Milliman - Report of Required Actuarial Information 

Issued March 27, 2018 

Sheet Metal Workers Local Pension Plan 

Report of Required Actuarial Information - 

Application for Proposed Benefit Suspensions as of May 1, 2019 

Prepared by: 

Kevin M. Campe, EA, MAAA 

Principal and Consulting Actuary 

Therese A. Marske, ASA, EA, MAAA 

Consulting Actuary 

Milliman, Inc. 

71 South Wacker Drive, Suite 3100 

Chicago, Illinois 60606 

Tel +1 312 726 0677 

Fax +1 312 726 5225 

milliman.com 

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Report of Required Actuarial Information - Application for Proposed Benefit 

Suspensions as of May 1, 2019 for the Sheet Metal Workers Local Pension 

Plan 

This report includes the actuarial certification of plan solvency and presentation of additional actuarial information 

required for the application to suspend benefits for the Sheet Metal Workers Local Pension Plan (the “Plan”). This 

report 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). 

Purpose of the Report 

The Plan was certified as “critical and declining” for the plan years beginning May 1, 2016 and May 1, 2017. The 

Trustees have chosen to pursue benefit suspensions which are allowed to such plans under §432. We have 

completed our analysis of the Trustees’ proposed benefit suspensions and determined that the proposed 

suspensions of benefits would likely enable the Plan to avoid insolvency (as defined in IRC §418E) assuming the 

proposed suspensions continue indefinitely and occur no later than May 1, 2019. In addition, we have also 

completed the analysis required to satisfy §432(e)(9)(D)(iv) (taking into account §1.432(e)(9)-1 and Revenue 

Procedure 2017-43) which requires that the proposed suspension does not materially exceed the level necessary 

to avoid insolvency. This report also includes additional information required for the application to suspended 

benefits. 

Specifically, this report contains the materials required in checklist items 6, 9, 11, 25, 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 Board of Trustees Sheet Metal Workers 

Local Pension Plan (the “Plan Sponsor”) and the Plan’s Trustees and may not be provided to third parties without 

our prior written consent. 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 Sponsor 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 Sponsor 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 and the Multiemployer Pension Reform 

Act of 2014. 

Any third party recipient of this work product who desires professional guidance should not rely upon Milliman’s 

work product, but should engage qualified professionals for advice appropriate to its own specific needs. 

Reliance 

In preparing the report, we relied on our May 1, 2017 Actuarial Valuation, and, without audit, information (some 

oral and some in writing) supplied by the Plan’s administrator, auditor, and investment consultant. This 

information includes, but is not limited to, plan documents and provisions, participant data, and financial 

information. The participant data used for the suspension of benefits work is the same data used for the May 1, 

2017 Actuarial Valuation. Additional individual participant information (i.e. missing pop-up amounts, years of 

service) was supplied by the Plan Administrator subsequent to the May 1, 2017 valuation to refine the benefit 

payment projections. 

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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. 

Limited Use 

Actuarial computations presented here were prepared to meet the requirement set forth in IRC §432(e)(9) (taking 

into account §1.432(e)(9)-1 and Revenue Procedure 2017-43). 

Actuarial computations for purposes other than determining the contribution requirements for an ongoing plan 

(such as for assessing benefit security upon potential plan termination) may yield significantly different results 

from those shown in this report. 

Future actuarial measurements may differ significantly from the current measurements presented in this report 

due to factors such as, but not limited to, the following: plan experience differing from that anticipated by the 

economic or demographic assumptions; changes in economic or demographic assumptions; increases or 

decreases expected as part of the natural operation of the methodology used for these measurements (such as 

the end of an amortization period or additional cost or contribution requirements based on plan funded status); 

and changes in plan provisions or applicable law. Due to the limited scope of the actuarial assignment, we did not 

perform an analysis of the potential range of such future measurements. 

The consultants who worked on this assignment are pension actuaries. Milliman’s advice is not intended to be a 

substitute for qualified legal or accounting counsel. 

Certification 

In our opinion, each assumption used, other than those assumptions mandated directly by the Internal Revenue 

Code and regulations thereon, is reasonable (taking into account the experience of the Plan and reasonable 

expectations). 

On the basis of the foregoing, we hereby certify that to the best of our knowledge and belief, this report is 

complete and accurate and has been prepared in accordance with generally recognized and accepted actuarial 

principles and practices which are consistent with the principles prescribed by the Actuarial Standards Board and 

the Code of Professional Conduct and Qualification Standards for Actuaries Issuing Statements of Actuarial 

Opinion in the United States promulgated by the American Academy of Actuaries. We are members of the 

American Academy of Actuaries and meet its Qualification Standards to render the actuarial opinion contained 

herein. 

Respectfully submitted, 

Kevin M. Campe, EA, MAAA Therese A. Marske, ASA, EA, MAAA 

Principal and Consulting Actuary Consulting Actuary 

Enrolled Actuary Number 17-05356 Enrolled Actuary Number 17-05155 

March 27, 2018 

Date 

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Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 

Sheet Metal Workers Local Pension Plan 

Table of Contents 

A. Summary of Key Information and Results ......................................................................................................2

B. Development of Projected April 30, 2018 Market Value of Assets .................................................................4

C. Deterministic Projection of Current Plan without Proposed Suspension ........................................................5

D. Deterministic Projection of Proposed Suspension ..........................................................................................7

E. Deterministic Projection Demonstrating Proposed Suspension Does Not Materially Exceed the 

Level that is Necessary to Avoid Insolvency ...................................................................................................9

F. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced 

by 1.00% ...................................................................................................................................................... 11

G. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced 

by 2.00% ...................................................................................................................................................... 13

H. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption 

Continues Under the Same Trend as the Plan Experienced Over the Last 10 Years (0.1% per year) ....... 15

I. Deterministic Projection of the Proposed Suspension Assuming the Industry Activity Assumption 

Continues Under the Same Trend as the Plan Experienced Over the Last 10 Years, Reduced 

by 1.0% (-0.9% per year) ............................................................................................................................. 17

J. Projection of Funded Percentage................................................................................................................. 19

K. Response to Revenue Procedure 2017-43 Section 6.03, 6.04 and Appendix B ......................................... 20

L. Proposed Benefit Suspensions .................................................................................................................... 31

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A. Summary of Key Information and Results 

The Board of Trustees proposes the following reduction of benefits: 

 

 A reduction in monthly benefits such that the revised monthly amount is based on a level accrual 

rate of $48.00, multiplied by the years of service earned through April 30, 2019; 

 The resulting benefit cannot be less than the MPRA guaranteed amount; and 

 Participants whose current level accrual rate is already less than the $48.00 level accrual rate, 

will not have their benefit reduced. A participant’s current level accrual rate is determined by 

dividing their benefit amount by their years of service. 

The reduction would take effect May 1, 2019 and would remain in effect indefinitely. 

The following summary shows the results of the tests required to certify that the proposed suspensions meet 

the requirements set forth by the law. 

1. Key Information

a. Projected year of insolvency without consideration of proposed suspension Year Beginning

May 1, 2035

b. End of extended period April 30, 2049

c. Projected funded percentage (under IRC §432(j)(2)) at end of extended 

period (See Exhibit J)

107.01%

d. Number of Plan active participants (based on May 1, 2017 actuarial 

valuation)

655

e. Is the proposed suspension in combination with a partition? No

2. Limitation on Aggregate Size of Suspension

a. We certify that the proposed suspension is reasonably estimated to enable the Plan to avoid 

insolvency based on the following analysis. 

i. The solvency ratio is projected on a deterministic basis to be at least 1.0 for each plan year 

throughout the extended period (see Exhibit D). 

ii. The Plan’s projected funded percentage at the end of the extended period exceeds 100% 

(see Exhibit J). 

b. We certify that the proposed suspension does not materially exceed the level that is necessary to 

avoid insolvency, as required under regulation §1.432(e)(9)-1(d)(5)(iii)(A) based on the following 

analysis 

i. The Plan would fail one or more of the tests listed in 2a if the dollar amount of the 

proposed benefit suspension for each participant and beneficiary were reduced (but not 

below zero) by the greater of 5% of the individual’s monthly amount proposed to be 

suspended and 2% of the individual’s monthly amount without regard to the proposed 

suspension. Exhibit E demonstrates that if the suspension is reduced by the 

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aforementioned amounts, it will no longer be sufficient to enable the Plan to satisfy the 

requirement to avoid insolvency under §1.432(e)(9)-1(d)(5)(i)(A). The projection in Exhibit 

E does not satisfy the requirement in §1.432(e)(9)-1(d)(5)(ii)(3) because the Plan’s 

funded percentage at the end of the extended period does not exceed 100%* and in at 

least one of the last five years of the extended period the Plan’s available resources are 

projected to decrease. Therefore, as specified in §1.432(e)(9)-1(d)(5)(iii)(A) “an 

alternative, similar but smaller suspension of benefits would not be sufficient to enable 

the Plan to satisfy the requirement to avoid insolvency under paragraph (d)(5)(i)(A).” 

* It can be demonstrated that the Plan’s funded percentage at April 30, 2049 (the end of 

the extended period) with a smaller suspension does not exceed 100% as follows: The 

Plan’s assets at April 30, 2049 with the smaller suspension are projected to be 

$26,948,441 as shown in Exhibit E. The Plan’s liabilities at April 30, 2049 with the 

proposed suspension are projected to be $34,839,577 as shown in Exhibit J. Because 

the ratio of $26,948,441 to $34,839,577 is less than 100%, and a smaller suspension will 

provide larger liabilities at April 30, 2049, the Plan’s funded percentage at April 30, 2049

with a smaller suspension will also be less than 100%. 

ii. The PBGC did not issue an order partitioning the Plan. 

The proposed suspension satisfies the limitations on aggregate size of suspension set forth in 

Regulation §1.432(e)(9)-1(d)(5). 

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

The table below shows the actual change in the market value of assets from May 1, 2017 through December 31, 

2017 and projected market value of assets from January 1, 2018 through April 30, 2018. The calculations are 

based on the following information: 

 The market value of assets as of May 1, 2017 is based on April 30, 2017 financial statements prepared 

by the auditor. 

 Employer contributions, benefit payments and administrative expenses through December 31, 2017 and 

value of non-invested assets as of as of December 31, 2017 are based on unaudited financial statements 

prepared by the Plan Administrator. 

 Estimated employer contributions from January 1, 2018 through April 30, 2018 are based on 4/12ths of 

the assumed contribution of $3.85 million (equal to the product of the assumed 1.1 million hours and an 

average contribution rate of $3.50/hour) for the 2017/2018 plan year. 

 Estimated benefit payments from January 1, 2018 through April 30, 2018 are based on 4/12ths of the 

expected benefit payments projected for the 2017/2018 plan year by the valuation system based on the 

data and assumptions described in Exhibit K. 

 The administrative expenses from January 1, 2018 through April 30, 2018 are based on the full year’s 

administrative expense assumption reported in the May 1, 2017 actuarial valuation, less the actual 

amount for May 1, 2017 through December 31, 2017 reported in the Plan Administrator’s unaudited 

December 31, 2017 financial statements. 

 Investment returns through December 31, 2017 were based the value on non-invested assets reported in 

the Plan Administrator’s unaudited December 31, 2017 financial statements and the value of invested 

assets as of December 31, 2017 provided by the investment consultant. 

 Investment returns from January 1, 2018 through April 30, 2018 are based on an assumed return of 

2.21% (4/12ths of the expected return) during that period. 

From May 1, 2017 

through 

December 31, 2017

From January 1, 2018 

through 

April 30, 2018

Total for 

2017/2018 

Plan Year

1. Market value of assets (beginning of period) $41,435,167 $42,593,586 $41,435,167 

2. Employer contributions 2,595,209 1,283,333 3,878,542

3. Withdrawal liability payments 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries n/a 1,786,883 n/a

b. Terminated vested participants n/a 29,725 n/a

c. Current actives n/a 64,991 n/a

d. New entrants n/a 0 n/a

e. Total 3,640,992 1,881,599 5,522,591

5. Administrative expenses 286,862 213,138 500,000

6. Investment returns 2,491,064 932,352 3,423,416

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,593,586 $42,714,534 $42,714,534 

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C. Deterministic Projection of Current Plan without Proposed Suspension 

The following table shows the projection of the plan-year-by-plan-year market value of assets projected to the year of insolvency (plan year beginning May 1, 

2035). The plan years beginning May 1, 2017 through May 1, 2035 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $43,137,893 $43,100,047 $42,813,803 $42,233,710 $41,125,411 $39,580,746 

2. Employer contributions 3,878,542 3,850,000 3,500,000 3,500,000 3,500,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 5,148,142 5,033,921 4,894,830 4,766,438 4,630,515 4,494,683 

b. Terminated vested participants N/A 185,452 300,977 401,248 532,566 651,974 863,048 1,000,458 

c. Current actives N/A 359,212 573,969 820,286 1,088,352 1,390,577 1,660,635 1,905,600 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 6,023,088 6,255,455 6,515,748 6,808,989 7,154,198 7,400,741 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 2,759,579 2,772,242 2,761,951 2,734,250 2,680,257 2,595,191 2,484,368 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $43,137,893 $43,100,047 $42,813,803 $42,233,710 $41,125,411 $39,580,746 $37,672,502 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,939,113 $49,123,135 $49,069,258 $48,749,458 $47,934,400 $46,734,944 $45,073,243 

9. Solvency ratio (8) / (4e) 8.73 8.44 8.16 7.84 7.48 7.04 6.53 6.09

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $37,672,502 $35,403,950 $32,767,871 $30,015,704 $26,873,755 $23,388,132 $19,593,791 $15,444,875 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 4,347,481 4,192,710 4,035,188 3,872,827 3,706,071 3,535,406 3,361,359 3,184,514 

b. Terminated vested participants 1,129,931 1,287,717 1,408,469 1,547,526 1,648,735 1,717,509 1,824,676 1,889,835 

c. Current actives 2,143,203 2,343,758 2,540,209 2,736,383 2,902,342 3,046,237 3,177,186 3,277,669 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 7,620,615 7,824,185 7,983,866 8,156,736 8,257,148 8,299,152 8,363,221 8,352,018 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 2,350,271 2,192,778 2,242,964 2,032,777 1,796,375 1,536,658 1,253,289 946,412 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $35,403,950 $32,767,871 $30,015,704 $26,873,755 $23,388,132 $19,593,791 $15,444,875 $10,993,005 

8. Available resources

(1) + (2) + (3) - (5) + (6) $43,024,565 $40,592,056 $37,999,570 $35,030,491 $31,645,280 $27,892,943 $23,808,096 $19,345,023 

9. Solvency ratio (8) / (4e) 5.65 5.19 4.76 4.29 3.83 3.36 2.85 2.32

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C. Deterministic Projection of Current Plan without Proposed Suspension (continued) 

Plan year beginning May 1 2033 2034 2035

1. Market value of assets (beginning of year) $10,993,005 $6,234,644 $1,183,546 

2. Employer contributions 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 3,005,525 2,825,126 2,644,124 

b. Terminated vested participants 1,953,004 2,003,352 2,016,406 

c. Current actives 3,363,921 3,429,099 3,477,617 

d. New entrants 0 0 0 

e. Total 8,322,450 8,257,577 8,138,147 

5. Administrative expenses 378,689 386,263 393,988 

6. Investment returns 617,778 267,742 n/a

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $6,234,644 $1,183,546 Insolvent

8. Available resources

(1) + (2) + (3) - (5) + (6) $14,557,094 $9,441,123 $4,012,578 

9. Solvency ratio (8) / (4e) 1.75 1.14 0.49

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D. Deterministic Projection of Proposed Suspension 

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period. The plan years beginning May 1, 2017 

through May 1, 2048 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $43,137,893 $43,958,046 $44,648,278 $45,182,745 $45,345,515 $45,266,520 

2. Employer contributions 3,878,542 3,850,000 3,500,000 3,500,000 3,500,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 4,493,211 4,390,976 4,274,856 4,160,132 4,038,782 3,918,468 

b. Terminated vested participants N/A 185,452 251,973 332,936 431,214 527,502 683,179 786,331 

c. Current actives N/A 359,212 447,046 641,125 848,331 1,080,116 1,284,281 1,469,629 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 5,192,230 5,365,037 5,554,401 5,767,750 6,006,242 6,174,428 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 2,759,579 2,799,383 2,848,009 2,887,463 2,910,087 2,912,905 2,901,963 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $43,137,893 $43,958,046 $44,648,278 $45,182,745 $45,345,515 $45,266,520 $45,002,184 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,939,113 $49,150,276 $50,013,315 $50,737,146 $51,113,265 $51,272,762 $51,176,612 

9. Solvency ratio (8) / (4e) 8.73 8.44 9.47 9.32 9.13 8.86 8.54 8.29

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $45,002,184 $44,567,566 $43,968,560 $43,546,604 $42,984,181 $42,312,059 $41,567,254 $40,733,468 

2. 2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. 3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. 4. Benefit payments

a. Current retirees and beneficiaries 3,787,765 3,650,503 3,511,520 3,368,738 3,222,597 3,073,562 2,922,120 2,768,782 

b. Terminated vested participants 880,089 986,487 1,067,105 1,154,337 1,225,522 1,273,735 1,342,511 1,387,636 

c. Current actives 1,648,136 1,803,778 1,956,527 2,110,763 2,244,552 2,360,518 2,468,725 2,554,730 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,315,990 6,440,768 6,535,152 6,633,838 6,692,671 6,707,815 6,733,356 6,711,148 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 2,879,580 2,846,434 3,124,461 3,089,405 3,045,399 2,994,857 2,938,554 2,877,396 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $44,567,566 $43,968,560 $43,546,604 $42,984,181 $42,312,059 $41,567,254 $40,733,468 $39,853,452 

8. Available resources

(1) + (2) + (3) - (5) + (6) $50,883,556 $50,409,328 $50,081,756 $49,618,019 $49,004,730 $48,275,069 $47,466,824 $46,564,600 

9. Solvency ratio (8) / (4e) 8.06 7.83 7.66 7.48 7.32 7.20 7.05 6.94

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D. Deterministic Projection of Proposed Suspension (continued) 

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $39,853,452 $38,944,391 $38,025,594 $37,130,487 $36,266,238 $35,471,539 $34,757,454 $34,146,224 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,614,109 2,458,706 2,303,218 2,148,341 1,994,793 1,843,351 1,694,840 1,550,073 

b. Terminated vested participants 1,424,916 1,456,670 1,468,299 1,490,647 1,494,950 1,505,093 1,501,944 1,489,150 

c. Current actives 2,629,887 2,690,445 2,738,113 2,769,071 2,781,456 2,780,024 2,773,084 2,753,971 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,668,912 6,605,821 6,509,630 6,408,059 6,271,199 6,128,468 5,969,868 5,793,194 

5. Administrative expenses 378,689 386,263 393,988 401,868 409,905 418,103 426,465 434,994 

6. Investment returns 2,813,540 2,748,287 2,683,511 2,620,678 2,561,405 2,507,486 2,460,103 2,420,983 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $38,944,391 $38,025,594 $37,130,487 $36,266,238 $35,471,539 $34,757,454 $34,146,224 $33,664,019 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,613,303 $44,631,415 $43,640,117 $42,674,297 $41,742,738 $40,885,922 $40,116,092 $39,457,213 

9. Solvency ratio (8) / (4e) 6.84 6.76 6.70 6.66 6.66 6.67 6.72 6.81

Plan year beginning May 1 2041 2042 2043 2044 2045 2046 2047 2048

1. Market value of assets (beginning of year) $33,664,019 $33,351,442 $33,212,533 $33,264,362 $33,540,571 $34,055,709 $34,836,046 $35,904,852 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 1,409,838 1,274,846 1,145,754 1,023,166 907,609 799,547 699,357 607,261 

b. Terminated vested participants 1,459,924 1,440,096 1,416,791 1,380,869 1,340,656 1,292,333 1,243,672 1,190,717 

c. Current actives 2,716,620 2,672,668 2,622,045 2,558,512 2,494,037 2,421,701 2,338,121 2,250,891 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 5,586,382 5,387,610 5,184,590 4,962,547 4,742,302 4,513,581 4,281,150 4,048,869 

5. Administrative expenses 443,694 452,568 461,619 470,851 480,268 489,873 499,670 509,663 

6. Investment returns 2,392,499 2,376,269 2,373,038 2,384,607 2,412,708 2,458,791 2,524,626 2,611,796 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $33,351,442 $33,212,533 $33,264,362 $33,540,571 $34,055,709 $34,836,046 $35,904,852 $37,283,116 

8. Available resources

(1) + (2) + (3) - (5) + (6) $38,937,824 $38,600,143 $38,448,952 $38,503,118 $38,798,011 $39,349,627 $40,186,002 $41,331,985 

9. Solvency ratio (8) / (4e) 6.97 7.16 7.42 7.76 8.18 8.72 9.39 10.21

SMW0094
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 9 

Sheet Metal Workers Local Pension Plan 

E. Deterministic Projection Demonstrating Proposed Suspension Does Not Materially Exceed the Level that is Necessary 

to Avoid Insolvency 

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period. The plan years beginning May 1, 2017 

through May 1, 2048 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $43,137,893 $43,885,987 $44,494,572 $44,936,553 $44,994,669 $44,796,884 

2. Employer contributions 3,878,542 3,850,000 3,500,000 3,500,000 3,500,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 4,549,976 4,446,830 4,329,217 4,213,435 4,090,946 3,969,408 

b. Terminated vested participants N/A 185,452 255,310 337,526 437,723 535,454 694,333 799,446 

c. Current actives N/A 359,212 456,724 655,112 867,138 1,104,374 1,313,436 1,503,181 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 5,262,010 5,439,468 5,634,078 5,853,263 6,098,715 6,272,035 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 2,759,579 2,797,104 2,840,793 2,874,654 2,890,946 2,886,588 2,867,590 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $43,137,893 $43,885,987 $44,494,572 $44,936,553 $44,994,669 $44,796,884 $44,400,568 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,939,113 $49,147,997 $49,934,040 $50,570,631 $50,847,932 $50,895,599 $50,672,603 

9. Solvency ratio (8) / (4e) 8.73 8.44 9.34 9.18 8.98 8.69 8.35 8.08

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $44,400,568 $43,819,907 $43,060,094 $42,455,273 $41,691,966 $40,801,480 $39,820,570 $38,731,125 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 3,837,391 3,698,721 3,558,234 3,413,849 3,266,006 3,115,169 2,961,827 2,806,500 

b. Terminated vested participants 895,393 1,004,681 1,087,518 1,177,592 1,250,521 1,299,962 1,370,823 1,417,218 

c. Current actives 1,685,945 1,845,012 2,000,983 2,158,311 2,294,580 2,412,647 2,522,678 2,609,977 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,418,729 6,548,414 6,646,735 6,749,752 6,811,107 6,827,778 6,855,328 6,833,695 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 2,836,276 2,793,273 3,053,179 3,004,435 2,945,471 2,878,715 2,804,867 2,724,770 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $43,819,907 $43,060,094 $42,455,273 $41,691,966 $40,801,480 $39,820,570 $38,731,125 $37,575,936 

8. Available resources

(1) + (2) + (3) - (5) + (6) $50,238,636 $49,608,508 $49,102,008 $48,441,718 $47,612,587 $46,648,348 $45,586,453 $44,409,631 

9. Solvency ratio (8) / (4e) 7.83 7.58 7.39 7.18 6.99 6.83 6.65 6.50

SMW0095
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 10

Sheet Metal Workers Local Pension Plan 

E. Deterministic Projection Demonstrating Proposed Suspension Does Not Materially Exceed the Level that is Necessary 

to Avoid Insolvency (continued) 

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $37,575,936 $36,370,971 $35,134,931 $33,900,774 $32,674,448 $31,493,687 $30,368,148 $29,318,156 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,649,754 2,492,207 2,334,517 2,177,396 2,021,584 1,867,874 1,717,115 1,570,148 

b. Terminated vested participants 1,455,877 1,488,686 1,500,534 1,523,247 1,527,565 1,537,641 1,534,496 1,521,356 

c. Current actives 2,686,183 2,747,291 2,795,332 2,826,178 2,838,102 2,835,940 2,828,215 2,808,082 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,791,814 6,728,184 6,630,383 6,526,821 6,387,251 6,241,455 6,079,826 5,899,586 

5. Administrative expenses 378,689 386,263 393,988 401,868 409,905 418,103 426,465 434,994 

6. Investment returns 2,640,538 2,553,407 2,465,214 2,377,363 2,291,395 2,209,019 2,131,299 2,059,839 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $36,370,971 $35,134,931 $33,900,774 $32,674,448 $31,493,687 $30,368,148 $29,318,156 $28,368,415 

8. Available resources

(1) + (2) + (3) - (5) + (6) $43,162,785 $41,863,115 $40,531,157 $39,201,269 $37,880,938 $36,609,603 $35,397,982 $34,268,001 

9. Solvency ratio (8) / (4e) 6.36 6.22 6.11 6.01 5.93 5.87 5.82 5.81

Plan year beginning May 1 2041 2042 2043 2044 2045 2046 2047 2048

1. Market value of assets (beginning of year) $28,368,415 $27,558,017 $26,888,604 $26,374,981 $26,048,433 $25,920,758 $26,015,209 $26,351,922 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 1,427,778 1,290,737 1,159,700 1,035,287 918,037 808,427 706,837 613,493 

b. Terminated vested participants 1,491,405 1,470,997 1,447,002 1,410,141 1,368,945 1,319,582 1,269,830 1,215,735 

c. Current actives 2,769,430 2,724,097 2,671,951 2,606,803 2,540,615 2,466,530 2,381,052 2,291,845 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 5,688,613 5,485,831 5,278,653 5,052,231 4,827,597 4,594,539 4,357,719 4,121,073 

5. Administrative expenses 443,694 452,568 461,619 470,851 480,268 489,873 499,670 509,663 

6. Investment returns 1,996,909 1,943,986 1,901,649 1,871,534 1,855,190 1,853,863 1,869,102 1,902,255 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $27,558,017 $26,888,604 $26,374,981 $26,048,433 $25,920,758 $26,015,209 $26,351,922 $26,948,441 

8. Available resources

(1) + (2) + (3) - (5) + (6) $33,246,630 $32,374,435 $31,653,634 $31,100,664 $30,748,355 $30,609,748 $30,709,641 $31,069,514 

9. Solvency ratio (8) / (4e) 5.84 5.90 6.00 6.16 6.37 6.66 7.05 7.54

SMW0096
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 11

Sheet Metal Workers Local Pension Plan 

F. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 1.00% 

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period as required under regulation 

1.432(e)(9)-1(d)(5)(vi)(B)(1) and revenue procedure 2017-43 6.05(1). The plan years beginning May 1, 2017 through May 1, 2048 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $42,722,139 $43,097,119 $43,309,734 $43,333,692 $42,953,727 $42,300,946 

2. Employer contributions 3,878,542 3,850,000 3,500,000 3,500,000 3,500,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 4,493,211 4,390,976 4,274,856 4,160,132 4,038,782 3,918,468 

b. Terminated vested participants N/A 185,452 251,973 332,936 431,214 527,502 683,179 786,331 

c. Current actives N/A 359,212 447,046 641,125 848,331 1,080,116 1,284,281 1,469,629 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 5,192,230 5,365,037 5,554,401 5,767,750 6,006,242 6,174,428 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 2,343,825 2,354,210 2,370,392 2,376,954 2,367,352 2,339,119 2,297,452 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $42,722,139 $43,097,119 $43,309,734 $43,333,692 $42,953,727 $42,300,946 $41,432,099 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,523,359 $48,289,349 $48,674,771 $48,888,093 $48,721,477 $48,307,188 $47,606,527 

9. Solvency ratio (8) / (4e) 8.73 8.36 9.30 9.07 8.80 8.45 8.04 7.71

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $41,432,099 $40,362,236 $39,097,141 $37,940,924 $36,601,977 $35,109,575 $33,498,821 $31,751,271 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 3,787,765 3,650,503 3,511,520 3,368,738 3,222,597 3,073,562 2,922,120 2,768,782 

b. Terminated vested participants 880,089 986,487 1,067,105 1,154,337 1,225,522 1,273,735 1,342,511 1,387,636 

c. Current actives 1,648,136 1,803,778 1,956,527 2,110,763 2,244,552 2,360,518 2,468,725 2,554,730 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,315,990 6,440,768 6,535,152 6,633,838 6,692,671 6,707,815 6,733,356 6,711,148 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 2,244,335 2,180,345 2,390,200 2,312,881 2,225,119 2,128,908 2,024,790 1,913,417 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $40,362,236 $39,097,141 $37,940,924 $36,601,977 $35,109,575 $33,498,821 $31,751,271 $29,907,276 

8. Available resources

(1) + (2) + (3) - (5) + (6) $46,678,226 $45,537,909 $44,476,076 $43,235,815 $41,802,246 $40,206,636 $38,484,627 $36,618,424 

9. Solvency ratio (8) / (4e) 7.39 7.07 6.81 6.52 6.25 5.99 5.72 5.46

SMW0097
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 12

Sheet Metal Workers Local Pension Plan 

F. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 1.00% (continued) 

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $29,907,276 $27,981,173 $25,989,066 $23,960,717 $21,899,196 $19,838,619 $17,784,937 $15,754,790 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,614,109 2,458,706 2,303,218 2,148,341 1,994,793 1,843,351 1,694,840 1,550,073 

b. Terminated vested participants 1,424,916 1,456,670 1,468,299 1,490,647 1,494,950 1,505,093 1,501,944 1,489,150 

c. Current actives 2,629,887 2,690,445 2,738,113 2,769,071 2,781,456 2,780,024 2,773,084 2,753,971 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,668,912 6,605,821 6,509,630 6,408,059 6,271,199 6,128,468 5,969,868 5,793,194 

5. Administrative expenses 378,689 386,263 393,988 401,868 409,905 418,103 426,465 434,994 

6. Investment returns 1,796,498 1,674,977 1,550,269 1,423,406 1,295,527 1,167,889 1,041,186 916,554 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $27,981,173 $25,989,066 $23,960,717 $21,899,196 $19,838,619 $17,784,937 $15,754,790 $13,768,156 

8. Available resources

(1) + (2) + (3) - (5) + (6) $34,650,085 $32,594,887 $30,470,347 $28,307,255 $26,109,818 $23,913,405 $21,724,658 $19,561,350 

9. Solvency ratio (8) / (4e) 5.20 4.93 4.68 4.42 4.16 3.90 3.64 3.38

Plan year beginning May 1 2041 2042 2043 2044 2045 2046 2047 2048

1. Market value of assets (beginning of year) $13,768,156 $11,858,730 $10,022,982 $8,269,826 $6,623,983 $5,090,276 $3,684,431 $2,418,259 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 1,409,838 1,274,846 1,145,754 1,023,166 907,609 799,547 699,357 607,261 

b. Terminated vested participants 1,459,924 1,440,096 1,416,791 1,380,869 1,340,656 1,292,333 1,243,672 1,190,717 

c. Current actives 2,716,620 2,672,668 2,622,045 2,558,512 2,494,037 2,421,701 2,338,121 2,250,891 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 5,586,382 5,387,610 5,184,590 4,962,547 4,742,302 4,513,581 4,281,150 4,048,869 

5. Administrative expenses 443,694 452,568 461,619 470,851 480,268 489,873 499,670 509,663 

6. Investment returns 795,650 679,430 568,053 462,555 363,863 272,609 189,648 115,616 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $11,858,730 $10,022,982 $8,269,826 $6,623,983 $5,090,276 $3,684,431 $2,418,259 $1,300,343 

8. Available resources

(1) + (2) + (3) - (5) + (6) $17,445,112 $15,410,592 $13,454,416 $11,586,530 $9,832,578 $8,198,012 $6,699,409 $5,349,212 

9. Solvency ratio (8) / (4e) 3.12 2.86 2.60 2.33 2.07 1.82 1.56 1.32

SMW0098
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 13 

Sheet Metal Workers Local Pension Plan 

G. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 2.00% 

The table shows the projection of the plan-year-by-plan-year market value of assets until the year of insolvency (plan year beginning May 1, 2040) as required 

under regulation 1.432(e)(9)-1(d)(5)(vi)(B)(2) and revenue procedure 2017-43 6.05(2). The plan years beginning May 1, 2017 through May 1, 2040 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $42,306,438 $42,244,607 $41,997,265 $41,538,749 $40,655,604 $39,481,288 

2. Employer contributions 3,878,542 3,850,000 3,500,000 3,500,000 3,500,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 4,493,211 4,390,976 4,274,856 4,160,132 4,038,782 3,918,468 

b. Terminated vested participants N/A 185,452 251,973 332,936 431,214 527,502 683,179 786,331 

c. Current actives N/A 359,212 447,046 641,125 848,331 1,080,116 1,284,281 1,469,629 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 5,192,230 5,365,037 5,554,401 5,767,750 6,006,242 6,174,428 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 1,928,124 1,917,399 1,910,435 1,894,480 1,864,172 1,817,584 1,759,095 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $42,306,438 $42,244,607 $41,997,265 $41,538,749 $40,655,604 $39,481,288 $38,074,084 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,107,658 $47,436,837 $47,362,302 $47,093,150 $46,423,354 $45,487,530 $44,248,512 

9. Solvency ratio (8) / (4e) 8.73 8.29 9.14 8.83 8.48 8.05 7.57 7.17

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $38,074,084 $36,450,295 $34,616,909 $32,845,065 $30,869,322 $28,719,445 $26,430,744 $23,984,904 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 3,787,765 3,650,503 3,511,520 3,368,738 3,222,597 3,073,562 2,922,120 2,768,782 

b. Terminated vested participants 880,089 986,487 1,067,105 1,154,337 1,225,522 1,273,735 1,342,511 1,387,636 

c. Current actives 1,648,136 1,803,778 1,956,527 2,110,763 2,244,552 2,360,518 2,468,725 2,554,730 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,315,990 6,440,768 6,535,152 6,633,838 6,692,671 6,707,815 6,733,356 6,711,148 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 1,690,409 1,612,054 1,774,573 1,676,085 1,567,644 1,450,961 1,326,500 1,194,823 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $36,450,295 $34,616,909 $32,845,065 $30,869,322 $28,719,445 $26,430,744 $23,984,904 $21,422,315 

8. Available resources

(1) + (2) + (3) - (5) + (6) $42,766,285 $41,057,677 $39,380,217 $37,503,160 $35,412,116 $33,138,559 $30,718,260 $28,133,463 

9. Solvency ratio (8) / (4e) 6.77 6.37 6.03 5.65 5.29 4.94 4.56 4.19

SMW0099
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 14

Sheet Metal Workers Local Pension Plan 

G. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 2.00% (continued) 

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $21,422,315 $18,757,084 $16,004,927 $13,194,977 $10,329,477 $7,441,495 $4,535,680 $1,627,192 

2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,614,109 2,458,706 2,303,218 2,148,341 1,994,793 1,843,351 1,694,840 1,550,073 

b. Terminated vested participants 1,424,916 1,456,670 1,468,299 1,490,647 1,494,950 1,505,093 1,501,944 1,489,150 

c. Current actives 2,629,887 2,690,445 2,738,113 2,769,071 2,781,456 2,780,024 2,773,084 2,753,971 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,668,912 6,605,821 6,509,630 6,408,059 6,271,199 6,128,468 5,969,868 5,793,194 

5. Administrative expenses 378,689 386,263 393,988 401,868 409,905 418,103 426,465 434,994 

6. Investment returns 1,057,370 914,927 768,668 619,427 468,122 315,756 162,845 10,267 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $18,757,084 $16,004,927 $13,194,977 $10,329,477 $7,441,495 $4,535,680 $1,627,192 Insolvent

8. Available resources

(1) + (2) + (3) - (5) + (6) $25,425,996 $22,610,748 $19,704,607 $16,737,536 $13,712,694 $10,664,148 $7,597,060 $4,527,465 

9. Solvency ratio (8) / (4e) 3.81 3.42 3.03 2.61 2.19 1.74 1.27 0.78

SMW0100
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 15

Sheet Metal Workers Local Pension Plan 

H. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption Continues Under the 

Same Trend as the Plan Experienced Over the Last 10 Years (0.1% per year) 

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period as required under regulation 

1.432(e)(9)-1(d)(5)(vi)(C)(1) and revenue procedure 2017-43 6.05(3). The plan years beginning May 1, 2017 through May 1, 2048 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $43,171,370 $44,392,633 $45,514,621 $46,513,530 $47,356,302 $48,006,486 

2. Employer contributions 3,878,542 3,882,421 3,886,303 3,890,189 3,894,079 3,897,973 3,901,871 3,905,773 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 4,493,211 4,390,976 4,274,856 4,160,132 4,038,782 3,918,468 

b. Terminated vested participants N/A 185,452 251,973 332,936 431,214 527,502 683,179 786,331 

c. Current actives N/A 359,212 447,046 641,125 848,331 1,080,116 1,284,281 1,469,629 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 5,192,230 5,365,037 5,554,401 5,767,750 6,006,242 6,174,428 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 2,760,635 2,814,190 2,889,576 2,957,826 3,017,116 3,065,213 3,102,816 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $43,171,370 $44,392,633 $45,514,621 $46,513,530 $47,356,302 $48,006,486 $48,523,776 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,972,590 $49,584,863 $50,879,658 $52,067,931 $53,124,052 $54,012,728 $54,698,204 

9. Solvency ratio (8) / (4e) 8.73 8.44 9.55 9.48 9.37 9.21 8.99 8.86

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $48,523,776 $48,926,716 $49,224,920 $49,805,909 $50,324,709 $50,817,883 $51,328,674 $51,847,469 

2. 2. Employer contributions 3,909,679 3,913,589 3,917,503 3,921,421 3,925,342 3,929,267 3,933,196 3,937,129 

3. 3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. 4. Benefit payments

a. Current retirees and beneficiaries 3,787,765 3,650,503 3,511,520 3,368,738 3,222,597 3,073,562 2,922,120 2,768,782 

b. Terminated vested participants 880,089 986,487 1,067,105 1,154,337 1,225,522 1,273,735 1,342,511 1,387,636 

c. Current actives 1,648,136 1,803,778 1,956,527 2,110,763 2,244,552 2,360,518 2,468,725 2,554,730 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,315,990 6,440,768 6,535,152 6,633,838 6,692,671 6,707,815 6,733,356 6,711,148 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 3,132,459 3,155,055 3,534,903 3,574,207 3,610,353 3,646,186 3,682,939 3,722,015 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $48,926,716 $49,224,920 $49,805,909 $50,324,709 $50,817,883 $51,328,674 $51,847,469 $52,424,201 

8. Available resources

(1) + (2) + (3) - (5) + (6) $55,242,706 $55,665,688 $56,341,061 $56,958,547 $57,510,554 $58,036,489 $58,580,825 $59,135,349 

9. Solvency ratio (8) / (4e) 8.75 8.64 8.62 8.59 8.59 8.65 8.70 8.81

SMW0101
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 16

Sheet Metal Workers Local Pension Plan 

H. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption Continued Under the 

Same Trend as the Plan Experienced Over the Last 10 Years (0.1% per year) (continued) 

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $52,424,201 $53,083,767 $53,853,759 $54,776,499 $55,868,710 $57,179,345 $58,730,489 $60,556,220 

2. Employer contributions 3,941,066 3,945,007 3,948,952 3,952,901 3,956,854 3,960,811 3,964,772 3,968,737 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,614,109 2,458,706 2,303,218 2,148,341 1,994,793 1,843,351 1,694,840 1,550,073 

b. Terminated vested participants 1,424,916 1,456,670 1,468,299 1,490,647 1,494,950 1,505,093 1,501,944 1,489,150 

c. Current actives 2,629,887 2,690,445 2,738,113 2,769,071 2,781,456 2,780,024 2,773,084 2,753,971 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,668,912 6,605,821 6,509,630 6,408,059 6,271,199 6,128,468 5,969,868 5,793,194 

5. Administrative expenses 378,689 386,263 393,988 401,868 409,905 418,103 426,465 434,994 

6. Investment returns 3,766,101 3,817,069 3,877,406 3,949,237 4,034,885 4,136,904 4,257,292 4,398,650 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $53,083,767 $53,853,759 $54,776,499 $55,868,710 $57,179,345 $58,730,489 $60,556,220 $62,695,419 

8. Available resources

(1) + (2) + (3) - (5) + (6) $59,752,679 $60,459,580 $61,286,129 $62,276,769 $63,450,544 $64,858,957 $66,526,088 $68,488,613 

9. Solvency ratio (8) / (4e) 8.96 9.15 9.41 9.72 10.12 10.58 11.14 11.82

Plan year beginning May 1 2041 2042 2043 2044 2045 2046 2047 2048

1. Market value of assets (beginning of year) $62,695,419 $65,202,343 $68,095,695 $71,408,294 $75,190,695 $79,475,613 $84,308,827 $89,734,561 

2. 2. Employer contributions 3,972,706 3,976,679 3,980,656 3,984,637 3,988,622 3,992,611 3,996,604 4,000,601 

3. 3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. 4. Benefit payments

a. Current retirees and beneficiaries 1,409,838 1,274,846 1,145,754 1,023,166 907,609 799,547 699,357 607,261 

b. Terminated vested participants 1,459,924 1,440,096 1,416,791 1,380,869 1,340,656 1,292,333 1,243,672 1,190,717 

c. Current actives 2,716,620 2,672,668 2,622,045 2,558,512 2,494,037 2,421,701 2,338,121 2,250,891 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 5,586,382 5,387,610 5,184,590 4,962,547 4,742,302 4,513,581 4,281,150 4,048,869 

5. Administrative expenses 443,694 452,568 461,619 470,851 480,268 489,873 499,670 509,663 

6. Investment returns 4,564,294 4,756,851 4,978,152 5,231,162 5,518,866 5,844,057 6,209,950 6,619,677 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $65,202,343 $68,095,695 $71,408,294 $75,190,695 $79,475,613 $84,308,827 $89,734,561 $95,796,307 

8. Available resources

(1) + (2) + (3) - (5) + (6) $70,788,725 $73,483,305 $76,592,884 $80,153,242 $84,217,915 $88,822,408 $94,015,711 $99,845,176 

9. Solvency ratio (8) / (4e) 12.67 13.64 14.77 16.15 17.76 19.68 21.96 24.66

SMW0102
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 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 17

Sheet Metal Workers Local Pension Plan 

I. Deterministic Projection of the Proposed Suspension Assuming the Industry Activity Assumption Continues Under 

the Same Trend as the Plan Experienced Over the Last 10 Years, Reduced by 1.0% (-0.9% per year) 

The table shows projection of the plan-year-by-plan-year market value of assets over the extended projection period as required under regulation 1.432(e)(9)-

1(d)(5)(vi)(C)(2) and revenue procedure 2017-43 6.05(4). The plan years beginning May 1, 2017 through May 1, 2048 are shown. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $43,131,321 $44,270,147 $45,264,814 $46,088,851 $46,706,355 $47,077,838 

2. Employer contributions 3,878,542 3,843,635 3,809,042 3,774,761 3,740,788 3,707,121 3,673,757 3,640,693 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,256,556 4,493,211 4,390,976 4,274,856 4,160,132 4,038,782 3,918,468 

b. Terminated vested participants N/A 185,452 251,973 332,936 431,214 527,502 683,179 786,331 

c. Current actives N/A 359,212 447,046 641,125 848,331 1,080,116 1,284,281 1,469,629 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,522,591 5,801,220 5,192,230 5,365,037 5,554,401 5,767,750 6,006,242 6,174,428 

5. Administrative expenses 500,000 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 3,423,416 2,759,372 2,809,014 2,877,683 2,936,245 2,982,700 3,014,626 3,032,518 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,714,534 $43,131,321 $44,270,147 $45,264,814 $46,088,851 $46,706,355 $47,077,838 $47,259,750 

8. Available resources

(1) + (2) + (3) - (5) + (6) $48,237,125 $48,932,541 $49,462,377 $50,629,851 $51,643,252 $52,474,105 $53,084,080 $53,434,178 

9. Solvency ratio (8) / (4e) 8.73 8.43 9.53 9.44 9.30 9.10 8.84 8.65

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $47,259,750 $47,267,177 $47,106,040 $47,142,444 $47,039,256 $46,827,605 $46,544,893 $46,175,234 

2. Employer contributions 3,607,927 3,575,456 3,543,277 3,511,388 3,479,786 3,448,468 3,417,432 3,386,675 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 3,787,765 3,650,503 3,511,520 3,368,738 3,222,597 3,073,562 2,922,120 2,768,782 

b. Terminated vested participants 880,089 986,487 1,067,105 1,154,337 1,225,522 1,273,735 1,342,511 1,387,636 

c. Current actives 1,648,136 1,803,778 1,956,527 2,110,763 2,244,552 2,360,518 2,468,725 2,554,730 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,315,990 6,440,768 6,535,152 6,633,838 6,692,671 6,707,815 6,733,356 6,711,148 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 3,038,698 3,033,847 3,364,544 3,362,252 3,351,084 3,333,482 3,310,249 3,282,322 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $47,267,177 $47,106,040 $47,142,444 $47,039,256 $46,827,605 $46,544,893 $46,175,234 $45,761,819 

8. Available resources

(1) + (2) + (3) - (5) + (6) $53,583,167 $53,546,808 $53,677,596 $53,673,094 $53,520,276 $53,252,708 $52,908,590 $52,472,967 

9. Solvency ratio (8) / (4e) 8.48 8.31 8.21 8.09 8.00 7.94 7.86 7.82

SMW0103
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 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 18

Sheet Metal Workers Local Pension Plan 

I. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption Continued Under the 

Same Trend as the Plan Experienced Over the Last 10 Years, Reduced by 1.0% (-0.9% per year) (continued) 

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $45,761,819 $45,322,303 $44,876,497 $44,458,363 $44,075,644 $43,767,645 $43,546,087 $43,433,914 

2. Employer contributions 3,356,195 3,325,989 3,296,055 3,266,391 3,236,993 3,207,860 3,178,989 3,150,378 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,614,109 2,458,706 2,303,218 2,148,341 1,994,793 1,843,351 1,694,840 1,550,073 

b. Terminated vested participants 1,424,916 1,456,670 1,468,299 1,490,647 1,494,950 1,505,093 1,501,944 1,489,150 

c. Current actives 2,629,887 2,690,445 2,738,113 2,769,071 2,781,456 2,780,024 2,773,084 2,753,971 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 6,668,912 6,605,821 6,509,630 6,408,059 6,271,199 6,128,468 5,969,868 5,793,194 

5. Administrative expenses 378,689 386,263 393,988 401,868 409,905 418,103 426,465 434,994 

6. Investment returns 3,251,890 3,220,289 3,189,429 3,160,817 3,136,112 3,117,153 3,105,171 3,101,944 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $45,322,303 $44,876,497 $44,458,363 $44,075,644 $43,767,645 $43,546,087 $43,433,914 $43,458,048 

8. Available resources

(1) + (2) + (3) - (5) + (6) $51,991,215 $51,482,318 $50,967,993 $50,483,703 $50,038,844 $49,674,555 $49,403,782 $49,251,242 

9. Solvency ratio (8) / (4e) 7.80 7.79 7.83 7.88 7.98 8.11 8.28 8.50

Plan year beginning May 1 2041 2042 2043 2044 2045 2046 2047 2048

1. Market value of assets (beginning of year) $43,458,048 $43,659,898 $44,044,368 $44,629,452 $45,449,782 $46,520,969 $47,870,420 $49,522,626 

2. Employer contributions 3,122,025 3,093,927 3,066,082 3,038,487 3,011,141 2,984,041 2,957,185 2,930,570 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 1,409,838 1,274,846 1,145,754 1,023,166 907,609 799,547 699,357 607,261 

b. Terminated vested participants 1,459,924 1,440,096 1,416,791 1,380,869 1,340,656 1,292,333 1,243,672 1,190,717 

c. Current actives 2,716,620 2,672,668 2,622,045 2,558,512 2,494,037 2,421,701 2,338,121 2,250,891 

d. New entrants 0 0 0 0 0 0 0 0 

e. Total 5,586,382 5,387,610 5,184,590 4,962,547 4,742,302 4,513,581 4,281,150 4,048,869 

5. Administrative expenses 443,694 452,568 461,619 470,851 480,268 489,873 499,670 509,663 

6. Investment returns 3,109,901 3,130,721 3,165,211 3,215,241 3,282,616 3,368,864 3,475,841 3,605,218 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $43,659,898 $44,044,368 $44,629,452 $45,449,782 $46,520,969 $47,870,420 $49,522,626 $51,499,882 

8. Available resources

(1) + (2) + (3) - (5) + (6) $49,246,280 $49,431,978 $49,814,042 $50,412,329 $51,263,271 $52,384,001 $53,803,776 $55,548,751 

9. Solvency ratio (8) / (4e) 8.82 9.18 9.61 10.16 10.81 11.61 12.57 13.72

SMW0104
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 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 19

Sheet Metal Workers Local Pension Plan 

J. Projection of Funded Percentage 

The table shows the projected market value of assets, plan liability and funded percentage for the plan years beginning May 1, 2017 through May 1, 2049 for 

the proposed suspension as required under regulation 1.432(e)(9)-1(d)(5)(vi)(D) and revenue procedure 2017-43 6.06. 

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,714,534 $43,137,893 $43,958,046 $44,648,278 $45,182,745 $45,345,515 $45,266,520 

2. Unit credit accrued liability* 101,986,669 102,916,553 85,971,786 86,201,631 86,268,080 86,143,428 85,790,500 85,168,512 

3. Funded percentage: (1) / (2) 40.63% 41.50% 50.18% 50.99% 51.76% 52.45% 52.86% 53.15%

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $45,002,184 $44,567,566 $43,968,560 $43,546,604 $42,984,181 $42,312,059 $41,567,254 $40,733,468 

2. Unit credit accrued liability* 84,332,525 83,296,111 82,063,562 80,653,494 79,049,927 77,281,414 75,382,318 73,333,424 

3. Funded percentage: (1) / (2) 53.36% 53.50% 53.58% 53.99% 54.38% 54.75% 55.14% 55.55%

Plan year beginning May 1 2033 2034 2035 2036 2037 2038 2039 2040

1. Market value of assets (beginning of year) $39,853,452 $38,944,391 $38,025,594 $37,130,487 $36,266,238 $35,471,539 $34,757,454 $34,146,224 

2. Unit credit accrued liability* 71,174,269 68,918,357 66,580,920 64,190,816 61,750,177 59,292,133 56,821,614 54,354,185 

3. Funded percentage: (1) / (2) 55.99% 56.51% 57.11% 57.84% 58.73% 59.83% 61.17% 62.82%

Plan year beginning May 1 2041 2042 2043 2044 2045 2046 2047 2048

1. Market value of assets (beginning of year) $33,664,019 $33,351,442 $33,212,533 $33,264,362 $33,540,571 $34,055,709 $34,836,046 $35,904,852 

2. Unit credit accrued liability* 51,908,698 49,517,681 47,176,379 44,892,407 42,689,124 40,569,917 38,548,997 36,636,586 

3. Funded percentage: (1) / (2) 64.85% 67.35% 70.40% 74.10% 78.57% 83.94% 90.37% 98.00%

Plan year beginning May 1 2049

1. Market value of assets (beginning of year) $37,283,116 

2. Unit credit accrued liability* 34,839,577 

3. Funded percentage: (1) / (2) 107.01%

*The interest rate for calculating the unit credit accrued liability is 6.5% which is the assumption used in the May 1, 2017 actuarial valuation.

SMW0105
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 20

Sheet Metal Workers Local Pension Plan 

K. Response to Revenue Procedure 2017-43 Section 6.03, 6.04 and Appendix B 

The following is a response to Section 6.03, 6.04 and Appendix B of the Revenue Procedure 2017-43. In many 

cases, we have referenced other materials that are included in this application. Between this response, the May 1, 

2017 Actuarial Valuation, the May 1, 2017 PPA Actuarial Certification, and our report titled “Supplemental 

Information to Actuarial Certification for the Plan Year Beginning May 1, 2017”, all assumptions used in the 

projections required under Section 3.01, 3.02, 4.02(1), 4.03, 6.05 and 6.06 of Revenue Procedure 2017-43 have 

been described. This section responds to the items in Revenue Procedure 2017-43 Appendix B in the same order 

laid out in Appendix B. 

Part 1 – Actuarial Assumptions and Methods Used for Projections 

Investment Returns 

Plan Year 

Beginning May 1 Return

2017* 2.21%

2018 – 2026 6.64%

2027+ 7.40%

* The 2017 entry is the return for the 4 months from January 1, 2018 through April 30, 2018. 2.21% is 4/12th of 

6.64%, which is the amount derived for the entire year. 

Mortality Assumptions 

 Active and Terminated Vested Participants: RP-2014 Blue Collar Employee Mortality Table adjusted to 

reflect Mortality Improvement Scale MP-2016 from the 2006 base year, and projected forward using MP2016 on a generational basis. 

 Current and Future Retirees, Disabled Participants and Beneficiaries: RP-2014 Blue Collar Healthy 

Annuitant Mortality Table adjusted to reflect Mortality Improvement Scale MP-2016 from the 2006 base 

year, and projected forward using MP-2016 on a generational basis. 

Other Demographic Assumptions 

Retirement Rates from Active Status 

Age

Active 

Retirement Rates

55 10%

56 10%

57 10%

58 10%

59 10%

60 10%

61 20%

62 50%

63 50%

64 50%

65 100%

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 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 21

Sheet Metal Workers Local Pension Plan 

Retirement Rates from Terminated Vested Status 

Age

Terminated Vested 

Retirement Rates

55 5%

56 5%

57 5%

58 5%

59 5%

60 5%

61 20%

62 20%

63 10%

64 10%

65 100%

Termination 

Age

Less than 2 

Years of Service

2 - 4 

Years of Service

4 or More 

Years of Service: 

Ultimate Rates 

(Sarason T-5)

20 & under 30.00% 15.00% 7.88%

21 30.00% 15.00% 7.83%

22 30.00% 15.00% 7.79%

23 30.00% 15.00% 7.74%

24 30.00% 15.00% 7.69%

25 30.00% 15.00% 7.64%

26 30.00% 15.00% 7.58%

27 30.00% 15.00% 7.50%

28 30.00% 15.00% 7.39%

29 30.00% 15.00% 7.26%

30 30.00% 15.00% 7.11%

31 30.00% 15.00% 6.94%

32 30.00% 15.00% 6.76%

33 30.00% 15.00% 6.56%

34 30.00% 15.00% 6.35%

35 30.00% 15.00% 6.13%

36 30.00% 15.00% 5.90%

37 30.00% 15.00% 5.66%

38 30.00% 15.00% 5.42%

39 30.00% 15.00% 5.18%

40 30.00% 15.00% 4.93%

41 30.00% 15.00% 4.68%

42 30.00% 15.00% 4.42%

43 30.00% 15.00% 4.16%

44 30.00% 15.00% 3.89%

45 30.00% 15.00% 3.89%

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Sheet Metal Workers Local Pension Plan 

46 30.00% 15.00% 3.63%

47 30.00% 15.00% 3.35%

48 30.00% 15.00% 3.06%

49 30.00% 15.00% 2.75%

50 30.00% 15.00% 2.41%

51 30.00% 15.00% 2.06%

52 30.00% 15.00% 1.70%

53 30.00% 15.00% 1.34%

54 30.00% 15.00% 1.00%

55 & over 30.00% 15.00% 0.00%

Disability 

None. 

Exclusion of Terminated Vested Participants 

None. All terminated vested participants are included. 

Assumptions Regarding Form and Commencement of Benefits 

 Future retirees are assumed to elect the following forms of payment: 45% elect the single life annuity, 

10% elect the ten year certain and life annuity, 20% elect the joint and 50% survivor annuity with pop-up, 

and 25% elect the joint and 75% survivor with pop-up.

 Terminated vested participants are assumed commence benefits immediately upon retiring. The 

retirement rates for current and future terminated vested participants are described above. 

 We do not assume future disabilities because the disability benefit was eliminated effective September 1, 

2013. 

Assumptions Regarding Missing or Incomplete Data 

 Active, terminated vested, retiree and disabled records where gender is not reported are assumed to be 

male. 

 Beneficiary, deferred beneficiary, and alternate payee records where gender is not reported are assumed 

to be female. 

 Spouses are assumed to be opposite gender of the member if gender is not reported. 

 Female spouses are 3 years younger than male spouses. 

 100% of active and terminated vested participants are assumed to be married. 

 For missing pop-up amounts, it was assumed that the pop-up benefit is 112% and 119% of the current 

benefit for the 50% joint and survivor and 75% joint and survivor options, respectively. 

New Entrant Profile 

 No assumption was made with respect to the demographic characteristics of new entrants because 

benefit accruals were suspended effective August 1, 2013. There is no impact on projected plan liabilities 

and benefit payments from new entrants to the Plan during the projection period. However, we have 

assumed that there will be replacement of current participants by new entrants based on Trustee input 

related to projected contribution base units (see below). 

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Sheet Metal Workers Local Pension Plan 

Contribution Base Units and Rates 

The table below shows the assumed contribution base units (hours) and average contribution rate used for 

projections shown in this report. 

Plan Year 

Beginning May 1

Total Contribution

Base Units (hours)

Average Contribution 

Rate (Hourly)

2017 1,108,155 $3.50

2018 1,100,000 $3.50

2019 1,000,000 $3.50

2020 1,000,000 $3.50

2021 1,000,000 $3.50

2022 950,000 $3.50

2023 950,000 $3.50

2024 950,000 $3.50

2025 950,000 $3.50

2026 950,000 $3.50

2027 950,000 $3.50

2028 950,000 $3.50

2029 950,000 $3.50

2030 950,000 $3.50

2031 950,000 $3.50

2032 950,000 $3.50

2033 950,000 $3.50

2034 950,000 $3.50

2035 950,000 $3.50

2036 950,000 $3.50

2037 950,000 $3.50

2038 950,000 $3.50

2039 950,000 $3.50

2040 950,000 $3.50

2041 950,000 $3.50

2042 950,000 $3.50

2043 950,000 $3.50

2044 950,000 $3.50

2045 950,000 $3.50

2046 950,000 $3.50

2047 950,000 $3.50

2048 950,000 $3.50

Total estimated hours for the plan year May 2017 through April 2018 are 741,488 + 366,667 = 1,108,155. There are 

estimated to be 741,488 hours for May 2017 through December 2017 based on employer contributions of $2,595,209 

divided by the average contribution rate of $3.50 per hour. We are estimating 366,667 hours for January 2018 through 

April 2018 based on 4/12ths of the 1.1 million hours assumption for the 2017/2018 plan year.

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Sheet Metal Workers Local Pension Plan 

Withdrawal Liability Payments 

 No withdrawal liability payments are currently being made and no future withdrawal liability payments are 

assumed. 

Administrative Expenses 

 The annual administrative expense assumption is $500,000 for the year beginning May 1, 2017. This is 

based on the expenses incurred from May 1, 2017 through December 31, 2017 and the anticipated 

increase in expenses for the remainder of the year due to work related to the application for the proposed 

suspension of benefits. The administrative expenses are assumed to decrease to $385,000 for the year 

beginning May 1, 2018 and return to the level before work related to the proposed suspension of benefits 

began, or $287,000 ($270,000 increased for inflation), for the year beginning May 1, 2019. After May 1, 

2019, administrative expenses are assumed to increase by 2% per year thereafter for inflation.

Projection Methodology

 No data grouping techniques were used to produce projections. 

 No changes were made to cash flow projections produced by our valuation software. 

Part 2 – Supporting Documentation for Selection of Certain Actuarial 

Assumptions 

Investment Returns 

The components of the target portfolio used in the projections, expressed in terms of the asset classes used for 

setting the Plan’s investment policy are as follows:

Asset Class Allocations

US Fixed Income 15.5%

US Large Cap Growth Equity 1.6%

US Large Cap Value Equity 7.0%

US Mid Cap Value Equity 9.2%

US Small Cap Value Equity 5.0%

Europe Equity 7.5%

Japan Equity 2.8%

Asia Pacific ex Japan Equity 1.4%

Absolute Return Assets 15.0%

Private Equity 15.0%

Private Real Estate Funds 20.0%

The components of the target portfolio were allocated as follows among the asset classes provided in Appendix B 

of Revenue Procedure 2017-43:

Asset Class Allocations

US Equity – Large Cap 8.6%

US Equity – Small/Mid Cap 14.2%

Non-US Equity – Developed 11.7%

US Corporate Bonds – Core 15.5%

Real Estate 20.0%

Hedge Funds (includes 100% of Absolute Return Assets) 15.0%

Private Equity 15.0%

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Sheet Metal Workers Local Pension Plan 

The 10 and 20-year median returns shown on Exhibits 17 and 18 of the 2017 edition of the Horizon Survey of 

Capital Market Assumptions were used. The associated standard deviations and correlation coefficients from 

Exhibit 15 of the same survey were also used. 

This process produced a median geometric return of 6.64% using the 10-year capital market assumptions and a 

median geometric return of 7.40% using the 20-year capital market assumptions, which were then used to project 

future investment returns. 

Demographic Experience 

 An experience study was completed by the prior actuarial firm for the period May 1, 2010 to April 30, 

2015. The retirement rates from active status and termination rates were updated as of May 1, 2015 as a 

result of the experience study. The results of the experience analysis as provided by the prior actuarial 

firm are shown below. Our understanding is that the prior actuarial firm did not prepare a formal 

experience study report. 

 The historical actuarial gains and losses over the last ten years are shown below. 

Plan Year 

Beginning May 1

Demographic and 

Administrative Expense

(Gain)/Loss Asset (Gain)/Loss Total (Gain)/Loss

2016 $(686,979) $2,537,985 $1,851,006

2015 (205,159) 3,903,376 3,698,217

2014 263,280 2,936,285 3,199,565

2013 30,444 (802,801) (772,357)

2012 494,878 (647,011) (152,133)

2011 (1,007,671) 7,955,392 6,947,721

2010 15,363 (2,382,945) (2,367,582)

2009 170,143 (6,229,620) (6,059,477)

2008 (237,956) 16,572,030 16,334,074

2007 700,026 1,344,216 2,044,242

 The detailed demographic (gain)/loss for the 2016-2017 plan year by changes in status is provided below. 

Note the sum of the amounts shown in the table do not match the total shown above due to the 

(gain)/loss on administrative expenses and benefit payments. 

5/1/2017 Status

5/1/2016 

Status Active Deferred In Pay

Non 

Participating* Total

Active $8,336 $46,288 $(73,078) $(705) $(19,159)

Deferred (5,491) (69,270) 288 (250,746) (325,219)

In Pay 0 (34,385) 380,621 (775,403) (429,168)

Not in Data 92 0 111,317 0 111,409

Total 2,938 (57,367) 419,148 (1,026,855) (662,137)

 *Due to deaths, benefit expirations, and data corrections. 

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Sheet Metal Workers Local Pension Plan 

 The demographic (gain)/loss for the 2015-2016 plan year by changes in status is provided below. Note 

the sum of the amounts shown in the table do not match the total shown above due to the (gain)/loss on 

administrative expenses and benefit payments, and the difference between our replication of the May 1, 

2015 actuarial valuation results and the prior actuarial firm’s May 1, 2015 actuarial valuation results. 

5/1/2016 Status

5/1/2015 

Status Active Deferred In Pay

Non 

Participating* Total

Active $9,191 $13,062 $(4,732) $(88,091) $(70,570)

Deferred (1,405) 14,930 (62,982) (3,054) (52,511)

In Pay 0 0 337,507 (842,005) (504,498)

Not in Data 0 0 27,372 0 27,372

Total 7,785 27,992 297,165 (933,150) (600,206)

 *Due to deaths, benefit expirations, and data corrections. 

 The details of the demographic (gain)/loss for years prior to 2015-2016 are unavailable. 

 Regarding the assumption that 100% of the active and terminated vested participants are married, we do 

not receive data on the marital status of the active or terminated vested population. This assumption 

determines the projected survivor benefits payable to assumed surviving spouses for projected preretirement deaths from active and terminated vested status. Given the limitations of the available data 

and the relatively small impact of the assumption, we believe that the current assumption remains 

appropriate. 

 The distribution of benefit form elections as provided by the Plan Administrator for the last five years is 

shown below. The analysis includes retirements from both active and terminated vested status. 

Benefit Form Percentage Electing 

Single Life 42.7%

Five Year Certain and Life 4.5%

Ten Year Certain and Life 9.0%

Joint and 50% Survivor 7.9%

Joint and 50% Survivor with Pop-up 12.3%

Joint and 75% Survivor 3.4%

Joint and 75% Survivor with Pop-up 20.2%

 The retirement rates by age for active participants for the last two years (plan years beginning May 1, 

2015 and May 1, 2016) are shown below. We did not prepare a retirement experience analysis covering 

years prior to May 1, 2015 as the prior actuarial firm completed an experience analysis that covered those 

years. 

Age Exposures Number Retired Retirement Rate

55 40 4 10%

56 36 1 3%

57 28 2 7%

58 27 2 7%

59 19 2 11%

60 15 1 7%

61 16 3 19%

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Sheet Metal Workers Local Pension Plan 

62 7 3 43%

63 1 0 0%

64 1 0 0%

65 & over 4 0 0%

 The retirement rates by age for terminated participants for the last five years (plan years beginning May 1, 

2012 through May 1, 2016) are shown below. 

Mortality Assumptions 

 The Plan is not large enough to develop a credible mortality table based exclusively on Plan experience. We 

have relied on the most recent mortality tables (RP-2014) published by the Society of Actuaries in which 

credible mortality experience was analyzed. The Plan’s participants consist primarily of blue-collar 

participants; as such, the blue-collar variations of the RP-2014 tables were used. 

 With respect to future mortality improvement, the MP-2016 mortality improvement scale was used to project 

future improvement in mortality from 2006 on a generational basis. 

New Entrant Profile 

No assumption was made with respect to the demographic characteristics of new entrants because benefit 

accruals were suspended effective August 1, 2013. There is no impact on projected plan liabilities and benefit 

payments from new entrants to the Plan during the projection period. However, we have assumed that there will 

be replacement of current participants by new entrants based on Trustee input related to projected contribution 

base units (see below). 

Contribution Base Units and Employer Withdrawals 

 The table below shows the 10-year history of the employers that contributed 5% or more of annual 

contributions to the Plan. 

Plan Year 

Beginning 

May 1 Employer Name

Contribution 

Base 

Units

Contribution 

Rate

Total 

Contribution

2016 EAST COAST METAL SYSTEMS, INC. 109,408 $4.60 $503,277

2016 THE K COMPANY, INC. 81,901 5.18 424,248

2016 R G SMITH CO., INC. 69,216 5.18 358,537

2016 METAL MASTERS, INC. 46,713 5.18 241,975

2015 THE K COMPANY, INC. 82,637 5.18 428,058

2015 EAST COAST METAL SYSTEMS, INC. 90,329 4.60 415,514

2015 R G SMITH CO., INC. 59,532 5.18 308,377

Age Exposures Number Retired Retirement Rate

55 85 5 6%

56 70 2 3%

57 72 2 3%

58 69 2 3%

59 58 2 3%

60 45 4 9%

61 38 8 21%

62 27 4 15%

63 16 1 6%

64 12 3 25%

65 & over 31 2 6%

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Sheet Metal Workers Local Pension Plan 

2015 METAL MASTERS, INC. 45,617 5.18 236,295

2015 SHEET METAL CRAFTERS 42,298 5.18 219,103

2015 OHIO FABRICATORS, INC. 38,941 5.18 201,712

2014 EAST COAST METAL SYSTEMS, INC. 95,260 4.60 438,198

2014 THE K COMPANY, INC. 66,050 5.18 342,139

2014 R G SMITH CO., INC. 54,007 5.18 279,758

2014 METAL MASTERS, INC. 52,584 5.18 272,386

2014 OHIO FABRICATORS, INC. 39,168 5.18 202,890

2014 SHEET METAL CRAFTERS 86,325 2.18 188,189

2013 EAST COAST METAL SYSTEMS, INC. 90,020 4.60 414,091

2013 THE K COMPANY, INC. 59,621 5.18 308,837

2013 R G SMITH CO., INC. 57,535 5.18 298,031

2013 OHIO FABRICATORS, INC. 43,266 5.18 224,120

2013 METAL MASTERS, INC. 37,050 5.18 191,921

2012 EAST COAST METAL SYSTEMS, INC. 83,266 4.60 383,024

2012 THE K COMPANY, INC. 62,053 5.18 321,435

2012 R G SMITH CO., INC. 45,724 5.18 236,851

2012 OHIO FABRICATORS, INC. 41,575 5.18 215,361

2012 SHEET METAL CRAFTERS 40,172 5.18 208,093

2012 METAL MASTERS, INC. 35,231 5.18 182,494

2011 EAST COAST METAL SYSTEMS, INC. 96,036 4.03 387,027

2011 THE K COMPANY, INC. 61,132 4.54 277,540

2011 R G SMITH CO., INC. 46,070 4.54 209,160

2011 OHIO FABRICATORS, INC. 45,656 4.54 207,279

2011 METAL MASTERS, INC. 40,331 4.54 183,101

2011 SHEET METAL CRAFTERS 36,881 4.54 167,439

2010 EAST COAST METAL SYSTEMS, INC. 60,372 4.03 243,298

2010 R G SMITH CO., INC. 50,135 4.54 227,612

2010 METAL MASTERS INC. 40,811 4.54 185,281

2010 THE K COMPANY, INC. 37,006 4.54 168,007

2009 GLOBAL INSULATION, INC. 82,434 3.75 309,129

2009 EAST COAST METAL SYSTEMS, INC. 64,256 3.33 213,972

2009 THE K COMPANY, INC. 50,141 3.75 188,029

2009 OHIO FABRICATORS, INC. 43,467 3.75 163,003

The table below shows the 10-year experience for certain critical assumptions as required under regulation 

1.432(e)(9)-1(d)(5)(vi)(A) and revenue procedure 2017-43 6.04. 

Plan Year 

Beginning May 1

Total Employer 

Contributions Pension Hours

Average Hourly

Contribution 

Rate

Withdrawal 

Liability 

Payments

Market Value 

Return on 

Assets

2016 $3,896,375 1,126,133 $3.46 $0 9.1%

2015 3,815,488 1,087,575 3.51 0 0.1%

2014 3,696,518 1,044,941 3.54 0 7.4%

2013 3,620,036 1,015,775 3.56 0 10.6%

2012 3,476,411 998,372 3.48 0 10.3%

2011 3,262,884 1,034,107 3.16 0 -7.9%

2010 2,517,134 922,328 2.73 0 14.6%

2009 2,732,416 1,023,122 2.67 0 25.9%

2008 2,619,413 1,066,839 2.46 0 -30.3%

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Sheet Metal Workers Local Pension Plan 

2007 2,992,541 1,140,517 2.62 0 -3.4%

Average Trend from 2007 to 2016 0.1%

 Explanation for the historical trends experienced by the Plan with respect to contribution base units is 

documented in several sections within the application, including Section 5.01, 5.02(1)(a), 5.02(1)(e), 5.02(3), 

5.02(4) and 5.03. 

 Contribution rates have increased by over 50% since the implementation of the Rehabilitation Plan effective 

August 1, 2009. For example, the contribution rate for Building Trades Journeymen – Akron increased from 

$3.41 per hour before the Rehabilitation Plan to the current $5.18 per hour rate. The original Rehabilitation 

Plan required annual contribution increases of 10% from 2009 to 2016; however, it was later determined that 

further increases would harm the funding of Plan. The last required rate increase was a 14% increase in 

2012. Additional explanation for the historical trends experienced by the Plan with respect to contribution 

rates is documented in several sections within the application, including Section 5.01, 5.02(1)(a), 5.02(1)(e), 

5.02(3), 5.02(4) and 5.03. 

 At their November 30, 2017 meeting, the Trustees discussed the assumptions for contribution base units for 

the coming years, ultimately determining that 950,000 for future years will be used. While the Trustees had 

observed actual hours on average 11% higher than 950,000 during the past four years, the forecasted lesser 

hours is based on the Trustees’ understanding that there had been a short term upswing in projects that was 

not predictably sustainable and that several specific projects would be winding down and terminating the near 

term. This was the basis for the projection and supports the lesser hours forecast. 

 The assumed $3.50 average hourly contribution rate is based on actual experience and assumes the 

distribution of active participants among various participating employers remains stable. 

 No employers have withdrawn from the Plan and been assessed a withdrawal liability during the last five 

years. In addition, there are no future withdrawal liability payments due to the Plan from previous years’

withdrawals. 

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

 All bargaining parties elected the Preferred Schedule of the Rehabilitation Plan. 

Projection Methodology 

 No approximation techniques were used to produce the projections. 

 No changes were made to cash flow projections produced by our valuation software. 

Part 3 – Additional Disclosures Relating to Use of Different Assumptions 

The following assumptions differed between the projections produced under Section 3.01 and Section 3.02, 

4.02(1), 4.03, 6.05 and 6.06. An explanation for the difference is included. 

 Investment returns - For the purpose of the projections included in 3.01, we used a 6.5% investment return 

assumption. This assumption was set based on Milliman’s Capital Market Assumptions. The investment 

return assumption used to develop the projections described in 3.02, 4.02(1), 4.03, 6.05 and 6.06 were 

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 expenses – For the purposes of the projections included in 3.01, we assumed that future 

administrative expenses would increase by 2% per year from the actual expenses paid during the 2016/2017 

plan year. The administrative expense assumption was refined for the projections described in 3.02, 4.02(1), 

4.03, 6.05 and 6.06 to reflect the expected short-term increase in expenses related to the application for the 

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Sheet Metal Workers Local Pension Plan 

proposed benefit suspension. We have maintained the 2% per year inflationary adjustment for the refined 

assumption. 

 Retirement rates from terminated vested status – For purposes of the projections included in 3.01, we 

assumed that terminated vested participants would commence benefits at age 60 or 62, depending on their 

date of termination. For purposes of the projections described in 3.02, 4.02(1), 4.03, 6.05 and 6.06 we 

developed retirement rates by age based on actual experience over the past five years as shown in Part 2 of 

this exhibit. 

 Form of payment – For purposes of the projections included in 3.01, we assumed that participants would elect 

the single life annuity form of payment. For purposes of the projections described in 3.02, 4.02(1) 4.03, 6.05 

and 6.06, we added optional forms of payment based on actual experience over the past five years as shown 

in Part 2 of this exhibit. 

 Exclusion of terminated vested participants – For purposes of the projections included in 3.01, we assumed 

that terminated vested participants over age 70 at the valuation date are deceased with no benefit payable. 

For purposes of the projections described in 3.02, 4.02(1), 4.03, 6.05 and 6.06, we included all terminated 

vested participants. 

 Load for pop-up – For purposes of the projections included in 3.01, we assumed a 1.4% load on liabilities for 

retirees who elected the pop-up option on their joint and survivor benefit. For purposes of the projections 

described in described in 3.02, 4.02(1), 4.03, 6.05 and 6.06, we valued the actual individual pop-up amount 

as provided by the Plan Administrator. 

 Contribution base units – For purposes of the projections included in 3.01, we assumed 1,100,000 hours for 

the years ending April 30, 2018 and April 30, 2019, 890,000 hours for the years ending April 30, 2020 through 

April 30, 2022, and 950,000 hours for each year thereafter. For purposes of the projections described in 3.02, 

4.02(1), 4.03, 6.05 and 6.06, we used an updated assumption based on input from the Board of Trustees. 

. 

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Sheet Metal Workers Local Pension Plan 

L. Proposed Benefit Suspensions 

The application filed on behalf of the Sheet Metal Workers Local Pension Plan sets forth the following proposed 

benefit suspension to be effective May 1, 2019. The suspension is expected to continue indefinitely. 

This application proposes the participant’s or beneficiary’s benefit be reduced to a level accrual rate of $48

multiplied by the years of service earned through April 30, 2019. The proposed suspension does not provide for 

different treatment of participants and beneficiaries other than as a result of the application of the individual 

limitations of §432(e)(9)(D)(i), (ii) and (iii), which are described at the end of this exhibit. 

Although the proposed reduction does not include a different set of benefit reductions that applies to different 

categories of participants or beneficiaries, each participant has a different work history and retirement date. The 

Plan has had a number of benefit level changes over time. This means that the proposed reduction will impact 

participants in different ways. The chart below summarizes the categories of participants based on the Plan’s benefit 

formula before the proposed suspension. 

Participants in Categories 1-4 will not be impacted by the proposed reduction because all in those categories either 

have benefit protections under Federal law or have a current level accrual rate that is already less than the proposed 

$48.00 level accrual rate. 

Participants in Category 5 through 7 who have a benefit that is eligible for a reduction, will be impacted as follows: 

 Category 5 – average current level accrual rate reduced from $75* to $48 

 Category 6 - average current level accrual rate reduced from $74* to $48 

 Category 7 - average current level accrual rate reduced from $69* to $48 

* A participant’s current level accrual rate is determined by dividing their benefit amount by their years of service. 

The current level accrual rate shown above is the average for all participants in the category eligible for reduction. 

Each individual participant has a different current level accrual rate depending on their years of service, annual 

hours worked, and hourly contribution rate made on their behalf. 

Retirement/Termination Date % of Employer Contribution

Accrual Rate

Category 1 May 1, 1983 – April 30, 1984 2.6%

Category 2 May 1, 1984 – April 30, 1987 2.8%

Category 3 May 1, 1987 – April 30, 1990 3.0%

Category 4 May 1, 1990 – April 30, 1994 3.5%

Category 5 May 1, 1994 – April 30, 2003 3.65%

Category 6 May 1, 2003 – July 31, 2009 3.65% of contributions through April 30, 2003; 

plus 2.2% of contributions from May 1, 2003 

through April 30, 2006;

plus .36% of contributions from May 1, 2006 

through July 31, 2009

Category 7 On or after August 1, 2009 3.65% of contributions through April 30, 2003; 

plus 2.2% of contributions from May 1, 2003 

through April 30, 2006; 

plus .36% of contributions from May 1, 2006 

through July 31, 2013; 

plus 0% of contributions after August 1, 2013.

As of August 1, 2009, subsidies for early 

retirement and optional forms of payment were 

eliminated from the Plan. 

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Sheet Metal Workers Local Pension Plan 

Participants entering the Plan after July 31, 2013 are excluded from the above analysis because those participants 

have not earned any benefits under the Plan and thus, are not impacted by the proposed reduction. 

The following summarizes the individual limitations of §432(e)(9)(D)(i), (ii) and (iii). 

 §432(e)(9)(D)(i) – No suspension will result in reducing a participant’s or beneficiary’s benefit below 110% of 

the PBGC guaranteed benefit. 

 §432(e)(9)(D)(ii) –No suspensions can be made for participants and beneficiaries above the age of 80 as of 

the end of the month of the effective date of the suspension (May 31, 2019). The suspension is reduced by a 

factor for participants and beneficiaries above the age of 75 but younger than 80 as of the end of the month of 

the effective date of the suspension. The factor is calculated by determining how many months the participant 

or beneficiary has until age 80 (as of the end of the month of the effective date of the suspension) and 

dividing that amount by 60. 

 §432(e)(9)(D)(iii) – No suspension for disabled participants. 

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