TAX 9873 Lecture Notes - Lecture 20: Actuary, Due Date, Marcal
Document Summary
Calculation of withdrawal liability (just know two methods; no calculations) Unfunded vested benefits (uvbs) employer share of withdrawal liability based on its allocated share of the plan"s total liability depend on date, asset value, liability value, assumptions, methods and allocation method. Two basic types of allocation methods described in the law are: The direct attribution method, which requires tracing of the uvbs attributable to the employer"s employees, and. The pro rata method, which allocates liability in proportion to the employer"s share of the contributions over a specified period. 3 pro rata formulas and 1 direct attribution formula. Withdrawal liability (a) unfunded vested benefit applicable to employer (3 methods to compute) assumptions at discretion of actuary (1) complete. Employer ceases to have obligation to (a) based on allocation method. 70% decline in cbu, or (a) x (1 (cbu for plan year after pw)/(average. Every employer ceases to participate in (a) determined for all.
