Department of the Treasury Department of Labor Pension Benefit

Internal Revenue Service Employee Benefits Guaranty Corporation

Security Administration

2006

Instructions for

Schedule B (Form 5500)

Actuarial Information

Code section references are to the Internal Revenue Code All defined benefit plans, regardless of size or type, must

unless otherwise noted. ERISA refers to the Employee complete and file Part I. Part II must be filed for all plans other

Retirement Income Security Act of 1974. than those specified in 1 and 2 below:

1. Part II should not be filed for multiemployer plans for General Instructions which box 1 in line E is checked.

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

The employer or plan administrator of a defined benefit plan

that is subject to the minimum funding standards (see Code In addition, please note that “TRA ’97” refers to the Taxpayer

section 412 and Part 3 of Title I of ERISA) must complete this Relief Act of 1997 and “RPA ’94” refers to the Retirement

schedule as an attachment to the Form 5500. Protection Act of 1994.

Note. (1) For split-funded plans, the costs and contributions Note. The Schedule B does not have to be filed with the Form reported on Schedule B should include those relating to both 5500-EZ (in accordance with the instructions for Form 5500-EZ trust funds and insurance carriers. (2) For plans with funding under the “What To File” section); however, the funding standard account amortization charges and credits see the standard account for the plan must continue to be maintained, instructions for lines 9c, 9j, and 12j, as applicable, regarding even if the Schedule B is 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

funding standard, and the waiver is currently being amortized, Accordingly, the Schedule B is not required to be filed for any

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

Schedule B must be attached to Form 5500 but it need not be whether because assets remain in the plan’s related trust (see

signed by an enrolled actuary. Rev. Rul. 89-87, 1989-2 C.B. 81) or for any other reason (e.g.,

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

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

must be completed for ALL plans. If the Schedule B is attached Statement by Enrolled Actuary to a Form 5500, lines A, B, C, and D should include the same An enrolled actuary must sign Schedule B. The signature of the information as reported in Part II of the Form 5500. You may enrolled actuary may be qualified to state that it is subject to abbreviate the plan name (if necessary) to fit in the space attached qualifications. See Treasury Regulation section provided. 301.6059-1(d) for permitted qualifications. If the actuary has not

Do not use a social security number in line D in lieu of an fully reflected any final or temporary regulation, revenue ruling,

EIN. The Schedule B and its attachments are open to public or notice promulgated under the statute in completing the

inspection if filed with a Form 5500, and the contents are public Schedule B, check the box on the last line of page 1. If this box

information and are subject to publication on the Internet. is checked, indicate on an attachment whether an accumulated

Because of privacy concerns, the inclusion of a social security funding deficiency or a contribution that is not wholly deductible

number on this Schedule B or any of its attachments may result would result if the actuary had fully reflected such regulation,

in the rejection of the filing. revenue ruling, or notice, and label this attachment “Schedule

B – Statement by Enrolled Actuary.” A stamped or machine EINs may be obtained by applying for one on Form SS-4, produced signature is not acceptable. The most recent Application for Employer Identification Number, as soon as enrollment number must be entered in line G. In addition, the possible. You can obtain Form SS-4 by calling actuary may offer any other comments related to the 1-800-TAX-FORM (1-800-829-3676) or at the IRS Web Site at information contained in Schedule B.

www.irs.gov. The EBSA does not issue EINs.

Attachments Check the box in line F if the plan has 100 or fewer All attachments to the Schedule B must be properly identified, participants in the prior plan year. A plan has 100 or fewer and must include the name of the plan, plan sponsor’s EIN, and participants in the prior plan year only if there were 100 or fewer plan number. Put “Schedule B” and the line item to which the participants (both active and nonactive) on each day of the schedule relates at the top of each attachment. When preceding plan year, taking into account participants in all assembling the package for filing, you can place attachments defined benefit plans maintained by the same employer (or any for a schedule either directly behind that schedule or at the end member of such employer’s controlled group) who are also of the filing. employees of that employer or member. For this purpose,

participants who are solely members of a multiemployer plan Do not include attachments that contain a visible social

are not counted. Nonactive participants include vested security number. The Schedule B and its attachments are open

terminated and retired employees. to public inspection, and the contents are public information and

Cat. No. 13513I
are subject to publication on the Internet. Because of privacy At the time these instructions were published, legislation

concerns, the inclusion of a visible social security number on an was pending which could affect the interest rate used to

attachment may result in the rejection of the filing. CAUTION calculate the current liability.

!

Specific Instructions for Part I The “RPA ’94” current liability must be computed using the

1983 G.A.M. mortality table for non-disabled lives published in

Line 1. All entries must be reported as of the valuation date. Rev. Rul. 95-28, 1995-1 C.B. 74, and may be computed taking

Line 1a. Actuarial Valuation Date. The valuation for a plan into account the mortality tables for disabled lives published in

year may be as of any date in the plan year, including the first Rev. Rul. 96-7, 1996-1 C.B. 59.

or last day of the plan year. Valuations must be performed Each other actuarial assumption used in calculating the within the period specified by ERISA section 103(d) and Code “RPA ’94” current liability must be the same assumption used section 412(c)(9). for calculating other costs for the funding standard account. See

Line 1b(1). Current Value of Assets. Enter the current value Notice 90-11, 1990-1 C.B. 319. The actuary must take into

of assets as of the valuation date. The current value is the account rates of early retirement and the plan’s early retirement

same as the fair market value. Do not adjust for items such as and turnover provisions as they relate to benefits, where these

the existing credit balance or the outstanding balances of would significantly affect the results. Regardless of the

certain amortization bases. Contributions designated for 2006 valuation date, “RPA ’94” current liability is computed taking into

should not be included in this amount. Note that this entry may account only credited service through the end of the prior plan

be different from the entry in line 2a. Such a difference may year. No salary scale projections should be used in these

result, for example, if the valuation date is not the first day of computations. Do not include the expected increase in current

the plan year, or if insurance contracts are excluded from liability due to benefits accruing during the plan year reported in

assets reported on line 1b(1) but not on line 2a. line 1d(2)(b) in these computations.

 Rollover amounts or other assets held in individual accounts Line 1d(2)(b). Expected Increase in Current Liability. Enter

that are not available to provide defined benefits under the plan the amount by which the “RPA ’94” current liability is expected

should not be included on line 1(b)(1) regardless of whether to increase due to benefits accruing during the plan year on

they are reported on the 2006 Schedule H (Form 5500) (line 1l, account of credited service and/or salary changes for the

column (a)) or Schedule I (Form 5500) (line 1c, column (a)), or, current year. One year’s salary scale may be reflected.

alternatively, the 2006 Form 5500-EZ (line 11a, column (a): Line 1d(2)(c). Current Liability Computed at Highest total assets at the beginning of the year). Additionally, asset Allowable Interest Rate. Enter the current liability computed and liability amounts must be determined in a consistent using the highest allowable interest rate (105% of the weighted manner. Therefore, if the value of any insurance contracts have average interest rate during the 4-year period ending on the last been excluded from the amount reported on line 1b(1), liabilities day before the beginning of the 2006 plan year). All other satisfied by such contracts should also be excluded from the assumptions used should be identical to those used for lines liability values reported on lines 1c(1), 1c(2), and 1d(2). 1d(2)(a) and (b). It is not necessary to complete line 1d(2)(c) if Line 1b(2). Actuarial Value of Assets. Enter the value of the plan is a multiemployer plan or if the plan had 100 or fewer assets determined in accordance with Code section 412(c)(2) participants in the prior plan year. Whether or not a plan had or ERISA section 302(c)(2). Do not adjust for items such as the 100 or fewer participants in the prior plan year is determined

existing credit balance or the outstanding balances of certain according to the instructions under the Who Must File

amortization bases, and do not include contributions designated discussion for Schedule B. This line need not be completed if

for 2006 in this amount. the actuarial value of assets (line 1b(2)) divided by the “RPA

Line 1c(1). Accrued Liability for Immediate Gain Methods. ’94” current liability (line 1d(2)(a)) is greater than or equal to

Complete this line only if you use an immediate gain method 90%. However, if this line is not completed, sufficient records

(see Rev. Rul. 81-213, 1981-2 C.B. 101, for a definition of should be retained so that the current liability amount that would

immediate gain method). otherwise have been entered on this line can be computed at a

later time if required. Lines 1c(2)(a), (b), and (c). Information for Plans Using

Spread Gain Methods. Complete these lines only if you use a Line 1d(2)(d). Expected Release from “RPA ’94” Current

spread gain method (see Rev. Rul. 81-213 for a definition of Liability for the Plan Year. Do not complete this line if Code

spread gain method). section 412(l) does not apply to the plan for this plan year under

Line 1c(2)(a). Unfunded Liability for Methods with Bases. Code sections 412(l)(1), 412(l)(6), or 412(l)(9). Enter the

Complete this line only if you use the frozen initial liability or expected release from “RPA ’94” current liability on account of

disbursements (including single sum distributions) from the plan attained age normal cost method. expected to be paid after the valuation date but prior to the end Lines 1c(2)(b) and (c). Entry Age Normal Accrued Liability of the plan year (see also Q&A-7 of Rev. Rul. 96-21). and Normal Cost. For spread gain methods, the full funding Line 1d(3). Expected Plan Disbursements. Enter the amount limitation is calculated using the entry age normal method (see

Rev. Rul. 81-13, 1981-1 C.B. 229). of plan disbursements expected to be paid for the plan year.

Line 1d(1). Amount Excluded from Current Liability. In Line 2. All entries must be reported as of the beginning of the

computing current liability for purposes of Code section 412(l) 2006 plan year. Lines 2a and 2b should include all assets and

(but not for purposes of section 412(c)(7)), certain service is liabilities under the plan except for assets and liabilities

disregarded under Code section 412(l)(7)(D) and ERISA attributable to: (1) rollover amounts or other amounts in

section 302(d)(7)(D). If the plan has participants to whom those individual accounts that are not available to provide defined

provisions apply, only a percentage of the years of service benefits, or (2) benefits for which an insurer has made an

before such individuals became participants in the plan is taken irrevocable commitment as defined in 29 CFR 4001.2. The

into account. Enter the amount excluded from “RPA ’94” current pre-participation service phase-in of Internal Revenue Code

liability. If an employer has made an election under section section 412(l)(7)(D) and ERISA section 302(d)(7)(D) will apply

412(l)(7)(D)(iv) not to disregard such service, enter zero. Note in computing the liabilities shown in line 2b, unless the

that such an election, once made, cannot be revoked without employer has made an election under Code section

the consent of the Secretary of the Treasury. 412(l)(7)(D)(iv).

Line 1d(2)(a). “RPA ’94” Current Liability. All plans Line 2a. Current Value of Assets. Enter the current value of

regardless of the number of participants must provide the net assets as of the first day of the plan year. Except for plans

information indicated in accordance with these instructions. The with excluded assets as described above, this entry should be

interest rate used to compute the “RPA ’94” current liability the same as reported on the 2006 Schedule H (Form 5500)

must be in accordance with guidelines issued by the IRS, using (line 1l, column (a)) or Schedule I (Form 5500) (line 1c, column

the 90% to 105% interest rate corridor of Code section (a)), or, alternatively, the 2006 Form 5500-EZ (line 11a, column

412(l)(7)(C)(i) for plan years beginning in 2006. (a): total assets at the beginning of the year). Note that

-2-
contributions designated for the 2006 plan year are not included Employee Benefit Plans, with the IRS to pay the 10% excise

on those lines. tax(es) if there is a failure to pay the liquidity shortfall by the

Line 2b. “RPA ’94” Current Liability (beginning of plan required due date, unless a waiver of the 10% tax under Code

year). Enter the “RPA ’94” current liability as of the first day of section 4971(f) has been granted.

the plan year. Do not include the expected increase in current Line 5. Actuarial Cost Method. Enter only the primary method liability due to benefits accruing during the plan year. See the used. If the plan uses one actuarial cost method in one year as instructions for line 1d(2)(a) for actuarial assumptions used in the basis of establishing an accrued liability for use under the determining “RPA ’94” current liability. frozen initial liability method in subsequent years, answer as if

Column (1)—Enter the number of participants and the frozen initial liability method was used in all years. The

beneficiaries as of the beginning of the plan year. If the current projected unit credit method is included in the “Accrued benefit

liability figures are derived from a valuation that follows the first (unit credit)” category of line 5c. If a method other than a

day of the plan year, the participant and beneficiary count method listed in lines 5a through 5g is used, check the box for

entries should be derived from the counts used in that valuation line 5h and specify the method. For example, if a modified

in a manner consistent with the derivation of the current liability individual level premium method for which actuarial gains and

reported in columns (2) and (3). 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 Column (2)—Include only the portion of the current liability method, check the appropriate box for the underlying actuarial attributable to vested benefits. cost method used to determine the annual computation charge. Column (3)—Include the current liability attributable to all

benefits, both vested and nonvested. Changes in funding methods include changes in actuarial

cost method, changes in asset valuation method, and changes Line 2c. This calculation is required under ERISA section in the valuation date of plan costs and liabilities or of plan 103(d)(11). Do not complete if line 2a divided by line 2b(4), assets. Changes in the funding method of a plan include not column (3), is 70% or greater. only changes to the overall funding method used by the plan, Line 3. Contributions Made to Plan. Show all employer and but also changes to each specific method of computation used employee contributions for the plan year. Include employer in applying the overall method. Generally, these changes contributions made not later than 21

/2 months (or the later date require IRS approval. If the change was made pursuant to Rev. allowed under Code section 412(c)(10) and ERISA section Proc. 2000-40, 2000-2 C.B. 357, check “Yes” in line 5j. If 302(c)(10)) after the end of the plan year. Show only approval was granted by either an individual ruling letter or a contributions actually made to the plan by the date Schedule B class ruling letter for this plan, enter the date of the applicable is signed. Certain employer contributions must be made in ruling letter in line 5k. Note that the plan sponsor’s agreement quarterly installments. See Code section 412(m). Note that to a change in funding method (made pursuant to Rev. Proc. contributions made to meet the liquidity requirement of Code 2000-40 or a class ruling letter) should be reported on line 7 of section 412(m)(5) should be reported. Schedule R (Form 5500).

Add the amounts in both columns (b) and (c) and enter both Line 6. Actuarial Assumptions. If gender-based assumptions results on the total line. All contributions must be credited are used in developing plan costs, enter those rates where toward a particular plan year. appropriate in line 6. Note that requests for gender-based cost Line 4a. Quarterly Contributions. In accordance with “RPA information do not suggest that gender-based benefits are ’94,” only plans that have a funded current liability percentage legal. If unisex tables are used, enter the values in both “Male” (as provided in Rev. Rul. 95-31, 1995-1 C.B. 76) for the and “Female” lines. Complete all blanks. Check “N/A” if not preceding plan year of less than 100 percent are subject to the applicable. quarterly contribution requirement of Code section 412(m) and Attach a statement of actuarial assumptions (if not fully ERISA section 302(e). For 2006, the funded current liability described by line 6) and actuarial methods used to calculate the percentage for the preceding plan year is equal to line 1b(2) figures shown in lines 1 and 9 (if not fully described by line 5), (actuarial value of assets) divided by line 1d(2)(a) (“RPA ’94” and label the statement “Schedule B, line 6 – Statement of current liability), both lines as reported on the 2005 Schedule B Actuarial Assumptions/Methods.” The statement must (Q&A-3, 4, and 5 of Rev. Rul. 95-31, also provide guidance on describe all actuarial assumptions used to determine the this computation). If line 1d(2)(a) is zero for 2005 or if box B(1) liabilities. For example, the statement for non-traditional plans of Part I of Form 5500 is checked, enter 100%. (e.g., cash balance plans) must include the assumptions used Note. Section 101(d)(2) of the Pension Funding Equity Act of to convert balances to annuities. 2004 provided a lookback rule for the purpose of applying

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

status of the plan (e.g., eligibility frozen, service/pay frozen, rule is used, attach a demonstration of the use of this lookback

rule to the Schedule B and label the attachment “Schedule B, benefits frozen), optional forms of benefits, special plan

provisions, including those that apply only to a subgroup of line 4a – 412(m)(1) Lookback Rule.” employees (e.g., those with imputed service), supplemental Line 4b. Multiemployer plans, plans with funded current liability benefits, an identification of benefits not included in the percentages (as provided in Code section 412(m)(1)) of 100 valuation (e.g., shutdown benefits), a description of any percent or more for the preceding plan year, and plans that on significant events that occurred during the year, a summary of every day of the preceding plan year had 100 or fewer any changes in principal eligibility or benefit provisions since the participants (as defined under the Who Must File discussion for last valuation, a description (or reasonably representative Schedule B) are not subject to the liquidity requirement of Code sample) of plan early retirement factors, and any change in section 412(m)(5) and ERISA section 302(e)(5) and should not actuarial assumptions or cost methods and justifications for any complete this line. See Q&As 7 through 17 of Rev. Rul. 95-31 such change (see section 103(d) of ERISA), and label the for guidance on the liquidity requirement. Note that a summary “Schedule B, line 6 – Summary of Plan certification by the enrolled actuary must be attached if the Provisions.” special rule for nonrecurring circumstances is used, and label

the certification “Schedule B, line 4b – Liquidity Also, include any other information needed to disclose the

Requirement Certification” (see Code section actuarial position of the plan fully and fairly.

412(m)(5)(E)(ii)(II) and Q&A-13 of Rev. Rul. 95-31). Line 6a. “RPA ’94” Current Liability Interest Rate. Enter the

If the plan has a liquidity shortfall for any quarter of the plan interest rate used to determine “RPA ’94” current liability.

year (see Q&A-10 of Rev. Rul. 95-31), enter the amount of the Generally, the interest rate used must not fall outside the

liquidity shortfall for each such quarter. If the plan was subject corridor of 90% to 105% of the weighted average interest rate

to the liquidity requirement, but did not have a liquidity shortfall, (see Code section 412(l)(7)(C)(i)). The rate used must be in

enter zero. File Form 5330, Return of Excise Taxes Related to accordance with the guidelines issued by the IRS. See Notice

-3-
90-11 and Rev. Rul. 96-21. Enter rate to the nearest .01 standard account (see instructions for line 8b). If the assumed

percent. rate varies with the year, enter the weighted average of the

assumed rate for 20 years following the valuation date. Enter Line 6b. Weighted Average Retirement Age. If each rates to the nearest .01 percent. participant is assumed to retire at his/her normal retirement

age, enter the age specified in the plan as normal retirement Line 6f. Expense Loading. If there is no expense loading,

age. If the normal retirement age differs for individual enter -0-. For instance, there would be no expense loading

participants, enter the age that is the weighted average normal attributable to investments if the rate of investment return on

retirement age; do not enter “NRA.” Otherwise, enter the assets is adjusted to take investment expenses into account. If

assumed retirement age. If the valuation uses rates of there is a single expense loading not separately identified as

retirement at various ages, enter the nearest whole age that is pre-retirement or post-retirement, enter it under pre-retirement

the weighted average retirement age. On an attachment to and check “N/A” under post-retirement. Where expenses are

Schedule B, list the rate of retirement at each age and describe assumed other than as a percentage of plan costs or liabilities,

the methodology used to compute the weighted average enter the assumed pre-retirement expense as a percentage of

retirement age, including a description of the weight applied at the plan’s normal cost, and enter the post-retirement expense

each potential retirement age, and label the list “Schedule B, as a percentage of plan liabilities. If the normal cost of the plan

line 6b – Description of Weighted Average Retirement is zero, enter the assumed pre-retirement expense as a

Age.” percentage of the sum of the lines 9c(1) and 9c(2), minus line

9j. Enter rates to the nearest .1 percent. Line 6c. Check “Yes,” if the rates in the contract were used Line 6g. Annual Withdrawal Rates. Enter rates to the nearest (e.g., purchase rates at retirement). .01 percent. Enter the rate assumed for a new entrant to the Line 6d. Mortality Table. The 1983 G.A.M. mortality table plan at the age shown. Enter “S” before the rate if that rate is published in Rev. Rul. 95-28 must be used in the calculation of different for participants with the same age but longer service. “RPA ’94” current liability for non-disabled lives. The mortality Enter “U” before the rate if all participants of that age are tables published in Rev. Rul. 96-7 may be used in the assumed to experience the same withdrawal rates, regardless calculation of “RPA ’94” current liability for disabled lives. Enter of service. Enter “C” before the rate if criteria other than service the mortality table code for non-disabled lives used for valuation apply to the rates used. purposes as follows: Line 6h. Salary Scale. If a uniform level annual rate of salary

increase is used, enter that annual rate. Otherwise, enter the Mortality Table Code level annual rate of salary increase that is equivalent to the

rate(s) of salary increase used. Enter the annual rate as a 1951 Group Annuity ........................... 1 percentage to the nearest .01 percent, used for a participant

1971 Group Annuity Mortality (G.A.M.) from age 25 to assumed retirement age. If the plan’s benefit .............. 2

formula is not related to compensation, check “N/A.” 1971 Individual Annuity Mortality (I.A.M.) ............. 3 Line 6i. Estimated Investment Return – Actuarial Value.

UP-1984 .................................. 4 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 I.A.M. ................................. 5 this purpose, the rate of return is determined by using the

1983 G.A.M. ................................ 6 formula 2I/(A + B - I), where I is the dollar amount of the

investment return under the asset valuation method used for 1983 G.A.M. (solely per Rev. Rul. 95-28) ............. 7 the plan, A is the actuarial value of the assets one year ago,

UP-1994 .................................. 8 and B is the actuarial value of the assets on the current

valuation date. Enter rates to the nearest .1 percent. If entering Other ..................................... 9 a negative number, enter a minus sign “–” to the left of the

None ..................................... 0 number.

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

Code 6 includes all sex-distinct versions of the 1983 G.A.M. result of using the formula does not represent the true

estimated rate of return on the actuarial value of plan assets for table other than the table published in Rev. Rul. 95-28. Thus,

for example, Code 6 also would include the 1983 G.A.M. the 1-year period ending on the valuation date. The actuary

male-only table used for males, where the 1983 G.A.M. may attach a statement showing both the actuary’s estimate of

male-only table with a 6-year setback is used for females. Code the rate of return and the actuary’s calculations of that rate, and

9 includes mortality tables other than those listed in Codes 1 label the statement “Schedule B, line 6i – Estimated Rate of

through 8, including any unisex version of the 1983 G.A.M. Investment Return (Actuarial Value).”

table. Line 6j. Estimated Investment Return – Current (Market)

Where an indicated table consists of separate tables for Value. Enter the estimated rate of return on the current value

males and females, add F to the female table (e.g., 1F). When of plan assets for the 1-year period ending on the valuation

a projection is used with a table, follow the code with “P” and date. (The current value is the same as the fair market value —

the year of projection (omit the year if the projection is unrelated see line 1(b)(1) instructions.) For this purpose, the rate of return

to a single calendar year); the identity of the projection scale is determined by using the formula 2I/(A + B - I), where I is the

should be omitted. When an age setback or set forward is used, dollar amount of the investment return, A is the current value of

indicate with “-” or “+” and the number of years. For example, if the assets one year ago, and B is the current value of the

assets on the current valuation date. Enter rates to the nearest for females the 1951 Group Annuity Table with Projection C to

1971 is used with a 5-year setback, enter “1P71-5.” If the table .1 percent. If entering a negative number, enter a minus sign

(“–”) to the left of the number. is not one of those listed, enter “9” with no further notation. If

the valuation assumes a maturity value to provide the Note. Use the above formula even if the actuary feels that the

post-retirement income without separately identifying the result of using the formula does not represent the true

mortality, interest and expense elements, under estimated rate of return on the current value of plan assets for

“post-retirement,” enter on line 6d the value of $1.00 of monthly the 1-year period ending on the valuation date. The actuary

pension beginning at the age shown on line 6b, assuming the may attach a statement showing both the actuary’s estimate of

normal form of annuity for an unmarried person; in this case the rate of return and the actuary’s calculations of that rate, and

check “N/A” on lines 6e and 6f. label the statement “Schedule B, line 6j – Estimated Rate of

Investment Return (Current Value).” Line 6e. Valuation Liability Interest Rate. Enter the

assumption as to the expected interest rate (investment return) Line 7. New Amortization Bases Established. List all new

used to determine all the calculated values except for current amortization bases established in the current plan year (before

liability and liabilities determined under the alternative funding the combining of bases, if bases were combined). Use the

-4-
following table to indicate the type of base established, and standard account is used and be labeled “Schedule B, line 8b

enter the appropriate code under “Type of Base.” List – Alternative Minimum Funding Standard Account.” The

amortization bases and charges and/or credits as of the worksheet should show:

valuation date. Bases that are considered fully amortized 1. The prior year alternate funding deficiency (if any). because there is a credit for the plan year on line 9l(3) should 2. Normal cost.

be listed. If entering a negative number, enter a minus sign “–” 3. Excess, if any, of the value of accrued benefits over the to the left of the number. market value of assets.

4. Interest on 1, 2, and 3 above.

Code Type of Amortization Base 5. Employer contributions (total from columns (b) of line 3 of

Schedule B). 1 Experience gain or loss 6. Interest on 5 above. 2 Shortfall gain or loss 7. Funding deficiency: if the sum of 1 through 4 above is

3 Change in unfunded liability due to plan amendment greater than the sum of 5 and 6 above, enter the difference.

4 Change in unfunded liability due to change in

actuarial assumptions If the entry age normal cost method was not used as the

5 Change in unfunded liability due to change in valuation method, the plan may not switch to the alternative

minimum funding standard account for this year. Additionally, in actuarial cost method

line 3 of the worksheet, the value of accrued benefits should 6 Waiver of the minimum funding standard exclude benefits accrued for the current plan year. The market 7 Switchback from alternative funding standard value of assets should be reduced by the amount of any account contributions for the current plan year. 8 Initial unfunded liability (for new plan) 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 1. The amounts considered contributed by employers, report the waiver or extension approval (also see instructions 2. Any amount waived by the IRS, for line 9m(1)). 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

4. The resulting accumulated funding deficiency, if any,

which is to be reported on line 9p. Code Method or Rule

Label the worksheet “Schedule B, line 8b – Reorganization 1 Shortfall method Status Worksheet.” 2 Alternative funding standard account (AFSA) Line 8c. All multiemployer plans check “No.” Plans other than 3 Shortfall method used with AFSA multiemployer plans check “Yes” only if (a) the plan is covered 4 Plan is in reorganization status by Title IV of ERISA and (b) the plan has active participants. 5 Shortfall method used when in reorganization status If line 8c is “Yes,” attach a schedule of the active plan

participant data used in the valuation for this plan year. Use the

Shortfall Method: Only certain collectively bargained plans same size paper as the Schedule B and the format shown

may elect the shortfall funding method (see regulations under below and label the schedule “Schedule B, line 8c –

Code section 412). Advance approval from the IRS for the Schedule of Active Participant Data.” election of the shortfall method of funding is NOT required if it is Expand this schedule by adding columns after the “5 to 9” first adopted for the first plan year to which Code section 412 column and before the “40 & up” column for active participants applies. However, advance approval from the IRS is required if with total years of credited service in the following ranges: 10 to the shortfall funding method is adopted at a later time, if a 14; 15 to 19; 20 to 24; 25 to 29; 30 to 34; and 35 to 39. For specific computation method is changed, or if the shortfall each column, enter the number of active participants with the method is discontinued. specified number of years of credited service divided according

Alternative Minimum Funding Standard Account: A to age group. For participants with partial years of credited

worksheet must be attached if the alternative minimum funding service, round the total number of years of credited service to

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.

-5-
the next lower whole number. Years of credited service are the 9. See the specific instructions for Lines 9a through 9q. For

years credited under the plan’s benefit formula. example, if the funding requirements are computed as if each

Plans reporting 1,000 or more active participants on line participating employer maintained a separate plan, attach a

separate schedule for each participating employer in the 2b(3) must also provide average compensation data. For each multiple-employer plan. grouping, enter the average compensation of the active

participants in that group. For this purpose, compensation is the Line 9. Shortfall Method. Under the shortfall method of

compensation taken into account for each participant under the funding, the normal cost in the funding standard account is the

plan’s benefit formula, limited to the amount defined under charge per unit of production (or per unit of service) multiplied

section 401(a)(17) of the Code. Do not enter the average by the actual number of units of production (or units of service)

compensation in any grouping that contains fewer than 20 that occurred during the plan year. Each amortization

participants. installment in the funding standard account is similarly

Cash balance plans (or any plans using characteristic code calculated.

1C on line 8a of Form 5500), reporting 1,000 or more active Lines 9a through 9q. Multiple-Employer Plans. If the plan is

participants on line 2b(3) must also provide average cash a multiple-employer plan subject to the rules of Code section

balance account data, regardless of whether all active 413(c)(4)(A) for which minimum funding requirements are to be

participants have cash balance accounts. For each age/service computed as if each employer were maintaining a separate

bin, enter the average cash balance account of the active plan, complete one Schedule B for the plan. Also submit an

participants in that bin. Do not enter the average cash balance attachment completed in the same format as lines 9a through

account in any age/service bin that contains fewer than 20 9q showing, for this plan year, for each individual employer

active participants. maintaining the plan, the development of the minimum

General Rule. contribution requirement (taking into account the applicable In general, data to be shown in each age/ normal cost, amortization charges and credits, and all other service bin includes:

applicable charges or credits to the funding standard account 1. the number of active participants in the age/service bin, that would apply if the employer were maintaining a separate 2. the average compensation of the active participants in plan), and label the attachment “Schedule B, lines 9a through the age/service bin, and 9q – Development of Minimum Contribution Requirement 3. the average cash balance account of the active for Each Individual Employer.” Compute the entries on participant in the age/service bin, using $0 for anyone who has Schedule B, except for the entries on lines 9a, 9h, 9o, and 9p, no cash balance account-based benefit. as the sum of the appropriate individual amounts computed for

If the accrued benefit is the greater of a cash balance benefit or each employer. Compute the entry on line 9a as the sum of the

some other benefit, average in only the cash balance account. prior year’s funding deficiency, if any, for each individual

If the accrued benefit is the sum of a cash balance account employer and the entry on line 9p as the sum of the separately

benefit and some other benefit, average in only the cash computed funding deficiency, if any, for the current year for

balance account. For both the average compensation and the each employer. Credit balance amounts on lines 9h and line 9o

average cash balance account, do not enter an amount for age/ are separately computed in the same manner. (Note that it is

service bins with fewer than 20 active participants. possible for the Schedule B to show both a funding deficiency

and a credit balance for section 413(c) plans. This could not In lieu of the above, two alternatives are provided for appear for other plans.) showing compensation and cash balance accounts. Each

alternative provides for two age/service scatters (one showing Lines 9c and 9j. Amortization Charges and Credits. If there

compensation and one showing cash balance accounts) as are any amortization charges or credits, attach a maintenance

follows: schedule of funding standard account bases and label the

Alternative A: schedule “Schedule B, lines 9c and 9j – Schedule of

Funding Standard Account Bases.” The attachment should • Scatter 1 — Provide participant count and average clearly indicate the type of base (i.e., original unfunded liability, compensation 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 • Scatter 2 — Provide participant count and average cash period, and the amortization amount. If bases were combined in balance account for all active participants, whether or not the current year, the attachment should show information on participants have account-based benefits. bases both prior to and after the combining of bases. Alternative B:

• Scatter 1 — Provide participant count and average The outstanding balance and amortization charges and

compensation for all active participants, whether or not credits must be calculated as of the valuation date for the plan

participants have account-based benefits (i.e., identical to year.

Scatter 1 in Alternative A). Note. If an election was made under Code section 412(b)(7)(f)

• Scatter 2 — Provide participant count and average cash to defer a portion of an amount otherwise determined under

balance account for only those active participants with section 412(b)(2)(B)(iv), include an attachment describing this

account-based benefits. If the number of participants with calculation and label the schedule “Schedule B, line 9c –

account-based benefits in a bin is fewer than 20, the average Deferral of Charge for Portion of Net Experience Loss.”

account should not be shown even if there are more than 20 Line 9c(2). Amortization for funding waivers must be based on active participants in this bin on Scatter 1. the interest rate provided in Section 412(d) (“mandated rate”). In general, information should be determined as of the Line 9d. Interest as Applicable. Interest as applicable should valuation date. Average cash balance accounts may be be charged to the last day of the plan year. The mandated rates determined as of either: must be used when calculating interest on any amortization 1. the valuation date or charges for funding waivers. 2. the day immediately preceding the valuation date. Line 9e. If the funded current liability percentage for the

Average cash balance accounts that are offset by amounts preceding year reported in line 4a is at least 100%, quarterly

contributions are not required for the current plan year. from another plan may be reported either as amounts prior to

taking into account the offset, or as amounts after taking into Interest is charged for the entire period of underpayment.

account the offset. Do not report the offset amount. For any Refer to IRS Notice 89-52, 1989-1 C.B. 692, for a description of

other unusual or unique situation, the attachment should how this amount is calculated.

include an explanation of what is being provided. Note. Notice 89-52 was issued prior to the amendment of

If the plan is a multiple-employer plan, complete one or more section 412(m)(1) by the Revenue Reconciliation Act of 1989.

schedules of active-participant data in a manner consistent with Rather than using the rate in the Notice, the applicable interest

the computations for the funding requirements reported on line rate for this purpose is the greater of:

-6-
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 Note. The net outstanding balance of amortization charges and 3. The valuation rate. credits minus the prior year’s credit balance minus the amount

on line 9q(4) (each adjusted with interest at the valuation rate, if All other descriptions of the additional interest charge necessary) must equal the unfunded liability. contained in Notice 89-52 still apply.

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

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

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

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

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

accumulated funding deficiency, disregarding the credit balance Condition 1: Aggregate Unfunded Vested Benefits and contributions for the current year, if any, over (2) the

greater of lines 9l(1) or 9l(2). The aggregate unfunded vested benefits as of the close of

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 (Code section 412(b)(3)(C)). If a waiver of a funding deficiency contributing sponsors (as defined in section 4001(a)(13) of 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 Instructions for Form 5500). benefits) is less than or equal to $50 million. Line 9m(2). Other Credits. Enter a credit in the case of a plan

for which the accumulated funding deficiency is determined Condition 2: Amount of Decrease in UCL

under the funding standard account if such plan year follows a The change in assumptions (other than a change required plan year for which such deficiency was determined under the under Code section 412(l)(7)(C)) resulted in a decrease in the alternative minimum funding standard. UCL of the plan for the plan year in which the assumptions

Line 9q. Reconciliation Account. The reconciliation account were changed of less than or equal to $5 million.

is made up of those components that upset the balance Condition 3: Amount of Decrease in UCL, and CL Before equation of Treasury Regulation section 1.412(c)(3)-1(b). Change in Assumptions Valuation assets should not be adjusted by the reconciliation

account balance when computing the required minimum Although the change in assumptions (other than a change

funding. 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 Line 9q(1). The accumulation of additional funding charges for assumptions were changed which was greater than $5 million prior plan years must be included. Enter the sum of line 9q(1) and less than or equal to $50 million, the decrease was less (increased with interest at the valuation rate to the first day of than five percent of the current liability of the plan before such the current plan year) and line 9f, both from the prior year’s change. Schedule B (Form 5500).

Line 9q(2). The accumulation of additional interest charges If the current liability assumptions for the plan have been

due to late or unpaid quarterly installments for prior plan years changed, and such change requires approval of the Service,

must be included. Enter the sum of line 9q(2) (increased with enter on an attachment the date(s) of the ruling letter(s)

interest at the valuation rate to the first day of the current plan granting approval and label the attachment “Schedule B, line

year) and line 9e, both from the prior year’s Schedule B (Form 11 – Change in Current Liability Assumptions Approval

5500). Date.”

Line 9q(3)(a). If a waived funding deficiency is being amortized If the current liability assumptions for the plan have been

at an interest rate that differs from the valuation rate, enter the changed, and such change would have required approval in the

prior year’s “reconciliation waiver outstanding balance” absence of satisfaction of one of the conditions outlined above,

increased with interest at the valuation rate to the current enter on an attachment the number of the applicable condition

valuation date and decreased by the year end amortization and the plan year for which it applies, and label the attachment

amount based on the mandated interest rate. Enter the “Schedule B, line 11 – Change in Current Liability

amounts as of the valuation date. Also, include in this line Applicable Condition.” If condition 1 or 2 applies, also enter

reconciliation amounts due to extensions of amortization the amount of the decrease in UCL. Note that only one of the

periods that have been approved by the IRS. conditions needs to be entered.

-7-
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 multiemployer plans that checked amortization percentage is determined by reducing 30% by the box 1 on line E or plans that have 100 or fewer participants in product of 40% and the amount of such excess. Enter the the prior plan year (as defined under the Who Must File resulting amortization percentage to the nearest 0.01 percent. discussion for Schedule B). Do not complete Part II 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 Line 12j. Enter the amortization amount for line 12g based on

by the current liability computed with the highest allowable the “RPA ’94” current liability interest rate (line 6a) in effect for

interest rate (line 1d(2)(c)). If line 1d(2)(c) is not completed in the plan year and the following amortization period:

accordance with instructions for that line, use “RPA ’94” current In general: For the 2006 plan year, the remaining amortization liability reported on line 1d(2)(a). There is no additional funding period is 1 year. charge for plan years beginning in 2006 if the “Gateway %” is at Special rule: In the case of a collectively bargained plan, the least 90%. In such cases, enter -0- on line 12q. There is no amortization amount must be increased by the amortization of additional funding charge for plan years beginning in 2006 if any “unfunded existing benefit increase liability” in accordance (a) the “Gateway %” (for 2006) is at least 80% but less than with Code section 412(l)(3)(C)(ii). For any such amortization, 90%, and (b) the “Gateway %” for the plan years beginning in the amortization period is equal to the remainder of the original 2005 and 2004 were at least 90%, or, the “Gateway %” for the 18-year period that applied when the amortization began. plan years beginning in 2004 and 2003 were at least 90% (in Base maintenance: On a separate attachment, show the initial such case, enter -0- on line 12q). amount of each DRC amortization base (as defined in Rev. Rul. Note. Section 1508 of TRA ’97 provided transition rules for 96-20) being amortized under the general or special rule, the certain plans sponsored by companies engaged primarily in the outstanding balance of each DRC amortization base, the interurban or interstate passenger bus service that have number of years remaining in the amortization period, and the “Gateway” percentages that are greater than certain prescribed amortization amount (with the valuation date as the due date of minimum percentages. These transition rules are effective for the amortization amount), and label the schedule “Schedule B, such plans for any plan years beginning after 1996 and before line 12j – Schedule of DRC Bases.” It is not necessary to list 2010. If one of these transition rules is used, line 12a should be separately the unfunded old liability base and the additional completed, and, if appropriate, a zero should be entered in line unfunded old liability base. 12q. Attach a demonstration of the use of this transition rule to Line 12l. Enter the result determined by subtracting the the Schedule B and label the attachment “Schedule B, line amortization credits (line 9j) from the sum of the normal cost 12a – TRA ’97 Transition Rule.” and the amortization charges (lines 9b, 9c(1), and 9c(2)). Use Note. Section 101(d)(2) of the Pension Funding Equity Act of the valuation date as the due date for the amortization amounts.

2004 provided a lookback rule for the purpose of applying If entering a negative number, enter a minus sign “–” to the left section 412(l)(9)(B)(ii) of the Internal Revenue Code of 1986, of the number.

for plan years beginning after December 31, 2003. If this Line 12m. Unpredictable Contingent Event Amount. Line lookback rule is used, attach a demonstration of the use of this 12m does not apply to the unpredictable contingent event lookback rule to the Schedule B and label the attachment benefits (and related liabilities) for an event that occurred before “Schedule B, line 12a – Volatility Lookback Rule.” the first plan year beginning after December 31, 1988.

Line 12c. Enter the actuarial value of assets (line 1b(2)), Line 12m(1). Enter the total of all benefits paid during the plan reduced by the prior year’s credit balance (line 9h). If line 9h year that were paid solely because an unpredictable event was determined at a date other than the valuation date, adjust occurred.

the credit balance for interest at the valuation rate to the current Line 12m(4). Amortization of All Unpredictable Contingent valuation date before subtracting. Do not add a prior year’s Event Liabilities. Amortization should be based on the “RPA funding deficiency to the assets. ’94” current liability interest rate (line 6a), using the valuation Line 12d. Funded Current Liability Percentage. Enter the date as the due date. The initial amortization period for each actuarial value of the assets expressed as a percentage of base established in a plan year is generally 7 years; however, “RPA ’94” current liability. Enter the result to the nearest .01% see Code section 412(l)(5) for special rules. (e.g., 28.72%). Note. An alternative calculation of an unpredictable contingent Line 12f. Enter the liability for any unpredictable contingent amount is available for the first year of amortization. Refer to event (other than events that occurred before the first plan year Code section 412(l)(5)(D) for a description. If this alternative beginning after 1988) that was included in line 12b, whether or calculation is used, include an attachment describing the not such unpredictable contingent event has occurred. calculation and label the schedule “Schedule B, line 12m(4) –

Line 12g. Enter the outstanding balance of the unfunded old Alternative UCEB Calculation.”

liability as of the valuation date. This is line 12(g) of the 2005 Line 12m(5). “RPA ’94” Additional Amount. Subtract line

Schedule B reduced by the prior year’s amortization amount, 12g from line 12e. If the result is zero or less than zero, enter and adjusted for interest at the prior year’s current liability -0-. If the result is a positive number, multiply the result by the interest rate from the prior year’s valuation date to the current percentage used to calculate line 12i. Enter the excess, if any, valuation date. The unfunded old liability (and therefore all its of this amount over the amount on line 12i.

components) will be considered fully amortized in accordance Line 12n. Preliminary charge. Adjust with interest using the with Q&A-7 of Rev. Rul. 96-20, 1996-1 C.B. 62. “RPA ’94” current liability interest rate. Note. In the case of a collectively bargained plan, this amount Line 12o. Contributions needed to increase current liability must be increased by the unamortized portion of any “unfunded percentage to 100%. This amount is equal to the excess, if existing benefit increase liability” in accordance with Code any, of the “adjusted current liability” over the “adjusted assets.” section 412(l)(3)(C). The adjusted current liability is equal to the excess of (1) the

Line 12h. This amount is the unfunded new liability. It is sum of lines 1d(2)(a) and 1d(2)(b), over (2) line 1d(2)(d), each

recomputed each year. If a negative result is obtained, enter adjusted to the end of the plan year using the “RPA ’94” current

zero. liability interest rate.

Line 12i. If the unfunded new liability is zero, enter zero for the The adjusted assets are equal to the actuarial value of

unfunded new liability amount. If the unfunded new liability is assets for the plan year adjusted by (1) subtracting any credit

greater than zero, first calculate the amortization percentage as balance (or adding any debit balance) in the plan’s funding

follows: standard account as of the end of the prior plan year, adjusted

-8-
with interest to the valuation date at the valuation interest rate, Line 12q. If the plan had 150 or more participants on each day

(2) subtracting the disbursements from the plan (including of the preceding plan year, enter 100%. If the plan had less

single sum distributions) expected to be paid after the valuation than 150 participants but more than 100 participants on each

date but prior to the end of the plan year, (3) adding the day of the preceding plan year, enter the applicable percentage.

charges to the funding standard account as maintained under The same participant aggregation rule described in the

Code section 412(b) for the plan year (other than the additional instructions for line 12 applies. The applicable percentage is

funding charge under Code section 412(I)), and (4) subtracting calculated as follows: (1) Determine the greatest number of

the credits to the funding standard account as maintained under participants on any day during the preceding plan year in

Code section 412(b) for the plan year (other than credits under excess of 100. (2) The applicable percentage is 2% times the

Code sections 412(b)(3)(A) and 412(b)(3)(C)). The actuarial number of such participants in excess of 100. The percentage

value of assets and the adjustments described above are should not exceed 100%. The amount on line 12q is also the

determined as of the valuation date, and each is appropriately amount entered on line 9f.

adjusted with interest to the end of the plan year at the

valuation interest rate. The result of the calculation of adjusted

assets may be a negative number.

-9-