EXHIBIT 30A BAC 7:320
EXHIBIT 30A BAC 7:321
EXHIBIT 30A BAC 7:322
EXHIBIT 30A BAC 7:323
EXHIBIT 30A BAC 7:324
EXHIBIT 30A BAC 7:325
EXHIBIT 30A BAC 7:326
EXHIBIT 30A BAC 7:327
EXHIBIT 30A BAC 7:328
EXHIBIT 30A BAC 7:329
EXHIBIT 30A BAC 7:330
EXHIBIT 30A BAC 7:331
EXHIBIT 30A BAC 7:332
EXHIBIT 30A BAC 7:333
EXHIBIT 30A BAC 7:334
EXHIBIT 30A BAC 7:335
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 31 

Rehabilitation Plan 

The most recently updated rehabilitation plan is attached as Exhibit 31A (BAC 7:337). 

BAC 7:336
EXHIBIT 31A BAC 7:337
EXHIBIT 31A BAC 7:338

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 32 

Actuarial Valuations 

The two most recent actuarial valuation reports are attached as Exhibits 32A (BAC 7:341) and 

32B (BAC 7:410). 

BAC 7:340
BRICKLAYERS AND ALLIED CRAFTSMEN

LOCAL NO. 7 PENSION PLAN

AKRON, OH 

Actuarial Valuation Report

For Plan Year Commencing 

May 1, 2018

EXHIBIT 32A BAC 7:341
November 26, 2018

Board of Trustees

Bricklayers and Allied Craftsmen

Local No. 7 Pension Plan

Akron, OH

Dear Trustees:

We have been retained by the Board of Trustees of the Bricklayers and Allied Craftsmen

Local No. 7 Pension Plan to perform annual actuarial valuations of the pension plan. This 

report presents the results of our actuarial valuation for the plan year beginning May 1, 

2018. The valuation results contained herein are based on current plan provisions 

summarized in Appendix A, the actuarial assumptions and methods listed in Appendix B 

and on financial statements audited by Yurchyk & Davis CPA's, Inc. Participant data was 

provided by Benesys, Inc.. While we have reviewed the data for reasonableness in 

accordance with Actuarial Standards of Practice No. 23, we have not audited it. The data 

was relied on as being both accurate and comprehensive.

This report has been prepared in order to (1) assist the Trustees in evaluating the current 

actuarial position of the plan, (2) determine the minimum required and maximum deductible 

contribution amounts under Internal Revenue Code §431 and §404, (3) provide the fund’s 

auditor with information necessary to comply with Accounting Standards Codification 960, 

and (4) document the plan’s certified status under Internal Revenue Code §432 for the 

current year and provide the basis to certify such status for the subsequent year. In addition, 

information contained in this report will be used to prepare Schedule MB of Form 5500 that 

is filed annually with the IRS and could be used to calculate employer withdrawal liability. 

We are not responsible for the use of, or reliance upon, this report for any other purpose. 

We have prepared this report in accordance with generally accepted actuarial principles 

and practices and have performed such tests as we considered necessary to assure the 

accuracy of the results. The results have been determined on the basis of actuarial 

assumptions that, in my opinion, are appropriate for the purposes of this report, are 

individually reasonable and in combination represent my best estimate of anticipated 

experience under the plan. Actuarial assumptions may be changed from previous 

valuations due to changes in mandated requirements, plan experience resulting in changes 

in expectations about the future, and/or other factors. An assumption change does not 

indicate that prior assumptions were unreasonable when made. For purposes of current

liability calculations, assumptions are prescribed by regulation or statute. By relying on this 

valuation report, the Trustees confirm they have accepted the assumptions contained in the 

report.

The results are based on my best interpretation of existing laws and regulations and are 

subject to revision based on future regulatory or other guidance.

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to such factors as 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 

EXHIBIT 32A BAC 7:342
amortization period or additional cost or contribution requirements based on the plan’s 

funded status), and changes in plan provisions or applicable law.

United Actuarial Services, Inc. does not provide, nor charge for, investment, tax or legal 

advice. None of the comments made herein should be construed as constituting such 

advice. We are not aware of any direct or material indirect financial interest or relationship 

that could create a conflict of interest that would impair the objectivity of our work.

The undersigned actuary meets the Qualification Standards of the American Academy of 

Actuaries to render the actuarial opinion contained in this report. 

We are available to respond to any questions you may have about this report.

UNITED ACTUARIAL SERVICES, INC.

Enrolled Actuary

Kathryn A. Garrity, FSA, EA, MAAA

Chief Actuary

EXHIBIT 32A BAC 7:343
TABLE OF CONTENTS

PART I: SUMMARY OF RESULTS 5

5 - Year Summary of Valuation Results 6

5 - Year Summary of Demographics 7

Changes From Prior Study 8

History of Major Assumptions 9

Experience vs. Assumptions 10

Plan Maturity 11

Unfunded Vested Benefits/Employer Withdrawal Liability 12

Contribution Allocation 13

Funding Standard Account Projection 14

Funded Ratio Projection 15

PPA Funding Status Report 16

Ultimate Funded Status 17

Stress and Sensitivity Analysis 18

PART II: SUPPLEMENTAL STATISTICS 19

Participant Data Reconciliation 20

Hours Worked During Plan Year 21

Contributions Made During Plan Year 22

Active Information 23

Inactive Vested Information 24

Retiree Information 25

PART III: ASSET INFORMATION 27

Market and Actuarial Fund Values 28

Flow of Funds 29

Investment Gain and Loss 30

Rate of Return on Fund Assets 31

PART IV: ENROLLED ACTUARY’S REPORT 32

Normal Cost/Actuarial Liability 33

Actuarial Liability Reconciliation/Projection 34

Funded Ratios 35

Funding Period 36

Current Liability 37

Funding Standard Account 38

Full Funding Limit 39

Minimum Required Contribution and Full Funding Credit 40

Maximum Deductible Contribution 41

History of Unfunded Vested Benefits 42

Termination by Mass Withdrawal 43

ASC 960 Information 44

APPENDICES

Plan Provisions Appendix A

Actuarial Assumptions and Methods Appendix B

Minimum Funding Amortization Bases Appendix C

Summary of Endangered and Critical Status Rules Appendix D

Glossary of Common Pension Terms Appendix E

EXHIBIT 32A BAC 7:344
PART I: SUMMARY OF RESULTS

EXHIBIT 32A BAC 7:345
5 - YEAR SUMMARY OF VALUATION RESULTS

Actuarial Study 

as of May 1, 2018 2017 2016 2015 2014

PPA funded status Crit. and 

Decl.

Crit. and 

Decl.

Crit. and 

Decl.

Crit. and 

Decl.

Critical

Progress under FIP/RP Yes Yes Yes Yes Yes

Improvements restricted* Yes Yes Yes Yes Yes

Funded ratio

PPA certification 30.3% 37.9% 46.7% 50.6% 52.2%

Valuation report (AVA) 29.3% 34.8% 43.9% 49.4% 52.2%

Valuation report (MVA) 28.4% 32.8% 39.6% 48.3% 51.5%

Credit Balance ($ 000) (17,248) (14,196) (11,263) (8,667) (6,522)

Date of first projected funding deficiency

PPA certification 4/30/19 4/30/18 4/30/17 4/30/16 4/30/15 

Valuation report 4/30/19 4/30/18 4/30/17 4/30/16 4/30/15 

Net investment return

On market value 8.60% 10.94% -3.48% 6.72% 8.27%

On actuarial value 4.76% 4.73% 3.50% 7.51% 12.16%

Asset values ($ 000)

Market 11,529 12,894 14,220 17,412 18,342 

Actuarial 11,928 13,704 15,755 17,810 18,585 

Accum. ben. ($ 000) 40,643 39,331 35,892 36,032 35,621

* Benefit improvement restrictions due to fund being in critical status. 

EXHIBIT 32A BAC 7:346
5 - YEAR SUMMARY OF DEMOGRAPHICS

Actuarial Study 

as of May 1, 2018 2017 2016 2015 2014

Participant counts

Active 115 102 126 144 104 

Inactive vested 112 123 117 118 128 

Receiving benefits 214 214 221 221 228 

Total 441 439 464 483 460 

Average entry age 30.4 30.9 32.4 31.4 30.8 

Average attained age 45.1 46.4 45.2 44.4 45.6 

Hours worked in prior plan year (thousands)

Expected hours valuation 95 123 139 102 128

Expected hours PPA cert 90 125 120 128 136

Actual hours worked 114 92 125 144 102

EXHIBIT 32A BAC 7:347
CHANGES FROM PRIOR STUDY

Changes in Plan Provisions

The plan provisions underlying this valuation are the same as those valued last year.

Changes in Actuarial Assumptions and Methods

The actuarial assumptions and methods used in this valuation differ from those used in the 

prior valuation in the following respects:

• The mortality projection scale was updated from MP-2016 to MP-2017 but the mortality 

rate multiplier remained 100%. These changes were made in order to reflect the latest 

mortality improvement data available and to better match the standard tables to specific 

plan experience.

• The ERISA rate of return assumption used to value liabilities was changed from 7.50% 

to 7.00% to provide our best estimate of the future rate of net investment return based 

on the Plan’s current investment policy and asset allocation.

• The current liability interest rate was changed from 3.05% to 2.99%. The new rate is 

within established statutory guidelines.

EXHIBIT 32A BAC 7:348
HISTORY OF MAJOR ASSUMPTIONS

Actuarial Study as of May 1,

Assumption 2018 2017 2016 2015 2014

Future rate of net 

investment return

7.00% 7.50% 7.50% 7.75% 8.00%

Mortality table RP-2014 RP-2014 RP-2014 RP-2000 RP-2000 

Adjustment 100% 100% 140% 1 yr sf 1 yr sf

Projection scale MP-2017 MP-2016 MP-2015 AA AA 

Future expenses $120,000 $120,000 $120,000 $120,000 $120,000

Average future hourly 

contribution rate*

Credited $6.80 $6.80 $6.80 $2.00 $2.00

Non-credited 0.00 0.00 0.00 4.66 4.46

Total $6.80 $6.80 $6.80 $6.66 $6.46

Average future annual hours

Vested 1,100 1,100 1,100 1,100 1,100

Non-vested 650 650 800 800 800

* Actual average derived from application of assumptions specified in Appendix B.

EXHIBIT 32A BAC 7:349
EXPERIENCE VS. ASSUMPTIONS

Actuarial assumptions are used to project certain 

future events related to the pension plan (e.g. 

deaths, withdrawals, investment income, expenses, 

etc.). While actual results for a single plan year will 

rarely match expected experience, it is intended that 

the assumptions will provide a reasonable long term 

estimate of developing experience.

The following table provides a comparison of expected outcomes for the prior plan year with 

the actual experience observed during the same period. This display may provide insight 

as to why the plan’s overall actuarial position may be different from expected.

Plan Year Ending 

April 30, 2018 Expected Actual

Decrements

Terminations 17

less: Rehires 20

Terminations (net of rehires) 6.6 (3)

Retirements 4.7 2

Disabilities 0.0 - 

Deaths - pre-retirement 0.8 1

Deaths - post-retirement 9.8 11

Monthly benefits of deceased retirees $ 9,523 $ 9,861

Financial assumptions

Rate of net investment return on actuarial value 7.50% 4.76%

Administrative expenses $ 120,000 $ 108,525

Other demographic assumptions

Average retirement age from active (new retirees) 59.8 56.7

Average retirement age from inactive (new retirees)* 61.8 63.0

Average entry age (new entrants) 30.9 34.9

Hours worked per vested active 1,100 1,194

Hours worked per non-vested active 650 573

Total hours worked (valuation assumption) 94,700 114,465

Total hours worked (PPA certification assumption) 90,000 114,465

Unfunded liability (gain)/loss

(Gain)/loss due to asset experience $ 342,637

(Gain)/loss due to liability experience (186,836)

Total (gain)/loss $ 155,801

* Expected average based on the average for the total group of participants.

Comparing the prior year’s 

experience to assumptions 

provides indications as to 

why overall results may 

differ from those expected 

EXHIBIT 32A BAC 7:350
PLAN MATURITY

When a new pension plan is first established, its 

liabilities are typically limited to active plan 

participants. However, as people become vested 

and retire, a plan begins to develop liabilities 

attributable to nonactive participants (retirees and 

inactive vested participants). The process of adding 

nonactive liabilities (often referred to as “maturing”) 

is a natural outgrowth of the operation of the plan. As a plan matures, its liabilities tend to 

balloon in relation to its contribution base, making it more difficult to correct for adverse 

outcomes by increasing contribution rates or reducing future benefit accruals.

Headcount ratios show the number of retiree or inactive participants supported by each 

active participant. While there is no hard and fast rule, we generally consider a plan to be 

mature if each active is supporting more than 1 retiree or more than 2 nonactives. A 

negative net cash flow (benefits payments and expenses greater than contributions) can 

also be an indicator of a mature plan. A negative cash flow, when expressed as a 

percentage of assets, in excess of the assumed rate of return on fund assets is not 

sustainable in the long term. 

Actuarial Study 

as of May 1, 2018 2017 2016 2015 2014

Retiree/active headcount ratio 1.86 2.10 1.75 1.53 2.19

Nonactive/active headcount ratio 2.83 3.30 2.68 2.35 3.42

Cash flow

Contr.-ben.-exp. ($000) (2,372) (2,732) (2,632) (2,092) (2,251)

Percent of assets -20.57% -21.19% -18.51% -12.02% -12.27%

Liabilities of Actives, Retirees, and Inactive Vesteds

Total Liabilities: $40,642,848

Measures of plan maturity 

can play a part in 

understanding risk and a 

plan’s ability to recover 

from adverse experience

EXHIBIT 32A BAC 7:351
UNFUNDED VESTED BENEFITS/EMPLOYER WITHDRAWAL LIABILITY

The following table shows a history of the plan’s 

unfunded vested benefits (UVB) required to 

compute a specific employer withdrawal liability 

under the presumptive method. If all unfunded 

vested benefits since the inception of the 

Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) are zero ($0) or less, there 

will be no withdrawal liability assessed to a withdrawing employer. Otherwise, an employer 

may be assessed withdrawal liability payments pursuant to MPPAA. The display does not 

reflect adjustments for prior employer withdrawals.

In accordance with IRC Section 432(e)(9)(A) and PBGC Technical Update 10-3, the impact 

of reducing adjustable benefits is reflected by adding the unamortized portion of the value 

of affected benefits (VAB) to the most recent year’s unfunded vested benefits pool. An 

employer who is assessed withdrawal liability will be assessed a portion of the UVB and the 

VAB.

Presumptive Method ($ 000) 

April 30, 2018 2017 2016 2015 2014

Vested benefits interest 7.00% 7.50% 7.50% 7.75% 8.00%

Vested benefits 40,610 39,295 35,861 35,983 35,571

less: Asset value* 11,928 13,704 15,755 17,810 18,585

UVB 28,682 25,591 20,106 18,173 16,986

Unamortized VAB 930 1,047 1,156 1,257 1,350

UVB + VAB 29,612 26,638 21,262 19,430 18,336

* Actuarial Value

** Includes VAB

An employer withdrawing 

during the coming year may

have withdrawal liability

EXHIBIT 32A BAC 7:352
CONTRIBUTION ALLOCATION

The following allocation charts illustrate how the 

expected contribution rate for the coming plan year 

will be “spent” to pay for benefits being earned in the 

current year, plan expenses, and funding of past 

unfunded liabilities.

Contribution Allocation as of May 1, 2018

Total Average Expected Contribution Rate $6.80

Contribution Allocation as of May 1, 2017

Total Average Expected Contribution Rate $6.80

These graphs show how 

the contributions are

being spent

EXHIBIT 32A BAC 7:353
FUNDING STANDARD ACCOUNT PROJECTION

The funding standard account (FSA) was 

established by ERISA as a means of determining 

compliance with minimum funding standards. 

The FSA is hypothetical in the sense that it does 

not represent actual assets held by a custodian. 

Rather, a positive FSA balance (called a “credit balance”) means that the plan has 

exceeded minimum funding standards on a cumulative basis, while a negative balance 

(called a “funding deficiency”) means that the plan has fallen short of such standards.

Actuaries must project the plan’s credit balance each year in order to determine PPA status. 

If the credit balance is projected to be negative in a future year, the plan could be forced 

into yellow (endangered) or red (critical) status depending how far into the future the 

projected funding deficiency is. The plan’s credit balance projection appears below. These 

projections are based on the assumptions summarized in the “Actuarial Assumptions used 

for Projections” section of Appendix B. 

The funding standard 

account projection is a major 

driver of PPA status

EXHIBIT 32A BAC 7:354
FUNDED RATIO PROJECTION

The funded ratio is defined as the actuarial value 

of plan assets divided by the plan’s liabilities for 

accrued benefits. Along with the funding standard 

account projection, funded ratio is one of the two 

major drivers of PPA funded status. In order for a 

plan to enter the green zone (also called “safe” or “not endangered or critical”) the funded 

ratio must be at least 80%. The projection of the funded ratio appears below. These

projections are based on the assumptions summarized in the “Actuarial Assumptions used 

for Projections” section of Appendix B.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20172018201920202021202220232024202520262027202820292030203120322033203420352036203720382039204020412042

Funded Percentage

Year Beginning

Current year

Last year

The plan’s funded ratio is a 

major driver of PPA status

EXHIBIT 32A BAC 7:355
PPA FUNDING STATUS REPORT

The Pension Protection Act of 2006 (PPA), as amended 

by the Multiemployer Pension Reform Act of 2014 

(“MPRA”), requires all multiemployer pension plans to 

obtain an annual status certification. The possible 

statuses are: “Safe”, “Endangered”, “Seriously 

Endangered”, “Critical” or “Critical and Declining”. As the plan’s actuary, we must complete 

the status certification within 90 days of the beginning of the plan year, and we must also 

certify whether or not the plan has made scheduled progress if its funding improvement or 

rehabilitation period has begun. The criteria for these determinations are outlined in 

Appendix D. Due to the timing requirement affecting PPA certifications, they are performed 

based on data and assumptions different from that used in this report (see certification letter 

for additional details). These projections are based on the assumptions summarized in the 

“Actuarial Assumptions used for Projections” section of Appendix B. The results are 

summarized below. 

Description

Values Used for PPA Certification

2018 2017

Funded ratio 30.3% 37.9%

Date of first projected funding deficiency 4/30/2019 4/30/2018

Year of projected insolvency (PYB) 2022 2022

Certified PPA status Critical and 

Declining

Critical and 

Declining

Making progress under FIP/RP Yes Yes

Projected PPA Status

The plan is in Critical 

and Declining status for 

2018

EXHIBIT 32A BAC 7:356
ULTIMATE FUNDED STATUS

An actuarial valuation deals primarily with the ability 

of the plan to meet Internal Revenue Code 

requirements now and in the near future. As such, it 

is heavily focused on current plan assets and 

liabilities. But it is also important to keep in mind the 

true purpose of the plan funding—that is, to accumulate sufficient assets to pay the benefits 

that the plan has promised to its participants. The chart below looks at this long-term 

funding adequacy. To the current plan assets we add the present value of all future 

contributions expected to be made for the current plan participants. To the value of the 

plan’s liabilities for benefits that have been previously earned we add the present value of 

all the future benefits the current plan participants are expected to earn through their future 

service. Ideally these ultimate asset and liability values will be approximately equal.

Neither of these amounts reflect the effect of future new participants or future contribution 

rate increases to the plan. Generally new entrants generate greater future contributions 

than benefits, so they represent a net positive to the actual future funding shown here. 

Ultimate funded status is a 

snapshot measure of 

contribution sufficiency

EXHIBIT 32A BAC 7:357

PART II: SUPPLEMENTAL STATISTICS

EXHIBIT 32A BAC 7:359
PARTICIPANT DATA RECONCILIATION

The participant data reconciliation table below provides information as to how the plan’s 

covered population changed since the prior actuarial study. Such factors as the number of 

participants retiring, withdrawing and returning to work have an impact on the actuarial 

position of the pension fund.

Participants 

Valued As Active

Inactive 

Vested

Receiving 

Benefits

Total 

Valued

May 1, 2017 102 123 214 439

Change due to:

New hire 13 - - 13

Rehire 20 (8) - 12

Termination (17) 5 - (12)

Disablement - - - - 

Retirement (2) (8) 10 - 

Death (1) - (11) (12)

Cash out - - - - 

New beneficiary - - 1 1

Certain pd. expired - - - - 

Data adjustment - - - - 

Net change 13 (11) - 2

May 1, 2018 115 112 214 441

EXHIBIT 32A BAC 7:360
HOURS WORKED DURING PLAN YEAR

Hours Worked Per Participant

Plan Year Ending 

April 30, 2018 Number Hours Worked

Average 

Hours Worked

Actives

Vested 71 84,763 1,194

Non-vested, continuing 31 14,043 453

Non-vested, new entrant 13 11,176 860

Total active 115 109,982 956

Others 40 4,483 112

Total for plan year 155 114,465 738

History of Total Actual and Expected Hours Worked (Thousands)

Plan Year Ending 

April 30, 2019 2018 2017 2016 2015

Expected hours valuation 103 95 123 139 102

Expected hours PPA cert 90 90 125 120 128

Actual hours worked n/a 114 92 125 144

History of Average Actual and Expected Hours Worked per Participant

EXHIBIT 32A BAC 7:361
CONTRIBUTIONS MADE DURING PLAN YEAR

Employer Credited Contributions Reported in Employee Data

Plan Year Ending 

April 30, 2018 Number

Credited 

Contributions 

Reported

Actives

Vested 71 $ 538,149

Non-vested, continuing 31 94,250

Non-vested, new entrant 13 63,214

Total valued as active 115 695,613

Others 40 29,401

Total for plan year 155 $ 725,014

Average credited hourly contribution rate $ 6.33

Comparison with Audited Employer Contributions

Employer credited contributions reported in data $ 725,014

Total audited employer contributions $ 749,475

Percent reported 97%

History of Actual and Expected Total Contributions Received

EXHIBIT 32A BAC 7:362

INACTIVE VESTED INFORMATION

Inactive Vested Participants by Age as of May 1, 2018

Age Group Number

Estimated Monthly 

Deferred Vested 

Benefits*

< 30 1 $ 90

30-34 2 214

35-39 4 1,782

40-44 17 13,893

45-49 23 26,757

50-54 28 30,343

55-59 15 20,130

60-64 14 9,519

65-69 7 2,076

70+ 1 66

Totals 112 104,870

Unrecorded birth date - - 

Total inactive vested lives 112 $ 104,870

* Amount payable at assumed retirement age as used in the valuation process.

EXHIBIT 32A BAC 7:364
RETIREE INFORMATION

Benefits Being Paid by Form of Payment as of May 1, 2018

Monthly Benefits Being Paid

Form of Payment Number Total Average Smallest Largest

Life only* 94 $ 117,337 $ 1,248 $ 49 $ 3,949

Joint & survivor 73 108,730 1,489 40 5,665

Disability - - - - - 

Beneficiaries 47 22,454 478 17 2,196

Totals 214 $ 248,521 $ 1,161 $ 17 $ 5,665

Retirees by Age and Form of Payment as of May 1, 2018

Form of Benefits Being Paid

Age

Group

Life

Only*

Joint & 

Survivor Disability Beneficiaries Total

< 40 - - - - - 

40-44 - - - - - 

45-49 - - - - - 

50-54 - - - - - 

55-59 9 - - - 9

60-64 9 7 - 3 19

65-69 19 18 - 6 43

70-74 17 9 - 4 30

75-79 15 19 - 7 41

80-84 11 15 - 16 42

85-89 11 3 - 7 21

90-94 3 2 - 4 9

95+ - - - - - 

Totals 94 73 - 47 214

* Includes retirees receiving life and certain benefits.

EXHIBIT 32A BAC 7:365
RETIREE INFORMATION (CONT.)

Age of Participants Retired During Last 5 Plan Years

(excludes beneficiaries and disability retirements)

Age at Plan Year Ending April 30,

Retirement 2018 2017 2016 2015 2014

< 55 - - - - - 

55 1 - 2 - 1

56 1 - - - 1

57 - 1 1 - - 

58 2 - - - 1

59 - 1 1 - 1

60 - - - - 1

61 1 - - - - 

62 1 1 - 1 4

63 1 - - - 1

64 - - - - - 

65 1 1 2 - 2

66+ 2 - 1 4 1

Totals 10 4 7 5 13

Average 

retirement age 61.7 60.9 60.8 67.5 61.4

EXHIBIT 32A BAC 7:366
PART III: ASSET INFORMATION

EXHIBIT 32A BAC 7:367
MARKET AND ACTUARIAL FUND VALUES

Asset information extracted from the fund’s financial statements audited by Yurchyk & Davis 

CPA's, Inc. 

Market/Actuarial Value 

of Fund Investments

as of April 30, 2018 2017 2016

Invested assets

Common stocks $ 3,705,181 $ 4,138,998 $ 3,068,148

Exchange traded funds 3,021,055 3,644,936 6,090,816

Mutual Funds 2,892,040 3,396,334 4,033,970

Corporate bonds 416,039 269,992 312,475

US government securities 683,844 299,408 386,380

Money market funds 98,335 131,556 178,198

Cash 583,413 946,881 391,140

Prepaid assets 12,192 1,666 2,440

11,412,099 12,829,771 14,463,567

Net receivables* 116,740 64,052 (243,915)

Market value $ 11,528,839 $ 12,893,823 $ 14,219,652

Fund assets - Actuarial value 

Market value $ 11,528,839 $ 12,893,823 $ 14,219,652

less: Deferred investment

gains and (losses) (398,972) (809,729) (1,535,433)

Actuarial value $ 11,927,811 $ 13,703,552 $ 15,755,085

Actuarial value as a 

percentage of market value 103.46% 106.28% 110.80%

* Equals receivables, less any liabilities

EXHIBIT 32A BAC 7:368
FLOW OF FUNDS

Asset information extracted from the fund’s financial statements audited by Yurchyk & Davis 

CPA's, Inc. 

Plan Year Ending 

April 30, 2018 2017 2016

Market value at beginning of

plan year $ 12,893,823 $ 14,219,652 $ 17,411,864

Additions

Employer contributions 749,475 604,875 772,854

Net investment income* 1,006,939 1,406,103 (560,217)

Other income - - - 

1,756,414 2,010,978 212,637

Deductions

Benefits paid 3,012,873 2,995,691 3,157,388

Net expenses* 108,525 341,116 247,461

3,121,398 3,336,807 3,404,849

Net increase (decrease) (1,364,984) (1,325,829) (3,192,212)

Adjustment - - - 

Market value at end of

plan year $ 11,528,839 $ 12,893,823 $ 14,219,652

Cash flow

Contr.-ben.-exp. (2,371,923) (2,731,932) (2,631,995)

Percent of assets -20.57% -21.19% -18.51%

Estimated net investment return

On market value 8.60% 10.94% -3.48%

On actuarial value 4.76% 4.73% 3.50%

* Investment expenses have been offset against gross investment income.

EXHIBIT 32A BAC 7:369
INVESTMENT GAIN AND LOSS

Investment Gain or Loss

Plan Year Ending April 30, 2018

Expected market value at end of plan year

Market value at beginning of plan year $ 12,893,823

Employer contributions and non-investment income 749,475

Benefits and expenses paid (3,121,398)

Expected investment income (at 7.50% rate of return) 878,090

11,399,990

Actual market value at end of plan year 11,528,839

less: Expected market value 11,399,990

Investment gain or (loss) $ 128,849

History of Gains and (Losses)

Plan Year Investment

Ending Gain

April 30, or (Loss)

2018 $ 128,849

2017 442,077

2016 (1,807,647)

2015 (221,192)

2014 48,372

Deferred Investment Gains and (Losses)

Plan Year

Ending Amount of Gain or (Loss) Deferred as of April 30,

April 30, 2018 2019 2020 2021

2018 $ 103,079 $ 77,309 $ 51,540 $ 25,770

2017 265,246 176,831 88,415 - 

2016 (723,059) (361,529) - - 

2015 (44,238) - - - 

Totals $ (398,972) $ (107,389) $ 139,955 $ 25,770

EXHIBIT 32A BAC 7:370
RATE OF RETURN ON FUND ASSETS

Historical Rates of Net Investment Return

Average Rates of Net Investment Return (dollar weighted)

Return on Market Value Return on Actuarial Value

Period Ending April 30, Period Ending April 30,

Period 2018 2017 2018 2017

One year 8.60% 10.94% 4.76% 4.73%

5 years 5.92% 6.29% 7.01% 6.25%

10 years 4.12% 2.92% 3.14% 3.48%

15 years 5.03% 4.24% 3.15% 2.57%

20 years 2.94% 4.66% 4.48% 5.20%

EXHIBIT 32A BAC 7:371
PART IV: ENROLLED ACTUARY’S REPORT

EXHIBIT 32A BAC 7:372

ACTUARIAL LIABILITY RECONCILIATION/PROJECTION

Reconciliation of Unfunded Actuarial Liability

Expected unfunded actuarial liability as of April 30, 2018

Unfunded actuarial liability as of May 1, 2017 $ 25,627,845

Normal cost (including expenses) 203,918

Actual contributions (749,475)

Interest to end of plan year 1,909,278

26,991,566

Increase (decrease) due to:

Experience (gain) or loss 155,801

Plan amendment - 

Change in actuarial assumptions 1,567,670

Change in actuarial method - 

Net increase (decrease) 1,723,471

Unfunded actuarial liability as of May 1, 2018 $ 28,715,037

Projection of Actuarial Liability to Year End

Actuarial liability as of May 1, 2018 $ 40,642,848

Expected increase (decrease) due to:

Normal cost (excluding expenses) 98,361

Benefits paid (3,172,095)

Interest on above (104,138)

Interest on actuarial liability 2,844,999

Net expected increase (decrease) (332,873)

Expected actuarial liability as of April 30, 2019 $ 40,309,975

EXHIBIT 32A BAC 7:374
FUNDED RATIOS

Present Value of Accumulated Benefits/

Funded Ratios

Actuarial Study as of May 1, 2018 2017

Present value of vested accumulated benefits

Participants currently receiving benefits $ 25,785,852 $ 24,780,991

Inactive vested participants 8,094,647 7,953,698

Active participants 6,729,304 6,559,821

Total 40,609,803 39,294,510

Nonvested accumulated benefits 33,045 36,887

Present value of all accumulated benefits $ 40,642,848 $ 39,331,397

Market value of assets $ 11,528,839 $ 12,893,823

Funded ratios (Market value)

Vested benefits 28.4% 32.8%

All accumulated benefits 28.4% 32.8%

Actuarial value of assets $ 11,927,811 $ 13,703,552

Funded ratios (Actuarial value used for PPA)

Vested benefits 29.4% 34.9%

All accumulated benefits 29.3% 34.8%

Interest rate used to value benefits 7.00% 7.50%

EXHIBIT 32A BAC 7:375
FUNDING PERIOD

The funding period is the approximate number of years that would be required to completely 

fund the unfunded entry age normal actuarial liability if future plan experience occurs 

according to the assumptions. The funding period is an indicator of the long term financial 

soundness of the plan. Historically, funds often targeted a maximum funding period of up to 

20 years. Today, asset losses are being paid off over a maximum of 15 years and are the 

primary driver for ERISA minimum funding. An ultimate target of no more than 10 years is 

recommended. A lower, more conservative funding period target can be chosen. As the 

funding period drops, the risk of having future funding issues also diminishes.

Funding Period Calculation 

Actuarial Study as of May 1, 2018 2017

Unfunded actuarial liability

Actuarial liability $ 41,007,942 $ 39,643,298

less: Fund assets (actuarial value) 11,927,811 13,703,552

29,080,131 25,939,746

Funds available to amortize unfunded

Anticipated contributions (beg. of yr.) 679,343 620,684

less: Normal cost (including expenses) 169,050 163,705

$ 510,293 $ 456,979

Funding period (years) * * 

* Anticipated contributions are insufficient to pay normal cost and amortize unfunded liability.

EXHIBIT 32A BAC 7:376

FUNDING STANDARD ACCOUNT

Funding Standard Account

Plan Year Ending April 30, 

2019

(Projected)

2018

(Final)

Charges

Prior year funding deficiency $ 17,247,928 $ 14,196,059

Normal cost (including expenses) 214,303 203,918

Amortization charges (see Appendix C) 3,336,101 3,650,163

Interest on above 1,455,884 1,353,758

Total charges 22,254,216 19,403,898

Credits

Prior year credit balance - - 

Employer contributions 612,000 749,475

Amortization credits (see Appendix C) 1,210,045 1,282,223

Interest on above 106,121 124,272

ERISA full funding credit - - 

Total credits 1,928,166 2,155,970

Credit balance (credits less charges) $ (20,326,050) $ (17,247,928)

EXHIBIT 32A BAC 7:378
FULL FUNDING LIMIT

Projection of Assets 

for Full Funding Limit

Market

Value

Actuarial

Value

Asset value as of May 1, 2018 $ 11,528,839 $ 11,927,811

Expected increase (decrease) due to:

Investment income 691,795 719,723

Benefits paid (3,172,095) (3,172,095)

Expenses (120,000) (120,000)

Net expected increase (decrease) (2,600,300) (2,572,372)

Expected value as of April 30, 2019* $ 8,928,539 $ 9,355,439

* Ignoring expected employer contributions (as required by regulation).

Full Funding Limit 

as of April 30, 2019

For Minimum 

Required

For Maximum 

Deductible

ERISA full funding limit (not less than 0)

Actuarial liability $ 40,309,975 $ 40,309,975

less: Assets (lesser of market or actuarial) 8,928,539 8,928,539

plus: Credit balance (w/interest to year end) - n/a

31,381,436 31,381,436

Full funding limit override 

(not less than 0)

90% of current liability 57,843,613 57,843,613

less: Assets (actuarial value) 9,355,439 9,355,439

48,488,174 48,488,174

Full funding limit (greater of ERISA limit 

and full funding override) $ 48,488,174 $ 48,488,174

EXHIBIT 32A BAC 7:379
MINIMUM REQUIRED CONTRIBUTION AND FULL FUNDING CREDIT

Minimum Required Contribution

Plan Year Beginning May 1, 2018

Minimum funding cost

Normal cost (including expenses) $ 214,303

Net amortization of unfunded liabilities 2,126,056

Interest to end of plan year 163,828

2,504,187

Full funding limit 48,488,174

Net charge to funding std. acct. (lesser of above) 2,504,187

less: Credit balance with interest to year end (18,455,283)

Minimum Required Contribution (not less than 0)* $ 20,959,470

Full Funding Credit to Funding Standard

Account Plan Year Ending April 30, 2019

Full funding credit (not less than 0)

Minimum funding cost (n.c., amort., int.) $ 2,504,187

less: full funding limit 48,488,174

$ - 

* For plans in critical status, the excise tax for failure to meet minimum funding requirements is waived 

assuming the provisions of the rehabilitation plan continue to be met.

EXHIBIT 32A BAC 7:380
MAXIMUM DEDUCTIBLE CONTRIBUTION

The maximum amount of tax-deductible employer contributions made to a pension plan is 

determined in accordance with Section 404(a) of the Internal Revenue Code. For a 

multiemployer pension plan, Section 413(b)(7) of the Internal Revenue Code and IRS 

Announcement 98-1 provide that, if anticipated employer contributions are less than the 

deductible limit for a plan year, then all employer contributions paid during the year are 

guaranteed to be deductible. If anticipated employer contributions exceed the deductible 

limit, the Trustees have two years from the close of the plan year in question to retroactively 

improve benefits to alleviate the problem. 

Maximum Deductible Contribution

Plan Year Beginning May 1, 2018

Preliminary deductible limit

Normal cost (including expenses) $ 214,303

10-year limit adjustment (using “fresh start” alternative) 3,820,911

Interest to end of plan year 282,465

4,317,679

Full funding limit 48,488,174

Maximum deductible contribution override

140% of vested current liability projected to April 30, 2019 89,855,726

less: Actuarial value of assets projected to April 30, 2019 9,355,439

80,500,287

Maximum deductible contribution* $ 80,500,287

Anticipated employer contributions $ 703,120

* Equals the lesser of the preliminary deductible limit and the full funding limit, but not less than the 

maximum deductible contribution override.

EXHIBIT 32A BAC 7:381
HISTORY OF UNFUNDED VESTED BENEFITS

Presumptive Method

April 30, 

Vested 

Benefits

Interest Rate

Value of 

Vested 

Benefits Asset Value*

Unfunded 

Vested 

Benefits

Unamortized 

Portion of

VAB

1999 8.00% 21,320,239 26,730,714 (5,410,475)

2000 8.00% 24,445,204 29,343,521 (4,898,317)

2001 8.00% 26,000,291 31,034,213 (5,033,922)

2002 8.00% 27,902,578 30,715,460 (2,812,882)

2003 8.00% 30,036,998 29,281,868 755,130

2004 8.00% 30,928,911 29,168,067 1,760,844

2005 8.00% 32,289,274 27,881,442 4,407,832

2006 8.00% 33,853,627 27,199,546 6,654,081

2007 8.00% 33,998,097 27,255,918 6,742,179

2008 8.00% 34,672,083 27,249,628 7,422,455

2009 8.00% 35,484,548 21,019,994 14,464,554 1,722,031

2010 8.00% 34,484,817 23,588,308 10,896,509 1,658,609

2011 8.00% 34,740,407 22,054,814 12,685,593 1,590,114

2012 8.00% 35,419,483 20,236,556 15,182,927 1,516,139

2013 8.00% 35,456,723 18,693,990 16,762,733 1,436,246

2014 8.00% 35,571,497 18,584,838 16,986,659 1,349,962

2015 7.75% 35,983,111 17,809,726 18,173,385 1,256,775

2016 7.50% 35,861,466 15,755,085 20,106,381 1,156,132

2017 7.50% 39,294,510 13,703,552 25,590,958 1,047,439

2018 7.00% 40,609,803 11,927,811 28,681,992 930,050

* Actuarial Value

EXHIBIT 32A BAC 7:382
TERMINATION BY MASS WITHDRAWAL

If all employers were to cease to have an obligation to contribute to the plan, the plan would 

be considered “terminated due to mass withdrawal.” In this event, the Trustees would have 

the option of distributing plan assets in satisfaction of all plan liabilities through the purchase 

of annuities from insurance carriers or payment of lump sums. If assets are insufficient to 

cover liabilities, a special actuarial valuation pursuant to Section 4281 of ERISA would be 

performed as of the end of the plan year in which the mass withdrawal occurred. If the 

Section 4281 valuation indicates the value of nonforfeitable benefits exceeds the value of 

plan assets, employer withdrawal liability would be assessed.

The ERISA Section 4281 valuation described above uses required actuarial assumptions 

that are typically more conservative than those used for valuing an on-going plan. In order 

to illustrate the impact of the mass withdrawal assumptions, we performed an illustrative 

Section 4281 valuation as if mass withdrawal had occurred during the prior plan year. The 

value of assets used below is market value without any adjustments for outstanding 

employer withdrawal liability claims. 

As required by regulation, interest rates of 2.27% for the first 20 years and 2.59% for each 

year thereafter and the GAM 94 Basic Mortality Table projected to 2028 were used.

Illustrative Section 4281 Valuation

as of April 30, 2018

Value of nonforfeitable benefits

Participants currently receiving benefits $ 38,276,242

Inactive vested participants 17,845,468

Active participants 13,676,818

Expenses (per Section 4281 of ERISA) 421,385

70,219,913

less: Fund assets (market value) 11,528,839

Value of nonforfeitable benefits in excess of (less than) fund assets $ 58,691,074

EXHIBIT 32A BAC 7:383
ASC 960 INFORMATION

The following displays are intended to assist the fund’s auditor in complying with Accounting 

Standards Codification 960. The results shown are not necessarily indicative of the plan’s 

potential liability upon termination.

Present Value of Accumulated Benefits

Actuarial Study as of May 1, 2018 2017*

Present value of vested accumulated benefits

Participants currently receiving benefits $ 25,785,852 $ 24,780,991

Expenses on parts. currently rec. benefits 1,933,939 1,858,574

Other participants 14,823,951 14,513,519

Expenses on other participants 1,111,796 1,088,514

43,655,538 42,241,598

Present value of nonvested accumulated benefits

Nonvested accumulated benefits 33,045 36,887

Expenses on nonvested benefits 2,478 2,767

35,523 39,654

Present value of all accumulated benefits $ 43,691,061 $ 42,281,252

Market value of plan assets $ 11,528,839 $ 12,893,823

Interest rate used to value benefits 7.00% 7.50%

Changes in Present Value of Accumulated Benefits

Present value of accumulated benefits as of May 1, 2017* $ 42,281,252

Increase (decrease) due to:

Plan amendment - 

Change in actuarial assumptions 1,685,244

Benefits accumulated and experience gain or loss (325,131)

Interest due to decrease in discount period 3,171,094

Benefits paid (3,012,873)

Operational expenses paid (108,525)

Net increase (decrease) 1,409,809

Present value of accumulated benefits as of May 1, 2018 $ 43,691,061

* The 2017 present value of accumulated benefits (PVAB) column has been restated from the

2017 valuation to include an operational expense load of 7.50%. This change resulted in an increase of 

$2,949,855 to the 2017 PVAB.

EXHIBIT 32A BAC 7:384
APPENDICES

EXHIBIT 32A BAC 7:385
PLAN HISTORY

Origins/Purpose

The Bricklayers and Masons Local Union No. 7 Pension Plan was established effective 

February 1, 1968 as a result of a Collective Bargaining Agreement between the 

Associated General Contractors of America, Akron Chapter, the General Contractors 

Association of Akron and Akron Masons Contractors Association and the Bricklayers’ 

and Masons’ Local No. 7, Ohio of Bricklayers, Masons and Plasterers International 

Union of America. The Bricklayers’ and Masons Local No. 23 became a Participating 

Union under the Plan as of July 1, 1969 and the Bricklayers’ and Masons’ Local No. 13 

became a Participating Union under the Plan as of April 22, 1970. Both Locals have 

since merged into Local No. 7.

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management.

The purpose of the pension plan is to provide Normal and Early Retirement Benefits, 

Joint and Survivor Benefits, Deferred Vested Benefits and Death benefits. Benefits first 

became payable on February 1, 1968.

Employer Contributions

The Pension Plan is financed entirely by contributions from the employers as specified in 

the Collective Bargaining Agreements. The history of recent hourly contribution rates is 

shown in the following table:

Effective Date Hourly Contribution Rate *

May 1, 1979 $ 0.80

June 1, 1981 1.05

June 19, 1982 1.25

June 1, 1983 2.00

June 1, 1984 3.00

June 1, 1990 3.27

June 1, 1996 3.30

June 1, 2006 3.55

June 1, 2007 4.01

Sept. 1, 2008 4.41

June 1, 2009 4.81

June 1, 2010 5.21

June 1, 2011 5.61

June 1, 2012 6.01

June 1, 2013 6.41

June 1, 2014 6.46

June 1, 2015 6.66

June 1, 2016 6.80

* Effective May 1, 2006 to April 30, 2016, $2.00 of the hourly rate will be used to 

calculate benefits.

Reciprocity

The Trustees have entered into various money follows the man reciprocity agreements 

whereby a participant who transfers employment between signatories to such 

agreements will not lose pension credits.

EXHIBIT 32A BAC 7:386
SUMMARY OF PLAN PROVISIONS

Participation May 1 following completion of 435 hours during a twelve 

consecutive month period, or prior November 1, if earlier.

Year of service Plan year with at least 435 hours.

Break in service Plan year with less than 435 hours.

Forfeited service A non-vested participant with a number of consecutive 

breaks in service equaling the greater of 5 or his years of 

service. A vested participant cannot forfeit his years of 

service.

Normal retirement benefit

Eligibility Age 62 and 5 years of service or, if earlier, age 65 and 5 

years of participation.

Monthly amount $1.00 per year of past service plus 4.10% of employer 

contributions made on and after February 1, 1968 and 

before May 1, 2003; plus 3.00% of employer contributions 

made on and after May 1, 2003 and before May 1, 2005; 

plus 1.00% of employer contributions made on and after 

May 1, 2005 and before May 1, 2006; plus 1.00% of 

$2.00 of employer contributions made on and after May 1, 

2006 and before May 1, 2016; plus 0.30% of the first 

$6.66 and 1.0% of contributions over $6.66 for employer 

contributions made on and after May 1, 2016. 

Payable for life.

Early retirement benefit

Eligibility Age 55 and 10 years of service.

Monthly amount Normal, reduced by .5833% for each month under age 

62. Payable for life.

* Normal, reduced by 1/3 of 1% for each month under age 

62 for benefits of participants who were at least age 55 

and had at least 10 years of service on May 1, 2009.

Optional forms of 

payment

• 60 month certain and life

• Joint and 50% survivor*

• Joint and 75% survivor*

• Joint and 100% survivor*

* If spouse pre-deceases participant, amount in pay 

status pops-up to amount that would have been 

payable if the participant had not elected the joint and 

survivor. The pop-up feature is not subsidized.

EXHIBIT 32A BAC 7:387
SUMMARY OF PLAN PROVISIONS (CONTINUED) 

Total and permanent 

disability benefit

Eligibility No longer available as of May 1, 2009.

Deferred vested benefit

Eligibility 5 years of service, termination of covered employment.

Monthly amount 100% of normal, payable at normal or at early with 

reduction. Payable for life.

Pre-retirement surviving 

spouse benefit *

Eligibility Death of participant with eligible spouse after becoming 

eligible for, but prior to, retirement.

Monthly amount 50% of participant’s joint and 50% survivor annuity 

payable to spouse for life commencing the first day of the 

month following participant’s death.

Eligibility Death of participant with eligible spouse prior to earliest 

retirement age.

Monthly amount 50% of participant’s joint and 50% survivor annuity 

payable to spouse for life commencing at participant’s 

earliest retirement date.

* The cost of the pre-retirement surviving spouse benefit 

is paid by the participant.

Pre-retirement 5 year 

certain death benefit

Eligibility Benefit eliminated for deaths on or after May 1, 2009, 

effective May 1, 2009.

EXHIBIT 32A BAC 7:388
RECENT PLAN MODIFICATIONS

Future service benefit 

Effective date May 1, 1996

Adoption date December 6, 1996

Provisions The future service benefit accrual rate was increased 

from 3.20% to 3.30% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1996. The increase applies to active participants 

as well as inactive vested participants.

Thirteenth check

Effective date January 1, 1997

Adoption date December 11, 1997

Provisions Participants receiving benefits received a one-time 13th

check equal to the full amount of the monthly benefit or 

$100, whichever is greater.

Vesting schedule

Effective date May 1, 1997

Adoption date June 4, 1997

Provisions Vesting changed from a 5/10-year graded schedule to a 

5-year cliff schedule for active participants who work one 

hour after the effective date.

Future service benefit 

Effective date May 1, 1997

Adoption date March 6, 1998

Provisions The future service benefit accrual rate was increased 

from 3.3% to 3.85% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1997. The increase applies to active participants 

only.

EXHIBIT 32A BAC 7:389
RECENT PLAN MODIFICATIONS (CONTINUED) 

Retiree increase

Effective date May 1, 1997

Adoption date March 6, 1998

Provisions The monthly benefits being paid to retirees who retired 

prior to May 1, 1997 were increased 5%.

Future service benefit 

Effective date May 1, 1998

Adoption date December 4, 1998

Provisions The future service benefit accrual rate was increased 

from 3.85% to 4.05% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1998. The increase applies to active participants 

only.

Retiree increase

Effective date May 1, 1998

Adoption date December 4, 1998

Provisions The monthly benefits being paid to retirees who retired 

prior to May 1, 1998 were increased 4%, with a minimum 

of $10.

Thirteenth check

Effective date December 1, 1998

Adoption date December 4, 1998

Provisions Participants receiving benefits received a one-time 13th

check equal to the full amount of the monthly benefit or 

$50, whichever is greater.

EXHIBIT 32A BAC 7:390
RECENT PLAN MODIFICATIONS (CONTINUED) 

Normal retirement age

Effective date May 1, 1997

Adoption date March 5, 1999

Provisions Normal retirement age was changed from age 62 and 10 

years of service to age 62 and 5 years of service.

Future service benefit 

Effective date May 1, 1999

Adoption date February 24, 2000

Provisions The future service benefit accrual rate was increased 

from 4.05% to 4.10% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1999. The increase applies to active participants 

only.

Retiree increase

Effective date May 1, 1999

Adoption date February 24, 2000

Provisions The monthly benefits being paid to retirees who retired 

prior to May 1, 1999 were increased 5%, with a minimum 

of $10.

Early retirement factor

Effective date May 1, 1999

Adoption date February 24, 2000

Provisions The early retirement factor was changed from 1⁄2 of 1% to 

1/3 of 1% for each month under age 62 for participants 

who earn at least one hour of service on or after 

May 1, 1999.

EXHIBIT 32A BAC 7:391
RECENT PLAN MODIFICATIONS (CONTINUED) 

Thirteenth check

Effective date December 1, 1999

Adoption date February 24, 2000

Provisions Participants receiving benefits received a one-time 13th

check equal to one-half the amount of the monthly benefit 

or $50, whichever is greater.

Joint and 100% Option

Effective date January 1, 2000

Adoption date February 24, 2000

Provisions A Joint and 100% survivor option was added.

Future service benefit

Effective date May 1, 2003

Adoption date January 10, 2003

Provisions The future service benefit accrual rate was decreased 

from 4.10% to 3.00% for employer contributions made 

after May 1, 2003 for participants who retire or become 

disabled on or after May 1, 2003. The decrease applies 

to active participants only.

Future service benefit

Effective date May 1, 2005

Adoption date February 11, 2005

Provisions The future service benefit accrual rate was decreased 

from 3.00% to 1.00% for employer contributions made 

after May 1, 2005 for participants who retire or become 

disabled on or after May 1, 2005. The decrease applies 

to active participants only.

EXHIBIT 32A BAC 7:392
RECENT PLAN MODIFICATIONS (CONTINUED) 

Future service benefit

Effective date May 1, 2006

Adoption date March 10, 2006

Provisions The future service benefit accrual rate was increased 

from 1.00% to 1.50% for employer contributions made 

after May 1, 2006, but only $3.00 of the hourly 

contribution rate will be used to calculate benefits. The 

decrease applies to active participants who retire or 

become disabled on or after May 1, 2006. 

Future service benefit

Effective date May 1, 2006

Adoption date April 7, 2006

Provisions The future service benefit accrual rate was decreased 

from 1.50% of $3.00 to 0.00% for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The decrease 

applies to active participants only.

Future service benefit

Effective date May 1, 2006

Adoption date May 5, 2006

Provisions The future service benefit accrual rate was increased 

from 0.00% to 1.00% of $2.00 for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The increase 

applies to active participants only.

Optional form of benefit

Effective date January 1, 2008

Adoption date September 7, 2007

Provisions A qualified joint and 75% benefit option was added.

EXHIBIT 32A BAC 7:393
RECENT PLAN MODIFICATIONS (CONTINUED) 

Early retirement factor

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The early retirement factor was changed from 1/3 of 1% 

to .5833% for each month under age 62. Participants who 

are at least age 55 and have at least 10 years of service 

on May 1, 2009 will use the 1/3 of 1% reduction.

60 month guarantee postretirement death benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The 60 month guarantee post-retirement death benefit is 

removed for participants not yet in pay status on May 1, 

2009.

Pre-retirement 5 year 

certain death benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The pre-retirement 5 year certain death benefit is 

removed for deaths after May 1, 2009.

Total and permanent 

disability benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The total and permanent disability benefit is eliminated for 

disabilities after May 1, 2009. 

Pre-retirement surviving 

spouse benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The cost is paid by the participant.

EXHIBIT 32A BAC 7:394
RECENT PLAN MODIFICATIONS (CONTINUED) 

Future service benefit

Effective date May 1, 2016

Adoption date March 10, 2016

Provisions The future service benefit accrual rate was increased 

from 1.00% of first $2.00 of employer contributions to 

0.3% of the first $6.66 of employer contributions plus 1% 

of any amount above $6.66 for contributions made on and 

after May 1, 2016.

EXHIBIT 32A BAC 7:395
ACTUARIAL ASSUMPTIONS

The following assumptions are used throughout this report except as specifically noted 

herein.

Valuation date May 1, 2018

Interest rates

ERISA rate of return 

used to value liabilities

7.00% per year net of investment expenses.

Current liability 2.99% (in accordance with Section 431(c)(6) of the 

Internal Revenue Code). 

Operational expenses $120,000 per future year. For the present value of 

expenses for ASC 960, a 7.50% load was applied to the 

ASC 960 liabilities. This load was calculated by taking 3 

years of actual expenses divided by 3 years of actual 

benefit payments.

Mortality

Assumed plan mortality 100% of the RP-2014 Blue Collar Mortality Tables for 

employees and healthy annuitants adjusted backward to 

2006 with the MP-2014 projection scale and projected 

forward using the MP-2017 projection scale.

Current liability Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males 

and females as required by Section 431(c)(6) of the 

Internal Revenue Code.

Future retirement rates

Active lives When eligible and according to the following schedule:

Age

Retirement

Rate

55 .15

56-57 .05

58 .10

59 .20

60 .30

61 .40

62+ 1.00

Resulting in an average expected retirement age of 60.2.

Inactive vested lives If terminated prior to 5/1/99, later of normal retirement age 

or age on valuation date. If terminated after 5/1/99, later 

of age 59 or age on valuation date.

EXHIBIT 32A BAC 7:396
ACTUARIAL ASSUMPTIONS (CONTINUED) 

Withdrawal T-8 Turnover Table from The Actuary’s Pension 

Handbook (less GAM 51) adjusted after age 49 - 

specimen rates shown below: Assumed rate during 

second year of employment is 35%* and 20% for next 

year.

Age

. Withdrawal

Rate

25 .1162

30 .1121

35 .1055

40 .0940

45 .0754

50 .0531

55 .0190

60 .0100

62 .0100

* All newly reported participants are considered to have 

already worked their first year of employment. 

Future annual work hours 

Vested lives

Non-Vested lives

1,100 hours, 0 after assumed normal retirement age.

 650 hours, 0 after assumed normal retirement age.

Future hourly contribution 

rate

$6.80

Age of participants with 

unrecorded birth dates

Based on average entry age of participants with recorded 

birth dates and same vesting status.

Spouse assumptions

Optional form assumption

100% assumed married with the male spouse 3 years 

older than his wife.

All non-retired participants assumed to elect the life only 

form of benefit.

Inactive vested lives over 

age 70

Continuing inactive vested participants over age 70 are 

assumed deceased and are not valued.

EXHIBIT 32A BAC 7:397
ACTUARIAL ASSUMPTIONS (CONTINUED) 

QDRO benefits Benefits to alternate payee included with participant’s 

benefit until payment commences.

Section 415 limit 

assumptions

Dollar limit $220,000 per year.

Assumed form of 

payment for those limited 

by Section 415

Qualified joint and 100% survivor annuity.

Benefits not valued Pre-retirement death benefits following withdrawal or 

disability for active participants.

EXHIBIT 32A BAC 7:398
RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS

The non prescribed actuarial assumptions were selected to provide a reasonable long 

term estimate of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for 

the selection of each non-prescribed assumption that has a significant effect on the 

valuation results.

ERISA rate of return used 

to value liabilities

Future rates of return were modeled based on the Plan’s 

current investment policy asset allocation and composite,

long-term capital market assumptions taken from Horizon 

Actuarial’s 2018 survey of investment consultants. 

Based on this analysis, we selected a final assumed rate 

of 7.00%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities.

Mortality The RP-2014 Blue Collar Mortality Tables for employees 

and healthy annuitants adjusted backward to 2006 with 

the MP-2014 projection scale and projected forward using 

the MP-2017 projection scale was chosen as the base 

table for this population. 

The blue collar table was chosen based on the industry of 

plan participants

Retirement

Withdrawal

Future work hours

Actual rates of retirement by age were studied for the 

period May 1, 2012 to April 30, 2017. The assumed future 

rates of retirement were selected based on the results of 

this study. 

Actual rates of withdrawal by age were studied for the 

period May 1, 2012 to April 30, 2017. The assumed future 

rates of withdrawal were selected based on the results of 

this study. 

Based on review of recent plan experience adjusted for 

anticipated future changes in workforce.

EXHIBIT 32A BAC 7:399
ACTUARIAL ASSUMPTIONS USED FOR PROJECTIONS

The assumptions used for the credit balance, funded ratio, and PPA zone projections 

are the same as used throughout the report with the following exceptions. 

Assumed return on fund 

assets

Current year projections 7.00%

Prior year projections 7.50%

Future total hours worked

Current year projections 90,000 for the plan year ending 2019 and after.

Prior year projections 90,000 for the plan year ending 2018 and after.

Contribution rates

Current year projections $6.80

Prior year projections $6.80

Plan changes

Current year projections None

Prior year projections None

EXHIBIT 32A BAC 7:400
ACTUARIAL METHODS

Funding method

ERISA Funding Traditional unit credit cost method, effective May 1, 2007. 

Funding period Individual entry age normal with costs spread as a level 

dollar amount over service.

Population valued

Actives Employees who have satisfied the plan’s eligibility 

requirements (435 hours worked in a plan year) and who 

had at least one hour during the preceding plan year.

Inactive vested Vested participants with no hours during the preceding 

plan year.

Retirees Participants and beneficiaries in pay status as of the 

valuation date.

Asset valuation method

Actuarial value Smoothed Market Value Method with phase in effective 

May 1, 1996. Each year’s gain (or loss) is spread over a 

period of 5 years. The actuarial value is limited to not 

less than 80% and not more than 120% of the actual 

market value of assets in any plan year.

Unfunded vested 

benefits

For the presumptive method, actuarial value, as 

described above, is used.

EXHIBIT 32A BAC 7:401
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Bricklayers Local No. 7 Pension Plan

May 1, 2018 Actuarial Valuation

Charges

5/1/1979 Plan Amendment 40 1 0 49,512 49,512

5/1/1989 Plan Amendment 30 1 0 54,013 54,013

5/1/1990 Assumptions 30 2 0 40,146 20,752

5/1/1994 Assumptions 513,413 30 6 0 209,262 41,030

5/1/1996 Assumptions 475,139 30 8 0 241,229 37,755

5/1/1996 Plan Amendment 366,610 30 8 0 186,153 29,135

5/1/1997 Assumptions 302,027 30 9 0 166,877 23,938

5/1/1997 Plan Amendment 2,024,332 30 9 0 1,118,437 160,435

5/1/1998 Plan Amendment 1,046,114 30 10 0 620,927 82,622

5/1/1999 Plan Amendment 1,094,569 30 11 0 691,284 86,157

5/1/2000 Assumptions 481,195 30 12 0 320,864 37,755

5/1/2000 Plan Amendment 208,860 30 12 0 139,275 16,388

5/1/2002 Amendment 20,726 30 14 0 15,122 1,616

5/1/2002 Assumptions 685,458 30 14 0 500,139 53,447

5/1/2004 Experience Loss 1,064,453 15 1 0 114,518 114,518

5/1/2005 Experience Loss 2,241,650 15 2 0 464,540 240,125

5/1/2006 Experience Loss 1,908,358 15 3 0 571,600 203,560

5/1/2007 Assumptions 30,385 30 19 0 25,841 2,337

5/1/2008 Experience Loss 296,362 15 5 0 137,568 31,357

5/1/2009 Experience 6,709,219 15 6 0 3,606,394 707,109

5/1/2011 Experience 1,462,111 15 8 0 977,244 152,950

5/1/2012 Assumptions 532,014 15 9 0 386,596 55,455

5/1/2012 Experience 1,652,462 15 9 0 1,200,784 172,247

5/1/2013 Experience 923,614 15 10 0 721,017 95,941

5/1/2015 Assumptions 800,095 15 12 0 701,665 82,562

5/1/2016 Experience 1,522,690 15 13 0 1,401,719 156,745

5/1/2017 Assumptions 2,901,933 15 14 0 2,790,826 298,240

5/1/2017 Experience Loss 1,474,632 15 14 0 1,418,172 151,552

5/1/2018 Assumption 1,567,670 15 15 0 1,567,670 160,861

5/1/2018 Experience 155,801 15 15 0 155,801 15,987

Total Charges: 20,595,195 3,336,101

Page C-1

EXHIBIT 32A BAC 7:402
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Bricklayers Local No. 7 Pension Plan

May 1, 2018 Actuarial Valuation

Credits

5/1/1989 Assumptions 30 1 0 26,200 26,200

5/1/1992 Assumptions 30 4 0 2,579 712

5/1/1993 Assumptions 30 5 0 75,121 17,123

5/1/1995 Plan Amendment 158,607 30 7 0 72,888 12,640

5/1/2003 Assumption 113,096 30 15 0 85,685 8,792

5/1/2003 Plan Amendment 2,117,342 30 15 0 1,604,142 164,604

5/1/2005 Assumptions 41,563 30 17 0 33,577 3,214

5/1/2005 Plan Amendment 3,412,714 30 17 0 2,756,021 263,819

5/1/2006 Plan Amendment 652,500 30 18 0 541,465 50,307

5/1/2007 Experience Gain 382,876 15 4 0 147,413 40,673

5/1/2009 Plan Amendments 2,291,241 15 6 0 1,231,612 241,483

5/1/2010 Assumptions 68,862 15 7 0 41,693 7,230

5/1/2010 Experience Gain 2,238,307 15 7 0 1,355,204 235,012

5/1/2011 Assumptions 44,153 15 8 0 29,510 4,619

5/1/2014 Experience Gain 632,588 15 11 0 525,464 65,490

5/1/2015 Experience 212,291 15 12 0 186,175 21,906

5/1/2016 Assumptions 449,009 15 13 0 413,337 46,221

Total Credits: 9,128,086 1,210,045

Net Charges: 11,467,109 2,126,056

Less Credit Balance:

Less Reconciliation Balance:

Unfunded Actuarial Liability:

-17,247,928

0

28,715,037

Page C-2

EXHIBIT 32A BAC 7:403
RULES FOR ENDANGERED AND CRITICAL STATUS

Background

The Pension Protection Act of 2006 (“PPA”), enacted in August 2006, established 

special rules for plans in “Endangered” or “Critical” status. These rules become effective 

with the plan year beginning in 2008 and were originally scheduled to “sunset” in 2015.

The Multiemployer Pension Reform Act of 2014 (“MPRA”), enacted in December 2014, 

made the provisions contained in the PPA permanent. MPRA also made numerous 

changes to the PPA rules, including adding a new status for deeply troubled plans: 

Critical and Declining.

Informally, Critical Status is often referred to as “red zone” and Endangered Status as 

“yellow zone.” A plan that is neither Critical nor Endangered is said to be “green zone.”

Criteria for Endangered and Critical

The table below summarizes the criteria for these categorizations. Projected 

deficiencies are calculated as of the last day of each plan year and are based on 

contribution rates codified in bargaining agreements and, if applicable, wage allocations. 

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN:

Plan is Critical if it is described in one or 

more of the following:

• Funded percentage is less than 65%, 

and, inability to pay nonforfeitable

benefits and expenses for next 7 years, 

or

• Projected funding deficiency (not

recognizing extensions) in the current 

year or next 3 years (next 4 years if 

funded at less than 65%), or

• (1) Contributions are less than current 

year costs (i.e. “normal cost”) plus 

interest on any unfunded past liabilities, 

and, (2) value of vested benefits for nonactives is greater than for actives, and, 

(3) projected funding deficiency (not

recognizing extensions) in the current 

year or next 4 years, or

• Inability to pay all benefits and expenses 

for next 5 years.

Plan is Endangered if it is not Critical and it is 

described in one of the following:

• Funded percentage is less than 80%, or

• Projected funding deficiency in the current 

year or next 6 years.

A non-critical plan that meets both of the 

preceding criteria is considered “Seriously 

Endangered” 

A plan that meets one of the two Endangered 

Status criteria above, but was not in Critical or 

Endangered for the preceding year, will remain 

not Critical or Endangered (i.e. it will be in 

“green zone”) provided it is not projected to 

meet either of the two Endangered Status 

criteria as of the end of the 10th plan year 

following the certification year

EXHIBIT 32A BAC 7:404
RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN (cont.): 

A plan with a 5-year amortization extension 

under IRC Section 431(d) that previously 

emerged from Critical Status in PYB 2015 or 

later will re-enter Critical Status only if it is 

described in one of the following:

• Projected funding deficiency in the 

current year or next 9 years (including

amortization extensions), or, 

• Projected insolvency within the next 30 

years

GETTING OUT:

Plan emerges from Critical Status when it 

meets all of the following:

• No longer meets any of the Critical 

Status tests, and, 

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

A plan with a 5-year amortization extension 

under IRC Section 431(d) emerges from 

Critical Status when it meets all the following:

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

Plan emerges from Endangered Status when it 

no longer meets the requirements to be 

classified as Endangered or when it enters 

Critical Status

EXHIBIT 32A BAC 7:405
RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Restrictions for Endangered and Critical Plans

The Trustees of a plan that is in Endangered or Critical status face a number of restrictions in 

plan improvements that can be adopted and bargaining agreements that can be accepted.

Period Endangered/Critical Restrictions

Date of first certification 

through adoption of funding 

improvement/rehabilitation 

plan (“plan adoption period”)

• No reduction in level of contributions for any participants

• No suspension of contributions

• No exclusion of new or younger employees

• No amendment that increases the liabilities of the plan by 

reason of any increase in benefits, change in accrual, or 

change in vesting unless required by law

After adoption of a funding 

improvement/rehabilitation 

plan until end of funding 

improvement/rehabilitation 

period

• Cannot be amended so as to be inconsistent with funding 

improvement/rehabilitation plan

• No amendment that increases benefits, including future 

accruals, unless actuary certifies as being paid for with 

contributions not contemplated in funding improvement/ 

rehabilitation plan and still expected to meet applicable 

benchmark after considering the amendment

Additionally, Critical status plans cannot pay benefits greater than the single life 

annuity once the initial red zone notice is sent unless the benefit is eligible for 

automatic cash-out.

Critical and Declining Plans

Beginning in 2015, plans that are in Critical Status and are projecting insolvency within 

the next 15 years (20 years in some circumstances) are certified by the actuary as being 

in “Critical and Declining.” These plans may have access to new tools that will allow 

them to reduce many previously-untouchable benefits, including benefits for participants 

in pay status. However, these expanded benefit reductions require government 

approval, must not be rejected by a majority of all participants through a vote, and are 

subject to a number of other requirements and limitations.

Selected Other MPRA Changes (effective with 2015 plan years)

• Plans projected to be Critical within the next 5 years can elect to be in Critical Status 

immediately

• New contribution rate increases required by a funding improvement or rehabilitation 

plan are not considered in calculating an employer’s withdrawal liability or payment 

schedule

• If, upon the expiration of a collective bargaining agreement under a funding 

improvement or rehabilitation plan, bargaining parties do not adopt a new agreement 

consistent with an updated schedule, the Trustees must implement the update to the 

schedule previously adopted.

EXHIBIT 32A BAC 7:406
GLOSSARY OF COMMON PENSION TERMS

Benefits

Accrued Benefit: A benefit that an employee has earned (or accrued) through past 

participation in the plan. It is the amount payable at normal retirement age. 

Why it matters: Under the law, Accrued Benefits generally may not be reduced 

by plan amendment. The exception to this anti-cutback protection would be for 

“adjustable benefits” that come into play for critical status plans. 

Actuarial Equivalence: Given a set of actuarial assumptions, when two different sets 

of payment scenarios have an equal present value.

Early Retirement Reduction Factor: A retirement benefit that begins before normal 

retirement age may be reduced. The plan document defines the amount of the 

reduction by formula or a table of factors. This reduction may or may not be 

actuarially equivalent, but its present value can be no less than actuarially equivalent 

to the benefit payable at normal retirement age. 

Benefit Crediting (Accrual) Rate: A general reference to the calculation of the 

amount of monthly retirement benefit earned per dollar contributed or per year or hour 

worked. 

Assets

Market Value of Assets: This is the fair value of all assets in the fund on an accrued, 

not cash basis. The market value of assets matches the value in the plan audit.

Actuarial Value of Assets: The amount of assets recognized for actuarial valuation 

purposes. Recent changes in market value may be partially recognized (there are 

variations allowed on the exact recognition). Generally the actuarial value is limited to 

not be less than 80% or more than 120% of the market value. 

Why it matters: Many funding calculations use this “smoothed” asset value 

method to lessen the impact of volatility in the market value of plan assets.

Assumed Rate of Return: Long term assumption of the rate of return on assets 

based upon the diversification mix of invested assets. 

Why it matters: This assumption is used in calculating the present values 

discussed in the Liabilities section below. The Assumed Rate of Return has an 

inverse relationship with plan liabilities. In other words, a lower Assumed Rate 

of Return increases liabilities, while a higher Assumed Rate of Return 

decreases plan Liabilities.

EXHIBIT 32A BAC 7:407
GLOSSARY OF COMMON PENSION TERMS (CONT.)

Liabilities

Present Value of Accrued Benefits: The discounted value of benefit payments 

due in the future but based only on the current Accrued Benefits of each participant. 

The value is based on actuarial assumptions including an assumed rate of 

investment return. 

Why it matters: This liability is one of the primary factors in determining a plan’s 

annual PPA funded status (see Funded Ratio).

Present Value of Vested Benefits: The discounted value of Accrued Benefits that 

are considered vested (non-forfeitable). Benefits that are not vested include those of 

participants who have not satisfied the plan vesting requirement (usually five years of 

service). In addition under the law some death and temporary disability benefits are 

also considered non-vested regardless of service because they are not considered 

protected benefits. 

Why it matters: This liability is the primary driver of a plan’s Employer 

Withdrawal Liability.

Actuarial (Accrued) Liability: For inactive members this is the same as the Present 

Value of Accrued Benefits above. For active members this depends on the cost 

method selected by the actuary. Under the accrued benefit or traditional unit credit 

cost method this is also the same as the Present Value of Accrued Benefits. Under 

other cost methods (including most commonly entry age normal) this represents an 

alternate allocation of projected benefit cost over the working lifetime of active 

members. Under the entry age normal cost method, the active Actuarial Liability is 

larger than the Present Value of Accrued Benefits. 

Unfunded Actuarial Liability: The Actuarial Liability less the Actuarial Value of 

Assets. 

Current Liability: This is similar to the Present Value of Accrued Benefits, but uses 

a statutory, significantly lower, interest rate (equivalent to an expected rate of return 

on a bond only-type portfolio) and statutory mortality tables. The lower interest rate 

means that Current Liability tends to be significantly higher than the Present Value of 

Accrued Benefits. This number has very little impact on multiemployer plans. 

Normal Cost: The present value of all benefits that are expected to accrue or to be 

earned under the plan during the plan year. The way in which a benefit is considered 

to be earned varies with the actuarial cost method.

Risk: The potential of future deviation of actual results from expectations derived 

from actuarial assumptions.

EXHIBIT 32A BAC 7:408
GLOSSARY OF COMMON PENSION TERMS (CONT.)

Funding

Funded Ratio (Funded Percentage): Actuarial Value of Assets divided by the 

Present Value of Accrued Benefits. This is one of two key measures used to 

determine a plan’s annual PPA funded status. This may also be referred to as PPA 

Funded Ratio. This must be greater than 80% to avoid endangered status.

Credit Balance: The accumulated excess of actual contributions over legally 

required minimum contributions as maintained in the funding standard account. The 

funding standard account is maintained by the actuary in the valuation process and 

reported annually in schedule MB to the Form 5500 filing. A negative credit balance 

is known as an accumulated funding deficiency. Prior to PPA, an accumulated 

funding deficiency caused an immediate excise tax (waiver under PPA if certain 

conditions are met). After PPA, a current or projected funding deficiency is one of the 

key measures used in determining the annual PPA status. It can eventually trigger 

an excise tax levied on contributing employers.

Withdrawal Liability

Unfunded Vested Benefits (UVB): Present Value of Vested Benefits less the value 

of plan assets determined on either an actuarial or market value basis. The selection 

of asset measurement is part of the withdrawal liability method of the Plan.

Employer Withdrawal Liability (EWL): An employer that withdraws from a 

multiemployer plan is liable for its proportionate share of Unfunded Vested Benefits, 

determined as of the date of withdrawal. 

Why it matters: If a contributing employer leaves the plan while it has Unfunded 

Vested Benefits liability, that employer’s allocated share of Employer Withdrawal 

Liability is either assessed, as applicable, or reallocated among the plan’s 

remaining active employers if the presumptive method is used. A construction 

employer withdrawing from a construction industry plan will not be assessed 

unless they continue performing work within the jurisdiction of the CBA or 

restart such work within a period of 5 years. Small amounts (under $150,000) 

are generally reduced or eliminated pursuant to the “de minimis rule.”

EXHIBIT 32A BAC 7:409
BRICKLAYERS AND ALLIED CRAFTSMEN

LOCAL NO. 7 PENSION PLAN

Actuarial Valuation Report

For Plan Year Commencing 

May 1, 2019

EXHIBIT 32B BAC 7:410
November 26, 2019

Board of Trustees

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

Dear Trustees:

We have been retained by the Board of Trustees of the Bricklayers and Allied Craftsmen

Local No. 7 Pension Plan to perform annual actuarial valuations of the pension plan. This 

report presents the results of our actuarial valuation for the plan year beginning May 1, 

2019. The valuation results contained herein are based on current plan provisions 

summarized in Appendix A, the actuarial assumptions and methods listed in Appendix B 

and on financial statements audited by Yurchyk & Davis CPA's, Inc. Participant data was 

provided by Benesys, Inc.. While we have reviewed the data for reasonableness in 

accordance with Actuarial Standards of Practice No. 23, we have not audited it. The data 

was relied on as being both accurate and comprehensive.

This report has been prepared in order to (1) assist the Trustees in evaluating the current 

actuarial position of the plan, (2) determine the minimum required and maximum deductible 

contribution amounts under Internal Revenue Code §431 and §404, (3) provide the fund’s 

auditor with information necessary to comply with Accounting Standards Codification 960, 

and (4) document the plan’s certified status under Internal Revenue Code §432 for the 

current year and provide the basis to certify such status for the subsequent year. In addition, 

information contained in this report will be used to prepare Schedule MB of Form 5500 that 

is filed annually with the IRS and could be used to calculate employer withdrawal liability. 

We are not responsible for the use of, or reliance upon, this report for any other purpose. 

We have prepared this report in accordance with generally accepted actuarial principles 

and practices and have performed such tests as we considered necessary to assure the 

accuracy of the results. The results have been determined on the basis of actuarial 

assumptions that, in my opinion, are appropriate for the purposes of this report, are 

individually reasonable and in combination represent my best estimate of anticipated 

experience under the plan. Actuarial assumptions may be changed from previous 

valuations due to changes in mandated requirements, plan experience resulting in changes 

in expectations about the future, and/or other factors. An assumption change does not 

indicate that prior assumptions were unreasonable when made. For purposes of current

liability calculations, assumptions are prescribed by regulation or statute. By relying on this 

valuation report, the Trustees confirm they have accepted the assumptions contained in the 

report.

The results are based on my best interpretation of existing laws and regulations and are 

subject to revision based on future regulatory or other guidance.

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to such factors as 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 

EXHIBIT 32B BAC 7:411
amortization period or additional cost or contribution requirements based on the plan’s 

funded status), and changes in plan provisions or applicable law.

United Actuarial Services, Inc. does not provide, nor charge for, investment, tax or legal 

advice. None of the comments made herein should be construed as constituting such 

advice. We are not aware of any direct or material indirect financial interest or relationship 

that could create a conflict of interest that would impair the objectivity of our work.

The undersigned actuary meets the Qualification Standards of the American Academy of 

Actuaries to render the actuarial opinion contained in this report. 

We are available to respond to any questions you may have about this report.

UNITED ACTUARIAL SERVICES, INC.

Chief Actuary

EXHIBIT 32B BAC 7:412
TABLE OF CONTENTS

PART I: SUMMARY OF RESULTS 5

5 - Year Summary of Valuation Results 6

5 - Year Summary of Demographics 7

Changes From Prior Study 8

History of Major Assumptions 9

Experience vs. Assumptions 10

Plan Maturity 11

Unfunded Vested Benefits/Employer Withdrawal Liability 12

Contribution Allocation 13

Funding Standard Account Projection 14

Funded Ratio Projection 15

PPA Status Projections 16

Ultimate Funded Status 17

Stress Testing and Sensitivity Analysis 18

PART II: SUPPLEMENTAL STATISTICS 19

Participant Data Reconciliation 20

Hours Worked During Plan Year 21

Contributions Made During Plan Year 22

Active Information 23

Inactive Vested Information 24

Retiree Information 25

PART III: ASSET INFORMATION 27

Market and Actuarial Fund Values 28

Flow of Funds 29

Investment Gain and Loss 30

Rate of Return on Fund Assets 31

PART IV: ENROLLED ACTUARY’S REPORT 32

Normal Cost/Actuarial Liability 33

Actuarial Liability Reconciliation/Projection 34

Funded Ratios 35

Funding Period 36

Current Liability 37

Funding Standard Account 38

Full Funding Limit 39

Minimum Required Contribution and Full Funding Credit 40

Maximum Deductible Contribution 41

History of Unfunded Vested Benefits 42

Termination by Mass Withdrawal 43

ASC 960 Information 44

APPENDICES

Plan Provisions Appendix A

Actuarial Assumptions and Methods Appendix B

Minimum Funding Amortization Bases Appendix C

Summary of Endangered and Critical Status Rules Appendix D

Glossary of Common Pension Terms Appendix E

EXHIBIT 32B BAC 7:413
PART I: SUMMARY OF RESULTS

EXHIBIT 32B BAC 7:414
5 - YEAR SUMMARY OF VALUATION RESULTS

Actuarial Study 

as of May 1, 2019 2018 2017 2016 2015

PPA funded status Crit. and 

Decl.

Crit. and 

Decl.

Crit. and 

Decl.

Crit. and 

Decl.

Crit. and 

Decl.

Progress under FIP/RP Yes Yes Yes Yes Yes

Improvements restricted* Yes Yes Yes Yes Yes

Funded ratio

PPA certification 24.4% 30.3% 37.9% 46.7% 50.6%

Valuation report (AVA) 24.0% 29.3% 34.8% 43.9% 49.4%

Valuation report (MVA) 23.1% 28.4% 32.8% 39.6% 48.3%

Proj. year of insolvency 2022 2022 2022 2024 2025

Credit Balance ($ 000) (20,211) (17,248) (14,196) (11,263) (8,667)

Date of first projected funding deficiency

PPA certification 4/30/20 4/30/19 4/30/18 4/30/17 4/30/16 

Valuation report 4/30/20 4/30/19 4/30/18 4/30/17 4/30/16 

Net investment return

On market value 4.02% 8.60% 10.94% -3.48% 6.72%

On actuarial value 3.45% 4.76% 4.73% 3.50% 7.51%

Asset values ($ 000)

Market 9,534 11,529 12,894 14,220 17,412 

Actuarial 9,887 11,928 13,704 15,755 17,810 

Accum. ben. ($ 000) 41,259 40,643 39,331 35,892 36,032

* Benefit improvement restrictions due to fund being in critical status. 

EXHIBIT 32B BAC 7:415
5 - YEAR SUMMARY OF DEMOGRAPHICS

Actuarial Study 

as of May 1, 2019 2018 2017 2016 2015

Participant counts

Active 106 115 102 126 144 

Inactive vested 109 112 123 117 118 

Receiving benefits 213 214 214 221 221 

Total 428 441 439 464 483 

Average entry age 31.4 30.4 30.9 32.4 31.4 

Average attained age 46.8 45.1 46.4 45.2 44.4 

Hours worked in prior plan year (thousands)

Expected hours valuation 103 95 123 139 102

Expected hours PPA cert 90 90 125 120 128

Actual hours worked 111 114 92 125 144

EXHIBIT 32B BAC 7:416
CHANGES FROM PRIOR STUDY

Changes in Plan Provisions

The plan provisions underlying this valuation are the same as those valued last year.

Changes in Actuarial Assumptions and Methods

The actuarial assumptions and methods used in this valuation differ from those used in the 

prior valuation in the following respects:

• The ERISA rate of return assumption used to value liabilities was changed from 7.00% 

to 6.75% to provide our best estimate of the future rate of net investment return based 

on the Plan’s current investment policy and asset allocation.

• The mortality projection scale was updated from MP-2017 to MP-2018 but the mortality 

rate multiplier remained 100%. These changes were made in order to reflect the latest 

mortality improvement data available and to better match the standard tables to specific 

plan experience.

• The assumed future hours worked were increased from 1,100 hours to 1,200 hours per 

future year for vested active lives. This represents our best estimate of future hours

based on recent plan experience.

• The assumed operational expenses were increased/decreased from $120,000 to 

$175,000 to reflect our best estimate of future expenses based on recent plan 

experience, and expectation of average expenses over next five years including special 

projects.

• The expense load on ASC 960 liabilities was changed from 7.50% to 6.50% based on 

recent experience. 

• The current liability interest rate was changed from 2.99% to 3.09%. The new rate is 

within established statutory guidelines.

• The assumed date of retirement for inactive vested was changed from the later of 

normal retirement age or age on valuation date if terminated prior to May 1, 1999 and 

later of age 59 or age on valuation date if terminated after May 1, 1999 to being the later 

of normal retirement age or age on the valuation date if terminated prior to May 1, 1997 

and later of age 59 or age on valuation date if termated after May 1, 1997.

• The percent married assumption was changed from 100% married to 75% married.

EXHIBIT 32B BAC 7:417
HISTORY OF MAJOR ASSUMPTIONS

Actuarial Study as of May 1,

Assumption 2019 2018 2017 2016 2015

Future rate of net 

investment return

6.75% 7.00% 7.50% 7.50% 7.75%

Mortality table RP-2006 RP-2006 RP-2006 RP-2006 RP-2000 

Adjustment 100% 100% 100% 140% 1 yr sf

Projection scale MP-2018 MP-2017 MP-2016 MP-2015 AA 

Future expenses $175,000 $120,000 $120,000 $120,000 $120,000

Average future hourly 

contribution rate*

Credited $6.80 $6.80 $6.80 $6.80 $2.00

Non-credited 0.00 0.00 0.00 0.00 4.66

Total $6.80 $6.80 $6.80 $6.80 $6.66

Average future annual hours

Vested 1,200 1,100 1,100 1,100 1,100

Non-vested 650 650 650 800 800

* Actual average derived from application of assumptions specified in Appendix B.

EXHIBIT 32B BAC 7:418
EXPERIENCE VS. ASSUMPTIONS

Actuarial assumptions are used to project certain 

future events related to the pension plan (e.g. 

deaths, withdrawals, investment income, expenses, 

etc.). While actual results for a single plan year will 

rarely match expected experience, it is intended that 

the assumptions will provide a reasonable long term 

estimate of developing experience.

The following table provides a comparison of expected outcomes for the prior plan year with 

the actual experience observed during the same period. This display may provide insight 

as to why the plan’s overall actuarial position may be different from expected.

Plan Year Ending 

April 30, 2019 Expected Actual

Decrements

Terminations 22

less: Rehires 8

Terminations (net of rehires) 9.5 14

Active retirements 6.3 2

Active disabilities 0.0 - 

Pre-retirement deaths 1.0 2

Post-retirement deaths 10.1 11

Monthly benefits of deceased retirees $ 9,671 $ 13,045

Financial assumptions

Rate of net investment return on actuarial value 7.00% 3.45%

Administrative expenses $ 120,000 $ 130,777

Other demographic assumptions

Average retirement age from active (new retirees) 61.5 62.1

Average retirement age from inactive (new retirees)* 61.7 61.7

Average entry age (new entrants) 30.4 42.1

Hours worked per vested active 1,100 1,206

Hours worked per non-vested active 650 517

Total hours worked (valuation assumption) 103,400 111,464

Total hours worked (PPA certification assumption) 90,000 111,464

Unfunded liability (gain)/loss

(Gain)/loss due to asset experience $ 381,105

(Gain)/loss due to liability experience 120,513

Total (gain)/loss $ 501,618

* Expected average based on the average for the total group of participants.

Comparing the prior year’s 

experience to assumptions 

provides indications as to 

why overall results may 

differ from those expected 

EXHIBIT 32B BAC 7:419
PLAN MATURITY

When a new pension plan is first established, its 

liabilities are typically limited to active plan 

participants. However, as people become vested 

and retire, a plan begins to develop liabilities 

attributable to nonactive participants (retirees and 

inactive vested participants). The process of adding 

nonactive liabilities (often referred to as “maturing”) 

is a natural outgrowth of the operation of the plan. As a plan matures, its liabilities tend to 

balloon in relation to its contribution base, making it more difficult to correct for adverse 

outcomes by increasing contribution rates or reducing future benefit accruals.

Headcount ratios show the number of retiree or inactive participants supported by each 

active participant. While there is no hard and fast rule, we generally consider a plan to be 

mature if each active is supporting more than 1 retiree or more than 2 nonactives. A 

negative net cash flow (benefits payments and expenses greater than contributions) can 

also be an indicator of a mature plan. A negative cash flow, when expressed as a 

percentage of assets, in excess of the assumed rate of return on fund assets may not be 

sustainable in the long term. 

Actuarial Study 

as of May 1, 2019 2018 2017 2016 2015

Retiree/active headcount ratio 2.01 1.86 2.10 1.75 1.53

Nonactive/active headcount ratio 3.04 2.83 3.30 2.68 2.35

Cash flow

Contr.-ben.-exp. ($000) (2,410) (2,372) (2,732) (2,632) (2,092)

Percent of assets -25.28% -20.57% -21.19% -18.51% -12.02%

Liabilities of Actives, Retirees, and Inactive Vesteds

Total Liabilities: $41,258,612

Measures of plan maturity 

can play a part in 

understanding risk and a 

plan’s ability to recover 

from adverse experience

EXHIBIT 32B BAC 7:420
UNFUNDED VESTED BENEFITS/EMPLOYER WITHDRAWAL LIABILITY

The following table shows a history of the plan’s 

unfunded vested benefits (UVB) required to 

compute a specific employer withdrawal liability 

under the presumptive method. If all unfunded 

vested benefits since the inception of the 

Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) are zero ($0) or less, there 

will be no withdrawal liability assessed to a withdrawing employer. Otherwise, an employer 

may be assessed withdrawal liability payments pursuant to MPPAA. The display does not 

reflect adjustments for prior employer withdrawals.

In accordance with IRC Section 432(e)(9)(A) and PBGC Technical Update 10-3, the impact 

of reducing adjustable benefits is reflected by adding the unamortized portion of the value 

of affected benefits (VAB) to the most recent year’s unfunded vested benefits pool. An 

employer who is assessed withdrawal liability will be assessed a portion of the UVB and the 

VAB.

Presumptive Method ($ 000) 

April 30, 2019 2018 2017 2016 2015

Vested benefits interest 6.75% 7.00% 7.50% 7.50% 7.75%

Vested benefits 41,121 40,610 39,295 35,861 35,983

less: Asset value* 9,887 11,928 13,704 15,755 17,810

UVB 31,234 28,682 25,591 20,106 18,173

Unamortized VAB 803 930 1,047 1,156 1,257

UVB + VAB 32,037 29,612 26,638 21,262 19,430

* Actuarial Value

** Includes VAB

An employer withdrawing 

during the coming year may

have withdrawal liability

EXHIBIT 32B BAC 7:421
CONTRIBUTION ALLOCATION

The following allocation charts illustrate how the 

expected contribution rate for the coming plan year 

will be “spent” to pay for benefits being earned in the 

current year, plan expenses, and funding of past 

unfunded liabilities.

Contribution Allocation as of May 1, 2019

Total Average Expected Contribution Rate $6.80

Contribution Allocation as of May 1, 2018

Total Average Expected Contribution Rate $6.80

These graphs show how 

the contributions are

being spent

EXHIBIT 32B BAC 7:422
FUNDING STANDARD ACCOUNT PROJECTION

The funding standard account (FSA) was 

established by ERISA as a means of determining 

compliance with minimum funding standards. 

The FSA is hypothetical in the sense that it does 

not represent actual assets held by a custodian. 

Rather, a positive FSA balance (called a “credit balance”) means that the plan has 

exceeded minimum funding standards on a cumulative basis, while a negative balance 

(called a “funding deficiency”) means that the plan has fallen short of such standards.

Actuaries must project the plan’s FSA each year in order to determine PPA status. If a 

funding deficiency is projected in a future year, the plan could be forced into yellow 

(endangered) or red (critical) status depending how far into the future the first projected 

funding deficiency is. The plan’s FSA projection appears below. These projections are 

based on the assumptions summarized in the “Actuarial Assumptions used for Projections” 

section of Appendix B. 

The funding standard 

account projection is a major 

driver of PPA status

EXHIBIT 32B BAC 7:423
FUNDED RATIO PROJECTION

The funded ratio is defined as the actuarial value 

of plan assets divided by the plan’s liabilities for 

accrued benefits. Along with the funding standard 

account projection, funded ratio is one of the two 

major drivers of PPA funded status. In order for a 

plan to enter the green zone (also called “safe” or “not endangered or critical”) the funded 

ratio must be at least 80%. An insolvency, which is the plan year when the plan would run 

out of money, occurs if the funded ratio is projected to be 0%. In order for a plan to enter 

critical and declining status, an insolvency needs to be projected within 20 plan years of the 

PPA certification (it may need to be within 15 years under certain conditions). The projection 

of the funded ratio appears below. These projections are based on the assumptions

summarized in the “Actuarial Assumptions used for Projections” section of Appendix B.

The plan’s funded ratio is a 

major driver of PPA status

EXHIBIT 32B BAC 7:424
PPA STATUS PROJECTIONS

The Pension Protection Act of 2006 (PPA), as amended by the Multiemployer Pension 

Reform Act of 2014 (“MPRA”), requires all multiemployer pension plans to obtain an annual 

status certification. The possible statuses are: “Safe”, “Endangered”, “Seriously 

Endangered”, “Critical” or “Critical and Declining”. The criteria for these determinations are 

outlined in Appendix D. The following graph shows PPA status deterministic projections 

based on the assumptions summarized in the “Actuarial Assumptions used for Projections” 

section of Appendix B. The second following graph shows the probability of the Plan being 

in each status for the next 20 years using a stochastic projection based on the mean and 

standard deviation of the Plan’s investment portfolio. The zone projections are based on 

the current plan and do not include any further action if the plan moves to a worse PPA 

zone.

 

Projected PPA Status – Deterministic Projection

Projected PPA Status – Stochastic Projection

EXHIBIT 32B BAC 7:425
ULTIMATE FUNDED STATUS

An actuarial valuation deals primarily with the ability 

of the plan to meet Internal Revenue Code 

requirements now and in the near future. As such, it 

is heavily focused on current plan assets and 

liabilities. But it is also important to keep in mind the 

true purpose of the plan funding—that is, to 

accumulate sufficient assets to pay the benefits that the plan has promised to its 

participants. The chart below looks at this long-term funding adequacy. To the current plan 

assets, we add the present value of all future contributions expected to be made for the 

current plan participants. To the value of the plan’s liabilities for benefits that have been 

previously earned, we add the present value of future benefits the current plan participants 

are expected to earn and the present value of future administrative expenses the plan is 

expected to pay. Ideally these ultimate asset and liability values will be approximately 

equal.

An ultimate funded status of less than 100% could be an indication of generational shifting 

(i.e. the need for one generation of participants to fund the benefits of the preceding 

generation) and/or a reliance on the continued addition of new participants in order to fund 

benefits.

Ultimate funded status is 

an indicator of the ability of 

current participants to pay 

for their own benefits

EXHIBIT 32B BAC 7:426

PART II: SUPPLEMENTAL STATISTICS

EXHIBIT 32B BAC 7:428
PARTICIPANT DATA RECONCILIATION

The participant data reconciliation table below provides information as to how the plan’s 

covered population changed since the prior actuarial study. Such factors as the number of 

participants retiring, withdrawing and returning to work have an impact on the actuarial 

position of the pension fund.

Participants 

Valued As Active

Inactive 

Vested

Receiving 

Benefits

Total 

Valued

May 1, 2018 115 112 214 441

Change due to:

New hire 8 - - 8

Rehire 8 (4) - 4

Termination (22) 7 - (15)

Disablement - - - - 

Retirement (2) (5) 7 - 

Death - (2) (11) (13)

Cash out - - - - 

New beneficiary - 1 3 4

Certain pd. expired - - - - 

Data adjustment * (1) - - (1)

Net change (9) (3) (1) (13)

May 1, 2019 106 109 213 428

* Comprised of someone previously active, but is now determined to not be an eligible participant.

EXHIBIT 32B BAC 7:429
HOURS WORKED DURING PLAN YEAR

Hours Worked Per Participant

Plan Year Ending 

April 30, 2019 Number Hours Worked

Average 

Hours Worked

Actives

Vested 68 82,020 1,206

Non-vested, continuing 30 13,599 453

Non-vested, new entrant 8 6,062 758

Total active 106 101,681 959

Others 62 9,783 158

Total for plan year 168 111,464 663

History of Total Actual and Expected Hours Worked (Thousands)

Plan Year Ending 

April 30, 2020 2019 2018 2017 2016

Expected hours valuation 99 103 95 123 139

Expected hours PPA cert 90 90 90 125 120

Actual hours worked n/a 111 114 92 125

History of Average Actual and Expected Hours Worked per Participant

EXHIBIT 32B BAC 7:430
CONTRIBUTIONS MADE DURING PLAN YEAR

Employer Contributions Reported in Employee Data

Plan Year Ending 

April 30, 2019 Number

Contributions 

Reported

Actives

Vested 68 $ 555,822

Non-vested, continuing 30 90,606

Non-vested, new entrant 8 36,029

Total valued as active 106 682,457

Others 62 65,753

Total for plan year 168 $ 748,210

Average hourly contribution rate $ 6.71

Comparison with Audited Employer Contributions

Employer contributions reported in data $ 748,210

Total audited employer contributions $ 723,439

Percent reported 103%

History of Actual and Expected Total Contributions Received

EXHIBIT 32B BAC 7:431

INACTIVE VESTED INFORMATION

Inactive Vested Participants by Age as of May 1, 2019

Age Group Number

Estimated Monthly 

Deferred Vested 

Benefits*

< 30 1 $ 88

30-34 2 374

35-39 4 801

40-44 19 14,334

45-49 18 19,904

50-54 27 27,819

55-59 20 25,702

60-64 12 7,537

65-69 5 2,055

70+ 1 33

Totals 109 98,647

Unrecorded birth date - - 

Total inactive vested lives 109 $ 98,647

* Amount payable at assumed retirement age as used in the valuation process.

EXHIBIT 32B BAC 7:433
RETIREE INFORMATION

Benefits Being Paid by Form of Payment as of May 1, 2019

Monthly Benefits Being Paid

Form of Payment Number Total Average Smallest Largest

Life only* 97 $ 121,184 $ 1,249 $ 49 $ 3,949

Joint & survivor 69 103,029 1,493 40 5,665

Disability - - - - - 

Beneficiaries 47 24,923 530 17 2,196

Totals 213 $ 249,136 $ 1,170 $ 17 $ 5,665

Retirees by Age and Form of Payment as of May 1, 2019

Form of Benefits Being Paid

Age

Group

Life

Only*

Joint & 

Survivor Disability Beneficiaries Total

< 40 - - - - - 

40-44 - - - - - 

45-49 - - - - - 

50-54 - - - - - 

55-59 5 - - - 5

60-64 14 5 - 2 21

65-69 22 15 - 4 41

70-74 15 14 - 7 36

75-79 14 13 - 8 35

80-84 13 16 - 12 41

85-89 10 4 - 11 25

90-94 3 2 - 2 7

95+ 1 - - 1 2

Totals 97 69 - 47 213

* Includes retirees receiving life and certain benefits.

EXHIBIT 32B BAC 7:434
RETIREE INFORMATION (CONT.)

Age of Participants Retired During Last 5 Plan Years

(excludes beneficiaries and disability retirements)

Age at Plan Year Ending April 30,

Retirement 2019 2018 2017 2016 2015

< 55 - - - - - 

55 - 1 - 2 - 

56 1 1 - - - 

57 - - 1 1 - 

58 - 2 - - - 

59 - - 1 1 - 

60 1 - - - - 

61 1 1 - - - 

62 1 1 1 - 1

63 1 1 - - - 

64 - - - - - 

65 2 1 1 2 - 

66+ - 2 - 1 4

Totals 7 10 4 7 5

Average 

retirement age 61.8 61.7 60.9 60.8 67.5

EXHIBIT 32B BAC 7:435
PART III: ASSET INFORMATION

EXHIBIT 32B BAC 7:436
MARKET AND ACTUARIAL FUND VALUES

Asset information extracted from the fund’s financial statements audited by Yurchyk & Davis 

CPA's, Inc. 

Market/Actuarial Value of 

Fund Investments

as of April 30, 2019 2018 2017

Invested assets

Common stocks $ 3,283,768 $ 3,705,181 $ 4,138,998

Exchange traded funds 2,511,280 3,021,055 3,644,936

Preferred Stocks 2,047

Mutual Funds 2,174,167 2,892,040 3,396,334

Corporate bonds 344,632 416,039 269,992

US government securities 607,574 683,844 299,408

Money market funds 86,452 98,335 131,556

Cash 404,871 583,413 946,881

Prepaid assets 10,052 12,192 1,666

9,424,843 11,412,099 12,829,771

Net receivables* 108,813 116,740 64,052

Market value $ 9,533,656 $ 11,528,839 $ 12,893,823

Fund assets - Actuarial value 

Market value $ 9,533,656 $ 11,528,839 $ 12,893,823

less: Deferred investment

gains and (losses) (353,767) (398,972) (809,729)

Actuarial value $ 9,887,423 $ 11,927,811 $ 13,703,552

Actuarial value as a 

percentage of market value 103.71% 103.46% 106.28%

* Equals receivables, less any liabilities

EXHIBIT 32B BAC 7:437
FLOW OF FUNDS

Asset information extracted from the fund’s financial statements audited by Yurchyk & Davis 

CPA's, Inc. 

Plan Year Ending 

April 30, 2019 2018 2017

Market value at beginning of

plan year $ 11,528,839 $ 12,893,823 $ 14,219,652

Additions

Employer contributions 723,439 749,475 604,875

Net investment income* 414,701 1,006,939 1,406,103

Other income - - - 

1,138,140 1,756,414 2,010,978

Deductions

Benefits paid 3,002,546 3,012,873 2,995,691

Net expenses* 130,777 108,525 341,116

3,133,323 3,121,398 3,336,807

Net increase (decrease) (1,995,183) (1,364,984) (1,325,829)

Adjustment - - - 

Market value at end of

plan year $ 9,533,656 $ 11,528,839 $ 12,893,823

Cash flow

Contr.-ben.-exp. (2,409,884) (2,371,923) (2,731,932)

Percent of assets -25.28% -20.57% -21.19%

Estimated net investment return

On market value 4.02% 8.60% 10.94%

On actuarial value 3.45% 4.76% 4.73%

* Investment expenses have been offset against gross investment income.

EXHIBIT 32B BAC 7:438
INVESTMENT GAIN AND LOSS

Investment Gain or Loss

Plan Year Ending April 30, 2019

Expected market value at end of plan year

Market value at beginning of plan year $ 11,528,839

Employer contributions and non-investment income 723,439

Benefits and expenses paid (3,133,323)

Expected investment income (at 7.00% rate of return) 722,673

9,841,628

Actual market value at end of plan year 9,533,656

less: Expected market value 9,841,628

Investment gain or (loss) $ (307,972)

History of Gains and (Losses)

Plan Year Investment Amount

Ending Gain Recognized

April 30, or (Loss) This Year

2019 $ (307,972) $ (61,594)

2018 128,849 25,770

2017 442,077 88,415

2016 (1,807,647) (361,529)

2015 (221,192) (44,238)

Total $ (1,765,885) $ (353,176)

Deferred Investment Gains and (Losses)

Plan Year

Ending Amount of Gain or (Loss) Deferred as of April 30,

April 30, 2019 2020 2021 2022

2019 $ (246,378) $ (184,783) $ (123,189) $ (61,594)

2018 77,309 51,540 25,770 - 

2017 176,831 88,415 - - 

2016 (361,529) - - - 

Totals $ (353,767) $ (44,828) $ (97,419) $ (61,594)

EXHIBIT 32B BAC 7:439
RATE OF RETURN ON FUND ASSETS

Historical Rates of Net Investment Return

The following table shows average rates of return over various periods calculated on a 

geometric average basis. These statistics may not be appropriate for evaluating a Plan’s 

rate of return assumption as such assumption is forward-looking whereas the statistics are 

historical. Furthermore, these statistics do not reflect the internal rate of return actually 

experienced by the Fund over these periods.

Average Rates of Net Investment Return (geometric average)

Return on Market Value Return on Actuarial Value

Period Ending April 30, Period Ending April 30,

Period 2019 2018 2019 2018

One year 4.02% 8.60% 3.45% 4.76%

5 years 5.24% 6.09% 4.78% 6.49%

10 years 8.51% 5.07% 6.20% 3.91%

15 years 5.01% 5.34% 3.76% 3.70%

20 years 3.70% 3.77% 3.91% 4.45%

EXHIBIT 32B BAC 7:440
PART IV: ENROLLED ACTUARY’S REPORT

EXHIBIT 32B BAC 7:441
NORMAL COST/ACTUARIAL LIABILITY

Normal Cost as of May 1, 2019 2018

Active participants $ 98,557 $ 98,361

Anticipated administrative expenses (beg. of year) 169,287 115,942

Total normal cost $ 267,844 $ 214,303

Unfunded Actuarial Liability as of May 1, 2019 2018

Actuarial liability

Participants currently receiving benefits $ 26,394,082 $ 25,785,852

Inactive vested participants 8,060,526 8,094,647

Active participants 6,804,004 6,762,349

41,258,612 40,642,848

less: Fund assets (actuarial value) 9,887,423 11,927,811

Unfunded actuarial liability (not less than 0) $ 31,371,189 $ 28,715,037

EXHIBIT 32B BAC 7:442
ACTUARIAL LIABILITY RECONCILIATION/PROJECTION

Reconciliation of Unfunded Actuarial Liability

Expected unfunded actuarial liability as of April 30, 2019

Unfunded actuarial liability as of May 1, 2018 $ 28,715,037

Normal cost (including expenses) 214,303

Actual contributions (723,439)

Interest to end of plan year 1,999,735

30,205,636

Increase (decrease) due to:

Experience (gain) or loss 501,618

Plan amendment - 

Change in actuarial assumptions 663,935

Change in actuarial method - 

Net increase (decrease) 1,165,553

Unfunded actuarial liability as of May 1, 2019 $ 31,371,189

Projection of Actuarial Liability to Year End

Actuarial liability as of May 1, 2019 $ 41,258,612

Expected increase (decrease) due to:

Normal cost (excluding expenses) 98,557

Benefits paid (3,263,199)

Interest on above (103,480)

Interest on actuarial liability 2,784,956

Net expected increase (decrease) (483,166)

Expected actuarial liability as of April 30, 2020 $ 40,775,446

EXHIBIT 32B BAC 7:443
FUNDED RATIOS

Present Value of Accumulated Benefits/

Funded Ratios

Actuarial Study as of May 1, 2019 2018

Present value of vested accumulated benefits

Participants currently receiving benefits $ 26,394,082 $ 25,785,852

Inactive vested participants 7,993,744 8,094,647

Active participants 6,733,593 6,729,304

Total 41,121,419 40,609,803

Nonvested accumulated benefits 137,193 33,045

Present value of all accumulated benefits $ 41,258,612 $ 40,642,848

Market value of assets $ 9,533,656 $ 11,528,839

Funded ratios (Market value)

Vested benefits 23.2% 28.4%

All accumulated benefits 23.1% 28.4%

Actuarial value of assets $ 9,887,423 $ 11,927,811

Funded ratios (Actuarial value used for PPA)

Vested benefits 24.0% 29.4%

All accumulated benefits 24.0% 29.3%

Interest rate used to value benefits 6.75% 7.00%

EXHIBIT 32B BAC 7:444
FUNDING PERIOD

The funding period is the approximate number of years that would be required to completely 

fund the unfunded entry age normal actuarial liability if future plan experience occurs 

according to the assumptions. The funding period is an indicator of the long term financial 

soundness of the plan. Historically, funds often targeted a maximum funding period of up to 

20 years. Today, asset losses are being paid off over a maximum of 15 years and are the 

primary driver for ERISA minimum funding. An ultimate target of no more than 10 years is 

recommended. A lower, more conservative funding period target can be chosen. As the 

funding period drops, the risk of having future funding issues also diminishes.

Funding Period Calculation 

Actuarial Study as of May 1, 2019 2018

Unfunded actuarial liability

Actuarial liability $ 41,676,914 $ 41,007,942

less: Fund assets (actuarial value) 9,887,423 11,927,811

31,789,491 29,080,131

Funds available to amortize unfunded

Anticipated contributions (beg. of yr.) 651,879 679,343

less: Normal cost (including expenses) 215,895 169,050

$ 435,984 $ 510,293

Funding period (years) * * 

* Anticipated contributions are insufficient to pay normal cost and amortize unfunded liability.

EXHIBIT 32B BAC 7:445

FUNDING STANDARD ACCOUNT

Funding Standard Account

Plan Year Ending April 30, 

2020

(Projected)

2019

(Final)

Charges

Prior year funding deficiency $ 20,210,711 $ 17,247,928

Normal cost (including expenses) 267,844 214,303

Amortization charges (see Appendix C) 3,214,415 3,336,101

Interest on above 1,599,275 1,455,884

Total charges 25,292,245 22,254,216

Credits

Prior year credit balance - - 

Employer contributions 673,880 723,439

Amortization credits (see Appendix C) 1,173,177 1,210,045

Interest on above 101,933 110,021

ERISA full funding credit - - 

Total credits 1,948,990 2,043,505

Credit balance (credits less charges) $ (23,343,255) $ (20,210,711)

EXHIBIT 32B BAC 7:447
FULL FUNDING LIMIT

Projection of Assets 

for Full Funding Limit

Market

Value

Actuarial

Value

Asset value as of May 1, 2019 $ 9,533,656 $ 9,887,423

Expected increase (decrease) due to:

Investment income 527,483 551,362

Benefits paid (3,263,199) (3,263,199)

Expenses (175,000) (175,000)

Net expected increase (decrease) (2,910,716) (2,886,837)

Expected value as of April 30, 2020* $ 6,622,940 $ 7,000,586

* Ignoring expected employer contributions (as required by regulation).

Full Funding Limit 

as of April 30, 2020

For Minimum 

Required

For Maximum 

Deductible

ERISA full funding limit (not less than 0)

Actuarial liability $ 40,775,446 $ 40,775,446

less: Assets (lesser of market or actuarial) 6,622,940 6,622,940

plus: Credit balance (w/interest to year end) - n/a

34,152,506 34,152,506

Full funding limit override 

(not less than 0)

90% of current liability 55,663,538 55,663,538

less: Assets (actuarial value) 7,000,586 7,000,586

48,662,952 48,662,952

Full funding limit (greater of ERISA limit 

and full funding override) $ 48,662,952 $ 48,662,952

EXHIBIT 32B BAC 7:448
MINIMUM REQUIRED CONTRIBUTION AND FULL FUNDING CREDIT

Minimum Required Contribution

Plan Year Beginning May 1, 2019

Minimum funding cost

Normal cost (including expenses) $ 267,844

Net amortization of unfunded liabilities 2,041,238

Interest to end of plan year 155,862

2,464,944

Full funding limit 48,662,952

Net charge to funding std. acct. (lesser of above) 2,464,944

less: Credit balance with interest to year end (21,574,934)

Minimum Required Contribution (not less than 0)* $ 24,039,878

Full Funding Credit to Funding Standard

Account Plan Year Ending April 30, 2020

Full funding credit (not less than 0)

Minimum funding cost (n.c., amort., int.) $ 2,464,944

less: full funding limit 48,662,952

$ - 

* For plans in critical status, the excise tax for failure to meet minimum funding requirements is waived 

assuming the provisions of the rehabilitation plan continue to be met.

EXHIBIT 32B BAC 7:449
MAXIMUM DEDUCTIBLE CONTRIBUTION

The maximum amount of tax-deductible employer contributions made to a pension plan is 

determined in accordance with Section 404(a) of the Internal Revenue Code. For a 

multiemployer pension plan, Section 413(b)(7) of the Internal Revenue Code and IRS 

Announcement 98-1 provide that, if anticipated employer contributions are less than the 

deductible limit for a plan year, then all employer contributions paid during the year are 

guaranteed to be deductible. If anticipated employer contributions exceed the deductible 

limit, the Trustees have two years from the close of the plan year in question to retroactively 

improve benefits to alleviate the problem. 

Maximum Deductible Contribution

Plan Year Beginning May 1, 2019

Preliminary deductible limit

Normal cost (including expenses) $ 267,844

10-year limit adjustment (using “fresh start” alternative) 4,135,902

Interest to end of plan year 297,252

4,700,998

Full funding limit 48,662,952

Maximum deductible contribution override

140% of vested current liability projected to April 30, 2020 86,319,699

less: Actuarial value of assets projected to April 30, 2020 7,000,586

79,319,113

Maximum deductible contribution* $ 79,319,113

Anticipated employer contributions $ 673,880

* Equals the lesser of the preliminary deductible limit and the full funding limit, but not less than the 

maximum deductible contribution override.

EXHIBIT 32B BAC 7:450
HISTORY OF UNFUNDED VESTED BENEFITS

Presumptive Method

April 30, 

Vested 

Benefits

Interest Rate

Value of 

Vested 

Benefits Asset Value*

Unfunded 

Vested 

Benefits

Unamortized 

Portion of

VAB

1999 8.00% 21,320,239 26,730,714 (5,410,475)

2000 8.00% 24,445,204 29,343,521 (4,898,317)

2001 8.00% 26,000,291 31,034,213 (5,033,922)

2002 8.00% 27,902,578 30,715,460 (2,812,882)

2003 8.00% 30,036,998 29,281,868 755,130

2004 8.00% 30,928,911 29,168,067 1,760,844

2005 8.00% 32,289,274 27,881,442 4,407,832

2006 8.00% 33,853,627 27,199,546 6,654,081

2007 8.00% 33,998,097 27,255,918 6,742,179

2008 8.00% 34,672,083 27,249,628 7,422,455

2009 8.00% 35,484,548 21,019,994 14,464,554 1,722,031

2010 8.00% 34,484,817 23,588,308 10,896,509 1,658,609

2011 8.00% 34,740,407 22,054,814 12,685,593 1,590,114

2012 8.00% 35,419,483 20,236,556 15,182,927 1,516,139

2013 8.00% 35,456,723 18,693,990 16,762,733 1,436,246

2014 8.00% 35,571,497 18,584,838 16,986,659 1,349,962

2015 7.75% 35,983,111 17,809,726 18,173,385 1,256,775

2016 7.50% 35,861,466 15,755,085 20,106,381 1,156,132

2017 7.50% 39,294,510 13,703,552 25,590,958 1,047,439

2018 7.00% 40,609,803 11,927,811 28,681,992 930,050

2019 6.75% 41,121,419 9,887,423 31,233,996 803,270

* Actuarial Value

EXHIBIT 32B BAC 7:451
TERMINATION BY MASS WITHDRAWAL

If all employers were to cease to have an obligation to contribute to the plan, the plan would 

be considered “terminated due to mass withdrawal.” In this event, the Trustees would have 

the option of distributing plan assets in satisfaction of all plan liabilities through the purchase 

of annuities from insurance carriers or payment of lump sums. If assets are insufficient to 

cover liabilities, a special actuarial valuation pursuant to Section 4281 of ERISA would be 

performed as of the end of the plan year in which the mass withdrawal occurred. If the 

Section 4281 valuation indicates the value of nonforfeitable benefits exceeds the value of 

plan assets, employer withdrawal liability would be assessed.

The ERISA Section 4281 valuation described above uses required actuarial assumptions 

that are typically more conservative than those used for valuing an on-going plan. In order 

to illustrate the impact of the mass withdrawal assumptions, we performed an illustrative 

Section 4281 valuation as if mass withdrawal had occurred during the prior plan year. The 

value of assets used below is market value without any adjustments for outstanding 

employer withdrawal liability claims. 

As required by regulation, interest rates of 3.07% for the first 20 years and 3.05% for each 

year thereafter and the GAM 94 Basic Mortality Table projected to 2029 were used.

Illustrative Section 4281 Valuation

as of April 30, 2019

Value of nonforfeitable benefits

Participants currently receiving benefits $ 35,971,251

Inactive vested participants 14,773,055

Active participants 11,528,407

Expenses (per Section 4281 of ERISA) 433,745

62,706,458

less: Fund assets (market value) 9,533,656

Value of nonforfeitable benefits in excess of (less than) fund assets $ 53,172,802

EXHIBIT 32B BAC 7:452

APPENDICES

EXHIBIT 32B BAC 7:454
PLAN HISTORY

Origins/Purpose

The Bricklayers and Masons Local Union No. 7 Pension Plan was established effective 

February 1, 1968 as a result of a Collective Bargaining Agreement between the 

Associated General Contractors of America, Akron Chapter, the General Contractors 

Association of Akron and Akron Masons Contractors Association and the Bricklayers’ 

and Masons’ Local No. 7, Ohio of Bricklayers, Masons and Plasterers International 

Union of America. The Bricklayers’ and Masons Local No. 23 became a Participating 

Union under the Plan as of July 1, 1969 and the Bricklayers’ and Masons’ Local No. 13 

became a Participating Union under the Plan as of April 22, 1970. Both Locals have 

since merged into Local No. 7.

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management.

The purpose of the pension plan is to provide Normal and Early Retirement Benefits, 

Joint and Survivor Benefits, Deferred Vested Benefits and Death benefits. Benefits first 

became payable on February 1, 1968.

Employer Contributions

The Pension Plan is financed entirely by contributions from the employers as specified in 

the Collective Bargaining Agreements. The history of recent hourly contribution rates is 

shown in the following table:

Effective Date Hourly Contribution Rate *

May 1, 1979 $ 0.80

June 1, 1981 1.05

June 19, 1982 1.25

June 1, 1983 2.00

June 1, 1984 3.00

June 1, 1990 3.27

June 1, 1996 3.30

June 1, 2006 3.55

June 1, 2007 4.01

Sept. 1, 2008 4.41

June 1, 2009 4.81

June 1, 2010 5.21

June 1, 2011 5.61

June 1, 2012 6.01

June 1, 2013 6.41

June 1, 2014 6.46

June 1, 2015 6.66

June 1, 2016 6.80

* Effective May 1, 2006 to April 30, 2016, $2.00 of the hourly rate will be used to 

calculate benefits.

Reciprocity

The Trustees have entered into various money follows the man reciprocity agreements 

whereby a participant who transfers employment between signatories to such 

agreements will not lose pension credits.

EXHIBIT 32B BAC 7:455
SUMMARY OF PLAN PROVISIONS

Participation May 1 following completion of 435 hours during a twelve 

consecutive month period, or prior November 1, if earlier.

Year of service Plan year with at least 435 hours.

Break in service Plan year with less than 435 hours.

Forfeited service A non-vested participant with a number of consecutive 

breaks in service equaling the greater of 5 or his years of 

service. A vested participant cannot forfeit his years of 

service.

Normal retirement benefit

Eligibility Age 62 and 5 years of service or, if earlier, age 65 and 5 

years of participation.

Monthly amount $1.00 per year of past service plus 4.10% of employer 

contributions made on and after February 1, 1968 and 

before May 1, 2003; plus 3.00% of employer contributions 

made on and after May 1, 2003 and before May 1, 2005; 

plus 1.00% of employer contributions made on and after 

May 1, 2005 and before May 1, 2006; plus 1.00% of 

$2.00 of employer contributions made on and after May 1, 

2006 and before May 1, 2016; plus 0.30% of the first 

$6.66 and 1.0% of contributions over $6.66 for employer 

contributions made on and after May 1, 2016. 

Payable for life.

Early retirement benefit

Eligibility Age 55 and 10 years of service.

Monthly amount Normal, reduced by .5833% for each month under age 

62. Payable for life.

* Normal, reduced by 1/3 of 1% for each month under age 

62 for benefits of participants who were at least age 55 

and had at least 10 years of service on May 1, 2009.

Optional forms of 

payment

• 60 month certain and life

• Joint and 50% survivor*

• Joint and 75% survivor*

• Joint and 100% survivor*

* If spouse pre-deceases participant, amount in pay 

status pops-up to amount that would have been 

payable if the participant had not elected the joint and 

survivor. The pop-up feature is not subsidized.

EXHIBIT 32B BAC 7:456
SUMMARY OF PLAN PROVISIONS (CONTINUED) 

Total and permanent 

disability benefit

Eligibility No longer available as of May 1, 2009.

Deferred vested benefit

Eligibility 5 years of service, termination of covered employment.

Monthly amount 100% of normal, payable at normal or at early with 

reduction. Payable for life.

Pre-retirement surviving 

spouse benefit *

Eligibility Death of participant with eligible spouse after becoming 

eligible for, but prior to, retirement.

Monthly amount 50% of participant’s joint and 50% survivor annuity 

payable to spouse for life commencing the first day of the 

month following participant’s death.

Eligibility Death of participant with eligible spouse prior to earliest 

retirement age.

Monthly amount 50% of participant’s joint and 50% survivor annuity 

payable to spouse for life commencing at participant’s 

earliest retirement date.

* The cost of the pre-retirement surviving spouse benefit 

is paid by the participant.

Pre-retirement 5 year 

certain death benefit

Eligibility Benefit eliminated for deaths on or after May 1, 2009, 

effective May 1, 2009.

EXHIBIT 32B BAC 7:457
RECENT PLAN MODIFICATIONS

Future service benefit 

Effective date May 1, 1996

Adoption date December 6, 1996

Provisions The future service benefit accrual rate was increased 

from 3.20% to 3.30% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1996. The increase applies to active participants 

as well as inactive vested participants.

Thirteenth check

Effective date January 1, 1997

Adoption date December 11, 1997

Provisions Participants receiving benefits received a one-time 13th

check equal to the full amount of the monthly benefit or 

$100, whichever is greater.

Vesting schedule

Effective date May 1, 1997

Adoption date June 4, 1997

Provisions Vesting changed from a 5/10-year graded schedule to a 

5-year cliff schedule for active participants who work one 

hour after the effective date.

Future service benefit 

Effective date May 1, 1997

Adoption date March 6, 1998

Provisions The future service benefit accrual rate was increased 

from 3.3% to 3.85% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1997. The increase applies to active participants 

only.

EXHIBIT 32B BAC 7:458
RECENT PLAN MODIFICATIONS (CONTINUED) 

Retiree increase

Effective date May 1, 1997

Adoption date March 6, 1998

Provisions The monthly benefits being paid to retirees who retired 

prior to May 1, 1997 were increased 5%.

Future service benefit 

Effective date May 1, 1998

Adoption date December 4, 1998

Provisions The future service benefit accrual rate was increased 

from 3.85% to 4.05% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1998. The increase applies to active participants 

only.

Retiree increase

Effective date May 1, 1998

Adoption date December 4, 1998

Provisions The monthly benefits being paid to retirees who retired 

prior to May 1, 1998 were increased 4%, with a minimum 

of $10.

Thirteenth check

Effective date December 1, 1998

Adoption date December 4, 1998

Provisions Participants receiving benefits received a one-time 13th

check equal to the full amount of the monthly benefit or 

$50, whichever is greater.

EXHIBIT 32B BAC 7:459
RECENT PLAN MODIFICATIONS (CONTINUED) 

Normal retirement age

Effective date May 1, 1997

Adoption date March 5, 1999

Provisions Normal retirement age was changed from age 62 and 10 

years of service to age 62 and 5 years of service.

Future service benefit 

Effective date May 1, 1999

Adoption date February 24, 2000

Provisions The future service benefit accrual rate was increased 

from 4.05% to 4.10% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1999. The increase applies to active participants 

only.

Retiree increase

Effective date May 1, 1999

Adoption date February 24, 2000

Provisions The monthly benefits being paid to retirees who retired 

prior to May 1, 1999 were increased 5%, with a minimum 

of $10.

Early retirement factor

Effective date May 1, 1999

Adoption date February 24, 2000

Provisions The early retirement factor was changed from 1⁄2 of 1% to 

1/3 of 1% for each month under age 62 for participants 

who earn at least one hour of service on or after 

May 1, 1999.

EXHIBIT 32B BAC 7:460
RECENT PLAN MODIFICATIONS (CONTINUED) 

Thirteenth check

Effective date December 1, 1999

Adoption date February 24, 2000

Provisions Participants receiving benefits received a one-time 13th

check equal to one-half the amount of the monthly benefit 

or $50, whichever is greater.

Joint and 100% Option

Effective date January 1, 2000

Adoption date February 24, 2000

Provisions A Joint and 100% survivor option was added.

Future service benefit

Effective date May 1, 2003

Adoption date January 10, 2003

Provisions The future service benefit accrual rate was decreased 

from 4.10% to 3.00% for employer contributions made 

after May 1, 2003 for participants who retire or become 

disabled on or after May 1, 2003. The decrease applies 

to active participants only.

Future service benefit

Effective date May 1, 2005

Adoption date February 11, 2005

Provisions The future service benefit accrual rate was decreased 

from 3.00% to 1.00% for employer contributions made 

after May 1, 2005 for participants who retire or become 

disabled on or after May 1, 2005. The decrease applies 

to active participants only.

EXHIBIT 32B BAC 7:461
RECENT PLAN MODIFICATIONS (CONTINUED) 

Future service benefit

Effective date May 1, 2006

Adoption date March 10, 2006

Provisions The future service benefit accrual rate was increased 

from 1.00% to 1.50% for employer contributions made 

after May 1, 2006, but only $3.00 of the hourly 

contribution rate will be used to calculate benefits. The 

decrease applies to active participants who retire or 

become disabled on or after May 1, 2006. 

Future service benefit

Effective date May 1, 2006

Adoption date April 7, 2006

Provisions The future service benefit accrual rate was decreased 

from 1.50% of $3.00 to 0.00% for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The decrease 

applies to active participants only.

Future service benefit

Effective date May 1, 2006

Adoption date May 5, 2006

Provisions The future service benefit accrual rate was increased 

from 0.00% to 1.00% of $2.00 for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The increase 

applies to active participants only.

Optional form of benefit

Effective date January 1, 2008

Adoption date September 7, 2007

Provisions A qualified joint and 75% benefit option was added.

EXHIBIT 32B BAC 7:462
RECENT PLAN MODIFICATIONS (CONTINUED) 

Early retirement factor

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The early retirement factor was changed from 1/3 of 1% 

to .5833% for each month under age 62. Participants who 

are at least age 55 and have at least 10 years of service 

on May 1, 2009 will use the 1/3 of 1% reduction.

60 month guarantee postretirement death benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The 60 month guarantee post-retirement death benefit is 

removed for participants not yet in pay status on May 1, 

2009.

Pre-retirement 5 year 

certain death benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The pre-retirement 5 year certain death benefit is 

removed for deaths after May 1, 2009.

Total and permanent 

disability benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The total and permanent disability benefit is eliminated for 

disabilities after May 1, 2009. 

Pre-retirement surviving 

spouse benefit

Effective date May 1, 2009

Adoption date September 22, 2008

Provisions The cost is paid by the participant.

EXHIBIT 32B BAC 7:463
RECENT PLAN MODIFICATIONS (CONTINUED) 

Future service benefit

Effective date May 1, 2016

Adoption date March 10, 2016

Provisions The future service benefit accrual rate was changed from 

1.00% of first $2.00 of employer contributions to 0.3% of 

the first $6.66 of employer contributions plus 1% of any 

amount above $6.66 for contributions made on and after 

May 1, 2016.

EXHIBIT 32B BAC 7:464
ACTUARIAL ASSUMPTIONS

The following assumptions are used throughout this report except as specifically noted 

herein.

Valuation date May 1, 2019

Interest rates

ERISA rate of return 

used to value liabilities

6.75% per year net of investment expenses.

Unfunded vested 

benefits

6.75% per year net of investment expenses

Current liability 3.09% (in accordance with Section 431(c)(6) of the 

Internal Revenue Code). 

Operational expenses

Funding $175,000 per year excluding investment expenses. This 

is an average for the period until insolvency.

ASC 960 A 6.50% load was applied to the accrued liabilities for 

2019 (7.50% for 2018).

Mortality

Assumed plan mortality 100% of the RP-2006 Blue Collar Mortality Tables (the 

RP-2014 table adjusted backward to 2006 with the MP2014 projection scale) for employees and healthy 

annuitants projected forward using the MP-2018 

projection scale.

Current liability Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males 

and females as required by Section 431(c)(6) of the 

Internal Revenue Code.

EXHIBIT 32B BAC 7:465
ACTUARIAL ASSUMPTIONS (CONTINUED) 

Future retirement rates

 Active lives When eligible and according to the following schedule:

Age

Retirement

Rate

55 .15

56-57 .05

58 .10

59 .20

60 .30

61 .40

62+ 1.00

Resulting in an average expected retirement age of 60.5.

 Inactive vested lives If terminated prior to 5/1/97, or after 5/1/97 with less than 

10 years vesting service, later of normal retirement age or 

age on valuation date. If terminated after 5/1/97 with 10 

or more years vesting service, later of age 59 or age on 

valuation date.

Withdrawal T-8 Turnover Table from The Actuary’s Pension 

Handbook (less GAM 51) adjusted after age 49 - 

specimen rates shown below: Assumed rate during the 

first three years of employment is 35%*.

Age

. Withdrawal

Rate

25 .1162

30 .1121

35 .1055

40 .0940

45 .0754

50 .0531

55 .0190

60 .0100

62 .0100

* All newly reported participants are considered to have 

already worked their first year of employment. 

Future annual work hours 

Vested lives

Non-Vested lives

1,200 hours, 0 after assumed normal retirement age.

 650 hours, 0 after assumed normal retirement age.

EXHIBIT 32B BAC 7:466
ACTUARIAL ASSUMPTIONS (CONTINUED) 

Future hourly contribution 

rate

$6.80

Age of participants with 

unrecorded birth dates

Based on average entry age of participants with recorded 

birth dates and same vesting status.

Spouse assumptions

Optional form assumption

75% assumed married with the male spouse 3 years 

older than his wife.

All non-retired participants assumed to elect the life only 

form of benefit.

Inactive vested lives over 

age 70

Continuing inactive vested participants over age 70 are 

assumed deceased and are not valued.

QDRO benefits Benefits to alternate payee included with participant’s 

benefit until payment commences.

Section 415 limit 

assumptions

Dollar limit $225,000 per year.

Assumed form of 

payment for those limited 

by Section 415

Qualified joint and 100% survivor annuity.

Benefits not valued None

EXHIBIT 32B BAC 7:467
RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS

The non prescribed actuarial assumptions were selected to provide a reasonable long 

term estimate of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for 

the selection of each non-prescribed assumption that has a significant effect on the 

valuation results.

ERISA rate of return used 

to value liabilities

Future rates of return were modeled based on the Plan’s 

current investment policy asset allocation and composite, 

long-term capital market assumptions taken from Horizon 

Actuarial’s 2018 survey of investment consultants. 

Based on this analysis, we selected a final assumed rate 

of 6.75%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities.

Mortality The RP-2006 Blue Collar Mortality Tables for employees 

and healthy annuitants projected forward using the MP2018 projection scale was chosen as the base table for 

this population.

 

The blue collar table was chosen based on the industry of 

plan participants

Retirement

Withdrawal

Future work hours

Actual rates of retirement by age were studied for the 

period May 1, 2014 to April 30, 2019. The assumed future 

rates of retirement were selected based on the results of 

this study. No adjustments were deemed necessary at 

this time.

Actual rates of withdrawal by age were studied for the 

period May 1, 2014 to April 30, 2019. The assumed future 

rates of withdrawal were selected based on the results of 

this study. 

Based on review of recent plan experience adjusted for 

anticipated future changes in workforce.

EXHIBIT 32B BAC 7:468
ACTUARIAL ASSUMPTIONS USED FOR PROJECTIONS

The assumptions used for the credit balance, funded ratio and PPA zone projections are 

the same as used throughout the report with the following exceptions. 

Assumed return on fund 

assets

Current year projections 6.75%

Prior year projections 7.00%

Expenses

Current year projections $175,000 per year excluding investment expenses. 

Prior year projections $120,000 per year excluding investment expenses.

Future total hours worked

Current year projections 99,100 for the plan year ending 2020 and after.

Prior year projections 90,000 for the plan year ending 2019 and after.

Contribution rates

Current year projections $6.80

Prior year projections $6.80

Plan changes

Current year projections None

Prior year projections None

Stochastic modeling 500 trials. Future returns are modeled using an expected 

return of 6.38% for the first 10 years and 7.31% thereafter 

and a standard deviation of 11.06%, which is 

representative of the plan’s investment portfolio. The 

expected return above is a one year value and is not 

representative of longer term geometric return as 

considered when setting the ERISA return assumption.

EXHIBIT 32B BAC 7:469
ACTUARIAL METHODS

Funding method

ERISA Funding Traditional unit credit cost method, effective May 1, 2007. 

Funding period Individual entry age normal with costs spread as a level 

dollar amount over service.

Population valued

Actives Employees who have satisfied the plan’s eligibility 

requirements (435 hours worked in a plan year) and who 

had at least one hour during the preceding plan year.

Inactive vested Vested participants with no hours during the preceding 

plan year.

Retirees Participants and beneficiaries in pay status as of the 

valuation date.

Asset valuation method

Actuarial value Smoothed Market Value Method with phase in effective 

May 1, 1996. Each year’s gain (or loss) is spread over a 

period of 5 years. The actuarial value is limited to not 

less than 80% and not more than 120% of the actual 

market value of assets in any plan year.

Unfunded vested 

benefits

For the presumptive method, actuarial value, as 

described above, is used.

EXHIBIT 32B BAC 7:470
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2019 5/1/2019

Appendix C - Minimum Funding Amortization Bases

Bricklayers Local No. 7 Pension Plan

May 1, 2019 Actuarial Valuation

Charges

5/1/1990 Assumptions 30 1 0 20,751 20,751

5/1/1994 Assumptions 513,413 30 5 0 180,008 40,851

5/1/1996 Assumptions 475,139 30 7 0 217,717 37,514

5/1/1996 Plan Amendment 366,610 30 7 0 168,010 28,950

5/1/1997 Assumptions 302,027 30 8 0 152,944 23,762

5/1/1997 Plan Amendment 2,024,332 30 8 0 1,025,063 159,256

5/1/1998 Plan Amendment 1,046,114 30 9 0 575,986 81,937

5/1/1999 Plan Amendment 1,094,569 30 10 0 647,486 85,363

5/1/2000 Assumptions 481,195 30 11 0 302,926 37,373

5/1/2000 Plan Amendment 208,860 30 11 0 131,489 16,222

5/1/2002 Amendment 20,726 30 13 0 14,452 1,597

5/1/2002 Assumptions 685,458 30 13 0 477,961 52,816

5/1/2005 Experience Loss 2,241,650 15 1 0 240,124 240,124

5/1/2006 Experience Loss 1,908,358 15 2 0 393,803 203,330

5/1/2007 Assumptions 30,385 30 18 0 25,149 2,300

5/1/2008 Experience Loss 296,362 15 4 0 113,646 31,253

5/1/2009 Experience Loss 6,709,219 15 5 0 3,102,235 704,027

5/1/2011 Experience Loss 1,462,111 15 7 0 881,994 151,975

5/1/2012 Assumptions 532,014 15 8 0 354,321 55,048

5/1/2012 Experience Loss 1,652,462 15 8 0 1,100,535 170,981

5/1/2013 Experience Loss 923,614 15 9 0 668,831 95,145

5/1/2015 Assumptions 800,095 15 11 0 662,441 81,728

5/1/2016 Experience Loss 1,522,690 15 12 0 1,332,122 155,025

5/1/2017 Assumptions 2,901,933 15 13 0 2,667,067 294,717

5/1/2017 Experience Loss 1,474,632 15 13 0 1,355,283 149,762

5/1/2018 Assumption 1,567,670 15 14 0 1,505,286 158,829

5/1/2018 Experience Loss 155,801 15 14 0 149,601 15,785

5/1/2019 Assumptions 663,935 15 15 0 663,935 67,213

5/1/2019 Experience Loss 501,618 15 15 0 501,618 50,781

Total Charges: 19,632,784 3,214,415

Page C-1

EXHIBIT 32B BAC 7:471
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2019 5/1/2019

Appendix C - Minimum Funding Amortization Bases

Bricklayers Local No. 7 Pension Plan

May 1, 2019 Actuarial Valuation

Credits

5/1/1992 Assumptions 30 3 0 1,998 710

5/1/1993 Assumptions 30 4 0 62,057 17,066

5/1/1995 Plan Amendment 158,607 30 6 0 64,465 12,572

5/1/2003 Assumption 113,096 30 14 0 82,276 8,681

5/1/2003 Plan Amendment 2,117,342 30 14 0 1,540,306 162,525

5/1/2005 Assumptions 41,563 30 16 0 32,488 3,168

5/1/2005 Plan Amendment 3,412,714 30 16 0 2,666,656 260,073

5/1/2006 Plan Amendment 652,500 30 17 0 525,540 49,555

5/1/2007 Experience Gain 382,876 15 3 0 114,212 40,583

5/1/2009 Plan Amendments 2,291,241 15 5 0 1,059,438 240,431

5/1/2010 Assumptions 68,862 15 6 0 36,876 7,191

5/1/2010 Experience Gain 2,238,307 15 6 0 1,198,605 233,747

5/1/2011 Assumptions 44,153 15 7 0 26,634 4,589

5/1/2014 Experience Gain 632,588 15 10 0 492,172 64,887

5/1/2015 Experience Gain 212,291 15 11 0 175,768 21,685

5/1/2016 Assumptions 449,009 15 12 0 392,815 45,714

Total Credits: 8,472,306 1,173,177

Net Charges: 11,160,478 2,041,238

Less Credit Balance:

Less Reconciliation Balance:

Unfunded Actuarial Liability:

-20,210,711

0

31,371,189

Page C-2

EXHIBIT 32B BAC 7:472
RULES FOR ENDANGERED AND CRITICAL STATUS

Background

The Pension Protection Act of 2006 (“PPA”), enacted in August 2006, established 

special rules for plans in “Endangered” or “Critical” status. These rules become effective 

with the plan year beginning in 2008 and were originally scheduled to “sunset” in 2015.

The Multiemployer Pension Reform Act of 2014 (“MPRA”), enacted in December 2014, 

made the provisions contained in the PPA permanent. MPRA also made numerous 

changes to the PPA rules, including adding a new status for deeply troubled plans: 

Critical and Declining.

Informally, Critical Status is often referred to as “red zone” and Endangered Status as 

“yellow zone.” A plan that is neither Critical nor Endangered is said to be “green zone.”

Criteria for Endangered and Critical

The table below summarizes the criteria for these categorizations. Projected 

deficiencies are calculated as of the last day of each plan year and are based on 

contribution rates codified in bargaining agreements and, if applicable, wage allocations. 

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN:

Plan is Critical if it is described in one or 

more of the following:

• Funded percentage is less than 65%, 

and, inability to pay nonforfeitable

benefits and expenses for next 7 years, 

or

• Projected funding deficiency (not

recognizing extensions) in the current 

year or next 3 years (next 4 years if 

funded at less than 65%), or

• (1) Contributions are less than current 

year costs (i.e. “normal cost”) plus 

interest on any unfunded past liabilities, 

and, (2) value of vested benefits for nonactives is greater than for actives, and, 

(3) projected funding deficiency (not

recognizing extensions) in the current 

year or next 4 years, or

• Inability to pay all benefits and expenses 

for next 5 years.

Plan is Endangered if it is not Critical and it is 

described in one of the following:

• Funded percentage is less than 80%, or

• Projected funding deficiency in the current 

year or next 6 years.

A non-critical plan that meets both of the 

preceding criteria is considered “Seriously 

Endangered” 

A plan that meets one of the two Endangered 

Status criteria above, but was not in Critical or 

Endangered for the preceding year, will remain 

not Critical or Endangered (i.e. it will be in 

“green zone”) provided it is not projected to 

meet either of the two Endangered Status 

criteria as of the end of the 10th plan year 

following the certification year

EXHIBIT 32B BAC 7:473
RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN (cont.): 

A plan with a 5-year amortization extension 

under IRC Section 431(d) that previously 

emerged from Critical Status in PYB 2015 or 

later will re-enter Critical Status only if it is 

described in one of the following:

• Projected funding deficiency in the 

current year or next 9 years (including

amortization extensions), or, 

• Projected insolvency within the next 30 

years

GETTING OUT:

Plan emerges from Critical Status when it 

meets all of the following:

• No longer meets any of the Critical 

Status tests, and, 

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

A plan with a 5-year amortization extension 

under IRC Section 431(d) emerges from 

Critical Status when it meets all the following:

• No projected funding deficiencies in the 

current year or next 9 years (including 

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

Plan emerges from Endangered Status when it 

no longer meets the requirements to be 

classified as Endangered or when it enters 

Critical Status

EXHIBIT 32B BAC 7:474
RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Restrictions for Endangered and Critical Plans

The Trustees of a plan that is in Endangered or Critical status face a number of restrictions in 

plan improvements that can be adopted and bargaining agreements that can be accepted.

Period Endangered/Critical Restrictions

Date of first certification 

through adoption of funding 

improvement/rehabilitation 

plan (“plan adoption period”)

• No reduction in level of contributions for any participants

• No suspension of contributions

• No exclusion of new or younger employees

• No amendment that increases the liabilities of the plan by 

reason of any increase in benefits, change in accrual, or 

change in vesting unless required by law

After adoption of a funding 

improvement/rehabilitation 

plan until end of funding 

improvement/rehabilitation 

period

• Cannot be amended so as to be inconsistent with funding 

improvement/rehabilitation plan

• No amendment that increases benefits, including future 

accruals, unless actuary certifies as being paid for with 

contributions not contemplated in funding improvement/ 

rehabilitation plan and still expected to meet applicable 

benchmark after considering the amendment

Additionally, Critical status plans cannot pay benefits greater than the single life 

annuity once the initial red zone notice is sent unless the benefit is eligible for 

automatic cash-out.

Critical and Declining Plans

Beginning in 2015, plans that are in Critical Status and are projecting insolvency within 

the next 15 years (20 years in some circumstances) are certified by the actuary as being 

in “Critical and Declining.” These plans may have access to new tools that will allow 

them to reduce many previously-untouchable benefits, including benefits for participants 

in pay status. However, these expanded benefit reductions require government 

approval, must not be rejected by a majority of all participants through a vote, and are 

subject to a number of other requirements and limitations.

Selected Other MPRA Changes (effective with 2015 plan years)

• Plans projected to be Critical within the next 5 years can elect to be in Critical Status 

immediately

• New contribution rate increases required by a funding improvement or rehabilitation 

plan are not considered in calculating an employer’s withdrawal liability or payment 

schedule

• If, upon the expiration of a collective bargaining agreement under a funding 

improvement or rehabilitation plan, bargaining parties do not adopt a new agreement 

consistent with an updated schedule, the Trustees must implement the update to the 

schedule previously adopted.

EXHIBIT 32B BAC 7:475
GLOSSARY OF COMMON PENSION TERMS

Benefits

Accrued Benefit: A benefit that an employee has earned (or accrued) through past 

participation in the plan. It is the amount payable at normal retirement age. 

Why it matters: Under the law, Accrued Benefits generally may not be reduced 

by plan amendment. The exception to this anti-cutback protection would be for 

“adjustable benefits” that come into play for critical status plans. 

Actuarial Equivalence: Given a set of actuarial assumptions, when two different sets 

of payment scenarios have an equal present value.

Early Retirement Reduction Factor: A retirement benefit that begins before normal 

retirement age may be reduced. The plan document defines the amount of the 

reduction by formula or a table of factors. This reduction may or may not be 

actuarially equivalent, but its present value can be no less than actuarially equivalent 

to the benefit payable at normal retirement age. 

Benefit Crediting (Accrual) Rate: A general reference to the calculation of the 

amount of monthly retirement benefit earned per dollar contributed or per year or hour 

worked. 

Assets

Market Value of Assets: This is the fair value of all assets in the fund on an accrued, 

not cash basis. The market value of assets matches the value in the plan audit.

Actuarial Value of Assets: The amount of assets recognized for actuarial valuation 

purposes. Recent changes in market value may be partially recognized (there are 

variations allowed on the exact recognition). Generally the actuarial value is limited to 

not be less than 80% or more than 120% of the market value. 

Why it matters: Many funding calculations use this “smoothed” asset value 

method to lessen the impact of volatility in the market value of plan assets.

Assumed Rate of Return: Long term assumption of the rate of return on assets 

based upon the diversification mix of invested assets. 

Why it matters: This assumption is used in calculating the present values 

discussed in the Liabilities section below. The Assumed Rate of Return has an 

inverse relationship with plan liabilities. In other words, a lower Assumed Rate 

of Return increases liabilities, while a higher Assumed Rate of Return 

decreases plan Liabilities.

EXHIBIT 32B BAC 7:476
GLOSSARY OF COMMON PENSION TERMS (CONT.)

Liabilities 

Present Value of Accrued Benefits: The discounted value of benefit payments 

due in the future but based only on the current Accrued Benefits of each participant. 

The value is based on actuarial assumptions including an assumed rate of 

investment return. 

Why it matters: This liability is one of the primary factors in determining a plan’s 

annual PPA funded status (see Funded Ratio).

Present Value of Vested Benefits: The discounted value of Accrued Benefits that 

are considered vested (non-forfeitable). Benefits that are not vested include those of 

participants who have not satisfied the plan vesting requirement (usually five years of 

service). In addition under the law some death and temporary disability benefits are 

also considered non-vested regardless of service because they are not considered 

protected benefits. 

Why it matters: This liability is the primary driver of a plan’s Employer 

Withdrawal Liability.

Actuarial (Accrued) Liability: For inactive members this is the same as the Present 

Value of Accrued Benefits above. For active members this depends on the cost 

method selected by the actuary. Under the accrued benefit or traditional unit credit 

cost method this is also the same as the Present Value of Accrued Benefits. Under 

other cost methods (including most commonly entry age normal) this represents an 

alternate allocation of projected benefit cost over the working lifetime of active 

members. Under the entry age normal cost method, the active Actuarial Liability is 

larger than the Present Value of Accrued Benefits. 

Unfunded Actuarial Liability: The Actuarial Liability less the Actuarial Value of 

Assets. 

Current Liability: This is similar to the Present Value of Accrued Benefits, but uses 

a statutory, significantly lower, interest rate (equivalent to an expected rate of return 

on a bond only-type portfolio) and statutory mortality tables. The lower interest rate 

means that Current Liability tends to be significantly higher than the Present Value of 

Accrued Benefits. This number has very little impact on multiemployer plans. 

Normal Cost: The present value of all benefits that are expected to accrue or to be 

earned under the plan during the plan year. The way in which a benefit is considered 

to be earned varies with the actuarial cost method.

Risk: The potential of future deviation of actual results from expectations derived 

from actuarial assumptions.

EXHIBIT 32B BAC 7:477
GLOSSARY OF COMMON PENSION TERMS (CONT.)

Funding

Funded Ratio (Funded Percentage): Actuarial Value of Assets divided by the 

Present Value of Accrued Benefits. This is one of two key measures used to 

determine a plan’s annual PPA funded status. This may also be referred to as PPA 

Funded Ratio. This must be greater than 80% to avoid endangered status.

Credit Balance: The accumulated excess of actual contributions over legally 

required minimum contributions as maintained in the funding standard account. The 

funding standard account is maintained by the actuary in the valuation process and 

reported annually in schedule MB to the Form 5500 filing. A negative credit balance 

is known as an accumulated funding deficiency. Prior to PPA, an accumulated 

funding deficiency caused an immediate excise tax (waiver under PPA if certain 

conditions are met). After PPA, a current or projected funding deficiency is one of the 

key measures used in determining the annual PPA status. It can eventually trigger 

an excise tax levied on contributing employers.

Withdrawal Liability

Unfunded Vested Benefits (UVB): Present Value of Vested Benefits less the value 

of plan assets determined on either an actuarial or market value basis. The selection 

of asset measurement is part of the withdrawal liability method of the Plan.

Employer Withdrawal Liability (EWL): An employer that withdraws from a 

multiemployer plan is liable for its proportionate share of Unfunded Vested Benefits, 

determined as of the date of withdrawal. 

Why it matters: If a contributing employer leaves the plan while it has Unfunded 

Vested Benefits liability, that employer’s allocated share of Employer Withdrawal 

Liability is either assessed, as applicable, or reallocated among the plan’s 

remaining active employers if the presumptive method is used. A construction 

employer withdrawing from a construction industry plan will not be assessed 

unless they continue performing work within the jurisdiction of the CBA or 

restart such work within a period of 5 years. Small amounts (under $150,000) 

are generally reduced or eliminated pursuant to the “de minimis rule.”

EXHIBIT 32B BAC 7:478