# Defined Benefit Plan Prospecting: How to Read a Pension Plan's Form 5500

*FiduciarySignal — updated 2026-10-05. Canonical: https://www.fiduciarysignal.com/guides/defined-benefit-plan-prospecting*

Defined benefit plan prospecting starts with Schedule SB. Single-employer pension plans subject to the minimum funding rules attach one to the Form 5500, prepared and signed by the plan's enrolled actuary, and it puts the plan's funding target attainment percentages, funding target, and at-risk information on the public record. That gives pension plan prospecting a specific, checkable reason for a first conversation. About 46,200 private defined benefit plans filed for 2023, per the Department of Labor, and more than half used a cash balance formula.

Source: [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf), Schedule SB instructions (read 2026-10-05), and the [DOL Private Pension Plan Bulletin, Abstract of 2023 Form 5500 Annual Reports](https://www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan-bulletins-abstract-2023.pdf), Table A1 (read 2026-10-05).

A defined benefit plan does not tell the same story as a 401(k). A 401(k)'s story is fees and participation. A pension plan's story is a promise, and whether the money is there to keep it, and the plan's actuary writes that story down every year on a schedule anyone can read. Here's the thing: much of what a sponsor worries about in a DB plan, the funded level, the required contributions, the benefit restrictions that apply at set thresholds, is on that schedule. This guide covers where DB and cash balance plans show up in the Form 5500 data, what the DB market looks like by the numbers, and how to read Schedule SB before a first call.

## Where defined benefit plans show up in Form 5500 data

| Field or schedule | What it tells you | Where it is |
|---|---|---|
| Code 1A | Benefits are primarily pay related | Form 5500 line 8a |
| Code 1B | Benefits are primarily flat dollar, including dollars per year of service | Line 8a |
| Code 1C | Cash balance or similar formula: a DB benefit stated in terms more common to a defined contribution plan, such as a hypothetical account balance | Line 8a |
| Code 1D | Floor-offset plan, offset for benefits provided by a defined contribution plan | Line 8a |
| Code 1I | Frozen plan: no participant earns any new benefit accrual | Line 8a |
| Schedule SB | Actuarial information for single-employer and multiple-employer DB plans subject to minimum funding | Attached to the Form 5500 or 5500-SF |
| Schedule MB | Actuarial information for most multiemployer DB plans | Attached to the annual report |
| Schedule R | Retirement plan information required for DB plans | Form 5500 filers; not attached to the 5500-SF |

Source: plan characteristics codes and What to File, [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf) (read 2026-10-05). The same fields are in the DOL's free [Form 5500 datasets](https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/public-disclosure/foia/form-5500-datasets), which include Schedules SB, MB, and R (read 2026-10-05).

## The DB market by the numbers

Per the [DOL's Private Pension Plan Bulletin for 2023](https://www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan-bulletins-abstract-2023.pdf), Table A1, about 46,200 private defined benefit plans filed, and about 26,800 of them, roughly 58%, were cash balance plans.

The same bulletin's Tables A1(a) and A1(b) count about 40,200 DB plans with fewer than 100 participants and about 6,000 with 100 or more, and the larger group held about $2.9 trillion of the $3.0 trillion in DB plan assets. [Source](https://www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan-bulletins-abstract-2023.pdf).

Per [Table C12 of the same bulletin](https://www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan-bulletins-abstract-2023.pdf), 18.7% of DB plans were fully frozen in 2023, and about 22,750, nearly half, had between 2 and 9 participants.

That is two markets under one label. One is about 6,000 large plans that hold nearly all the money and file the full Form 5500, with Schedule H, an audit report, and a Schedule C provider roster. The other is about 40,200 small plans, about 64% of them cash balance designs per Table A1(b), whose filings carry far less provider detail. Decide which one you are built to serve before you build a list, because the buyer, the service, and the conversation are different.

## How to read Schedule SB before the first call

The plan's enrolled actuary prepares and signs Schedule SB, and the plan administrator attaches it to the Form 5500 or 5500-SF. Four parts of it do most of the work in a prospecting conversation.

| What to read | Schedule SB line | What it means |
|---|---|---|
| Funding target attainment percentage (FTAP) | Line 14 | The actuarial value of plan assets, net of carryover and prefunding balances, as a percentage of the plan's funding target |
| Adjusted funding target attainment percentage (AFTAP) | Line 15 | Calculated like FTAP, but with assets and funding target both increased by recent annuity purchases for non-highly compensated employees; the percentage Code section 436 benefit restrictions use |
| At-risk status | Line 4 (at-risk amounts) | Generally, a plan with more than 500 participants in the prior year whose prior-year FTAP fell below 80% and whose at-risk FTAP fell below 70%; at-risk plans compute their funding target with additional assumptions |
| Prior-year funding shortfall | Line 20a | Whether the plan had a funding shortfall for the prior year, which puts it on an accelerated quarterly contribution schedule |

Source: Schedule SB instructions, lines 4, 14, 15, and 20a, [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf) (read 2026-10-05).

Why 80% and 60% come up so often: under [26 U.S.C. § 436](https://www.law.cornell.edu/uscode/text/26/436) (read 2026-10-05), a single-employer plan generally cannot adopt an amendment that increases benefits while its AFTAP is below 80%, and lump sums and other accelerated payments are partly restricted between 60% and 80%. Below 60%, those payments stop and benefit accruals cease. A sponsor's actuary tracks those thresholds closely, which is why they make a credible opening, and why you should confirm the operative AFTAP certification with the actuary before saying anything definite about restrictions.

## PBGC premiums: a line item sponsors already feel

For single-employer plans, the PBGC lists premium rates for plan years beginning in 2026 of $111 per participant for the flat-rate premium, plus a variable-rate premium of $52 per $1,000 of unfunded vested benefits. Because the flat-rate piece is charged per participant, the participant mix matters. The Form 5500 counts active participants, retirees and others receiving benefits, and separated participants entitled to future benefits separately, so before the meeting you can see how much of the headcount no longer works there.

Source: [PBGC premium rates](https://www.pbgc.gov/prac/prem/premium-rates) (as published, read 2026-10-05) and participant-count instructions, [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf) (read 2026-10-05).

## Funding status is a conversation, not a forecast

Treat every number on Schedule SB as a fact about how the plan was funded on a past valuation date, usually a year or more before you read it. It is not a prediction of what the sponsor will do. An underfunded plan may have a sponsor entirely satisfied with its actuary and investment consultant; a well-funded one may be quietly planning a termination. What the schedule gives you is the right question, framed in the sponsor's own filing: how the funded percentage has moved, what this year's required contribution looks like, and whether the plan's design still fits the company that sponsors it.

## What FiduciarySignal shows for a defined benefit plan

FiduciarySignal is built on the same public DOL EFAST2 filings. For a single-employer DB plan whose filing includes Schedule SB data, the **401(k) Report Card**, which grades any plan from its own Form 5500, shows the funding fields above: FTAP and AFTAP, the funding target, and whether the filing reports at-risk status or a prior-year funding shortfall. It flags an FTAP or AFTAP below 80% or 60% for review, and it keeps FTAP and AFTAP separate so it never infers a Code section 436 restriction from the wrong field. Those are Report Card red flags, reported from the filing, not predictions about whether the sponsor will change anything.

The Report Card also prints the filing's other red flags and its provider roster. The **Change Predictor** ranks the plans in your territory most likely to make a winnable provider change, back-tested against the next year's Form 5500 filings and strongest at the top of the list: calibrated likelihoods, never certainty about any single plan. FiduciarySignal publishes $90 a month after a 7-day free trial, or $900 a year; terms are on [our pricing page](https://www.fiduciarysignal.com/pricing). What a filing can and cannot tell you in general is in [Form 5500 prospecting](https://www.fiduciarysignal.com/guides/form-5500-prospecting). Built on public DOL EFAST2 data; not affiliated with the Department of Labor.

## Related guides

- [401(k) Plan Red Flags: The Form 5500 Lines That Show Them, and How to Raise Them Fairly](https://www.fiduciarysignal.com/guides/form-5500-red-flags)
- [Form 5500 Prospecting: What a Plan's Filing Tells You — and What It Can't](https://www.fiduciarysignal.com/guides/form-5500-prospecting)
- [403(b) Plan Prospecting: What the Form 5500 Shows, and What It Can't](https://www.fiduciarysignal.com/guides/403b-plan-prospecting)

## Frequently asked questions

### What is Schedule SB on Form 5500?

The actuarial schedule for single-employer and multiple-employer defined benefit plans subject to the minimum funding rules. The plan's enrolled actuary prepares and signs it, and it is attached to the Form 5500 or 5500-SF. It reports the funding target, FTAP on line 14, AFTAP on line 15, at-risk amounts on line 4, and whether the plan had a prior-year funding shortfall on line 20a.

Source: [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf), Schedule SB instructions (read 2026-10-05).

### Which funded percentage matters for a pension plan?

For benefit restrictions, the AFTAP, not the FTAP. Under Code section 436, a single-employer plan with an AFTAP below 80% generally cannot adopt benefit-increasing amendments and faces partial limits on lump sums; below 60%, those payments stop and accruals cease. Confirm the operative certification with the plan's actuary before drawing conclusions.

Source: [26 U.S.C. § 436](https://www.law.cornell.edu/uscode/text/26/436) (read 2026-10-05).

### What does at-risk status mean for a defined benefit plan?

Generally, a plan that had more than 500 participants in the prior year is in at-risk status when its prior-year FTAP fell below 80% and its at-risk FTAP fell below 70%. At-risk plans compute their funding target using additional actuarial assumptions, and Schedule SB reports the at-risk amounts on line 4.

Source: [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf), Schedule SB, Determining whether a plan is in at-risk status (read 2026-10-05).

### How many defined benefit plans are there?

About 46,200 private-sector DB plans filed for plan years ending in 2023, per the DOL's Private Pension Plan Bulletin, holding about $3.0 trillion. About 26,800 used a cash balance formula, about 40,200 had fewer than 100 participants, and 18.7% were fully frozen.

Source: [DOL Private Pension Plan Bulletin, Abstract of 2023 Form 5500 Annual Reports](https://www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retirement-bulletins/private-pension-plan-bulletins-abstract-2023.pdf), Tables A1, A1(b), and C12 (read 2026-10-05).

### Can I find cash balance plans on Form 5500?

Yes. Plan characteristics code 1C on line 8a marks a cash balance or similar formula, which the instructions describe as a DB formula that states benefits in terms more common to a defined contribution plan, such as a hypothetical account balance. Code 1D marks a floor-offset plan and 1I a frozen plan.

Source: [Instructions for the 2024 Form 5500](https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2024-instructions.pdf), List of Plan Characteristics Codes (read 2026-10-05).

### Does an underfunded pension plan mean the sponsor will change providers?

No. A funded percentage describes how the plan was funded on a past valuation date; on its own it says nothing about whether the sponsor is satisfied with its actuary, consultant, or other providers. Use it as a specific, checkable topic for a first conversation, not as a forecast.

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