§1393 — Title 29 Labor | U.S. Code

Summary

The corporation can create rules about the estimates actuaries use to figure an employer’s withdrawal debt. Each pension plan must figure that debt either by using methods and assumptions that, taken together, are reasonable for the plan and give the actuary’s best forecast, or by using the specific methods and assumptions the corporation puts in its rules. The plan’s actuary can use the most recent full actuarial valuation filed under tax law section 412 and reasonable estimates for the years after that. If full data are missing, the actuary can use available data or a representative sample. Unfunded vested benefits: the value of nonforfeitable plan benefits minus the value of the plan’s assets.

Title 29, §1393

Labor — Source: USLM XML via OLRC

(a)The corporation may prescribe by regulation actuarial assumptions which may be used by a plan actuary in determining the unfunded vested benefits of a plan for purposes of determining an employer’s withdrawal liability under this part. Withdrawal liability under this part shall be determined by each plan on the basis of—

(1)actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan, or

(2)actuarial assumptions and methods set forth in the corporation’s regulations for purposes of determining an employer’s withdrawal liability.

(b)In determining the unfunded vested benefits of a plan for purposes of determining an employer’s withdrawal liability under this part, the plan actuary may—

(1)rely on the most recent complete actuarial valuation used for purposes of section 412 of title 26 and reasonable estimates for the interim years of the unfunded vested benefits, and

(2)in the absence of complete data, rely on the data available or on data secured by a sampling which can reasonably be expected to be representative of the status of the entire plan.

(c)For purposes of this part, the term “unfunded vested benefits” means with respect to a plan, an amount equal to—

(A)the value of nonforfeitable benefits under the plan, less

(B)the value of the assets of the plan.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Subsec. (b)(1). Pub. L. 101–239 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title.

§1393 Actuarial Assumptions