Checklist Item #9 Application for Approval for Suspension of 

Benefits Under MPRA

Iron Workers Local 17 Pension Fund EIN: 51-0161467

Plan No.: 001

Does the application 

include a demonstration 

that the limitations on 

individual suspensions are 

satisfied, including 

calculations regarding:

• the guaranteebased limitation,

• the disability-based

limitation, and

• the age-based

limitation.

See section 4.01.

The application filed on behalf of the Iron Workers 

Local 17 Pension Fund includes five separate 

benefit demonstrations attached as pages 

IW17PF_201 - 205. The demonstrations show an 

example of the application of the Proposed 

Suspension on:

• Example 1 of an affected participant under

75 (page IW17PF_201);

• Example 2 of an affected participant under

75 (page IW17PF_202);

• participants between the ages of 75 and 80

years old (page IW17PF_203);

• participant whose 110% PBGC guarantee

exceed the current monthly benefit (page

IW17PF_204); and

• participant whose 110% PBGC Guarantee

limitation applies (page IW17PF_205).

The Proposed Suspension does not affect any 

participant or beneficiary in the Pension Fund that 

was awarded a Disability Pension. Additionally, 

the Proposed Suspension does not affect any 

participant or beneficiary that will be at least age 

80 as of the Effective Date of the Suspension of 

December 1, 2016. Separate demonstrations are 

not being provided for these two groups of 

Exempted Participants. 

Special Issues: 

The application of the guarantee based limitation 

is based upon the total benefit payable to the 

participant. In the event that the benefit is 

allocated under a Qualified Domestic Relations 

Order (QDRO), the determination whether the 

guarantee level is based upon the total benefit 

payable prior to allocation or the individual benefit 

payable to the participant separate from the 

Alternate Payee depends upon the terms of the 

IW17PF_199
QDRO. If the QDRO provides the Alternate Payee 

a shared interest with the participant, then the 

Participant’s total benefit is used for purposes of 

determining the guarantee based limitation as of 

the Effective Date of the Suspension. If the QDRO 

provides a separate interest for the Alternate 

Payee, then the Alternate Payee’s separate benefit 

level is used to determine the application of the 

guarantee based limitations. 

The application of the age-based limitation for 

participants that elected joint and survivor benefits 

is also determined based upon the age of the 

participant as of the Effective Date of the 

Suspension, unless the participant is deceased as 

of that date. In that case, the surviving spouse’s 

age will be used to determine the application of the 

age based limitation. 

Finally, in the event that the age-based limitations 

apply to a participant that has a QDRO, the type of 

QDRO will determine whether the Pension Fund 

uses the participant’s or Alternate Payee’s age. If 

the QDRO provides the Alternate Payee a shared 

interest with the participant, then the Participant’s 

age is used for purposes of determining the age as 

of the Effective Date of the Suspension. If the 

QDRO provides a separate interest for the 

Alternate Payee, then the Alternate Payee’s age is 

use to determine the application of the age-based 

limitations. 

IW17PF_200
Iron Workers Local 17 Pension Fund

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example #1 of Participant Who Is Under Age 75

Date of birth 12/16/1945

Date of retirement 08/01/2009

Age at retirement date 63 years 7 months

Age at suspension date 70 years 11 months

Current monthly benefit $560.50

Total accrued benefit payable at normal retirement age $585.00

Total Benefit Credits 10.00

Total Benefit Credits earned in excess of one in a year 0.00

Reduced Benefit Credits 10.00

Type of pension Early

Form of pension Single Life Annuity

Calculation of 110% of PBGC Guarantee

Current monthly benefit / reduced Benefit Credits $56.05

PBGC guaranteed accrual rate $35.75

PBGC guaranteed benefit $357.50

110% of PBGC guaranteed benefit $393.25

Calculation of Monthly Benefit under Proposed Suspension

Total accrued benefit / total Benefit Credits $58.50

Accrual rate based on proposed suspension $58.50

Months from age 62 (at retirement) 0

Early retirement reduction factor based on proposed suspension 95.7500%

Joint and survivor reduction factor N/A

Partial lump sum amount paid $0.00

Benefit prior to age-based limitation $560.50

Months from age 80 (at suspension date) 109

Benefit after age-based limitation $560.50

Final Monthly Benefit under Proposed Suspension $560.50

IW17PF_201
Iron Workers Local 17 Pension Fund

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example #2 of Participant Who Is Under Age 75

Date of birth 11/26/1951

Date of retirement 12/01/2006

Age at retirement date 55 years 0 months

Age at suspension date 65 years 0 months

Current monthly benefit $1,915.00

Total accrued benefit payable at normal retirement age $2,125.00

Total Benefit Credits 21.25

Total Benefit Credits earned in excess of one in a year 5.00

Reduced Benefit Credits 16.25

Type of pension Unreduced

Form of pension Single Life Annuity

Calculation of 110% of PBGC Guarantee

Current monthly benefit / reduced Benefit Credits $117.85

PBGC guaranteed accrual rate $35.75

PBGC guaranteed benefit $580.94

110% of PBGC guaranteed benefit $639.03

Calculation of Monthly Benefit under Proposed Suspension

Total accrued benefit / total Benefit Credits $100.00

Accrual rate based on proposed suspension $72.00

Months from age 62 (at retirement) 84

Early retirement reduction factor based on proposed suspension 89.5000%

Joint and survivor reduction factor N/A

Partial lump sum amount paid $210.00

Benefit prior to age-based limitation $837.50

Months from age 80 (at suspension date) 180

Benefit after age-based limitation $837.50

Final Monthly Benefit under Proposed Suspension $837.50

IW17PF_202
Iron Workers Local 17 Pension Fund

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Age-Based Limitation for Participant Between Age 75 and 80

Date of birth 08/30/1940

Date of retirement 08/01/2001

Age at retirement date 60 years 11 months

Age at suspension date 76 years 3 months

Current monthly benefit $1,740.00

Total accrued benefit payable at normal retirement age $1,800.00

Total Benefit Credits 18.00

Total Benefit Credits earned in excess of one in a year 0.00

Reduced Benefit Credits 18.00

Type of pension Unreduced

Form of pension Single Life Annuity

Calculation of 110% of PBGC Guarantee

Current monthly benefit / reduced Benefit Credits $96.67

PBGC guaranteed accrual rate $35.75

PBGC guaranteed benefit $643.50

110% of PBGC guaranteed benefit $707.85

Calculation of Monthly Benefit under Proposed Suspension

Total accrued benefit / total Benefit Credits $100.00

Accrual rate based on proposed suspension $72.00

Months from age 62 (at retirement) 13

Early retirement reduction factor based on proposed suspension 98.3750%

Joint and survivor reduction factor N/A

Partial lump sum amount paid $60.00

Benefit prior to age-based limitation $1,215.00

Months from age 80 (at suspension date) 45

Benefit after age-based limitation $1,346.50

Final Monthly Benefit under Proposed Suspension $1,346.50

IW17PF_203
Iron Workers Local 17 Pension Fund

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Participant Whose 110% PBGC Guarantee Exceeds Current Monthly Benefit

Date of birth 12/11/1944

Date of retirement 01/01/2007

Age at retirement date 62 years 0 months

Age at suspension date 71 years 11 months

Current monthly benefit $166.50

Total accrued benefit payable at normal retirement age $379.98

Total Benefit Credits 13.25

Total Benefit Credits earned in excess of one in a year 0.00

Reduced Benefit Credits 13.25

Type of pension Surviving Spouse

Form of pension 50% Joint and Survivor

Calculation of 110% of PBGC Guarantee

Current monthly benefit / reduced Benefit Credits $12.57

PBGC guaranteed accrual rate $12.57

PBGC guaranteed benefit $166.55

110% of PBGC guaranteed benefit $183.21

Calculation of Monthly Benefit under Proposed Suspension

Total accrued benefit / total Benefit Credits $28.68

Accrual rate based on proposed suspension $28.68

Months from age 62 (at retirement) 0

Early retirement reduction factor based on proposed suspension 100.0000%

Joint and survivor reduction factor 88.00%

Partial lump sum amount paid $0.00

Benefit prior to age-based limitation $334.41

Months from age 80 (at suspension date) N/A

Benefit after age-based limitation N/A

Additional Calculations for Surviving Spouse's Benefit under 

Proposed Suspension

Date of birth 12/22/1945

Age at suspension date 70 years 11 months

Benefit prior to age-based limitation $167.50

Months from age 80 (at suspension date) 109

Benefit after age-based limitation $167.50

Final Monthly Benefit under Proposed Suspension $166.50

IW17PF_204
Iron Workers Local 17 Pension Fund

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Participant Whose 110% PBGC Guarantee Limitation Applies

Date of birth 10/07/1950

Date of retirement 04/01/2006

Age at retirement date 55 years 5 months

Age at suspension date 66 years 1 months

Current monthly benefit $623.50

Total accrued benefit payable at normal retirement age $1,170.00

Total Benefit Credits 19.50

Total Benefit Credits earned in excess of one in a year 4.50

Reduced Benefit Credits 15.00

Type of pension Early

Form of pension 50% Joint and Survivor

Calculation of 110% of PBGC Guarantee

Current monthly benefit / reduced Benefit Credits $41.57

PBGC guaranteed accrual rate $33.93

PBGC guaranteed benefit $508.95

110% of PBGC guaranteed benefit $559.85

Calculation of Monthly Benefit under Proposed Suspension

Total accrued benefit / total Benefit Credits $60.00

Accrual rate based on proposed suspension $60.00

Months from age 62 (at retirement) 79

Early retirement reduction factor based on proposed suspension 66.5000%

Joint and survivor reduction factor 88.00%

Partial lump sum amount paid $70.00

Benefit prior to age-based limitation $457.00

Months from age 80 (at suspension date) 167

Benefit after age-based limitation $457.00

Final Benefit under Proposed Suspension $559.85

Surviving Spouse's Monthly Benefit under Current Plan $342.50

Calculation of Surviving Spouse's PBGC Guarantee

Surviving spouse's monthly benefit / reduced Benefit Credits $22.83

PBGC guaranteed accrual rate $19.87

PBGC guaranteed benefit $298.05

110% of PBGC guaranteed benefit $327.86

Calculation of Surviving Spouse's Monthly Benefit under 

Proposed Suspension

Participant's benefit under proposed suspension, prior to adjustment 

for partial lump sum paid and 110% PBGC guarantee limitation $527.00

50% of the above amount $263.50

Surviving Spouse's Final Monthly Benefit under Proposed 

Suspension $327.86

IW17PF_205
Checklist Item #10 Application for Approval of a Suspension of 

Benefits Under MPRA

Iron Workers Local 17 Pension Fund EIN: 51-0161467

Plan No.: 001

Does the application 

include a demonstration 

that the proposed 

suspension is reasonably 

estimated to achieve the 

level necessary to avoid 

insolvency for the 

extended period, including 

illustrations regarding the 

plan’s solvency ratio and 

available resources. 

See section 4.02(1). 

The application filed on behalf of the Iron Workers 

Local 17 Pension Fund includes an Actuarial 

Certification of Plan Solvency under ERISA Section 

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 December, 1 2016 as an 

attachment to Checklist Item #7. Exhibit IV of this 

Report provides an illustration based upon 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 the period beginning May 1, 2015 through 

April 30, 2055. As of April 30, 2055, the funding 

percentage for the Pension Fund is projected to be 

less than 100%. Exhibit IV to the Report, which is 

based upon our interpretation of the requirements 

under Revenue Procedure 2015-34, Section 

4.02(1), is included at pages IW17PF_044 -047. 

IW17PF_206
Checklist Item #11 Application for Approval of a Suspension of 

Benefits Under MPRA

Iron Workers Local 17 Pension Fund EIN: 51-0161467

Plan No.: 001

Does the application 

include the required 

illustration utilizing 

stochastic projections. 

(This illustration is not 

required if the plan is not 

required to appoint a

retiree representative 

under §432(e)(9)(B)(v)(I) 

and stochastic projections 

were not used in making 

the required 

determination.) 

See section 4.02(2).

The application filed on behalf of the Iron Workers 

Local 17 Pension Fund includes an Actuarial 

Certification of Plan Solvency under ERISA 

Section 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 December 

1, 2016 as an attachment to Checklist Item #7. 

Exhibit V of this Report provides an illustration 

based upon the stochastic basis showing that the 

proposed suspension is reasonably estimated to 

avoid insolvency by more than 50% probability 

throughout the extended period. While this 

Pension Fund was not required to provide this 

modelling, the Trustees evaluated the Proposed 

Benefit Suspension Plan using stochastic models, 

so the report is being provided as additional 

support for the application. Exhibit V to the Report

is included at page IW17PF_048. 

IW17PF_207
Checklist Item #12 Application for Approval of a Suspension of 

Benefits Under MPRA

Iron Workers Local 17 Pension Fund EIN: 51-0161467

Plan No.: 001

Does the application 

include a demonstration 

that the proposed 

suspension is not 

projected to materially 

exceed the level 

necessary to avoid 

insolvency, including 

illustrations regarding 

the plan’s solvency ratio 

and available resources. 

See section 4.03. 

The application filed on behalf of the Iron Workers 

Local 17 Pension Fund includes an Actuarial 

Certification of Plan Solvency under ERISA Section 

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 December 1, 2016 as an 

attachment to Checklist Item #7. Exhibits VI and VII 

of this Report provide an illustration based upon the 

stochastic basis showing that the proposed 

suspension is reasonably estimated to avoid 

insolvency, but not to materially exceed the level 

needed to avoid insolvency throughout the extended 

period. The Report includes a year-by-year solvency 

projection with the solvency ratio and also separately 

identifies the market value of assets, contributions, 

investment earnings, plan benefits and expenses. 

Exhibits VI and VII to the Report, which are based 

upon our interpretation of the requirements under 

Revenue Procedure 2015-34, Section 4.03, are 

included at pages IW17PF_049 - 052. 

IW17PF_208
Checklist Item #13 Application for Approval of a Suspension of 

Benefits Under MPRA

Iron Workers Local 17 Pension Fund EIN: 51-0161467

Plan No.: 001

Does the application 

include a demonstration 

that the proposed 

suspension is equitably 

distributed, including

• a list of the factors 

taken into account, 

• an explanation of 

why none of the 

factors listed in 

§432(e)(9)(D)(vi) 

were taken into 

account (if 

applicable), and 

• how any difference 

in treatment among

categories or groups 

of individuals results 

from a reasonable 

application of the 

relevant factors. 

See section 4.04.

The application filed on behalf of the Iron Workers Local 

17 Pension Fund includes a series of benefit reductions 

and adjustments which were designed by the Board of 

Trustees to be equitably distributed among the affected 

Participants and Beneficiaries. The following factors 

listed in Section 432(e)(9)(D)(vi) were taken into account

in designing the Suspension Plan: 

• Age and life expectancy of the participants in the 

Plan. As required, benefits for participants age 80 and 

over are not affected, and benefits for participants 

age 75 and over, but not age 80, are affected to a 

lesser extent. Disability pensioners are also excluded 

from any benefit suspensions. All other affected 

participants are treated equally without any additional 

benefit reductions specific to age or life expectancy.

• The length of time the participants are in pay status. 

Participants who have been in pay status for an 

extended period retired when benefit amounts were 

lower, and are affected to a lesser extent. They may 

be exempt from any benefit suspensions due to age 

or because the benefit amounts are low enough to be 

exempt under the 110% of the PBGC guarantee 

limitation. All other affected participants are treated 

equally without any additional benefit reductions 

specific to the amount of time they have been in pay 

status. 

• Amount of benefit. All participants’ accrued benefits 

are being modified so that the highest average 

accrual rate for any participant is now $72.00 per 

Benefit Credit. Those participants with the greatest 

accrued benefits generally retired from active 

employment between 2002 and 2004. This group, 

which accrued their benefits under the $100 per 

Benefit Credit time period will be affected to the 

greatest extent. Beginning in November 2004, the 

IW17PF_209
Pension Fund was amended to reduce the Benefit 

Credit down to $50. This benefit change will impact 

the group of participants with the greatest accrued 

benefit to a greater extent than the rest of the 

population. The change to eliminate excess Pension 

Credits will impact affected participants who worked 

more 1,200 hours in a Plan Year to a greater extent 

than the participants that worked 1,200 or less. 

However, the Trustees determined that these excess 

Benefit Credits would be eliminated upon insolvency 

under the PBGC rules. 

• Extent to which participant or beneficiary is receiving 

a subsidized benefit. Participants and their surviving 

spouses who retired with unreduced early retirement 

benefits prior to May 1, 2009 will be subject to an 

early retirement reduction. All other participants that 

retired early, either without 30 years or Vesting 

Service or after May 1, 2009, received either a lesser 

or no subsidy upon retirement prior to Normal 

Retirement Age.

• History of benefit increases and reductions. The 

Board of Trustees for the Pension Fund began 

reducing the accrued benefits on a prospective basis 

in 2004. Since that time, the Trustees made a series 

of benefit changes including elimination of most 

adjustable benefits under the initial Rehabilitation 

Plan in May 2009. Since active participants have 

been subject to greater benefit reductions than those 

who retired prior to the Rehabilitation Plan, their 

benefits are reduced less under this proposed 

Suspension Plan than those of those who retired prior 

to the Rehabilitation Plan. 

• Any discrepancies between active and retiree 

benefits. The proposed Suspension Plan adopts the 

same changes for both the active and retired 

participants, however, since active participants have 

been subject to greater benefit reductions than those 

who retired prior to the Rehabilitation Plan, the impact 

of the changes are that the active benefits are 

IW17PF_210
reduced less than those of those who retired prior to 

May 2009. 

• Extent to which active participants are reasonably

likely to withdraw support for the plan, accelerating

employer withdrawals from the plan and increasing

the risk of additional benefit reductions for

participants in and out of pay status. Current active

participants need to work 1,900 hours in Covered

Employment, which results in a contribution

requirement of $19,000, in order to earn one full year

of Benefit Credit in the amount of $50. Even with this

burdensome contribution, the Pension Fund is still

projected to become insolvent in 2025. Any changes

that do not require additional contributions into this

Pension Fund to avoid insolvency should help

maintain the active participant base. Active

participants who commenced participation after

November 1, 2004, when the benefit accrual rate was

lowered to $50, will likely not see any reduction in

benefits resulting from the suspension. Active

participants who commenced participation after May

1, 2005 when the excess Benefit Credits were

eliminated, will not see any reduction under the

proposed Suspension Plan. Active participants who

commenced participation after November 30, 1995

will likely only see a reduction in benefits resulting

from the elimination of the excess Benefit Credits that

could have been earned before April 30, 2005. The

proposed Suspension Plan should help stabilize the

Pension Fund, avoiding insolvency, without

adversely impacting the active participants by

requiring additional contributions.

The proposed suspension is applied consistently to all 

groups of participants.

IW17PF_211