Comment on FR Doc # 2010-25942

A) Could a cash balance plan have a fixed rate but then have an experience investment component each year? For example, the plan has a fixed rate of 5%. The plan assets return 11% for the year so the plan sponsor can elect to credit the year's hypothetical accounts up to 6% more. This decision would occur after the end the year using the same timing as profit sharing. Discrimination testing would use 5%. If the plan assets returned less than 5% no additional investment credit would be authorized. Would the answer be different if the fixed rate was 3% or 0%? B) Can the cash balance plan provide an investement crediting rate that is tied to an investment of the plan if the rate meets regulatory criteria? For example, the plan invests in an insurance company group annuity contract that has a guarantee of 2%. C) Could a cash balance plan purchase, through an insurance company group annuity contract, the benefits for each year's hypothetical contribution? The annuity contract would have a fixed rate that meets regulatory criteria. All benefits purchased would have the same fixed rate guarantee. Returns in excess of the guaranteed rate would reduce plan sponsor minimum required contributions. Could all hypothetical contributions for a year be purchased with the same minimum guarantee, but different years have different guarantees, as long as all guarantees are no greater than 5%? Thank you for your consideration of these comments.