The regs seem to indicate that a change in assumptions will put my plan out of compliance:

1/1/2008 AFTAP - > 100%
1/1/2009 AFTAP certified on 5/15/2009 <60%
No COB or PFB

I have been operating as if the plan has frozen accruals and cannot pay lump sums. There has been one person that terminated employment and could have taken a lump sum if the plan was not certified.

Plan sponsor decides to move to asset smoothing and actuary decides to change other non-mandated assumptions (ret age). 2009 AFTAP > 80%

This would be a material change since the plan operation would be impacted. In addition, it appears that if I recertify, I should have applied my new certification from 5/15. Then my plan would be out of compliance with the terms of the plan.

Does anyone see a way out of this?

Reluctantly I think I agree. This was confirmed in today's CCA Audio cast.

However, since the Regs are not effective until 2010, you might want to think about using a "good faith" compliance arguement for 2009.

I agree that it is an unreasonable result since the sponsor technically has until the filing of the 5500 to select the assumptions and asset method. However, due to 436 considerations, this deadline is effectively pushed up to the first day of the 10th month.

First, it is unclear whether or not you are the actuary making the changes. Is that you or has there been a change in actuaries? It almost sounds as if some other actuary made changes and then you will recertify. I'm sure I'm the one who is confused.

In any event, don't recertify. Then, there has been no material change and the Plan has been operated in compliance with the original certification. Has the plan sponsor requested a recertification?