International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #5 – 3.01 Plan Actuary’s Certification of Critical and Declining Status as of July 1, 

2016

Does the application include the plan actuary’s certification of critical and declining status and 

the supporting illustrations, including:

• the plan-year-by-plan-year projections demonstrating projected insolvency during 

the relevant period; and

• separately identifying the available resources (and the market value of assets and 

changes in cash flow) during each of those years?

See section 3.01.

Document 5.1 provides the certification of critical and declining status of the Pension Plan’s 

actuary.

Supplemental reports that include year-by-year solvency projections and the market value of 

assets, contributions, investment earnings, benefit payments and plan expenses are provided in 

Document 5.2, Exhibits I, II, III. The reports are based on the actuary’s interpretation of the 

requirements under Revenue Procedure 2016-27, Section 3.01. Please refer to the July 1, 2016 

actuarial certification in Document 5.1, pages 5.2 and 5.3, and the July 1, 2015 actuarial valuation 

report in Document 39.2(1), pages 39.58 to 39.63, for a description of the assumptions used.
International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #5 – 3.01 Plan Actuary’s Certification of Critical and Declining Status as of July 1, 

2016

Document 5.1

Actuary’s Certification of 

Critical and Declining Status

The following is the Pension Plan’s Actuarial Certification of Plan Status as of July 1, 2016, as 

required under Internal Revenue Code (IRC) §432. This certification, which designated the 

Pension Plan as meeting the “critical and declining status” for the current plan year, was filed on 

September 29, 2016. 

5.1
United Actuarial 

Services, Inc. 

1\c ll..l.=ln C'> .:lriCI C O n 'iLIII•lrll <; 

September 28, 2016 

Board ofTrustees 

International Association of Machinists Motor City Pension Fund 

Troy, Michigan 

Rc: 2016 Actuarial Certification Under the Pension Protection Act 

Dear Trustees: 

The following information is intended to comply with the annual cettification requirements of 

IRC section 432, with respect to the funded status of the International Association of Machinists 

Motor City Pension Fund. 

Identifying Information 

Plan Name: International Association of Machinists Motor City Pension Fund 

EIN/Pian #: 38-6237143/001 

Plan year of Certification: year beginning July I, 2016 

Plan Sponsor: Board of Trustees of l. A. of M. Motor City Pension Fund 

Sponsor Address: 700 Tower Drive, Suite 300, Troy, Michigan 48098-2835 

Sponsor Telephone: (248) 813-9800 

Enrolled Actuary Name: Paul Bullock 

Enrollment Number: Redacted by 

Actuary Address: 11590 N. Meridian St., Suite 610, Carmel, IN 46032 

Actuary Telephone: (317) 580-8652 

Certification of Plan Status 

I certify that the above-named Plan is in the following status as of July 1. 2016 (all that apply are 

checked): 

Safe--Neither Endangered nor Critical Status 

Safe Due to Special Rule 

Endangered Status 

Seriously Endangered Status 

Projected to be in Critical Status within 5 years 

Critical Status 

Critical and Declining Status X 

I 1590 North Meridi<Jn Street Suite 610 • C.1rmel, lndklna 46032-4529 • (317) 580-8670 • FciX (3 17) 580-8651 

5.2 
United Actuarial Services, Inc. 

Actuaries and Consultants 

Board of Trustees -2-

This certification is based on the following results: 

Projected funded ratio as of July I, 2016: 57.9% 

Previously emerged from critical status using IRC Section No 

432(c)(4)(8)(2) special emergence rule: 

First projected deficiency: June 30, 2017 

At least 8 year of benefit payments in plan assets: Yes 

September 28,2016 

Year of projected insolvency: 2025-26 plan year 

Ratio of inactive to active participants: 7.75 

Certification of Scheduled Progress 

I certify that the above-named Plan has made the scheduled progress as outlined in the 2008 

rehabilitation plan as of July I, 2016. Projections indicate that the Plan is not projected to 

emerge from Critical at the end of the rehabilitation plan period as specified in the 2008 

rehabilitation plan. This rehabilitation plan, however, includes the use of the "exhaustion of all 

reasonable measures'' clause of IRC 432(e)(3)(A)(ii). Therefore, we interpret scheduled progress 

for this Plan to mean continuing to use all reasonable measures to forestall insolvency and such 

consideration was made in the past year. 

These ce11ifications are intended to be in good faith compliance with the necessary disclosures 

for certification and represent my best estimate of the Plan's funded position. 

Basis for Result 

The certifications utilize the assumptions, methods, plan provisions and demographic data as 

disclosed in the July I, 2015 actuarial valuation report with the following exceptions: 

• Based on the June 30, 2016 unaudited financial statements provided by the plan 

administrator, the asset return for the 2015-16 plan year is assumed to be -1.35%. We 

also updated the contributions, benefit payments, and expenses for the 2015-16 plan year 

based on these financial statements. 

• For the period July I, 2016 through June 30, 2025, plan assets were assumed to return 

6.75% per year, with 7.50% per year assumed thereafter. 
United Actuarial Services, Inc. 

Actuaries and Consultants 

Board of Trustees -3- September 28,2016 

• We have added the anticipated withdrawal liability payments from Bill Wink Chevrolet 

beginning July I, 2016 of $13,477 per qua11cr for 56 quarters. 

• We have added the anticipated withdrawal liability payments from Edward C. Levy 

Company beginning July 1. 2016 of $84,226 for 36 quarters, then a $54,600 final 

payment. 

• We have added the anticipated withdrawal liability payments from Superior Materials 

beginning July 1, 2016 of $53,943 for 5 quarters, then $32,590 for 1 quarter, then 

$30,081 for 8 quarters, then $19.868 for 1 qua11er, then $14,652 for 3 quat1ers, and then a 

$13,475 final payment. 

• We have added the anticipated withdrawal liability payments from Doan Construction 

beginning July 1, 2016 of $4,250 f(Jr 68 quarters, then a $2,263 final payment. 

• Consistent with our projections of future industry activity, 5,910 weeks were assumed for 

the plan year beginning in 2016. and for each plan year thereafter. For the 201 5-16 plan 

year, we used an estimated actual figure of 6,034 weeks. 

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

the American Academy of Actuaries to render the actuarial opinion contained herein. We will 

have a full update of the Plan's funded position with the next valuation repot1. 

Sincerely, 

Redacted by the U.S. Department of the Treasury 

Paul Bullock, ASA, EA, MAAA 

Vice President 

Enrollment Number: 14-05770 

Date of Signature: __ _'1_;:_L...;:..'6-=- L-_' _O_( (,_· __ 

cc: Secretary of the Treasury 

Mr. Duane Menter, Administrator 

Mr. Michael Mills, Fund Counsel 

Mr. Douglas Wesley, Auditor 

Ms. Elizabeth Edwards, Plan Associate 

m:\doc!.\inm motor cily\db 28485\vnlunlions\20 16070 I \ppa\20 16070 I ppa ccrt.docx 
International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #5 – 3.01 Plan Actuary’s Certification of Critical and Declining Status as of July 1, 2016

Document 5.2

Supplemental Reports

Exhibit I – Solvency Projection

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning July 1, 2016 through June 30, 2026

Plan Year

Ending

1. Beginning

Assets

2. Employer

Contributions

3. EWL

Payments

4. Benefit 

Payments 5. Expenses

6. Investment

Income

7. Ending

Assets

8. Resources

(1)+(2)+(3)-

(5)+(6)

Solvency

Ratio

(8)/(4)

6/30/2016 $50,999,106 $1,623,302 $8,160,599 $8,685,665 $243,732 $(692,797) $51,160,813 $59,846,478 6.890

6/30/2017 $51,160,813 $1,590,055 $626,162 $9,203,288 $240,000 $3,209,734 $47,143,476 $56,346,763 6.122

6/30/2018 $47,143,476 $1,590,055 $557,969 $9,113,435 $240,000 $2,939,295 $42,877,359 $51,990,794 5.705

6/30/2019 $42,877,359 $1,590,055 $530,986 $8,992,906 $240,000 $2,654,489 $38,419,983 $47,412,889 5.272

6/30/2020 $38,419,983 $1,590,055 $505,938 $8,957,276 $240,000 $2,353,973 $33,672,672 $42,629,949 4.759

6/30/2021 $33,672,672 $1,590,055 $454,075 $8,905,024 $240,000 $2,033,543 $28,605,321 $37,510,345 4.212

6/30/2022 $28,605,321 $1,590,055 $411,005 $8,845,044 $240,000 $1,692,067 $23,213,404 $32,058,448 3.624

6/30/2023 $23,213,404 $1,590,055 $411,005 $8,849,688 $240,000 $1,327,956 $17,452,732 $26,302,420 2.972

6/30/2024 $17,452,732 $1,590,055 $411,005 $8,794,735 $240,000 $940,966 $11,360,022 $20,154,757 2.292

6/30/2025 $11,360,022 $1,590,055 $411,005 $8,745,462 $240,000 $531,371 $4,906,990 $13,652,452 1.561

6/30/2026 $4,906,990 $1,590,055 $127,562 $8,645,112 $240,000 $99,568 Insolvent $6,484,175 0.750

5.5
International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #5 – 3.01 Plan Actuary’s Certification of Critical and Declining Status as of July 1, 2016

 

EXHIBIT II - Breakdown of Benefit Payouts for Exhibit I 

Plan Year

Ending Actives

Vested 

Terminations Retired

New 

Entrants

6/30/2016 $16,893 $647,702 $8,021,071 $0

6/30/2017 $61,347 $663,371 $8,478,570 $0

6/30/2018 $113,680 $751,090 $8,248,665 $0

6/30/2019 $168,589 $793,382 $8,030,935 $0

6/30/2020 $229,395 $902,568 $7,825,313 $0

6/30/2021 $301,005 $988,565 $7,615,422 $32

6/30/2022 $372,643 $1,071,301 $7,400,938 $162

6/30/2023 $443,222 $1,224,493 $7,181,588 $385

6/30/2024 $513,653 $1,323,207 $6,957,156 $719

6/30/2025 $585,118 $1,431,671 $6,727,488 $1,185

6/30/2026 $647,613 $1,503,164 $6,492,524 $1,811

Exhibit III – Projected Total Contribution Base Units and Average Contribution Rates

Plan Year

Ending

Total 

Contribution 

Base Units

Contribution 

Rate

Plan Year

Ending

Total 

Contribution 

Base Units

Contribution 

Rate

6/30/2016 6034 $269.03 6/30/2022 5910 $269.04

6/30/2017 5910 $269.04 6/30/2023 5910 $269.04

6/30/2018 5910 $269.04 6/30/2024 5910 $269.04

6/30/2019 5910 $269.04 6/30/2025 5910 $269.04

6/30/2020 5910 $269.04 6/30/2026 5910 $269.04

6/30/2021 5910 $269.04

5.6