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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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Summary of Actuarial Method and Assumptions
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt402 Pg3
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
First Segment: 2.55%
Second Segment: 3.93%
Third Segment: 4.49%
PBGC Segmented Rates
First Segment: 3.38%
Second Segment: 4.32%
Third Segment: 4.69%
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
Investment Earnings 5% Effective annual rate
Mortality Table 1984 Unisex Pension (UP-84)
Assumptions for IRC415 Maximum Benefit Actuarial Adjustments
Investment Earnings 5% Effective annual rate
Mortality Table 2019 417 Applicable Mortality Table N2018-02
Salmon Enterprises
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Summary of Actuarial Method and Assumptions
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt402 Pg4
Retirement Protection Act of 1994 Interest Rate for non-life annuities
Investment Earnings 5.5% Effective annual rate
Salmon Enterprises
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Employee Census
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt403 Pg5
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
PPA06 Accrued Benefits
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt406 Pg6
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Actuarial Information for the Plan Year beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt522 Pg7
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Actuarial Information for the Plan Year beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt522 Pg8
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Minimum Required Contribution for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt524 Pg9
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
5 Target Normal Cost $96,130
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Maximum Deductible Contribution for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt525 Pg10
1 Target Normal Cost $133,211
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Benefits and Contributions
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt527 Pg11
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Minimum Contribution Analysis for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt523 Pg12
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
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt530 Pg13
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
IRC404 FUNDING TARGET AND TARGET NORMAL COST
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt532 Pg14
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
Target Normal Cost 47,292 0 0 0 0 47,292
Funding Target 269,918 0 0 0 0 269,918
SALMON, COHO
Target Normal Cost 19,729 0 0 0 0 19,729
Funding Target 26,996 0 0 0 0 26,996
TROUT, CUTTHROAT
Target Normal Cost 3,341 0 0 0 0 3,341
Funding Target 7,159 0 0 0 0 7,159
TROUT, RAINBOW
Target Normal Cost 1,872 0 0 0 0 1,872
Funding Target 16,850 0 0 0 0 16,850
Plan Total
Target Normal Cost 133,211 0 0 0 0 133,211
Funding Target 789,913 0 0 0 0 789,913
HC Total
Target Normal Cost 108,269 0 0 0 0 108,269
Funding Target 738,908 0 0 0 0 738,908
Salmon Enterprises
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Funding Target for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt521 Pg15
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Funding Target for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt521 Pg16
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
Present Value as of 12/31/2019 of Benefits Accrued as of 12/31/2019
4 Present Value of Retirement Benefits for those not eligible for early retirement in next 11 years* $240,456
5 Present Value of Early Retirement Benefits for those eligible for early retirement in next 11 years** $653,274
6 Present Value of Benefits Accrued as of 12/31/2019 [Sum of 3 through 5] $893,730
7 Target Normal Cost [6 - 3] $127,622
*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.
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Funding Target for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt521 Pg17
Funding Target Considering Additional Assumptions using IRC404 InterestPresent 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* $293,927
2 Present Value of Early Retirement Benefits for those eligible for early retirement in next 11 years** $717,487
3 Funding Target [Sum of 1 and 2] $1,011,415
Present Value as of 12/31/2019 of Benefits Accrued as of 12/31/2019
4 Present Value of Retirement Benefits for those not eligible for early retirement in next 11 years* $346,432
5 Present Value of Early Retirement Benefits for those eligible for early retirement in next 11 years** $833,720
6 Present Value of Benefits Accrued as of 12/31/2019 [Sum of 3 through 5] $1,180,152
7 Target Normal Cost [6 - 3] $168,737
*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.
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
DEFINED BENEFIT / BUDGET / INSURED / INTEGRATED
VALUATION AS OF 12/31/2019
Funding Target for the Plan Year Beginning: 01/01/2019
SOFTWARE COPYRIGHT BLAZE SSI CORP. 20190501 Rpt521 Pg18
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
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 $923,124
4 Target Normal Cost [3 - 2] $133,211
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
The values illustrated here are subject to review by the Plan's Enrolled Actuary and depend on data provided by the Plan Administrator.