Milliman Actuarial Certification 

Issued December 6, 2017 

Alaska Ironworkers Pension Plan 

Actuarial Certification of Plan Solvency of Proposed Benefit 

Suspensions as of July 1, 2018 

Prepared by: 

Mark C. Olleman 

FSA, EA, MAAA 

Josh Goodwin 

ASA, EA, MAAA 

Milliman, Inc. 

1301 Fifth Avenue, Suite 3800 

Seattle WA 98101-2605

Tel +1 206 624 7940 

Fax +1 206 623 3485 

milliman.com 

Exhibit 4 AIPT 097
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 i 

Alaska Ironworkers Pension Plan 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions 

as of July 1, 2018 of the Alaska Ironworkers Pension Plan 

This Actuarial Certification of Plan Solvency for the Alaska Ironworkers Pension Plan (the “Plan”) has been 

completed in accordance with our understanding of IRC §432(e)(9)(C)(i) (including §1.432(e)(9)-1 and 

Revenue Procedure 2017-43). The results are contained in this report, including a summary of the underlying 

actuarial assumptions. 

Purpose of the Report 

The Plan was certified as “critical and declining” for the plan year beginning July 1, 2017. The Trustees have 

chosen to pursue benefit suspensions which are allowed to such plans under §432. We have completed our 

analysis of the Trustees’ proposed benefit suspensions and determined that the proposed suspensions of 

benefits would likely enable the Plan to avoid insolvency (as defined in IRC §418E) assuming they continue 

indefinitely and occur no later than July 1, 2018. In addition, we have also completed the analysis required to 

satisfy §432(e)(9)(D)(iv) (taking into account §1.432(e)(9)-1 and Revenue Procedure 2017-43) which requires 

that the proposed suspension does not materially exceed the level necessary to avoid insolvency. 

Limited Distribution 

Milliman’s work is prepared solely for the internal business use of the Trustees of the Plan, and may not be 

provided to third parties without our prior written consent. We understand this will be provided to Treasury and 

posted on their website. Milliman does not intend to benefit or create a legal duty to any third party recipient of 

its work product. Milliman’s consent to release its work product to any third party may be conditioned on the 

third party signing a release, subject to the following exceptions: 

 The Plan may provide a copy of Milliman’s work, in its entirety, to the Plan’s professional service advisors 

who are subject to a duty of confidentiality and who agree to not use Milliman’s work for any purpose 

other than to benefit the Plan. 

 The Plan may distribute certain work product that Milliman and the Plan Sponsor mutually agree is 

appropriate as may be required by the Pension Protection Act of 2006. 

Third party recipients of Milliman’s work product should engage their own qualified professionals for advice 

appropriate to their specific needs. 

Reliance 

In preparing the report, we relied on our July 1, 2016 Actuarial Valuation, and, without audit, information 

(some oral and some in writing) supplied by the Plan’s administrator and auditor. This information includes, 

but is not limited to, plan documents and provisions, participant data, and financial information. We found this 

information to be reasonably consistent and comparable with information used for other purposes. The results 

depend on the integrity of this information. If any of this information is incomplete or inaccurate, our results 

may be different and our calculations may need to be revised. 

 

Exhibit 4 AIPT 098

Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 iii 

Alaska Ironworkers Pension Plan 

Table of Contents 

A. Summary of Key Information and Results .................................................................................................... 1

B. Development of Projected June 30, 2018 Market Value of Assets .............................................................. 3

C. Deterministic Projection of Current Plan without Proposed Suspension ...................................................... 4

D. Deterministic Projection of Proposed Suspension ....................................................................................... 5

E. Deterministic Projection of 2.00% Smaller Suspension ............................................................................... 7

F. Projected Total Contribution Base Units and Average Contribution Rates .................................................. 9

G. Actuarial Assumptions ................................................................................................................................ 10

H. Proposed Benefit Suspensions .................................................................................................................. 13

Exhibit 4 AIPT 100
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 1 

Alaska Ironworkers Pension Plan 

A. Summary of Key Information and Results 

The following summary shows the results of the tests required to certify that the proposed suspensions 

meet the requirements set forth by the law. 

1. Key Information 

a. Projected year of insolvency without consideration of proposed suspension Year Ending

June 30, 2032

b. Proposed effective date of suspension of benefits July 1, 2018

c. End of extended period June 30, 2048

d. Projected funded percentage (under IRC §432(j)(2)) at end of extended 

period 

110.7%*

e. Number of Plan active participants (based on July 1, 2016 actuarial 

valuation) 

153

f. Is the proposed suspension in combination with a partition? No

* See Exhibit G of report titled: Additional Information for Proposed Benefit Suspensions as of July 1, 2018. 

2. Limitation on Aggregate Size of Suspension 

a. We certifiy that the proposed suspension is reasonably estimated to enable the Plan to avoid 

insolvency. 

i. The solvency ratio is projected on a deterministic basis to be at least 1.0 for each plan year 

throughout the extended period (see Exhibit D). 

ii. The Plan’s projected funded percentage at the end of the extended period exceeds 100% 

and the Plan’s solvency ratio and available resources are not projected to decrease at any 

time during the last five years of the extended period (see Exhibit D). 

Based on the results summarized in 2a above, the proposed suspension of benefits 

satisfies that it is reasonably estimated to enable the Plan to avoid insolvency. 

b. We certify that the proposed suspension does not materially exceed the level that is necessary to 

avoid insolvency, as required under regulation §1.432(e)(9)-1(d)(5)(iii)(A). 

i. The Plan would fail one or more of the tests listed in 2a if the dollar amount of the proposed 

benefit suspension for each participant and beneficiary were 2% smaller. Exhibit E 

demonstrates that if the suspension is reduced by “two percent of the amount of the 

participant’s or beneficiary’s periodic payment determined without regard to the reduction 

proposed in the application,” it will no longer be sufficient to enable the Plan to satisfy the 

requirement to avoid insolvency under §1.432(e)(9)-1(d)(5)(i)(A). Exhibit E shows a 24.5% 

reduction; this is two percent smaller than a 26.5% reduction. The projection in Exhibit E does 

not satisfy the requirement in §1.432(e)(9)-1(d)(5)(ii)(3) since the Plan’s funded percentage at 

the end of the extended period does not exceed 100%* and during some of the last five years 

of the extended period the Plan’s available resources is projected to decrease. Therefore, as 

specified in §1.432(e)(9)-1(d)(5)(iii)(A) “an alternative, similar but smaller suspension of 

benefits would not be sufficient to enable the Plan to satisfy the requirement to avoid 

insolvency under paragraph (d)(5)(i)(A).” Note that it is not necessary to specifically test a 

Exhibit 4 AIPT 101
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 2 

Alaska Ironworkers Pension Plan 

suspension that is smaller by “five percent of the amount of the reduction in the periodic 

payment” since the regulation allows the use of whichever reduction is greater. 

* It can be demonstrated that the Plan’s funded percentage at June 30, 2048 (the end of the 

extended period) with a 24.5% suspension does not exceed 100% as follows. The Plan’s 

assets at June 30, 2048 with the 24.5% suspension are projected to be $23,920,884 as 

shown in Exhibit E. The Plan’s liabilities at June 30, 2048 with the 26.5% suspension are 

projected to be $30,805,596 as shown in Exhibit G of our report titled “Additional for 

Proposed Benefit Suspension as of July 1, 2018”. Since the ratio of $23,920,884 to 

$30,805,596 is less than 100%, and a 24.5% suspension will provide larger liabilities at June 

30, 2048, the Plan’s funded percentage at June 30, 2048 with a 24.5% suspension will also 

be less than 100%. 

ii. The PBGC did not issue an order partitioning the Plan. 

Because of the the results in 2b, the proposed suspension of benefits satisfies the 

requirement that the proposed suspension does not materially exceed the level that is 

necessary to avoid insolvency. 

The proposed suspension satisfies the limitations on aggregate size of suspension set forth in 

regulation §1.432(e)(9)-1(d)(5).

Exhibit 4 AIPT 102
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 3 

Alaska Ironworkers Pension Plan 

B. Development of Projected June 30, 2018 Market Value of Assets 

The table below shows the actual change in the market value of assets from July 1, 2016 through 

September 30, 2017 and projected market value of assets from October 1, 2017 through June 30, 2018. 

The calculations are based on the following information: 

 The market value of assets as of July 1, 2016 is based on June 30, 2016 financial statements from the 

Plan’s auditor. 

 The market value of assets as of July 1, 2017 is based on preliminary June 30, 2017 financial statements 

from the Plan’s auditor. 

 Employer contributions benefit payments and administrative expenses through September 30, 2017 and 

market value of assets as of as of September 30, 2017 are based on unaudited financial statements 

provided by the Plan administrator. 

 Estimated employer contributions from October 1, 2017 through June 30, 2018 are based on 9/12ths of 

the assumed contribution of $2,687,750 (based on an hours assumption of 165,000 and bargained 

contribution rate of $13.75/hours) for the 2017/2018 plan year. 

 Estimated benefit payments from October 1, 2017 through June 30, 2018 are based on 9/12ths of the 

expected benefit payments produced for the 2017/2018 plan year during the July 1, 2016 actuarial 

valuation. 

 The administrative expenses from October 1, 2017 through June 30, 2018 are based on the $520,000 

administrative expense assumption disclosed in the July 1, 2016 actuarial valuation, increased by a cost 

of living adjustment of 2.5% (to get from the 2016/2017 plan year to the 2017/2018 plan year) and 

multiplied by 9/12ths. 

 Investment returns through September 30, 2017 were forced to make the market value of assets on 

September 30, 2017 match the administrator’s unaudited financial statements. 

 Investment returns from October 1, 2017 through June 30, 2018 are based on an assumed return of 

3.08% during that period. 

From July 1, 2016 

through 

June 30, 2017

From July 1, 2017 

through 

September 30, 2017

Projection from 

October 1, 2017 

through 

June 30, 2018

Total for 2017/2018 

Plan Year

1. Market value of assets (beginning of year) 49,524,313 $ 49,259,700 $ 49,312,981 $ 49,259,700 $ 

2. Employer contributions 2,147,339 544,047 1,701,563 2,245,610 

3. Withdrawal liability payments 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries n/a 1,700,505 5,293,118 6,993,623 

b. Terminated vested participants n/a 66,844 200,531 267,375 

c. Current actives n/a 13,649 40,946 54,595 

d. New entrants 0 0 0 0 

e. Total 7,405,265 1,780,998 5,534,596 7,315,594 

5. Administrative expenses 713,440 174,036 399,750 573,786 

6. Investment returns 5,706,753 1,464,268 2,916,056 1,451,788 

7. $ 49,312,981 49,259,700 $ 46,531,985 $ 46,531,985 $ Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6)

Exhibit 4 AIPT 103
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan C. Deterministic Projection of Current Plan without Proposed Suspension 

The table shows the plan-year-by-plan-year market value of assets projection to insolvency. The plan years ending June 30, 22032 are shown. 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 46,531,985 $ 43,154,717 $ 40,126,157 $ 37,068,824 $ 34,284,504 $ 31,392,42. Employer contributions 1,701,563 2,268,750 2,268,750 2,268,750 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 5,293,118 6,798,737 6,599,683 6,423,824 6,244,920 6,062,897 5,877,7

b. Terminated vested participants 200,531 340,110 424,578 545,991 646,616 705,951 813,7

c. Current actives 40,946 145,706 176,431 222,132 279,353 336,186 414,8

d. New entrants 0 0 0 0 0 1,936 3,8e. Total 5,534,596 7,284,553 7,200,692 7,191,947 7,170,889 7,106,970 7,110,2

5. Administra ive expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,1

6. Investment returns 2,184,860 1,451,788 2,463,365 2,439,847 2,205,428 2,362,401 2,004,0

7. $ 43,154,717 46,531,985 $ 40,126,157 $ 37,068,824 $ 34,284,504 $ 31,392,422 $ 28,280,6

$ 

8. $ 50,439,270 52,066,581 $ 47,326,849 $ 44,260,771 $ 41,455,393 $ 38,499,392 $ 35,390,8

$ 

Solvency ratio (8) / (4e) 9.41 6.92 6.57 6.15 5.78 5.42 4

 

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 m

Plan year beginning July 1 2026 2027 2028 2029 2030 2031

1. Market value of assets (beginning of year) 21,531,622 $ $ 17,953,600 $ 14,299,365 $ 10,480,704 $ 6,510,108 $ 2,373,222

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500

3. Withdrawal liability payments 0 0 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 5,303,693 5,106,457 4,906,407 4,703,665 4,498,425 4,290,939

b. Terminated vested participants 983,742 1,002,911 1,029,651 1,058,975 1,091,727 1,136,611

c. Current actives 551,526 578,857 636,306 669,653 704,498 748,097

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711

e. Total 6,851,825 6,705,072 6,593,405 6,457,842 6,325,170 6,212,358

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115

6. Investment returns 1,120,622 1,326,947 861,586 591,572 16,834 310,531

7. $ 14,299,365 17,953,600 $ 10,480,704 $ 6,510,108 $ 2,373,222 $ Insolvent

8. $ 21,004,437 24,805,425 $ 17,074,109 $ 12,967,950 $ 8,698,392 $ n/a

Solvency ratio (8) / (4e) 3.62 3.13 2.59 2.01 1.38 n/a

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan D. Deterministic Projection of Proposed Suspension 

The table shows the plan-year-by-plan-year market value of assets projection to avoid insolvency. The plan years ending Jun

30, 2048 are shown. 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 46,531,985 $ 44,666,502 $ 43,246,993 $ 41,932,680 $ 41,038,860 $ 40,175,5

2. Employer contributions 1,701,563 2,268,750 2,268,750 2,268,750 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 5,293,118 5,418,653 5,245,341 5,089,580 4,932,164 4,773,111 4,612,4

b. Terminated vested participants 200,531 282,406 350,768 443,038 520,024 568,525 649,9

c. Current actives 40,946 108,073 131,783 167,648 211,580 254,801 315,4d. New entrants 0 0 0 0 0 1,936 3,8

e. Total 5,534,596 5,809,132 5,727,892 5,700,266 5,663,768 5,598,373 5,581,8

5. Administrative expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,1

6. Investment returns 2,221,224 1,451,788 2,599,616 2,691,186 2,725,650 2,745,780 2,665,7

7. $ 44,666,502 46,531,985 $ 43,246,993 $ 41,932,680 $ 41,038,860 $ 40,175,597 $ 39,253,9

$ 

8. $ 50,475,634 52,066,581 $ 48,974,885 $ 47,632,946 $ 46,702,628 $ 45,773,970 $ 44,835,7

$ 

Solvency ratio (8) / (4e) 9.41 8.69 8.55 8.36 8 25 8.18 8

 

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 m

Plan year beginning July 1 2026 2027 2028 2029 2030 2031 2032 

1. Market value of assets (beginning of year) 37,350,215 $ $ 36,424,402 $ 35,627,814 $ 34,856,079 $ 34,124,275 $ 33,429,729 $ 32,759,0

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 4,122,329 3,956,702 3,790,172 3,622,878 3,455,012 3,286,788 3,118,4

b. Terminated vested participants 788,130 803,781 824,040 848,625 876,002 912,184 914,6

c. Current actives 425,387 448,484 494,252 522,876 553,731 590,023 607,3

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711 43,7

e. Total 5,348,710 5,225,814 5,129,505 5,019,928 4,915,265 4,825,706 4,684,2

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115 771,9

6. Investment returns 2,499,011 2,476,041 2,444,612 2,392,450 2,295,609 2,342,966 2,251,7

7. $ 35,627,814 36,424,402 $ 34,856,079 $ 34,124,275 $ 33,429,729 $ 32,759,017 $ 32,167,1

$ 

8. $ 40,853,628 41,773,112 $ 39,985,584 $ 39,144,203 $ 38,344,994 $ 37,584,723 $ 36,851,3

$ 

Solvency ratio (8) / (4e) 7.81 7.82 7.80 7.80 7 80 7.79 7

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan 

Plan year beginning July 1 2035 2036 2037 2038 2039 2040 2041 

1. Market value of assets (beginning of year) 31,213,338 $ $ 30,847,776 $ 30,557,889 $ 30,342,534 $ 30,213,331 $ 30,172,599 $ 30,224,42. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,615,870 2,450,206 2,286,134 2,124,080 1,964,494 1,807,910 1,654,9

b. Terminated vested participants 925,141 924,300 927,804 916,364 903,810 888,254 868,7

c. Current actives 689,757 725,796 758,976 798,111 838,271 878,935 911,8

d. New entrants 68,289 79,524 93,512 107,885 123,068 139,373 159,9

e. Total 4,299,057 4,179,826 4,066,426 3,946,440 3,829,643 3,714,472 3,595,4

5. Administra ive expenses 831,298 852,081 873,383 895,217 917,598 940,537 964,0

6. Investment returns 2,129,519 2,152,293 2,111,954 2,099,954 2,094,337 2,094,008 2,101,4

7. $ 30,557,889 30,847,776 $ 30,342,534 $ 30,213,331 $ 30,172,599 $ 30,224,426 $ 30,378,8

$ 

8. $ 34,737,715 35,146,833 $ 34,408,960 $ 34,159,771 $ 34,002,242 $ 33,938,898 $ 33,974,3

$ 

Solvency ratio (8) / (4e) 8.18 8.31 8.46 8.66 8.88 9.14 9

 

Plan year beginning July 1 2044 2045 2046 2047

1. Market value of assets (beginning of year) 31,067,325 $ $ 31,612,981 $ 32,302,900 $ 33,132,240

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500

3. Withdrawal liability payments 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 1,225,226 1,094,262 970,638 854,874

b. Terminated vested participants 796,696 768,060 739,381 711,455

c. Current actives 956,327 964,504 975,638 988,876d. New entrants 223,634 247,600 275,342 306,295

e. Total 3,201,883 3,074,426 2,960,999 2,861,500

5. Administrative expenses 1,038,177 1,064,132 1,090,735 1,118,004

6. Investment returns 2,215,976 2,173,217 2,268,575 2,330,670

7. $ 32,302,900 31,612,981 $ 33,132,240 $ 34,095,907 $ 

8. $ 35,377,326 34,814,864 $ 36,093,239 $ 36,957,407 $ 

Solvency ratio (8) / (4e) 10.87 11.51 12.19 12.92

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan E. Deterministic Projection of 2.00% Smaller Suspension 

The table shows the plan-year-by-plan-year market value of assets projection to insolvency. The plan years ending June 30, 22048 are shown. 

Plan year beginning July 1 2017* 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) 49,312,981 $ $ 46,531,985 $ 44,553,964 $ 43,014,682 $ 41,570,604 $ 40,536,026 $ 39,521,7

2. Employer contributions 1,701,563 2,268,750 2,268,750 2,268,750 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments -

a. Current retirees and beneficiaries 5,293,118 5,521,342 5,346,105 5,188,849 5,029,833 4,869,070 4,706,6

b. Terminated vested participants 200,531 286,743 356,316 450,780 529,543 578,855 662,2

c. Current actives 40,946 110,878 135,102 171,693 216,609 260,842 322,8

d. New entrants 0 0 0 0 0 1,936 3,8

e. Total 5,534,596 5,918,963 5,837,523 5,811,322 5,775,985 5,710,703 5,695,6

5. Administrative expenses 399,750 546,325 559,983 573,983 588,332 603,041 618,1

6. Investment returns 2,218,517 1,451,788 2,589,474 2,672,477 2,686,921 2,717,239 2,616,5

7. $ 44,553,964 46,531,985 $ 43,014,682 $ 41,570,604 $ 40,536,026 $ 39,521,704 $ 38,436,9

$ 

8. $ 50,472,927 52,066,581 $ 48,852,205 $ 47,381,926 $ 46,312,011 $ 45,232,407 $ 44,132,6

$ 

Solvency ratio (8) / (4e) 9.41 8.53 8.37 8.15 8.02 7.92 7

 

* This column is comprised of the 9 months between October 1, 2017 and June, 30 2018. The value in "Market value of assets (BOY)" is as of September 30, 2017 and all cashflows are for 9 m

Plan year beginning July 1 2026 2027 2028 2029 2030 2031 2032 

1. Market value of assets (beginning of year) 36,172,478 $ $ 35,049,238 $ 34,039,966 $ 33,041,485 $ 32,068,688 $ 31,118,052 $ 30,174,7

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 4,210,220 4,042,240 3,873,217 3,703,286 3,532,638 3,361,494 3,190,1

b. Terminated vested participants 802,795 818,694 839,431 864,366 892,138 928,961 931,4

c. Current actives 434,706 458,097 504,712 533,660 564,771 601,565 619,0

d. New entrants 12,864 16,847 21,041 25,549 30,520 36,711 43,7

e. Total 5,460,585 5,335,878 5,238,401 5,126,861 5,020,067 4,928,731 4,784,2

5. Administrative expenses 665,644 682,285 699,342 716,826 734,746 753,115 771,9

6. Investment returns 2,396,391 2,390,489 2,326,762 2,258,390 2,125,997 2,191,678 2,062,6

7. $ 34,039,966 35,049,238 $ 33,041,485 $ 32,068,688 $ 31,118,052 $ 30,174,703 $ 29,293,6

$ 

8. $ 39,375,844 40,509,823 $ 38,279,886 $ 37,195,549 $ 36,138,119 $ 35,103,434 $ 34,077,9

$ 

Solvency ratio (8) / (4e) 7.42 7.38 7.31 7.26 7.20 7.12 7

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 Alaska Ironworkers Pension Plan 

Plan year beginning July 1 2035 2036 2037 2038 2039 2040 2041 

1. Market value of assets (beginning of year) 27,707,596 $ $ 26,996,024 $ 26,338,558 $ 25,732,598 $ 25,188,222 $ 24,706,267 $ 24,289,22. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,500 2,612,5

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,677,638 2,508,491 2,340,869 2,175,223 2,012,022 1,851,823 1,695,2

b. Terminated vested participants 941,976 941,212 944,724 933,073 920,177 904,244 884,3

c. Current actives 702,239 738,521 771,991 811,570 852,056 892,830 925,7

d. New entrants 68,289 79,524 93,512 107,885 123,068 139,373 159,9

e. Total 4,390,142 4,267,748 4,151,096 4,027,751 3,907,323 3,788,270 3,665,3

5. Administra ive expenses 831,298 852,081 873,383 895,217 917,598 940,537 964,0

6. Investment returns 1,849,862 1,897,368 1,806,019 1,766,092 1,699,251 1,730,465 1,672,8

7. $ 26,338,558 26,996,024 $ 25,732,598 $ 25,188,222 $ 24,706,267 $ 24,289,210 $ 23,945,0

$ 

8. $ 30,606,306 31,386,166 $ 29,883,694 $ 29,215,973 $ 28,613,590 $ 28,077,480 $ 27,610,4

$ 

Solvency ratio (8) / (4e) 7.15 7.17 7.20 7.25 7.32 7.41 7

 

Plan year beginning July 1 2044 2045 2046 2047

1. Market value of assets (beginning of year) 23,539,606 $ $ 23,485,021 $ 23,535,658 $ 23,683,734

2. Employer contributions 2,612,500 2,612,500 2,612,500 2,612,500

3. Withdrawal liability payments 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 1,255,229 1,121,063 994,402 875,781

b. Terminated vested participants 810,880 781,715 752,510 724,087

c. Current actives 969,855 977,845 988,757 1,001,812d. New entrants 223,634 247,600 275,342 306,295

e. Total 3,259,598 3,128,223 3,011,011 2,907,975

5. Administrative expenses 1,038,177 1,064,132 1,090,735 1,118,004

6. Investment returns 1,630,491 1,630,691 1,637,323 1,650,628

7. $ 23,535,658 23,485,021 $ 23,683,734 $ 23,920,884 $ 

8. $ 26,663,881 26,744,619 $ 26,694,745 $ 26,828,859 $ 

Solvency ratio (8) / (4e) 8.20 8.52 8.87 9.23

Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 9 

Alaska Ironworkers Pension Plan 

F. Projected Total Contribution Base Units and Average Contribution Rates 

The table below shows the assumed contribution base units (hours) and contribution rate used for projecting 

the solvency of the proposed benefit suspensions. 

Total estimated hours for the plan year July 2017 through June 2018 are 39,567 + 123,750 = 163,317. There 

are estimated to be 39,567 hours for July 2017 through September 2017 based on employer contributions of 

$544,047 divided by the contribution rate of $13.75 per hour. We are estimating 123,750 hours for October 

2017 – June of 2018 based on 9/12ths of the 165,000 hours assumption for the 2017/2018 plan year. 

Plan Year

Beginning

July 1

Total Contribution

Base Units (Hours)

Contribution Rate

(Hourly)

Plan Year

Beginning

July 1

Total Contribution

Base Units (Hours)

Contribution Rate

(Hourly)

2017 163,317 13.75 2033 190,000 13.75

2018 165,000 13.75 2034 190,000 13.75

2019 165,000 13.75 2035 190,000 13.75

2020 165,000 13.75 2036 190,000 13.75

2021 190,000 13.75 2037 190,000 13.75

2022 190,000 13.75 2038 190,000 13.75

2023 190,000 13.75 2039 190,000 13.75

2024 190,000 13.75 2040 190,000 13.75

2025 190,000 13.75 2041 190,000 13.75

2026 190,000 13.75 2042 190,000 13.75

2027 190,000 13.75 2043 190,000 13.75

2028 190,000 13.75 2044 190,000 13.75

2029 190,000 13.75 2045 190,000 13.75

2030 190,000 13.75 2046 190,000 13.75

2031 190,000 13.75 2047 190,000 13.75

2032 190,000 13.75 2048 190,000 13.75

Exhibit 4 AIPT 109

Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 11 

Alaska Ironworkers Pension Plan 

So, while Alaska is looking at an economic slowdown due to the drop in oil prices the outlook for the 

construction jobs paid in whole or part by federal money hasn’t changed as a result of the Alaska 

economy. The amount of union ironwork does not directly mirror the local economy. 

One major new federal project is the Eielson Air Force Base outside of Fairbanks which will receive two 

squadrons of the new F-35 Lightening II Joint Strike Fighters. Their arrival is scheduled to begin in 2020 

with construction of new facilities to be ongoing. The project includes hangers, fueling, fuel storage, 

runway upgrades etc. The Air Force has also announced that this project will add 2,765 airmen, civilian 

contractors, and families. So there will also be housing, and all the related infrastructure (housing, water, 

sewer, roads, etc.) that go with a major population expansion. The media has reported that the project 

will inject 453 million dollars into the local economy. The work will not be complete for a number of years. 

This new project is a significant factor in the Trustees estimate of hours to be worked in 2021. The board 

believes that the most significant uptick from this massive project will likely fall in 2021 and that the 

projected increase in contributory hours is a reasonable estimate of the impact. 

Projections of what will happen after the Eielson Air Force Base work ends are difficult. At that point, 

many other current construction projects will be completed and many other new construction projects will 

be started. It is not possible to make a precise prediction as to what the total hours will be on a year by 

year basis. Therefore, the Trustees are comparing the 190,000 hour level to the historic 10 year average 

of 227,278 and believe it is reasonable to expect the work being completed will be replaced by enough 

new work to maintain the 190,000 hours level into the future. 

In summary, it is difficult to accurately predict future events such as the number of hours of union ironwork 

in Alaska. However, it is reasonable to assume the up and down pattern of the past is likely to continue, 

that the historically low level of 2016 is not the best indicator of the future, and that the work near 

Fairbanks is likely to increase the total contributory hours to average something in the range of 190,000 

hours starting in 2021 or thereabouts. After that date the Trustees have assumed overall projects will 

maintain that level although it is still somewhat less than the historic 10 year average. 

Participant Data 

The participant data used for the suspension of benefits work is the same data used for the July 1, 2016 

Actuarial Valuation. Additional information was supplied by the administrator to calculate the PBGC 

guarantee benefits. 

Exhibit 4 AIPT 111
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 12 

Alaska Ironworkers Pension Plan 

New Entrant Profile 

New entrants are assumed to have a demographic profile consistent with new hires over the last six plan 

years. Consistent with the current plan population the new entrants are assumed to be 98% male. The 

following table shows the distribution of new entrants by entry age. 

Financial Data 

As summarized in Exhibit B, the September 30, 2016 unaudited financial statements produced by the 

Plan administrator were used. A projection (again summarized in Exhibit B) was completed to produce a 

market value of assets as of June 30, 2018. 

Benefit Payment Projections 

Current participants and beneficiaries were modeled using a closed group model. New entrants were 

modeled using an open group model.

Percent of

New Entrants

Age Range 2016 2015 2014 2013 2012 2011 Totals in Age Bracket

Below 24 6 7 2 2 0 3 20 21%

25‐29 6 11 2 2 2 2 25 27%

30‐34 5 5 0 0 3 2 15 16%

35‐39 1 5 0 1 0 0 7 8%

40‐44 5 3 2 0 2 0 12 13%

45‐49 2 1 0 1 0 0 4 4%

50‐54 2 0 0 1 0 0 3 3%

55‐59 0 0 1 1 3 2 7 7%

60‐64 0 0 0 0 0 1 1 1%

65‐69 0 0 0 0 0 0 0 0%

Total 27 32 7 8 10 10 94

New Entrants for Years ending June 30

Exhibit 4 AIPT 112
Milliman Actuarial Certification 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions as of July 1, 2018 13 

Alaska Ironworkers Pension Plan 

H. Proposed Benefit Suspensions 

The application filed on behalf of the Alaska Ironworkers Pension Plan sets forth the following proposed 

benefit suspension to be effective July 1, 2018. The suspension is expected to continue indefinitely. 

This application proposes that 26.5% of the participant’s or beneficiary’s benefit earned as of July 1, 2016 

be suspended. The proposed suspension does not provide for different treatment of participants and 

beneficiaries other than as a result of the application of the individual limitations of §432(e)(9)(D)(i), (ii) 

and (iii). 

The following summarizes the individual limitations. 

 §432(e)(9)(D)(i) – No suspension will result in reducing a participant’s or beneficiary’s benefit below 

110% of the PBGC guaranteed benefit. 

 §432(e)(9)(D)(ii) –No suspensions can be made for participants and beneficiaries above the age of 80 

as of the end of the month of the effective date of the suspension (July 31, 2018). The suspension is 

reduced by a factor for participants and beneficiaries above the age of 75 but younger than 80 as of 

the end of the month of the effective date of the suspension. The factor is calculated by determining 

how many months the participant or beneficiary has until age 80 (as of the end of the month of the 

effective date of the suspension) and dividing that amount by 60. 

 §432(e)(9)(D)(iii) – No benefits based on disability can be suspended. 

Exhibit 4 AIPT 113