Annual Information Return/Report

20187 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. Final
regulations providing additional rules under Code sections
430(a), 430(c), 430(e), 430(f), 430(h), 430(j), 436, and 4971
(and the corresponding provisions of ERISA (section 303))
were published in the Federal Register on September 9, 2015
and apply for plan years beginning on or after January 1, 2016.
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”), Pub. L. No. 110-458, the Preservation of
Access to Care for Medicare Beneficiaries and Pension Relief
Act of 2010 (“PRA 2010”), Pub. L. No. 111-192, Moving Ahead
for Progress in the 21st Century Act (“MAP-21”), Pub. L. No.
112-141, the Cooperative and Small Employer Charity Pension
Flexibility Act of 2014 (“CSEC Act”), Pub. L. No. 113-97, the
Highway and Transportation Funding Act of 2014 (HATFA),
Pub. L. No. 113-159, and the Bipartisan Budget Act of 2015
(BBA’15), Pub. L. No. 114-74, 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, as applicable, but must take
into account the provisions of WRERA, PRA 2010, MAP-21,
CSEC Act, HATFA, any other amendments to the funding rules
that are enacted, and any applicable published guidance.

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 (including attachments) 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 (including
attachments) 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 5500EZ. 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).

Specific Instructions
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 or any portion thereof 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 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, with the exception of Part III, the
data entered on Schedule SB should be the sum of the
individual amounts computed for each employer. The
percentages reported in Part III should be calculated based on
the reported aggregate numbers rather than by summing up
the individual percentages. The Schedule SB data for each
employer’s portion of the plan must be submitted as an
attachment. This is accomplished by completing and attaching
a Schedule SB for each employer or by attaching a document
containing that information (e.g., a table showing a row for
each Schedule SB data item and a column for each
employer). 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.

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.
MAP-21 amended Code section 430(h)(2)(C) and ERISA
section 302(h)(2)(C) to provide that, for certain purposes, each
of the three segment rates described in those sections is
adjusted as necessary to fall within a specified range that is
determined based on an average of the corresponding
segment rates for the 25-year period ending on September 30
of the calendar year preceding the first day of the plan year.
Accordingly, if the funding target and target normal cost for a
plan are determined using these segment rates, the segment
rates used to determine the minimum required contribution and
the adjusted funding target attainment percentage (“AFTAP”)
used to apply funding-based benefit restrictions under Code
section 436 and ERISA section 206(g) may be different from
those used for other purposes (such as the segment rates
used to determine the deductible limit under Code section
404(o)). In such cases, report all information on Schedule SB
reflecting the assumptions used to determine the minimum
required contribution and the AFTAP used to apply fundingbased benefit restrictions.
Note. (1) For a plan funded with insurance (other than a plan
described in Code section 412(e)(3) or ERISA section 301(b)),
refer to section 1.430(d)-1(c)(2) of the Income Tax Regulations
regarding whether to include the liabilities for benefits covered
under insurance contracts held by the plan and whether to
include the value of the insurance contracts in plan assets.
(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 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.

General Instructions, Parts I through IX, Statement
by Enrolled Actuary, and Attachments
The Pension Protection Act of 2006, as amended (PPA),
provides delayed effective dates for the funding rules under
Code section 430 for plans meeting certain criteria (certain
multiple-employer plans maintained by specified types of
cooperative organizations (eligible cooperative plans), and
maintained by section 501(c)(3) organizations (eligible charity
plans), as described in PPA section 104 as amended). Except
as noted below, Parts I through VIII must be completed for all
single and multiple-employer defined benefit plans, regardless
of size or type. See instructions for line 27 for additional
information to be provided for certain plans with special
circumstances. Part IX is completed only for those plans for
which an alternative amortization schedule was elected under
section 430(c)(2)(D) of the Code or section 303(c)(2)(D) of
ERISA, as amended by PRA 2010, and for those plans for
which funding relief was elected under section 107 of Pension
Protection Act of 2006, as added by PRA 2010.
The Pension Protection Act of 2006, as amended (PPA),
provides delayed effective dates for the funding rules under
Code section 430 for plans meeting certain criteria (certain
multiple-employer plans maintained by eligible cooperative
plans, and eligible charity plans, as described in PPA section
104). 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

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.” In
addition, the actuary may offer any other comments related to
the information contained in Schedule SB. 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
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Instructions for Schedule SB (Form 5500)

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.

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, any 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.

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 or
any portion thereof on an attachment may result in the
rejection of the filing.

Part I – Basic Information
Note. All entries in Part I must be reported as of the valuation
date, reflecting the assumptions and amounts generally used
to determine the minimum required contribution. In the case of
a plan described in section 104 of PPA, the information should
be reported as if PPA provisions were effective for all plan
years beginning after December 31, 2007.
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 Code section 430(g)(2)(B) and ERISA
section 303(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.
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
Instructions for Schedule SB (Form 5500)

• 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 portion of the funding target
attributable to vested benefits. For this purpose benefits
considered to be vested for PBGC premium purposes must be
included.
• Column (3)—Enter the funding target attributable to all
benefits, both vested and nonvested.
For columns (2) and (3), the funding target must be calculated
using the methods and assumptions provided in Code sections
430(h) and (i), ERISA sections 303(h) and (i), and other related
guidance.
Unless the plan sponsor has received approval to use
substitute mortality tables in accordance with Code section
430(h)(3)(C) and ERISA section 303(h)(3)(C), the funding
target must be computed using the mortality tables for nondisabled lives, as described in section 1.430(h)(3)-1 of the
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 Code section
430(h)(3) and ERISA section 303(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 Code section 430(i)(1)(B) and ERISA
section 303(i)(1)(B).
If the plan has been in at-risk status for any two or more of
the preceding four plan years, also include the loading factor
required in Code section 430(i)(1)(C) and ERISA section
303(i)(1)(C). If the plan is in at-risk status and has been in atrisk status for fewer than five consecutive years, report the
funding target amounts after reflecting the transition rule
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provided in Code section 430(i)(5) and ERISA section
303(i)(5). For example, the funding target for a plan that is in
at-risk status for 20187 and was in at-risk status for the 20154,
20165 and 20176 plan years (but not the 20143 plan year) will
reflect 80% of the funding target using the special at-risk
assumptions and 20% of the funding target determined without
regard to the at-risk assumptions.
Determining whether a plan is in at-risk status. Refer to
Code section 430(i)(4) and ERISA section 303(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”) for the
preceding plan year fell below specified thresholds.
A plan with over 500 participants is in at-risk status for
20187 if both:

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, column (3),
reflecting the special assumptions and the loading factor for atrisk 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 Code section 430(i)(5)
and ERISA section 303(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).

• the FTAP for 20176 (line 14 of the 20176 Schedule SB) is
less than 80%, and
• the at-risk funding target attainment percentage for 20176 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 Code section
430(i)(5) and ERISA section 303(i)(5) for plans that have been
in at-risk status for fewer than five consecutive years, and
disregarding the loading factor in Code section 430(i)(1)(C)
and ERISA section 303(i)(1)(C). For plans that were in at-risk
status for the 20176 plan year, the at-risk funding target used
to determine whether the plan is in at-risk status for the 20187
plan year is the amount reported in line 4b of the 20176
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 Code section
430(i)(4) and ERISA section 303(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 for purposes of determining
the minimum required contribution.
● 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 Code section 430(i)(5) and ERISA section
303(i)(5), and disregarding the loading factor in Code section
430(i)(1)(C) and ERISA section 303(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
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.”
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, column (3) 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

Part II – Beginning of Year Carryover 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 – 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 Code section 430 or ERISA section
303, leave both columns blank.
Line 8. Portion Elected for Use 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

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Instructions for Schedule SB (Form 5500)

Schedule SB, discounted to the beginning of the prior plan
year using the effective interest rate for the prior plan year.
Reflect the full amount reported in line 35 of the prior-year
Schedule SB even if the amount is larger than the minimum
required contribution reported for that year on line 34 of the
prior-year Schedule SB. This can occur under the special rule
for elections to use balances in excess of the minimum
required contribution under section 1.430(f)-1(f)(1)(ii) of the
regulations, if no timely election is made to revoke the excess
amount.
If this is the first year for which the plan is subject to the
minimum funding rules of Code section 430 or ERISA section
303, 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 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 Code section 430 or ERISA
section 303, 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 Code section 430 or ERISA section
303, 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 38a on the
Schedule SB for the prior plan year.
Line 11b(1). 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%).
In column (b), enter the product of the prior year’s effective
interest rate in line 11b(1) and the excess (if any) of the
amount reported on line 38a for the prior year over the amount
reported on line 38b for the prior year.
However, if the valuation date for the prior plan year was
not the first day of the plan year (permitted for small plans
only), enter the result of the following calculation:
Instructions for Schedule SB (Form 5500)

Step 1: Determine the excess (if any) of the amount
reported on line 38a for the prior year over the amount
reported on line 38b for the prior year,
Step 2: Adjust the result in Step 1 to the first day of the
prior year using the effective interest rate for the prior year,
Step 3: Multiply the result in Step 2 by the prior year’s
effective interest rate in line 11(b)(1), and
Step 4: Reduce the result in Step 3 by interest on the
result in Step 2 of this paragraph for the period between the
first day of the prior plan year and the prior-year valuation date
using the effective interest rate for the prior year.
The amount reported in line 11(b)(1) is zero if the prior
year’s valuation date was the last day of the prior plan year.
Line 11(b)(2). In column (b), enter the product of the prior
year’s actual rate of return (from line 10) and the present value
of excess contributions reported on line 38b for the prior year.
However, if the valuation date for the prior plan year was
not the first day of the plan year (permitted for small plans
only), enter the result of the following calculation:
Step 1: Adjust the prior-year amount reported in line 38b
to the first day of the prior year, using the effective interest rate
for the prior year,
Step 2: Multiply the result in Step 1 by the prior year’s
actual rate of return (from line 10), and
Step 3: Reduce the result in Step 2 by interest on the
result in Step 1 for the period between the first day of the
prior plan year and the prior-year valuation date using the
effective interest rate for the prior year.
Line 11c. Enter the sum of lines 11a, 11b(1) and 11(b)(2).
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 Code section 430 or ERISA section
303, leave lines 11a–d blank.
Line 12. Other Reductions 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 Code section 436(f)(3) and ERISA section
206(g)(5)(C)) the funding standard carryover balance or
prefunding balance, as applicable, under Code section 430(f)
and ERISA section 303(f), other than any amount reported in
line 8 that is treated as a reduction in these balances under the
special rule in section 1.430(f)-1(f)(3)(ii) (relating to amounts
elected for use to offset the minimum required contribution that
exceed the minimum required contribution for the plan for the
plan year, and which are not revoked by the plan sponsor).
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 Code section 430 or ERISA section
303, leave column (b) blank.
Line 13. Balance at Beginning of Current Year.
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● 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 Code section 430 or ERISA section
303, leave column (b) blank.

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 does not correspond to
the valuation results reported on this Schedule SB (for
instance, if any adjustments pertaining to the plan year were
made 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 Code section 430(f)(3) and ERISA section 303(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
the funding target for the preceding plan year (as described in
Code section 430(f)(3)(C) and ERISA section 303(f)(3)(C)) is
80% or more.
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, column (3).
● 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 amount subtracted from the
assets for the purpose of the above calculations is 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 2a divided by the funding target

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 Code section 430(d)(2) and ERISA section
303(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.
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 (3) 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, even if it
does not correspond to the valuation results reported on this
Schedule SB (for instance, if any adjustments pertaining to the
plan year were made subsequent to the valuation or the
AFTAP). If no AFTAP was certified for the plan year, attach an
explanation and (1) report 100%, if the plan's adjusted funding
target for the plan year is zero, as described in section 1.4361(j)(1)(iv) of the Treasury regulations, or (2) leave line 15 blank
if the plan's adjusted funding target for the plan year is not
equal to zero. Label the attachment, "Line 15, Reconciliation
of differences between valuation results and amounts
used to calculate AFTAP.” 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
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Instructions for Schedule SB (Form 5500)

reported in line 3d, column (3), is less than 70%, enter such
percentage. Otherwise, leave this line blank.

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
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 Contributions from Prior Plan Years.
Under code section 4971(c)(4)(B), if a plan has an unpaid
minimum required contribution that has not been corrected at
the time a payment is made (i.e., the deadline for making the
minimum required contribution for a prior plan year had passed
and the minimum required contribution for that year was not
yet paid) that payment is allocated first to plan years with
unpaid minimum required contributions, beginning with the
earliest such plan year, and then to the minimum required
contribution for the current plan year. Within a given plan year,
payments are credited first to the earliest unpaid installment
until the minimum required contribution for that plan year is
satisfied. 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 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 Code section
430 or ERISA section 303 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 Code section 436 and ERISA section 206(g). 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

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 Code section 430(j) and ERISA section
303(j). Contributions made to meet the liquidity requirement of
Code section 430(j)(4) and ERISA section 303(j)(4) should be
reported. Include contributions made to avoid benefit
restrictions under Code section 436 and ERISA section 206(g).
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 Code section 436 and ERISA section
206(g) 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, as reported on line 5.
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 interest
rate(s) used to adjust the contributions (i.e., the effective
interest rate for timely contributions and the applicable effective
interest rate plus 5% for late quarterly installments) and the
periods during which each rate applies, 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
Instructions for Schedule SB (Form 5500)

-7-

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 Code section 430(j)(3)
and ERISA section 303(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 (3) 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.
If the valuation date for the prior plan year was not the first
day of that plan year, the amount subtracted from the actuarial
value of assets for the above calculation is the sum of the
amounts reported on line 13, columns (a) and (b) of the prioryear Schedule SB, but 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 plan for the prior
plan year.
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 Code section 430(c)(5) and ERISA section 303(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 Code section 430(j)(4) and ERISA section
303(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
Certification.” See Code section 430(j)(4)(E)(ii)(II) and ERISA
section 303(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 Code
section 430(j)(4)(E) and ERISA section 303(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).

Line 21a. Enter the three segment rates used to calculate the
funding target and target normal cost as provided under Code
section 430(h)(2)(C) and ERISA section 303(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 PPA.
Line 21b. Code section 430(h)(2)(E) and ERISA section
303(h)(2)(E) provide that the segment rate(s) used to measure
the funding target and target normal cost 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 and target normal cost 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 and target normal
cost. Enter “0” if the rates used to determine the funding target
and target normal cost 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 and target normal cost were
determined based on rates published for November, enter “2.”
Note. The plan sponsor’s interest rate election under Code
section 430(h)(2) or ERISA section 303(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, see
the regulations under section 430(h)(2) for circumstances in
which a change in interest rate may be made without obtaining
approval from 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
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 regulations as published by the IRS must
be used to determine the funding target and target normal cost

Part V – Assumptions Used To Determine Funding
Target and Target Normal Cost
Line 21. Discount Rate. All discount rates are to be reported
and used as published by the IRS, and are to be applied as
annual rates without adjustment.

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Instructions for Schedule SB (Form 5500)

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 set of mortality
tables was used to determine the funding target and target
normal cost. If one set of mortality tables was used for certain
populations within the plan and a different set of mortality
tables was used for other populations, check the box for the
set of mortality tables that applied to the largest population. If
more than one set of mortality table was used (other than for
disabled lives pursuant to section 430(h)(3)(D)), 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 Sets of Mortality Tables.”
Note: When checking one of the options below, if the table
used was provided under Treas. Reg. § 1.430(h)(3), effective
before 2018, check the option in the row labeled “Prior
Regulation.” If the table used was provided under Treas. Reg.
§ 1.430(h)(3), effective as of January 1, 2018, check the option
in the row labelled “Current Regulation.”
● 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, the mortality ratio used to develop the table for
any population, whether the table is constructed based on full
or partial credibility, the partial credibility weighting factor if
applicable, 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
participants are assumed to elect each optional form of benefit
(including lump sum distributions), whether mortality tables are

Instructions for Schedule SB (Form 5500)

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 Code
section 411(a)(13)(C) and ERISA section 203(f)(3) (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.

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.”
If the “Yes” box is checked and the non-prescribed
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.
Line 25. Change in Method. If a change in the method has
been made for the current plan year, check “Yes.” For this
purpose, a change in funding method refers to not only a
change in the overall method used by the plan, but also each
specific method of computation used in applying the overall
method. Accordingly, funding 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). Also check "Yes" if there has been a change
in the method for determining the discount rates reported in line
21. In general, any changes in a plan’s method must be
approved by the IRS. However, see the regulations under Code
section 430 and Announcement 2010-3, 2010-4 I.R.B. 333, for
circumstances in which a change in method may be made
without obtaining approval from the IRS.
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 certain changes in
funding method should be reported on line 8 of Schedule R
(Form 5500).
-9-

1. The number of active participants in the age/service bin,
Schedule SB, line 26 –Schedule of Active Participant Data
YEARS OF CREDITED SERVICE
Under 1
Average

Attained
Age
No.

Comp.

Cash Bal.

1 to 4
Average
No.

Comp.

5 to 9
Average

Cash Bal.

No.

Comp.

Cash Bal.

40 & up
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

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.
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.
When some active participants do not have cash balance
accounts, an alternative is provided for showing compensation
and cash balance accounts, requiring two age/service scatters
as follows:
● Scatter 1 – Provide participant count and average
compensation for all active participants.
● 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

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 3d,
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 3d, 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.
General Rule. When all active participants in the plan have
a cash balance account, data to be shown in each bin includes:
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Instructions for Schedule SB (Form 5500)

items from the 2007 Schedule B, excluding line 9f and Part II,
and attach the 2007 Schedule B and all applicable attachments
to the Schedule SB. Note that under PPA ‘06, the third
segment rate determined under § 430(h)(2)(C)(iii) and ERISA
section 303(h)(2)(C)(iii) is substituted for the current liability
interest rate under § 412(b)(5)(B) and ERISA section
302(b)(5)(B) (as in effect before PPA ‘06).
If the plan’s funded percentage (as defined in §
433(j)(5)(B)) as of the beginning of the plan year is less than
80%, then the plan is in funding restoration status. If the plan’s
enrolled actuary certifies that the plan is in funding restoration
status for a plan year, include the following additional
information in the attachment “20187 Schedule SB, line 27 –
Actuarial Information for CSEC Plans:” (a) the annual
certification by the enrolled actuary for the plan; and (b) the
value of plan assets and the funding liability, including any
adjustments to these amounts as specified in § 433(j)(4) and
ERISA section 306(j)(4).
If a plan in funding restoration status has an accumulated
funding deficiency based on the excess of the employer’s
normal cost determined under line 9b, over the amount actually
contributed to the plan for the plan year, as determined under
§ 433(j)(1) and ERISA section 306(j)(1), then the details of this
calculation must be included in the attachment “20187
Schedule SB, line 27 – Actuarial Information for CSEC Plans.”
In the case of a plan for which a spread gain funding method is
used, the normal cost that is used to apply this rule is the
normal cost determined under the entry age normal cost
funding method.
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
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.”
Airlines using 10-year amortization period for initial
post-PPA 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.
Airlines with frozen plans using alternative 17-year
funding schedule (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

applicable to that code, including completion of any required
attachments.
Code
1

2

3
4

5

6

7
8

Alternative Funding Rule
A CSEC plan that is described in Code section
414(y). This includes certain multiple-employer
plans maintained by rural cooperatives and
other specified cooperative organizations and
certain plans maintained by more than 1
employer (determined after application of Code
section 414(b) and (c)), all of which are
described in Code section 501(c)(3). Do not use
Code 1 for a plan that satisfies the definition of a
CSEC plan that has made the election to not be
treated as a CSEC plan.
This code, formerly used by certain plans
maintained by PBGC settlements as described
in section 105 of PPA, is no longer applicable
and should not be used
Reserved
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)
Airlines with frozen plans using alternative 17year funding schedule under section 402(a)(1)
of PPA
Interstate transit company described in section
115 of PPA
A plan subject to section 104 of PPA as
amended that is not a CSEC plan. This includes
plans that fit within the definition of a CSEC plan
that elect out of CSEC plan status and become
subject to section 104 of PPA as amended, and
certain plans maintained by more than 1
employer (determined without regard to section
414(c)) where all of the employers are described
in section 501(c)(3). Do not use Code 8 for a
PPA section 104 plan that has made the
election to not be treated as an eligible charity
plan.

Special Instructions for codes 1 through 8
CSEC Plans, as described in Code section 414(y) and
subject to Code section 433 (code 1).
Complete only the following on Schedule SB:
•
•

Lines A through F
Part I (including signature of enrolled actuary),
determined as if PPA ’06 provisions were effective for
all plan years beginning after December 31, 2007.
•
Part III, line 14, determined as if PPA ‘06 provisions
were effective for all plan years beginning after
December 31, 2007.
•
Part IV, line 18.
•
Part V, determined as if PPA ‘06 provisions were
effective for all plan years beginning after December
31, 2007.
Also, report other information for the current plan year using
a 2007 Schedule B (Form 5500). Label this attachment “20187
Schedule SB, line 27 – Actuarial Information for CSEC
Plans.” Each attachment must include the plan name, the plan
sponsor’s name and EIN, and the plan number. Complete all
Instructions for Schedule SB (Form 5500)

-11-

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 Code section 430 or ERISA section
303, 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.

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.
● 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.
Plans entitled to delayed effective dates for PPA funding
rules (code 8).
For plan years before Code section 430 and ERISA section
303 apply to the plan, 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 all plan years beginning
after December 31, 2007.
● Part III, line 14, determined as if PPA provisions were
effective for all plan years beginning after December 31, 2007.
Part IV, line 18
● Part V, determined as if PPA provisions were effective for
all plan years beginning after December 31, 2007.
● If the minimum required contribution for any year was
determined using pension funding relief under section 107 of
PPA ’06, as added by PRA 2010, complete Part IX, lines 41a
and 41b. Also, report other information for the current plan year
using a 2007 Schedule B (Form 5500). Label this attachment
“20187 Schedule SB, line 27 – Actuarial Information Based on
Pre-PPA 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).

Part VIII – Minimum
Required Contribution for Current Year
Line 31. Target Normal Cost and Excess Assets.
Line 31a. Target Normal Cost (line 6). Enter the target
normal cost as reported in line 6.
Line 31b. Excess Assets. Enter the excess, if any, of the
value of assets reported on line 2b reduced by any funding
standard carryover balance and prefunding balance on line 13,
columns (a) and (b), over the funding target reported on line
3d, column (3). 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 reported on line 3d,
column (3) (but not less than zero). Limit the amount reported
in line 31b so that it is not greater than the target normal cost
reported in line 31a.
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)) is zero, all amortization bases and related
installments are considered fully amortized. In this case, enter
zero. Otherwise, enter the sum (but not less than zero) 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 (3), is less than or
equal to the reduced value of assets as described below.
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

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
-12-

Instructions for Schedule SB (Form 5500)

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 (3),
minus the reduced value of assets, but not less than zero.
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 (but not
less than zero) 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.
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 or valuation dates.
Note. If an election was made to use an alternative shortfall
amortization schedule under Code section 430(c)(2)(D) and
ERISA section 303(c)(2)(D) added by PRA 2010, the shortfall
amortization installment is the amount determined in
accordance with the shortfall amortization schedule chosen
and guidance issued by Treasury and the IRS. Include any
increase to the shortfall amortization installment for this year
due to the installment acceleration amount, as provided in
Code section 430(c)(7) and ERISA section 303(c)(7).

Instructions for Schedule SB (Form 5500)

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)) 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.
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
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 or
valuation dates.
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.
If any of the shortfall amortization bases shown on this
attachment are being amortized using an alternative
amortization schedule in accordance with Code section
430(c)(2)(D) or ERISA section 303(c)(2)(D), identify the
amortization schedule being used and show separately the
amount of any installment acceleration amount added to the
shortfall amortization installment for the current plan year
under Code section 430(c)(7) or ERISA section 303(c)(7).
Label the schedule “Schedule SB, line 32 – Schedule of
Amortization Bases.”

-13-

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.
Line 34. Total Funding Requirement Before Reflecting
Carryover/Prefunding Balances. Enter the target normal cost
in line 31a, minus the excess assets in line 31b, plus the
amortization installments reported in lines 32a and 32b,
reduced by any waived amounts reported in line 33.
Line 35. Balances Elected for Use 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 elected for use 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).
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).
Refer to the regulations under Section 430 of the Code for
additional information.
Special rule for elections to use balances in excess of
the minimum required contribution. Section 1.430(f)-1(f)(3)(ii)
of the regulations provides an exception to the general rule
requiring that any elections to use the funding standard
carryover balance and/or prefunding balance to offset the
minimum required contribution are irrevocable. Under this
exception, such an election may be revoked to the extent that
the amount of the election exceeds the minimum required
contribution for the plan year as reported in line 34. If a timely
election is made to revoke the excess amount, report only the
amount of the election used to offset the minimum required
contribution on line 35. If the excess amount is not revoked by
means of a timely election, report the full amount of the election
on line 35 even if it exceeds the minimum required contribution
reported on line 34.
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. Present Value of Excess Contributions for Current
Year.
Line 38a. If line 37 is greater than line 36, enter the amount by
which line 37 exceeds line 36. Otherwise, enter “0.” This
amount (plus interest, if applicable) is the maximum amount by
which the plan sponsor may elect to increase the prefunding
balance.
Line 38b. Enter the amount of any portion of the amount
shown on line 38a that results solely from the use of the
funding standard carryover balance and/or prefunding balance
to offset the minimum required contribution.
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 Contributions 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. If this
amount is greater than zero, file Form 5330, Return of Excise
Taxes Related to Employee Benefit Plans and pay the 10%
excise tax on the unpaid minimum required contributions.

Part IX – Election to Use Pension Funding Relief
under PRA 2010
Note. This section is completed only if:
(1) an election was made to use an alternative shortfall
amortization schedule for any election year under Code section
430(c)(2)(D) or ERISA section 303(c)(2)(D), or
(2) in the case of a plan subject to a delayed effective date for
PPA funding rules under section 104 of PPA, an election was
made to determine the minimum required contribution for any
election year using the extended amortization periods under
section 107 of PPA ’06, as added by PRA 2010 (complete lines
41a and 41b only).
Line 41a. Schedule elected. Check the applicable box to
indicate which alternative shortfall amortization schedule is
being used, the 2 plus 7-year schedule or the 15-year
schedule.
Line 41b. Eligible plan year(s) for which the election in line
41a was made. Check the box(es) to indicate the eligible plan
years for which the election was made to use an alternative
amortization schedule under Code section 430(c)(2)(D) or
ERISA section 303(c)(2)(D) or the relief under section 107 of
PPA ’06 as added by PRA 2010. Note that an election to use
an alternative amortization schedule may only be made with
respect to one or two eligible plan years. Refer to Code section
430(c)(2)(D)(v) or ERISA section 303(c)(2)(D)(v) for the
definition of eligible plan years.
Line 42. Amount of acceleration adjustment. Enter the total
amount included in the shortfall amortization installments
reported for the current year on line 32a as a result of
increases due to any installment acceleration amount under
Code section 430(c)(7) or ERISA section 303(c)(7), taking into
account any amounts carried over from previous years and the
annual limitation in Code section 430(c)(7)(C)(ii) or ERISA
section 303(c)(7)(C)(ii).
Line 43. Excess installment acceleration amount to be
carried over to future plan years. Enter the amount of any
excess installment acceleration amount for the current year
(including any amounts carried to the current year from prior
years) that will be carried over to future plan years in
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Instructions for Schedule SB (Form 5500)

accordance with Code section 430(c)(7)(C)(iii) or ERISA
section 303(c)(7)(C)(iii).

Instructions for Schedule SB (Form 5500)

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