Central States, Southeast and Southwest Areas Pension Plan 

Item #26

26.0 

The plan’s experience with certain critical assumptions including a disclosure for each of the 10 plan 

years immediately preceding the application that separately identifies: 

• total contributions, 

• total contribution base units, 

• average contribution rates, 

• withdrawal liability payments, and 

• the rate of return on plan assets. 

See section 6.03. 

The information is provided in document number 26.1 (Application under ERISA Section 305(e)(9) and 

IRC Section 432(e)(9) – Additional Information) – see Exhibit I on page 26.1.7. 

 

333 WEST 34TH STREET NEW YORK, NY 10001-2402

T 212.251.5000 www.segalco.com

September 18, 2015 

Board of Trustees 

Central States, Southeast and Southwest Areas Pension Plan

9377 West Higgins Road 

Rosemont, Illinois 60018-4938 

Dear Trustees:

As requested by the Trustees and required by ERISA Section 305(e)(9) and Internal Revenue Code (IRC) Section 432(e)(9)

(taking into account temporary regulation §1.432(e)(9)-1T, proposed regulation §1.432(e)(9)-1 and Revenue Procedure 2015-

34), we have performed additional projections required as part of the application for proposed benefit suspensions permitted 

under ERISA Section 305 and IRC Section 432 because of the Plan’s critical and declining status. These projections are in 

addition to our certification that the proposed suspensions of benefits are reasonably estimated to enable the Plan to avoid 

insolvency within the meaning of ERISA Section 4245 and IRC Section 418E, assuming the suspensions of benefits continue 

indefinitely and both the benefit accrual reductions and other plan changes become effective upon the proposed July 1, 2016

suspension effective date.

These projections were performed in accordance with the Multiemployer Pension Reform Act of 2014 (MPRA). The attached 

exhibits outline the projections performed in accordance with the proposed regulations. These projections have been prepared 

based on the Actuarial Valuation as of January 1, 2015, the Actuarial Certification of Plan Status as of January 1, 2015 under 

IRC Section 432, and the Actuarial Certification of Plan Solvency under ERISA Section 305(e)(9)(c)(i) and IRC Section 

432(e)(9)(C)(i) of Proposed Benefit Suspensions as of July 1, 2016 dated September 18, 2015 in accordance with generally 

accepted actuarial principles and practices and a current understanding of the law. The actuarial calculations were completed 

under the supervision of Daniel V. Ciner, MAAA, EA. 

26.1.2
Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutory 

interpretation on which the certification is based reflects Segal’s understanding as an actuarial firm. Due to the complexity of 

the statute and the significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel 

when making any decisions regarding compliance with ERISA and the Internal Revenue Code.

Sincerely,

Segal Consulting, a Member of the Segal Group 

By: 

cc: Mr. Thomas Nyhan 

Mr. Mark Angerame

 Gary Ford, Esq. 

5528431v3/10346.001

26.1.3
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

1

September 18, 2015 

APPLICATION UNDER ERISA SECTION 305(E)(9) AND IRC SECTION 432(E)(9) – ADDITIONAL 

INFORMATION

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”), has performed actuarial projections under ERISA 

Section 305(e)(9) and Internal Revenue Code Section 432(e)(9), taking into account temporary regulation §1.432(e)(9)-1T, proposed 

regulation §1.432(e)(9)-1 and Revenue Procedure 2015-34, for the Central States, Southeast and Southwest Areas Pension Plan based on 

participant data as of December 31, 2014 and asset values as of June 30, 2015 in accordance with generally accepted actuarial principles 

and practices. It has been prepared at the request of the Board of Trustees to assist in meeting filing and compliance requirements under 

federal law, in particular the application requirements for a benefit suspension. This certification may not otherwise be copied or 

reproduced in any form without the consent of the Board of Trustees and may only be provided to other parties in its entirety. 

The measurements shown in this actuarial certification are not applicable for other purposes. Future actuarial measurements may differ 

significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from 

that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; differences in statutory 

interpretation; differences in methodology, changes in plan provisions and changes in applicable law. Due to the legal requirements for 

this certification, it does not include an analysis of such future measurements.

This certification is based on the January 1, 2015 actuarial valuation, dated August 14, 2015, the Actuarial Certification of Plan Status as 

of January 1, 2015 under IRC Section 432, and the Actuarial Certification of Plan Solvency under ERISA Section 305(e)(9)(C)(i) and IRC 

Section 432(e)(9)(C)(i) of Proposed Benefit Suspensions as of July 1, 2016, dated September 18, 2015. The information described in 

Exhibit I is based on information provided by the Fund Office. This certification reflects the changes in the law made by the 

Multiemployer Pension Reform Act of 2014 (MPRA), taking into account temporary regulation §1.432(e)(9)-1T, proposed regulation 

§1.432(e)(9)-1 and Revenue Procedure 2015-34. Additional assumptions required for the projections (including those under MPRA), and 

sources of financial information used are summarized in Exhibit VII. A summary of the proposed benefit suspensions is included in the 

Actuarial Certification of Plan Solvency referenced above.

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretations on which 

this certification is based reflect Segal’s understanding as an actuarial firm. Based on discussions with legal counsel, it is our 

understanding that the proposed benefit suspensions satisfy the requirements for such as set forth in MPRA. 

This certification was based on the assumption that the Plan was qualified as a multiemployer plan for the year. 

26.1.4
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

2

I am a member of the American Academy of Actuaries and I meet the Qualification Standards of the American Academy of Actuaries to 

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certification is complete and 

accurate. The assumptions and methodology used, with the exception of those specifically identified and described in the certifications 

referenced above, are prescribed by law in proposed regulation 1.432(e)(9)-1 (Exhibits II, III, IV and V for the required sensitivity 

analyses). 

26.1.5
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

3

Certificate Contents

EXHIBIT I Past Experience for Certain Critical Assumptions

EXHIBIT II Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return 

is 1% Lower than Used in the Actuarial Solvency Certification (6.50%)

EXHIBIT III Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return 

is 2% Lower than Used in the Actuarial Solvency Certification (5.50%)

EXHIBIT IV Projections of Plan’s Solvency Ratio Assuming the Industry Level 

Assumption Continues Under the Same Trend as the Plan Experienced 

Over the Past 10 Years (-9.7%)

EXHIBIT V Projections of Plan’s Solvency Ratio Assuming the Industry Level 

Assumption Continues Under the Same Trend as the Plan Experienced 

Over the Past 10 Years, Reduced By 1% (-10.7%)

EXHIBIT VI Projection of Funded Percentage

EXHIBIT VII Actuarial Basis

26.1.6
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

4

EXHIBIT I 

Past Experience for Certain Critical Assumptions (Dollar Amounts, Other Than Contribution Rates, in Thousands)

Year

Total Contributions

($ thousands)

Total Contribution

Base Units

(Weeks) 

Average Weekly 

Contribution 

Rate

Withdrawal Liability 

Payments

($ thousands)

Rate of Return 

on Plan Assets

2005 $1,279,175 7,943,640 $161.03 $82,833 10.30%

2006 1,358,334 7,722,988 175.88 47,343 14.50%

2007* 1,440,300 7,548,736 190.80 6,187,750 6.22%

2008* 849,544 4,828,876 175.93 88,358 -29.82%

2009** 588,569 3,687,164 159.63 86,584 27.49%

2010** 502,886 3,029,520 166.00 119,415 14.42%

2011** 545,533 3,369,263 161.91 173,227 -0.28%

2012 568,878 3,386,344 167.99 188,828 13.56%

2013 571,104 3,231,436 176.73 153,928 19.04%

2014 582,359 3,182,920 182.96 232,836 6.86%

Average Trend From 2005 to 2014 -9.7% +1.4% 7.06% 

Average Trend From 2011 to 2014 -1.9% +4.2% 

*Reflects the withdrawal of UPS effective December 31, 2007.

**Reflects the cessation and resumption of contributions from YRCW.

Based on the total contribution base units for each year, as shown above, the average annual rate of decrease in total contribution base 

units during the 2005-2014 period is 9.7%. The average annual rate of decrease in total contribution base units during the period from 

2011-2014 (following resumption of YRCW contributions) is 1.9%. 

If the significant decline in total contribution base units due to the withdrawal of UPS as of December 31, 2007 were disregarded by 

excluding UPS from the data, the average annual rate of decrease in total contribution base units during the 2005-2014 period is 6.4%. If 

YRCW were also removed from the data, the average annual rate of decrease in total contribution base units for the 2005-2014 period is

6.2%.

For 2007, UPS contributed $563.2 million for 2.3 million base units (average of $245 per week). Excluding UPS, the average contribution 

rate increase over the 2005-2014 period would be 2.5%, instead of 1.4%. If YRCW were also excluded, the average contribution rate 

increase over the 2005-2014 period would be 6.1%. YRCW contributed $288.1 million for 1.4 million base units (average of $204 per 

week) in 2005 and $52.1 million for 0.7 million base units (average of $70 per week) in 2014.

26.1.7
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

5

EXHIBIT II 

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1% Lower than Used in the Actuarial Solvency 

Certification (6.50% Per Year): Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(B)(1) and Revenue Procedure 2015-34 6.04(1)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2015 through 2039. 

Year Beginning January 1

2015 2016 2017 2018 2019

1. Market Value at beginning of year $17,863,105,558 $16,846,053,122 $16,085,091,939 $15,719,343,595 $15,331,859,223 

2. Contributions 585,689,791 571,437,939 565,171,453 563,691,836 562,913,672 

3. Withdrawal liability payments 398,700,000 128,698,507 137,397,014 137,397,014 137,397,014 

4. Benefit payments 2,834,729,254 2,452,281,202 2,023,127,151 2,018,748,103 2,017,650,584 

5. Administrative expenses 49,100,000 45,390,000 46,297,800 47,223,756 48,168,231 

6. Investment earnings 882,387,027 1,036,573,573 1,001,108,140 977,398,637 952,191,836 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $16,846,053,122 $16,085,091,939 $15,719,343,595 $15,331,859,223 $14,918,542,930 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $19,680,782,376 $18,537,373,141 $17,742,470,746 $17,350,607,326 $16,936,193,513 

9. Solvency ratio: (8) ÷ (4) 6.943 7.559 8.770 8.595 8.394

2020 2021 2022 2023 2024

1. Market Value at beginning of year $14,918,542,930 $14,433,717,090 $13,912,474,813 $13,355,501,174 $12,759,281,138 

2. Contributions 562,173,001 560,315,592 559,816,067 559,425,993 557,791,789 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,019,185,277 2,021,093,670 2,021,384,223 2,022,919,141 2,024,141,778 

5. Administrative expenses 49,131,596 50,114,228 51,116,512 52,138,842 53,181,619 

6. Investment earnings 923,921,018 892,253,015 858,314,015 822,014,940 783,133,899 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $14,433,717,090 $13,912,474,813 $13,355,501,174 $12,759,281,138 $12,120,280,443 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $16,452,902,367 $15,933,568,483 $15,376,885,396 $14,782,200,278 $14,144,422,221 

9. Solvency ratio: (8) ÷ (4) 8.148 7.884 7.607 7.307 6.988

26.1.8
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

6

EXHIBIT II (continued)

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1% Lower than Used in the Actuarial Solvency 

Certification (6.50%): Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(B)(1) and Revenue Procedure 2015-34 6.04(1)

Year Beginning January 1

2025 2026 2027 2028 2029 

1. Market Value at beginning of year $12,120,280,443 $11,439,458,228 $10,723,260,401 $9,975,587,344 $9,195,536,451 

2. Contributions 556,662,107 560,977,991 566,689,834 572,714,953 578,724,941 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,022,225,922 2,016,858,517 2,006,860,725 1,996,046,783 1,981,376,735 

5. Administrative expenses 54,245,252 55,330,157 56,436,760 57,565,495 58,716,805 

6. Investment earnings 741,589,838 697,615,842 651,537,580 603,449,418 553,380,793 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $11,439,458,228 $10,723,260,401 $9,975,587,344 $9,195,536,451 $8,384,945,659 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $13,461,684,150 $12,740,118,917 $11,982,448,069 $11,191,583,234 $10,366,322,394 

9. Solvency ratio: (8) ÷ (4) 6.657 6.317 5.971 5.607 5.232

2030 2031 2032 2033 2034

1. Market Value at beginning of year $8,384,945,659 $7,547,051,126 $6,687,823,327 $5,809,199,426 $4,911,503,494 

2. Contributions 585,172,624 592,330,713 600,343,200 607,995,601 615,677,379 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 1,962,064,454 1,935,937,672 1,907,422,127 1,876,987,130 1,843,082,255 

5. Administrative expenses 59,891,141 61,088,964 62,310,743 63,556,958 64,828,097 

6. Investment earnings 501,491,424 448,071,110 393,368,755 337,455,541 280,415,558 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $7,547,051,126 $6,687,823,327 $5,809,199,426 $4,911,503,494 $3,997,083,093 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $9,509,115,580 $8,623,760,998 $7,716,621,553 $6,788,490,624 $5,840,165,348 

9. Solvency ratio: (8) ÷ (4) 4.846 4.455 4.046 3.617 3.169

26.1.9
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

7

EXHIBIT II (continued)

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1% Lower than Used in the Actuarial Solvency 

Certification (6.50%): Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(B)(1) and Revenue Procedure 2015-34 6.04(1)

Year Beginning January 1

2035 2036 2037 2038 2039 

1. Market Value at beginning of year $3,997,083,093 $3,068,953,202 $2,123,793,822 $1,160,060,805 $189,910,594 

2. Contributions 623,612,529 632,595,337 642,113,530 651,299,231 661,149,369 

3. Withdrawal liability payments 97,397,014 88,698,507 80,000,000 80,000,000 80,000,000 

4. Benefit payments 1,805,432,382 1,762,458,157 1,720,416,336 1,673,770,471 1,624,745,406 

5. Administrative expenses 66,124,659 67,447,152 68,796,095 70,172,017 71,575,458 

6. Investment earnings 222,417,607 163,452,085 103,365,884 42,493,046 --

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $3,068,953,202 $2,123,793,822 $1,160,060,805 $189,910,594 $0

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $4,874,385,584 $3,886,251,980 $2,880,477,141 $1,863,681,066 $859,484,505 

9. Solvency ratio: (8) ÷ (4) 2.700 2.205 1.674 1.113 0.529 

26.1.10
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

8

EXHIBIT III

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2% Lower than Used in the Actuarial Solvency 

Certification (5.50%): Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(B)(2) and Revenue Procedure 2015-34 6.04(2)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2015 through 2034. 

Year Beginning January 1

2015 2016 2017 2018 2019

1. Market Value at beginning of year $17,863,105,558 $16,764,370,309 $15,839,443,714 $15,306,168,081 $14,745,590,035 

2. Contributions 585,689,791 571,437,939 565,171,453 563,691,836 562,913,672 

3. Withdrawal liability payments 398,700,000 128,698,507 137,397,014 137,397,014 137,397,014 

4. Benefit payments 2,834,729,254 2,452,281,202 2,023,127,151 2,018,748,103 2,017,650,584 

5. Administrative expenses 49,100,000 45,390,000 46,297,800 47,223,756 48,168,231 

6. Investment earnings 800,704,214 872,608,161 833,580,851 804,304,963 773,455,979 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $16,764,370,309 $15,839,443,714 $15,306,168,081 $14,745,590,035 $14,153,537,885 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $19,599,099,563 $18,291,724,916 $17,329,295,232 $16,764,338,137 $16,171,188,468 

9. Solvency ratio: (8) ÷ (4) 6.914 7.459 8.566 8.304 8.015

2020 2021 2022 2023 2024

1. Market Value at beginning of year $14,153,537,885 $13,484,495,073 $12,773,775,890 $12,022,125,500 $11,226,105,965 

2. Contributions 562,173,001 560,315,592 559,816,067 559,425,993 557,791,789 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,019,185,277 2,021,093,670 2,021,384,223 2,022,919,141 2,024,141,778 

5. Administrative expenses 49,131,596 50,114,228 51,116,512 52,138,842 53,181,619 

6. Investment earnings 739,704,046 702,776,109 663,637,264 622,215,441 578,327,127 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $13,484,495,073 $12,773,775,890 $12,022,125,500 $11,226,105,965 $10,382,298,498 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $15,503,680,349 $14,794,869,560 $14,043,509,723 $13,249,025,105 $12,406,440,276 

9. Solvency ratio: (8) ÷ (4) 7.678 7.320 6.947 6.549 6.129

26.1.11
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

9

EXHIBIT III (continued)

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2% Lower than Used in the Actuarial Solvency 

Certification (5.50%): Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(B)(2) and Revenue Procedure 2015-34 6.04(2)

Year Beginning January 1

2025 2026 2027 2028 2029 

1. Market Value at beginning of year $10,382,298,498 $9,491,796,531 $8,561,151,797 $7,594,326,216 $6,590,467,589 

2. Contributions 556,662,107 560,977,991 566,689,834 572,714,953 578,724,941 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,022,225,922 2,016,858,517 2,006,860,725 1,996,046,783 1,981,376,735 

5. Administrative expenses 54,245,252 55,330,157 56,436,760 57,565,495 58,716,805 

6. Investment earnings 531,910,086 483,168,935 432,385,056 379,641,684 324,966,499 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $9,491,796,531 $8,561,151,797 $7,594,326,216 $6,590,467,589 $5,551,462,503 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $11,514,022,453 $10,578,010,313 $9,601,186,941 $8,586,514,372 $7,532,839,238 

9. Solvency ratio: (8) ÷ (4) 5.694 5.245 4.784 4.302 3.802

2030 2031 2032 2033 2034

1. Market Value at beginning of year $5,551,462,503 $4,480,573,870 $3,383,755,805 $2,262,889,921 $1,118,230,728 

2. Contributions 585,172,624 592,330,713 600,343,200 607,995,601 615,677,379 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 1,962,064,454 1,935,937,672 1,907,422,127 1,876,987,130 1,843,082,255 

5. Administrative expenses 59,891,141 61,088,964 62,310,743 63,556,958 64,828,097 

6. Investment earnings 268,497,324 210,480,844 151,126,772 90,492,280 -- 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $4,480,573,870 $3,383,755,805 $2,262,889,921 $1,118,230,728 $0

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $6,442,638,324 $5,319,693,476 $4,170,312,047 $2,995,217,858 $1,766,477,024 

9. Solvency ratio: (8) ÷ (4) 3.284 2.748 2.186 1.596 0.958 

26.1.12
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

10

EXHIBIT IV

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-9.7% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years: Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(C)(1) and 

Revenue Procedure 2015-34 6.04(3)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2015 through 2035. 

Year Beginning January 1

2015 2016 2017 2018 2019

1. Market Value at beginning of year $17,863,105,558 $16,927,353,339 $16,301,860,201 $16,046,895,667 $15,741,368,163 

2. Contributions 585,689,791 541,436,183 505,481,660 471,199,641 439,846,656 

3. Withdrawal liability payments 398,700,000 128,698,507 137,397,014 137,397,014 137,397,014 

4. Benefit payments 2,834,729,254 2,451,293,739 2,020,777,548 2,015,873,796 2,014,126,357 

5. Administrative expenses 49,100,000 45,390,000 46,297,800 47,223,756 48,168,231 

6. Investment earnings 963,687,244 1,201,055,911 1,169,232,140 1,148,973,393 1,124,913,203 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $16,927,353,339 $16,301,860,201 $16,046,895,667 $15,741,368,163 $15,381,230,448 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $19,762,082,593 $18,753,153,940 $18,067,673,215 $17,757,241,958 $17,395,356,805 

9. Solvency ratio: (8) ÷ (4) 6.971 7.650 8.941 8.809 8.637

2020 2021 2022 2023 2024

1. Market Value at beginning of year $15,381,230,448 $14,920,395,607 $14,393,357,117 $13,800,014,334 $13,136,078,438 

2. Contributions 410,496,032 381,928,894 356,299,146 332,319,373 308,554,255 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,014,835,787 2,015,783,402 2,014,959,953 2,015,107,155 2,014,616,069 

5. Administrative expenses 49,131,596 50,114,228 51,116,512 52,138,842 53,181,619 

6. Investment earnings 1,095,239,496 1,059,533,232 1,019,037,522 973,593,714 922,886,643 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $14,920,395,607 $14,393,357,117 $13,800,014,334 $13,136,078,438 $12,397,118,662 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $16,935,231,394 $16,409,140,519 $15,814,974,287 $15,151,185,593 $14,411,734,730 

9. Solvency ratio: (8) ÷ (4) 8.405 8.140 7.849 7.519 7.154

26.1.13
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

11

EXHIBIT IV (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-9.7% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years: Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(C)(1) and 

Revenue Procedure 2015-34 6.04(3)

Year Beginning January 1

2025 2026 2027 2028 2029 

1. Market Value at beginning of year $12,397,118,662 $11,583,324,011 $10,692,391,289 $9,725,769,519 $8,680,116,313 

2. Contributions 286,596,578 265,936,519 247,592,025 230,237,290 213,722,928 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,010,305,980 2,004,082,434 1,993,179,862 1,980,994,997 1,962,969,646 

5. Administrative expenses 54,245,252 55,330,157 56,436,760 57,565,495 58,716,805 

6. Investment earnings 866,762,989 805,146,336 738,005,813 665,272,982 586,862,480 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $11,583,324,011 $10,692,391,289 $9,725,769,519 $8,680,116,313 $7,556,412,284 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $13,593,629,990 $12,696,473,723 $11,718,949,381 $10,661,111,311 $9,519,381,930 

9. Solvency ratio: (8) ÷ (4) 6.762 6.335 5.880 5.382 4.849

2030 2031 2032 2033 2034

1. Market Value at beginning of year $7,556,412,284 $6,355,019,970 $5,078,028,444 $3,723,320,143 $2,289,524,639 

2. Contributions 198,643,985 184,944,630 172,572,408 160,487,281 149,107,237 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 1,940,365,024 1,911,486,921 1,880,488,013 1,845,454,581 1,804,607,706 

5. Administrative expenses 59,891,141 61,088,964 62,310,743 63,556,958 64,828,097 

6. Investment earnings 502,822,852 413,242,715 318,121,033 217,331,740 110,854,415 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $6,355,019,970 $5,078,028,444 $3,723,320,143 $2,289,524,639 $777,447,502 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $8,295,384,995 $6,989,515,364 $5,603,808,156 $4,134,979,220 $2,582,055,208 

9. Solvency ratio: (8) ÷ (4) 4.275 3.657 2.980 2.241 1.431

26.1.14
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

12

EXHIBIT IV (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-9.7% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years: Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(C)(1) and 

Revenue Procedure 2015-34 6.04(3)

Year Beginning January 1

2035

1. Market Value at beginning of year $777,447,502 

2. Contributions 138,828,012 

3. Withdrawal liability payments 97,397,014 

4. Benefit payments 1,759,248,287 

5. Administrative expenses 66,124,659 

6. Investment earnings --

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $0

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $947,547,869 

9. Solvency ratio: (8) ÷ (4) 0.539 

26.1.15
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

13

EXHIBIT V 

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-9.7% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years Reduced By 1% (-10.7%): Proposed Regulation 

1.432(e)(9)-1 (d)(5)(vi)(C)(2) and Revenue Procedure 2015-34 6.04(4)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2015 through 2034. 

Year Beginning January 1

2015 2016 2017 2018 2019

1. Market Value at beginning of year $17,863,105,558 $16,927,353,339 $16,296,491,076 $16,031,224,381 $15,710,725,860 

2. Contributions 585,689,791 536,218,284 495,837,115 457,778,971 423,184,996 

3. Withdrawal liability payments 398,700,000 128,698,507 137,397,014 137,397,014 137,397,014 

4. Benefit payments 2,834,729,254 2,451,250,900 2,020,674,667 2,015,750,157 2,013,978,735 

5. Administrative expenses 49,100,000 45,390,000 46,297,800 47,223,756 48,168,231 

6. Investment earnings 963,687,244 1,200,861,846 1,168,471,643 1,147,299,407 1,121,995,754 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $16,927,353,339 $16,296,491,076 $16,031,224,381 $15,710,725,860 $15,331,156,658 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $19,762,082,593 $18,747,741,976 $18,051,899,048 $17,726,476,017 $17,345,135,393 

9. Solvency ratio: (8) ÷ (4) 6.971 7.648 8.934 8.794 8.612

2020 2021 2022 2023 2024

1. Market Value at beginning of year $15,331,156,658 $14,846,597,515 $14,291,701,977 $13,666,491,511 $12,966,760,464 

2. Contributions 391,072,823 360,202,261 332,677,774 307,165,812 282,189,852 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,014,659,584 2,015,572,134 2,014,705,857 2,014,802,693 2,014,251,159 

5. Administrative expenses 49,131,596 50,114,228 51,116,512 52,138,842 53,181,619 

6. Investment earnings 1,090,762,200 1,053,191,549 1,010,537,115 962,647,662 909,212,813 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $14,846,597,515 $14,291,701,977 $13,666,491,511 $12,966,760,464 $12,188,127,365 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $16,861,257,099 $16,307,274,111 $15,681,197,368 $14,981,563,156 $14,202,378,524 

9. Solvency ratio: (8) ÷ (4) 8.369 8.091 7.783 7.436 7.051

26.1.16
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

14

EXHIBIT V (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-9.7% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years Reduced By 1% (-10.7%): Proposed Regulation 

1.432(e)(9)-1 (d)(5)(vi)(C)(2) and Revenue Procedure 2015-34 6.04(4)

Year Beginning January 1

2025 2026 2027 2028 2029 

1. Market Value at beginning of year $12,188,127,365 $11,330,794,605 $10,392,357,376 $9,374,195,270 $8,272,851,965 

2. Contributions 259,305,939 237,970,089 219,170,162 201,541,893 184,944,192 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 2,009,871,978 2,003,648,344 1,992,746,232 1,980,561,798 1,962,537,155 

5. Administrative expenses 54,245,252 55,330,157 56,436,760 57,565,495 58,716,805 

6. Investment earnings 850,081,517 785,174,169 714,453,710 637,845,081 555,254,670 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $11,330,794,605 $10,392,357,376 $9,374,195,270 $8,272,851,965 $7,089,193,881 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $13,340,666,583 $12,396,005,720 $11,366,941,502 $10,253,413,763 $9,051,731,036 

9. Solvency ratio: (8) ÷ (4) 6.638 6.187 5.704 5.177 4.612

2030 2031 2032 2033 2034

1. Market Value at beginning of year $7,089,193,881 $5,823,344,865 $4,477,200,729 $3,048,413,898 $1,535,351,093 

2. Contributions 169,930,680 156,423,939 144,353,298 132,662,645 121,755,681 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 97,397,014 

4. Benefit payments 1,940,003,837 1,911,185,002 1,880,236,568 1,845,243,760 1,804,430,640 

5. Administrative expenses 59,891,141 61,088,964 62,310,743 63,556,958 64,828,097 

6. Investment earnings 466,718,268 372,308,877 272,010,168 165,678,254 -- 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $5,823,344,865 $4,477,200,729 $3,048,413,898 $1,535,351,093 $0

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $7,763,348,702 $6,388,385,731 $4,928,650,466 $3,380,594,852 $1,689,675,691

9. Solvency ratio: (8) ÷ (4) 4.002 3.343 2.621 1.832 0.936

26.1.17
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

15

EXHIBIT VI - (Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(D) and Revenue Procedure 2015-34 6.05)

Projection of Funded Percentage

The projected Market Value of Assets and Funded Percentage for the Plan Years beginning January 1, 2016 through 2065. 

Year Beginning January 1

2016 2017 2018 2019 2020

1. Value of Plan assets $16,927,353,339 $16,331,962,529 $16,138,746,117 $15,933,085,955 $15,711,352,718 

2. Unit credit accrued liability 34,858,735,477 23,181,620,534 23,005,931,960 22,826,613,124 22,633,377,265 

3. Funded Percentage: (1) ÷ (2) 48.6% 70.5% 70.2% 69.8% 69.4%

2021 2022 2023 2024 2025

1. Value of Plan assets $15,428,129,308 $15,118,737,641 $14,784,282,024 $14,421,684,389 $14,027,846,076 

2. Unit credit accrued liability 22,411,038,799 22,174,581,197 21,897,845,014 21,612,235,561 21,261,935,800 

3. Funded Percentage: (1) ÷ (2) 68.8% 68.2% 67.5% 66.7% 66.0%

2026 2027 2028 2029 2030 

1. Value of Plan assets $13,604,182,028 $13,157,663,999 $12,692,807,764 $12,209,386,774 $11,709,970,263 

2. Unit credit accrued liability 20,911,043,256 20,536,341,546 20,140,796,121 19,720,581,810 19,278,515,888 

3. Funded Percentage: (1) ÷ (2) 65.1% 64.1% 63.0% 61.9% 60.7%

2031 2032 2033 2024 2035

1. Value of Plan assets $11,198,605,102 $10,682,177,868 $10,163,648,828 $9,644,452,837 $9,128,144,492 

2. Unit credit accrued liability 18,821,051,634 18,356,001,094 17,883,687,956 17,404,599,683 16,923,021,529 

3. Funded Percentage: (1) ÷ (2) 59.5% 58.2% 56.8% 55.4% 53.9%

2036 2037 2038 2039 2040 

1. Value of Plan assets $8,619,062,300 $8,115,307,577 $7,616,840,535 $7,137,486,196 $6,681,807,235 

2. Unit credit accrued liability 16,444,964,116 15,979,281,676 15,523,545,884 15,085,199,657 14,669,078,726 

3. Funded Percentage: (1) ÷ (2) 52.4% 50.8% 49.1% 47.3% 45.6%

2041 2042 2043 2044 2045

1. Value of Plan assets $6,251,402,724 $5,850,571,350 $5,478,891,145 $5,140,185,357 $4,835,488,999 

2. Unit credit accrued liability 14,278,517,660 13,917,200,148 13,583,921,304 13,284,866,901 13,020,052,159 

3. Funded Percentage: (1) ÷ (2) 43.8% 42.0% 40.3% 38.7% 37.1%

26.1.18
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

16

EXHIBIT VI - (Proposed Regulation 1.432(e)(9)-1 (d)(5)(vi)(D) and Revenue Procedure 2015-34 6.05) (continued)

Projection of Funded Percentage

Year Beginning January 1

2046 2047 2048 2049 2050 

1. Value of Plan assets $4,565,894,435 $4,331,679,178 $4,129,688,434 $3,960,359,402 $3,822,617,442 

2. Unit credit accrued liability 12,791,085,586 12,597,895,564 12,435,097,767 12,303,246,809 12,199,694,364 

3. Funded Percentage: (1) ÷ (2) 35.7% 34.4% 33.2% 32.2% 31.3%

2051 2052 2053 2054 2055

1. Value of Plan assets $3,716,360,712 $3,642,421,797 $3,598,517,304 $3,585,797,683 $3,601,857,826 

2. Unit credit accrued liability 12,124,407,115 12,077,643,571 12,056,086,260 12,060,705,537 12,087,909,082 

3. Funded Percentage: (1) ÷ (2) 30.7% 30.2% 29.8% 29.7% 29.8%

2056 2057 2058 2059 2060 

1. Value of Plan assets $3,647,790,190 $3,723,719,932 $3,826,809,562 $3,956,640,066 $4,113,558,209 

2. Unit credit accrued liability 12,138,315,048 12,211,517,894 12,303,136,116 12,411,859,908 12,537,215,515 

3. Funded Percentage: (1) ÷ (2) 30.1% 30.5% 31.1% 31.9% 32.8%

2061 2062 2063 2064 2065

1. Value of Plan assets $4,297,299,627 $4,507,477,246 $4,741,320,139 $4,998,438,596 $5,278,340,662 

2. Unit credit accrued liability 12,677,899,763 12,832,504,070 12,997,298,592 13,171,656,050 13,354,185,383 

3. Funded Percentage: (1) ÷ (2) 33.9% 35.1% 36.5% 37.9% 39.5%

26.1.19
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Central States, Southeast and Southwest Areas 

Pension Plan – Additional Information

EIN 36-6044243/PN 001 

17

EXHIBIT VII

Actuarial Basis

Unless noted otherwise, the projections in this report are based on the data, assets and assumptions described in the Actuarial Certification 

of Plan Solvency under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) of Proposed Benefit Suspensions as of July 1, 

2016, dated September 18, 2015. 

Historical information shown in Exhibit I was provided by the Fund Office. 

For purposes of the deterministic solvency projections in Exhibit IV and Exhibit V, the assumed rates of withdrawal prior to retirement, as 

described in the January 1, 2015 actuarial valuation, were increased by 10%. 

For purposes of the projection of assets and liabilities for calculation of funded percentages: projected assets are the values used for the 

deterministic solvency projection for the proposed suspension in the Actuarial Certification of Plan Solvency under ERISA Section 

305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i), projected liabilities following the proposed benefit suspension are estimated by 

discounting the projected future benefit payments at each year.

Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretation on 

which the certification is based reflects Segal’s understanding as an actuarial firm. Due to the complexity of the statute and the 

significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when making any decisions 

regarding compliance with ERISA and the Internal Revenue Code.

5528431v3/10346.001

26.1.20