436/PPA Amendment for DB/Cash Balance Plans

In 2006, Congress signed the Pension Protection Act which made some changes to the rules governing the operation of pension plans and significant changes to the funding rules for defined benefits plans. For most defined benefit plans and cash balance plans, this has resulted in two amendments to their plan: A PPA amendment (adopted usually … Read more

Defined Benefit/Cash Balance Illustration Assumptions and Methods

Assumptions Unless otherwise disclosed on the illustration, here is a summary of the actuarial assumptions that Nova 401(k) Associates uses: Interest rates for minimum required contribution – MAP-21 rates Interest rates for the maximum deductible contribution: Segment rates with a two month lookback Pre-retirement¬†decrement assumptions: None Retirement assumption: 100% at normal retirement age Percentage of … Read more