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Full Version: Restricted Payment Issue - Assets at MVA or AVA?

BenefitsLink Message Boards > Retirement Plans > Defined Benefit Plans, Including Cash Balance

AndyH

May 19 2004, 01:24 PM

I'm being lazy because I could not find this quickly.

If the AVA exceeds the MVA, can the AVA be used to determine if the 110% funding threshold is satisfied, or must the MVA be used?

I think you can use the AVA but am not sure. Anybody recall the answer off hand?

Thanks.

Blinky the 3-eyed Fish

May 19 2004, 01:29 PM

What do you mean by the 110% threshold? There is the 80-120% corridor that can be reduced to say 90-110% as part of the asset valuation method, but I have a feeling you don't mean that.

I should have read your title. I see what you are talking about now, but I would have to look it up too and I am lazy.

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