Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid 

insolvency - Revised

6.0

Does the application include the plan actuary’s certification that, taking into account the 

proposed suspension and, if applicable, a proposed partition, the plan is projected to avoid 

insolvency if the suspension takes effect and, the supporting illustrations, including the following?

 the plan year-by-year projections demonstrating projected solvency during the relevant 

period,

 separately identifying the available resources (and the market value of assets and changes 

in cash flow) during each of those years?

See section 3.02 of Revenue Procedure 2017-43.

Document 6.1 is the Actuarial Certification of Plan Solvency under IRC §432(e)(9)(C)(i) as of the 

Proposed Benefit Suspension Effective Date of July 1, 2021. Document 6.2 contains supporting 

illustrations for this Actuarial Certification. This includes Exhibit II, which is a year-by-year 

solvency projection which demonstrates that the Pension Fund will become insolvent in the plan 

year ending April 30, 2033. Exhibit III demonstrates that the Pension Fund will avoid insolvency 

with the Proposed Benefit Suspensions taking effect July 1, 2021. These Exhibits each separately 

identify the market value of assets, contributions, investment earnings, benefit payments and 

plan expenses. The Actuarial Certification in Document 6.1 and the supporting exhibits in 

Document 6.2 are based upon our interpretation of the requirements under Revenue Procedure 

2017-43, Section 3.02.
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid 

insolvency - Revised

6.1

Document 6.1

Plan Actuary’s Certification that the Plan Is Projected to Avoid Insolvency

This letter and the attached exhibits of Document 6.2 have been prepared by United Actuarial 

Services, Inc. at the request of the Board of Trustees of the Carpenters Pension Trust Fund –

Detroit and Vicinity. United Actuarial Services, Inc. certifies under IRC §432(e)(9)(C)(i) that the 

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

proposed benefit suspension effective July 1, 2021 and assuming such suspension continues 

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

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

Document 2.1. Checklist Item #25 describes the actuarial assumptions and methodology used in 

the reports filed with this application, as required under Revenue Procedure 2017-43, Section 

4.02(3).

This certification is based on the May 1, 2019 actuarial valuation report dated March 9, 2020 (see 

Document 41.1) and the May 1, 2020 actuarial certification dated July 29, 2020 (see Document 

5.1). The Market Value of assets as of June 30, 2020 (the start of the “initial period” as defined

in Revenue Procedure 2017-43, Section 3.02, as required under regulation §1.432(e)(9)-

1(d)(5)(iv)(C)(1)) was furnished by BeneSys, Inc. and certified by Bultynck and Co., PLLC. 

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

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

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

Future actuarial measurements may differ significantly from the current measurements 

presented in this certification due to factorssuch as the following: plan experience differing from 

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

demographic assumptions, or changes in plan provisions. 

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

to revision based on future regulatory or other guidance.

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

None of the comments made herein should be construed as constituting such advice. We are 

not aware of any direct or material indirect financial interest or relationship that could create a 

conflict of interest that would impair the objectivity of our work. 

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

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

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

Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid 

insolvency - Revised

6.3

Document 6.2

Actuarial Solvency Certification Supporting Exhibits

EXHIBIT I Value of Plan Assets at Beginning and End of the “Initial Period”

EXHIBIT II Deterministic Projection of Current Plan without Proposed Suspension

EXHIBIT III Deterministic Projection with Proposed Suspension

EXHIBIT IV Breakdown of Benefit Payouts for Exhibit II

EXHIBIT V Breakdown of Benefit Payouts for Exhibit III
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid 

insolvency - Revised

6.4

Exhibit I – Value of Plan Assets at Beginning and End of the “Initial Period”

The projected change in Market Value of Assets from July 1, 2020 through April 30, 2021 (the 

“initial period” as defined in Revenue Procedure 2017-43, Section 3.02) is shown below. The 

Market Value of assets as of July 1, 2020 was furnished by BeneSys, Inc. and certified by Bultynck 

and Co., PLLC. The actuarial assumptions used are described in Checklist Item #25.

From July 1, 2020

through April 30, 2021

1. Market Value at beginning of period $ 730,707,581

2. Employer contributions 85,387,500

3. Withdrawal liability payments 1,323,196

4. Other income -

5. Benefit payments 132,069,522

6. Administrative expenses 5,075,000

7. Investment earnings/(loss) 38,237,594

8. Projected Market Value at end of period

= (1)+(2)+(3)+(4)-(5)-(6)+(7) $ 718,511,349
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid insolvency - Revised

6.5

Exhibit II – Deterministic Projection of Current Plan without Proposed Suspension

The projected Market Value of Assets and Solvency Ratio for Plan Years ending April 30, 2021 through April 30, 2033 are shown 

below:

Plan Year

Ending

1. Beginning

Assets

2. Employer

Contributions

3. EWL 

Payments

Prior 

Wthdrwls

4. EWL 

Payments

Future 

Wthdrwls

5. Benefit 

Payments

6. 

Expenses

7. 

Investment

Income

8. Ending

Assets

9. Resources

(1)+(2)+(3)+(4)-

(6)+(7)

Solvency

Ratio

(9)/(5)

4/30/2021 $721,637,632 $98,242,244 $1,333,196 $0 $157,972,946 $6,106,627 $61,377,850 $718,511,349 $876,484,295 5.55

4/30/2022 $718,511,349 $103,950,000 $36,159 $963,841 $162,448,079 $4,688,160 $44,682,185 $701,007,295 $863,455,374 5.32

4/30/2023 $701,007,295 $103,950,000 $36,159 $963,841 $166,639,988 $4,288,676 $34,079,051 $669,107,682 $835,747,670 5.02

4/30/2024 $669,107,682 $102,465,000 $36,159 $763,841 $170,890,892 $4,391,604 $37,036,288 $634,126,474 $805,017,366 4.71

4/30/2025 $634,126,474 $102,465,000 $36,159 $613,841 $175,407,017 $4,497,002 $34,850,320 $592,187,775 $767,594,792 4.38

4/30/2026 $592,187,775 $102,465,000 $36,159 $613,841 $179,746,729 $4,604,930 $28,681,611 $539,632,727 $719,379,456 4.00

4/30/2027 $539,632,727 $102,465,000 $36,159 $613,841 $183,853,956 $4,715,448 $25,839,087 $480,017,410 $663,871,366 3.61

4/30/2028 $480,017,410 $102,465,000 $36,159 $613,841 $187,816,469 $4,828,619 $18,498,226 $408,985,548 $596,802,017 3.18

4/30/2029 $408,985,548 $102,465,000 $36,159 $613,841 $191,709,019 $4,944,506 $12,134,246 $327,581,269 $519,290,288 2.71

4/30/2030 $327,581,269 $102,465,000 $36,159 $613,841 $195,195,904 $5,063,174 $9,346,809 $239,784,000 $434,979,904 2.23

4/30/2031 $239,784,000 $102,465,000 $36,159 $613,841 $198,256,947 $5,184,690 $8,248,500 $147,705,863 $345,962,810 1.75

4/30/2032 $147,705,863 $102,465,000 $36,159 $613,841 $200,894,090 $5,309,123 $4,183,036 $48,800,686 $249,694,776 1.24

4/30/2033 $48,800,686 $102,465,000 $36,159 $613,841 $203,022,898 $5,436,542 ($168,412) insolvent $146,310,732 0.72
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid insolvency - Revised

6.6

Exhibit III – Deterministic Projection with Proposed Suspension

The projected Market Value of Assets and Solvency Ratio for Plan Years ending April 30, 2021 through April 30, 2053 are shown 

below:

Plan Year

Ending

1. Beginning

Assets

2. Employer

Contributions

3. EWL 

Payments

Prior 

Wthdrwls

4. EWL 

Payments 

Future 

Wthdrwls

5. Benefit 

Payments

6. 

Expenses

7. 

Investment

Income

8. Ending

Assets

9. Resources

(1)+(2)+(3)+(4)

-(6)+(7)

Solvency

Ratio

(9)/(5)

4/30/2021 $721,637,632 $98,242,244 $1,333,196 $0 $157,972,946 $6,106,627 $61,377,850 $718,511,349 $876,484,295 5.55

4/30/2022 $718,511,349 $103,950,000 $36,159 $963,841 $133,717,059 $4,688,160 $45,615,943 $730,672,073 $864,389,132 6.46

4/30/2023 $730,672,073 $103,950,000 $36,159 $963,841 $130,564,993 $4,288,676 $46,521,816 $747,290,220 $877,855,213 6.72

4/30/2024 $747,290,220 $102,465,000 $36,159 $763,841 $133,219,618 $4,391,604 $47,457,612 $760,401,610 $893,621,228 6.71

4/30/2025 $760,401,610 $102,465,000 $36,159 $613,841 $136,150,959 $4,497,002 $48,206,283 $771,074,932 $907,225,891 6.66

4/30/2026 $771,074,932 $102,465,000 $36,159 $613,841 $139,043,884 $4,604,930 $48,802,522 $779,343,640 $918,387,524 6.61

4/30/2027 $779,343,640 $102,465,000 $36,159 $613,841 $141,877,505 $4,715,448 $49,244,303 $785,109,990 $926,987,495 6.53

4/30/2028 $785,109,990 $102,465,000 $36,159 $613,841 $144,612,729 $4,828,619 $49,526,543 $788,310,185 $932,922,914 6.45

4/30/2029 $788,310,185 $102,465,000 $36,159 $613,841 $147,351,216 $4,944,506 $49,641,789 $788,771,252 $936,122,468 6.35

4/30/2030 $788,771,252 $102,465,000 $36,159 $613,841 $149,892,369 $5,063,174 $49,585,314 $786,516,023 $936,408,392 6.25

4/30/2031 $786,516,023 $102,465,000 $36,159 $613,841 $152,168,711 $5,184,690 $55,815,666 $788,093,288 $940,261,999 6.18

4/30/2032 $788,093,288 $102,465,000 $36,159 $613,841 $154,210,241 $5,309,123 $55,851,996 $787,540,920 $941,751,161 6.11

4/30/2033 $787,540,920 $102,465,000 $36,159 $613,841 $155,935,480 $5,436,542 $55,743,312 $785,027,210 $940,962,690 6.03

4/30/2034 $785,027,210 $102,465,000 $12,056 $637,944 $157,264,909 $5,567,019 $45,973,890 $771,284,172 $928,549,081 5.90

4/30/2035 $771,284,172 $102,465,000 $7,236 $642,764 $158,038,895 $5,700,627 $50,015,604 $760,675,254 $918,714,149 5.81

4/30/2036 $760,675,254 $102,465,000 $7,236 $642,764 $158,434,253 $5,837,442 $49,281,541 $748,800,100 $907,234,353 5.73

4/30/2037 $748,800,100 $102,465,000 $7,236 $642,764 $158,473,879 $5,977,541 $48,473,903 $735,937,583 $894,411,462 5.64

4/30/2038 $735,937,583 $102,465,000 $3,618 $646,382 $158,241,874 $6,121,002 $47,608,671 $722,298,378 $880,540,252 5.56

4/30/2039 $722,298,378 $102,465,000 $0 $650,000 $157,476,679 $6,267,906 $46,708,892 $708,377,685 $865,854,364 5.50

4/30/2040 $708,377,685 $102,465,000 $0 $650,000 $156,552,426 $6,418,336 $45,795,362 $694,317,285 $850,869,711 5.44

4/30/2041 $694,317,285 $102,465,000 $0 $650,000 $155,088,226 $6,572,376 $44,890,503 $680,662,186 $835,750,412 5.39

4/30/2042 $680,662,186 $102,465,000 $0 $650,000 $153,489,329 $6,730,113 $44,017,423 $667,575,167 $821,064,496 5.35
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid insolvency - Revised

6.7

Exhibit III – Deterministic Projection with Proposed Suspension (Cont.)

Plan Year

Ending

1. Beginning

Assets

2. Employer

Contributions

3. EWL 

Payments

Prior 

Wthdrwls

4. EWL 

Payments 

Future 

Wthdrwls

5. Benefit 

Payments 6. Expenses

7. 

Investment

Income

8. Ending

Assets

9. Resources

(1)+(2)+(3)+(4)-

(6)+(7)

Solvency

Ratio

(9)/(5)

4/30/2043 $667,575,167 $102,465,000 $0 $650,000 $151,543,284 $6,891,636 $43,194,276 $655,449,523 $806,992,807 5.33

4/30/2044 $655,449,523 $102,465,000 $0 $650,000 $149,096,235 $7,057,035 $42,452,801 $644,864,054 $793,960,289 5.33

4/30/2045 $644,864,054 $102,465,000 $0 $650,000 $146,609,729 $7,226,404 $41,816,485 $635,959,406 $782,569,135 5.34

4/30/2046 $635,959,406 $102,465,000 $0 $650,000 $143,911,423 $7,399,838 $41,300,636 $629,063,781 $772,975,204 5.37

4/30/2047 $629,063,781 $102,465,000 $0 $650,000 $140,968,745 $7,577,434 $44,566,592 $628,199,194 $769,167,939 5.46

4/30/2048 $628,199,194 $102,465,000 $0 $650,000 $137,723,183 $7,759,292 $44,615,636 $630,447,355 $768,170,538 5.58

4/30/2049 $630,447,355 $102,465,000 $0 $650,000 $134,371,393 $7,945,515 $44,897,210 $636,142,657 $770,514,050 5.73

4/30/2050 $636,142,657 $102,465,000 $0 $650,000 $130,988,789 $8,136,207 $45,433,118 $645,565,779 $776,554,568 5.93

4/30/2051 $645,565,779 $102,465,000 $0 $650,000 $127,451,704 $8,331,476 $46,248,529 $659,146,128 $786,597,832 6.17

4/30/2052 $659,146,128 $102,465,000 $0 $650,000 $123,863,146 $8,531,431 $47,371,216 $677,237,767 $801,100,913 6.47

4/30/2053 $677,237,767 $102,465,000 $0 $650,000 $120,229,688 $8,736,185 $48,826,956 $700,213,850 $820,443,538 6.82
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid insolvency - Revised

6.8

EXHIBIT IV – Breakdown of Benefit Payouts for Exhibit II

Plan Year

Ending Actives

Vested 

Terminations Retired

New 

Entrants

4/30/2021 $6,164,029 $2,675,767 $149,133,150 $0

4/30/2022 $10,830,217 $4,351,799 $147,266,063 $0

4/30/2023 $15,622,441 $6,220,721 $144,796,826 $0

4/30/2024 $20,403,301 $8,320,258 $142,167,330 $3 

4/30/2025 $25,238,937 $10,759,649 $139,407,447 $984 

4/30/2026 $30,080,423 $13,316,898 $136,346,988 $2,420 

4/30/2027 $34,873,289 $15,851,131 $133,124,895 $4,641 

4/30/2028 $39,561,469 $18,515,612 $129,722,076 $17,312 

4/30/2029 $44,122,958 $21,273,924 $126,271,800 $40,337 

4/30/2030 $48,586,394 $24,039,218 $122,499,494 $70,798 

4/30/2031 $52,797,857 $26,700,502 $118,642,431 $116,157 

4/30/2032 $56,879,057 $29,178,327 $114,648,742 $187,964 

4/30/2033 $60,606,226 $31,592,783 $110,508,779 $315,110 
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid insolvency - Revised

6.9

EXHIBIT V – Breakdown of Benefit Payouts for Exhibit III

Plan Year

Ending Actives

Vested 

Terminations Retired

New 

Entrants

4/30/2021 $6,164,029 $2,675,767 $149,133,150 $0

4/30/2022 $8,851,323 $3,374,001 $121,491,735 $0

4/30/2023 $12,254,436 $4,513,592 $113,796,965 $0 

4/30/2024 $16,077,257 $6,010,215 $111,132,143 $3 

4/30/2025 $19,989,645 $7,741,413 $108,418,917 $984 

4/30/2026 $23,951,329 $9,550,956 $105,539,179 $2,420 

4/30/2027 $27,915,908 $11,351,466 $102,605,490 $4,641 

4/30/2028 $31,837,212 $13,240,933 $99,517,272 $17,312 

4/30/2029 $35,688,478 $15,201,138 $96,421,263 $40,337 

4/30/2030 $39,500,786 $17,162,877 $93,157,908 $70,798 

4/30/2031 $43,146,363 $19,054,469 $89,851,722 $116,157 

4/30/2032 $46,717,315 $20,821,785 $86,483,177 $187,964 

4/30/2033 $50,011,326 $22,547,358 $83,061,686 $315,110 

4/30/2034 $53,001,281 $24,271,794 $79,548,963 $442,871 

4/30/2035 $55,677,700 $25,762,616 $75,995,843 $602,736 

4/30/2036 $58,127,052 $27,131,819 $72,399,430 $775,952 

4/30/2037 $60,344,428 $28,381,767 $68,760,754 $986,930 

4/30/2038 $62,295,350 $29,613,505 $65,080,007 $1,253,012 

4/30/2039 $64,016,940 $30,548,489 $61,382,345 $1,528,905 

4/30/2040 $65,597,517 $31,405,463 $57,692,142 $1,857,304 

4/30/2041 $66,819,222 $32,087,830 $53,980,758 $2,200,416 

4/30/2042 $67,858,637 $32,729,951 $50,296,844 $2,603,897 
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38-6242188/001

Checklist Item #6 – 3.02 Plan Actuary’s Certification that the Plan is projected to avoid insolvency - Revised

6.10

EXHIBIT V – Breakdown of Benefit Payouts for Exhibit III (Cont.)

Plan Year

Ending Actives

Vested 

Terminations Retired

New 

Entrants

4/30/2043 $68,670,864 $33,172,898 $46,630,516 $3,069,006 

4/30/2044 $69,180,898 $33,344,298 $43,010,350 $3,560,689 

4/30/2045 $69,552,429 $33,449,530 $39,457,512 $4,150,258 

4/30/2046 $69,790,256 $33,372,745 $35,981,280 $4,767,142 

4/30/2047 $69,750,175 $33,123,482 $32,608,118 $5,486,970 

4/30/2048 $69,447,181 $32,632,261 $29,350,852 $6,292,889 

4/30/2049 $68,910,100 $32,051,331 $26,232,239 $7,177,723 

4/30/2050 $68,107,468 $31,298,485 $23,271,062 $8,311,774 

4/30/2051 $67,044,857 $30,416,256 $20,484,384 $9,506,207 

4/30/2052 $65,739,562 $29,355,624 $17,886,852 $10,881,108 

4/30/2053 $64,204,509 $28,212,050 $15,489,658 $12,323,471