Alaska Ironworkers Pension Plan

Application for benefit suspension

History for 5% employers

Attachment to Item 25

The following summarizes the history requested in Appendix B of Revenue Procedure 2017‐43 for 5% employers.

This data is largely summarized from the

2015‐2016 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

Whalen Construction                       32,866 $                      13.75 $                  451,901

Price Gregory International Inc.                       23,702 $                      13.75 $                  325,904

Swanson Steel                       18,699 $                      13.75 $                  257,116

Iron Inc.                       17,491 $                      13.75 $                  240,499

Azco Inc.                       13,437 $                      13.75 $                  184,752

Grifford Steel                         9,694 $                      13.75 $                  133,298

2014‐2015 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

PCL Civil                       35,576 $                      12.75 $                  453,597

Whalen Construction                       30,906 $                      13.75 $                  424,953

Swanson Steel                       27,973 $                      13.75 $                  384,623

Iron Inc.                       23,129 $                      13.75 $                  318,022

North Pacific Erectors                       16,602 $                      13.75 $                  228,284

RPC Inc.                       13,324 $                      13.75 $                  183,201

2013‐2014 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

Swanson Steel                       44,476 $                      12.75 $                  567,070

Haskell Corporation                       29,669 $                      12.75 $                  378,278

Whalen Construction                       17,623 $                      12.75 $                  224,688

Universal Welding                       16,239 $                      12.75 $                  207,053

Iron Inc.                       13,288 $                      12.75 $                  169,417

Griffard Steel                       12,939 $                      12.75 $                  164,970

Nothern Services                       12,716 $                      12.75 $                  162,128

Kiewit Infrastructure                       12,542 $                      11.75 $                  147,374

Appendix B AIPT 506
Alaska Ironworkers Pension Plan

Application for benefit suspension

History for 5% employers

Attachment to Item 25

2012‐2013 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

Swanson Steel                       11,009 $                      12.75 $                  140,361

2011‐2012 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

Swanson Steel Erectors Inc                       59,973 $                      10.75 $                  644,711

ATEC Industries LTD                       10,379 $                      10.75 $                  111,577

North Pacific Erectors                       16,134 $                      10.75 $                  173,438

SNC ‐ Lavalin Constructors                       11,784 $                      10.75 $                  126,683

Universal Welding                       11,400 $                      10.75 $                  122,551

2010‐2011 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

Swanson Steel Erectors Inc                       36,528 $                        9.75 $                  356,149

Betchtel National Inc.                       11,069 $                        9.75 $                  107,924

2009‐2010 plan year 5% employers

Name

Contribution Base

Units (Hours)

Average

Contribution Rate

($/Hour) Total Contribution

Universal Welding                       51,970 $                        8.75 $                  454,736

North Pacific Erectors                       17,560 $                        8.75 $                  153,653

Swanson Steel Corp                       16,510 $                        8.75 $                  144,461

Iron Inc.                       15,749 $                        8.75 $                  137,808

Stresscon Inc                       15,191 $                        8.75 $                  132,919

ATEC Industries LTD                       14,131 $                        8.75 $                  123,650

Griffard Steel                       12,309 $                        8.75 $                  107,708

Kiewit Building Group                       15,676 $                        6.75 $                  105,810

Appendix B AIPT 507
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2016 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death

Small cash

out QDRO AP

Disabled

retiree Retir

Not in Prior Year Data 5,877 13,683 572,430 6Active (138) (31,140) (50,137) (27Non‐vested terminated, valued 247 (24,354) 105,280 (327,131) (3,281) 2

Vested terminated 7,392 (138,292) (76,689) (71

Non‐vested, not valued 2,551 3,766 4,825 6

QDRO AP 19,605 Disabled retiree 60,765 Retiree (1,844,670) 56

In‐pay beneficiary (40,387) 

Total 15,929 (55,494) (65,700) (327,131) (1,961,746) (3,281) 592,035 65,590 62
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2015 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death

Small cash

out QDRO AP

Disabled

retiree Retir

Not in Prior Year Data 13,153 

Active 25,317 (13,680) (35,158) Non‐vested terminated, valued 8,748 (70,384) 108,117 (368,727) (5,227) Vested terminated 21,147 38,926 (11,417) (13,761) 1,200 (28

Non‐vested, not valued 4,869 

QDRO AP 17,323 Disabled retiree (16,407) 102,564 

Retiree (1,382,206) 1,17

In‐pay beneficiary (26,113) 

Total 73,234 (84,064) 111,885 (380,144) (1,438,487) (4,027) 17,323 102,564 1,14
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2014 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death

Small cash

out QDRO AP

Disabled

retiree Ret

Not in Prior Year Data 6,187 

Active 56,366 (11,605) (97,082) Non‐vested terminated, valued 52,350 (86,032) 51,845 (257,464) (2,242) (1,524) 

Vested terminated 70,043 (22,411) (3

Non‐vested, not valued 12,118 QDRO AP 16,011 Disabled retiree (23,994) 97,034 Retiree (608,652) (34,603) 9

In‐pay beneficiary (62,340) 

Total 197,064 (97,637) (67,648) (257,464) (697,228) (1,524) 16,011 62,431 1,0
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2013 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death QDRO AP

Disabled

retiree Retire

Not in Prior Year Data 29,168 113 0 0 0 255,623 0 7

Active 82,898 (62,662) (61,906) (671,305) 000Non‐vested terminated, valued 2,308 (99,026) 82,811 (249,449) 000

Vested terminated (62,878) 0 (8,898) (4,938) 0 0 (597) (137,

Non‐vested, not valued 88,531 000000

QDRO AP 00000 13,010 0 

Disabled retiree 0000 (4,942) 0 94,571 42Retiree 000 (26,682) (640,498) 0 0 1,083

In‐pay beneficiary 0000 (41,166) 0 0 

Total 140,027 (161,575) 12,007 (952,374) (686,606) 268,633 93,974 995
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2012 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death

Small cash

out QDRO AP

Disabled

retiree Reti

Not in Prior Year Data 44,378 29,714 17,857 00000

Active 40,591 (14,215) (10,939) (201,137) (686,664) 0 0 0 

Non‐vested terminated, valued 49,364 (102,261) 127,495 (400,623) 0 (4,083) 0 0 

Vested terminated 1,816 0 (6,313) 0 (10,054) 341 0 0 

Non‐vested, not valued 9,029 1,673 000000 Death 00000000

QDRO AP 0000 (115,400) 0 13,326 0 

Disabled retiree 0000 (72,373) 0 0 100,490 

Retiree 000 (4,819) (400,633) 0 0 0 1,3

In‐pay beneficiary 0000 (96,214) 000

Total 145,178 (85,089) 128,100 (606,579) (1,381,338) (3,742) 13,326 100,490 1,4
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2011 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death

Small cash

out QDRO AP

Disabled

retiree Retiree

Not in Prior Year Data 3,588 279,424 

Active (18,728) (56,243) (40,511) 0 206Non‐vested terminated, valued 63,737 (124,638) 15,366 (204,359) (2,298) 18

Vested terminated 4,978 9,626 (4,234) (63,655) 414 178

Non‐vested, not valued 3,371 0 111

Death 0 

Small cash out ‐                 ‐              QDRO AP (111,069) 61,407 Disabled retiree (63,722) 99,148 157

Retiree (299,373) 13,919 921

In‐pay beneficiary (77,783) Total 56,946 (180,881) (15,519) (208,593) (615,603) 12,035 340,831 99,148 1,593
Alaska Ironworkers Pension Plan

Application for benefit suspensionPYE 2010 gain/loss analysis

Attachment to Item 25The individual's prior year status is in column A and the individual's current year status is in row 6

(Gain)/Loss ‐ Accrued liabilityPY/CY Active

Non‐vested

terminated,

valued

Vested

terminated

Non‐vested,

not valued Death

Small cash

out QDRO AP

Disabled

retiree Retir

Not in Prior Year Data 17,091 0 17,519 0 0 0 201,768 0 5

Active 312,289 (280,459) (187,466) (269) 000 (42,357) (34Non‐vested terminated, valued (8,889) (102,629) 44,009 (217,348) 0 (3,713) 0 0 29

Vested terminated 73,352 0 (58,770) 0 0 (1,219) 0 (548) 

Non‐vested, not valued 1,369 0000000QDRO AP 000000 20,110 0 Disabled retiree 0000 (35,739) 0 0 82,795 15

Retiree 0000 (72,870) (183,101) 0 0 41

In‐pay beneficiary 0000 (91,071) 000Total 395,212 (383,088) (184,708) (217,617) (199,680) (188,033) 221,878 39,890 58
Alaska Ironworkers Pension Plan

Application for benefit suspension

Complete termination decrement table

Attachment to Item 25

Duration from

hire

Termination

decrement rate

0 0.2500                

1 0.2500                

2 0.1500                

3 0.1200                

4 0.1000                

5 0.0933                

6 0.0866                

7 0.0800                

8 0.0780                

9 0.0760                

10 0.0740                

11 0.0720                

12 0.0700                

13 0.0700                

14 0.0700                

15 0.0700                

16 0.0700                

17 0.0700                

18 0.0660                

19 0.0620                

20 0.0580                

21 0.0540                

22 0.0500                

23 0.0460                

24 0.0420                

25 0.0380                

26 0.0340                

27+ 0.0300                

Appendix B AIPT 515
Milliman Experience Study 

Issued April 1, 2016 

Alaska Ironworkers Pension Plan

Updated Demographic Assumptions Study 

Prepared by: 

Kelly S. Coffing 

FSA, EA, MAAA 

Mark C. Olleman 

FSA, 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 

Appendix B AIPT 516
Milliman Experience Study 

Alaska Ironworkers Pension Plan i 

Updated Demographic Assumptions Study 

Updated Demographic Assumptions Study for the 

Alaska Ironworkers Pension Plan 

Purpose of the Study 

The purpose of this study is to review demographic experience of the Alaska Ironworkers Pension Plan during 

the period from July 1, 2011 through June 30, 2015. 

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. 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, without audit, on information (some oral and some in writing) supplied by 

the Plan’s Administrator. 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 Updated Demographic Assumptions Study 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. 

Certification 

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

Revenue Code and its regulations) is individually reasonable (taking into account the experience of the Plan 

and reasonable expectations) and, in combination, offer our best estimate of anticipated experience under the 

Plan. 

The assumptions developed in this report satisfy Actuarial Standards of Practice No. 35, Selection of 

Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations. 

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. 

Appendix B AIPT 517

Milliman Experience Study 

Alaska Ironworkers Pension Plan iii 

Updated Demographic Assumptions Study 

Table of Contents 

1. Introduction ................................................................................................................................................. 1 

2. Methodology ............................................................................................................................................... 4 

3. Summary of Results ................................................................................................................................... 6 

Termination Assumption for Active Participants ........................................................................................... 7 

Retirement Assumption for Active Participants ............................................................................................ 8 

Retirement Assumption for Vested Terminated Participants ....................................................................... 8 

Disability Assumption ................................................................................................................................... 8 

Mortality Assumption for Healthy Retired Males .......................................................................................... 9 

Mortality Assumption for Healthy Female Beneficiaries ............................................................................. 10 

Mortality Assumption for Active and Vested Terminated Participants ........................................................ 10 

Mortality Assumption for Disabled Retired Participants ............................................................................. 10 

Other Demographic Assumptions ............................................................................................................... 11 

4. Liability and Funded Status Impact ........................................................................................................ 12

5. Appendix ................................................................................................................................................... 14 

Updated Termination Rates ........................................................................................................................ 15 

Updated Retirement Rates for Active and Vested Terminated Participants .............................................. 16 

Updated Disability Rates ............................................................................................................................ 16 

Updated Mortality Assumptions .................................................................................................................. 16 

Current Mortality Assumptions ................................................................................................................... 16 

Appendix B AIPT 519
Milliman Experience Study 

Alaska Ironworkers Pension Plan 1 

Updated Demographic Assumptions Study 

Introduction 

Appendix B AIPT 520
Milliman Experience Study 

Alaska Ironworkers Pension Plan 2 

Updated Demographic Assumptions Study 

Overview 

We have performed a study to review the recent demographic experience for the Alaska Ironworkers Pension 

Plan generally during the period from July 1, 2011 through June 30, 2015. 

The following demographic assumptions were reviewed: 

 Rates of Termination 

 Rates of Retirement 

 Rates of Disability 

 Rates of Mortality 

The actual demographic experience for the study period was compared to the expected experience using 

current assumptions. Based on our findings, we have determined changes to some of the assumptions listed 

above. These changes will bring assumptions more closely in line with actual experience. 

These assumptions are expected to be used for the following purposes: 

 IRS pension funding requirements (except where prescribed by law) 

 Withdrawal Liability calculations 

 Plan accounting requirements under FASB 960 

We plan to use the updated assumptions starting with the July 1, 2015 actuarial valuation. 

Contents of Report 

Throughout this report, we refer to “expected” and “updated” actuarial assumptions. The expected 

assumptions are those used for our July 1, 2014 actuarial valuation. They may also be referred to as the 

“current” or “old” assumptions. The updated assumptions are those we plan to use in the 

July 1, 2015 valuation. 

The “Summary of Results” section of this report details the development of each demographic assumption. 

The graphs show the actual experience, the current assumption, and the updated assumption. The narrative 

below each graph discusses our findings and the basis for our assumption changes. 

The Appendix to this report shows the updated rates by age or service for each demographic assumption. 

Study Data 

Male and female experience was aggregated for purposes of most demographic assumptions in this study. 

For mortality, male and female experience was studied separately. It is worth noting that the plan participants 

are 99% male. Accordingly, more attention was focused on male experience, except in the case of surviving 

beneficiaries, which are all female. 

To the extent possible, the impact of any special events has been taken into account. The new assumptions 

reflect our estimate of smoothed experience that would have emerged if there had been no special events. 

Appendix B AIPT 521
Milliman Experience Study 

Alaska Ironworkers Pension Plan 3 

Updated Demographic Assumptions Study 

Note that retirement experience was likely impacted significantly by the rehabilitation plan, effective during 

2010. The study period is after the primary effects the rehabilitation plan may have had on participant 

behavior. This would likely be most pronounced prior to July 2011, which we eliminated from our study, but 

this behavior may have extended into our study period. However, we don't believe this introduced any 

material bias. 

Appendix B AIPT 522
Milliman Experience Study 

Alaska Ironworkers Pension Plan 4 

Updated Demographic Assumptions Study 

Methodology

Appendix B AIPT 523
Milliman Experience Study 

Alaska Ironworkers Pension Plan 5 

Updated Demographic Assumptions Study 

Valuation Principles and Actuarial Risk 

Just as certain investment choices have an associated investment risk, choices in actuarial assumptions have 

an associated actuarial risk. This is the risk that future experience is different than the assumptions. Our 

responsibility is to assign pension benefit costs appropriately to ensure that contributions are sufficient to fund 

benefits and maintain the health of the Plan. 

Our estimate of the liabilities and costs is dependent on the assumptions we use to project the future benefit 

payments and then to discount the value of future benefits to determine the present values. 

 If actual experience shows that the assumptions overestimated the true cost of the benefits, decisions 

may be inappropriately made based on the higher estimated cost levels. This may also result in an 

overstatement of cost today and the longer term impact will not be realized until many years in the future. 

 If actual experience shows that the assumptions underestimated the true cost of the program, decisions 

may be inappropriately made based on the lower estimated costs levels. This may result in an 

unexpected need to increase contributions in the future and may lead to negotiating difficulties. 

 The valuation presents the costs as of only one date. Further analysis illustrating the potential volatility of 

the cost results may be needed to fully appreciate the actuarial risk associated with actuarial 

assumptions. These further studies are beyond the scope of this project. 

Our Philosophy 

Similar to an actuarial valuation, the calculation of actual experience is a fairly mechanical process. From one 

actuary to another, you would expect to see very little difference. However, the setting of assumptions is a 

different story, as it requires actuarial judgment. In this report, we provide updated assumptions. To help you 

understand our thought process, here is a brief summary of our philosophy: 

 Don’t Overreact: When we see significant changes in experience, we generally do not adjust our rates to 

reflect the entire difference. We will generally recommend rates somewhere between the old rates and 

the new experience. If the experience during the next study shows the same result, we will probably 

recognize this trend at that point. On the other hand, if the experience returns closer to its prior level, we 

will not have overreacted, possibly causing unnecessary volatility in costs. 

 Anticipate Trends: If there is an identified trend that is expected to continue, we believe that this should 

be recognized. An example of this is the mortality assumption. Due to historical and predicted future 

improvements in longevity, our recommended mortality assumption includes a projection scale. 

 Simplify: Where there is no material difference in results, we attempt to simplify our assumptions and 

methods. There is no point in complexity that does not materially improve the accuracy of results. 

Appendix B AIPT 524
Milliman Experience Study 

Alaska Ironworkers Pension Plan 6 

Updated Demographic Assumptions Study 

Summary of Results 

Appendix B AIPT 525
Milliman Experience Study 

Alaska Ironworkers Pension Plan 7 

Updated Demographic Assumptions Study 

Termination Assumption for Active Participants 

The assumption for termination of employment is used to estimate the probability that an active participant will 

leave the Plan before they are eligible to retire and commence their pension benefits, of particular importance 

for valuation purposes is whether a participant attains full vesting. 

 Previously, our termination assumption was based on age as opposed to service. We believe years of 

service are a better indicator for termination rates. This is supported by the Plan’s experience. 

 We do not receive termination dates for participants. We approximated the date of termination based on 

the year a participant is no longer reported as active. As such, the experience for years 0-2, when rates 

are highest, may be imprecise. Our updated assumption is intended to smooth out the experience in 

these years. The approximated termination dates have less impact on study results in later years as 

termination rates stabilize. 

 Actual rates appear to increase with years of service between 20 to 24 years, but this can be attributed to 

a low amount of experience for that group. In fact, only two participants in the service grouping terminated 

during the study. 

 Rates at years two and three are lower than we would expect. This is inconsistent with general expected 

behavior and we chose to use rates that are more representative of expectations. 

 In general, termination rates decline as service increases as long service participants are less likely to 

terminate employment prior to retirement. We believe that this pattern is likely to continue based on 

current and future economic conditions. 

Appendix B AIPT 526
Milliman Experience Study 

Alaska Ironworkers Pension Plan 8 

Updated Demographic Assumptions Study 

Retirement Assumption for Active Participants 

The assumption for retirement from active employment is used to estimate the probability that an active 

participant will leave employment and receive a retirement benefit, provided they have met the age and 

service eligibility requirements. 

 Retirement experience was very low during the study period (four retirements from active status). After 

reviewing our assumptions and gain/loss experience, we have opted to keep our current assumptions. 

Retirement Assumption for Vested Terminated Participants 

This assumption is used to estimate the probability that a vested terminated participant will elect to 

commence his or her retirement benefit, provided they have met the age and service eligibility requirements. 

 The current assumption is that 50% of vested terminated participants retire at age 50 and 100% retire at 

age 60. 

 We believe that the retirement behavior of actives and vested terminated participants was similar enough 

to justify the same assumption for both groups. Therefore, the terminated vested retirement assumption 

has been changed to match the active rates of retirement assumption. 

Disability Assumption 

We assume there is no disability decrement as disability provisions were removed with the Rehabilitation Plan 

effective August 30, 2010. This assumption is unchanged. 

Appendix B AIPT 527

Milliman Experience Study 

Alaska Ironworkers Pension Plan 10 

Updated Demographic Assumptions Study 

Mortality Assumption for Healthy Female Beneficiaries 

The mortality assumption is used to estimate how long a healthy retired female participant will survive and 

continue to receive her pension benefit. For this purpose, we looked exclusively at the experience of female 

surviving beneficiaries of plan participants. 

 There was very little mortality experience for females over the study period (18 deaths). 

 We believe using the female version of the male mortality table is appropriate in a case where experience 

is limited. 

 Updated Assumption: Blue Collar RP-2014 Healthy Female Annuitant mortality tables adjusted to factor 

out MP-2014 to the 2006 base year, then projected forward using Scale MP-2015 on a generational 

basis. 

Mortality Assumption for Active and Vested Terminated Participants 

The mortality assumption for active and vested terminated participants is used to estimate the probability of 

participant deaths (either while still employed or after termination of employment) prior to benefit 

commencement. 

 There were approximately five active and vested terminated participants who were reported as having 

died during the study period. 

 Due to the relatively low number of observed deaths we do not believe that the experience, on its own, 

provides a credible basis for which to select an assumption. 

 The retired population mortality experience provides a more credible base for setting the assumption. 

 To maintain consistency with the retired mortality assumption, the updated assumptions will be the Blue 

Collar RP-2014 Employee mortality tables, adjusted to factor out Scale MP-2014 to the 2006 base year, 

then projected forward using Scale MP-2015 on a generational basis. 

Mortality Assumption for Disabled Retired Participants 

The disabled participant mortality assumption is used to estimate how long a disabled retired participant will 

survive and continue to receive his or her pension benefit. 

 With only 31 current disabled retirees, we do not believe that there are enough disabled participants in 

the Plan to provide a credible experience base under which to set a mortality assumption. 

 Due to the fact that all 31 of the Plan’s disabled participants have been in-pay since at least 2010, it is our 

best estimate that their mortality is more similar to a healthy retiree than someone “disabled.” The 

updated assumptions will be the same as healthy retirees, Blue Collar RP-2014 Healthy Annuitant 

mortality tables, adjusted to factor out Scale MP-2014 to the 2006 base year, then projected forward 

using Scale MP-2015 on a generational basis. 

Appendix B AIPT 529
Milliman Experience Study 

Alaska Ironworkers Pension Plan 11 

Updated Demographic Assumptions Study 

Other Demographic Assumptions 

The other demographic assumptions that are used in our valuation work are listed below. In general, these 

assumptions do not have a material impact on the valuation results, nor do we have the necessary data 

available to study them in full. 

 Probability of Marriage and spouse ages: used to estimate the likelihood that an active or vested 

terminated participant that dies prior to retirement will have a spouse that is entitled to a benefit. 

o The current assumption is 100% of participants are married and husbands are three years 

older than wives. 

o An analysis of spouse information provided for new retirees during the study period suggests 

the probability of marriage assumption may be somewhat high, and the spouse age 

difference assumption is relatively accurate. 

o Given the limitations of the data we had available, the relative immateriality of the 

assumption, and the desire to be slightly conservative, we believe the current assumption 

remains appropriate. 

 Assumed form of payment: used to estimate the form of payment that a participant elects upon 

commencement of benefits. 

o The current assumption is that all participants elect a single life annuity. 

o The plan offers actuarially equivalent alternative forms of payment, with no significant 

subsidies relative to the valuation assumptions. 

o Accordingly, the current assumption remains appropriate. 

o Note that once a participant retires and elects a specific form of payment, we value that 

election and incorporate their spouse’s date of birth, as appropriate. 

 Participants of unknown gender: used to value the small number of participants (generally new hires) for 

whom gender was not provided by the plan administrator. 

o The current assumption is that such participants are male. 

o The overall plan demographics of 99% male support this assumption. 

 Nonvested terminees becoming vested: we estimate the likelihood that a participant that terminates prior 

to being vested in some part of their accrued benefit will either return to active status and become vested 

or become vested through reciprocity with another plan. 

o The current assumption is 45% of nonvested benefits earned by participants that terminate 

prior to becoming fully vested will eventually become vested. 

o It is difficult to analyze this type of assumption. Currently we look at it on a year-to-year basis. 

Based on our review over the past few years, we have noticed that this assumption may be a 

bit conservative. 

o Given the limitations of the data we had available and the desire to be conservative, we 

believe the current assumption remains appropriate. 

Appendix B AIPT 530
Milliman Experience Study 

Alaska Ironworkers Pension Plan 12 

Updated Demographic Assumptions Study 

Liability and Funded Status Impact

Appendix B AIPT 531

Milliman Experience Study 

Alaska Ironworkers Pension Plan 14 

Updated Demographic Assumptions Study 

Appendix

Appendix B AIPT 533


Alaska Ironworkers Pension Plan

Application for benefit suspensionRetirement rates by age for terminated vested participants (based on our Updated Demographic Assumptio

Attachment to Item 25

Age

Retirement

Rate

50 23%51 0%52 4%53 11%54 10%55 31%56 0%57 18%58 15%59 22%60 31%61 0%62 31%