23.1

Bricklayers & Allied Craftsmen Local No. 7 Pension Plan

Checklist Item #23

Does the application include a copy of the proposed ballot, excluding the information regarding 

the statement in opposition, the individualized estimate, and the voting procedures? See section 

6.01.

Document 23.1 provides a copy of the proposed ballot.
23.2

6.01 Proposed Ballot

Document 23.1

Proposed Ballot for the Pension Plan 

BALLOT ON THE PROPOSED SUSPENSION OF BENEFITS FOR THE

BRICKLAYERS & ALLIED CRAFTSMEN LOCAL NO. 7 PENSION PLAN

The Board of Trustees of the Bricklayers & Allied Craftsmen Local No. 7 Pension Plan

sent a notice to all active participants, retirees, and beneficiaries on [INSERT DATE], setting 

forth a proposal to suspend benefits for certain recipients. It is time to vote on the proposed 

suspension. But before you vote for or against the suspension, you should keep the following points 

in mind.

IMPORTANT POINTS TO REMEMBER

The term “suspend” means that the benefits, if the proposal is approved, will be reduced 

for an indefinite period of time. The notice you received described the proposed reduction in 

benefits, the effects of the reduction on each group affected by the proposal, and the factors 

considered by the Board of Trustees in designing the proposal. The Board of Trustees has taken 

this action because it has determined that a reduction in benefits is necessary to avoid insolvency.

Along with the notice, the Board of Trustees sent each recipient a copy of his or her 

individualized estimate of how the proposed reduction would affect the recipient’s benefit. A copy 

of the individualized estimate is enclosed with this ballot. If you need a copy of the previously sent 

notice, please contact the Fund Office and another copy will be provided.

This ballot has been provided to you because you are eligible to vote to approve or reject 

the proposed suspension of benefits. The voting instructions are provided below.

Before you vote, you should consider the following:

1. The proposed reduction in benefits affects all active participants, retirees, and 

beneficiaries, except for those persons who are age 80 or older, as well as those 

who are receiving disability benefits from the Pension Plan.

2. For each retiree who is between the ages of 75 and 80, the amount of the reduction 

will be limited to a percentage of the reduction applied to younger retirees, with the 

percentage becoming smaller with each age closer to age 80.

3. As required by federal law, no one’s benefit will be reduced below 110% of the 

amount guaranteed by the Pension Benefit Guaranty Corporation (“PBGC”).

4. As approved by the Board of Trustees, no monthly benefit will be reduced below 

1.3% of the total contributions made by employers on the recipient’s behalf. 
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5. The proposed suspension of benefits, if approved, would apply to benefit payments 

starting on May 1, 2017.

6. The Pension Plan’s actuary has determined that if the benefits are not reduced as 

proposed by the Board of Trustees, the Pension Plan will become insolvent by the 

2024-2025 plan year. Conversely, the Pension Plan’s actuary has certified that if 

these reductions are approved and implemented, the Pension Plan is projected to

avoid insolvency. Needless to say, these projections are, in part, based on educated 

guesses and assumptions about future contribution levels, investment rates of 

return, and future work hours, so the projections are subject to some degree of 

uncertainty.

7. The Board of Trustees supports the proposed suspension of benefits. The Board of 

Trustees has done everything in its power to avoid these benefit reductions, 

including reducing active participants’ benefits and future accruals, as well as 

getting active participants to agree to increase contributions to the Pension Plan 

instead of receiving wage increases. However, reductions in investment returns, 

work hours, and employer contributions have forced the Board of Trustees to take 

this action so that the Pension Plan does not become insolvent.

8. Insolvency of the Pension Plan could result in benefits lower than benefits paid 

under the proposed suspension. A description of the projected benefit payments in 

the event of Pension Plan’s insolvency is provided in the accompanying 

individualized estimate.

9. If the Pension Plan were to become insolvent, it would not be able to pay all of the 

benefits promised to all eligible recipients, and benefits paid would be less than the 

benefit reductions under the proposed suspension of benefits.

STATEMENTS REQUIRED BY FEDERAL LAW

1. This ballot was written in a manner so that it could be readily understood by the 

average Pension Plan participant. To the best of the Board of Trustees’ knowledge 

and belief, the ballot does not contain any false or misleading information.

2. The Board of Trustees has provided a description of the proposed suspension and 

its effects, including the effect of the suspension on each category or group of 

individuals affected by the suspension and the extent to which they would be

affected.

3. The Board of Trustees has considered the following five (5) factors in designing 

the proposed benefit suspension:

 The amount of benefits;

 The type of benefit: survivor, normal retirement, or early retirement;
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 The history of benefit increases and reductions for participants and 

beneficiaries;

 Any discrepancies between active and retiree benefits; and

 The extent to which active participants are reasonably likely to withdraw 

support for the Pension Plan, accelerating employer withdrawals from the 

Pension Plan, and increasing the risk of additional benefit reductions for 

participants in and out of pay status.

4. If approved, the suspension would remain in effect indefinitely.

5. The proposed suspension has been approved by the U.S. Department of the 

Treasury, in consultation with the PBGC and the U.S. Department of Labor.

6. The PBGC acts as the guarantor of benefits provided by defined benefit pension 

plans like this one, but only to a certain level. Generally, the benefits that would be 

paid under this proposal would be greater than the benefits guaranteed by the 

PBGC. If the PBGC were to become insolvent, it would not be able to pay the 

guaranteed benefits, and whatever it could pay would be less than what the Pension 

Plan would pay if it were to become insolvent. 

7. The suspension will go into effect unless a majority of eligible voters vote to reject 

the suspension and that, therefore, a failure to vote has the same effect on the 

outcome of the vote as a vote in favor of the suspension.

8. The following statements in opposition to the proposed suspension have been 

compiled from comments received pursuant to the solicitation of comments in the 

Federal Register notice with respect to the application.

a. [Opposing comment]

b. [Opposing comment]

c. [Opposing comment]

d. [Opposing comment]

e. [Opposing comment]
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HOW TO CAST YOUR VOTE

Two methods for casting your vote are available, both of which have been approved by the 

IRS in consultation with the PBGC and DOL: (1) you may vote by telephone; or (2) you may vote 

using a secure website and an individualized voter identification number. You may not vote using 

a paper ballot, and the Pension Plan and its representatives cannot accept paper ballots.

Choose one (1) of the following two (2) voting methods:

1. Call the following dedicate, toll-free number set up solely for the purpose of 

voting:

Toll-free telephone number: (xxx) xxx-xxxx

OR

2. Log on to the following website and follow the voting instructions. You will 

need the following unique identifier number to register your vote:

The website: www._______________

Your voter ID number: ____________________

You may vote any time after you receive this ballot. But the period for voting on the 

proposed suspension of benefits will end on [INSERT DATE]. This means that all votes must be 

cast by 11:59 p.m. ET on that date or they will not be counted.

AS REQUIRED BY FEDERAL LAW, THE PROPOSED SUSPENSION WILL GO INTO 

EFFECT UNLESS A MAJORITY OF ALL ELIGIBLE VOTERS VOTE TO REJECT THE 

SUSPENSION. IN OTHER WORDS, A FAILURE TO VOTE HAS THE SAME EFFECT 

ON THE OUTCOME OF THE VOTE AS A VOTE IN FAVOR OF THE SUSPENSION.