Annual Information Return/Report

EZ. However, the Schedule SB must be retained in
accordance with the Instructions for Form 5500-SF under the
section headed Specific Instructions Only for “One-Participant
Plans.” The enrolled actuary must complete and sign the
Schedule SB and forward it to the person responsible for filing
the Form 5500-EZ or Form 5500-SF, even if the Schedule SB
is not filed.
Check the Schedule SB box on the Form 5500 (Part II, line
10a(3)) if a Schedule SB is attached to Form 5500. Check
“Yes” on line 11 in Part VI of the Form 5500-SF if a Schedule
SB is required to be prepared for the plan, even if Schedule SB
is not required to be attached to Form 5500-SF (see
instructions in the Note above, pertaining to “one-participant
plans”).
Note. This schedule is not filed for a multiemployer plan nor for
a money purchase defined contribution plan (including a target
benefit plan) for which a waiver of the minimum funding
requirements is currently being amortized. Information for
these plans must be filed using Schedule MB (Form 5500).
Lines A through F. Identifying Information. Lines A – F
must be completed for all plans. Lines A through D should
include the same information as reported in corresponding
lines in Part II of the Form 5500, Form 5500-SF, or Form 5500EZ filed for the plan. You may abbreviate the plan name (if
necessary) to fit in the space provided.
Do not use a social security number in line D instead of an
EIN. The Schedule SB and its attachments are open to public
inspection if filed with a Form 5500 or Form 5500-SF, and the
contents are public information and are generally subject to
publication on the Internet. Because of privacy concerns, the
inclusion of a social security number on the Schedule SB or
any of its attachments may result in the rejection of the filing.
You can apply for an EIN from the IRS online, by
telephone, by fax, or by mail depending on how soon you need
to use the EIN. For more information, see Section 3: Electronic
Filing Requirement under General Instructions to Form 5500.
The EBSA does not issue EINs.
Line E. Type of Plan. Check the applicable box to indicate the
type of plan. A single-employer plan for this reporting purpose
is an employee benefit plan maintained by one employer or
one employee organization. A multiple-employer plan is a plan
that is maintained by more than one employer, but is not a
multiemployer plan. (See the Instructions for Form 5500, box A
for additional information on the definition of a multiemployer
plan.)
● Check “Single” if the Form 5500, Form 5500-SF, or Form
5500-EZ is filed for a single-employer plan (including a plan
maintained by more than one member of the same controlled
group).
● Check “Multiple-A” if the Form 5500 or Form 5500-SF is
being filed for a multiple-employer plan and the plan is subject
to the rules of Code section 413(c)(4)(A) (i.e., it is funded as if
each employer were maintaining a separate plan). This
includes plans established before January 1, 1989, for which
an election was made to fund in accordance with Code section
413(c)(4)(A).
● Check “Multiple-B” if the Form 5500 or Form 5500-SF is
being filed for a multiple-employer plan and the plan is subject
to the rules of Code section 413(c)(4)(B) (i.e., it is funded as if
all participants were employed by a single employer).
If “Multiple-A” is checked, compute the entries on Schedule
SB filed for the plan as the sum of the individual amounts
computed for each employer. Complete a Schedule SB for
each employer showing information relative to that employer’s
portion of the plan, and submit them as an attachment to the

2010 Instructions for Schedule SB
(Form 5500)
Single-Employer Defined Benefit Plan
Actuarial Information
General Instructions
Note. Final regulations under certain portions of Code section
430 (sections 430(d), 430(f), 430(g), 430(h), and 430(i)) and
Code section 436 (and the corresponding provisions of ERISA
(sections 206(g) and 303)) were published in the Federal
Register July 31, 2008, and October 15, 2009, and apply for
plan years beginning on or after January 1, 2010. Proposed
regulations providing additional rules under Code sections
430(a), 430(j) and 4971 (and the corresponding provisions of
ERISA (section 303)) were published in the Federal Register
on April 15, 2008. The final regulations that relate to those
proposed regulations have a later effective date than the final
regulations published October 15, 2009. With respect to
provisions for which the final regulations do not apply to a plan
for the plan year, plan sponsors must follow a reasonable
interpretation of the statute, taking into account the provisions
of the Worker, Retiree, and Employer Recovery Act of 2008
(“WRERA”) and any other amendments to the funding rules
that are enacted. For this purpose, plan sponsors may rely on
the provisions of the proposed regulations or the final
regulations, but must take into account the provisions of the
Worker, Retiree, and Employer Recovery Act of 2008
(“WRERA”) and any other amendments to the funding rules
that are enacted. 

Who Must File
As the first step, the plan administrator of any single-employer
defined benefit plan (including a multiple-employer defined
benefit plan) that is subject to the minimum funding standards
(see Code section 412 and Part 3 of Title I of ERISA) must
obtain a completed Schedule SB that is prepared and signed
by the plan’s enrolled actuary as discussed below in the
Statement by Enrolled Actuary section. The plan administrator
must retain with the plan records the Schedule SB that is
prepared and signed by the plan’s actuary.
Next, the plan administrator must ensure that the
information from the actuary’s Schedule SB is entered
electronically into the annual return/report being submitted.
When entering the information, whether using EFAST2approved software or EFAST2’s web-based filing system, all
the fields required for the type of plan must be completed (see
instructions for fields that need to be completed).
Further, the plan administrator of a single-employer defined
benefit plan must attach to the Form 5500 or Form 5500-SF an
electronic reproduction of the Schedule SB prepared and
signed by the plan’s enrolled actuary. This electronic
reproduction must be labeled “SB Actuary Signature” and
must be included as a Portable Document Format (PDF)
attachment or any alternative electronic attachment allowable
under EFAST2.
Note. The Schedule SB (Form 5500) does not have to be filed
with the Form 5500-EZ, but it must be retained (in accordance
with the Instructions for Form 5500-EZ under the What To File
section). Similarly, the Schedule SB does not have to be filed
with the Form 5500-SF for a one-participant plan (as defined in
the Form 5500-EZ instructions) that is eligible for the Form
5500-SF and elects to file such form instead of the Form 5500-1-

Instructions for Schedule SB (Form 5500)

Schedule SB for the plan. Label the attachment “Schedule SB
– Information for Each Individual Employer.”
Line F. Prior Year Plan Size. Check the applicable box based
on the highest number of participants (both active and inactive)
on any day of the preceding plan year, taking into account
participants in all defined benefit plans maintained by the same
employer (or any member of such employer’s controlled group)
who are or were also employees of that employer or member.
For this purpose, participants whose only defined benefit plan
is a multiemployer plan (as defined in Code section 414(f)) are
not counted, and participants who are covered in more than
one of the defined benefit plans described above are counted
only once. Inactive participants include vested terminated and
retired employees as well as beneficiaries of deceased
participants. If this is the first plan year that a plan described in
this paragraph exists, complete this line based on the highest
number of participants that the plan was reasonably expected
to have on any day during the first plan year.

noncompliance pursuant to 29 CFR section 4041.31 for a
standard termination) — there is no termination date, and
therefore, minimum funding standards continue to apply and a
Schedule SB continues to be required.

Statement by Enrolled Actuary
An enrolled actuary must sign Schedule SB. The signature of
the enrolled actuary may be qualified to state that it is subject
to attached qualifications. See Treasury Regulations section
301.6059-1(d) for permitted qualifications. If the actuary has
not fully reflected any final or temporary regulation, revenue
ruling, or notice promulgated under the statute in completing
the Schedule SB, check the box on the last line of page 1. If
this box is checked, indicate on an attachment whether any
unpaid required contribution or a contribution that is not wholly
deductible would result if the actuary had fully reflected such
regulation, revenue ruling, or notice, and label this attachment
“Schedule SB – Statement by Enrolled Actuary.” Except as
otherwise provided in these instructions, a stamped or machine
produced signature is not acceptable.
The actuary must provide the completed and signed
Schedule SB to the plan administrator to be retained with the
plan records and included (in accordance with these
instructions) with the Form 5500 or Form 5500-SF that is
submitted under EFAST2. The plan’s actuary is permitted to
sign the Schedule SB on page one using the actuary’s
signature or by inserting the actuary’s typed name in the
signature line followed by the actuary’s handwritten initials. The
actuary’s most recent enrollment number must be entered on
the Schedule SB that is prepared and signed by the plan’s
actuary.

General Instructions, Parts I through VIII, Statement
by Enrolled Actuary, and Attachments
Except as noted below, all single and multiple-employer
defined benefit plans, regardless of size or type, must
complete Parts I through VIII. See instructions for line 27 for
additional information to be provided for certain plans with
special circumstances.
The Pension Protection Act of 2006, as amended (PPA),
provides delayed effective dates for the new funding rules for
plans meeting certain criteria (certain multiple-employer plans
maintained by rural cooperatives or related organizations,
PBGC settlement plans, and certain plans maintained by
government contractors, as described in PPA sections 104
through 106). Eligible plans to which these delayed effective
dates apply do not need to complete the entire Schedule SB,
but will have to file information relating to pre-PPA calculations
in an attachment using the 2007 Schedule B form. See the
instructions for line 27 for more information about which lines
of Schedule SB need to be completed and what additional
attachments are required.
PPA provides funding relief for certain defined benefit plans
(other than multiemployer plans) maintained by a commercial
passenger airline or by an employer whose principal business
is providing catering services to a commercial passenger
airline, based on an alternative 17-year funding schedule.
Plans using this funding relief do not need to complete the
entire Schedule SB, but are required to provide supplemental
information as an attachment to Schedule SB. Alternatively,
these plans can elect to apply the funding rules generally
applicable to single-employer defined benefit plans, but
amortize the funding shortfall over 10 years instead of the
standard 7-year period and use a special interest rate to
determine the funding target. Plans using this 10-year funding
option must complete the entire Schedule SB and provide
additional information. See the instructions for line 27 for more
information about which lines of Schedule SB need to be
completed and what additional attachments are required.

Attachments
All attachments to the Schedule SB must be properly identified
as attachments to the Schedule SB, and must include the
name of the plan, plan sponsor’s EIN, plan number, and line
number to which the schedule relates.
Do not include attachments that contain a visible social
security number. Except for certain one-participant plans, the
Schedule SB and its attachments are open to public
inspection, and the contents are public information and are
subject to publication on the Internet. Because of privacy
concerns, the inclusion of a visible social security number on
an attachment may result in the rejection of the filing.

Specific Instructions for Part I — Basic
Information
Note. All entries in Part I must be reported as of the valuation
date.
Line 1. Valuation Date. The valuation date for a plan year
must be the first day of the plan year unless the plan meets the
small-plan exception of ERISA section 303(g)(2)(B) and Code
section 430(g)(2)(B). For plans that qualify for the exception,
the valuation date may be any date in the plan year, including
the first or last day of the plan year.
A plan qualifies for this small-plan exception if there were
100 or fewer participants on each day of the prior plan year.
For the definition of participant as it applies in this case, see
the instructions for line F.
Line 2a. Market Value of Assets. Enter the fair market value
of assets as of the valuation date. Include contributions
designated for any previous plan year that are made after the
valuation date (but within the 8½-month period after the end of
the immediately preceding plan year), adjusted for interest for
the period between the date of payment and the valuation date
as provided in the applicable regulations.

Notes. (1) For split-funded plans, the costs and contributions
reported on Schedule SB should include those related to both
trust funds and insurance carriers. (2) For terminating plans,
Rev. Rul. 79-237, 1979-2 C.B. 190, provides that minimum
funding standards apply until the end of the plan year that
includes the termination date. Accordingly, the Schedule SB is
not required to be filed for any later plan year. However, if a
termination fails to occur — whether because assets remain in
the plan’s related trust (see Rev. Rul. 89-87, 1989-2 C.B. 81)
or for any other reason (e.g., the PBGC issues a notice of
Instructions for Schedule SB (Form 5500)

-2-

303(h)(3) and Code section 430(h)(3). The funding target may
be computed taking into account the mortality tables for
disabled lives published in Rev. Rul. 96-7, 1996-1 C.B. 59, and
as provided in Notice 2008-29, 2008-12 I.R.B. 637.
Special rules for plans that are in at-risk status. If a plan
is in at-risk status, report the amount reflecting the additional
assumptions required in ERISA section 303(i)(1)(B) and Code
section 430(i)(1)(B).
If the plan has been in at-risk status for any two or more of
the preceding four plan years (excluding plan years beginning
prior to 2008), also include the loading factor required in
ERISA section 303(i)(1)(C) and Code section 430(i)(1)(C). If
the plan is in at-risk status and has been in at-risk status for
fewer than five consecutive years, report the funding target
amounts after reflecting the transition rule provided in ERISA
section 303(i)(5) and Code section 430(i)(5). Years beginning
before 2008 do not count for this purpose. For example, the
funding target for a plan that is in at-risk status for 2010 and
was in at-risk status for both the 2008 and 2009 plan years will
reflect 60% of the funding target using the special at-risk
assumptions and 40% of the funding target determined without
regard to the at-risk assumptions.
Determining whether a plan is in at-risk status. Refer to
ERISA section 303(i)(4) and Code section 430(i)(4) to
determine whether the plan is in at-risk status. Generally, a
plan is in at-risk status for a plan year if it had more than 500
participants on any day during the preceding plan year (see
instructions for line F for the definition of participants) and the
plan’s funding target attainment percentage (“FTAP”) falls
below specified thresholds.
A plan with over 500 participants is in at-risk status for 2010
if both:

Contributions made for the current plan year must be
excluded from the amount reported in line 2a. If these
contributions were made prior to the valuation date (which can
only occur for small plans with a valuation date other than the
first day of the plan year), the asset value must be adjusted to
exclude not only the contribution amounts, but interest on the
contributions from the date of payment to the valuation date,
using the current-year effective interest rate.
Do not adjust for items such as the funding standard
carryover balance, prefunding balance, any unpaid minimum
required contributions, or the present value of remaining
shortfall or waiver amortization installments. Rollover amounts
or other assets held in individual accounts that are not
available to provide defined benefits under the plan should not
be included on line 2a regardless of whether they are reported
on the Schedule H (Form 5500) (line 1l, column (a)) or
Schedule I (Form 5500) (line 1c, column (a)), or Form 5500-SF
(line 7c, column (a)). Additionally, asset and liability amounts
must be determined in a consistent manner. Therefore, if the
value of any insurance contracts has been excluded from the
amount reported in line 2a, liabilities satisfied by such contracts
should also be excluded from the funding target values
reported in lines 3 and 4.
Line 2b. Actuarial Value of Assets. Do not adjust the
actuarial value of assets for items such as the funding standard
carryover balance, the prefunding balance, unpaid minimum
required contributions, or the present value of any remaining
shortfall or waiver amortization installments. Treat contributions
designated for a current or prior plan year, rollover amounts,
insurance contracts, and other items in the same manner as
for line 2a.
If an averaging method is used to value plan assets (as
permitted under Code section 430(g)(3)(B) and ERISA section
303(g)(3)(B), as amended by WRERA), enter the value as of
the valuation date taking into account the requirement that
such value must be within 90% to 110% of the fair market
value of assets.
Note. Under Code section 430(g)(3)(B), the use of averaging
methods in determining the value of plan assets is permitted
only in accordance with methods prescribed in Treasury
regulations. Accordingly, taxpayers cannot use asset valuation
methods other than fair market value (as described in Code
section 430(g)(3)(A)), except as provided under Notice 200922, 2009-14 I.R.B. 741, or Treasury regulations.
Line 3. Funding Target/Participant Count Breakdown. All
amounts should be reported as of the valuation date.
● Column (1)—Enter the number of participants, including
beneficiaries of deceased participants, who are or who will be
entitled to benefits under the plan.
● Column (2)—Enter the funding target calculated using the
methods and assumptions provided in ERISA sections 303(h)
and (i), Code sections 430(h) and (i), and other related
guidance. When allocating the funding target for active
participants (line 3c(3)) between vested and non-vested
benefits (lines 3c(2) and 3c(1) respectively), benefits
considered vested for PBGC premium purposes must be
included in line 3c(2).
Unless the plan sponsor has received approval to use
substitute mortality tables in accordance with ERISA section
303(h)(3)(C) and Code section 430(h)(3)(C), the funding target
must be computed using the mortality tables for non-disabled
lives, as published in section 1.430(h)(3)-1 of the Income Tax
Regulations. If substitute mortality tables have been approved
(or deemed to have been approved) by the IRS, such tables
must be used instead of the mortality tables described in the
previous sentence, subject to the rules of ERISA section

 the FTAP for 2009 (line 14 of the 2009 Schedule SB) is less
than 75%, and
 the at-risk funding target attainment percentage for 2009 is
less than 70%.
In general, the at-risk funding target attainment percentage
is determined in the same manner as the FTAP (as described
in the instructions for line 14), except that the funding target is
determined using the additional assumptions for plans in at-risk
status. For this purpose, the at-risk funding target is
determined by disregarding the transition rule of ERISA section
303(i)(5) and Code section 430(i)(5) for plans that have been in
at-risk status for fewer than five consecutive years, and
disregarding the loading factor in ERISA section 303(i)(1)(C)
and Code section 430(i)(1)(C). For plans in at-risk status, the
at-risk funding target is the amount reported in line 4b of the
2009 Schedule SB.
Refer to the regulations under section 430(i) of the Code for
rules pertaining to new plans and other special situations.
Line 4. Additional Information for Plans in At-Risk Status.
If the plan is in at-risk status as provided under ERISA section
303(i)(4) and Code section 430(i)(4), check the box, complete
lines 4a and 4b, and include as an attachment the information
described below. Do not complete line 4 if the plan is not in atrisk status for the current plan year.
● Line 4a — Enter the amount of the funding target determined
as if the plan were not in at-risk status.
● Line 4b — Report the funding target disregarding the
transition rule of ERISA section 303(i)(5) and Code section
430(i)(5), and disregarding the loading factor in ERISA section
303(i)(1)(C) and Code section 430(i)(1)(C).
If the plan is in at-risk status for the current plan year,
attach a description of the at-risk assumptions for the assumed
-3-

Instructions for Schedule SB (Form 5500)

form of payment (e.g., the optional form resulting in the highest
present value). Label the attachment “Schedule SB, line 4 –
Additional Information for Plans in At-Risk Status.”

Explanation of Discrepancy in Prior Year Funding
Standard Carryover Balance or Prefunding Balance.” Note
that elections to add excess contributions or reduce balances
have specific deadlines, and generally cannot be changed
once they have been made.
If this is the first year for which the plan is subject to the
minimum funding rules of ERISA section 303 or Code section
430, leave both columns blank.
Line 8. Portion Used To Offset Prior Year’s Funding
Requirement. Report the amount for each column from the
corresponding column of line 35 of the prior-year Schedule SB.
If the valuation date is not the first day of the plan year, report
the amounts from line 35 of the prior-year Schedule SB,
discounted to the beginning of the prior plan year using the
effective interest rate for the prior plan year.
If this is the first year for which the plan is subject to the
minimum funding rules of ERISA section 303 or Code section
430, leave both columns blank.
Special rule for late election to apply balances to
quarterly installments. If an election was made to use the
funding standard carryover balance or the prefunding balance
to offset the amount of a required quarterly installment, but the
election was made after the due date of the installment, the
amount reported on line 8 may not be the same as the amount
reported on line 35 for the prior year. Refer to the Income Tax
Regulations under section 430 of the Code for additional
information. An attachment to Schedule SB should explain why
the amount is different. Label the attachment “Schedule SB,
line 8 – Late Election to Apply Balances to Quarterly
Installments.”
Line 9. Amount Remaining. Enter the amount equal to line 7
minus line 8 in each column.
If this is the first year that the plan is subject to the
minimum funding requirements of ERISA section 303 or Code
section 430, enter the amount of any credit balance at the end
of the prior year (the “pre-effective plan year”) on line 9,
column (a) and leave line 9, column (b) blank. The amount
entered on line 9, column (a) is generally the amount reported
for the pre-effective plan year on line 9o of the 2007 version of
the Schedule B form that was submitted as an attachment to
the Schedule SB for that pre-effective plan year. If there has
been any adjustment to this amount so that it does not match
the amount so reported for the pre-effective plan year, attach
an explanation and label the attachment “Schedule SB, Line
9 – Explanation of Credit Balance Discrepancy.”
Line 10. Interest on Line 9. Enter the actual rate of return on
plan assets during the preceding plan year in the space
provided. Enter the rate to the nearest .01% (e.g., 6.53%). If
entering a negative number, enter a minus sign (“–”) to the left
of the number. In each column, enter the product of this
interest rate and the amount reported in the corresponding
column of line 9.
If this is the first year for which the plan is subject to the
minimum funding rules of ERISA section 303 or Code section
430, leave both columns blank.
Line 11. Prior Year’s Excess Contributions to be Added to
Prefunding Balance.
Line 11a. Enter the amount reported in line 38 on the
Schedule SB for the prior plan year.
Line 11b. Enter the effective interest rate for the prior plan
year, as reported on line 5 of the Schedule SB for the prior
plan year, in the space provided. Enter the rate to the nearest
.01% (e.g., 6.35%). Enter the product of that rate and the
amount reported on line 11a. However, if the valuation date is

Line 5. Effective Interest Rate. Enter the single rate of
interest which, if used instead of the interest rate(s) reported in
line 21 to determine the present value of the benefits that are
taken into account in determining the plan’s funding target for a
plan year, would result in an amount equal to the plan’s
funding target determined for the plan year, without regard to
calculations for plans in at-risk status. (This is the funding
target reported in line 3d(2) for plans not in at-risk status, or in
line 4a for plans in at-risk status.) However, if the funding
target for the plan year is zero, the effective interest rate is
determined as the single rate that would result in an amount
equal to the plan’s target normal cost determined for the plan
year, without regard to calculations for plans in at-risk status.
See the provisions of Code section 430(h)(2)(A), ERISA
section 303(h)(2)(A), and the applicable regulations. Enter rate
to the nearest .01% (e.g., 5.26%).
Line 6. Target Normal Cost. Report the present value of all
benefits which have been accrued or have been earned (or
that are expected to accrue or to be earned) under the plan
during the plan year, increased by any plan-related expenses
expected to be paid from plan assets during the plan year, and
decreased (but not below zero) by any mandatory employee
contributions expected to be made during the plan year.
Include any increase in benefits during the plan year that is a
result of any actual or projected increase in compensation
during the current plan year, even if that increase in benefits is
with respect to benefits attributable to services performed in a
preceding plan year.
This amount must be calculated as of the valuation date
and must generally be based on the same assumptions used
to determine the funding target reported in line 3c(3), column
(2), reflecting the special assumptions and the loading factor
for at-risk plans, if applicable. If the plan is in at-risk status for
the current plan year and has been in at-risk status for fewer
than five consecutive years, report the target normal cost after
reflecting the transition rule provided in ERISA section 303(i)(5)
and Code section 430(i)(5).
Special rule for airlines using 10-year amortization
period under section 402(a)(2) of PPA. Section 402(a)(2) of
PPA (as amended by section 6615 of the U.S. Troop
Readiness, Veterans’ Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007, Public Law 110-28
(121 Stat.112)) states that for plans electing the 10-year
amortization period, the funding target during that period is
determined using an interest rate of 8.25% rather than the
interest rates or segment rates calculated on the basis of the
corporate bond yield curve. However, this special 8.25%
interest rate does not apply for other purposes, including the
calculation of target normal cost or the amortization of the
funding shortfall. Report the target normal cost using the
interest rates or segment rates otherwise applicable under
430(h)(2) and ERISA section 303(h)(2).

Specific Instructions for Part II — Beginning of
Year Carryover and Prefunding Balances
Line 7. Balance at Beginning of Prior Plan Year After
Applicable Adjustments. In general, report the amount in the
corresponding columns of line 13 of the prior-year Schedule
SB. However, if the balance from the prior year has been
adjusted so that it does not match the corresponding amount in
line 13 of the prior-year Schedule SB, attach an explanation
and label the attachment “Schedule SB, Line 7 –
Instructions for Schedule SB (Form 5500)

-4-

This percentage is determined by subtracting the sum of
the amounts reported in line 13 from line 2b and dividing the
result by the funding target. The funding target used for this
purpose is the number reported in line 3d, column (2) for plans
that are not in at-risk status and line 4a for plans that are in atrisk status. If the plan’s valuation date is not the first day of the
plan year, subtract the sum of the amounts reported in line 13,
adjusted for interest between the beginning of the plan year
and the valuation date using the effective interest rate for the
current plan year, from the amount reported in line 2b; and
divide by the funding target.
Line 15. Adjusted Funding Target Attainment Percentage.
Enter the adjusted funding target attainment percentage
(AFTAP) determined in accordance with Code section 436(j)(2)
and ERISA section 206(g)(9)(B). The AFTAP is calculated in
the same manner as the FTAP reported in line 14, except that
both the assets and the funding target used to calculate the
AFTAP are increased by the aggregate amount of purchases
of annuities for employees other than highly compensated
employees (as defined in Code section 414(q)) which were
made by the plan during the preceding two plan years.
See Code section 436(j)(3) and ERISA section 206(g)(9)(C)
for rules regarding circumstances in which the actuarial value
of plan assets is not reduced by the funding standard carryover
balance and prefunding balance for certain fully-funded plans
when determining the AFTAP. Note that this special rule
applies only to the calculation of the AFTAP and not to the
FTAP reported in line 14.
Report the final certified AFTAP for the plan year, reflecting
any adjustments pertaining to the plan year subsequent to the
valuation. For plans with valuation dates other than the first
day of the plan year, report the AFTAP that is the final certified
AFTAP based on the valuation results for the current plan year
at the time that the Schedule SB is filed (reflecting
contributions for the current plan year and reflecting other
adjustments as described in applicable guidance), even if that
AFTAP is not used to apply the restrictions under Code section
436 and ERISA section 206(g) until the following plan year.
If the AFTAP reported on line 15 reflects any adjustments
pertaining to the plan year subsequent to the valuation, attach
a schedule showing each AFTAP that was certified or
recertified for the plan year, the date of the certification (or
recertification), and a description and the amount of each
adjustment to the funding target, actuarial value of assets,
funding standard carryover balance and prefunding balance
used to determine the corresponding AFTAP. Label the
attachment, “Line 15, Reconciliation of differences between
valuation results and amounts used to calculate AFTAP.”
It is not necessary to include any information pertaining to a
range certification in this attachment.
Special rules for airlines using 10-year amortization
period under section 402(a)(2) of PPA. Section 402(a)(2) of
PPA (as amended) states that for plans electing the 10-year
funding amortization period, the funding target during that
period is determined using an interest rate of 8.25% rather
than the interest rates or segment rates calculated on the basis
of the corporate bond yield curve. Report the AFTAP for these
plans based on the funding target determined using the special
8.25% interest rate.
Line 16. Prior Year’s Funding Percentage for Purposes of
Determining Whether Carryover/Prefunding Balances May
Be Used To Offset Current Year’s Funding Requirement.
Under ERISA section 303(f)(3) and Code section 430(f)(3), the
funding standard carryover balance and prefunding balance
may not be applied toward minimum contribution requirements
unless the ratio of plan assets for the preceding plan year to

not the first day of the plan year, report the amount of interest
(at the rate reported on this line 11b) for the period between
the prior year’s valuation date and the end of the prior plan
year.
Note. Under §1.430(f)-1(b)(3)(iii) of the Income Tax
Regulations, if a contribution (or a portion of a contribution)
reported on line 11a is an excess contribution solely because
an election was made to offset the minimum required
contribution for the prior year by the funding standard carryover
balance and/or the prefunding balance, calculate the interest
on that contribution (or portion of a contribution) using the
actual rate of return on assets reported on line 10 instead of
the effective interest rate.
Line 11c. Enter the sum of lines 11a and 11b.
Line 11d. Enter the amount of the excess contributions for the
prior year (with interest) that the plan sponsor elected to use to
increase the prefunding balance. This amount cannot be
greater than the amount reported on line 11c.
If this is the first year for which the plan is subject to the
minimum funding rules of ERISA section 303 or Code section
430, leave lines 11a–d blank.
Line 12. Reduction in Balances Due to Elections or
Deemed Elections. In each column, enter the amount by
which the employer elects to reduce (or is deemed to elect to
reduce, per ERISA section 206(g)(5)(C) and Code section
436(f)(3)) the funding standard carryover balance or prefunding
balance, as applicable, under ERISA section 303(f) and Code
section 430(f). This amount cannot be greater than the sum of
the amounts reported in the corresponding column of lines 9,
10 and, if applicable, 11d. Note that an election (or deemed
election) cannot be made to reduce the prefunding balance in
column (b) until the funding standard carryover balance in
column (a) has been reduced to zero.
If the valuation date is not the first day of the plan year,
adjust the amounts reported in line 12 to the first day of the
plan year, using the effective interest rate for the current plan
year. If the plan did not exist in the prior year and is not a
successor plan, leave both columns blank.
If this is the first year for which the plan is subject to the
minimum funding rules of ERISA section 303 or Code section
430, leave column (b) blank.
Line 13. Balance at Beginning of Current Year.
● Column (a) - Enter the sum of the amounts reported on lines
9 and 10 of column (a), minus the amount reported on line 12
of column (a).
● Column (b) - Enter the sum of the amounts reported on lines
9, 10 and 11d of column (b), minus the amount reported on line
12 of column (b).
If this is the first year for which the plan is subject to the
minimum funding rules of ERISA section 303 or Code section
430, leave column (b) blank.

Specific Instructions for Part III — Funding
Percentages
Enter all percentages in this section by truncating at .01%
(e.g., report 82.649% as 82.64%).
Line 14. Funding Target Attainment Percentage. Enter the
funding target attainment percentage (FTAP) determined in
accordance with ERISA section 303(d)(2) and Code section
430(d)(2). The FTAP is the ratio (expressed as a percentage)
which the actuarial value of plan assets (reduced by the
funding standard carryover balance and prefunding balance)
bears to the funding target determined without regard to the
additional rules for plans in at-risk status.
-5-

Instructions for Schedule SB (Form 5500)

the funding target for the preceding plan year (as described in
ERISA section 303(f)(3)(C) and Code section 430(f)(3)(C)) is
80% or more.

Allocate the interest-adjusted employer contributions to
lines 19a, 19b, and 19c to report the purpose for which they
were made (as described below).
Attach a schedule showing the dates and amounts of
individual contributions, the year to which the contributions (or
the portion of individual contributions) are applied, the
applicable effective interest rate (including increased rate for
late quarterly installments, where applicable), and the interestadjusted contribution. It is not necessary to include information
regarding interest-adjusted contributions allocated toward the
minimum required contribution for the current year (reported in
line 19c) in this schedule, unless any of those contributions
represent late quarterly installments. However, if any of the
contributions reported in line 19c represent late quarterly
installments, include all contributions reported in line 19c on
this schedule. Label the attachment “Schedule SB, line 19 –
Discounted Employer Contributions.”
Special note for small plans with valuation dates after
the beginning of the plan year. If the valuation date is after
the beginning of the plan year and contributions for the current
year were made during the plan year but before the valuation
date, such contributions are increased with interest to the
valuation date using the effective interest rate for the current
plan year. These contributions and the interest calculated as
described in the preceding sentence are excluded from the
value of assets reported in lines 2a and 2b.
Interest adjustment for contributions representing late
required quarterly installments — installments due after
the valuation date. If the full amount of a required installment
due after the valuation date for the current plan year is not paid
by the due date for that installment, increase the effective
interest rate used to discount the contribution by 5 percentage
points for the period between the due date for the required
installment and the date on which the payment is made. If all or
a portion of the late required quarterly installment is due to a
liquidity shortfall, the increased interest rate is used for a
period of time corresponding to the period between the due
date for the installment and the end of that quarter, regardless
of when the contribution is actually paid.
Interest adjustment for contributions representing late
required quarterly installments — small plans with
valuation dates after the beginning of the plan year installments due prior to the valuation date. See the
Income Tax Regulations under section 430 for rules regarding
interest adjustments for late quarterly contributions for
quarterly contributions due before the valuation date.
Line 19a. Contributions Allocated Toward Unpaid
Minimum Required Contribution from Prior Plan Years.
Code section 4971(c)(4)(B) provides that any payment to or
under a plan for any plan year shall be allocated first to unpaid
minimum required contributions for all preceding plan years on
a first-in, first-out basis and then to the minimum required
contribution for the current plan year. Report any contributions
from line 18 that are allocated toward unpaid minimum
required contributions from prior plan years, discounted for
interest from the date the contribution was made to the
valuation date for the plan year for which the contribution was
originally required as described above. Increase the effective
interest rate for the applicable plan year by 5 percentage points
for any portion of the unpaid minimum required contribution
that represents a late quarterly installment, for the period
between the due date for the installment and the date of
payment. Reflect the increased interest rate for any portion of
the unpaid minimum required contribution that represents a
late liquidity shortfall installment, for the period corresponding
to the time between the date the installment was due and the

Enter the applicable percentage as described below,
truncated at .01% (e.g., report 81.239% as 81.23%). In
general, the percentage is the ratio that the prior-year actuarial
value of plan assets (reduced by the amount of any prefunding
balance, but not the funding standard carryover balance) bears
to the prior-year funding target determined without regard to
the additional rules for plans in at-risk status. This percentage
is determined as follows, with all amounts taken from the prior
year’s Schedule SB:
● For plans that are not in at-risk status, subtract the amount
reported on line 13, column (b) (adjusted for interest as
described below, if the valuation date is not the first day of the
plan year) from the amount reported on line 2b, and divide the
result by the funding target reported on line 3d.
● For plans that are in at-risk status, subtract the amount
reported on line 13, column (b) (adjusted for interest as
described below, if the valuation date is not the first day of the
plan year) from the amount reported on line 2b, and divide the
result by the funding target reported on line 4a.
If the valuation date for the prior plan year was not the first
day of that plan year, the above calculations reflect the amount
reported on line 13, column(b), adjusted for interest between
the beginning of the prior plan year and the prior year’s
valuation date, using the effective interest rate for the prior plan
year.
Line 17. Ratio of Current Value of Assets to Funding
Target if Below 70%. This calculation is required under ERISA
section 103(d)(11). If line 2b divided by the funding target
reported in line 3d, column (2), is less than 70%, enter such
percentage. Otherwise, leave this line blank.

Specific Instructions for Part IV —
Contributions and Liquidity Shortfalls
Line 18. Contributions Made to the Plan. Show all employer
and employee contributions either designated for this plan year
or those allocated to unpaid minimum required contributions for
a prior plan year. Do not adjust contributions to reflect interest.
Show only employer contributions actually made to the plan
within 8½ months after the end of the plan year for which this
Schedule SB is filed (or actually made before the Schedule SB
is signed, if earlier).
Certain employer contributions must be made in quarterly
installments. See ERISA section 303(j) and Code section
430(j). Contributions made to meet the liquidity requirement of
ERISA section 303(j)(4) and Code section 430(j)(4) should be
reported. Include contributions made to avoid benefit
restrictions under ERISA section 206(g) and Code section 436.
Add the amounts in both columns 18(b) and 18(c)
separately and enter each result in the corresponding column
on the total line. All contributions except those made to avoid
benefit restrictions under ERISA section 206(g) and Code
section 436 must be credited toward minimum funding
requirements for a particular plan year.
Line 19. Discounted Employer Contributions. Employer
contributions reported in line 18 that were made on a date
other than the valuation date must be adjusted to reflect
interest for the time period between the valuation date for the
plan year to which the contribution is allocated and the date the
contribution was made. In general, adjust each contribution
using the effective interest rate for the plan year to which the
contribution is allocated.
Instructions for Schedule SB (Form 5500)

-6-

Certification.” (See ERISA section 303(j)(4)(E)(ii)(II) and
Code section 430(j)(4)(E)(ii)(II).)
If the plan is subject to the liquidity requirement and has a
liquidity shortfall for any quarter of the plan year (see ERISA
section 303(j)(4)(E) and Code section 430(j)(4)(E)), enter the
amount of the liquidity shortfall for each such quarter. If the
plan was subject to the liquidity requirement but did not have a
liquidity shortfall, enter zero. File IRS Form 5330, Return of
Excise Taxes Related to Employee Benefit Plans, with the IRS
to pay the 10% excise tax(es) if there is a failure to pay any
liquidity shortfall by the required due date, unless a waiver of
the 10% tax has been granted under Code section 4971(f)(4).

end of the quarter during which it was due. The amount
reported in line 19a cannot be larger than the amount reported
in line 28.
For the purpose of allocating contribution amounts to
unpaid minimum required contributions, any unpaid minimum
required contribution attributable to an accumulated funding
deficiency at the end of the last plan year before ERISA
section 303 or Code section 430 applied to the plan (the “preeffective plan year”) is treated as a single contribution due on
the last day of the pre-effective plan year (without separately
identifying any portion of the accumulated funding deficiency
attributable to late quarterly installments or late liquidity
shortfall installments), and the associated effective interest rate
is deemed to be the valuation interest rate for the pre-effective
plan year.
Line 19b. Contributions Made To Avoid Benefit
Restrictions. Include in this category current year
contributions made to avoid or terminate benefit restrictions
under ERISA section 206(g) and Code section 436. Adjust
each contribution for interest from the date the contribution was
made to the valuation date as described above.
Line 19c. Contributions Allocated Toward Minimum
Required Contribution for Current Year. Include in this
category contributions (including any contributions made in
excess of the minimum required contribution) that are not
included in line 19a or 19b. Adjust each contribution for interest
from the date the contribution was made to the valuation date
as described above.
Line 20. Quarterly Contributions and Liquidity Shortfalls.
Line 20a. Did the Plan Have a Funding Shortfall for the
Prior Plan Year? In accordance with ERISA section 303(j)(3)
and Code section 430(j)(3), only plans that have a funding
shortfall for the preceding plan year are subject to an
accelerated quarterly contribution schedule. For this purpose, a
plan is considered to have a funding shortfall for the prior year
if the funding target reported on line 3d, column (2) is greater
than the actuarial value of assets reported on line 2b, reduced
by the sum of the funding standard carryover balance and
prefunding balance reported on line 13, columns (a) and (b),
with all figures taken from the prior year’s Schedule SB.
However, see Code section 430(f)(4)(B)(ii) and ERISA section
303(f)(4)(B)(ii) for special rules in the case of a binding
agreement with the PBGC providing that all or a portion of the
funding standard carryover balance and/or prefunding balance
is not available to offset the minimum required contribution for
the prior plan year.
Please note that a plan may be considered to have a
funding shortfall for this purpose even if it is exempt from
establishing a shortfall amortization base under the provisions
of ERISA section 303(c)(5) and Code section 430(c)(5).
Line 20b. If line 20a is “No” (i.e., if the plan did not have a
funding shortfall in the prior plan year), the plan is not subject
to the quarterly contribution rules, and this line should not be
completed. If line 20a is “Yes,” check the “Yes” box on line 20b
if required installments for the current plan year were made in
a timely manner; otherwise, check “No.”
Line 20c. If line 20a is “No,” or the plan had 100 or fewer
participants on every day of the preceding plan year (as
defined for line F), the plan is not subject to the liquidity
requirement of ERISA section 303(j)(4) and Code section
430(j)(4) and this line should not be completed. Attach a
certification by the enrolled actuary if the special rule for
nonrecurring circumstances is used, and label the certification
“Schedule SB, line 20c –Liquidity Requirement

Specific Instructions for Part V — Assumptions
Used To Determine Funding Target and Target
Normal Cost
Line 21. Discount Rate.
Line 21a. Enter the three segment rates used to calculate the
funding target as provided under ERISA section 303(h)(2)(C)
and Code section 430(h)(2)(C) and as published by the IRS,
unless the plan sponsor has elected to use the full yield curve.
If the sponsor has elected to use the full yield curve, check the
N/A, full yield curve used” box.
Special rules for airlines using 10-year amortization
period under section 402(a)(2) of PPA (as amended). Enter
the information described above to reflect the discount rates
used to determine the target normal cost in accordance with
Code section 430(h)(2) and ERISA section 303(h)(2). Do not
enter the special 8.25% interest rate used to determine the
funding target under section 402(a)(2) of the PPA.
Line 21b. ERISA section 303(h)(2)(E) and Code section
430(h)(2)(E) provide that the segment rate(s) used to measure
the funding target are those published by Treasury for the
month that includes the valuation date (based on the average
of the monthly corporate bond yield curves for the 24-month
period ending with the month preceding that month).
Alternatively, at the election of the plan sponsor, the segment
rate(s) used to measure the funding target may be those
published by Treasury for any of the four months that precede
the month that includes the valuation date.
Enter the applicable month to indicate which segment rates
were used to determine the funding target. Enter “0” if the rates
used to determine the funding target were published for the
month that includes the valuation date. Enter “1” if the rates
were published for the month immediately preceding the month
that includes the valuation date, “2” for the second preceding
month, and “3” or “4,” respectively, for the third or fourth
preceding months. For example, if the valuation date is
January 1 and the funding target was determined based on
rates published for November, enter “2.”
Note. The plan sponsor’s interest rate election under ERISA
section 303(h)(2) or Code section 430(h)(2) (an election to use
the yield curve or an election to use an applicable month other
than the default month) generally may not be changed unless
the plan sponsor obtains approval from the IRS. However, any
change to an interest rate election that is made for the first plan
year beginning in 2010 may be made without obtaining
approval by the IRS.
Line 22. Weighted Average Retirement Age. Enter the
weighted average retirement age for active participants. If the
plan is in at-risk status, enter the weighted average retirement
age as if the plan were not in at-risk status. If each participant
is assumed to retire at his/her normal retirement age, enter the
age specified in the plan as normal retirement age. If the
normal retirement age differs for individual participants, enter
-7-

Instructions for Schedule SB (Form 5500)

the age that is the weighted average normal retirement age; do
not enter “NRA.” Otherwise, enter the assumed retirement age.
If the valuation uses rates of retirement at various ages, enter
the nearest whole age that is the weighted average retirement
age.
On an attachment to Schedule SB, list the rate of retirement
at each age and describe the methodology used to compute
the weighted average retirement age, including a description of
the weight applied at each potential retirement age, and label
the attachment “Schedule SB, line 22 – Description of
Weighted Average Retirement Age.”
Line 23. Mortality Tables. Mortality tables described in Code
section 430(h)(3), ERISA section 303(h)(3), and section
1.430(h)(3)-1 of the Income Tax Regulations as published by
the IRS must be used to determine the funding target and
target normal cost for non-disabled participants and may be
used to determine the funding target and target normal cost for
disabled participants, unless the IRS has approved (or was
deemed to have approved) the use of a substitute mortality
table for the plan. Standard mortality tables must be either
applied on a generational basis, or the tables must be updated
to reflect the static tables published for the year in which the
valuation date occurs. Substitute mortality tables must be
applied in accordance with the terms of the IRS ruling letter.
Separate standard mortality tables were published by the
IRS for annuitants (rates applying for periods when a
participant is assumed to receive a benefit under the plan) and
nonannuitants (rates applying to periods before a participant is
assumed to receive a benefit under the plan). If a plan has 500
or fewer participants as of the valuation date for the current
plan year as reported in line 3d, column (1), the plan sponsor
can elect to use the combined mortality tables published by the
IRS, which reflect combined rates for both annuitants and
nonannuitants.
Check the applicable box to indicate which mortality table
was used to determine the funding target and target normal
cost. If one mortality table was used for certain populations
within the plan and a different mortality table was used for
other populations, check the box for the table that applied to
the largest population. If more than one mortality table was
used, attach a statement describing the mortality table used for
each population and the size of that population. Label the
attachment “Schedule SB, line 23 – Information on Use of
Multiple Mortality Tables.”
● Check “Prescribed–combined” if the funding target and target
normal cost are based on the prescribed tables with combined
annuitant/nonannuitant mortality rates.
● Check “Prescribed–separate” if the funding target and target
normal cost are based on the prescribed tables with separate
mortality rates for nonannuitants and annuitants.
● Check “Substitute” if the funding target and target normal
cost are based on substitute mortality tables. If substitute
mortality tables are used, attach a statement including a
summary of plan populations for which substitute mortality
tables are used, plan populations for which the prescribed
tables are used, and the last plan year for which the IRS
approval of the substitute mortality tables applies. Label the
attachment “Schedule SB, line 23 – Information on Use of
Substitute Mortality Tables.”
Attach a statement of actuarial assumptions and funding
methods used to calculate the Schedule SB entries and label
the statement “Schedule SB, Part V – Statement of Actuarial
Assumptions/Methods.” The statement must describe all nonprescribed actuarial assumptions (e.g., retirement, withdrawal
rates) used to determine the funding target and target normal
cost, including the assumption as to the frequency with which
Instructions for Schedule SB (Form 5500)

participants are assumed to elect each optional form of benefit
(including lump sum distributions), whether mortality tables are
applied on a static or generational basis, whether combined
mortality tables are used instead of separate annuitant and
nonannuitant mortality tables (for plans with 500 or fewer
participants as of the valuation date), and (for target normal
cost) expected plan-related expenses and increases in
compensation. For applicable defined benefit plans under
ERISA section 203(f)(3) and Code section 411(a)(13)(C) (e.g.,
cash balance plans) the statement must include the
assumptions used to convert balances to annuities. In addition,
the statement must describe the method for determining the
actuarial value of assets and any other aspects of the funding
method for determining the Schedule SB entries that are not
prescribed by law.
Also attach a summary of the principal eligibility and benefit
provisions on which the valuation was based, including the
status of the plan (e.g., frozen eligibility, service/pay, or
benefits), optional forms of benefits, special plan provisions,
including those that apply only to a subgroup of employees
(e.g., those with imputed service), supplemental benefits, and
identification of benefits not included in the valuation, a
description of any significant events that occurred during the
year, a summary of any changes in principal eligibility or benefit
provisions since the last valuation, and a description (or
reasonably representative sample) of plan early retirement
reduction factors and optional form conversion factors. Label the
summary “Schedule SB, Part V – Summary of Plan
Provisions.”
Also, include any other information needed to disclose the
actuarial position of the plan fully and fairly.

Specific Instructions for Part VI —
Miscellaneous Items
Line 24. Change in Non-Prescribed Actuarial Assumptions.
If a change has been made in the non-prescribed actuarial
assumptions for the current plan year, check “Yes.” If the only
assumption changes are statutorily required changes in the
discount or mortality rates, or changes required for plans in atrisk status, check “No.” Include as an attachment a description
of any change in non-prescribed actuarial assumptions and
justifications for any such change. (See section 103(d) of
ERISA.) Label the attachment “Schedule SB, line 24 –
Change in Actuarial Assumptions.”
Generally, if the “Yes” box is checked and the nonprescribed assumptions have been changed in a way that
decreases the funding shortfall for the current plan year,
approval for such a change may be required. However, approval
is not required with respect to any actuarial assumptions that
are adopted for the first plan year for which Code section 430
and ERISA section 303 apply to the plan, and that are not
inconsistent with the requirements of Code section 430.
Line 25. Change in Funding Method. If a change in the
funding method has been made for the current plan year, check
“Yes.” For this purpose, “funding method” refers to not only the
overall method used by the plan, but also each specific method
of computation used in applying the overall method.
Accordingly, method changes include modifications such as a
change in the method for calculating the actuarial value of
assets or a change in the valuation date (not an exclusive list).
In general, any changes in a plan’s funding method must be
approved by the IRS. However, see the regulations, Notice
2009-22, 2009-14 I.R.B. 741, and Announcement 2010-3, 20104 I.R.B. 333, for circumstances in which a change in funding
-8-

method may be made for the 2010 plan year without obtaining
approval from the IRS.

If the accrued benefit is the greater of a cash balance benefit
or some other benefit, average in only the cash balance
account. If the accrued benefit is the sum of a cash balance
account benefit and some other benefit, average in only the
cash balance account. For both the average compensation and
the average cash balance account, do not enter an amount for
age/service bins with fewer than 20 active participants.

Include, as an attachment, a description of the change. Label
the attachment “Schedule SB, line 25 – Change in Method.”
Note. The plan sponsor’s agreement to any change in funding
method that is required by a class ruling letter or other
published guidance should be reported on line 8 of Schedule R
(Form 5500).
Line 26. Schedule of Active Participant Data. Check “Yes”
only if (a) the plan is covered by Title IV of ERISA and (b) the
plan has active participants.
If line 26 is “Yes,” attach a schedule of the active plan
participant data used in the valuation for this plan year. Use the
format shown on the following page and label the schedule
“Schedule SB, line 26 – Schedule of Active Participant
Data.”
Expand this schedule by adding columns after the “5 to 9”
column and before the “40 & up” column for active participants
with total years of credited service in the following ranges: 10 to
14; 15 to 19; 20 to 24; 25 to 29; 30 to 34; and 35 to 39. For each
column, enter the number of active participants with the
specified number of years of credited service divided according
to age group. For participants with partial years of credited
service, round the total number of years of credited service to
the next lower whole number. Years of credited service are the
years credited under the plan’s benefit formula.
Plans reporting 1,000 or more active participants on line
3c(3), column 1, must also provide average compensation data.
For each grouping, enter the average compensation of the
active participants in that group. For this purpose, compensation
is the compensation taken into account for each participant
under the plan’s benefit formula, limited to the amount defined
under section 401(a)(17) of the Code. Do not enter the average
compensation in any grouping that contains fewer than 20
participants.
In the case of a plan under which benefits are primarily payrelated and under which no future accruals are granted (i.e., a
“hard-frozen” plan as defined in the instructions for plan
characteristic “1I” applicable to line 8a of the Form 5500), report
the average annual accrued benefit in lieu of average
compensation. Include a note on the scatter indicating that the
plan is “hard frozen” and the average accrued benefits are in
lieu of compensation.
Cash balance plans (or any plans using characteristic code
1C on line 8a of Form 5500) reporting 1,000 or more active
participants on line 3c(3), column 1, must also provide average
cash balance account data, regardless of whether all active
participants have cash balance accounts. For each age/service
bin, enter the average cash balance account of the active
participants in that bin. Do not enter the average cash balance
account in any age/service bin that contains fewer than 20
active participants.

In lieu of the above, two alternatives are provided for showing
compensation and cash balance accounts. Each alternative
provides for two age/service scatters (one showing
compensation and one showing cash balance accounts) as
follows:
Alternative A:
● Scatter 1 — Provide participant count and average
compensation for all active participants, whether or not
participants have account-based benefits.
● Scatter 2 — Provide participant count and average cash
balance account for all active participants, whether or not
participants have account-based benefits.
Alternative B:
● Scatter 1 — Provide participant count and average
compensation for all active participants, whether or not
participants have account-based benefits (i.e., identical to
Scatter 1 in Alternative A).
● Scatter 2 — Provide participant count and average cash
balance account for only those active participants with
account-based benefits. If the number of participants with
account-based benefits in a bin is fewer than 20, the average
account should not be shown even if there are 20 or more
active participants in this bin on Scatter 1.
In general, information should be determined as of the
valuation date. Average cash balance accounts may be
determined as of either:
1. The valuation date or
2. The day immediately preceding the valuation date.
Average cash balance accounts that are offset by amounts
from another plan may be reported either as amounts prior to
taking into account the offset or as amounts after taking into
account the offset. Do not report the offset amount. For this or
any other unusual or unique situation, the attachment should
include an explanation of what is being provided.
If the plan is a multiple-employer plan, complete one or more
schedules of active-participant data in a manner consistent with
the computations for the funding requirements reported in Part
VIII. For example, if the funding requirements are computed as if
each participating employer maintained a separate plan, attach
a separate “Schedule SB, line 26 – Schedule of Active
Participant Data” for each participating employer in the
multiple-employer plan.
Line 27. Alternative Funding Rules. If one of the alternative
funding rules was used for this plan year, enter the appropriate
code from the table below and follow the special instructions
applicable to that code, including completion of any required
attachments.

General Rule. In general, data to be shown in each
age/service bin includes:
1. The number of active participants in the age/service bin,
2. The average compensation of the active participants in
the age/service bin, and
3. The average cash balance account of the active
participants in the age/service bin, using $0 for anyone who
has no cash balance account-based benefit.

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Instructions for Schedule SB (Form 5500)

Schedule SB, Line 26—Schedule of Active Participant Data
YEARS OF CREDITED SERVICE
1 to 4

Under 1
Attained
Age

Average
No.

Comp.

Cash Bal.

5 to 9

Average
No.

Comp.

40 & up

Average

Cash Bal.

No.

Comp.

Cash Bal.

Average
No.

Comp.

Cash Bal.

Under 25
25 to 29
30 to 34
35 to 39
40 to 44
45 to 49
50 to 54
55 to 59
60 to 64
65 to 69
70 & up

Code
1

2
3
4

5

6

7

these instructions. In addition, report on an attachment the
amount subject to the binding agreement with the PBGC,
reported separately for the funding standard carryover balance
and prefunding balance. Label the attachment “Schedule SB,
line 27 – Balances Subject to Binding Agreement with
PBGC.”
Airline using 10-year amortization period for initial postPPA shortfall amortization base (code 5). Complete the entire
Schedule SB and attachments as outlined in these instructions.
Under section 402(a)(2) of PPA (as amended), the funding
target for plans funded using this alternative is determined using
an interest rate of 8.25% for each of the 10 years during the
amortization period instead of the interest rates otherwise
required under Code section 430(h)(2) and ERISA section
303(h)(2). However, this special 8.25% interest rate does not
apply for other purposes, including the calculation of target
normal cost or the amortization of the funding shortfall.
Alternative 17-year funding schedule for airlines with
frozen plans (code 6). Complete the following lines on
Schedule SB and provide associated attachments:
● Lines A through F.
● Part I (including signature of enrolled actuary) – complete all
lines.
● Parts III through VII – complete all lines.
For this purpose, disregard the special funding rules under
section 402(e) of PPA except for the information reported on the
following lines:
● Line 19 – Discount contributions to the applicable valuation
date using the 8.85% discount rate provided under section
402(e)(4)(B) of PPA.
● Line 20 – Reflect required quarterly installments based on
the minimum required contribution determined under section
402(e) of PPA to the extent applicable (i.e., for purposes of
calculating the required annual payment under Code section
430(j)(3)(D)(ii)(l) and ERISA section 303(j)(3)(D)(ii)(l)).
● Line 29 – Reflect the minimum required contribution
determined under section 402(e) of PPA when determining the
unpaid minimum required contribution.
Also, attach a worksheet showing the information below,
determined in accordance with section 402(e) of PPA. Label this
worksheet “Schedule SB, line 27 – Alternative 17-Year
Funding Schedule for Airlines.”
● Date as of which plan benefits were frozen as required under
section 402(b)(2) of PPA.
● Date on which the first applicable plan year began.

Alternative Funding Rule
Certain multiple-employer plans maintained by
rural cooperatives or related organizations as
described in section 104 of PPA
Temporary relief for certain PBGC settlement
plans described in section 105 of PPA
Certain plans maintained by government
contractors as described in section 106 of PPA
Plans with binding agreements with PBGC to
maintain prefunding and/or funding standard
carryover balances described in Code section
430(f)(4)(B)(ii) and ERISA section
303(f)(4)(B)(ii)
Airlines using 10-year amortization period for
initial post-PPA shortfall amortization base
under section 402(a)(2) of PPA (as amended)
Alternative 17-year funding schedule for airlines
with frozen plans under section 402(a)(1) of
PPA
Interstate transit company described in section
115 of PPA

Plans entitled to delayed effective dates for PPA funding
rules (codes 1, 2, and 3). For plan years before Code section
430 and ERISA section 303 apply to the plan for purposes of
determining the minimum required contribution, complete only
the following lines on Schedule SB:
● Lines A through F.
● Part I (including signature of enrolled actuary), determined as
if PPA provisions were effective for the plan year beginning in
2008.
● Part III, line 14, determined as if PPA provisions were
effective for the plan year beginning in 2008.
Also, report other information for the current plan year using
a 2007 Schedule B (Form 5500). Label this attachment “2010
Schedule SB, line 27 – Actuarial Information Based on PrePPA Funding Rules.” Complete all items, and attach the form
and all applicable attachments to the Schedule SB. Note that
under PPA, the third segment rate determined under Code
section 430(h)(2)(C)(iii) and ERISA section 303(h)(2)(C)(iii) is
substituted for the current liability interest rate under Code
section 412(b)(5)(B) and ERISA section 302(b)(5)(B) (as in
effect before PPA).
Plans with binding agreements with the PBGC to
maintain prefunding and/or carryover balances (code 4).
Complete entire Schedule SB and attachments as outlined in
Instructions for Schedule SB (Form 5500)

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reported on line 3d, column (2) (but not less than zero).

● Accrued liability under the unit credit method calculated as of
the first day of the plan year, using an interest rate of 8.85%.
● A summary of all other assumptions used to calculate the
unit credit accrued liability.
● Fair market value of assets as of the first day of the plan
year.
● Unfunded liability under section 402(e)(3)(A) of PPA.
● Alternative funding schedule:
1. Contribution necessary to amortize the unfunded liability
over the remaining number of years, assuming payments at
the valuation date for each plan year and using an interest rate
of 8.85%;
2. Employer contributions for the plan year, discounted for
interest to the valuation date for the plan year, and using a rate
of 8.85%; and
3. Contribution shortfall, if any ((1)-(2) but not less than
zero).
Interstate transit company (code 7). Complete the entire
Schedule SB, reflecting the modifications to the otherwiserequired funding rules under section 115(b) of PPA, and
disregarding the attachment required for plans reporting the use
of the substitute mortality table in line 23.

Note. Use the full amount of the funding target even if the plan
is eligible to use only 96% of the funding target for determining
the amount of any new shortfall amortization base for the 2010
plan year.
Line 32. Amortization Installments.
Line 32a. Shortfall Amortization Bases and Amortization
Installments. Outstanding balance — If the plan’s funding
shortfall (determined under Code section 430(c)(4) and ERISA
section 303(c)(4), reflecting the full amount of the funding
target) is zero, all amortization bases and related installments
are considered fully amortized. In this case, enter zero.
Otherwise, enter the sum of the outstanding balances of all
shortfall amortization bases (including any new shortfall
amortization base established for the current plan year). The
outstanding balance for each amortization base established in
past years is equal to the present value as of the valuation
date of any remaining amortization installments for each base
(including the amortization installment for the current plan
year), using the interest rates reported on line 21.
A plan is generally exempt from the requirement to establish
a new shortfall amortization base for the current plan year if the
funding target reported on line 3d, column (2), is less than or
equal to the reduced value of assets as described below.
However, if the plan existed during 2007 and was not subject to
Code section 412(l) or ERISA section 302(d) for the last plan
year beginning before Code section 430 and ERISA section 303
applied to the plan for purposes of determining the minimum
required contribution (the “pre-effective plan year”), only 96% of
the funding target is taken into account for this calculation for
plan years beginning in year 2010.
For the purpose of determining whether a plan is exempt
from the requirement to establish a new shortfall amortization
base for the current plan year, the reduced value of assets is the
amount reported on line 2b, reduced by the full value of the
prefunding balance reported on line 13, column (b), adjusted for
interest for the period between the beginning of the plan year
and the valuation date using the effective interest rate for the
current plan year, if the valuation date is not the first day of the
plan year. However, the assets are reduced by the prefunding
balance if and only if the plan sponsor has elected to use any
portion of the prefunding balance to offset the minimum required
contribution for the current plan year, as reported on line 35.
The assets are not reduced by the amount of any funding
standard carryover balance for this calculation regardless of
whether any portion of the funding standard carryover balance is
used to offset the minimum required contribution for the plan
year.
If the plan is not exempt from the requirement to establish a
new shortfall amortization base for the current plan year, the
amount of that base is generally equal to the difference between
the funding shortfall as of the valuation date (determined under
Code section 430(c)(4) and ERISA section 303(c)(4)) and the
sum of any outstanding balances of any previously established
shortfall and waiver amortization bases. The new shortfall
amortization base may be either greater than or less than zero.
For the purpose of determining the amount of any new
shortfall amortization base, the funding shortfall is equal to the
amount of the funding target reported on line 3d, column (2),
minus the reduced value of assets, but not less than zero.
However, if the plan existed during 2007 and was not subject to
Code section 412(l) or ERISA section 302(d) for the preeffective plan year, only 96% of the funding target is taken into
account for this calculation for plan years beginning in 2010.

Specific Instructions for Part VII —
Reconciliation of Unpaid Minimum Required
Contributions for Prior Years
Line 28. Unpaid Minimum Required Contributions for Prior
Years. Enter the total amount of any unpaid minimum required
contributions for all years from line 40 of the Schedule SB for
the prior plan year.
If this is the first year that the plan is subject to the minimum
funding requirements of ERISA section 303 or Code section
430, enter the amount of any accumulated funding deficiency at
the end of the prior year (the pre-effective plan year). This is the
amount reported on line 9p of the 2007 Schedule B form that
was submitted as an attachment to the Schedule SB for the preeffective plan year.
Line 29. Employer Contributions Allocated Toward Unpaid
Minimum Required Contributions from Prior Years. Enter
the total amount of discounted contributions made for the
current plan year allocated toward unpaid minimum required
contributions from prior years as reported in line 19a.
Line 30: Remaining Unpaid Minimum Required
Contributions. Enter the amount in line 28 minus the amount
in line 29.

Specific Instructions for Part VIII — Minimum
Required Contribution for Current Year
Line 31. Target Normal Cost, Adjusted if Applicable. In
general, enter the target normal cost as reported in line 6.
However, if the minimum required contribution is determined
under Code section 430(a)(2) or ERISA section 303(a)(2)
(relating to plans with excess assets), enter the amount of the
minimum required contribution. For this purpose, excess
assets are determined as the value of assets reported on line
2b reduced by any funding standard carryover balance and
prefunding balance reported on line 13, columns (a) and (b),
minus the funding target reported on line 3d, column (2) (but
not less than zero). However, if the valuation date is not the
first day of the plan year, excess assets are determined as the
value of assets reported on line 2b reduced by any funding
standard carryover balance and prefunding balance reported
on line 13, columns (a) and (b), adjusted for interest at the
effective interest rate for the period between the beginning of
the plan year and the valuation date, minus the funding target
-11-

Instructions for Schedule SB (Form 5500)

amortization installments for this base are not reported in line
32b for the year in which they are established. Rather, these
are included in the entries for line 32b on the Schedule SB for
the following plan year.
Note. Waiver amortization installments (including the waiver
amortization installments of any waiver amortization base
established for the prior plan year) are not re-determined from
year to year regardless of any changes in interest rates.
Required attachment. If there are any shortfall or waiver
amortization bases, include as an attachment a listing of all
bases (other than a base established for a funding waiver for the
current plan year) showing for each base:
1.The type of base (shortfall or waiver),
2. The present value of any remaining installments
(including the installment for the current plan year),
3. The valuation date as of which the base was established,
4. The number of years remaining in the amortization
period, and
5. The amortization installment.
If a base is negative (i.e., a “gain base”), show amounts in
parentheses or with a negative sign in front of them. All
amounts must be calculated as of the valuation date for the
plan year. Label the schedule “Schedule SB, line 32–
Schedule of Amortization Bases.”

If the plan’s valuation date is the first day of the plan year,
then the reduced value of assets for the purpose of determining
the amount of any new shortfall amortization base is the amount
reported on line 2b, reduced by the sum of the funding standard
carryover balance and the prefunding balance reported on line
13, columns (a) and (b). However, if the plan’s valuation date is
not the first day of the plan year, then the reduced value of
assets for the purpose of determining the amount of any new
shortfall amortization base is the amount reported on line 2b,
reduced by the sum of the funding standard carryover balance
and the prefunding balance reported on line 13, columns (a) and
(b), adjusted for interest for the period between the beginning of
the plan year and the valuation date (using the effective interest
rate for the current plan year). See Code section 430(f)(4)(B)(ii)
and ERISA section 303(f)(4)(B)(ii) for special rules in the case of
a binding agreement with the PBGC providing that all or a
portion of the funding standard carryover balance and/or
prefunding balance is not available to offset the minimum
required contribution for the plan year.
Shortfall amortization installment — Enter the sum of:
1. Any shortfall amortization installments that were
established to amortize shortfall amortization bases
established in prior years, excluding amortization installments
for bases that have been or are deemed to be fully amortized,
and
2. The shortfall amortization installment that corresponds to
any new shortfall amortization base established for the current
plan year. This amount is the level amortization payment that
will amortize the new shortfall amortization base over 7 annual
payments, using the interest rates reported in line 21 for the
current plan year.

Line 33. Funding Waiver. If a waiver of minimum funding
requirements has been approved for the current plan year,
enter the date of the ruling letter granting the approval and the
waived amount (reported as of the valuation date) in the
spaces provided. If a waiver is pending, do not complete this
line. If a pending waiver is granted after Form 5500 is filed, file
an amended Form 5500 with an amended Schedule SB.

Note. Shortfall amortization installments for a given shortfall
amortization base are not re-determined from year to year
regardless of any changes in interest rates.

Line 34. Total Funding Requirement Before Reflecting
Carryover/Prefunding Balances. Enter the sum of line 31
and the amortization installments reported in lines 32a and
32b, reduced by line 33. (Result cannot be less than zero.)

Line 32b. Waiver Amortization Bases and Amortization
Installments. Outstanding balance — If the plan’s funding
shortfall (determined under Code section 430(c)(4) and ERISA
section 303(c)(4), reflecting the full amount of the funding
target) is zero, all waiver amortization bases and related
installments are considered fully amortized. In this case, enter
zero. Otherwise, enter the present value as of the valuation
date of all remaining waiver amortization installments
(including any installment for the current plan year), using the
interest rates reported on line 21. Do not include any new
waiver amortization base established for a waiver of minimum
funding requirements for the current plan year.
Waiver amortization installments — Enter the sum of any
remaining waiver amortization installments that were
established to amortize any waiver amortization bases for prior
plan years, unless such bases have been or are deemed to be
fully amortized. Do not include an amortization installment for
any new waiver amortization base established for a waiver of
minimum funding requirements for the current plan year.

Line 35. Balances Used to Offset Funding Requirement. If
the percentage reported on line 16 is at least 80%, and the
plan has a funding standard carryover balance and/or
prefunding balance (as reported on line 13, columns (a) and
(b)), the plan sponsor may elect to credit all or a portion of
such balances against the minimum required contribution.
Enter the amount of any balance to be used for this purpose in
the applicable column of line 35, and enter the total in the
column headed “Total Balance.” No portion of the prefunding
balance can be used for this purpose unless the full amount of
any remaining funding standard carryover balance (line 13,
column (a)) is used. The amounts entered on line 35 cannot be
larger than the corresponding amounts on line 13 (unless the
plan’s valuation date is not the first day of the plan year, as
discussed below), or the corresponding amount on line 34.
If the plan’s valuation date is not the first day of the plan
year, adjust the portion of the funding standard carryover
balance and prefunding balance used to offset the minimum
required contribution for interest between the beginning of the
plan year and the valuation date using the effective interest rate
for the current plan year.
Special rule for late election to apply balances to
quarterly installments. If an election was made to use the
funding standard carryover balance or the prefunding balance to
offset the amount of a required quarterly installment, but the
election was made after the due date of the installment, the
amount reported on line 35 may not be the same amount that is
subtracted from the plan’s balances in the following plan year (to
be reported in line 8 of Schedule SB for the following plan year).

Note. If a waiver of minimum funding requirements has been
granted for the current plan year, a waiver amortization base is
established as of the valuation date for the current plan year
equal to the amount of the funding waiver reported in line 33.
The waiver amortization installment that corresponds to any
waiver amortization base established for the current year is the
level amortization payment that will amortize the new waiver
amortization base over 5 annual payments, using the same
segment interest rates or rates from the full yield curve
reported on line 21 for the current plan year, but with the first
payment due on the valuation date for the following plan year.
The amount of the waiver amortization base and the waiver
Instructions for Schedule SB (Form 5500)

-12-

Refer to the Income Tax Regulations under Section 430 of the
Code for additional information.
Line 36. Additional Cash Requirement. Enter the amount in
line 34 minus the amount in the “Total Balance” column in line
35. (The result cannot be less than zero.) This represents the
contribution needed to satisfy the minimum funding
requirement for the current year, adjusted for interest to the
valuation date.
Line 37. Contributions Allocated Toward Minimum
Required Contribution for Current Year, Adjusted to
Valuation Date. Enter the amount reported in line 19c.
Line 38. Interest-Adjusted Excess Contributions for
Current Year. Report the present value of the excess

contributions as of the valuation date. Enter the amount in line
37 minus the amount in line 36. Do not enter a negative
number. This amount (plus interest, if applicable) is the
maximum amount by which the plan sponsor may elect to
increase the prefunding balance.
Line 39. Unpaid Minimum Required Contribution for
Current Year. If line 37 is less than line 36, enter the amount
by which line 36 exceeds line 37. Otherwise, enter “0”.
Line 40. Unpaid Minimum Required Contribution for All
Years. Enter the sum of the remaining unpaid minimum
required contributions from line 30 and the unpaid minimum
required contribution for the current year from line 39.

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Instructions for Schedule SB (Form 5500)