nearest liability and liabilities determined under the alternative funding

.01 percent. standard account (see instructions for line 8b). If the assumed

rate varies with the year, enter the weighted average of the Line 6b. Weighted Average Retirement Age. If each assumed rate for 20 years following the valuation date. Enter participant is assumed to retire at his/her normal retirement rates to the nearest .01 percent. age, enter the age specified in the plan as normal retirement

age. If the normal retirement age differs for individual Line 6f. Expense Loading. If there is no expense loading,

participants, enter the age that is the weighted average normal enter -0-. For instance, there would be no expense loading

retirement age; do not enter “NRA.” Otherwise, enter the attributable to investments if the rate of investment return on

assumed retirement age. If the valuation uses rates of assets is adjusted to take investment expenses into account. If

retirement at various ages, enter the nearest whole age that is there is a single expense loading not separately identified as

the weighted average retirement age. On an attachment to pre-retirement or post-retirement, enter it under pre-retirement

Schedule B, list the rate of retirement at each age and describe and check “N/A” under post-retirement. Where expenses are

the methodology used to compute the weighted average assumed other than as a percentage of plan costs or liabilities,

retirement age, including a description of the weight applied at enter the assumed pre-retirement expense as a percentage of

each potential retirement age, and label the list “Schedule B, the plan’s normal cost, and enter the post-retirement expense

line 6b – Description of Weighted Average Retirement as a percentage of plan liabilities. If the normal cost of the plan

Age.” is zero, enter the assumed pre-retirement expense as a

percentage of the sum of the lines 9c(1) and 9c(2), minus line Line 6c. Check “Yes,” if the rates in the contract were used 9j. Enter rates to the nearest .1 percent. (e.g., purchase rates at retirement).

Line 6g. Annual Withdrawal Rates. Enter rates to the nearest Line 6d. Mortality Table. The 1983 G.A.M. mortality table .01 percent. Enter the rate assumed for a new entrant to the published in Rev. Rul. 95-28 must be used in the calculation of plan at the age shown. Enter “S” before the rate if that rate is “RPA ’94” current liability for non-disabled lives. The mortality different for participants with the same age but longer service. tables published in Rev. Rul. 96-7 may be used in the Enter “U” before the rate if all participants of that age are calculation of “RPA ’94” current liability for disabled lives. Enter assumed to experience the same withdrawal rates, regardless the mortality table code for non-disabled lives used for valuation of service. Enter “C” before the rate if criteria other than service purposes as follows: apply to the rates used.

Line 6h. Salary Scale. If a uniform level annual rate of salary Mortality Table Code increase is used, enter that annual rate. Otherwise, enter the

level annual rate of salary increase that is equivalent to the 1951 Group Annuity ........................... 1 rate(s) of salary increase used. Enter the annual rate as a

1971 Group Annuity Mortality (G.A.M.) .............. 2 percentage to the nearest .01 percent, used for a participant

from age 25 to assumed retirement age. If the plan’s benefit 1971 Individual Annuity Mortality (I.A.M.) ............. 3 formula is not related to compensation, check “N/A.”

UP-1984 .................................. 4 Line 6i. Estimated Investment Return – Actuarial Value.

1983 I.A.M. ................................. 5 Enter the estimated rate of return on the actuarial value of plan

assets for the 1-year period ending on the valuation date. For 1983 G.A.M. ................................ 6 this purpose, the rate of return is determined by using the

1983 G.A.M. (solely per Rev. Rul. 95-28) ............. 7 formula 2I/(A + B - I), where I is the dollar amount of the

investment return under the asset valuation method used for

UP-1994 .................................. 8 the plan, A is the actuarial value of the assets one year ago,

Other and B is the actuarial value of the assets on the current ..................................... 9

valuation date. Enter rates to the nearest .1 percent. If entering None ..................................... 0 a negative number, enter a minus sign “–” to the left of the

number.

Code 6 includes all sex-distinct versions of the 1983 G.A.M. Note. Use the above formula even if the actuary feels that the

table other than the table published in Rev. Rul. 95-28. Thus, result of using the formula does not represent the true

for example, Code 6 also would include the 1983 G.A.M. estimated rate of return on the actuarial value of plan assets for

male-only table used for males, where the 1983 G.A.M. the 1-year period ending on the valuation date. The actuary

male-only table with a 6-year setback is used for females. Code may attach a statement showing both the actuary’s estimate of

9 includes mortality tables other than those listed in Codes 1 the rate of return and the actuary’s calculations of that rate, and

through 8, including any unisex version of the 1983 G.A.M. label the statement “Schedule B, line 6i – Estimated Rate of

table. Investment Return (Actuarial Value).”

Where an indicated table consists of separate tables for Line 6j. Estimated Investment Return – Current (Market)

males and females, add F to the female table (e.g., 1F). When Value. Enter the estimated rate of return on the current value

a projection is used with a table, follow the code with “P” and of plan assets for the 1-year period ending on the valuation

the year of projection (omit the year if the projection is unrelated date. (The current value is the same as the fair market value —

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see line 1(b)(1) instructions.) For this purpose, the rate of return Code Method or Rule

is determined by using the formula 2I/(A + B - I), where I is the 1 Shortfall method dollar amount of the investment return, A is the current value of 2 Alternative funding standard account (AFSA) the assets one year ago, and B is the current value of the

assets on the current valuation date. Enter rates to the nearest 3 Shortfall method used with AFSA

.1 percent. If entering a negative number, enter a minus sign 4 Plan is in reorganization status

(“–”) to the left of the number. 5 Shortfall method used when in reorganization status

Note. Use the above formula even if the actuary feels that the

result of using the formula does not represent the true Shortfall Method: Only certain collectively bargained plans

estimated rate of return on the current value of plan assets for may elect the shortfall funding method (see regulations under

the 1-year period ending on the valuation date. The actuary Code section 412). Advance approval from the IRS for the

may attach a statement showing both the actuary’s estimate of election of the shortfall method of funding is NOT required if it is

the rate of return and the actuary’s calculations of that rate, and first adopted for the first plan year to which Code section 412

applies. However, advance approval from the IRS is required if label the statement “Schedule B, line 6j – Estimated Rate of

Investment Return (Current Value).” the shortfall funding method is adopted at a later time, if a

specific computation method is changed, or if the shortfall Line 7. New Amortization Bases Established. List all new method is discontinued. amortization bases established in the current plan year (before

the combining of bases, if bases were combined). Use the Alternative Minimum Funding Standard Account: A

following table to indicate the type of base established, and worksheet must be attached if the alternative minimum funding

enter the appropriate code under “Type of Base.” List standard account is used and be labeled “Schedule B, line 8b

amortization bases and charges and/or credits as of the – Alternative Minimum Funding Standard Account.” The

valuation date. Bases that are considered fully amortized worksheet should show:

because there is a credit for the plan year on line 9l(3) should 1. The prior year alternate funding deficiency (if any). be listed. If entering a negative number, enter a minus sign “–” 2. Normal cost.

to the left of the number. 3. Excess, if any, of the value of accrued benefits over the

market value of assets.

Code Type of Amortization Base 4. Interest on 1, 2, and 3 above.

5. Employer contributions (total from columns (b) of line 3 of 1 Experience gain or loss Schedule B). 2 Shortfall gain or loss 6. Interest on 5 above.

3 Change in unfunded liability due to plan amendment 7. Funding deficiency: if the sum of 1 through 4 above is

4 Change in unfunded liability due to change in greater than the sum of 5 and 6 above, enter the difference.

actuarial assumptions

5 Change in unfunded liability due to change in If the entry age normal cost method was not used as the

actuarial cost method valuation method, the plan may not switch to the alternative

minimum funding standard account for this year. Additionally, in 6 Waiver of the minimum funding standard line 3 of the worksheet, the value of accrued benefits should 7 Switchback from alternative funding standard exclude benefits accrued for the current plan year. The market account value of assets should be reduced by the amount of any 8 Initial unfunded liability (for new plan) contributions for the current plan year.

Reorganization Status: Attach an explanation of the basis for

the determination that the plan is in reorganization for this plan

year and label the explanation “Schedule B, line 8b – Line 8a. Funding Waivers or Extensions. If a funding waiver Reorganization Status Explanation.” Also, attach a or extension request is approved after the Schedule B is filed, worksheet showing for this plan year: an amended Schedule B should be filed with Form 5500 to

report the waiver or extension approval (also see instructions 1. The amounts considered contributed by employers,

for line 9m(1)). 2. Any amount waived by the IRS,

3. The development of the minimum contribution

Line 8b. Alternative Methods or Rules. Enter the appropriate requirement (taking into account the applicable overburden

code from the table below if one or more of the alternative credit, cash-flow amount, contribution bases and limitation on

methods or rules were used for this plan year. required increases on the rate of employer contributions), and

Schedule B, Line 8c—Schedule of Active Participant Data

YEARS OF CREDITED SERVICE

Attained Under 1 1 to 4 5 to 9

Age

No. Comp.

Average

No. Comp.

Average

No. No.

Under 25

25 to 29

30 to 34

60 to 64

65 to 69

70 & up

40 & up

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

Cash Bal. Cash Bal. Comp.

Average

Cash Bal. Comp.

Average

Cash Bal.

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4. The resulting accumulated funding deficiency, if any, participants have account-based benefits (i.e., identical to

which is to be reported on line 9p. Scatter 1 in Alternative A).

• Scatter 2 — Provide participant count and average cash Label the worksheet “Schedule B, line 8b – Reorganization balance account for only those active participants with Status Worksheet.” account-based benefits. If the number of participants with

Line 8c. All multiemployer plans check “No.” Plans other than account-based benefits in a bin is fewer than 20, the average multiemployer plans check “Yes” only if (a) the plan is covered account should not be shown even if there are more than 20

by Title IV of ERISA and (b) the plan has active participants. active participants in this bin on Scatter 1.

If line 8c is “Yes,” attach a schedule of the active plan In general, information should be determined as of the participant data used in the valuation for this plan year. Use the valuation date. Average cash balance accounts may be same size paper as the Schedule B and the format shown determined as of either:

below and label the schedule “Schedule B, line 8c – 1. the valuation date or Schedule of Active Participant Data.” 2. the day immediately preceding the valuation date.

Expand this schedule by adding columns after the “5 to 9”

column and before the “40 & up” column for active participants Average cash balance accounts that are offset by amounts with total years of credited service in the following ranges: 10 to from another plan may be reported either as amounts prior to 14; 15 to 19; 20 to 24; 25 to 29; 30 to 34; and 35 to 39. For taking into account the offset, or as amounts after taking into each column, enter the number of active participants with the account the offset. Do not report the offset amount. For any specified number of years of credited service divided according other unusual or unique situation, the attachment should to age group. For participants with partial years of credited include an explanation of what is being provided. service, round the total number of years of credited service to

the next lower whole number. Years of credited service are the If the plan is a multiple-employer plan, complete one or more

years credited under the plan’s benefit formula. schedules of active-participant data in a manner consistent with

the computations for the funding requirements reported on line Plans reporting 1,000 or more active participants on line 9. See the specific instructions for Lines 9a through 9q. For 2b(3) must also provide average compensation data. For each example, if the funding requirements are computed as if each grouping, enter the average compensation of the active participating employer maintained a separate plan, attach a participants in that group. For this purpose, compensation is the separate schedule for each participating employer in the compensation taken into account for each participant under the multiple-employer plan. plan’s benefit formula, limited to the amount defined under

section 401(a)(17) of the Code. Do not enter the average Line 9. Shortfall Method. Under the shortfall method of

compensation in any grouping that contains fewer than 20 funding, the normal cost in the funding standard account is the

participants. charge per unit of production (or per unit of service) multiplied

by the actual number of units of production (or units of service) Cash balance plans (or any plans using characteristic code that occurred during the plan year. Each amortization 1C on line 8a of Form 5500), reporting 1,000 or more active installment in the funding standard account is similarly participants on line 2b(3) must also provide average cash calculated. balance account data, regardless of whether all active

participants have cash balance accounts. For each age/service Lines 9a through 9q. Multiple-Employer Plans. If the plan is

bin, enter the average cash balance account of the active a multiple-employer plan subject to the rules of Code section

participants in that bin. Do not enter the average cash balance 413(c)(4)(A) for which minimum funding requirements are to be

account in any age/service bin that contains fewer than 20 computed as if each employer were maintaining a separate

active participants. plan, complete one Schedule B for the plan. Also submit an

attachment completed in the same format as lines 9a through General Rule. In general, data to be shown in each age/ 9q showing, for this plan year, for each individual employer service bin includes: maintaining the plan, the development of the minimum 1. the number of active participants in the age/service bin, contribution requirement (taking into account the applicable 2. the average compensation of the active participants in normal cost, amortization charges and credits, and all other the age/service bin, and applicable charges or credits to the funding standard account 3. the average cash balance account of the active that would apply if the employer were maintaining a separate participant in the age/service bin, using $0 for anyone who has plan), and label the attachment “Schedule B, lines 9a through no cash balance account-based benefit. 9q – Development of Minimum Contribution Requirement

If the accrued benefit is the greater of a cash balance benefit or for Each Individual Employer.” Compute the entries on

some other benefit, average in only the cash balance account. Schedule B, except for the entries on lines 9a, 9h, 9o, and 9p,

as the sum of the appropriate individual amounts computed for If the accrued benefit is the sum of a cash balance account

benefit and some other benefit, average in only the cash each employer. Compute the entry on line 9a as the sum of the

balance account. For both the average compensation and the prior year’s funding deficiency, if any, for each individual

average cash balance account, do not enter an amount for age/ employer and the entry on line 9p as the sum of the separately

service bins with fewer than 20 active participants. computed funding deficiency, if any, for the current year for

each employer. Credit balance amounts on lines 9h and line 9o In lieu of the above, two alternatives are provided for are separately computed in the same manner. (Note that it is showing compensation and cash balance accounts. Each possible for the Schedule B to show both a funding deficiency alternative provides for two age/service scatters (one showing and a credit balance for section 413(c) plans. This could not compensation and one showing cash balance accounts) as appear for other plans.) follows:

Lines 9c and 9j. Amortization Charges and Credits. If there Alternative A: are any amortization charges or credits, attach a maintenance • Scatter 1 — Provide participant count and average schedule of funding standard account bases and label the compensation for all active participants, whether or not schedule “Schedule B, lines 9c and 9j – Schedule of participants have account-based benefits. Funding Standard Account Bases.” The attachment should • Scatter 2 — Provide participant count and average cash clearly indicate the type of base (i.e., original unfunded liability, balance account for all active participants, whether or not amendments, actuarial losses, etc.), the outstanding balance of participants have account-based benefits. each base, the number of years remaining in the amortization

Alternative B: period, and the amortization amount. If bases were combined in

• Scatter 1 — Provide participant count and average the current year, the attachment should show information on

compensation for all active participants, whether or not bases both prior to and after the combining of bases.

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The outstanding balance and amortization charges and Line 9q. Reconciliation Account. The reconciliation account

credits must be calculated as of the valuation date for the plan is made up of those components that upset the balance

year. equation of Treasury Regulation section 1.412(c)(3)-1(b).

Valuation assets should not be adjusted by the reconciliation Note. If an election was made under Code section 412(b)(7)(f)

to defer a portion of an amount otherwise determined under account balance when computing the required minimum

funding. section 412(b)(2)(B)(iv), include an attachment describing this

calculation and label the schedule “Schedule B, line 9c – Line 9q(1). The accumulation of additional funding charges for

Deferral of Charge for Portion of Net Experience Loss.” prior plan years must be included. Enter the sum of line 9q(1)

(increased with interest at the valuation rate to the first day of Line 9c(2). Amortization for funding waivers must be based on the current plan year) and line 9f, both from the prior year’s the interest rate provided in Section 412(d) (“mandated rate”). Schedule B (Form 5500). Line 9d. Interest as Applicable. Interest as applicable should Line 9q(2). The accumulation of additional interest charges be charged to the last day of the plan year. The mandated rates due to late or unpaid quarterly installments for prior plan years must be used when calculating interest on any amortization must be included. Enter the sum of line 9q(2) (increased with charges for funding waivers. interest at the valuation rate to the first day of the current plan

Line 9e. If the funded current liability percentage for the year) and line 9e, both from the prior year’s Schedule B (Form

preceding year reported in line 4a is at least 100%, quarterly 5500).

contributions are not required for the current plan year. Line 9q(3)(a). If a waived funding deficiency is being amortized

Interest is charged for the entire period of underpayment. at an interest rate that differs from the valuation rate, enter the

Refer to IRS Notice 89-52, 1989-1 C.B. 692, for a description of prior year’s “reconciliation waiver outstanding balance”

how this amount is calculated. increased with interest at the valuation rate to the current

valuation date and decreased by the year end amortization Note. Notice 89-52 was issued prior to the amendment of amount based on the mandated interest rate. Enter the section 412(m)(1) by the Revenue Reconciliation Act of 1989. amounts as of the valuation date. Also, include in this line Rather than using the rate in the Notice, the applicable interest reconciliation amounts due to extensions of amortization rate for this purpose is the greater of: periods that have been approved by the IRS. 1. 175% of the Federal mid-term rate at the beginning of the Line 9q(4). Enter the sum of lines 9q(1), 9q(2), and 9q(3)(b) plan year, (each adjusted with interest at the valuation rate to the current 2. The rate used to determine the “RPA ’94” current liability, valuation date, if necessary). or

3. The valuation rate. Note. The net outstanding balance of amortization charges and

credits minus the prior year’s credit balance minus the amount

All other descriptions of the additional interest charge on line 9q(4) (each adjusted with interest at the valuation rate, if

contained in Notice 89-52 still apply. necessary) must equal the unfunded liability.

Line 9f. Enter the required additional funding charge from line Line 10. Contribution Necessary to Avoid Deficiency. Enter

12q. Check “N/A” if line 12 is not applicable. the amount from line 9p. However, if the alternative funding

standard account is elected and the accumulated funding Note. If an election was made under Code section 412(l)(12) to deficiency under that method is smaller than line 9p, enter such reduce the amount of contributions required under Code section amount (also see instructions for line 8b). For multiemployer 412(l)(1) (determined without regard to Code section 412(l)(12), plans in reorganization, see the instructions for line 8b. File include an attachment describing this calculation and label the Form 5330 with the IRS to pay the 10% excise tax (5% in the schedule “Schedule B, line 9f – Alternative Deficit case of a multiemployer plan) on the funding deficiency. Reduction Contribution.”

Line 11. In accordance with ERISA section 103(d)(3), attach a Line 9h. Note that the credit balance or funding deficiency at justification for any change in actuarial assumptions for the the end of “Year X” should be equal to the credit balance or current plan year and label the attachment “Schedule B, line funding deficiency at the beginning of “Year X+1.” If such credit 11 – Justification for Change in Actuarial Assumptions.” balances or funding deficiencies are not equal, attach an The preceding sentence applies for all plans. explanation and label the attachment “Schedule B, line 9h –

Explanation of Prior year Credit Balance/Funding The following instructions are applicable only to changes in

Deficiency Discrepancy.” current liability assumptions for plans (other than multiemployer For example, if the difference is

because contributions for a prior year that were not previously plans) subject to Title IV of ERISA that resulted in a decrease in

the unfunded current liability (UCL). If the current liability reported are received this plan year, attach a listing of the

amounts and dates of such contributions. assumptions (other than a change in the assumptions required

under Code section 412(l)(7)(C)) were changed for the current Line 9l(1). ERISA Full Funding Limitation. Instructions for plan year and such change resulted in a decrease in UCL, this line are reserved pending published guidance. approval for such a change may be required. However, if one of

Line 9l(2). “RPA ’94” Override. Instructions for this line are the following three conditions is satisfied with respect to a

reserved pending published guidance. change in assumptions for a plan year, then the plan sponsor is

not required to obtain approval from the IRS for such change(s): Line 9l(3). Full Funding Credit. Enter the excess of (1) the

accumulated funding deficiency, disregarding the credit balance Condition 1: Aggregate Unfunded Vested Benefits

and contributions for the current year, if any, over (2) the The aggregate unfunded vested benefits as of the close of greater of lines 9l(1) or 9l(2). the plan year preceding the year in which assumptions were

Line 9m(1). Waived Funding Deficiency Credit. Enter a changed (as determined under section 4006(a)(3)(E)(iii) of

credit for a waived funding deficiency for the current plan year ERISA) for the plan, and all other plans maintained by

contributing sponsors (as defined in section 4001(a)(13) of (Code section 412(b)(3)(C)). If a waiver of a funding deficiency

is pending, report a funding deficiency. If the waiver is granted ERISA) and members of such sponsor’s controlled group (as

after Form 5500 is filed, file an amended Form 5500 with an defined in section 4001(a)(14) of ERISA) which are covered by

amended Schedule B to report the funding waiver (see page 6 Title IV of ERISA (disregarding plans with no unfunded vested

of the benefits) is less than or equal to $50 million. Instructions for Form 5500).

Line 9m(2). Other Credits. Enter a credit in the case of a plan Condition 2: Amount of Decrease in UCL

for which the accumulated funding deficiency is determined The change in assumptions (other than a change required

under the funding standard account if such plan year follows a under Code section 412(l)(7)(C)) resulted in a decrease in the

plan year for which such deficiency was determined under the UCL of the plan for the plan year in which the assumptions

alternative minimum funding standard. were changed of less than or equal to $5 million.

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Condition 3: Amount of Decrease in UCL, and CL Before “RPA ’94” current liability. Enter the result to the nearest .01%

Change in Assumptions (e.g., 28.72%).

Although the change in assumptions (other than a change Line 12f. Enter the liability for any unpredictable contingent

event (other than events that occurred before the first plan year required under Code section 412(l)(7)(C)) resulted in a

decrease in the UCL of the plan for the plan year in which the beginning after 1988) that was included in line 12b, whether or

assumptions were changed which was greater than $5 million not such unpredictable contingent event has occurred.

and less than or equal to $50 million, the decrease was less Line 12g. Enter the outstanding balance of the unfunded old

than five percent of the current liability of the plan before such liability as of the valuation date. This is line 12(g) of the 2004

change. Schedule B reduced by the prior year’s amortization amount,

and adjusted for interest at the prior year’s current liability If the current liability assumptions for the plan have been interest rate from the prior year’s valuation date to the current changed, and such change requires approval of the Service, valuation date. The unfunded old liability (and therefore all its enter on an attachment the date(s) of the ruling letter(s) components) will be considered fully amortized in accordance granting approval and label the attachment “Schedule B, line with Q&A-7 of Rev. Rul. 96-20, 1996-1 C.B. 62. 11 – Change in Current Liability Assumptions Approval

Date.” Note. In the case of a collectively bargained plan, this amount

must be increased by the unamortized portion of any “unfunded If the current liability assumptions for the plan have been existing benefit increase liability” in accordance with Code changed, and such change would have required approval in the section 412(l)(3)(C). absence of satisfaction of one of the conditions outlined above, Line 12h. This amount is the unfunded new liability. It is enter on an attachment the number of the applicable condition recomputed each year. If a negative result is obtained, enter and the plan year for which it applies, and label the attachment zero. “Schedule B, line 11 – Change in Current Liability

Applicable Condition.” If condition 1 or 2 applies, also enter Line 12i. If the unfunded new liability is zero, enter zero for the

the amount of the decrease in UCL. Note that only one of the unfunded new liability amount. If the unfunded new liability is

conditions needs to be entered. greater than zero, first calculate the amortization percentage as

follows:

Specific Instructions for Part II 1. If the funded current liability percentage (line 12d) is less

than or equal to 60%, the amortization percentage is 30%. Line 12. Additional Required Funding Charge. There is no 2. If the current liability percentage exceeds 60%, the additional funding charge for plans that have 100 or fewer amortization percentage is determined by reducing 30% by the participants in the prior plan year (as defined under the Who product of 40% and the amount of such excess. Enter the Must File discussion for Schedule B). Do not complete Part II resulting amortization percentage to the nearest 0.01 percent. for such plans.

The unfunded new liability amount is equal to the Line 12a. A plan’s “Gateway %” is equal to the actuarial value above-calculated percentage of the unfunded new liability. of assets (line 1b(2), unreduced by any credit balance) divided

by the current liability computed with the highest allowable Line 12j. Enter the amortization amount for line 12g based on

interest rate (line 1d(2)(c)). If line 1d(2)(c) is not completed in the “RPA ’94” current liability interest rate (line 6a) in effect for

accordance with instructions for that line, use “RPA ’94” current the plan year and the following amortization period:

liability reported on line 1d(2)(a). There is no additional funding In general: For the 2005 plan year, the remaining amortization charge for plan years beginning in 2005 if the “Gateway %” is at period is 2 years. least 90%. In such cases, enter -0- on line 12q. There is no Special rule: In the case of a collectively bargained plan, the additional funding charge for plan years beginning in 2005 if amortization amount must be increased by the amortization of (a) the “Gateway %” (for 2005) is at least 80% but less than any “unfunded existing benefit increase liability” in accordance 90%, and (b) the “Gateway %” for the plan years beginning in with Code section 412(l)(3)(C)(ii). For any such amortization, 2004 and 2003 were at least 90%, or, the “Gateway %” for the the amortization period is equal to the remainder of the original plan years beginning in 2003 and 2002 were at least 90% (in 18-year period that applied when the amortization began. such case, enter -0- on line 12q). Base maintenance: On a separate attachment, show the initial Note. Section 1508 of TRA ’97 provided transition rules for amount of each DRC amortization base (as defined in Rev. Rul. certain plans sponsored by companies engaged primarily in the 96-20) being amortized under the general or special rule, the interurban or interstate passenger bus service that have outstanding balance of each DRC amortization base, the “Gateway” percentages that are greater than certain prescribed number of years remaining in the amortization period, and the minimum percentages. These transition rules are effective for amortization amount (with the valuation date as the due date of such plans for any plan year beginning after 1996 and before the amortization amount), and label the schedule “Schedule B,

2010. If one of these transition rules is used, line 12a should be line 12j – Schedule of DRC Bases.” It is not necessary to list completed, and, if appropriate, a zero should be entered in line separately the unfunded old liability base and the additional 12q. Attach a demonstration of the use of this transition rule to unfunded old liability base. the Schedule B and label the attachment “Schedule B, line Line 12l. Enter the result determined by subtracting the 12a – TRA ’97 Transition Rule.” amortization credits (line 9j) from the sum of the normal cost

Note. Section 101(d)(2) of the Pension Funding Equity Act of and the amortization charges (lines 9b, 9c(1) and 9c(2)). Use

2004 provided a lookback rule for the purpose of applying the valuation date as the due date for the amortization amounts.

section 412(l)(9)(B)(ii) of the Internal Revenue Code of 1986, If entering a negative number, enter a minus sign “–” to the left

for plan year beginning after December 31, 2003. If this of the number.

lookback rule is used, attach a demonstration of the use of this Line 12m. Unpredictable Contingent Event Amount. Line lookback rule to the Schedule B and label the attachment 12m does not apply to the unpredictable contingent event “Schedule B, line 12a – Volatility Lookback Rule.” benefits (and related liabilities) for an event that occurred before

Line 12c. Enter the actuarial value of assets (line 1b(2)), the first plan year beginning after December 31, 1988.

reduced by the prior year’s credit balance (line 9h). If line 9h Line 12m(1). Enter the total of all benefits paid during the plan was determined at a date other than the valuation date, adjust year that were paid solely because an unpredictable event the credit balance for interest at the valuation rate to the current occurred.

valuation date before subtracting. Do not add a prior year’s Line 12m(4). Amortization of All Unpredictable Contingent funding deficiency to the assets. Event Liabilities. Amortization should be based on the “RPA

Line 12d. Funded Current Liability Percentage. Enter the ’94” current liability interest rate (line 6a), using the valuation

actuarial value of the assets expressed as a percentage of date as the due date. The initial amortization period for each

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base established in a plan year is generally 7 years; however, balance (or adding any debit balance) in the plan’s funding

see Code section 412(l)(5) for special rules. standard account as of the end of the prior plan year, adjusted

Note. An alternative calculation of an unpredictable contingent with interest to the valuation date at the valuation interest rate,

amount is available for the first year of amortization. Refer to (2) subtracting the disbursements from the plan (including

Code section 412(l)(5)(D) for a description. If this alternative single sum distributions) expected to be paid after the valuation

calculation is used, include an attachment describing the date but prior to the end of the plan year, (3) adding the

calculation and label the schedule “Schedule B, line 12m(4) – charges to the funding standard account as maintained under

Alternative UCEB Calculation.” Code section 412(b) for the plan year (other than the additional

funding charge under Code section 412(I)), and (4) subtracting Line 12m(5). “RPA ’94” Additional Amount. Subtract line the credits to the funding standard account as maintained under 12g from line 12e. If the result is zero or less than zero, enter Code section 412(b) for the plan year (other than credits under -0-. If the result is a positive number, multiply the result by the Code sections 412(b)(3)(A) and 412(b)(3)(C)). The actuarial percentage used to calculate line 12i. Enter the excess, if any, value of assets and the adjustments described above are of this amount over the amount on line 12i. determined as of the valuation date, and each is appropriately Line 12n. Preliminary charge. Adjust with interest using the adjusted with interest to the end of the plan year at the “RPA ’94” current liability interest rate. valuation interest rate. The result of the calculation of adjusted

Line 12o. Contributions needed to increase current liability assets may be a negative number.

percentage to 100%. This amount is equal to the excess, if Line 12q. If the plan had 150 or more participants on each day any, of the “adjusted current liability” over the “adjusted assets.” of the preceding plan year, enter 100%. If the plan had less The adjusted current liability is equal to the excess of (1) the than 150 participants but more than 100 participants on each sum of lines 1d(2)(a) and 1d(2)(b), over (2) line 1d(2)(d), each day of the preceding plan year, enter the applicable percentage. adjusted to the end of the plan year using the “RPA ’94” current The same participant aggregation rule described in the liability interest rate. Note that a special rule under Code section instructions for line 12 applies. The applicable percentage is 412(b)(5)(B)(ii)(II) provides that, for the 2005 plan year, the calculated as follows: (1) Determine the greatest number of interest rate used to determine current liability must not be participants on any day during the preceding plan year in above and must not be more than 10 percent below the excess of 100. (2) The applicable percentage is 2% times the weighted average of the rates of interest, as set forth by the number of such participants in excess of 100. The percentage Treasury department, on amounts invested conservatively in should not exceed 100%. The amount on line 12q is also the long-term investment-grade corporate bonds during the 4-year amount entered on line 9f.

period ending on the last day before the beginning of the plan

year.

The adjusted assets are equal to the actuarial value of

assets for the plan year adjusted by (1) subtracting any credit

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