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Old 10-03-2019, 03:39 PM
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Default Overfunded plan with large credit balance

Is there a rule pertaining to overfunded plans with large credit balances? I have a plan in this position and they claim they were told they may be required to burn their CB over 7 years.
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Old 10-03-2019, 05:14 PM
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I thought overfunded pension plans were a myth. And 'required' by 'whom'? , imo.
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Old 10-03-2019, 05:20 PM
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Originally Posted by ALivelySedative View Post
I thought overfunded pension plans were a myth. And 'required' by 'whom'? , imo.
Any plan can be overfunded with the "right" assumptions!
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Old 11-01-2019, 01:58 PM
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Never heard of it being required to waived credit balance and my company has a few plans that are overfunded with a credit balance that could cover their MRC for ~10 years.
The only time i think you would be "required" to burn credit balance is if your AFTAP would fall below a threshold that would cause benefit restrictions on your plan you'd want to avoid. But if the plan is overfunded their AFTAP should be >100%.
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