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The IRS has issued Rev. Proc. 98-10, 1998-2 I.R.B. 35, which provides automatic approval to change the asset valuation method used by defined benefit plans to one of three additional methods and provides automatic approval for certain changes in asset valuation software. The procedure modifies Rev. Proc. 95-51, 1995-2 C.B. 431, which prescribes the terms and conditions for obtaining automatic approval of a change in funding methods used by a defined benefit plan. In general, a defined benefit plan sponsor must obtain IRS approval to change the funding method for the plan. For this purpose, a change in the actuarial valuation method used to value plan assets is a change in a funding method that requires approval. Rev. Proc. 95-51 provides automatic approval for changes to 14 specific funding methods, including three asset valuation methods. Rev. Proc. 98-10 provides automatic approval to change the asset valuation method to any of three additional methods. The three methods are: (1) the smoothed market value (without phase-in) method; (2) the smoothed market value (with phase-in) method, and (3) the average value (using the alternative phase-in) method. In addition, Rev. Proc. 98-10 provides automatic approval of a change in funding method that results from a change in valuation software, if the following conditions are met: (1) there has been a modification to the computations in the valuation software or a different valuation software system has been used; (2) the underlying funding method is unchanged and is consistent with the information contained in the prior actuarial valuation reports and prior Schedules B of Form 5500; (3) the modification to the computations in the valuation software or the use of a different valuation software system is designed to produce results that are no less accurate than the results produced prior to the modification or change; (4) the net charge to the funding standard account for the year does not differ from the net charge that would result if the valuation software had not been changed (all other factors being held constant) by more than 2%; (5) a change in the valuation software requiring approval was not made for the prior plan year; and (6) 4.4 of Rev. Proc. 95-51 (Approval for Takeover of Plans), as modified by Rev. Proc. 98-10, does not apply to the change.