Milliman Additional Information 

Issued December 6, 2017 

Alaska Ironworkers Pension Plan 

Additional Information for Proposed Benefit Suspensions as of 

July 1, 2018 

Prepared by: 

Mark C. Olleman 

FSA, EA, MAAA 

Josh Goodwin 

ASA, EA, MAAA 

Milliman, Inc. 

1301 Fifth Avenue, Suite 3800 

Seattle WA 98101-2605

Tel +1 206 624 7940 

Fax +1 206 623 3485 

milliman.com 

Exhibit 10 AIPT 138
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 i 

Alaska Ironworkers Pension Plan 

Additional Information for Proposed Benefit Suspensions as of 

July 1, 2018 of the Alaska Ironworkers Pension Plan 

This report for the Alaska Ironworkers Pension Plan (the “Plan”) has been completed in accordance with our 

understanding of IRC §432(e)(9)(C)(i) (including §1.432(e)(9)-1 and Revenue Procedure 2017-43). The 

additional information required for the application to suspended benefits is contained in this report. 

Purpose of the Report 

The Plan was certified as “critical and declining” for the plan year beginning July 1, 2017. The Trustees have 

chosen to pursue benefit suspensions which are allowed for such plans under §432. This report includes 

additional information required for the application to suspended benefits. Specifically, this report contains the 

materials required in checklist items 26, 27 and 28 included in Revenue Procedure 2017-43. 

Limited Distribution 

Milliman’s work is prepared solely for the internal business use of the Trustees of the Plan, and may not be 

provided to third parties without our prior written consent. We understand this will be provided to Treasury and 

posted on their website. Milliman does not intend to benefit or create a legal duty to any third party recipient of 

its work product. Milliman’s consent to release its work product to any third party may be conditioned on the 

third party signing a release, subject to the following exceptions: 

 The Plan may provide a copy of Milliman’s work, in its entirety, to the Plan’s professional service advisors 

who are subject to a duty of confidentiality and who agree to not use Milliman’s work for any purpose 

other than to benefit the Plan. 

 The Plan may distribute certain work product that Milliman and the Plan Sponsor mutually agree is 

appropriate as may be required by the Pension Protection Act of 2006. 

Third party recipients of Milliman’s work product should engage their own qualified professionals for advice 

appropriate to their specific needs. 

Reliance 

In preparing the report, we relied on our July 1, 2016 Actuarial Valuation, our Actuarial Certification of Plan 

Solvency of Proposed Benefit Suspensions as of July 1, 2018, and, without audit, information (some oral and 

some in writing) supplied by the Plan’s administrator and auditor. This information includes, but is not limited 

to, plan documents and provisions, participant data, and financial information. We found this information to be 

reasonably consistent and comparable with information used for other purposes. The results depend on the 

integrity of this information. If any of this information is incomplete or inaccurate, our results may be different 

and our calculations may need to be revised. 

 

Exhibit 10 AIPT 139

Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 iii 

Alaska Ironworkers Pension Plan 

Table of Contents

A. Past Experience with Certain Critical Assumptions ...................................................................................... 1

B. Development of Projected June 30, 2018 Market Value of Assets .............................................................. 2

C. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than Used in 

the Actuarial Certification of Solvency ............................................................................................................... 3

D. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than Used in 

the Actuarial Certification of Solvency ............................................................................................................... 5

E. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the Same Trend 

as the Plan Experienced Over the Last 10 Years (-8.08% per year) ................................................................ 7

F. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the Same Trend 

as the Plan Experienced Over the Last 10 Years, Reduced by 1.00% (-9.08% per year) ............................... 8

G. Projection of Funded Percentage ................................................................................................................. 9

H. Response to Revenue Procedure 2017-43 Section 6.03 and Appendix B ................................................ 10

Exhibit 10 AIPT 141
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan A. Past Experience with Certain Critical Assumptions 

The following table summarizes the plan experience with certain critical assumptions for the last 10 years. We have broken dow

units into “Pension Hours” and “Reciprocity Hours.” 

Plan Year 

Beginning 

July 1

Total Employer 

Contributions* Pension Hours Reciprocity Hours

Average 

Contribution Rate

Withdrawal 

Liabiliaty 

Payments

2016 2,147,339 $ 151,676 0 14.16 $ 0 $ 2015 2,276,515 186,759 11,543 12.19 0 2014 3,123,859 238,039 32,433 13.12 0 2013 2,663,353 204,616 37,150 13.02 0 2012 2,166,310 185,055 28,825 11.71 0 2011 1,810,073 166,922 31,901 10.84 0 2010 1,570,732 163,184 25,302 9.63 362,991 2009 1,749,934 219,681 33,099 7.97 0 2008 1,607,445 290,399 34,888 5.54 0 2007 1,607,470 323,913 32,606 4.96 0 

Average Trend from 2007 to 2016 -8.08%*Total employer contributions include reciprocal hours and lower rates and exclude withdrawal liability payments
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 2 

Alaska Ironworkers Pension Plan 

B. Development of Projected June 30, 2018 Market Value of Assets 

The table below shows the actual change in the market value of assets from July 1, 2016 through 

September 30, 2017 and projected market value of assets from October 1, 2017 through June 30, 2018. 

The calculations are based on the following information: 

 The market value of assets as of July 1, 2016 is based on June 30, 2016 financial statements from 

the Plan’s auditor. 

 The market value of assets as of July 1, 2017 is based on preliminary June 30, 2017 financial 

statements from the Plan’s auditor. 

 Employer contributions benefit payments and administrative expenses through September 30, 2017 

and market value of assets as of as of September 30, 2017 are based on unaudited financial 

statements provided by the Plan administrator. 

 Estimated employer contributions from October 1, 2017 through June 30, 2018 are based on 9/12ths 

of the assumed contribution of $2,687,750 (based on an hours assumption of 165,000 and bargained 

contribution rate of $13.75/hours) for the 2017/2018 plan year. 

 Estimated benefit payments from October 1, 2017 through June 30, 2018 are based on 9/12ths of the 

expected benefit payments produced for the 2017/2018 plan year during the July 1, 2016 actuarial 

valuation. 

 The administrative expenses from October 1, 2017 through June 30, 2018 are based on the $520,000 

administrative expense assumption disclosed in the July 1, 2016 actuarial valuation, increased by a 

cost of living adjustment of 2.5% (to get from the 2016/2017 plan year to the 2017/2018 plan year) 

and multiplied by 9/12ths. 

 Investment returns through September 30, 2017 were forced to make the market value of assets on 

September 30, 2017 match the administrator’s unaudited financial statements. 

 Investment returns from October 1, 2017 through June 30, 2018 are based on an assumed return of 

3.08% during that period. 

From July 1, 2016 

through 

June 30, 2017

From July 1, 2017 

through 

September 30, 2017

Projection from 

October 1, 2017 

through 

June 30, 2018

Total for 2017/2018 

Plan Year

1. Market value of assets (beginning of year) 49,524,313 $ 49,259,700 $ 49,312,981 $ 49,259,700 $ 

2. Employer contributions 2,147,339 544,047 1,701,563 2,245,610 

3. Withdrawal liability payments 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries n/a 1,700,505 5,293,118 6,993,623 

b. Terminated vested participants n/a 66,844 200,531 267,375 

c. Current actives n/a 13,649 40,946 54,595 

d. New entrants 0 0 0 0 

e. Total 7,405,265 1,780,998 5,534,596 7,315,594 

5. Administrative expenses 713,440 174,036 399,750 573,786 

6. Investment returns 5,706,753 1,464,268 2,916,056 1,451,788 

7. $ 49,312,981 49,259,700 $ 46,531,985 $ 46,531,985 $ Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6)

Exhibit 10 AIPT 143
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan C. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than 

Used in the Actuarial Certification of Solvency 

The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(d)(5)(

procedure 2017-43 6.05(1). 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 46,059,752 $ 43,730,097 $ 41,835,817 $ 40,030,588 $ 38,624,006 $ 37,224,30

2. Employer contributions 1,701,563 2,268,750 2,268,750 2,268,750 2,612,500 2,612,500 2,612,50

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 5,293,118 5,418,653 5,245,341 5,089,580 4,932,164 4,773,111 4,612,48

b. Terminated vested participants 200,531 282,406 350,768 443,038 520,024 568,525 649,97

c. Current actives 40,946 108,073 131,783 167,648 211,580 254,801 315,44d. New entrants 0 0 0 0 0 1,936 3,89

e. Total 5,534,596 5,809,132 5,727,892 5,700,266 5,663,768 5,598,373 5,581,80

5. Administrative expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,11

6. Investment returns 1,757,052 979,555 2,124,845 2,200,270 2,189,213 2,233,018 2,106,11

7. $ 43,730,097 46,059,752 $ 41,835,817 $ 40,030,588 $ 38,624,006 $ 37,224,306 $ 35,743,00

$ 

8. $ 49,539,229 51,594,348 $ 47,563,709 $ 45,730,854 $ 44,287,774 $ 42,822,679 $ 41,324,80

$ 

Solvency ratio (8) / (4e) 9.32 8.53 8.30 8.02 7.82 7.65 7.4

 

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 mon

Plan year beginning July 1 2026 2027 2028 2029 2030 2031 2032 

1. Market value of assets (beginning of year) 32,646,174 $ $ 31,083,925 $ 29,609,005 $ 28,124,599 $ 26,643,353 $ 25,159,948 $ 23,658,22

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,50

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 4,122,329 3,956,702 3,790,172 3,622,878 3,455,012 3,286,788 3,118,46

b. Terminated vested participants 788,130 803,781 824,040 848,625 876,002 912,184 914,68

c. Current actives 425,387 448,484 494,252 522,876 553,731 590,023 607,37

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711 43,72

e. Total 5,348,710 5,225,814 5,129,505 5,019,928 4,915,265 4,825,706 4,684,23

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115 771,94

6. Investment returns 1,820,679 1,839,605 1,731,941 1,643,008 1,464,599 1,554,107 1,375,52

7. $ 29,609,005 31,083,925 $ 28,124,599 $ 26,643,353 $ 25,159,948 $ 23,658,226 $ 22,190,07

$ 

8. $ 34,834,819 36,432,635 $ 33,254,104 $ 31,663,281 $ 30,075,213 $ 28,483,932 $ 26,874,30

$ 

Solvency ratio (8) / (4e) 6.81 6.67 6.48 6.31 6.12 5.90 5.7

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan 

Plan year beginning July 1 2035 2036 2037 2038 2039 2040 2041 

1. Market value of assets (beginning of year) 19,333,681 $ $ 17,934,012 $ 16,549,289 $ 15,173,890 $ 13,814,631 $ 12,468,661 $ 11,134,542. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,50

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,615,870 2,450,206 2,286,134 2,124,080 1,964,494 1,807,910 1,654,96

b. Terminated vested participants 925,141 924,300 927,804 916,364 903,810 888,254 868,79

c. Current actives 689,757 725,796 758,976 798,111 838,271 878,935 911,80

d. New entrants 68,289 79,524 93,512 107,885 123,068 139,373 159,90

e. Total 4,299,057 4,179,826 4,066,426 3,946,440 3,829,643 3,714,472 3,595,46

5. Administrative expenses 831,298 852,081 873,383 895,217 917,598 940,537 964,05

6. Investment returns 1,034,683 1,118,186 951,910 869,898 708,396 788,770 628,85

7. $ 16,549,289 17,934,012 $ 15,173,890 $ 13,814,631 $ 12,468,661 $ 11,134,547 $ 9,816,38

$ 

8. $ 20,729,115 22,233,069 $ 19,240,316 $ 17,761,071 $ 16,298,304 $ 14,849,019 $ 13,411,85

$ 

Solvency ratio (8) / (4e) 5.17 4.96 4.73 4 50 4.26 4.00 3.7

 

Plan year beginning July 1 2044 2045 2046 2047

1. Market value of assets (beginning of year) 7,273,509 $ $ 6,045,913 $ 4,847,045 $ 3,663,552

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500

3. Withdrawal liability payments 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 1,225,226 1,094,262 970,638 854,874

b. Terminated vested participants 796,696 768,060 739,381 711,455

c. Current actives 956,327 964,504 975,638 988,876d. New entrants 223,634 247,600 275,342 306,295

e. Total 3,201,883 3,074,426 2,960,999 2,861,500

5. Administrative expenses 1,038,177 1,064,132 1,090,735 1,118,004

6. Investment returns 327,189 399,965 255,742 184,800

7. $ 4,847,045 6,045,913 $ 3,663,552 $ 2,481,349 $ 

8. $ 7,921,471 9,247,796 $ 6,624,551 $ 5,342,849 $ 

Solvency ratio (8) / (4e) 2.89 2.58 2.24 1.87

Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan D. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than 

Used in the Actuarial Certification of Solvency 

The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(d)(5)(

procedure 2017-43 6.05(2). 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 45,587,621 $ 42,803,338 $ 40,453,502 $ 38,186,977 $ 36,308,589 $ 34,425,74

2. Employer contributions 1,701,563 2,268,750 2,268,750 2,268,750 2,612,500 2,612,500 2,612,50

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 5,293,118 5,418,653 5,245,341 5,089,580 4,932,164 4,773,111 4,612,48

b. Terminated vested participants 200,531 282,406 350,768 443,038 520,024 568,525 649,97

c. Current actives 40,946 108,073 131,783 167,648 211,580 254,801 315,44

d. New entrants 0 0 0 0 0 1,936 3,89

e. Total 5,534,596 5,809,132 5,727,892 5,700,266 5,663,768 5,598,373 5,581,80

5. Administrative expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,11

6. Investment returns 1,302,424 507,424 1,669,289 1,738,974 1,706,067 1,761,212 1,613,09

7. $ 42,803,338 45,587,621 $ 40,453,502 $ 38,186,977 $ 36,308,589 $ 34,425,743 $ 32,451,41

$ 

8. $ 48,612,470 51,122,217 $ 46,181,394 $ 43,887,243 $ 41,972,357 $ 40,024,116 $ 38,033,21

$ 

Solvency ratio (8) / (4e) 9.24 8.37 8.06 7.70 7.41 7.15 6.8

 

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 mon

Plan year beginning July 1 2026 2027 2028 2029 2030 2031 2032 

1. Market value of assets (beginning of year) 28,339,475 $ $ 26,254,578 $ 24,234,688 $ 22,191,446 $ 20,136,812 $ 18,064,709 $ 15,958,28

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,50

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 4,122,329 3,956,702 3,790,172 3,622,878 3,455,012 3,286,788 3,118,46

b. Terminated vested participants 788,130 803,781 824,040 848,625 876,002 912,184 914,68

c. Current actives 425,387 448,484 494,252 522,876 553,731 590,023 607,37

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711 43,72

e. Total 5,348,710 5,225,814 5,129,505 5,019,928 4,915,265 4,825,706 4,684,23

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115 771,94

6. Investment returns 1,275,709 1,316,957 1,173,105 1,069,620 859,894 965,409 753,91

7. $ 24,234,688 26,254,578 $ 22,191,446 $ 20,136,812 $ 18,064,709 $ 15,958,282 $ 13,868,52

$ 

8. $ 29,460,502 31,603,288 $ 27,320,951 $ 25,156,740 $ 22,979,974 $ 20,783,988 $ 18,552,75

$ 

Solvency ratio (8) / (4e) 5.91 5.64 5.33 5 01 4.68 4.31 3.9

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan 

Plan year beginning July 1 2035 2036 2037 2038 2039

1. Market value of assets (beginning of year) $ 9,713,511 $ 7,634,427 $ 5,548,613 $ 3,449,206 $ 1,341,7122. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500

3. Withdrawal liability payments 0 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 2,615,870 2,450,206 2,286,134 2,124,080 1,964,494

b. Terminated vested participants 925,141 924,300 927,804 916,364 903,810

c. Current actives 689,757 725,796 758,976 798,111 838,271

d. New entrants 68,289 79,524 93,512 107,885 123,068

e. Total 4,299,057 4,179,826 4,066,426 3,946,440 3,829,643

5. Administrative expenses 831,298 852,081 873,383 895,217 917,598

6. Investment returns 333,592 438,771 227,902 121,663 14,909

7. $ 7,634,427 $ 5,548,613 $ 3,449,206 $ 1,341,712 Insolvent8. $ 11,933,484 $ 9,728,439 $ 7,515,632 $ 5,288,152 n/a

Solvency ratio (8) / (4e) 2.78 2.33 1 85 1.34 n/a

Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan E. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the 

Same Trend as the Plan Experienced Over the Last 10 Years (-8.08% per year) 

The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(d)(5)(

procedure 2017-43 6.05(3). 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 46,531,985 $ 44,478,669 $ 42,685,349 $ 40,811,453 $ 38,814,719 $ 36,635,06

2. Employer contributions 1,701,563 2,085,435 1,916,932 1,762,044 1,619,671 1,488,802 1,368,50

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 5,293,118 5,418,653 5,245,341 5,089,580 4,932,164 4,773,111 4,612,48

b. Terminated vested participants 200,531 282,406 350,768 443,038 520,024 568,525 649,97

c. Current actives 40,946 108,073 131,783 167,648 211,580 254,801 315,44

d. New entrants 0 0 0 0 0 1,936 3,89

e. Total 5,534,596 5,809,132 5,727,892 5,700,266 5,663,768 5,598,373 5,581,80

5. Administrative expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,11

6. Investment returns 2,216,706 1,451,788 2,577,623 2,638,309 2,532,957 2,635,695 2,377,63

7. $ 44,478,669 46,531,985 $ $ 42,685,349 $ 40,811,453 $ 38,814,719 $ 36,635,065 $ 34,181,29

8. $ 52,066,581 $ 50,287,801 $ 48,413,241 $ 46,511,719 $ 44,478,487 $ 42,233,438 $ 39,763,09

Solvency ratio (8) / (4e) 9.41 8.66 8.45 8.16 7.85 7.54 7.1

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 mon

Plan year beginning July 1 2026 2027 2028 2029 2030 2031 2032 

1. Market value of assets (beginning of year) 28,545,126 $ $ 25,405,732 $ 22,124,790 $ 18,608,599 $ 14,860,166 $ 10,863,345 $ 6,589,78

2. Employer contributions 1,062,863 976,984 898,044 825,482 758,783 697,473 641,11

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 4,122,329 3,956,702 3,790,172 3,622,878 3,455,012 3,286,788 3,118,46

b. Terminated vested participants 788,130 803,781 824,040 848,625 876,002 912,184 914,68

c. Current actives 425,387 448,484 494,252 522,876 553,731 590,023 607,37

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711 43,72

e. Total 5,348,710 5,225,814 5,129,505 5,019,928 4,915,265 4,825,706 4,684,23

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115 771,94

6. Investment returns 1,650,173 1,812,097 1,414,612 1,162,839 607,785 894,408 303,28

7. $ 22,124,790 25,405,732 $ $ 18,608,599 $ 14,860,166 $ 10,863,345 $ 6,589,782 $ 2,078,00

8. $ 30,754,442 $ 27,350,604 $ 23,738,104 $ 19,880,094 $ 15,778,610 $ 11,415,488 $ 6,762,23

Solvency ratio (8) / (4e) 5.75 5.23 4.63 3.96 3.21 2.37 1.4

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan F. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the 

Same Trend as the Plan Experienced Over the Last 10 Years, Reduced by 1.00% (-9.08% per year) 

The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(d)(5)(

procedure 2017-43 6.05(4). 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 46,531,985 $ 44,455,423 $ 42,617,961 $ 40,680,962 $ 38,603,630 $ 36,327,38

2. Employer contributions 1,701,563 2,062,748 1,875,450 1,705,159 1,550,331 1,409,561 1,281,57

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 5,293,118 5,418,653 5,245,341 5,089,580 4,932,164 4,773,111 4,612,48

b. Terminated vested participants 200,531 282,406 350,768 443,038 520,024 568,525 649,97

c. Current actives 40,946 108,073 131,783 167,648 211,580 254,801 315,44

d. New entrants 0 0 0 0 0 1,936 3,89

e. Total 5,534,596 5,809,132 5,727,892 5,700,266 5,663,768 5,598,373 5,581,80

5. Administrative expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,11

6. Investment returns 2,216,147 1,451,788 2,574,963 2,632,091 2,515,604 2,624,437 2,353,31

7. $ 44,455,423 46,531,985 $ $ 42,617,961 $ 40,680,962 $ 38,603,630 $ 36,327,382 $ 33,762,35

8. $ 52,066,581 $ 50,264,555 $ 48,345,853 $ 46,381,228 $ 44,267,398 $ 41,925,755 $ 39,344,15

Solvency ratio (8) / (4e) 9.41 8.65 8.44 8.14 7.82 7.49 7.0

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 mon

Plan year beginning July 1 2026 2027 2028 2029 2030 2031 2032 

1. Market value of assets (beginning of year) 27,863,286 $ $ 24,573,520 $ 21,128,021 $ 17,434,860 $ 13,497,023 $ 9,298,199 $ 4,809,72

2. Employer contributions 963,211 875,751 796,233 723,935 658,202 598,437 544,09

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current re irees and beneficiaries 4,122,329 3,956,702 3,790,172 3,622,878 3,455,012 3,286,788 3,118,46

b. Terminated vested participants 788,130 803,781 824,040 848,625 876,002 912,184 914,68

c. Current actives 425,387 448,484 494,252 522,876 553,731 590,023 607,37

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711 43,72

e. Total 5,348,710 5,225,814 5,129,505 5,019,928 4,915,265 4,825,706 4,684,23

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115 771,94

6. Investment returns 1,586,849 1,761,377 1,339,453 1,074,982 491,914 792,986 172,05

7. $ 21,128,021 24,573,520 $ $ 17,434,860 $ 13,497,023 $ 9,298,199 $ 4,809,729 $ 69,69

8. $ 29,922,230 $ 26,353,835 $ 22,564,365 $ 18,516,951 $ 14,213,464 $ 9,635,435 $ 4,753,93

Solvency ratio (8) / (4e) 5.59 5.04 4.40 3.69 2.89 2.00 1.0

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan G. Projection of Funded Percentage 

The table shows the projected market value of assets, plan liability and funded percentage for the plan years ending June 302048 as required under regulation 1.432(e)(9)-1(d)(5)(vi)(D) and revenue procedure 2017-43 6.06. 

Plan year beginning July 1 2016 2017 2018 2019 2020 2021 2022 

1. Value of plan assets $ 49,524,313 $ 49,259,700 $ 46,531,985 $ 44,666,502 $ 43,246,993 $ 41,932,680 $ 41,038,860 $ 4

2. Unit credit accrued liability $ 94,638,324 $ 92,920,631 $ 71,244,115 $ 69,803,793 $ 68,367,856 $ 66,871,198 $ 65,343,418 $ 6

3. Funded percentage: (1) / (2) 52.3% 53.0% 65.3% 64.0% 63.3% 62.7% 62.8% 

Plan year beginning July 1 2025 2026 2027 2028 2029 2030 2031 

1. Value of plan assets $ 38,289,442 $ 37,350,215 $ 36,424,402 $ 35,627,814 $ 34,856,079 $ 34,124,275 $ 33,429,729 $ 3

2. Unit credit accrued liability $ 60,520,741 $ 58,863,550 $ 57,204,180 $ 55,576,977 $ 53,955,907 $ 52,354,583 $ 50,766,160 $ 4

3. Funded percentage: (1) / (2) 63.3% 63.5% 63.7% 64.1% 64.6% 65.2% 65.9% 

Plan year beginning July 1 2034 2035 2036 2037 2038 2039 2040 

1. Value of plan assets $ 31,649,778 $ 31,213,338 $ 30,847,776 $ 30,557,889 $ 30,342,534 $ 30,213,331 $ 30,172,599 $ 3

2. Unit credit accrued liability $ 46,169,649 $ 44,745,464 $ 43,364,212 $ 42,022,139 $ 40,718,396 $ 39,462,589 $ 38,251,436 $ 3

3. Funded percentage: (1) / (2) 68.6% 69.8% 71.1% 72.7% 74.5% 76.6% 78.9% 

Plan year beginning July 1 2043 2044 2045 2046 2047 2048

1. Value of plan assets $ 30,657,237 $ 31,067,325 $ 31,612,981 $ 32,302,900 $ 33,132,240 $ 34,095,907

2. Unit credit accrued liability $ 34,917,343 $ 33,946,566 $ 33,051,740 $ 32,238,000 $ 31,493,039 $ 30,805,5963. Funded percentage: (1) / (2) 87.8% 91.5% 95.6% 100.2% 105.2% 110.7%

Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018

Alaska Ironworkers Pension Plan 

Assumptions regarding form and commencement age of benefits

 All future retirees are assumed to elect a single life form of payment 

 Terminated participants with vested benefits are assumed to retire at the same rates as active 

participants. This assumption is summarized in the July 1, 2016 actuarial valuation included with 

item #5 of this application. 

 The Plan has no disability benefit provision so no assumption is made for future disability. The 

Plan’s disability provisions were removed when the rehabilitation plan was created in 2010. 

Assumptions regarding missing or incomplete data

 Regarding terminated vested participants beyond normal retirement age, we value all terminated 

vested participants that are provided to us by the plan administrator. 

 Regarding assumptions used for missing data, we assume that: 

o New records with no birth date are assumed to be 41 years old. Records that are not new 

and have no birth date used the same birth date as the prior year’s valuation, 

o Wives are 3 years younger than husbands, 

o 100% of participants are assumed to be married. 

New entrant profile

 Exhibit G of the report titled “Actuarial Certification of Plan Solvency of Proposed Benefit 

Suspensions as of July 1, 2018” included with item #6 of this application includes a detailed 

description of the new entrant profile. 

Contribution rates

 A contribution rate of $13.75/hour is assumed for all hours worked in the future. This is the 

bargained contribution rate for all employers. 

Contribution base units

 A detailed description of the assumed contribution base units can be found in Exhibit F and 

Exhibit G (under activity assumption) of the “Actuarial Certification of Plan Solvency of Proposed 

Benefit Suspensions as of July 1, 2018” included with item #6 of this application. 

 Each active participant is assumed to work 1,078 hours per year. This is the assumed hours 

assumption of 165,000 divided by the 153 active participants. When the hours assumption 

increases to 190,000 beginning with the plan year beginning July 1, 2021, the additional hours 

are assumed to come from an increase in the active workforce. 

Exhibit 10 AIPT 152


Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018

Alaska Ironworkers Pension Plan 

Contribution base units and employer withdrawals

 The requested information regarding employers that contributed 5% or more of the annual 

contribution to the plan is included with item #25. 

 The historical trends experienced by the plan with respect to hours have been heavily influenced 

by the amount of publicly funded jobs as discussed in the “Actuarial Certification of Plan Solvency 

of Proposed Benefit Suspensions as of July 1, 2018” included with item #6 of this application. The 

historical increase in contribution rates since 2005 reflects first, a concerted effort by the 

bargaining parties to overcome the difficult investment markets of 2000-2002, and later the 

bargaining parties’ obligation to follow the rehabilitation plan. 

 The rationale for the assumptions for contribution base units is in the “Actuarial Certification of 

Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018” included with item #6 of this 

application. 

 The rationale for the assumptions for contribution rates is that the current level of $13.75 per hour 

can no longer be increased without decreasing the number of hours of contributions. This 

rationale is discussed in more detail in response to item #31 describing the reasons the plan is in 

critical and declining status. 

 The Plan experienced 1 withdrawal in the last 5 years. As of now this employer has not paid 

anything, but the plan is pursuing the employer to collect some if not all of the assessed 

withdrawal liability. 

Take-up rate with respect to selection of benefit/contribution schedules

 The rehabilitation plan had a single schedule, the default schedule. All employers are in the same 

rehabilitation schedule. 

Projection methodology

 No approximation techniques aside from the approximations inherent in actuarial assumptions 

were used when developing projections. 

 No modification were made to the cash flow projections produced by our actuarial software. 

Part 3 – Additional disclosures relating to use of different assumptions 

The following assumptions differed between the projections produced under section 4.02(1) and 3.01. 

An explanation for why they were different is included. 

 Investment return assumption – For the purpose of the projections included in 3.01, we used the 

investment return assumption used in the July 1, 2016 valuation of 6.0%. This is a single rate 

long term assumption developed using Milliman’s Capital Market Assumptions. The investment 

return assumption used to develop the projections described in section 4.02(1) was developed 

using short term and long term assumptions to reflect different return expectations over different 

periods based on the 2017 Horizon Survey of Capital Market Assumptions which is a widely used 

survey that has been deemed reasonable in similar circumstances. 

 Administrative expense – Projections produced for both sections 3.01 and 4.02(1) use the same 

base administrative expenses assumption of $520,000 for the plan year beginning July 1, 2016, 

but the projections produced for section 4.02(1) uses an annual increase of 2.5% while the 

Exhibit 10 AIPT 155
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of July 1, 2018

Alaska Ironworkers Pension Plan 

projections produced for section 3.01 assume no annual increase. We believe that solvency 

projections like those produced for section 4.02(1) should reflect our best guess for increases in 

administrative expenses. 

 New entrants – For the purpose of the projections included in 3.01, no new entrant assumption 

was used. These projections assumed a level normal cost each year, but did not include 

additional benefit payments for new entrants. The projections produced for 4.02(1) use the new 

entrant assumption described in the report titled “Actuarial Certification of Plan Solvency of 

Proposed Benefit Suspensions as of July 1, 2018” included with item #6. This is a more robust 

assumption developed to meet the requirements of MPRA. 

Exhibit 10 AIPT 156