SECTION 5. CLASS RULINGS

.01 In a case in which approval is sought for a change in funding method for a group of plans, a “class ruling” providing approval of that change for all plans within that class may be requested. A class consists of a group of at least 40 plans (1) that receive actuarial services from the same insurance company, consulting firm, or business organization, or whose actuarial valuations are produced using the software of the same vendor, and (2) for which an identical change in funding method is proposed. A class ruling will provide approval for all plans in the class.

.02 An enrolled actuary may request a class ruling on behalf of an insurance company, consulting firm, or business organization that provides actuarial services to the plans within the class. An enrolled actuary may also request a class ruling on behalf of a software vendor, and the ruling would apply to all plans for which the actuarial valuations are produced using that vendor’s software (both before and after the change in funding method).

.03 The enrolled actuary making the request must state the period for which the

changes that first apply in the year of change. In addition, if there are changes in actuarial assumptions or plan provisions, then the worksheet must separately identify the impact of the change in funding method by including the information before and after the change in funding method, with both sets of information based on a consistent set of actuarial assumptions and plan provisions (which may either reflect the changes in the actuarial assumptions and plan provisions or not reflect those changes).

(B)(i) A list of the amortization bases maintained (including, for each base, the type of base, outstanding balance, amortization amount, and remaining amortization period). The calculation of the new base or bases must also be shown. If bases are combined or offset in the year of change, in addition to the resulting single base, show information for each base.

(ii) The unfunded liability of the plan. For immediate gain methods, show the actuarial value of assets prior to any adjustments (such as adjustments for credit balances or outstanding balances of amortization bases) but excluding contributions designated for the current plan year.

(iii) The basic funding formula (or equation of balance). If the equation of balance is not satisfied, explain the effect on the operation of the funding method in the year of change.

(C) The calculation of the § 431 minimum required contribution for the year of change (determined without reduction for the credit balance in the funding standard account). This information must include the accrued liability (if applicable), the fair market value of assets, the actuarial value of assets, the normal cost, and the amortization charges and credits.

(D) The calculation of the § 431 full funding limitation for the year of change.

(E) The following additional information must be provided with respect to a multiemployer plan if the plan is in endangered status or critical status (including critical and declining status) under § 432 for the year of change:

(i) Projections, for 10 plan years (or over the remainder of the applicable funding improvement period or rehabilitation period if longer) of (a) any funding standard account credit balance or accumulated funding deficiency, (b) actuarial value of assets and market value of assets,

(c) current liability determined under § 431(c)(6)(D), and (d) funded percentage determined under § 432(j)(2).

(ii) A copy of the most recent certification under § 432(b)(3) of the plan’s status, and a statement of whether or not the plan sponsor has made an election to be treated as in critical status under § 432(b)(4).

(iii) A copy of any funding improvement plan or rehabilitation plan to which the plan is currently subject in accordance with § 432, or to which the plan has been subject at any time within the 5 years preceding the year of change, and all updates to the funding improvement plan or rehabilitation plan.

(F) If, for the year of change, the plan is in critical and declining status under § 432 and an application for approval of a proposed suspension of benefits under § 432(e)(9) has been either approved by or is pending with the Secretary of the Treasury, a copy of the application must be provided. In lieu of including a copy of the application with this request, reference may be made to the Department of Treasury website (www.treasury.gov) if the benefit suspension application has been posted on that website when the request for the change in funding method is filed.

.04 In the case of a change in funding method involving a plan merger, the information described in section 4.03 of this revenue procedure must be provided for all merging plans as of the date of the merger. In addition, the technical information described in the sections 4.03(12) through (14) of this revenue procedure, as applicable depending on the plan, for the ongoing plan must be provided taking into account the merger.

.05 In the case of a change in funding method involving a spin-off, the information described in section 4.03 of this revenue procedure must be provided for the original plan as of the date of the spin-off. In addition, the technical information described in the sections 4.03(12) through (14) of this revenue procedure, as applicable depending on the plan, for the original plan and all spun-off plans must be provided taking into account the spin-off. With respect to a plan that, following the spin-off, is not maintained by a member of the controlled group of the plan sponsor

October 30, 2017 478 Bulletin No. 2017–44

those rules, the revocation of an interest rate election is treated as change in funding method.