Originally Posted by
Gunfighter
Thanks for posting. I lost interest on p.4 with "hypothetical accounts" and PBGC, but kept reading.
The example used end of year contributions vs per pay period contributions. Under that example, we are losing an average of 6 months earnings on every annual contribution. I don't know if the DALPA plan used EOY or pay period credits to each Hypothetical Account.
There was some language in the section on uniformity requirements that would seem to eliminate any Plus Up or Min Balance provision, as it would not be a consistent allocation for all participants.
The Cooper V IBM example seems to make a further case against a Plus Up or Min Balance.
Thanks for taking time to look this up and post a link.
The money that will fund the MCB plan will be the DC contributions once we hit the 415(c) limit. Right now, those that do hit the limit, don’t until September to November. With a 25% DC contribution, it would happen earlier for the top guys, but most won’t be hitting the limit until the fall anyway. I only see a couple of months of lost earnings on the first few contributions for most of us.