1 

NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS 

On December XX, 2017, the Board of Trustees of the Alaska Ironworkers 

Pension Plan (“Plan”) re-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. 

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

The enclosed benefit estimate describes the proposed reduction of your 

monthly payments.* 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 year 2031. 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. The PBGC-guaranteed benefit level would be a greater reduction than 

what is proposed under this proposed reduction. 

You can find the amount of your benefit that is guaranteed by PBGC on the 

enclosed benefit estimate. 

*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. 

Terms to Know 

Actuary — professional hired to 

analyze the data and calculate the 

value of benefits earned under the 

Plan and determine if the Plan is 

well-funded. 

PBGC — the Pension Benefit 

Guaranty Corporation is an 

independent agency of the federal 

government. The Plan pays 

premiums to the PBGC’s insurance 

program to protect benefits (up to 

the limits set by law) if the Plan 

becomes insolvent. 

Appendix A AIPT 473
2 

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. 

• Disability benefits (as defined under the Plan) cannot be reduced. 

• The benefits of people who are at least 80 years old on July 31, 2018 

and their beneficiaries cannot be reduced. 

• The benefits of people who are at least 75 years on July 31, 2018 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. 

The Board of Trustees used the default method of a level percent decrease as 

described in the law. Everyone’s benefits are reduced by the same amount and 

no one is treated differently, except as required by law. 

4. What are the proposed reductions in benefits? 

The Board of Trustees proposes the following reduction of benefits: 

A 26.5% across-the-board reduction of benefits earned through June 30, 2016 

for active participants, retirees, beneficiaries, and inactive participants with 

a vested benefit. 

The reduction would take effect July 1, 2018. 

That means the amount of your benefit earned through June 30, 2016 would 

be multiplied by 0.265 to calculate your reduction. Amounts earned on or 

after July 1, 2016 will not be reduced. (See the enclosed benefit estimate 

for your actual reduced benefit amount.) 

(Continued on the next page) 

Terms to Know 

Early retirement – if you retire 

between ages 50 and 62, with five 

years of pension credit, your 

benefit is reduced to account for 

the expectation you’ll receive 

benefits over a longer time. 

Normal retirement – the “normal” 

retirement age for this Plan is 62 

for benefits earned on and after 

July 1, 2011 (age 60 for benefits 

earned before that date). 

In deciding how to set up the 

benefit reduction, Trustees 

determined the fairest way to save 

the Plan was an across-the-board 

percentage reduction. 

Examples: 

These examples assume the 

benefit reduction takes effect 

July°1, 2018. 

65-year-old retiree: 

Benefit earned through 

June 30, 2016: 

$1,000 

Reduction on July 1, 2018: 

$1,000 x 0.265 = $265 

Reduced benefit = $1,000 - $265 = 

$735 

40-year-old active participant: 

Benefit earned through 

June 30, 2016: 

$400 

Reduction July 1, 2018: 

$400 x 0.265 = $106 

$400 - $106 = $294 

Benefit earned since July 1, 2016: 

$102 (reduction does not apply) 

Total benefit as of July 1, 2018: 

$294 + $102 = $396 

Appendix A AIPT 474
3 

4. What are the proposed reductions in benefits? 

(cont’d) 

No special groups would be treated differently except those required by law: 

• Participants or beneficiaries with benefits based on disability would 

have no reduction. 

• Participants or beneficiaries who are at least age 80 on July 31, 2018 

would have no reduction. 

• Participants or beneficiaries who are at least age 75 on July 31, 2018 

would have a smaller benefit reduction. Their reduced benefit 

earned through June 30, 2016 would be calculated as follows: 

Examples: 

These examples assume the 

benefit reduction takes effect 

July°1, 2018. 

Retiree who is 78 and 4 months 

on July 31, 2018: 

Benefit earned through 

June 30, 2016: 

$1,000 

Reduction on July 1, 2018 if 

younger than 75: 

$1,000 x 0.265 = $265 

Number of months beginning with 

August 2018 and ending with the 

month the person turns 80: 

20 months 

$265 x (20 ÷ 60) = $88 

Reduced benefit = $1,000 - $88 = 

$912 

80-year-old retiree: 

Benefit earned through 

June 30, 2016: 

$1,000 

No reduction: Benefit on July 1, 

2018 remains $1,000 

Benefit through 

June 30, 2016 — 

Benefit through 

June 30, 2016 times 

0.265 

(reduced benefit received 

if younger than 75) 

X 

Number of months 

beginning with 

August 2018 and 

ending with the 

month the person 

turns 80 

divided by 

60 

(percent that 

represents how 

close the person is 

to age 80) 

The proposed suspension will remain in effect indefinitely. It will end when 

the Plan is no longer projected to run out of money without the reduction in 

place. We expect reduced benefits to be in place for quite a few years. For 

some, that means reduced benefits for the remainder of retirement. For 

others, there’s at least a possibility that their benefit would come back up to 

the unreduced amount at some point in the future. 

This benefit reduction is expected to stabilize the Plan and keep it from 

running out of money. This expectation is based on a number of assumptions; 

if reality differs significantly from these assumptions, the reduction might 

not work as intended. However, we have used realistic assumptions to give 

the Plan the best chance of success. 

The proposed reduction is not designed to get the Plan back to 100% funded. 

The cuts are only big enough, and will only last long enough, to keep the Plan 

from running out of money. 

Appendix A AIPT 475
4 

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 

make a decision in time to implement the proposed reductions by July 1, 2018. 

You can get information from the Treasury Department

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 can 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 

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. 

Appendix A AIPT 476
5 

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 must allow the 

reduction of benefits to take effect. This means that not voting counts the 

same as a vote to approve the reduction. 

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 the accountant’s report 

and 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 plansponsor 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 

for appeal. The SPD also describes your right to have an arbitrator review the 

Plan’s final decision on your claim. 

If you believe the information used to calculate your estimate (shown on the 

enclosed benefit estimate) is wrong, please contact the Plan Administration 

office: 

By phone: (907) 561-5119 or (800) 325-6532 

By email: retirement@wpas-inc.com 

By mail: PO Box 93870 

 Anchorage, AK 99509-3870 

The Retirement Plan Booklet 

(Summary Plan Description) is 

available at 

www.akironworkerstrust.com in 

the Plan Information section. 

Appendix A AIPT 477
If PBGC goes 

insolvent, your 

benefit could be 

much less

Any benefits earned after July 1, 2016 would not be reduced under this proposal.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

• Benefit earned through June 30, 2016: If you start receiving your benefit at normal retirement age in the form 

of a single life annuity, the portion of your monthly benefit earned through June 30, 2016 without the proposed 

reduction would be $503.40.

• Proposed benefit: Under the proposed reduction, your monthly benefit earned through June 30, 2016 in the same 

form would be reduced to $370.00.

Note: These numbers are just estimates. Final calculations will be made when the reduction is approved. In addition, 

the actual amount you receive will depend on other factors, like how long you work, when you begin receiving 

payments, and which payment form you choose. For more information, see the Alaska Ironworkers Retirement Plan 

Booklet (Summary Plan Description) available at www.akironworkerstrust.com.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Benefit earned 

through June 30, 2016

$503.40

Proposed benefit

$370.00

PBGC guaranteed 

benefit

$232.38

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #1

Example #1, active participant under age 75

Appendix A AIPT 478
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 6.50 years of credited service under the Plan as of July 1, 2016.

• Your date of birth is 10/27/1979.

• The portion of your benefit that is based on disability is $0.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated: 

Benefit earned through June 30, 2016:

$503.40

Reduction:

$503.40 x 26.5% = $133.40

Reduced benefit = $503.40 – $133.40 = $370.00

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $232.38. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 479
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $1,510.72. Under the proposed reduction, your monthly benefit would be reduced to 

$1,110.38.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$1,510.72

Proposed benefit

$1,110.38

PBGC guaranteed 

benefit

$250.25

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #2

Example #2, retired participant under age 75

Appendix A AIPT 480
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 7.00 years of credited service under the Plan.

• Your date of birth is 03/12/1947.

• The portion of your benefit that is based on disability is $0.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated: 

Benefit earned through June 30, 2016:

$1,510.72

Reduction:

$1,510.72 x 26.5% = $400.34

Reduced benefit = $1,510.72 – $400.34 = $1,110.38

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $250.25. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 481
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $742.83. Under the proposed reduction, your monthly benefit would be reduced to 

$545.98.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$742.83

Proposed benefit

$545.98

PBGC guaranteed 

benefit

$321.75

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #3

Example #3, beneficiary under age 75

Appendix A AIPT 482
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 9.00 years of credited service under the Plan.

• Your date of birth is 07/20/1951.

• The portion of your benefit that is based on disability is $0.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated: 

Benefit earned through June 30, 2016:

$742.83

Reduction:

$742.83 x 26.5% = $196.85

Reduced benefit = $742.83 – $196.85 = $545.98

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $321.75. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 483
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $588.76. Under the proposed reduction, your monthly benefit would be reduced to 

$484.75.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$588.76

Proposed benefit

$484.75

PBGC guaranteed 

benefit

$125.13

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #4

Example #4, retired participant between ages 75 and 80

Appendix A AIPT 484
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 3.50 years of credited service under the Plan.

• Your date of birth is 11/04/1941.

• The portion of your benefit that is based on disability is $0.

Because you will be 76 on July 31, 2018, your benefit reduction will be smaller than the 26.5% reduction that younger 

participants will have:

Current benefit —

Current benefit

times 

26.5%

(reduced benefit received if you 

are younger than 75)

x

Number of months beginning 

with August 2018 and ending 

with the month you turn 80 

divided by

60

(percent that represents how 

close you are to age 80)

= Reduced 

benefit

$588.76 —

$588.76

times

26.5%

=

$156.02

x

40 months

divided by

60

=

0.66667

= $484.75

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $125.13. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 485
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $778.84. Under the proposed reduction, your monthly benefit would be reduced to 

$641.25.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$778.84

Proposed benefit

$641.25

PBGC guaranteed 

benefit

$455.81

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #5

Example #5, beneficiary between ages 75 and 80

Appendix A AIPT 486
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 12.75 years of credited service under the Plan.

• Your date of birth is 11/15/1941.

• The portion of your benefit that is based on disability is $0.

Because you will be 76 on July 31, 2018, your benefit reduction will be smaller than the 26.5% reduction that younger 

participants will have:

Current benefit —

Current benefit

times 

26.5%

(reduced benefit received if you 

are younger than 75)

x

Number of months beginning 

with August 2018 and ending 

with the month you turn 80 

divided by

60

(percent that represents how 

close you are to age 80)

= Reduced 

benefit

$778.84 —

$778.84

times

26.5%

=

$206.39

x

40 months

divided by

60

=

0.66667

= $641.25

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $455.81. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 487
If PBGC goes 

insolvent, your 

benefit could be 

much less

PBGC GUARANTEES YOUR BENEFITS UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031).

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $71.50.

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

Nothing is happening to your benefit right now.

Because you will be over age 80 at the time of the proposed reduction, your monthly benefit 

would not change.

Current benefit

$181.26

Proposed benefit

$181.26

PBGC guaranteed 

benefit

$71.50

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #6

Example #6, retired participant over age 80

Appendix A AIPT 488
If PBGC goes 

insolvent, your 

benefit could be 

much less

PBGC GUARANTEES YOUR BENEFITS UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031).

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $17.88.

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

Nothing is happening to your benefit right now.

Because you will be over age 80 at the time of the proposed reduction, your monthly benefit 

would not change.

Current benefit

$59.93

Proposed benefit

$59.93

PBGC guaranteed 

benefit

$17.88

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #7

Example #7, beneficiary over age 80

Appendix A AIPT 489
If PBGC goes 

insolvent, your 

benefit could be 

much less

PBGC GUARANTEES YOUR BENEFITS UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031).

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $625.63.

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

Nothing is happening to your benefit right now.

Because you are receiving disability benefits, your monthly benefit would not change under the 

proposed reduction.

Current benefit

$1,884.24

Proposed benefit

$1,884.24

PBGC guaranteed 

benefit

$625.63

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #8

Example #8, disabled participant

Appendix A AIPT 490
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $713.34. Under the proposed reduction, your monthly benefit would be reduced to 

$710.87.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$713.34

Proposed benefit

$710.87

PBGC guaranteed 

benefit

$580.47

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #9

Example #9, participant impacted by the 110% of PBGC guarantee limitation 

between ages 75 and 80

Appendix A AIPT 491
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 16.50 years of credited service under the Plan.

• Your date of birth is 09/23/1938.

• The portion of your benefit that is based on disability is $0.

Because you will be 79 on July 31, 2018, your benefit reduction will be smaller than the 26.5% reduction that younger 

participants will have:

Current benefit —

Current benefit

times 

10.4%*

(reduced benefit received if you 

are younger than 75)

x

Number of months beginning 

with August 2018 and ending 

with the month you turn 80 

divided by

60

(percent that represents how 

close you are to age 80)

= Reduced 

benefit

$713.34 —

$713.34

times

10.4%*

=

$74.19

x

2 months

divided by

60

=

0.03333

= $710.87

*Your suspension factor is less than normal because your reduced benefit would have been less than 110% of the PBGC 

guaranteed benefit.

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $580.47. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 492
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $439.26. Under the proposed reduction, your monthly benefit would be reduced to 

$416.07.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$439.26

Proposed benefit

$416.07

PBGC guaranteed 

benefit

$359.70

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #10

Example #10, beneficiary impacted by the 110% of PBGC guarantee limitation 

between ages 75 and 80

Appendix A AIPT 493
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 11.00 years of credited service under the Plan.

• Your date of birth is 03/24/1941.

• The portion of your benefit that is based on disability is $0.

Because you will be 77 on July 31, 2018, your benefit reduction will be smaller than the 26.5% reduction that younger 

participants will have:

Current benefit —

Current benefit

times 

9.9%*

(reduced benefit received if you 

are younger than 75)

x

Number of months beginning 

with August 2018 and ending 

with the month you turn 80 

divided by

60

(percent that represents how 

close you are to age 80)

= Reduced 

benefit

$439.26 —

$439.26

times

9.9%*

=

$43.49

x

32 months

divided by

60

=

0.53333

= $416.07

*Your suspension factor is less than normal because your reduced benefit would have been less than 110% of the PBGC 

guaranteed benefit.

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $359.70. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 494
If PBGC goes 

insolvent, your 

benefit could be 

much less

PBGC GUARANTEES YOUR BENEFITS UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031).

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $10.88.

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

Nothing is happening to your benefit right now.

Your monthly benefit would not change under the proposed reduction because it is already less than 110% of the benefit 

guaranteed by the PBGC.

Benefit earned 

through June 30, 2016

$11.75

Proposed benefit

$11.75

PBGC guaranteed 

benefit

$10.88

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #11

Example #11, participant with a benefit less than 110% of the PBGC guarantee

Appendix A AIPT 495
If PBGC goes 

insolvent, your 

benefit could be 

much less

Your current monthly benefit is $508.15. Under the proposed reduction, your monthly benefit would be reduced to 

$393.31.

This is an estimate. Final calculations will be made when the reduction is approved.

Before your benefit changes, you will receive a statement showing your new benefit amount as well as your authorized 

deductions (such as health plan premiums and income taxes) to give you an opportunity to make any changes before 

the reduction takes effect.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Current benefit

$508.15

Proposed benefit

$393.31

PBGC guaranteed 

benefit

$357.50

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #12

Example #12, retired participant impacted by the 110% of PBGC guarantee 

limitation less than age 75

Appendix A AIPT 496
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 10.00 years of credited service under the Plan.

• Your date of birth is 03/19/1954.

• The portion of your benefit that is based on disability is $0.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated: 

Benefit earned through June 30, 2016:

$508.15

Reduction:

$508.15 x 22.6%* = $114.84

Reduced benefit = $508.15 – $114.84 = $393.31

*Your suspension factor is less than normal because your reduced benefit would have been less than 110% of the PBGC 

guaranteed benefit.

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $357.50. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 497
If PBGC goes 

insolvent, your 

benefit could be 

much less

Any benefits earned after July 1, 2016 would not be reduced under this proposal.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

• Benefit earned through June 30, 2016: If you start receiving your benefit at normal retirement age in the form 

of a single life annuity, the portion of your monthly benefit earned through June 30, 2016 without the proposed 

reduction would be $1,907.29.

• Proposed benefit: Under the proposed reduction, your monthly benefit earned through June 30, 2016 in the same 

form would be reduced to $1,401.86.

Note: These numbers are just estimates. Final calculations will be made when the reduction is approved. In addition, 

the actual amount you receive will depend on other factors, like how long you work, when you begin receiving 

payments, and which payment form you choose. For more information, see the Alaska Ironworkers Retirement Plan 

Booklet (Summary Plan Description) available at www.akironworkerstrust.com.

The proposed suspension will remain in effect indefinitely.

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

This personal estimate shows how your benefit would change IF the proposed reduction is 

approved. It is different from the estimate you received last spring and has been updated to reflect 

the smaller 26.5% reduction and later effective date. 

Nothing is happening to your benefit right now.

If approved, the reduction would take effect July 1, 2018.

Benefit earned 

through June 30, 2016

$1,907.29

Proposed benefit

$1,401.86

PBGC guaranteed 

benefit

$446.88

TURN OVER

ESTIMATE OF PROPOSED BENEFIT FOR EXAMPLE #13

Example #13, participant over normal retirement age, not retired, benefit 

reduction effective at retirement

Appendix A AIPT 498
HOW YOUR PROPOSED BENEFIT REDUCTION ESTIMATE IS CALCULATED

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on July 1, 2018. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit might be different. Final calculations will 

be made once the reduction is approved.

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

• You have 12.50 years of credited service under the Plan as of July 1, 2016.

• Your date of birth is 06/20/1954.

• The portion of your benefit that is based on disability is $0.

The proposed reduction would affect the benefit you earned through June 30, 2016. Benefits earned after that date are 

not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated: 

Benefit earned through June 30, 2016:

$1,907.29

Reduction:

$1,907.29 x 26.5% = $505.43

Reduced benefit = $1,907.29 – $505.43 = $1,401.86

PBGC GUARANTEES YOUR BENEFIT UP TO A LIMIT

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2031). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $446.88. 

However, there is concern about the health of the PBGC. If the PBGC itself becomes insolvent, your benefit could be 

significantly less.

Appendix A AIPT 499
1 

Alaska Ironworkers Pension Plan Voter’s Guide 

Vote by [deadline] 

Cast your vote on the proposed benefit reduction by [deadline]: 

Phone: Call X-XXX-XXXX to vote by phone. 

 [any instructions we can provide?] 

OR 

Online: Go to www.XXXXXXX.com to vote online. 

 [any instructions we can provide?] 

The proposed benefit reduction will go into effect July 1, 2018, unless a majority of participants reject it. Not 

voting has the same effect as voting yes. 

The vote is being run by a company selected by the Treasury Department to ensure the integrity of the voting 

process. 

Your Choice 

Voting YES means Voting NO means 

• On July 1, 2018 monthly benefits for most 

participants will be lowered by the same level 

percent of 26.5% to prevent the plan from 

running out of money. 

• Disabled members and those who are age 80 or 

older on July 31, 2018 will NOT have their 

monthly benefits lowered at all. 

• All members who are between 75 and 80 on 

July 31, 2018 will have their benefits lowered by 

something less than 26.5%. 

• NO benefits earned on or after July 1, 2016 will 

be lowered for any member. 

• Review pages x-x for statements for and 

against. 

• There will be no reduction on July 1, 2018 

but, the plan will be on the path to 

running out of money in about 14 years 

(projected to be 2031). 

• When the plan runs out of money, 

benefits will be paid by the PBGC and will 

be much lower than benefits will be if the 

members vote “yes” on the proposed 

reduction. 

• When the plan runs out of money, 

benefits will drop for everyone, no 

exceptions. 

• Review pages x-x for statements for and 

against. 

See the enclosed personalized benefit estimate for 

how your benefit would change under the proposed reduction 

or, if the plan ran out of money and benefits were paid by the PBGC.

[Proposed Ballot and Voting Procedures]

Appendix A AIPT 500
2 

This voter’s guide provides information to help you make an informed decision on the proposed benefit reduction 

for the Alaska Ironworkers Pension Plan:

• About the Proposed Reduction 

• Statement For the Reduction 

• Statement Against the Reduction 

• What’s Next 

Please read this guide and see the enclosed benefit estimate before you make your decision.

About the Proposed Reduction 

Unless rejected, effective July 1, 2018, there will be a 26.5% across-the-board reduction of benefits earned through 

June 30, 2016 for active participants, retirees, beneficiaries, and inactive participants with a vested benefit. 

That means the amount of your benefit earned through June 30, 2016 will be multiplied by 0.265 to calculate your 

reduction. Amounts earned on or after July 1, 2016 will NOT be reduced. (See the enclosed benefit estimate for your 

actual reduced benefit amount.) 

No special groups will be treated differently except those required by law: 

• Participants or beneficiaries with benefits based on disability will have no reduction. 

• Participants or beneficiaries who are at least age 80 on July 31, 2018 will have no reduction. 

• Participants or beneficiaries who are at least age 75 on July 31, 2018 will have a smaller benefit reduction. 

Their reduced benefit earned through June 30, 2016 would be calculated as follows: 

Benefit through 

June 30, 2016 — 

Benefit through June 30, 

2016 times 

0.265 

(reduced benefit received 

if younger than 75) 

X 

Number of months 

beginning with 

August 2018 and 

ending with the 

month the person 

turns 80 

divided by 

60 

(percent that 

represents how 

close the person is 

to age 80) 

There is no set date when the benefit reductions will end; they will remain in effect indefinitely. However, the 

benefit reductions will be in effect only until the Plan is no longer projected to run out of money without the 

reductions in place. We expect reduced benefits to be in place for a long time. For some, that means reduced 

benefits for the rest of their retirement. For others, there’s at least a possibility that their benefit would come back 

up to the unreduced amount at some point in the future. 

This proposed benefit reduction has been approved by the Secretary of Treasury, in consultation with the Pension 

Benefit Guaranty Corporation (PBGC) and the Secretary of Labor. 

See the enclosed benefit estimate for information about your benefit and how much 

it would be if reduced. 

Appendix A AIPT 501
3 

What if we do nothing? 

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

the year 2031. This estimate is based on how much money the actuary expects the Plan to receive and to pay out each 

year. This projection, which is based on several assumptions, will change every year based on actual investment 

returns, plan contributions, and other experience. So the actual date could be sooner or later than 2031. 

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 the PBGC 

on the enclosed benefit estimate. 

If the PBGC runs out of money, benefits will likely be quite a bit lower than the PBGC-guaranteed amount shown. 

Effects of the proposed benefit reduction 

This reduction would take effect on July 1, 2018 and would apply to benefits earned through June 30, 2016: 

• For most retirees and beneficiaries receiving benefits, your monthly check would be lowered by 26.5% 

beginning July 1, 2018. If you’re between 75 and 80 on July 31, 2018, your reduction will be smaller. If you’re 

80 or older on July 31, 2018, or receiving disability benefits, your monthly check will not change. 

• For those not active in the plan, but not yet receiving benefits, your vested benefit would be lowered by 

26.5%. When you retire, your benefit would be based on that amount. 

• For active participants, on July 1, 2018 the benefit you earned through June 30, 2016 would be lowered by 

26.5%. You’ll continue to accrue new benefits though ― and this benefit reduction will not apply to benefits 

earned on or after July 1, 2016. 

See the enclosed benefit estimate for information about your benefit and how much it would be if reduced. 

The Plan’s actuary certified that, with the reduction of benefits that the Board of Trustees has proposed, the plan 

should not run out of money. This expectation is based on a number of assumptions; if reality differs significantly 

from these assumptions, the reduction might not work as intended. However, we have used realistic assumptions to 

give the Plan the best chance of success. 

Statement in Favor of the Reduction 

We, the Trustees of the Alaska Ironworkers Pension Plan, believe the plan can be saved with this reduction. If we 

thought it was hopeless, we wouldn’t be going through all this. Our goal is to keep paying as much as we can in 

benefits for many years to come. 

Our options were to try to save the plan or let it run out of money. As we looked at both options, it became clear that 

we need to try to save the plan. The chart below shows why we want to save the plan and not let it run out of money. 

Try to save the plan Let it run out of money

Reducing everyone’s benefit by the same percentage 

spreads the burden fairly. 

If we let the plan run out of money, those receiving benefits 

now would get their full amount ― but only for a little while. 

Everyone else would get lower benefits, or maybe nothing. 

That hurts the actives the most, and they are already earning 

far lower benefits — and paying much higher contributions — 

than members did in the past. 

The most prudent course of action is to do 

everything we can to keep the plan from running out 

of money and keep paying benefits from this plan — 

even if that means paying them at a lower level. 

There’s concern about the health of the Pension Benefit 

Guaranty Corporation (PBGC) ― the government agency that 

insures pension plans. The PBGC itself may very well run out 

of money. 

In that case, it’s likely that only a fraction of the PBGC’s 

“guaranteed” benefits would be paid to plans that run out of 

money. 

Appendix A AIPT 502
4 

Statement in Favor of the Reduction cont’d 

Try to save the plan Let it run out of money

If we keep the plan going, we have a better chance 

of maintaining a strong contribution base ― 

increasing our odds of being able to pay benefits for 

the long haul ― and active participants have a better 

chance of earning meaningful benefits in the future. 

If the plan runs out of money and goes to the PBGC, active 

participants may continue to earn benefits, but they wouldn’t 

mean much ― the most they could hope to receive would be 

the PBGC guaranteed level of benefits. 

We still have assets at this time. If we lower benefits 

now, we don’t run out of investments to earn money. 

The investment earnings pay for more benefits, and 

give us a fighting chance to restore the fund. 

Right now we have almost $50 million of investments. Those 

investments have a good chance of earning $2 million to $3 

million per year. If we do nothing, the amount of money we 

have to invest will go down, we will get fewer dollars of 

investment earnings, and ultimately, the plan will run out of 

money. When the plan runs out of money, we will get no 

investment earnings, and we will have no chance of being 

helped by any strong investment markets. 

Under this proposal, the reduction applies to 

benefits earned through June 30, 2016, but any 

benefits earned after that won’t be affected by this 

benefit reduction. 

The current level of benefits being earned is already 

very low (and the contributions are very high) 

compared to the benefits and contributions of the 

past. The benefits being earned by current actives 

are already reduced. We owe it to them to do 

everything we can to make sure some of the money 

they are paying into the fund is left to pay their 

benefits in the future. 

If the plan runs out of money, perhaps the hardest hit group 

would be current active participants, who have already made 

significant sacrifices. 

If you look at two members ― who both work for 30 years ― a 

member who started in 1980 and retired in 2010 will have a 

benefit over 21⁄2 times as large as a member hired in 2000 and 

retiring in 2030 can expect to earn. This is true even with the 

higher contribution rates during the second member’s working 

years. 

Benefits under the proposed reduction are higher 

than what you would receive from the PBGC. See the 

enclosed benefit estimate for a comparison. 

PBGC benefits would be lower than benefits under this 

proposed reduction. And if the PBGC runs out of money, it’s 

likely benefits would be even smaller. 

The proposed reduction would likely be in place for a 

number of years but would be lifted once the plan is 

no longer projected to run out of money. 

If the plan goes to the PBGC, not only would benefits be lower 

than under the proposed reduction, but the decrease would 

be permanent. 

Under the proposed reduction, the people who are 

least able to bounce back, including disabled 

members and retirees over 80, are protected (by 

law).

If the plan runs out of money, benefits are cut across the 

board. No population is protected from reductions. 

Appendix A AIPT 503
5 

Statement Against the Reduction 

[to be completed] 

Appendix A AIPT 504
6 

What’s Next 

[Deadline]: Last day to vote 

[7 days after deadline]: Results of the vote announced 

The Trustees will mail an update with the results of the vote 

following the announcement 

July 1, 2018: Reduction takes effect, unless rejected

Appendix A AIPT 505