Can anyone confirm the fact that Congress is thinking about changing how DBs value assets for EOY 08 valuations, 09 valuations and for AFTAPs?

Thanks

I don't know about congress, but at the Los Angeles Benefits Conference, the IRS indicated the need to provide clarification on the asset smoothing rules.

On 12/23/08, President Bush signed into law Worker, Retiree, and Emplooyer Recovery Act of 2008. This act allows for some asset smoothing with a 110% corridor. How to calculate the smooth value is not exactly clear. WRERA is retroactive to the first plan year beginning in 2008 and am unsure what this means. For example, many have completed the 2008 actuarial valuation and produced certifications using market value. Can these be modified? Can you just start using smoothed value in 2009 without a change in funding method?

If you are not talking about this, then as a good consultant I just gave you a lot of information you already knew and didn't ask for and I apologize for this. However, apart from WRERA I am unaware that Congress is paying any further attention to DB plans.

Andy

Thanks.

Andy

this is what I had originally heard. This is a quote from JP Morgan Newsletter. Its on the 2/11 Benefits News. I posted the link below. Whether anything they do will apply to 2008 is a question. Maybe its in the stimulus bill??

"As Congress continues to wrestle with stimulus legislation, it is also considering proposals to provide new defined benefit funding relief, adding to the relief provided in the Worker, Retiree, and Employer Recovery Act (WRERA) passed in December of 2008. "

JPMorgan