I have read that the unfunded current liability for 404 is:
(CL+CLNC)(1+i) - ExpBenPymts(1+13/24i) - (AAV(1+i) - ExpBenPymts(1+13/24i))

(Using the CL int rate and assuming BP's at beg of mo)

My question is: is the interest calculated to the earlier of the fiscal yr end or the plan yr end, similar to what one would do for the 404 NC + Limit Adj calc?

That is my understanding. By the way, I have never seen the calculation methodology for the interest on expected benefit payments decribed as you did. I have always used [(exp ben pmt) * (1+i)^(1/2)]. What is the source of your methodology, not that I think it's necessarily wrong?

It's common practice and accounts for monthly payments at the begining of each of 12 months as I recall.

The formula is n+1 / 2n where n is the number of payments in the period in question.

If payments are made at the beg of the month the weight on the first period would be 12/12, the second period 11/12,.......... and the last period 1/12, so you add up the weights and simplify and you get 13/24. Similarly if the payments were at the end of the month the factor would be 11/24, and mid-month 1/2. Is that what you are asking?

I understand the formula, but you mentioned you "read" that it was done this way. I should have just asked where you read that. Just curious.

The 13/24ths part wasn't in the material. I used artistic license.

Seriously, I was reading the outline notes from Session 203 at the 2003 EA meeting. The formula simply said that the interest was weighted, it didn't say how to do it.