Clarification of 2022 Form 5500 Instructions


Schedule SB, Line 26b - Schedule of Projection of Expected Benefit Payments

Line 26b of Schedule SB requires plans covered by Title IV of ERISA that have 1,000 or more total participants as of the valuation date to submit a schedule showing a 50-year projection of expected benefit payments. This projection shows expected benefit payments for active participants, terminated vested participants, and retired participants and beneficiaries receiving payments determined assuming:

  1. No additional accruals,
  2. Experience (e.g., termination, mortality, and retirement) is in line with valuation assumptions,
  3. No new entrants, and
  4. Benefits are paid in the form assumed for valuation purposes.

If you are required to submit this schedule for a plan that uses the annuity substitution rule provided in Section 1.430(d)-1(f)(4)(iii)(B) to determine the funding target instead of assuming benefits are paid in the form assumed for valuation purposes (per item 4. above), you may assume benefits are paid as an annuity (i.e., you may report the projected benefits that are used to determine the funding target).

This clarification is proposed to be added to the 2023 Form 5500 instructions for line 26b of Schedule SB. See PBGC’S August 29, 2022 Notice of Proposed Submission of Information Collection PDF for further information.