Funding balances at 1/1/2012: $0 Normal retirement benefit: $20 per year of service On 2/1/2012, the 2012 AFTAP is certified at 75% On 3/1/2012, the plan's benefit formula is amended to: $20 per month per year of service accrued through 2/29/2012, plus $25 per month per year of service accrued after 3/1/2012. No contributions are made during 2012. Consider the following statement: The amendment can take effect on 3/1/2012.Is the above statement true or false?

Question

Quizplus · Accepted Answer

The amendment can take effect on 3/1/2012 because the AFTAP is at least 60%, allowing benefit increases to take effect without additional funding.

Funding Balances at 1/1/2012: $0 Normal Retirement Benefit: $20 Per