Exhibit 6: Page 1 of 12

WESTERN STATES OFFICE AND 

PROFESSIONAL EMPLOYEES PENSION FUND

SUSPENSION APPLICATION 

Exhibit 6
Redacted by the U.S. Department of the 

Treasury

p

p

y 

Estimated To Not Materially Exceed the Level Necessary to Avoid 

Insolvency Pursuant to IRC Section 432(e)(9)(D)(iv) 

The attached graphs demonstrate that based upon the assumptions provided in Exhibit 5, the actuarial 

certification regarding sufficiency of the benefit suspensions, the benefit suspension being requested In 

this application does not materially exceed the amount of suspensions required to avoid such an 

insolvency. 

The graphs demonstrate that the Fund is not reasonably estimated to avoid insolvency under a benefit 

reduction 2% smaller than the current 29% reduction {a 27% benefit reduction). Note that a 2% reduction 

is greater than a 5% reduction in the proposed 29% suspension (or 1.45%). The available resources 

continue to decrease in the last five years of the extended projection period. 

This certification was prepared on behalf of the Western States Office and Professional Employees 

Pension Fund based on employee data, asset statements and plan documents provided by the Plan 

Sponsor or its representatives. We relied upon the data as submitted, without formal audit. However, the 

data was tested for reasonableness, and we have no reason to believe that any other information which 

would have had a material effect on the results of this valuation was overlooked. 

Therefore, to the best of our knowledge and belief, the information presented in this certification is 

complete and accurate, and each assumption used represents our best estimate of anticipated 

experience under the Plan. 

Certified by: 

Paul Graf, A.S.A., E.A., M.A.A.A. Enrolled Actuary No. 14-05627 

February 15, 2017 

Exhibit 6: Page 2 of 12 
Western States Office and Professional Employees Pension Fund 

Exhibit 6: Page 3 of 12

PROJECTION OF 2% SMALLER SUSPENSION 

Year Beg January 1, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Return 6.60% 5.35% 5.62% 5.89% 6.16% 6.43% 6.70% 6.97% 7.24% 7.51% 7.64% 7.77% 7.90% 8.03% 8.16% 8.29% 8.42% 8.55% 8.68% 8.81% 7.60% 7.60% 7.60%

Supplemental % 69.6% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%

% Decrease in Hours 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Economic Inputs
Western States Office and Professional Employees Pension Fund 

Exhibit 6: Page 4 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year Beginning 1/1/2016 1/1/2017 1/1/2018 1/1/20Plan Year Ending 12/31/2016 12/31/2017 12/31/2018 12/31/20A. Market Value at Beginning of Year 334,210,200 325,872,761 311,465,744 303,749,6

IncomeB. Base Contributions 4,477,091 3,983,739 3,983,739 3,983,7

C. Supplemental/Surcharge Contributions 3,113,918 3,186,991 3,186,991 3,186,9

D. Withdrawal Liability Payments 3,143,651 3,997,686 3,994,682 3,990,0

E. Total Investment Income 21,054,925 16,578,578 16,795,917 17,138,0

DisbursementsF. Benefit Payments (a) Current Actives 1,064,916 1,977,275 2,098,634 2,588,5

 (b) Current Inactive Vested 1,537,256 2,264,404 2,546,287 3,230,2

 (c) Current Retirees/Beneficiaries 36,524,852 36,912,332 30,332,509 29,505,7

 (d) Future New Entrants - - - - 

 (e) Total 39,127,024 41,154,011 34,977,430 35,324,4

G. Administrative expenses 1,000,000 1,000,000 700,000 700,0

H. Market Value at End of Year(A+B+C+D+E-F(e)-G)

325,872,761 311,465,744 303,749,643 296,023,9

I. Available Resources (A+B+C+D+E-G)

364,999,785 352,619,755 338,727,073 331,348,3

J. Solvency Ratio (I / F) 9.33 8.57 9.68 9.

K. Accrued Liability 529,954,836 436,351,176 422,804,069 419,012,8

L. Funded Percentage (A / K) 63.06% 74.68% 73.67% 72.4

Note that the stress test reflects a 2% reduction in the dollar amount of the proposed suspension (or a 27% reduction) for beneficiary. A 2% reduction is greater than a 5% reduction in the proposed 29% suspension (or 1.45%).

Exhibit 6: Page 5 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2021 1/1/2022 1/1/2023 1/1/20

12/31/2021 12/31/2022 12/31/2023 12/31/20

288,284,612 280,512,929 272,924,696 265,570,3

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,93,985,664 3,983,350 3,972,733 3,960,1

17,695,428 17,916,507 18,110,991 18,276,4

3,347,730 3,655,509 3,918,091 4,146,54,825,187 5,479,032 6,123,616 6,971,6

27,749,855 26,822,138 25,862,836 24,871,8

732 2,141 4,214 6,9

35,923,505 35,958,820 35,908,756 35,997,0

700,000 700,000 700,000 700,0

280,512,930 272,924,696 265,570,393 258,280,7

316,436,435 308,883,517 301,479,150 294,277,7

8.81 8.59 8.40 8.

409,518,842 403,784,066 397,596,924 391,013,0

70.40% 69.47% 68.64% 67.9

Exhibit 6: Page 6 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2026 1/1/2027 1/1/2028 1/1/20

12/31/2026 12/31/2027 12/31/2028 12/31/20

251,432,013 244,736,946 238,247,711 232,012,5

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,93,955,948 3,955,948 3,955,948 3,955,9

18,230,509 18,036,058 17,842,836 17,653,5

4,536,325 4,687,421 4,838,425 4,977,78,002,008 8,523,371 9,021,155 9,553,4

22,799,422 21,721,833 20,620,167 19,497,9

14,498 19,346 24,975 31,4

35,352,253 34,951,971 34,504,722 34,060,6

700,000 700,000 700,000 700,0

244,736,946 238,247,711 232,012,503 226,032,1

280,089,200 273,199,682 266,517,225 260,092,7

7.92 7.82 7.72 7.

376,500,057 368,963,379 361,295,084 353,534,3

66.78% 66.33% 65.94% 65.6

Exhibit 6: Page 7 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2031 1/1/2032 1/1/2033 1/1/20

12/31/2031 12/31/2032 12/31/2033 12/31/20

220,417,171 215,310,065 210,601,536 205,842,7

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,93,872,769 3,762,484 3,141,632 1,904,0

17,314,205 17,178,206 17,044,419 16,876,7

5,145,920 5,236,080 5,295,937 5,298,1

10,360,044 10,768,088 11,102,460 11,236,7

17,211,277 16,058,316 14,907,467 13,765,5

47,569 57,465 109,720 195,1

32,764,809 32,119,949 31,415,584 30,495,4

700,000 700,000 700,000 700,0

215,310,066 210,601,536 205,842,733 200,598,7

248,074,875 242,721,486 237,258,318 231,094,2

7.57 7.56 7.55 7.

337,848,582 330,190,910 322,646,294 315,284,5

65.24% 65.21% 65.27% 65.2

Exhibit 6: Page 8 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2036 1/1/2037 1/1/2038 1/1/20

12/31/2036 12/31/2037 12/31/2038 12/31/20

196,083,407 189,720,838 182,342,018 175,504,9

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,91,560,757 - - - 

14,098,229 13,595,172 13,074,745 12,592,2

5,315,823 5,278,904 5,225,596 5,183,8

11,205,453 11,116,151 10,966,750 10,815,8

11,537,310 10,465,340 9,430,503 8,439,5

433,697 584,328 759,674 965,9

28,492,284 27,444,722 26,382,522 25,405,1

700,000 700,000 700,000 700,0

189,720,839 182,342,018 175,504,971 169,162,8

218,213,123 209,786,741 201,887,494 194,567,9

7.66 7.64 7.65 7.

301,918,383 296,083,177 290,910,454 286,463,4

64.95% 64.08% 62.68% 61.2

Exhibit 6: Page 9 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2041 1/1/2042 1/1/2043 1/1/20

12/31/2041 12/31/2042 12/31/2043 12/31/20

163,027,265 157,135,884 151,469,866 146,074,8

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,9

- - - - 

11,695,183 11,272,079 10,867,147 10,482,2

5,000,679 4,901,193 4,769,798 4,616,5

10,352,481 10,069,268 9,730,272 9,376,8

6,613,829 5,789,586 5,029,596 4,336,22,090,306 2,648,780 3,203,232 3,743,0

24,057,294 23,408,826 22,732,898 22,072,7

700,000 700,000 700,000 700,0

157,135,884 151,469,866 146,074,845 140,955,0

181,193,178 174,878,693 168,807,743 163,027,7

7.53 7.47 7.43 7.

279,365,195 276,490,640 274,079,656 272,194,3

58.36% 56.83% 55.26% 53.6

Exhibit 6: Page 10 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2046 1/1/2047 1/1/2048 1/1/20

12/31/2046 12/31/2047 12/31/2048 12/31/20

136,095,201 131,525,842 127,243,450 123,250,0

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,9

- - - - 

9,771,676 9,447,623 9,144,654 8,862,34,319,970 4,146,486 3,978,129 3,808,48,566,756 8,139,134 7,679,724 7,212,23,152,804 2,660,777 2,231,879 1,862,14,772,235 5,254,347 5,719,100 6,168,4

20,811,765 20,200,745 19,608,832 19,051,2

700,000 700,000 700,000 700,0

131,525,842 127,243,450 123,250,002 119,531,7

152,337,607 147,444,195 142,858,834 138,583,0

7.32 7.30 7.29 7.

270,069,368 269,884,046 270,318,457 271,397,7

50.39% 48.73% 47.07% 45.4

Exhibit 6: Page 11 of 12
Western States Office and Professional Employees Pension F

Projected Cash Flow (Stress Test)

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2051 1/1/2052 1/1/2053 1/1/20

12/31/2051 12/31/2052 12/31/2053 12/31/20

116,091,572 112,920,494 110,027,485 107,399,8

3,983,739 3,983,739 3,983,739 3,983,73,186,991 3,186,991 3,186,991 3,186,9

- - - - 

8,358,245 8,136,246 7,934,140 7,751,33,442,184 3,245,082 3,052,360 2,858,56,269,807 5,796,739 5,330,931 4,877,41,280,723 1,058,500 874,611 723,6

7,007,339 7,399,664 7,774,628 8,128,4

18,000,053 17,499,984 17,032,530 16,588,0

700,000 700,000 700,000 700,0

112,920,494 110,027,486 107,399,826 105,033,8

130,920,547 127,527,470 124,432,355 121,621,8

7.27 7.29 7.31 7.

275,553,747 278,679,678 282,550,436 287,186,2

42.13% 40.52% 38.94% 37.4

Exhibit 6: Page 12 of 12