Custom Builders, Inc. v. Commissioner of the IRS
Custom Builders adopted a defined benefit plan. The plan actuary determined the plan’s normal cost using an interest rate assumption of 5%.
The Internal Revenue Service contested actuarial assumptions. Pursued tax refund on theory of first impression that actuary was an ERISA fiduciary in setting the plan’s actuarial assumptions and methodology. 858 T.C.M. 696 (1989).
