Annual Information Return/Report

social security number on this Schedule MB 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 the General Instructions to Form 5500 and
How to File — Electronic Filing Requirement under the General
Instructions to Form 5500-SF. The EBSA does not issue EINs.
Note. (1) For split-funded plans, the costs and contributions
General Instructions
reported on Schedule MB must include those relating to both trust
funds and insurance carriers. (2) For plans with funding standard
Who Must File
account amortization charges and credits, see the instructions for
As the first step, the plan administrator of any multiemployer
lines 9c and 9h. (3) For terminating multiemployer plans, Code
defined benefit plan that is subject to the minimum funding
section 412(e)(4) and ERISA section 301(c) provide that
standards (see Code sections 412 and 431 and Part 3 of Title I of
minimum funding standards apply until the last day of the plan
ERISA) must obtain a completed Schedule MB (Form 5500) that
year in which the plan terminates within the meaning of section
is prepared and signed by the plan’s enrolled actuary as discussed
4041A(a)(2) of ERISA. Accordingly, the Schedule MB is not
below in the Statement by Enrolled Actuary section. The plan
required to be filed for any later plan year.
administrator must retain with the plan records the Schedule MB
Statement by Enrolled Actuary
that is prepared and signed by the plan’s actuary.
Next, the plan administrator of a multiemployer defined benefit An enrolled actuary must sign Schedule MB unless, as described
above, the plan is a money purchase defined contribution plan
plan must ensure that the information from the actuary’s
that has received a waiver of the minimum funding standard. The
Schedule MB is entered electronically into the annual
signature of the enrolled actuary may be qualified to state that it
return/report being submitted. When entering the information,
is subject to attached qualifications. See Treasury Regulations
whether using EFAST2-approved software or EFAST2’s websection 301.6059-1(d) for permitted qualifications. Except as
based filing system, all the fields required for the type of plan
otherwise provided in these instructions, a stamped or machine
must be completed (see instructions for fields that need to be
produced signature is not acceptable. If the actuary has not fully
completed).
reflected any final or temporary regulation, revenue ruling, or
Further, the plan administrator of a multiemployer defined
notice promulgated under the statute in completing the Schedule
benefit plan must attach to the Form 5500 an electronic
MB, check the box on the last line of page 1. If this box is
reproduction of the Schedule MB prepared and signed by the
checked, indicate on an attachment whether an accumulated
plan’s enrolled actuary. This electronic reproduction must be
funding deficiency or a contribution that is not wholly deductible
labeled “MB Actuary Signature” and must be included as a
would result if the actuary had fully reflected such regulation,
Portable Document Format (PDF) attachment or any alternative
revenue ruling, or notice, and label this attachment “Schedule
electronic attachment allowable under EFAST2.
MB – Statement by Enrolled Actuary.” In addition, the actuary
If a money purchase defined contribution plan (including a
may offer any other comments related to the information
target benefit plan) has received a waiver of the minimum funding contained in Schedule MB.
standard, and the waiver is currently being amortized, lines 3, 9,
The actuary must provide the completed and signed Schedule
and 10 of Schedule MB must be completed but it need not be
MB to the plan administrator to be retained with the plan records
signed by an enrolled actuary. In such a case, the Form 5500 or
the Form 5500-SF that is submitted under EFAST2 must include and included (in accordance with these instructions) with the
Form 5500 that is submitted under EFAST2. The plan’s actuary is
the Schedule MB with lines 3, 9, and 10 completed, but is not
permitted to sign the Schedule MB on page one using the
required to include a PDF attachment of a signed Schedule MB.
actuary’s signature or by inserting the actuary’s typed name in
Note. Schedule MB does not have to be filed with the Form
the signature line followed by the actuary’s handwritten initials.
5500-EZ, but, if required, it must be retained (in accordance with
The actuary’s most recent enrollment number must be entered on
the instructions for Form 5500-EZ under the What to File section).
the Schedule MB that is prepared and signed by the plan’s
Similarly, if a plan is a one-participant plan that meets the
actuary.
requirements for filing a Form 5500-EZ, but a Form 5500-SF is
Attachments
instead filed for the plan, the Schedule MB, if required, does not
have to be filed with the Form 5500-SF, but it must be retained (in All attachments to the Schedule MB must be properly identified,
accordance with the instructions for the Form 5500-SF under
and must include the name of the plan, the plan sponsor’s EIN,
Schedule MB in the Specific Instructions Only for “Oneand the plan number. Put “Schedule MB” and the line number to
Participant Plans” section). Also, the funding standard account for which the attachment relates at the top of each attachment. Do
the plan must continue to be maintained, even if the Schedule
not include attachments that contain a visible social security
MB is not filed.
number. The Schedule MB and its attachments are open to public
inspection, and the contents are public information and are
Check the Schedule MB box on the Form 5500 (Part II, line
subject to publication on the Internet. Because of privacy
10a(2)) if a Schedule MB is attached to the Form 5500.
concerns, the inclusion of a visible social security number on an
Lines A through E must be completed for ALL plans. If the
Schedule MB is attached to a Form 5500 or Form 5500-SF, lines attachment may result in the rejection of the filing.

2010 Instructions for Schedule MB
(Form 5500)
Multiemployer Defined Benefit Plan and
Certain Money Purchase Plan Actuarial
Information

A, B, C, and D should include the same information as reported in
Part II of the Form 5500 or Form 5500-SF. You may abbreviate
the plan name.
Do not use a social security number in line D in lieu of an EIN.
The Schedule MB 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 subject to publication on
the Internet. Because of privacy concerns, the inclusion of a

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Specific Instructions
Line 1. All entries must be reported as of the valuation date.
Line 1a. Actuarial Valuation Date. The valuation for a plan year
may be as of any date in the plan year, including the first or last
day of the plan year. Valuations must be performed within the
period specified by Code section 431(c)(7) and ERISA section
304(c)(7).
Line 1b(1). Current Value of Assets. Enter the current value of
assets as of the valuation date. The current value is the same as
Instructions for Schedule MB (Form 5500)

the fair market value. Do not adjust for items such as the existing
credit balance or the outstanding balances of certain amortization
bases. Contributions designated for 2010 should not be included
in this amount. Note that this entry may be different from the entry
in line 2a. Such a difference may result, for example, if the
valuation date is not the first day of the plan year, or if insurance
contracts are excluded from assets reported on line 1b(1) but not
on line 2a.
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 1b(1), regardless of whether they
are reported on the 2010 Schedule H (Form 5500) (line 1I,
column (a)) or Schedule I (Form 5500) (line 1c, column (a)).
Additionally, asset and liability amounts must be determined in a
consistent manner. Therefore, if the value of any insurance
contracts have been excluded from the amount reported on line
1b(1), liabilities satisfied by such contracts should also be
excluded from the liability values reported on lines 1c(1), 1c(2),
and 1d(2) of the Schedule MB.
Line 1b(2). Actuarial Value of Assets. Enter the value of assets
determined in accordance with Code section 431(c)(2) and
ERISA section 304(c)(2). Do not adjust for items such as the
existing credit balance or the outstanding balances of certain
amortization bases, and do not include contributions designated
for 2010 in this amount.
Line 1c(1). Accrued Liability for Immediate Gain Methods.
Complete this line only if you use an immediate gain method (see
Rev. Rul. 81-213, 1981-2 C.B. 101, for a definition of immediate
gain method).
Lines 1c(2)(a), (b), and (c). Information for Plans Using
Spread Gain Methods. Complete these lines only if you use a
spread gain method (see Rev. Rul. 81-213 for a definition of
spread gain method).
Line 1c(2)(a). Unfunded Liability for Methods with Bases.
Complete this line only if you use the frozen initial liability or
attained age normal cost method.
Lines 1c(2)(b) and (c). Entry Age Normal Accrued Liability
and Normal Cost. For spread gain methods, these calculations
are used for purposes of the full funding limitation (see Rev. Rul.
81-13, 1981-1 C.B. 229).
Line 1d(1). Amount Excluded from Current Liability. Leave
line 1(d)(1) blank.
Line 1d(2)(a). Current Liability. All multiemployer plans,
regardless of the number of participants, must provide the
information indicated in accordance with these instructions. The
interest rate used to compute the current liability must be in
accordance with guidelines issued by the IRS and, pursuant to
the Pension Protection Act of 2006 (PPA), must not be more than
5 percent above and must not be more than 10 percent below the
weighted average of the rates of interest, as set forth by the
Treasury Department, on 30-year Treasury securities during the
4-year period ending on the last day before the beginning of the
2010 plan year.
The current liability must be computed using the mortality
tables referenced in section 1.431(c)(6)-1 of the Treasury
Regulations.
Each other actuarial assumption used in calculating the
current liability must be the same assumption used for
calculating other costs for the funding standard account. See
Notice 90-11, 1990-1 C.B. 319. The actuary must take into
account rates of early retirement and the plan’s early retirement
and turnover provisions as they relate to benefits, where these
would significantly affect the results. Regardless of the
valuation date, current liability is computed taking into account
only credited service through the end of the prior plan year. No
Instructions for Schedule MB (Form 5500)

salary scale projections should be used in these computations.
Do not include the expected increase in current liability due to
benefits accruing during the plan year reported on line 1d(2)(b)
in these computations.
Line 1d(2)(b). Expected Increase in Current Liability. Enter
the amount by which the current liability is expected to increase
due to benefits accruing during the plan year on account of
credited service and/or salary changes for the current year.
One year’s salary scale may be reflected.
Line 1d(2)(c). Expected Release From Current Liability for
the Plan Year. Enter the expected release from current liability
on account of disbursements (including single-sum
distributions) from the plan expected to be paid after the
valuation date but prior to the end of the plan year (see also
Q&A-7 of Rev. Rul. 96-21, 1996-1 C.B. 64).
Line 1d(3). Expected Plan Disbursements. Enter the amount
of plan disbursements expected to be paid for the plan year.
Line 2. All entries must be reported as of the beginning of the
2010 plan year. Lines 2a and 2b should include all assets and
liabilities under the plan except for assets and liabilities
attributable to: (1) rollover amounts or other amounts in
individual accounts that are not available to provide defined
benefits, or (2) benefits for which an insurer has made an
irrevocable commitment as defined in 29 CFR 4001.2.
Line 2a. Current Value of Assets. Enter the current value of
net assets as of the first day of the plan year. Except for plans
with excluded assets as described above, this entry should be
the same as reported on the 2010 Schedule H (Form 5500)
(line 1l, column (a)) or Schedule I (Form 5500) (line 1c, column
(a)). Note that contributions designated for the 2010 plan year
are not included on those lines.
Line 2b. Current Liability (beginning of plan year). Enter
the current liability as of the first day of the plan year. Do not
include the expected increase in current liability due to benefits
accruing during the plan year. See the instructions for line
1d(2)(a) for actuarial assumptions used in determining current
liability.
Column (1) — Enter the number of participants and
beneficiaries as of the beginning of the plan year. If the current
liability figures are derived from a valuation that follows the first
day of the plan year, the participant and beneficiary count
entries should be derived from the counts used in that valuation
in a manner consistent with the derivation of the current liability
reported in column (2).
Column (2) — Include the current liability attributable to all
benefits, with subtotals for vested and nonvested benefits in
the case of active participants.
Line 2c. This calculation is required under ERISA section
103(d)(11). Do not complete if line 2a divided by line 2b(4),
column (2), is 70% or greater.
Line 3. Contributions Made to Plan. Show all employer and
employee contributions for the plan year. Include employer
contributions made not later than 2½ months (or the later date
allowed under Code section 431(c)(8) and ERISA section
304(c)(8)) after the end of the plan year. Show only
contributions actually made to the plan by the date this
Schedule MB is signed.
Add the amounts in both columns (b) and (c) and enter both
results on the total line. All contributions must be credited
toward a particular plan year.
Line 4. Information on Plan Status. All multiemployer plans
regardless of the number of participants must provide the
information indicated in accordance with these instructions.

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Line 4a. Enter the code for the status of the multiemployer plan
for the plan year, as certified by the plan actuary, using one of
the following codes:

require IRS approval. If the change was made pursuant to Rev.
Proc. 2000-40, 2000-2 C.B. 357, check “Yes” for line 5m. If
approval was granted for this plan by either an individual ruling
letter or a class ruling letter, enter the date of the applicable
Code Plan Status
ruling letter in line 5n. Note that the plan sponsor’s agreement
to a change in funding method (made pursuant to Rev. Proc.
E
Endangered Status
2000-40, PPA section 201(b), or a class ruling letter) should be
S
Seriously Endangered Status
reported on line 8 of Schedule R (Form 5500).
C
Critical Status
N
Not in Endangered or Critical Status
Shortfall Method: Only certain plans may elect the shortfall
funding method (see Treasury Regulations section 1.412(c)(1)If the plan is certified to be in endangered status, seriously
2). Advance approval from the IRS for the election of the
endangered status, or critical status, attach a copy of the
shortfall method of funding is NOT required if it is first adopted
actuarial certification of such status to this Schedule MB. Also
for the first plan year to which Code section 412 applies. In
attach an illustration showing the details providing support for the addition, pursuant to PPA section 201(b), a plan does NOT
actuarial certification of status and label the illustration
need advance approval from the IRS to adopt or cease using
“Schedule MB, line 4a – Illustration Supporting Actuarial
the shortfall method if the plan (1) has not adopted or ceased
Certification of Status.” For example, if a plan is certified to be
using the shortfall method during the 5-year period ending on
in critical status based on Code section 432(b)(2)(B), show the
the day before the date the plan is to use the method, and (2)
funded percentage (if applicable) and the projection of the
is not operating under an amortization period extension and did
funding standard account to the year where the accumulated
not operate under such an extension during such 5-year
funding deficiency occurs.
period. In such a case, check “Yes” for line 5m. If a plan utilizes
this automatic approval to apply the shortfall method, the
Line 4c. If, in the plan year in which the Schedule MB is filed, a
benefit increase limitations of Code section 412(c)(7) apply.
certification was required to be made under Code section
432(b)(3)(A)(ii) and ERISA section 305(B)(A)(ii) with respect to
If a plan is not eligible for automatic approval as set forth in
scheduled progress during the plan year for which the Schedule
the preceding paragraph, advance approval from the IRS is
MB is filed, check “Yes” or “No” to reflect the certification. Attach
required if the shortfall funding method is adopted at a later
documentation comparing the current status of the plan to the
time, if a specific computation method is changed, or if the
scheduled progress under the applicable funding improvement or shortfall method is discontinued. In such a case there is no
rehabilitation plan to this Schedule MB. Label the documentation automatic limitation on benefit increases.
“Schedule MB, line 4c – Documentation Regarding Progress Reorganization Status: Attach an explanation of the basis for
Under Funding Improvement or Rehabilitation Plan.”
the determination that the plan is in reorganization for this plan
Lines 4d and 4e. If Code C (Critical Status) was entered on line year and label the explanation “Schedule MB, line 5 –
4a, an entry on line 4d is required. For purposes of lines 4d and
Reorganization Status Explanation.” Also, attach a
4e, in determining whether adjustable benefits have been
worksheet showing for this plan year:
reduced, only adjustable benefits that would otherwise be
1. The amounts considered contributed by employers,
protected under Code section 411(d)(6) and ERISA section
2. Any amount waived by the IRS,
204(g) are taken into account.
3. The development of the minimum contribution
Line 5. Actuarial Cost Method. Enter the primary method used. requirement (taking into account the applicable overburden
If the plan uses one actuarial cost method in one year as the
credit, cash-flow amount, contribution bases and limitation on
basis of establishing an accrued liability for use under the frozen required increases on the rate of employer contributions, and
initial liability method in subsequent years, answer as if the frozen any adjustments in accrued benefits), and
initial liability method was used in all years. The projected unit
4. The resulting accumulated funding deficiency, if any,
credit method is included in the “Accrued benefit (unit credit)”
which is to be reported on line 9n. (See Code sections 418B,
category of line 5c. If a method other than a method listed on
418C, and 418D.)
lines 5a through 5g is used, check the box for line 5j and specify
Label the worksheet “Schedule MB, line 5 – Reorganization
the method. For example, if a modified individual level premium
Status Worksheet.”
method for which actuarial gains and losses are spread as a part
Line 6. Actuarial Assumptions. If gender-based assumptions
of future normal cost is used, check the box for 5j and describe
are used in developing plan costs, enter those rates where
the cost method.
appropriate in line 6. Note that requests for gender-based cost
Check the appropriate box for the underlying actuarial cost
information do not suggest that gender-based benefits are
method used as the basis for this plan year’s funding standard
legal. If unisex tables are used, enter the values in both “Male”
account computation. If box 5h is checked, enter the period of
and “Female” lines. Check “N/A” for line 6b if the question is
use of the shortfall method in line 5k. For this purpose, enter
not applicable.
the calendar year (YY) which includes the first day of the plan
Attach a statement of actuarial assumptions (if not fully
year in which the shortfall method was first used. For plans in
described
by line 6) and actuarial methods used to calculate
reorganization status, check the appropriate box for the
the figures shown in lines 1 and 9 (if not fully described by line
underlying actuarial cost method used to determine charges
5), and label the statement “Schedule MB, line 6 –
and credits to the funding standard account and check the box
Statement
of Actuarial Assumptions/Methods.” The
for 5i.
statement must describe all actuarial assumptions used to
Changes in funding methods include changes in actuarial
determine the liabilities. For example, the statement for noncost method, changes in asset valuation method, and changes
traditional plans (e.g., cash balance plans) must include the
in the valuation date of plan costs and liabilities or of plan
assumptions used to convert balances to annuities.
assets. Changes in the funding method of a plan include not
Also attach a summary of the principal eligibility and benefit
only changes to the overall funding method used by the plan,
provisions
on which the valuation was based, including the
but also changes to each specific method of computation used
status of the plan (e.g., eligibility frozen, service/pay frozen,
in applying the overall method. Generally, these changes
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Instructions for Schedule MB (Form 5500)

benefits frozen), 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, an identification of benefits not included in the
valuation (e.g., shutdown benefits), 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, a description (or reasonably representative
sample) of plan early retirement factors, and any change in
actuarial assumptions or cost methods and justifications for any
such change (see section 103(d) of ERISA). Label the
summary “Schedule MB, line 6 – Summary of Plan
Provisions.”
Also, include any other information needed to disclose the
actuarial position of the plan fully and fairly, including the
weighted average retirement age.
Line 6a. Current Liability Interest Rate. Enter the interest
rate used to determine current liability. The interest rate used
must be in accordance with the guidelines issued by the IRS
and, pursuant to PPA, must not be more than 5 percent above
and must not be more than 10 percent below the weighted
average of the rates of interest, as set forth by the Treasury
Department, on 30-year Treasury securities during the 4-year
period ending on the last day before the beginning of the 2010
plan year. Enter the rate to the nearest .01 percent.
Line 6b. Check “Yes,” if the rates in the contract were used
(e.g., purchase rates at retirement).
Line 6c. Mortality Table. The mortality table published in section
1.431(c)(6)-1 of the Treasury Regulations must be used in the
calculation of current liability for non-disabled lives. Enter the
mortality table code for non-disabled lives used for valuation
purposes as follows:
Mortality Table

Code

1951 Group Annuity ...............................................................1
1971 Group Annuity Mortality (G.A.M.) .................................2
1971 Individual Annuity Mortality (I.A.M.) .............................3
UP-1984 ................................................................................4
1983 I.A.M..............................................................................5
1983 G.A.M. ..........................................................................6
1983 G.A.M. (solely per Rev. Rul. 95-28) .............................7
UP-1994 ................................................................................8
Mortality table applicable to current plan year under
section1.431(c)(6)-1 of the Income Tax Regulations ...........9
Other .................................................................................... A
None ......................................................................................0

Code 6 includes all sex-distinct versions of the 1983 G.A.M.
table other than the table published in Rev. Rul. 95-28, 1995-1
C.B. 74. Thus, for example, Code 6 also would include the
1983 G.A.M. male-only table used for males, where the 1983
G.A.M. male-only table with a 6-year setback is used for
females. Code A includes mortality tables other than those
listed in Codes 1 through 9, including any unisex version of the
1983 G.A.M. table.
Where an indicated table consists of separate tables for
males and females, add F to the female table (e.g., 1F). When
a projection is used with a table, follow the code with “P” and
the year of projection (omit the year if the projection is
unrelated to a single calendar year); the identity of the
Instructions for Schedule MB (Form 5500)

projection scale should be omitted. When an age setback or
set forward is used, indicate with “ – ” or “+” and the number of
years. For example, if for females the 1951 Group Annuity
Table with Projection C to 1971 is used with a 5-year setback,
enter “1P71-5.” If the table is not one of those listed, enter “A”
with no further notation. If the valuation assumes a maturity
value to provide the post-retirement income without separately
identifying the mortality, interest and expense elements, enter
on line 6c, under “Post-retirement,” the value of $1.00 of
monthly pension beginning at the plan’s weighted average
retirement age, assuming the normal form of annuity for an
unmarried person. In such a case, leave lines 6d and 6e blank.
Line 6d. Valuation Liability Interest Rate. Enter the
assumption as to the expected interest rate (investment return)
used to determine all the calculated values except for current
liability. If the assumed rate varies with the year, enter the
weighted average of the assumed rate for 20 years following
the valuation date. Enter rates to the nearest .01 percent.
Line 6e. Expense Loading. If there is no expense loading,
enter “0”. For instance, there would be no expense loading
attributable to investments if the rate of investment return on
assets is adjusted to take investment expenses into account. If
there is a single expense loading not separately identified as
pre-retirement or post-retirement, enter it under “Preretirement” and leave “Post-retirement” blank. Where expenses
are assumed other than as a percentage of plan costs or
liabilities, enter the assumed pre-retirement expense as a
percentage of the plan’s normal cost, and enter the postretirement expense as a percentage of plan liabilities. If the
normal cost of the plan is zero, enter the assumed preretirement expense as a percentage of the sum of lines 9c(1),
9c(2), and 9c(3), minus line 9h. Enter rates to the nearest .1
percent.
Line 6f. Salary Scale. If a uniform level annual rate of salary
increase is used, enter that annual rate. Otherwise, enter the
level annual rate of salary increase that is equivalent to the
rate(s) of salary increase used. Enter the annual rate as a
percentage to the nearest .01 percent, used for a participant
from age 25 to assumed retirement age. If the plan’s benefit
formula is not related to compensation, leave line 6f blank.
Line 6g. Estimated Investment Return – Actuarial Value.
Enter the estimated rate of return on the actuarial value of plan
assets for the 1-year period ending on the valuation date. For
this purpose, the rate of return is determined by using the
formula 2I/(A + B – I), where I is the dollar amount of the
investment return under the asset valuation method used for
the plan, A is the actuarial value of the assets one year ago,
and B is the actuarial value of the assets on the current
valuation date. Enter rates to the nearest .1 percent. If entering
a negative number, enter a minus sign (“ – ”) to the left of the
number.
Note. Use the above formula even if the actuary feels that the
result of using the formula does not represent the true estimated
rate of return on the actuarial value of plan assets for the 1-year
period ending on the valuation date. The actuary may attach a
statement showing both the actuary’s estimate of the rate of
return and the actuary’s calculations of that rate, and label the
statement “Schedule MB, line 6g – Estimated Rate of
Investment Return (Actuarial Value).”
Line 6h. Estimated Investment Return – Current (Market)
Value. Enter the estimated rate of return on the current value of
plan assets for the 1-year period ending on the valuation date.
(The current value is the same as the fair market value — see
line 1b(1) instructions.) For this purpose, the rate of return is
determined by using the formula 2I/(A + B – I), where I is the
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participant data used in the valuation for this plan year. Use the
format shown below and label the schedule “Schedule MB,
line 8b – 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
to14; 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
2b(3)(c), column (1), and using compensation to determine
benefits 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.
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 2b(3)(c), 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.

dollar amount of the investment return, A is the current value of
the assets one year ago, and B is the current value of the assets
on the current valuation date. Enter rates to the nearest .1
percent. If entering a negative number, enter a minus sign (“ – ”)
to the left of the number.
Note. Use the above formula even if the actuary feels that the
result of using the formula does not represent the true estimated
rate of return on the current value of plan assets for the 1-year
period ending on the valuation date. The actuary may attach a
statement showing both the actuary’s estimate of the rate of
return and the actuary’s calculations of that rate, and label the
statement “Schedule MB, line 6h – Estimated Rate of
Investment Return (Current Value).”
Line 7. New Amortization Bases Established. List all new
amortization bases established in the current plan year (before
the combining of bases, if bases were combined). Use the
following table to indicate the type of base established, and enter
the appropriate code under “Type of base.” List amortization
bases and charges and/or credits as of the valuation date. Bases
that are considered fully amortized because there is a credit for
the plan year on line 9j(3) should be listed. If entering a negative
number, enter a minus sign (“–”) to the left of the number.

Code
1
2
3
4
5
6
7

Type of Amortization Base
Experience gain or loss
Shortfall gain or loss
Change in unfunded liability due to plan amendment
Change in unfunded liability due to change in
actuarial assumptions
Change in unfunded liability due to change in
actuarial cost method
Waiver of the minimum funding standard
Initial unfunded liability (for new plan)

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.
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

Line 8a and 8d. Funding Waivers or Extensions. If a funding
waiver or extension request is approved after the Schedule MB
is filed, an amended Schedule MB must be filed with Form
5500 to report the waiver or extension approval (also see
instructions for line 9k(1)).
Line 8b. Schedule of Active Participant Data. Check “Yes”
only if this is a multiemployer plan covered by Title IV of ERISA
that has active participants.
If line 8b is “Yes,” attach a schedule of the active plan

Schedule MB, Line 8b—Schedule of Active Participant Data
YEARS OF CREDITED SERVICE
1 to 4

Under 1
Attained
Age

Average
No.

Comp.

Cash Bal.

No.

Comp.

40 & up

5 to 9

Average

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

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Instructions for Schedule MB (Form 5500)

average cash balance account, do not enter an amount for
age/service bins with 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 accountbased benefits.
 Scatter 2 - Provide participant count and average cash balance
account for all active participants, whether or not participants have
account-based benefits.

For example, if the difference is because contributions for a prior
year that were not previously reported are received this plan
year, attach a listing of the amounts and dates of such
contributions.
Line 9j(1). ERISA Full Funding Limitation. Instructions for this
line are reserved pending published guidance.
Line 9j(2). “RPA ’94” Override. Instructions for this line are
reserved pending published guidance.
Line 9j(3). Full Funding Credit. Enter the excess of (1) the
accumulated funding deficiency, disregarding the credit balance
and contributions for the current year, if any, over (2) the greater
of lines 9j(1) or 9j(2).

Line 9k(1). Waived Funding Deficiency Credit. Enter a credit
for a waived funding deficiency for the current plan year (Code
section 431(b)(3)(C)). If a waiver of a funding deficiency is
Alternative B:
 Scatter 1 - Provide participant count and average compensation pending, report a funding deficiency. If the waiver is granted after
for all active participants, whether or not participants have account- Form 5500 or Form 5500-SF is filed, file an amended Form 5500
or Form 5500-SF, as applicable, with an amended Schedule MB
based benefits (i.e., identical to Scatter 1 in Alternative A).
 Scatter 2 - Provide participant count and average cash balance to report the funding waiver (see Amended Return/Report in the
instructions for Form 5500 or Line B – Box for Amended
account for only those active participants with account based
benefits. If the number of participants with account-based benefits Return/Report in the instructions for Form 5500-SF, as
in a bin is fewer than 20, the average account should not be shown applicable).
even if there are more than 20 active participants in this bin on
Line 9k(2). Other Credits. Enter a credit in the case of a plan for
Scatter 1.
which the accumulated funding deficiency is determined under
the funding standard account if such plan year follows a plan
In general, information should be determined as of the
year for which such deficiency was determined under the
valuation date. Average cash balance accounts may be
alternative minimum funding standard.
determined as of either:
Line 9o. Reconciliation Account. The reconciliation account is
1. the valuation date or
made up of those components that upset the balance equation
2. the day immediately preceding the valuation date.
of Treasury Regulations section 1.412(c)(3)-1(b). Valuation
assets must not be adjusted by the reconciliation account
Average cash balance accounts that are offset by amounts
balance when computing the required minimum funding.
from another plan may be reported either as amounts prior to
Line 9o(1). This amount is equal to the prior year’s accumulated
taking into account the offset or as amounts after taking into
reconciliation amount due to prior waived funding deficiencies,
account the offset. Do not report the offset amount. For this or
increased with interest at the valuation rate to the current
any other unusual or unique situation, the attachment should
valuation date.
include an explanation of what is being provided.
Line 9o(2)(a). If an amortization extension is being amortized at
Line 9. Shortfall Method. Under the shortfall method of funding,
an interest rate that differs from the valuation rate, enter the prior
the normal cost in the funding standard account is the charge per
year’s “reconciliation amortization extension outstanding
unit of production (or per unit of service) multiplied by the actual
balance,” increased with interest at the valuation interest rate to
number of units of production (or units of service) that occurred
the current valuation date, and decreased by the year end
during the plan year. Each amortization installment in the funding
amortization amount based on the amortization interest rate from
standard account is similarly calculated.
the prior plan year.
Lines 9c and 9h. Amortization Charges and Credits. If there
Line 9o(3). Enter the sum of lines 9o(1) and 9o(2)(b) (each
are any amortization charges or credits, attach a maintenance
adjusted with interest at the valuation rate to the current
schedule of funding standard account bases and label the
valuation date, if necessary).
schedule “Schedule MB, lines 9c and 9h –Schedule of
Funding Standard Account Bases.” The attachment should
Note. The net outstanding balance of amortization charges and
clearly indicate the type of base (i.e., original unfunded liability,
credits minus the prior year’s credit balance minus the amount
amendments, actuarial losses, etc.), the outstanding balance of
on line 9o(3) (each adjusted with interest at the valuation rate, if
each base, the number of years remaining in the amortization
necessary) must equal the unfunded liability.
period, and the amortization amount. If bases were combined in
Line 10. Contribution Necessary to Avoid Deficiency. Enter
the current year, the attachment should show information on
the amount from line 9n. For plans in reorganization, see the
bases both prior to and after the combining of bases.
instructions for line 5. If applicable, file IRS Form 5330, Return of
The outstanding balance and amortization charges and
Excise Taxes Related to Employee Benefit Plans, with the IRS to
credits must be calculated as of the valuation date for the plan
pay the excise tax on the funding deficiency. There is a penalty
year.
for not filing the Form 5330 on time.
Line 9d. Interest as Applicable. Interest as applicable should
Line 11. In accordance with ERISA section 103(d)(3), attach a
be charged to the last day of the plan year.
justification for any change in actuarial assumptions for the
current plan year and label the attachment “Schedule MB, line
Line 9f. Note that the credit balance or funding deficiency at the
11 – Justification for Change in Actuarial Assumptions.”
end of “Year X” should be equal to the credit balance or funding
deficiency at the beginning of “Year X+1.” If such credit balances
or funding deficiencies are not equal, attach an explanation and
label the attachment “Schedule MB, line 9f – Explanation of
Prior Year Credit Balance/Funding Deficiency Discrepancy.”

Instructions for Schedule MB (Form 5500)

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