Redacted by the U.S. Department of the Treasury

DB1/ 92101737 

New York State Teamsters Conference 

Pension and Retirement Fund’s 

Application to the Department of the Treasury 

 for 

Approval of Suspension of Benefits 

under the 

Multiemployer Pension Reform Act of 2014 

Dated: May 15, 2017
1

SECTION 1. BACKGROUND AND PURPOSE 

Pursuant to Internal Revenue Service Revenue Procedure 2016-27 (the “Revenue 

Procedure”) and the Department of the Treasury’s Final regulations issued under Section 

432(e)(9) of the Internal Revenue Code of 1986 (the “Code”) and published in the Federal 

Register on April 28, 2016 (collectively, the “Regulations”), the Board of Trustees (“Trustees”) 

of the New York State Teamsters Conference Pension and Retirement Fund (the “Plan”) submits 

this Application, and the accompanying Exhibits and Appendices, to the Secretary of the 

Treasury for approval of a suspension of benefits. 

Section 432(e)(9)(G) of the Code provides that the Secretary of the Treasury shall 

approve an application for the approval of suspension of benefits upon finding that the Plan is 

eligible for the benefits suspension and has satisfied the criteria set forth in subparagraphs (C), 

(D), (E), and (F) of Section 432(e)(9) of the Code. As set forth below, the Plan is eligible to 

suspend benefits and has satisfied each of the enumerated criteria under the Regulations. 

Therefore, the Plan respectfully requests that the Secretary approve this Application to suspend 

benefits accordingly. 
2

SECTION 2. APPLICATION PROCEDURES 

.01 Plan Sponsor submission. The Trustees, as Plan Sponsor, submit this Application 

for approval of a proposed benefit suspension under Code Section 432(e)(9). This 

Application is signed and dated by both a Union and an Employer Co-Chair Trustee, who 

are both authorized to sign and current members of the Board of Trustees. The proposed 

suspension of benefits is sometimes referred to herein as the “Pension Preservation Plan” 

or “PPP.” 

.02 Terms of Plan’s proposed benefit suspension. 

Effective Date. The effective date of the proposed suspension is October 1, 

2017. 

Expiration Date. The proposed suspension will not expire by its own terms. 

Different Treatment of Participants and Beneficiaries. The Trustees’ proposed 

suspension provides for different treatment between only two categories of Plan 

Participants: Active Participants and Non-Active Participants. Active 

Participant is defined as a Participant who (1) has not retired and entered pay 

status as of September 30, 2017 and (2) had at least 500 hours of employer 

contributions submitted to the Plan on his behalf in the 2015 Plan Year, in the 

2016 Plan Year, or in the 2017 Plan Year before October 1, 2017. Non-Active 

Participant is defined as any Participant who does not meet the definition of 

Active Participant and includes retirees, beneficiaries, and terminated vested 

Participants.1

Active Participants: The proposed benefit suspension for Active 

Participants will be a 18% reduction in the accrued monthly benefit as of 

September 30, 2017, subject to the limitations described in Code Sections 

432(e)(9)(D)(i), (ii) and (iii). The formula used to determine the amount 

of the proposed suspension for Active Participants is based on the 18% 

reduction percentage being applied to each Active Participant’s monthly 

benefit amount. 

Non-Active Participants: The proposed benefit suspension for NonActive Participants will be a 29% reduction in the accrued monthly benefit 

as of September 30, 2017, subject to the limitations described in Code 

Sections 432(e)(9)(D)(i), (ii) and (iii). The formula used to determine the 

amount of the proposed suspension for all Non-Active Participants is 

based on the 29% reduction percentage being applied to each Non-Active 

Participant’s monthly benefit amount. 

1 The Plan is a calendar year plan, effective January 1 through December 31.
3

.03 Penalties of perjury statement. See Exhibit 1. 

.04 Public disclosure statement. See Exhibit 2. 
4

SECTION 3. DEMONSTRATION THAT THE PLAN IS ELIGIBLE FOR 

SUSPENSION 

.01 Plan actuary’s certification of Critical and Declining status. See Exhibit 3 for a 

certification from the Plan’s actuary required under Section 432(b) that the Plan is in 

critical and declining status as defined in Section 432(b)(6) for the Plan Year 

commencing 2017. Included with this certification is documentation supporting the 

actuarial certification of status, including a Plan Year-by-Plan Year projection of the 

Plan’s available resources and the benefits under the Plan, demonstrating that the Plan is 

projected to become insolvent during the 20262 Plan Year. The documentation includes a 

description of each of the assumptions used, including the new entrant profile, the total 

contribution base units (hours) and average contribution rates. The Plan Year-by-Plan 

Year projection separately identifies the market value of assets as of the beginning and 

end of the 2016 Plan Year through the 2026 Insolvency Year, and the following cashflow items for those years: (1) contributions; (2) withdrawal liability payments; (3) 

benefit payments; separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, 

currently active participants, and future new entrants; (4) administrative expenses; and (5) 

investment returns. 

.02 Plan actuary’s certification that the plan is projected to avoid insolvency. See 

Exhibit 4 for a certification from the Plan’s actuary under Section 432(e)(9)(C)(i) that 

the Plan is projected to avoid insolvency within the meaning of Section 418E taking into 

account the proposed benefit suspension, and assuming that the proposed suspension 

continues indefinitely. Included with this certification is documentation supporting the 

certification, including a Plan Year-by-Plan Year projection of the available resources of 

the Plan within the meaning of Section 418E(b)(3) and the benefits under the Plan 

demonstrating the avoidance of insolvency of the Plan through the extended period of 32 

Plan Years, which would be the 2049 Plan Year. The documentation includes a 

description of each of the assumptions used, including the new entrant profile, the total 

contribution base units (hours) and average contribution rates. Also included with this 

certification is the Plan’s Plan Year-by-Plan Year projection that separately identifies the 

market value of assets as of the beginning and end of the initial period and each 

subsequent Plan Year in the extended period and the following cash-flow items for the 

initial period and each of those years: (1) contributions; (2) withdrawal liability 

payments; (3) benefit payments, separately identifying benefit payments with respect to 

current retirees and beneficiaries, terminated vested participants who are not currently 

2 Based on the updated asset values used for this Application, the actuary subsequently determined that 

the Plan would become insolvent in 2027. 
5

receiving benefits, current active participants, and future new entrants; (4) administrative 

expenses; and (5) investment returns.3

.03 Plan sponsor’s determination of projected insolvency. The Trustees determined 

under Section 432(e)(9)(C)(ii), after a review of all available information and possible 

Plan changes, that the Plan is not projected to avoid insolvency if benefits are not 

suspended, even though the Trustees have taken all reasonable measures to avoid 

insolvency. The Trustees made this formal determination at their meeting on May 19- 

20, 2016.

.04 See Exhibit 5 for information which supports the Trustees’ determination of 

projected insolvency. See also Exhibit 3, Appendix C for additional actuarial 

information in support of the Trustees’ determination. 

The Trustees have included additional documentation and information in Section 5 of this 

Application illustrating their determination of projected insolvency and the reasonable 

measures taken into account in making the determination that the proposed suspensions 

are necessary to avoid insolvency. 

3

 For this purpose, the initial period begins on the first day of the calendar quarter in which the 

Application is submitted (April 1, 2017) and ends with the last day of the Plan Year that includes that first 

day (December 31, 2017). 
6

SECTION 4. DEMONSTRATION THAT THE PLAN’S PROPOSED 

SUSPENSION SATISFIES THE STATUTORY REQUIREMENTS 

.01 Demonstration that limitations on individual suspensions are satisfied. See 

Exhibit 6 for a demonstration of how the proposed suspension satisfies the limitations 

described in Sections 432(e)(9)(D)(i), (ii) and (iii) as required under the Revenue 

Procedure. Exhibit 6 includes: 

(1) A sample calculation applying the guarantee-based limitation under 

§432(e)(9)(D)(i) for an individual in each category or group identified in 

accordance with the Revenue Procedure.

(2) A sample calculation applying the disability-based limitation under 

§432(e)(9)(D)(iii) for an individual in each category or group identified in 

accordance with the Revenue Procedure. Additionally, see Exhibit 16, at page 

40 for a description of each benefit based on disability under the Plan that is paid 

to an individual under the Plan (including disability benefits that are not available 

to newly disabled participants).

(3) A sample calculation applying the age-based limitation under 

§432(e)(9)(D)(ii) for an individual in each category or group identified in 

accordance with the Revenue Procedure. 

.02 Demonstration that the proposed suspension is reasonably estimated to enable the 

plan to avoid insolvency. See Exhibit 7 for a demonstration that, in accordance with 

Section 432(e)(9)(D)(iv), the proposed benefit suspension is reasonably estimated to 

enable the Plan to avoid insolvency. Exhibit 7 includes: 

(1) An illustration, prepared on a deterministic basis, showing that: 

(a) For each Plan Year during the extended period described in 

§1.432(e)(9)-1(d)(5)(ii)(C), the plan’s solvency ratio – the ratio of the 

Plan’s available resources (as defined in § 418(E)(b)(3)) to the scheduled 

benefit payments under the Plan for the Plan Year – is projected on a 

deterministic basis to be at least 1.0. 

(b) The Plan’s projected funding percentage at the end of the extended 

period is less than or equal to 100 percent, and neither the Plan’s solvency 

ratio nor its available resources are projected to decrease in any of the last 

five Plan Years of the extended period. 
7

(2) An illustration, using stochastic projections that reflect variance in investment 

return, that the probability the Plan will avoid insolvency throughout the extended 

period as result of the proposed suspension is greater than 50 percent. 

(3) A description of each assumption used, including: 

(a) An explanation of the information and analysis that led to the selection 

of the actuarial assumption used for the deterministic projections under 

Section 4.02(1) of the Revenue Procedure as it differs from that used 

under Section 3.01 of the Revenue Procedure. 

(b) With respect to stochastic projections described in Section 4.02(2) of 

the Revenue Procedure, the assumed mix of assets (and how it compares 

with the current mix of assets), the distribution of returns for each asset 

class, and the correlation among those rates of returns and any other 

economic variables in the projections. 

(c) An explanation of the information and analysis that led to the selection 

of the actuarial assumption used for stochastic projections described in 

Section 4.02(2) of the Revenue Procedure as it differs from that used for 

deterministic projections described in Section 4.02(1) of the Revenue 

Procedure. 

.03 Demonstration that the proposed suspension is reasonably estimated to not 

materially exceed the level necessary to avoid insolvency. See Exhibit 8 for a 

demonstration that, in accordance with Section 432(e)(9)(D)(iv), the proposed benefit 

suspension is reasonably estimated to not materially exceed the level necessary to enable 

the Plan to avoid insolvency. The demonstration includes an illustration, prepared on a 

deterministic basis, of the Plan’s available resources and solvency ratio as described in 

Section 4.02(1) of the Revenue Procedure (and also an illustration of the probability that 

the Plan will avoid insolvency prepared using stochastic projections, as described in 

Section 4.02(2) of the Revenue Procedure) showing the proposed suspension would not 

reasonably be estimated to avoid insolvency if the dollar amount of the proposed 

suspension for each participant and beneficiary were reduced (but not below zero) by the 

greater of: 

(1) Five percent of the reduction in the periodic payment proposed for that 

participant or beneficiary; or 

(2) Two percent of the participant’s or beneficiary’s periodic payment 

determined without regard to the reduction proposed in the application. 
8

.04 Demonstration that the proposed benefit suspension is distributed equitably. In 

accordance with Section 432(e)(9)(D)(vi), the proposed benefit suspension is distributed 

in an equitable manner across the Plan’s participant and beneficiary population. 

(1) See Exhibit 9 for a demonstration of the following: 

(a) The number of participants, beneficiaries, and alternate payees; the 

average monthly benefit before the suspension; the average monthly 

benefit after the suspension (determined taking into account the individual 

limitations); and the aggregate present value of the reduction in benefits for 

all individuals. 

(b) The distribution of the benefit suspension for the requested 

demonstrations under this section. The demonstration shows a count of 

individuals whose benefits are not reduced, and whose benefits are 

reduced by a percentage that falls within a series of ranges that do not 

exceed 10%. This information is shown on an aggregate basis and as 

between the Active and Non-Active Participant groups.

(2) Since the proposed suspension will be implemented differently between two 

different groups, Active Participants and all Non-Active Participants, the 

Application includes the following information: 

(a) The information described in Sections 4.04(1)(a) and (b) above for 

each such category or group, which is in Exhibit 9. 

 (b) The factors the Trustees considered in designing the proposed benefit 

suspensions to be distributed in an equitable manner across the 

Participant and beneficiary population, which include: 

 Accelerating employer withdrawals from the Plan, increasing the 

risk of additional benefit reductions for participants in and out of 

pay status; 

 Negative reaction by Active Participants that would further 

prompt withdrawals of Active Participant groups and contributing 

employers, and Active Participants reasonably likely to withdraw 

support; 

 History of benefit reductions for Active Participants; 

 Amount of benefit; 

 Discrepancies/relative benefits as between Active Participants and 

Non-Active Participants, including subsidized benefits; and 

 Differences in historical employer contribution rates/increases as 

between Active Participants and Non-Active Participants. 

(c) Factors listed in Section 432(e)(9)(D)(I) through (XII) were taken into 

account in designing the proposed suspensions. 
9

(d) After thorough consideration of the above factors, the Plan proposes a 

different suspension in benefits for two different groups: Active 

Participants and Non-Active Participants. The Trustees have proposed 

different suspensions for these two groups and designed them equitably 

based on a reasonable application of relevant factors. 

First, the Trustees identified the retention of Active Participants as the 

most important factor for ensuring the Plan’s continued viability. The 

Trustees recognize that the Plan simply will not survive unless it retains 

its Active Participant population and the corresponding employer 

contributions in the Plan. The Plan receives no employer contributions 

on Non-Active Participants, leaving Active Participants (and some 

employer withdrawal liability payments) as the sole sources of funding. 

The Trustees are convinced that the proposed reduction for Active 

Participants appropriately limits the risk that they will withdraw support 

for the Plan. As discussed in more detail later in this Application, 

employers and bargaining unit groups have left the Plan at an alarming 

rate over the last decade as contribution rates have steadily increased and 

the Plan has repeatedly reduced benefits for Active Participants. To stop 

this trend, the Plan must demonstrate to employers and Active 

Participants that there is an end in sight for continued benefit reductions 

and contribution increases, and that the Plan will offer competitive 

retirement benefit options in exchange for the rates at which employers 

currently are contributing. Failing to provide a competitive pension 

benefit, the Trustees fear – and history has demonstrated – will result in 

more employers and bargaining groups withdrawing from the Plan 

leading to a decreased Active membership and less employer 

contributions. 

The proposed suspensions in this Application (together with the Trustees’ 

communications to, and informational meetings with, Active Participants) 

demonstrate to Active Participants that a final 18% reduction in their 

benefits, together with a 29% reduction to Non-Active Participants are 

not only projected to save the Plan, but will allow Active Participants to 

continue accruing benefits at the same rate they have since 2011. The 

Active Participants have never previously been provided with such a 

projection – no such projection was available - because the law prohibited 

reductions to participants in pay status. The Active Participants can now 

see there is a reason to remain in the Plan. The Trustees determined that 

reducing Active Participants’ benefits by 18% and continuing benefit 

accruals will make the Plan more attractive to Active Participant groups 

and will result in their voting in favor of the proposed suspensions and 

against any potential employer-negotiated withdrawal. 

Likewise, the benefit suspensions and contribution increases provide 

employers with more specific information about their future economic 

obligations to the Plan. Contributing employers will know that future 
10

contribution increases will not only be less than what are currently 

required under the Plan’s Rehabilitation Plan, but will cease all together 

in 15 years. As is discussed later in the Application, the contribution rate 

increases required under the Rehabilitation Plan are not sustainable; the 

contribution rate increases set forth in this Application are sustainable, 

realistic, and will provide an incentive for employers not to withdraw. 

Additionally, in considering the different suspension percentages, the 

Trustees considered relative benefit levels and previous benefit reductions 

for Active Participants. As outlined in detail in Section 5, the Active 

Participant population has already incurred several significant benefit 

reductions since 2004. The Trustees cut accruals by 50% in 2004. The 

Trustees eliminated most adjustable benefits and early retirement 

subsidies for Active Participants under the Rehabilitation Plan, and 

participants working under certain alternative schedules have been forced 

to divert wages to pay for remaining early retirement subsidies. While 

there are some Non-Active Participants who also incurred prior benefit 

reductions, they are no longer a source of funding for the Plan. 

Accordingly, the Trustees settled on two categories of reductions, with a 

strong focus on retaining support for the Plan from Active Participants 

who are still working and providing a contribution base for the Plan. The 

Trustees recognized that losing Active Participant support would lead to 

further erosion in the Plan’s contribution base, and likely accelerated 

employer withdrawals. This would further exacerbate the Plan’s funding 

problem, which would eventually force the Trustees to reduce benefits 

further for all participants, including Non-Active Participants. 

Prior to the passage of the Multiemployer Pension Reform Act (MPRA), 

federal law prohibited the Plan from reducing or modifying vested 

accrued benefits. This meant that all pension reductions to meet Pension 

Protection Act (PPA) requirements and to address the Plan’s funding 

issues were made to Active Participants’ benefits. Accordingly, the 

Trustees believe the prior reductions for Active Participants must be 

given great weight when considering the equitable distribution of the 

proposed suspensions between the Active and Non-Active Participants. 

The proposed suspension reduction percentages for each group – 18% for 

Actives and 29% for Non-Actives – were also designed and tested to 

ensure the difference amounted to an equitable distribution when 

considered against the relevant factors. Specifically, the Trustees 

considered the comparative aggregate savings to the Plan from the benefit 

suspensions between the two groups, and determined that the chosen 

percentages amounted to similar total savings in liability to the Plan after 

considering the previous benefit reductions to Active Participants under 

the Rehabilitation Plan and the pre-PPA benefit reductions. Additionally, 

the Trustees considered the practical effect on the benefit calculation for 

each group, and concluded that the selected percentages yielded a 
11

reasonably comparable benefit. These considerations are discussed 

below. 

Considering the relative aggregate liability reduction between the two 

groups, the decrease in the Plan’s actuarial liability as a result of the 

benefit suspensions for retirees and beneficiaries is approximately $470 

million. The corresponding decrease in liability to the Plan for Active 

Participant benefit suspensions is approximately $121 million. See 

Exhibit 9.

In addition to the reduction in liability for Active Participants associated 

with the proposed benefit suspensions, the Trustees also considered the 

previous subsidy reductions for Actives under the Rehabilitation Plan. 

The decrease in liability as of January 1, 2011 due to the adjustable 

benefits reduced as part of the Rehabilitation Plan resulted in a decrease 

in Plan liabilities of approximately $190 million. See Exhibit 21, 

Actuarial Valuation as of January 1, 2016 at page 17. With interest to 

the date of suspension, the value of the reduction in adjustable benefits 

would be greater than $190 million. Additionally, as a result of the 

Rehabilitation Plan benefit reductions, the value of annual benefit 

accruals was reduced by approximately $20 million per year. Since the 

Trustees adopted the Rehabilitation Plan in 2011, the loss of benefits 

earned by Active Participants is approximately $125 million (estimated to 

be over $160 million with interest). Lastly, the value of annual benefit 

accruals was significantly decreased in 2004 from 2.6% of contributions 

to 1.3% of contributions. This change in future accruals reduced the value 

of annual benefit accruals by approximately $25-$30 million dollars per 

year. See Exhibit 21, Actuarial Valuation as of January 1, 2016, 

Appendix C for benefit accrual information. Combining the reduction 

in liability associated with the proposed suspensions, the elimination of 

subsidies under the Rehabilitation Plan, and the prior reductions in benefit 

accruals, the total reduction in liability for Active Participants is 

consistent with, or possibly greater than the reduction in liability 

associated with Non-Active Participants under the proposed suspensions. 

The Trustees believe the close comparison in liability savings 

demonstrates that the different benefit suspension percentages are an 

equitable distribution between Actives and Non-Actives. 

In determining whether the proposed suspensions are equitable among the 

two groups, the Trustees also reviewed how the relative suspensions 

affect participant benefits in each group. Specifically, they compared 

Non-Active Participants who retired with 30 years of service to Active 

Participants with varying credit to date, but who will retire in the future 

with 30 years of service. Specifically, a retiree with over 30 years of 

service is estimated to have a monthly benefit of $5,000 before any 

reduction for form of payment as of October 1, 2017. Under the proposed 
12

suspension, this retiree’s benefit would be reduced to $3,550 after a 29% 

reduction. 

By comparison, an Active Participant who currently has 20 years of 

service will retire after 30 years of service with an estimated monthly 

benefit of $4,100. With a 18% benefit suspension (on the portion of the 

accrued benefit earned prior to October 1, 2017), this Active Participant 

would have a reduced benefit of $3,551. Using another comparison, an 

Active Participant with 10 years of service and 20 years of future service 

will have a total estimated monthly benefit of $3,500. After a 18% 

benefit suspension (on the portion of the accrued benefit earned prior to 

October 1, 2017), this Active Participant would have a reduced benefit 

amount of $3,266 Lastly, a newly hired Active Participant (not subject to 

suspension) with 30 years of future service will have a total estimated 

monthly benefit of $3,350. These examples are shown in the table below. 

Status

Service 

at 2017

Benefit at 

2017

Proposed 

Suspension

Benefit at 

2017 After 

Suspension

Future 

Service

Future 

Accruals

Total Benefit 

After 

Suspension

Retired 30+ 

Years 

$5,000 29% $3,550 0 Years $0 $3,550 

Active 20 Years $3,050 18% $2,501 10 Years $1,050 $3,551 

Active 10 Years $1,300 18% $1,066 20 Years $2,200 $3,266 

Active 0 Years $0 18% $0 30 Years $3,350 $3,350 

Although this example is based on the accruals of a UPS full-time 

employee, there would be a similar comparative result using participants 

working for employers with lower contribution rates. Because the Plan’s 

benefits are based to a large extent on the employer’s contribution rate, 

the dollar amount of the benefits would be similarly lower for both the 

retired and active examples. 

The analysis of relative benefits strongly supports the Trustees’ 

determination that the proposed benefit suspensions are equitably 

distributed across the participant and beneficiary population. Although 

the 29% reduction for Non-Active Participants, such as retirees, is larger 

than the 18% for Active Participants, the percentages produce a 

reasonably comparable benefit between the two groups. 

.05 Notices. 
13

The following describes the Trustees’ method for satisfying the notice 

requirements of Section 432(e)(9)(F). 

(1) Individual Notices. 

See Appendix A for each type of actual notice that will be given to each 

participant, beneficiary, and alternate payee under the Plan. The Plan has 

included the following eight (8) sample actual notices: 

1. Participant, beneficiary, alternate payee in pay status subject to 

suspensions. 

2. Participant, beneficiary, alternate payee in pay status with Social 

Security benefit leveling subject to suspensions. 

3. Participant, beneficiary, alternate payee below Normal Retirement 

Date, not in pay status, and subject to suspensions. 

4. Participant, beneficiary, alternate payee over Normal Retirement Date, 

not in pay status, and subject to suspensions. 

5. Participant, beneficiary, alternate payee under age 80 and protected 

from suspensions by the PBGC guarantee-based limitation. 

6. Participant, beneficiary, alternate payee over age 80 and protected 

from suspensions by the age-based limitation. 

7. Participant, beneficiary, alternate payee protected by the disabilitybased limitation. 

8. Participant, beneficiary, alternate payee partially protected by the 

PBGC guarantee-based limitation. 

(2) Efforts made to contact Participants, Beneficiaries and Alternate Payees.

The Trustees will make all reasonable efforts to contact all participants, 

beneficiaries of deceased participants, and alternate payees of the Plan 

(regardless of whether their benefits are proposed to be suspended) 

pursuant to the Treasury’s Final Regulations and in satisfaction of their 

fiduciary duties under ERISA. Specifically, the Trustees will provide 

notice to the last known address of the participant, beneficiary or alternate 

payee on file with the Plan, using the same address the Trustees used to 

distribute the Plan’s most recent annual funding notice. If that notice is 

returned as undeliverable, the Trustees will contact the Teamster local 

unions representing Participants in the Plan in an attempt to locate those 

missing individuals for whom the notice was returned as undeliverable. 

Further, if still necessary to locate missing individuals, the Trustees will 

request contact information from the plan administrators of any other 

employee benefit plans that the Trustees reasonably believe may have 

information useful for locating the missing individuals. Lastly, the 

Trustees will then use an internet search tool, a credit reporting agency 
14

and a commercial service to search for those remaining individuals for 

whom they were not able to obtain updated information from the local 

unions. The Trustees will mail notices to individuals within five (5) days 

of locating them. 

(3) Notices will not be delivered electronically. 
15

(4) List of contributing employers. 

See Exhibit 10 for a list of the contributing employers as of the date of 

this Application that have an obligation to contribute to the Plan within the 

meaning of Section 4212(a) of ERISA.

(5) Employee organization representing participants under the Plan. 

The employee organizations representing participants under the Plan are: 

Teamster Local Union Nos. 118, 264, 294, 317, 449, 529, 560, 687, and 

812. 
16

SECTION 5. PLAN SPONSOR’S DETERMINATION RELATING TO 

REASONABLE MEASURES TAKEN TO AVOID INSOLVENCY 

.01 Measures taken to avoid insolvency

Although only required to describe ten years of their efforts to avoid insolvency, 

the Trustees have been proactively taking steps to address funding issues for 

longer than ten years. 

Plan Design 

Even before the passage of the PPA, which required multiemployer plans to take 

certain actions to improve funding, the Trustees addressed the funding issue in the 

hope that taking action early would avoid a longer-term solvency crisis. 

Following the dot-com bubble bust and after three consecutive years of 

investment returns below the assumed rate of return erased millions of dollars in 

Plan assets and hundreds of millions of dollars in expected earnings, the Trustees 

cut future benefit accruals in half, from 2.6% to 1.3% of contributions, effective 

January 1, 2004. The Trustees took this difficult action when the Plan’s funded 

ratio was 74.4%, well above the 37.6% as of January 1, 2016. Although these 

benefit cuts were difficult and unpopular, it is hard to imagine what the state of 

the Plan would be today if the Trustees had not taken this early action. To the 

contrary, the combination of those benefit reductions and several years of positive 

investment returns helped stabilize the Plan, and in 2007 the funded ratio had 

improved to 75.7%. 

Following passage of the PPA, the Plan’s actuary certified the Plan as being in 

Endangered Status on March 27, 2008. As required, the Trustees adopted a 

Funding Improvement Plan (FIP), which went into effect on January 1, 2009. The 

FIP provided for annual contribution increases of 5% in exchange for participants 

being able to retain the 1.3% accrual rate, and offered two other schedules with 

lower benefit accruals for a lower contribution increase requirement. See Exhibit 

16. 

As was the case for most other pension funds, the unprecedented global financial 

crisis of 2008 had a devastating effect on the Plan. That year alone, the Plan 

suffered $822 million net asset losses, or almost 36% of the Plan’s total assets. 

The Plan’s funding ratio at January 1, 2009 was down to 56.6% (based on the 

actuarial value of assets). The Plan took advantage of the Worker, Retiree & 

Employer Recovery Act of 2008 and remained in Endangered Status in 2009, but 

was certified in Critical Status for 2010, with a funding ratio of 61.6%. 

The Trustees adopted a Rehabilitation Plan in 2010 as required by the PPA. See 

Exhibit 19. The Rehabilitation Plan’s Default Schedule eliminated all adjustable 

benefits effective January 1, 2011, and eliminated all lump sum payments above 

$5,000, effective April 30, 2010, as legally required. The following adjustable 
17

benefits were eliminated: the Regular Pension (age 60); all disability benefits; all 

death benefits (other than the qualified pre-retirement survivor’s annuity); and, all 

Reciprocal Pensions to the extent such pension was tied to one of the foregoing 

eliminated adjustable benefits. In addition, the Trustees froze the Supplemental 

Social Security Benefit. 

The Rehabilitation Plan established several other “alternative” schedules 

providing for lesser reductions in early retirement subsidies. In each case, 

however, the alternative schedule is designed to offset the actuarial cost of the 

additional subsidies through higher annual contribution increases. For example, 

an employer participating in the Plan under Schedule E is required to make annual 

contribution rate increases of 8.25% (as opposed to 6% under the Default Plan) in 

order to pay for the cost of the early retirement subsidies offered under that 

schedule, including retirement at age 55 with 30 years of service. See Exhibit 19 

for additional information on the subsidies provided in the alternative 

schedules of the Rehabilitation Plan. 4

In addition to adopting the Rehabilitation Plan, in 2010 the Trustees attempted to 

address the serious funding issue caused by the shrinking number of contributing 

employers and, in particular, the Plan’s inability to attract new employers. The 

Trustees requested and were granted in November of 2010, approval by the 

Pension Benefit Guaranty Corporation (PBGC), to implement an alternative 

withdrawal liability method for allocating unfunded vested benefits. Effective for 

withdrawals that occurred on or after January 1, 2011, the Plan effectively created 

two pools of unfunded vested benefits – one for “Old Employers” and one for 

“New Employers.” The Trustees determined to manage the “New Employer” 

pool in a manner to avoid creating unfunded vested liability. This was to be 

accomplished through conservative benefit accruals and careful monitoring of the 

“New Employer” pool. The Plan marketed this approach to several new 

employers and the union, although in the end, no significant employers were 

interested in entering the Plan under the “New Employer” pool approach. 

On June 1, 2012, the Trustees again tried to address the funding threat caused by 

the steady decline in employer contributions, this time focusing on retaining 

employers and bargaining groups in the Plan. In connection with updating the 

Rehabilitation Plan, the Trustees added one additional alternative schedule, 

Schedule F, designed to retain more financially-stable employers that could 

continue to contribute to the Plan for the long-term. In recognition that the Plan’s 

mounting contingent withdrawal liability and contribution increases were a 

significant factor in employers’ decisions to withdraw from the Plan, Schedule F 

provided for existing contributing employers to pay 80% of the present value of 

their withdrawal liability in a lump sum (or in periodic installments not to exceed 

4

 The Rehabilitation Plan’s alternative schedules provided for a transition benefit, which offered a lesser 

reduction to the Thirty-Year Pension benefit for participants with at least 25 years of credited service as 

of January 1, 2011, and who retire after earning at least 30 years of credited service but prior to attaining 

the applicable unreduced age. (See Exhibit 19). 
18

five years), and then participate in the “New Employer” pool for purposes of 

withdrawal liability. Now being offered to existing employers, the “New 

Employer” pool was the same one created and approved by the PBGC in 2010, 

and was to be managed to avoid future unfunded liability for employers in that 

pool. This concept had advantages for both the Plan and employers. There were 

significant funding advantages to the Plan to have additional employer monies 

immediately paid, while employers got the benefit of eliminating their existing 

contingent withdrawal liability and avoiding, to the extent legally permissible, any 

additional future contingent liability.5 Schedule F also offered employers relief 

in the short term with respect to contribution increases, generally a 15% reduction 

in the contribution rate for five years. Participants of “New Employers” received 

a benefit accrual rate of 1% of contributions, with future contribution rate 

increases resulting in increased benefit accruals. Most of the other schedules 

under the Rehabilitation Plan provide for non-benefit bearing annual contribution 

increases. Although the Plan met with a number of existing contributing 

employers about the advantages of Schedule F, no employer has adopted this 

specific alternative schedule. See Exhibit 19.6

Investments 

Recognizing that the Plan would require increasingly greater investment income 

to cover the increasing benefit expenses, the Trustees adopted and implemented 

an asset allocation utilizing best practices for risk control, diversification, and 

return enhancement. In consultation with their professional investment 

consultants, they also realized that this increased reliance on investment income 

meant the Plan needed to protect itself from extreme market fluctuations, and 

required an investment portfolio and asset allocation that could increase 

investment return without adding imprudent, additional risk. With these goals and 

objectives, the Trustees implemented an alternative and diversified investment 

strategy, which is not usually available to smaller multiemployer pension plans. 

Based on the Plan’s asset allocation and alternative investment strategy, the Plan 

has been able to maintain an 8.5% investment return assumption, well above the 

return assumption for a traditional 60/40 global stock to global bond portfolio. 

The Plan’s current asset allocation is well-diversified and has a higher expected 

return compared to a traditional 60% global stock and 40% global bond portfolio. 

5

 To offer further assurances against potential withdrawal liability for employers adopting Schedule F, the 

Trustees amended the Plan so the “New Employer” pool would use the direct attribution method of 

withdrawal liability, subject to the approval of the PBGC. The Plan submitted the amendment to the 

PBGC for approval on January 28, 2013. To date, the PBGC has not acted on the request to approve the 

amendment. 

6

 On January 1, 2013, the Trustees updated the Rehabilitation Plan to add Schedule G, which was adopted 

to help retain YRC and its affiliated companies after it negotiated a series of amendments to its collective 

bargaining agreement that, among other things, provided for a temporary cessation of pension 

contributions and a reduced contribution rate. 
19

See Exhibit 4, at Appendix B. Further, the Plan’s asset allocation is not overly 

reliant on any one asset class. No more than 20% of the portfolio is allocated to 

any one asset class, which reduces the risk of negative experience from excessive 

exposure to any single asset class.

The Plan’s largest allocation is 18% to U.S. equities, making it significantly less 

reliant on U.S. equities than a traditional 60/40 global equity and global bond 

portfolio. Including international and emerging market equities along with U.S. 

equities, the Pension Fund has a 42% allocation to publicly-traded equities, still 

well below traditional 60/40 portfolios. 

To enhance returns and improve diversification, the Plan’s asset allocation 

includes private equity (15%), real estate (7%), natural resources (7%), and 

infrastructure (5%). 

During the seven years prior to the Plan’s filing of its initial application, the Plan 

returned 9.1%, net of fees, outperforming a 60/40 global equity and global bond 

portfolio by 1.8% per year, or greater than 20% cumulatively. 

Over that same seven year period, the Plan’s investments in private equity 

returned 14.9% per year, real estate returned 10.8% per year, and infrastructure 

returned 11.2% per year, all exceeding publicly-traded equities by 1.5% to 5.5% 

per year, and exceeding global bond returns by 6.4% to 10.4% per year. The 

Plan’s natural resources investments do not yet have a seven-year return history, 

but have returned 3.2% per year over the past five years. 

Employer Withdrawals 

The Trustees recognize that employer withdrawals from the Plan are a serious 

threat to the Plan’s solvency, particularly withdrawals by employers that do not 

pay the full assessed withdrawal liability due to company closures, bankruptcies, 

liquidations, de minimis reductions and 20 year cap limitations imposed by 

ERISA. Although the Trustees cannot generally control whether an employer 

withdraws, the Trustees have taken a number of measures to protect the Plan’s 

solvency with respect to these withdrawals. First, the Plan is diligent and 

aggressive in attempting to collect withdrawal liability from all withdrawing 

employers and members of their controlled group who are responsible for paying 

the liability. Of the more than 600 employer withdrawals, the Plan has collected, 

or is collecting, more than $450 million in withdrawal liability. Second, the 

Trustees have been diligent in reviewing any employer transaction seeking safe 

harbor protection under Sections 4204 or 4218 of ERISA to ensure the Plan’s 

financial integrity is not disadvantaged, including whether a principal purpose of 

any transaction is to evade or avoid withdrawal liability under Section 4212(c).

Additionally, to better reflect the Plan’s severely underfunded status, the 

assumptions used for calculating withdrawal liability were changed for 
20

withdrawals occurring on or after January 1, 2010. The actuaries now use PBGC 

assumptions, which require withdrawing employers to pay an amount consistent 

with the amount needed to settle the unfunded vested liability they are leaving 

behind. This change was made because the Plan is no longer attracting new and 

financially stable employers to replace employers that withdraw. While the Plan 

has always been aggressive in assessing and collecting withdrawal liability, since 

changing assumptions the Plan has collected millions of dollars more of 

withdrawal liability than what it would have collected using the prior 

assumptions. 

Finally, withdrawing employers that participated in one of the Rehabilitation 

Plan’s alternative schedules can leave behind greater unfunded vested liability 

because the actuarial cost of the subsidized benefits are paid for by increased 

employer contributions over time. To ensure the solvency of the Plan is not 

jeopardized by such withdrawals, the current Rehabilitation Plan requires that 

the withdrawing employer be deemed to have participated under the Default 

Schedule. Participants working for that employer at the time of the withdrawal 

receive only the Default Schedule benefits, which include no early retirement 

subsidy or adjustable benefits, regardless of the alternative schedule in which 

those participants previously participated. 

.02 Plan Factors 

(1) For the past ten Plan Years immediately preceding the Plan Year in which 

the Application is submitted: 

(a) Contribution levels. 

The information concerning contribution levels for the past 10 years is 

included in Exhibit 12. 

(b) Level of benefit accruals, including any prior reductions in the rate of 

benefit accruals. 

The current rate of benefit accruals varies from 1% of contributions to 

0.25% of contributions depending on the applicable schedule adopted by 

the contributing employer under the Plan’s Rehabilitation Plan. See 

Actuarial Valuation as of January 1, 2016, attached as part of Exhibit 

21 at Appendix C for a history of the Plan’s benefit accruals. 

(c) Prior reductions, if any, of adjustable benefits under §432(e)(8). 

The Trustees eliminated the following adjustable benefits for all 

participants under the January 1, 2011 Rehabilitation Plan: 
21

(1) Regular Pension (age 60); (2) All disability benefits; (3) All death 

benefits (other than the qualified pre-retirement survivor’s annuity); (4) 

All Reciprocal Pensions to the extent such pension was tied to one of the 

foregoing eliminated adjustable benefits. The Trustees also froze the 

Supplemental Social Security Benefit. 

In addition, Participants whose employers adopted the Default Schedule 

under the Rehabilitation Plan had the following adjustable benefits 

eliminated/reduced effective January 1, 2011: 

(1) The Thirty Year Pension; (2) Supplemental Accrual Rate; (3) Five 

Year Certain Annuity; (4) Ten Year Certain Annuity; (5) Qualified 100% 

Joint and Survivor Annuity; (6) 50%, 75%, and 100% Joint and Survivor 

Annuities with Pop-Up; (7) Voluntary lump sum payments equal to 

$5,000 or more; (8) Early and Vested Pensions calculated to equal the 

actuarial equivalent of the monthly amount of the Normal Pension to 

which a participant would have been entitled upon attaining age sixty-five 

(65) based upon credited service as of the date of the participant’s early 

retirement. See Exhibit 21 at Appendix C (Actuarial Valuation as of 

January 1, 2016) for list of subsidies under the Rehabilitation Plan’s 

Alternative Schedules. 

(d) Any prior suspension of benefits under §432(e)(9). 

The Plan has had no prior suspension under §432(e)(9). 

(e) Measures undertaken by the plan sponsor to attract or maintain 

contributing employers. 

The Trustees have undertaken a number of measures to attract and 

maintain employers. 

First, in designing the Rehabilitation Plan, the Trustees recognized that a 

one-size-fits-all benefit and contribution approach would provide 

employers and participant groups a further incentive to withdraw. The 

Plan has many employers and participant groups, and each employer has a 

different economic situation and each participant group has different 

benefit expectations. Forcing an employer that is struggling financially to 

pay the large contribution increases required to fund the benefits 

demanded of participant groups with expectations of enhanced benefit 

levels could force them out of business or to otherwise withdraw. On the 

other hand, forcing a participant group of a financially-sound employer to 

accept the lower benefits that a less viable company could afford would 

likely prompt the employer, with potentially the backing of the union and 

employees, to withdraw from the Plan. For this reason, the Trustees 
22

developed several alternative schedules under the Rehabilitation Plan that 

took into account these varying financial conditions and expectations. 7

Additionally, as described in more detail above in Section 5.01, the 

Trustees attempted a number of other measures to retain and attract 

contributing employers. In 2010, the Trustees implemented a two-pool 

withdrawal liability methodology, with the new, second pool designed and 

managed to avoid withdrawal liability to the maximum extent possible. 

Given employers’ great aversion to unchecked withdrawal liability, the 

Trustees believed this two-pool approach might be attractive to some 

employers and provide the union some ability to negotiate new employers 

into the Plan. Focusing on retaining existing contributing employers, the 

Trustees also developed new Alternative Schedule F in 2012. Schedule F 

allows current employers to avoid or limit their future withdrawal liability 

by paying 80% of their withdrawal liability while continuing to contribute 

to the Plan as a “New Employer.” See Exhibit 19. Both these efforts were 

the Trustees’ attempts to retain and attract contributing employers. 

A strong disincentive for employers to withdraw, as well as a deterrent for 

participants to favor their employer’s withdrawal, was established when 

the actuary changed the calculation assumptions for withdrawal liability. 

As discussed above, the changed assumptions generally make it much 

more expensive for employers to withdraw, and participants working for a 

withdrawing employer can only receive the Default Schedule benefits, 

regardless of whether they were previously working under an alternative 

schedule. This is a significant deterrent, particularly for participants who 

agreed to divert wages to pay for the enhanced benefits. 

(2) The impact on Plan solvency of the subsidies and ancillary benefits, if any, 

available to Active Participants. 

The Plan for many years offered benefits that included various early 

retirement subsidies, as well as ancillary benefits like disability pensions. 

Effective January 1, 2011, the Trustees eliminated all subsidies and 

ancillary benefits under the Rehabilitation Plan Default Schedule. As 

discussed previously in this Application, the Trustees did not eliminate all 

7

In order to avoid the loss of another major employer, the Plan – like most other Teamsters 

pension plans – permitted YRC and its affiliated companies to temporarily cease contributions and 

thereafter participate in the Plan at a reduced contribution rate. The Trustee adopted Schedule G of the 

Rehabilitation Plan to accommodate YRC’s situation and address the benefits levels provided under 

reduced contribution rates. The Trustees determined that accepting YRC’s negotiated concessions and 

permitting the Company to remain in the Plan was more beneficial to the solvency of the Plan than 

rejecting the concessionary agreement. The Trustees’ determination has proved accurate, as YRC’s 

Active Participant base has remained stable since the adoption of Schedule G. Since 2013, the YRC’s 

Active Participant population has remained stable, and is projected to remain at the 2016 level throughout 

the projection period. See Exhibit 4. 
23

subsidized benefits under the Rehabilitation Plan’s alternative schedules. 

Eliminating all subsidies under the Rehabilitation Plan would likely have 

driven employers and employee groups to withdraw from the Plan. Any 

subsidized benefit that remains in the alternative schedules, however, is 

paid for through higher contribution rate increases required under those 

schedules. To the extent there was any additional liability associated with 

retaining the subsidies, the Trustees concluded that the negative effect of 

additional withdrawals as a result of eliminating the remaining subsidies 

would be greater than the savings in liability associated with eliminating 

the remaining subsidies. 

(3) Compensation levels of Active Participants relative to the Participants’ 

industry generally. 

As of January 1, 2016, the Plan had 11,576 Active Participants. See 

Exhibit 21 (Actuarial Valuation as of January 1, 2016). These 

participants are spread among various occupations and industries, 

although the Plan historically and today covers primarily transportation 

and warehousing employees. Historically, compensation levels of the 

Plan’s Active Participants have been greater than non-participants in these 

industries. According to the Bureau of Labor & Statistics (“BLS”), the 

median weekly earnings of unionized transportation and warehousing 

employee is $980, compared to a non-union median of $754 per week.8

A discussion of the participants’ compensation is not complete, however, 

without taking into account the differences in retirement plan costs 

between unionized and non-unionized employees. A BLS March 2016 

News Release reports that in the unionized sector of the “service 

producing industries,” which include transportation and warehousing, an 

average of $3.28 per hour of total employee compensation (7.4%) goes to 

fund retirement plan costs. The non-unionized sector average is only $.88 

per hour (3%).9

Although on average unionized employees have traditionally received 

higher wages than non-union employees, in recent years non-union 

workers’ wages have increased more rapidly than unionized workers’ 

wages.

10 It is likely that pension costs for unionized workers are keeping 

their wages stagnant. This has a profound effect on the Plan, which has 

seen employer contribution rates increase approximately 200% since the 

8

See Industries at a Glance, Transportation and Warehousing: NAICS 48-49,

http://www.bls.gov/iag/tgs/iag48-49.htm. 

9

See Employer Costs for Employee Compensation, March 2016, Table 13 at page 22. 

10 See George L. Long, “Differences Between Union and Non-Union Compensation,” Monthly Labor 

Review (April 2013). 
24

early 2000s. The Plan’s actuary has projected that an Active Participant 

today is likely to receive approximately the same benefit as a current 

retired participant, but that benefit will cost three times as much. Pension 

contributions have continued to increase. Many Active Participants 

working under Alternative Schedule E have seen those increases funded 

through reductions in their wages. 

(4) Competitive and other economic factors facing contributing employers. 

A number of competitive and economic factors over the past 35 years have 

negatively affected the Plan’s contributing employers and directly 

impacted the Plan’s solvency. The deregulation of the trucking industry in 

the early 1980s started the steady decline in the number of the Plan’s 

contributing employers and the Plan’s financial condition. There has been 

a huge decline in unionized employment in the U.S. from approximately 

27% in 1977 to 13% in 2011. Additionally, during the past 10-15 years, 

the LTL sector of the trucking industry, especially those smaller freight 

businesses in New York State, and its unionized workforce covered under 

the Plan have suffered an even more rapid decline. 

During the past 10 years, which included the economic disaster of 2008-

2009, there has been little to no growth in the U.S. economy, which has a 

significant impact on the trucking industry. The two major recessions in 

the 2000s drove many contributing employers out of business or into 

bankruptcy. Further, because so many of these employers withdrew from 

the Plan in severe financial distress, a large number were unable to pay 

their full withdrawal liability to the Plan. 

In 2009 - 2015, the Plan saw some significant contributing employer 

events that negatively affected the Plan’s funding. One of the Plan’s larger 

employers, YRC, and its affiliated companies, negotiated a temporary 

cessation of their obligation to contribute for the period from July 2009 

through December 31, 2012, and then commenced contributions at a 

collectively bargained concessionary pension rate that is 25% of the preJuly 2009 rate. On November 18, 2009, Penn Traffic, the Plan’s fifth 

largest contributing employer, filed for bankruptcy. In 2013, Wegmans, 

the Plan’s second largest employer, negotiated a withdrawal from the Plan. 

Later, in 2015, Dairy Farmers of America also negotiated a withdrawal 

from the Plan instead of sustaining any further contribution increases. 

Additionally, during the past 10 years, there has been a shifting 

demographic whereby the “baby boomer” generation has been retiring in 

record numbers, and the unionized workforce employed by the Plan’s 

contributing employers has steadily declined. In 1990, there were 23,883 

Active Participants and 10,150 retired Participants, for a ratio of more than 

2 Active Participants for every 1 retired Participant. In 2000, the ratio was 
25

almost 1 to 1, as the number of active participants declined to 16,827, and 

the number of retired participants increased to 14,198. As of January 1, 

2016, there were 11,576 active participants, compared to 15,936 retired 

participants and beneficiaries. The Plan has simply been unable to replace 

retirees with new hires on a one-to-one basis, which has hurt the Plan. 

The Plan’s equal ratio of active participants to retirees has been reversed 

significantly. 

The trend of workers retiring and not being replaced by active employees 

has negatively impacted the Plan’s funding over the years. In 2008, the 

Plan paid out approximately $144 million more in benefits than it received 

in employer contributions. That difference was $168 million in 2009, 

$182 million in 2010, and $187 million in 2011. The demographic shift 

has caused the Plan, which has historically been dependent on contribution 

income, like many other Teamster plans, to grow increasingly dependent 

on investment income to cover the differences between contributions 

received and benefits paid. A review of 2016 employer contributions and 

benefit payments reveals that for every $2.25 the Plan pays out in pension 

benefits, only $1 is collected from employers, resulting in the annual 

shortfalls outlined above. 

Lastly, employers have been moving away from establishing or 

participating in defined benefit plans and are instead moving into defined 

contribution plans. Such plans are generally less expensive for the 

employer than defined benefit plans, and they shift the investment risk 

away from the employer. The availability of such plans makes it harder to 

attract new employers to the Plan. Employers do not want exposure to 

withdrawal liability, or the risk associated with economic market 

fluctuations they know can leave them with a volatile contribution 

obligation. 

.03 How plan factors were taken into account. 

(1) Contribution levels 

As explained above in Section 5.02(1)(a), over the last 10 years the 

Trustees have taken all reasonable measures with respect to employer 

contribution levels. In fact, the Trustees’ efforts to increase contribution 

levels go back to the early part of this century, as employer contribution 

rates have increased almost 200% since that time. Given these massive 

increases in contributions over the years, and the continued withdrawal of 

contributing employers, it is clear that additional contribution rate 

increases (especially those set forth in the Rehabilitation Plan) are not 

sustainable for the Plan’s remaining contributing employers. The result of 

further contribution increases will be more employer bankruptcies and 

thus more employer and participant group withdrawals. 
26

In developing each of the Rehabilitation Plan schedules, the Trustees 

carefully considered contribution levels and the effect additional increases 

would have on the Plan’s contributing employers. Although the Trustees 

saw the increases driving employers from the Plan at a faster pace, the 

Trustees had no other way to keep the Plan from becoming insolvent, once 

the Rehabilitation Plan reduced benefits to the maximum extent allowable 

under then-existing law. In an attempt to retain employers, the Trustees 

adopted a series of alternative schedules to the Rehabilitation Plan to 

allow the bargaining parties (union and employers) to negotiate for 

subsidized benefits in exchange for higher contribution rates. Each 

alternative schedule was designed to have the same actuarial cost as the 

Default Schedule, and the contribution rates for each schedule were set to 

pay for the subsidized benefit. 

Currently, the Rehabilitation Plan has seven alternative schedules as well 

as the required Default Schedule. The Default Schedule requires a 6% 

annual contribution rate increase for the PPA statutorily-required 

minimum benefit of 1% accrual and elimination of all adjustable benefits, 

including early retirement subsidies. Under the current alternative 

schedules, various additional benefits are available for required 

contribution rate increases of between 6.50% and 8.25% annually. 

Although these alternative schedules were originally developed to provide 

different cost options for employers, the increases have quickly become so 

costly that the only way some employers have been willing to accept the 

more-expensive alternative schedules is to require a reallocation of monies 

from wages to pension contributions, under their collective bargaining 

agreements. For example, United Parcel Service (“UPS”), which 

represents approximately 76% of the Plan’s overall contributions, 

participates in Schedule E for its full-time employees. As of January 1, 

2016, the UPS full-time rate is $14.6650 per hour, with required increases 

annually of 8.25%. To maintain the Schedule E benefits, which provide 

for a subsidized early retirement option important to many of the UPS 

employees, the union and employer negotiated for wages to be reallocated 

to pay for the a portion of the cost of the enhanced pension benefits. UPS 

employees currently have $1.60 per hour reallocated from wages in order 

to fund their Schedule E pension benefit level. 

Current contribution rates are economically stifling for the Plan’s 

contributing employers. ABF Freight Systems, for example, is paying 

$13.6299 per hour for its employees, which is $545.196 per week or 

$28,350.192 per year. See Exhibit 22 for list of employer contribution 

rates as of August 1, 2015. Moreover, the required 6% to 8.25% annual 

contribution increases under the Rehabilitation Plan schedules create rates 

that are unsustainable in the long-term. For example, if UPS is annually 

required to increase its contributions to the Plan by 8.25%, its contribution 
27

rate in 20 years, by 2037, would be approximately $170,000 annually for 

each full-time employee covered under the Plan. 

In 2015, the actuary informed the Trustees that the current Rehabilitation 

Plan contribution rates likely would require increases commencing in 

2016, in order for the Plan to continue to project solvency. At about the 

same time and in connection with the Plan’s annual certification for the 

2016 Plan Year, the Trustees deadlocked over whether they would instruct 

the Plan’s actuary that continued annual employer contribution increases 

of 6.00-8.25% was an unreasonable projection of future industry activity 

under ERISA Section 305(b). In consideration of the Plan’s experience, 

the employer Trustees put forth a motion to instruct the actuary that 

continued employer contribution increases of 6% were not sustainable and 

should not be assumed for the purposes of projecting future industry 

activity. 

After a deadlock arbitration hearing on October 15, 2015, Arbitrator Elliot 

Shriftman ruled that the Plan’s actuaries should not assume future annual 

contribution increases of 6.00% as part of the industry activity projection. 

Based on the arbitrator’s decision, the Plan’s actuaries have assumed that 

future annual contribution increases will be less than 6% annually. 

Although not a factor in the Arbitrator’s decision, the Trustees also 

considered the effect of continued employer contribution increases on Plan 

participant behavior. Approximately 20% of each dollar of contributions 

to the Plan generated by work performed by the Active Participants pays 

for the pension that they earned for that work and to operate the Plan; the 

remainder funds the pensions of Non-Active Participants (retired and 

terminated vested participants). The Trustees have determined that 

mandatory additional contribution rate increases would be likely to: (a) 

cause a net decline in support for the Plan among Active Participants; and 

(b) make it more difficult for contributing employers to attract and retain 

qualified employees. These consequences, in turn, will lead to more 

employer withdrawals and to a decline in contribution income to the Plan. 

Accordingly, for purposes of this Application, the Trustees agreed that 

contribution rate increases would be equal to those called for under the 

Rehabilitation Plan until 2018. Starting in 2018, contribution rate 

increases are assumed to be 3.5% for 4 years, then 3% for the next 9 years, 

and then 0.0% thereafter. In developing these rates, the Trustees gave 

serious consideration to macroeconomic factors, the financial strength of 

contributing employers, competition in the marketplace, the relationship 

between contribution levels and benefit levels, and expected changes in 

the wage packages over the next several years. In doing so, the Trustees 

determined that it was reasonable to require contribution increases at the 
28

rates prescribed in the Rehabilitation Plan for the next two years, followed 

by additional increases at a rate less than what is required under the 

Rehabilitation Plan, with the understanding that in fifteen years the 

employers would not incur any additional increases. The Trustees 

determined that such increases will avoid insolvency, keep employers 

financially viable, and help retain and attract qualified employees. 

(2) Benefit accrual levels, including any prior reductions in the rate of benefit 

accruals. 

As explained above in Section 5.02(1)(b), the Trustees have made a 

number of benefit accrual reductions over the last 10 – 12 years. The 

benefit reductions, when considered with the required annual contribution 

increases, have resulted in employers paying more for their employees to 

receive a smaller benefit. This has caused many employers – and 

increasingly rank-and-file union members – to want to support their 

employer’s withdraw from the Plan. 

The first benefit accrual level reduction was effective January 1, 2004. 

After three consecutive years of less than assumed investment returns, the 

Trustees took a difficult, yet proactive step when they reduced the accrual 

rate from 2.6% to 1.3% of contributions. After entering Critical Status, the 

Trustees eliminated most adjustable and ancillary benefits and 

implemented Rehabilitation Plan Schedules which further reduced benefit 

accrual rates to a range of 0.25% to 1% of contributions. 

In reviewing levels of benefit accruals, the Trustees concluded, in 

consultation with the actuaries, that any further reduction in the future 

accrual rate beyond those contained in the Rehabilitation Plan would have 

a detrimental effect on the Plan by undermining contributing employers’ 

ability to attract and retain qualified employees. It would also severely 

undermine the support of the Plan’s Active Participants. Further, it was 

determined that further reductions in accruals would have an immaterial 

effect on the solvency of the Plan because the Plan is projected to become 

insolvent by 2027. See Exhibit 5. There is just not enough time for 

additional reductions in accrual rates to have a significant impact on the 

Plan’s solvency. Accordingly, the Trustees concluded that maintaining 

future accruals at the rates set forth in the Rehabilitation Plan is a 

reasonable measure to avoid insolvency. 

(3) Prior reductions of adjustable benefits under Section 432(e)(8). 

Section 5.02(3)(c) above details the reductions in adjustable benefits the 

Trustees made after adopting the Rehabilitation Plan. Adjustable benefits 

include essentially all subsidized benefits other than those in pay status 
29

prior to 2011, disability benefits in pay status at any time, and accrued 

benefits payable at age 65. The Rehabilitation Plan eliminated the 

following adjustable benefits for all participants: 

 The Regular Pension (age 60); 

 Disability Benefits, including the Disability Pension and Lump 

Sum Disability Benefit; 

 Death Benefits, including but not limited to, the Lump Sum 

Death Benefit and 60-month pre-retirement death benefit; and 

 All Reciprocal Pensions to the extent any such pension is tied 

to one or more of the adjustable benefits listed above. 

The Trustees also froze the Supplemental Social Security 

Benefit. 

Under the Rehabilitation Plan’s Default Schedule, the following adjustable 

benefits were also eliminated11: 

 The Thirty-Year Pension. 

 The following benefit payment options: 1) Five Year Certain 

Annuity; 2) Ten Year Certain Annuity; 3) Qualified 100% 

Joint and Survivor Annuity; 4) 50%, 75% and 100% Joint and 

Survivor Annuity with Pop-Up; and 5) Voluntary lump sum 

payments equal to $5,000 or more. 

The Plan’s actuary advises that the decrease in liability as of January 1, 

2011 due to the adjustable benefits reduced as part of the Rehabilitation 

Plan is approximately $190 million. See Exhibit 21, Actuarial Valuation 

as of January 1, 2016 at page 17. With interest to the date of suspension, 

the value of the reduction in adjustable benefits would be greater than 

$190 million. Additionally, as a result of the Rehabilitation Plan benefit 

reductions, the value of annual benefit accruals was reduced by 

approximately $20 million per year. Since the Trustees adopted the 

Rehabilitation Plan in 2011, the loss of benefits earned by Active 

Participants is approximately $125 million (estimated to be over $160 

million with interest). 

11 The Alternative Schedules retain some of the early retirement subsidies. See Exhibit 21, Actuarial 

Valuation as of January 1, 2016 at Appendix C for a description of the subsidies. 
30

(4) Prior benefit suspensions under Section 432(e)(9).

The Plan has not implemented prior benefit suspensions under Section 

432(e)(9). 

(5) Measures taken to retain or attract contributing employers.

As explained in Section 5.02(1)(e), the Trustees have taken many 

measures to try to retain or attract new contributing employers, including: 

 Adopting Funding Improvement and Rehabilitation Plans that 

provide several alternative schedules to offer different options 

for contributing employers of varying financial condition; 

 Creating a hybrid plan whereby new employers may enter the 

Plan and participate in what is now a separate pool of 

liabilities, which is managed conservatively to avoid future 

withdrawal liability; 

 Adopting a Distressed Employer Schedule which allowed YRC 

to remain in the Plan rather than withdraw and incur 

withdrawal liability sufficient to send the employer into 

bankruptcy; 

 Adopting Schedule F which allowed existing contributing 

employers to pay 80% of the present value of their withdrawal 

liability in a lump sum (or in periodic installments not to 

exceed five years), and then participate in the “New Employer” 

pool, and pay a contribution rate that was 15% lower than the 

rate set forth in their applicable Rehabilitation Plan schedule. 

The Plan’s experience with efforts to retain and attract contributing 

employers has been very difficult. Some of these measures have not been 

successful, but given the limited options available, the Trustees concluded 

that in enacting each of these measures, they made every reasonable effort 

to protect the Plan’s solvency. The Trustees believe that the measure 

proposed in this Application, as a whole, will provide the Plan its best 

chance of retaining – and possibly attracting – employers. 

(6) The impact on the Plan’s solvency of the subsidies and ancillary benefits, 

if any, available to active participants.
31

Effective January 1, 2011, the Trustees eliminated all disability benefits 

and subsidized early retirement benefits under the Rehabilitation Plan’s 

Default Schedule. Any remaining subsidized benefits available under 

alternative schedules are paid for by additional contributions required 

under those schedules. Accordingly, the Trustees determined that the 

subsidies available to Active Participants do not impact Plan solvency. As 

previously discussed, it was determined that the negative effect of 

additional withdrawals as a result of eliminating the remaining subsidies 

would be greater than any savings in liability associated with eliminating 

the remaining subsidies. 

The Trustees also noted, however, that most of the subsidized benefits are 

paid to Non-Active Participants in pay status and that at the time those 

benefits were earned the Plan did not receive contributions commensurate 

with the value of those benefits. The disproportionality of the subsidies 

compared to the contribution/cost ratio of normal retirement benefits was a 

factor in the Trustees’ decision to adopt a plan of benefit suspensions 

which provides for larger reductions to those participants in pay status. 

Active Participants are having larger contributions made on their behalf, 

while deriving less benefit from them. 

(7) Compensation levels of Active Participants relative to employees in the 

Participants’ industry generally.

Retirement plan costs are generally higher for unionized employees in the 

transportation and warehousing industry than for non-union employees. 

The previously cited BLS March 2016 News Release reports that in the 

unionized sector of the “service producing industries,” which include 

transportation and warehousing, an average of $3.28 per hour of total 

employee compensation (7.4%) goes to fund retirement plan costs. The 

non-unionized sector average is only $0.88 per hour (3%). 

Although on average unionized employees have traditionally received 

higher wages than non-union employees, in recent years non-union 

workers’ wages have increased more rapidly than unionized workers’ 

wages. It is likely that pension costs for unionized workers are keeping 

their wages stagnant. As the contribution rates needed to sustain plans 

continue to increase, employers cannot absorb them. This means that 

participants are often required to reallocate a portion of their total 

compensation package from wages to pension contributions. Union 

employees are seeing reductions in wages, and reductions in retirement 

benefits, but are paying more than ever for those reduced retirement 

benefits. 
32

Because of these trends and the desire of many workers to improve their 

wages rather than see increasing amounts of their total compensation 

dedicated to pension contributions (particularly when approximately 20% 

of each dollar of contributions to the Plan generated by work performed by 

the Active Participants pays for the pension that they earned for that work; 

most of the rest funds the pensions of retired and terminated vested 

participants), the Trustees have determined that mandatory additional 

contribution rate increases would be likely to: (a) cause a net decline in 

support for the Plan among Active Participants; and (b) make it more 

difficult for contributing employers to attract and retain qualified 

employees. These consequences, in turn, will lead to more employer 

withdrawals and to a decline in contribution income to the Plan. The 

aforementioned factors relating to the compensation levels of active 

participants relative to other employees in the participants’ industry 

generally have caused the Trustees to conclude that they have taken all 

necessary steps to avoid insolvency.

(8) Competitive and other economic factors facing contributing employers.

As discussed above in Section 5.04, the Trustees have continually 

considered the competitive pressures and financial constraints faced by the 

Plan’s contributing employers. The Trustees recognize that if they set 

contribution requirements at a level that the employers cannot sustain, it is 

very likely that the employers will go out of business, and/or file for 

bankruptcy, or simply leave the Plan. This is not pure speculation; the 

Trustees have seen it happen now for several years. 

YRC and its affiliated companies, one of the Plan’s larger employers, 

negotiated a temporary cessation of their obligation to contribute and now 

participate at a reduced contribution rate. Penn Traffic, the Plan’s fifth 

largest contributing employer, filed for bankruptcy. Wegmans, the Plan’s 

second largest employer, negotiated a withdrawal from the Plan. The 

Trustees’ conclusion that the economic factors confronting employers will 

not permit additional, unchecked increases in contributions is based on 

first-hand experience. 

The Trustees are also aware that most non-union employers do not 

sponsor defined benefit plans. Contributing employers are competing with 

non-union employers that do not have legally required pension 

contribution obligations. Most of the employers’ non-union competitors 

maintain profit sharing or 401(k) plans. Such plans are not subject to the 

Internal Revenue Code’s minimum funding requirements, and place the 

investment risk on the employee. The Plan’s employers bear the burden of 

having to make contributions that are not only contractually required, but 
33

legally required. Moreover, when the financial markets underperform or 

suffer losses, it is the employers that have to make up the difference. 

(9) The impact of benefit and contribution levels on retaining Active 

Participants and bargaining groups under the Plan.

As discussed above, the Trustees recognize that benefit and contribution 

levels have an effect on retaining Active Participants. In enacting 

reasonable measures to avoid insolvency, the Trustees were mindful of 

recent experience, where the Plan’s second largest employer negotiated a 

withdrawal from the Plan with the approval of its employees. 

In developing this application, the Trustees took into account all the 

benefit reductions the Active Participants have experienced since 2004. 

Benefit accrual rates have been cut from 2.6% of contributions to 1%, and 

in some cases, 0.25% under the Rehabilitation Plan. In addition, the 

participants have in many cases seen wages stagnate or be reduced in 

order to pay for the benefit reductions. The reality is that the increases are 

not completely going to pay for the Active Participants’ reduced benefits; 

the bulk of the increases are going to pay the benefits for the Non-Active 

Participants. The Trustees, based on experience, know that there is a limit 

to what Active Participants will tolerate before they look for other 

retirement options. They also know that if there are no active employees, 

the Plan is not viable and all retired Participants’ benefits are at risk. With 

this in mind, the Trustees took the reasonable measure of proposing 18% 

reduction in the accrued benefit of Active Participants versus a 29% 

reduction for Non-Active Participants. 

(10) The impact of past and anticipated contribution increases under the Plan 

on employer attrition and retention levels.

As discussed in detail above, the prior contribution increases imposed on 

contributing employers have become unsustainable. The Trustees saw 

first-hand what effect the rates were having on contributing employers: 

employers were withdrawing from the Plan, either voluntarily, as was the 

case with Wegmans or by filing bankruptcy, like Penn Traffic. If the 

increases were left unchanged, in twenty years UPS would be paying 

approximately $170,000 annually for each full-time employee covered 

under the Plan. Even a financially successful company like UPS cannot 

absorb such costs. Arbitrator Shriftman found that contribution increases 

called for under the Rehabilitation Plan were based in “excessive” 

optimism and “dangerous speculation” given the Plan’s experience. 

When designing their PPP, the Trustees determined that the anticipated 

future increases required, which would otherwise be unreasonable based 
34

on the Trustees’ past experience and Arbitrator Shriftman’s ruling, became 

reasonable in the long-term when applied in conjunction with the proposed 

benefit suspensions. Moreover, there is relief in sight in 2031, when no 

increases will be required. In reviewing all these factors, the Trustees 

determined that prior contribution increases had brought the Plan’s 

remaining employers to the brink of leaving the Plan. Contribution 

increases called for under the Rehabilitation Plan will take them over the 

brink. The contribution increases required under the PPP give employers 

hope that there is light at the end of the tunnel, and such light gives the 

remaining employers an incentive to stay in the Plan and keep it from 

becoming insolvent. 

.04 Other Factors considered. 

(1) Investment Return Assumptions.

Another factor the Trustees considered when developing the PPP is the 

effect of future investment returns on the Plan’s ability to remain solvent. 

Given the Plan’s current asset allocation, the investment return 

assumptions are well above a traditional 60% global stock and 40% global 

bond portfolio (“60/40 portfolio”). Assuming the current asset allocation 

remains unchanged, Meketa Investment Group’s (“Meketa”) 20-year 

return estimates are 8.8% for the Plan, and 7.0% for a 60/40 portfolio. 

The 10-year median estimates from the Horizon Actuarial 2016 Survey of 

Capital Market Assumptions (“2016 Survey”) are 7.37% for the Plan and 

5.95% for a 60/40 portfolio. The 20-year median estimates from the 2016 

Survey are 8.35% for the Plan and 7.11% for a 60/40 portfolio. 

The Trustees expect to obtain these higher returns with the current asset 

allocation without incurring much additional risk. That is because the 

Plan’s private markets assets have less price volatility risk than the 

publicly-traded assets. While private market assets generally have more 

liquidity risk, the Plan’s private market assets currently have a positive 

cash flow. The investment consultant projects the Plan’s private market 

cash flow to be significantly positive over the next several years. 

12Accordingly, the Plan’s exposure to the liquidity risk normally 

associated with private market assets is reduced. It is not expected that the 

Plan will have to liquidate the private market assets at depressed values to 

make benefit payments. 

12 With respect to the private equity distribution projections for 2017 – 2019, it should be noted that a 

number of the Plan’s investments in private equity were made during the period 2006-2009, and generally 

have a duration of 10 years. Accordingly, the duration of the investments made in 2006, 2007, 2008 and 

2009 will be ending 2016, 2017, 2018 and 2019, respectively. The Plan is expecting significant 

distributions from private equity in these years. 
35

In selecting the investment return assumptions, the actuary has taken into 

account many factors as described in Appendix B of Exhibit 4. These 

factors include the possibility that the asset allocation may need to change 

in the future because the timing of future expected contributions and 

benefit payments result in the Plan having significant negative cash flow 

(only partially offset by the cash flow from private market investments), 

and the greater materiality of asset returns during the earlier years of the 

cash flow projection. 

As discussed above, the Plan is structured differently than a 60/40 

portfolio, with a higher expected return than a 60/40 portfolio. Even with 

the possibility of future adjustments in the asset allocation, investment 

returns are expected to be greater than a 60/40 portfolio. This is because 

the Plan can maintain some of its private market investments as these 

investments are mature and well beyond the initial j-curve phase. 

(2) Strengthening the Plan’s Re-Employment Rules.

As discussed above, the Trustees have recognized that the Plan’s solvency 

problem as caused by a growing imbalance in the ratio of actives to 

retirees/beneficiaries has not been solely as a result of employer 

withdrawals. Another factor contributing to the problem is that an 

increasing number of participants are retiring (sometime under early 

retirement provisions of an alternative schedule), commencing their 

pension and then returning to work in “prohibited employment”. This 

includes working for non-union companies that compete with the Plan’s 

contributing employers. Although the Plan always has been diligent in its 

efforts to ensure compliance with its re-employment rules, the Trustees 

have strengthened enforcement by requiring retired participants to 

annually certify their employment information, including their place of 

employment and amount of earnings. Retirees are also required to provide 

written authorization for the Plan to access their Social Security records to 

confirm the information in the certification. Strict enforcement of the 

Plan’s re-employment rules is yet another reasonable measure the Trustees 

have taken to help forestall insolvency. 
36

SECTION 6. OTHER REQUIRED INFORMATION. 

.01 Ballot. See Exhibit 11 for a proposed ballot intended to satisfy the requirements 

of Section 432(e)(9)(H)(iii). 

.02 Partition. The Plan is not applying to the PBGC for a partition order. 

.03 Ten-year experience for certain critical assumptions. See Exhibit 12 for a 

disclosure of the Plan’s experience for certain critical assumptions for each of the 10 Plan 

Years immediately preceding the Plan Year in which the Plan’s application is submitted 

for the proposed benefit suspension. 

.04 Demonstration of sensitivity of projections. See Exhibit 13 for the following 

separate projections: (1) a reduction of 1% in the Plan’s assumed rate of return on assets; 

(2) a reduction of 2% in the Plan’s assumed rate of return on assets; (3) a change in the 

assumed future contribution base units from the population assumption described above 

in Exhibit 4 to a 4.45% annual reduction for the next ten years; and (4) a change in the 

assumed future contribution base units from the assumption above to a 5.45% annual 

reduction for the next 10 years. The 4.45% annual reduction in future contribution base 

units is based on the historical decline in contribution base units as shown in Exhibit 12. 

As noted in Exhibit 12, the drop in contribution base units from the 2013 to 2014 Plan 

Year is primarily due to the withdrawal of employers who are currently making 

withdrawal liability payments or have satisfied their withdrawal liability obligation in 

full. 

The Trustees believe that the downward trend in contribution base units will not continue, 

as the withdrawals in 2013 – 2014 were specific, one-time events unlikely to be repeated. 

The withdrawn employers in 2013 and 2014 accounted for approximately 2.5 to 3.0 

million hours in the years 2010 – 2013. If the withdrawn employers’ hours for 2010 – 

2013 are factored out, there is a steady pattern of hours for 2010 – 2013. As discussed 

earlier, the Trustees are confident that the economic certainty provided to employers 

under this Application with respect to their future contribution obligations will provide 

employers with an incentive to remain in the Plan. Likewise, the Application and other 

communications with Active Participants have shown them that there is long-term hope 

for the Plan, and it is to their economic advantage to remain participants. 

.05 Projection of funded percentage. See Exhibit 14 for the Trustees’ illustration, 

prepared on a deterministic basis, of the projected value of Plan assets, the accrued 

liability of the Plan (calculated using the unit credit funding method) and the funded 

percentage for each year in the Plan’s extended period, which ends with the Plan Year 

2049. 
37

.06 Plan sponsor certifications relating to plan amendments. See Exhibit 15 for the 

Trustees’ certification that if they receive final authorization to implement the suspension 

of benefits as described in Section 432(e)(9)(H)(vi), and choose to implement the 

authorized suspension, then, in addition to the Plan amendment implementing the 

suspension, the following Plan amendments will be timely adopted and not modified at 

any time thereafter before the suspension of benefits expires: (1) a Plan amendment 

providing that, in accordance with Section 432(e)(9)(C)(ii), the benefit suspension will 

cease as of the first day of the first Plan Year following the Plan Year in which the 

Trustees fail to maintain a written record of their determination that both: all reasonable 

measures to avoid insolvency continue to be taken during the period of the benefit 

suspension; and the Plan is projected to become insolvent unless benefits continue to be 

suspended; and (2) a Plan amendment providing that any future benefit improvements 

must satisfy the requirements of Section 432(e)(9)(E). 

.07 Whether a plan is described in Section 432(e)(9)(D)(vii)(III). Not Applicable. 

.08 Optional additional information. Not Applicable. 
38

SECTION 7. IDENTIFICATION AND BACKGROUND INFORMATION ON 

THE PLAN. 

.01 Plan sponsor. The Board of Trustees of the New York State Teamsters 

Conference Pension and Retirement Fund. The Board of Trustees’ mailing address is PO 

Box 4928, Syracuse, NY 13221-4928, T: 315.455.9790, F: 315.234.1047, E: 

benefits@nytfund.org. 

.02 Plan Identification. The name of the Plan is the New York State Teamsters 

Conference Pension and Retirement Fund. The Plan has been assigned the Plan Number 

074. Its Employment Identification Number (EIN) is 16-6063585. The Plan is a 

multiemployer pension plan within the meaning of Code Section 414(f) and ERISA 

Section 3(37). 

.03 Retiree Representative. On January 18, 2016, the Trustees selected Tom Baum to 

be the retiree representative. He is a retiree currently receiving benefits under the Plan 

and is not a member of the Board of Trustees. Participants and beneficiaries may contact 

Tom Baum at his website at: http://nysteamstersfundretireerep.com or at his e-mail 

address: info@nystfretireereptbaum.com. 

.04 Plan’s enrolled actuary. The Plan’s enrolled actuary is James M. Locey (EA# 

 of Horizon Actuarial Services, LLC, 8601 Georgia Ave, #700, Silver Spring, MD 

20910. 

.05 Power of Attorney. See Appendix B. The Plan’s representatives as attorney-in 

fact are John F. Ring and James T. Kimble of Morgan, Lewis & Bockius LLP and 

Bernard T. King and Jonathan M. Cerrito of Blitman & King LLP. 

.06 Plan documents. See Exhibit 16 for the Plan’s: 1) most recently restated Plan 

Document and any subsequent Plan amendments, 2) the most recent summary plan 

description, 3) the Plan’s most recent determination letter, and 4) the Plan’s Funding 

Improvement Plan. 

.07 Participation agreements. See Exhibit 17 for excerpts from the participation 

agreements pursuant to which the Plan is maintained, including language from any 

portions of a collective bargaining agreement or side agreement that are relevant to the 

Plan or proposed suspension. 

.08 Annual return. See Exhibit 18 for the following sections of the Plan’s most 

recently filed 2015 Plan Year Form 5500: 

(1) Pages 1 and 2 of the Form 5500; 

Re

da

cte

d 

by 

the 

U.

S. 

De

par

tm

ent 

of 

the 

Tre

as

ury
39

(2) The Schedule MB, including attachments; and 

(3) The Schedule R with attachments. 

.09 Rehabilitation Plan. See Exhibit 19 for a copy of the Plan’s most recently 

updated Rehabilitation Plan, effective as of January 1, 2011 and Amended and Restated 

as of January 1, 2015. 

• The Rehabilitation Plan contains the following schedules: Default Schedule 

and Seven (7) Alternative Schedules, Schedule A through Schedule G. 

• See Exhibit 20 demonstrating the Plan’s contributing employers’ 

contributions to the Plan pursuant to their applicable Rehabilitation Plan’s 

schedule for the Plan Year ending December 31, 2015. 

.10 Valuation Reports. See Exhibit 21 for copies of the 2015 and 2016 Plan Year 

valuation reports for the Plan. 

.11 Completed checklist. See Appendix C for the completed checklist of information 

required to be included in the Plan’s application. 
40

SECTION 8. RESUBMISSION REVIEW 

This Section is not applicable. This application is not being submitted for a resubmission 

review. 

Request for a meeting. The Trustees respectfully request an in-person meeting to discuss the 

issues involved if the Secretary is not inclined to approve the Plan’s application. 

The Trustees very much appreciate Treasury’s willingness to review this important matter and 

application for the Plan. Should you have any questions or require any additional information, 

please contact the undersigned Trustees at PO Box 4928, Syracuse, NY 13221-4928, T: 

315.455.9790, F: 315.234.1047, E: benefits@nytfund.org. 

[SIGNATURE PAGE TO FOLLOW] 
Signature: 

Name: John A. B'tIlgaro 

Title: Chairman and Union Trustee 

Date: ///7

Signatu 

Name: Michael S. Scalzo, Sr. 

Title: Chairman and Employer Trustee 

Date: //17

Very truly yours, 

THE BOARD OF TRUSTEES OF THE NEW YORK STATE TEAMSTERS CONFERENCE 

PENSION AND RETIREMENT FUND 

41

Redacted by the U.S. Department of the Treasury

Redacted by the U.S. Department of the 

Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 1
Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of the Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 2
Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of the Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 3
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 3.01 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

This report provides the information required by Section 3.01 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 3.01 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 3.01 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

Summary 1

Plan-year-by-plan-year projection of the available resources 2

Projection of benefit payments separated by status 3

Assumptions 4

Appendix A: New Entrant Profile 7

Appendix B: Demographic Assumptions 15

Appendix C: Certification of Critical and Declining Status 19
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

1 

Plan actuary’s certification of critical and declining status

Under Section 3.01 of Revenue Procedure 2016-27, an application must include the plan actuary’s 

certification required under Section 432(b)(3)(A) of the Code that the plan is in critical and declining status 

as defined in Section 432(b)(6) of the Code for the plan year in which the application is submitted. 

Documentation supporting the actuarial certification of status must be included with the certification, 

including a plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) of 

the Code and the benefits under the plan, demonstrating that the plan is projected to become insolvent 

during the period described in Section 432(b)(6). The documentation must include a description of each of 

the assumptions used, including the new entrant profile, the total contribution base units and average 

contribution rates. The plan-year-by-plan-year projection must separately identify the market value of 

assets as of the beginning and end of each year in the relevant period and the following cash-flow items for 

each of those years: 

1. Contributions 

2. Withdrawal liability payments 

3. Benefit payments, separately identifying benefit payments with respect to current retirees and 

beneficiaries, terminated vested participants who are not currently receiving benefits, currently 

active participants, and future new entrants 

4. Administrative expenses 

5. Investment returns 

On March 31, 2017, Horizon Actuarial submitted to the IRS the Plan actuary’s certification required under 

Section 432(b)(3)(A) of the Code that the Plan is in critical and declining status as defined in Section 

432(b)(6) of the Code for the 2017 Plan year. 

On that same date, Horizon Actuarial submitted a separate report to the Board of Trustees detailing the 

calculations and basis for the 2017 plan year certification. A copy of the March 31, 2017 report is 

included in this report as Appendix C. 

This report includes an exhibit showing the calculations to determine that the Plan is in critical and 

declining status for the 2017 plan year. This exhibit and the subsequent commentary in the report, and 

the appendices, include all of the necessary information required in the application, as described above.

On the following pages, we have included:

 A plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) of 

the Code and the benefits under the plan, demonstrating that the plan is projected to become 

insolvent during the period described in Section 432(b)(6). 

 A plan-year-by-plan-year projection of the benefit payments, separated by projected payments 

made to current retirees and beneficiaries, terminated vested participants who are not currently 

receiving benefits, currently active participants, and future new entrants.

 A description of each of the assumptions used in the projections, including the new entrant 

profile, the total contribution base units and average contribution rates.
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

2 

Plan-year-by-plan-year projection of the available resources: 

Note: The administrative expenses shown above include any regular Plan expenses and PBGC loans. Currently, the Plan does not have any 

PBGC loans. 

Revenue Procedure 2016-27, Section 3.01: Certification of Critical and Declining Status

Assumed Annual Investment Return 6.75% per year through 12/31/2025 and 7.50% thereafter

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

P Y 12/31/2016 1,246,018,691 $ $ 125,026,448 $ 12,780,606 $ (281,543,943) $ (11,613,558) $ 91,348,190 $ 1,182,016,434 $ 3,311,681,836 37.62% 1,463,560,377 $ 5.198

CY 12/31/2017 1,182,016,434 121,451,426 9,586,913 (290,051,436) (9,853,710) 74,086,855 1,087,236,482 3,306,369,346 35.75% 1,377,287,918 4.748

1 12/31/2018 1,087,236,482 125,299,440 9,570,693 (292,563,204) (7,136,955) 67,825,449 990,231,906 3,298,896,703 32.96% 1,282,795,110 4.385

2 12/31/2019 990,231,906 129,104,157 9,497,851 (295,907,439) (7,235,993) 61,287,381 886,977,863 3,288,153,125 30.12% 1,182,885,302 3.997

3 12/31/2020 886,977,863 132,915,501 9,497,851 (299,557,620) (6,815,865) 54,337,351 777,355,081 3,272,988,015 27.10% 1,076,912,701 3.595

4 12/31/2021 777,355,081 136,794,009 9,497,851 (303,540,865) (6,918,030) 46,930,831 660,118,876 3,252,707,252 23.90% 963,659,742 3.175

5 12/31/2022 660,118,876 140,066,105 9,497,851 (306,963,439) (7,022,280) 39,008,790 534,705,904 3,226,529,499 20.46% 841,669,343 2.742

6 12/31/2023 534,705,904 143,397,886 9,497,851 (309,892,326) (7,127,573) 30,553,458 401,135,199 3,194,545,422 16.74% 711,027,526 2.294

7 12/31/2024 401,135,199 146,856,501 9,497,851 (312,097,392) (7,234,950) 21,576,119 259,733,328 3,156,784,050 12.71% 571,830,721 1.832

8 12/31/2025 259,733,328 150,470,329 9,497,851 (313,591,233) (7,343,370) 12,099,383 110,866,287 3,113,519,307 8.34% 424,457,521 1.354

9 12/31/2026 110,866,287 154,187,423 9,497,851 (313,909,406) (7,453,875) 2,402,046 INSOLVENT 3,065,035,902 3.62% 269,499,732 0.859

"PY" = preceding plan year; "CY" = current plan year
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

3 

Projection of benefit payments, separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, currently active 

participants, and future new entrants: 

Revenue Procedure 2016-27, Section 3.01: Projected Benefit Payments Separated by Status

Projected Benefit Payments by Status

Plan Year Total Retirees Terminated Future New

Ending Benefit Payments & Beneficiaries Vested Active Entrants

CY 12/31/2017 290,051,436 271,307,379 3,866,864 14,877,193 -

1 12/31/2018 292,563,204 264,985,624 5,680,072 21,897,508 -

2 12/31/2019 295,907,439 258,457,044 7,617,756 29,832,639 -

3 12/31/2020 299,557,620 251,728,961 9,985,922 37,842,737 -

4 12/31/2021 303,540,865 244,784,418 12,314,286 46,442,161 -

5 12/31/2022 306,963,439 237,619,987 14,562,123 54,781,329 -

6 12/31/2023 309,892,326 230,218,930 17,295,965 62,377,431 -

7 12/31/2024 312,097,392 222,545,764 20,134,638 69,416,990 -

8 12/31/2025 313,591,233 214,620,498 22,776,936 76,193,799 -

9 12/31/2026 313,909,406 206,515,378 25,288,063 82,105,965 -

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

4 

Assumptions: 

 Investment Return: The investment return is assumed to be 6.75% per year through 12/31/2025 and 

7.50% thereafter. The assumption is net of investment expenses. 

 Discount Rate: The discount rate is assumed to be 8.50% per year. 

 Contribution Rate Increases: Contribution rate increases are assumed to be equal to those required 

under the Rehabilitation Plan until 2018. Starting in 2018, contribution rate increases are assumed to 

be 3.5% per year for 4 years, then 3.0% per year for 9 years, and then 0.0% thereafter. This assumption 

was selected based on guidance and information provided in good faith from the Board of Trustees. 

The Trustees last updated the Rehabilitation Plan in 2012, prior to the passage of MPRA. The 

Rehabilitation Plan included an exhaustion of all reasonable measures and a stated goal of forestalling 

possible insolvency. The various schedules of the Rehabilitation Plan required contribution rate 

increases between 6.00% and 8.25% per year, continuing indefinitely. After reviewing experience 

through 2015, there was disagreement among the Board of Trustees about whether these contribution 

rate increases were sustainable. Following arbitration, it was determined that the increases required 

under the Rehabilitation Plan were in fact unsustainable. 

In preparing the application for a suspension of benefits effective July 1, 2017, the schedules for future 

increases in contribution rates were reevaluated. As part of this review, consideration was given to 

macroeconomic factors, the financial strength of participating employers, competition in the 

marketplace, the relationship between contributions and benefit levels, and expected changes in wage 

packages over the next several years. Based on this review, the assumption described above was 

developed. 

 Active Participants: An active participant is a participant who has worked at least 500 hours in at least 

one of the prior three plan years and was not retired as of the valuation date. 

 Active Population: Based on guidance provided in good faith from the Board of Trustees and a 

historical review of the active population (including an analysis of the population of certain contributing 

employers), the following changes in the active population were assumed: 

o The number of participants employed by United Parcel Service (UPS), ABF Freight (ABF) and 

Yellow Roadway Corporation (YRC) is assumed to remain at 2016 levels throughout the 

projection period. 2016 levels are equal to the count of these participants in the January 1, 

2016 actuarial valuation. 

o The number of all participants not employed by UPS, ABF or YRC is assumed to decline by 2% 

per year. 

Please see the historical information required under Section 6.03 of Revenue Procedure 2016-27 for 

more information regarding the active population. Also note that while we are not assuming any future 

employer withdrawals as part of the 2% per year population decline, any withdrawal from the Fund 

would result in approximately 20 years of withdrawal liability payments. 
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

5 

 Participant Data: There were 166 active participants without a date of birth. We assumed that 

these participants had entered the plan at the same age as the other active participants. There 

were 22 terminated vested participants without a date of birth. We assumed these participants 

had the same age as the average terminated vested participant. There were 76 terminated vested 

participants who were over age 72 as of the valuation date who had not yet applied for a pension. 

They were excluded from the valuation. The impact of these data adjustments on plan liabilities 

was negligible. 

 Marriage/Spouses: 80% of non-retired participants are assumed to be married. Female spouses are 

assumed to be three years younger than male spouses. 

 Form of payment: Participants are assumed to elect a single life annuity. 

 Administrative Expenses: Regular operating expenses are assumed to be equal to $6,252,000 in 2017 

and are assumed to increase by 1.50% per year. In addition, we have assumed the following nonrecurring special expenses: 

Year 2017 2018 2019

Special Legal Expenses $2,700,000 $500,000 $500,000

Special Suspension Related Expenses $500,000 $0 $0

The assumed regular operating expenses are based on the actual operating expenses for 2015, adjusted 

for non-recurring special expenses. The assumed 1.50% annual increase in regular operating expenses 

was developed based on an analysis of historical changes in the operating expenses of the Plan and 

guidance from the Fund Office regarding future expectations of operating expenses. The special, nonrecurring legal and suspension related expenses were developed based on guidance from the Board of 

Trustees and Plan Counsel. 

 Contribution Base Units and Contribution Rates: There are significant differences in the contribution 

base units and contribution rates under each schedule of the Rehabilitation Plan. The table below 

shows the active participant count, average contribution base units and average contribution rate 

under each schedule of the Rehabilitation Plan. This information is based on census data as of January 

1, 2016. Note that because of the active population scenario described above, results are shown 

separately for UPS, ABF and YRC. 
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

6 

For each active participant in the valuation, hours are assumed to be the average of a participant’s 

actual hours worked in the three plan years preceding the valuation date. Contributions made on 

behalf of each participant are assumed to be equal to the assumed hours worked multiplied by a 

participant’s contribution rate.

Note that the participant count in the Default Schedule shown above includes approximately 1,600 

active participants who are employed by a withdrawn employer but have yet to incur a three-year 

break in service. We assume no future contributions on hours worked for these participants. After 

making this adjustment, the total assumed contribution base units is approximately 14.7 million hours. 

 New Entrant Profile: See Appendix A for a description of the new entrant profile used in the 

projections. Note that we use different new entrant profiles for the different schedules of the 

Rehabilitation Plan. 

 Mortality: See Appendix B for a description of the mortality assumption. 

 Retirement: See Appendix B for a description of the retirement assumption. 

 Disability: See Appendix B for a description of the disability assumption. 

 Withdrawal: See Appendix B for a description of the withdrawal assumption. 

Revenue Procedure 2016-27, Section 3.01: Active Participants, Base Units and Contribution Rates

Rehabilitation Participants Average Average Contribution

Plan Schedule as of 1/1/2016 Hours per Participant Rate per Participant

Default 4,271 1,021 4.0614

A 2 1 1,665 3.8210

B 532 1,248 6.8826

B (UPS) 2,216 1,034 11.4038

C 519 1,734 4.1211

D 9 8 1,648 4.0850

E 1,422 1,733 3.7458

E (UPS & ABF) 1,917 1,954 14.6148

G (YRC) 580 1,799 2.3361
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

7 

New Entrant Profile 

The new entrant profile used in the projections consists of a separate new entrant profile for each 

schedule of the Rehabilitation Plan. In addition, because of the industry activity assumption 

recommended by the Board of Trustees, there is a separate new entrant profile for UPS participants in 

Schedule B, UPS and ABF participants in Schedule E, and YRC participants in Schedule G. This is 

necessary because of the different characteristics of participants in each schedule. All new entrants are 

assumed to be male and are assumed to enter the Plan with 0.50 years of service. 

The new entrant profile is developed to, as accurately as possible, estimate the impact of future new 

entrants on the Plan’s expected contributions, benefit payments and liabilities. 

The age of new entrants is based on a historical analysis of new entrants to the Plan over the seven year 

period ending on December 31, 2015. The distribution of new entrants by age is as follows: 

For each schedule or subset of a schedule, a distribution of the contribution rate that counts for benefit 

accruals and the total contribution is created. Based on this distribution and the age distribution of new 

entrants, the following new entrant profiles are created. Note that participants employed by employers 

that have withdrawn but have not yet incurred a three-year break in service are not included in this 

analysis. 

Revenue Procedure 2016-27, Section 3.01: Historical New Entrants

Age New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants Total % of 

Band in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 New Entrants Total

< 25 179 131 140 150 137 232 187 1,156 19%

25 - 30 6 8 7 5 107 117 131 138 171 807 13%

30 - 35 231 286 562 479 313 292 245 2,408 40%

35 - 40 4 1 4 6 4 8 4 5 5 9 7 6 9 9 414 7 %

40 - 45 4 2 4 8 6 5 5 9 4 9 6 7 6 4 394 7 %

45 - 50 4 0 4 0 4 1 4 7 4 2 7 2 6 7 349 6 %

50 - 55 3 6 2 5 4 0 3 5 4 0 4 9 4 7 272 5 %

55 - 60 1 3 1 9 2 5 2 3 2 2 3 3 2 7 162 3 %

> 60 3 6 9 6 6 9 1 4 5 3 1 %

Total 653 676 1,037 961 799 968 921 6,015
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

8 

New Entrant Profile for Default Schedule: 

Revenue Procedure 2016-27, Section 3.01: Default Schedule New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 4 0.9778 1,222 1.2125 1,516

2 2 1,250 8 2.2818 2,852 2.8635 3,579

2 2 1,250 3 3.8529 4,816 4.7442 5,930

2 2 1,250 1 5.9065 7,383 7.3358 9,170

2 2 1,250 3 8.4518 10,565 10.3118 12,890

2 2 1,250 1 9.6476 12,060 13.1562 16,445

2 7 1,250 3 0.9778 1,222 1.2125 1,516

2 7 1,250 5 2.2818 2,852 2.8635 3,579

2 7 1,250 2 3.8529 4,816 4.7442 5,930

2 7 1,250 2 8.4518 10,565 10.3118 12,890

3 2 1,250 9 0.9778 1,222 1.2125 1,516

3 2 1,250 1 6 2.2818 2,852 2.8635 3,579

3 2 1,250 6 3.8529 4,816 4.7442 5,930

3 2 1,250 1 5.9065 7,383 7.3358 9,170

3 2 1,250 1 7.7506 9,688 9.1720 11,465

3 2 1,250 6 8.4518 10,565 10.3118 12,890

3 2 1,250 1 9.6476 12,060 13.1562 16,445

3 7 1,250 2 0.9778 1,222 1.2125 1,516

3 7 1,250 3 2.2818 2,852 2.8635 3,579

3 7 1,250 1 3.8529 4,816 4.7442 5,930

3 7 1,250 1 8.4518 10,565 10.3118 12,890

4 2 1,250 2 0.9778 1,222 1.2125 1,516

4 2 1,250 3 2.2818 2,852 2.8635 3,579

4 2 1,250 1 3.8529 4,816 4.7442 5,930

4 2 1,250 1 8.4518 10,565 10.3118 12,890

4 7 1,250 1 0.9778 1,222 1.2125 1,516

4 7 1,250 2 2.2818 2,852 2.8635 3,579

4 7 1,250 1 3.8529 4,816 4.7442 5,930

4 7 1,250 1 8.4518 10,565 10.3118 12,890

5 2 1,250 2 0.9778 1,222 1.2125 1,516

5 2 1,250 3 2.2818 2,852 2.8635 3,579

5 2 1,250 1 3.8529 4,816 4.7442 5,930

5 2 1,250 1 8.4518 10,565 10.3118 12,890
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

9 

New Entrant Profile for Schedule A: 

Revenue Procedure 2016-27, Section 3.01: Schedule A New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,665 9 2.5212 4,198 3.2641 5,435

2 2 1,665 1 0 3.4304 5,712 4.3273 7,205

2 7 1,665 6 2.5212 4,198 3.2641 5,435

2 7 1,665 7 3.4304 5,712 4.3273 7,205

3 2 1,665 1 9 2.5212 4,198 3.2641 5,435

3 2 1,665 2 1 3.4304 5,712 4.3273 7,205

3 7 1,665 3 2.5212 4,198 3.2641 5,435

3 7 1,665 4 3.4304 5,712 4.3273 7,205

4 2 1,665 3 2.5212 4,198 3.2641 5,435

4 2 1,665 3 3.4304 5,712 4.3273 7,205

4 7 1,665 3 2.5212 4,198 3.2641 5,435

4 7 1,665 3 3.4304 5,712 4.3273 7,205

5 2 1,665 4 2.5212 4,198 3.2641 5,435

5 2 1,665 4 3.4304 5,712 4.3273 7,205
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

10

New Entrant Profile for Schedule B (Not Including UPS Participants): 

Revenue Procedure 2016-27, Section 3.01: Schedule B New Entrant Profile (Not Including UPS Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 2 0.5858 732 0.7009 876

2 2 1,250 4 2.2235 2,779 3.0555 3,819

2 2 1,250 3 3.7541 4,693 5.1287 6,411

2 2 1,250 9 8.4524 10,566 10.6814 13,352

2 7 1,250 2 0.5858 732 0.7009 876

2 7 1,250 3 2.2235 2,779 3.0555 3,819

2 7 1,250 2 3.7541 4,693 5.1287 6,411

2 7 1,250 6 8.4524 10,566 10.6814 13,352

3 2 1,250 5 0.5858 732 0.7009 876

3 2 1,250 8 2.2235 2,779 3.0555 3,819

3 2 1,250 6 3.7541 4,693 5.1287 6,411

3 2 1,250 1 4.8041 6,005 6.6833 8,354

3 2 1,250 1 8 8.4524 10,566 10.6814 13,352

3 2 1,250 10.7583 1 13,448 14.6831 18,354

3 7 1,250 1 0.5858 732 0.7009 876

3 7 1,250 1 2.2235 2,779 3.0555 3,819

3 7 1,250 1 3.7541 4,693 5.1287 6,411

3 7 1,250 3 8.4524 10,566 10.6814 13,352

4 2 1,250 1 0.5858 732 0.7009 876

4 2 1,250 1 2.2235 2,779 3.0555 3,819

4 2 1,250 1 3.7541 4,693 5.1287 6,411

4 2 1,250 3 8.4524 10,566 10.6814 13,352

4 7 1,250 1 0.5858 732 0.7009 876

4 7 1,250 1 2.2235 2,779 3.0555 3,819

4 7 1,250 1 3.7541 4,693 5.1287 6,411

4 7 1,250 3 8.4524 10,566 10.6814 13,352

5 2 1,250 1 0.5858 732 0.7009 876

5 2 1,250 2 2.2235 2,779 3.0555 3,819

5 2 1,250 1 3.7541 4,693 5.1287 6,411

5 2 1,250 4 8.4524 10,566 10.6814 13,352
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

11

New Entrant Profile for Schedule B (UPS Participants Only): 

New Entrant Profile for Schedule C: 

Revenue Procedure 2016-27, Section 3.01: Schedule B New Entrant Profile (UPS Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,035 1 9 8.4520 8,748 11.3270 11,723

2 7 1,035 1 3 8.4520 8,748 11.3270 11,723

3 2 1,035 3 9 8.4520 8,748 11.3270 11,723

3 7 1,035 7 8.4520 8,748 11.3270 11,723

4 2 1,035 6 8.4520 8,748 11.3270 11,723

4 7 1,035 6 8.4520 8,748 11.3270 11,723

5 2 1,035 8 8.4520 8,748 11.3270 11,723

Revenue Procedure 2016-27, Section 3.01: Schedule C New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,735 1 0 1.7189 2,982 2.3286 4,040

2 2 1,735 7 3.5953 6,238 4.7893 8,309

2 2 1,735 2 6.6416 11,523 9.4514 16,398

2 7 1,735 7 1.7189 2,982 2.3286 4,040

2 7 1,735 5 3.5953 6,238 4.7893 8,309

2 7 1,735 1 6.6416 11,523 9.4514 16,398

3 2 1,735 2 1 1.7189 2,982 2.3286 4,040

3 2 1,735 1 4 3.5953 6,238 4.7893 8,309

3 2 1,735 1 4.9375 8,567 6.8369 11,862

3 2 1,735 4 6.6416 11,523 9.4514 16,398

3 7 1,735 4 1.7189 2,982 2.3286 4,040

3 7 1,735 2 3.5953 6,238 4.7893 8,309

3 7 1,735 1 6.6416 11,523 9.4514 16,398

4 2 1,735 3 1.7189 2,982 2.3286 4,040

4 2 1,735 2 3.5953 6,238 4.7893 8,309

4 2 1,735 1 6.6416 11,523 9.4514 16,398

4 7 1,735 3 1.7189 2,982 2.3286 4,040

4 7 1,735 2 3.5953 6,238 4.7893 8,309

4 7 1,735 1 6.6416 11,523 9.4514 16,398

5 2 1,735 4 1.7189 2,982 2.3286 4,040

5 2 1,735 3 3.5953 6,238 4.7893 8,309

5 2 1,735 1 6.6416 11,523 9.4514 16,398
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

12

New Entrant Profile for Schedule D: 

Revenue Procedure 2016-27, Section 3.01: Schedule D New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,650 4 1.6202 2,673 2.3035 3,801

2 2 1,650 1 5 3.1804 5,248 4.5196 7,457

2 7 1,650 2 1.6202 2,673 2.3035 3,801

2 7 1,650 1 1 3.1804 5,248 4.5196 7,457

3 2 1,650 7 1.6202 2,673 2.3035 3,801

3 2 1,650 3 2 3.1804 5,248 4.5196 7,457

3 7 1,650 1 1.6202 2,673 2.3035 3,801

3 7 1,650 6 3.1804 5,248 4.5196 7,457

4 2 1,650 1 1.6202 2,673 2.3035 3,801

4 2 1,650 5 3.1804 5,248 4.5196 7,457

4 7 1,650 1 1.6202 2,673 2.3035 3,801

4 7 1,650 5 3.1804 5,248 4.5196 7,457

5 2 1,650 1 1.6202 2,673 2.3035 3,801

5 2 1,650 7 3.1804 5,248 4.5196 7,457
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

13

New Entrant Profile for Schedule E (Not Including UPS or ABF Participants): 

Revenue Procedure 2016-27, Section 3.01: Schedule E New Entrant Profile (Not Including UPS or ABF Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,765 2 0.9356 1,651 1.2346 2,179

2 2 1,765 1 1 1.6024 2,828 2.3612 4,167

2 2 1,765 3 3.3145 5,850 4.9090 8,664

2 2 1,765 1 4.6104 8,137 6.7161 11,854

2 2 1,765 1 9.1719 16,188 13.5041 23,835

2 7 1,765 2 0.9356 1,651 1.2346 2,179

2 7 1,765 8 1.6024 2,828 2.3612 4,167

2 7 1,765 2 3.3145 5,850 4.9090 8,664

2 7 1,765 1 4.6104 8,137 6.7161 11,854

2 7 1,765 1 9.1719 16,188 13.5041 23,835

3 2 1,765 5 0.9356 1,651 1.2346 2,179

3 2 1,765 2 3 1.6024 2,828 2.3612 4,167

3 2 1,765 6 3.3145 5,850 4.9090 8,664

3 2 1,765 3 4.6104 8,137 6.7161 11,854

3 2 1,765 1 7.0318 12,411 8.8851 15,682

3 2 1,765 2 9.1719 16,188 13.5041 23,835

3 7 1,765 1 0.9356 1,651 1.2346 2,179

3 7 1,765 4 1.6024 2,828 2.3612 4,167

3 7 1,765 1 3.3145 5,850 4.9090 8,664

3 7 1,765 1 4.6104 8,137 6.7161 11,854

4 2 1,765 1 0.9356 1,651 1.2346 2,179

4 2 1,765 4 1.6024 2,828 2.3612 4,167

4 2 1,765 1 3.3145 5,850 4.9090 8,664

4 7 1,765 1 0.9356 1,651 1.2346 2,179

4 7 1,765 3 1.6024 2,828 2.3612 4,167

4 7 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 0.9356 1,651 1.2346 2,179

5 2 1,765 5 1.6024 2,828 2.3612 4,167

5 2 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 4.6104 8,137 6.7161 11,854
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

14

New Entrant Profile for Schedule E (UPS and ABF Participants Only): 

New Entrant Profile for Schedule G (YRC Participants Only): 

Revenue Procedure 2016-27, Section 3.01: Schedule E New Entrant Profile (UPS and ABF Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,955 1 9 9.6256 18,818 14.6148 28,572

2 7 1,955 1 3 9.6256 18,818 14.6148 28,572

3 2 1,955 4 0 9.6256 18,818 14.6148 28,572

3 7 1,955 7 9.6256 18,818 14.6148 28,572

4 2 1,955 7 9.6256 18,818 14.6148 28,572

4 7 1,955 6 9.6256 18,818 14.6148 28,572

5 2 1,955 8 9.6256 18,818 14.6148 28,572

Revenue Procedure 2016-27, Section 3.01: Schedule G New Entrant Profile (YRC Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,800 1 9 1.9987 3,598 2.2457 4,042

2 7 1,800 1 3 1.9987 3,598 2.2457 4,042

3 2 1,800 4 0 1.9987 3,598 2.2457 4,042

3 7 1,800 7 1.9987 3,598 2.2457 4,042

4 2 1,800 6 1.9987 3,598 2.2457 4,042

4 7 1,800 6 1.9987 3,598 2.2457 4,042

5 2 1,800 8 1.9987 3,598 2.2457 4,042
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

15

Demographic Assumptions 

This appendix includes the mortality, retirement, disability and withdrawal assumptions used in the 

projections shown in Section 3.01 of Revenue Procedure 2016-27. These assumptions are based on 

historical and current demographic data, adjusted to reflect estimated future experience in the Plan, the 

purpose of the measurement, and professional judgment. 

Mortality: 

Non-Disabled Mortality: The non-disabled mortality assumption is the sex-distinct RP2014 Mortality Tables 

with Blue Collar adjustment loaded by 15% and projected generationally using 50% of the MP2015 

projection scale. 

Disabled Mortality: The disabled mortality assumption is the sex-distinct RP2014 Disabled Mortality 

Tables loaded by 15% and projected generationally using 50% of the MP2015 projection scale. 

Retirement: The retirement assumption varies by Rehabilitation Plan Schedule. 

Default Schedule and Schedule G 

Less than 30 

Years of 

Service 

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

Schedule A 

Less than 30 

Years of 

Service

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.12

.05

.08

.30

.33

.41

.50

1.00

.12

.05

.08

.30

.33

.41

.50

1.00

.14

.08

.11

.34

.36

.42

.50

1.00

.16

.11

.14

.38

.39

.44

.50

1.00

.18

.14

.17

.42

.42

.46

.50

1.00

.20

.17

.20

.46

.46

.48

.50

1.00

.22

.21

.23

.50

.50

.50

.50

1.00

.15

.15

.15

.50

.50

.50

.50

1.00

.35

.35

.35

.50

.50

.50

.50

1.00
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

16

Schedule B 

Less than 30 

Years of 

Service 

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.50

.50

.50

.50

1.00

.12

.05

.08

.50

.50

.50

.50

1.00

.12

.05

.08

.50

.50

.50

.50

1.00

.14

.08

.11

.50

.50

.50

.50

1.00

.16

.11

.14

.50

.50

.50

.50

1.00

.18

.14

.17

.50

.50

.50

.50

1.00

.20

.17

.20

.50

.50

.50

.50

1.00

.22

.21

.23

.50

.50

.50

.50

1.00

.15

.15

.15

.50

.50

.50

.50

1.00

.35

.35

.35

.50

.50

.50

.50

1.00

Schedule C 

Less than 30 

Years of 

Service 

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

1.00

.14

.08

.50

.50

.50

.50

.50

1.00

.16

.11

.50

.50

.50

.50

.50

1.00

.18

.14

.50

.50

.50

.50

.50

1.00

.20

.17

.50

.50

.50

.50

.50

1.00

.22

.21

.50

.50

.50

.50

.50

1.00

.15

.15

.50

.50

.50

.50

.50

1.00

.35

.35

.50

.50

.50

.50

.50

1.00

Schedule D 

Less than 30 

Years of 

Service

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56

57-59

60-61

62

63

64

65-66

67

.10

.02

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.50

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

.50

1.00

.14

.08

.50

.50

.50

.50

.50

.50

1.00

.16

.11

.50

.50

.50

.50

.50

.50

1.00

.18

.14

.50

.50

.50

.50

.50

.50

1.00

.20

.17

.50

.50

.50

.50

.50

.50

1.00

.22

.21

.50

.50

.50

.50

.50

.50

1.00

.15

.15

.50

.50

.50

.50

.50

.50

1.00

.35

.35

.50

.50

.50

.50

.50

.50

1.00
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

17

Schedule E 

Less than 30 

Years of 

Service 

On or After 30 Years of Service 

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

Inactive vested participants: Age 65. 

Disability:

Illustrations of the annual rates of disablement are shown in the table below for selected ages (the same 

rates are used for males and females): 

Representative Disability Rates 

Attained Age Rate (%)

20

25

30

35

40

45

50

55

60

0.04%

0.06%

0.07%

0.10%

0.15%

0.24%

0.41%

0.67%

1.09%
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

18

Withdrawal: 

Illustrations of the annual rates of withdrawal (for reasons other than mortality or disablement) are shown 

in the table below for selected ages (the same rates are used for males and females): 

Representative Withdrawal Rates 

Attained Age Rate (%)

20

25

30

35

40

45

50

55

60

22.00%

17.00%

12.00%

7.82%

6.92%

6.02%

5.12%

4.22%

3.32%
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

19
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

20

Redacted by the U.S. Department 

of the Treasury

Redacted by the U.S. Department 

of the Treasury
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

21
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

22
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

23
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

24
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

25
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

26
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

27
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

28
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

29
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

30
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

31
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

32

Redacted by the U.S. Department 

of the Treasury Redacted 

by the 

U.S. 

Departme

nt of the 

Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 4
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 3.02 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

This report provides the information required by Section 3.02 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 3.02 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 3.02 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

Summary 1

Development of projected assets as of December 31, 2017 2

Plan-year-by-plan-year projection of the available resources 3

Projection of benefit payments separated by status 4

Assumptions 5

Actuarial Certification 8

Appendix A: New Entrant Profile 9

Appendix B: Investment Return Assumption 16
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

1 

Plan actuary’s certification that the plan is projected to avoid insolvency

Under Section 3.02 of Revenue Procedure 2016-27, the plan actuary must certify to the plan sponsor under 

Section 432(e)(9)(C)(i) of the Code that the plan is projected to avoid insolvency within the meaning of 

Section 418E of the Code, taking into account the proposed benefit suspension and assuming that the 

proposed suspension continues until it expires by its own terms or, if no such expiration date is set, 

indefinitely. Documentation supporting the actuarial certification under Section 432(e)(9)(C)(i) of the Code 

must be included with the certification, including a plan-year-by-plan-year projection of the available 

resources within the meaning of Section 418E(b)(3) of the Code and the benefits under the plan 

demonstrating the avoidance of insolvency of the plan over the extended period described in Section 

1.432(e)(9)-1(d)(5)(ii)(C) of the regulations. The documentation must include a description of each of the 

assumptions used, including the new entrant profile, the total contribution base units and average 

contribution rates. The plan-year-by-plan-year projection must separately identify the market value of 

assets as of the beginning and end of the initial period and each subsequent plan year in the extended 

period and the following cash-flow items for each of those plan years: 

1. Contributions 

2. Withdrawal liability payments 

3. Benefit payments, separately identifying benefit payments with respect to current retirees and 

beneficiaries, terminated vested participants who are not currently receiving benefits, currently 

active participants, and future new entrants 

4. Administrative expenses 

5. Investment returns 

On the following pages, we have included:

 A projection of the Plan’s assets as of December 31, 2017 (the end of the initial period), 

incorporating actual asset returns through March 31, 2017.

 A plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) of 

the Code and the benefits under the plan, demonstrating the avoidance of insolvency of the plan 

over the extended period. 

 A plan-year-by-plan-year projection of the benefit payments, separated by projected payments 

made to current retirees and beneficiaries, terminated vested participants who are not currently 

receiving benefits, currently active participants, and future new entrants.

 A description of each of the assumptions used in the projections, including the new entrant 

profile, the total contribution base units and average contribution rates.

 The Plan actuary’s certification to the plan sponsor under Section 432(e)(9)(C)(i) of the Code that 

the plan is projected to avoid insolvency within the meaning of Section 418E of the Code.
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

2 

Development of Projected Assets as of December 31, 2017: 

The exhibit below shows the development of the projected Plan assets as of December 31, 2017 (the end of the 

initial period). This projection is based on actual asset values as of March 31, 2017, as provided by the Fund 

Office. The return on assets for the period April 1, 2017 through December 31, 2017 is based on the Plan’s 

assumed annual investment return for 2017 of 7.37%. Please see Appendix B for more information regarding 

the investment return assumption. 

Revenue Procedure 2016-27, Determination of Plan Assets as of December 31, 2017 

(Based on Actual Plan Assets as of March 31, 2017)

Assumed Annual Investment Return 7.37%

Actual Results Projected Results Total for

Period: Period: 2017

1/1/2017 - 3/31/2017 4/1/2017 - 12/31/2017 Plan Year

Assets at Beginning of Period $ 1,202,655,086 $ 1,230,168,301 $ 1,202,655,086

Employer Contributions 35,258,367 87,811,891 123,070,258

Withdrawal Liability Payments 2,544,824 7,042,089 9,586,913

Benefit Payments (70,300,925) (207,462,337) (277,763,262)

Operating Expenses (2,446,530) (7,407,180) (9,853,710)

Return on Assets 62,457,479 64,102,327 126,559,806

Assets at End of Period 1,230,168,301 1,174,255,091 1,174,255,091

Note that the asset amounts differ from those shown on the Fund's asset statements 

 because withdrawal liability receivables are not included.

Withdrawal liability payments are included in the projected assets based on the projected date of payment.

Projected benefit payments for the 2017 Plan Year incorporate the proposed suspension amounts.
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

3 

Plan-year-by-plan-year projection of the available resources: 

Note: The administrative expenses shown above include any regular Plan expenses and PBGC loans. Currently, the Plan does not have any PBGC loans.

Revenue Procedure 2016-27, Section 3.02: The Plan is Projected to Avoid Insolvency

Assumed Investment Return See Assumptions Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (277,763,262) (9,853,710) 126,559,806 1,174,255,091 3,377,856,996 35.60% 1,452,018,353 5.228

1 12/31/2018 1,174,255,091 126,858,857 9,570,693 (238,476,009) (7,136,955) 82,183,292 1,147,254,970 2,703,299,799 43.44% 1,385,730,979 5.811

2 12/31/2019 1,147,254,970 130,719,066 9,497,851 (240,778,124) (7,235,993) 79,596,344 1,119,054,114 2,698,844,694 42.51% 1,359,832,238 5.648

3 12/31/2020 1,119,054,114 134,556,012 9,497,851 (243,018,522) (6,815,865) 76,870,414 1,090,144,004 2,691,317,129 41.58% 1,333,162,526 5.486

4 12/31/2021 1,090,144,004 138,158,433 9,497,851 (245,695,501) (6,918,030) 74,089,308 1,059,276,065 2,680,277,630 40.67% 1,304,971,566 5.311

5 12/31/2022 1,059,276,065 141,466,836 9,497,851 (248,108,546) (7,022,280) 71,107,825 1,026,217,751 2,664,941,044 39.75% 1,274,326,297 5.136

6 12/31/2023 1,026,217,751 144,824,740 9,497,851 (250,027,980) (7,127,573) 67,943,649 991,328,438 2,645,214,522 38.80% 1,241,356,418 4.965

7 12/31/2024 991,328,438 148,376,864 9,497,851 (251,773,895) (7,234,950) 64,912,535 955,106,843 2,621,306,056 37.82% 1,206,880,738 4.794

8 12/31/2025 955,106,843 152,024,878 9,497,851 (253,199,347) (7,343,370) 62,033,384 918,120,239 2,593,078,198 36.83% 1,171,319,586 4.626

9 12/31/2026 918,120,239 155,773,714 9,497,851 (254,130,690) (7,453,875) 59,331,527 881,138,766 2,560,470,317 35.86% 1,135,269,456 4.467

1 0 12/31/2027 881,138,766 159,643,163 9,497,851 (254,532,541) (7,565,423) 64,853,105 853,034,922 2,523,714,058 34.91% 1,107,567,463 4.351

1 1 12/31/2028 853,034,922 163,658,474 9,497,851 (254,235,952) (7,679,055) 62,670,808 826,947,048 2,483,145,363 34.35% 1,081,183,000 4.253

1 2 12/31/2029 826,947,048 167,800,651 9,475,797 (253,593,205) (7,793,730) 60,750,626 803,587,186 2,439,295,706 33.90% 1,057,180,391 4.169

1 3 12/31/2030 803,587,186 169,935,486 9,425,111 (252,178,782) (7,910,490) 58,920,804 781,779,315 2,392,319,068 33.59% 1,033,958,097 4.100

1 4 12/31/2031 781,779,315 169,217,536 9,251,903 (250,391,848) (8,029,335) 57,193,045 759,020,616 2,342,675,900 33.37% 1,009,412,464 4.031

1 5 12/31/2032 759,020,616 168,551,422 8,949,319 (247,996,289) (8,150,265) 55,488,693 735,863,497 2,290,581,383 33.14% 983,859,786 3.967

1 6 12/31/2033 735,863,497 167,880,805 8,949,319 (244,999,925) (8,272,238) 53,718,471 713,139,930 2,236,464,996 32.90% 958,139,855 3.911

1 7 12/31/2034 713,139,930 167,210,785 4,474,660 (241,243,093) (8,396,295) 51,843,131 687,029,117 2,180,831,654 32.70% 928,272,210 3.848

1 8 12/31/2035 687,029,117 166,608,308 (237,276,718) - (8,522,438) 49,787,651 657,625,921 2,124,424,642 32.34% 894,902,639 3.772

1 9 12/31/2036 657,625,921 166,038,848 (232,642,855) - (8,650,665) 47,615,891 629,987,140 2,067,403,470 31.81% 862,629,995 3.708

2 0 12/31/2037 629,987,140 165,458,003 (227,705,033) - (8,779,935) 45,655,577 604,615,752 2,010,460,517 31.34% 832,320,785 3.655

2 1 12/31/2038 604,615,752 164,915,115 (222,411,062) - (8,911,290) 43,884,452 582,092,967 1,953,931,653 30.94% 804,504,029 3.617

2 2 12/31/2039 582,092,967 164,399,566 (216,851,657) - (9,044,730) 42,288,127 562,884,273 1,898,242,251 30.66% 779,735,930 3.596

2 3 12/31/2040 562,884,273 163,847,735 (211,138,625) - (9,180,255) 41,007,555 547,420,683 1,843,771,092 30.53% 758,559,308 3.593

2 4 12/31/2041 547,420,683 163,284,176 (204,924,912) - (9,317,865) 40,032,904 536,494,986 1,790,779,463 30.57% 741,419,898 3.618

2 5 12/31/2042 536,494,986 162,741,778 (199,132,387) - (9,457,560) 39,390,888 530,037,705 1,739,952,711 30.83% 729,170,092 3.662

2 6 12/31/2043 530,037,705 162,254,844 (193,187,019) - (9,599,340) 39,099,508 528,605,698 1,691,038,066 31.34% 721,792,717 3.736

2 7 12/31/2044 528,605,698 161,762,831 (187,000,395) - (9,743,205) 39,151,433 532,776,362 1,644,388,138 32.15% 719,776,757 3.849

2 8 12/31/2045 532,776,362 161,273,104 (181,074,898) - (9,889,155) 39,673,506 542,758,919 1,600,455,726 33.29% 723,833,817 3.997

2 9 12/31/2046 542,758,919 160,805,268 (175,128,534) - (10,037,190) 40,642,328 559,040,791 1,559,217,116 34.81% 734,169,325 4.192

3 0 12/31/2047 559,040,791 160,359,940 (169,907,897) - (10,187,310) 42,066,664 581,372,188 1,520,943,165 36.76% 751,280,085 4.422

3 1 12/31/2048 581,372,188 159,894,304 (164,783,745) - (10,340,558) 43,949,801 610,091,990 1,485,019,347 39.15% 774,875,735 4.702

3 2 12/31/2049 610,091,990 159,415,154 (159,850,219) - (10,495,890) 46,314,391 645,475,426 1,451,482,700 42.03% 805,325,645 5.038

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

4 

Projection of benefit payments, separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, currently active 

participants, and future new entrants: 

Revenue Procedure 2016-27, Section 3.02: Projected Benefit Payments Separated by Status

Projected Benefit Payments by Status

Plan Year Total Retirees Terminated Future New

Ending Benefit Payments & Beneficiaries Vested Active Entrants

CY 12/31/2017 277,763,262 258,960,991 5,280,868 13,521,403 -

1 12/31/2018 238,476,009 215,115,161 5,928,710 17,432,138 -

2 12/31/2019 240,778,124 209,598,333 7,456,076 23,723,715 -

3 12/31/2020 243,018,522 203,954,298 9,128,801 29,935,423 -

4 12/31/2021 245,695,501 198,147,347 10,761,991 36,786,163 -

5 12/31/2022 248,108,546 192,201,347 12,388,581 43,518,618 -

6 12/31/2023 250,027,980 186,096,449 14,195,453 49,736,078 -

7 12/31/2024 251,773,895 179,814,947 15,885,393 56,073,555 -

8 12/31/2025 253,199,347 173,371,923 17,340,115 62,487,309 -

9 12/31/2026 254,130,690 166,830,764 18,849,066 68,450,860 -

1 0 12/31/2027 254,532,541 160,153,964 20,269,362 74,109,215 -

1 1 12/31/2028 254,235,952 153,290,790 21,886,366 79,058,796 -

1 2 12/31/2029 253,593,205 146,365,623 23,295,763 83,931,819 -

1 3 12/31/2030 252,178,782 139,336,159 24,247,795 88,397,361 197,467

1 4 12/31/2031 250,391,848 132,250,704 25,280,890 92,400,848 459,406

1 5 12/31/2032 247,996,289 125,125,965 26,049,137 95,990,477 830,710

1 6 12/31/2033 244,999,925 118,003,455 26,786,381 98,955,827 1,254,262

1 7 12/31/2034 241,243,093 110,906,904 27,516,190 101,081,558 1,738,441

1 8 12/31/2035 237,276,718 103,876,486 28,203,582 102,840,778 2,355,872

1 9 12/31/2036 232,642,855 96,921,613 28,576,798 104,132,341 3,012,103

2 0 12/31/2037 227,705,033 90,064,531 28,713,784 105,190,045 3,736,673

2 1 12/31/2038 222,411,062 83,347,101 28,871,117 105,678,494 4,514,350

2 2 12/31/2039 216,851,657 76,797,720 28,886,889 105,818,081 5,348,967

2 3 12/31/2040 211,138,625 70,446,752 28,692,882 105,642,147 6,356,844

2 4 12/31/2041 204,924,912 64,312,761 28,364,061 104,847,647 7,400,443

2 5 12/31/2042 199,132,387 58,417,221 27,975,088 104,213,052 8,527,026

2 6 12/31/2043 193,187,019 52,787,070 27,539,172 103,157,300 9,703,477

2 7 12/31/2044 187,000,395 47,440,784 26,916,002 101,704,404 10,939,205

2 8 12/31/2045 181,074,898 42,393,975 26,278,757 100,056,305 12,345,861

2 9 12/31/2046 175,128,534 37,659,094 25,655,109 98,012,685 13,801,646

3 0 12/31/2047 169,907,897 33,244,834 24,924,584 95,820,813 15,917,666

3 1 12/31/2048 164,783,745 29,156,595 23,977,912 93,409,321 18,239,917

3 2 12/31/2049 159,850,219 25,396,588 22,996,060 90,738,967 20,718,604

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

5 

Assumptions: 

Generally, the assumptions used in the actuarial projection above are the same as those used in the actuarial 

projection required under Section 3.01 of Revenue Procedure 2016-27. Please refer to the actuarial projection 

under Section 3.01 of Revenue Procedure 2016-27 for more information regarding the assumptions. Where 

assumptions differ from those described under Section 3.01 of Revenue Procedure 2016-27, additional 

commentary is provided below. 

 Non-Disabled Mortality: For projections for purposes of the certification of status (as described under 

Section 3.01 of Revenue Procedure 2016-27), the assumption was the RP-2014 Mortality Tables for 

males and females, with Blue Collar adjustment, rates increased by 15%, and future improvement 

projected generationally based on 50% of the MP-2015 Mortality Improvement Scale. For purposes of 

projections of the proposed suspension of benefits, the assumption was updated to the RP-2014 

Mortality Tables for males and females, with Blue Collar adjustment, and future improvement 

projected generationally based on 100% of the MP-2016 Mortality Improvement Scale. The updated 

assumption represents anticipated future experience for the Plan, and it was developed based on a 

review of the Plan’s amount-weighted mortality experience with respect to the standard mortality 

tables and improvement scales published by the Society of Actuaries. 

 Disabled Mortality: For projections for purposes of the certification of status (as described under 

Section 3.01 of Revenue Procedure 2016-27), the assumption was the RP-2014 Disabled Mortality 

Tables for males and females, rates increased by 15%, and future improvement projected 

generationally based on 50% of the MP-2015 Mortality Improvement Scale. For purposes of 

projections of the proposed suspension of benefits, the assumption was updated to the RP-2014 

Disabled Mortality Tables for males and females, with future improvement projected generationally 

based on 100% of the MP-2016 Mortality Improvement Scale. The updated assumption represents 

anticipated future experience for the Plan, and it was developed based on a review of the standard 

mortality tables and improvement scales published by the Society of Actuaries. 

 Contribution Base Units and Contribution Rates (No changes from information provided under Section 

3.01 of Revenue Procedure 2016-27): There are significant differences in the contribution base units 

and contribution rates under each schedule of the Rehabilitation Plan. The table below shows the 

active participant count, average contribution base units and average contribution rate under each 

schedule of the Rehabilitation Plan. This information is based on census data as of January 1, 2016. 

Note that because of the active population scenario described in the actuarial projection under Section 

3.01 of Revenue Procedure 2016-27, results are shown separately for UPS, ABF and YRC. 
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

6 

For each active participant in the valuation, hours are assumed to be the average of a participant’s 

actual hours worked in the three plan years preceding the valuation date. Contributions made on 

behalf of each participant are assumed to be equal to the assumed hours worked multiplied by a 

participant’s contribution rate.

Note that the participant count in the Default Schedule shown above includes approximately 1,600 

active participants who are employed by a withdrawn employer but have yet to incur a three-year 

break in service. We assume no future contributions on hours worked for these participants. After 

making this adjustment, the total assumed contribution base units is approximately 14.7 million hours. 

 Form of Payment: 100% of single participants and 16% of married participants are assumed to elect the 

single life annuity. 84% of married participants are assumed to elect the 50% J&S annuity. This 

assumption is based on a historical review of benefit elections under the Plan. 

 Retirement for Terminated Vested Participants: Terminated Vested participants are assumed to retire 

at the later of age 62 or current age if a participant has 15 years of service. If a terminated vested 

participant has less than 15 years of service, he or she is assumed to retire at the later of age 65 or 

current age. 

 Terminated Vested Participants Over Age 72: Terminated vested participants over age 72 are included 

in the projection. 

Revenue Procedure 2016-27, Section 3.02: Active Participants, Base Units and Contribution Rates

Rehabilitation Participants Average Average Contribution

Plan Schedule as of 1/1/2016 Hours per Participant Rate per Participant

Default 4,271 1,021 4.0614

A 2 1 1,665 3.8210

B 532 1,248 6.8826

B (UPS) 2,216 1,034 11.4038

C 519 1,734 4.1211

D 9 8 1,648 4.0850

E 1,422 1,733 3.7458

E (UPS & ABF) 1,917 1,954 14.6148

G (YRC) 580 1,799 2.3361
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

7 

 Investment Return: The investment return is assumed to be as follows: 

Please see Appendix B for additional information regarding the investment return assumption. 

Assumed Annual Investment Return

Assumed Assumed Assumed 

Plan Year Investment Plan Year Investment Plan Year Investment 

Ending Return Ending Return Ending Return

CY 12/31/2017 7.37% 1 5 12/31/2032 7.71% 3 0 12/31/2047 7.66%

1 12/31/2018 7.34% 1 6 12/31/2033 7.70% 3 1 12/31/2048 7.66%

2 12/31/2019 7.28% 1 7 12/31/2034 7.69% 3 2 12/31/2049 7.66%

3 12/31/2020 7.21% 1 8 12/31/2035 7.69%

4 12/31/2021 7.14% 1 9 12/31/2036 7.68%

5 12/31/2022 7.06% 2 0 12/31/2037 7.68%

6 12/31/2023 6.97% 2 1 12/31/2038 7.68%

7 12/31/2024 6.90% 2 2 12/31/2039 7.67%

8 12/31/2025 6.85% 2 3 12/31/2040 7.67%

9 12/31/2026 6.82% 2 4 12/31/2041 7.67%

1 0 12/31/2027 7.77% 2 5 12/31/2042 7.67%

1 1 12/31/2028 7.75% 2 6 12/31/2043 7.67%

1 2 12/31/2029 7.74% 2 7 12/31/2044 7.66%

1 3 12/31/2030 7.72% 2 8 12/31/2045 7.66%

1 4 12/31/2031 7.71% 2 9 12/31/2046 7.66%

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

8 

Actuarial Certification 

As Plan Actuary, I certify that the plan is projected to avoid insolvency within the meaning of Section 418E of 

the Code, taking into account the proposed benefit suspension and assuming that the proposed suspension 

continues indefinitely. 

This certification was performed based upon actuarial projections of assets and liabilities for the current and 

succeeding plan years, including any proposed benefit suspensions. These projections are based on reasonable 

actuarial estimates, assumptions, and methods that offer my best estimate of anticipated experience under the 

Plan for purposes of this measurement. The projected present value of Plan liabilities as of the beginning of the 

Plan Year was determined based on a projection of the actuarial valuation of the Plan as of January 1, 2016. 

The projections of Plan assets are based the estimated market value of assets as of March 31, 2017 and the 

assumption that future net investment returns will be as described above. 

The actuarial projection used in this certification is based on the same actuarial assumptions used in the 

actuarial projection under Section 3.01 of Revenue Procedure 2016-27, with the exceptions noted above. 

The actuarial projection of Plan assets is also based on a projection of industry activity and employer 

contributions for the current and succeeding plan years. The projection of industry activity (in other words, 

covered employment levels) is based on information provided in good faith by the Board of Trustees. See 

above for additional information regarding the active population assumption. 

Projections of Plan liabilities were performed using an open group valuation methodology. In other words, 

each year, hypothetical new entrants were added to the population to achieve the expected level of projected 

industry activity which was developed based on information provided by the Board of Trustees. The 

demographic characteristics of the assumed new entrants were developed based on a review of new 

participants under the Plan in recent years. 

Certified by: 

James M. Locey, EA, MAAA

Horizon Actuarial Services, LLC

8601 Georgia Avenue, Suite 700

Silver Spring, MD 20910

Phone Number: (240) 247-4600

Enrollment Number: 

Date: May 15, 2017

Redacted by the U.S. Department of 

the Treasury

Redacte

d by the 

U.S. 

Departm

ent of the 

Treasury
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

9 

New Entrant Profile 

The new entrant profile used in the projections consists of a separate new entrant profile for each 

schedule of the Rehabilitation Plan. In addition, because of the industry activity assumption 

recommended by the Board of Trustees, there is a separate new entrant profile for UPS participants in 

Schedule B, UPS and ABF participants in Schedule E, and YRC participants in Schedule G. This is 

necessary because of the different characteristics of participants in each schedule. All new entrants are 

assumed to be male and are assumed to enter the Plan with 0.50 years of service. 

The new entrant profile is developed to, as accurately as possible, estimate the impact of future new 

entrants on the Plan’s expected contributions, benefit payments and liabilities. 

The age of new entrants is based on a historical analysis of new entrants to the Plan over the seven year 

period ending on December 31, 2015. The distribution of new entrants by age is as follows: 

For each schedule or subset of a schedule, a distribution of the contribution rate that counts for benefit 

accruals and the total contribution is created. Based on this distribution and the age distribution of new 

entrants, the following new entrant profiles are created. Note that participants employed by employers 

that have withdrawn but have not yet incurred a three-year break in service are not included in this 

analysis. 

Revenue Procedure 2016-27, Section 3.02: Historical New Entrants

Age New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants Total % of 

Band in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 New Entrants Total

< 25 179 131 140 150 137 232 187 1,156 19%

25 - 30 6 8 7 5 107 117 131 138 171 807 13%

30 - 35 231 286 562 479 313 292 245 2,408 40%

35 - 40 4 1 4 6 4 8 4 5 5 9 7 6 9 9 414 7 %

40 - 45 4 2 4 8 6 5 5 9 4 9 6 7 6 4 394 7 %

45 - 50 4 0 4 0 4 1 4 7 4 2 7 2 6 7 349 6 %

50 - 55 3 6 2 5 4 0 3 5 4 0 4 9 4 7 272 5 %

55 - 60 1 3 1 9 2 5 2 3 2 2 3 3 2 7 162 3 %

> 60 3 6 9 6 6 9 1 4 5 3 1 %

Total 653 676 1,037 961 799 968 921 6,015
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

10

New Entrant Profile for Default Schedule: 

Revenue Procedure 2016-27, Section 3.02: Default Schedule New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 4 0.9778 1,222 1.2125 1,516

2 2 1,250 8 2.2818 2,852 2.8635 3,579

2 2 1,250 3 3.8529 4,816 4.7442 5,930

2 2 1,250 1 5.9065 7,383 7.3358 9,170

2 2 1,250 3 8.4518 10,565 10.3118 12,890

2 2 1,250 1 9.6476 12,060 13.1562 16,445

2 7 1,250 3 0.9778 1,222 1.2125 1,516

2 7 1,250 5 2.2818 2,852 2.8635 3,579

2 7 1,250 2 3.8529 4,816 4.7442 5,930

2 7 1,250 2 8.4518 10,565 10.3118 12,890

3 2 1,250 9 0.9778 1,222 1.2125 1,516

3 2 1,250 1 6 2.2818 2,852 2.8635 3,579

3 2 1,250 6 3.8529 4,816 4.7442 5,930

3 2 1,250 1 5.9065 7,383 7.3358 9,170

3 2 1,250 1 7.7506 9,688 9.1720 11,465

3 2 1,250 6 8.4518 10,565 10.3118 12,890

3 2 1,250 1 9.6476 12,060 13.1562 16,445

3 7 1,250 2 0.9778 1,222 1.2125 1,516

3 7 1,250 3 2.2818 2,852 2.8635 3,579

3 7 1,250 1 3.8529 4,816 4.7442 5,930

3 7 1,250 1 8.4518 10,565 10.3118 12,890

4 2 1,250 2 0.9778 1,222 1.2125 1,516

4 2 1,250 3 2.2818 2,852 2.8635 3,579

4 2 1,250 1 3.8529 4,816 4.7442 5,930

4 2 1,250 1 8.4518 10,565 10.3118 12,890

4 7 1,250 1 0.9778 1,222 1.2125 1,516

4 7 1,250 2 2.2818 2,852 2.8635 3,579

4 7 1,250 1 3.8529 4,816 4.7442 5,930

4 7 1,250 1 8.4518 10,565 10.3118 12,890

5 2 1,250 2 0.9778 1,222 1.2125 1,516

5 2 1,250 3 2.2818 2,852 2.8635 3,579

5 2 1,250 1 3.8529 4,816 4.7442 5,930

5 2 1,250 1 8.4518 10,565 10.3118 12,890
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

11

New Entrant Profile for Schedule A: 

Revenue Procedure 2016-27, Section 3.02: Schedule A New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,665 9 2.5212 4,198 3.2641 5,435

2 2 1,665 1 0 3.4304 5,712 4.3273 7,205

2 7 1,665 6 2.5212 4,198 3.2641 5,435

2 7 1,665 7 3.4304 5,712 4.3273 7,205

3 2 1,665 1 9 2.5212 4,198 3.2641 5,435

3 2 1,665 2 1 3.4304 5,712 4.3273 7,205

3 7 1,665 3 2.5212 4,198 3.2641 5,435

3 7 1,665 4 3.4304 5,712 4.3273 7,205

4 2 1,665 3 2.5212 4,198 3.2641 5,435

4 2 1,665 3 3.4304 5,712 4.3273 7,205

4 7 1,665 3 2.5212 4,198 3.2641 5,435

4 7 1,665 3 3.4304 5,712 4.3273 7,205

5 2 1,665 4 2.5212 4,198 3.2641 5,435

5 2 1,665 4 3.4304 5,712 4.3273 7,205
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

12

New Entrant Profile for Schedule B (Not Including UPS Participants): 

New Entrant Profile for Schedule B (UPS Participants Only): 

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (Not Including UPS Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 2 0.5858 732 0.7009 876

2 2 1,250 4 2.2235 2,779 3.0555 3,819

2 2 1,250 3 3.7541 4,693 5.1287 6,411

2 2 1,250 9 8.4524 10,566 10.6814 13,352

2 7 1,250 2 0.5858 732 0.7009 876

2 7 1,250 3 2.2235 2,779 3.0555 3,819

2 7 1,250 2 3.7541 4,693 5.1287 6,411

2 7 1,250 6 8.4524 10,566 10.6814 13,352

3 2 1,250 5 0.5858 732 0.7009 876

3 2 1,250 8 2.2235 2,779 3.0555 3,819

3 2 1,250 6 3.7541 4,693 5.1287 6,411

3 2 1,250 1 4.8041 6,005 6.6833 8,354

3 2 1,250 1 8 8.4524 10,566 10.6814 13,352

3 2 1,250 10.7583 1 13,448 14.6831 18,354

3 7 1,250 1 0.5858 732 0.7009 876

3 7 1,250 1 2.2235 2,779 3.0555 3,819

3 7 1,250 1 3.7541 4,693 5.1287 6,411

3 7 1,250 3 8.4524 10,566 10.6814 13,352

4 2 1,250 1 0.5858 732 0.7009 876

4 2 1,250 1 2.2235 2,779 3.0555 3,819

4 2 1,250 1 3.7541 4,693 5.1287 6,411

4 2 1,250 3 8.4524 10,566 10.6814 13,352

4 7 1,250 1 0.5858 732 0.7009 876

4 7 1,250 1 2.2235 2,779 3.0555 3,819

4 7 1,250 1 3.7541 4,693 5.1287 6,411

4 7 1,250 3 8.4524 10,566 10.6814 13,352

5 2 1,250 1 0.5858 732 0.7009 876

5 2 1,250 2 2.2235 2,779 3.0555 3,819

5 2 1,250 1 3.7541 4,693 5.1287 6,411

5 2 1,250 4 8.4524 10,566 10.6814 13,352

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (UPS Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,035 1 9 8.4520 8,748 11.3270 11,723

2 7 1,035 1 3 8.4520 8,748 11.3270 11,723

3 2 1,035 3 9 8.4520 8,748 11.3270 11,723

3 7 1,035 7 8.4520 8,748 11.3270 11,723

4 2 1,035 6 8.4520 8,748 11.3270 11,723

4 7 1,035 6 8.4520 8,748 11.3270 11,723

5 2 1,035 8 8.4520 8,748 11.3270 11,723
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

13

New Entrant Profile for Schedule C: 

New Entrant Profile for Schedule D: 

Revenue Procedure 2016-27, Section 3.02: Schedule C New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,735 1 0 1.7189 2,982 2.3286 4,040

2 2 1,735 7 3.5953 6,238 4.7893 8,309

2 2 1,735 2 6.6416 11,523 9.4514 16,398

2 7 1,735 7 1.7189 2,982 2.3286 4,040

2 7 1,735 5 3.5953 6,238 4.7893 8,309

2 7 1,735 1 6.6416 11,523 9.4514 16,398

3 2 1,735 2 1 1.7189 2,982 2.3286 4,040

3 2 1,735 1 4 3.5953 6,238 4.7893 8,309

3 2 1,735 1 4.9375 8,567 6.8369 11,862

3 2 1,735 4 6.6416 11,523 9.4514 16,398

3 7 1,735 4 1.7189 2,982 2.3286 4,040

3 7 1,735 2 3.5953 6,238 4.7893 8,309

3 7 1,735 1 6.6416 11,523 9.4514 16,398

4 2 1,735 3 1.7189 2,982 2.3286 4,040

4 2 1,735 2 3.5953 6,238 4.7893 8,309

4 2 1,735 1 6.6416 11,523 9.4514 16,398

4 7 1,735 3 1.7189 2,982 2.3286 4,040

4 7 1,735 2 3.5953 6,238 4.7893 8,309

4 7 1,735 1 6.6416 11,523 9.4514 16,398

5 2 1,735 4 1.7189 2,982 2.3286 4,040

5 2 1,735 3 3.5953 6,238 4.7893 8,309

5 2 1,735 1 6.6416 11,523 9.4514 16,398

Revenue Procedure 2016-27, Section 3.02: Schedule D New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,650 4 1.6202 2,673 2.3035 3,801

2 2 1,650 1 5 3.1804 5,248 4.5196 7,457

2 7 1,650 2 1.6202 2,673 2.3035 3,801

2 7 1,650 1 1 3.1804 5,248 4.5196 7,457

3 2 1,650 7 1.6202 2,673 2.3035 3,801

3 2 1,650 3 2 3.1804 5,248 4.5196 7,457

3 7 1,650 1 1.6202 2,673 2.3035 3,801

3 7 1,650 6 3.1804 5,248 4.5196 7,457

4 2 1,650 1 1.6202 2,673 2.3035 3,801

4 2 1,650 5 3.1804 5,248 4.5196 7,457

4 7 1,650 1 1.6202 2,673 2.3035 3,801

4 7 1,650 5 3.1804 5,248 4.5196 7,457

5 2 1,650 1 1.6202 2,673 2.3035 3,801

5 2 1,650 7 3.1804 5,248 4.5196 7,457
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

14

New Entrant Profile for Schedule E (Not Including UPS or ABF Participants): 

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (Not Including UPS or ABF Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,765 2 0.9356 1,651 1.2346 2,179

2 2 1,765 1 1 1.6024 2,828 2.3612 4,167

2 2 1,765 3 3.3145 5,850 4.9090 8,664

2 2 1,765 1 4.6104 8,137 6.7161 11,854

2 2 1,765 1 9.1719 16,188 13.5041 23,835

2 7 1,765 2 0.9356 1,651 1.2346 2,179

2 7 1,765 8 1.6024 2,828 2.3612 4,167

2 7 1,765 2 3.3145 5,850 4.9090 8,664

2 7 1,765 1 4.6104 8,137 6.7161 11,854

2 7 1,765 1 9.1719 16,188 13.5041 23,835

3 2 1,765 5 0.9356 1,651 1.2346 2,179

3 2 1,765 2 3 1.6024 2,828 2.3612 4,167

3 2 1,765 6 3.3145 5,850 4.9090 8,664

3 2 1,765 3 4.6104 8,137 6.7161 11,854

3 2 1,765 1 7.0318 12,411 8.8851 15,682

3 2 1,765 2 9.1719 16,188 13.5041 23,835

3 7 1,765 1 0.9356 1,651 1.2346 2,179

3 7 1,765 4 1.6024 2,828 2.3612 4,167

3 7 1,765 1 3.3145 5,850 4.9090 8,664

3 7 1,765 1 4.6104 8,137 6.7161 11,854

4 2 1,765 1 0.9356 1,651 1.2346 2,179

4 2 1,765 4 1.6024 2,828 2.3612 4,167

4 2 1,765 1 3.3145 5,850 4.9090 8,664

4 7 1,765 1 0.9356 1,651 1.2346 2,179

4 7 1,765 3 1.6024 2,828 2.3612 4,167

4 7 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 0.9356 1,651 1.2346 2,179

5 2 1,765 5 1.6024 2,828 2.3612 4,167

5 2 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 4.6104 8,137 6.7161 11,854
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

15

New Entrant Profile for Schedule E (UPS and ABF Participants Only): 

New Entrant Profile for Schedule G (YRC Participants Only): 

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (UPS and ABF Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,955 1 9 9.6256 18,818 14.6148 28,572

2 7 1,955 1 3 9.6256 18,818 14.6148 28,572

3 2 1,955 4 0 9.6256 18,818 14.6148 28,572

3 7 1,955 7 9.6256 18,818 14.6148 28,572

4 2 1,955 7 9.6256 18,818 14.6148 28,572

4 7 1,955 6 9.6256 18,818 14.6148 28,572

5 2 1,955 8 9.6256 18,818 14.6148 28,572

Revenue Procedure 2016-27, Section 3.02: Schedule G New Entrant Profile (YRC Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,800 1 9 1.9987 3,598 2.2457 4,042

2 7 1,800 1 3 1.9987 3,598 2.2457 4,042

3 2 1,800 4 0 1.9987 3,598 2.2457 4,042

3 7 1,800 7 1.9987 3,598 2.2457 4,042

4 2 1,800 6 1.9987 3,598 2.2457 4,042

4 7 1,800 6 1.9987 3,598 2.2457 4,042

5 2 1,800 8 1.9987 3,598 2.2457 4,042
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

16

This appendix includes the development of the investment return assumption used in the actuarial 

projections contained in this report. Unless otherwise noted, investment return assumptions are net of 

investment fees. 

We note that the assumptions developed in this appendix are individually reasonable and, along with 

other assumptions used in the projection, represent our best estimate of future experience under the 

Plan for the purposes of this measurement, which is a cash flow projection relating to proposed benefit 

suspensions under MPRA. In addition, the assumptions were developed with input from the Plan’s 

investment consultant and in consultation with the Board of Trustees. 

Summary 

The investment return assumption is as follows: 

Note that the assumed investment return shown above for the current plan year applies for the 9-month 

period from 4/1/2017 through 12/31/2017. 

The investment return assumption was developed based on the Plan’s target asset allocation, considering 

the results of the 2016 Survey of Capital Market Assumptions by Horizon Actuarial Services, LLC (the “2016 

Survey”) and input from the Plan’s investment consultant. The assumption reflects the fact that, according 

to the average assumptions from the 2016 Survey, returns are generally expected to be lower over the next 

10 years than over the long term. 

The assumption also reflects the possibility of future changes in the Plan’s asset allocation to satisfy Plan 

liquidity needs. Based on input from the Plan’s investment consultant and in consultation with the Trustees, 

the chart below shows a process of moving from the target asset allocation to a “long-term” asset allocation 

(less volatile and more liquid) over a five-year period. The Trustees have reviewed and approved this less 

volatile and more liquid asset allocation as well as transition as an appropriate alternative asset allocation to 

be considered in the event of liquidity needs. 

Assumed Annual Investment Return

Assumed Assumed Assumed 

Plan Year Investment Plan Year Investment Plan Year Investment 

Ending Return Ending Return Ending Return

CY 12/31/2017 7.37% 1 5 12/31/2032 7.71% 3 0 12/31/2047 7.66%

1 12/31/2018 7.34% 1 6 12/31/2033 7.70% 3 1 12/31/2048 7.66%

2 12/31/2019 7.28% 1 7 12/31/2034 7.69% 3 2 12/31/2049 7.66%

3 12/31/2020 7.21% 1 8 12/31/2035 7.69%

4 12/31/2021 7.14% 1 9 12/31/2036 7.68%

5 12/31/2022 7.06% 2 0 12/31/2037 7.68%

6 12/31/2023 6.97% 2 1 12/31/2038 7.68%

7 12/31/2024 6.90% 2 2 12/31/2039 7.67%

8 12/31/2025 6.85% 2 3 12/31/2040 7.67%

9 12/31/2026 6.82% 2 4 12/31/2041 7.67%

1 0 12/31/2027 7.77% 2 5 12/31/2042 7.67%

1 1 12/31/2028 7.75% 2 6 12/31/2043 7.67%

1 2 12/31/2029 7.74% 2 7 12/31/2044 7.66%

1 3 12/31/2030 7.72% 2 8 12/31/2045 7.66%

1 4 12/31/2031 7.71% 2 9 12/31/2046 7.66%

"CY" = current plan year
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

17

For each of the asset allocations shown above, below are the results from our 2016 Survey of Capital Market 

Assumptions. 

The timing of possible future changes in the Plan’s asset allocation were analyzed on a stochastic basis to

determine the probability of the Fund’s assets dropping below $1 billion. Based on consideration from the 

Trustees, the threshold of $1 billion was chosen as a reasonable estimate of the level at which the Plan will 

still be able to sell its illiquid assets without risk of needing those assets to be available for immediate 

benefit payments. The investment consultant has recommended that a shift from the target policy 

allocation to the long-term allocation should happen over a five-year period. At $1 billion, approximately 

half (or $500 million) of the assets are committed to illiquid investments (about one-third of the assets are 

in illiquid investments and, and as noted in the audited financial statements, there are unfunded private 

equity commitments equal to an additional 15-20% of the Plan’s assets). After the proposed suspensions 

take effect, the Plan’s negative cash flow is approximately $100 million per year. With $500 million in liquid 

assets, the Plan would be able to ensure benefit payments would be funded for five years (without regard to 

asset returns) while the Plan migrates to the long-term allocation. 

Once the Fund’s assets dropped below the threshold level, we assumed based on consultations with the 

Trustees that they would give serious consideration to shifting the asset allocation to the long-term 

allocation. The probability of each of the asset allocations shown above was used to develop the 

deterministic assumption for each year of the projection. 

We performed an analysis considering the expected changes in the Plan’s assets and determined that the 

Plan will not have to prematurely sell any of its illiquid assets (private equity) at a loss or with a penalty. This 

Portfolio Statistics Target Allocation Policy Long-Term Asset Allocation Policy

Year 1 Year 2 Year 3 Year 4 Year 5

Investment Grade Bonds 7% 9% 11% 12% 13% 14% 16%

TIPS 5% 8% 9% 10% 12% 13% 14%

High Yield Bonds 2% 2% 2% 2% 2% 2% 2%

Bank Loans 2% 2% 2% 2% 2% 2% 2%

Emerging Market Bonds (local) 8% 5% 4% 4% 3% 3% 2%

US Large Cap 14% 14% 14% 14% 14% 14% 14%

US Small Cap 4% 2% 2% 2% 2% 2% 2%

Developed Market Equity (non-US) 8% 10% 10% 10% 10% 10% 10%

Emerging Market Equity 16% 14% 13% 12% 11% 10% 9%

Private Equity 15% 15% 14% 13% 12% 11% 10%

Real Estate 7% 7% 7% 7% 7% 7% 7%

Natural Resources 7% 7% 7% 7% 7% 7% 7%

Infrastructure 5% 5% 5% 5% 5% 5% 5%

Interim/Transition Asset Allocation Policies Expected Returns 10-Year Long-Term

Target Policy 7.37% 8.33%

Transition Year 1 7.18% 8.15%

Transition Year 2 7.04% 8.02%

Transition Year 3 6.92% 7.90%

Transition Year 4 6.76% 7.76%

Transition Year 5 6.64% 7.63%

Long Term Policy 6.49% 7.49%
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

18

is because the Plan is expecting distributions from its private equity investments in excess of the expected 

decrease in the private equity assets of the Plan. Distributions in future years are expected to be large since 

the Plan has a mature private equity investment program. The majority of the Fund’s investments in the 

program were made during the first four years of the program (vintage years 2006-2009). Investments in 

the limited partnerships for vintage years 2006-2009 are expected to last approximately 10 years. So, the 

lifetime of the investments made in 2006-2009 will be ending in 2016-2019. Because the majority of the 

Fund’s private equity investments are ending in 2016-2019, the Fund is expecting larger distributions from 

the program in these years. 
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 5
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information to Supplement Plan 

Sponsor’s Response Under Section 3.03 

of Revenue Procedure 2016-27 for 

Benefit Suspensions Effective 

October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

This report provides information to supplement the Plan Sponsor’s response to Section 3.03 of Revenue 

Procedure 2016-27: Application Procedures for Approval of Benefit Suspensions for Certain Multiemployer 

Defined Benefit Pension Plans under § 432(e)(9). This information is applicable to the New York State 

Teamsters Conference Pension and Retirement Fund (the “Plan”) assuming an effective date for benefit 

suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this supplemental report, we have relied upon information and data provided to us by the 

Board of Trustees of the Plan, the Plan administrator, and other persons or organizations designated by the 

Board of Trustees. We did not perform an audit of the financial and participant census data provided to us, 

but we have reviewed the data for reasonableness for the purpose of the measurement. We have relied on 

all of the information, including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information necessary to supplement the Plan Sponsor’s 

response to Section 3.03 of Revenue Procedure 2016-27. There may be additional information required in 

the application that will be compiled by the Plan administrator and/or other persons or organizations 

designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department 

of the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

Summary 1

Plan-year-by-plan-year projection of the available resources 2

Projection of benefit payments separated by status 3

Assumptions 4
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

1 

Plan sponsor’s determination of projected insolvency 

Under Section 3.03 of Revenue Procedure 2016-27, the plan sponsor must make a determination under 

Section 432(e)(9)(C)(ii) of the Code that the plan would not be projected to avoid insolvency if no 

suspension of benefits were applied under the Plan, even though all reasonable measures to avoid 

insolvency have been taken. The determination must include the documentation set forth in Section 5 

of Revenue Procedure 2016-27. 

On the following pages, we have included:

 A plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) 

of the Code and the benefits under the plan, demonstrating the Plan would not be projected 

to avoid insolvency if no suspension of benefits were applied under the Plan. 

 A plan-year-by-plan-year projection of the benefit payments, separated by projected 

payments made to current retirees and beneficiaries, terminated vested participants who are 

not currently receiving benefits, currently active participants, and future new entrants.

 A description of each of the assumptions used in the projections, including the new entrant 

profile, the total contribution base units and average contribution rates.

Note that this projection, by itself, does not satisfy all the requirements of Section 3.03 of Revenue 

Procedure 2016-27. There is additional commentary required by the Plan Sponsor, which is included in 

the application.
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

2 

Plan-year-by-plan-year projection of the available resources: 

Note: The administrative expenses shown above include any regular Plan expenses and PBGC loans. Currently, the Plan does not have any 

PBGC loans. 

Revenue Procedure 2016-27, Section 3.03: The Plan is Projected to Become Insolvent Without the Proposed Benefit Suspensions

Assumed Investment Return See Assumptions Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension N/A Active Participants N/A

Expiration of Proposed Benefit Suspension N/A Non-active Participants N/A

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (291,420,565) (9,853,710) 125,791,719 1,159,829,701 3,379,676,363 35.58% 1,451,250,266 4.980

1 12/31/2018 1,159,829,701 126,858,857 9,570,693 (293,984,045) (7,136,955) 79,087,324 1,074,225,576 3,377,380,821 34.34% 1,368,209,621 4.654

2 12/31/2019 1,074,225,576 130,719,066 9,497,851 (297,341,590) (7,235,993) 72,220,894 982,085,804 3,372,145,576 31.86% 1,279,427,394 4.303

3 12/31/2020 982,085,804 134,556,012 9,497,851 (300,737,303) (6,815,865) 64,914,237 883,500,736 3,362,666,480 29.21% 1,184,238,039 3.938

4 12/31/2021 883,500,736 138,158,433 9,497,851 (304,536,039) (6,918,030) 57,234,372 776,937,323 3,348,299,941 26.39% 1,081,473,362 3.551

5 12/31/2022 776,937,323 141,466,836 9,497,851 (307,935,484) (7,022,280) 49,062,819 662,007,065 3,328,177,691 23.34% 969,942,549 3.150

6 12/31/2023 662,007,065 144,824,740 9,497,851 (310,740,783) (7,127,573) 40,442,323 538,903,624 3,302,225,507 20.05% 849,644,407 2.734

7 12/31/2024 538,903,624 148,376,864 9,497,851 (313,338,067) (7,234,950) 31,571,259 407,776,581 3,270,633,548 16.48% 721,114,648 2.301

8 12/31/2025 407,776,581 152,024,878 9,497,851 (315,477,947) (7,343,370) 22,408,219 268,886,212 3,233,176,713 12.61% 584,364,159 1.852

9 12/31/2026 268,886,212 155,773,714 9,497,851 (316,912,723) (7,453,875) 12,912,899 122,704,078 3,189,806,015 8.43% 439,616,801 1.387

1 0 12/31/2027 122,704,078 159,643,163 9,497,851 (317,712,889) (7,565,423) 3,468,173 INSOLVENT 3,140,843,459 3.91% 287,747,842 0.906

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

3 

Projection of benefit payments, separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, currently 

active participants, and future new entrants: 

Revenue Procedure 2016-27, Section 3.03: Projected Benefit Payments Separated by Status

Projected Benefit Payments by Status

Plan Year Total Retirees Terminated Future New

Ending Benefit Payments & Beneficiaries Vested Active Entrants

CY 12/31/2017 291,420,565 271,784,529 5,555,633 14,080,403 -

1 12/31/2018 293,984,045 265,807,138 7,410,909 20,765,998 -

2 12/31/2019 297,341,590 259,642,189 9,351,570 28,347,831 -

3 12/31/2020 300,737,303 253,300,448 11,449,487 35,987,368 -

4 12/31/2021 304,536,039 246,762,974 13,519,676 44,253,389 -

5 12/31/2022 307,935,484 240,028,304 15,582,186 52,324,994 -

6 12/31/2023 310,740,783 233,079,563 17,922,216 59,739,004 -

7 12/31/2024 313,338,067 225,881,995 20,155,383 67,300,689 -

8 12/31/2025 315,477,947 218,456,479 22,095,999 74,925,469 -

9 12/31/2026 316,912,723 210,870,244 24,070,136 81,972,343 -

1 0 12/31/2027 317,712,889 203,078,893 25,951,209 88,682,787 -

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

4 

Assumptions: 

The assumptions used in the actuarial projection above are the same as those used in the actuarial 

projection required under Section 3.02 of Revenue Procedure 2016-27. Please refer to the actuarial 

projection under Section 3.02 of Revenue Procedure 2016-27 for more information regarding the 

assumptions. 
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 6














DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 7
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 4.02 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

This report provides the information required by Section 4.02 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 4.02 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 4.02 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of 

the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 4.02: 

Demonstration that Proposed Suspension Satisfies the Statutory Requirements

Summary 1

Deterministic projection 2

Stochastic projection 4

Assumptions for deterministic projection 5

Assumptions for stochastic projection 7

Comparison of deterministic and stochastic assumptions 11

Appendix A: New Entrant Profile 12

Appendix B: Investment Return Assumption 19
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

1 

Demonstration that the proposed suspension is reasonably estimated to enable the plan to avoid insolvency 

Under Section 4.02 of Revenue Procedure 2016-27, the application must include a demonstration that, in 

accordance with Section 432(e)(9)(D)(iv) of the Code, the proposed benefit suspension is reasonably 

estimated to enable the plan to avoid insolvency. This must include: 

1. A deterministic projection 

2. A stochastic projection 

3. A description of the assumptions used 

On the following pages, we have included:

 A deterministic projection

 A stochastic projection

 A description of the assumptions used
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

2 

Deterministic Projection: 

Under Section 4.02(1) of Revenue Procedure 2016-27, the deterministic projection must show the 

following: 

1. For each plan year during the extended period, the Plan’s solvency ratio (the ratio of the Plan’s 

available resources to the scheduled benefits payable under the plan for the plan year) is projected 

on a deterministic basis to be at least 1.0. 

2. If the Plan’s funded percentage at the end of the extended projection period is less than or equal to 

100 percent, then neither the Plan’s solvency ratio nor its available resources are projected to 

decrease in any of the last five plan years of the extended period. 

On the following pages, we have included:

 A plan-year-by-plan-year deterministic projection of the available resources as defined in Section 

418E(b)(3) of the Code and the scheduled benefit payments under the plan. 

Note the following:

 For each plan year during the extended period, the Plan’s solvency ratio is projected on a 

deterministic basis to be at least 1.0.

 The Plan’s funded percentage at the end of the extended projection period is less than or equal 

to 100 percent, but neither the Plan’s solvency ratio nor its available resources are projected to 

decrease in any of the last five plan years of the extended period.
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed Suspension Satisfies the 

Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

3 

Plan-year-by-plan-year projection of the available resources: 

Revenue Procedure 2016-27, Section 4.02(1): The Proposed Suspensions is Reasonably Estimated to Enable the Plan to Avoid Insolvency - Deterministic Projection

Assumed Investment Return See Assumptions Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (277,763,262) (9,853,710) 126,559,806 1,174,255,091 3,377,856,996 35.60% 1,452,018,353 5.228

1 12/31/2018 1,174,255,091 126,858,857 9,570,693 (238,476,009) (7,136,955) 82,183,292 1,147,254,970 2,703,299,799 43.44% 1,385,730,979 5.811

2 12/31/2019 1,147,254,970 130,719,066 9,497,851 (240,778,124) (7,235,993) 79,596,344 1,119,054,114 2,698,844,694 42.51% 1,359,832,238 5.648

3 12/31/2020 1,119,054,114 134,556,012 9,497,851 (243,018,522) (6,815,865) 76,870,414 1,090,144,004 2,691,317,129 41.58% 1,333,162,526 5.486

4 12/31/2021 1,090,144,004 138,158,433 9,497,851 (245,695,501) (6,918,030) 74,089,308 1,059,276,065 2,680,277,630 40.67% 1,304,971,566 5.311

5 12/31/2022 1,059,276,065 141,466,836 9,497,851 (248,108,546) (7,022,280) 71,107,825 1,026,217,751 2,664,941,044 39.75% 1,274,326,297 5.136

6 12/31/2023 1,026,217,751 144,824,740 9,497,851 (250,027,980) (7,127,573) 67,943,649 991,328,438 2,645,214,522 38.80% 1,241,356,418 4.965

7 12/31/2024 991,328,438 148,376,864 9,497,851 (251,773,895) (7,234,950) 64,912,535 955,106,843 2,621,306,056 37.82% 1,206,880,738 4.794

8 12/31/2025 955,106,843 152,024,878 9,497,851 (253,199,347) (7,343,370) 62,033,384 918,120,239 2,593,078,198 36.83% 1,171,319,586 4.626

9 12/31/2026 918,120,239 155,773,714 9,497,851 (254,130,690) (7,453,875) 59,331,527 881,138,766 2,560,470,317 35.86% 1,135,269,456 4.467

1 0 12/31/2027 881,138,766 159,643,163 9,497,851 (254,532,541) (7,565,423) 64,853,105 853,034,922 2,523,714,058 34.91% 1,107,567,463 4.351

1 1 12/31/2028 853,034,922 163,658,474 9,497,851 (254,235,952) (7,679,055) 62,670,808 826,947,048 2,483,145,363 34.35% 1,081,183,000 4.253

1 2 12/31/2029 826,947,048 167,800,651 9,475,797 (253,593,205) (7,793,730) 60,750,626 803,587,186 2,439,295,706 33.90% 1,057,180,391 4.169

1 3 12/31/2030 803,587,186 169,935,486 9,425,111 (252,178,782) (7,910,490) 58,920,804 781,779,315 2,392,319,068 33.59% 1,033,958,097 4.100

1 4 12/31/2031 781,779,315 169,217,536 9,251,903 (250,391,848) (8,029,335) 57,193,045 759,020,616 2,342,675,900 33.37% 1,009,412,464 4.031

1 5 12/31/2032 759,020,616 168,551,422 8,949,319 (247,996,289) (8,150,265) 55,488,693 735,863,497 2,290,581,383 33.14% 983,859,786 3.967

1 6 12/31/2033 735,863,497 167,880,805 8,949,319 (244,999,925) (8,272,238) 53,718,471 713,139,930 2,236,464,996 32.90% 958,139,855 3.911

1 7 12/31/2034 713,139,930 167,210,785 4,474,660 (241,243,093) (8,396,295) 51,843,131 687,029,117 2,180,831,654 32.70% 928,272,210 3.848

1 8 12/31/2035 687,029,117 166,608,308 (237,276,718) - (8,522,438) 49,787,651 657,625,921 2,124,424,642 32.34% 894,902,639 3.772

1 9 12/31/2036 657,625,921 166,038,848 (232,642,855) - (8,650,665) 47,615,891 629,987,140 2,067,403,470 31.81% 862,629,995 3.708

2 0 12/31/2037 629,987,140 165,458,003 (227,705,033) - (8,779,935) 45,655,577 604,615,752 2,010,460,517 31.34% 832,320,785 3.655

2 1 12/31/2038 604,615,752 164,915,115 (222,411,062) - (8,911,290) 43,884,452 582,092,967 1,953,931,653 30.94% 804,504,029 3.617

2 2 12/31/2039 582,092,967 164,399,566 (216,851,657) - (9,044,730) 42,288,127 562,884,273 1,898,242,251 30.66% 779,735,930 3.596

2 3 12/31/2040 562,884,273 163,847,735 (211,138,625) - (9,180,255) 41,007,555 547,420,683 1,843,771,092 30.53% 758,559,308 3.593

2 4 12/31/2041 547,420,683 163,284,176 (204,924,912) - (9,317,865) 40,032,904 536,494,986 1,790,779,463 30.57% 741,419,898 3.618

2 5 12/31/2042 536,494,986 162,741,778 (199,132,387) - (9,457,560) 39,390,888 530,037,705 1,739,952,711 30.83% 729,170,092 3.662

2 6 12/31/2043 530,037,705 162,254,844 (193,187,019) - (9,599,340) 39,099,508 528,605,698 1,691,038,066 31.34% 721,792,717 3.736

2 7 12/31/2044 528,605,698 161,762,831 (187,000,395) - (9,743,205) 39,151,433 532,776,362 1,644,388,138 32.15% 719,776,757 3.849

2 8 12/31/2045 532,776,362 161,273,104 (181,074,898) - (9,889,155) 39,673,506 542,758,919 1,600,455,726 33.29% 723,833,817 3.997

2 9 12/31/2046 542,758,919 160,805,268 (175,128,534) - (10,037,190) 40,642,328 559,040,791 1,559,217,116 34.81% 734,169,325 4.192

3 0 12/31/2047 559,040,791 160,359,940 (169,907,897) - (10,187,310) 42,066,664 581,372,188 1,520,943,165 36.76% 751,280,085 4.422

3 1 12/31/2048 581,372,188 159,894,304 (164,783,745) - (10,340,558) 43,949,801 610,091,990 1,485,019,347 39.15% 774,875,735 4.702

3 2 12/31/2049 610,091,990 159,415,154 (159,850,219) - (10,495,890) 46,314,391 645,475,426 1,451,482,700 42.03% 805,325,645 5.038

"CY" = current plan year
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

4 

Stochastic Projection: 

Under Section 4.02(2) of Revenue Procedure 2016-27, the stochastic projection, which reflects variance in 

investment returns, must show that the probability that the Plan is projected to avoid insolvency 

throughout the extended period as a result of the suspension is greater than 50 percent. 

In the following exhibits, we have included a stochastic projection with 5,000 simulations of investment 

returns over the extended period. The results of the stochastic projection show that the probability of 

avoiding insolvency throughout the extended period is greater than 50 percent.

Stochastic Illustration: 

The stochastic projection below is based on the assumptions described in Appendix B of this report. 

The probability of avoiding insolvency throughout the extended period is greater than 50% (52%). 

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2017

38%

38%

38%

38%

38%

38%

0%

100%

2019

50%

44%

42%

40%

29%

42%

4%

100%

2021

61%

46%

40%

35%

20%

40%

9%

100%

2023

76%

48%

38%

29%

11%

39%

14%

100%

2025

91%

49%

36%

24%

3%

38%

19%

99%

2027

109%

50%

33%

19%

0%

37%

24%

97%

2029

130%

52%

31%

15%

0%

37%

30%

92%

2031

158%

56%

29%

9%

0%

38%

37%

85%

2033

198%

61%

28%

3%

0%

41%

45%

78%

2035

252%

67%

26%

0%

0%

44%

55%

72%

2037

307%

74%

24%

0%

0%

49%

68%

66%

2039

380%

83%

20%

0%

0%

56%

83%

61%

2041

467%

96%

18%

0%

0%

65%

102%

57%

2043

580%

112%

15%

0%

0%

77%

126%

55%

2045

702%

131%

14%

0%

0%

92%

157%

53%

2047

892%

155%

12%

0%

0%

112%

195%

53%

2049

1098%

186%

12%

0%

0%

136%

240%

52% Probability Funded Percentage

Funded Percentage

Prob > 0% 1st - 25th percentile 25th - 50th percentile 50th - 75th percentile 75th - 99th percentile

Revenue Procedure 2016-27 Calculations

As of 1/1

99th %

75th %

50th %

25th %

1st %

Mean

Std Dev

Prob > 0%

Revenue Procedure 2016-27 Calculations
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

5 

Description of the assumptions used (4.02(3)(a)): 

Under Section 4.02(3)(a) of Revenue Procedure 2016-27, if the actuarial assumptions used for the 

deterministic projection differ from those used under Section 3.01 of Revenue Procedure 2016-27, the 

application must include an explanation of the information and analysis that led to the differences. 

The projection used under Section 4.02(1) of Revenue Procedure 2016-27 is generally based on the same 

actuarial assumptions that are included in the projection used under Section 3.01 of Revenue Procedure 

2016-27 with some exceptions.

Any changes in the assumptions, along with an explanation for the change, are described in the actuarial 

projection under the information required by Section 3.02 of Revenue Procedure 2016-27. For reference, 

those changes are repeated below.

Assumptions: 

Generally, the assumptions used in the actuarial projection above are the same as those used in the actuarial 

projection required under Section 3.01 of Revenue Procedure 2016-27. Please refer to the actuarial projection 

under Section 3.01 of Revenue Procedure 2016-27 for more information regarding the assumptions. Where 

assumptions differ from those described under Section 3.01 of Revenue Procedure 2016-27, additional 

commentary is provided below. 

 Non-Disabled Mortality: For projections for purposes of the certification of status (as described under 

Section 3.01 of Revenue Procedure 2016-27), the assumption was the RP-2014 Mortality Tables for 

males and females, with Blue Collar adjustment, rates increased by 15%, and future improvement 

projected generationally based on 50% of the MP-2015 Mortality Improvement Scale. For purposes of 

projections of the proposed suspension of benefits, the assumption was updated to the RP-2014 

Mortality Tables for males and females, with Blue Collar adjustment, and future improvement 

projected generationally based on 100% of the MP-2016 Mortality Improvement Scale. The updated 

assumption represents anticipated future experience for the Plan, and it was developed based on a 

review of the Plan’s amount-weighted mortality experience with respect to the standard mortality 

tables and improvement scales published by the Society of Actuaries. 

 Disabled Mortality: For projections for purposes of the certification of status (as described under 

Section 3.01 of Revenue Procedure 2016-27), the assumption was the RP-2014 Disabled Mortality 

Tables for males and females, rates increased by 15%, and future improvement projected 

generationally based on 50% of the MP-2015 Mortality Improvement Scale. For purposes of 

projections of the proposed suspension of benefits, the assumption was updated to the RP-2014 

Disabled Mortality Tables for males and females, with future improvement projected generationally 

based on 100% of the MP-2016 Mortality Improvement Scale. The updated assumption represents 

anticipated future experience for the Plan, and it was developed based on a review of the standard 

mortality tables and improvement scales published by the Society of Actuaries. 
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

6 

 Contribution Base Units and Contribution Rates (No changes from information provided under Section 

3.01 of Revenue Procedure 2016-27): There are significant differences in the contribution base units 

and contribution rates under each schedule of the Rehabilitation Plan. The table below shows the 

active participant count, average contribution base units and average contribution rate under each 

schedule of the Rehabilitation Plan. This information is based on census data as of January 1, 2016. 

Note that because of the active population scenario described in the actuarial projection under Section 

3.01 of Revenue Procedure 2016-27, results are shown separately for UPS, ABF and YRC. 

For each active participant in the valuation, hours are assumed to be the average of a participant’s 

actual hours worked in the three plan years preceding the valuation date. Contributions made on 

behalf of each participant are assumed to be equal to the assumed hours worked multiplied by a 

participant’s contribution rate.

Note that the participant count in the Default Schedule shown above includes approximately 1,600 

active participants who are employed by a withdrawn employer but have yet to incur a three-year 

break in service. We assume no future contributions on hours worked for these participants. After 

making this adjustment, the total assumed contribution base units is approximately 14.7 million hours. 

 Form of Payment: 100% of single participants and 16% of married participants are assumed to elect the 

single life annuity. 84% of married participants are assumed to elect the 50% J&S annuity. This 

assumption is based on a historical review of benefit elections under the Plan. 

 Retirement for Terminated Vested Participants: Terminated Vested participants are assumed to retire 

at the later of age 62 or current age if a participant has 15 years of service. If a terminated vested 

participant has less than 15 years of service, he or she is assumed to retire at the later of age 65 or 

current age. 

 Terminated Vested Participants Over Age 72: Terminated vested participants over age 72 are included 

in the projection. 

Revenue Procedure 2016-27, Section 4.02: Active Participants, Base Units and Contribution Rates

Rehabilitation Participants Average Average Contribution

Plan Schedule as of 1/1/2016 Hours per Participant Rate per Participant

Default 4,271 1,021 4.0614

A 2 1 1,665 3.8210

B 532 1,248 6.8826

B (UPS) 2,216 1,034 11.4038

C 519 1,734 4.1211

D 9 8 1,648 4.0850

E 1,422 1,733 3.7458

E (UPS & ABF) 1,917 1,954 14.6148

G (YRC) 580 1,799 2.3361
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

7 

 Investment Return: The investment return is assumed to be as follows: 

Please see Appendix B for additional information regarding the investment return assumption. 

Description of the assumptions used (4.02(3)(b)): 

Under Section 4.02(3)(b) of Revenue Procedure 2016-27, the application should include the following 

information regarding the stochastic projection: 

 The assumed mix of assets (and how it compares with the current mix of assets) 

 The distribution of returns for each asset class 

 The correlation among those rates of returns 

 Any other economic variables used in the projections 

On the following pages, we have included:

 A distribution of the expected returns and standard deviations for each asset class as provided by 

Meketa Investment Group (“Meketa”). 

 The correlation among the rates of return as provided by Meketa

 A distribution of the expected returns and standard deviations for each asset class as published 

in the Horizon Actuarial 2016 Survey of Capital Market Assumptions (“2016 Survey”). 

 The correlation among the rates of return as published in the 2016 Survey.

 The assumed mix of assets and the current mix of assets 

Assumed Annual Investment Return

Assumed Assumed Assumed 

Plan Year Investment Plan Year Investment Plan Year Investment 

Ending Return Ending Return Ending Return

CY 12/31/2017 7.37% 1 5 12/31/2032 7.71% 3 0 12/31/2047 7.66%

1 12/31/2018 7.34% 1 6 12/31/2033 7.70% 3 1 12/31/2048 7.66%

2 12/31/2019 7.28% 1 7 12/31/2034 7.69% 3 2 12/31/2049 7.66%

3 12/31/2020 7.21% 1 8 12/31/2035 7.69%

4 12/31/2021 7.14% 1 9 12/31/2036 7.68%

5 12/31/2022 7.06% 2 0 12/31/2037 7.68%

6 12/31/2023 6.97% 2 1 12/31/2038 7.68%

7 12/31/2024 6.90% 2 2 12/31/2039 7.67%

8 12/31/2025 6.85% 2 3 12/31/2040 7.67%

9 12/31/2026 6.82% 2 4 12/31/2041 7.67%

1 0 12/31/2027 7.77% 2 5 12/31/2042 7.67%

1 1 12/31/2028 7.75% 2 6 12/31/2043 7.67%

1 2 12/31/2029 7.74% 2 7 12/31/2044 7.66%

1 3 12/31/2030 7.72% 2 8 12/31/2045 7.66%

1 4 12/31/2031 7.71% 2 9 12/31/2046 7.66%

"CY" = current plan year
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

8 

Expected Returns and Standard Deviations for Each Asset Class as Provided by Meketa: 

2016 2016

Asset Class Expected Return Standard Deviation

Cash Equivalents 2.3% 1.0%

Short-term Investment Grade Bonds 2.9% 2.0%

Investment Grade Bonds 3.7% 4.5%

Investment Grade Corporate Bonds 4.6% 7.0%

Long-term Corporate Bonds 5.7% 11.0%

Long-term Government Bonds 4.4% 12.5%

TIPS 3.6% 7.5%

Short-term TIPS 2.9% 4.0%

Long-term TIPS 4.6% 12.0%

Global ILBs 4.1% 10.0%

High Yield Bonds 7.6% 12.5%

Bank Loans 6.2% 10.0%

Foreign Bonds 3.0% 9.0%

Emerging Market Bonds (major) 6.7% 13.0%

Emerging Market Bonds (local) 7.3% 14.0%

Convertible Bonds 6.5% 15.0%

Investment Grade RE Debt 4.2% 9.0%

Portable Alpha (Core Bond) 7.4% 13.0%

US Equity 9.5% 18.0%

US Large Cap 9.5% 17.5%

US Mid Cap 9.8% 20.0%

US Small Cap 10.1% 22.0%

US Micro Cap 10.2% 23.0%

Developed Market Equity (non-US) 10.1% 20.0%

Developed Market Small Cap 9.4% 22.0%

Emerging Market Equity 14.0% 26.5%

Emerging Market Small Cap 13.8% 28.5%

Frontier Market Equity 12.6% 25.0%

Global Equity 10.1% 19.5%

Private Equity 12.3% 24.0%

Buyouts 12.9% 25.0%

Venture Capital 15.6% 35.0%

Mezzanine Debt 8.9% 20.0%

Distressed Debt 11.4% 27.0%

Private Equity Fund of Funds 11.0% 24.0%

Portable Alpha (US Equity) 14.6% 27.5%

Real Estate 8.7% 18.0%

REITs 10.8% 29.0%

Core Private Real Estate 6.7% 12.5%

Value-Added Real Estate 9.5% 20.0%

Opportunistic Real Estate 12.4% 25.0%

High Yield Real Estate Debt 9.6% 23.0%

Natural Resources (Public) 10.7% 24.0%

Natural Resources (Private) 10.9% 22.0%

Timberland 7.5% 12.0%

Farmland 8.5% 13.0%

Oil & Gas E&P 12.6% 27.0%

Mining 13.0% 29.0%

Commodities: naïve 6.3% 21.0%

Commodities: term-structure NA NA

Commodities: trend-following NA NA

Commodities: risk parity (15% vol) 6.3% 16.0%

Commodities: Real Return 7.8% 25.0%

MLPs 10.7% 24.0%

Infrastructure (Public) 9.7% 19.5%

Infrastructure (Core Private) 8.0% 16.0%

Infrastructure (Non-Core Private) 11.7% 23.0%

Hedge Funds 6.2% 10.5%

Long-Short 5.4% 12.0%

Event-Driven 7.1% 11.0%

Global Macro 6.2% 8.5%

Fixed Income/L-S Credit 5.3% 10.0%

Relative Value/Arbitrage 6.7% 10.5%

Hedge Fund of Funds 4.6% 10.0%

Risk Parity (10% vol) 6.5% 11.0%

Tactical Asset Allocation 5.8% 12.5%
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

9 

Correlation Among Rates of Return as Provided by Meketa: 

Expected Returns and Standard Deviations for Each Asset Class as Published in the 2016 Survey: 

Asset Name

Investment 

Grade Bonds TIPS

High Yield 

Bonds

Bank 

Loans

Emerging 

Market Bonds 

(local)

US 

Equity

Developed 

Market Equity 

(non-US)

Emerging 

Market 

Equity

Private 

Equity REITs

ValueAdded 

Real 

Estate

Opportunistic 

Real Estate

Natural 

Resources 

(Private)

Core 

Infrastructure

Non-Core 

Infrastructure

Investment Grade Bonds 1.00 0.80 0.20 0.00 0.35 0.05 0.05 0.05 0.05 0.15 0.20 0.15 0.10 0.30 0.30

TIPS 0.80 1.00 0.30 0.20 0.40 0.00 0.15 0.15 0.05 0.20 0.10 0.05 0.10 0.30 0.30

High Yield Bonds 0.20 0.30 1.00 0.80 0.65 0.70 0.70 0.70 0.65 0.70 0.50 0.55 0.45 0.60 0.65

Bank Loans 0.00 0.20 0.80 1.00 0.40 0.60 0.60 0.55 0.65 0.55 0.45 0.50 0.40 0.50 0.50

Emerging Market Bonds (local) 0.35 0.40 0.65 0.40 1.00 0.65 0.75 0.80 0.55 0.60 0.25 0.35 0.60 0.60 0.65

US Equity 0.05 0.00 0.70 0.60 0.65 1.00 0.90 0.80 0.85 0.70 0.50 0.60 0.65 0.55 0.65

Developed Market Equity (non-US) 0.05 0.15 0.70 0.60 0.75 0.90 1.00 0.90 0.80 0.70 0.45 0.55 0.60 0.55 0.70

Emerging Market Equity 0.05 0.15 0.70 0.55 0.80 0.80 0.90 1.00 0.75 0.60 0.40 0.50 0.60 0.50 0.60

Private Equity 0.05 0.05 0.65 0.65 0.55 0.85 0.80 0.75 1.00 0.45 0.45 0.50 0.55 0.45 0.65

REITs 0.15 0.20 0.70 0.55 0.60 0.70 0.70 0.60 0.45 1.00 0.80 0.70 0.35 0.45 0.45

Value-Added Real Estate 0.20 0.10 0.50 0.45 0.25 0.50 0.45 0.40 0.45 0.80 1.00 0.90 0.50 0.55 0.60

Opportunistic Real Estate 0.15 0.05 0.55 0.50 0.35 0.60 0.55 0.50 0.50 0.70 0.90 1.00 0.50 0.50 0.60

Natural Resources (Private) 0.10 0.10 0.45 0.40 0.60 0.65 0.60 0.60 0.55 0.35 0.50 0.50 1.00 0.60 0.65

Core Infrastructure 0.30 0.30 0.60 0.50 0.60 0.55 0.55 0.50 0.45 0.45 0.55 0.50 0.60 1.00 0.95

Non-Core Infrastructure 0.30 0.30 0.65 0.50 0.65 0.65 0.70 0.60 0.65 0.45 0.60 0.60 0.65 0.95 1.00

Expected Returns

10-Year Horizon 20-Year Horizon Standard

Asset Class Arith. Geom. Arith. Geom. Deviation

 1 US Equity - Large Cap 7.98% 6.64% 9.25% 7.89% 16.92%

 2 US Equity - Small/Mid Cap 9.07% 7.00% 10.40% 8.23% 21.01%

 3 Non-US Equity - Developed 8.90% 7.12% 9.77% 8.02% 19.50%

 4 Non-US Equity - Emerging 11.68% 8.48% 12.46% 9.11% 26.35%

 5 US Corporate Bonds - Core 3.59% 3.41% 4.75% 4.58% 5.96%

 6 US Corporate Bonds - Long Duration 4.37% 3.82% 5.58% 4.87% 10.49%

 7 US Corporate Bonds - High Yield 6.49% 5.90% 7.40% 6.81% 11.01%

 8 Non-US Debt - Developed 2.74% 2.43% 4.01% 3.70% 7.58%

 9 Non-US Debt - Emerging 6.42% 5.77% 7.20% 6.43% 11.58%

 US Treasuries (Cash Equivalents) 2.22% 2.14% 3.18% 3.15% 2.79% 10

 TIPS (Inflation-Protected) 11 3.03% 2.80% 4.27% 3.94% 6.51%

 Real Estate 12 7.48% 6.36% 7.75% 6.75% 14.74%

 Hedge Funds 13 5.77% 5.41% 6.59% 6.16% 8.39%

 Commodities 14 5.62% 3.98% 6.47% 4.84% 18.50%

 Infrastructure 15 7.52% 6.59% 8.26% 7.12% 13.78%

 Private Equity 16 11.77% 9.22% 12.94% 10.33% 23.12%

Inflation 2.16% 2.16% 2.31% 2.31% 1.78%
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

10

Correlation Among Rates of Return as Published in the 2016 Survey: 

The assumed mix of assets and the current mix of assets: 

Please see Appendix B of this report for additional information regarding the assumed mix of assets used in the 

projections. 

Correlation Matrix

Asset Class 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

 1 US Equity - Large Cap 1.00

 2 US Equity - Small/Mid Cap 0.90 1.00

 3 Non-US Equity - Developed 0.82 0.76 1.00

 4 Non-US Equity - Emerging 0.73 0.72 0.79 1.00

 5 US Corporate Bonds - Core 0.15 0.11 0.15 0.10 1.00

 6 US Corporate Bonds - Long Duration 0.13 0.09 0.14 0.11 0.91 1.00

 7 US Corporate Bonds - High Yield 0.64 0.64 0.62 0.64 0.36 0.35 1.00

 8 Non-US Debt - Developed 0.11 0.06 0.30 0.17 0.57 0.53 0.21 1.00

 9 Non-US Debt - Emerging 0.55 0.51 0.59 0.66 0.44 0.38 0.63 0.40 1.00

 US Treasuries (Cash Equivalents) 10 (0.08) (0.10) (0.06) (0.06) 0.30 0.22 (0.04) 0.23 0.10 1.00

 TIPS (Inflation-Protected) 11 0.02 0.01 0.08 0.13 0.68 0.63 0.27 0.51 0.40 0.29 1.00

 Real Estate 12 0.38 0.38 0.36 0.31 0.07 0.11 0.31 0.06 0.25 0.04 0.13 1.00

 Hedge Funds 13 0.62 0.62 0.65 0.64 0.14 0.10 0.54 0.11 0.48 (0.01) 0.11 0.27 1.00

 Commodities 14 0.30 0.30 0.40 0.44 0.07 0.03 0.32 0.20 0.36 0.02 0.26 0.22 0.43 1.00

 Infrastructure 15 0.53 0.51 0.56 0.50 0.23 0.21 0.48 0.23 0.37 0.02 0.16 0.27 0.46 0.32 1.00

 Private Equity 16 0.77 0.76 0.72 0.64 0.02 0.05 0.54 0.06 0.46 (0.05) (0.04) 0.39 0.60 0.29 0.43 1.00

Inflation

Asset Allocations Current Target Policy Range

US Equity - Large Cap 7.5% 12.0%

US Equity - Small/Mid Cap 5.6% 6.0%

Non-US Equity - Developed 8.6% 8.0% 3% - 13%

Non-US Equity - Emerging 15.6% 16.0% 11% - 21%

US Corporate Bonds - Core 7.0% 7.0% 2% - 12%

US Corporate Bonds - High Yield 3.7% 2.0% 0% - 7%

Non-US Debt - Emerging 7.4% 8.0% 3% - 13%

US Treasuries (Cash Equivalents) 0.4% 2.0% 0% - 7%

TIPS (Inflation-Protected) 3.6% 5.0% 0% - 10%

Real Estate 5.5% 7.0% 2% - 12%

Hedge Funds 0.1% - 0% - 5%

Commodities 7.3% 7.0% 2% - 12%

Infrastructure 8.1% 5.0% 0% - 10%

Private Equity 19.6% 15.0% 5% - 25%

TOTAL PORTFOLIO 100.0% 100.0%

13% - 23% }
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

11

Description of the assumptions used (4.02(3)(c)): 

Under Section 4.02(3)(c) of Revenue Procedure 2016-27, if the actuarial assumptions used for the 

stochastic projections described in Section 4.02(2) of Revenue Procedure 2016-27 differ from those used 

for the deterministic projection described in Section 4.02(1) of Revenue Procedure 2016-27, the application 

should include justification for the difference. 

There is no difference in the assumptions used for the deterministic projection and the stochastic 

projection.
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

12

New Entrant Profile 

The new entrant profile used in the projections consists of a separate new entrant profile for each 

schedule of the Rehabilitation Plan. In addition, because of the industry activity assumption 

recommended by the Board of Trustees, there is a separate new entrant profile for UPS participants in 

Schedule B, UPS and ABF participants in Schedule E, and YRC participants in Schedule G. This is 

necessary because of the different characteristics of participants in each schedule. All new entrants are 

assumed to be male and are assumed to enter the Plan with 0.50 years of service. 

The new entrant profile is developed to, as accurately as possible, estimate the impact of future new 

entrants on the Plan’s expected contributions, benefit payments and liabilities. 

The age of new entrants is based on a historical analysis of new entrants to the Plan over the seven year 

period ending on December 31, 2015. The distribution of new entrants by age is as follows: 

For each schedule or subset of a schedule, a distribution of the contribution rate that counts for benefit 

accruals and the total contribution is created. Based on this distribution and the age distribution of new 

entrants, the following new entrant profiles are created. Note that participants employed by employers 

that have withdrawn but have not yet incurred a complete break in service are not included in this 

analysis. 

Revenue Procedure 2016-27, Section 3.02: Historical New Entrants

Age New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants Total % of 

Band in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 New Entrants Total

< 25 179 131 140 150 137 232 187 1,156 19%

25 - 30 6 8 7 5 107 117 131 138 171 807 13%

30 - 35 231 286 562 479 313 292 245 2,408 40%

35 - 40 4 1 4 6 4 8 4 5 5 9 7 6 9 9 414 7 %

40 - 45 4 2 4 8 6 5 5 9 4 9 6 7 6 4 394 7 %

45 - 50 4 0 4 0 4 1 4 7 4 2 7 2 6 7 349 6 %

50 - 55 3 6 2 5 4 0 3 5 4 0 4 9 4 7 272 5 %

55 - 60 1 3 1 9 2 5 2 3 2 2 3 3 2 7 162 3 %

> 60 3 6 9 6 6 9 1 4 5 3 1 %

Total 653 676 1,037 961 799 968 921 6,015
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

13

New Entrant Profile for Default Schedule: 

Revenue Procedure 2016-27, Section 3.02: Default Schedule New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 4 0.9778 1,222 1.2125 1,516

2 2 1,250 8 2.2818 2,852 2.8635 3,579

2 2 1,250 3 3.8529 4,816 4.7442 5,930

2 2 1,250 1 5.9065 7,383 7.3358 9,170

2 2 1,250 3 8.4518 10,565 10.3118 12,890

2 2 1,250 1 9.6476 12,060 13.1562 16,445

2 7 1,250 3 0.9778 1,222 1.2125 1,516

2 7 1,250 5 2.2818 2,852 2.8635 3,579

2 7 1,250 2 3.8529 4,816 4.7442 5,930

2 7 1,250 2 8.4518 10,565 10.3118 12,890

3 2 1,250 9 0.9778 1,222 1.2125 1,516

3 2 1,250 1 6 2.2818 2,852 2.8635 3,579

3 2 1,250 6 3.8529 4,816 4.7442 5,930

3 2 1,250 1 5.9065 7,383 7.3358 9,170

3 2 1,250 1 7.7506 9,688 9.1720 11,465

3 2 1,250 6 8.4518 10,565 10.3118 12,890

3 2 1,250 1 9.6476 12,060 13.1562 16,445

3 7 1,250 2 0.9778 1,222 1.2125 1,516

3 7 1,250 3 2.2818 2,852 2.8635 3,579

3 7 1,250 1 3.8529 4,816 4.7442 5,930

3 7 1,250 1 8.4518 10,565 10.3118 12,890

4 2 1,250 2 0.9778 1,222 1.2125 1,516

4 2 1,250 3 2.2818 2,852 2.8635 3,579

4 2 1,250 1 3.8529 4,816 4.7442 5,930

4 2 1,250 1 8.4518 10,565 10.3118 12,890

4 7 1,250 1 0.9778 1,222 1.2125 1,516

4 7 1,250 2 2.2818 2,852 2.8635 3,579

4 7 1,250 1 3.8529 4,816 4.7442 5,930

4 7 1,250 1 8.4518 10,565 10.3118 12,890

5 2 1,250 2 0.9778 1,222 1.2125 1,516

5 2 1,250 3 2.2818 2,852 2.8635 3,579

5 2 1,250 1 3.8529 4,816 4.7442 5,930

5 2 1,250 1 8.4518 10,565 10.3118 12,890
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

14

New Entrant Profile for Schedule A: 

Revenue Procedure 2016-27, Section 3.02: Schedule A New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,665 9 2.5212 4,198 3.2641 5,435

2 2 1,665 1 0 3.4304 5,712 4.3273 7,205

2 7 1,665 6 2.5212 4,198 3.2641 5,435

2 7 1,665 7 3.4304 5,712 4.3273 7,205

3 2 1,665 1 9 2.5212 4,198 3.2641 5,435

3 2 1,665 2 1 3.4304 5,712 4.3273 7,205

3 7 1,665 3 2.5212 4,198 3.2641 5,435

3 7 1,665 4 3.4304 5,712 4.3273 7,205

4 2 1,665 3 2.5212 4,198 3.2641 5,435

4 2 1,665 3 3.4304 5,712 4.3273 7,205

4 7 1,665 3 2.5212 4,198 3.2641 5,435

4 7 1,665 3 3.4304 5,712 4.3273 7,205

5 2 1,665 4 2.5212 4,198 3.2641 5,435

5 2 1,665 4 3.4304 5,712 4.3273 7,205
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

15

New Entrant Profile for Schedule B (Not Including UPS Participants): 

New Entrant Profile for Schedule B (UPS Participants Only): 

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (Not Including UPS Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 2 0.5858 732 0.7009 876

2 2 1,250 4 2.2235 2,779 3.0555 3,819

2 2 1,250 3 3.7541 4,693 5.1287 6,411

2 2 1,250 9 8.4524 10,566 10.6814 13,352

2 7 1,250 2 0.5858 732 0.7009 876

2 7 1,250 3 2.2235 2,779 3.0555 3,819

2 7 1,250 2 3.7541 4,693 5.1287 6,411

2 7 1,250 6 8.4524 10,566 10.6814 13,352

3 2 1,250 5 0.5858 732 0.7009 876

3 2 1,250 8 2.2235 2,779 3.0555 3,819

3 2 1,250 6 3.7541 4,693 5.1287 6,411

3 2 1,250 1 4.8041 6,005 6.6833 8,354

3 2 1,250 1 8 8.4524 10,566 10.6814 13,352

3 2 1,250 10.7583 1 13,448 14.6831 18,354

3 7 1,250 1 0.5858 732 0.7009 876

3 7 1,250 1 2.2235 2,779 3.0555 3,819

3 7 1,250 1 3.7541 4,693 5.1287 6,411

3 7 1,250 3 8.4524 10,566 10.6814 13,352

4 2 1,250 1 0.5858 732 0.7009 876

4 2 1,250 1 2.2235 2,779 3.0555 3,819

4 2 1,250 1 3.7541 4,693 5.1287 6,411

4 2 1,250 3 8.4524 10,566 10.6814 13,352

4 7 1,250 1 0.5858 732 0.7009 876

4 7 1,250 1 2.2235 2,779 3.0555 3,819

4 7 1,250 1 3.7541 4,693 5.1287 6,411

4 7 1,250 3 8.4524 10,566 10.6814 13,352

5 2 1,250 1 0.5858 732 0.7009 876

5 2 1,250 2 2.2235 2,779 3.0555 3,819

5 2 1,250 1 3.7541 4,693 5.1287 6,411

5 2 1,250 4 8.4524 10,566 10.6814 13,352

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (UPS Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,035 1 9 8.4520 8,748 11.3270 11,723

2 7 1,035 1 3 8.4520 8,748 11.3270 11,723

3 2 1,035 3 9 8.4520 8,748 11.3270 11,723

3 7 1,035 7 8.4520 8,748 11.3270 11,723

4 2 1,035 6 8.4520 8,748 11.3270 11,723

4 7 1,035 6 8.4520 8,748 11.3270 11,723

5 2 1,035 8 8.4520 8,748 11.3270 11,723
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

16

New Entrant Profile for Schedule C: 

New Entrant Profile for Schedule D: 

Revenue Procedure 2016-27, Section 3.02: Schedule C New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,735 1 0 1.7189 2,982 2.3286 4,040

2 2 1,735 7 3.5953 6,238 4.7893 8,309

2 2 1,735 2 6.6416 11,523 9.4514 16,398

2 7 1,735 7 1.7189 2,982 2.3286 4,040

2 7 1,735 5 3.5953 6,238 4.7893 8,309

2 7 1,735 1 6.6416 11,523 9.4514 16,398

3 2 1,735 2 1 1.7189 2,982 2.3286 4,040

3 2 1,735 1 4 3.5953 6,238 4.7893 8,309

3 2 1,735 1 4.9375 8,567 6.8369 11,862

3 2 1,735 4 6.6416 11,523 9.4514 16,398

3 7 1,735 4 1.7189 2,982 2.3286 4,040

3 7 1,735 2 3.5953 6,238 4.7893 8,309

3 7 1,735 1 6.6416 11,523 9.4514 16,398

4 2 1,735 3 1.7189 2,982 2.3286 4,040

4 2 1,735 2 3.5953 6,238 4.7893 8,309

4 2 1,735 1 6.6416 11,523 9.4514 16,398

4 7 1,735 3 1.7189 2,982 2.3286 4,040

4 7 1,735 2 3.5953 6,238 4.7893 8,309

4 7 1,735 1 6.6416 11,523 9.4514 16,398

5 2 1,735 4 1.7189 2,982 2.3286 4,040

5 2 1,735 3 3.5953 6,238 4.7893 8,309

5 2 1,735 1 6.6416 11,523 9.4514 16,398

Revenue Procedure 2016-27, Section 3.02: Schedule D New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,650 4 1.6202 2,673 2.3035 3,801

2 2 1,650 1 5 3.1804 5,248 4.5196 7,457

2 7 1,650 2 1.6202 2,673 2.3035 3,801

2 7 1,650 1 1 3.1804 5,248 4.5196 7,457

3 2 1,650 7 1.6202 2,673 2.3035 3,801

3 2 1,650 3 2 3.1804 5,248 4.5196 7,457

3 7 1,650 1 1.6202 2,673 2.3035 3,801

3 7 1,650 6 3.1804 5,248 4.5196 7,457

4 2 1,650 1 1.6202 2,673 2.3035 3,801

4 2 1,650 5 3.1804 5,248 4.5196 7,457

4 7 1,650 1 1.6202 2,673 2.3035 3,801

4 7 1,650 5 3.1804 5,248 4.5196 7,457

5 2 1,650 1 1.6202 2,673 2.3035 3,801

5 2 1,650 7 3.1804 5,248 4.5196 7,457
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

17

New Entrant Profile for Schedule E (Not Including UPS or ABF Participants): 

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (Not Including UPS or ABF Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,765 2 0.9356 1,651 1.2346 2,179

2 2 1,765 1 1 1.6024 2,828 2.3612 4,167

2 2 1,765 3 3.3145 5,850 4.9090 8,664

2 2 1,765 1 4.6104 8,137 6.7161 11,854

2 2 1,765 1 9.1719 16,188 13.5041 23,835

2 7 1,765 2 0.9356 1,651 1.2346 2,179

2 7 1,765 8 1.6024 2,828 2.3612 4,167

2 7 1,765 2 3.3145 5,850 4.9090 8,664

2 7 1,765 1 4.6104 8,137 6.7161 11,854

2 7 1,765 1 9.1719 16,188 13.5041 23,835

3 2 1,765 5 0.9356 1,651 1.2346 2,179

3 2 1,765 2 3 1.6024 2,828 2.3612 4,167

3 2 1,765 6 3.3145 5,850 4.9090 8,664

3 2 1,765 3 4.6104 8,137 6.7161 11,854

3 2 1,765 1 7.0318 12,411 8.8851 15,682

3 2 1,765 2 9.1719 16,188 13.5041 23,835

3 7 1,765 1 0.9356 1,651 1.2346 2,179

3 7 1,765 4 1.6024 2,828 2.3612 4,167

3 7 1,765 1 3.3145 5,850 4.9090 8,664

3 7 1,765 1 4.6104 8,137 6.7161 11,854

4 2 1,765 1 0.9356 1,651 1.2346 2,179

4 2 1,765 4 1.6024 2,828 2.3612 4,167

4 2 1,765 1 3.3145 5,850 4.9090 8,664

4 7 1,765 1 0.9356 1,651 1.2346 2,179

4 7 1,765 3 1.6024 2,828 2.3612 4,167

4 7 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 0.9356 1,651 1.2346 2,179

5 2 1,765 5 1.6024 2,828 2.3612 4,167

5 2 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 4.6104 8,137 6.7161 11,854
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

18

New Entrant Profile for Schedule E (UPS and ABF Participants Only): 

New Entrant Profile for Schedule G (YRC Participants Only): 

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (UPS and ABF Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,955 1 9 9.6256 18,818 14.6148 28,572

2 7 1,955 1 3 9.6256 18,818 14.6148 28,572

3 2 1,955 4 0 9.6256 18,818 14.6148 28,572

3 7 1,955 7 9.6256 18,818 14.6148 28,572

4 2 1,955 7 9.6256 18,818 14.6148 28,572

4 7 1,955 6 9.6256 18,818 14.6148 28,572

5 2 1,955 8 9.6256 18,818 14.6148 28,572

Revenue Procedure 2016-27, Section 3.02: Schedule G New Entrant Profile (YRC Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,800 1 9 1.9987 3,598 2.2457 4,042

2 7 1,800 1 3 1.9987 3,598 2.2457 4,042

3 2 1,800 4 0 1.9987 3,598 2.2457 4,042

3 7 1,800 7 1.9987 3,598 2.2457 4,042

4 2 1,800 6 1.9987 3,598 2.2457 4,042

4 7 1,800 6 1.9987 3,598 2.2457 4,042

5 2 1,800 8 1.9987 3,598 2.2457 4,042
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

19

This appendix includes the development of the investment return assumption used in the actuarial 

projections contained in this report. Unless otherwise noted, investment return assumptions are net of 

investment fees. 

We note that the assumptions developed in this appendix are individually reasonable and, along with 

other assumptions used in the projection, represent our best estimate of future experience under the 

Plan for the purposes of this measurement, which is a cash flow projection relating to proposed benefit 

suspensions under MPRA. In addition, the assumptions were developed with input from the Plan’s 

investment consultant and in consultation with the Board of Trustees. 

Summary 

The investment return assumption is as follows: 

Note that the assumed investment return shown above for the current plan year applies for the 9-month 

period from 4/1/2017 through 12/31/2017. 

The investment return assumption was developed based on the Plan’s target asset allocation, considering 

the results of the 2016 Survey of Capital Market Assumptions by Horizon Actuarial Services, LLC (the “2016 

Survey”) and input from the Plan’s investment consultant. The assumption reflects the fact that, according 

to the average assumptions from the 2016 Survey, returns are generally expected to be lower over the next 

10 years than over the long term. 

The assumption also reflects the possibility of future changes in the Plan’s asset allocation to satisfy Plan 

liquidity needs. Based on input from the Plan’s investment consultant and in consultation with the Trustees, 

the chart below shows a process of moving from the target asset allocation to a “long-term” asset allocation 

(less volatile and more liquid) over a five-year period. The Trustees have reviewed and approved this less 

volatile and more liquid asset allocation as well as transition as an appropriate alternative asset allocation to 

be considered in the event of liquidity needs. 

Assumed Annual Investment Return

Assumed Assumed Assumed 

Plan Year Investment Plan Year Investment Plan Year Investment 

Ending Return Ending Return Ending Return

CY 12/31/2017 7.37% 1 5 12/31/2032 7.71% 3 0 12/31/2047 7.66%

1 12/31/2018 7.34% 1 6 12/31/2033 7.70% 3 1 12/31/2048 7.66%

2 12/31/2019 7.28% 1 7 12/31/2034 7.69% 3 2 12/31/2049 7.66%

3 12/31/2020 7.21% 1 8 12/31/2035 7.69%

4 12/31/2021 7.14% 1 9 12/31/2036 7.68%

5 12/31/2022 7.06% 2 0 12/31/2037 7.68%

6 12/31/2023 6.97% 2 1 12/31/2038 7.68%

7 12/31/2024 6.90% 2 2 12/31/2039 7.67%

8 12/31/2025 6.85% 2 3 12/31/2040 7.67%

9 12/31/2026 6.82% 2 4 12/31/2041 7.67%

1 0 12/31/2027 7.77% 2 5 12/31/2042 7.67%

1 1 12/31/2028 7.75% 2 6 12/31/2043 7.67%

1 2 12/31/2029 7.74% 2 7 12/31/2044 7.66%

1 3 12/31/2030 7.72% 2 8 12/31/2045 7.66%

1 4 12/31/2031 7.71% 2 9 12/31/2046 7.66%

"CY" = current plan year
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

20

For each of the asset allocations shown above, below are the results from our 2016 Survey of Capital Market 

Assumptions. 

The timing of possible future changes in the Plan’s asset allocation were analyzed on a stochastic basis to

determine the probability of the Fund’s assets dropping below $1 billion. Based on consideration from the 

Trustees, the threshold of $1 billion was chosen as a reasonable estimate of the level at which the Plan will 

still be able to sell its illiquid assets without risk of needing those assets to be available for immediate 

benefit payments. The investment consultant has recommended that a shift from the target policy 

allocation to the long-term allocation should happen over a five-year period. At $1 billion, approximately 

half (or $500 million) of the assets are committed to illiquid investments (about one-third of the assets are 

in illiquid investments and, and as noted in the audited financial statements, there are unfunded private 

equity commitments equal to an additional 15-20% of the Plan’s assets). After the proposed suspensions 

take effect, the Plan’s negative cash flow is approximately $100 million per year. With $500 million in liquid 

assets, the Plan would be able to ensure benefit payments would be funded for five years (without regard to 

asset returns) while the Plan migrates to the long-term allocation. 

Once the Fund’s assets dropped below the threshold level, we assumed based on consultations with the 

Trustees that they would give serious consideration to shifting the asset allocation to the long-term 

allocation. The probability of each of the asset allocations shown above was used to develop the 

deterministic assumption for each year of the projection. 

We performed an analysis considering the expected changes in the Plan’s assets and determined that the 

Plan will not have to prematurely sell any of its illiquid assets (private equity) at a loss or with a penalty. This 

Portfolio Statistics Target Allocation Policy Long-Term Asset Allocation Policy

Year 1 Year 2 Year 3 Year 4 Year 5

Investment Grade Bonds 7% 9% 11% 12% 13% 14% 16%

TIPS 5% 8% 9% 10% 12% 13% 14%

High Yield Bonds 2% 2% 2% 2% 2% 2% 2%

Bank Loans 2% 2% 2% 2% 2% 2% 2%

Emerging Market Bonds (local) 8% 5% 4% 4% 3% 3% 2%

US Large Cap 14% 14% 14% 14% 14% 14% 14%

US Small Cap 4% 2% 2% 2% 2% 2% 2%

Developed Market Equity (non-US) 8% 10% 10% 10% 10% 10% 10%

Emerging Market Equity 16% 14% 13% 12% 11% 10% 9%

Private Equity 15% 15% 14% 13% 12% 11% 10%

Real Estate 7% 7% 7% 7% 7% 7% 7%

Natural Resources 7% 7% 7% 7% 7% 7% 7%

Infrastructure 5% 5% 5% 5% 5% 5% 5%

Interim/Transition Asset Allocation Policies Expected Returns 10-Year Long-Term

Target Policy 7.37% 8.33%

Transition Year 1 7.18% 8.15%

Transition Year 2 7.04% 8.02%

Transition Year 3 6.92% 7.90%

Transition Year 4 6.76% 7.76%

Transition Year 5 6.64% 7.63%

Long Term Policy 6.49% 7.49%
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

21

is because the Plan is expecting distributions from its private equity investments in excess of the expected 

decrease in the private equity assets of the Plan. Distributions in future years are expected to be large since 

the Plan has a mature private equity investment program. The majority of the Fund’s investments in the 

program were made during the first four years of the program (vintage years 2006-2009). Investments in 

the limited partnerships for vintage years 2006-2009 are expected to last approximately 10 years. So, the 

lifetime of the investments made in 2006-2009 will be ending in 2016-2019. Because the majority of the 

Fund’s private equity investments are ending in 2016-2019, the Fund is expecting larger distributions from 

the program in these years. 
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 8
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 4.03 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

This report provides the information required by Section 4.03 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 4.03 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 4.03 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department 

of the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 4.03: 

Demonstration that Proposed Suspension Satisfies the Statutory Requirements

Summary 1

Plan-year-by-plan-year projection of available resources 2

Stochastic projection 3
Revenue Procedure 2016-27 Section 4.03: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

1 

Demonstration that the proposed suspension is reasonably estimated to not materially exceed the level 

necessary to avoid insolvency 

Under Section 4.03 of Revenue Procedure 2016-27, the application must include a demonstration that, 

in accordance with Section 432(e)(9)(D)(iv) of the Code, the proposed benefit suspension is reasonably 

estimated to not materially exceed the level necessary to enable the plan to avoid insolvency. For this 

purpose, the assumptions used must be the same as those used for the purposes of Section 4.02 of 

Revenue Procedure 2016-27. The demonstration must include an illustration, prepared on a 

deterministic basis, of the Plan’s available resources and solvency ratio as described in Section 4.02(1) of 

Revenue Procedure 2016-27 (and if applicable to the Plan, an illustration of the probability that the Plan 

will avoid insolvency prepared using stochastic projections, as described in Section 4.02(2) of Revenue 

Procedure 2016-27) showing that the proposed suspension would not reasonably be estimated to 

enable the plan to avoid insolvency if the dollar amount of the proposed suspension for each participant 

and beneficiary were reduced (but not below zero) by the greater of: 

1. Five percent of the reduction in the periodic payment proposed for that participant or 

beneficiary; or 

2. Two percent of the participant’s or beneficiary’s periodic payment determined without regard 

to the reduction proposed in the application. 

On the following pages, we have included:

 A plan-year-by-plan-year deterministic projection of the available resources as defined in 

Section 418E(b)(3) of the Code and the benefits under the Plan. 

 A stochastic projection with 5,000 simulations of investment returns over the extended 

period. 

The deterministic projection is based on the same assumptions as the projection under Section 4.02(1) 

of Revenue Procedure 2016-27 but is based on proposed suspension amounts that are reduced (as 

described above) from the suspensions proposed in this report. Note that the results of the 

deterministic projection show that the Plan, with the reduced proposed benefit suspensions, is not 

estimated to avoid insolvency. Specifically:

 The Plan is projected to become insolvent during the Plan Year ending December 31, 2049.

The stochastic projection includes the same detail and is based on the same assumptions as the 

projection under Section 4.02(2) of Revenue Procedure 2016-27 but is based on proposed suspension 

amounts that are reduced (as described above) from the suspensions proposed in this report. 

Because the Plan, with suspension amounts reduced (as described above) from the suspensions 

proposed in this report, is not projected to meet the requirements of Sections 4.02(1) and 4.02(2) of 

Revenue Procedure 2016-27, the requirements under Section 4.03 of Revenue Procedure 2016-27 are 

met. 
Revenue Procedure 2016-27 Section 4.03: Demonstration that Proposed Suspension Satisfies the 

Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

2 

Plan-year-by-plan-year projection of the available resources: 

Revenue Procedure 2016-27, Section 4.03: The Proposed Benefit Suspension is Reasonably Estimated to Not Materially Exceed the Level Necessary to Avoid Insolvency

Deterministic Projection

Assumed Investment Return See Assumptions Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Note: The suspensions above are reduced by max of 5% of suspension amount and 2% of benefit prior to suspension

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (278,893,942) (9,853,710) 126,496,217 1,173,060,822 3,378,122,092 35.60% 1,451,954,764 5.206

1 12/31/2018 1,173,060,822 126,858,857 9,570,693 (243,097,735) (7,136,955) 81,926,016 1,141,181,699 2,761,500,753 42.48% 1,384,279,434 5.694

2 12/31/2019 1,141,181,699 130,719,066 9,497,851 (245,518,646) (7,235,993) 78,981,655 1,107,625,632 2,757,156,501 41.39% 1,353,144,278 5.511

3 12/31/2020 1,107,625,632 134,556,012 9,497,851 (247,890,878) (6,815,865) 75,870,772 1,072,843,524 2,749,625,369 40.28% 1,320,734,402 5.328

4 12/31/2021 1,072,843,524 138,158,433 9,497,851 (250,694,318) (6,918,030) 72,675,596 1,035,563,056 2,738,444,115 39.18% 1,286,257,374 5.131

5 12/31/2022 1,035,563,056 141,466,836 9,497,851 (253,220,080) (7,022,280) 69,253,250 995,538,633 2,722,820,714 38.03% 1,248,758,713 4.932

6 12/31/2023 995,538,633 144,824,740 9,497,851 (255,236,230) (7,127,573) 65,623,807 953,121,229 2,702,665,095 36.84% 1,208,357,459 4.734

7 12/31/2024 953,121,229 148,376,864 9,497,851 (257,071,199) (7,234,950) 62,093,480 908,783,275 2,678,190,066 35.59% 1,165,854,474 4.535

8 12/31/2025 908,783,275 152,024,878 9,497,851 (258,572,648) (7,343,370) 58,676,184 863,066,170 2,649,254,083 34.30% 1,121,638,818 4.338

9 12/31/2026 863,066,170 155,773,714 9,497,851 (259,562,633) (7,453,875) 55,391,610 816,712,837 2,615,797,759 32.99% 1,076,275,470 4.146

1 0 12/31/2027 816,712,837 159,643,163 9,497,851 (260,008,849) (7,565,423) 59,634,455 777,914,034 2,578,059,604 31.68% 1,037,922,883 3.992

1 1 12/31/2028 777,914,034 163,658,474 9,497,851 (259,736,799) (7,679,055) 56,635,781 740,290,286 2,536,378,685 30.67% 1,000,027,085 3.850

1 2 12/31/2029 740,290,286 167,800,651 9,475,797 (259,106,216) (7,793,730) 53,830,039 704,496,826 2,491,296,807 29.72% 963,603,042 3.719

1 3 12/31/2030 704,496,826 169,935,486 9,425,111 (257,674,603) (7,910,490) 51,058,889 669,331,219 2,442,970,270 28.84% 927,005,822 3.598

1 4 12/31/2031 669,331,219 169,217,536 9,251,903 (255,857,657) (8,029,335) 48,312,590 632,226,257 2,391,880,853 27.98% 888,083,914 3.471

1 5 12/31/2032 632,226,257 168,551,422 8,949,319 (253,410,736) (8,150,265) 45,504,121 593,670,118 2,338,247,585 27.04% 847,080,854 3.343

1 6 12/31/2033 593,670,118 167,880,805 8,949,319 (250,344,816) (8,272,238) 42,563,802 554,446,991 2,282,515,347 26.01% 804,791,807 3.215

1 7 12/31/2034 554,446,991 167,210,785 4,474,660 (246,497,559) (8,396,295) 39,437,610 510,676,191 2,225,201,320 24.92% 757,173,750 3.072

1 8 12/31/2035 510,676,191 166,608,308 (242,429,826) - (8,522,438) 36,027,974 462,360,210 2,167,065,602 23.57% 704,790,036 2.907

1 9 12/31/2036 462,360,210 166,038,848 (237,674,501) - (8,650,665) 32,426,270 414,500,162 2,108,274,139 21.93% 652,174,663 2.744

2 0 12/31/2037 414,500,162 165,458,003 (232,603,274) - (8,779,935) 28,918,085 367,493,041 2,049,537,887 20.22% 600,096,315 2.580

2 1 12/31/2038 367,493,041 164,915,115 (227,166,052) - (8,911,290) 25,490,836 321,821,650 1,991,202,545 18.46% 548,987,702 2.417

2 2 12/31/2039 321,821,650 164,399,566 (221,454,803) - (9,044,730) 22,148,787 277,870,470 1,933,703,002 16.64% 499,325,273 2.255

2 3 12/31/2040 277,870,470 163,847,735 (215,580,116) - (9,180,255) 18,976,665 235,934,499 1,877,426,828 14.80% 451,514,615 2.094

2 4 12/31/2041 235,934,499 163,284,176 (209,192,890) - (9,317,865) 15,978,237 196,686,157 1,822,645,300 12.94% 405,879,047 1.940

2 5 12/31/2042 196,686,157 162,741,778 (203,231,676) - (9,457,560) 13,170,343 159,909,042 1,770,058,393 11.11% 363,140,718 1.787

2 6 12/31/2043 159,909,042 162,254,844 (197,114,384) - (9,599,340) 10,560,025 126,010,187 1,719,410,592 9.30% 323,124,571 1.639

2 7 12/31/2044 126,010,187 161,762,831 (190,748,864) - (9,743,205) 8,169,051 95,450,000 1,671,059,612 7.54% 286,198,864 1.500

2 8 12/31/2045 95,450,000 161,273,104 (184,647,453) - (9,889,155) 6,037,478 68,223,974 1,625,468,962 5.87% 252,871,427 1.369

2 9 12/31/2046 68,223,974 160,805,268 (178,525,118) - (10,037,190) 4,162,862 44,629,796 1,582,615,197 4.31% 223,154,914 1.250

3 0 12/31/2047 44,629,796 160,359,940 (173,130,655) - (10,187,310) 2,539,350 24,211,121 1,542,772,884 2.89% 197,341,776 1.140

3 1 12/31/2048 24,211,121 159,894,304 (167,830,532) - (10,340,558) 1,154,571 7,088,906 1,505,329,231 1.61% 174,919,438 1.042

3 2 12/31/2049 7,088,906 159,415,154 (162,723,439) - (10,495,890) 14,310 INSOLVENT 1,470,327,779 0.48% 156,022,480 0.959

"CY" = current plan year
Revenue Procedure 2016-27 Section 4.03: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

3 

Stochastic Projection: 

In the following exhibit, we have included a stochastic projection with 5,000 simulations of investment 

returns over the extended period. 

Stochastic Illustration: 

The stochastic projection below is based on the assumptions, as described in Appendix B of the report 

for the information required under Section 4.02 of Revenue Procedure 2016-27: 

The probability of avoiding insolvency throughout the extended period is 42%.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2017

38%

38%

38%

38%

38%

38%

0%

100%

2019

49%

43%

41%

39%

28%

41%

4%

100%

2021

59%

44%

38%

33%

19%

39%

8%

100%

2023

73%

45%

35%

27%

11%

37%

14%

100%

2025

89%

45%

32%

22%

2%

35%

19%

100%

2027

108%

45%

29%

16%

0%

33%

24%

96%

2029

126%

46%

26%

10%

0%

32%

29%

88%

2031

156%

48%

22%

3%

0%

32%

35%

79%

2033

195%

50%

19%

0%

0%

34%

43%

70%

2035

240%

53%

15%

0%

0%

36%

53%

62%

2037

297%

57%

9%

0%

0%

39%

64%

56%

2039

367%

61%

3%

0%

0%

45%

77%

52%

2041

455%

66%

0%

0%

0%

52%

95%

48%

2043

560%

73%

0%

0%

0%

61%

118%

46%

2045

688%

84%

0%

0%

0%

74%

147%

44%

2047

876%

99%

0%

0%

0%

89%

183%

43%

2049

1099%

118%

0%

0%

0%

108%

227%

42% Probability Funded Percentage

Funded Percentage

Prob > 0% 1st - 25th percentile 25th - 50th percentile 50th - 75th percentile 75th - 99th percentile

Revenue Procedure 2016-27 Calculations

As of 1/1

99th %

75th %

50th %

25th %

1st %

Mean

Std Dev

Prob > 0%

Revenue Procedure 2016-27 Calculations
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 9


The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 

4.04(1)(a) of Revenue Procedure 

2016-27 for Benefit Suspensions 

Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.04(1)(a) of Revenue Procedure 2016-27

This report provides the information required by Section 4.04(1)(a) of Revenue Procedure 2016-27: 

Application Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit 

Pension Plans under § 432(e)(9). This information is applicable to the New York State Teamsters 

Conference Pension and Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions 

as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 4.04(1)(a) of Revenue Procedure 2016-

27, we have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 4.04(1)(a) of Revenue 

Procedure 2016-27. There may be additional information required in the application that will be compiled 

by the Plan administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department 

of the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.04(1)(a) of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 4.04(1)(a): 

Demonstration that Proposed Benefit Suspension is Distributed Equitably

Summary 1
Revenue Procedure 2016-27 Section 4.04(1)(a): Demonstration that 

Proposed Benefit Suspension is Distributed Equitably

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.04(1)(a) of Revenue Procedure 2016-27

1 

Demonstration that the proposed benefit suspension is distributed equitably 

Under Section 4.04(1)(a) of Revenue Procedure 2016-27, the application must include a demonstration 

that, in accordance with Section 432(e)(9)(D)(vi) of the Code, the proposed benefit suspension is 

distributed in an equitable manner across the participant and beneficiary population. 

For the Plan in the aggregate, the application must include the aggregate present value of the reduction 

in benefits for all individuals. If the proposed suspension provides for different treatment for different 

categories or groups (other than as a result of application of the individual limitations), the application 

must include the aggregate present value of the reduction in benefits for each category or group. 

The table below shows the aggregate present value of the reduction in benefits for all individuals and 

for the two categories of participants subject to the proposed suspensions.

Category Present Value of Reduction in Benefits

Active $121,305,458

Non-Active $549,296,142

Total $670,601,600

Please note the following:

 The present values shown in the table above are as of October 1, 2017 and are based on 

census data as of January 1, 2016.

 The present values shown in the table above are based on the same assumptions used in the 

actuarial projection required under Section 3.02 of Revenue Procedure 2016-27. Please refer 

to the actuarial projection under Section 3.02 of Revenue Procedure 2016-27 for more 

information regarding the assumptions.

Note that this projection, by itself, does not satisfy all the requirements of Section 4.04(1)(a) of 

Revenue Procedure 2016-27. The additional required information is included in the application. 
The New York State Teamsters Conference Pension and Retirement Fund 

Application for Suspension of Benefits under MPRA 

EXHIBIT 10 

DB1/ 88552986.1 DB1/ 88552986.1 

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 10
New York State Teamsters Conference Pension & Retirement Fund

Contributing Employer List as of May 2017

Employer

ABC SUPPLY CO. INC.

ABF FREIGHT SYSTEM INC.

ADAMS EXPRESS INC.

AIRBORNE FREIGHT CORPORATION

ALBANY AREA TRUCKING & ALLIED

ALBANY CONCRETE CO

ALDRIDGE ELECTRIC, INC.

ALLIED WASTE SERVICES OF NORTH

ALLIED WASTE SYSTEMS OF NA INC.

ASSOCIATED TEXTILE RENTAL SER

AUGUST BOHL CONTRACTING CO.

B & S TRUCKING

B. GIAMBRONE & COMPANY, INC.

BARR TRANSPORTATION CORP

BATTENFELD-AMERICAN, INC.

BENLIN DISTRIBUTION SVCS INC.

BIMBO BAKERIES USA, INC.

BINGHAMTON GREENE TRUCK LINES

BONDED CONCRETE INC.

BONDED NORTH, CORP.

BONDED SOUTH

BOROUGH OF ELKLAND

BOROUGH OF MANSFIELD

BOROUGH OF TOWANDA

BOROUGH OF WELLSBORO

BOROUGH OF WESTFIELD

BOULTER INDUSTRIAL CONTRACTORS

BURT CRANE & RIGGING

C & M FORWARDING CO INC.

C D PERRY & SONS INC.

C.P. WARD, INC.

CALLANAN INDUSTRIES INC.

CAMPOBELLO CONSTRUCTION CO INC.

CANADA DRY-HACKENSACK

CANADA DRY-SOUTH PLAINFIELD

CATSKILL CONCRETE COMPANY

CENTURY LINEN OF POTSDAM INC.

CHARPS WELDING

CITY OF JAMESTOWN BOARD OF

CLEMENTE LATHAM CONCRETE CORP.

CLEMENTE LATHAM NORTH

CLOVER LEAF NURSERIES, INC.
COCA COLA BOTTLING CO OF

COEYMANS LANDING MARINE SERVIC

COMMUNICATIONS WORKERS

COPE BESTWAY EXPRESS INC.

CORTLAND READY MIX INC.

CRANESVILLE AGGREGATES CO

CRANESVILLE BLOCK & READY MIX

CRANESVILLE BLOCK CO INC

CRANESVILLE BLOCK/MIRON

CROSSETT INC

CUSHING STONE COMPANY INC.

D.A. COLLINS CONSTRUCTION

DAGOSTINO BUILDING BLOCKS

DANKO DEVELOPMENT

DOMINE BUILDERS SUPPLY

DONNELLY CONSTRUCTION, INC

ECONOMY PAVING COMPANY INC

ECONOMY PAVING COMPANY, INC

ECONOMY PAVING COMPANY, INC.

ELDERLEE, INC.

EMPIRE MERCHANTS NORTH LLC

ESCRO TRANSPORT LTD

F&R UNLIMITED, LLC

FIRST TRANSIT, INC.

FLETCHER GRAVEL COMPANY INC

FOREST MATERIALS INC.

FORT EDWARD EXPRESS CO INC

FULTON-OSWEGO MOTOR EXPRESS

G & T AIR EXPEDITING SERVICE

GENESEE BREWING COMPANY (DBA)

GEORGE C MILLER BRICK

GLENS FALLS READY MIX

GRANDVIEW CONCRETE CORP

GRIMM BUILDING MATERIALS CO

H P HOOD, LLC

HANSON AGGREGATES NY LLC

HIGH FALLS BREWING COMPANY LLC

INTERNATIONAL CHIMNEY

IRON WORKERS UNION LOCAL 12

IROQUOIS ROCK PRODUCTS INC

J A CARMAN TRUCKING CO INC

J H WATTLES INC

JACKSON TOWNSHIP

JAMES DESIDERIO INC

JAMES H MALOY INC

JOEY'S BROKERAGE

JOINTA GALUSHA LLC
JONES MOTOR COMPANY INC

JOSEPH A CIMINO FOOD BRKRS INC

JOSEPH R WUNDERLICH INC

KEELER CONSTRUCTION CO INC

KELLOGG SALES COMPANY D/B/A

LAKE BEVERAGE CORPORATION

LARNED TRUCKING

LINDE GAS USA LLC

MALLEY TRUCKING INC.

MANITOU CONSTRUCTION CO INC

MAPLETON AG TRANSPORT

MATT BREWING COMPANY

MATTHEWS & FIELDS LUMB CO INC

MID-STATE RACEWAY, INC.

MIDWWEST STEEL, INC.

MINNESOTA LIMITED LLC

MURZAK ENTERPRISES, INC.

N Y STATE TEAMSTERS COUNCI

N Y STATE TEAMSTERS COUNCIL

NEW PENN MOTOR EXPRESS INC.

NEWPORT NEWS SHIPBUILDING

NIAGARA FRONTIER FOOD TERM INC.

NORLITE CORP

NYS BUILDING TRADES COUNCIL

O'BRIEN & GERE INC. OF

OTIS EASTERN SERVICE, INC.

PALLETTE STONE CORP

PARSONS CONSTRUCTORS INC.

PECKHAM MATERIALS CORP

PENNZOIL-QUAKER STATE CO D/B/A

PENSKE TRUCK LEASING CO LP

PERRAS-ENVIRONMENTAL

PHILLIPS & JORDAN, INC.

POLLIO DAIRY PRODUCTS CORP/

PRECISION PIPELINE CO., LLC

QUALA SYSTEMS INC.

QUALITY CARRIERS, INC.

R & J KERR, INC.

RICHMOND TOWNSHIP

RIDGEWAY TRUCKING CORP

RIFENBURG CONTRACTING CORP.

ROBERT H. LAW, INC.

ROCHESTER AREA CONSTRUCTION &

ROTONDO TRUCKING & WAREHOUSING

RUSSO PRODUCE CO INC.

SAFEWAY TRUCKING CORP

SAM-SON DISTRIBUTION CENTER INC.
SAUNDERS CONCRETE CO INC.

SCHAEFER ENTERPRISES OF DEPOSI

SCRANTON'S THRUWAY BUILDERS

SEALAND CONTRACTORS CORP

SEVENSON ENVIRONMENTAL

SHAW ENVIRONMENTAL, INC.

SMITH PACKING COMPANY INC.

SOUTHLAND RENDA JV

ST. LAWRENCE INDUSTRIAL

STADIUM INTERNATIONAL TRUCKS

STONE & WEBSTER CONSTRUCTION

STRATE WELDING SUPPLY CO INC.

SYRACUSE BANANA COMPANY

SYRACUSE TEACHERS ASSOCIATION

TEAMSTERS LOCAL UNION NO 118

TEAMSTERS LOCAL UNION NO 264

TEAMSTERS LOCAL UNION NO 294

TEAMSTERS LOCAL UNION NO 317

TEAMSTERS LOCAL UNION NO 449

TEAMSTERS LOCAL UNION NO 529

TEAMSTERS LOCAL UNION NO 560/

TEAMSTERS LOCAL UNION NO 687

THE DE PERNO FIRM PC

THE L C WHITFORD COMPANY INC.

THE WESSON GROUP LLC

THEATRICAL TEAMSTERS

THRUWAY BLDRS OF ORCHARD PARK

TOTAL WRECKING & ENVIRONMENTAL

TRANSERVICE LOGISTICS, INC.

TROY SAND & GRAVEL CO INC.

UCC CONSTRUCTORS INC.

UNITED PARCEL SERVICE

UPSTATE NIAGARA COOPERATIVE, INC.

USF HOLLAND INC.

VAN AUKEN EXPRESS INC.

W J W LOGISTICS SERVICE INC.

WECKESSER BRICK COMPANY INC.

WELCH HOLME & CLARK CO, INC.

WHITACRE ENGINEERING CO

WILLIAM B MORSE LUMBER CO

WM J. KELLER & SONS CONST CORP

WNYCOSH

YANK WASTE CO., INC.

YRC FREIGHT
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 11
DB1/ 88553035.7 

BALLOT 

ON THE PROPOSED SUSPENSION OF BENEFITS FOR THE 

 NEW YORK STATE TEAMSTERS CONFERENCE PENSION AND 

RETIREMENT FUND 

On [DATE], 2017, the Board of Trustees (“Trustees”) of the New York State Teamsters 

Conference Pension and Retirement Fund (“Plan”) mailed to you a Notice of Proposed 

Suspension of Your Pension Benefits (“Notice”). The Notice advised you that the Trustees 

submitted an application for approval of a suspension of benefits (“Application”) under the Plan 

to the U.S. Department of the Treasury (“Treasury”) on May 15, 2017. The purpose of the 

application was to obtain Treasury’s approval of the Trustees’ Pension Preservation Plan 

(“PPP”), which sets forth the details of the proposed suspension of benefits. 

The Notice explained that if Treasury approved the Plan's Application, Active Participants and 

Non-Active Participants (which includes retirees, terminated vested participants, and 

beneficiaries of deceased participants) would be given the opportunity to vote on whether the 

benefit suspensions should go into effect. On [DATE], Treasury approved the Plan's 

application to suspend benefits. 

This ballot is designed to assist you in deciding whether to vote to approve the PPP and 

proposed benefit suspensions. Please carefully read the information below before casting 

your vote. The information below should be considered when deciding whether to vote for or 

against the suspensions. 

The Plan’s Statement in Support 

The Board of Trustees has developed the PPP in an effort to save the Plan. The PPP requires the 

Trustees to reduce pension benefits to prevent the Plan from becoming insolvent (i.e. running out 

of money). This is a difficult, but necessary action. The Trustees support the proposed 

suspension, because under the PPP you will receive a larger benefit than you would if the Plan 

becomes insolvent. Although the exact date is unknown, unless the proposed suspension takes 

effect, the Plan is projected to become insolvent in 2026. If the Plan becomes insolvent, it is 

possible that you will not receive your pension. Other pension plans are in similar or worse 

shape. For some plans, it is too late, and they cannot be saved. Others will have to cut benefits 

to the maximum amount allowed under the law. By proactively adopting the PPP and reducing 

pension benefits now rather than waiting until it is too late, the Trustees can still save your 

pension without reducing pension benefits by the maximum amount. Without the suspensions 

proposed in the PPP, the Plan’s financial condition is projected to deteriorate to where it is 

beyond repair. 

In addition, the Pension Benefit Guaranty Corporation (“PBGC"), which subsidizes the benefits 

of insolvent pension plans, might also run out of money in the near future if this Plan and other 

plans become insolvent. The PBGC has estimated that its Multiemployer Program’s financial 

resources will be exhausted within ten years, which means the PBGC could become insolvent 

before the Plan does. If both the Plan and the PBGC become insolvent, your pension benefits 
DB1/ 88553035.7 2 

could be reduced to almost zero. It is important to understand that if the Plan becomes insolvent, 

there is little to no possibility of the benefit suspensions being reinstated or future accruals 

increasing. 

Please know that the PPP reduces pension benefits by the minimum amount necessary to 

keep the Plan solvent. If the PPP is approved, the Plan is projected to remain solvent and 

able to pay benefits into the future. For the sake of preserving retirement security for all 

Plan participants, we urge you to vote to approve the benefit suspensions. 

Description of the Proposed Benefit Suspensions 

The Board of Trustees proposes the following suspension of benefits. All Active Participants (as 

defined below) will have their accrued monthly benefits as of June 30, 2017 reduced by 18%. 

All Non-Active Participants (as defined below) will have their accrued monthly benefits as of 

June 30, 2017 reduced by 29%. 

An Active Participant is an individual who (1) has not retired and entered pay status as of July 1, 

2017 and (2) had at least 500 hours of employer contributions submitted to the Plan on their 

behalf in the 2015 Plan Year, in the 2016 Plan Year, or in the 2017 Plan Year prior to July 1, 

2017. All other Plan participants who do not meet the definition of Active Participant on July 1, 

2017, including retirees, beneficiaries, and terminated vested participants, are considered NonActive Participants. 

The formula used to determine the amount of the proposed suspension for Active Participants is 

based on the 18% suspension percentage being applied to each Active Participant’s accrued 

monthly benefit as of June 30, 2017. For example, an Active Participant who has an accrued 

monthly benefit as of June 30, 2017 equal to a $3,500 monthly benefit at retirement, would have 

their $3,500 benefit multiplied by the suspension percentage, which is 18%. The amount of 

suspension ($700) is subtracted from $3,500, as follows: 

A. Projected Pre-Suspension Accrued Monthly Benefit: $3,500 

B. Suspension Percentage: 18% 

C. Amount of Suspension (A x B): $700 

D. Final Post-Suspension Benefit (A – C): $2,800 

Note that if you work after July 1, 2017, you will continue to accrue benefits at the rate set forth 

in your employer’s Rehabilitation Plan Schedule. Benefits accrued after July 1, 2017 will not be 

suspended. 

The formula used to determine the amount of the proposed suspension for all Non-Active 

Participants is based on the 29% suspension percentage being applied to each Non-Active 

Participant’s accrued monthly benefit as of June 30, 2017. For example, a Non-Active 

Participant, such as a retiree, who is receiving an accrued monthly benefit of $2,000 per month 

as of June 30, 2017, would have their $2,000 monthly benefit multiplied by the suspension 

percentage, which is 29%. The amount of suspension ($620) is subtracted from $2,000, as 

follows: 
DB1/ 88553035.7 3 

A. Projected Pre-Suspension Accrued Monthly Benefit: $2,000 

B. Suspension Percentage: 29% 

C. Amount of Suspension (A x B): $620 

D. Final Post-Suspension Benefit (A – C): $1,380 

A Non-Active Participant, such as a terminated vested, who is not yet in pay status but who is 

projected to receive a $2,000 monthly benefit based on their accrued monthly benefit as of June 

30, 2017 would have the same 29% suspension applied in accordance with the above formula. 

Factors Taken into Account in Designing the Benefit Suspensions 

In designing the benefit suspensions, the Trustees considered the following factors: 

• Accelerating employer withdrawals from the Plan and increasing the risk of additional 

benefit reductions for participants in and out of pay status; 

• Negative reaction by Active Participants that would further prompt withdrawals of Active 

Participant groups and contributing employers, and Active Participants reasonably likely 

to withdraw support for the Application; 

• History of benefit reductions for Active Participants; 

• Amount of benefit; 

• Discrepancies/relative benefits as between Active Participants and Non-Active 

Participants, including subsidized benefits; and 

• Differences in historical employer contribution rates/increases as between Active 

Participants and Non-Active Participants. 

Term of Suspensions 

The proposed suspension will remain in effect indefinitely. 

Plan Insolvency

The Trustees have determined that the Plan will become insolvent unless the proposed 

suspensions take effect. The Plan actuary has certified that if the suspensions do not take effect, 

the Plan will become insolvent in the year 2026. The determination of the exact date of 

insolvency is based on actuarial assumptions and experience that is subject to some uncertainty. 

Plan Benefits if the Plan Becomes Insolvent

If the Plan becomes insolvent, the PBGC will help pay pension benefits up to a certain 

guaranteed amount. However, your pension is likely to be lower than what you would receive 

under the PPP. That is because under the PPP, the proposed suspensions result in pension 

benefits that are higher than those guaranteed by the PBGC. 

The calculation of the PBGC guaranty is complicated, as it considers both the years of service 

that have been worked and the rate of benefit accrual the Plan has credited. The maximum 

monthly benefit the PBGC will guarantee is $35.75 for each year of service that has been earned. 
DB1/ 88553035.7 4 

Thus, for a participant with 30 years of service, the maximum PBGC guarantee is $1,072.50 per 

month. 

PBGC Insolvency

If the PBGC becomes insolvent, your pension will be lower than what would otherwise be paid if 

the Plan became insolvent. In fact, if the Plan and PBGC both become insolvent, it is possible 

that you will not receive any pension at all. 

Plan is Projected to Avoid Insolvency if Benefit Suspensions are Implemented 

The Plan’s actuary has certified that the proposed suspensions are projected to avoid the Plan’s 

insolvency. This projection requires the use of certain assumptions, and the projection is subject 

to some uncertainty. 

Treasury’s Approval of the Proposed Pension Preservation Plan 

The proposed suspensions in the PPP have already been approved by Treasury, in consultation 

with the PBGC and the Secretary of Labor. 

Failing to Vote 

The suspension will go into effect unless a majority of all eligible voters vote to reject the 

suspension and therefore a failure to vote has the same effect on the outcome of the vote as a 

vote in favor of the suspension. 

 I approve the suspension of benefits. 

 I reject the suspension of benefits. 

Signed:__________________________ Name (Printed): ___________________ 

Date: ___________________ 
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 12
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 6.03 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

This report provides the information required by Section 6.03 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 6.03 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that the information required by Section 6.03 of Revenue Procedure 2016-27 is not actuarial in 

nature. As such, this report does not include any actuarial information, just a summary of historical data. 

There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, LLC that 

affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 6.03: 

Other Required Information

Ten-year experience for certain critical assumptions 1
Revenue Procedure 2016-27 Section 6.03: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

1 

Ten-year experience for certain critical assumptions 

Under section 6.03 of Revenue Procedure 2016-27, the application must include experience regarding 

certain critical assumptions. With respect to each of the 10 plan years immediately preceding the plan 

year in which the application is submitted, Section 6.03 of Revenue Procedure 2016-27 requires a 

disclosure that separately identifies: 

1. Total contributions 

2. Total contribution base units 

3. Average contribution rates 

4. Withdrawal liability payments 

5. Rate of return on plan assets 

Since the drop in contribution base units (hours) associated with the financial crisis in 2008 and 2009, 

hours have remained steady or slightly declined from 2010 through 2015. 

Note that the drop in contribution base units from the 2013 to 2014 plan year is primarily due to the 

withdrawal of employers who are currently making withdrawal liability payments or have satisfied their 

withdrawal liability obligation in full. The Trustees believe that the downward trend in contribution base 

units will not continue, as the withdrawals in 2013 to 2014 were specific, one-time events unlikely to be 

repeated. Specifically, these withdrawn employers accounted for approximately 2.5 to 3.0 million hours 

in the 2010 through 2013 years. Factoring out the hours for these withdrawn employers in 2010 

through 2013 will result in a steady pattern of hours for the period between 2010 and 2016. 

The Trustees are confident that the economic certainty provided to employers under the application to 

suspend benefits with respect to their future contribution obligations will provide employers with an 

incentive to remain in the Plan. Likewise, the application to suspend benefits and other 

communications with Active Participants have shown them that there is long-term hope for the Plan, 

and it is to their economic advantage to remain Participants. 

Revenue Procedure 2016-27, Section 6.03: Ten-year Experience for Certain Critical Assumptions

Total Average Rate of 

Plan Year Total Contribution Contribution Withdrawal Liability Return on

Ending Contributions Base Units Rate Payments Plan Assets

12/31/2016 125,026,448 $ 15,194,056 $ 8.23 $ 12,780,606 9.59%

12/31/2015 115,286,154 14,956,634 7.71 19,482,803 -0.74%

12/31/2014 108,586,434 15,059,998 7.21 16,663,889 6.05%

12/31/2013 108,206,048 17,669,701 6.12 13,706,316 8.50%

12/31/2012 101,196,818 17,049,078 5.94 17,820,004 14.40%

12/31/2011 92,564,876 17,572,053 5.27 15,389,206 1.78%

12/31/2010 84,188,914 17,960,860 4.69 2,346,687 13.00%

12/31/2009 85,925,231 19,672,667 4.37 2,928,862 26.23%

12/31/2008 100,561,173 22,239,386 4.52 2,614,604 -30.50%

12/31/2007 101,062,928 22,881,218 4.42 3,093,829 8.35%
Revenue Procedure 2016-27 Section 6.03: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

2 

This information, along with other information specific to certain contributing employers, was used by 

the Board of Trustees and Horizon Actuarial Services to develop the assumption for the decline in the 

active population. The information specific to certain employers is not included in this application due 

to the public nature of the application. However, additional information can be supplied to the 

Department of the Treasury upon request. 
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 13
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 6.04 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

This report provides the information required by Section 6.04 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 6.04 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of 

the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

Summary 1

Projection 1 – Assumed rate of return is reduced by 1 percentage point 2

Projection 2 – Assumed rate of return is reduced by 2 percentage points 3

Projection 3 – Future CBUs decrease by 10-year historical decrease 4

Projection 4 – Future CBUs decrease by 10-year historical decrease reduced 

by 1 percentage point

5
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

1 

Demonstration of sensitivity of projections 

Under Section 6.04 of Revenue Procedure 2016-27, the application must include deterministic 

projections of the sensitivity of the plan’s solvency ratio throughout the extended period to certain key 

assumptions. The application must include the following separate projections calculated using the same 

assumptions as those used under Section 4.02(1) of Revenue Procedure 2016-27, except that: 

1. The assumed rate of return is reduced by 1 percentage point 

2. The assumed rate of return is reduced by 2 percentage points 

3. Future contribution base units increase or decrease at a rate equal to the average annual rate of 

increase or decrease that the plan experienced over the period of years described in Section 

6.03 of Revenue Procedure 2016-27

4. Future contribution base units increase or decrease at a rate equal to the average annual rate 

described in item #3 above reduced by 1 percentage point 

On the following pages, we have included four plan-year-by-plan-year deterministic projections of the 

available resources as defined in Section 418E(b)(3) of the Code and the benefits under the plan. 
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

2 

Projection 1 – The assumed rate of return is reduced by 1 percentage point 

This projection assumes a rate of return 1 percentage point less than the rate of return assumed in the projection required under Section 4.02(1) 

of Revenue Procedure 2016-27. 

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return 1.00% Less Than Assumed Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (277,763,262) (9,853,710) 115,308,054 1,163,003,339 3,377,856,996 35.60% 1,440,766,601 5.187

1 12/31/2018 1,163,003,339 126,858,857 9,570,693 (238,476,009) (7,136,955) 70,273,297 1,124,093,223 2,703,299,799 43.02% 1,362,569,232 5.714

2 12/31/2019 1,124,093,223 130,719,066 9,497,851 (240,778,124) (7,235,993) 67,208,222 1,083,504,245 2,698,844,694 41.65% 1,324,282,369 5.500

3 12/31/2020 1,083,504,245 134,556,012 9,497,851 (243,018,522) (6,815,865) 64,001,128 1,041,724,849 2,691,317,129 40.26% 1,284,743,371 5.287

4 12/31/2021 1,041,724,849 138,158,433 9,497,851 (245,695,501) (6,918,030) 60,739,718 997,507,320 2,680,277,630 38.87% 1,243,202,821 5.060

5 12/31/2022 997,507,320 141,466,836 9,497,851 (248,108,546) (7,022,280) 57,292,710 950,633,891 2,664,941,044 37.43% 1,198,742,437 4.832

6 12/31/2023 950,633,891 144,824,740 9,497,851 (250,027,980) (7,127,573) 53,683,279 901,484,208 2,645,214,522 35.94% 1,151,512,188 4.606

7 12/31/2024 901,484,208 148,376,864 9,497,851 (251,773,895) (7,234,950) 50,204,111 850,554,189 2,621,306,056 34.39% 1,102,328,084 4.378

8 12/31/2025 850,554,189 152,024,878 9,497,851 (253,199,347) (7,343,370) 46,861,085 798,395,286 2,593,078,198 32.80% 1,051,594,633 4.153

9 12/31/2026 798,395,286 155,773,714 9,497,851 (254,130,690) (7,453,875) 43,663,897 745,746,183 2,560,470,317 31.18% 999,876,873 3.934

1 0 12/31/2027 745,746,183 159,643,163 9,497,851 (254,532,541) (7,565,423) 47,340,424 700,129,658 2,523,714,058 29.55% 954,662,199 3.751

1 1 12/31/2028 700,129,658 163,658,474 9,497,851 (254,235,952) (7,679,055) 44,263,146 655,634,122 2,483,145,363 28.20% 909,870,074 3.579

1 2 12/31/2029 655,634,122 167,800,651 9,475,797 (253,593,205) (7,793,730) 41,355,216 612,878,850 2,439,295,706 26.88% 866,472,055 3.417

1 3 12/31/2030 612,878,850 169,935,486 9,425,111 (252,178,782) (7,910,490) 38,472,975 570,623,150 2,392,319,068 25.62% 822,801,932 3.263

1 4 12/31/2031 570,623,150 169,217,536 9,251,903 (250,391,848) (8,029,335) 35,606,432 526,277,838 2,342,675,900 24.36% 776,669,686 3.102

1 5 12/31/2032 526,277,838 168,551,422 8,949,319 (247,996,289) (8,150,265) 32,674,676 480,306,702 2,290,581,383 22.98% 728,302,991 2.937

1 6 12/31/2033 480,306,702 167,880,805 8,949,319 (244,999,925) (8,272,238) 29,619,741 433,484,405 2,236,464,996 21.48% 678,484,330 2.769

1 7 12/31/2034 433,484,405 167,210,785 4,474,660 (241,243,093) (8,396,295) 26,392,547 381,923,008 2,180,831,654 19.88% 623,166,101 2.583

1 8 12/31/2035 381,923,008 166,608,308 (237,276,718) - (8,522,438) 22,901,715 325,633,876 2,124,424,642 17.98% 562,910,594 2.372

1 9 12/31/2036 325,633,876 166,038,848 (232,642,855) - (8,650,665) 19,238,837 269,618,041 2,067,403,470 15.75% 502,260,896 2.159

2 0 12/31/2037 269,618,041 165,458,003 (227,705,033) - (8,779,935) 15,638,184 214,229,260 2,010,460,517 13.41% 441,934,293 1.941

2 1 12/31/2038 214,229,260 164,915,115 (222,411,062) - (8,911,290) 12,092,513 159,914,536 1,953,931,653 10.96% 382,325,598 1.719

2 2 12/31/2039 159,914,536 164,399,566 (216,851,657) - (9,044,730) 8,615,381 107,033,096 1,898,242,251 8.42% 323,884,753 1.494

2 3 12/31/2040 107,033,096 163,847,735 (211,138,625) - (9,180,255) 5,255,795 55,817,746 1,843,771,092 5.81% 266,956,371 1.264

2 4 12/31/2041 55,817,746 163,284,176 (204,924,912) - (9,317,865) 2,023,574 6,882,719 1,790,779,463 3.12% 211,807,631 1.034

2 5 12/31/2042 6,882,719 162,741,778 (199,132,387) - (9,457,560) (1,069,959) INSOLVENT 1,739,952,711 0.40% 159,096,978 0.799

"CY" = current plan year
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

3 

Projection 2 – The assumed rate of return is reduced by 2 percentage points 

This projection assumes a rate of return 2 percentage points less than the rate of return assumed in the projection required under Section 

4.02(1) of Revenue Procedure 2016-27. 

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return 2.00% Less Than Assumed Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (277,763,262) (9,853,710) 104,056,302 1,151,751,587 3,377,856,996 35.60% 1,429,514,849 5.147

1 12/31/2018 1,151,751,587 126,858,857 9,570,693 (238,476,009) (7,136,955) 58,588,338 1,101,156,512 2,703,299,799 42.61% 1,339,632,521 5.617

2 12/31/2019 1,101,156,512 130,719,066 9,497,851 (240,778,124) (7,235,993) 55,295,218 1,048,654,530 2,698,844,694 40.80% 1,289,432,654 5.355

3 12/31/2020 1,048,654,530 134,556,012 9,497,851 (243,018,522) (6,815,865) 51,879,318 994,753,324 2,691,317,129 38.96% 1,237,771,846 5.093

4 12/31/2021 994,753,324 138,158,433 9,497,851 (245,695,501) (6,918,030) 48,432,920 938,228,997 2,680,277,630 37.11% 1,183,924,498 4.819

5 12/31/2022 938,228,997 141,466,836 9,497,851 (248,108,546) (7,022,280) 44,838,984 878,901,842 2,664,941,044 35.21% 1,127,010,388 4.542

6 12/31/2023 878,901,842 144,824,740 9,497,851 (250,027,980) (7,127,573) 41,126,022 817,194,902 2,645,214,522 33.23% 1,067,222,882 4.268

7 12/31/2024 817,194,902 148,376,864 9,497,851 (251,773,895) (7,234,950) 37,564,764 753,625,536 2,621,306,056 31.18% 1,005,399,431 3.993

8 12/31/2025 753,625,536 152,024,878 9,497,851 (253,199,347) (7,343,370) 34,149,604 688,755,152 2,593,078,198 29.06% 941,954,499 3.720

9 12/31/2026 688,755,152 155,773,714 9,497,851 (254,130,690) (7,453,875) 30,876,855 623,319,007 2,560,470,317 26.90% 877,449,697 3.453

1 0 12/31/2027 623,319,007 159,643,163 9,497,851 (254,532,541) (7,565,423) 33,283,699 563,645,757 2,523,714,058 24.70% 818,178,298 3.214

1 1 12/31/2028 563,645,757 163,658,474 9,497,851 (254,235,952) (7,679,055) 29,857,819 504,744,894 2,483,145,363 22.70% 758,980,846 2.985

1 2 12/31/2029 504,744,894 167,800,651 9,475,797 (253,593,205) (7,793,730) 26,558,386 447,192,792 2,439,295,706 20.69% 700,785,997 2.763

1 3 12/31/2030 447,192,792 169,935,486 9,425,111 (252,178,782) (7,910,490) 23,270,588 389,734,705 2,392,319,068 18.69% 641,913,487 2.545

1 4 12/31/2031 389,734,705 169,217,536 9,251,903 (250,391,848) (8,029,335) 19,971,229 329,754,190 2,342,675,900 16.64% 580,146,038 2.317

1 5 12/31/2032 329,754,190 168,551,422 8,949,319 (247,996,289) (8,150,265) 16,583,626 267,692,004 2,290,581,383 14.40% 515,688,293 2.079

1 6 12/31/2033 267,692,004 167,880,805 8,949,319 (244,999,925) (8,272,238) 13,079,846 204,329,812 2,236,464,996 11.97% 449,329,737 1.834

1 7 12/31/2034 204,329,812 167,210,785 4,474,660 (241,243,093) (8,396,295) 9,408,577 135,784,445 2,180,831,654 9.37% 377,027,538 1.563

1 8 12/31/2035 135,784,445 166,608,308 (237,276,718) - (8,522,438) 5,473,155 62,066,753 2,124,424,642 6.39% 299,343,471 1.262

1 9 12/31/2036 62,066,753 166,038,848 (232,642,855) - (8,650,665) 1,388,159 INSOLVENT 2,067,403,470 3.00% 220,843,095 0.949

"CY" = current plan year
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

4 

Projection 3 – Future contribution base units increase or decrease at a rate equal to the average annual rate of increase or decrease that the 

plan experienced over the period of years described in Section 6.03 of Revenue Procedure 2016-27

Based on information supplied by the Fund administrator, the annual rate of change of contribution base units over the last ten years is a 

decrease of 4.45%. The assumed change in contribution base units used in the projection shown below is a 4.45% annual decrease. 

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return As Assumed Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Annual Decrease in Contribution Base Units 4.45%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 116,211,403 9,586,913 (277,763,262) (9,853,710) 126,174,064 1,167,010,494 3,377,856,996 35.60% 1,444,773,756 5.201

1 12/31/2018 1,167,010,494 115,044,294 9,570,693 (238,476,009) (7,136,955) 81,217,945 1,127,230,463 2,703,173,454 43.17% 1,365,706,472 5.727

2 12/31/2019 1,127,230,463 113,849,320 9,497,851 (240,778,124) (7,235,993) 77,524,501 1,080,088,018 2,698,433,472 41.77% 1,320,866,142 5.486

3 12/31/2020 1,080,088,018 112,527,404 9,497,851 (243,018,522) (6,815,865) 73,266,827 1,025,545,713 2,690,427,713 40.15% 1,268,564,235 5.220

4 12/31/2021 1,025,545,713 110,918,514 9,497,851 (245,695,501) (6,918,030) 68,504,525 961,853,072 2,678,677,963 38.29% 1,207,548,573 4.915

5 12/31/2022 961,853,072 109,008,440 9,497,851 (248,108,546) (7,022,280) 63,083,981 888,312,518 2,662,355,891 36.13% 1,136,421,064 4.580

6 12/31/2023 888,312,518 107,084,923 9,497,851 (250,027,980) (7,127,573) 57,016,421 804,756,160 2,641,332,749 33.63% 1,054,784,140 4.219

7 12/31/2024 804,756,160 105,271,853 9,497,851 (251,773,895) (7,234,950) 50,551,925 711,068,944 2,615,777,898 30.77% 962,842,839 3.824

8 12/31/2025 711,068,944 103,480,657 9,497,851 (253,199,347) (7,343,370) 43,654,149 607,158,884 2,585,511,736 27.50% 860,358,231 3.398

9 12/31/2026 607,158,884 101,722,836 9,497,851 (254,130,690) (7,453,875) 36,280,828 493,075,834 2,550,428,626 23.81% 747,206,524 2.940

1 0 12/31/2027 493,075,834 99,996,862 9,497,851 (254,532,541) (7,565,423) 32,383,356 372,855,940 2,510,708,644 19.64% 627,388,481 2.465

1 1 12/31/2028 372,855,940 98,330,906 9,497,851 (254,235,952) (7,679,055) 22,925,493 241,695,183 2,466,633,514 15.12% 495,931,135 1.951

1 2 12/31/2029 241,695,183 96,701,427 9,475,797 (253,593,205) (7,793,730) 12,700,591 99,186,062 2,418,675,468 9.99% 352,779,267 1.391

1 3 12/31/2030 99,186,062 93,952,831 9,425,111 (252,100,080) (7,910,490) 1,611,145 INSOLVENT 2,366,922,422 4.19% 196,264,659 0.779

"CY" = current plan year
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

5 

Projection 4 – Future contribution base units increase or decrease at a rate equal to the average annual rate of increase or decrease that the 

plan experienced over the period of years described in Section 6.03 of Revenue Procedure 2016-27 reduced by 1 percentage point 

Based on information supplied by the Fund administrator, the annual rate of change of contribution base units over the last ten years is a 

decrease of 4.45%. The assumed change in contribution base units used in the projection shown below is a 5.45% annual decrease. 

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return As Assumed Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Annual Decrease in Contribution Base Units 5.45%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 114,482,901 9,586,913 (277,763,262) (9,853,710) 126,076,853 1,165,184,781 3,377,856,996 35.60% 1,442,948,043 5.195

1 12/31/2018 1,165,184,781 112,138,524 9,570,693 (238,476,009) (7,136,955) 80,977,295 1,122,258,330 2,703,139,650 43.10% 1,360,734,339 5.706

2 12/31/2019 1,122,258,330 109,809,682 9,497,851 (240,778,124) (7,235,993) 77,015,487 1,070,567,233 2,698,325,363 41.59% 1,311,345,357 5.446

3 12/31/2020 1,070,567,233 107,388,950 9,497,851 (243,018,522) (6,815,865) 72,395,137 1,010,014,784 2,690,197,596 39.80% 1,253,033,306 5.156

4 12/31/2021 1,010,014,784 104,726,552 9,497,851 (245,695,501) (6,918,030) 67,174,564 938,800,220 2,678,270,372 37.71% 1,184,495,721 4.821

5 12/31/2022 938,800,220 101,827,255 9,497,851 (248,108,546) (7,022,280) 61,202,954 856,197,454 2,661,706,302 35.27% 1,104,306,000 4.451

6 12/31/2023 856,197,454 98,952,733 9,497,851 (250,027,980) (7,127,573) 54,494,594 761,987,079 2,640,371,017 32.43% 1,012,015,059 4.048

7 12/31/2024 761,987,079 96,234,637 9,497,851 (251,773,895) (7,234,950) 47,289,074 655,999,796 2,614,426,844 29.15% 907,773,691 3.606

8 12/31/2025 655,999,796 93,582,218 9,497,851 (253,199,347) (7,343,370) 39,542,890 538,080,038 2,583,686,918 25.39% 791,279,385 3.125

9 12/31/2026 538,080,038 91,005,332 9,497,851 (254,130,690) (7,453,875) 31,204,183 408,202,839 2,548,036,800 21.12% 662,333,529 2.606

1 0 12/31/2027 408,202,839 88,500,902 9,497,851 (254,532,541) (7,565,423) 25,342,106 269,445,735 2,507,650,389 16.28% 523,978,276 2.059

1 1 12/31/2028 269,445,735 86,089,519 9,497,851 (254,235,952) (7,679,055) 14,436,849 117,554,947 2,462,799,322 10.94% 371,790,899 1.462

1 2 12/31/2029 117,554,947 83,750,831 9,475,797 (253,593,205) (7,793,730) 2,590,949 INSOLVENT 2,413,945,292 4.87% 205,578,793 0.811

"CY" = current plan year
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 14
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 6.05 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective October 1, 2017

May 15, 2017 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.05 of Revenue Procedure 2016-27

This report provides the information required by Section 6.05 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of October 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2017 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on March 31, 2017. 

In preparing this report including information required by Section 6.05 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department 

of the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.05 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 6.05: 

Other Required Information

Summary 1

Projection of Funded Percentage 2
Revenue Procedure 2016-27 Section 6.05: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.05 of Revenue Procedure 2016-27

1 

Projection of Funded Percentage 

Under Section 6.05 of Revenue Procedure 2016-27, the application must include an illustration, 

prepared on a deterministic basis, of the projected value of plan assets, the accrued liability of the plan 

(calculated using the unit credit funding method), and the funded percentage for each year in the 

extended period. 

Below, we have included a plan-year-by-plan-year deterministic projection of the items required under 

Section 6.05 of Revenue Procedure 2016-27.

The assumptions used in this projection are the same as those used in the projection under Section 

3.02 of Revenue Procedure 2016-27.
Revenue Procedure 2016-27 Section 6.05: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.05 of Revenue Procedure 2016-27

2 

Revenue Procedure 2016-27, Section 6.05: Projection of Funded Percentage

Assumed Investment Return As Assumed Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 10/1/2017 Active Participants 18.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 29.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2017 1,202,655,086 123,070,258 9,586,913 (277,763,262) (9,853,710) 126,559,806 1,174,255,091 3,377,856,996 35.60% 1,452,018,353 5.228

1 12/31/2018 1,174,255,091 126,858,857 9,570,693 (238,476,009) (7,136,955) 82,183,292 1,147,254,970 2,703,299,799 43.44% 1,385,730,979 5.811

2 12/31/2019 1,147,254,970 130,719,066 9,497,851 (240,778,124) (7,235,993) 79,596,344 1,119,054,114 2,698,844,694 42.51% 1,359,832,238 5.648

3 12/31/2020 1,119,054,114 134,556,012 9,497,851 (243,018,522) (6,815,865) 76,870,414 1,090,144,004 2,691,317,129 41.58% 1,333,162,526 5.486

4 12/31/2021 1,090,144,004 138,158,433 9,497,851 (245,695,501) (6,918,030) 74,089,308 1,059,276,065 2,680,277,630 40.67% 1,304,971,566 5.311

5 12/31/2022 1,059,276,065 141,466,836 9,497,851 (248,108,546) (7,022,280) 71,107,825 1,026,217,751 2,664,941,044 39.75% 1,274,326,297 5.136

6 12/31/2023 1,026,217,751 144,824,740 9,497,851 (250,027,980) (7,127,573) 67,943,649 991,328,438 2,645,214,522 38.80% 1,241,356,418 4.965

7 12/31/2024 991,328,438 148,376,864 9,497,851 (251,773,895) (7,234,950) 64,912,535 955,106,843 2,621,306,056 37.82% 1,206,880,738 4.794

8 12/31/2025 955,106,843 152,024,878 9,497,851 (253,199,347) (7,343,370) 62,033,384 918,120,239 2,593,078,198 36.83% 1,171,319,586 4.626

9 12/31/2026 918,120,239 155,773,714 9,497,851 (254,130,690) (7,453,875) 59,331,527 881,138,766 2,560,470,317 35.86% 1,135,269,456 4.467

1 0 12/31/2027 881,138,766 159,643,163 9,497,851 (254,532,541) (7,565,423) 64,853,105 853,034,922 2,523,714,058 34.91% 1,107,567,463 4.351

1 1 12/31/2028 853,034,922 163,658,474 9,497,851 (254,235,952) (7,679,055) 62,670,808 826,947,048 2,483,145,363 34.35% 1,081,183,000 4.253

1 2 12/31/2029 826,947,048 167,800,651 9,475,797 (253,593,205) (7,793,730) 60,750,626 803,587,186 2,439,295,706 33.90% 1,057,180,391 4.169

1 3 12/31/2030 803,587,186 169,935,486 9,425,111 (252,178,782) (7,910,490) 58,920,804 781,779,315 2,392,319,068 33.59% 1,033,958,097 4.100

1 4 12/31/2031 781,779,315 169,217,536 9,251,903 (250,391,848) (8,029,335) 57,193,045 759,020,616 2,342,675,900 33.37% 1,009,412,464 4.031

1 5 12/31/2032 759,020,616 168,551,422 8,949,319 (247,996,289) (8,150,265) 55,488,693 735,863,497 2,290,581,383 33.14% 983,859,786 3.967

1 6 12/31/2033 735,863,497 167,880,805 8,949,319 (244,999,925) (8,272,238) 53,718,471 713,139,930 2,236,464,996 32.90% 958,139,855 3.911

1 7 12/31/2034 713,139,930 167,210,785 4,474,660 (241,243,093) (8,396,295) 51,843,131 687,029,117 2,180,831,654 32.70% 928,272,210 3.848

1 8 12/31/2035 687,029,117 166,608,308 (237,276,718) - (8,522,438) 49,787,651 657,625,921 2,124,424,642 32.34% 894,902,639 3.772

1 9 12/31/2036 657,625,921 166,038,848 (232,642,855) - (8,650,665) 47,615,891 629,987,140 2,067,403,470 31.81% 862,629,995 3.708

2 0 12/31/2037 629,987,140 165,458,003 (227,705,033) - (8,779,935) 45,655,577 604,615,752 2,010,460,517 31.34% 832,320,785 3.655

2 1 12/31/2038 604,615,752 164,915,115 (222,411,062) - (8,911,290) 43,884,452 582,092,967 1,953,931,653 30.94% 804,504,029 3.617

2 2 12/31/2039 582,092,967 164,399,566 (216,851,657) - (9,044,730) 42,288,127 562,884,273 1,898,242,251 30.66% 779,735,930 3.596

2 3 12/31/2040 562,884,273 163,847,735 (211,138,625) - (9,180,255) 41,007,555 547,420,683 1,843,771,092 30.53% 758,559,308 3.593

2 4 12/31/2041 547,420,683 163,284,176 (204,924,912) - (9,317,865) 40,032,904 536,494,986 1,790,779,463 30.57% 741,419,898 3.618

2 5 12/31/2042 536,494,986 162,741,778 (199,132,387) - (9,457,560) 39,390,888 530,037,705 1,739,952,711 30.83% 729,170,092 3.662

2 6 12/31/2043 530,037,705 162,254,844 (193,187,019) - (9,599,340) 39,099,508 528,605,698 1,691,038,066 31.34% 721,792,717 3.736

2 7 12/31/2044 528,605,698 161,762,831 (187,000,395) - (9,743,205) 39,151,433 532,776,362 1,644,388,138 32.15% 719,776,757 3.849

2 8 12/31/2045 532,776,362 161,273,104 (181,074,898) - (9,889,155) 39,673,506 542,758,919 1,600,455,726 33.29% 723,833,817 3.997

2 9 12/31/2046 542,758,919 160,805,268 (175,128,534) - (10,037,190) 40,642,328 559,040,791 1,559,217,116 34.81% 734,169,325 4.192

3 0 12/31/2047 559,040,791 160,359,940 (169,907,897) - (10,187,310) 42,066,664 581,372,188 1,520,943,165 36.76% 751,280,085 4.422

3 1 12/31/2048 581,372,188 159,894,304 (164,783,745) - (10,340,558) 43,949,801 610,091,990 1,485,019,347 39.15% 774,875,735 4.702

3 2 12/31/2049 610,091,990 159,415,154 (159,850,219) - (10,495,890) 46,314,391 645,475,426 1,451,482,700 42.03% 805,325,645 5.038

"CY" = current plan year
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 15
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DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 16
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APPENDIX D

FUNDING IMPROVEMENT PLAN

I. INTRODUCTION

The actuary for the New York State Teamsters Conference Pension and Retirement Fund (the

“Fund” or “Plan”) certified the Plan as being in “Endangered Status” for the Plan Year beginning

January 1, 2008. The schedules that have been adopted by the Trustees are set forth below.

Unless otherwise indicated, all capitalized terms used in these schedules shall have the

definitions and meanings assigned to them in the Plan Document.

II. SCHEDULES OF CONTRIBUTION AND BENEFIT LEVELS

The Funding Improvement Plan includes three schedules for the 2009 Plan Year. One Schedule,

the “Preferred Schedule,” will require annual contribution rate increases, but it will maintain the

current level of benefits. A second schedule, the “Alternative Schedule,” will require lesser

annual contribution rate increases, but a reduction in the rate of future benefit accruals. The third

schedule, the Default Schedule, will require no contribution rate increases but will reduce the

rate of future benefit accruals more than the Alternative Schedule.

The Board of Trustees has the sole and absolute authority and discretion to amend, construe and

apply the provisions of this Funding Improvement Plan including the Schedules. Subject to the

sole discretion of the Trustees, a Schedule is adopted when the Trustees receive substantiation

that a collective bargaining agreement or other agreement requiring contributions to the Fund

(“CBA”) includes terms consistent with the requirements of a Schedule. In general, the Trustees

will consider the Bargaining Parties to have adopted a particular Schedule, and will consider the

terms of a CBA to be consistent with the Funding Improvement Plan, when a Schedule is

adopted in accordance with the Schedule’s requirements. With these requirements in mind, the

Trustees hereby provide the following Schedules to the Bargaining Parties.

A. Preferred Schedule

The Preferred Schedule will require a Contributing Employer to make certain annual

contribution rate increases. However, if Bargaining Parties agree to the Preferred Schedule, the

current level of benefits will be maintained.

1. Contributions

For CBAs that expire in 2009 or later, the Funding Improvement Plan calls for five percent (5%)

contribution increases annually to comply with the Preferred Schedule. The five percent (5%)

increase must be negotiated in all future renewal agreements as well as all prior renewal

agreements that had not been executed as of January 1, 2009.

Compliance with the Preferred Schedule requires annually compounded contribution rate

increases effective immediately after the expiration of the CBA and each agreement anniversary

date during the term of the new CBA. The failure of a Contributing Employer to contribute at

the increased contribution rate will constitute a delinquency. Contribution rates should be
DB1/ 88848832.1 2

increased for a plan year no later than the allocation, anniversary or re-opener date specified in

the Bargaining Parties’ CBA.

2. Benefits

For Participants whose Contributing Employers are in compliance with the Preferred Schedule,

there will be no change in benefit formulas. In other words, under the Preferred Schedule,

Participants continue to accrue benefits at their current levels.

B. Alternative Schedule

The Alternative Schedule will require a Contributing Employer to make certain annual

contribution rate increases, although less than those required under the Preferred Schedule. In

addition, the rate of future benefit accruals will be reduced under the Alternative Schedule,

although these reductions are less than those under the Default Schedule.

1. Contributions

For CBAs that expire in 2009 or later, the Funding Improvement Plan requires two percent (2%)

contribution increases annually to comply with the Alternative Schedule. The two percent (2%)

increase must be negotiated in all future renewal agreements as well as all prior renewal

agreements that had not been executed as of January 1, 2009.

Compliance with the Alternative Schedule requires annually compounded contribution rate

increases effective immediately after the expiration of the CBA and each agreement anniversary

date during the term of the new CBA. The failure of a Contributing Employer to contribute at

the increased contribution rate will constitute a delinquency. Contribution rates should be

increased for a plan year no later than the allocation, anniversary or re-opener date specified in

the Bargaining Parties’ CBA.

2. Benefits

For Participants whose Contributing Employers agree to comply with the Alternative Schedule,

future benefits will accrue at a rate of nine-tenths of one percent (0.9%) of the Employer

Contributions required to be made on the Participant’s behalf for the year.

C. Default Schedule

If Bargaining Parties agree to the Default Schedule, or if Bargaining Parties fail to agree to a

Schedule within the time period prescribed by Section 305(c)(3)(C) of the Employee Retirement

Income Security Act of 1974, as amended (“ERISA”) and the Default Schedule is imposed by

law, there will be no contribution increases but the Default Schedule includes reductions in the

rate of future benefit accruals.

1. Contributions

Compliance with the Default Schedule requires no additional contribution rate increases.
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2. Future Benefit Accruals

For Participants whose Contributing Employers agree to comply with the Default Schedule, or

for whom a Default Schedule is imposed by law, future benefits will accrue at a rate of fivetenths of one percent (0.5%) of the Employer Contributions required to be made on the

Participant’s behalf for the year.

D. Annual Review of Funding Improvement Plan and Schedules

The Trustees will review the Funding Improvement Plan and its Schedules annually with the

assistance of the Plan’s actuary, as they find necessary. If, for example, the Plan’s actual

experience does not reflect the assumptions used to develop the Funding Improvement Plan and

its Schedules, the Trustees may amend or modify the Funding Improvement Plan and/or its

Schedules, based on the advice of the Plan’s actuary, to reflect the Plan’s experience over the

preceding Plan Year(s). However, if the Bargaining Parties have adopted a CBA that complies

with one of the Schedules, the contribution rate requirements in the Schedules will continue for

the duration of that CBA.

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