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This Part applies only to Single-employer Plans. Multiemployer Plans should skip to Part III.
A plan may elect to use the Alternative Premium Funding Target to determine unfunded vested benefits instead of the Standard Premium Funding Target (see "How to Determine Unfunded Vested Benefits" section).
Note that once an election is made, it remains in effect for all subsequent plan years unless and until it is subsequently revoked. Therefore:
Note that in order to be valid, an election must be made in accordance with these instructions and must be filed with PBGC on or before the deadline. If you intended to make an election in a prior year, but you filed after the due date, the election did not take effect. You must make the election with this filing in order for it to first be effective for the 2011 plan year. If you are not sure if an election is in effect, you can view your election status in MyPAA under the "View Account History" option.
Revoking an election to use the Alternative Premium Funding Target - An election cannot be revoked for any plan year that begins less than five years after the beginning of the plan year for which the election was first applicable. For example, if you make the election for a plan year that begins on April 1, 2011, the Alternative Premium Funding Target must be used to determine unfunded vested benefits for all plan years beginning before April 1, 2016. The plan may revoke the election first effective for any plan year beginning on or after April 1, 2016, but unless the election is revoked, it will remain in place. My PAA will be modified in the future to allow for this revocation.
Note that if an election to use the Alternative Premium Funding Target is subsequently revoked, another election to use the Alternative Premium Funding Target cannot be made until five additional years have passed.
5 Election
Check the box to indicate that the plan is making this election first effective for the Premium Payment Year.