qualified plan design prepared for: salmon …

QUALIFIED PLAN DESIGN

PREPARED FOR:

SALMON ENTERPRISES, INCDefined Benefit Plan

PREPARED BY:

Benefits Galore123 Main St

Brielle, NJ 08730732-223-5575

Salmon Enterprises

DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED

VALUATION AS OF 12/31/2019

Summary of Plan Provisions

ID: SALMON_

SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt401 Pg2

Plan Effective Date January 1, 2006

Plan Anniversary Date January 1, 2019

Participation Eligibility Minimum age: None

Minimum months of service: 12

Plan Entry Date Plan anniversary nearest the satisfaction of the participation requirements

Normal Retirement Date First day of the month coincident with or following age 65 and the completion of 5 years of participation

Normal Form of Benefit Single Life Annuity

(Qualified Joint and Survivor annuity is the required standard option)

Normal Retirement Benefit 42.114% of compensation plus 11.029% of compensation in excess of the integration level:

Table: I - Maximum: $132900 - Year: 2019

Excess portion of benefit reduced by 1/35 for each year of accrual service less than 35

IRC415 maximum annual benefit: $225,000

Actuarially adjusted under IRC415(b) for benefit

commencement age and benefit form

Benefit limited to 100% of compensation

Compensation Definition 3 year final average salary

Annual salary up to $280,000 considered

Vested Retirement Benefit Vesting Schedule:

20% a year after 2 years (100% after 6 years)

Exclude service before age 18

Exclude service before effective date

Computation Period: Elapsed Time Method

Based on periods of service rounded to nearest year

Accrued Retirement Benefit Pro-rated on service

Early Retirement Benefit Accrued retirement benefit

Eligibility requirements:

Minimum years of service: 15

Minimum age: 60

Benefit Adjustment: If retirement is after normal retirement, the benefit is the greater of the in-service benefit as of the retirement date and the normal retirement benefit actuarially increased to the retirement date.

Salmon Enterprises



Summary of Actuarial Method and Assumptions


Normal Retirement Benefit

Actuarial Cost Method: PPA06 Funding Rules

IRC430 Funding Yield Curve Segmented Rates

First Segment: 3.74%

Second Segment: 5.35%

Third Segment: 6.11%

IRC404 Funding Yield Curve Segmented Rates




PBGC Segmented Rates




Pre-Retirement Valuation Assumptions

Mortality Table 2019 430 Optional Combined N2018-02

Salary Increases 3.5% per year

Retirement Valuation Assumptions

Mortality Table 2019 430 Optional Combined N2018-02

Optional Forms Assumption

100% of participants will elect the Plan Normal Form

Retirement Incidence

Participants are assumed to retire on the Normal Retirement Date

Pre-Retirement Actuarial Equivalence Assumptions

Investment Earnings 5% Effective annual rate

Retirement Actuarial Equivalence Assumptions


Mortality Table 1984 Unisex Pension (UP-84)

Assumptions for IRC415 Maximum Benefit Actuarial Adjustments


Mortality Table 2019 417 Applicable Mortality Table N2018-02

Salmon Enterprises



Summary of Actuarial Method and Assumptions


Retirement Protection Act of 1994 Interest Rate for non-life annuities

Investment Earnings 5.5% Effective annual rate

Salmon Enterprises



Employee Census


Employee

Name

Ages

PA AA RA

Date

of

Birth

Date

of

Hire

Date

of

Entry

Date of

Normal

Retirement

Status

Code

CHAR, ARCTIC 39 53 65 05/20/67 05/10/99 01/01/06 06/01/2032 AKH

SALMON, ATLANTIC 36 50 65 03/15/70 01/01/92 01/01/06 04/01/2035 AKH

SALMON, COHO 41 55 65 07/19/64 04/15/93 01/01/06 08/01/2029 A

TROUT, CUTTHROAT 25 35 65 12/15/84 10/01/08 01/01/10 01/01/2050 A

TROUT, RAINBOW 36 45 65 08/05/74 02/16/10 01/01/11 09/01/2039 A

Total Number of Employees: 5

Active Participants: 5 Inactive Participants: 0

Terminated Participants: 0 Ineligible Employees: 0

Number of participants who entered during the previous plan year: 0

Number of participants who terminated during the previous plan year: 0

Number of terminated participants w/ zero vested accrued benefit: 0

Number of terminated participants who are nonvested: 0

Status code column indicates employee status:

A Indicates Active Participant

K Indicates IRC416 KEY Participant

H Indicates IRC414(q) Highly Compensated Employee

Salmon Enterprises



PPA06 Accrued Benefits


Participant Name

Benefit Description

BOPY: Compensation to BOPY

Average

Comp

Accrued

Benefit

Present

Value

EOPY: Compensation to EOPY

Average

Comp

Accrued

Benefit

Present

Value

BOPY: Compensation to ARD

Average

Comp

Accrued

Benefit

Present

Value

CHAR, ARCTIC

Normal Form 18,333.33 5,220.29 346,111 19,583.33 5,899.02 391,111 23,333.33 6,811.59 451,615

SALMON, ATLANTIC

Normal Form 12,500.00 3,478.60 189,551 13,888.89 4,088.07 222,761 23,333.33 7,093.56 386,532

SALMON, COHO

Normal Form 833.33 253.46 20,392 1,388.89 438.69 35,295 3,408.59 1,036.75 83,413

TROUT, CUTTHROAT

Normal Form 1,666.67 171.20 3,897 2,222.22 251.09 5,716 9,043.16 928.89 21,145

TROUT, RAINBOW

Normal Form 2,083.33 280.76 10,781 2,222.22 311.96 11,979 4,808.15 607.48 23,326

Total Normal Form 570,732 666,862 966,031

The illustrated accrued benefits have been limited by IRC415. Present values are as of the current valuation date. The plan retirement benefit accrual rules are applied as of the beginning of the current plan year (BOPY) or the end of the current plan year (EOPY). ARD indicates the anticipated retirement date.

Salmon Enterprises



Actuarial Information for the Plan Year beginning: 01/01/2019


2019 Schedule SB

Part I Basic Information

1 Valuation Date 12/31/2019

2 Plan Assets

a Actuarial Value $625,000

b Market Value $625,000

3 Funding target/participant count breakdown (1) Number of (2)Vested Funding (3)Total Funding

Participants Target Target

a For retired participants and beneficiaries receiving paymen 0 $0 $0

b For terminated vested participants 0 $0 $0

c For active participants 5 $570,732 $570,732

d Total 5 $570,732 $570,732

4 a Funding Target disregarding prescribed at-risk assumptions $570,732

b Funding Target reflecting at-risk assumptions but disregarding transition rule $766,108

5 Effective Interest Rate 5.84%

6 Target Normal Cost $96,130

Part III Funding Percentages

14 Funding Target Attainment Percentage not considering additional assumptions under IRC430(i) 109.50%

16 Prior year's funding percentage 87.00%

2019 Schedule SB

Part II Carryover and Prefunding Balances

(a) Carryover Balance (b) Prefunding Balance

7 Balance at beginning of prior plan year

8 Portion used to offset prior year's funding requirement

9 Amount remaining

10 Interest on Item 9 using prior year's actual return

11 Plan year's excess contributions to be added to the prefunding balance

a Excess contributions

b Interest on (a) using prior year's effective rate

c Total available to add to prefunding balance

d Portion of (c) added to prefunding balance

Deemed reduction

12 Voluntary reduction

13 Balance at beginning of plan year ((9) + (10) + (11d) - (12)) $0 $0

Salmon Enterprises



Actuarial Information for the Plan Year beginning: 01/01/2019


2020 Schedule SB

Part II Carryover and Prefunding Balances

(a) Carryover Balance (b) Prefunding Balance

7 Balance at beginning of prior plan year $0 $0

8 Portion used to offset this year's funding requirement $0 $0

9 Amount remaining $0 $0

10 Interest on Item 9 using prior year's actual return of 0.00% $0 $0

11 Plan year's excess contributions to be added to the prefunding balance

a Excess contributions $0

b Interest on (a) using prior year's effective rate of 5.84% $0

c Total available at beginning of next plan year to add to prefunding bal $0

d Portion of (c) to be added to prefunding balance to be determined

12 Voluntary reduction to be determined to be determined

13 Balance at beginning of next year ((9) + (10) + (11d) - (12)) to be determined to be determined

The values illustrated above are subject to review by the Plan's Enrolled Actuary and depend on data provided by the Plan Administrator.

Salmon Enterprises



Minimum Required Contribution for the Plan Year Beginning: 01/01/2019


1 Preceding Year Funding Target Attainment Percentage (FTAP) 87.70%

[Not considering additional IRC430(i) assumptions]

2 Preceding Year FTAP considering additional IRC430(i) assumptions 87.70%

3 Number of lives 5

4 Plan is not At-Risk because (1) is more than 80 and (2) is more than 70 or (3) is less than 501


6 Actuarial Value of Plan Assets $625,000

7 Prefunding Balance $0

8 IRC430(f)(4)(B) Plan Assets $625,000

9 Funding Target not considering additional IRC430(i) assumptions $570,732

10 Funding Target Attainment Percentage 109.50%

[Not considering additional IRC430(i) assumptions [100 x (8) / (9)]]

11 Prior Shortfall Amortization Charges $0

12 Present Value Prior Shortfall Amortization Charges $0

13 Waiver Amortization Charge $0

14 Present Value Waiver Amortization Charges $0

15 100% Funding Target (9) $570,732

16 Excess Assets [(8) - (9)] $54,268

17 Minimum Required Contribution as of 12/31/2019 [(5) - (16)] $41,862

The values illustrated here are subject to review by the Plan's Enrolled Actuary and Tax Accountant, and depend on data provided by the Plan Administrator. The values here do not include the IRC430(j) Additional Current Interest Charge, if any.

Salmon Enterprises



Maximum Deductible Contribution for the Plan Year Beginning: 01/01/2019



2 Funding Target $789,913

3 Cushion

(a) .5 × Funding Target $394,957

(b) Increases to Funding Target due to increases in compensation $558,184

4 Target Normal Cost using the additional assumptions under IRC430(i) $168,737

5 Funding Target using the additional assumptions under IRC430(i) $1,011,415

6 Greater of (1 + 2 + 3) and (4 + 5) $1,876,265

7 Actuarial Value of Plan Assets $625,000

8 Minimum Required Contribution $41,862

9 Maximum Deductible Contribution [Greater of 8 and (6 - 7)] $1,251,265

The values illustrated above are subject to review by the Plan's Enrolled Actuary and Tax Accountant, and depend on data provided by the Plan Administrator. They may not apply if there are additional qualified benefit plans associated with this Plan, or the Plan Year is not a full year, or the deductible limit is based on a weighted average of deductible limits for two consecutive Plan Years, or the Plan Year is not coincident with the Plan Sponsor's Tax Year.

Salmon Enterprises



Benefits and Contributions


Participant

Name

Current

Annual

Compensation

Current Liabilities

Accrued

Benefit

At BOPY

Individual

Funding

Target

Theoretical Contribution Allocation

Minimum

Required

Amount %Total

Maximum

Deductible

Amount %Total

H

C

CHAR, ARCTIC 265,000 5,220 346,111 22,439 53.60 718,352 57.41 H

SALMON, ATLANTIC 200,000 3,479 189,551 14,188 33.89 429,968 34.36 H

SALMON, COHO 30,000 253 20,392 4,038 9.65 63,335 5.06

TROUT, CUTTHROAT 40,000 171 3,897 543 1.30 14,233 1.14

TROUT, RAINBOW 30,000 281 10,781 654 1.56 25,377 2.03

Total: HC EEs 465,000 535,662 36,627 87.49 1,148,320 91.77

Total: Non-HC EEs 100,000 35,070 5,235 12.51 102,945 8.23

Total: All EEs 565,000 570,732 41,862 100.00 1,251,265 100.00

Contributions in a defined benefit plan are not individual account additions, but are combined into an unallocated investment fund to provide plan benefits. Current and subsequent contributions depend on aggregate plan experience including investment earnings, mortality, turnover, salary changes, and plan amendments.

The plan contribution satisfies the Minimum Funding Standards of IRC430 and is computed as due on the valuation date. The IRC430 Minimum Contribution is subject to review by the Plan's Enrolled Actuary and depends on data provided by the Plan Administrator.

IRC401(a)(17) limits Current Annual Compensation which may be considered under the plan.

Salmon Enterprises



Minimum Contribution Analysis for the Plan Year Beginning: 01/01/2019


1. IRC430 Required Contribution for the Plan Year 41,862

2. Minimum Required Contribution for the Prior Plan Year 111,564

3. IRC430(j) Required Annual Payment 37,676

[Lesser of 90% of (1) and 100% of (2)]

4. Applicable Percentage 25.00%

5. Required Installment 9,419

[(3) x (4) / 100]

6. IRC430(j) Required Installments for the Plan Year

## Due Date Required Installment Total Due

1 04/15/2019 9,419 9,419

2 07/15/2019 9,419 18,838

3 10/15/2019 9,419 28,257

4 01/15/2020 9,419 37,676

7. Contributions with IRC430(j) Additional Interest Charge Due to Late Quarterly Contributions

Date Description

Quarterly

Due $Amount

Value as of

12/31/2019

04/15/2019 ER Contribution 0.00 10,000.00 10,413.00

07/15/2019 ER Contribution 0.00 10,000.00 10,266.00

09/15/2019 ER Contribution 0.00 12,000.00 12,201.00

12/31/2019 ER Contribution 0.00 8,982.00 8,982.00

Date Description $Amount

Value as of

12/31/2019

12/31/2019 Total credits as of the valuation date 40,982.00 41,862.00

12/31/2019 Amount due on expected contribution date 0.00

The Effective Rate of Interest is: 5.84%.

The deadline is 09/15/2020.

Salmon Enterprises DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED

Schedule SB, line 19 - Discounted Employer Contributions

Plan Name: Salmon Enterprises DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED

Plan EIN: 12-1234567

Plan Number: 001


Date Amount

Plan

Year

Effective

Rate of

Interest

Discounted

Amount

04/15/2019 10000.00 2019 5.84% 10413.00

07/15/2019 10000.00 2019 5.84% 10266.00

09/15/2019 12000.00 2019 5.84% 12201.00

12/31/2019 8982.00 2019 5.84% 8982.00

Total for Minimum Required Contribution 40982.00 41862.00

Salmon Enterprises



IRC404 FUNDING TARGET AND TARGET NORMAL COST


Participant

Name

H

C

Valuation Liability As of the Current Valuation Date

Retirement Vesting P.R. Death Disability MEC Total

CHAR, ARCTIC H

Target Normal Cost 60,977 0 0 0 0 60,977

Funding Target 468,990 0 0 0 0 468,990

SALMON, ATLANTIC H


Funding Target 269,918 0 0 0 0 269,918

SALMON, COHO


Funding Target 26,996 0 0 0 0 26,996

TROUT, CUTTHROAT


Funding Target 7,159 0 0 0 0 7,159

TROUT, RAINBOW


Funding Target 16,850 0 0 0 0 16,850

Plan Total


Funding Target 789,913 0 0 0 0 789,913

HC Total


Funding Target 738,908 0 0 0 0 738,908

Salmon Enterprises



Funding Target for the Plan Year Beginning: 01/01/2019


Funding Target Without Additional AssumptionsPresent Value as of 12/31/2019 of Benefits Accrued as of 01/01/2019

1 Present Value of Accrued Retirement Benefits under plan Normal Form $570,732

2 Funding Target [1] $570,732

Effective Rate of Interest 5.84%

Present Value as of 12/31/2019 of Benefits Accrued as of 12/31/2019

3 Present Value of Accrued Retirement Benefits under Normal Form $666,862

4 Target Normal Cost [3 - 2] $96,130

The values illustrated here are subject to review by the Plan's Enrolled Actuary and depend on data provided by the Plan Administrator.

Salmon Enterprises





At Risk Funding Target Considering Additional AssumptionsPresent Value as of 12/31/2019 of Benefits Accrued as of 01/01/2019

1 Present Value of Retirement Benefits for those not eligible for early retirement in next 11 years* $204,229

2 Present Value of Early Retirement Benefits for those eligible for early retirement in next 11 years** $561,879

3 Funding Target [Sum of 1 and 2] $766,108




6 Present Value of Benefits Accrued as of 12/31/2019 [Sum of 3 through 5] $893,730


*Present Value of the accrued retirement benefit payable as of the normal retirement date using the most valuable optional form

**Present Value of the early retirement benefit payable as of the earliest early retirement date using the most valuable optional form. This includes current retirees using their chosen retirement form.


Salmon Enterprises





Funding Target Considering Additional Assumptions using IRC404 InterestPresent Value as of 12/31/2019 of Benefits Accrued as of 01/01/2019



3 Funding Target [Sum of 1 and 2] $1,011,415




6 Present Value of Benefits Accrued as of 12/31/2019 [Sum of 3 through 5] $1,180,152


*Present Value of the accrued retirement benefit payable as of the normal retirement date using the most valuable optional form

**Present Value of the early retirement benefit payable as of the earliest early retirement date using the most valuable optional form. This includes current retirees using their chosen retirement form.


Salmon Enterprises





Funding Target using IRC404 InterestPresent Value as of 12/31/2019 of Benefits Accrued as of 01/01/2019

1 Present Value of Accrued Retirement Benefits under plan Normal Form $789,913

2 Funding Target [1] $789,913


3 Present Value of Accrued Retirement Benefits under Normal Form $923,124


Present Value as of 12/31/2019 of Benefits Accrued as of 01/01/2019 [Considering Compensation Increases from 01/01/2019 to Anticipated Retirement Date]

5 Present Value of Benefits Accrued as of 01/01/2019 $1,348,097

6 Increase due to projected Compensation Increases [5 - 2] as of 01/01/2019 $558,184


qualified plan design prepared for: salmon …

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