I work with a cash balance plan that credits a minimum 5% interest credit. For participants that terminate in mid-year, they receive a pro-rata interest credit at their termination date. Employer's actuary has advised employer to wait to credit any pro-rata interest credit for 2008 termination distributions until we get guidance on whether the 5% min will qualify as a market rate of return. So far in 2008, they have had 115 terminations/lump sum distributions, and not provided a pro rata 2008 interest credit on any of them. I have advised them either to credit at least the applicable interest rate or to credit the pro rata 5% interest rate. What are folks doing on this? This delay in guidance is really getting out of hand. Any trends you are seeing? thanks.
Cher

I would love to advise you to be patient, and just wait until the actuaries have approval.

But, I have no guarantee of when the guidance will be issued. If you want to ignore the advice of your professionals, then you should either accept the fiduciary responsibility for the action, or you should get an attorney's opinion.