BAC 7:1
BAC 7:2
BAC 7:3
BAC 7:4
BAC 7:5
BAC 7:6
BAC 7:7
BAC 7:8

BAC 7:10
BAC 7:11
BAC 7:12
BAC 7:13
BAC 7:14
BAC 7:15
BAC 7:16
BAC 7:17



APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 04 

Actuary’s Certification of Critical and Declining Status 

The Actuary’s certification of critical and declining status is attached as Exhibit 04A (BAC 7:22). 

Supporting illustration is attached as Exhibit 04B (BAC 7:25). 

BAC 7:21
July 29, 2019 

Board of Trustees

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan 

Austintown, OH 

Re: 2019 Actuarial Certification under the Pension Protection Act

Dear Trustees:

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

section 432, with respect to the funded status of the Bricklayers and Allied Craftsman Local No. 

7 Pension Plan. 

Identifying Information 

Plan Name: Bricklayers and Allied Craftsman Local No. 7 Pension Plan 

EIN/Plan #: 34-6666798/001 

Plan year of Certification: year beginning May 1, 2019 

Plan Sponsor: Board of Trustees of Bricklayers and Allied Craftsman Local No. 7 Pension Plan 

Sponsor Address: 33 Fitch Blvd Austintown, OH 44515 

Sponsor Telephone: (248) 813-9800 

Enrolled Actuary Name: Kathryn A. Garrity, FSA, EA, MAAA 

Enrollment Number: 17-05379 

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

Actuary Telephone: (317) 580-8688 

Certification of Plan Status 

I certify that the above-named Plan is in the following status(es) as of May 1, 2019 (all that apply 

are checked):

Safe--Neither Endangered nor Critical Status

Safe--Neither Endangered nor Critical Status

Due to Special Rule

Endangered Status 

Seriously Endangered Status

Projected to be in Critical Status within 5 years

Critical Status

Critical and Declining Status X

EXHIBIT 04A BAC 7:22
This certification is based on the following results: 

• Projected funded ratio as of May 1, 2019: 24.4%

• Previously emerged from critical status using IRC

Section 432(e)(4)(B)(ii)(I) special emergence

rule?: No

• First projected deficiency: Existing deficiency, FSA projected

to remain negative as of April 30, 

2020

• At least 8 years of benefit payments in plan

assets?: No

• Plan year of projected insolvency: 2022-23 plan year

• Ratio of inactive to active participants: 2.835

Certification of Scheduled Progress

I certify that the above-named Plan has made scheduled progress as of May 1, 2019 as outlined in 

the 2008 rehabilitation plan, which was updated on December 8, 2017. Projections indicate that 

the Plan is not projected to emerge from Critical status at the end of the rehabilitation period as 

specified in the rehabilitation plan. This rehabilitation plan, however, includes the use of the 

“exhaustion of all reasonable measures” clause of IRC Section 432(e)(3)(A)(ii). Therefore, we 

interpret scheduled progress for this Plan to mean continuing to use all reasonable measures to 

forestall insolvency and it is my understanding that such consideration was made in the past year. 

Basis for Result

The certification utilizes the assumptions, methods, plan provisions and demographic data as 

disclosed in the May 1, 2018 actuarial valuation report with the following exceptions:

• Based on the April 30, 2019 unaudited financial statements provided by the plan

administrator, the asset return for the 2018-19 plan year is assumed to be 3.94%. We also

updated the contributions, benefit payments, and expenses for the 2018-19 plan year based

on these financial statements.

• For the period May 1, 2019 through April 30, 2028, plan assets were assumed to return

6.00% per year, with 7.00% per year assumed thereafter.]

EXHIBIT 04A BAC 7:23
• No adjustments were made to the contribution rate assumption.

• Based on information provided by the Trustees regarding projection of future industry

activity, the following hours were assumed: 90,000 for the plan year beginning in 2019;

and for each plan year thereafter. For the 2018-2019 plan year, our projections used actual

hours of 110,535.

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

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

certification is intended to be in good faith compliance with the necessary disclosures for 

certification and represents my best estimate of the Plan’s funded position. We are available to 

answer questions regarding this certification. 

Sincerely,

Kathryn A. Garrity, FSA, EA, MAAA

Chief Actuary

EA number: 17-05379 

Date of Signature: ___7/29/2019 

cc: Secretary of the Treasury

Susan Cunningham, BeneSys

Timothy P. Piatt, Fund Counsel 

David Eyster, Fund Auditor 

m:\docs\brick7\db 28244\valuations\20190501\ppa\20190501 ppa certification-final.docx

EXHIBIT 04A BAC 7:24
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist Item #5: based on 2019 PPA Certifcation Assumptions no Suspension or Partition

Plan Year End Interest Rate

Market Value of 

Asset BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

4/30/2020 6.00% 9,531,294 612,000 2,816,588 310,938 33,416 129,570 - 120,000 - 488,044 4/30/2021 6.00% 7,220,826 612,000 2,736,651 297,167 66,907 216,296 - 120,000 - 348,621 4/30/2022 6.00% 4,744,426 612,000 2,644,046 281,976 104,904 301,308 - 120,000 - 199,580 4/30/2023 6.00% 2,103,772 612,000 2,550,064 266,626 154,067 389,976 - 120,000 - 40,286 

Benefit Payments by 5/1/19 Status

EXHIBIT 04B

BAC 7:25
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 05 

Actuary’s Certification that Plan will Avoid Insolvency 

This Certification and the attached Exhibit 05A (BAC 7:28) has been prepared by United Actuarial 

Services, Inc. at the request of the Board of Trustees of the Bricklayers and Allied Craftsmen Local 

No. 7 Pension Plan. United Actuarial Services, Inc. certifies under IRC §432(e)(9)(C)(i) that the 

Plan is projected to avoid insolvency within the meaning of IRC §418E, taking into account the 

proposed benefit suspension effective October 1, 2020 and assuming such suspension continues 

indefinitely. This certification is also intended to comply with regulation §1.432(e)(9)-1 and 

Revenue Procedure 2017-43. A summary of the proposed benefit suspension can be found in the 

Application, Section 2, page BAC 7:4. Exhibit 18 (BAC 7:107) describes the actuarial 

assumptions and methodology used in the reports filed with this application, as required under 

Revenue Procedure 2017-43, Section 4.02(3). 

This certification is based on the May 1, 2019 actuarial valuation report, Exhibit 32B (BAC 7:410), 

and the May 1, 2019 actuarial certification, Exhibit 04A (BAC 7:22). The Market Value of assets 

as of September 30, 2019 (the start of the “initial period” as defined in Revenue Procedure 2017-

43, Section 3.02, as required under regulation §1.432(e)(9)-1(d)(5)(iv)(C)(1)) was furnished by 

BeneSys, Inc. 

This certification is intended to demonstrate, as required under IRC §432(e)(9) and regulation 

§1.432(e)(9)-1, that the proposed benefit suspensions are reasonably projected to avoid insolvency

as described in IRC §418E. The results may not be appropriate for any other purpose.

Future actuarial measurements may differ significantly from the current measurements presented 

in this certification due to factors such as the following: plan experience differing from that 

anticipated by the economic or demographic assumptions, changes in economic or demographic 

assumptions, or changes in plan provisions. 

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

revision based on future regulatory or other guidance.

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

None of the comments made herein should be construed as constituting such advice. We are not 

aware of any direct or material indirect financial interest or relationship that could create a conflict 

of interest that would impair the objectivity of our work. 

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

the American Academy of Actuaries to render the actuarial opinion contained herein. To the best 

of my knowledge, the information supplied is complete and accurate. As required by IRC 

§432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan

sponsor. In my opinion, the projections are based on reasonable actuarial estimates, assumptions

and methods that (other than projected industry activity) offer my best estimate of anticipated

experience under the Plan.

BAC 7:26
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Certified by: 

Kathryn A. Garrity, FSA, EA, MAAA 

Enrollment Number: 17-05379 

11590 N. Meridian St., Suite 610 

Carmel, IN 46032 

Phone: 317-580-8688 

BAC 7:27
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist Item 6: with Suspension and Partition

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY

4/30/2020 5.75% 8,658,473 411,413 1,548,871 170,988 18,376 71,252 45,000 250,000 0 449,186 7,414,5854/30/2021 5.75% 7,414,585 704,735 1,707,165 202,103 27,916 146,391 0 175,000 0 381,666 6,242,411

4/30/2022 5.75% 6,242,411 702,451 1,026,660 135,827 4,167 149,548 0 62,500 0 339,496 5,905,656

4/30/2023 5.75% 5,905,656 705,549 968,989 125,206 5,901 191,945 0 66,495 0 320,802 5,573,471

4/30/2024 5.75% 5,573,471 702,505 910,783 114,547 7,908 237,409 0 70,644 0 302,109 5,236,794

4/30/2025 5.75% 5,236,794 702,474 852,478 103,953 9,679 259,767 0 74,952 0 283,913 4,922,353

4/30/2026 5.75% 4,922,353 700,053 794,526 93,538 11,217 280,258 3 79,424 0 266,967 4,630,407

4/30/2027 5.75% 4,630,407 699,253 737,421 83,415 13,046 300,880 11 84,067 0 251,310 4,362,1294/30/2028 5.75% 4,362,129 698,432 681,642 73,699 14,884 312,471 845 88,886 0 237,195 4,125,3294/30/2029 5.75% 4,125,329 698,256 627,651 64,492 16,443 330,054 1,715 93,887 0 224,672 3,914,015

4/30/2030 6.75% 3,914,015 698,291 578,660 56,151 17,998 342,480 2,775 99,077 0 250,735 3,765,9004/30/2031 6.75% 3,765,900 700,084 529,189 48,159 19,596 368,119 4,286 104,461 0 241,585 3,633,759

4/30/2032 6.75% 3,633,759 699,945 482,582 40,881 21,222 390,716 5,915 110,047 0 233,418 3,515,7594/30/2033 6.75% 3,515,759 697,938 439,056 34,341 22,386 399,882 8,121 115,841 0 226,457 3,420,5274/30/2034 6.75% 3,420,527 697,446 398,731 28,550 23,645 420,433 10,464 121,850 0 220,550 3,334,851

4/30/2035 6.75% 3,334,851 697,552 361,625 23,496 24,920 430,454 13,075 128,082 0 215,514 3,266,2654/30/2036 6.75% 3,266,265 696,900 327,673 19,147 25,973 443,239 16,105 134,544 0 211,368 3,207,8524/30/2037 6.75% 3,207,852 697,245 296,758 15,458 26,653 449,853 19,355 141,243 0 208,022 3,163,7994/30/2038 6.75% 3,163,799 695,976 268,715 12,372 27,105 449,916 23,138 148,189 0 205,677 3,136,0174/30/2039 6.75% 3,136,017 695,609 243,338 9,823 27,720 458,421 27,173 155,388 0 204,045 3,113,808

4/30/2040 6.75% 3,113,808 695,610 220,363 7,745 28,325 463,436 31,759 162,850 0 202,795 3,097,7344/30/2041 6.75% 3,097,734 695,597 199,531 6,072 28,434 458,290 36,825 170,584 0 202,207 3,095,8024/30/2042 6.75% 3,095,802 695,973 180,586 4,740 28,548 453,397 42,247 178,597 0 202,482 3,106,1434/30/2043 6.75% 3,106,143 696,754 163,290 3,690 28,625 450,090 48,465 186,900 0 203,444 3,125,2814/30/2044 6.75% 3,125,281 696,846 147,414 2,870 28,820 449,551 54,887 195,502 0 204,807 3,147,8904/30/2045 6.75% 3,147,890 696,935 132,752 2,231 28,483 440,016 61,896 204,413 0 206,649 3,181,6834/30/2046 6.75% 3,181,683 697,081 119,131 1,735 28,002 430,812 69,319 213,643 0 209,176 3,225,2984/30/2047 6.75% 3,225,298 697,703 106,419 1,349 27,411 423,859 76,883 223,204 0 212,260 3,276,1364/30/2048 6.75% 3,276,136 698,265 94,514 1,050 26,567 411,320 84,962 228,534 0 216,121 3,343,575

4/30/2049 6.75% 3,343,575 698,852 83,354 816 25,715 401,052 93,170 233,997 0 220,992 3,425,315

4/30/2050 6.75% 3,425,315 698,885 72,913 633 24,825 387,788 102,489 239,597 0 226,843 3,522,7984/30/2051 6.75% 3,522,798 698,850 63,200 487 23,853 372,081 112,183 245,337 0 233,797 3,638,3044/30/2052 6.75% 3,638,304 698,922 54,240 374 22,805 356,778 122,188 251,220 0 241,917 3,771,5384/30/2053 6.75% 3,771,538 698,889 46,053 283 21,789 342,158 133,060 257,251 0 251,146 3,920,9794/30/2054 6.75% 3,920,979 698,904 38,653 212 20,655 325,529 143,987 263,432 0 261,508 4,088,9234/30/2055 6.75% 4,088,923 698,856 32,044 157 19,511 309,923 156,823 269,768 0 272,986 4,272,5394/30/2056 6.75% 4,272,539 698,877 26,209 113 18,351 293,755 170,031 276,262 0 285,499 4,472,1944/30/2057 6.75% 4,472,194 698,919 21,129 81 17,184 276,647 183,576 282,919 0 299,085 4,688,6624/30/2058 6.75% 4,688,662 698,905 16,775 56 16,037 260,554 198,254 289,742 0 313,700 4,919,8494/30/2059 6.75% 4,919,849 698,849 13,095 38 14,880 243,868 212,741 296,735 0 329,305 5,166,6464/30/2060 6.75% 5,166,646 698,806 10,040 26 13,739 227,435 227,395 303,903 0 345,923 5,428,8374/30/2061 6.75% 5,428,837 698,739 7,552 17 12,623 211,500 242,215 311,251 0 363,530 5,705,9484/30/2062 6.75% 5,705,948 698,672 5,565 11 11,533 196,004 256,766 318,782 0 382,114 5,998,0734/30/2063 6.75% 5,998,073 698,605 4,017 6 10,493 181,079 271,428 326,502 0 401,666 6,304,819

4/30/2064 6.75% 6,304,819 698,538 2,838 3 9,492 166,772 286,013 334,414 0 422,167 6,625,992

4/30/2065 6.75% 6,625,992 698,470 1,960 2 8,534 153,121 300,495 342,525 0 443,604 6,961,429

4/30/2066 6.75% 6,961,429 698,403 1,324 2 7,635 140,166 315,096 350,838 0 465,959 7,310,730

4/30/2067 6.75% 7,310,730 698,336 875 0 6,775 127,909 329,469 359,359 0 489,220 7,673,899

4/30/2068 6.75% 7,673,899 698,269 565 0 5,982 116,369 343,813 368,093 0 513,380 8,050,726

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) Intial BOY Market Value of assets is MVA at 9/30/2019 based on unaudited financial information provided by the fund administrator.

3) Benefit Payments, Admin Expenses, Contributions, and Investment Income shown in plan year ending 4/30/2020 have been prorated to reflect only the period from 10/1/2019 to 4/30/2020.4) Actives are not partitioned. Terminated Vesteds are fully partitioned, Retiree (healthy & disabled) and Beneficiary liabilities are partitioned. As shown in listing attached for 4233,6(f)

Benefit Payments by 5/1/19 Status

EXHIBIT 05A

BAC 7:28
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist #7: Determination of Projected Insolvency (no partition or suspension)

Plan Year End

Interest 

Rate

Market Value of 

Asset BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

M

4/30/2020 5.75% 8,658,473 408,964 1,548,871 170,988 18,376 71,252 45,000 250,000 - 448,660 4/30/2021 5.75% 7,411,610 668,813 2,580,403 280,200 63,087 203,947 - 250,000 - 347,554 4/30/2022 5.75% 5,050,340 635,716 2,502,484 266,879 99,287 285,176 - 115,000 - 214,002 4/30/2023 5.75% 2,631,232 603,681 2,421,925 253,228 146,325 370,380 - 117,875 - 72,847 

Notes: One time refund of past reciprocity entered under new entrants in PYE 4/30/20 to show separately

All values for PYE 4/30/20 are for short year starting 10/1/19 and beginning market value is at that date

Benefit Payments by 5/1/19 Status

EXHIBIT 06

BAC 7:29
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 07 

Demonstration of Suspension Limitations 

The following exhibits are attached which demonstrate that the limitations on individual 

suspensions are satisfied: 

Exhibit 07A (BAC 7:31) – Retiree Under 75 without Contingent Beneficiary, No Late Retirement, 

110% of PBGC Guarantee 

Exhibit 07B (BAC 7:32) – Retiree Under 75 without Contingent Beneficiary, Late Retirement, 

110% of PBGC Guarantee 

Exhibit 07C (BAC 7:33) – Retiree Under 75 with Contingent Beneficiary, No Late Retirement, 

110% of PBGC Guarantee 

Exhibit 07D (BAC 7:34) – Retire Under 75 with Contingent Beneficiary, Late Retirement, 110% 

of PBGC Guarantee 

Exhibit 07E (BAC 7:35 ) – Beneficiary Under 75, 110% of PBGC Guarantee 

Exhibit 07F (BAC 7:36) – Inactive Vested, No Late Retirement, 110% of PBGC Guarantee 

Exhibit 07G (BAC 7:37) – Inactive Vested, Late Retirement, 110% of PBGC Guarantee 

Exhibit 07H (BAC 7:38) – Alternate Payee Not in Payment, 110% of PBGC Guarantee 

Exhibit 07I (BAC 7:39) – Alternate Payee in Payment Under 75, 110% of PBGC Guarantee 

Exhibit 07J (BAC 7:40) – Retiree Age 75-80 without Contingent Beneficiary, Age 75-79 and 

110% of PBGC Guarantee 

Exhibit 07K (BAC 7:41) – Retiree Age 75-80 without Contingent Beneficiary, Late Retirement, 

Age 75-79 and 110% of PBGC Guarantee 

Exhibit 07L (BAC 7:42) – Retiree Age 75-80 with Contingent Beneficiary, No Late Retirement, 

Age 75-79 and 110% of PBGC Guarantee 

Exhibit 07M (BAC 7:43) – Retiree Age 75-80 with Contingent Beneficiary, Late Retirement, Age 

75-79 and 110% of PBGC Guarantee

Exhibit 07N (BAC 7:44) – Beneficiary Age 75-80, Age 75-79 and 110% of PBGC Guarantee

Exhibit 07O (BAC 7:45) – Disability

Exhibit 07P (BAC 7:46) – Retiree Over Age 80 without Contingent Beneficiary, No Late

Retirement, Over Age 80 and 110% of PBGC Guarantee

Exhibit 07Q (BAC 7:47) – Beneficiary Over Age 80, Over Age 80 and 110% of PBGC Guarantee

BAC 7:30
Exhibit 07A

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #1

Participant Category: Retiree Under Age 75 without a contingent beneficiary, No Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement

Age at retirement date 56 years 0 months

Age at suspension date 64 years 2 months

Current monthly benefit

Late retirement factor (LRD) applied to current benefit

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit, without regard to LRF

Current monthly benefit, without regard to LRF/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit? No

60

983.12

Yes

No

983.12

983.12

25.00

life annuity

1490.95

983.12

893.75

35.75

59.64

8/6/1956

9/1/2012

1490.95

1.00000

2581.65

BAC 7:31
Exhibit 07B

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #2

Participant Category: Retiree Under Age 75 without a contingent beneficiary, Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement

Age at retirement date 63 years 0 months

Age at suspension date 65 years 3 months

Current monthly benefit

Late retirement factor (LRD) applied to current benefit

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit, without regard to LRF

Current monthly benefit, without regard to LRF/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

3234.81

8/1/2018

7/25/1955

1101.10

1001.00

35.75

104.08

2914.35

life annuity

28.00

3008.64

1.10996

1101.10

No

Yes

No

1101.10

1101.10

60

BAC 7:32
Exhibit 07C

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #3

Participant Category: Retiree Under Age 75 with a contingent beneficiary, No Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 57 years 4 months

Age at suspension date 62 years 9 months

Spouse age at retirement date 56 years 1 months

Spouse age at suspension date 61 years 6 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Monthly benefit/ Benefit Credits 79.67 64.49

PBGC guaranteed accrual rate 35.75 35.75

PBGC guaranteed benefit, current benefit 715.00 715 00

110% of PBGC guaranteed benefit, current benefit 786.50 786 50

Suspension benefit prior to age based limitation 786.5 786.5

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 60 60

Benefits after age-based limitation 786.50 786 50

Final Monthly Benefit under Proposed Suspension 786.50 786 50

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

786.50

No

Yes

No

joint & 100% w pop-up

Current Benefit

64.49

35.75

715.00

786.50

1/30/1958

4/12/1959

6/1/2015

1289.75

1593.35

1289.75

1.0000

1289.75

1593.35

1289.75

2325.61

20.00

786.50

786.5

60

BAC 7:33
Exhibit 07D

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #4

Participant Category: Retiree Under Age 75 with a contingent beneficiary, Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 69 years 11 months

Age at suspension date 72 years 9 months

Spouse age at retirement date 65 years 7 months

Spouse age at suspension date 68 years 5 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Current monthly benefit, without regard to LRF/ Benefit Credits 43.66 29.60

PBGC guaranteed accrual rate 35 50 24.95

PBGC guaranteed benefit, current benefit 603.45 424.18

110% of PBGC guaranteed benefit, current benefit 663.79 466 59

Suspension benefit prior to age based limitation 663.79 466 59

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 60 60

Benefits after age-based limitation 663.79 466 59

Final Monthly Benefit under Proposed Suspension 663.79 466 59

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

Yes

No

joint & 100% w pop-up

Current Benefit

29.60

24.95

424.18

466.59

466.59

60

466.59

466.59

No

17.00

1/21/1948

5/6/1952

1/1/2018

904.85

1334.63

904.85

1.7981

503.24

742.26

503.24

778.72

BAC 7:34
Exhibit 07E

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #5

Participant Category: Beneficiary Under Age 75

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement (member)

Age at retirement date 64 years 6 months

Age at suspension date 68 years 1 months

Current monthly benefit

Total accrued benefit payable at normal retirement age (member)

Total Benefit Credits

Form of pension (original)

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

1140.42

Yes

No

9/16/1952

4/1/2017

2196.33

3120.36

No

29.00

joint & 100%

75.74

35.75

1036.75

1140.42

1140.42

60

1140.42

BAC 7:35
Exhibit 07F

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #6

Participant Category: Inactive vested, No Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Age at suspension date 44 years 7 months

Total accrued benefit payable at normal retirement age

Late Retirement factor

Total accrued benefit payable at assumed age 62

Total Benefit Credits

Calculation of 110% of PBGC Guarantee at Assumed Retirement Age of 62

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

110% of PBGC guaranteed limit?

35.75

1.00000

3/19/1976

367.39

367.39

8.00

45.92

286.00

314.60

314.60

Yes

This calculation excludes any reductions in the participant's accrued benefit for pre-retirement death benefit coverage.

BAC 7:36
Exhibit 07G

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #7

Participant Category: Inactive Vested, Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Age at suspension date 69 years 6 months

Total accrued benefit payable at normal retirement age

Late retirement factor for assumed age 70 4/12 late retirement

Total accrued benefit payable at assumed age 70 4/12 late

Total accrued benefit payable at assumed age 70 4/12 no LRF

Total Benefit Credits

Calculation of 110% of PBGC Guarantee at Assumed Retirement Age of 65

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

110% of PBGC guaranteed limit?

4/24/1951

321.87

227.37

27.11

208.76

227.37

1.41562

7.00

Yes

This calculation excludes any reductions in the participant's accrued benefit for pre-retirement death benefit coverage.

32.48

189.78

208.76

BAC 7:37
Exhibit 07H

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #8

Participant Category: Alternate Payee not in Payment

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Age at suspension date 48 years 6 months

Total accrued benefit payable at normal retirement age*

Total Benefit Credits

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

110% of PBGC guaranteed limit?

* This amount already has QPSA of 3.00% taken into account.

* This amount already has the additional early retirement adjustment AP age of 88.17% taken into account. 

214.32

214.32

Yes

This calculation excludes any reductions in the participant's accrued benefit for pre-retirement death benefit coverage. Service and benefit

amounts shown are after adjustment for QDRO.

194.84

4/25/1972

5.45

52.77

35.75

287.58

BAC 7:38
Exhibit 07I

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #9

Participant Category: Alternate Payee in Payment Under Age 75

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement

Age at retirement date 51 years 4 months

Age at suspension date 65 years 5 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

Service and Benefit amounts shown are portion attributable to AP only

61.93

5 Year Certain & Continuous

60

279.21

279.21

253.83

35.75

No

Yes

No

279.21

279.21

7.10

691.93

439.67

10/1/2006

5/9/1955

BAC 7:39
Exhibit 07J

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #10

Participant Category: Retiree Age 75-80 without contingent beneficiary, No Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement

Age at retirement date 58 years 5 months

Age at suspension date 76 years 8 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit, current benefit

110% of PBGC guaranteed benefit, current benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

2/3/1944

8/1/2002

164.53

191.91

12.00

Yes

1.0000

164.53

156.40

164.53

164.53

40

164.53

164.53

13.03

joint & 75%

13.71

No

Yes

BAC 7:40
Exhibit 07K

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #11

Participant Category: Retiree Age 75-80 without contingent beneficiary, Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement

Age at retirement date 69 years 1 months

Age at suspension date 75 years 4 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit, without regard to LRF/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit, current benefit

110% of PBGC guaranteed benefit, current benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

51.75

6/16/1945

8/1/2014

87.91

54.67

1.6180

54.33

4.00

Life only

13.58

12.94

Yes

Yes

54.33

54.33

56

56.66

56.66

No

BAC 7:41
Exhibit 07L

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #12

Participant Category: Retiree Age 75-80 with contingent beneficiary, No Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 62 years 0 months

Age at suspension date 76 years 6 months

Spouse age at retirement date 59 years 0 months

Spouse age at suspension date 73 years 6 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Monthly benefit/ Benefit Credits 119.01 51 32

PBGC guaranteed accrual rate 35.75 35.75

PBGC guaranteed benefit, current benefit 1036.75 1036.75

110% of PBGC guaranteed benefit, current benefit 1140.42 1140.42

Suspension benefit prior to age based limitation 1140.42 1140.42

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 42 42

Benefits after age-based limitation 1833.71 1244.74

Final Monthly Benefit under Proposed Suspension 1833.71 1244.74

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit? Yes

1140.42

42

1691.17

1691.17

No

Yes

1140.42

1.0000

2976.27

3451.39

1488.14

3460.82

29.00

joint & 50% w pop-up

Current Benefit

102.63

35.75

1036.75

1488.14

4/24/1944

4/9/1947

5/1/2006

2976.27

3451.39

BAC 7:42
Exhibit 07M

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #13

Participant Category: Retiree Age 75-80 with contingent beneficiary, Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 65 years 9 months

Age at suspension date 77 years 7 months

Spouse age at retirement date 62 years 4 months

Spouse age at suspension date 74 years 2 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Current monthly benefit, without regard to LRF/ Benefit Credits 69.53 49.74

PBGC guaranteed accrual rate 35.75 35.75

PBGC guaranteed benefit, current benefit 178.75 178.75

110% of PBGC guaranteed benefit, current benefit 196.62 196.62

Suspension benefit prior to age based limitation 196.62 196.62

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 29 29

Benefits after age-based limitation 277.91 225.85

Final Monthly Benefit under Proposed Suspension 277.91 225.85

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit? Yes

196.62

29

225.85

225.85

No

Yes

196.62

1.0181

248.70

347.67

248.70

345.41

5.00

joint & 100% w pop-up

Current Benefit

49.74

35.75

178.75

253.19

3/17/1943

8/20/1946

1/1/2009

253.19

353.95

BAC 7:43
Exhibit 07N

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #14

Participant Category: Beneficiary Age 75-80

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement (member)

Age at retirement date 60 years 1 months

Age at suspension date 75 years 9 months

Current monthly benefit

Total accrued benefit payable at normal retirement age (member)

Total Benefit Credits

Form of pension (original)

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

135.33

131.74

135.33

3/1/2005

1/11/1945

11.98

12.30

joint & 100%

11.00

289.54

51

135.33

Yes

Yes

No

135.33

135.33

BAC 7:44
Exhibit 07O

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #15

Participant Category: Disability

Suspension Limitation: Disability

Date of birth

Date of retirement (conversion from disablity)

Age at retirement date 57 years 11 months

Age at suspension date 62 years 2 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Disability based benefit

Total Benefit Credits

Type of pension

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

35.75

80.37

lifetime annuity

Disability

8/7/1958

16.00

1273.02

1818.76

1285.95

8/1/2016

629.20

572.00

no

no

Yes

572.00

60

1273.02

BAC 7:45
Exhibit 07P

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #16

Participant Category: Retiree Over Age 80 without contingent beneficiary, No Late Retirement

Suspension Limitation: Over Age 80 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement

Age at retirement date 60 years 3 months

Age at suspension date 85 years 10 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit, current benefit

110% of PBGC guaranteed benefit, current benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

215.20

12/3/1934

4/1/1995

246.61

n/a

1.0000

246.61

11.00

Life only

22.42

19.56

Yes

Yes

236.73

236.73

0

246.61

246.61

No

BAC 7:46
Exhibit 07Q

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #17

Participant Category: Beneficiary Over Age 80

Suspension Limitation: Over Age 80 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement (member)

Age at retirement date 61 years 6 months

Age at suspension date 88 years 4 months

Current monthly benefit

Total accrued benefit payable at normal retirement age (member)

Total Benefit Credits

Form of pension (original)

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

0

6/16/1932

1/1/1994

289.65

561.35

13.00

Life only

22.28

19.46

252.98

278.29

278.29

289.65

289.65

No

Yes

Yes

BAC 7:47
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 08 

Demonstration of Insolvency Avoidance 

This application filed on behalf of the Pension Plan includes an actuarial certification of plan 

solvency under ERISA § 305(e)(9)(c)(i) and IRC Section 432(e)(9)(C)(i) as of the effective date 

of the proposed benefit suspension, which is October 1, 2020. See Exhibits 05 and 05A (BAC 

7:26 and BAC 7:28 respectively). 

Exhibit 08A (BAC 7:49) provides an illustration based on the deterministic basis showing that the 

proposed suspension is reasonably estimated to avoid insolvency throughout the extended period. 

This illustration provides the market value and solvency ratio for Plan Years ending April 30, 2020 

through April 30, 2068. 

Exhibit 18 (BAC 7:107) describes the actuarial assumptions and methodology used in the reports 

filed with this application, as required under Revenue Procedure 2017-43, Section 4.02(3). 

BAC 7:48
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist Item 9: with Suspension and Partition

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY

4/30/2020 5.75% 8,658,473 411,413 1,548,871 170,988 18,376 71,252 45,000 250,000 0 449,186 7,414,5854/30/2021 5.75% 7,414,585 704,735 1,707,165 202,103 27,916 146,391 0 175,000 0 381,666 6,242,411

4/30/2022 5.75% 6,242,411 702,451 1,026,660 135,827 4,167 149,548 0 62,500 0 339,496 5,905,656

4/30/2023 5.75% 5,905,656 705,549 968,989 125,206 5,901 191,945 0 66,495 0 320,802 5,573,471

4/30/2024 5.75% 5,573,471 702,505 910,783 114,547 7,908 237,409 0 70,644 0 302,109 5,236,794

4/30/2025 5.75% 5,236,794 702,474 852,478 103,953 9,679 259,767 0 74,952 0 283,913 4,922,353

4/30/2026 5.75% 4,922,353 700,053 794,526 93,538 11,217 280,258 3 79,424 0 266,967 4,630,407

4/30/2027 5.75% 4,630,407 699,253 737,421 83,415 13,046 300,880 11 84,067 0 251,310 4,362,1294/30/2028 5.75% 4,362,129 698,432 681,642 73,699 14,884 312,471 845 88,886 0 237,195 4,125,3294/30/2029 5.75% 4,125,329 698,256 627,651 64,492 16,443 330,054 1,715 93,887 0 224,672 3,914,015

4/30/2030 6.75% 3,914,015 698,291 578,660 56,151 17,998 342,480 2,775 99,077 0 250,735 3,765,9004/30/2031 6.75% 3,765,900 700,084 529,189 48,159 19,596 368,119 4,286 104,461 0 241,585 3,633,759

4/30/2032 6.75% 3,633,759 699,945 482,582 40,881 21,222 390,716 5,915 110,047 0 233,418 3,515,7594/30/2033 6.75% 3,515,759 697,938 439,056 34,341 22,386 399,882 8,121 115,841 0 226,457 3,420,5274/30/2034 6.75% 3,420,527 697,446 398,731 28,550 23,645 420,433 10,464 121,850 0 220,550 3,334,851

4/30/2035 6.75% 3,334,851 697,552 361,625 23,496 24,920 430,454 13,075 128,082 0 215,514 3,266,2654/30/2036 6.75% 3,266,265 696,900 327,673 19,147 25,973 443,239 16,105 134,544 0 211,368 3,207,8524/30/2037 6.75% 3,207,852 697,245 296,758 15,458 26,653 449,853 19,355 141,243 0 208,022 3,163,7994/30/2038 6.75% 3,163,799 695,976 268,715 12,372 27,105 449,916 23,138 148,189 0 205,677 3,136,0174/30/2039 6.75% 3,136,017 695,609 243,338 9,823 27,720 458,421 27,173 155,388 0 204,045 3,113,808

4/30/2040 6.75% 3,113,808 695,610 220,363 7,745 28,325 463,436 31,759 162,850 0 202,795 3,097,7344/30/2041 6.75% 3,097,734 695,597 199,531 6,072 28,434 458,290 36,825 170,584 0 202,207 3,095,8024/30/2042 6.75% 3,095,802 695,973 180,586 4,740 28,548 453,397 42,247 178,597 0 202,482 3,106,1434/30/2043 6.75% 3,106,143 696,754 163,290 3,690 28,625 450,090 48,465 186,900 0 203,444 3,125,2814/30/2044 6.75% 3,125,281 696,846 147,414 2,870 28,820 449,551 54,887 195,502 0 204,807 3,147,8904/30/2045 6.75% 3,147,890 696,935 132,752 2,231 28,483 440,016 61,896 204,413 0 206,649 3,181,6834/30/2046 6.75% 3,181,683 697,081 119,131 1,735 28,002 430,812 69,319 213,643 0 209,176 3,225,2984/30/2047 6.75% 3,225,298 697,703 106,419 1,349 27,411 423,859 76,883 223,204 0 212,260 3,276,1364/30/2048 6.75% 3,276,136 698,265 94,514 1,050 26,567 411,320 84,962 228,534 0 216,121 3,343,575

4/30/2049 6.75% 3,343,575 698,852 83,354 816 25,715 401,052 93,170 233,997 0 220,992 3,425,315

4/30/2050 6.75% 3,425,315 698,885 72,913 633 24,825 387,788 102,489 239,597 0 226,843 3,522,7984/30/2051 6.75% 3,522,798 698,850 63,200 487 23,853 372,081 112,183 245,337 0 233,797 3,638,3044/30/2052 6.75% 3,638,304 698,922 54,240 374 22,805 356,778 122,188 251,220 0 241,917 3,771,5384/30/2053 6.75% 3,771,538 698,889 46,053 283 21,789 342,158 133,060 257,251 0 251,146 3,920,9794/30/2054 6.75% 3,920,979 698,904 38,653 212 20,655 325,529 143,987 263,432 0 261,508 4,088,9234/30/2055 6.75% 4,088,923 698,856 32,044 157 19,511 309,923 156,823 269,768 0 272,986 4,272,5394/30/2056 6.75% 4,272,539 698,877 26,209 113 18,351 293,755 170,031 276,262 0 285,499 4,472,1944/30/2057 6.75% 4,472,194 698,919 21,129 81 17,184 276,647 183,576 282,919 0 299,085 4,688,6624/30/2058 6.75% 4,688,662 698,905 16,775 56 16,037 260,554 198,254 289,742 0 313,700 4,919,8494/30/2059 6.75% 4,919,849 698,849 13,095 38 14,880 243,868 212,741 296,735 0 329,305 5,166,6464/30/2060 6.75% 5,166,646 698,806 10,040 26 13,739 227,435 227,395 303,903 0 345,923 5,428,8374/30/2061 6.75% 5,428,837 698,739 7,552 17 12,623 211,500 242,215 311,251 0 363,530 5,705,9484/30/2062 6.75% 5,705,948 698,672 5,565 11 11,533 196,004 256,766 318,782 0 382,114 5,998,0734/30/2063 6.75% 5,998,073 698,605 4,017 6 10,493 181,079 271,428 326,502 0 401,666 6,304,819

4/30/2064 6.75% 6,304,819 698,538 2,838 3 9,492 166,772 286,013 334,414 0 422,167 6,625,992

4/30/2065 6.75% 6,625,992 698,470 1,960 2 8,534 153,121 300,495 342,525 0 443,604 6,961,429

4/30/2066 6.75% 6,961,429 698,403 1,324 2 7,635 140,166 315,096 350,838 0 465,959 7,310,730

4/30/2067 6.75% 7,310,730 698,336 875 0 6,775 127,909 329,469 359,359 0 489,220 7,673,899

4/30/2068 6.75% 7,673,899 698,269 565 0 5,982 116,369 343,813 368,093 0 513,380 8,050,726

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) Intial BOY Market Value of assets is MVA at 9/30/2019 based on unaudited financial information provided by the fund administrator.

3) Benefit Payments, Admin Expenses, Contributions, and Investment Income shown in plan year ending 4/30/2020 have been prorated to reflect only the period from 10/1/2019 to 4/30/2020.4) Actives are not partitioned. Terminated Vesteds are fully partitioned, Retiree (healthy & disabled) and Beneficiary liabilities are partitioned. As shown in listing attached for 4233,6(f)

Benefit Payments by 5/1/19 Status

EXHIBIT 08A

BAC 7:49
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 09 

Demonstration of Equitable Distributions 

Effect of Proposed Suspension on the Plan in the Aggregate 

Group Count 

Average 

Monthly Benefit 

Before 

Suspension 

Average 

Monthly Benefit 

After Suspension

PV Reduction in 

Benefits 

All 427 $ 1,040.16 $ 572.07 15,256,604

Retiree 166 $ 1,350.68 $ 879.28 7,912,148

Beneficiary 47 $ 530.27 $ 457.02 343,140

Term. vest 108 $ 1,028.01 $ 331.09 4,658,218

Active 106 $ 792.33 $ 387.50 2,343,098

The above impacts are of the suspension only (not the partition) and are measured based on cash 

flows starting on the proposed effective date of October 1, 2020. Present value is at 6.75%. 

Distribution of Participants by Benefit Reduction Percentage – Aggregate Basis 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 112 26.23% 

0.001% to 10% 74 17.33% 

10.001% to 20% 25 5.85% 

20.001% to 30% 21 4.92% 

30.001% to 40% 15 3.51% 

40.001% to 50% 36 8.43% 

50.001% to 60% 41 9.60% 

60.001% to 70% 52 12.18% 

70.001% to 80% 45 10.54% 

80.001% to 90% 6 1.41% 

90.001% to 100% 0 0.00% 

BAC 7:50
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Distribution of Participants by Benefit Reduction Percentage – Retirees 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 64 38.55%

0.001% to 10% 21 12.65%

10.001% to 20% 7 4.22%

20.001% to 30% 10 6.02%

30.001% to 40% 7 4.22%

40.001% to 50% 17 10.24%

50.001% to 60% 13 7.83%

60.001% to 70% 21 12.65%

70.001% to 80% 6 3.61%

80.001% to 90% 0 0.00%

90.001% to 100% 0 0.00%

Distribution of Participants by Benefit Reduction Percentage – Beneficiaries 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 31 65.96%

0.001% to 10% 8 17.02%

10.001% to 20% 1 2.13%

20.001% to 30% 1 2.13%

30.001% to 40% 1 2.13%

40.001% to 50% 2 4.26%

50.001% to 60% 1 2.13%

60.001% to 70% 1 2.13%

70.001% to 80% 1 2.13%

80.001% to 90% 0 0.00%

90.001% to 100% 0 0.00%

BAC 7:51
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Distribution of Participants by Benefit Reduction Percentage – Inactive Vesteds 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 0 0.00%

0.001% to 10% 0 0.00%

10.001% to 20% 15 13.89%

20.001% to 30% 7 6.48%

30.001% to 40% 2 1.85%

40.001% to 50% 9 8.33%

50.001% to 60% 11 10.19%

60.001% to 70% 23 21.30%

70.001% to 80% 35 32.41%

80.001% to 90% 6 5.56%

90.001% to 100% 0 0.00%

Distribution of Participants by Benefit Reduction Percentage – Actives 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 17 16.04%

0.001% to 10% 45 42.45%

10.001% to 20% 2 1.89%

20.001% to 30% 3 2.83%

30.001% to 40% 5 4.72%

40.001% to 50% 8 7.55%

50.001% to 60% 16 15.09%

60.001% to 70% 7 6.60%

70.001% to 80% 3 2.83%

80.001% to 90% 0 0.00%

90.001% to 100% 0 0.00%

Calculation Basis 

For participants not in payment that comparison was made as of normal retirement age or current 

age on May 1, 2019 if later. Current benefits as of May 1, 2019 include estimated late retirement 

factors if applicable. 

BAC 7:52
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Effect of Proposed Suspension on the Plan on a Group-by-group Basis 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(a) for these reasons. 

Identification of Factors Taken Into Account 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(b) for these reasons. 

Explanation as to Why No Factors Listed in IRC Section 432(e)(9)(D)(vi)(I) through (XI) 

Were Taken Into Account 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(c) for these reasons. 

Relevance of Factors Not Listed in IRC Section 432(e)(9)(D)(vi)(I) through (XI) 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(d) for these reasons. 

Differences in Treatment Among Groups Result from Reasonable Application of Relevant 

Factors 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(e) for these reasons. 

BAC 7:53
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 10 

Samples of Notices 

Copies of the Notices and also samples of the individual estimates (without personally identifiable 

information) are attached as Exhibit 10A (BAC 7:55). 

BAC 7:54
NOTICE OF APPLICATION FOR PARTITION FOR 

BRICKLAYERS & ALLIED CRAFTSMEN LOCAL NO. 7 PENSION PLAN 

December 13, 2019 

This notice is to inform you that, on November 26, 2019, the Board of Trustees of the Bricklayers 

& Allied Craftsmen Local No. 7 Pension Plan (“Board of Trustees”) filed a complete application 

with the Pension Benefit Guaranty Corporation (“PBGC”) requesting approval for a partition of 

the Bricklayers & Allied Craftsmen Local No. 7 Pension Plan (“Plan”). The Plan’s Employer 

Identification Number is 34-6666798 and the Plan’s three-digit Plan Number is 001. 

The Board of Trustees has also submitted an application for reduction of benefits under section 

305(e)(9)(G) of ERISA. A copy of the Notice of a Proposed Reduction of Your Pension Benefits 

is included with this mailing. That Notice describes information on how to obtain a copy of the 

application as well as other important information about your benefits from the Plan. 

What is partition? 

A multiemployer plan that is in critical and declining status may apply to PBGC for an order that 

separates (i.e., partitions) and transfers the PBGC-guaranteed portion of certain participants’ and 

beneficiaries’ benefits to a newly-created successor plan. The total amount transferred from the 

original plan to the successor plan is the minimum amount needed to keep the original plan solvent. 

While the Board of Trustees will administer the successor plan, PBGC will provide financial 

assistance to the successor plan to pay the transferred benefits. 

Participants and beneficiaries in the successor plan do not get any better or worse benefits than 

Participants and beneficiaries in the original plan. The reduction of benefits is applied uniformly 

to both plans. 

PBGC guarantees benefits up to a legal limit. However, if the PBGC-guaranteed amount payable 

by the successor plan is less than the benefit payable under the original plan after taking into 

account benefit reductions or any plan amendments after the effective date of the partition, Federal 

law requires the original plan to pay the difference. Therefore, partition will not further change the 

total amount payable to any participant or beneficiary. 

What are the rules for partition? 

Federal law permits, but does not require, PBGC to approve an application for partition. PBGC 

generally will make a decision on the application for partition within 270 days. A plan is eligible 

for partition if certain requirements are met, including: 

1. The pension plan is in critical and declining status. A plan is in critical and declining status

if it is in critical status (which generally means the plan’s funded percentage is less than

65%) and is projected to run out of money within 15 years (or 20 years if there are at least

twice as many inactive as active participants, or if the plan’s funded percentage is less than

80%).

EXHIBIT 10A BAC 7:55
2. PBGC determines, after consulting with the PBGC Participant and Plan Sponsor Advocate, 

that the Board of Trustees has taken (or is taking) all reasonable measures to avoid 

insolvency, including reducing benefits to the maximum allowed under the law. 

3. PBGC determines that: (1) providing financial assistance in a partition will be significantly 

less than providing financial assistance in the event the plan becomes insolvent; and (2) 

partition is necessary for the plan to remain solvent. 

4. PBGC certifies to Congress that its ability to meet existing financial assistance obligations 

to other multiemployer plans (including plans that are insolvent or projected to become 

insolvent within 10 years) will not be impaired by the partition. 

5. The cost of the partition is paid exclusively from PBGC’s multiemployer insurance fund. 

Why are partition and benefit reductions needed? 

The Plan is in critical and declining status, is 24% funded as of May 1, 2019, and is projected to 

become insolvent by 4/30/23. The Board of Trustees has taken reasonable measures to avoid 

insolvency, but has determined that these measures are insufficient and that the proposed partition 

and reduction of benefits combined are necessary for the Plan to avoid insolvency. 

The estimated numbers of participants and beneficiaries whose benefits (or any portion thereof) 

would be transferred, including the number of retirees receiving payments (if any), terminated 

vested participants (if any), and active participants (if any), are as follows: 

 108 terminated vested participants 

 87 retirees receiving payments 

 19 beneficiaries 

 0 active participants. 

All terminated vested participants were selected to defer the financial assistance requested from 

the PBGC. No active participants were selected in order to keep the calculations as straightforward 

as possible. The retirees and beneficiaries to be transferred were selected by starting just under age 

80 (as of October 31, 2020). The plan sponsor then moved down the age groups until the ongoing 

plan was projected to remain solvent. This gave the successor plan a covered group that was neither 

too young nor too old. The resulting ages were about age 65 to age 79. 

If instead the Plan is allowed to become insolvent, the benefits of all participants and beneficiaries 

whose benefits exceed the PBGC-guaranteed amount would be reduced to the PBGC-guaranteed 

amount. 

What is PBGC’s multiemployer plan guarantee? 

Federal law sets the maximum that PBGC may guarantee. For multiemployer plan benefits, PBGC 

guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan’s monthly 

benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited 

service. PBGC’s maximum guarantee, therefore, is $35.75 per month times a participant’s years 

EXHIBIT 10A BAC 7:56
of credited service. PBGC guarantees vested pension benefits payable at normal retirement age, 

early retirement benefits, and certain survivor benefits, if the participant met the eligibility 

requirements for a benefit before plan termination or insolvency. A benefit or benefit increase that 

has been in effect for less than 60 months is not eligible for PBGC’s guarantee. PBGC also does 

not guarantee benefits above the normal retirement benefit, disability benefits not in pay status, or 

non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or 

severance pay. 

How will I know when PBGC has made a decision on the application for partition? 

If PBGC approves the Board of Trustees’ application for partition, PBGC will issue a notice to 

affected participants and beneficiaries whose benefits will be transferred to the successor plan no 

later than 14 days after it issues the order of partition. You may also visit www.pbgc.gov/MPRA 

for a list of applications for partition received by PBGC and the status of those applications. 

How do I obtain information on the application for approval to reduce benefits? 

The application for approval of the proposed reduction of benefits will be publicly available within 

30 days after the Treasury Department receives the application. See 

https://www.treasury.gov/mpra for a copy of the application, instructions on how to send 

comments on the application, and how to contact the Treasury Department for further information 

and assistance. 

Your Rights to Receive Information about Your Plan and its Benefits 

Your Plan’s Summary Plan Description (“SPD”) will include information on the procedures for 

claiming benefits, which will apply to both the original and successor plans until the Plan provides 

you a new SPD. You also have the legal right to request documents from the original plan to help 

you understand the partition and your rights such as: 

 The plan document, trust agreement, and other documents governing the Plan (e.g., 

collective bargaining agreements); 

 The latest SPD and summaries of material modification; 

 The Plan’s Form 5500 annual reports, including audited financial statements, filed with the 

U.S. Department of Labor during the last six years; 

 The Plan’s annual funding notices for the last six years; 

 Actuarial reports (including reports submitted in support of the application for partition) 

furnished to the Plan within the last six years; 

 The Plan’s current rehabilitation plan, including contribution schedules; and 

 Any quarterly, semi-annual or annual financial reports prepared for the Plan by an 

investment manager, fiduciary or other advisor and furnished to the Plan within the last six 

years. 

If your benefits are transferred to the successor plan, you will be furnished a successor plan SPD 

within 120 days of the partition; and the plan document, trust agreement, and other documents 

governing the successor plan will be available for review following the partition. 

EXHIBIT 10A BAC 7:57
The plan administrator must respond to your request for these documents within 30 days, and may 

charge you the cost per page for the least expensive means of reproducing documents, but cannot 

charge more than 25 cents per page. The Plan’s Form 5500 annual reports are also available free 

of charge at http://www.dol.gov/ebsa/5500main.html. Some of the documents also may be 

available for examination, without charge, at the plan administrator’s office, your worksite, or 

union hall. 

Plan Contact Information 

For more information about this Notice, you may contact: 

Bricklayers & Allied Craftsmen Local No. 7 Pension Plan 

33 Fitch Blvd. 

Austintown, Ohio 44515 

(330) 270-0453 

PBGC Contact Information 

Multiemployer Program Division, PBGC 

1200 K Street, NW 

Washington, DC 20005-4026 

Email: Multiemployerprogram@pbgc.gov 

Phone: (202) 326-4000 x6535 

PBGC Participant and Plan Sponsor Advocate Contact Information 

Constance Donovan, PBGC 

1200 K Street, NW 

Washington, DC 20005-4026 

Email: Advocate@pbgc.gov 

Phone: (202) 326-4488 

EXHIBIT 10A BAC 7:58
NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS 

On December 13, 2019, the Board of Trustees of the Bricklayers & Allied Craftsmen Local No. 7 

Pension Plan (“Plan”) submitted an application to the U.S. Treasury Department for approval to 

reduce benefits under the Plan. This type of benefit reduction is allowed by the Federal law called 

the Multiemployer Pension Reform Act of 2014. 

The Plan has also submitted an application with the Pension Benefit Guaranty Corporation 

requesting approval of a partition. That partition is more fully described in the Notice of 

Application for Partition that is also included in this mailing. 

You are getting this notice because you have a pension benefit under the Plan. The end of this 

notice describes the proposed reduction of your monthly payments.

1

 This notice will also 

answer the following questions for you—

1. Why is the Board of Trustees proposing to reduce benefits? 

2. What will happen if the Plan runs out of money? 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

4. What are the proposed reductions in benefits? 

5. What comes next? 

1. Why is the Board of Trustees proposing to reduce benefits? 

The Plan’s actuary estimated that, unless benefits are reduced, the Plan will not have enough 

money to pay benefits in the plan year ending April 30, 2023. This estimate is based on how much 

money the actuary expects the Plan to receive and to pay out each year. The Plan’s actuary 

estimated that, with the reduction of benefits that the Board of Trustees has proposed, the plan 

should not run out of money. 

2. What will happen if the Plan runs out of money? 

If the Plan does not have enough money to pay benefits, then only the amount guaranteed by the 

Pension Benefit Guaranty Corporation (“PBGC”) will be paid. You can find the amount of your 

benefit that is guaranteed by PBGC at the end of this notice. 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

Under Federal law, the Board of Trustees must apply the following rules to the proposed 

reduction— 

 The total reduction in everybody’s benefits must be estimated to be large enough to keep 

the plan from running out of money but not larger than needed to do that. 

 Your monthly benefit and the benefit of your beneficiary cannot be reduced below 110% 

of the amount guaranteed by PBGC. 

1

 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that 

represent Plan participants and to all contributing employers. 

EXHIBIT 10A BAC 7:59
 Disability benefits (as defined under the Plan) cannot be reduced. 

 The benefits of people who are at least 80 years old on October 31, 2020 and their 

beneficiaries cannot be reduced. 

 The benefits of people who are at least 75 years old on October 31, 2020 and their 

beneficiaries are partially protected, and the closer the person is to age 80 the less the 

benefits can be reduced. 

 The reduction of benefits must be spread fairly among the people who have a pension 

benefit under the plan. 

In deciding whether the proposed reduction is spread fairly, the Board of Trustees took into account 

the following: 

 If the Plan only made the maximum reductions described above, the Plan would still run 

out of money. Therefore, the Plan had to take the additional step of applying for a partition. 

The only way to save this Plan is to do both the maximum reductions AND the partition. 

4. What are the proposed reductions in benefits? 

The Board of Trustees proposes the following reduction of benefits: 

The reduction will change benefits to 110% of the PBGC guaranteed level. This reduction will 

apply to all individuals regardless of the percentage of contributions formula in effect at the time 

the individual accrued his or her benefit. The reduction will apply uniformly to all participants, 

beneficiaries, and Alternate Payees under a Qualified Domestic Relations Order that are not 

otherwise exempt due to their age or disability status as described above. Early retirement 

reductions and form of benefit adjustments will apply as well. No person will have his/her benefit 

reduced below 110% of the PBGC guaranteed level. No person will have his/her benefit increase 

due to the new benefit calculation. The proposed suspension is permanent. 

With the combination of the suspension and partition, the Plan actuary projects the plan will 

stabilize and remain solvent. This expectation is based on a number of assumptions – such as 

projected future work hours, contribution rates and investment returns. Even with these and other 

assumptions carefully considered, it is possible that the reduction may not work as intended. 

5. What comes next? 

Approval or denial of the application by the Treasury Department 

The Treasury Department will review the application to see whether it meets all of the legal 

requirements under Federal law. If the application meets all of those requirements, the Treasury 

Department is required to approve the application. If the application does not meet the legal 

requirements, the Treasury Department will deny the application. The Treasury Department will 

have until July 20, 2019 to make a decision. 

You can get information from the Treasury Department 

EXHIBIT 10A BAC 7:60
More information about the proposed benefit reductions and a copy of the application is available 

at www.treasury.gov/mpra. 

The application will be available on that website within 30 days after the Treasury Department 

receives it. The application includes more information about the proposed reduction, including 

details about: 1) the Plan actuary’s certification that the Plan will run out of money (that is, that 

the plan is in “critical and declining status”); 2) how the proposed reduction would satisfy the 

requirement that it be large enough so that the Plan is estimated not to run out of money, while not 

being larger than needed; and 3) the sensitivity of these estimates to the assumptions used. 

The application describes the steps the Board of Trustees has already taken to keep the Plan from 

running out of money and why the Board of Trustees believes that a benefit reduction is the only 

remaining option to keep the plan from running out of money. In addition, the application explains 

why the Board of Trustees believes that the proposed reduction is spread fairly among the people 

who have a pension benefit under the plan. 

The Treasury Department website will also provide updated information on the application, such 

as whether the application has been updated or withdrawn. 

For further information and assistance you can also write to the Treasury Department at the 

following address: 

Department of the Treasury 

Attn: MPRA Office, Room 1204 

1500 Pennsylvania Avenue, NW 

Washington, DC 20220 

You can comment on the application to reduce benefits 

You will be able to submit a comment on the application by going to www.treasury.gov/mpra. 

Comments may also be mailed to the Department of the Treasury, at the address listed above. All 

interested parties can make comments, and the comments will be publicly available. 

Retiree Representative 

If a plan has 10,000 or more participants, the Board of Trustees must select a retiree representative 

to advocate for the interests of retirees, beneficiaries, and deferred vested participants as part of 

this process. A plan is required to pay the reasonable expenses of the retiree representative. 

The Board of Trustees is not required to select a retiree representative, because the Plan has fewer 

than 10,000 participants. The Board of Trustees has not chosen to select a retiree representative. 

Vote on the proposed benefit reduction 

If the application for the proposed reduction of benefits is approved by the Treasury Department, 

then you will have the opportunity to vote on the proposed reduction. Unless a majority of all 

participants and beneficiaries of the Plan vote to reject the reduction, the Treasury Department 

EXHIBIT 10A BAC 7:61
must allow the reduction of benefits to take effect. This means that not voting counts the same as 

a vote to approve the reduction. 

You may contact PBGC’s Participant and Plan Sponsor Advocate by mail at Pension Benefit 

Guaranty Corporation, Attn: Participant and Plan Sponsor Advocate, 1200 K St., NW, Washington 

DC 20005; by telephone at (202) 229-4448; or by e-mail at advocate@PBGC.gov. 

Your right to see Plan documents 

You may want to review Plan documents to help you understand your rights and the proposed 

reduction to your benefits. The Plan administrator must respond to your request for the following 

documents within 30 days: 

 The Plan document (including any amendments adopted to reflect an authorized reduction 

of benefits), trust agreement, and other documents governing the Plan (such as collective 

bargaining agreements). 

 The Plan’s most recent summary plan description (SPD or plan brochure) and any summary 

of material modifications. 

 The Plan’s Form 5500 annual reports, including audited financial statements, filed with the 

U.S. Department of Labor during the last six years. 

 The annual funding notices furnished by the Plan during the last six years. 

 Actuarial reports, including reports prepared in anticipation of the benefit reduction, 

furnished to the Plan within the last six years. 

 The Plan’s current rehabilitation plan, including contribution schedules, and, if the 

proposed benefit reduction goes into effect, annual plan-sponsor determinations that all 

reasonable measures to avoid running out of money continue to be taken and that the Plan 

would run out of money if there were no benefit reductions. 

 Any quarterly, semi-annual or annual financial reports prepared for the Plan by an 

investment manager, fiduciary or other advisor and furnished to the Plan within the last six 

years. 

The Plan administrator may charge you the cost per page to the Plan for the cheapest way of 

copying documents, but cannot charge more than 25 cents per page. The Plan’s Form 5500 Annual 

Return/Report of Employee Benefit Plan is also available free of charge at 

www.dol.gov/ebsa/5500main.html. Some of the documents also may be available for examination, 

without charge, at the Plan administrator’s office, your worksite or union hall. 

Your right to challenge incorrect calculations 

If you think the Plan miscalculated the reduction to your benefits, then you have the right to submit 

a claim to the Plan to have the calculation corrected. The Plan’s summary plan description (“SPD”) 

tells you how to submit a claim. The SPD also describes your right to have a court review the 

Plan’s final decision on your claim. 

If you believe the information used to calculate your estimate at the end of this notice is wrong, 

please contact the Plan office at: 

EXHIBIT 10A BAC 7:62
Bricklayers & Allied Craftsmen Local No. 7 Pension Plan 

33 Fitch Blvd. 

Austintown, Ohio 44515 

(330) 270-0453 

EXHIBIT 10A BAC 7:63
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 Receiving Non-Joint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $1490.95 payable as STRAIGHT LIFE. Under the 

proposed reduction your monthly benefit will be reduced to $983.12 beginning on October 

1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 25 of credited service under the Plan. 

 You will be 64 years and 2 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $983.12. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

EXHIBIT 10A BAC 7:64
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $893.75 

EXHIBIT 10A BAC 7:65
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 with Actual Late Retirement Receiving NonJoint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $3234.81 payable as STRAIGHT LIFE.1 Under the 

proposed reduction your monthly benefit will be reduced to $1101.10 beginning on 

October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 28 years of credited service under the Plan. 

 You will be 65 years and 3 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $1101.10. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

1

 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to 

account for your late retirement. 

EXHIBIT 10A BAC 7:66
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $1001.00.

2

2

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

EXHIBIT 10A BAC 7:67
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 Receiving Joint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $1289.75 payable as 100% J&S. Under the proposed 

reduction your monthly benefit will be reduced to $786.50 beginning on October 1, 2020. 

Since you are receiving a 100% J&S, under the proposed reduction, your beneficiary will 

receive $786.50 upon your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 20 of credited service under the Plan. 

 You will be 62 years and 9 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $786.50. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $715.00. 

EXHIBIT 10A BAC 7:68
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 with Actual Late Retirement Receiving Joint 

& Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $904.85 payable as 100% J&S.1 Under the proposed 

reduction your monthly benefit will be reduced to $466.59 beginning on October 1, 2020. 

Since you are receiving a 100% J&S, under the proposed reduction, your beneficiary will 

receive $466.59 upon your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 17 of credited service under the Plan. 

 You will be 72 years and 9 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $466.59. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

1

 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to 

account for your late retirement. 

EXHIBIT 10A BAC 7:69
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $424.18.2

2

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

EXHIBIT 10A BAC 7:70
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Beneficiary Under 75 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $2196.33 payable as STRAIGHT LIFE. Under the 

proposed reduction your monthly benefit will be reduced to $1140.42 beginning on 

October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 29 of credited service associated with your benefit under the Plan. 

 You will be 68 years and 1 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $1140.42. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $1036.75. 

EXHIBIT 10A BAC 7:71
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Inactive Vested Under Age 62 Reduced 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

If you start receiving your benefit on 4/1/2038 in the form of a Single Life Annuity, your 

monthly benefit without the proposed reduction would be$367.39. Under the proposed 

reduction your monthly benefit in the same form would be reduced to$314.60.12

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 You have 8 years of credited service under the Plan. 

 You will be 44 years and 7 months as of October 31, 2020. 

Additional Information used in your Calculation (based on Plan records) 

 You are 100% vested based on service through April 30, 2019. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $314.60 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

1

 These numbers are just estimates. The actual amount you receive will depend on things like how long you work and when you begin 

receiving payments. For more information, see the Plan’s SPD or contact the Plan Office.

2

 These amounts will be different if you take your benefit in a different form. For example, if you elect the Life-5 Year Certain Annuity 

form of payment, your reduced monthly benefit will be $314.60. If the value of your benefit is $5,000 or less, you will receive your 

benefit in a single lump sum payment. 

EXHIBIT 10A BAC 7:72
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $286.00. 

EXHIBIT 10A BAC 7:73
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Inactive Vested Normal Retirement Over 62 Reduced 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your benefit without the proposed reduction as of May 1, 2019 in the form of a lifetime 

annuity is $321.87. Under the proposed reduction your monthly benefit in the same form 

would be reduced to $208.76.12

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 You have 7 years of credited service under the Plan. 

 You will be 69 years and 6 months as of October 31, 2020.

Additional Information used in your Calculation (based on Plan records) 

 You are 70% vested based on service through April 30, 2019. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is 208.76. 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

1

 These numbers are just estimates. The actual amount you receive will depend on things like how long you work and when you begin 

receiving payments. For more information, see the Plan’s SPD or contact the Plan Office. Because you will be over age 62, when you 

begin receiving your benefit, the Plan will increase the amount to account for your late retirement. 

2

 These amounts will be different if you take your benefit in a different form. For example, if you elect the Life-5 Year Certain Annuity 

form of payment, your reduced monthly benefit will be $201.99. If the value of your benefit is $5,000 or less, you will receive your 

benefit in a single lump sum payment. 

EXHIBIT 10A BAC 7:74
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $189.78.3

3

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

EXHIBIT 10A BAC 7:75
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Alternate Payee Not in Pay Status Under Age 62 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan considered the Participant’s years of service as of April 30, 2019 and the terms 

of your Qualified Domestic Relations Order (“QDRO”). 

If you start receiving your benefit on October 1, 2033, the Participant’s Normal Retirement 

Date, in the form of a Single Life Annuity, your monthly benefit without the proposed 

reduction would be $287.58. Under the proposed reduction your monthly benefit in the 

same form would be reduced to $214.32.12

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 The Participant has 18 years of credited service under the Plan. 

 The Participant will be 49 years and 1 months as of October 31, 2020. 

 Your share of the Participant’s credited service under the Plan as of April 30, 2019 

is 5.45 years. This amount is dictated by the terms of your QDRO. 

 As of April 30, 2019, the Participant’s total accrued benefit was $1,078.16. 

 Under the terms of your QDRO, you are entitled to 50% of what is called the 

“Marital Portion” of the participant’s accrued benefit. To figure out the Marital 

Portion, take the number of months of the participant’s participation in the Plan 

during the marriage (from November 1, 1994 to April 29, 2004), and divide it by 

the total number of months of the participant’s participation as of the date of 

divorce. Multiply the answer times the participant’s accrued benefit. You are 

entitled to 50% of that number. 

1

 These numbers are just estimates. The actual amount you receive will depend on things like how long the Participant works and when 

you begin receiving payments. For more information, see the Plan’s SPD or contact the Plan Office.

2

 These amounts will be different if you take your benefit in a different form. For example, if you elect the Life-5 Year Certain Annuity 

form of payment, your reduced monthly benefit will be $214.32. If the value of your benefit is $5,000 or less, you will receive your 

benefit in a single lump sum payment. 

EXHIBIT 10A BAC 7:76
 The QDRO also requires that the Participant provide for a Qualified Pre-retirement 

Survivor Annuity. This causes your benefit to be reduced by 2.998%. 

Additional Information used in your Calculation (based on Plan records) 

 The Participant is 100% vested based on service through April 30, 2019. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC), reduced as required by your 

QDRO. 

 110% of the PBGC guarantee is $214.32, reduced as required by your QDRO. 

Therefore, your benefit amount after suspension would be $214.32. 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $194.84. 

EXHIBIT 10A BAC 7:77
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Alternate Payee Under 75 with QDRO 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan considered the terms of your Qualified Domestic Relations Order (“QDRO”) and 

the Participant’s years of service as of April 30, 2019. 

Your current monthly benefit is $439.67 payable as Life Annuity with 5 Years Guaranteed 

annuity. Under the proposed reduction your monthly benefit will be reduced to $279.21 

beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 7.10 years of credited service associated with your benefit under the Plan. 

 You will be 65 years and 5 months as of October 31, 2020. 

 The portion of your benefit that is based on disability is $0.00. 

 Under the terms of your QDRO, you are entitled to 50% of the participant’s accrued 

benefit as of August 6, 1992. This has been taken into consideration in the 

calculations included in this estimate. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $279.21. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

EXHIBIT 10A BAC 7:78
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be 253.83. 

EXHIBIT 10A BAC 7:79
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree No Change 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $164.53 payable as STRAIGHT LIFE. Your monthly 

benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 You have 12 of credited service under the Plan. 

 You will be 76 years and 8 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $156.39 

EXHIBIT 10A BAC 7:80
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Age 75-80 with Actual Late Retirement Receiving NonJoint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $87.91 payable as STRAIGHT LIFE.1 Under the proposed 

reduction your monthly benefit will be reduced to $56.56 beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 4 of credited service under the Plan. 

 You will be 75 years and 4 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $54.33. Due to Federal Limitations related to your 

age your benefit will be subject to 93% of the full benefit reduction. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

1

 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to 

account for your late retirement. 

EXHIBIT 10A BAC 7:81
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $51.74.2

2

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

EXHIBIT 10A BAC 7:82
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Age 75-80 Receiving Joint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $2976.27 payable as 50% J&S. Under the proposed 

reduction your monthly benefit will be reduced to $1691.17 beginning on October 1, 2020. 

Since you are receiving a 50% J&S, under the proposed reduction, your beneficiary will 

receive $1244.74 upon your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 29 of credited service under the Plan. 

 You will be 76 years and 6 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $1140.42. Due to Federal Limitations related to 

your age your benefit will be subject to 70% of the full benefit reduction. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $1036.75. 

EXHIBIT 10A BAC 7:83
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Age 75-80 with Actual Late Retirement Receiving Joint 

& Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $253.19 payable as 100% J&S.1 Under the proposed 

reduction your monthly benefit will be reduced to $225.85 beginning on October 1, 2020. 

Since you are receiving a 100% J&S, under the proposed reduction, your beneficiary will 

receive $225.85025 upon your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 5 of credited service under the Plan. 

 You will be 77 years and 7 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $196.62. Due to Federal Limitations related to 

your age your benefit will be subject to 48% of the full benefit reduction. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

1

 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to 

account for your late retirement. 

EXHIBIT 10A BAC 7:84
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $178.75.

2

2

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

EXHIBIT 10A BAC 7:85
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Beneficiary No Change 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $135.33 payable as STRAIGHT LIFE. Your monthly 

benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records: 

 You have 11 of credited service associated with your benefit under the Plan. 

 You will be 75 years and 9 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $131.74. 

EXHIBIT 10A BAC 7:86
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 With Portion Based on Disability 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $1,285.95 payable as a Single Life Annuity. Under the 

proposed reduction your monthly benefit will be reduced to $1,273.02 beginning on 

October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. If the benefit reduction starts later, the effect 

of the proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 16 years of credited service under the Plan. 

 You will be 62 years and 2 months as of October 31, 2020. 

 The portion of your benefit that is based on disability is $1273.02. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by 

the Pension Benefit Guaranty Corporation (PBGC), but will not be lower than the 

amount of your benefit that is based on disability. 

 110% of the PBGC guarantee is $629.20. 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

EXHIBIT 10A BAC 7:87
PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be 572.00. 

EXHIBIT 10A BAC 7:88
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Over 80 No Change 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $246.61 payable as STRAIGHT LIFE. Your monthly 

benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. 

It is not a final benefit calculation. This estimate was prepared assuming that the proposed 

benefit reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records: 

 You have 11 of credited service under the Plan. 

 You will be 85 and 10 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension 

on you may be different than the amounts in this notice due to a change in your 

circumstances. For example, additional work history, changes in marital status, approval 

of a new QDRO or changes to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no 

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be $215.20. 

EXHIBIT 10A BAC 7:89
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Beneficiary Over 80 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $289.65 payable as STRAIGHT LIFE. Your monthly benefit 

would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records: 

 You have 13 of credited service associated with your benefit under the Plan. 

 You will be 88 years and 4 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is $none. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $252.98. 

EXHIBIT 10A BAC 7:90
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 11 

List of Contributing Employers and Employee Organizations 

Employers Obligated to Contribute Employee Organizations 

Ameriseal & Restoration

 

Bricklayers & Allied Craftworkers Local 7 OH

Beaver Constructors, Inc.

C.R. Hoiles Masonry, Inc.

Cleveland Marble Mosaic

Coon Caulking & Sealants

Crowe Construction

Foti Construction

Gabor Enterprises

Graciano Corp.

Grunwell-Cashero Co.

Hmh Restoration

J & H Concrete

Kapton Caulking & Building

Lencyk Masonry Co., Inc. 

Lou Ritenour Decorators

Masonry Contracting Corp.

Medina Glass Block Inc.

Mike Coates Construction 

Norm King Construction 

Ohio Admin. Distr. Council

R.G. Smith Co. Inc. 

Ram Construction Svcs.

Rohr Masonry

Selinsky Force Industrial Services

Stanley Miller Construction 

Stitle Construction

United Masonry Construction

Valentine Contractors

Warren Guillard Bricklayers

Western Specialty Contractors

Wilson Restoration

Wischt & Sons Construction 

BAC 7:91
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND

EIN/PN: 34-6666798 / 001

EXHIBIT 12

Past and Current Measures Taken to Avoid Insolvency

Reductions in Plan Benefits

Since May 1, 2008, the Plan has taken the following steps to avoid insolvency: 

• Benefit Accrual Rate: The benefit accrual rate for future service was not changed,

since it was already significantly lower than 1% of total contributions.

• Pre-Retirement Surviving Spouse Benefit: Effective May 1, 2009, the cost of the

pre-retirement spouse benefit was paid for by an actuarial decrease in benefits based

on the number of months after May 1, 2009 such coverage was in effect.

• Early Retirement Subsidies: The early retirement reduction factors were changed

from 4% per year to 7% per year, effective May 1, 2009.

• Optional Form of Payment: The normal form of benefit was changed to life only,

instead of a 60-month guaranteed form for retirements on or after May 1, 2009.

• Disability Benefits for Current Active Participants: The disability retirement

pension was eliminated for participants whose disability benefit commencement

dates would have been on or after May 1, 2009.

Contribution Rate Increases

The hourly contribution rates have increased as shown below. Without a suspension and partition, 

the contribution rate is expected to remain at $6.80 per hour. Expected contribution rates after a 

suspension and partition are assumed to increase by 1% per year beginning May 1, 2021. 

Effective Date Hourly Contribution Rate

June 1, 2006 $3.55

June 1, 2007 $4.01

September 1, 2008 $4.41

June 1, 2009 $4.81

June 1, 2010 $5.21

June 1, 2011 $5.61

June 1, 2012 $6.01

June 1, 2013 $6.41

June 1, 2014 $6.46

June 1, 2015 $6.66

June 1, 2016 $6.80

BAC 7:92
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 13 

Section 432 Plan Factors 

Plan Factors 

In accordance with Code § 432(e)(9)(C)(ii), the following factors were taken into account in the 

plan sponsor’s determination that all reasonable measures have been taken to avoid insolvency. 

Current and Past Contribution Levels 

Contribution dollars and hours are summarized in the table below: 

The Plan’s Ten-Year Experience for Certain Critical Assumptions 

Year 

Ending 

4/30 

Base 

Units 

(Hours) 

Average 

Hourly 

Rate 

Contributions 

Excluding 

Withdrawal 

Liability Payments 

Withdrawal 

Liability 

Payments 

Return on 

Assets 

(Market Basis)

2009 125,501 $5.15 $646,285 $0 -24.68%

2010 163,420 $4.99 $815,526 $0 29.68%

2011 137,302 $5.40 $741,199 $0 14.16%

2012 154,904 $5.56 $861,825 $0 0.71%

2013 123,783 $6.15 $761,064 $0 8.65%

2014 99,661 $6.75 $672,704 $0 8.27%

2015 145,457 $6.43 $934,649 $0 6.72%

2016 135,899 $5.69 $772,854 $0 -3.48%

2017 91,547 $6.61 $604,875 $0 10.94%

2018 114,761 $6.53 $749,475 $0 8.60%

2019 111,464 $6.71 $723,439 $0 4.02%

The above table shows both hours and contributions net of reciprocity in and out of the Plan. The 

justification of actuarial assumptions contained elsewhere in this application contains more detail 

on recent reciprocity activity. The average hourly rates in the table above do not exactly match the 

Local 7 rates due to the impact of reciprocity. 

Levels of Benefit Accruals 

Benefit accruals were calculated as follows: $1.00 per year of past service plus 4.10% of employer 

contributions made on and after February 1, 1968 and before May 1, 2003; 3.00% of employer 

contributions made on and after May 1, 2003 and before May 1, 2005; 1.00% of employer 

contributions made on and after May 1, 2005 and before May 1, 2006; 1.00% of $2.00 of employer 

contributions made on and after May 1, 2006 and before May 1, 2016; and 0.30% of the first $6.66 

and 1.0% of contributions over $6.66 for employer contributions made on and after May 1, 2016. 

Benefit accrual levels lower than 4.10% were in effect prior to 1999 and were increased over time. 

BAC 7:93
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Prior Reductions of Adjustable Benefits 

 Pre-Retirement Surviving Spouse Benefit: Effective May 1, 2009, the cost of the 

pre-retirement spouse benefit was paid for by an actuarial decrease in benefits based 

on the number of months after May 1, 2009 such coverage was in effect. 

 Early Retirement Subsidies: The early retirement reduction factors were changed 

from 4% per year to 7% per year, effective May 1, 2009. 

 Optional Form of Payment: The normal form of benefit was changed to life only, 

instead of a 60-month guaranteed form for retirements on or after May 1, 2009. 

 Disability Benefits for Current Active Participants: The disability retirement 

pension was eliminated for participants whose disability benefit commencement 

dates would have been on or after May 1, 2009. 

All available adjustable benefit cuts have been made except for the fact that the early retirement 

reduction, while approximately actuarial equivalent at age 55, is slightly more generous than a 

pure actuarial equivalent at ages between age 55 and age 62. The reduction was chosen for ease of 

administration and communication. 

Prior Suspensions of Benefits

None 

Impact on Plan Solvency of Subsidies and Ancillary Benefits Available to Active Participants 

There are no remaining ancillary benefits for active participants. Almost all subsidies for active 

participants have been removed from the Plan as part of the Rehabilitation Plan. 

Compensation Levels of Active Participants Relative to Employees in the Participants’ 

Industry 

Compensation levels of active participants are substantially higher than non-union employees in 

the industry covered by the Plan, particularly when taking into account benefit costs. The 

geographic area covered by the Plan is very small and surrounded by neighboring local unions. As 

a result, it is relatively easy for employees to change their “home” local union. After changing 

their home local unions, members may continue to work in Local 7’s jurisdiction, but the 

contributions are reciprocated out to the appropriate home locals. 

The following tables present historical information on the wage packages (including pension 

contribution rates of Local 7 and the other locals with the majority of reciprocity activity). 

BAC 7:94
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Gross Wage Rate (Journeyman)

2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $48.50 $47.50 $46.50 $45.50 $44.20 2.35%

Local 5 $51.40 $50.25 $49.03 $47.81 $46.59 2.49%

Local 6 $44.68 $42.33 $41.18 $40.03 $38.88 3.54%

Local 8 $49.00 $47.88 $46.58 $45.48 $44.43 2.48%

Local Pension Contribution (Journeyman)

2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $6.80 $6.80 $6.80 $6.66 $6.46 1.29%

Local 5 $6.81 $6.32 $5.83 $5.33 $4.83 8.97%

Local 6 $5.86 $5.65 $5.45 $5.15 $5.10 3.53%

Local 8 $7.23 $7.23 $7.23 $7.23 $7.23 0.00%

The table above shows that, in 2014, the pension contributions for Local 7 were higher than for 

Local 5 and Local 6, but that the difference has decreased over time. This helps to explain the 

lower incidence of members changing home locals in recent years. 

Competitive and Other Economic Factors Facing Contributing Employers

Contributing employers within the Local 7 jurisdiction are facing an increased non-Union presence 

when bidding for work. In addition, neighboring Local Unions have increased their presence in 

the area. Many of those neighboring Locals are not facing the pension issues that Local 7 is facing. 

This gives them the ability to gain and earn work easier than Local 7 contributing employers. 

Finally, due to the fact that the Local 7 fund is facing insolvency, the amount of unfunded liability, 

and therefore potential withdrawal liability, harms the contributing employers and their ability to 

obtain financing from banks, financing that would help them more effectively bid work. 

Impact of Benefit/Contribution Levels on Retaining Active Participants

The current contribution to benefit accrual ratio is extremely small. It is difficult for the Union to 

retain active participants when those participants can switch their Union membership to a 

neighboring Local (with the blessing of the International) and have their pension contributions sent 

to that Local. 

Impact of Past/Anticipated Contribution Increases on Employer Attrition/Retention

Contribution increases have ceased for the time being because contributing employers have 

expressed an inability to pay higher contribution rates within the Local 7 jurisdiction and remain 

competitive. 

BAC 7:95
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Measures Taken to Attract New Contributing Employers 

The Board of Trustees has taken multiple measures to attract and retain contributing employers. 

Shortly after developing the Rehabilitation Plan consisting of multiple schedules with large 

contribution increases, the Board of Trustees realized that forcing the small set of contributing 

employers to adopt the schedules would inevitably force them out of business or, at the very least, 

out of the Plan. 

Similarly, the Board of Trustees reviewed the possibility of continued cuts to benefit accruals and 

the overall benefits package of the Plan. The Board of Trustees feels that too significant a decrease 

in the total compensation received by the active participants would lead the active participants to 

push their employers to withdraw from the Plan. Ultimately, the Board of Trustees removed almost 

all subsidies from the Plan and brought the accrual rate down to a level it felt was as diminished 

as it could afford, while not risking the loss of the remaining contribution base. 

BAC 7:96
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 14 

Description of All Reasonable Measures 

(1) For the 10 plan years immediately preceding the plan year in which the application

is submitted:

(a) Contribution Levels

The Plan considered whether contributing employers and participants could afford

to continue increasing contributions in order to form a rehabilitation plan that did

not use an “exhaustion of all reasonable measures” provision. Such contribution

levels would have been significantly above and beyond what the Plan felt was

reasonable. The contribution levels described in this application were and are the

maximum amount of reasonableness without a partition and suspension.

(b) Levels of Benefit Accruals

Participants in the Plan are already receiving an extremely small accrual. Any

further reduction would be so close to a 0% accrual that contributions to the Plan

would be meaningless, at least as it pertained to growing a participant’s pension.

In order to stop the exodus of participants to other Locals, the Plan determined that

the current accrual rate was as low as the Plan could go.

(c) Prior Reductions of Adjustable Benefits

The Plan cut all adjustable benefits either completely or a significant amount in

2009. The only adjustable benefit cuts that could still be made would have little

impact on the Plan’s funding and would only serve to make the Plan even less

attractive for current and future participants.

(d) Prior Suspensions of Benefits

There have been no prior suspensions of benefits under §432(e)(9).

(e) Measures Undertaken to Retain/Attract Contributing Employers

The Plan has attempted to keep contribution levels as low as possible to make the

Plan attractive to contributing employers. The Local Union has also been active in

attempting to organize employers and also to require Union work on large projects.

The Plan also has left some accrual of benefits so as to make the Plan at least

somewhat attractive to current and future participants. Without these efforts, it is

likely that the number of contributing employers would have dropped even further.

BAC 7:97
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

(2) Impact of Plan Solvency on Subsidies and Ancillary Benefits 

Little to no subsidies and ancillary benefits remain for active participants. Any cuts to the 

remaining subsidies would have little to no impact on the Plan’s funding and would have 

a negative effect on the ability to attract and retain employers and participants. 

(3) Compensation Levels of Active Participants

 

Compensation levels of active participants are substantially higher than non-union 

employees in the industry covered by the Plan, particularly when taking into account 

benefit costs. The geographic area covered by the Plan is very small and surrounded by 

neighboring local unions. As a result, it is relatively easy for employees to change their 

“home” local union. After changing their home local unions, members may continue to 

work in Local 7’s jurisdiction, but the contributions are reciprocated out to the appropriate 

home locals. 

The following tables present historical information on the wage packages (including 

pension contribution rates of Local 7 and the other locals with the majority of reciprocity 

activity). 

Gross Wage Rate (Journeyman)

2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $48.50 $47.50 $46.50 $45.50 $44.20 2.35%

Local 5 $51.40 $50.25 $49.03 $47.81 $46.59 2.49%

Local 6 $44.68 $42.33 $41.18 $40.03 $38.88 3.54%

Local 8 $49.00 $47.88 $46.58 $45.48 $44.43 2.48%

Local Pension Contribution (Journeyman)

2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $6.80 $6.80 $6.80 $6.66 $6.46 1.29%

Local 5 $6.81 $6.32 $5.83 $5.33 $4.83 8.97%

Local 6 $5.86 $5.65 $5.45 $5.15 $5.10 3.53%

Local 8 $7.23 $7.23 $7.23 $7.23 $7.23 0.00%

The table above shows that, in 2014, the pension contributions for Local 7 were higher than 

for Local 5 and Local 6, but that the difference has decreased over time. This helps to 

explain the lower incidence of members changing home locals in recent years. 

BAC 7:98
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

(4) Competitive and Other Economic Factors Facing Contributing Employers

Contributing Employers are facing an increased non-Union presence as well as general 

anti-Union animus in the legislatures which impact the Local’s jurisdiction. Add this in 

with the general disinterest shown by the Local’s International Union as to members 

switching Locals and the impact of that action on the Plan’s funding and contributing 

employers are put at a distinct competitive disadvantage. 

BAC 7:99
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 15 

Impact of Contributions 

The Impact of Benefit and Contribution Levels on Retaining Active Participants and 

Bargaining Groups under the Pension Plan 

Decreases in benefit levels under the Pension Plan have drastically reduced union 

membership, participant numbers, and morale. Given the sizable uncredited portion of 

contributions to the Pension Plan, it is generally known by the union members that the 

Pension Plan is in critical and declining status and heading quickly toward insolvency. 

Qualitative data also suggest that union members and members in the other local unions 

have low morale and are pessimistic about the future of the Pension Plan. Continuous 

reductions in pension benefits have caused considerable transfers from Local 7 to other 

neighboring local unions, whose pension plans are not in critical and declining status. 

Quantitative data suggest greater losses in Local 7 than in comparable local unions in the 

northeast Ohio area. For instance, in 2005, based on the U.S. Department of Labor 

statistics, Bricklayers Local 7 had 415 members, compared to 205 members in 2018, a 

decrease of 50.6%. While geographically similar locals also have experienced membership 

losses, their losses have not been as drastic as Local 7’s losses. For instance, Local 6 in 

Canton, Ohio, had 392 members in 2005 and 340 members in 2018, a decrease of only 

13.27%. Similarly, Local 5 in the Cleveland area had 1,563 members in 2005 and 1,159 in 

June 2019, a 25.9% loss. 

All of the neighboring locals have substantial pension plans whose funding percentages far 

exceed that of the Pension Plan. Members of the International Union of Bricklayers and 

Allied Craftworkers are free to join, or transfer, to any local union that they choose. An 

analysis of both qualitative and quantitative data suggests that without drastic changes that 

would stabilize the Pension Plan, insolvency would likely be accelerated due to the ongoing 

flight of the Akron membership to neighboring local unions. In addition to membership 

retention and recruiting problems, knowledge of the Pension Plan and its impending 

insolvency make organizing and retaining union contractors and members a constant 

struggle. 

The Impact of Past and Anticipated Contribution Increases under the Pension Plan on 

Employer Attrition and Retention Levels 

As noted above, the impact of past and anticipated contribution increases under the Pension 

Plan has had a significant detrimental effect on employer retention levels. The Pension Plan 

has lost the following contractors (among others), some of which were the original 

contributors: 

 Frank Brown & Sons

 Duer Construction

 Livigny Construction

BAC 7:100
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Bucky Arnes Construction 

 Moore Masonry 

 Hercules Masonry 

 Greer Masonry 

 Landus Masonry 

 Applegren Masonry 

 Reich Masonry 

 Morgan Masonry 

 Giambrone 

 LMR Construction 

 Miencorp, Inc. 

 Thomarios 

 Trisco Systems 

 Zavarella 

BAC 7:101
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 16 

Proposed Ballot for the Pension Plan 

BALLOT ON THE PROPOSED SUSPENSION OF BENEFITS FOR THE 

BRICKLAYERS & ALLIED CRAFTSMEN LOCAL NO. 7 PENSION PLAN 

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

notice to all active participants, retirees, and beneficiaries in December, 2019, setting forth a 

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

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

IMPORTANT POINTS TO REMEMBER 

The term “suspend” means that your benefits will be reduced for an indefinite period of time if the 

proposal is approved. The notice you received in December, 2019 described the proposed 

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

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

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

insolvency. 

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

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

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

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

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

proposed suspension of benefits. The voting instructions are provided below. Votes must be 

received by in order to be eligible for counting. 

Before you vote, you should consider the following: 

1. The proposed reduction will NOT affect any participant, retiree, or beneficiary who is age

80 or older or who is receiving disability benefits from the Pension Plan.

2. The proposed reduction in benefits will affect all other active participants, retirees, and

beneficiaries.

3. For each retiree who is between the ages of 75 and 80 as of October 1, 2020, the amount

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

with the percentage becoming smaller with each age closer to age 80.

4. The benefits of all Participants described in number (2) above will be reduced to 110% of

the Pension Benefit Guaranty Corporation (“PBGC”) guarantee, which is the maximum

reduction allowable by law. Individuals describe in number (3) above will see a smaller

reduction.

BAC 7:102
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

5. The proposed suspension of benefits, if approved, would apply to benefit payments starting 

on October 1, 2020. 

6. The Pension Plan’s Board of Trustees has determined that if the benefits are not reduced 

as proposed by the Board of Trustees, the Pension Plan will become insolvent by the 2023 

plan year. Needless to say, these projections are partly based on educated guesses and 

assumptions about future contribution levels, investment rates of return, and future work 

hours. Therefore, the projections are subject to some degree of uncertainty. 

7. The Pension Plan’s actuary has certified that if the benefits are not reduced as proposed by 

the Board of Trustees, the Pension Plan will become insolvent by the 2023 plan year. The 

Pension Plan’s actuary has certified that if these reductions are approved and implemented, 

the Pension Plan is projected to avoid insolvency. Again, these projections are partly based 

on educated guesses and assumptions about future contribution levels, investment rates of 

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

uncertainty. 

8. The Plan has also applied to the PBGC for a partition. Information about the partition was 

sent to you in December, 2019. 

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

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

active participants’ benefits and future accruals and getting active participants to agree to 

increase contributions to the Pension Plan instead of receiving wage increases. However, 

reductions in investment returns, work hours, and employer contributions have forced the 

Board of Trustees to take this action so that the Pension Plan does not become insolvent. 

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

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

Pension Plan’s insolvency is provided in the accompanying individualized estimate. 

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

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

reductions under the proposed suspension of benefits. 

STATEMENTS REQUIRED BY FEDERAL LAW 

1. To the best of the Board of Trustees’ knowledge and belief, the ballot does not contain any 

false or misleading information. 

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

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

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

3. The Board of Trustees has considered the following four (4) factors in designing the 

proposed benefit suspension: 

BAC 7:103
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 The amount of benefits; 

 The history of benefit increases and reductions for participants and beneficiaries; 

 Any discrepancies between active and retiree benefits; and 

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

for the Pension Plan, accelerating employer withdrawals from the Pension Plan, 

and increasing the risk of additional benefit reductions for participants in and out 

of pay status. 

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

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

consultation with the PBGC and the U.S. Department of Labor. 

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

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

proposal would be greater than the benefits guaranteed by the PBGC. If the PBGC were to 

become insolvent, it would not be able to pay the guaranteed benefits, and whatever it could 

pay would be less than what the Pension Plan would pay if it were to become insolvent. 

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

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

vote as a vote in favor of the suspension. 

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

from comments received pursuant to the solicitation of comments in the Federal Register 

notice with respect to the application. 

 [Opposing comment TBD] 

BAC 7:104
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Benefit Payment Reduction

Plan Year End Retirees Beneficiary

Terminated 

Vested Active New Entrants Total

4/30/2020 0 0 0 0 0 0

4/30/2021 316,649 60,192 16,925 0 0 393,766

4/30/2022 516,231 95,062 43,046 0 0 654,339

4/30/2023 489,140 86,881 60,435 0 0 636,456

4/30/2024 461,766 78,717 80,541 0 0 621,024

4/30/2025 434,332 70,650 98,256 0 0 603,238

4/30/2026 407,074 62,773 113,712 0 0 583,559

4/30/2027 380,239 55,175 131,879 0 0 567,293

4/30/2028 354,066 47,946 150,384 0 0 552,396

4/30/2029 328,790 41,164 166,062 0 0 536,016

4/30/2030 306,102 35,065 181,705 0 0 522,872

4/30/2031 283,109 29,325 197,646 0 0 510,080

4/30/2032 261,546 24,180 214,034 0 0 499,760

4/30/2033 241,506 19,642 225,653 0 0 486,801

4/30/2034 223,022 15,708 238,341 0 0 477,071

4/30/2035 206,073 12,356 251,138 0 0 469,567

4/30/2036 190,581 9,553 261,653 0 0 461,787

4/30/2037 176,441 7,250 268,451 0 0 452,142

4/30/2038 163,524 5,396 272,922 0 0 441,842

4/30/2039 151,692 3,933 279,260 0 0 434,885

4/30/2040 140,790 2,806 285,321 0 0 428,917

4/30/2041 130,661 1,957 286,510 0 0 419,128

4/30/2042 121,163 1,333 287,765 0 0 410,261

4/30/2043 112,164 886 288,641 0 0 401,691

4/30/2044 103,551 575 290,642 0 0 394,768

4/30/2045 95,232 363 287,297 0 0 382,892

4/30/2046 87,139 223 282,548 0 0 369,910

4/30/2047 79,234 133 276,683 0 0 356,050

4/30/2048 71,507 78 268,347 0 0 339,932

4/30/2049 63,976 43 259,914 0 0 323,933

4/30/2050 56,683 24 251,011 0 0 307,718

4/30/2051 49,693 12 241,369 0 0 291,074

4/30/2052 43,078 7 230,903 0 0 273,988

4/30/2053 36,900 3 220,754 0 0 257,657

4/30/2054 31,210 2 209,495 0 0 240,707

4/30/2055 26,046 1 197,974 0 0 224,021

4/30/2056 21,423 0 186,320 0 0 207,743

4/30/2057 17,354 0 174,666 0 0 192,020

4/30/2058 13,828 0 163,180 0 0 177,008

4/30/2059 10,824 0 151,506 0 0 162,330

Benefit Payment Reduction by 5/1/19 Status

EXHIBIT 17 BAC 7:105
4/30/2060 8,312

0 140,00500 148,317

4/30/2061 6,2540 128,75100 135,005

4/30/2062 4,6030 117,81200 122,415

4/30/2063 3,3130 107,24500 110,558

4/30/2064 2,3290 97,10600 99,435

4/30/2065 1,5950 87,45300 89,048

4/30/2066 1,0650 78,30900 79,374

4/30/2067 6920 69,71500 70,407

4/30/2068 4360 61,68500 62,121

EXHIBIT 17 BAC 7:106
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 18

Assumptions 

Exhibit 18A (BAC 7:108) describes the assumptions used by the actuary for performing 

projections required under Rev. Proc. 2017-43, Sections 3.01, 3.02, 3.03, and 4.02(1). The 

certification of critical and declining status required by Rev. Proc. 2017-43, Section 3.01 was 

prepared before this submission and includes a few assumptions that differ from those used to 

prepare other projections contained herein. These differences are noted and explained. Further 

differences in assumptions are due to expected differences in behavior of the members and 

employers in situations where the plan is or is not insolvent. 

Exhibit 18B (BAC 7:118) describes the development of the 9/30/2019 assets. 

Exhibit 18C (BAC 7:119) provides supporting documentation for certain assumptions including 

the actuary’s rationale for the selection of major assumptions. 

Documents 18A - 18C (BAC 7:108 - BAC 7:131) are based on the actuary’s interpretation of the 

requirements of Revenue Procedure 2017-43, Section 6.03 and Appendix B. 

BAC 7:107
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 18A 

Assumption Development 

Actuarial Assumptions and Methods Used for Projections 

Investment Returns 

 For certification of critical and declining status required by Rev. Proc. 2017-43, Section

3.01 and Exhibit 4 (BAC 7:21):

Time Period Assumed Rate of 

Return 

5/1/2019 – 4/30/2028 6.00%

5/1/2028+ 7.00%

 For all other projections:

Time Period Assumed Rate of 

Return 

5/1/2019 – 4/30/2029 5.75%1

5/1/2029+ 6.75%

The rates were updated based on Survey of Capital Market Assumptions: 2019 Edition, published 

by Horizon Actuarial Services, LLC. 

Assumed future investment percentages, as provided by Graystone Consulting, are shown below: 

Asset Class Allocation

US Large Cap 35%

US Small/Mid Cap 10%

Non-US Developed 18%

US Fixed - Core 30%

Treasuries/Cash 1%

Hedge Funds 6%

Since most assets are liquid, no change in investment mix was assumed over time. 

Mortality 

Mortality was assumed to follow the RP-2006 blue collar mortality tables projected generationally 

using the MP-2018 projection scale. Sex-distinct mortality rates were used for males and females. 

1

 For the first 5 months of the 5/1/2019-4/30/2020 plan year, actual investment income was used. For the remaining 

7 months of such plan year (the “initial period”), a return equal to 7/12ths of 5.75% was assumed. 

BAC 7:108
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

The employee tables were used for all participants not in pay status while the healthy annuitant 

tables were used for all participants in pay status. 

No adjustments (such as set-forwards or rate multipliers) were applied. 

Other Demographic Assumptions 

 Withdrawal 

Ultimate rates of withdrawal are assumed to follow table T-8 (less GAM-51 mortality) 

from The Actuary’s Pension Handbook., but modified starting at age 49 in order to account 

for the incidence of disability. (Since the Plan does not provide a special a disability benefit, 

it was assumed that disabled participants would receive a withdrawal or retirement benefit, 

as appropriate). The complete table is shown below: 

Age

 Withdrawal 

 Rate Age

 Withdrawal 

 Rate Age

 Withdrawal 

 Rate 

20 0.119384 35 0.105540 50 0.053166

21 0.118807 36 0.103702 51 0.046026

22 0.118208 37 0.101635 52 0.038798

23 0.117584 38 0.099328 53 0.031717

24 0.116930 39 0.096769 54 0.025038

25 0.116242 40 0.093957 55 0.018990

26 0.115515 41 0.090862 56 0.013749

27 0.114745 42 0.087459 57 0.010000

28 0.113924 43 0.083754 58 0.010000

29 0.113046 44 0.079749 59 0.010000

30 0.112095 45 0.075447 60 0.010000

31 0.111053 46 0.070816 61 0.010000

32 0.109903 47 0.065810 62 0.010000

33 0.108617 48 0.060394 63+ -

34 0.107172 49 0.054556

BAC 7:109
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Additionally, special select rates are applied during the first 3 years that a participant is 

reported: 

Year 

Reported

Select 

Withdrawal

Rate 

First 0.35

Second 0.35

Third varies2

 Disability 

Since the Plan does not provide disability benefits no disabilities are assumed, however, 

withdrawal rates have been adjusted to account for disability incidence (see note in 

withdrawal section above). 

 Retirement – Active Participants 

For active participants, the following rates of retirement are assumed to apply: 

Age 

Retirement 

Rate 

55 0.15

56 0.05

57 0.05

58 0.10

59 0.20

60 0.30

61 0.40

62+ 1.00

2

 For purposes of Rev. Proc. 2017-43, Section 3.01 and Exhibit 4 (BAC 7:21), a rate of 0.20 was used; for all other 

purposes, 0.35 was used. When the 2019 actuarial valuation was completed, this assumption was updated from 0.20 

to 0.35 based on analysis of experience through 4/30/2019. 

BAC 7:110
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Retirement – Inactive Vested Participants 

o For purposes of the certification of critical and declining status required by Rev. 

Proc. 2017-43, Section 3.01 (Exhibit 4, BAC 7:21) and the 2019 valuation report 

furnished pursuant to Rev. Proc. 2017-43, Section 7.10 (Exhibit 32B, BAC 7:410), 

inactive vested participants were assumed to commence benefits according to the 

following table: 

Criteria 

Assumed 

Commencement 

Age 

Terminated prior to 5/1/1997 Normal retirement 

age

Terminated after 5/1/1997 with 

less than 10 years of service

Normal retirement 

age

Terminated after 5/1/1997 with 

less 10+ years of service Age 59 

o For all other purposes, inactive vested participants were assumed to commence 

benefits in accordance with the following table of retirement rates: 

Age 

Retirement 

Rate 

55 0.10

56 0.05

57 0.05

58 0.10

59 0.10

60 0.15

61 0.15

62 0.25

63 0.15

64 0.15

65 0.15

66 0.50

67+ 1.00

The inactive vested retirement assumption was changed following the completion of the 

certification of critical and declining status required by Rev. Proc. 2017-43, Section 3.01 

(Exhibit 4, BAC 7:21) in order to more accurately reflect exact cash flow projections for 

the longer period after the current projected insolvency date. 

BAC 7:111
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Percent Married 

The critical and declining status certification and all actuarial valuation reports prior to 

2019 included an assumption that 100% of participants are married at retirement. The other 

projections contained herein use a 75% married assumption. 

Assumptions Regarding Form and Commencement Age of Benefits 

 “Take Up” Rate of Benefit Form Election 

o For purposes of the certification of critical and declining status required by Rev. 

Proc. 2017-43, Section 3.01 (Exhibit 4, BAC 7:21) and the 2019 valuation report 

furnished pursuant to Rev. Proc. 2017-43, Section 7.10 (Exhibit 32B, BAC 7:410), 

all future retirees were assumed to elect a life annuity. 

o For all other purposes, future retirees were assumed to elect benefit forms according 

to the following table. Note that, in addition to the 3 assumed forms of payment in 

the table, the plan also provides for life-5 year certain and joint & 75% survivor 

options, which were not valued. It was determined that valuing all 5 possible 

optional forms would not yield a material improvement in the accuracy of the 

projections. 

Benefit Form 

Married 

Participants 

(75% 

Assumed) 

Single 

Participants 

(25% 

Assumed) 

Life annuity 60% 100%

Joint & 50% survivor 20% n/a

Joint & 100% survivor 20% n/a

The change in assumption was made to more accurately reflect future cash flows for the 

longer period after the current projected insolvency date. 

 Pre-retirement Death Benefit Coverage 

The plan provides that, unless a participant explicitly waives pre-retirement death benefit 

coverage, such coverage will be “paid for” via a reduction in the participant’s accrued 

benefit. For purposes of the 2019 critical and declining certification, projections assumed 

no pre-retirement death benefit coverage (implicitly assuming that any pre-retirement death 

benefits would be offset by the associated reduction in accrued benefits). For all other 

projections contained herein (including the 2019 valuation report furnished pursuant to 

Rev. Proc. 2017-43, Section 7.10), an explicit married percentage of 75% is assumed and 

all married participants are assumed to elect pre-retirement death coverage. 

BAC 7:112
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Assumptions Regarding Missing or Incomplete Data 

 Assumption Regarding Terminated Vested Participants Beyond Normal Retirement Age 

Absent explicit information to the contrary, all known inactive vested participants were 

assumed to be alive. 

 Assumptions to Fill In Other Missing Data 

The age of participants with unrecorded dates of birth was estimated based on the average 

entry age of participants with recorded dates of birth and the same vesting status. 

 Pending Reciprocity 

Data investigations related to preparing for this filing uncovered a few participants with 

money in this Plan that should have been reciprocated out to other bricklayer pension plans. 

These participants have been excluded from all projections other than assuming payment 

in an amount equal to contributions made on their behalf in the current year. 

The full size of this group will not be known until after the December Board of Trustees 

meeting and it is possible other similarly situated participants could come forward at a later 

date. We have estimated a total transfer due to late reciprocity of $40,000 will be paid prior 

to the end of the current plan year (i.e., prior to 4/30/2020). This late reciprocity primarily 

covers hours worked in the last 4 to 6 years and will therefore lower historical hours by 

1,000 to 1,500 hours per year. 

In addition, there is a lump sum death benefit of just under $5,000 that will be paid in 

December 2019 and is not reflected elsewhere in our data. Therefore, we assumed a total 

onetime payment of $45,000. 

New Entrant Profile 

 The new entrant assumption is the same for all projections that use explicit new entrants. 

Distribution of assumed future new entrants by age and sex are as follows: 

Age Sex Distribution 

25 M 28%

30 M 18%

35 M 9%

40 M 15%

45 M 9%

50 M 8%

55 M 13%

 Future new entrants joining the plan during the plan year ending 4/30/2020 were assumed 

to work 991 hours during their initial year of participation. Subsequent years’ hours were 

adjusted on the same basis as plan-wide hours. New entrants joining the plan in subsequent 

BAC 7:113
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

years were assumed to work the same number of hours in each year as a member of the 

initial cohort works in such year. 

 For purposes of the critical and declining status determination required by Rev. Proc. 2017-

43, Section 3.01 and Exhibit 4 (BAC 7:21), no explicit new entrant profile was used. 

Normal cost was assumed constant and was used to indirectly estimate any emerging 

benefit payment streams due to new entrants prior to insolvency. These projections are 

effectively superseded by the more robust projections contained elsewhere in the filing. 

Contribution Rates 

 Projections without a partition (i.e., those required by Rev. Proc. 2017-43, Sections 3.01 

and 3.03, Exhibits 4 and 6, BAC 7:21 and BAC 7:29, respectively) assume the current 

$6.80 per hour average contribution rate for all future years. 

 For all projections with a successful partition (those required by Rev. Proc. 2017-43, 

Sections 3.02, 4.02(1) and 6.06 , Exhibits 5, 8, and 21, BAC 7:26, BAC 7:48, BAC 7:138, 

respectively), the contribution rate is assumed to increase by 1% per year beginning May 

1, 2021. 

Contribution Base Units 

 For purposes of the critical and declining status certification required by Rev. Proc. 2017-

43, Section 3.01 and Exhibit 4 (BAC 7:21), future hours were assumed to be 90,000 for all 

years. This assumption does not reflect a partition. The assumption was representative of 

expected average hours worked until insolvency. 

 Most projections in the 2019 valuation report furnished pursuant to Rev. Proc. 2017-43, 

Section 7.10 assume 99,100 hours for all years, which was based on participant-level 

assumptions of 1,200 hours per current vested member and 650 hours per current nonvested member. 

 For all other projections (other than those contained in the critical and declining status 

certification required by Rev. Proc. 2017-43, Section 3.01 and Exhibit 4 (BAC 7:21) and 

in prior valuation reports), hours worked for the plan year ending 4/30/2020 are assumed 

to be 103,100. This estimate derives from the 5/1/2019 valuation assumption of 99,100 

hours with an additional 4,000 hours assumed for members who work less than 435 hours 

and do not become participants. 

Subsequent years’ hours are assumed to trend as follows: 

o In scenarios without a partition (i.e., those required by Rev. Proc. 2017-43, Sections 

3.01 and 3.03, Exhibits 4 and 6 BAC 7:21 and BAC 7:29 respectively), hours were 

assumed to decline by 6% per year. 

BAC 7:114
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

o In scenarios with a successful partition (those required by Rev. Proc. 2017-43, 

Sections 3.02, 4.02(1) and 6.06 Exhibits 5, 8, and 21, BAC 7:26, BAC 7:48, BAC 

7:138, respectively), hours were assumed to decline by 1% per year. 

We realize that, under this set of assumptions, a given year might be projected to see one 

level of hours under the no-partition scenarios and a different level under the partition 

scenarios. A constant decline was assumed for computational simplicity. In reality, under 

scenarios with insolvency there is likely to be a larger decline at the year of insolvency. 

We believe a constant decline of 6% per year is reasonably similar to a lower decline before 

insolvency plus a shock decline in the insolvency year and then 6% declines after 

insolvency. 

 For all projections other than the critical and declining status certification required by Rev. 

Proc. 2017-43, Section 3.01 and Exhibit 4 (BAC 7:21), individual (current) active 

participants were assumed to work 1,200 hours per year if they were vested and 650 hours 

per year otherwise. However, these numbers were pro-rated (within the valuation system) 

in order to conform the total hours worked by the entire population under the above 

assumptions. The assumed hours assumption for active participants was increased from the 

2018 actuarial valuation based on an analysis of subsequent hours experience. 

Future Benefit Accrual 

No change in future benefit accrual was assumed even in the case of insolvency. Employers will 

still be obligated to contribute to the fund and will want to provide continued accrual. The current 

benefit formula for a member who works 1,200 hours annually provides a benefit of about $25.66 

per year of service, which is significantly less than the maximum PBGC guarantee. 

Withdrawal Liability Payment 

 

No future withdrawal liability payments were assumed. 

Administrative Expenses 

 The basic schedule of assumed administrative expenses is as follows: 

Period Assumed Expenses 

10/1/2019 through 4/30/2020 $250,000

Plan year ending 4/30/2021 $250,000

Plan year ending 4/30/2022 $115,000

On and after 5/1/2022 Prior year’s assumption increased by 2.5%

 For scenarios with a partition, the annual expenses from the basic schedule above are 

increased by $10,000 to reflect the additional complexity of maintaining separate records 

for 2 plans. 50% of assumed expenses are assigned to the successor plan with such 

allocation decreasing 2% per year. 

BAC 7:115
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 For scenarios leading to insolvency, the annual expenses from the basic schedule above are 

decreased by $20,000 in the year immediately following insolvency to reflect decreased 

PBGC premiums and lower professional costs. The savings in the first year of insolvency 

are assumed to be offset by one-time costs at initial insolvency. 

Rationale: Without fees for the 2016 suspension application or the initial stages of this partition 

application, recent administrative expenses have been between $100,000 and $110,000 

annually, including PBGC premiums of approximately $12,000. The expected 2022 expenses 

reflect that level plus inflation. 

Market Value of Assets as of 9/30/2019 data sources and adjustments 

Unaudited assets as of 9/30/2019 were provided by the fund administrator. Audited assets as of 

4/30/2019 were available from both the administrator and the auditor. We studied the differences 

between prior audited and unaudited financial statements and found that, historically, the 

differences in net market value have been small and have primarily involved payables and 

receivables. The administrator confirmed that no adjustments to these items are typically booked 

between audits. Our final value of net assets available for benefits as of 9/30/2019 was based on 

invested asset values provided by the administrator and receivable and payable amounts as of 

4/30/2019. The development of the 9/30/2019 assets is shown in Exhibit 18B (BAC 7:118) of this 

application 

Projection Methodology 

 The DBVal valuation system was used to perform all actuarial projections, unless 

otherwise disclosed. Additional calculations were performed using Microsoft Excel. 

 As discussed above, for purposes of the certification of critical and declining status 

certification furnished under Rev. Proc. 2017-43, Section 3.01 and Exhibit 4 (BAC 7:21), 

“take up” rates of optional forms of benefit were not used. 

 No data grouping techniques were used. 

 The following changes to the cash flow projections were incorporated: 

o All included scenarios used pre-partition cash flows for actives from the 6% decline 

in hours scenario. We believe the modest difference in accrued benefits during the 

period 5/1/2020 through 9/30/2020 between the 1% and 6% decline scenarios has 

almost no impact on such cash flows. 

o Cash flows for actives and terminated vested participants prior to partition or 

insolvency were estimated based on runs with different assumed mortality since the 

period before insolvency is short and the impact is immaterial. 

BAC 7:116
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

o Inactive vested participants were processed in separate runs in order to properly 

value the desired retirement decrements. No pre-retirement withdrawal or 

disability rates were assumed for these runs. 

o For each plan design scenario, 3 active-only runs (one for each form of benefit), 3 

inactive vested-only runs (one for each form of benefit), and one pay status run 

were done. The projected benefit payments from these runs were blended, along 

with projected benefits from assumed new entrants, to produce the final stream of 

benefit payments. 

o Benefit payments from the valuation system output are given as of the beginning 

of each plan year. These were multiplied by a one-half year interest adjustment 

factor to produce cash flows. 

o For purposes of the certification of critical and declining status required by Rev. 

Proc. 2017-43, Section 3.01 and Exhibit 4 (BAC 7:21), active participant cash flows 

from the valuation system were adjusted for contribution rate and total hours. 

Similar adjustment are also made for some of the graphs in the valuation reports 

furnished pursuant to Rev. Proc. 2017-43, Section 7.10. For all other purposes, 

these adjustments were handled within the valuation system. 

o For purpose of the certification of critical and declining status under Rev. Proc. 

2017-43, Section 3.01 expected benefit payments were only available in total. 

Amounts by status were estimated using ratios from the calculation under Rev. 

Proc. 2017-43, Section 3.03. 

BAC 7:117
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Development of 9/30/19 Market Value of Assets

Audited assets Admin assets Admin assets A

43,585 4/30/2019 9/30/2019 9/

Investments at fair value 9,009,920 9,006,240 8,215,554 8receivable contributions 174,707 165,420 174,707 receivable interest and dividend 6,361 0 0 prepaid assets 10,052 12,192 12,192 cash and cash equiv 404,871 404,871 324,054 SUBTOTAL 9,605,911 9,588,723 8,726,507 8Accounts payable reciprocity 68,025 56,228 56,288 Accounts payable other 4,230 1,203 2,801 Net assets available for benefits 9,533,656 9,531,292 8,667,418 8Reconcile from 4/30 to 9/30 4/30/19 audit assets 9,533,656Net invest income 122,544net contributions 311,765benefits paid -1,224,093expenses paid -81,722Misc. adjustments -3,677 Mostly adjustments to payables and receivablesAdjusted 9/30 assets 8,658,473The Adjusted 9/30 Assets were used for the starting point of all projections

EXHIBIT 18B

BAC 7:118
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 18C 

Supporting Documentation 

Actuarial Assumptions and Methods Used for Projections 

Supporting Documentation for Selection of Certain Assumptions 

Investment Returns 

 Components of the target portfolio used in the projections expressed in terms of the asset

classes used for setting the plan’s investment policy. Note that all of these asset classes

are permissible asset classes as listed in Appendix B of Rev. Proc. 2017-43. The mix of

assets is not projected to vary over time.

Asset Class 

Target 

Allocation 

US Large Cap 35%

US Small/Mid Cap 10%

Non-US Developed 18%

US Fixed - Core 30%

Treasuries/Cash 1%

Hedge Funds 6%

 Net investment return assumptions used for deterministic projections

o The net investment return assumptions used for deterministic projections were

based on:

 The expected net returns, standard deviations, and correlations from the

Survey of Capital Market Assumptions: 2019 Edition. Short-term

assumptions from the survey were assumed to apply to plan years ending

prior to May 1, 2029 and the long-term assumptions were used thereafter.

 The assumed investment allocations as described in the preceding section.

o Portfolio returns were modeled using the preceding target asset allocation and

capital market assumptions. The final short and long-term assumptions (shown

below) were selected based on the observed median geometric average portfolio

returns over a 10-year period for the short-term assumption and over a 20-year

period for the long-term assumption.

BAC 7:119
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PYE 2020-2029 PYE 2030 and later 

Assumed Interest Rate 5.75% 6.75% 

o Since the capital market returns provided in response to the Horizon survey 

included the effects of inflation and were net of investment-related expenses, we 

did not employ an explicit inflation or investment expense assumption. 

Demographic Experience 

 Experience Studies 

UAS does not typically perform formal experience studies for our clients. We assess the 

appropriateness of assumptions by looking at 5-year histories of demographic experience 

(expected versus actual exits by cause) and aggregate liability gain or loss relative to the 

size of accrued liability. 

Due to the small size of the Plan we have provided 10 years of experience below even 

though 5 years were often used in assumption setting. If an assumption looks questionable, 

we perform an internal demographic experience study. The expected values in the tables 

below are relative to the assumption used for the valuation that year not to current 

assumptions. The size of this Plan means actual experience is not fully creditable and can 

be volatile. 

A 10-year history of demographic experience is provided below: 

PYE 

4/30:

Expected and Actual Exits From Active Status Due To: 

Retirement (Net) Withdrawal 

Expected Actual Expected Actual 

2019 6.3 2 9.5 14

2018 4.7 2 6.6 (3)

2017 2.3 1 10.2 24

2016 0.9 3 14.3 36

2015 1.6 1 6.9 (8)

2014 2.0 5 9.8 24

2013 3.9 5 11.9 16

2012 2.2 1 12.1 6

2011 4.8 5 13.3 21

2010 2.3 4 10.9 13

BAC 7:120
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PYE 

4/30:

Expected and Actual Deaths by Status 

Actives Inactive Vesteds Retirees 

Expected Actual Expected Actual Expected Actual 

2019 0.3 0 0.7 2 10.1 11

2018 0.2 1 0.6 0 9.8 11

2017 0.4 0 0.7 0 13.6 13

2016 0.3 0 0.5 0 11.4 10

2015 0.2 0 0.5 0 11.6 16

2014 0.3 0 0.6 0 11.4 11

2013 0.3 0 0.6 2 11.0 9

2012 0.3 0 0.7 1 9.7 10

2011 0.3 0 0.9 0 9.1 9

2010 0.3 0 0.8 1 8.4 6

 Liability Gain/Loss Analysis 

Liability gains/losses for the last 10 years, both as a dollar amount and as a percentage of 

accrued liability, are shown below. Keep in mind these gains and losses also include the 

impact of the assumed hours per member (i.e., the effect of benefit accruals for the plan 

year being greater or less than was assumed in the prior year’s valuation report). 

 Percentage of Plan Population That Is Married 

For the 10 plan years ending April 30, 2010-2019, 74 people commenced retirement 

benefits. Of these, 55, or 74.3%, were married and, on average, the male spouse was 2.5 

years older than the female spouse. There were no same-sex married couples reported. 

PYE 

4/30:

Liability (Gain)/Loss 

As $ Amount

As % of 

Liability

2019 $ 120,513 0.30%

2018 (186,836) -0.48%

2017 1,075,847 2.95%

2016 821,780 2.26%

2015 (298,189) -0.85%

2014 98,493 0.28%

2013 (35,147) -0.10%

2012 93,534 0.27%

2011 143,822 0.41%

2010 515,601 1.49%

BAC 7:121
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Distribution of Optional Form Elections 

The distribution of optional form elections at retirement for the plan years ending April 30, 

2010-2019 is shown below. Note that the life-five year certain and joint & 75% survivor 

options were not valued. 

Benefit Form 

Married 

Participants 

Electing 

Single 

Participants 

Electing 

Life annuity 52.73% 68.42%

Life-five year certain 7.27% 31.58%

Joint & 50% survivor 20.00% 0.00%

Joint & 75% survivor 3.64% 0.00%

Joint & 100% survivor 16.36% 0.00%

 Rates of Retirement by Age 

Retirement experience for actives based on the plan years ending April 30, 2010-2019 is 

summarized below: 

Age Exposure Retirements Rate 

55 32 4 12.5%

56 28 3 10.7%

57 25 0 0.0%

58 23 1 4.3%

59 23 6 26.1%

60 16 5 31.3%

61 10 0 0.0%

62 10 8 80.0%

63 2 1 50.0%

64 2 0 0.0%

65 1 0 0.0%

66 2 1 50.0%

67 0 0 n/a

68 0 0 n/a

69 0 0 n/a

70 0 0 n/a

>70 0 0 n/a

BAC 7:122
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Retirement experience for inactive vested participants based on the plan years ending April 

30, 2010-2019 is summarized below. Note that the exposures for ages 55-64 do not include 

participants with less than 10 years of service as such participants are not eligible to retire 

early. 

Age Exposure Retirements Rate 

55 13 0 0.0%

56 22 2 9.1%

57 18 3 16.7%

58 16 0 0.0%

59 11 1 9.1%

60 10 1 10.0%

61 6 2 33.3%

62 33 4 12.1%

63 40 3 7.5%

64 23 3 13.0%

65 14 6 42.9%

66 23 5 21.7%

67 12 1 8.3%

68 8 2 25.0%

69 8 2 25.0%

70 5 1 20.0%

>70 9 1 11.1%

Observation: Many of the retirements after age 62 were part of a one-time data clean up in 

2015 and involved short service participants. 

BAC 7:123
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Rates of Withdrawal by Age 

Withdrawal experience (net of rehires) for actives based on the plan years ending April 30, 

2010-2019 is summarized below: 

Age 

Rang

e 

Exposure 

(>2yrs 

svc) 

Net 

Withdrawa

l Rate 

<20 0 0 0.0%

20-24 14 1 7.14%

25-29 58 12 20.69%

30-34 94 9 9.57%

35-39 131 16 12.21%

40-44 174 15 8.62%

45-49 211 8 3.79%

50-54 197 9 4.57%

55-59 23 6 26.09%

60+ 13 1 7.69%

The above table includes only those participants with 3 years of service as of the valuation 

date. Experience in the first three years of employment is summarized below. 

Service Exposure

Net 

Withdrawal Rate 

0 7 1 14.29%

1 85 33 38.82%

2 91 32 35.16%

Mortality Assumptions 

 Experience Study Underlying Mortality Rates 

The vast majority of participants in the plan are employed in the construction industry as a 

bricklayer. As such, they would be classified as blue collar workers. Therefore, we 

selected the blue collar tables of the RP-2014 Mortality Tables Report issued by the Society 

of Actuaries as the basis for the mortality assumption. We believe this table is 

representative of the expected mortality experience under the plan. 

BAC 7:124
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Process Used to Construct Tables 

As we have selected the blue collar tables of the RP-2014 Mortality Tables Report issued 

by the Society of Actuaries as the basis for the mortality assumptions, we refer the reader 

to the text of this study for a detailed description of how the tables were constructed. The 

report can be found here: 

https://www.soa.org/globalassets/assets/files/research/exp-study/research-2014-rpreport.pdf 

 Mortality Adjustments 

No adjustments were applied to the blue collar tables found in the RP-2014 study. 

 Mortality Improvement 

We used the Society of Actuaries’ MP-2018 improvement scales to project mortality rates 

generationally. 

BAC 7:125
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

New Entrant Profile 

 The distribution of ages of new entrants over the past 5 years appears below: 

Age 

Range 

Percentage of New Entrants for PYE 4/30: 

2019 2018 20171 2016 2015 

<20 0.00% 16.67% n/a 0.00% 3.03%

20-24 12.50% 8.33% n/a 13.04% 9.09%

25-29 0.00% 16.67% n/a 21.74% 9.09%

30-34 25.00% 16.67% n/a 8.70% 24.24%

35-39 12.50% 16.67% n/a 13.04% 3.03%

40-44 12.50% 0.00% n/a 21.74% 15.15%

45-49 0.00% 8.33% n/a 4.35% 15.15%

50-54 25.00% 8.33% n/a 4.35% 6.06%

55-59 0.00% 0.00% n/a 8.70% 12.12%

60+ 12.50% 8.33% n/a 4.35% 3.03%

 New entrants generally do not enter the plan with vesting or benefit service. This is 

because: 

o Reciprocity agreements are typically of the “money-follows-man” type, so 

participants generally cannot come in with vesting service earned in another plan 

that carries over to this Plan under a “pro-rata” reciprocity agreement. 

o If the plan is designated as a home fund under a money-follows-man agreement, 

the employee must first become a participant in the plan, so he/she would not be a 

new employee when contributions are transferred in. 

o Furthermore, contiguous non-covered service is extremely rare as the plan does not 

allow a termination to occur between the non-covered and covered service. 

Contribution Base Units and Employer Withdrawals 

 Employers That Contributed Over 5% 

Information on the employers that made more than 5% of total plan year contributions 

during the last 6 plan years (plan years ending April 30, 2014-2019) appears below. Note 

that contribution information by employer was not readily available for the preceding 4 

years (2010-2013). 

1

 There were no new entrants for the plan year ended 4/30/2017 

BAC 7:126


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Rationale for Hours Assumption 

See preceding table under the heading, “Historical Trends – Contribution Base Units 

(Hours).” The rolling 3-year averages of hours worked have steadily declined over the past 

10 years. We believe the declining health of the plan (not the amount of work available or 

expected to be available) was the biggest single driver of this decline. 

Kent State University which is in the area of the fund has significant future plans for new 

buildings which will very likely include brick work. The Bureau of Labor Statistics 

recently showed brick and related trades as growing nationwide. The population of the 

counties in the geographic area covered by the Plan have remained fairly stable.

If there is no suspension, we believe recent declines will continue. We estimate the average 

rate of decline will be approximately 6%, perhaps with slightly lower declines before 

insolvency and a bump at the time of insolvency. 

If the Plan can be stabilized with a suspension, the Board of Trustees expects they can 

stabilize hours and work at near the current level. For projections under the suspension 

scenario, we determined that a modest future decline of, on average, 1% was more realistic 

to account for the possibility of sporadic loss of additional Employers or members 

continuing to transfer home locals occasionally. 

The Plan requires 435 hours for initial participation and does not give benefit credit for a 

year with less than 435 hours. Historically (see table below) there have been fairly 

significant aggregate levels of hours for individuals that each had less than 435 hours. We 

have set a future assumption of 4,000 such hours which is approximately 66% for the five 

year activity without adjustment for late reciprocity (see discussion above under 

approximations). The late reciprocity was actually often for members that worked over 435 

hours so the values below would decrease by 500 hours or less per year if adjusted. 

BAC 7:129
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Plan year ending 

Number of NonParticipants with Hours Total Hours by NonParticipants 

4/30/2019 55 7,212.50

4/30/2018 39 4,144,50

4/30/2017 37 3,722.50

4/30/2016 47 5,866.25

4/30/2015 59 9,522.15

 Rationale for Contribution Rate Assumption 

The bargaining parties and Trustees are of the opinion that, historically, pension 

contribution rates increased too much and too quickly. They understand that the high 

contributions and low accrual rate will make it difficult to man jobs and retain qualified 

craftsmen. Furthermore, the high contribution rates make it difficult for signatory 

contractors to compete in the market place. 

However, over a long-term projection period we believe contribution rates will increase 

slowly at about half the rate of inflation. Therefore, we have assumed a 1% increase in 

rates starting in 2021. It should be noted that, in the previous suspension application 

(submitted in 2016 and subsequently withdrawn), the bargaining parties had agreed to 

contribution rate increases of 5¢/hour per year, which is slightly less than 1% of the initial 

rate. Finally, the current benefit formula provides for accrual at 1% on contributions in 

excess of $6.66 per hour, which provides incentive to allocate new contributions. 

 Experience with Employer Withdrawals 

The Plan has collected no withdrawal liability in the last ten years. This is primarily due to 

the operation of the “construction industry exemption.” In addition, the vast majority of 

contractors are working under statewide agreements that require contributions only when 

working in the area of each fund. 

Projection Methodology 

 Changes to Cash Flow Projections 

o Inactive vested participants were processed in separate runs in order to properly 

value the desired retirement decrements. This was done because our valuation 

system does not fully support inactive decrements. 

o For each plan design scenario, 3 active-only runs (one for each form of benefit 

being valued), 3 inactive vested-only runs (one for each form of benefit being 

valued), and one pay status run were done. The projected benefit payments from 

these runs were blended, along with projected benefits from assumed new entrants, 

to produce the final stream of benefit payments. This was done because our 

valuation system does not allow the user to assume multiple forms of benefit 

payment in a single run. 

BAC 7:130
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

o Benefit payments from the valuation system output are given as of the beginning 

of each plan year. These were multiplied by a one-half year interest adjustment 

factor to produce cash flows. We think it is more intuitive to work with cash flows 

rather than interest-adjusted cash flows. Additionally, all benefit payments 

produced by the valuation system are discounted at the valuation interest rate, 

whereas, when projecting assets, various rates of interest are applied. 

o For purposes of the certification of critical and declining status required by Rev. 

Proc. 2017-43, Section 3.01 and Exhibit 4 (BAC 7:21), active participant cash flows 

from the valuation system were adjusted for contribution rate and total hours. The 

certification of critical and declining status was done before work on this filing had 

commenced and we had not yet developed code to handle this adjustment internally. 

BAC 7:131
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 19 

Plan’s Experience with Critical Assumptions 

Pension Plan's Ten-Year Experience for Certain Critical Assumptions 

Year 

Ending 

4/30 

Base 

Units 

(Hours) 

Average 

Hourly 

Rate 

Contributions 

Excluding 

Withdrawal 

Liability Payments 

Withdrawal 

Liability 

Payments 

Return on 

Assets 

(Market Basis)

2009 125,501 $5.15 $646,285 $0 -24.68%

2010 163,420 $4.99 $815,526 $0 29.68% 

2011 137,302 $5.40 $741,199 $0 14.16% 

2012 154,904 $5.56 $861,825 $0 0.71% 

2013 123,783 $6.15 $761,064 $0 8.65% 

2014 99,661 $6.75 $672,704 $0 8.27% 

2015 145,457 $6.43 $934,649 $0 6.72% 

2016 135,899 $5.69 $772,854 $0 -3.48%

2017 91,547 $6.61 $604,875 $0 10.94%

2018 114,761 $6.53 $749,475 $0 8.60% 

2019 112,776 $6.47 $729,439 $0 4.02%

BAC 7:132
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 20 

Plan Sensitivity 

Pension Plan's Ten-Year Experience for Certain Critical Assumptions 

The following exhibits provide 4 separate, deterministic solvency ratio projections intended to help 

gauge the sensitivity of the projections to certain key assumptions as required by Rev. Proc. 2017-

43, Section 6.05. Each exhibit was prepared recognizing the proposed suspension. As permitted 

by Rev. Proc. 2017-43, Section 6.05, Exhibits 20C and 20D (BAC 7:136 and BAC 7:137, 

respectively) do not recognize any change in expected benefit payments that may result from using 

alternate assumptions regarding future contribution base units. 

 Exhibit 20A (BAC 7:134) projects the Pension Plan's solvency ratio using assumed rates

of return reduced by one percentage point (beginning with the plan year ending April 30,

2020);

 Exhibit 20B (BAC 7:135) projects the Pension Plan's solvency ratio using assumed rates

of return reduced by two percentage points (beginning with the plan year ending April 30,

2020);

 Exhibit 20C (BAC 7: 136) projects the Pension Plan's solvency ratio using an hours base

unit which is equal to the trend that the Pension Plan experienced over the 10 plan years

ending April 30, 2019; and

 Exhibit 20D (BAC 7:137) projects the Pension Plan's solvency ratio using an hours base

unit equal to the trend assumed in Exhibit 20C (BAC 7:136) reduced by one percentage

point (beginning with the plan year ending April 30, 2020).

BAC 7:133
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist #27: Sensitivity Projections - 1% Lower Interest

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

4/30/2020 4.75% 8,658,473 411,413 1,541,343 170,157 18,287 70,906 45,000 250,000 0 4/30/2021 4.75% 7,345,469 704,735 1,698,867 201,121 27,781 145,680 0 175,000 0 4/30/2022 4.75% 6,114,002 702,451 1,021,670 135,167 4,147 148,821 0 62,500 0 4/30/2023 4.75% 5,718,654 705,549 964,279 124,598 5,873 191,012 0 66,495 0 4/30/2024 4.75% 5,328,223 702,505 906,357 113,990 7,870 236,255 0 70,644 0 4/30/2025 4.75% 4,933,678 702,474 848,335 103,448 9,632 258,504 0 74,952 0 4/30/2026 4.75% 4,561,562 700,053 790,665 93,083 11,162 278,896 3 79,424 0 4/30/2027 4.75% 4,211,918 699,253 733,837 83,010 12,983 299,418 11 84,067 0 4/30/2028 4.75% 3,885,701 698,432 678,329 73,340 14,811 310,953 840 88,886 0 4/30/2029 4.75% 3,590,413 698,256 624,600 64,179 16,363 328,450 1,707 93,887 0 4/30/2030 5.75% 3,319,793 698,291 575,861 55,880 17,911 340,824 2,762 99,077 0 4/30/2031 5.75% 3,105,329 700,084 526,629 47,926 19,501 366,339 4,265 104,461 0 4/30/2032 5.75% 2,904,239 699,945 480,248 40,683 21,120 388,826 5,886 110,047 0 4/30/2033 5.75% 2,714,395 697,938 436,933 34,175 22,278 397,948 8,082 115,841 0 4/30/2034 5.75% 2,544,031 697,446 396,802 28,412 23,531 418,400 10,413 121,850 0 4/30/2035 5.75% 2,379,670 697,552 359,876 23,382 24,799 428,372 13,012 128,082 0 4/30/2036 5.75% 2,228,481 696,900 326,088 19,055 25,847 441,095 16,027 134,544 0 4/30/2037 5.75% 2,083,222 697,245 295,322 15,383 26,524 447,677 19,261 141,243 0 4/30/2038 5.75% 1,947,708 695,976 267,415 12,312 26,974 447,740 23,026 148,189 0 4/30/2039 5.75% 1,823,418 695,609 242,161 9,775 27,586 456,203 27,041 155,388 0 4/30/2040 5.75% 1,699,321 695,610 219,298 7,707 28,188 461,195 31,605 162,850 0 4/30/2041 5.75% 1,575,610 695,597 198,566 6,043 28,296 456,073 36,646 170,584 0 4/30/2042 5.75% 1,459,829 695,973 179,712 4,717 28,410 451,204 42,043 178,597 0 4/30/2043 5.75% 1,349,635 696,754 162,500 3,673 28,487 447,913 48,231 186,900 0 4/30/2044 5.75% 1,241,087 696,846 146,701 2,856 28,680 447,377 54,621 195,502 0 4/30/2045 5.75% 1,128,415 696,935 132,110 2,220 28,346 437,887 61,597 204,413 0 4/30/2046 5.75% 1,018,784 697,081 118,555 1,726 27,866 428,729 68,983 213,643 0 4/30/2047 5.75% 910,273 697,703 105,905 1,343 27,278 421,809 76,511 223,204 0 4/30/2048 5.75% 799,714 698,265 94,057 1,045 26,439 409,331 84,551 228,534 0 4/30/2049 5.75% 695,817 698,852 82,951 812 25,591 399,112 92,720 233,997 0 4/30/2050 5.75% 595,576 698,885 72,561 630 24,705 385,912 101,993 239,597 0 4/30/2051 5.75% 499,671 698,850 62,895 485 23,738 370,281 111,641 245,337 0 4/30/2052 5.75% 409,554 698,922 53,977 372 22,694 355,052 121,597 251,220 0 4/30/2053 5.75% 324,066 698,889 45,830 282 21,684 340,503 132,417 257,251 0 4/30/2054 5.75% 240,773 698,904 38,466 211 20,555 323,955 143,290 263,432 0 4/30/2055 5.75% 160,996 698,856 31,889 156 19,417 308,424 156,065 269,768 0 4/30/2056 5.75% 80,893 698,877 26,082 112 18,262 292,334 169,209 276,262 0 

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) Intial BOY Market Value of assets is MVA at 9/30/2019 based on unaudited financial information provided by the fund administrator.3) Benefit Payments, Admin Expenses, Contributions, and Investment Income shown in plan year ending 4/30/2020 have been prorated to reflect only the period fr4) Actives are not partitioned. Terminated Vesteds are fully partitioned, Retiree (healthy & disabled) and Beneficiary liabilities are partitioned. As shown in listing a

Benefit Payments by 5/1/19 Status

EXHIBIT 20A

BAC 7:134
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist #27: Sensitivity Projections - 2% Lower Interest

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D lia

Paymen

4/30/2020 3.75% 8,658,473 411,413 1,533,815 169,326 18,198 70,559 45,000 250,000 4/30/2021 3.75% 7,276,265 704,735 1,690,570 200,139 27,645 144,968 0 175,000 4/30/2022 3.75% 5,986,783 702,451 1,016,680 134,507 4,127 148,094 0 62,500 4/30/2023 3.75% 5,535,391 705,549 959,570 123,989 5,844 190,079 0 66,495 4/30/2024 3.75% 5,090,532 702,505 901,930 113,434 7,831 235,101 0 70,644 4/30/2025 3.75% 4,643,246 702,474 844,191 102,943 9,585 257,241 0 74,952 4/30/2026 3.75% 4,219,935 700,053 786,803 92,629 11,108 277,534 3 79,424 4/30/2027 3.75% 3,820,470 699,253 730,253 82,604 12,919 297,955 11 84,067 4/30/2028 3.75% 3,445,645 698,432 675,016 72,982 14,739 309,434 836 88,886 4/30/2029 3.75% 3,102,706 698,256 621,550 63,865 16,283 326,846 1,699 93,887 4/30/2030 4.75% 2,785,198 698,291 573,062 55,608 17,823 339,167 2,748 99,077 4/30/2031 4.75% 2,519,058 700,084 524,070 47,693 19,407 364,558 4,244 104,461 4/30/2032 4.75% 2,265,711 699,945 477,914 40,485 21,017 386,937 5,858 110,047 4/30/2033 4.75% 2,022,889 697,938 434,809 34,009 22,170 396,014 8,042 115,841 4/30/2034 4.75% 1,798,597 697,446 394,874 28,274 23,416 416,366 10,363 121,850 4/30/2035 4.75% 1,579,264 697,552 358,127 23,269 24,679 426,290 12,949 128,082 4/30/2036 4.75% 1,371,884 696,900 324,503 18,962 25,722 438,951 15,949 134,544 4/30/2037 4.75% 1,169,101 697,245 293,887 15,308 26,395 445,502 19,168 141,243 4/30/2038 4.75% 974,574 695,976 266,116 12,252 26,843 445,564 22,914 148,189 4/30/2039 4.75% 789,599 695,609 240,984 9,728 27,452 453,986 26,910 155,388 4/30/2040 4.75% 603,069 695,610 218,232 7,670 28,051 458,953 31,452 162,850 4/30/2041 4.75% 415,090 695,597 197,601 6,014 28,159 453,857 36,468 170,584 4/30/2042 4.75% 233,040 695,973 178,839 4,694 28,272 449,011 41,838 178,597 4/30/2043 4.75% 54,432 696,754 161,711 3,655 28,348 445,736 47,997 186,900 

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) Intial BOY Market Value of assets is MVA at 9/30/2019 based on unaudited financial information provided by the fund administrator.3) Benefit Payments, Admin Expenses, Contributions, and Investment Income shown in plan year ending 4/30/2020 have been prorated to reflect only the per4) Actives are not partitioned. Terminated Vesteds are fully partitioned, Retiree (healthy & disabled) and Beneficiary liabilities are partitioned. As shown in lis

Benefit Payments by 5/1/19 Status

EXHIBIT 20B

BAC 7:135
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist #27: Sensitivity Projections - Contribution Base Units Continue to Decrease at 10-year Historical Rate 

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D lia

Paymen

4/30/2020 5.75% 8,658,473 407,038 1,548,871 170,988 18,376 71,252 45,000 250,000 4/30/2021 5.75% 7,410,085 689,827 1,707,165 202,103 27,916 146,391 0 175,000 4/30/2022 5.75% 6,222,315 680,278 1,026,660 135,827 4,167 149,548 0 62,500 4/30/2023 5.75% 5,861,594 676,013 968,989 125,206 5,901 191,945 0 66,495 4/30/2024 5.75% 5,496,490 665,938 910,783 114,547 7,908 237,409 0 70,644 4/30/2025 5.75% 5,117,769 658,828 852,478 103,953 9,679 259,767 0 74,952 4/30/2026 5.75% 4,751,583 649,576 794,526 93,538 11,217 280,258 3 79,424 4/30/2027 5.75% 4,397,889 641,933 737,421 83,415 13,046 300,880 11 84,067 4/30/2028 5.75% 4,057,274 634,361 681,642 73,699 14,884 312,471 845 88,886 4/30/2029 5.75% 3,737,032 627,457 627,651 64,492 16,443 330,054 1,715 93,887 4/30/2030 6.75% 3,430,556 620,816 578,660 56,151 17,998 342,480 2,775 99,077 4/30/2031 6.75% 3,169,718 615,791 529,189 48,159 19,596 368,119 4,286 104,461 4/30/2032 6.75% 2,910,197 609,122 482,582 40,881 21,222 390,716 5,915 110,047 4/30/2033 6.75% 2,649,469 600,917 439,056 34,341 22,386 399,882 8,121 115,841 4/30/2034 6.75% 2,395,467 594,107 398,731 28,550 23,645 420,433 10,464 121,850 4/30/2035 6.75% 2,133,773 587,878 361,625 23,496 24,920 430,454 13,075 128,082 4/30/2036 6.75% 1,870,739 581,084 327,673 19,147 25,973 443,239 16,105 134,544 4/30/2037 6.75% 1,598,403 575,189 296,758 15,458 26,653 449,853 19,355 141,243 4/30/2038 6.75% 1,319,537 568,037 268,715 12,372 27,105 449,916 23,138 148,189 4/30/2039 6.75% 1,035,011 561,700 243,338 9,823 27,720 458,421 27,173 155,388 4/30/2040 6.75% 732,556 555,727 220,363 7,745 28,325 463,436 31,759 162,850 4/30/2041 6.75% 411,144 549,807 199,531 6,072 28,434 458,290 36,825 170,584 4/30/2042 6.75% 77,157 544,255 180,586 4,740 28,548 453,397 42,247 178,597 

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) Intial BOY Market Value of assets is MVA at 9/30/2019 based on unaudited financial information provided by the fund administrator.3) Benefit Payments, Admin Expenses, Contributions, and Investment Income shown in plan year ending 4/30/2020 have been prorated to reflect only the per4) Actives are not partitioned. Terminated Vesteds are fully partitioned, Retiree (healthy & disabled) and Beneficiary liabilities are partitioned. As shown in lis5) Historical average change in hours was determined to be - 1.06%.

Benefit Payments by 5/1/19 Status

EXHIBIT 20C

BAC 7:136
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist #27: Sensitivity Projections - Contribution Base Units Continue to Decrease at 10-year Historical Rate Minus an Additional Percentage Point

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D lia

Paymen

4/30/2020 5.75% 8,658,473 402,923 1,548,871 170,988 18,376 71,252 45,000 250,000 4/30/2021 5.75% 7,405,851 675,952 1,707,165 202,103 27,916 146,391 0 175,000 4/30/2022 5.75% 6,203,564 659,859 1,026,660 135,827 4,167 149,548 0 62,500 4/30/2023 5.75% 5,820,759 649,094 968,989 125,206 5,901 191,945 0 66,495 4/30/2024 5.75% 5,425,614 632,957 910,783 114,547 7,908 237,409 0 70,644 4/30/2025 5.75% 5,008,888 619,870 852,478 103,953 9,679 259,767 0 74,952 4/30/2026 5.75% 4,596,364 604,986 794,526 93,538 11,217 280,258 3 79,424 4/30/2027 5.75% 4,187,873 591,826 737,421 83,415 13,046 300,880 11 84,067 4/30/2028 5.75% 3,783,634 578,934 681,642 73,699 14,884 312,471 845 88,886 4/30/2029 5.75% 3,390,637 566,845 627,651 64,492 16,443 330,054 1,715 93,887 4/30/2030 6.75% 3,001,889 555,176 578,660 56,151 17,998 342,480 2,775 99,077 4/30/2031 6.75% 2,644,260 545,117 529,189 48,159 19,596 368,119 4,286 104,461 4/30/2032 6.75% 2,276,211 533,763 482,582 40,881 21,222 390,716 5,915 110,047 4/30/2033 6.75% 1,894,786 521,251 439,056 34,341 22,386 399,882 8,121 115,841 4/30/2034 6.75% 1,507,488 510,135 398,731 28,550 23,645 420,433 10,464 121,850 4/30/2035 6.75% 1,099,050 499,685 361,625 23,496 24,920 430,454 13,075 128,082 4/30/2036 6.75% 675,002 488,917 327,673 19,147 25,973 443,239 16,105 134,544 4/30/2037 6.75% 226,676 479,066 296,758 15,458 26,653 449,853 19,355 141,243 

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) Intial BOY Market Value of assets is MVA at 9/30/2019 based on unaudited financial information provided by the fund administrator.3) Benefit Payments, Admin Expenses, Contributions, and Investment Income shown in plan year ending 4/30/2020 have been prorated to reflect only the per4) Actives are not partitioned. Terminated Vesteds are fully partitioned, Retiree (healthy & disabled) and Beneficiary liabilities are partitioned. As shown in lis5) Historical average change in hours was determined to be - 1.06%.

Benefit Payments by 5/1/19 Status

EXHIBIT 20D

BAC 7:137
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 21 

Deterministic Projections

Exhibit 21A (BAC 7:139) projects the Pension Plan's funded percentage using the value of plan 

assets and accrued liabilities during the extended period of May 1, 2020 through 2068. The 

projection includes the impact of benefit suspensions and is made on the same basis as Exhibit 5 

(BAC 7:26). 

BAC 7:138
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 28: Plan-Year-by-Plan-Year Projections of Unit Credit Accrued Liability and Funded Percentages

Plan Year End

Market Value of Asset 

BOY

Unit Credit Accrued 

Liability Funded Percentage

4/30/2020 8,658,473 14,350,395 60.34%

4/30/2021 7,414,585 14,157,484 52.37%

4/30/2022 6,242,411 13,961,526 44.71%

4/30/2023 5,905,656 13,766,005 42.90%

4/30/2024 5,573,471 13,556,744 41.11%

4/30/2025 5,236,794 13,321,975 39.31%

4/30/2026 4,922,353 13,094,265 37.59%

4/30/2027 4,630,407 12,878,605 35.95%

4/30/2028 4,362,129 12,671,316 34.43%

4/30/2029 4,125,329 12,480,674 33.05%

4/30/2030 3,914,015 12,299,566 31.82%

4/30/2031 3,765,900 12,133,293 31.04%

4/30/2032 3,633,759 11,961,228 30.38%

4/30/2033 3,515,759 11,779,825 29.85%

4/30/2034 3,420,527 11,605,111 29.47%

4/30/2035 3,334,851 11,418,638 29.21%

4/30/2036 3,266,265 11,226,746 29.09%

4/30/2037 3,207,852 11,025,370 29.10%

4/30/2038 3,163,799 10,820,298 29.24%

4/30/2039 3,136,017 10,617,652 29.54%

4/30/2040 3,113,808 10,402,887 29.93%

4/30/2041 3,097,734 10,177,287 30.44%

4/30/2042 3,095,802 9,953,775 31.10%

4/30/2043 3,106,143 9,729,433 31.93%

4/30/2044 3,125,281 9,500,414 32.90%

4/30/2045 3,147,890 9,261,775 33.99%

4/30/2046 3,181,683 9,026,768 35.25%

4/30/2047 3,225,298 8,795,329 36.67%

4/30/2048 3,276,136 8,565,950 38.25%

4/30/2049 3,343,575 8,346,522 40.06%

4/30/2050 3,425,315 8,134,876 42.11%

4/30/2051 3,522,798 7,933,536 44.40%

4/30/2052 3,638,304 7,745,954 46.97%

4/30/2053 3,771,538 7,572,666 49.80%

4/30/2054 3,920,979 7,412,033 52.90%

4/30/2055 4,088,923 7,267,488 56.26%

4/30/2056 4,272,539 7,136,681 59.87%

4/30/2057 4,472,194 7,020,073 63.71%

4/30/2058 4,688,662 6,918,615 67.77%

4/30/2059 4,919,849 6,830,163 72.03%

4/30/2060 5,166,646 6,755,984 76.48%

4/30/2061 5,428,837 6,695,831 81.08%

4/30/2062 5,705,948 6,649,132 85.81%

4/30/2063 5,998,073 6,615,814 90.66%

4/30/2064 6,304,819 6,595,198 95.60%

EXHIBIT 21A BAC 7:139
4/30/2065 6,625,992 6,586,726 100.60%

4/30/2066 6,961,429 6,589,808 105.64%

4/30/2067 7,310,730 6,603,547 110.71%

4/30/2068 7,673,899 6,627,365 115.79%

EXHIBIT 21A BAC 7:140

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 23 

Reasons for Critical & Declining Status 

Since the start of the plan year beginning on May 1, 2006, the Plan has seen significant decreases 

in both assets and contributions due in part to the financial crises in 2008 and 2014. During that 

time period, the Plan has seen a 64% decrease in the market value of assets, as well as a 52% 

decrease in contribution hours when comparing the plan year beginning in 2007 to the average 

hours during the plan years beginning in 2016 through 2018. 

The collapse of the financial markets in 2008 resulted in the Plan experiencing its worst investment 

losses on record and contributed to the drastic slowdown of the building and construction industry 

in the geographic area covered by the Plan and the geographic area where contributing employers 

performed work. This, along with the maturity of the Plan, made it difficult for the Plan to recover 

from the economic downturn it had experienced. With an inactive-to-active ratio of over 250% for 

most of the period since 2010, the Plan has found itself in a situation where the contributions from 

active members are not substantial enough to keep the Plan from becoming insolvent. 

On July 29, 2008, the Plan was first certified to be in critical status within the meaning of the 

Pension Protection Act of 2006 (the “PPA”) for the plan year beginning on May 1, 2008. In 

September 2008, the Board of Trustees adopted a Rehabilitation Plan implementing reductions in 

benefits and increases in contributions that were reasonably expected to enable the Plan to emerge 

from critical status at the end of the Rehabilitation Period (10-year period beginning on May 1, 

2009). 

Almost immediately following the adoption of the initial Rehabilitation Plan, the great recession 

of 2008 started. The economic conditions in the building and construction trades did not improve, 

but rather continued to decline. In light of this information and based on reasonable actuarial 

assumptions, the Board of Trustees concluded that the Plan could not reasonably be expected to 

emerge from critical status by the end of the Rehabilitation period. This was reflected in the 

updated Rehabilitation Plan, which the Board of Trustees adopted on February 11, 2011. 

The primary measures available to the Board of Trustees to allow the Plan to avoid insolvency are 

employer contribution increases and benefit reductions. Over the past ten (10) years, the Board of 

Trustees has worked with the bargaining parties to develop sustainable combinations of employer 

contributions and reasonable pension benefit levels. Simultaneously, the Board of Trustees and 

bargaining parties have been constrained by the collective bargaining process, the burdens of 

increased outgoing reciprocity payments, and the amounts that contributing employers are willing 

and able to contribute to the Plan. 

As of the plan year beginning May 1, 2006, the Plan was 75% funded on a market basis, and its 

assets returned 10.97% on its investments. At the time, there were 201 retirees, surviving spouses, 

and alternate payees in pay status; 119 inactive vested participants and deferred beneficiaries; and 

195 active participants working an average of 1,139 hours per year. The present value of 

accumulated vested benefits was $33,853,627, and the market value of assets was $26,539,420. 

BAC 7:142
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Since that time, the Plan’s demographics and asset base have declined to its current levels. At 

present, the Plan is 24% funded on an actuarial basis, and it is facing a projected insolvency date 

of 2023. As of May 1, 2019, the Plan was 23.1% funded on a market basis, and its assets returned 

4.02% on its investments for the most recent plan year. As of the most recently completed actuarial 

valuation as of May 1, 2019, there were 213 retirees, surviving spouses, and alternate payees in 

pay status; 109 inactive vested participants and deferred beneficiaries; and 106 active participants 

working an average of 959 hours per year. The present value of accumulated vested benefits is 

$41,258,612, and the market value of assets was $9,533,656. 

2006: As of May 1, 2006, the Plan’s level of funding was 75% on a market basis. The number of 

active participants was down 11.0% from the previous plan year, and the contribution hours 

decreased by 12.3% from the previous plan year. The Plan’s investments returned 10.97% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate to $3.55 per hour from $3.30, effective June 1, 2006. After much debate and with 

a few alternate proposals that were in effect only for a short period of time, the Board of Trustees 

also adopted a decrease in the rate at which future benefits would accrue. Effective May 1, 2006, 

the future service benefit accrual rate was decreased to 1.00% of $2.00 for employer contributions 

made after May 1, 2006, with contributions above $2.00 non-credited. 

2007: As of May 1, 2007, the Plan’s level of funding was 79% on a market basis. The number of 

active participants was down 11.8% from the previous plan year, and the contribution hours 

decreased by 11.4% from the previous plan year. The Plan’s investments returned 10.45% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $3.55 per hour to $4.01 per hour, effective June 1, 2007. The Board of 

Trustees also adopted another benefit change. On September 7, 2007, with an effective date of 

January 1, 2008, the Board of Trustees added the qualified joint and 75% benefit option, as 

required by law. No cost was associated with this change. 

2008: As of May 1, 2008, the Plan’s level of funding was 71% on a market basis. The number of 

active participants was down 9.3% from the previous plan year, and the contribution hours 

decreased by 23.8% from the previous plan year. The Plan’s investments returned a loss of 2.69% 

on a market basis. In response to the funding concerns, the bargaining parties agreed to increase 

the contribution rate from $4.01 per hour to $4.41 per hour, effective September 1, 2008. In July 

2008, the Board of Trustees changed investment firms, going with Smith Barney, Citigroup 

Global, in order to improve investment returns. 

During this plan year, the Board of Trustees adopted several amendments to the Plan to eliminate 

several subsidies and ancillary benefits following passage of the PPA. The Board of Trustees also 

adopted its first Rehabilitation Plan, and on July 29, 2008, the actuary certified that the Plan was 

in “critical” status under the PPA. The Notice of Critical Status was issued to contributing 

employers and participants on August 19, 2008. Under the Rehabilitation Plan, the Plan was 

projected to exceed 80% funded by the plan year beginning on May 1, 2013, but not to exit critical 

status without a funding deficiency in the credit balance until May 1, 2023. Thus, the initial 

Rehabilitation Plan made use of the exhaustion of all reasonable measures clause at Internal 

Revenue Code (“Code”) § 432(e)(3)(A)(ii). 

BAC 7:143
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

On September 22, 2008, with an effective date of May 1, 2009, the Board of Trustees made the 

following benefit adjustments: 

• The early retirement factor was changed from 1/3 of 1% to .5833% for each month 

under age 62. Participants who were at least age 55 and had at least 10 years of 

service as of May 1, 2009 would use the 1/3 of 1% reduction. This reduction closely 

approximates a full actuarial adjustment at most ages, but is easier to communicate 

than an exact actuarial equivalence. The purpose of preserving the prior rules for 

those persons already eligible to retire was to prevent a large rush to retire in the 

window between the announcement and the effective date of the change. A large 

group of immediate retirements would have had a more significant negative impact 

on the Plan than preserving the prior rules would have had. 

• The 60-month guarantee post-retirement death benefit was removed for participants 

not in pay status as of May 1, 2009. 

• The pre-retirement 5-year certain death benefit was removed for deaths after May 

1, 2009. 

• The total and permanent disability benefit was eliminated for disabilities after May 

1, 2009. 

• The cost of the pre-retirement surviving spouse benefit would be paid by the 

participant. 

These benefit cuts were scheduled to reduce the present value of the accumulated benefits by 

approximately $2.3 million. At the time, the present value of accumulated vested benefits was 

$34,672,083, and the market value of assets was $25,340,853. The changes above included all 

such changes available as adjustable benefits. 

2009: As of May 1, 2009, the Plan’s level of funding was 51.6% on a market basis. The number 

of active participants was down 12.8% from the previous plan year, and the contribution hours 

decreased by 11.1% from the previous plan year. The Plan’s investments returned a loss of 24.68% 

on a market basis. In response to the funding concerns, the bargaining parties agreed to increase 

the contribution rate from $4.41 per hour to $4.81 per hour, effective June 1, 2009. The Board of 

Trustees made no benefit changes during this plan year. However, during the previous plan year, 

Congress passed the Worker, Retiree, and Employer Recovery Act of 2008, which allowed the 

Board of Trustees to freeze the current Rehabilitation Plan for a 1-year period to evaluate the 

impact of the asset losses caused by the market crash of 2008-2009. At the time, the present value 

of accumulated vested benefits was $33,867,493, and the market value of assets was $17,516,662. 

After this large investment loss, the annual update to the Rehabilitation Plan first showed a 

projected insolvency. The Board of Trustees continued to make use of the exhaustion of all 

reasonable measures clause and began attempting to forestall insolvency. Insolvency was expected 

by April 30, 2023. 

BAC 7:144
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

2010: As of May 1, 2010, the Plan’s level of funding was 59.7% on a market basis. The number 

of active participants was up 3.7% from the previous plan year, and the contribution hours 

increased by 18% from the previous plan year. The Plan’s investments returned 29.68% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $4.81 per hour to $5.21 per hour, effective June 1, 2010. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $34,484,817, and the market value of assets was $20,654,452. 

The expected insolvency date based on this valuation basis was April 30, 2029. 

2011: As of May 1, 2011, the Plan’s level of funding was 61.6% on a market basis. The number 

of active participants was down 7.1% from the previous plan year, and the contribution hours 

decreased by 16% from the previous plan year. The Plan’s investments returned 14.16% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $5.21 per hour to $5.61 per hour, effective June 1, 2011. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $34,740,407, and the market value of assets was $21,415,024. In 

June 2011, the Board of Trustees agreed to enter into a fiduciary asset management agreement 

with Morgan Stanley Smith Barney LLC in an attempt to increase investment returns. The 

expected insolvency date based on this valuation basis was April 30, 2029. 

2012: As of May 1, 2012, the Plan’s level of funding was 55.3% on a market basis. The number 

of active participants was up 7.6% from the previous plan year, and the contribution hours 

increased by 12.8% from the previous plan year. The Plan’s investments returned 0.71% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $5.61 per hour to $6.01 per hour, effective June 1, 2012. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $35,419,483, and the market value of assets was $19,614,346. 

The expected insolvency date based on this valuation basis was April 30, 2027. 

2013: As of May 1, 2013, the Plan’s level of funding was 53.8% on a market basis. The number 

of active participants was down 7.8% from the previous plan year, and the contribution hours 

decreased by 20.1% from the previous plan year. The Plan’s investments returned 8.65% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $6.01 per hour to $6.41 per hour, effective June 1, 2013. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $35,456,723, and the market value of assets was $19,101,019. 

The expected insolvency date based on this valuation basis was April 30, 2026. 

2014: As of May 1, 2014, the Plan’s level of funding was 51.5% on a market basis. The number 

of active participants was down 20% from the previous plan year, and the contribution hours 

decreased by 17.6% from the previous plan year. The Plan’s investments returned 8.27% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $6.41 per hour to $6.46 per hour, effective June 1, 2014. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

BAC 7:145
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

accumulated vested benefits was $35,571,497, and the market value of assets was $18,341,720. 

The expected insolvency date based on this valuation basis was April 30, 2025. 

2015: As of May 1, 2015, the Plan’s level of funding was 48.3% on a market basis. The number 

of active participants was up 38.5% from the previous plan year, and the contribution hours 

increased by 41.3% from the previous plan year. The Plan’s investments returned 6.72% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $6.46 per hour to $6.66 per hour, effective June 1, 2015. At the time, the 

present value of accumulated vested benefits was $35,983,111, and the market value of assets was 

$17,411,864. The expected insolvency date based on this valuation basis was April 30, 2026. 

During this plan year, the Board of Trustees began to explore the possibility of a MPRA suspension 

(see 2016 below). 

2016: As of May 1, 2016, the Plan’s level of funding was 39.6% on a market basis. The number 

of active participants was down 12.5% from the previous plan year, and the contribution hours 

decreased by 13.3% from the previous plan year. The Plan’s investments returned a loss of 3.48% 

on a market basis. In response to the funding concerns, the bargaining parties agreed to increase 

the contribution rate from $6.66 per hour to $6.80 per hour, effective June 1, 2016. At the time, 

the present value of accumulated vested benefits was $35,861,466, and the market value of assets 

was $14,219,652. The expected insolvency date based on this valuation basis was April 30, 2025. 

In June 2016, the Plan filed for a MPRA suspension. In January 2017, the suspension application 

was withdrawn after discussions with the regulatory agencies. In early 2017 (after the application 

was withdrawn), the actuary determined that a suspension submission without a partition probably 

would be unsuccessful. The Board of Trustees opted to wait and see if there would be any 

additional legislative relief before attempting a partition. 

While working on the suspension application, the Board of Trustees made a change to the Plan’s 

accrual formula. Prior to the change, the accrual rate was 1% of the first $2.00 contributed. Any 

contribution amount in excess of $2.00 was non-credited. After the change, the accrual rate was 

0.3% of the first $6.66 contributed and 1% of any amount contributed in excess of $6.66. As noted 

above, the bargaining parties responded by increasing the contribution rate from $6.66 per hour to 

$6.80 per hour. The effective average benefit rate became 0.314% (= {$0.02+$0.0014}/$6.80). 

Under this new benefit design, each time the contribution rate is increased, the average benefit 

credit rates also increase. This was done to provide a small incentive for members to stay active in 

the Plan and also to attract new members. 

2017: As of May 1, 2017, the Plan’s level of funding was 32.8% on a market basis. The number 

of active participants was down 19% from the previous plan year, and the contribution hours 

decreased by 26.2% from the previous plan year. The Plan’s investments returned 10.94% on a 

market basis. At the time, the present value of accumulated vested benefits was $39,294,510, and 

the market value of assets was $12,893,823. The expected insolvency date based on this valuation 

basis was April 30, 2023. 

2018: As of May 1, 2018, the Plan’s level of funding was 28.4% on a market basis. The number 

of active participants was up 12.7% from the previous plan year, and the contribution hours 

BAC 7:146
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

increased by 24.2% from the previous plan year. The Plan’s investments returned 8.60% on a 

market basis. At the time, the present value of accumulated vested benefits was $40,609,803, and 

the market value of assets was $11,528,839. The expected insolvency date based on this valuation 

basis was April 30, 2023. 

2019: As of May 1, 2019, the Plan’s level of funding was 23.1% on a market basis. The number 

of active participants was down 7.8% from the previous plan year, and the contribution hours 

decreased by 2.6% from the previous plan year. The Plan’s investments returned 4.02% on a 

market basis. At the time, the present value of accumulated vested benefits was $41,258,612, and 

the market value of assets was $9,533,656. The expected insolvency date based on this valuation 

basis was April 30, 2023. 

It is the Board of Trustees’ opinion that as of the filing of this application all reasonable measures 

that the Plan could have taken have been taken in an effort to avoid insolvency. Despite these 

measures, the Plan is projected to become insolvent unless benefits are suspended to the maximum 

allowable extent and the parallel partition request is approved. 

Going forward, the Board of Trustees believes the declining health of the plan (not the amount of 

work available or expected to be available) was the biggest single driver of the Fund’s decline. 

Kent State University, which is in the area of the fund, has significant future plans for new 

buildings which will very likely include brick work. The Bureau of Labor Statistics recently 

showed brick and related trades as growing nationwide. The population of the counties in the 

geographic area covered by the Plan have remained fairly stable.

If there is no suspension, we believe recent declines will continue. We estimate the average rate of 

decline will be approximately 6%, perhaps with slightly lower declines before insolvency and a 

bump at the time of insolvency. 

If the Plan can be stabilized with a suspension, the Board of Trustees expects they can stabilize 

hours and work at near the current level. For projections under the suspension scenario, we 

determined that a modest future decline of, on average, 1% was more realistic to account for the 

possibility of sporadic loss of additional Employers or members continuing to transfer home locals 

occasionally. 

BAC 7:147
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 24 

Plan Sponsor ID and Contact Information 

Plan Sponsor: Board of Trustees – Bricklayers 7 & Allied Craftsmen Local No 7 

Address: 33 Fitch Blvd., Austintown, Ohio 44515 

Phone Number: (330) 270-0453 

EIN: 34-6666798

BAC 7:148
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 25 

Plan Identification Information

Plan Name: Bricklayers & Allied Craftsmen Local 7 Pension 

EIN: 34-6666798

Plan Number: 001

BAC 7:149
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 26 

Enrolled Actuary Information 

Name Kathryn Garrity, FSA, EA, MAAA 

Enrollment Number 17-05379

Contact Information United Actuarial Services, Inc. 

11590 North Meridian St., Suite 610 

Carmel, Indiana 46032 

(317) 580-8688 (Phone)

(317) 580-8651 (Fax)

Email: kgarrity@unitedactuarial.com

BAC 7:151
BAC 7:152


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 28 

Plan Documents 

The documents are attached as follows: 

Exhibit 28A (BAC 7:156) – Plan Document 

Exhibit 28B (BAC 7:228) – Amendments 

Exhibit 28C (BAC 7:245) – SPD 

Exhibit 28D (BAC 7:288) – Determination Letter 

Due to the recency of the Plan’s SPD, there have been no additional summaries of material 

modifications sent since the SPD was distributed. 

BAC 7:155
EXHIBIT 28A BAC 7:156
EXHIBIT 28A BAC 7:157
EXHIBIT 28A BAC 7:158
EXHIBIT 28A BAC 7:159
EXHIBIT 28A BAC 7:160