Does lines 14-15 of the 2008 Schedule SB want your "actual" 2008 AFTAP which was sent to the client (which may have used 2007 data if EOY val) ? or do we just strictly follow the line-by-line instructions and use the 2008 data for these lines which essentially is the 2009 AFTAP numbers (for EOY vals using prior year data).

Perhaps I misunderstand the question. Why might you not follow the instructions?

Good point David, it's just I would think a 2008 Schedule SB would be asking about the 2008 AFTAP, but if you use prior year data for AFTAP, while following the instructions, you end up with a 2009 AFTAP on a 2008 Schedule SB.

I don't read the instructions that way.

What interest rate should be used to "adjust the amount reported in line 13, column (a)" from 1/1/2008 to 12/31/2008? The effective rate, for the plan I am working on, is based on November, 2008 segment rates.

I would adjust it at the effective rate of interest for 2008.

As to the original question of this post, supposedly Jim Holland (I am hearing this secondhand) thought it would be ok to post the 2008 AFTAP percentage, i.e. 12/31/07 information. I however, choose just to follow the instructions as written.

With regards to the original questions, the instructions to line 14 (FTAP) say:

"For plans that are not in at-risk status, this percentage is determined by subtracting the amount reported in line 13, column (a), from line 2b and dividing the result by the funding target reported in line 3d, column (2). If the plan’s valuation date is not the first day of the plan year, adjust the amount reported in line 13, column (a), for interest between the beginning of the plan year and the valuation date before subtracting from the amount reported in line 2b."

Since this is being calculated by prior numbers on the Schedule SB, I do not read it to be the same as the way we calculated AFTAPs - EOPrior Plan Year. The AFTAP line instructions reference line 14 (with an exception for the CB if plan is fully funded).

If you follow the instructions, I believe you get the following results:

FT - BOY accrued benefit - brought to end of year
Assets EOY, not including contribution

I believe the 2008 AFTAP, based on the 2007 CL was done including accruals and contributions ( it has been a while though ). So if I am correct, following the instructions would not give us our 2008 or 2009 AFTAP.

Blinky (or anyone else): Is this the way that you are planning on doing it?