What does AFTAP stand for?
AFTAP stands for Adjusted Funding Target Attainment Percentage. The AFTAP is similar to the FTAP with the key difference being the AFTAP takes into account annuities purchased in the prior two plan years.
The AFTAP is the measurement that ties the plan’s funding level and administration together under the Pension Protection Act of 2006. The AFTAP is certified at least once per year by the plan’s Enrolled Actuary.
If the AFTAP is 80% or higher, there are no required benefit restrictions such as limiting lump sums. If the AFTAP is lower than 80%, plan administration may be impacted during the time period the AFTAP is lower than 80%.
This article was last updated on October 9, 2012