Pension & Social Security Law

Defined Benefit Answer Book

Name: Defined Benefit Answer Book
Author: Aspen Publishers
ISBN: 9780735532106

by Aspen Publishers (Manufactured by), Neff

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Overview

Defined Benefit Answer Book, Third Edition explains the critical actuarial, administrative, and compliance facets of defined benefit arrangements. The author covers a full range of concerns, including:

Satisfying nondiscrimination and benefits structure
Reporting and disclosure to employees
Understanding actuarial techniques for asset liability and funding methods
Deductibility
QDRO design and administration
Relevant legislation, including GATT, SBJPA, and the TRA
Funding standards
Asset and liability valuation methods

The author draws on his hands-on experience to gather all the information you need and organizes it in a useful question-and-answer format, grouped by topic. There are frequent examples, charts, and sample calculations providing visual reinforcement of the step-by-step procedures.Also, the Third Edition includes a Special Supplement entitled Legislative Update: Impact of the Pension Protection Act of 2006 on Defined Benefit Pension Plans. This useful reference summarizes the relevant provisions of the PPA for defined benefit plans:

Provisions effective upon enactment of PPA, including those relating to Section 415 limits, PBGC terminations, and cash balance plans
Provisions effective in 2007, including updates to PBGC premiums, in-service distributions, and simplified reporting requirements
Provisions effective in 2008, including a detailed description of the single-funding requirement applicable to all defined benefit plans beginning with the 2008 plan year
Provisions effective in 2010, including EGTRRA permanency and the creation of a defined benefit plan with a 401(k) feature

Synopsis

Defined Benefit Answer Book, Fourth Edition, is designed for professionals who need quick and authoritative answers to questions on the complex administration of defined benefit plans. There are numerous examples of how those bills affect defined benefit plans and discussion and analysis of current laws and regulations, including how the PPA affects the future of defined benefit plan operations. Among the crucial questions answered are the following:

• Does a company's financial stability affect plan design?
• Can plans be designed to provide enhanced benefits to key employees?
• Are there ways of establishing hours of service without counting actual hours?
• Can a defined benefit plan be designed so that there is no discrimination testing each year?
• Can a defined benefit plan be designed to primarily benefit the key employees?
• Are there any advantages to having a defined contribution plan and a defined benefit plan together, and how are they administered?
• What must an employer do to satisfy minimum funding requirements, both before and after the Pension Protection Act of 2006 (PPA)?
• What restrictions are imposed if a plan is considered underfunded after the PPA?
• What distribution election forms must be provided to a participant?
• How can a QDRO be prepared for a defined benefit plan?
• How are maximum benefit limitations determined under a plan?
• How are benefits calculated and converted to alternate forms of payment?
• What administrative issues must be considered for aplan that is covered by the Pension Benefit Guaranty Corporation?
• How are cash balance plans similar and different from traditional defined benefit plans?
• How are deductible contributions determined for a defined benefit plan, both before and after the PPA?
• How is a defined benefit similar and different from a defined contribution plan?
• What different administrative tasks are required for a defined benefit plan and for a defined contribution plan?
• How does a 412(e)(3) plan operate?
• Can a 412(e)(3) plan be more beneficial for sponsors than a regular defined benefit plan?

Defined Benefit Answer Book brings you up to date on the latest developments including:

• Complete analysis of the final Code Section 415 regulations and their effect on defined benefit plans
• Revised chapter on administration of cash balance plans, including discussion of requirements related to age
• Revised chapter on Schedule B and the new Schedules SB and MB forms for 2008 and 2009
• Examples and information regarding the changes made to defined benefit plans under the Pension Protection Act of 2006 (PPA); fully updated for the final regulations issued in October 2009 regarding:

• Minimum required funding changes
• Maximum deductions of contributions
• Employee notices
• Consequences of underfunding
• Distributions
• Special chapter dedicated to defined contribution administrators who wish to learn about defined benefit plans; fully updated for recent PPA guidance
• Discussions to reflect other regulations and guidance issued by the IRS