Tax-Max develops the liabilities and normal costs used in determining the maximum tax-deductible contribution under IRC §404. DB Precision calculates Unit Credit and, when selected, Projected Unit Credit results using the plan provisions and funding assumptions, with the configured maximum-funding interest rates substituted for the regular funding interest rates. Inactive participant benefits are valued as present values of future benefits using those same assumptions.

PBGC develops the liability used as the premium funding target by applying valuation-date vesting to active benefits and valuing them using the Unit Credit methodology. Inactive participant benefits are valued as present values of future benefits. The calculation uses the plan provisions, funding mortality, and other demographic assumptions, with either the published PBGC segment rates for the month preceding the valuation date or the configured maximum-funding rates. PBGC produces a liability and not a normal cost.