DEPARTMENT OF THE TREASURY
WASHINGTON, D.C, 20220

September 13, 2017

Board of Trustees

New York State Teamsters Conference
Pension and Retirement Fund

c/o Ken Stilwell

P.O. Box 4928

Syracuse, NY 13221

Re: New York State Teamsters Conference Pension and Retirement Fund (Fund) Application
for Reduction of Benefits

Dear Mr. Stilwell:

On August 3, 2017, you were notified that the Secretary of the Treasury (Treasury), in
consultation with the Secretary of Labor (DOL) and the Pension Benefit Guaranty Corporation
(PBGC), had reviewed your application (Application) for a reduction in benefits, which was
submitted on May 15, 2017, and determined that the Application satisfied the requirements of
subparagraphs (C), (D), (E), and (F) of section 432(e)(9) of the Internal Revenue Code (Code),
which were added to the Code by the Multiemployer Pension Reform Act of 2014 (MPRA). The
notification explained that, as required under MPRA, before any benefit reduction could go into
effect, Treasury would administer a vote of eligible participants and beneficiaries to approve or
reject the proposed benefit reduction.

The voting period began on August 16, 2017, and ended on September 6, 2017. Of the 34,636
eligible voters who received a ballot, 9,788 (28.26%) voted to reject the benefit reduction, 4,081
voted to approve the benefit reduction, and 20,767 did not cast a vote. Because a majority of
eligible voters did not vote to reject the benefit reduction, the benefit reduction may go into
effect. Treasury, in consultation with DOL and PBGC, has issued a final authorization to reduce
benefits under the Fund as described in the Application, effective October 1, 2017, subject to the
conditions described below.

Under MPRA, the Fund’s ability to reduce benefits is conditioned on the Fund’s compliance
with subparagraphs (C) and (E) of section 432(e)(9). Under subparagraph (C), after the benefit
reduction goes into effect, the plan sponsor of the Fund must make an annual determination that,
despite all reasonable measures to avoid insolvency, the Fund is projected to become insolvent
unless a benefit reduction continues. The Fund must maintain a written record of these annual
determinations, and this record must include a description of the factors considered to determine
whether all reasonable measures have been taken to avoid insolvency. The written record must
be made available to participants and beneficiaries. If the Fund fails to satisfy the annual plan
sponsor determination requirement for a plan year (including maintaining the written record),



Board of Trustees
New York State Teamsters Conference Pension and Retirement Fund

September 13, 2017

Page 2

then the reduction of benefits will expire as of the first day of the following plan year.!
Subparagraph (E) of section 432(e)(9) establishes rules that apply to any benefit improvements
that are made to the Fund during the period that the benefit reduction remains in effect.

A copy of this letter will be posted on the Treasury Department website. Please contact Treasury
staff if you have any questions or need any additional information.

obert Neis

Office of Tax Policy

Sincerel

126 C.F.R. § 1.432(e)(9)-1(¢)(5).