| Topic: | Actuarial Assumptions |
| Subtopic: | Amortization for Overfunded Employers |
| Date: | 11/18/2016 |
| Status: | Inactive |
The same amortization periods will be applied to both the overfunded actuarial accrued liability and unfunded actuarial accrued liability. For 2017, that period is a closed 26 years until the remaining period reaches 15 years (then a 15-year rolling period).
Surpluses in a plan can be used to satisfy early retirement incentive costs so long as the reserve balance (on an actuarial basis) does not drop below 100%. The surplus would be applied to the extent it is available, at the employer's request. If the surplus is insufficient to satisfy all the early retirement incentive costs, then the remaining balance will be amortized for a period up to ten years, as selected by the employer upon adoption of ERI.