CK550

Schedule MB (Form 5500) 2017 Page 4 

C Amortization charges as of valuation date: Outstanding balance 

(1) All bases except funding waivers and certain bases for which the 

amortiza 9c(1) 1 87,437,375 40,216,249 tion period has been extended ............................................ 

(2) Funding waivers ............................................................................... 9c(2) 0 0 

(3) Certain bases for which the amortization period has been 

9c(3) extended .......................................................................................... 0 0 

d Interest as applicable on lines 9a, 9b, and 9c ................................................................................................ j 9d 6,210 , 7 33 

e Total charges. Add lines 9a through 9d ......................................................................................................... j So 9 4,935 , 483 

Credits to funding standard account: 

f 

g 

h 

i 

Prior year credit balance. if any .... ................................................................................................................ 1 Sf 

Employer contributions. Total from column (b) of line 3 ................................................................................. 1 9g 

Outstanding balance 

Amortization credits as of valuation date ................................................ 9h 26,818,362 

Interest as applicable to end of plan year on lines 9f, 9g. and 9h .................................................................. 1 91 

Full funding limitation (FFL) and credits: 

(1) ERISA FFL (accrued liability FFL) .......................................................... 1 9J(1) I 2 2 4 , 3 9 1 , 6 7 2 f-----+------------, 

0 

10,375,993 

3,591,089 

584 ,273 

(2) "RPA •94" override (90% current liability FFL) ........................................ 1 91(2) I 3 4 9 , 3 7 6 , 719 '----...L..- -----,----t------------- (3) FFL credit............................................................................................................................................. 9J(3) O 

f-----+--------- ---- k (1) Waived funding deficiency.................................................................................................................... 9k(1) O t---+-------- - - --- ( 2) Other credits ........ .......... .... . .. .. .. . . .. . .. . ... . . . . .. . . .. . . . . . . .. . .. . . . .. . ... . .. ... . . .. ... . . . . . .. ... .. . . . .......... ....... ... ..... .. ........ ... 9k(2) o f-----+----- ----- --- To ta I credits. Add lines 9fthrough 91, 9j(3), 9k(1). and 9k(2)......................................................................... 91 1 4 ,551,355 f-----+------------ - m Credit balance: If line 91 ls greater than line 9e, enter the difference............................................................. 9m 

~- --1------------- - n Funding deficiency: If line 9e is greater than line 91, enter the difference ......................... ........................... . 9n 80,384 , 128 

~----------------

9o Current year's accumulated reconciliation account: 

(1) Due to waived funding deficiency accumulated prior to the 2016 plan year ....................................... 90(1) 0 

(2) Due to amortization bases extended and amortized using the interest rate under section 6621(b) of the Code: 

(a) Reconciliation outstanding balance as of valuation date ............................................................. 9o(2l{a) 0 

(b) Reconciliation amount (line 9c(3) balance minus line 9o(2)(a)) ................................................... 9o(2l{b) 0 

(3) Total as of valuation date .............................. .................................................................................... 9o(3) 0 

10 Contribution necessary to avoid an accumulated funding deficiency. (See instructions.) ........................... 10 80,384 , 1 28 

11 Has a change been made In the actuarial assumptions for the current plan year? If "Yes," see instructions ................. . eg Yes D No 
CK551

* Segal Consulting 

November 29, 20 I 7 

Internal Revenue Service 

Employee Plans Compliance Unit 

Group 7602 (TEGE:EP:EPCU) 

230 S. Dearborn Street 

Room 1700 - 17th Floor 

Chicago, IL 60604 

To Whom It May Concern: 

As required by £RISA Section 305 and the Internal Revenue Code (!RC) Section 432, we have completed the actuarial status 

certification as of September I, 20 l 7for the following plan: 

Name of Plan: Local 807 Labor-Management Pension Fund 

Plan number: EIN 51-6099111 I PN002 

Plan sponsor: Board of Trustees, Local 807 Labor-Management Pension Fund 

Address: 32-43 49th Street, Long Island City, New York 11103 

Phone number: 718. 726.252 5 

As of September 1, 2017, the Plan is in critical and declining status. 

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its 

rehabilitation plan, based on information receivedji·om the sponsor and based on the annual standards of the rehabilitation 

plan. 

If you have any questions on the attached certification, you may contact me at the following: 

Segal Consulting 

333 West 34th Street, 3rd Floor 

New York, NY I 000 I 

Phone number: 212.251.5000 

;;~u.d 

Nicholas J Laccetti, MAAA, FCA 

Senior Vice President and Actuary 

Enrolled Actuary No. 17-02263 

SchMBActrlCertification.pdf 

Page 1 of 1 
CK552

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51-6099111 / PN 002 

November 29, 2017 

Illustration Supporting Actuarial Certification of Status (Schedule MB, line 4b) 

ACTUARIAL STATUS CERTIFICATION AS OF SEPTEMBER 1, 2017 UNDER IRC SECTION 432 

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. ("Segal") has prepared an actuarial status certification under 

Internal Revenue Code Section 432 for the Local 807 Labor-Management Pension Fund as of September 1, 2017 in accordance with 

generally accepted actuarial principles and practices. It has been prepared at the request of the Board of Trustees to assist in administering 

the Fund and meeting filing and compliance requirements under federal law. This certification may not otherwise be copied or reproduced 

in any form without the consent of the Board of Trustees and may only be provided to other parties in its entirety. 

The measurements shown in this actuarial certification may not be applicable for other purposes. Fuhlfe actuarial measurements may 

differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing 

from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or 

decreases expected as part of the nah1ral operation of the methodology used for these measurements; differences in stah1tory interpretation 

and changes in plan provisions or applicable law. 

This certification is based on the September I, 2016 actuarial valuation, dated August 1 7, 2017. This certification reflects the changes in 

the law made by the Multiemployer Pension Reform Act of 20 14 (MPRA). Additional assumptions required for the projections (including 

those under MPRA), and sources of financial information used are summarized in Exhibit VI. 

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretations on which 

this certification is based reflect Segal's understanding as an actuarial firm. 

This certification was based on the assumption that the Plan was qualified as a multiemployer plan for the year. 

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

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certification is complete and 

accurate. As required by IRC Section 432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan 

sponsor. In addition, as allowed by IRC Section 432(b)(3)(B), in my opinion, the contributions used for Insolvency Projections are 

reasonable. ln my opinion, the projections are based on reasonable actuarial estimates, assumptions and methods that (other than projected 

industry activity) offer my best estimate of anticipated experience under the Plan. 

* Segal Consulting 

&~wtt 

Nicholas J. Laccetti, MAAA, FCA 

Senior Vice President and Actuary 

Emolled Ach1ary No. 17-02263 

SchMBActrllllustration.pdf 

Page 1 of 11 
CK553

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

Certificate Contents 

EXHIBIT I 

EXHIBIT II 

EXHIBIT III 

EXHIBIT IV 

EXHIBIT V 

EXHIBIT Vl 

--X- Segal Consulting 

E IN 5 I -6099 I 11 / PN 002 

Status Detennination as of September I, 2017 

Summary of Actuarial Valuation Projections 

Funding Standard Account Proj ection 

Funding Standard Account - Projected Bases Assumed Established After 

September 1, 2016 

Solvency Projection 

Actuarial Assumptions and Methodology 

SchMBActrllllustration.pdf 

Page 2 of 11 

2 
CK554

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51 -60991 1 l / PN 002 

EXHIBIT I 

Status Determination as of September 1, 2017 

Status Condition 

Critical Status: 

I. lnitial critical status tests: 

Cl . A funding deficiency is projected in four years? ................................................................................................................ . 

Component 

Result 

Yes 

C2. (a) A funding defi ciency is projected in five years,......................... ....................... ............... ............... ........ ............................... Yes 

(b) AND the present value of vested benefits for non-actives is more than present value of vested benefits for actives,............. Yes 

(c) AND the normal cost plus interest on unfunded actuarial accrued liability (unit credit basis) is greater than contributio ns for 

current year? ............................................................................... ..................................................................... ....................... . 

C3. (a) A fu nding defi ciency is projected in fi ve years, ..................................... , ... ............................................................................ . 

(b) AN D the funded percentage is less than 65%? ......................................................................................... .............................. . 

C4. (a) The funded percentage is less than 65%, ............ .................................................................................................. ............... . 

(b) AND the present value of assets plus contributions is less than the present value of benefit payments and administrative 

expenses over seven years? .................................................................................. .................... .............................................. . 

CS. The present value of assets plus contributions is less than the present value of benefit payments and administrative expenses 

over fi ve years? ................................................................................... ............................... .......................... ..... ........................... .. 

II. In Critical Status? .......................................................................................................................................................................... .. 

Ill. Determination of critical and declining status: 

C6. (a) Any of(Cl ) through (CS) are Yes? ...................................................................................................................................... .. 

(b) AND EITHER Insolvency is projected within 15 years using assumptions described in Ex hibit VI.B? ............................... . 

(c) OR 

(i) The ratio of inactives 10 actives is at least 2 to I, ...................................................... .......................................................... .. 

(ii) AND insolvency is proj ected within 20 years using assumptions described in Exhibit VI.B? ...................... ...................... .. 

(d) OR 

(i) The funded percentage is less than 80%, ............................................. .......................... ........... ........ ....................... ............ ,. 

(ii) AND insolvency is projected within 20 years using assumptions described in Exhibit VI.B? ............................................ . 

In Critical and Declining Status? ................................................................................................................................................ . 

* Segal Consulting SchM BActrl Illustration. pdf 

Page 3 of 11 

Yes 

Yes 

Yes 

Yes 

No 

No 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Final 

Result 

Yes 

Yes 

Yes 

No 

No 

Yes 

Yes 

Yes 

Yes 

Yes 

3 
CK555

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EXHIBIT I (continued) 

Status Determination as of September 1, 2017 

Status Condition 

Endangered Status: 

EI . (a) Is not in c ritical status, ......................................... ....................... .......................... ....................... .................... ..................... . 

(b) AND the funded percentage is less than 80%? ..... ................................................................................................................. . 

E2. (a) Is no t in critical status, ........................................... ....................... ....................... .... , .................. , .. .......... , ......... . , ........ , ......... ,. 

(b) AND a funding deficiency is projected in seven years? .... ....................... ....................... ... ....................... ............................ . 

In Endangered Status? (Yes when either (El) or(E2) is Yes) .......................................................................................................... . 

In Seriously Endangered Status? ........................................................................................................................................................ . 

Neither Critical Status Nor Endangered Status: 

Neither Critical nor Endangered Status? ........................................................................................................................................... . 

* Segal Consulting SchMBActrllllustration.pdl 

Page 4 of 11 

EIN 51-6099 11 1 / PN 002 

Component Final 

Result Result 

No 

Yes No 

No 

Yes No 

No 

No 

No 

4 
CK556

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51-609911 1 / PN 002 

Documentation Regarding Progress Under Rehabilitation Plan (Schedule MB, line 4c) 

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its rehabilitation plan, 

based on information received from the sponsor and based on the annual standards of the rehabilitation plan. 

The Rehabilitation Plan's annual standard is that, based on reasonable assumptions, the Fund is projected to not become insolvent before 

2026. Based on the assumptions in this certification, a projected insolvency first occurs in the Plan year beginning August 1, 2029 as 

shown in Exhibit V and therefore meets this standard. 

"ft Segal Consulting SchMBActrllllustration.pdf 

Page 5 of 11 

5 
CK557

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51-60991 11 / PN 002 

EXHIBIT II 

Summary of Actuarial Valuation Projections 

The acniarial factors as of September 1, 2017 (based on projections from the September 1, 2016 valuation certificate): 

I. Financial Information 

I. Market value of assets 

2. Actuarial value of assets 

3. Reasonably anticipated contributio ns including reasonably anticipated withdrawal liability payments 

a. Upcoming year 

b. Present value for the next five years 

e. Present value for the next seven years 

II. Liabilities 

I . Present value of vested benefits for active participants 

2. Present va lue of vested benefits for non-active participants 

3. Tota l un it credit accrued liability 

4 . Present value o f payments 

a. Next five years 

b. Next seven years 

5. Unit credit normal cost plus expenses 

6. Ratio of inactive participants to active participants 

Ill. Funded Percentage (1.2)/(11.3) 

IV. Funding Standard Account 

I . Cred it Balance as of the end of prio r year 

2. Years to proj ected funding deficiency 

V. Years to Projected Insolvency 

* Segal Consulting 

Benefit Payments 

$ 11 7,959,3 18 

153,507,322 

SchMBActrllllustration.pdf 

Page 6 of 11 

Administrative Expenses 

$5,487,777 

7,246,407 

S 146,959,183 

147,543,984 

9,828,683 

39,808, 142 

S 1,344,886 

55,984,082 

272,741,026 

328,998,704 

Total 

$123,447,095 

I 60,753,729 

3,034 ,060 

S.4571 

44.8% 

($45,628,883) 

0 

13 

6 
CK558

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EfN 5 1-6099111 / PN 002 

EXHIBIT Ill 

Funding Standard Account Projection 

The table below presents the Funding Standard Account Projection for the Plan Years beginning September 1. 

Year Beginning September 1, 

2016 2017 2018 2019 2020 2021 

I. Credit balance (BOY) ($ 14,037,722) ($45,628,883) ($79 ,20 I ,840) ($1 15,403,239) ($154,793, 109) ($ 176,651,291) 

2. Interest on (I) ( I ,052,829) (3,422, 166) (5,940,138) (8,655,243) ( 11 ,609,483) (13 ,248,847) 

3. Nonna! cost 1,187,467 1,163,7 18 I, 140,444 1,117,635 1,095,282 1,073,376 

4. Administrative expenses 1,226,285 1,238,548 1,250,933 1,263,442 1,276.076 1,288,837 

5. Net amortization charges 35,259,982 35, 102,232 35,048,360 35,33 1,478 16,128,962 10,295,999 

6. Lntercst on (3), (4) and (5) 2,825,530 2,8 12,837 2,807,980 2,828,441 1,387,524 949,366 

7. Expected contributions 9,629,904 9,828,683 9,654,580 9,480,478 9,318,8 11 9,157,145 

8. Interest on (7) 331,028 337,86 1 331,876 325,891 320,334 3 14,777 

9. Full-funding limit credit Q Q Q Q Q Q 

10. Credit balance (EOY): ( I)+ 

(2) - (3) - (4) - (5) - (6) + (7) 

+ (8) + (9) ($4 5,628,883) ($79,201,840) {S l 15,403,239) ($1 54,793,109) ($ 176,651,291) ($ 194,035,794) 

2022 2023 2024 2025 2026 

I. Credit balance (BOY) ($ 194,035,794) ($2 12,882,134) ($233,300,550) ($248,481,299) ($264,526,717) 

2. Interest on ( I) ( 14,552,685) ( 15,966, 160) ( 17,497,541) ( 18,636.097) (19,839,504) 

3. Nonna! cost 1,051,908 1,030,870 1,010,253 990,048 970,24 7 

4 . Administrative expenses 1,301,725 1,3 14,742 1,327,889 1,341,168 1,354,580 

5. Net amortization charges 10,295,998 10,295,997 3,863,087 3,078,055 5,459,34 3 

6. Interest on (3), (4 ) and (5) 948,722 948, 12 1 465,092 405,696 583,813 

7. Expected contributions 8,995,478 8,833,812 8,684,58 1 8,126,304 7,9 12,262 

8. Interest on (7) 309,220 303,662 298,532 279,342 271,984 

9. Full-funding limit credit Q Q Q Q Q 

10. Credit balance (EOY): ( I) + 

(2) - (3) - (4) - (5) - (6) + (7) 

+ (8) + (9) ($212,882,134) ($233,300,550) ($248,481 ,299) ($264,526,7 17) ($284,549,958) 

7 * Segal Consulting SchMBActrllllustration.pdf 

Page 7 of 11 
CK559

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EXHIBIT IV 

Funding Standard Account - Projected Bases Assumed Established After September 1, 2016 

Schedule of Funding Standard Account Bases 

Type of Base Date Established 

Actuarial gain 9/ 1/2017 

Actuarial gain 9/ 1/20 18 

Actuaria l loss 9/ 1/2019 

Actuarial gain 9/ 1/2020 

Actuarial gain 9/ 1/202 1 

* Segal Consulting 

Base 

Established 

($1,496,954) 

(5 11 , 16 1) 

2,686,547 

(807,282) 

(820,8 1 S) 

SchMBActrllllustration.pdf 

Page 8 of 11 

Amortization 

Period 

15 

IS 

IS 

15 

I S 

EIN 51-60991 11 / PN 002 

Amortization 

Payment 

($ 157,754) 

(53,868) 

283, 11 8 

(8S,074) 

(86,S00) 

8 
CK560

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51-60991 1 l / PN 002 

EXHIBITV 

Solvency Projection 

The table below presents the projected Market Value of Assets for the Plan Years beginning September l, 2016 through 2029. 

2016 2017 

I. Markel Value al beginning of 

year $ 151,975,903 $ 146,959, 183 

2. Contributions 8,443,862 8,705, 120 

3. Withdrawal Liability payments 1,186,042 1, 123,563 

4. Benefit payments 27,708,903 28,667,030 

5. Administrative expenses 1,3 14,420 1,287,750 

6. Interest earnings 14,376,699 10,15 1,5 13 

7. Market Value at end of year: 

( 1 )+(2)+(3 )-(4)-(5)+(6) $ 146,959, 183 S 136,984,599 

2023 2024 

I. Market Value at beginning of 

year $86,416,016 S75,5 I I ,05 l 

2. Contributions 10,807, 149 11, 104,138 

3. Withdrawal liability payments I, 123,563 I, 123,563 

4. Benefit payments 27,208,311 27,056,845 

5. Administrative expenses 1,366,972 1,380,642 

6. Interest earnings 5,739,606 4,937,632 

7. Market Value at encl of year: 

( I )+(2)+(3)-(4)-(5)+(6) $75,5 11,051 $64,238,897 

* Segal Consulting 

Year Beginning September 1, 

2018 2019 

$ 136,984,599 S 127, 158,027 

9,!02,112 9,475,795 

1,123,563 1, 123,563 

28, 187,720 27,895,509 

1,300,628 1,3 13,634 

9 4 36 IOI 8,723,383 

$ 127, 158,027 $ 11 7,271 ,625 

2025 2026 

$64,238,897 $52,071 ,983 

11,381, 147 11,638,177 

714 ,517 649,705 

26,959,306 26,901 ,824 

1,394,448 1,408,392 

4091 176 3,187,127 

S52,071,983 $39,236,776 

SchMBActrllllustration.pdf 

Page 9 of 11 

2020 

$1 17,27 1,625 

9,841 ,101 

1, 123,563 

27,605,124 

1,326,770 

8,005,8 I 2 

$ 107,3 10,207 

2027 

S39,236,776 

11,875,226 

649,705 

26,904,163 

1,422,476 

2,232,062 

$25,667,130 

2021 2022 

S 107,3 10,207 $97,030,927 

10, 184,762 10,506,778 

1,123,563 1, 123,563 

27,52 1,05 I 27,409,499 

1,340,038 1,353,438 

7,273,484 6,5 17,685 

S97,030,927 $86,4 I 6,0 I 6 

2028 2029 

$25,667,130 $ I 1,399,75 1 

12,1 13,889 12,334,237 

649,705 649,705 

26,8 19,76 1 26,647,086 

1,436,70 I 1,451,068 

1,225,489 169,537 

$ 11,399,751 ($3,544,924) 

9 
CK561

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51-6099 I 11 / PN 002 

EXHIBIT VI 

Actuarial Assumptions and Methodology 

The actuarial assumptions and plan of benefits are as used in the September l, 2016 actuarial valuation certificate, dated August 17, 2017, 

except as specifically described below. We also assumed that experience would emerge as projected, except as described below. The 

calculations are based on a current understanding of the requirements of ERISA Section 305 and IRC Section 432. 

A Actuarial Assumptions and Plan provisions Except as Modified by Section B. 

Asset Information: 

Projected Industry Activity: 

* Segal Consulting 

The financial information as of August 3 1, 20 17 was based on an unaudited financial statement 

provided by the Fund Auditor. 

For projections after that date, the assumed administrative expenses were increased by 1 % per 

year and the benefit payments were projected based on the September l, 2016 actuarial valuation. 

The projected net investment return was assumed to be 7.5% of the average market value of 

assets for the 20 17 - 2029 Plan Years. Any resulting investment gains or losses, due to the 

operation of the asset valuation method are amortized over 15 years in the Funding Standard 

Account. 

As required by Internal Revenue Code Section 432, assumptions with respect to pr~jected 

industry activity are based on information provided by the plan sponsor. Based on this 

information, the number of active participants is assumed to decrease 2% annually and, on the 

average, contributions will be made for each active for 1,850 hours each year. 

In addition to projections of industry activity directly linked to the level of ongoing employment, 

these determinations also project the following contribution amounts derived from withdrawal 

liability assessments, based on information from the Trustees: 

SchMBActrllllustration.pdf 

Page 10 of 11 

10 
CK562

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

Future Normal Costs: 

Plan Year ending August 3 1: 

2018-2025 

2026 

2027 - 203 1 

2032 

2033 

2034 

2035 

2036 

Amount 

1,123,563 

7 14,517 

649,705 

630,502 

566,702 

384,273 

202,420 

20,567 

EIN 51 -60991 11 I PN 002 

Based on the assumed industry activity and the assumption that replacement employees will have 

the same entry age as employees leaving the work force, the Entry Age Normal Cost method used 

in the valuation results in level Normal Costs per active. Therefore, we have assumed that the 

normal cost in future years will be the same as in the 20 16 Plan Year adjusted in accordance with 

industry activity. 

B. Assumptions for Solvency Projection 

Assumptions for this purpose are the same as shown in Section A with the following exceptions: 

Technical Issues 

In accordance with the current rehabilitation plan, employers are assumed to ai:,rree to annual 

$0.45 contribution rate increases upon the conclusion of their current CBA. 

Segal Consulting ("Segal") does not practice law and, therefore, cannot and does not provide legal advice. 

Any statutory interpretation on which the certification is based reflects Segal's understanding as an actuarial finn. Due to the complexity 

of the statute and the significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when 

making any decisions regarding compliance with ERISA and the Internal Revenue Code 

8636330vl/0 1544.00 I 

* Segal Consulting SchMBActrllllustration.pdf 

Page 11 of 11 

11 
CK563

Actuarial Status Certification as of September 1, 2017 under IRC Section 432 for the Local 807 Labor-Management Pension Fund 

EIN 51 -609911 1 I PN 002 

Documentation Regarding Progress Under Rehabilitation Plan (Schedule MB, line 4c) 

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its rehabilitation plan, 

based on information received from the sponsor and based on the annual standards of the rehabilitation plan. 

The Rehabilitation Plan's annual standard is that, based on reasonable assumptions, the Fund is projected to not become insolvent before 

2026. Based on the assumptions in this certification, a projected insolvency first occurs in the Plan year beginning August 1, 2029 as 

shown in Exhibit V and therefore meets this standard. 

* Segal Consulting OtherAttachment-ScheduleMB-Line4c.pdf 

Page 1 of 1 

5 
CK564

EIN 51-60991 11/PN 002 

Mortality Rates 

EXHIBIT 8 - STATEMENT OF ACTUARIAL ASSUMPTIONS/METHODS 

(SCHEDULE MB, LINE 6) 

Healthy: 

Disabled: 

RP-2014 Blue Collar Employee and Annuitant Mortality Tables {adjusted back to 2006) with 

generational Scale MP-2017 from 2006 

RP-2014 Disabled Annuitant Mortality Table {adjusted back to 2006) with generational Scale MP-2017 

from 2006 

The above mortality tables reasonably reflects the mortality experience of the Plan as of the measurement date. These 

mortality tables were then adjusted to future years using generational projection under Scale MP-2016 to anticipate 

future mortality improvement. 

The mortality rates were based on historical and current demographic data, adjusted to reflect estimated future 

experience and professional judgment. As part of the analysis, a comparison was made between the actual number of 

and the projected number based on the prior year's assumption over the most recent years. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 

ActrtAssmptnMthds.pdf 

Page 1 of 7 

55 
CK565

Termination Rates 

20 0.07 0.02 17.99 14.19 0.00 

25 0.07 0.02 21.74 17.14 12.96 

30 0.06 0.02 18.61 13.58 8.39 

35 0.07 0.03 16.78 11.02 7.15 

40 0.10 0.05 15.91 10.35 6.01 

45 0.16 0.09 15.48 9.47 5.82 

50 0.26 0.13 15.60 8.90 5.32 

55 0.38 0.19 13.52 7.82 2.59 

60 0.64 0.31 13.63 7.84 2.12 

1 Mortality rates are shown from the base table and do not reflect any mortality projection. 

2 Withdrawal rates cut out at early retirement age. 

EIN 51-60991 11/PN 002 

0.00 

0.00 

4.84 

5.02 

4.15 

3.73 

3.49 

0.88 

0.20 

The termination rates were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis, a comparison was made between the actual number of retirements by 

age and the projected number based on the prior year's assumption over the most recent years. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 56 

ActrlAssmptnMthds.pdf 

Page 2 of 7 
CK566

EIN 51-6099111/PN 002 

Retirement Rates 

Description of 

Weighted Average 

Retirement Age 

j Annual 

A e Retirement Rates 

55-61 2% 

62 6 

63 5 

64 11 

65 16 

66 18 

67 11 

68 22 

69 14 

70 100 

* if eligible 

The retirement rates were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis, a comparison was made between the actual number of retirements by 

age and the projected number based on the prior years' assumption over the most recent years. 

Age 66, determined as follows: The weighted average retirement age for each participant is calculated as the sum of 

the product of each potential past or future retirement age times the probability of surviving from entry age to that age 

and then retiring at that age, assuming no other decrements. The overall weighted retirement age is the average of the 

individual retirement ages based on all the active participants included in the September 1, 2017 actuarial valuation. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 

ActrlAssmptnMthds.pdf 

Page 3 of 7 

57 
CK567

EIN 51 -6099111/PN 002 

Retirement Rates for 

Inactive Vested 

Participants 

Future Benefit 

Accruals 

Unknown Data for 

Participants 

Definition of Active 

Participants 

Exclusion of Inactive 

Vested Participants 

Percent Married 

Age of Spouse 

.. '· '. ·1 Annuai: : ', I I Annual 

Retire~en~ ~ Retirement 

Age* . Rates· ::. ,: Age* Rates 

55 24% 63 10% 

56 6 64 3 

57 4 65 53 

58 2 66 29 

59 10 67 13 

60 7 68 5 

61 2 69 13 

62 20 70 100 

* if eligible 

The retirement rates for inactive vested participants were based on historical and current demographic data, adjusted to 

reflect estimated future experience and professional judgment. As part of the analysis, a comparison was made 

between the actual number of retirements by age and the projected number based on the prior years' assumption over 

the most recent years. 

Employees are assumed to work 1,850 hours per year. 

The future benefit accruals were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis, a comparison was made between the assumed and the actual benefit 

accruals over the most recent years. 

Same as those exhibited by participants with similar known characteristics. If not specified, participants are assumed to 

be male. 

Active participants are defined as those with at least 250 hours in the most recent credit year and who have 

accumulated at least one pension credit, excluding those who have retired as of the valuation date. 

None 

50% 

Females three years younger than males. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 

ActrlAssmptnMthds.pdf 

Page 4 of 7 

58 
CK568

Benefit Election 

EIN 51-6099111/PN 002 

60% of participants assumed to elect the Single Life Annuity, 20% assumed to elect 50% Joint and Survivor Annuity, 

and 20% assumed to elect 75% Joint-and-Survivor Annuity. 

The benefit elections were based on historical and current demographic data, adjusted to reflect the plan design, 

estimated future experience and professional judgment. As part of the analysis, a comparison was made between the 

assumed and the actual option election patterns over the past several years. 

Delayed Retirement Inactive vested participants who are assumed to commence receipt of benefits after attaining normal retirement age 

qualify for delayed retirement increases. 

Net Investment Return 7.00% 

The net investment return assumption is a long-term estimate derived from historical data, current and recent market 

expectations, and professional judgment. As part of the analysis, a building block approach was used that reflects 

inflation expectations and anticipated risk premiums for each of the portfolio's asset classes as provided by Segal 

Marco Consulting, as well as the Plan's target asset allocation. 

Annual Administrative $1 ,500,000, payable monthly, for the year beginning September 1, 2017 (equivalent to $1,446,296 payable at the 

Expenses beginning of the year) 

Actuarial Value of 

Assets 

Actuarial Cost Method 

Benefits Valued 

Current Liability 

Assumptions 

Estimated Rate of 

Investment Return 

FSA Contribution 

Timing (Schedule MB, 

line 3a) 

The annual administrative expenses were based on historical and current data, adjusted to reflect estimated future 

experience and professional judgment. 

The market value of assets less unrecognized returns in each of the last five years. Unrecognized return is equal to the 

difference between the actual market return and the projected market return, and is recognized over a five-year period. 

The actuarial value is further adjusted, if necessary, to be within 20% of the market value. 

Entry Age Normal Actuarial Cost Method. Entry Age is the age at date of employment or, if date is unknown, current 

age minus pension credits. Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and are 

allocated by service, with Normal Cost determined as if the current benefit accrual rate had always been in effect. 

Unless otherwise indicated, includes all benefits summarized in Exhibit 9. 

Interest: 3.03%, within the permissible range prescribed under IRC Section 431 (c)(6)(E) 

Mortality: Mortality prescribed under IRS Regulations 1.431 ( c)(6)-1 and 1.430(h)(3)-1: RP-2000 tables projected forward 

to the valuation year plus seven years for annuitants and 15 years for nonannuitants 

On actuarial value of assets (Schedule MB, line 6g): 8. 48%, for the Plan Year ending August 31, 2017 

On cuffent (market) value of assets (Schedule MB, line 6h): 10.10%, for the Plan Year ending August 31, 2017 

Unless otherwise noted, contributions are paid periodically throughout the year pursuant to collective bargaining 

agreements. The interest credited in the Funding Standard Account is therefore assumed to be equivalent to a March 

15 contribution date. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund ft Segal Consulting 59 

ActrlAssmptnMthds.pdf 

Page 5 of 7 
CK569

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

EIN 51-6099111/PN 002 

For purposes of determining current liability, the current liability interest rate was changed from 3.11 % to 3.03% due to 

a change in the permissible range and recognizing that any rate within the permissible range satisfies the req uirements 

of IRC Section 413(c)(6)(E) and the mortality tables were changed in accordance with IRS Regulations 1.431(c)(6)-1 

and 1.430(h)(3)-1 . 

Based on past experience and future expectations, the following actuarial assumptions were changed: 

> Mortality rates for healthy participants, previously RP-2014 Blue Collar Mortality Tables (adjusted back to 2006) with 

generational projection using Scale MP 2016 from 2006. 

> Mortality rates for disabled participants, previously RP-2014 Disabled Annuitant Mortality Table (adjusted back to 

2006) with generational projection using Scale MP 2016 from 2006. 

> Retirement rates for each participants, previously: 

55-61 2% 

62-63 6 

64 12 

65 15 

66 16 

67 7 

68 16 

69 19 

70 100 

* if eligible 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 60 

ActrlAssmptnMthds.pdf 

Page 6 of ? 
CK570

EIN 51 -6099111/PN 002 

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

(Cont'd) 

> Retirement rates for inactive vested participants, previously: 

· I Annual I Retirement · ,, · 

Age* Rates Age* -

55 28% 63 12% 

56-57 4 64 3 

58 2 65 52 

59 10 66 29 

60 9 67 12 

61 2 68 6 

62 20 69 13 

70 100 

* if eligible 

> Benefit election, previously 60% of participants assumed to elect Single Life Annuity and 40% assumed to elect 

50% Joint-and-Survivor Annuity 

> Annual administrative expenses, previously $1 ,275,000 per year 

> Net investment return, previously 7.50% 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 

ActrlAssmptnMthds.pdf 

Page 7 of? 

61 
CK571

EIN 51-6099111 /PN 002 

EXHIBIT 9 - SUMMARY OF PLAN PROVISIONS 

(SCHEDULE MB, LINE 6) 

This exhibit summarizes the major provisions of the Plan included in the valuation. ft is not intended to be, nor should it be interpreted as, a 

complete statement of all plan provisions. 

Plan Year 

Pension Credit Year 

Plan Status 

Regular Pension 

Early Retirement 

Vesting 

September 1 through August 31 

February 1 through January 31 

Ongoing plan 

• Age Requirement: 65 

• Service Requirement: 15 pension credits 

Amount: The total accrued benefit is the sum of each year's accrual based on 

1. The highest contribution rate prior to February 1, 201 O for service earned prior to February 1, 2010. 

2. The highest contribution rate that was made for at least 250 hours during the pension credit year for 

service from February 1, 2010 to January 31 , 2012. 

3. For service on and after February 1, 2012, the accrual rate is lesser of: 

(a) 1 % of product of number of hours for which contributions are due on behalf of the participant in 

credit year based on the contribution rate in effect on September 1, 2011 , or 

(b) Accrual rate under the Plan as of September 1, 2011 . 

The accrual rate effective May 1, 2001 for contribution rates $4.315 or more per hour, $165 for each pension credit less 

than 25 plus $20.49 for each pension credit greater than 25. Lower benefit levels have been established for employees 

at lower contribution levels. 

Delayed Retirement Amount: Regular pension accrued at Normal Retirement Age (NRA), increased by 1.0% for each 

month greater than NRA, and 1.5% for each month greater than age 70. 

• Age Requirement: 55 

• Service Requirement: 15 pension credits 

• Amount: Regular pension accrued, actuarially, reduced from age 65 

• Age Requirement: None 

• Service Requirement: Five pension credits or 5 years of vesting service 

• Amount: Regular or early pension accrued based on plan in effect and contribution rate when last active 

• Normal Retirement Age. Later of age 65 or the participant's 5th anniversary of participation. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 

PlanProvisions.pdf 

Page 1 of 2 

62 
CK572

EIN 51 -6099111/PN 002 

Spouse's PreRetirement Death 

Benefit 

Optional Forms of 

Benefits 

Participation 

Pension Credit 

Vesting Credit 

Contribution Rate 

Changes in Plan 

Provisions 

8703328v1/01 544. 001 

• Age Requirement: None 

• Service Requirement: 5 pension credits or 5 years of vesting service 

• Amount: 50% of the benefit employee would have received had he or she retired the day before he or she died and 

elected the joint and survivor option. If the employee died prior to eligibility for an early retirement pension, the 

spouse's benefit is deferred to the date employee would have first been eligible to retire. 

• Charge for Coverage: None 

50% Joint-and-Survivor 

75% Joint-and-Survivor 

Single Life Annuity 

Earliest of February 1 or August 1 after completion of 1,000 hours during a 12 consecutive month period. 

Hours Worked : 

Per Year Pension Credit I 

Under250 O 

250 - 499 1/4 

500- 749 1/2 

750- 999 3/4 

1,000 and over 1 

One year of vesting service for at least 1,000 hours. 

Rates as of September 1, 2017 vary from $1.50 to $10.37 per hour, with an average rate of $6.9393. 

None 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund * Segal Consulting 

PlanProvisions.pdf 

Page 2 of 2 

63 
CK573

EIN 51-6099111/PN 002 

EXHIBIT 5 - SCHEDULE OF PROJECTION OF EXPECTED BENEFIT PAYMENTS 

(SCHEDULE MB, LINE 8b(1 )) 

Plan Expected Annual 

Year Benefit Pa ments1 

2017 $29,660,601 

2018 29,017,862 

2019 28,540,864 

2020 28,141 ,176 

2021 27,855,072 

2022 27,565,261 

2023 27,223,633 

2024 26,930,258 

2025 26,688,239 

2026 26,376,318 

1 Assuming as of the valuation date: 

• no additional accruals, 

• experience is in line with valuation assumptions, and 

• no new entrants are covered by the plan. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund 

OtherAttachment_SchMB_Line8b(1 ).pdf 

Page 1 of 1 

* Segal Consulting 50 
CK574

EIN 51-6099111/PN 002 

EXHIBIT 6 - SCHEDULE OF ACTIVE PARTICIPANT DATA 

(SCHEDULE MB, LINE 8b(2)) 

The participant data is for the year ended January 3 l, 2017. 

Pension Credits 

• 

A e Total 1-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40&overUnder 25 

25 - 29 10 9 

30- 34 34 21 6 7 

35 - 39 43 19 8 13 3 

40 -44 68 16 10 17 18 7 

45 - 49 94 12 15 21 25 15 6 

50 - 54 134 20 16 27 25 26 11 

55 - 59 115 7 8 22 22 28 14 

60- 64 81 1 6 23 10 16 9 

65 - 69 35 1 3 4 7 9 6 

70 & over 5 1 1 1 1 

Unknown 73 61 12 

Total 692 168 86 135 110 102 47 

Note: Excludes 66 participants with less than one pension credit. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund 

Active ParticipData. pdf 

Page 1 of 1 

9 

10 4 

11 4 

4 

31 12 1 

* Segal Consulting 51 
CK575

EIN 51 -6099111/PN 002 

EXHIBIT 7 - FUNDING STANDARD ACCOUNT (CONTINUED) 

Schedule of FSA Bases (Charges) (Schedule MB, Line 9c) 

Date Amortization Years Outstanding 

T pe of Base Established Amount Remainin Balance 

Plan amendment 09/01/2009 $529,467 

Actuarial loss 09/01/2009 5,822,349 

Combined and offset base 09/01/2009 24,741 ,614 

Plan amendment 09/01 /2010 41 ,383 

Actuarial loss 09/01/2010 784,017 

Actuarial loss 09/01/2011 180,307 

Actuarial loss 09/01 /2012 2,392,142 

Actuarial loss 09/01 /2013 1,072,777 

Assumption changes 09/01 /2014 718,260 

Actuarial loss 09/01 /2016 8,293 

Assumption changes 09/01 /2016 2,268,417 

Actuarial loss 09/01 /2017 159,514 

Assumption changes 09/01/2017 1,497,709 

Total $40,216,249 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund 

SchMBFndgStndAccntBases.pdf 

Page 1 of 2 

7 $3,053,191 

7 33,574,806 

3.22 74,134,349 

8 264,410 

8 5,009,309 

9 1,256,975 

10 17,977,501 

11 8,607,512 

12 6, 104,254 

14 77,601 

14 21,227,054 

15 1,554,540 

15 14,595,873 

$187,437,375 

* Segal Consulting 53 
CK576

EXHIBIT 7 - FUNDING STANDARD ACCOUNT (CONTINUED) 

Schedule of FSA Bases (Credits) (Schedule MB, Line 9h) 

Assumption changes 09/01 /2010 $51.752 

Plan amendment 09/01 /2011 2,522,660 

Actuarial gain 09/01/2014 428,664 

Actuarial gain 09/01/2015 588,013 

Total $3,591,089 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund 

SchM BF ndgStndAccntBases. pdf 

Page 2 of 2 

8 

9 

12 

13 

EIN 51-6099111/PN 002 

Outstanding 

Balance 

$330,656 

17,586,215 

3,643,077 

5,258,414 

$26,818,362 

"ft Segal Consulting 54 
CK577

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

EIN 51-60991 11/PN 002 

For purposes of determining current liability, the current liability interest rate was changed from 3.11% to 3.03% due to 

a change in the permissible range and recognizing that any rate within the permissible range satisfies the requirements 

of IRC Section 413(c)(6)(E) and the mortality tables were changed in accordance with IRS Regulations 1.431 (c)(6)-1 

and 1.430(h)(3)-1. 

Based on past experience and future expectations, the following actuarial assumptions were changed: 

> Mortality rates for healthy participants, previously RP-2014 Blue Collar Mortality Tables (adjusted back to 2006) with 

generational projection using Scale MP 2016 from 2006. 

> Mortality rates for disabled participants, previously RP-2014 Disabled Annuitant Mortality Table (adjusted back to 

2006) with generational projection using Scale MP 2016 from 2006. 

> Retirement rates for each participants, previously: 

55-61 2% 

62-63 6 

64 12 

65 15 

66 16 

67 7 

68 16 

69 19 

70 100 

" if eligible 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund -,~ Segal Consulting 60 

Sch MBJustificationChgActrlAssmptn. pdf 

Page 1 of 2 
CK578

EIN 51-6099111/PN 002 

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

(Cont'd) 

> Retirement rates for inactive vested participants, previously: 

. .-

·-, , . Retirement 

, Age* .. ,,_ ,-. : ·; ,j~ate"s. 

. ' 

Age*. f,. • ,,.,,· 

55 28% 63 

56 - 57 4 64 

58 2 65 

59 10 66 

60 9 67 

61 2 68 

62 20 69 

70 

* if eligible 

Annual 

Retirement 

Rates 

12% 

3 

52 

29 

12 

6 

13 

100 

> Benefit election, previously 60% of participants assumed to elect Single Life Annuity and 40% assumed to elect 

50% Joint-and-Survivor Annuity 

> Annual administrative expenses, previously $1 ,275,000 per year 

> Net investment return, previously 7.50% 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund ft Segal Consulting 

Sch MBJustificationChgActrlAssmptn. pdf 

Page 2 of 2 

61 
CK579

Schultheis & Panettieri LLP --Accountants and Consultants - - -

Please Re ply to: 

210 Marcus Boulevard 

Hauppauge, NY 11788-3740 

Telephone: (631) 27H778 

Fax: (631) 273-3488 

21 Vernon Street 

Floral Park, NY 11001 

Telephone: (516) 216-5695 

485A US Route l South 

Suite 360 

lselin, NJ 08830 

Telephone: (732) 268-1301 

http:/ /www.snpcpa.com 

PARTNERS 

Carol Westfall, CPA 

Vincent F. Panettieri, CPA 

Max Capone, CPA 

James M. Heinzman, CPA 

Donna Panettieri, CPA 

Peter M. Murray, CPA 

Sharon M. Haddad, CPA 

Gary Waldren, CPA 

Alexander Campo, CPA.CITP 

Jennifer Evans, CPA 

Richard B. Silvestro, CPA 

Jamie L. Krainski, CPA 

Vincent A. Gelpi, CPA 

DIRECTORS 

Stephen Bowen 

Anthony Sgroi 

William R. Shannon 

William Austin 

Kimberly Lessuk 

Michael Fox 

Viorel Kuzma 

Independent Auditor's Report 

Board of Trustees 

Local 807 Labor-Management Pension Fund 

Report on the Financial Statements 

We have audited the accompanying financial statements of the Local 807 LaborManagement Pension Fund (the "Plan") which comprise the statements of net 

assets available for benefits as of August 31, 2018 and 2017, and the related 

statements of changes in net assets available for benefits for the years ended 

August 31, 2018 and 2017, and the related notes to the financial statements. 

Management's Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these 

financial statements in accordance with accounting principles generally accepted in 

the United States of America; this includes the design, implementation, and 

maintenance of internal control relevant to the preparation and fair presentation of 

financial statements that are free from material misstatement, whether due to fraud 

or error. 

Auditor's Responsibility 

Our responsibility is to express an opinion on these financial statements based on 

our audits. We conducted our audits in accordance with auditing standards 

generally accepted in the United States of America. Those standards require that 

we plan and perform the audit to obtain reasonable assurance about whether the 

financial statements are free of material misstatement. 

An audit involves performing procedures to obtain audit evidence about the 

amounts and disclosures in the financial statements. The procedures selected 

depend on the auditor's judgment, including the assessment of the risks of material 

misstatement of the financial statements, whether due to fraud or error. In making 

those risk assessments, the auditor considers internal control relevant to the entity's 

preparation and fair presentation of the financial statements in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of the entity's internal control. 

Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluating the overall 

presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to 

provide a basis for our audit opinion. 

1 
CK580

Opinion 

In our opinion, the financial statements referred to above present fairly, in all 

material respects, the net assets available for benefits of the Plan as of August 31, 

2018, and the changes therein for the year ended August 31, 2018 and its financial 

status as of August 31, 2017, and its changes therein for the year ended August 31, 

2017 in accordance with accounting principles generally accepted in the United 

States of America. 

Report on Supplemental information 

Our audits were conducted for the purpose of forming an opinion on the financial 

statements as a whole. The supplemental information on pages 19 through 35 is 

presented for purposes of additional analysis and is not a required part of the 

financial statements. The supplemental information on pages 19 through 32 is 

required by the Department of Labor's Rules and Regulations for Reporting and 

Disclosure under the Employee Retirement Income Security Act of 1974. Such 

information is the responsibility of management and was derived from and relates 

directly to the underlying accounting and other records used to prepare the financial 

statements. The information has been subjected to the auditing procedures applied 

in the audits of the financial statements and certain additional procedures, including 

comparing and reconciling such information directly to the underlying accounting 

and other records used to prepare the financial statements or to the financial 

statements themselves, and other additional procedures in accordance with auditing 

standards generally accepted in the United States of America. In our opinion, the 

information is fairly stated in all material respects in relation to the financial 

statements as a whole. 

~c1/2!&$~ 

Hauppauge, New York 

February 27, 2019 

2 
CK581

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS 

AUGUST 31 , 2018 AND 2017 

2018 

Assets 

Investments at fair value 

Interest bearing cash $ 3,249,095 

U.S. government securities 23,913,125 

Corporate debt instruments 17,926,946 

Corporate stock 19,747,139 

Partnership/joint venture interests 13,800,683 

Real estate 1,485,000 

Common/collective trust funds 27,096,987 

Pooled separate accounts 11 ,572,442 

Registered investment companies 15,097,393 

Total investments 133,888,810 

Receivables 

Employers' contributions 1,094,700 

Employers' withdrawal liability 19,789,596 

Accrued interest/dividends 225,262 

Cash 4,447,864 

Other assets 173 140 

Total assets 159,619,372 

Liabilities 

Accounts payable 353,674 

Related organizations 41,332 

Net trades pending settlement 11 5,252 

Total liabilities 510 258 

Net assets available for benefits $ 159,1 09,1 14 

See Notes to Financial Statements 

2017 

$ 4,91 7,984 

23,216,098 

19,180,576 

16,977,293 

12,321,954 

1,485,000 

32,655,1 17 

15,045,248 

17,000,341 

142,799,611 

781,200 

11 ,876,742 

201,455 

3,342,465 

168,682 

159,1 70,155 

98,406 

75,574 

160,250 

334,230 

$ 158,835,925 

3 
CK582

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS 

YEARS ENDED AUGUST 31 , 2018 AND 2017 

2018 2017 

Additions to net assets attributed to: 

Investment income 

Net appreciation in fair value of investments $ 8,098,193 $ 11 ,378,249 

Interest/dividends 3,996,776 3,257,626 

Rent - net of related expenses 146 187 139 677 

Total investment income 12,241,156 14,775,552 

Less investment expenses (385,293) (398,853) 

Net investment income 11 ,855,863 14,376,699 

Contributions 

Employers' 8,815,351 8,443,862 

Employers' withdrawal liability 9,473,496 906 482 

Total additions 30,144,710 23,727,043 

Deductions from net assets attributed to: 

Benefits paid directly to participants or beneficiaries 27,611 ,270 27,708,903 

Administrative expenses 2,260,251 1 314 420 

Total deductions 29,871,521 29,023,323 

Net increase (decrease) 273,189 (5,296,280) 

Net assets available for benefits 

Beginning of year 158,835,925 164,132,205 

End of year $ 159,109,114 $ 158,835,925 

See Notes to Financial Statements 4 
CK583

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 1 - Description of Plan and Significant Accounting Policies 

The following description of the Local 807 Labor-Management Pension Fund (the "Plan") provides only 

general information. Participants should refer to the plan document for a more complete description of 

the Plan's provisions. 

General 

The Plan first became effective December 1, 1950 and is a defined benefit pension plan established 

under an Agreement and Declaration of Trust pursuant to collective bargaining agreements between the 

Truck Drivers Local Union No. 807 International Brotherhood of Teamsters (the "Union") and various 

employers and employer associations in the transportation industry in the New York Metropolitan Area. 

It is subject to the provisions of the Employee Retirement Income Security Act of 197 4 ("ERISA"). 

Management has evaluated subsequent events through the date of the auditor's report, the date the 

financial statements were available to be issued. 

Purpose 

The purpose of the Plan is to provide retirement and death benefits to eligible participants. 

Participation 

A participant is a pensioner, beneficiary or individual employed by an employer subject to a collective 

bargaining agreement or participation agreement, employees of Local 807 Labor-Management Health 

Fund (the "Health Fund") and certain employees of the Union. 

Benefits 

In general, participants with five or more years vesting service are entitled to monthly pension benefits 

beginning at normal retirement age 65. The Plan permits early retirement at ages 55-64 and other forms 

of retirement based on age and years of credited service (pension credits). 

Pension credits are based on hours worked in covered employment. A participant may accumulate up 

to a maximum of 1 credit per year for every 250 hours worked. 

Monthly pension benefits are based on employer contribution rates. 

5 
CK584

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 1 - Description of Plan and Significant Accounting Policies (cont'd) 

Death benefit 

Participants whose annuity start date is before September 1, 2011 and are receiving a pension are 

eligible to receive a lump sum death benefit payment equal to $1,000. 

Plan termination 

The Trustees expect and intend to continue the Plan indefinitely, but reserve the right to amend or 

terminate it as provided for by the applicable Trust Agreement and Plan provisions. If the Plan is 

terminated, Plan assets will be allocated to provide benefits to those eligible under the terms of the Plan 

in the order of priority specified in the Plan and as otherwise required by law. The priority of benefits 

depends on a participant's status as retired or active, vested or unvested, and age at the time of Plan 

termination. Certain benefits are insured by the Pension Benefit Guaranty Corporation ("PBGC"). 

Whether all participants receive their benefits on Plan termination would depend on the sufficiency of the 

Plan's net assets to provide those benefits and may also depend on the level and type of benefits 

guaranteed by the PBGC. 

Basis of accounting 

The financial statements are presented on the accrual basis of accounting. 

Investment valuation and income recognition 

The Plan's investments are stated at fair value. See "Fair value measurements" footnote for additional 

information. 

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on 

the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation/(depreciation) 

includes the Plan's gains and losses on investments bought and sold as well as held during the year. 

Administrative expense allocation 

The administrative office is occupied by the Health Fund, Pension Fund and the 807 Profit Sharing Plan 

(the "Fringe Benefit Funds"). Certain expenses not specifically applicable to a particular entity are 

allocated based on the estimated benefit received by each entity. Amounts reported as receivable from 

related organizations or payable to related organizations generally include balances for shared 

expenses. 

Reimbursements paid to related organizations for the years ended August 31 , 2018 and 2017 were 

$573,645 and $529,248, respectively. 

6 
CK585

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 1 - Description of Plan and Significant Accounting Policies (cont'd) 

Use of estimates 

The preparation of financial statements in conformity with accounting principles generally accepted in the 

United States of America requires management to make estimates and assumptions that affect the 

amounts reported in the financial statements and accompanying notes. Actual results could differ from 

these estimates. 

Note 2 - Cash 

At times throughout the year the Plan may have, on deposit in banks, amounts in excess of FDIC 

insurance limits. The Plan has not experienced any losses in such accounts and the Trustees believe it 

is not exposed to any significant credit risks. 

Note 3 - Fair value measurements 

The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to 

valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted 

quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest 

priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are 

described as follows: 

Level 1 inputs to the valuation methodology are unadjusted quoted prices, in active markets, for identical 

assets that the Plan has the ability to access. 

Level 2 inputs to the valuation methodology include: quoted prices for similar assets in active markets, 

quoted prices for identical or similar assets in inactive markets, inputs other than quoted prices that are 

observable for the asset, and inputs that are derived principally from or corroborated by observable 

market data by correlation or other means. If the asset has a specified (contractual) term, the level 2 

input must be observable for substantially the full term of the asset. 

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value 

measurement. Level 3 inputs are generally based on the best information available which may include 

the reporting entity's own assumptions and data. 

The asset's fair value measurement level within the fair value hierarchy is based on the lowest level of 

any input that is significant to the fair value measurement. Valuation techniques used need to maximize 

the use of observable inputs and minimize the use of unobservable inputs. 

Interest bearing cash: Valued at cost. 

7 
CK586

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 3 - Fair value measurements (cont'd) 

U.S. government securities, corporate debt instruments, corporate stocks and registered investment 

companies: Valued at the closing price reported in the active market in which the securities are traded. 

Real estate: Value is based on an independent appraisal using the income capitalization approach. 

Investments measured at net asset value: Partnership/joint venture interests, common/collective trust 

funds and pooled separate accounts values are estimated by management of the trust/ account. 

The preceding methods may produce a fair value calculation that may not be indicative of net realizable 

value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods 

are appropriate and consistent with other market participants, the use of different methodologies or 

assumptions to determine the fair value of certain financial instruments could result in a different fair 

value measurement at the reporting date. 

Certain investments that are measured at fair value using the net asset value per share (or its 

equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value 

amounts presented in the tables below are intended to permit reconciliation of the fair value hierarchy to 

the amounts presented in the statements of net assets available for benefits. 

8 
CK587

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31 , 2018 AND 2017 

Note 3 - Fair value measurements (cont'd) 

The following table sets forth, by level within the fair value hierarchy, the Plan's investments, as of 

August 31, 2018, with fair value measurements on a recurring basis: 

2018 Level 1 Level 2 Level 3 

Interest bearing cash $ 3,249,095 $ 3,249,095 $ $ 

Investments at fair value as 

determined by quoted 

market price 

U.S. government securities 23,913,125 12,1 19,486 11,793,639 

Corporate debt instruments 17,926,946 17,926,946 

Corporate stock 19,747,139 19,747,139 

Registered investment 

companies 15,097,393 15,097,393 

Investments at estimated 

fair value 

Real estate 1,485,000 1,485,000 

Total assets in the fair value 

hierarchy 81,418,698 50,213,11 3 29,720,585 1,485,000 

Investments measured at net 

asset value 52,470,1 12 

Investments at fair value $ 133,888,810 $ 50,213,113 $ 29,720,585 $ 1,485,000 

9 
CK588

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31 , 2018 AND 2017 

Note 3 - Fair value measurements (cont'd) 

The following table sets forth, by level within the fair value hierarchy, the Plan's investments, as of 

August 31, 2017, with fair value measurements on a recurring basis: 

2017 Level 1 Level 2 Level 3 

Interest bearing cash $ 4,917,984 $ 4,917,984 $ $ 

Investments at fair value as 

determined by quoted 

market price 

U.S. government securities 23,216,098 11 ,246,075 11 ,970,023 

Corporate debt instruments 19,180,576 19,180,576 

Corporate stock 16,977,293 16,977,293 

Registered investment 

companies 17,000,341 17,000,341 

Investments at estimated 

fair value 

Real estate 1.485,000 1.485,000 

Total assets in the fair value 

hierarchy 82,777,292 50,141 ,693 31 ,150,599 1,485,000 

Investments measured at net 

asset value 60,022,319 

Investments at fair value $ 142,799,61 1 $ 50,141,693 $ 31,150,599 $ 1.485,000 

The following table provides a summary of the changes in fair value on a recurring basis for Level 3 

assets for the year ended August 31, 2018: 

Description 

Opening balance 

Total investment income included in changes in net assets 

Closing balance 

$ 

$ 

Total Real Estate 

1,485,000 $ 1,485,000 

1 485 000 $ 1 485 000 

Change in unrealized gains or losses for the period included in earnings (or changes 

in net assets) for assets held at the end of the reporting period $===== $===== 

10 
CK589

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 3 - Fair value measurements (cont'd) 

The following table provides a summary of the changes in fair value on a recurring basis for Level 3 

assets for the year ended August 31, 2017: 

Descri tion 

Opening balance 

Total investment income included in changes in net assets 

Closing balance 

$ 

$ 

Total Investment type 

1,485,000 $ 1,485,000 

1 485 000 $.=====1 =4=85====0= 0 0 

Change in unrealized gains or losses for the period included in earnings (or changes 

in net assets) for assets held at the end of the reporting period $====== $.===== 

Total gains or losses attributable to the change in unrealized gains or losses relating to Level 3 assets 

still held as of August 31, 2018 and 2017 are included in the "Net appreciation (depreciation) in 

investments" category in the Statements of Changes in Net Assets Available for Benefits. 

The following table represents quantitative information about significant unobservable inputs used in the 

fair value measurements of the directly held or underlying assets of the Plan's significant Level 3 

investments: 

Investment 

Investment Property - $ 

Lot 19 32-43 49th 

Avenue Long Island 

City NY 

Principal 

Fair Valuation 

Value Technique 

1,485,000 Income Capitalization 

Note 4 - Risks and uncertainties 

Unobservable 

Inputs 

Future potential net 

income using 

discounted cash flow 

analysis 

Range of 

Significant 

Input Values 

N/A 

Weighted 

Average 

N/A 

The Plan invests in various investment securities. Investment securities are exposed to various risks 

such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment 

securities, it is at least reasonably possible that changes in the values of investment securities will occur 

in the near term and that such changes could materially affect the amounts reported in the financial 

statements. 

Plan contributions are made and the actuarial present value of accumulated plan benefits are reported 

based on certain assumptions pertaining to interest rates, inflation rates and employee demographics, all 

of which are subject to change. Due to uncertainties inherent in the estimations and assumptions 

process, it is at least reasonably possible that changes in these estimates and assumptions in the near 

term could be material to the financial statements. 

11 
CK590

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 5 - Party-in-interest transactions 

Certain Plan investments are held by the manager of the investment, therefore, transactions relating to 

those investments qualify as exempt party-in-interest transactions and are identified as such on the 

supplemental schedules of investments. 

Note 6 - Partnerships 

The Plan invests in the WCM Focused International Growth Fund, L.P. (WCM), which is a Delaware 

limited partnership for income tax purposes. The investment objective of WCM is long term capital 

appreciation. WCM will normally invest at least 75% of its net assets in equity securities of non-U.S. 

domiciled companies or depository receipts of non-U.S. domiciled companies. The fund may invest in 

companies of any size; however, investments will generally be in companies with large capitalizations. 

Limited partners' withdrawals may be made as of the last day of any calendar month on at least 5 days' 

written notice to the General Partner. The partnership shall continue unless terminated earlier in 

accordance with the provisions of the Limited Partnership Agreement. As of August 31, 2018 and 2017, 

the estimated fair value of the Plan's investment was $13,800,683 and $12,321,954, respectively. 

Note 7 - Common I collective trust investments 

The following common collective trust funds (collectively the "SSGA Funds"), were formed by State 

Street Bank. State Street Bank is trustee, custodian, and recordkeeper of the SSGA Funds and has 

exclusive management and control of the SSGA Funds. State Street Global Advisors ("SSGA"), a 

division of State Street Bank is the SSGA Funds' investment manager. 

The investment objective of the SSGA Russell 2000 Index lending funds is to approximate as closely as 

practicable, before expenses, the performance of the Russell 2000 Index over the long term. The lending 

fund also engages in securities lending activity. As of August 31, 2018 and 2017, the estimated fair value 

of the Plan's investment in the lending fund was $7,900,238 and $12,066,759, respectively. 

The investment objective of the SSGA Russell 1000 Growth Index non-lending fund is to approximate as 

closely as practicable, before expenses, the performance of the Russell 1000 Index over the long term. 

As of August 31, 2018 and 2017, the estimated fair value of the Plan's investment was $19,196,749 and 

$20,316,880, respectively. 

The per unit net asset values of the SSGA Funds are determined each business day. Issuances and 

redemptions may be made on such days consistent with the terms of the underlying investment funds. 

Withdrawal safeguards imposed in the past have been lifted but SSGA will monitor market conditions 

and evaluate the need for withdrawal safeguards as appropriate. 

12 
CK591

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 8 - Pooled separate account 

The Plan invests in the Prudential Prisa Account which is a pooled separate account investing primarily 

in real estate investments. The contract states that withdrawal requests will be scheduled for payment 

on the next valuation date after at least 90 days written request for withdrawal. The valuation date is the 

last business day in each calendar quarter. In the event the total withdrawal requests exceed the total 

cash available to honor such requests, available cash will be pro-rated among those contract-holders 

eligible for withdrawals. As of August 31, 2018 and 2017, the estimated fair value of the Plan's 

investment was $11,572,442 and $15,045,248, respectively. 

Note 9 - Employers' contributions 

In accordance with collective bargaining agreements, employers are required to make contributions to 

the Plan on behalf of employees performing covered work. 

Note 10 - Real estate / Rental income 

The Plan, along with the Local 807 Labor-Management Health Fund and 32-43 49th Street Holding 

Corporation, owns real estate located at 32-43 49th Street, Long Island City, New York. This real estate 

is treated as an investment of the Plan. Unrealized appreciation and depreciation is recorded based on 

the fair market value of the building as determined by an independent appraisal. 

The investment property is leased to Best Buy, Inc., an unrelated third party, under a lease that has five 

year options to extend. The tenant exercised all options to extend the lease through January 31, 2029. In 

addition to the annual base rent, the tenant is subject to escalation charges as stated in the lease. 

Effective February 1, 2014, annual base rent under the current option is $303,839, plus escalations of 

$146,733. The Plan receives $94,190, plus escalations of $50,157 as its share of the annual rent. Rental 

income received for the years ended August 31, 2018 and 2017 was $146,187 and $139,677, 

respectively. Included in the current year rental income of $146,187 is a retroactive payment of $1,840. 

Future minimum base lease payments due to the Plan for the years ending August 31 are as follows: 

2019 

2020 

2021 

2022 

2023 

2024 and thereafter 

Total 

$ 98,402 

101,411 

101,411 

101 ,411 

101,411 

585,415 

$ 1,089,461 

13 
CK592

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 11 - Employers withdrawal liability receivable 

Withdrawal liability is assessed to employers who have withdrawn from the Plan in accordance with Plan 

rules and regulations. The withdrawal liability receivable is recorded when collection is assured. During 

the year ended August 31 , 2018, there were four new employer withdrawals assessed totaling 

$12,625,000, including $881,000 of interest for a net withdrawal liability of $11 ,744,000. During the year 

ended August 31, 2017, there were two new employer withdrawals assessed totaling $596,000, including 

$32,000 of interest for a net withdrawal liability of $564,000. Withdrawal liabilities are payable quarterly 

plus interest at 7.50%. For the years ended August 31, 2018 and 2017, the withdrawal liability principal 

payments were $1 ,145,221 and $843,916, respectively and the write-offs were $890,642 and $0, 

respectively. 

As of August 31, 2018 and 2017, withdrawal liability receivable was $19,789,596 (net of $3,286,936 of 

deferred interest) and $11,876,742 (net of $5,944,834 of deferred interest), respectively. 

Effective June, 2014, there will be no re-allocation to remaining contributing employers of any collectible 

amounts due to settlement of withdrawal liabilities. 

Note 12 - Lease commitments 

The Fringe Benefit Funds lease office space from 32-43 49th Street Holding Corporation, a related party. 

The lease term expires December 31, 2019. The monthly base rent for the calendar years 2018 and 

2017 were $13,236 and $12,850, respectively. 

The Plan's portion of the rent is 33%. Additionally, the Plan pays its portion of maintenance costs. Total 

occupancy expense for the years ended August 31 , 2018 and 2017 was $60,798 and $60,613, 

respectively. 

Future minimum annual lease obligations as of August 31, 2018 are as follows: 

2019 

2020 

Total 

Note 13 - Reconciliation of financial statements to Form 5500 

$ 53,461 

17 995 

$-==== 7==1==4===5=6 

For financial statement purposes, investment expenses are reported as a reduction of investment 

income. The reporting requirements of the Department of Labor require these fees be shown as 

administrative expenses. 

14 
CK593

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 13 - Reconciliation of financial statements to Form 5500 (cont'd) 

The following is a reconciliation of the reclassifications: 

Per Financial 

Statements Reclassification Per Form 5500 

Investment income (loss) $ 11 ,855,863 $ 385,293 $ 12,241,156 

Contributions 18,288,847 18,288,847 

Total additions 30,144,710 385,293 30,530,003 

Benefits paid directly to participants or 

beneficiaries 27,611,270 27,611,270 

Administrative expenses 2,260,251 385,293 2,645,544 

Total deductions 29,871,521 385,293 30,256,814 

Net increase (decrease) $ 273 189 $ $ 273.189 

In addition to the above reclassifications, the Plan's investments have been reclassified for Form 5500 

purposes in accordance with the Department of Labor's plan asset regulations. See the Schedule 

Reconciling the Statement of Net Assets Available for Benefits to Form 5500 on page 33. 

Note 14 - Accumulated plan benefits 

The latest available calculations of the actuarial present value of accumulated plan benefits were made 

by consulting actuaries as of September 1, 2017 and 2016. Details of accumulated plan benefit 

information as of such dates are as follows: 

Actuarial present value of accumulated plan 

benefits: 

Vested benefits: 

Participants currently receiving benefit payments 

Other vested participants 

Total vested benefits 

Nonvested benefits 

Total actuarial present value of accumulated plan 

benefits 

September 1 , 

2017 

September 1 , 

2016 

$ 218,616,602 $ 213,992,714 

127,587,346 116,768,019 

346,203,948 

524 184 

330,760,733 

275 281 

$ 346,728,132 $ 331,036,014 

15 
CK594

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 14 - Accumulated plan benefits (cont'd) 

The changes in the actuarial present value of accumulated plan benefits from the previous benefit 

information date were as follows: 

Actuarial present value of accumulated plan 

benefits - Beginning of year 

Increase (decrease) during the year attributable to: 

Benefits accumulated and actuarial gains or losses 

Interest due to the decrease in the discount period 

Benefits paid 

Change of assumptions 

Net increase (decrease) in actuarial present value of 

accumulated plan benefits 

Actuarial present value of accumulated plan 

benefits - End of year 

$ 

$ 

September 1, 

2017 

331,036,014 

5,416,378 

23,702,027 

(27,708,903) 

14,282,616 

15,692,118 

346,728.132 

September 1, 

2016 

$ 312,026,509 

3,875,849 

22,258,254 

(28,153,461) 

21,028,863 

19,009,505 

$ 331,036,014 

Through September 1, 2017, the Plan met minimum funding standard requirements under ERISA. 

The significant methods and assumptions underlying the actuarial computations are as follows: 

Actuarial cost method 

Assumed rate of return on investments 

Mortality rate 

Normal retirement 

Entry Age Normal 

7.00% 

1.35 times the RP-2016 Blue Collar Healthy 

Annuitant Mortality Table 

65 

As of September 1, 2017 the actuary has certified that the Plan is in the critical and declining status as 

identified under the Pension Protection Act of 2006. 

16 
CK595

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 15 - Rehabilitation Plan 

On November 29, 2010, the Plan was certified by its actuaries to be in Critical Status under the Pension 

Protection Act of 2006 (the "PPA") for the plan year beginning September 1, 2010. The Board of 

Trustees determined that based on reasonable actuarial assumptions, and upon exhaustion of all 

reasonable measures, the Plan could not be reasonably expected to emerge from Critical Status within 

the time frame prescribed by law. Therefore, the Trustees adopted reasonable measures in their 

Rehabilitation Plan to forestall insolvency and/or emerge from Critical Status over a projected period of 

time. 

Some of the reasonable measures adopted were as follows: 

Contribution rates were increased by $.45 per hour per year for any collective bargaining agreement 

("CBA") that became effective after September 1, 2011 and increased by $.39 per hour per year for any 

CBA that becomes effective on or after June 1, 2018. The increases are considered supplemental and 

may not cause any increases in future service accruals in some cases. In addition, the rate may be 

evaluated and adjusted annually based on financial conditions of contributing employers and actual Plan 

experience. 

Contributing employers became obligated to pay a 5% contribution surcharge to the Plan for work 

performed on or after January 26, 2011. The 5% surcharge increased to 10% beginning with 

contributions received on or after September 1, 2011 and will continue until the earlier of (1) the date the 

Plan emerges from critical status; (2) the effective date of a CBA that is in compliance with this 

Rehabilitation Plan; or (3) the date contribution increases become effective with respect to an employer 

because the bargaining parties fail to adopt a CBA in compliance with the Rehabilitation Plan within the 

time period required by ERISA. The surcharges will continue until the CBA is signed and the required 

increase in contributions will be retroactive to the date the CSA is effective. 

The active participant benefit accrual rate after February 1, 2012, will be the lesser of 1 % of the product 

of (a) the number of hours for which contributions are due in a Plan Credit Year or (b) the contribution 

rate in effect for his employer prior to its first contribution increase on or after September 1, 2011, or, the 

accrual rate as of September 1, 2011. In addition, the following benefits will be eliminated: subsidies 

previously afforded to early retirement pensions, all Service Pensions, the 60-month guarantee, the 

Disability Pension for those with an annuity starting date after August 31, 2011, the Death Benefit 

provided and the Social Security Level Income Option of the Plan. In addition, all future contribution 

increases after September 1, 2011 will not be used towards the calculation of future benefit accruals. 

The benefits of retired participants whose annuity started before September 1, 2011 will not be 

eliminated or reduced. Non-active participants, who have terminated or will terminate covered service or 

whose annuity starting date is on or after September 1, 2011, will have their benefits reduced by factors 

detailed in the Rehabilitation Plan. 

17 
CK596

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

NOTES TO FINANCIAL STATEMENTS 

YEARS ENDED AUGUST 31, 2018 AND 2017 

Note 15 - Rehabilitation Plan (cont'd) 

The original Rehabilitation Period was 24 years beginning September 1, 2013 and ending August 31, 

2037. Section 432(e)(3)(B) requires that the Trustees annually update the Rehabilitation Plan and 

Schedules. Based on the results and assumptions used in the valuation, projections show that the Plan 

is not expected to emerge from critical status within the Rehabilitation period. Therefore, the Plan's new 

Rehabilitation period is September 1, 2013 through August 31, 2048. The annual standards detailed in 

the Rehabilitation Plan were projected to be met for the next several years. The Board of Trustees will 

review and update the Rehabilitation Plan annually and will continue to consider all available options 

including, but not limited to, reducing Plan expenses, taking advantage of any changes in the law, or 

exploring a merger with another plan. 

Note 16 - Multiemployer Pension Reform Act 

On June 29, 2018, the Board of Trustees submitted an application to the US Treasury Department for 

approval to reduce benefits under the Plan as allowed by the Multiemployer Pension Reform Act of 2014 

"MPRA". The Plan has requested a 39.5% benefit reduction for retirees under age 80 currently in pay 

status, new retirees entering pay status after May 1, 2019 and a partial reduction for those between the 

ages of 75 and 80, as allowed by law. In February 2019, the Plan withdrew its application and is 

planning on preparing a new submission. 

Note 17 - Tax status 

The Plan has received a determination letter from the IRS dated January 29, 2016, stating that the Plan 

is qualified under Section 401 (a) and is exempt from federal income taxes under Section 501 (a) of the 

Internal Revenue Code. The Trustees believe that the Plan, including amendments subsequent to the 

IRS determination, is currently designed and operated in compliance with the requirements of the 

Internal Revenue Code. Therefore, they believe that the Plan was qualified and the related trust was tax 

exempt as of the financial statement date. 

18 
CK597

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF INTEREST BEARING CASH 

AUGUST 31 , 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41 - ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) (b) (c) - DESCRIPTION (d) (e) 

INTEREST BEARING CASH 

INTEREST MATURITY CURRENT 

ISSUER RATE DATE COST VALUE . MORGAN STANLEY BANK N.A. VARIABLE ON DEMAND $ 3,249,095 $ 3,249,095 . WCM FOCUSED INTERNATIONAL GROWTH FUND LP. VARIABLE ON DEMAND 797,088 797,088 

$ 4,046,183 $ 4,0461183 

* PARTY-IN-INTEREST 

HOLDINGS OF CERTAIN INVESTMENTS WERE DETERMINED TO BE PLAN ASSETS FOR FORM 5500 PURPOSES AND ARE 

SEPARATELY IDENTIFIED HERE BASED ON THE ALLOCATION OF UNDERLYING ASSETS PROVIDED BY THE INVESTMENT 

MANAGER, AS OF THE DATE OF THEIR LATEST AUDITED FINANCIAL STATEMENTS. 

19 
CK598

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF U.S. GOVERNMENT SECURITIES 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 4I-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION 

U.S. GOVERNMENT SECURITIES 

(d) (e) 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

UNITED STATES TREASURY NOTE FLOATING RATE 2.23% 01/31/2019 $ 113,000 $ 113,284 $ 113,086 

UNITED STATES TREASURY NOTE 1.63% 12/31/2019 1,500,000 1,516,758 1,481,775 

UNITED STATES TREASURY NOTE FLOATING RATE 2.09% 01/31/2020 390,000 389,968 389,942 

UNITED STATES TREASURY NOTE 1.50% 05/15/2020 250,000 250,371 245,400 

UNITED STATES TREASURY NOTE 2.50% 05/31/2020 315,000 314,606 314,348 

UNITED STATES TREASURY NOTE 2.63% 07/31/2020 1,000,000 1,000,508 999,840 

UNITED STATES TREASURY NOTE 1.63% 07/31/2020 250,000 251,621 245,343 

FEDERAL NATIONAL MTG ASSN POOL 745525 5.50% 05/01/2021 1,250,000 21,924 20,746 UNITED STATES TREASURY NOTE 2.63% 06/15/2021 1,788,000 1,785,765 1,784,996 

UNITED STATES TREASURY NOTE 2.13% 12/31/2022 300,000 303,516 292,512 

UNITED STATES TREASURY NOTE 2.75% 05/31/2023 1,043,000 1,041,052 1,043,688 

FNMA REMIC TRUST 2010-42 AC 4.00% 10/25/2024 1,100,000 10,762 10,399 

UNITED STATES TREASURY NOTE 2.88% 05/31/2025 1,235,000 1,234,615 1,240,360 GOVERNMENT NATIONAL MTG ASSN POOL 004787 4.50% 09/20/2025 1,000,000 133,317 127,967 

UNITED STATES TREASURY NOTE-INFLATION 

INDEXED 0.38% 07/15/2027 403,000 397,278 402,191 

UNITED STATES TREASURY NOTE 2.75% 02/15/2028 1,250,000 1,239,991 1,238,825 

FEDERAL NATIONAL MTG ASSN POOL AR8266 2.00% 04/01/2028 700,000 212,914 202,137 

UNITED STATES TREASURY NOTE 2.88% 05/15/2028 379,000 376,833 379,443 

UNITED STATES TREASURY NOTE 2.88% 08/15/2028 470,000 471,682 470,898 

UNITED STATES TREASURY NOTE 2.88% 08/15/2028 661,000 657,566 662,263 

FEDERAL NATIONAL MTG ASSN POOL MA1138 3.50% 07/01/2032 31,000 12,929 12,174 

FEDERAL NATIONAL MTG ASSN POOL MA1652 3.50% 11/01/2033 200,000 99,712 96,501 

FEDERAL NATIONAL MTG ASSN POOL 759098 5.50% 01/01/2034 3,000,000 264,122 261,295 FHLMC 20 YR GOLD C91816 3.50% 03/01/2035 112,000 70,863 67,921 

FHLMC 20 YR GOLD C91820 3.50% 03/01/2035 89,000 55,133 52,954 

FHLMC 20 YR GOLD C91844 3.50% 09/01/2035 229,000 150,103 143,338 

FEDERAL NATIONAL MTG ASSN POOL AS6709 3.50% 02/01/2036 118,000 80,185 76,297 

FHLMC 20 YR GOLD C91925 3.50% 03/01/2037 253,000 228,239 221,955 

FEDERAL NATIONAL MTG ASSN POOL BJ3807 3.50% 01/01/2038 57,000 56,591 55,291 FHLMC 20 YR GOLD C91993 3.50% 05/01/2038 36,000 35,398 35,346 UNITED STATES TREASURY BOND 3.50% 02/15/2039 100,000 107,594 108,539 

FEDERAL NATIONAL MTG ASSN POOL MA0185 5.50% 08/01/2039 1,000,000 61,912 61 ,969 

FEDERAL NATIONAL MTG ASSN POOL MA0190 5.00% 09/01/2039 2,000,000 30,994 30,243 GOVERNMENT NATIONAL MTG ASSN POOL 737635 5.00% 08/20/2040 1,550,000 407,702 402,200 

GOVERNMENT NATIONAL MTG ASSN POOL 760306 4.00% 09/20/2041 150,000 34,605 33,927 

GNMA REMIC TRUST 2014-54 A 2.50% 10/16/2041 100,000 6,192 6,090 

FEDERAL NATIONAL MTG ASSN POOL AX5312 4.00% 01/01/2042 43,000 25,113 24,036 

FEDERAL NATIONAL MTG ASSN POOL MA0969 3.50% 01/01/2042 750,000 155,884 150,793 GOVERNMENT NATIONAL MTG ASSN POOL 774435 3.50% 07/20/2042 600,000 310,523 306,054 

GOVERNMENT NATIONAL MTG ASSN POOL 774439 3.50% 07/20/2042 400,000 275,948 271,977 FHLMC 30 YR GOLD T65091 3.00% 08/01/2042 800,000 335,209 332,974 FHLMC 30 YR GOLD U91884 3.00% 08/01/2043 1,056,547 463,977 441 ,143 

FEDERAL NATIONAL MTG ASSN POOL AU5874 4.00% 09/01/2043 139,000 77,267 75,526 FHLMC 30 YR GOLD G08567 4.00% 01/01 /2044 578,248 227,599 222,357 

FHLMC 30 YR GOLD Q26076 4.00% 05/01 /2044 152,489 91,156 89,007 FHLMC 30 YR GOLD Q26215 4.00% 05/01/2044 277,064 108,597 106,031 

FEDERAL NATIONAL MORTGAGE ASSOC RELOCATION 

LOAN BC5090 4.00% 10/01/2044 99,000 54,384 51,860 FHLMC 30 YR GOLD G08623 3.50% 01 /01/2045 4,232,934 2,350,130 2,232,160 

FHLMC 30 YR GOLD Q33134 3.50% 04/01/2045 2,000,000 1,102,789 1,049,111 FHLMC 30 YR GOLD V82155 4.00% 12/01/2045 543,000 382,144 364,280 FHLMC 30 YR GOLD G08693 3.50% 02/01 /2046 1,144,064 815,640 774,755 

FEDERAL NATIONAL MTG ASSN POOL AS7568 4.50% 07/01/2046 132,000 84,706 80,692 

20 
CK599

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF U.S. GOVERNMENT SECURITIES 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) • DESCRIPTION (d) (e) 

U.S. GOVERNMENT SECURITIES 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

FHLMC 30 YR GOLD G08720 4.50% 08/01/2046 49,000 35,235 34,232 

FHLMC 30 YR GOLD G60703 4.00% 09/01/2046 250,000 212,319 201,588 

FEDERAL NATIONAL MTG ASSN POOL AS8142 4.00% 10/01/2046 221,000 187,153 177,571 

FEDERAL NATIONAL MTG ASSN POOL AS8157 4.50% 10/01/2046 273,000 203,579 191,765 

FHLMC 15 YR GOLD Q46279 3.50% 02/01/2047 605,000 561,344 539,946 

FHLMC 30 YR GOLD G60857 4.00% 02/01/2047 198,000 163,563 158,412 

FHLMC 30 YR GOLD G08764 4.50% 05/01/2047 560,000 467,557 450,404 

FEDERAL NATIONAL MTG ASSN POOL BE3702 4.00% 06/01/2047 94,000 86,493 84,995 

FHLMC 30 YR GOLD Q49553 4.00% 07/01/2047 91,000 86,985 84,033 

FHLMC 30 YR GOLD Q50883 4.50% 09/01/2047 112,000 107,610 105,156 

FHLMC 30 YR GOLD Q51334 4.00% 10/01/2047 352,000 338,641 332,107 

FEDERAL NATIONAL MTG ASSN POOL CA1218 4.50% 02/01/2048 72,000 71,803 71,344 

FEDERAL NATIONAL MTG ASSN POOL CA1378 4.00% 03/01/2048 165,000 165,240 164,288 

FEDERAL NATIONAL MTG ASSN POOL BJ9176 4.00% 05/01/2048 63,000 63,115 63,253 

FEDERAL NATIONAL MTG ASSN POOL CA1711 4.50% 05/01/2048 627,000 643,103 643,039 

UNITED STATES TREASURY BOND 3.13% 05/15/2048 690,000 709,377 706,037 

$ 41,791iJ46 $ 241

390i788 $ 2319131125 

21 
CK600

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORA TE DEBT INSTRUMENTS - PREFERRED 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) 

ISSUER 

TOYOTA MOTOR CREDIT CORP 

SIMON PROPERTY GROUP LP 

INTERNATIONAL BUSINESS MACHINES CORP 

CISCO SYSTEMS INC 

AETNA INC 

ELI LILLY & CO 

ROYAL BANK OF CANADA 

GILEAD SCIENCES INC 

BERKSHIRE HATHAWAY INC 

PRUDENTIAL FINANCIAL INC 

HOME DEPOT INC/THE 

WALT DISNEY CO/THE 

BANK OF MONTREAL 

JOHN DEERE CAPITAL CORP 

HERSHEY CO/THE 

AFIN 2016-2 C 

CARMX 2016-3 B 

MANUFACTURERS & TRADERS TRUST CO 

AMCAR 2016-4 C 

AMCAR 2017-1 C 

HYUNDAI AUTO RECVTR 2016-B C 

SDART 2017-3 C 

FORDO 16-C-C 

AMOT 2018-2 A 

BANK OF NY MELLON CORP 

SSM HEALTH CARE CORP 

CITIBANK CCIT 2014-A5 A5 

CAB MT 2015-2 A 1 

AMCAR 2018-1 C 

APPLE INC 

SYNCT 2018-1 B 

BURLINGTON NORTHERN SANTA FE LLC 

CAMERON INTERNATIONAL CORP 

WOART 2018-B A4 

WFNMT 2017-C M 

TRI-STATE GENERATION & TRANSMISSION 

ASSOCIATION INC 

WFNMT 2016-A M 

PNC BANK NA 

DISCOVER CARD EXECUTION NOTE TRUST 

SYNCT 2017-2 A 

US AIRWAYS 2013-1 CLASS A PASSTHROUGH TRUST 

BANK OF NEW YORK MELLON CORP/THE 

NSTAR ELECTRIC CO 

NOVARTIS CAPITAL CORP 

UNITED AIRLINES 2014-1 CLASS APASS THROUGH 

TRUST 

AMERICAN AIRLINES 2016-2 CLASSAA PASS THROUGH 

TRU 

SPIRIT AIRLINES PASS THROUGH TRUST 2017-1AA 

SBA 100098 

SBA100100 

(c) - DESCRIPTION 

CORPORATE DEBT INSTRUMENTS -

PREFERRED 

INTEREST 

RATE 

2.1 0% 

2.20% 

1.95% 

2.13% 

2.20% 

1.95% 

2.15% 

2.05% 

2.10% 

2.35% 

1.80% 

1.80% 

2.10% 

1.95% 

4.13% 

2.42% 

1.90% 

2.50% 

2.41 % 

2.71% 

2.19% 

2.93% 

1.93% 

3.24% 

2.66% 

3.69% 

2.68% 

2.25% 

3.50% 

3.00% 

3.17% 

3.75% 

3.70% 

3.20% 

2.66% 

3.70% 

2.33% 

3.25% 

3.03% 

2.62% 

3.95% 

2.80% 

3.20% 

3.10% 

4.00% 

3.20% 

3.38% 

3.33% 

3.68% 

MATURITY 

DATE 

01/17/2019 

02/01/2019 

02/12/2019 

03/01/2019 

03/15/2019 

03/15/2019 

03/15/2019 

04/01/2019 

08/14/2019 

08/15/2019 

06/05/2020 

06/05/2020 

06/15/2020 

06/22/2020 

12/01/2020 

06/20/2021 

04/15/2022 

05/18/2022 

07/08/2022 

08/18/2022 

11/15/2022 

12/15/2022 

04/15/2023 

05/15/2023 

05/16/2023 

06/01/2023 

06/07/2023 

07/17/2023 

01/18/2024 

02/09/2024 

03/15/2024 

04/01/2024 

06/15/2024 

06/17/2024 

08/15/2024 

11/01/2024 

04/15/2025 

06/01/2025 

08/15/2025 

10/15/2025 

11/15/2025 

05/04/2026 

05/15/2027 

05/17/2027 

10/11/2027 

12/15/2029 

08/15/2031 

03/25/2038 

06/25/2038 

PAR OR 

MATURITY 

VALUE 

$ 100,000 $ 

75,000 

100,000 

100,000 

70,000 

100,000 

70,000 

70,000 

100,000 

100,000 

250,000 

250,000 

500,000 

250,000 

250,000 

107,000 

186,000 

250,000 

100,000 

71,000 

219,000 

216,000 

229,000 

164,000 

80,000 

100,000 

400,000 

312,000 

57,000 

55,000 

78,000 

70,000 

100,000 

179,000 

60,000 

80,000 

84,000 

260,000 

199,000 

202,000 

109,000 

425,000 

46,000 

250,000 

80,000 

250,000 

45,000 

500,000 

500,000 

(d) 

COST 

99,915 $ 

74,858 

99,758 

99,929 

69,930 

99,827 

69,973 

69,879 

99,991 

99,920 

249,855 

249,710 

499,955 

249,848 

268,670 

107,150 

180,936 

249,650 

99,106 

70,985 

214,660 

215,982 

227,199 

163,999 

80,000 

100,000 

398,062 

306,973 

56,998 

54,976 

77,998 

69,771 

99,769 

178,995 

58,976 

80,176 

83,986 

267,127 

197,383 

203,199 

84,114 

423,491 

45,965 

247,773 

66,633 

230,500 

44,154 

132,974 

225,623 

(e) 

CURRENT 

VALUE 

99,850 

74,921 

99,776 

99,873 

69,867 

99,736 

69,878 

69,780 

99,582 

99,636 

245,900 

244,990 

492,395 

246,040 

257,543 

106,127 

181,032 

242,580 

98,381 

70,200 

214,585 

213,363 

224,200 

164,594 

77,861 

100,556 

396,384 

308,456 

57,054 

54,397 

77,696 

71,112 

97,261 

178,375 

59,089 

79,022 

80,900 

254,886 

197,929 

196,809 

80,945 

403,555 

44,596 

241,410 

67,328 

219,832 

42,847 

131,007 

218,040 

22 
CK601

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS - PREFERRED 

AUGUST 31 , 2018 

EIN 51-609911 1, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) 

ISSUER 

TRI-STATE GENERATION & TRANSMISSION 

ASSOCIATION INC 

MSBAM2012-C6AS 

CITIGRP COML MTG TR 201 3-GCJ11B 

SOUTHERN CALIFORNIA EDISON CO 

CGCMT 2015-GC29 A4 

CITY OF HOPE 

SCRT 2017-2 MA 

(c) - DESCRIPTION 

CORPORA TE DEBT INSTRUMENTS -

PREFERRED 

PAR OR 

INTEREST MATURITY MATURITY 

RATE DATE VALUE 

4.70% 11/01 /2044 95,000 

3.48% 11/17/2045 115,000 

3.73% 04/10/2046 81,000 

4.13% 03/01/2048 110,000 

3.19% 04/1012048 97,000 

4.38% 08/1512048 45,000 

3.00% 08/25/2056 205,000 

$ 9.196,000 

(d) (e) 

CURRENT 

COST VALUE 

97,878 96,810 

121,949 114,893 

80,595 79,852 

107,165 107,263 

95,193 95,099 

45,000 45,427 

194.853 185.908 

$ 8.489.934 $ 813471428 

23 
CK602

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS - OTHER 

AUGUST 31 , 2018 

EIN 51-6099111 , PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION 

CORPORATE DEBT INSTRUMENTS - OTHER 

(d) (e) 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

RALPH LAUREN CORP 2.13% 09/2612018 $ 200,000 $ 203,102 $ 199,960 

BANK OF AMERICA CORP 2.60% 01/15/2019 100,000 100,279 100,011 

GOLDMAN SACHS GROUP INC/THE 7.50% 02/15/2019 250,000 274,698 255,300 

XILINX INC 2.13% 03/15/2019 70,000 69,634 69,810 

AMERICAN EXPRESS CREDIT CORP 2.13% 03/18/2019 80,000 79,849 79,838 

SUNTRUST BANKS INC 2.50% 05/0112019 100,000 99,911 99,959 

BP CAPITAL MARKETS PLC 2.24% 05/10/2019 75,000 75,000 74,790 

CVS HEAL TH CORP 2.25% 08/12/2019 100,000 99,944 99,478 

NEXTERA ENERGY CAPITAL HOLDINGS INC 2.40% 09/15/2019 100,000 99,825 99,516 

CONSOLIDATED EDISON INC 2.00% 03/15/2020 250,000 249,918 246,050 

DOMINION ENERGY INC 2.58% 07/01/2020 75,000 75,077 73,979 

SANTANDER UK GROUP HOLDINGS PLC 3.13% 01/08/2021 70,000 69,989 69,173 

REGIONS FINANCIAL CORP 3.20% 02/08/2021 200,000 199,790 199,258 

AMERICAN EXPRESS CREDIT CORP 2.25% 05/05/2021 300,000 299,817 292,920 

WEC ENERGY GROUP INC 3.38% 06/15/2021 50,000 49,980 50,198 

DISCOVER BANK 3.20% 08/09/2021 100,000 99,732 99,084 

KROGER CO/THE 2.95% 11/01/2021 100,000 99,968 98,716 

AIR CASTLE LTD 5.50% 02/15/2022 95,000 98,413 99,288 

ALABAMA POWER CO 2.45% 03/30/2022 250,000 249,795 243,068 

QUALCOMM INC 3.00% 05/20/2022 500,000 499,810 494,005 

CHARTER COMMUNICATIONS OPER 4.46% 07/23/2022 145,000 145,000 147,955 

INTERNATIONAL LEASE FINANCE CORP 5.88% 08/15/2022 100,000 113,750 106,519 

ALABAMA POWER CO 5.88% 12/01/2022 200,000 245,700 217,562 

WELLS FARGO & CO 3.07% 01/24/2023 95,000 95,064 92,976 

MARVELL TECHNOLOGY GROUP LTD 4.20% 06/22/2023 50,000 49,898 49,928 

EQT MIDSTREAM PARTNERS LP 4.75% 0711512023 100,000 99,761 101,457 

CNH INDUSTRIAL NV 4.50% 08/15/2023 90,000 91 ,941 91,112 

FEDEX CORP 4.00% 01/15/2024 75,000 74,871 76,822 

AMERICAN TOWER CORP 5.00% 02/15/2024 95,000 106,954 99,782 

BANK OF AMERICA CORP 3.11% 03/05/2024 95,000 94,904 94,661 

KINROSS GOLD CORP 5.95% 03/15/2024 70,000 73,063 71,925 

JUNIPER NETWORKS INC 4.50% 03/15/2024 75,000 74,885 76,641 

HOSPITALITY PROPERTIES TRUST 4.65% 03/15/2024 70,000 69,778 70,071 

JPMORGAN CHASE & CO 3.56% 04/23/2024 105,000 104,255 104,614 

CELGENE CORP 3.63% 05/15/2024 100,000 99,659 98,838 

AT&T INC 3.49% 06/12/2024 125,000 125,000 125,199 

JPMORGAN CHASE & CO 3.80% 07/23/2024 155,000 155,000 155,473 

PACIFIC GAS & ELECTRIC CO 3.40% 08/15/2024 100,000 99,925 95,915 

CBS CORP 3.70% 08/15/2024 100,000 99,760 97,428 

CROWN CASTLE INTERNATIONAL CORP 3.20% 09/01/2024 60,000 57,343 57,320 

TRINITY INDUSTRIES INC 4.55% 10101/2024 100,000 99,974 96,978 

ANDEAVOR LOGISTICS LP I TESOROLOGISTICS 

FINANCE CORP 5.25% 01/15/2025 50,000 52,1 25 51 ,188 

UNION PACIFIC CORP 3.25% 01/1512025 100,000 99,669 97,786 

COMCAST CORP 3.38% 02/15/2025 100,000 99,912 97,525 

REAL TY INCOME CORP 3.88% 04/15/2025 70,000 69,650 69,980 

HAWAIIAN AIRLINES 2013-1 CLASSA PASS 

THROUGH CERTIFICATES 3.90% 01/15/2026 125,000 94,319 92,469 

CITIGROUP INC 3.40% 05/01 /2026 250,000 249,495 239,398 

EAGLE MATERIALS INC 4.50% 08/01/2026 95,000 99,201 95,161 

CITIGROUP INC 3.20% 10/21 /2026 250,000 249,853 234,703 

WELLS FARGO & CO 3.00% 10/23/2026 250,000 249,423 233,730 

BUCKEYE PARTNERS LP 3.95% 12/01/2026 120,000 109,823 110,453 

HEXCEL CORP 3.95% 02/1512027 240,000 238,942 235,795 

24 
CK603

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS-OTHER 

AUGUST 31 , 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION 

CORPORATE DEBT INSTRUMENTS - OTHER 

(d) (e) 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

PHYSICIANS REAL TY LP 4.30% 03/15/2027 100,000 98,956 97,614 

MERCURY GENERAL CORP 4.40% 03/15/2027 55,000 54,916 53,610 

RPM INTERNATIONAL INC 3.75% 03/15/2027 110,000 109,844 105,312 

DOLLAR GENERAL CORP 3.88% 04/15/2027 250,000 249,815 245,665 

BRIGHTHOUSE FINANCIAL INC 3.70% 06/22/2027 60,000 53,893 53,611 

EQT CORP 3.90% 10/01/2027 55,000 53,685 51,769 

HUDSON PACIFIC PROPERTIES LP 3.95% 11/01/2027 90,000 89,863 85,054 

CITIGROUP INC 3.89% 01/10/2028 105,000 106,172 102,341 

LINCOLN NATIONAL CORP 3.80% 03/01/2028 90,000 89,790 87,474 

STORE CAPITAL CORP 4.50% 03/15/2028 95,000 94,539 93,527 

ENABLE MIDSTREAM PARTNERS LP 4.95% 05/15/2028 55,000 54,558 54,650 

VODAFONE GROUP PLC 4.38% 05/30/2028 90,000 88,831 89,495 

MORGAN STANLEY 3.59% 07/22/2028 55,000 55,000 52,409 

FORD MOTOR CO 6.38% 02101/2029 250,000 285,515 260,250 

GOLDMAN SACHS GROUP INC 3.81% 04/23/2029 105,000 105,000 100,449 

HESS CORP 7.88% 10/01/2029 30,000 36,839 36,558 

TORONTO-DOMINION BANK 3.63% 09/15/2031 55,000 54,857 52,193 

BANK OF MONTREAL 3.80% 12/15/2032 60,000 60,000 56,394 

HESS CORP 7.13% 03/15/2033 100,000 117,586 116,630 

PLAINS ALL AMERICAN PIPELINE LP/ PAA 

FINANCE CORP 6.65% 01/15/2037 90,000 103,018 100,930 

DISCOVERY COMMUNICATIONS LLC 5.00% 09/2012037 50,000 48,845 48,752 

CVS HEAL TH CORP 4.78% 03/25/2038 60,000 59,167 59,796 

ENBRIDGE ENERGY PARTNERS LP 7.50% 04/15/2038 40,000 49,196 51,190 

ENERGY TRANSFER PARTNERS LP 5.80% 06/15/2038 70,000 69,012 72,503 

TIME WARNER INC 4.90% 06/15/2042 60,000 60,755 56,188 

MOTOROLA SOLUTIONS INC 5.50% 09/01/2044 130,000 130,801 123,295 

ALBEMARLE CORP 5.45% 12/01/2044 45,000 48,201 47,533 

SYSCO CORP 4.50% 04/01/2046 80,000 80,091 79,928 

GSMS 2014-GC24 C 4.53% 09/10/2047 110,000 110,088 108,352 

PPL CAPITAL FUNDING INC 4.00% 09/15/2047 120,000 118,546 110,422 

WESTLAKE CHEMICAL CORP 4.38% 11/15/2047 60,000 59,387 54,923 

RABOBANK NEDERLAND 11.00% 08/31/2058 85,000 114,410 90,372 

ENBRIDGE INC 6.25% 03/01/2078 50,000 50,000 48,564 

$ 916801000 $ 91844,604 $ 9,579,518 

25 
CK604

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE STOCK - PREFERRED 

AUGUST 31 , 2018 

EIN 51 -6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(c) -

(b) DESCRIPTION (d) (e) 

PREFERRED 

STOCK 

NO. OF CURRENT 

ISSUER SHARES COST VALUE 

COBANK ACB 6.25% SER F 1,000 $ 106.450 $ 104,300 

$ 106 450 $ 104,300 

26 
CK605

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE STOCK - COMMON 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) (b) 

(c) -

DESCRIPTION (d) (e) 

COMMON 

STOCK 

NO. OF CURRENT 

ISSUER SHARES COST VALUE 

3M COMPANY 2,280 $ 317,504 $ 480,898 

ABBOTT LABORATORIES 7,430 320,500 496,621 

ABBVIE INC COM 6,270 360,711 601,795 

AIR PROD & CHEM INC 3,125 445,712 519,656 

ALTRIA GROUP INC 7,205 289,663 421,637 AMGEN INC 3,075 545,112 614,416 AUTOMATIC DATA PROCESSING INC 1,205 85,805 176,834 

BB & TCORP 14,890 574,467 769,217 

BLACKROCK INC 840 255,898 402,410 

BROADCOM INC 755 199,189 165,368 

CHEVRON CORP 2,355 273,766 278,973 

CISCO SYS INC 18,080 406,881 863,682 

CROWN CASTLE INTL CORP 4,615 388,864 526,248 

ELI LILLY & CO 930 98,068 98,255 EXXON MOBIL CORP 3,010 255,607 241,312 

HASBRO INC 1,845 100,512 183,227 HOME DEPOT INC 3,865 452,776 775,976 HONEYWELL INTERNATIONAL INC 4,190 535,699 666,461 

HP INC COM 6,980 158,247 172,057 

ILL TOOL WORKS INC 2,150 265,776 298,592 JOHNSON & JOHNSON 4,460 394,344 600,717 

JPMORGAN CHASE & CO 8,165 525,066 935,546 

LOCKHEED MARTIN CORP 1,835 264,627 587,952 LYONDELLBASELL NV CL-A 3,040 248,024 342,851 

MARSH & MCLENNAN COS INC 4,315 340,561 365,178 

MAXIM INTEGRATED PRODUCTS INC 3,435 106,459 207,714 MC CORMICK AND CO NON VOTING 1,340 130,979 167,339 

MC DONALDS CORP 3,042 488,174 493,504 MEDTRONIC PLC SHS 3,965 317,928 382,266 MICROSOFT CORP 8,190 308,846 919,983 NEXTERA ENERGY INC 4,560 426,318 775,656 PAYCHEX INC 7,265 330,158 532,161 PEPSICO INC NC 4,985 512,182 558,370 

PFIZER INC 10,960 360,664 455,059 

PHILLIPS 66 COM 1,990 215,467 235,835 

REAL TY INCOME CORP 3,435 205,329 201,188 

SEMPRA ENERGY 3,415 391 ,136 396,413 

SIMON PPTY GROUP INC 1,455 234,858 266,309 

STARBUCKS CORP WASHINGTON 6,655 342,663 355,710 

TEXAS INSTRUMENTS 7,065 486,827 794,107 

U S BANCORP COM NEW 4,455 230,785 241,060 VALERO ENERGY CP DELA NEW 2,505 160,135 295,289 VENTAS INC 1,630 88,508 97,588 . WCM FOCUSED INTERNATIONAL GROWTH FUND L.P. 5,305 9,286,003 13,118,266 

WEC ENERGY GROUP INC COM 6,335 297,257 428,119 

WILLIAMS CO INC 8,560 259,351 253,290 

$ 23,283,406 $ 32,761,105 

• PARTY-IN-INTEREST 

27 
CK606

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE STOCK- COMMON 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(c). 

(a) (b) DESCRIPTION (d) (e) 

COMMON 

STOCK 

NO. OF CURRENT 

ISSUER SHARES COST VALUE 

HOLDINGS OF CERTAIN INVESTMENTS WERE DETERMINED TO BE PLAN ASSETS FOR FORM 5500 PURPOSES AND ARE 

SEPARATELY IDENTIFIED HERE BASED ON THE ALLOCATION OF UNDERLYING ASSETS PROVIDED BY THE INVESTMENT 

MANAGER, AS OF THE DATE OF THEIR LATEST AUDITED FINANCIAL STATEMENTS. 

28 
CK607

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF REAL ESTATE 

AUGUST 31, 2018 

EIN 51-6099111 , PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) 

ISSUER 

INVESTMENT PROPERTY - LOT 19 32-43 49TH AVENUE LONG 

ISLAND CITY NY 

(c) - DESCRIPTION 

REAL ESTATE 

NO. OF SHARES 

(d) 

COST 

$ ___ _ 

1,025.665 

$=---1,025,665 

(e) 

CURRENT 

VALUE 

$ 1,485,000 

$ 1485000 

29 
CK608

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF COMMON/COLLECTIVE TRUST FUNDS 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41 -ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(c) -

(a) (b) DESCRIPTION (d) (e) 

COMMON 

TRUST FUNDS 

NO.OF CURRENT 

ISSUER SHARES COST VALUE + RUSSELL 2000 (R) INDX SL FUND 64,871 $ 2,645,602 $ 7,900,238 + RUSSELL 1000 (R) GROWTH INDX NL FUND 185,342 5,621 .290 19,196.749 

$ 812661892 $ 271096.987 

• PARTY-IN-INTEREST 

30 
CK609

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF POOLED SEPARATE ACCOUNTS 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(c) -

(a) (b) DESCRIPTION (d) (e) 

POOLED 

SEPARATE 

ACCOUNTS 

CURRENT 

ISSUER UNITS COST VALUE 

PRUDENTIAL PRISA 186 $ 11,015,591 $ 11,572,442 

$ 11,015,591 $ 11,572,442 

* PARTY-IN-INTEREST 

31 
CK610

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF REGISTERED INVESTMENT COMPANIES 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41- ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION (d) (e) 

REGISTERED INVESTMENT 

COMPANIES 

CURRENT 

ISSUER NO. OF SHARES COST VALUE 

LAZARD GLB LSTD INFR PTF INST 975,284 $ 13,570,119 $ 15,097,393 

$ 13,570,119 $ 1510971393 

32 
CK611

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE RECONCILING THE STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS TO 

FORM 5500 

AUGUST 31 , 2018 

Per Financial 

Statements Reclassification Per Form 5500 

Assets 

Investments 

Interest bearing cash $ 3,249,095 $ 797,088 $ 4,046,183 

U.S. government securities 23,913,125 23,913,125 

Corporate debt instruments 17,926,946 17,926,946 

Corporate stock 19,747,139 13, 11 8,266 32,865,405 

Partnership/joint venture interests 13,800,683 (13,800,683) 

Real estate 1,485,000 1,485,000 

Common/collective trust funds 27,096,987 27,096,987 

Pooled separate accounts 11 ,572,442 11 ,572,442 

Registered investment companies 15,097,393 15,097,393 

Receivables 21,109,558 204,015 21,313,573 

Cash 4,447,864 4,447,864 

Other assets 173 140 173 140 

Total assets 159,619,372 318 686 159,938,058 

Liabilities 

Operating payables 395,006 395,006 

Other liabilities 115,252 318 686 433,938 

Total liabilities 510 258 318,686 828 944 

Net assets available for benefits $ 159 109 114 $ $ 159 109 114 

The Plan's holdings in various investments were determined to be plan assets for Form 5500 purposes. 

This schedule reconciles audited financial statement amounts, plus the Plan's share of amounts provided 

by the investment managers to the Form 5500 Schedule H amounts. 

33 
CK612

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULES OF INVESTMENT EXPENSES 

YEARS ENDED AUGUST 31, 2018 AND 2017 

2018 

Building Appraisal Cost $ 3,500 

Bahl & Gaynor 65,157 

Bradford & Marzec 51,107 

Lynch, Jones, & Ryan and other commission rebates (8,869) 

Morgan Stanley Smith Barney 75,498 

Prudential Insurance 152,468 

State Street Global Advisors 23,017 

Weaver Barksdale 23,415 

Wedge Capital Management 

Total investment expenses $ 385,293 

2017 

$ 1,330 

61,487 

55,204 

(1,508) 

81,349 

155,855 

6,278 

24,119 

14 739 

$ 398,853 

34 
CK613

Payroll 

Payroll taxes 

Employee benefits 

Occupancy 

Office 

Printing 

Legal 

Accounting 

Payroll audits 

Actuarial consulting 

Consulting 

Computer 

Insurance 

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULES OF ADMINISTRATIVE EXPENSES 

YEARS ENDED AUGUST 31 , 2018 AND 2017 

2018 

$ 251 ,310 

19,256 

145,539 

60,798 

35,867 

13,598 

71 6,980 

55,175 

40,115 

672,226 

27,398 

33,920 

187,707 

Conferences and meetings 362 

Total administrative expenses $ 2,260,251 

2017 

$ 257,770 

18,784 

131,222 

60,613 

31 ,090 

13,306 

262,809 

49,375 

25,882 

233,669 

30,1 08 

15,136 

184,311 

345 

$ 1,314,420 

35 
CK614

(a) 

. 

. 

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF INTEREST BEARING CASH 

AUGUST 31 , 2018 

EIN 51-6099111 , PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41 -ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(b) 

ISSUER 

MORGAN STANLEY BANK N.A . 

WCM FOCUSED INTERNATIONAL GROWTH FUND L.P. 

(c ) - DESCRIPTION 

INTEREST BEARING CASH 

INTEREST MATURITY 

RATE DATE 

VARIABLE ON DEMAND 

VARIABLE ON DEMAND 

$ 

$ 

(d) (e) 

CURRENT 

COST VALUE 

3,249,095 $ 3,249,095 

797,088 797,088 

4,046,183 $ 410461183 

• PARTY-IN-INTEREST 

HOLDINGS OF CERTAIN INVESTMENTS WERE DETERMINED TO BE PLAN ASSETS FOR FORM 5500 PURPOSES AND ARE 

SEP ARA TEL Y IDENTIFIED HERE BASED ON THE ALLOCATION OF UNDERLYING ASSETS PROVIDED BY THE INVESTMENT 

MANAGER, AS OF THE DATE OF THEIR LATEST AUDITED FINANCIAL STATEMENTS. 

19 
CK615

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF U.S. GOVERNMENT SECURITIES 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) • DESCRIPTION (d) (e) 

U.S. GOVERNMENT SECURITIES 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

UNITED STATES TREASURY NOTE FLOATING RATE 2.23% 01/31/2019 $ 113,000 $ 113,284 $ 113,086 

UNITED STATES TREASURY NOTE 1.63% 12/31/2019 1,500,000 1,516,758 1,481,775 

UNITED STATES TREASURY NOTE FLOATING RATE 2.09% 01/31/2020 390,000 389,968 389,942 

UNITED STATES TREASURY NOTE 1.50% 05/15/2020 250,000 250,371 245,400 

UNITED STATES TREASURY NOTE 2.50% 05/31/2020 315,000 314,606 314,348 

UNITED STATES TREASURY NOTE 2.63% 07/3112020 1,000,000 1,000,508 999,840 

UNITED STATES TREASURY NOTE 1.63% 07/31/2020 250,000 251 ,621 245,343 

FEDERAL NATIONAL MTG ASSN POOL 745525 5.50% 05/01/2021 1,250,000 21,924 20,746 

UNITED STATES TREASURY NOTE 2.63% 06/15/2021 1,788,000 1,785,765 1,784,996 

UNITED STATES TREASURY NOTE 2.13% 12/31/2022 300,000 303,516 292,512 

UNITED STATES TREASURY NOTE 2.75% 05/31/2023 1,043,000 1,041 ,052 1,043,688 

FNMA REMIC TRUST 2010-42 AC 4.00% 10125/2024 1,100,000 10,762 10,399 

UNITED STATES TREASURY NOTE 2.88% 05/31/2025 1,235,000 1,234,615 1,240,360 

GOVERNMENT NATIONAL MTG ASSN POOL 004787 4.50% 09/20/2025 1,000,000 133,317 127,967 

UNITED STATES TREASURY NOTE-INFLATION 

INDEXED 0.38% 07/15/2027 403,000 397,278 402,191 

UNITED STATES TREASURY NOTE 2.75% 02/15/2028 1,250,000 1,239,991 1,238,825 

FEDERAL NATIONAL MTG ASSN POOL AR8266 2.00% 04/01 /2028 700,000 212,914 202,137 

UNITED STATES TREASURY NOTE 2.88% 05/15/2028 379,000 376,833 379,443 

UNITED STATES TREASURY NOTE 2.88% 08/15/2028 470,000 471 ,682 470,898 

UNITED STATES TREASURY NOTE 2.88% 08/15/2028 661,000 657,566 662,263 

FEDERAL NATIONAL MTG ASSN POOL MA1138 3.50% 07/01/2032 31,000 12,929 12,174 

FEDERAL NATIONAL MTG ASSN POOL MA1652 3.50% 11/01/2033 200,000 99,712 96,501 

FEDERAL NATIONAL MTG ASSN POOL 759098 5.50% 01/01/2034 3,000,000 264,122 261,295 

FHLMC 20 YR GOLD C91816 3.50% 03/01/2035 112,000 70,863 67,921 

FHLMC 20 YR GOLD C91820 3.50% 03/01/2035 89,000 55,133 52,954 

FHLMC 20 YR GOLD C91844 3.50% 09/01/2035 229,000 150,103 143,338 

FEDERAL NATIONAL MTG ASSN POOL AS6709 3.50% 02/01/2036 118,000 80,185 76,297 

FHLMC 20 YR GOLD C91925 3.50% 03/01/2037 253,000 228,239 221,955 

FEDERAL NATIONAL MTG ASSN POOL BJ3807 3.50% 01/01/2038 57,000 56,591 55,291 

FHLMC 20 YR GOLD C91993 3.50% 05/01/2038 36,000 35,398 35,346 

UNITED STATES TREASURY BONO 3.50% 02115/2039 100,000 107,594 108,539 

FEDERAL NATIONAL MTG ASSN POOL MA0185 5.50% 08/01/2039 1,000,000 61 ,912 61 ,969 

FEDERAL NATIONAL MTG ASSN POOL MA0190 5.00% 09/01/2039 2,000,000 30,994 30,243 

GOVERNMENT NATIONAL MTG ASSN POOL 737635 5.00% 08/20/2040 1,550,000 407,702 402,200 

GOVERNMENT NATIONAL MTG ASSN POOL 760306 4.00% 09/20/2041 150,000 34,605 33,927 

GNMA REMIC TRUST 2014-54 A 2.50% 10/16/2041 100,000 6,192 6,090 

FEDERAL NATIONAL MTG ASSN POOL AX5312 4.00% 01/01/2042 43,000 25,113 24,036 

FEDERAL NATIONAL MTG ASSN POOL MA0969 3.50% 01 /01/2042 750,000 155,884 150,793 

GOVERNMENT NATIONAL MTG ASSN POOL 774435 3.50% 07/20/2042 600,000 310,523 306,054 

GOVERNMENT NATIONAL MTG ASSN POOL 774439 3.50% 07/20/2042 400,000 275,948 271,977 

FHLMC 30 YR GOLD T65091 3.00% 08/01/2042 800,000 335,209 332,974 

FHLMC 30 YR GOLD U91884 3.00% 08/01/2043 1,056,547 463,977 441,143 

FEDERAL NATIONAL MTG ASSN POOL AU5874 4.00% 09/01/2043 139,000 77,267 75,526 

FHLMC 30 YR GOLD G08567 4.00% 01/01 /2044 578,248 227,599 222,357 

FHLMC 30 YR GOLD 026076 4.00% 05/01/2044 152,489 91,156 89,007 

FHLMC 30 YR GOLD 026215 4.00% 05/01/2044 277,064 108,597 106,031 

FEDERAL NATIONAL MORTGAGE ASSOC RELOCATION 

LOAN BC5090 4 .00% 10/01/2044 99,000 54,384 51,860 

FHLMC 30 YR GOLD G08623 3.50% 01/01/2045 4,232,934 2,350,130 2,232,1 60 

FHLMC 30 YR GOLD 033134 3.50% 04/01/2045 2,000,000 1,102,789 1,049,1 11 

FHLMC 30 YR GOLD V82155 4.00% 12101/2045 543,000 382,144 364,280 

FHLMC 30 YR GOLD G08693 3.50% 02101/2046 1,144,064 815,640 774,755 

FEDERAL NATIONAL MTG ASSN POOL AS7568 4.50% 07/01/2046 132,000 84,706 80,692 

20 
CK616

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF U.S. GOVERNMENT SECURITIES 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41 - ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION (d) (e) 

U.S. GOVERNMENT SECURITIES 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

FHLMC 30 YR GOLD G08720 4.50% 08/01/2046 49,000 35,235 34,232 

FHLMC 30 YR GOLD G60703 4.00% 09/01 /2046 250,000 212,319 201 ,588 

FEDERAL NATIONAL MTG ASSN POOL AS8142 4.00% 10/01/2046 221 ,000 187,153 177,571 

FEDERAL NATIONAL MTG ASSN POOL AS8157 4.50% 10/01/2046 273,000 203,579 191,765 

FHLMC 15 YR GOLD 046279 3.50% 02/01/2047 605,000 561,344 539,946 

FHLMC 30 YR GOLD G60857 4.00% 02/01/2047 198,000 163,563 158,412 

FHLMC 30 YR GOLD G08764 4.50% 05/01/2047 560,000 467,557 450,404 

FEDERAL NATIONAL MTG ASSN POOL BE3702 4.00% 06/01/2047 94,000 86,493 84,995 

FHLMC 30 YR GOLD 049553 4.00% 07/01/2047 91,000 86,985 84,033 

FHLMC 30 YR GOLD 050883 4.50% 09/01/2047 112,000 107,610 105,156 

FHLMC 30 YR GOLD 051334 4.00% 10/01/2047 352,000 338,641 332,107 

FEDERAL NATIONAL MTG ASSN POOL CA1218 4.50% 02/01/2048 72,000 71,803 71 ,344 

FEDERAL NATIONAL MTG ASSN POOL CA1378 4.00% 03/01/2048 165,000 165,240 164,288 

FEDERAL NATIONAL MTG ASSN POOL BJ9176 4.00% 05/01/2048 63,000 63,115 63,253 

FEDERAL NATIONAL MTG ASSN POOL CA1711 4.50% 05/01/2048 627,000 643,103 643,039 

UNITED STATES TREASURY BOND 3.13% 05/15/2048 690,000 709,377 706,037 

$ 41,791,346 $ 24,390i188 $ 2319131125 

21 
CK617

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS - PREFERRED 

AUGUST 31 , 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) 

ISSUER 

TOYOTA MOTOR CREDIT CORP 

SIMON PROPERTY GROUP LP 

INTERNATIONAL BUSINESS MACHINES CORP 

CISCO SYSTEMS INC 

AETNA INC 

ELI LILLY & CO 

ROYAL BANK OF CANADA 

GILEAD SCIENCES INC 

BERKSHIRE HATHAWAY INC 

PRUDENTIAL FINANCIAL INC 

HOME DEPOT INC/THE 

WALT DISNEY CO/THE 

BANK OF MONTREAL 

JOHN DEERE CAPITAL CORP 

HERSHEY CO/THE 

AFIN 2016-2 C 

CARMX 2016-3 B 

MANUFACTURERS & TRADERS TRUST CO 

AMCAR 2016-4 C 

AMCAR 2017-1 C 

HYUNDAI AUTO RECV TR 2016-B C 

SDART 2017-3 C 

FORDO 16-C-C 

AMOT 2018-2 A 

BANK OF NY MELLON CORP 

SSM HEAL TH CARE CORP 

CITIBANK CCIT 2014-A5 A5 

CABMT 2015-2 A1 

AMCAR 2018-1 C 

APPLE INC 

SYNCT 2018-1 B 

BURLINGTON NORTHERN SANTA FE LLC 

CAMERON INTERNATIONAL CORP 

WOART 2018-B A4 

WFNMT 2017-C M 

TRI-STATE GENERATION & TRANSMISSION 

ASSOCIATION INC 

WFNMT 2016-A M 

PNC BANK NA 

DISCOVER CARD EXECUTION NOTE TRUST 

SYNCT 2017-2 A 

US AIRWAYS 2013-1 CLASS A PASSTHROUGH TRUST 

BANK OF NEW YORK MELLON CORP/THE 

NSTAR ELECTRIC CO 

NOVARTIS CAPITAL CORP 

UNITED AIRLINES 2014-1 CLASS APASS THROUGH 

TRUST 

AMERICAN AIRLINES 2016-2 CLASSAA PASS THROUGH 

TRU 

SPIRIT AIRLINES PASS THROUGH TRUST 2017-1AA 

SBA 100098 

SBA100100 

(c) - DESCRIPTION 

CORPORATE DEBT INSTRUMENTS -

PREFERRED 

INTEREST 

RATE 

2.10% 

2.20% 

1.95% 

2.13% 

2.20% 

1.95% 

2.15% 

2.05% 

2.10% 

2.35% 

1.80% 

1.80% 

2.10% 

1.95% 

4.13% 

2.42% 

1.90% 

2.50% 

2.41 % 

2.71% 

2.19% 

2.93% 

1.93% 

3.24% 

2.66% 

3.69% 

2.68% 

2.25% 

3.50% 

3.00% 

3.17% 

3.75% 

3.70% 

3.20% 

2.66% 

3.70% 

2.33% 

3.25% 

3.03% 

2.62% 

3.95% 

2.80% 

3.20% 

3.10% 

4.00% 

3.20% 

3.38% 

3.33% 

3.68% 

MATURITY 

DATE 

01/17/2019 

02/01/2019 

02/12/2019 

03/01/2019 

03/15/2019 

03/15/2019 

03/15/2019 

04/01/2019 

08/14/2019 

08/15/2019 

06/05/2020 

06/05/2020 

06/15/2020 

06/22/2020 

12/01/2020 

06/20/2021 

04/15/2022 

05/18/2022 

07/08/2022 

08/18/2022 

11/15/2022 

12/15/2022 

04/15/2023 

05/15/2023 

05/16/2023 

06/01/2023 

06/07/2023 

07/17/2023 

01/18/2024 

02/09/2024 

03/15/2024 

04/01/2024 

06/15/2024 

06/17/2024 

08/15/2024 

11/01/2024 

04/15/2025 

06/01/2025 

08/15/2025 

10/15/2025 

11/15/2025 

05/04/2026 

05/15/2027 

05/17/2027 

10/11/2027 

12/15/2029 

08/15/2031 

03/25/2038 

06/25/2038 

PAR OR 

MATURITY 

VALUE 

$ 100,000 $ 

75,000 

100,000 

100,000 

70,000 

100,000 

70,000 

70,000 

100,000 

100,000 

250,000 

250,000 

500,000 

250,000 

250,000 

107,000 

186,000 

250,000 

100,000 

71,000 

219,000 

216,000 

229,000 

164,000 

80,000 

100,000 

400,000 

312,000 

57,000 

55,000 

78,000 

70,000 

100,000 

179,000 

60,0P0 

80,000 

84,000 

260,000 

199,000 

202,000 

109,000 

425,000 

46,000 

250,000 

80,000 

250,000 

45,000 

500,000 

500,000 

(d) 

COST 

99,915 $ 

74,858 

99,758 

99,929 

69,930 

99,827 

69,973 

69,879 

99,991 

99,920 

249,855 

249,710 

499,955 

249,848 

268,670 

107,150 

180,936 

249,650 

99,106 

70,985 

214,660 

215,982 

227,199 

163,999 

80,000 

100,000 

398,062 

306,973 

56,998 

54,976 

77,998 

69,771 

99,769 

178,995 

58,976 

80,176 

83,986 

267,127 

197,383 

203,199 

84,114 

423,491 

45,965 

247,773 

66,633 

230,500 

44,154 

132,974 

225,623 

(e) 

CURRENT 

VALUE 

99,850 

74,921 

99,776 

99,873 

69,867 

99,736 

69,878 

69,780 

99,582 

99,636 

245,900 

244,990 

492,395 

246,040 

257,543 

106,127 

181,032 

242,580 

98,381 

70,200 

214,585 

213,363 

224,200 

164,594 

77,861 

100,556 

396,384 

308,456 

57,054 

54,397 

77,696 

71 ,112 

97,261 

178,375 

59,089 

79,022 

80,900 

254,886 

197,929 

196,809 

80,945 

403,555 

44,596 

241,410 

67,328 

219,832 

42,847 

131,007 

218,040 

22 
CK618

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS - PREFERRED 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) 

ISSUER 

TRI-STATE GENERATION & TRANSMISSION 

ASSOCIATION INC 

MSBAM2012-C6AS 

CITIGRP COML MTG TR 2013-GCJ11B 

SOUTHERN CALIFORNIA EDISON CO 

CGCMT 2015-GC29 A4 

CITY OF HOPE 

SCRT 2017-2 MA 

(c) • DESCRIPTION 

CORPORATE DEBT INSTRUMENTS -

PREFERRED 

PAR OR 

INTEREST MATURITY MATURITY 

RATE DATE VALUE 

4.70% 11/01/2044 95,000 

3.48% 11/17/2045 115,000 

3.73% 04/10/2046 81,000 

4.13% 03/01/2048 110,000 

3.19% 04/10/2048 97,000 

4.38% 08/15/2048 45,000 

3.00% 08/25/2056 205.000 

$ 911961000 

(d) (e) 

CURRENT 

COST VALUE 

97,878 96,810 

121,949 114,893 

80,595 79,852 

107,165 107,263 

95,193 95,099 

45,000 45,427 

194,853 185.908 

$ 8,489,934 $ 8!3471428 

23 
CK619

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS - OTHER 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION (d) (e) 

CORPORATE DEBT INSTRUMENTS - OTHER 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

RALPH LAUREN CORP 2.13% 09/26/2018 $ 200,000 $ 203,102 $ 199,960 

BANK OF AMERICA CORP 2.60% 01 /15/2019 100,000 100,279 100,011 

GOLDMAN SACHS GROUP INC/THE 7.50% 02/15/2019 250,000 274,698 255,300 

XILINX INC 2.13% 03/15/2019 70,000 69,634 69,810 

AMERICAN EXPRESS CREDIT CORP 2.13% 03/18/2019 80,000 79,849 79,838 

SUNTRUST BANKS INC 2.50% 05/01/2019 100,000 99,911 99,959 

BP CAPITAL MARKETS PLC 2.24% 05/10/2019 75,000 75,000 74,790 

CVS HEAL TH CORP 2.25% 08/12/2019 100,000 99,944 99,478 

NEXTERA ENERGY CAPITAL HOLDINGS INC 2.40% 09/15/2019 100,000 99,825 99,516 

CONSOLIDATED EDISON INC 2.00% 03/15/2020 250,000 249,918 246,050 

DOMINION ENERGY INC 2.58% 07/01/2020 75,000 75,077 73,979 

SANTANDER UK GROUP HOLDINGS PLC 3.13% 01/08/2021 70,000 69,989 69,173 

REGIONS FINANCIAL CORP 3.20% 02/08/2021 200,000 199,790 199,258 

AMERICAN EXPRESS CREDIT CORP 2.25% 05/05/2021 300,000 299,817 292,920 

WEC ENERGY GROUP INC 3.38% 06/15/2021 50,000 49,980 50,198 

DISCOVER BANK 3.20% 08/09/2021 100,000 99,732 99,084 

KROGER CO/THE 2.95% 11/01/2021 100,000 99,968 98,716 

AIR CASTLE LTD 5.50% 02/15/2022 95,000 98,413 99,288 

ALABAMA POWER CO 2.45% 03/30/2022 250,000 249,795 243,068 

QUALCOMM INC 3.00% 05/20/2022 500,000 499,810 494,005 

CHARTER COMMUNICATIONS OPER 4.46% 07/23/2022 145,000 145,000 147,955 

INTERNATIONAL LEASE FINANCE CORP 5.88% 08/15/2022 100,000 113,750 106,519 

ALABAMA POWER CO 5.88% 12/01/2022 200,000 245,700 217,562 WELLS FARGO & CO 3.07% 01/24/2023 95,000 95,064 92,976 

MARVELL TECHNOLOGY GROUP LTD 4.20% 06/22/2023 50,000 49,898 49,928 

EQT MIDSTREAM PARTNERS LP 4.75% 07/15/2023 100,000 99,761 101,457 

CNH INDUSTRIAL NV 4.50% 08/15/2023 90,000 91 ,941 91,112 

FEDEX CORP 4.00% 01 /15/2024 75,000 74,871 76,822 

AMERICAN TOWER CORP 5.00% 02/15/2024 95,000 106,954 99,782 

BANK OF AMERICA CORP 3.11% 03/05/2024 95,000 94,904 94,661 

KINROSS GOLD CORP 5.95% 03/15/2024 70,000 73,063 71,925 

JUNIPER NETWORKS INC 4.50% 03/15/2024 75,000 74,885 76,641 

HOSPITALITY PROPERTIES TRUST 4.65% 03115/2024 70,000 69,778 70,071 

JPMORGAN CHASE & CO 3.56% 04/23/2024 105,000 104,255 104,614 

CELGENE CORP 3.63% 05115/2024 100,000 99,659 98,838 

AT&T INC 3.49% 06/12/2024 125,000 125,000 125,199 

JPMORGAN CHASE & CO 3.80% 07/23/2024 155,000 155,000 155,473 

PACIFIC GAS & ELECTRIC CO 3.40% 08115/2024 100,000 99,925 95,915 

CBS CORP 3.70% 08/15/2024 100,000 99,760 97,428 

CROWN CASTLE INTERNATIONAL CORP 3.20% 09/01/2024 60,000 57,343 57,320 

TRINITY INDUSTRIES INC 4.55% 10/01/2024 100,000 99,974 96,978 ANDEAVOR LOGISTICS LP / TESOROLOGISTICS 

FINANCE CORP 5.25% 01/1 5/2025 50,000 52,125 51,188 

UNION PACIFIC CORP 3.25% 01/15/2025 100,000 99,669 97,786 

COMCAST CORP 3.38% 02/15/2025 100,000 99,912 97,525 

REALTY INCOME CORP 3.88% 04/15/2025 70,000 69,650 69,980 

HAWAIIAN AIRLINES 2013-1 CLASSA PASS 

THROUGH CERTIFICATES 3.90% 01/15/2026 125,000 94,319 92,469 

CITIGROUP INC 3.40% 05/01/2026 250,000 249,495 239,398 EAGLE MATERIALS INC 4.50% 08/01 /2026 95,000 99,201 95,161 CITIGROUP INC 3.20% 10/21/2026 250,000 249,853 234,703 WELLS FARGO & CO 3.00% 10/23/2026 250,000 249,423 233,730 

BUCKEYE PARTNERS LP 3.95% 12/01 /2026 120,000 109,823 110,453 HEXCEL CORP 3.95% 02/15/2027 240,000 238,942 235,795 

24 
CK620

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE DEBT INSTRUMENTS- OTHER 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) - DESCRIPTION (d) (e) 

CORPORATE DEBT INSTRUMENTS - OTHER 

PAR OR 

INTEREST MATURITY MATURITY CURRENT 

ISSUER RATE DATE VALUE COST VALUE 

PHYSICIANS REAL TY LP 4.30% 03/15/2027 100,000 98,956 97,614 

MERCURY GENERAL CORP 4.40% 03/15/2027 55,000 54,916 53,610 

RPM INTERNATIONAL INC 3.75% 03/15/2027 110,000 109,844 105,312 

DOLLAR GENERAL CORP 3.88% 04/15/2027 250,000 249,815 245,665 

BRIGHTHOUSE FINANCIAL INC 3.70% 06/22/2027 60,000 53,893 53,611 

EQT CORP 3.90% 10/01/2027 55,000 53,685 51,769 

HUDSON PACIFIC PROPERTIES LP 3.95% 11/01/2027 90,000 89,863 85,054 

CITIGROUP INC 3.89% 01/10/2028 105,000 106,172 102,341 

LINCOLN NATIONAL CORP 3.80% 03/01/2028 90,000 89,790 87,474 

STORE CAPITAL CORP 4.50% 03/15/2028 95,000 94,539 93,527 

ENABLE MIDSTREAM PARTNERS LP 4.95% 05/15/2028 55,000 54,558 54,650 

VODAFONE GROUP PLC 4.38% 05/30/2028 90,000 88,831 89,495 

MORGAN STANLEY 3.59% 07/22/2028 55,000 55,000 52,409 

FORD MOTOR CO 6.38% 02/01/2029 250,000 285,515 260,250 

GOLDMAN SACHS GROUP INC 3.81% 04/23/2029 105,000 105,000 100,449 

HESS CORP 7.88% 10/01/2029 30,000 36,839 36,558 

TORONTO-DOMINION BANK 3.63% 09/15/2031 55,000 54,857 52,193 

BANK OF MONTREAL 3.80% 12/15/2032 60,000 60,000 56,394 

HESS CORP 7.13% 03/15/2033 100,000 117,586 116,630 

PLAINS ALL AMERICAN PIPELINE LP/ PAA 

FINANCE CORP 6.65% 01/15/2037 90,000 103,018 100,930 

DISCOVERY COMMUNICATIONS LLC 5.00% 09/20/2037 50,000 48,845 48,752 

CVS HEAL TH CORP 4.78% 03/25/2038 60,000 59,167 59,796 

ENBRIDGE ENERGY PARTNERS LP 7.50% 04/15/2038 40,000 49,196 51 ,190 

ENERGY TRANSFER PARTNERS LP 5.80% 06/15/2038 70,000 69,012 72,503 

TIME WARNER INC 4.90% 06/15/2042 60,000 60,755 56,188 

MOTOROLA SOLUTIONS INC 5.50% 09/01/2044 130,000 130,801 123,295 

ALBEMARLE CORP 5.45% 12/01/2044 45,000 48,201 47,533 

SYSCO CORP 4.50% 04/01/2046 80,000 80,091 79,928 

GSMS 2014-GC24 C 4.53% 09/10/2047 110,000 110,088 108,352 

PPL CAPITAL FUNDING INC 4.00% 09/15/2047 120,000 118,546 110,422 

WESTLAKE CHEMICAL CORP 4.38% 11/15/2047 60,000 59,387 54,923 

RABOBANK NEDERLAND 11.00% 08/31/2058 85,000 114,410 90,372 

ENBRIDGE INC 6.25% 03/01 /2078 50,000 50,000 48,564 

$ 916801000 $ 918441604 $ 9,579,518 

25 
CK621

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE STOCK- PREFERRED 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41 - ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(c) -

(b) DESCRIPTION (d) (e) 

PREFERRED 

STOCK 

NO. OF CURRENT 

ISSUER SHARES COST VALUE 

COBANK ACB 6.25% SER F 1,000 $ 106.450 $ 104.300 

$ 106.450 $ 1041300 

26 
CK622

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE STOCK- COMMON 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(c) . 

(a) (b) DESCRIPTION (d) (e) 

COMMON 

STOCK 

NO.OF CURRENT 

ISSUER SHARES COST VALUE 

3M COMPANY 2,280 $ 317,504 $ 480,898 

ABBOTT LABORATORIES 7,430 320,500 496,621 

ABBVIE INC COM 6,270 360,711 601,795 

AIR PROD & CHEM INC 3,125 445,712 519,656 

ALTRIA GROUP INC 7,205 289,663 421,637 

AMGEN INC 3,075 545,112 614,416 

AUTOMATIC DATA PROCESSING INC 1,205 85,805 176,834 

BB & TCORP 14,890 574,467 769,217 

BLACKROCKINC 840 255,898 402,410 

BROADCOM INC 755 199,189 165,368 

CHEVRON CORP 2,355 273,766 278,973 

CISCO SYS INC 18,080 406,881 863,682 

CROWN CASTLE INTL CORP 4,615 388,864 526,248 

ELI LILLY & CO 930 98,068 98,255 

EXXON MOBIL CORP 3,010 255,607 241 ,312 

HASBRO INC 1,845 100,512 183,227 

HOME DEPOT INC 3,865 452,776 775,976 

HONEYWELL INTERNATIONAL INC 4,190 535,699 666,461 

HP INC COM 6,980 158,247 172,057 

ILL TOOL WORKS INC 2,150 265,776 298,592 

JOHNSON & JOHNSON 4,460 394,344 600,717 

JPMORGAN CHASE & CO 8,165 525,066 935,546 

LOCKHEED MARTIN CORP 1,835 264,627 587,952 

L YONDELLBASELL NV CL-A 3,040 248,024 342,851 

MARSH & MCLENNAN COS INC 4,315 340,561 365,178 

MAXIM INTEGRATED PRODUCTS INC 3,435 106,459 207,714 

MCCORMICK AND CO NON VOTING 1,340 130,979 167,339 

MC DONALDS CORP 3,042 488,174 493,504 

MEDTRONIC PLC SHS 3,965 317,928 382,266 

MICROSOFT CORP 8,190 308,846 919,983 

NEXTERA ENERGY INC 4,560 426,318 775,656 

PAYCHEX INC 7,265 330,158 532,161 

PEPSICO INC NC 4,985 512,182 558,370 

PFIZER INC 10,960 360,664 455,059 

PHILLIPS 66 COM 1,990 215,467 235,835 

REAL TY INCOME CORP 3,435 205,329 201,188 

SEMPRA ENERGY 3,415 391,136 396,413 

SIMON PPTY GROUP INC 1,455 234,858 266,309 

STARBUCKS CORP WASHINGTON 6,655 342,663 355,710 

TEXAS INSTRUMENTS 7,065 486,827 794,107 

U S BANCORP COM NEW 4,455 230,785 241,060 

VALERO ENERGY CP DELA NEW 2,505 160,135 295,289 

VENTAS INC 1,630 88,508 97,588 

* WCM FOCUSED INTERNATIONAL GROWTH FUND L.P. 5,305 9,286,003 13,118,266 

WEC ENERGY GROUP INC COM 6,335 297,257 428,119 

WILLIAMS CO INC 8,560 259,351 253,290 

$ 2312831406 $ 32.761,105 

• PARTY-IN-INTEREST 

27 
CK623

(a) 

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF CORPORATE STOCK-COMMON 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(b) 

(c) -

DESCRIPTION (d) (e) 

COMMON 

STOCK 

NO. OF CURRENT 

ISSUER SHARES COST VALUE 

HOLDINGS OF CERTAIN INVESTMENTS WERE DETERMINED TO BE PLAN ASSETS FOR FORM 5500 PURPOSES AND ARE 

SE PARA TEL Y IDENTIFIED HERE BASED ON THE ALLOCATION OF UNDERLYING ASSETS PROVIDED BY THE INVESTMENT 

MANAGER, AS OF THE DATE OF THEIR LATEST AUDITED FINANCIAL STATEMENTS. 

28 
CK624

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF REAL ESTATE 

AUGUST 31 , 2018 

EIN 51-6099111 , PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) 

ISSUER 

INVESTMENT PROPERTY· LOT 19 32-43 49TH AVENUE LONG 

ISLAND CITY NY 

(c) • DESCRIPTION 

REAL ESTATE 

NO. OF SHARES 

(d) 

COST 

$ ___ _ 1,025,665 

1,025,665 $================ 

(e) 

CURRENT 

VALUE 

$ 1485 000 

$ 114851000 

29 
CK625

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF COMMON/COLLECTIVE TRUST FUNDS 

AUGUST 31 , 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41 - ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(c) -

(a) (b) DESCRIPTION (d) (e) 

COMMON 

TRUST FUNDS 

NO. OF CURRENT 

ISSUER SHARES COST VALUE . RUSSELL 2000 (R) INDX SL FUND 64,871 $ 2,645,602 $ 7,900,238 . RUSSELL 1000 (R) GROWTH INDX NL FUND 185,342 5,621,290 19,196,749 

$ 8,266,892 $ 27,096,987 

• PARTY-IN-INTEREST 

30 
CK626

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF POOLED SEPARATE ACCOUNTS 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(c) -

(a) (b) DESCRIPTION (d) (e) 

POOLED 

SEPARATE 

ACCOUNTS 

CURRENT 

ISSUER UNITS COST VALUE 

PRUDENTIAL PRISA 186 $ 11,015,591 $ 11 ,572,442 

$ 11,015,591 $ 11,572,442 

* PARTY-IN-INTEREST 

31 
CK627

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

SCHEDULE OF REGISTERED INVESTMENT COMPANIES 

AUGUST 31, 2018 

EIN 51-6099111, PLAN NO. 002 

FORM 5500, SCHEDULE H, LINE 41-ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR 

(a) NOT APPLICABLE 

(b) (c) • DESCRIPTION (d) (e) 

REGISTERED INVESTMENT 

COMPANIES 

CURRENT 

ISSUER NO. OF SHARES COST VALUE 

LAZARD GLB LSTD INFR PTF INST 975,284 $ 13.570.119 $ 15.097.393 

$ 1315701119 $ 15.097.393 

32 
CK628

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

Rehabilitation Plan 

Background on the Pension Fund 

Local 807 Labor-Management Pension Fund (the "Fund" or the "Plan") covers Teamsters 

in a variety of industries including, but not limited to wholesale building supply 

distributors, compressed gas distributors, exposition facilitators, and public 

warehouse/distribution companies. The signatory companies in many of these industries 

have experienced declines in workforce forcing bankruptcies due to non-union 

competition, deregulation of the trucking industry, the economic condition of the country, 

downturn in construction in the greater New York City area, improvements of technology 

and outsourcing of jobs. For year ending August 31 , 1993, active work for which 

employers made contributions to the Fund was 3,749,000 hours. That number declined to 

1,546,363 hours by year ending August 31, 2010. As of August 31, 1993, the Fund had 

2,120 active participants, 1,116 inactive vested participants and 4,050 pensioners and 

beneficiaries, a ratio of 2.44 nonactive participants for every I active participant. By 

August 31, 2010, there were only 900 active participants, 1,026 inactive vested 

participants and 3,337 pensioners and beneficiaries resulting in a ratio of 4.85 nonactive 

participants for every I active participant. There have been a significant number of 

bankruptcies and withdrawals of contributing companies to the Fund. The ratio of actives 

to inactive participants declined further in the Plan Year commencing September 1, 2010 

due to the downturn of the United States economy and the slumping building industry in 

the New York City area. 

The Fund's covered population also has aged over the years. The average age of active 

employees at the beginning of 2002 was 45.0 years old; that average grew to 49.1 years 

old in 2010. The average pensioner was 72.3 years old in 2002 and it was 74.9 years old 

in 2010. This leads to a smaller and older workforce generating employer contributions to 

the Pension Fund for a shorter period of time to provide lifetime monthly benefits to 

pensioners and beneficiaries who are living longer. 

Due to the recent stock market volatility, the Fund has experienced lower investment 

returns than usual. For the ten years ended August 31, 2002, the Fund had a five year 

average investment return of 3.54% and a ten year average investment return of 6.55%. 

For the ten years ended August 31, 2010, the Fund had a five year average investment 

return of -0.86% and a ten year average investment return of -0.46%. In 2009 alone, the 

Fund experienced a negative 18.32% return resulting in a loss of more than $45,000,000. 

The Trustees have sought to address these issues over recent years. To deal with the 

impact of the investment losses and other detrimental factors, the Trustees recommended 

that the bargaining parties obtain additional contributions into the Fund. Over the past 

five years, for example, the Pension Fund contribution rates for all contributing 

Employers increased by an average of 6.5% per year. The Trustees also amended the Plan 

' . 

1 
CK629

in September, 2001 to cap the accrual rate at the $4.315 contribution-rate. In 2010, the 

Trustees adopted a career average method of calculating future accruals, equating such 

• accruals on a more reasonable basis to contributions, all in an effort to better fund the 

Plan. 

The significant investment loss of 2008, coupled with the cash flow issues related to the 

reduction in active participants, has led the Fund to a position of possible insolvency, or 

at best, a significantly longer period of time to emerge from Critical Status than required 

by ERISA § 305. 

Rehabilitation Plan Development 

Section 305 of the Employee Retirement Income Security Act (ERISA) and Section 432 

of the Internal Revenue Code (IRC), as added by the Pension Protection Act of 2006 

("PPA"), require the Trustees of a multiemployer pension fund that has been certified by 

its actuary as being in Critical Status (also known as the "Red Zone") to develop a 

Rehabilitation Plan. Generally, the Rehabilitation Plan should enable a fund to cease to 

be in Critical Status by the end of the Rehabilitation Period. However, if the Trustees 

determine, based upon the exhaustion of all reasonable measures that a fund cannot 

reasonably be expected to emerge by the end of the Rehabilitation Period, the 

Rehabilitation Plan should be designed to enable the fund to cease to be in Critical Status 

at a later date if possible, or to forestall possible insolvency. The Rehabilitation Plan must 

be based on reasonably anticipated experience and on reasonable actuarial assumptions, 

and may adopt such reasonable measures as the Trustees deem necessary. 

On November 29, 2010, the Fund was certified by its actuaries to be in Critical Status for 

the Plan Year beginning September I, 2010. As required by law, the Board of Trustees 

forwarded a Notice of Critical Status ("Notice") to the Teamsters Local Union No. 807 

(the "Union") and the employers contributing to the Fund ("Employers") (referred to 

collectively as the "bargaining parties"), participants, beneficiaries, the Pension Benefit 

Guaranty Corporation and the Department of Labor. The Notice advised that (1) the Fund 

is in Critical Status for the 20 IO Plan Year; (2) all of the adjustable benefits supported 

under the Plan could be eliminated or reduced pursuant to a Rehabilitation Plan; (3) any 

reductions pursuant to the Rehabilitation Plan would apply only to participants and 

beneficiaries whose benefit commencement date is after December 27,201 O; and (4) 

Employers are obligated to pay a 5% contribution surcharge to the Fund, for W(?rk 

performed on and after January 26, 2011 . The 5% surcharge will increase to l 0% 

beginning with contributions received on or after September I, 2011 and will continue 

until the earlier of (I) the date the Fund emerges from Critical Status; (2) the effective 

date of a collective bargaining agreement ("CBA") that is in compliance with this 

Rehabilitation Plan; or (3) the date the contribution increases described below become 

effective with respect to an Employer because the bargaining parties fail to adopt a CBA 

in compliance with the Rehabilitation Plan within the time period required by Section 

305(e)(C)(ii) of ERISA. The surcharges will continue until the CBA is signed, and the 

required increase in contributions will be retroactive to the date the CBA is effective . . 

2 
CK630

The schedule of contribution increases and benefit reductions attached to this 

Rehabilitation Plan (Schedule "A") and embodied herein will be provided to the 

bargaining parties no later than the thirtieth day after the Board of Trustees adopt this 

Rehabilitation Plan. Any new CBA entered into by the bargaining parties or any other 

agreement calling for participation in the Fund after it is so provided must reflect the 

terms of the most recently issued Schedule A. If the bargaining parties cannot reach an 

agreement concerning the adoption of Schedule A, Schedule A is to be treated as the 

Default Schedule and will become effective on the date specified in ERJSA Section 

305( e )(3)(C)(ii). In the case of an Employer that contributes to the Fund only with respect 

to employees not covered by a CBA, that Employer's agreement with the Fund providing 

for contributions to the Fund will be treated as a CBA that expires on August 31, 2011. 

The Board of Trustees will review the Fund's Rehabilitation Plan annually and will 

update the Rehabilitation Plan as required by law. In addition, the Board of Trustees will 

continue to consider all options available to the Fund, including but not limited to 

reducing Fund expenditures, talcing advantage of any changes in law, or exploring a 

merger with another plan. The Board of Trustees has the sole discretion to amend and 

construe this Rehabilitation Plan. 

This Rehabilitation Plan: 

1. specifies the Rehabilitation Period; 

2. describes alternatives the Trustees considered when preparing the Rehabilitation 

Plan; 

3. explains why the Trustees concluded that there are no reasonable measures that 

would enable the Plan to emerge from Critical Status in the time frame prescribed by 

ERJSA § 305; 

4. includes remedies and a schedule of benefits and contributions (Schedule A) that 

are projected to enable the Fund to postpone the projected date of insolvency and/or 

cause the Fund to emerge from Critical Status; 

5. explains that the Default Schedule will be put into effect automatically if the 

bargaining parties do not agree on an acceptable schedule in a timely manner; and 

6. sets out the annual standard to be achieved under the Rehabil.itation Plan and 

explains that the Rehabilitation Plan will be updated from time to time~ 

Rehabilitation Period 

The Fund's Rehabilitation Period is the 24 year period beginning on September I, 2013 

and ending on August 31, 2037. 

3 
CK631

Rehabilitation Plan Standard 

The Fund's Board of Trustees has determined that based on reasonable actuarial 

assumptions, and upon exhaustion of all reasonable measures, the Fund cannot be 

reasonably expected to emerge from Critical Status within the time frame prescribed by 

ERISA § 305 (the "Prescribed Period"). Accordingly, pursuant to ERISA Section 

305( e )(3 )(A)(ii), the Board of Trustees is adopting reasonable measures in this 

Rehabilitation Plan to forestall insolvency (as defined by ERISA Section 4245) and/or 

emerge from Critical Status over a projected period of time. 

The Board of Trustees considered a number of actions, options, and alternatives that 

might permit the Fund to emerge from Critical Status by the end of the Prescribed Period. 

The Trustees have determined the remedies necessary for such a result as being 

!]nreasonable measures that would be untenable or counter productive and adverse to the 

Fund and its participants. The remedies considered included the following: 

• The Fund's actuary projected that if there were no changes to the Plan's current 

schedule of benefits, Employers would need to increase their current contribution 

rates by at least 27.5% per year for the next ten years to emerge from Critical 

Status by September 1, 2023. This means the current $4.7065 average hourly 

contribution rate would need to increase to an average contribution rate of $53.43 

per hour. 

• The Fund's actuary projected that if future accrual rates are reduced to the 

minimwn level allowed by law in a default schedule (the equivalent of 1 % of 

contributions), all adjustable benefits are eliminated and all future contribution 

increases are supplemental (meaning that the increased rates do not increase the 

future credit multiplier in the Plan), Employers would need to increase their 

current contribution rates by at least 21.5% per year, compounded each year, from 

the start of the next collective bargaining agreement through September l, 2023 to 

emerge from critical status. This means the current $4. 7065 average contribution 

rate would need to increase to an average of $33.00 per hour. 

The Trustees concluded that there are no reasonable measures that will enable the Plan to 

emerge from Critical Status in the Prescribed Period for the following reasons: 

• The Trustees noted that the final contribution rates needed to emerge from critical 

status by September 1, 2023 were more than the current hourly wage rates for the 

majority of the participants in this Fund. Even higher final rates would be needed 

to emerge from critical status at a later date. 

• The Trustees noted that a complete freeze of future benefit-accruals would 

provide little incentive for participants to support contribution rate increases, 

especially since those increases would need to be financed by reductions in health 

fund contributions and wages. 

• The Trustees noted the financial pressure on current contributing Employers, and 

how any significant increases in future contributions would put the operation of 

these companies in question, thus jeopardizing the future contribution source of 

4 
CK632

the Fund. Significant increases would likely result in withdrawals of contributing 

Employers requiring even larger and more unreasonable contribution rate 

increases from any remaining contributing Employers to enable the Plan to 

emerge from Critical Status. 

Trustee-Approved Rehabilitation Plan Remedies 

The Board of Trustees concluded that annual contribution rate increases in excess of 

those called for under Schedule A were not reasonable and could trigger a mass 

withdrawal and significant losses to the Fund and its participants. Therefore, the Trustees 

concluded that contributions required to ever emerge from Critical Status within the time 

frame prescribed by ERISA would be unreasonable and the Rehabilitation Plan could 

only reasonably be expected to forestall insolvency or emerge from Critical Status over a 

much longer period of time. Based on this, the Trustees have adopted the following 

reasonable measures to forestall insolvency, and/or eventually emerge from Critical 

Status which the Trustees have determined to be the most the Fund can reasonably take 

given the financial condition of the various industries in which the contributing 

employers are engaged and the need to maintain active participant support for the Plan. 

Schedule of Contribution Rate Increases and Benefit Changes 

Contribution Rate Increases for Contributing Employers 

Contribution rate increases of 45 cents per hour per year will be required for any 

collective bargaining agreement that becomes effective after September 1,201 I. All 

increases in hourly rates will be supplemental after September 1, 2011 , and therefore will 

not cause any increase in future service accruals, except as provided herein. 

The impact of these increases in contribution rates will be evaluated annually and will be 

adjusted based on the financial conditions of the signatory employers and experience of 

the Fund. 

Collective bargaining agreements between the union and contributing employers that are 

agreed to after September 1, 2011 will not be accepted by the Trustees unless they 

incJude terms consistent with this Schedule. 

5 
CK633

Benefit Changes for Active Participants 

The accrual rate as defined in Article III of the Plan Document after February 1, 2012 

will be the lesser of I% of the product of (a) the nwnber of hours for which contributions 

are due on behalf of the participant in a Plan Credit Year and (b) the contribution rate in 

effect for his employer prior to its first contribution increase on or after September 1, 

2011 (regardless of surcharges) or the accrual rate under the plan as of September 1, 

201 I. 

Non-protected and adjustable benefits for all participants and whose annuity starting date 

is on or after September I, 2011 , are eliminated as follows: 

1. Those retiring on an Early Retirement Pension shall have their benefits reduced 

in accordance with Schedule B attached to this Rehabilitation Plan eliminating all 

subsidies previously afforded. 

2. All Service Pensions will no longer be available. 

3. The 60-month guarantee will no longer apply. 

4. Actuarial reduction for a Joint and Survivor Pension wi1l reflect the elimination of 

the 60-month guarantee. The Joint and Survivor Factors set forth in Schedule C attached 

to this Rehabilitation Plan will apply. 

5. All future contribution increases after September 1, 20 I 1 will not be used towards 

the calculation of any future accruals. 

6. The Disability Pension will not be payable to anyone who has an Annuity Starting 

Date of September I, 201 I or later and who has not submitted a complete application, 

with all required information, prior to that date. 

7. The Death Benefit provided in Section 3.19 of the Plan. 

8. Eliminate the Social Security Level Income Option pursuant to Section 3.17 of 

the Plan. 

Benefit Changes for Non-active Participants 

Notwithstanding any other terms of this Rehabilitation Plan or the Schedules provided 

under it, the benefits of retired participants whose annuity starting date was before 

September 1, 2011 will not be eliminated or reduced, regardless of a subsequent 

resumption of Covered Employment. 

Participants who have terminated (or will terminate) covered service or whose annuity 

starting date is on or after September I, 2011 , will have their benefits reduced in 

6 
CK634

accordance with the benefit changes described in this Rehabilitation Plan, effective as of 

the earliest date permitted after the provision of legally required advance notice. 

The benefits of a beneficiary ( e.g. surviving spouse) or of an Alternate Payee under a 

QDRO will be determined on the same basis as those of the participant under this 

Rehabilitation Plan. 

Reciprocal Pension Benefits 

To the extent that a participant's pension benefit is greater than what is provided under 

the terms of this Rehabilitation Plan as a result of the impact from an existing reciprocal 

agreement, that agreement is deemed to be amended by the terms of this Rehabilitation 

Plan such that no benefit paid to a participant by this Fund is greater than the benefits 

prescribed herein. 

Adoption and Automatic Implementation of Schedule A 

Consistent with Section 305(c)(7) ofERISA, if a collective bargaining agreement 

providing for contributions to the Fund that was in effect on September 1, 2011 expires 

and after receiving the Rehabilitation Plan Schedule, the bargaining parties fail to adopt 

contribution terms consistent with the Rehabilitation Plan, Schedule A and its 

contribution provisions will be implemented automatically as the default schedule I 80 

days after the date on which the collective bargaining agreement expires. Any CBA that 

expired prior to September 1, 2011 and has not been renewed with a successor 

agreement, will be considered expired as of September I, 2011 for the sake of this 

paragraph. 

Automatic Employer Surcharges 

Pursuant to Section 305(e)(7) of BRISA, each employer otherwise obligated to make 

contributions in the initial critical year shall be obligated to pay to the Plan a surcharge 

equal to 5 percent (5%) of contributions otherwise required under the applicable CBA. 

Beginning with contributions received on or after September 1, 2011 and for each 

succeeding plan year in which the Plan is in critical status, the surcharge shall be 10 

percent ( 10%) of the contributions. 

The surcharges will continue until the earlier of (1) the date the Fund emerges from 

Critical Status; (2) the effective date of a CBA that is in compliance with this 

Rehabilitation Plan; or (3) the date the contribution increases provided herein become 

effective with respect to an Employer because the bargaining parties fail to adopt a CBA 

in compliance with the Rehabilitation Plan within the time period required by Section 

305(e)(C)(ii) of ERISA. The surcharges will continue until the CBA is signed, and the 

required increase in contributions will be retroactive to the date the CBA is effective. 

The surcharge under this paragraph shall not apply to an employer until 30 days after the 

employer has been notified that the Plan is in critical status and that the surcharge is in 

effect. Notwithstanding any provision of the Plan to the contrary, the amount of any 

7 
CK635

surcharge under this paragraph shall not be the basis for any benefit accrual under the 

Plan. 

The surcharges are due and payable on the same schedule as contributions. Any failure to 

make a surcharge payment shall be treated as a delinquent contribution under Section 

1145 of ERIS~. 

Annual Standards for Meeting the Rehabilitation Requirements 

Based on reasonable assumptions, and implementation of the provisions of Schedule A 

hereof, the Fund is projected to emerge from critical status by September 1, 2037. The 

Trustees recognize the possibility that actual experience could be less favorable on an 

annual basis than the reasonable assumptions used for the Rehabilitation Plan. Therefore, 

the Trustees are establishing the following annual standards: 

Determination for Year Projected Credit Balance 

Ending August 31 (in millions) 

2014 $43 

2015 21 

2016 -3 

2017 -27 

2018 -52 

2019 -78 

2020 -106 

2021 -134 

2022 -144 

2023 -148 

2024 -151 

2025 -154 

2026 -150 

2027 -143 

2028 -134 

2029 -128 

2030 -I 19 

2031 -110 

2032 -99 

2033 -87 

2034 -73 

2035 -57 

2036 -40 

2037 -21 

2038 0 

8 
CK636

Restrictions on Plan Changes While in Critical Status 

While the Plan is in Critical Status the following shall apply: ( 1) A CBA cannot be 

accepted that adversely affects the Plan's funding status; (2) Amendments cannot be , 

passed that are inconsistent with the Rehabilitation Plan; (3) Amendments canno{ be 

passe~at.increase benefits, unless they are paid for with contributions not requ'ired 6'y 

the Rehabilitation Plan; ( 4) Amendments cannot be passed that increase the liabilities of 

the Plan, unless required by law; (5) The Plan cannot pay benefits such as lump sums or 

Social Security level-income options and (6) no annuity purchases can be made (small 

lump sum distributions permitted if consistent with the Plan). 

Annual Updating of Rehabilitation Plan 

Each year the Fund's actuary will review and certify the status of the Fund under 

applicable ERISA and IRC funding rules and, starting with the 2013 plan year, whether 

the Fund is making the scheduled progress in meeting the requirements of the 

Rehabilitation Plan. If it is determined that it is necessary in light of updated information, 

the Trustees will revise the Rehabilitation Plan and present updated schedules to the 

bargaining parties. Notwithstanding subsequent changes in benefit and contribution 

schedules, a schedule provided by the Trustees and relied upon by the bargaining parties 

in negotiating a collective bargaining agreement shall remain in effect for the duration of 

that collective bargaining agreement. However, a collective bargaining agreement that is 

renewed or extended will need to include terms consistent with the schedule in effect at 

the time of the renewal or extension. 

9 
CK637

SCHEDULE A 

1. Contribution Increases 

$.45 per hour in each contract year. .. 

2. Future Benefit Accruals 

The accrual rate as defined in Article III of the Plan Document after February 1, 

2012 will be the lesser of 1 % of the product of (a) the number of hours for which 

contributions are due on behalf of a participant in a Plan Credit Year and (b) the 

contribution rate in effect for his employer prior to its first contribution increase 

(regardless of surcharges) on or after September 1, 2011 required to be made with respect 

to a participant or the accrual rate under the Plan as of September I, 2011. 

3. Adjustable Benefits 

• Those retiring before Early Retirement Pension shall have their benefits 

reduced in accordance with Schedule B attached to this Rehabilitation 

Plan eliminating all subsidies previously afforded. 

• All Service Pensions will no longer be available. 

• The 60-month guarantee wi11 no longer apply. 

• Actuarial reduction for a Joint and Survivor Pension will reflect the 

elimination of the 60-month guarantee. The Joint and Survivor Factors set 

forth in Schedule C attached to this Rehabilitation Plan will apply. 

• All future contribution increases after September l, 2011 will not be used 

towards the calculation of any future accruals. 

• The Disability Pension will not be payable to anyone who has an Annuity 

Starting Date of September I, 2011 or later and who has not submitted a 

complete application, with all required information, prior to that date. 

• The Death Benefit provided in Section 3 .19 of the Plan. 

• The Social Security Level Income Option pursuant to Section 3.17 of the 

Plan is eliminated. 

1 1 
CK638

SCHEDULED 

Early Retirement Factors for Rehabilitation Plan 

Early retirement benefit is calculated by multiplying the Regular Pension benefit by the 

factor below corresponding with the age of a participant at Early Retirement date. 

Age Factor 

55 36.59% 

56 40.12% 

57 44.07% 

58 48.48% 

59 53.43% 

60 58.99% 

61 65.26% 

62 72.35% 

63 80.39% 

64 89.54% 

Note: Reductions for fractional ages are interpolated based on the above. 

12 
CK639

SCHEDULEC 

J&S Factors for Rehabilitation Plan 

50% joint and survivor: 

88% plus 0.4% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.4% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 

75% joint and survivor: 

83% plus 0.5% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.5% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 

f:\local 807\rehab plan\plan final version 6-23-1 I.doc 

13 
CK640

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

First Amended Rehabilitation Plan 

Background on the Pension Fund 

Local 807 Labor-Management Pension Fund (the "Fund" or the "Plan") covers Teamsters 

in a variety of industries including, but not limited to wholesale building supply 

distributors, compressed gas distributors, exposition facilitators, and public 

warehouse/distribution companies. The signatory companies in many of these industries 

have experienced declines in workforce forcing bankruptcies due to non-union 

competition, deregulation of the trucking industry, the economic condition of the country, 

downturn in construction in the greater New York City area, improvements of technology 

and outsourcing of jobs. For year ending August 31, 1993, active work for which 

employers made contributions to the Fund was 3,749,000 hours. That number declined to 

1,546,363 hours by year ending August 31, 2010. As of August 31, 1993, the Fund had 

2,120 active participants, 1,116 inactive vested participants and 4,050 pensioners and 

beneficiaries, a ratio of 2.44 nonactive participants for every 1 active participant. By 

August 31 , 2010, there were only 900 active participants, 1,026 inactive vested 

participants and 3,337 pensioners and beneficiaries resulting in a ratio of 4.85 nonactive 

participants for every 1 active participant. There have been a significant number of 

bankruptcies and withdrawals of contributing companies to the Fund. The ratio of actives 

to inactive participants declined further in the Plan Year commencing September 1, 2010 

due to the downturn of the United States economy and the slumping building industry in 

the New York City area. 

The Fund's covered population also has aged over the years. The average age of active 

employees at the beginning of 2002 was 45.0 years old; that average grew to 49.l years 

old in 2010. The average pensioner was 72.3 years old in 2002 and it was 74.9 years old 

in 2010. This leads to a smaller and older workforce generating employer contributions to 

the Pension Fund for a shorter period ohime to provide lifetime monthly benefits to 

pensioners and beneficiaries who are living longer. 

Due to the recent stock market volatility, the Fund has experienced lower investment 

returns than usual. For the ten years ended August 31, 2002, the Fund had a five year 

average investment return of 3.54% and a ten year average investment return of 6.55%. 

For the ten years endeq August 31, 2010, the Fund had a five year average investment 

return of -0.86% and a ten year average investment return of -0.46%. In 2009 alone, the 

Fund experienced a negative 18.32% return resulting in a loss of more than $45,000,000. 

The Trustees have sought to address these issues over recent years. To deal with the 

impact of the investment losses and other detrimental factors, the Trustees recommended 

that the bargaining parties obtain additional contributions into the Fund. Over the past 

five years, for example, the Pension Fund contribution rates for all contributing 

Employers increased by an average of 6.5% per year. The Trustees also amended the Plan 
CK641

in September, 2001 to cap the accrual rate at the $4.315 contribution rate. In 2010, the 

Trustees adopted a career average method of calculating future accruals, equating such 

accruals on a more reasonable basis to contributions, all in an effort to better fund the 

Plan. 

The significant investment loss of 2008, coupled with the cash flow issues related to the 

reduction in active participants, has led the Fund to a position of possible insolvency, or 

at best, a significantly longer period of time to emerge from Critical Status than required 

by ERlSA § 305. 

Rehabilitation Plan Development 

Section 305 of the Employee Retirement Income Security Act (ERIS A) and Section 432 

of the Internal Revenue Code (IRC), as added by the Pension Protection Act of 2006 

("PP A"), require the Trustees of a multiemployer pension fund that has been certified by 

its actuary as being in Critical Status (also known as the "Red Zone") to develop a 

Rehabilitation Plan. Generally, the Rehabilitation Plan should enable a fund to cease to 

be in Critical Status by the end of the Rehabilitation Period. However, if the Trustees 

determine, based upon the exhaustion of all reasonable measures that a fund cannot 

reasonably be expected to emerge by the end of the Rehabilitation Period, the 

Rehabilitation Plan should be designed to enable the fund to cease to be in Critical Status 

at a later date if possible, or to forestall possible insolvency. The Rehabilitation Plan must 

be based on reasonably anticipated experience and on reasonable actuarial assumptions, 

and may adopt such reasonable measures as the Trustees deem necessary. 

On November 29, 2010, the Fund was certified by its actuaries to be in Critical Status for 

the Plan Year beginning September 1, 2010. As required by law, the Board of Trustees 

forwarded a Notice of Critical Status ("Notice") to the Teamsters Local Union No. 807 

(the "Union") and the employers contributing to the Fund ("Employers") (referred to 

collectively as the "bargaining parties"), participants, beneficiaries, the Pension Benefit 

Guaranty Corporation and the Department of Labor. The Notice advised that (1) the Fund 

is in Critical Status for the 2010 Plan Year; (2) all of the adjustable benefits supported 

under the Plan could be eliminated or reduced pursuant to a Rehabilitation Plan; (3) any 

reductions pursuant to the Rehabilitation Plan would apply only to participants and 

beneficiaries whose benefit commencement date is after December 27, 2010; and (4) 

Employers are obligated to pay a 5% contribution surcharge to the Fund, for work 

performed on and after January 26, 201 1. The 5% surcharge will increase to 10% 

beginning with contributions received on or after September 1, 2011 and will continue 

until the earlier of ( 1) the date the Fund emerges from Critical Status; (2) the effective 

date of a collective bargaining agreement ("CBA") that is in compliance with this 

Rehabilitation Plan; or (3) the date the contribution increases aescribed below become 

effective with respect to an Employer because the bargaining parties fail to adopt a CBA 

in compliance with the Rehabilitation Plan within the time period required by Section 

305(e)(C)(ii) of ERISA. The surcharges will continue until the CBA is signed, and the 

required increase in contributions will be retroactive to the date the CBA is effective. 

2 
CK642

The schedule of contribution increases and benefit reductions attached to this 

Rehabilitation Plan (Schedule "A") and embodied herein will be provided to the 

bargaining parties no later than the thirtieth day after the Board of Trustees adopt this 

Rehabilitation Plan. Any new CBA entered into by the bargaining parties or any other 

agreement calling for participation in the Fund after it is so provided must reflect the 

terms of the most recently issued Schedule A. If the bargaining parties cannot reach an 

agreement concerning the adoption of Schedule A, Schedule A is to be treated as the 

Default Schedule and will become effective on the date specified in ERISA Section 

305(e)(3)(C)(ii). In the case of an Employer that contributes to the Fund only with respect 

to employees not covered by a CBA, that Employer's agreement with the Fund providing 

for contributions to the Fund will be treated as a CBA that expires on August 31, 2011. 

The Board of Trustees will review the Fund's Rehabilitation Plan annually and will 

update the Rehabilitation Plan as required by law. In addition, the Board of Trustees will 

continue to consider all options available to the Fund, including but not limited to 

reducing Fund expenditures, taking advantage of any changes in Jaw, or exploring a 

merger with another plan. The Board of Trustees has the sole discretion to amend and 

construe this Rehabilitation Plan. 

This Rehabilitation Plan: 

1. specifies the Rehabilitation Period; 

2. describes alternatives the Trustees considered when preparing the Rehabilitation 

Plan; 

3. explains why the Trustees concluded that there are no reasonable measures that 

would enable the Plan to emerge from Critical Status in the time frame prescribed by 

ERISA § 305; 

4. includes remedies and a schedule of benefits and contributions (Schedule A) that 

are projected to enable the Fund to postpone the projected date of insolvency and/or 

cause the Fund to emerge from Critical Status; 

5. explains that the Default Schedule will be put into effect automatically if the 

bargaining parties do not agree on an acceptable schedule in a timely manner; and 

6. sets out the annual standard to be achieved under the Rehabilitation Plan and 

explains that the Rehabilitation Plan will be updated from time to time. 

Rehabilitation Period 

The Fund's Rehabilitation Period is the 35 year period beginning on September 1, 2013 

and ending on August 31, 2048. 

3 
CK643

Rehabilitation Plan Standard 

The Fund's Board of Trustees has determined that based on reasonable actuarial 

assumptions, and upon exhaustion of all reasonable measures, the Fund cannot be 

reasonably expected to emerge from Critical Status within the time frame prescribed by 

ERISA § 305 (the "Prescribed Period"). Accordingly, pursuant to ERISA Section 

305(e)(3)(A)(ii), the Board of Trustees is adopting reasonable measures in this 

Rehabilitation Plan to forestall insolvency (as defined by ERISA Section 4245) and/or 

emerge from Critical Status over a projected period of time. 

The Board of Trustees considered a number of actions, options, and alternatives that 

might permit the Fund to emerge from Critical Status by the end of the Prescribed Period. 

The Trustees have determined the remedies necessary for such a result as being 

unreasonable measures that would be untenable or counter productive and adverse to the 

Fund and its participants. The remedies considered included the following: 

• The Fund's actuary projected that if there were no changes to the Plan's current 

schedule of benefits, Employers would need to increase their current contribution 

rates by at least 27.5% per year for the next ten years to emerge from Critical 

Status by September I, 2023. This means the current $4.7065 average hourly 

contribution rate would need to increase to an average contribution rate of $53.43 

per hour. 

• The Fund's actuary projected that if future accrual rates are reduced to the 

minimum level allowed by law in a default schedule (the equivalent of I% of 

contributions), all adjustable benefits are eliminated and all future contribution 

increases are supplemental (meaning that the increased rates do not increase the 

future credit multiplier in the Plan), Employers would need to increase their 

current contribution rates by at least 21.5% per year, compounded each year, from 

the start of the next collective bargaining agreement through September 1, 2023 to 

emerge from critical status. This means the current $4. 7065 average contribution 

rate would need to increase to an average of $33.00 per hour. 

The Trustees concluded that there are no reasonable measures that will enable the Plan to 

emerge from Critical Status in the Prescribed Period for the following reasons: 

• The Trustees noted that the final contribution rates needed to emerge from critical 

status by September 1, 2023 were more than the current hourly wage rates for the 

majority of the participants in this Fund. Even higher final rates would be needed 

to emerge from critical status at a later date. 

• The Trustees noted that a complete freeze of future benefit accruals would 

provide little incentive for participants to support contribution rate increases, 

especially since those increases would need to be financed by reductions in health 

fund contributions and wages. 

• The Trustees noted the financial pressure on current contributing Employers, and 

how any significant increases in future contributions would put the operation of 

these companies in question, thus jeopardizing the future contribution source of 

4 
CK644

the Fund. Significant increases would likely result in withdrawals of contributing 

Employers requiring even larger and more unreasonable contribution rate 

increases from any remaining contributing Employers to enable the Plan to 

emerge from Critical Status. 

Trustee-Approved Rehabilitation Plan Remedies 

The Board of Trustees concluded that annual contribution rate increases in excess of 

those called for under Schedule A were not reasonable and could trigger a mass 

withdrawal and significant losses to the Fund and its participants. Therefore, the Trustees 

concluded that contributions required to ever emerge from Critical Status within the time 

frame prescribed by ERISA would be unreasonable and the Rehabilitation Plan could 

only reasonably be expected to forestall insolvency or emerge from Critical Status over a 

much longer period of time. Based on this, the Trustees have adopted the following 

reasonable measures to forestall insolvency, and/or eventually emerge from Critical 

Status which the Trustees have determined to be the most the Fund can reasonably take 

given the financial condition of the various industries in which the contributing 

employers are engaged and the need to maintain active participant support for the Plan. 

Schedule of Contribution Rate Increases and Benefit Changes 

Contribution Rate Increases for Contributing Employers 

Contribution rate increases of 45 cents per hour per year will be required for any 

collective bargaining agreement that becomes effective after September 1, 2011. All 

increases in hourly rates will be supplemental after September 1, 2011, and therefore will 

not cause any increase in future service accruals, except as provided herein. 

The impact of these increases in contribution rates will be evaluated annually and will be 

adjusted based on the financial conditions of the signatory employers and experience of 

the Fund. 

Benefit Changes for Active Participants 

The accrual rate as defined in Article III of the Plan Document after February I, 2012 

will be the lesser of 1 % of the product of ( a) the number of hours for which contributions 

are due on behalf of the participant in a Plan Credit Year and (b) the contribution rate in 

effect for his employer prior to its first contribution increase on or after September 1, 

2011 (regardless of surcharges) or the accrual rate under the plan as of September 1, 

2011. 

Non-protected and adjustable benefits for all participants and whose annuity starting date 

is on or after September 1, 2011, are eliminated as follows: 

5 
CK645

1. Those retiring on an Early Retirement Pension shall have their benefits reduced 

in accordance with Schedule B attached to this Rehabilitation Plan eliminating all 

subsidies previously afforded. 

2. All Service Pensions will no longer be available. 

3. The 60-month guarantee will no longer apply. 

4. Actuarial reduction for a Joint and Survivor Pension will reflect the elimination of 

the 60-month guarantee. The Joint and Survivor Factors set forth in Schedule C attached 

to this Rehabilitation Plan will apply. 

5. All future contribution increases after September 1,201 I will not be used towards .,,. 

the calculation of any future accruals. 

6. The Disability Pension will not be payable to anyone who bas an Annuity Starting 

Date of September 1, 2011 or later and who has not submitted a complete application, 

with all required information, prior to that date. 

7. The Death Benefit provided in Section 3 .19 of the Plan. 

8. Eliminate the Social Security Level Income Option pursuant to Section 3 .17 of 

the Plan. 

Benefit Changes for Non-active Participants 

Notwithstanding any other terms of this Rehabilitation Plan or the Schedules provided 

under it, the benefits of retired participants whose annuity starting date was before 

September 1, 2011 will not be eliminated or reduced, regardless of a subsequent 

resumption of Covered Employment. 

Participants who have terminated (or will terminate) covered service or whose annuity 

starting date is on or after September 1, 2011, will have their benefits reduced in 

accordance with the benefit changes described in this Rehabilitation Plan, effective as of 

the earliest date permitted after the provision of legally required advance notice. 

The benefits of a beneficiary (e.g. surviving spouse) or of an Alternate Payee under a 

QDRO will be determined on the same basis as those of the participant under this 

Rehabilitation Plan. 

Automatic Implementation of Schedule 

If a collective bargaining agreement providing for contributions under the Fund that was 

in effect on September 1, 2011 expires and after receiving the Rehabilitation Plan 

Schedule, the bargaining parties fail to adopt contribution terms consistent with the 

Rehabilitation Plan, Schedule A will be implemented automatically 180 days after the 

6 
CK646

date on which the collective bargaining agreement expires. Any CBA that expired prior 

to September 1, 2011 and has not been renewed with a successor agreement, will be 

considered expired as of September 1, 2011 for the sake of this paragraph. 

In the event of such automatic implementation of Schedule A, the next annual increase of 

contributions provided in Schedule A shall occur twelve (12) months after the expiration 

of the last collective bargaining agreement and NOT the anniversary date of the 

automatic implementation of Schedule A. 

In addition to the authority of the Trustees to automatically implement the provisions of 

Schedule A, the Board reserves the right to reject any collective bargaining agreement 

that is not in full compliance with this Rehabilitation Plan and/or ERISA, and thereby 

terminate participation in the Fund by that employer. 

Annual Standards for Meeting the Rehabilitation Requirements 

Based on reasonable assumptions, and implementation of the provisions of Schedule A 

hereof, the Fund is projected to emerge from critical status by September 1, 2048. The 

Trustees recognize the possibility that actual experience could be less favorable on an 

annual basis than the reasonable assumptions used for the Rehabilitation Plan. Therefore, 

the Trustees are establishing the following annual standards: 

Determination for Year Projected Credit Balance 

Ending August 31 (in millions) 

2014 $25 t---.-

2015 -2 

2016 -29 

2017 -57 

2018 -88 

2019 -119 

2020 -153 

20:21 -168 

2022 -177 

2023 -187 

2024 -196 

2025 -199 

2026 -200 

2027 -204 

2028 -205 

2029 -203 

2030 -202 

2031 -200 

2032 -1 97 

2033 -194 

2034 -189 

2035 -1 84 

7 
CK647

2036 -177 

2037 -170 

2038 -161 

2039 -151 

2040 -140 

2041 -128 

2042 -115 

2043 -101 

2044 -86 

2045 -70 

2046 -53 

2047 -35 

2048 -17 

2049 0 

Surcharges to be Included in the Calculation of Withdrawal Liability Payments 

All surcharges previously collected by the Fund from a withdrawing employer shall be 

included in the calculation of withdrawal liability payments under ERISA Section 

42 l 9(c)(l )(C) as if comprising a part of the Employer's obligation to contribute. 

Minimum Funding Deficiencies 

In the event an Employer withdraws during a Plan Year when the Fund has a minimum 

funding deficiency, the Employer shall be responsible for its pro-rata share of such 

deficiency in addition to any withdrawal liability obligation. 

Annual Updating of Rehabilitation Plan 

Each year the Fund's actuary will review and certify the status of the Fund under 

applicable ERISA and IRC funding rules and, starting with the 2013 plan year, whether 

the Fund is making the scheduled progress in meeting the requirements of the 

Rehabilitation Plan. If it is determined that it is necessary in light of updated information, 

the Trustees will revise the Rehabilitation Plan and present updated schedules to the 

bargaining parties. Notwithstanding subsequent changes in benefit and contribution 

schedules, a schedule provided by the Trustees and relied upon by the bargaining parties 

in negotiating a collective bargaining agreement shall remain in effect for the duration of 

that collective bargaining agreement. However, a collective bargaining agreement that is 

renewed or extendep will need to include terms consistent with the schedule in effect at 

the time of the renewal or extension. 

8 
CK648

SCHEDULE A 

l. Contribution Increases 

$.45 per hour in each contract year. 

2. Future Benefit Accruals 

The accrual rate as defined in Article III of the Plan Document after February 1, 

2012 will be the lesser of 1% of the product of (a) the number of hours for which 

contributions are due on behalf of a participant in a Plan Credit Year and (b) the 

contribution rate in effect for his employer prior to its first contribution increase 

(regardless of surcharges) on or after September 1, 2011 required to be made with respect 

to a participant or the accrual rate under the plan as of September 1, 2011. 

3. 

.. 

Adjustable Benefits 

• Those retiring before Early Retirement Pension shall have their benefits 

reduced in accordance with Schedule B attached to this Rehabilitation 

Plan eliminating all subsidies previously afforded. 

• AJl Service Pensions will no longer be available. 

• The 60-month guarantee will no longer apply. 

• Actuarial reduction for a Joint and Survivor Pension wilJ reflect the 

elimination of the 60-month guarantee. The Joint and Survivor Factors set 

forth in Schedule C attached to this Rehabilitation Plan will apply. 

• All future contribution increases after September 1, 2011 will not be used 

towards the caJculation of any future accruals. 

• The Disability Pension will not be payable to anyone who has an Annuity 

Starting Date of September 1, 2011 or later and who has not submitted a 

complete application, with all required information, prior to that date. 

• The Death Benefit provided in Section 3 .19 of the Plan. 

• The Social Security Level Income Option pursuant to Section 3.17 of the 

Plan is eliminated. 

9 
CK649

SCHEDULED 

Early Retirement Factors for Rehabilitation Plan 

Early retirement benefit is calculated by multiplying the Regular Pension benefit by the 

factor below corresponding with the age of a participant at Early Retirement date. 

Age Factor 

55 36.59% 

56 40.12% 

57 44.07% 

58 48.48% 

59 53.43% 

60 58.99% 

61 65.26% 

62 72.35% 

63 80.39% 

64 89.54% 

Note: Reductions for fractional ages are interpolated based on the above. 

10 
CK650

SCHEDULEC 

J&S Factors for Rehabilitation Plan 

50% joint and survivor: 

88% plus 0.4% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.4% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 

75% joint and survivor: 

83% plus 0.5% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.5% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of99%. 

c:luscrs\jr(\appdata\locallmicrosoft\windows\temporary internet files\content.outlook\tlkbol m3\plan final version 10-3-12.doc 

11 
CK651

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

ehabilitation Plan 

Background on the Pension Fund 

Local 807 Labor-Management Pension Fund (the "Fund" or the "Plan") covers Teamsters 

in a variety of industries including, but not limited to wholesale building supply 

distributors, compressed gas distributors, exposition facilitators, and public 

warehouse/distribution companies. The signatory companies in many of these industries 

have experienced declines in workforce forcing bankruptcies due to non-union 

competition, deregulation of the trucking industry, the economic condition of the country, 

downturn in construction in the greater New York City area, improvements of technology 

and outsourcing of jobs. For year ending August 31, 1993, active work for which 

employers made contributions to the Fund was 3,749,000 hours. That number declined to 

1,546,363 hours by year ending August 31, 20 I 0. As of August 31 , 1993, the Fund had 

2,120 active participants, 1, 116 inactive vested participants and 4,050 pensioners and 

beneficiaries, a ratio of 2.44 nonactive participants for every 1 active participant. By 

August 31,2010, there were only 900 active participants, 1,026 inactive vested 

participants and 3,337 pensioners and beneficiaries resulting in a ratio of 4. 85 nonactive 

participants for every I active participant. There have been a significant number of 

bankruptcies and withdrawals of contributing companies to the Fund. The ratio of actives 

to inactive participants declined fw1her in the Plan Year commencing September L 2010 

due to the downturn of the United States economy and the slumping building industry in 

the New York City area. 

The Fund's covered population also has aged over the years. The average age of active 

employees at the beginning of 2002 was 45.0 years old; that average grew to 49.1 years 

old in 2010. The average pensioner was 72.3 years old in 2002 and it was 74.9 years old 

in 2010. This leads to a small er and older workforce generating employer contributions to 

the Pension Fund for a shorter period of time to provide lifetime monthly benefits to 

pensioners and benefi ciaries who are living longer. 

Due to the stock market volatility in 2008 and 2009, the Fund experienced negative 

investment returns. In 2009 alone, the Fund experienced a negative l 8.32% return 

resulting in a loss of more than $45,000,000. 

The Trustees have sought to address these issues over recent years. To deal with the 

impact of the investment losses and other detrimental factors, the Trustees recommended 

that the bargaining parties obtain additional contri butions into the Fund. For the plan five 

years ending August 3 I, 20 10, for example, the Pension Fund contribution rates for all 

contributing Employers increased by an average of 6.5% per year. The Trustees also 

amended the Plan in September, 2001 to cap the accrual rate at the $4.315 contribution 

rate. In 20 I 0, the Trustees adopted a career average method oC calculating future accruals. 

8487521v I/0 1544.00 I 
CK652

equating such accruals on a more reasonable basis to contributions, all in an effort to 

better fund the Plan. 

The significant investment loss of 2008, coupled with the cash flow issues related to the 

reduction in active participants, has led the Fund to a position of probable insolvency, or 

at best, a significantly longer period of time to emerge from Critical Status than required 

by ERISA § 305. 

Rehabilitation Plan Development 

Section 305 of the Employee Retirement Income Security Act (ERISA) and Section 432 

of the Internal Revenue Code (IRC), as added by the Pension Protection Act of 2006 

("PPA"), require the Trustees of a multiemployer pension fund that has been certified by 

its actuary as being in Critical Status (also known as the "Red Zone") to develop a 

Rehabilitation Plan. Generally, the Rehabilitation Plan should enable a fund to cease to 

be in Critical Status by the end of the Rehabilitation Period. However, if the Trustees 

determine, based upon the exhaustion of all reasonable measures that a fund cannot 

reasonably be expected to emerge by the end of the Rehabilitation Period, the 

Rehabilitation Plan should be designed to enable the fund to cease to be in Critical Status 

at a later date if possible, or to forestall possible insolvency. The Rehabilitation Plan must 

be based on reasonably anticipated experience and on reasonable actuarial assumptions, 

and may adopt such reasonable measures as the Trustees deem necessary. 

On November 29, 20 I 0, the Fund was certified by its actuaries to be in Critical Status for 

the Plan Year beginning September 1, 2010. As required by law, the Board of Trustees 

forwarded a Notice of Critical Status ("Notice") to the Teamsters Local Union No. 807 

(the "Union") and the employers contributing to the Fund ("Employers") (referred to 

collectively as the "bargaining parties"), participants, beneficiaries, the Pension Benefit 

Guaranty Corporation and the Department of Labor. The Notice advised that (I) the Fund 

is in Critical Status for the 2010 Plan Year; (2) all of the adjustable benefits supported 

under the Plan could be eliminated or reduced pursuant to a Rehabilitation Plan; (3) any 

reductions pursuant to the Rehabilitation Plan would apply only to pm1icipants and 

beneficiaries whose benefit commencement date is after December 27, 2010; and (4) 

Employers are obligated to pay a 5% contribution surcharge to the Fund, for work 

performed on and after January 26, 2011. The 5% surcharge will increase to I 0% 

beginning with contributions received on or after September 1, 2011 and will continue 

until the earli er of (1) the date the Fund emerges from Critical Status; (2) the effective 

date of a collective bargaining agreement ("CBA") that is in compliance with this 

Rehabilitation Plan; or (3) the date the contribution increases described below become 

effective with respect to an Employer because the bargaining pa11ies fail to adopt a CBA 

in compliance with the Rehabilitation Plan within the time period required by Section 

305(e)(C)(ii) of ERISA. The surcharges will continue until the CBA is signed, and the 

required increase in contributions will be retroactive to the date the CBA is effective. 

The schedule of contribution increases and benefit reductions attached to this 

Rehabilitation Plan (Schedule "A") and embodied herein will be provided to the 

8487521v I/01544 .00 I 2 
CK653

bargaining parties no later than the thirtieth day after the Board of Trustees adopt this 

Rehabilitation Plan. Any new CBA entered into by the bargaining parties or any other 

agreement calling for partici pation in the Fund after it is so provided must reflect the 

terms of the most recently issued Schedule A. If the bargaining parties cannot reach an 

agreement concerning the adoption of Schedule A, Schedule A is to be treated as the 

Default Schedule and will become effective on the date specified in ERISA Section 

305( e)(3)(C)(ii). In the case of an Employer that contributes to the Fund only with respect 

to employees not covered by a CBA, that Employer's agreement with the Fund providing 

for contributions to the Fund will be treated as a CBA that expires on August 3 1, 20 11. 

The Board of Trustees will review the Fund's Rehabilitation Plan annually and will 

update the Rehabilitation Plan as required by law. In addition, the Board of Trustees will 

continue to consider all options available to the Fund, including but not limited to 

reducing Fund expenditures, taking advantage of any changes in law, or exploring a 

merger with another plan. The Board of Trustees has the sole discretion to amend and 

construe this Rehabilitation Plan. 

This Rehabilitation Plan: 

I. specifies the Rehabilitation Period; 

2. describes alternatives the Trustees considered when preparing the Rehabilitation 

Plan; 

3. explains why the Trustees concluded that there are no reasonable measures that 

would enable the Plan to emerge from Critical Status in the time frame prescribed by 

ERISA § 305; 

4. includes remedies and a schedule of benefits and contributions (Schedule A) that 

are projected to enable the Fund to postpone the projected date of insolvency and/or 

cause the Fund to emerge from Critical Status; 

5. explains that the Default Schedule wi ll be put into effect automatically if the 

bargaining parties do not agree on an acceptable schedule in a timely manner; and. 

6. sets out the annual standard to be achieved under the Rehabilitation Plan and 

explains that the Rehabilitation Plan will be updated from time to time. 

Rehabilitation Period 

The Fund 's Rehabi litation Period begins on September I. 201 3 and ends on August 31 . 

204P 

84875:2 1 ,. 1/0 I 544.00 I ,.., 

.) 
CK654

Rehabilitation Plan Standard 

The Fund 's Board of Trul8tees has determined that based on reasonable actuarial 

assumptions, and upon exhaustion of all reasonable measures, the Fund cannot be 

reasonably expected to emerge from Critical Status within the time frame prescribed by 

ERISA § 305 (the "Prescribed Period"). Accordingly, pursuant to ERISA Section 

305(e)(3)(A)(ii), the Board of Trustees is adopting reasonable measures in this 

Rehabilitation Plan to forestall insolvency (as defined by ERISA Section 4245) and/or 

emerge from Critical Status over a projected period of time. 

The Board of Trustees considered a number of actions, options, and alternatives that 

might pem1it the Fund to emerge from Critical Status by the end of the Prescribed Period. 

The Trustees have determined the remedies necessary for such a result as being 

unreasonable measures that would be untenable or counter productive and adverse to the 

Fund and its participants. The remedies considered included the following: 

• 

• The Fund's actuary projected that if there were no changes to the Plan's current 

Rehabilitation schedule of benefits, i.e., accrual rates at the minimum level 

allowed by law in a default schedule (the equivalent of I% of contributions), all 

adjustable benefits are eliminated and a[l future contribution increases are 

supplemental (meaning that the increased rates do not increase the future credit 

multiplier in the Plan), Employers would need to increase their current 

contribution rates by at least $0. 75 each year, from the start of the next collective 

bargaining agreement through September 1, 2048 to emerge from critical status. 

This means the current $5.4022 average contribution rate would need to increase 

to an average of $29.00 per hour by the end the Rehabilitation Period. 

The Trustees concluded that there are no reasonable measures that will enable the Plan to 

emerge from Critical Status in the Prescribed Period for the following reasons: 

• The Trustees noted that the final contribution rates needed to emerge from critical 

status by September l , 2048 were more than the current hourly ~--age rates for the 

majority of the participants in th is Fund. Even higher final rates would be needed 

to emerge from critical status at a later date. 

• The Trustees noted that a complete freeze of future benefit accruals would 

provide little incentive for participants to suppo1i contribution rate increases, 

especiall y since those increases would need to be financed by reductions in health 

fund contributions and wages. 

• The Trustees noted the financial pressure on current contributing Employers, and 

how any significant increases in future contributions would put the operation of 

these companies in question, thus j eopardizing the future contribution source of 

the Fund. Significant increases would likely result in withdrawals ot· contributing 

Employers requiring even larger and more unreasonable contribution rate 

increases from any remaining contributing Employers to enable the Plan to 

emerge from Critical Status. 
CK655

Trustee-Approved Rehabilitation Plan Remedies 

The Board of Trustees concluded that annual contribution rate increases in excess of 

those called for under-Schedule A were not reasonable and could trigger a mass 

withdrawal and significant losses to-the Fund and its participants. Therefore, the Trustees 

concluded that contributions required to ever emerge from Critical Status within the time 

frame prescribed by ERISA would be unreasonable and the Rehabilitation Plan could 

only reasonably be expected to forestall insolvency or emerge from Critical Status over a 

much longer period of time. Based on this, the Trustees have adopted the following 

reasonable measures to forestall insolvency, and/or eventually emerge from Critical 

Status which the Trustees have determined to be the most the Fund can reasonably take 

given the financia l condition of the various industries in which the contributing 

employers are engaged and the need to maintain active participant support for the Plan. 

Schedule of Contribution Rate Increases and Benefit Changes 

Contribution Rate Increases for Contributing Employers 

Contribution rate increases of $0.45 per hour per year will be required for any collective 

bargaining agreement that becomes effective after September 1, 2011. All increases in 

hourly rates will be supplemental after September 1, 2011 , and therefore will not cause 

any increase in future service accruals, except as provided herein. 

The impact of these increases in contribution rates will be evaluated annually and will be 

adjusted based on the financial conditions of the signatory employers and experience of 

the Fund. 

Benefit Changes for Active Participants 

The accrual rate as defined in Article III of the Plan Document aft er February 1, 2012 

will be the lesser of 1 % of the product of (a) the number of hours for which contributions 

are due on behalf of the pa11icipant in a Plan Credit Year and (b) the contribution rate in 

effect for his employer prior to its first contribution increase on or after September 1, 

20 1 1 (regardless of surcharges) or the accrual rate under the plan as of September 1, 

20 11. 

Non-protected and adjustable benefits for all participants and whose annuity starting date 

is on or after September 1, 2011 , are eliminated as follows: 

1. Those retiring on an Early Retirement Pension shall have their benefits reduced in 

accordance with Schedule B attached to this Rehabilitation Plan eliminating all 

subsidies previously afforded. 

2. All Service Pensions will no longer be available. 

848752 Iv 1/0 1544.00 I 5 
CK656

3. The 60-month guarantee will no longer apply. 

4. Actuarial reduction fo r a Joint and Survivor Pension will reflect the elimination of 

the 60-month guarantee. The Joint and Survivor Factors set forth in Schedule C 

attached to this Rehabilitation Plan will apply. 

5. All future contribution increases after September 1, 2011 will not be used towards 

the calculation of any future accruals. 

6. The Disability Pension will not be payable to anyone who has an Annuity Starting 

Date of September 1, 2011 or later and who has not submitted a complete 

application, with all required infonnation, prior to that date. 

7. The Death Benefit provided in Section 3 .19 of the Plan. 

8. Eliminate the Social Security Level Income Option pursuant to Section 3.17 of 

the Plan. 

Benefit Changes for Non-active Pa1ticipants 

Notwithstanding any other terms of this Rehabilitation Plan or the Schedules provided 

under it, the benefits of retired participants whose annuity staiting date was before 

September 1, 201 1 will not be eliminated or reduced, regardless of a subsequent 

resumption of Covered Employment. 

Participants who have terminated (or will terminate) covered service or whose annuity 

starting date is on or after September 1, 2011, will have their benefits reduced in 

accordance with the benefit changes described in this Rehabilitation Plan, effective as of 

the earliest date permitted after the provision of legally required advance notice. 

The benefits of a beneficiary ( e.g. surviving spouse) or of an Alternate Payee under a 

QDRO will be determined on the same basis as those of the participant under this 

Rehabilitation Plan. 

Automatic Implementation of Schedule 

If a collective bargaining agreement providing for contributions under the Fund that was 

in effect on September I, 2011 expires and after receiving the Rehabilitation Plan 

Schedule, the bargaining parties fail to adopt contribution terms consistent with the . 

Rehabilitation Plan, Schedule A will be implemented automatically 180 days after the 

date on which the collective bargaining agreement expires. Any CBA that expired prior 

to September 1, 2011 and has not been renewed with a successor agreement, wil I be 

considered expired as of September 1, 2011 for the sake of this paragraph. 

In the event of such automatic implementation of Schedule A, the next annual increase of 

contributions provided in Schedule A shall occur twelve (1 2) months after the expiration 

848752Iv1 /01544.001 6 
CK657

of the last collective bargaining agreement and NOT the anniversary date of the 

automatic implementation of Schedule A. 

In addition to the authority of the Trustees to automatically implement the provisions of 

Schedule A, the Board reserves the right to reject any collective bargaining agreement 

that is not in full compliance with this Rehabilitation Plan and/or ERISA, and thereby 

terminate participation in the Fund by that employer. 

Annual Standards for Meeting the Rehabilitation Requirements 

Prior to the adoption of the measures outlined in this Rehabilitation Plan, and based on 

reasonable assumptions, the Fund was proj ected to become insolvent during the plan year 

ending August 3 1, 2026. This Rehabilitation Plan is expected to delay the projected 

insolvency date by seven years to the plan year ending August 31, 2033, based on 

reasonable assumptions. 

The point of projected insolvency will vary each year as actual experience differs from 

the assumptions. The Trustees recognize the possibility that actual experience could be 

less favorable on an annual basis than the reasonable assumptions used for the 

Rehabilitation Plan. Consequently, the annual standard for meeting the requirements of 

this Rehabilitation Plan is for updated actuarial projections each year to show, based on 

reasonable assumptions, that under the Rehabilitation Plan (as amended from time to 

time) the Fund will not be expected to become insolvent before 2026. 

Surcharges to be Included in the Calculation of Withdrawal Liability Payments 

Only surcharges accrued for plan years beginning before December 3 1, 20 14, according 

to Section 109 of the Multiemployer Pension Reform Act of 2014, collected by the Fund 

from a withdrawing employer shall be included in the calculation of withdrawal liability 

payments under ERJSA Section 42 l 9(c)(l )(C) as if comprising a part of the Employer's 

obligation to contribute. 

Annual Updating of Rehabilitation Plan 

Each year the Fund's actuary will review and certify the status of the Fund under 

,, 

applicable ER.ISA and IRC funding rules and whether the Fund is making the scheduled \ ' 

progress in meeting the requirements of the Rehabi litation Plan. If the Trustees determinJ 

that it is necessary in light of updated information, the Trustees \Viii revise the 

Rehabilitation Plan and present updated schedules to the bargaining parties. 

Notwithstanding subsequent changes in benefit and contribution schedules, a schedule 

provided by the Trustees and relied upon by the bargaining parties in negotiating a 

col lective bargaining agreement shall remain in effect for the duration of that col lective 

bargaining agreement. However, a collective bargaining agreement that is renewed or 

extended will need to include terms consistent with the schedule in effect at the time or 

the renewal or extension. 

n ' n ... . - .... I ' '" • • - I j i\ A I .., 

. ._ 
CK658

SCHEDULE A 

1. Contribution Increases 

$.45 per hour in each contract year. 

2. Future Benefit Accruals 

The accrual rate as defined in Article III of the Plan Document after February l, 

2012 will be the lesser of 1 % of the product of (a) the number of hours for which 

contributions are due on behalf of a participant in a Plan Credit Year and (b) the 

contribution rate in effect for his employer prior to its first contribution increase 

(regardless of surcharges) on or after September 1, 2011 required to be made with respect 

to a participant or the accrnal rate under the plan as of September 1, 2011. 

3. Adjustable Benefits 

• Those retiring before Early Retirement Pension shall have their benefits 

reduced in accordance with Appendix A attached to this Rehabilitation 

Plan eliminating all subsidies previously afforded. 

• All Service Pensions will no longer be available. 

• The 60-month guarantee will no longer apply. 

• Actuarial reduction for a Joint and Survivor Pension will reflect the 

elimination of the 60-month guarantee. The Joint and Survivor Factors set 

forth in Appendix B attached to this Rehabilitation Plan will apply. 

• All future contribution increases after September 1, 2011 will not be used 

towards the calculation of any future accruals. 

• The Disability Pension will not be payable to anyone who has an Annuity 

Starting Date of September 1, 2011 or later and who has not submitted a 

complete application, with all required information, prior to that date. 

• The Death Benefit provided in Section 3. 19 of the Plan. 

• The Social Security Level Income Option pursuant to Section 3.17 of the 

Plan is eliminated. 

848752 1v1/0 1544.00 I 8 
CK659

APPENDIX A 

Earlv Retirement Factors for Rehabilitation Plan 

Early re_tirement benefit is calculated by multiplying the Regula·;. Pension benefit by the 

factor below corresponding with the age of a participant at Early Retirement date. 

Age Factor 

55 36.59% 

56 40.12% 

57 44.07% 

58 48.48% 

59 53.43% 

60 58.99% 

61 65.26% 

62 72.35% 

63 80.39% 

64 89.54% 

Note: Reductions for fractional ages are interpolated based on the above. 

848752 1 v l/01544.00 I 9 
CK660

APPENDIXB 

J&S Factors for Rehabilitation Plan 

- 50% joint and survivor: 

88% plus 0.4% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.4% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 

75% joint and survivor: 

83% plus 0.5% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.5% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 

8487521 v 1/0 I 544.00 I 10 
CK661

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

Third Amended Rehabilitation Plan 

Background on the Pension Fund 

Local 807 Labor-Management Pension fund (the "Fund" or the "Plan") covers Teamsters 

in a variety of industries including, but not limited to wholesale building supply 

distributors, compressed gas distributors~ exposition facilitators, and public 

warehouse/distribution companies. The signaLory companies in many of these industries 

have experienced declines in workforce forcing bankruptcies due to non-union 

competition, deregulation of the trucking industry, the economic condition of the country, 

dovmtum in construction in the greater New York City area, improvements of technology 

and outsourcing of jobs. For year ending August 31, 1993, active work for ,vhich 

employers made contributions to the Fund was 3,749,000 hours. That number declined to 

1,546,363 hours by year ending August 31. 20 l 0. As of J\ugust 31, 1993, the Fund had 

2,120 active participants, l, 11 6 inactive vested participanls and 4,050 pensioners and 

beneficiaries, a ratio of 2.44 nonactive participant~ for every I active participant. By 

August 3 I, 2017, there were only 692 active parlkipants, 919 inactive vested participants 

and 2,860 pensioners and beneficiaries in pay status resulting in a ratio of 5.46 nonactive 

participants for every 1 active participant. There have been a significant number of 

wilhdrawals of contributing companies to the Fund. 

The Fund's covered population also has aged over the years. The average age of active 

employees at the beginning of 2002 was 45.0 years old; that average grew to 49. l years 

old in 2010. The average age of active employees al the beginning of the September 1, 

2017 Plan Y car was 50.3 years old. The average pensioner was 72.3 yea~ old in 2002 

and it was 76.9 years old in 2017. This leads lo a smaller and older worHorce generating 

employer contributions to the Pension Fund for a shorter period of lime to provide 

lifetime monthly benefits to pensioners and beneficiaries who are living longer. 

Due to the stock market volatility in 2008 and 2009, the Fund experienced ncgativt: 

invcstmtnl returns. In 2009 alone, the Fund experienced a negative I 8.32% retum 

resulting in a loss of more than $45,000,000. 

T11e Trustees have sought to address these issues over recent years. To deal with the 

impact of the investment losses and other detrimental factors, the Trustees recommended 

that the bargaining parties obtain additional contributions inlo lht: Fund. Por the plan five 

years ending August 31 , 2010, for example, the Pension Fund contribution rates for all 

contributing Employers increased by an average of 6.5% pe::r year. The Trustees also 

amended the Plan in September, 2001 to cap the accrual race at the $4.315 contribution 

rate. In 2010, lh~ Trustees adopted a career average method of calculating future accruals, 

equating such accruals on a more reasonable basis to contributions, all in an effort to 

hetter fund the Plan. 

!!487521 vl/0 l 544.00 I 
CK662

The significant investment loss of 2008, coupled \\'1th the cash tlow issues related to the 

reduction in active participants, has led the Fund to a position of prohable insolvency, or 

at best, a significantly longer period of time to emerge from Critical Status than required 

by ER ISA § 305. 

Rehabilitation Plan Development 

Section 305 of the Employee Retirement Income Security Act (ERISA) and Section 432 

of the Internal Revenue Code (IRC), as added by the Pension Protection Act of 2006 

("PPA''), require the Trustees of a multiemployer pension fund that ha<; heen certified by 

its actuary as being in Critical Status (also k.nO\.\'Il as the ''Red Zone'') tu develop a 

Rehabilitation Plan. Generally, the Rehabilitation Plan should enable a fund to cease to 

be in Critical Status by the end of the Rehabilitation Period. However, if the Trustees 

determine, based upon the exhaustion of all reasonable measures that a fund cannot 

reasonably be expected to emerge by the end of the Rehabilitation Period, the 

Rehabilitation Plan should be designed to enable the fund to cease to be in Critical Status 

at a later date if pos$ihle. or to forestall possible insolvency. The Rehabilitation Plan must 

be based on reasonably anticipated experience and on reasonable actuarial assumptions, 

and may adopt such reasonahle measures as the Trustees deem necessary. 

On November 29, 20 l 0, the Fund was certified by its actuaries to be in Critical Status for 

the Plan Year beginning September 1, 2010. As required by law, the Board of Trustees 

forwarded a Notice of Critical Status ("Notice") to the Teamsters Local Union No. 807 

(the "Union") and the employers contributing to the Fund ("Employers") (referred to 

collectively as the "bargaining parties''), participants, beneficiaries, the Pension Benefit 

Guaranty Corporation and the Department of Labor. ·1bc Notice advised that ( 1) the Fund 

is in Critical Status for ilie 2010 Plan Year; (2) all of the adju~table benefits supported 

under the Plan could be eliminated or reduced pursuant to a Rehabilitation Pl an; (3) any 

reductions pursuant to the Rehabilitation Plan would apply only to pnrticipants and 

beneficiaries whose benefit commencement date is after December 27, 201 O; and (4) 

Employers are obligated to pay a 5% contribution surcharge to the Fund, for work 

performed on and after January 26, 2011 , The 5% surcharge will increa!ie to 10% 

beginning with contributions received on or a1h:r September l, 2011 and wiH continue 

until the earlier of ( 1) the date the Fund emerges from Critical Status; (2) the effective 

dnte of a collective bargaining agreement ("CBA") that is in compliance with this 

Rehabilitation Plan; ur (3) lhc date the contribution increases described helow become 

effective with respect to nn F.mployer because the bargaining parties fail to adopt a CSA 

in compliance with the Rehabilitation Plan within the time period required by Section 

305(e)(C)(ii) of ERISA. The surcharges v.ill continue unti1 the CBA is signed, and the 

required increase in contributions \.\'ill bt: retroactive to the date the CHA is effective. 

The schedule of contribution increases and benefit reduc.:liuas attached to this 

Rehabilitation Plan (Schedule ''A") and embodied herein will be provided to the 

bargaining parties no later than the thirtieth day after the Board of Trustees adopt lhis 

Rehabilitation Plan. Any new CBA entered into by the bargaining parties or any other 

agreement calling for participation in the found after it is so provided must reilect the 

848752 lvl/OI H4.001 2 
CK663

terms of the mo!il recently issued Schedule A. Tf the bargaining parties cannot reach an 

agreement concerning the adoption of Schedule A, Schedule A is tn be treated as the 

Default Schedule and will become effective on the date specified in ERISA Section 

305(c)(3)(C)(ii). In the case of an Employer that contrihutes to the Fund only v,ith respect 

to employees not covered by a CBA, that Employer's agreement with the Fund providing 

for contribution~ to the Fund will be treated as a CBA that expires on August 3 J, 2011 . 

The Boa.rd of Trustees will review the Fund's Rehabilitation Plan annually and will 

update the Rehabilitation Plan as required by law. In addition, the Board of Trustees will 

continue to consider all options available to the fund, including but not limited to 

reducing Fund expenditures> taking advantage of any changes in law, or exploring a 

merger with another plan. The Doard of Trustees has the sole discretion to amend and 

construe this Rehabilitation Plan. 

This Rehabilitation Plan: 

l. specifies the Rehabilitation Period; 

2. descrihes alternatives the Trustees corni<lered when preparing the Rehabilitation 

Plan; 

3. explains why the Trustees concluded that there are no reasonable measures that 

would enable the Plan to emerge from Critical Status in the time frame prescribed by 

ERISA § 305; 

4. includes remedies and a schedule of benefits and contributions (Schedule A) that 

are projected to enable the Fund to postpone the projected date of insolvency and/or 

cause the Fund to emerge from Critical Status; 

5. explains that lhe Dtefault Schedule will be put into effect automatically if the 

bargaining parties do not agree on an acceptable schedule in a timely manner; and 

6. set<; out the annual standard to be achieved under the Rehabilitation Plan and 

explains that the Rehabilitarion Plan will be updated from time to Lime. 

Rehabilitation Period 

The Fund's Rehabilitation Period begins on September 1, 2013 and ends on August 3 1, 

2048. 

M4!17521 vl:01544.00 I 3 
CK664

RehabiHtation Plan Standard 

The Fund's Board of Trustees has detennined that based on reasonable actuarial 

assumptions, and upon exhausliun of all reasonable meac;ures, the Fund cannot be 

reasonably expected to emerge from Critical Status within the time frame prescribed by 

ERISA § 305 (the "Prescribed Period"). Accordingly, pursuant to ERJSA Section 

30S(c){3)(A)(ii), the Board of Trustees is adopting reasonable measures in this 

Rehabilitation Plan to forestall insolvency (as defined by ERISA Section 4245) and/or 

emerge from Critical Statu.<i over a projected period of time. 

The Board of Trustees considered a nwnber of actions, options, arn.l alternatives that 

might permit the fund lo emerge from Critical Status hy the end of the Prescribed Period. 

The Trustees have determined the remedies necessary for such a result as being 

unreasonable measures that would be untenable or counter productive and adverse to the 

Fund and its participants. Tl,e remedies considered included the following: 

• The Fund's actuary projected that if there were no changes to the Plan's current 

Rehabilitation schedule of henelils, i.e., accrual rates at the minimum level 

allowed by law in a default schedule (the equivalent of 1 % of contributions), all 

adjustable benefits are eliminated and all future contribution increases arc 

supplemental (meaning that the increased rates do not increase the future credit 

multiplier in the Plan), Employers would need to increase their current 

contribution rates by at least $1.20 ~h year, from the start of the next collective 

bargaining agreement through September 1, 2048, the end of the Rehabilitation 

Period, to emerge from critical status. This means the current $6.94 average 

hourly contribution rate would need to increase by S l .20 per year in order to 

emerge from critical status by the end the Rehabilitation Period. At the end of the 

Rehabilitation Period, the average hourly contribution rc1te would be $42.94 per 

hour. 

The Trustees concluded that there are no reasonab]e measures that will enable the Plan to 

emerge from Critical Status in the Prescribed Period for the following reasons: 

• The Trustees noted that the final conlribution rates needed to emerge from critical 

status by Septembe r 1, 2048 were more than the current hourly wage rates for the 

majority of the participants in this Fund. Even higher final rates would be needed 

to emerge from critical status at u later date. 

• The Trustees noted that a complete freeze of future benefit accruals would 

provide little inccntiv<:. for participants to support contribution rate increase~, 

especially since those increases would need lo be financed by reductions in heolth 

fund contributions and wages. 

• The Trustees noted the financial pressure on current contributing Employer!., and 

how any significant increases in foLur~ contributions would put tJ1e operation or 

these companies in question, thus jeopardizing the future contribution source of 

the Fund. Significant increases would likely result in withdrawals ofcontributing 

Employers requiring even larger and more unreasonable contribution rate 

8487521" 1/0( 544.001 4 
CK665

increases from any remaining conlributing Employers to enable the Plan to 

emerge from Critical Status. 

Trustee-Approved Rehabilitation Plan Remedies 

The Board of Trustees cnncluded that annual contribution rate increases in excess of 

those called for under Sche-dule A were not reasonable and could trigger a mass 

withdrawal and significant losses to the Fund and its participants. Therefore, the Trustees 

concluded that contributions required to ever emerge from Critical Status within the time 

frame prescribed by ERISA would be unreasonable and the Rehabilitation Plan could 

only reasonably be expected to forestall insolvency or emerge from Critical Status ov-.,-r a 

much longer period or time. Based on this, the Trustees have adopted the following 

reasonable measures to forestall in£olvency, and/or eventually emerge from Critical 

Status which the Trustees have determined to be the most the Fund can reasonably take 

given the financial condition of the various industries in which the c-0ntributing 

employers arc engaged and Lhe need to maintain active participant suppon for the Plan. 

Schedule of Contribution Rate Increases and Benefit Chane;es 

Contribution Rate Increases for Contributing Employers 

Contribution rate increases of $0.45 per hour per year will be re;;q uiroo for any collective 

bargaining agreement Lhal becomes effective after September 1, 2011. 

Contribution rate increases of $0.39 per hour per year w:ilJ be required for any collective 

bargaining agreement that becomes cilective on or after June 1, 2018, capped at thirty 

(30) increases. 

All increases in hourly Tates \"ill be supplemental after September 1, 201 I, and therefore 

will not cause any im1ease .- in future service accruals, except as provided herein. 

The impact of these increases in contribution rates will be evaluated annually and will be 

adjusted based on the financial conditions orthe signatory employers and experience of 

the Fund. 

Benefit Changes for Active Participants 

For service on or after February 1, 2012, the accrual rate is the lesser of: (a) one percent 

(1%) of the product of the number of hours which contributions arc due on behalf of the 

Participant in a credit yeru- and the contribution rc.te in effect for his employer prior to its 

first contribution in1.:rease on or before September 1, 2011 (regardless of surcharge) or (b) 

the accrual rate under the Plan as of September 1, 20 l 1. 

ij48752 lvl/O 1544.001 5 
CK666

Non-prote-eted and adjustable benefits for all participants and whose annuity starting date 

is on or after September l, 2011, arc eliminated a~ follows: 

I. Those retiring on an Early Retirement Pension shall have their benefits reduced in 

accordance with Schedule B attached to this Rehabilitation Plan eliminating all 

subsidies previously afforded. 

2, All Service Pensions will no longer be available. 

3. The 60-monlh guarantee will no longer apply. 

4. Actuarial reduction for a Jotnt and Survivor Pension will reflect the elimination of 

the 60-month guarantee. The Joint and Survivor Factors set forth in Schedule C 

atlat:hed to this Rehabilitation Plan v.ill apply. 

5. AU future contribution increases after September 1, 20 I I will not be used towards 

the calculation of any future accruals. 

6. The Disability Pc:nsLon will not be payable to anyone who has an Annuity Staning 

Date of September I, 2011 or later and who has not submitted a <.:omplete 

application, with all required information, prior to that date. 

7. The Death Benefit provided in Section 3. I 9 of the Plan. 

8. Eliminate the Social Security Level Income Option pursuant to Section 3.17 of 

the Plan. 

Benefit Changes for Non-active Participants 

Notwithstanding any other terms of this Rehabilitation Plan or the Schedules provided 

under it, the benefits of retired participants whust: annuity starting date \Vas before 

September l, 2011 will not he eliminated or reduced, regardless of a subsequent 

resumption of Covered Employment. 

Participants who have lenninaled (or will terminate) covered service or whose annuity 

starting date is on or after September 1, 2011, will have their benefits reduced in 

accordant:e with the benefit changes described in this Rehabilitation Plan, cffectivr:: a.s of 

the earliest date pennitted after the provision of kgally required advance notice. 

The benefits of a beneficiary (e.g. surviving spouse) or of an Alternate Payee under a 

QDRO will be determined on the same basis as those of the participant under this 

Rehabilitation Plan. 

Automatic Implementation of Schedule 

8487521 ~·J/01544.00 I 6 
CK667

If a collccti ve bargaining agreement providing for contributions under the Fund that was 

in effect on September 1, 2011 expires and after receiving the Rehabilitation Plan 

Schedule, the bargaining parties foil to adopt contribution terms consistent with the 

Rehabilitation Plan, Schedule A will be implemented automatically 180 days after the 

date on which the collective bargaining agreement expires. Any CBA that expired prior 

to September 1, 20 I 1 and has not been renewed with a successor agreement, will be 

considered expired as of September 1, 201 t for the sake of this paragraph. 

In the event of such automatic implementation of Schedule A, the next annual increase of 

contributions provided in Schedule A shall occur twelve (12) months after the expiration 

of the last collective bargaining agreement and NOT the anniversary date of the 

automatic implementation of Schedule A. 

In addition to the authority of the Trustees lo automatically implement the provisions of 

Schedule A, the Board reserves the right to reject any collective bargaining agreement 

that is not in full compliance with this Rehabilitation Plan and/or ERIS/\, and thereby 

terminate participation in the Fund by that employer. 

Annual Standards for Meeting the Rehabilitation Requirements 

Prior to the adoption of the measures outlined in this Rehabilitation Plan, and ba,;ed on 

reasonable assumptions, the Fund was projected to become insolvent during the plan year 

ending August 31, 2026. This Rehabilitation Plan is expected to delay the projected 

insolvency date by seven years to the plan year ending August 31, 2033, based on 

reasonable assumptions. 

The point of projected insolvency will vary each year as actual experience differs from 

the assumptions. The Trustees recognize the possibility that actual experience could be 

less favorahle on an annual basis than the reasonable assumptions used for the 

RchabiliLalion Plan. Consequently, the annuaJ standard for meeting the requirements of 

this Rehabilitation Plan is for updated actuarial projections each year to show, based on 

reasonable assumptions, that under the Rehabilitation Plan (as amended from time to 

time) the Fund v.•iJ] not be expected to become insolvent before 2026. 

Surcharges to be lnclutletl in the Calc:ulation of Withdrawal Liability Payment5 

Only surcharges accrued for plan years beginning before December 31, 2014. according 

to Section 109 of the Multiemployer Pension Reform Act of 2014, collected by the Fund 

from a withdrnwing employer shall be included in the calculation of withdrawal liability 

payments under ERISA Section 4219(c)(l)(C) as if comprising a part of the Employer's 

obligation to contribute. 

Annual Updating of Rehabilitation Plan 

Each year the Fund's actuary will review and certify the status of the fund under 

applicable ERISA and lRC funding rules and \.vhether the Fund is making lhe scheduled 

8487521v1/01544.00 I 7 
CK668

progress in meeting the requirements of the Rehabilitation Plan. If the Tru~tees detennine 

that it is necessary in light of updated infonnation, the Trustees will revise the 

Rehabilitation Plan and present updated schedules to the bargaining parties. 

Notwithstanding subsequent changes in benefit and contribution schedules, a schedule 

provided by the Trustees nnd relied upon by the bargaining parties in negotiating a 

collective bargaining agreement shall remain in effect for the duration of that collective 

bargaining agreement. Hov,;ever, a collective bargaining agreement that is renewed or 

extended will need to include terms consistent with the schedule in effect at the time of 

the renewal or extension. 

848752 l vl :01544.00 l 8 
CK669

I. 

2. 

SCHEDULE A 

Contribution Increases 

$.39 per hour in each contract year. 

Future Benefit Accruals 

For service on or atkr .February l, 2012, the accrual rate as defined in Article ll1 

of the Plan Document is the lesser of: (a) one percent (1 %) of the product of the number 

of hours which contributions are due on behalf of the Participant in a credit year and the 

conlribution rate in effect for his employer prior to its first contribution increase on or 

before September l, 20 I 1 (regardless of surcharge) on Scptem her 1, 2011, or (b) the 

accrual rate under the Plan as of September I, 20 I l. 

3. Adjustable Benefits 

• Those retiring before Early Retirement Pension shall have their benefits 

reduced in accordance with Appendix: A attached to this Rehabilitation 

Plan eliminating nil subsidies previously afforded. 

• All Service Pensions will no longer be available, 

• The 60-month guarantee will no longer apply. 

• Actuarial reduction for a Joint and Survivor Pension will reflect the 

elimination of the 60-month guarantee. The Joint and Survivor Factors seL 

forth in Appendix B attached to this Rehabilitation Plan wiil apply. 

• All future contribution increases after September 1, 2011 will not be used 

towards the calculation of any future accruals. 

• The DisabiliLy Pension will not be payable to anyone who has an Annuity 

Starting Date of September 1 ~ 2011 or later and who has not submitted a 

complete application, with all required informalion, prior to that date. 

• The Death Benefit provided in Section 3.19 of the Plan. 

• The Social Security Level lncome Option pursuant to Section 3 .17 of the 

Plan is eliminated. 

848752 l vl/Ol 544.001 9 
CK670

APPENDIX A 

Early Retirement Factors for Rehabilitation Plan 

Early retirement benefit is calcu1ated by multiplying the Regular Pension henefit hy the 

factor below corresponding with the age of a participant at Eady Retirement date. 

Age Factor 

55 36.59% 

56 40.12% 

57 44.07% 

58 48.48% 

59 53.43% 

60 58.99% 

61 65.26% 

62 72.35% 

63 80.39% 

64 89.54% 

Nole: Reductions for fractional ages are interpolated based on the above. 

848752 lvl/Ol 544.00I JO 
CK671

APPENDIX H 

J&S Factors for Rehabilitation Plan 

50% joint and survivor: 

88% plus 0.4% for each foll year that the spouse's age is greater than the Participant's 

age or minus 0.4% for each full year that the spouse's age is less than the Participant's 

age wilh a ma.-ximum factor of 99%. 

75% joint and survivor: 

83% plus 0.5% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.5% for each full yc-ar that the spouse's age is less than the Participant's 

age with a maximum factor of99%. 

8487521 vl/01544,00 I 11 
Resolution 

To Adopt Third Amended Rehabilitation Plan of the 

Local 807 Labor-Management Pension Fund 

Whereas, the enrolled actuary of the Local 807 Labor-Management Pension fund 

(Fund) certified the Fund to be in Crili<.:al St<ttus for the Plan ·Year beginning September 

1, 2011 pursuant to Section 305 or thr;: Empluyet: Rctiremenc Income Security Act 

(ERISA} and Section 432 of the Internal Revenue Code (IRC), as amended by the 

Pension Protection Act of 2006 (PP A). 

Whereas, the ERISA section 305 and Internal Revenue Code section 432 require 

pension plans in Critical St~lus to adopt a Rehabilitation Plan; and 

Wlicrcas, tht.' Buar<.l of Trustees adopted a Third Amended Relrnhilitation Plan at 

their meeting orMay 22, 2018; and 

Now, Therefore, \.VC, the Board of Trustees of the Local 807 Labor-Managt:mi:nl 

Pen~ion rund, hereby adopl the attached Rehabilitation Plan and aulhori:i'.e tht Fund 

Manager to mail a copy of the Schedule to nil contributing ~~mployers an<l the Teamsters 

Local 807. 

CK672 
CK673

LOCAL 807 LABOR-MANAGEMENT PENSION FUND 

Fourth Amended Rehabilitation Plan 

Background on the Pension Fund 

Local 807 Labor-Management Pension Fund (the "Fund" or the "Plan") covers Teamsters 

in a variety of industries including, but not limited to wholesale building supply 

distributors, compressed gas distributors, exposition facilitators, and public 

warehouse/distribution companies. The signatory companies in many of these industries 

have experienced declines in workforce forcing bankruptcies due to non-union 

competition, deregulation of the trucking industry, the economic condition of the country, 

downturn in construction in the greater New York City area, improvements of technology 

and outsourcing of jobs. For year ending August 31 , 1993, active work for which 

employers made contributions to the Fund was 3,749,000 hours. That number declined to 

1,546,363 hours by year ending August 31, 2010, and 1,270,352 by year ending August 

31 , 2018. As of August 31, 1993, the Fund had 2,120 active participants, 1,1 16 inactive 

vested participants and 4,050 pensioners and beneficiaries, a ratio of 2.44 nonactive 

participants for every l active participant. By August 31 , 201 8, there were only 695 

active participants, 754 inactive vested participants and 2,746 pensioners and 

beneficiaries in pay status resulting in a ratio of 5.04 nonactive participants for every one 

active participant. There have been a significant number of withdrawals of contributing 

companies to the Fund. 

The Fund's covered population also has aged over the years. The average age of active 

employees at the beginning of 2002 was 45.0 years old; that average grew to 49.1 years 

old in 2010. The average age of active employees at the beginning of the September 1, 

2018 Plan Year was 57.0 years old. The average pensioner was 72.3 years old in 2002 

and was 77 .1 years old in 2018. This leads to a smaller and older workforce generating 

employer contributions to the Pension Fund for a shorter period to provide lifetime 

monthly benefits to pensioners and beneficiaries who are living longer. 

Due to the stock market volatility in 2008 and 2009, the Fund experienced negative 

investment returns. In 2009 alone, the Fund experienced a negative 18.32% return 

resulting in a loss of more than $45,000,000. 

The Trustees have sought to address these issues over recent years. To deal with the 

impact of the investment losses and other detrimental factors, the Trustees recommended 

that the bargaining parties obtain additional contributions into the Fund. For the plan five 

years ending August 31, 2010, for example, the Pension Fund contribution rates for all 

contributing Employers increased by an average of 6.5% per year. The Trustees also 

amended the Plan in September 2001 to cap the accrual rate at the $4.315 contribution 

rate. In 2010, the Trustees adopted a career average method of calculating future accruals, 

equating such accruals on a more reasonable basis to contributions, all in an effort to 

better fund the Plan. 
CK674

The significant investment loss of 2008, coupled with the cash flow issues related to the 

reduction in active participants, has led the Fund to a position of probable insolvency, or 

at best, a significantly longer period of time to emerge from Critical Status than required 

by ERISA § 305. 

Rehabilitation Plan Development 

Section 305 of the Employee Retirement Income Security Act (ERISA) and Section 432 

of the Internal Revenue Code (IRC), as added by the Pension Protection Act of 2006 

("PPA"), require the Trustees of a multiemployer pension fund that has been certified by 

its actuary as being in Critical Status (also known as the "Red Zone") to develop a 

Rehabilitation Plan. Generally, the Rehabilitation Plan should enable a fund to cease to 

be in Critical Status by the end of the Rehabilitation Period. However, if the Trustees 

determine, based upon the exhaustion of all reasonable measures that a fund cannot 

reasonably be expected to emerge by the end of the Rehabilitation Period, the 

Rehabilitation Plan should be designed to enable the fund to cease to be in Critical Status 

at a later date if possible, or to forestall possible insolvency. The Rehabilitation Plan must 

be based on reasonably anticipated experience and on reasonable actuarial assumptions 

and may adopt such reasonable measures as the Trustees deem necessary. 

On November 29, 2010, the Fund was certified by its actuaries to be in Critical Status for 

the Plan Year beginning September 1, 20 IO. As required by law, the Board of Trustees 

forwarded a Notice of Critical Status ("Notice") to the Teamsters Local Union No. 807 

(the "Union") and the employers contributing to the Fund ("Employers") (referred to 

collectively as the "bargaining parties"), participants, beneficiaries, the Pension Benefit 

Guaranty Corporation and the Department of Labor. The Notice advised that (1) the Fund 

was in Critical Status for the 2010 Plan Year; (2) all of the adjustable benefits supported 

under the Plan could be eliminated or reduced pursuant to a Rehabilitation Plan; (3) any 

reductions pursuant to the Rehabilitation Plan would apply only to participants and 

beneficiaries whose benefit commencement date was after December 27, 2010; and (4) 

Employers were obligated to pay a 5% contribution surcharge to the Fund for work 

performed on and after January 26, 2011. The 5% surcharge was increased to 10% 

beginning with contributions received on or after September 1, 2011 and was to continue 

until the earlier of (1) the date the Fund emerges from Critical Status; (2) the effective 

date of a collective bargaining agreement ("CBA") that was in compliance with this 

Rehabilitation Plan; or (3) the date the contribution increases described below became 

effective with respect to an Employer because the bargaining parties fail to adopt a CBA 

in compliance with the Rehabilitation Plan within the time period required by Section 

305(e)(C)(ii) of ERISA. The surcharges were to continue until the CBA was signed, and 

the required increase in contributions were retroactive to the date the CBA was effective. 

The schedule of contribution increases and benefit reductions attached to this Fourth 

Amended Rehabilitation Plan (Schedule "A") and embodied herein will be provided to 

the bargaining parties no later than the thirtieth day after the Board of Trustees adopt this 

Rehabilitation Plan. Any new CBA entered into by the bargaining parties or any other 
CK675

agreement calling for participation in the Fund after it is so provided must reflect the 

terms of the most recently issued Schedule A. If the bargaining parties cannot reach an 

agreement concerning the adoption of Schedule A, Schedule A is to be treated as the 

Default Schedule and will become effective on the date specified in ERISA Section 

305(e)(3)(C)(ii). In the case of an Employer that contributes to the Fund only with 

respect to employees not covered by a CBA, that Employer's agreement with the Fund 

providing for contributions to the Fund will be treated as a CBA that expired on August 

31 , 2011. 

The Board of Trustees will review the Fund's Rehabilitation Plan annually and will 

update the Rehabilitation Plan as required by law. In addition, the Board of Trustees will 

continue to consider all options available to the Fund, including but not limited to 

reducing Fund expenditures, taking advantage of any changes in law, or exploring a 

merger with another plan. The Board of Trustees has the sole discretion to amend and 

construe this Rehabilitation Plan. 

This Rehabilitation Plan: 

1. specifies the Rehabilitation Period; 

2. describes alternatives the Trustees considered when preparing the Rehabilitation 

Plan; 

3. explains why the Trustees concluded that there are no reasonable measures that 

would enable the Plan to emerge from Critical Status in the time frame prescribed by 

ERISA § 305; 

4. includes remedies and a schedule of benefits and contributions (Schedule A) that 

are projected to enable the Fund to postpone the projected date of insolvency and/or 

cause the Fund to emerge from Critical Status; 

5. explains that the Default Schedule will be put into effect automatically if the 

bargaining parties do not agree on an acceptable schedule in a timely manner; and 

6. sets out the annual standard to be achieved under the Rehabilitation Plan and 

explains that the Rehabilitation Plan will be updated from time to time. 

Rehabilitation Period 

The Fund's Rehabilitation Period begins on September 1, 2013 and ends on August 31 , 

2048. 
CK676

Rehabilitation Plan Standard 

The Fund's Board of Trustees has determined that based on reasonable actuarial 

assumptions, and upon exhaustion of all reasonable measures, the Fund cannot be 

reasonably expected to emerge from Critical Status within the time frame prescribed by 

ERISA § 305 (the "Prescribed Period"). Accordingly, pursuant to ERISA Section 

305(e)(3)(A)(ii), the Board of Trustees is adopting reasonable measures in this 

Rehabilitation Plan to forestall insolvency (as defined by ERISA Section 4245) and/or 

emerge from Critical Status over a projected period. 

The Board of Trustees considered a number of actions, options, and alternatives that 

might permit the Fund to emerge from Critical Status by the end of the Prescribed Period. 

The Trustees have determined the remedies necessary for such a result as being 

unreasonable measures that would be untenable or counter productive and adverse to the 

Fund and its participants. The remedies considered included the following: 

• The Fund's actuary projected that if there were no changes to the Plan's current 

Rehabilitation schedule of benefits, i.e., accrual rates at the minimum level 

allowed by law in a default schedule (the equivalent of 1 % of contributions), all 

adjustable benefits are eliminated and all future contribution increases are 

supplemental (meaning that the increased rates do not increase the future credit 

multiplier in the Plan), Employers would need to increase their current 

contribution rates by at least $1.30 each year, from the start of the next collective 

bargaining agreement through September l, 2048, the end of the Rehabilitation 

Period, to emerge from critical status. This means the current $7.37 average 

hourly contribution rate would need to increase by $ l .30 per year in order to 

emerge from critical status by the end the Rehabilitation Period. At the end of the 

Rehabilitation Period, the average hourly contribution rate would be $45.07 per 

hour. 

The Trustees concluded that there are no reasonable measures that will enable the Plan to 

emerge from Critical Status in the Prescribed Period for the following reasons: 

• The Trustees noted that the final contribution rates needed to emerge from critical 

status by September 1, 2048 were more than the current hourly wage rates for the 

majority of the participants in this Fund. Even higher final rates would be needed 

to emerge from critical status at a later date. 

• The Trustees noted that a complete freeze of future benefit accruals would 

provide little incentive for participants to support contribution rate increases, 

especially since those increases would need to be financed by reductions in health 

fund contributions and wages. 

• The Trustees noted the financial pressure on current contributing Employers, and 

how any significant increases in future contributions would put the operation of 

these companies in question, thus jeopardizing the future contribution source of 

the Fund. Significant increases would likely result in withdrawals of contributing 

~ ·' ~··~-~ -am,;r;nCT P V P.n larQer and more unreasonable contribution rate 
CK677

increases from any remammg contributing Employers to enable the Plan to 

emerge from Critical Status. 

Trustee-Approved Rehabilitation Plan Remedies 

The Board of Trustees concluded that annual contribution rate increases in excess of 

those called for under Schedule A were not reasonable and could trigger a mass 

withdrawal and significant losses to the Fund and its participants. Therefore, the Trustees 

concluded that contributions required to ever emerge from Critical Status within the time 

frame prescribed by ERISA would be unreasonable and the Rehabilitation Plan could 

only reasonably be expected to forestall insolvency or emerge from Critical Status over a 

much longer period. Based on this, the Trustees have adopted the following reasonable 

measures to forestall insolvency, and/or eventually emerge from Critical Status which the 

Trustees have determined to be the most the Fund can reasonably take given the financial 

condition of the various industries in which the contributing employers are engaged and 

the need to maintain active participant support for the Plan. 

Schedule of Contribution Rate Increases and Benefit Changes 

Contribution Rate Increases for Contributing Employers 

Contribution rate increases of $0.45 per hour per year will be required for any collective 

bargaining agreement that becomes effective after September 1, 2011. 

Contribution rate increases of $0.39 per hour per year will be required for any collective 

bargaining agreement that becomes effective on or after June 1, 2018. 

Contribution rate increases of $0.25 per hour per year will be required for any collective 

bargaining agreement that becomes effective on or after January 1, 2020. 

The total number of $0.39 and $0.25 increases are capped at twenty-five (25) increases. 

All increases in hourly rates will be supplemental after September 1, 2011 , and therefore 

will not cause any increase in future service accruals, except as provided herein. 

The impact of these increases in contribution rates will be evaluated annually and will be 

adjusted based on the financial conditions of the signatory employers and experience of 

the Fund. 

Benefit Changes for Active Participants 

For service on or after February 1, 2012, the accrual rate is the lesser of: (a) one percent 

(I%) of the product of the number of hours which contributions are due on behalf of the 

Participant in a credit year and the contribution rate in effect for his employer prior to its 

first contribution increase on or before September 1, 2011 (regardless of surcharge) or (b) 

the accrual rate under the Plan as of September 1, 2011 . 
CK678

Non-protected and adjustable benefits for all participants and whose annuity starting date 

is on or after September 1, 2011, are eliminated as follows: 

1. Those retiring on an Early Retirement Pension shall have their benefits reduced in 

accordance with Schedule B attached to this Rehabilitation Plan eliminating all 

subsidies previously afforded. 

2. All Service Pensions will no longer be available. 

3. The 60-month guarantee will no longer apply. 

4. Actuarial reduction for a Joint and Survivor Pension will reflect the elimination of 

the 60-month guarantee. The Joint and Survivor Factors set forth in Schedule C 

attached to this Rehabilitation Plan will apply. 

5. All future contribution increases after September 1, 2011 will not be used towards 

the calculation of any future accruals. 

6. The Disability Pension will not be payable to anyone who has an Annuity Starting 

Date of September 1, 2011 or later and who has not submitted a complete 

application, with all required information, prior to that date. 

7. The Death Benefit provided in Section 3 .19 of the Plan. 

8. Eliminate the Social Security Level Income Option pursuant to Section 3.17 of 

the Plan. 

Benefit Changes for Non-active Participants 

Notwithstanding any other terms of this Rehabilitation Plan or the Schedules provided 

under it, the benefits of retired participants whose annuity starting date was before 

September l, 2011 will not be eliminated or reduced, regardless of a subsequent 

resumption of Covered Employment. 

Participants who have terminated (or will terminate) covered service or whose annuity 

starting date is on or after September 1, 2011, will have their benefits reduced in 

accordance with the benefit changes described in this Rehabilitation Plan, effective as of 

the earliest date permitted after the provision of legally required advance notice. 

The benefits of a beneficiary (e.g. surviving spouse) or of an Alternate Payee under a 

QDRO will be determined on the same basis as those of the participant under this 

Rehabilitation Plan. 

Automatic Implementation of Schedule 
CK679

If a collective bargaining agreement providing for contributions under the Fund that was 

in effect on September 1, 2011 expires and after receiving the Rehabilitation Plan 

Schedule, the bargaining parties fail to adopt contribution terms consistent with the 

Rehabilitation Plan, Schedule A will be implemented automatically 180 days after the 

date on which the collective bargaining agreement expires. Any CBA that expired prior 

to September 1, 2011 and has not been renewed with a successor agreement, will be 

considered expired as of September 1, 2011 for the sake of this paragraph. 

In the event of such automatic implementation of Schedule A, the next annual increase of 

contributions provided in Schedule A shall occur twelve ( 12) months after the expiration 

of the last collective bargaining agreement and NOT the anniversary date of the 

automatic implementation of Schedule A. 

In addition to the authority of the Trustees to automatically implement the provisions of 

Schedule A, the Board reserves the right to reject any collective bargaining agreement 

that is not in full compliance with this Rehabilitation Plan and/or ERISA, and thereby 

terminate participation in the Fund by that employer. 

Annual Standards for Meeting the Rehabilitation Requirements 

Prior to the adoption of the measures outlined in this Rehabilitation Plan, and based on 

reasonable assumptions, the Fund was projected to become insolvent during the plan year 

ending August 31, 2026. This Rehabilitation Plan is expected to delay the projected 

insolvency date based on reasonable assumptions. 

The point of projected insolvency will vary each year as actual experience differs from 

the assumptions. The Trustees recognize the possibility that actual experience could be 

less favorable on an annual basis than the reasonable assumptions used for the 

Rehabilitation Plan. Consequently, the annual standard for meeting the requirements of 

this Rehabilitation Plan is for updated actuarial projections each year to show, based on 

reasonable assumptions, that under the Rehabilitation Plan (as amended from time to 

time) the Fund will not be expected to become insolvent before 2026. 

Surcharges to be Included in the Calculation of Withdrawal Liability Payments 

Only surcharges accrued for plan years beginning before December 31, 2014, according 

to Section 109 of the Multiemployer Pension Reform Act of 2014, collected by the Fund 

from a withdrawing employer shall be included in the calculation of withdrawal liability 

payments under ERISA Section 4219(c)(l )(C) as if comprising a part of the Employer's 

obligation to contribute. 

Annual Updating of Rehabilitation Plan 
CK680

Each year the Fund's actuary will review and certify the status of the Fund under 

applicable ERISA and IRC funding rules and whether the Fund is making the scheduled 

progress in meeting the requirements of the Rehabilitation Plan. If the Trustees detennine 

that it is necessary in light of updated information, the Trustees will revise the 

Rehabilitation Plan and present updated schedules to the bargaining parties. 

Notwithstanding subsequent changes in benefit and contribution schedules, a schedule 

provided by the Trustees and relied upon by the bargaining parties in negotiating a 

collective bargaining agreement shall remain in effect for the duration of that collective 

bargaining agreement. However, a collective bargaining agreement that is renewed or 

extended will need to include terms consistent with the schedule in effect at the time of 

the renewal or extension. 
CK681

SCHEDULE A 

1. Contribution Increases 

$0.25 per hour in each contract year. 

2. Future Benefit Accruals 

For service on or after February 1, 20 12, the accrual rate as defined in Article III 

of the Plan Document is the lesser of: (a) one percent (1 %) of the product of the number 

of hours which contributions are due on behalf of the Participant in a credit year and the 

contribution rate in effect for his employer prior to its first contribution increase on or 

before September 1, 2011 (regardless of surcharge) on September 1, 2011 , or (b) the 

accrual rate under the Plan as of September 1, 2011. 

3. Adjustable Benefits 

• Those retiring before Early Retirement Pension shall have their benefits 

reduced in accordance with Appendix A attached to this Rehabilitation 

Plan eliminating all subsidies previously afforded. 

• All Service Pensions will no longer be available. 

• The 60-month guarantee will no longer apply. 

• Actuarial reduction for a Joint and Survivor Pension will reflect the 

elimination of the 60-month guarantee. The Joint and Survivor Factors set 

forth in Appendix B attached to this Rehabilitation Plan will apply. 

• All future contribution increases after September 1, 2011 will not be used 

towards the calculation of any future accruals. 

• The Disability Pension will not be payable to anyone who has an Annuity 

Starting Date of September I, 2011 or later and who has not submitted a 

complete application, with all required information, prior to that date. 

• The Death Benefit provided in Section 3 .19 of the Plan. 

• The Social Security Level Income Option pursuant to Section 3.1 7 of the 

Plan is eliminated. 
CK682

APPENDIX A 

Early Retirement Factors for Rehabilitation Plan 

Early retirement benefit is calculated by multiplying the Regular Pension benefit by the 

factor below corresponding with the age of a participant at Early Retirement date. 

Age Factor 

55 36.59% 

56 40.12% 

57 44.07% 

58 48.48% 

59 53.43% 

60 58.99% 

61 65.26% 

62 72.35% 

63 80.39% 

64 89.54% 

Note: Reductions for fractional ages are interpolated based on the above. 
CK683

APPENDIXB 

J&S Factors for Rehabilitation Plan 

50% joint and survivor: 

88% plus 0.4% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.4% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 

75% joint and survivor: 

83% plus 0.5% for each full year that the spouse's age is greater than the Participant's 

age or minus 0.5% for each full year that the spouse's age is less than the Participant's 

age with a maximum factor of 99%. 
CK684

ocal 807 LaborManagement Pension Fund 

Actuarial Valuation and Review 

as of September 1, 2018 

• 

1 his report hc1s been prP.pmoct nl the request of lhn 8oa,d o f Tnrsle<!S lo f!ss,st 111 c1drrnniste11nq 1110 r 1mcl ;m<l mcetmq filing 1cqu1remcnts of fo<lnrnl government .:igenc1es Th,s 

valu,ll1on report may not o tlmrw1sc be copied or reprod11cod in any fom1 w1tho1Jt 111<) co11sonl of tile Board of l ruslees and may only be provided to other pi1rt1es ,n its entirety. 

Tho measurP.mrmts shown in tl11s actunnnl valu.=i t1on may not ho r1pphr.c1ble lor other purpos0s 

Copyright © 201 U hy ThP. Seqal Grour. Inc /\II rights re<;P.rved. 
• * Segal Consulting 

333 West 341h $!reel. 3rd Floor New York. NY 10001 

T 212.251.5000 www.segafco.corn 

June 24, 20 I 9 

Board of Trustees 

Local 807 Labor-Management Pension Fund 

32-43 49th Street 

Long Island City, cw York 11 103 

Dear Trustees: 

• • 

We arc pleased to submit the Actuarial Va luation and Review as of September I, 2018. It cstabl ishcs the funding requirements for the current 

yea r and analyzes the preceding year·s experience. It also summarizes the actuarial data and includes the actuarial infonnation that is required 

to be filed with Fom1 5500 to federal government agencies. 

The census information upon which our ca lculations were based was prepared by the r-und Office, under the direction of Teresa Casanova. 

That assista nce is grateful ly ac knowledged. The actuarial calculations were completed u11dcr the supervision of Joe l R. Leary, ASA, FCA, 

MAAA, Enrolled Actuary. 

We look forward to reviewing this report with you at your next meeting and to answering any quc~tions you may have. 

Sincerely. 

cc: Fund Administrator 

Fund Counsel 

Fund Auditor 

Benefits, Compensation and HR Consulting. Member of The Segal Group. Offices throughout the United States and Canada 

CK685 
CK686

• • • 

Table of Contents 

Local 807 Labor-ManagemenC Pension Fund Actuarial Valuation and Review as of September 1, 2018 

Section 1: Actuarial Valuation Summary 

Summary of Key Valuation Results ....................................................... 7 

Comparison of Funded Percentages ........... .......................................... 8 

A. Developments Since Last Valuation ...... ................... ....................... 9 

B. Funded Percentage and Funding Standard Account ...................... 9 

C. Solvency Projections ........................................ ............................ 1 O 

D. Funding Concerns and Risks ........... ............................................. 10 

E. Withdrawal l iability ..... ................................................................... 11 

Section 3: Supplementary Information 

Exhibit A - Table of Plan Coverage ..................................................... 32 

Exhibit B - Participant Population ... .................................................... 33 

Exhibit C - Employment History .......................................................... 34 

Exhibit D - New Pension Awards ................................... ..................... 35 

Exhibit E - Progress of Pension Rolls Over the Past Ten Years ........ 36 

Exhibit F - Summary Statement of Income and Expenses on an 

Actuarial Basis ........... ............... ......... ............................. ................... 37 

Exhibit G - Investment Return - Actuarial Value vs. Market Value ..... 38 

Section 2: Actuarial Valuation Results 

Participant Information ............................................ ............................. 12 

Exhibit H - Annual Funding Notice for Plan Year Beginning 

September 1, 2018 and Ending August 31. 2019 .. ...... .................... . 39 

Financial Information ............................................................................ 17 Exhibit I - Funding Standard Account ............................................... ..40 

Actuarial Experience ......... ....... ............................................................ 20 Exhibit J - Maximum Deductible Contribution ..................................... 41 

Actuarial Assumptions .......................................................................... 23 Exhibit K - Pension Protection Act of 2006 ......................................... 42 

Plan Provisions ..... ............................................................................... 23 Section 4: Certificate of Actuarial Valuation 

Contribution Rate Changes .................................................................. 23 

Pension Protection Act of 2006 .. .......................................................... 24 

Solvency Projection ............................ .................................................. 27 

Funding Concerns ... ............................................................. .-............... 28 

Risk ...................................................................................................... 29 

Withdrawal Liability · ... ........................................................................... 30 

Certificate of Actuarial Valuation ......................................................... .44 

Exhibit 1 - Summary of Actuarial Valuation Results ........................... .45 

Exhibit 2 - Actuarial Present Value of Accumulated Plan Benefits ..... 46 

Exhibit 3 - Current Liability ........ .... .......................................... ............ 47 

Exhibit 4 - Information on Plan Status as of September 1, 2018 .. ... ... 48 

Exhibit 5 - Schedule of Projection of Expected Benefit Payments ..... .49 

Exhibit 6 - Schedule of Active Participant Data ............... .................... 50 

Exhibit 7 - Funding Standard Account ................................................ 51 

Exhibit 8 - Statement of Actuarial Assumptions/Methods .................. . 54 

Exhibit 9 - Summary of Plan Provisions .......... .................................... 61 

--X- Segal Consulting 3 
CK687

• • • 

Introduction 

There arc several ways of evaluating funding adequacy for a pension plan. In monitoring the Plan·s financ ial posttion, the Trustees should 

keep in mind all of these concepts. 

i 

I 

-

Funding 

Standard 

Account 

Zone 

Information 

Solvency 

Projections 

Withdrawal 

Liability 

The ERISA Funding Standard Account (FSA) measures the cumulative difference between actual contributions and the 

minimum required contributions. If actual contributions exceed the minimum required contributions, the excess is called 

the credit balance. If actual contributions fall short of the minimum required contributions, a funding deficiency occurs. 

The Pension Protection Act of 2006 (PPA'06) ca lled on plan sponsors to actively monitor the projected FSA credit 

balance, the funded percentage (the ratio of the actuarial value of assets to the present value of benefits earned to date) 

and cash flow sufficiency. Based on these measures, plans are then categorized as critical (Red Zone), endangered 

(Yellow Zone), or neither (Green Zone). The Multiemployer Pension Reform Act of 2014 (MPRA), among other things, made the zone provisions permanent. 

Pension plan funding anticipates that, over the long term. both contributions and investment earnings will be needed to 

cover benefit payments and expenses. To the extent that contributions are less than benefit payments, investment 

earnings and fund assets will be needed to cover the shortfall. In some situations, a plan may be faced with insufficient 

assets to cover its current obligations and may need assistance from the Pension Benefit Guaranty Corporation (PBGC). 

MPRA provides options for some plans facing insolvency. 

ERISA provides for assessment of withdrawal liabi lity to employers who withdraw from a multiemployer plan based on 

unfunded vested benerit liabilities. 

'ft Segal Consulting 4 
CK688

• • • 

Important Information about Actuarial Valuations 

An actuarial valuation is a budgeting tool with respect to the financi ng of future uncertain obligations of a pension plan. As such. it will never 

forecast the precise future contribution requirements or the precise future stream of benefit payments. In any event, the actua l cost of the plan 

wi ll be determined by the benefits ant.I expenses paid, not by the actuaria l va luation. 

In order to prepare a valuation. Segal Consulting (''Segal .. ) relics on a number of input item .. These include: 

il 

.. 

-

e 

Participant 

Information 

Financial 

Information 

Actuarial 

Assumptions 

Plan provisions define the rules that will be used to determine benefit payments, and those rules, or the interpretation of them, 

may change over time. Even where they appear precise, outside factors may change how they operate. It is important for the 

Trustees to keep Segal informed with respect to plan provisions and administrative procedures, and to review the plan 

summary included in our report to confirm that Segal has correctly Interpreted the plan of benefits. 

An actuarial valuation for a plan is based on data provided to the actuary by the plan. Segal does not audit such data for 

completeness or accuracy, other than reviewing it for obvious inconsistencies compared to prior data and other information that 

appears unreasonable. For most plans, it is not possible nor desirable to take a snapshot of the actual workforce on the 

valuation date. It is not necessary to have perfect data for an actuarial valuation. The uncertainties in other factors are such that 

even perfect data does not produce a "perfect" result. Notwithstanding the above. it is important for Segal to receive the best 

possible data and to be informed about any known incomplete or inaccurate data. 

Part of the cost of a plan will be paid from existing assets - the balance will need to come from future contributions and 

investment income. The valuation is based on the asset values as of the valuation date, typically reported by the auditor. A 

snapshot as of a single date may not be an appropriate value for determining a single year's contribution requirement, 

especially in volatile markets. Plan sponsors often use an "actuarial value of assets" that differs from market value to gradually 

reflect year-to-year changes in the market value of assets in determining the contribution requirements. 

In preparing an actuarial valuation, Segal starts by developing a forecast of the benefits to be paid to existing plan participants 

for the rest of their lives and the lives of their beneficiaries. This requires actuarial assumptions as to the probability of death, 

disability. withdrawal, and retirement of participants in each year, as well as forecasts of the plan's benefits for each of those 

events. The forecasted benefits are then discounted to a present value. typically based on an estimate of the rate or return that 

will be achieved on the plan's assets. All of these factors are uncertain and unknowable. Thus, there will be a range of 

reasonable assumptions. and the results may vary materially based on which assumptions the actuary selects within that range. 

That is. there is no right answer (except with hindsight). It is important for any user of an actuarial valuation to understand and 

accept this constraint. The actuarial model may use approximations and estimates that will have an immaterial impact on our 

results. In addition. the actuarial assumptions may change over time. and while this can have a significant impact on the 

reported results, it does not mean that the previous assumptions or results were unreasonable or wrong. 

* Segal Consulting s 
CK689

Given 

• 

the above, the user of Segal" actuaria l valuation (or other actu

• 

arial calcul ations) needs to keep the following in mind: 

• 

• The actuarial valuation is prepared for use by the Trustees. It includes information for compliance with federal filing requirements and for the plan's 

auditor. Segal is not responsible for the use or misuse of its report. particularly by any other party. 

• An actuarial valuation is a measurement at a specific date - it is not a prediction of a plan's future financial condition. Accordingly, Segal did not 

perform an analysis of the potential range of financial measurements, except where otherwise noted. 

• Critical events for a plan include, but are not limited to, decisions about changes in benefits and contributions. The basis for such decisions needs 

to consider many factors such as the risk of changes in employment levels and investment losses, not just the current valuation results. 

• ERISA requires a plan's enrolled actuary to provide a statement in the plan's annual report disclosing any event or trend that the actuary has not 

taken into account, if. to the best of the actuary's knowledge, such an event or trend may require a material increase in plan costs or required 

contribution rates. If the Trustees are aware of any event that was not considered in this valuation and that may materially increase the cost of the 

Plan, they must advise Segal, so that an appropriate statement can be included. 

• Segal does not provide investment, legal. accounting, or tax advice. This valuation is based on Segal's understanding of applicable guidance in 

these areas and of the plan's provisions. but they may be subject to alternative interpretations. The Trustees should look to their other advisors for 

expertise in these areas. 

• While Segal maintains extensive quality assurance procedures, an actuarial valuation involves complex computer models and numerous inputs. In 

the event that an inaccuracy is discovered after presentation of Segal's valuation. Segal may revise that valuation or make an appropriate 

adjustment in the next valuation. 

• Segal's report shall be deemed to be final and accepted by the Trustees upon delivery and review. Trustees should notify Segal immediately of any 

questions or concerns about the final content. 

As Segal Consulting has no discretionary authority with respect to the management of assets of the Plan. it is not a fiduciary in its capacity as 

actuaries and consultants with respect lo Lhe Plan. 

ft Segal Consulting 6 
CK690

• • 

Section 1: Actuarial Valuation Summary 

Summary of Key Valuation Results 

2017 

Certified Zone 

Status Critical 

Demographic • Number of active participants 692 

Data: • Number of inactive participants with vested rights 935 

• Number of retired participants and beneficiaries 2,813 

Assets: • Market value of assets (MVA) $146,959.183 

• Actuarial value of assets (AVA) 147,543.512 

• AVA as a percent of MVA 100.4% 

Cash Flow: • Projected employer contributions at the negotiated rates $8,883,692 

• Actual contributions including withdrawal liability payments 10,375,993 

• Projected benefit payments and expenses 31,106,935 

• Insolvency projected in Plan Year ending August 31 2028 

Statutory • Minimum required contribution $91 ,093,017 

Funding • Maximum deductible contribution 613,199,660 

Information: • Annual Funding Notice percentage 42.6% 

• FSA deficiency as of August 31 S45,628,883 

Cost Elements • Normal cost, including administrative expenses $2,879,618 

on an FSA • Actuarial accrued liability 353,791.408 

Cost Basis: • Unfunded actuarial accrued liability (based on AVA) $206,247,896 

Withdrawal • Present value of vested benefits 41 0,057,215 

Liability: 1 . Unfunded present value of vested benefits (based on MVA) 263,098,032 

1 Using the assumptions described in Section 2: Withdrawal Ltabilily Assumptions. 

Section 1: Actuarial Valuation Summary as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

• 

2018 

Critical 

t 695 

'Ill 754 

'V 2.746 

$139,319,518 

138,574,773 

99.5% 

$9,473,149 

29,999,111 

2030 

$127.436,231 

636,233,169 

42.1% 

$80,384,128 

$3,614,528 

336,775,033 

$198,200,260 

389,092.202 

249,772.684 

* Segal Consulting 7 
CK691

• • 

Comparison of Funded Percentages 

1. 

2. 

3. 

4. 

5. 

6. 

as of Se tember 1 2018 

Funded Percentages j 

2017 pl 2018 Liabilities -T-- Asset~- - ---

Present Value of Future Benefits 40.7% 40.1 % $345,994,376 $138,574,773 

Ac tuarial Accrued Liability 41.7% 41 .1% 336,775,033 138,574,773 

PPA'06 Liability and Annual Funding Notice 42.6% 42.0% 329,865,553 138,574,773 

Accumulated Benefits Liability 42.4% 42.2% 329,865,553 139,319,518 

Withdrawal Liability 35.8% 35.8% 389,092,202 139,319,518 

Current Liability 29.6% 29.2% 544,592,004 159,109,114 

Notes: 

1. The value of benefits earned through the valuation date (accrued benefits) plus the value of benefits projected to be earned in the future for 

current participants. Used to develop the actuarial accrued liability, based on the long-term funding investment return assumption of 7.00% and the 

actuarial value of assets. The funded percentage using market value of assets is 40.5% for 2017 and 40.3% for 2018. 

2. The portion of the present value of future benefits allocated by the actuanal cost method to years prior to the valuation date. Based on the longterm funding investment return assumption of 7.00% and the actuarial value of assets. The funded percentage using market value of assets is 

41 .5% for 2017 and 41.4% for 2018. 

3. The present value of benefits earned through the valuation date (accrued benefits) defined by PPA'06, based on the long-term funding investment 

return assumption of 7.00% and compared to the actuarial value of assets. 

4. The present value of accrued benefits for disclosure in the audited financial statements. based on the long-term funding investment return 

assumption of 7.00%, and compared to the market value of assets. 

5. The present value of vested benefits for withdrawal liability purposes based on the blended interest rate and other assumptions described in 

Section 2: Withdrawal Liability Assumptions and compared to the market value of assets. Includes the unamortized value of the Rehabilitation 

Plan reductions. 

6. The present value of accrued benefits based on a government-prescribed mortality table and investment return assumption of 3.03% for 2017 and 

3.01% for 2018. and compared to the market value of assets, including withdrawal liability payments receivable. Used to develop the maximum 

tax-deductible contribution and shown on the Schedule MB if less than 70%. 

• 

Disclosure: These measurements are not necessarily appropriate for assess,ng the sufficiency of Plan assets to cover the estimated m st of settling the Plan's benefit obligations or the need tor 

or the amount of future contributions. 

Section 1: Actuarial Valuation Summary as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 8 
CK692

• • • 

This September 1, 2018 actuarial valuation report is based on financial and demographic information as of that date. Changes subsequent to 

that date are not reflected unless specifically identified, and will affect future results. Segal is prepared to work with the Trustees to analyze 

the effects of any subsequent developments. The current year's actuarial valuation results follow. 

A. Developments Since Last Valuation 

1. The rate of return on the market value of plan assets was 8. 74% for the 201 7 plan year. The rate of 

return on the actuarial value of assets was 7.72%. Given the current interest rate environment, 

target asset allocation and expectations of future investment returns for various asset classes, we 

will continue to evaluate the Plan·s anticipated investment returns relative to the assumed longtem, rate of return on investments of 7.00%. 

2. There was a S14.7 million ex perience gain primarily due to the data clean up of the inactive vested paiticipants by the Fund Office that 

was completed with the MPR/\ suspension application. 

3. The assumptions for morta lity rates. retirement rates, and annual admini ·trative expenses have been revised. 

See Section 4 Exhihil 8 for more information. 

4. The 201 8 certification. issued on ovcmbcr 29. 2018. based on the liabilities calculated in the 2017 actuarial valuation, projected to 

August J 1. 201 8, and estimated asset information as of August 3 1. 2018. classified the Plan as Critical and is also Critical and Deel ining 

(in the Red Zone ) because there is a deficiency in the FS/\ and the Plan was projected to be insolvent within 15 year. . This projection was 

based on the Trustees· industry acti vity assumption that the active population will decline by 2% annuall y reaching an ultimate level of 

450 and, on average, contributions will be made for 1,850 hours per year for each active participant. 

B. Funded Percentage and Funding Standard Account 

1. Based on this September I. 2018 actuarial va luation. the fun<lcd percentage that will be reported on the 

20 18 Annual Funding Notice is 42.0%. 

2. The funding deficiency in the fSA as of August 31, 201 8 wa $80,384. 128, an increase of$34.755.245 

from the prior year. 

Section 1: Actuarial Valuation Summary as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

I~/ 

) 

'-- / 

ft Segal Consulting 9 
CK693

• • 

C. Solvency Projections 

The Plan is projected to be unable to pay benefits within 12 years (i.e., the year ending August 3 I, 

2030), assuming experience is consistent with the September l. 20 18 as1,u111ptions. This is two 

yea rs later than projected in the September I, 2017 valuation. This projection docs not take into 

account fu ture contribution rate increases required under the Rehabilitation Plan. We arc working 

with the Trustees to evaluate a possible benefit suspension under MPRA to address this this cashflow crisis. Reflecting future rate increases required under the Rehabi litation Plan. the Pl an is 

projected to be insolvent in the yea r ending August 31. 2032. 

D. Funding Concerns and Risks 

I. The imbalance between the benefit levels in the Plan and the resources ava ilable to pay for them is 

being monitored. 

2. The growing funding deficiency and the projected inability to pay benefits need prompt attention. 

,-

3. We arc working with the Trustees to develop alternatives to address this situation including updating the 

Rehabi litation Plan if needed and exploring a possible benefit suspension under MPRA. 

4. The actions already taken to address this issue include plan changes and scheduled contribution rate 

increases per the Rehabilitation Plan. 

• 

" 

. d::< 

mu 201, 2011 2111 21111 21119 

5. Since the actuarial va luation results arc dependent on a given set of assumptions, there is a risk that emerging resu lts may di ffcr 

significantly as actual experience proves to be different from the assumptions. We have included a list of various risks that may affect the 

Plan in Section 2. 

Section 1: Actuarial Valuation Summary as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 10 
CK694

• • 

E. Withdrawal Liability 

I. The unfunded present value of vested benefits for withdrawa l liability purposes (UVB) is $249,772.684 (using the 

assumptions outlined in Section 2: Withdrmrnl U ahi!iry Assumptions). Compared to $263,098,032 as of the prior 

year, the decrease of$ I 3-325.348 is primaril y due to the investment gain on a market va lue basis and the data 

clean up of the inactive vested participants. 

2. The Trustees have adopted the method outlined in PBGC Technical Update I 0-3 to account for bene fit reductions 

implemented by the Rehabilitation Plan. The unamortized value of those benefit reductions is included in the 

unfunded vested benefit amount shown above. 

• 

Section 1: Actuarial Valuation Summary as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 11 
CK695

• • • 

Section 2: Actuarial Valuation Results 

Participant Information 

,,, The Aetmirial Valuation is based on dcmograrhic data as o f /\ugust J I. 2018. 

,, There arc 4,195 total particirants in the current valuation, compared to 4.440 in the prior valuation. 8 The ratio of non-actives to actives has decreased to 5.04 from 5.40 in the rrior year and is largely due to a clean up of the inactive 

vested participant data by the Fund Office. 

,, More detai ls on the historical information arc included in S<!clio11 J. Ex/Jihirs A and B. 

POPULATION AS OF 

AUGUST 31 

RATIO OF NON-ACTIVES TO ACTIVES 

AS OF AUGUST 31 

4,000 6.00 

3,500 • .. .. .. 5.00 

3,000 

2,500 

.. 

.. . 4.00 

2,000 3.00 

1,500 

2.00 

1,000 

1.00 

500 

0 QOO 

2009 2010 2011 2012 2013 2014 20 15 2016 2017 2018 2009 20 10 2011 2012 2013 2014 2015 2016 2017 2018 

Ac tive _.,_Inactive Vested ..... In Pay Status 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund "ft Segal Consulting 12 
CK696

• • 

Active Participants 

140 

120 

100 

80 

60 

40 

20 

0 

,. There arc 695 active participants this year. an increase of 0.4%, compared to 692 in the prior year. 

, The age and service distribution is included in Section 4. Exhihit 6. 

~ re> 4' ~ 

it> rt' ,,? ~ $> 

Distribution of Active Participants as of August 31, 2018 

BY AGE 

~ ~ ,if ,g> * , 

t' ~ ~ <S> ~ 

~ ~ ,s i' ~ .§ 

'\C) .:::,t::' 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

BY PENSION CREDITS 

Average age 50.1 Average pension credits 13.6 

Prior year average age 

Difference 

50.3 

-0.2 

Prior year average pension credits 

Difference 

13.9 

-0.3 

• 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 13 
CK697

Historical 

• 

Employment 

• • , The 20 18 zone certification was based on an industry activity assumption of a reduction in active participant levels of 5.6% in 2018 

and 2% annually thereafter and, on average, contributions wi ll be made for each active for 1.850 hours each year. 

,. The valuation is based on 695 actives and a long-term employment project ion of 1,850 hours. 

TOTAL HOURS 

2.00 AVERAGE HOURS 

2,500 

1.50 2.000 

~ 1.500 

,g 1.00 

~ 

0.50 

0.00 

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Last year 

Last five years 

Last 10 years 

Long-term assumption 

1.270,352 

1,400,404 

1.459,483 

1,285,750 

1,000 

500 

0 

2009 2010 2011 2012 2013 2014 20 15 2016 20 17 2018 

Historical Avera e Hours 

Last year 

Last fi~_)1ears 

Last 1 0 years 

Long-term assumption 

1,828 

1,938 

1,860 

1,850 

Note: The total hours of contributions are based on total contributions divided by the average contribution rate for the year, which may differ from the hours 

reported to the Fund Office. 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund -X- Segal Consulting 14 
CK698

• • • 

Inactive Vested Participants 

, A participant who is not currentl y acti ve and has satisfied the requirements for, but has not yet commenced, a pension is considered an " inacti ve vested" participant. 

200 

180 

160 

140 

120 

100 

80 

6 0 

40 

20 

0 

,. There are 739 inacti ve vested participants this year, a decrease of 19.6% compared to 9 19 last year. This was due to the data clean up 

by the Fund Offi ce that was completed 'vv ith the MPRA suspension application. 

, This excludes 15 benefi ciaries entitled to future henefits this year and 16 last yea r. 

Distribution of Inactive Vested Participants as of January 31, 2018 

BY AGE 

- --- • I 

<0' ~ ,-.CJ> 

,t,' ~ - rt?' 

,}!- ~ ,!f- ,J?> ~ 

~ ~ q' ~ <§> ,t;, 

Average age 57.0 

Prior year average age 

Difference 

62.2 

-5.2 

I I - <8' ,I; ,§"<::- ef ~ .§ 

'\<:) .::::f' 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

~-

"9 

BY MONTHLY AMOUNT 

l 1_1_ 

Average amount $1,066 

Prior year average amount 

Difference 

$989 

$77 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

"Y~ Segal Consulting 15 
CK699

• • • 

Pay Status Information 

,- There are 2,090 pensioners and 648 beneficiaries this year. compared to 2, 166 and 639. respecti vely, in the prior year. 

-,. Monthly benefits for the Phm Year ending August 3 1, 2018 total $2.25 1,426, as compared to $2.280.000 in the prior year. 

Distribution of Pensioners as of August 31, 2018 

""'" 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 

0 

~ 

~ 

,}/" cg, 

~ ~ ~ 

BY TYPE 

AND AGE 

~ ~ """ ~ "<::, 

"°' "~· ,§> 

~ ,g, ~ 

~ ~ 'l:l" 

~ 

Regular • Early • Disability • 25 Year • 30 Year • Deferred 

Average age 77.1 

Prior year average age 

Difference 

76.9 

0.2 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

<§' ~ ,g, 

BY TYPE AND 

MONTHLY AMOUNT 

i:;,,°' I>' f>l°' ~ & & ~ & 

-~ t;- .._ v5 0:, "5 ,s; "- <-5 05 .::. ~ .._. .._ . .._ . 0 '\,' '.\,' n;,· ,...,. ,...,. ~ Jl .,:j 

'\,-

~~- "? 1⁄2 ,., " ..,, 1⁄2 "? .,, $ ~ <§' # <§' <§' ~ $' c§' 'v <o I>' 'o 'v ,.,.. .,, .._. .._ . '\,' -:v· '\,' ".')' ,...,. 6,j 0 .,, " .,, 1⁄2 Gg ..,, 

Regular • Early • Disability • 25 Year • 30 Year • Deferred 

Average amount $976 

Prior year average amount 

Difference 

$963 

$13 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund ft Segal Consulting 16 
CK700

• • 

Financial Information 

1/) 

C 

~ 

~ 

V> 

• l3encfits anJ expenses arc funJeJ solely from contributions and investment earnings. 

,,. For the most recent yea benefit payments and expenses were 2.9 times contnbut,ons. 

-,. Additional detail is in Sec/ion 3. t :thihit F. 

COMPARISON OF EMPLOYER CONTRIBUTIONS 

WITH BENEFITS AND EXPENSES PAID 

35 

30 

25 

20 

15 

10 

5 

0 

2009 2010 2011 20 12 20 13 2014 20 15 2016 

• Contributions Expenses • Benefits Paid 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

• 

2017 2018 

--X- Segal Consulting 17 
CK701

• • • 

Determination of Actuarial Value of Assets 

,. The asset valuation method graduall y recognizes annual market value Ouctuations to heir mitigate volatility in the actuarial cost 

calculations. 

;.., Less volati lity in the actuarial cost better aligns with negotiated contribution rates. 

,., The return on the market value of assets for the year endi ng August .1 I, 2018 was R.74%. which produced a gain of$2,355.267 when 

compared to the assumed return of 7.00%. 

1 Market value of assets, August 31, 2018 

2 Calculation of unrecognized return 

3 

4 

5 

6 

7 

(a) Year ended August 31 , 2018 

(b) Year ended August 31 , 2017 

(c) Year ended August 31 , 2016 

(d) Year endedAugust 31 ,2015 

(e) Year ended August 31 . 2014 

(f) Total unrecognized return 

Preliminary actuarial value: (1) · (2f) 

Adjustment to be within 20% corridor 

Final actuarial value of assets as of August 31, 2018: (3) + (4) 

Actuarial value as a percentage of market value: (5) + (1) 

Amount deferred for future recognition: (1) - (5) 

1 Total return minus expected return on a market value basis 

2 Recognition at 20% per year over 5 years 

Original Unrecognized 

Amount1 Return2 

$2,355,267 $1,884,214 

3,818,336 2,291,002 

-329,297 -131,719 

-16,493,756 -3,298,751 

15,780,415 Q 

$ 139,319,518 

$744,745 

138,574,773 

0 

138,574,773 

99.5% 

$744,745 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 18 
CK702

• • • 

Asset History for Years Ended August 31 

ACTUARIAL VALUE OF ASSETS VS. MARKET VALUE OF ASSETS 

250 

200 

1/) 

C 

.Q 150 

~ 

fFt 

100 

50 

0 

2009 2010 2011 2012 20 13 2014 2015 2016 

-+-Actuarial Value ...,_Market Va lue 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

2017 2018 

-X-- Segal Consulting 19 
CK703

• • 

Actuarial Experience 

.,., Assumptions should refl ect experience and should be based on reasonable expectations for the future . 

.,., Each year actual experience i compared to that projected by the assumptions. Differences arc reflected in the contribution 

requirement as an experience gain or loss. 

• 

, Assumptions arc not changed if experience i · believed lo be a shon-tcrrn development that will not continue over the long term. 

, The net experience variation for the year was 4.3% of the projected actuarial accrued liability from the prior va luation, and was 

significant when compared to that liability. This was primarily due to the data clean up of the inactive vested participants by the Fund 

Office that was completed with the MPRA suspension application. 

EXPERIENCE FOR THE YEAR ENDED AUGUST 31 , 2018 

1 Gain from investments 

2 

3 

4 

a. Net investment income 

b. Average actuarial value of assets 

c. Rate of return: a + b 

d. Assumed rate of return 

e. Expected net investment income: b x d 

f. Actuarial gain from investments: a - e 

Loss from administrative expenses 

Net gain from other experience 

Net experience gain: 1f + 2 + 3 

$10,526,789 

136,307,123 

7.72% 

7.00% 

$9,541,499 

985,290 

-784,345 

14,663.403 

$14 864 349 

.,., cl investment income consists of expected investment income al the actuarially assumed rate of return, net of investment expenses, 

and an adj ustment for market value changes. 

,, The actuarial va lue of assets docs not yet fu ll y recognize past investment gains and losses, which wi ll affect future actuarial 

investment returns. 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 20 
CK704

• • • 

Historical Investment Returns 

,. Actuarial planning is long term. The obligations of a pension plan arc expected to continue for the lifetime of all its participants . 

.,.. The assumed long-term rate of return of 7.00% considers past experience. the Trustees· asset allocation policy and future expectations. 

40% 

30% 

20% 

10% 

0% 

-10% 

-20% 

-30% 

MARKET VALUE AND ACTUARIAL RATES OF RETURN 

FOR YEARS ENDED AUGUST 31 

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20 12 20 13 2014 2015 2016 2017 2018 

-+-Actuarial Value _.,_Market Value 

Avera e Rates of Return Actuarial Value Market Value 

Most recent year return: 

Most recent five-year average return: 

Ten-year average return: 

20-year average return: 

7.72% 

9.84% 

3.17% 

5.63% 

8.74% 

8.09% 

5.09% 

4.56% 

Section 2: Actuarial Valuation Results as of September 1, 201 8 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 21 
CK705

• • • 

Non-Investment Experience 

Administrative Expenses 

,. Administrative expenses for the year enclc<l August 3 1.2018 tota led $2,260,251. as compared to the assumption o f $ 1,500.000. The 

inc rease was prima ril y due to the expenses associated with the MPRA suspe nsion applicatio n. 

Mortality Experience 

-,,. Morta lity experience (more or fewe r than expected dea ths) yie lds actuaria l gains or losses. 

'r The number of deaths for nondisabl cd pe nsione rs over the past year was 137 compared to 12 1.8 projected deaths per year. The 

number of de aths fo r disabled pensioners over the past year was 6 compared to 5.0 proj ected deaths. The average number o f deaths for 

pe nsioners is too sma ll to be sta tistically credible. The mortality ta ble used was published by the Society of Actuaries a nd is 

appropriate for the valuatio n o f this plan. 

Other Experience 

• Other diffe rences between projected and actual experience inc lude the exte nt of turnover among the participants, and retirement 

experience (earlier or later than projected). 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund ft Segal Consulting 22 
CK706

• • • 

Actuarial Assumptions 

,, The following assumptions were changed with this va luation: 

• Administrative expenses were increased to $2,200,000 for the yea r beginning September I.20 18, $ 1,800.000 for 201 9. and 

S 1,300,000 for 2020 with 1.5% inflation therea fter. 

• Effective September I. 20 18, the 111011ality assumption was updated lo use gencrntion Scale MP-20 I 8. 

• The retirement rates for active and inactive vested parti cipants \.Ve re revised based on past experi ence and future expectations. 

,.. These changes increased the nonna l cost by 0.5% and a de minirnis increase in actuarial accrued liability. 

,.. Details on actuarial assumptions and methods arc in Senion 4. Exhihit 8. 

Plan Provisions 

,,.. There were no changes in plan provisions for FSA purposes since the prior val uation. 

;.. A summary of plan provisions is in Section 4. F:xhihit 9. 

Contribution Rate Changes 

, The average contribution rate per hour as of this valuation increased to S7.3678. 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 23 
CK707

• • • 

Pension Protection Act of 2006 

2018 Actuarial Status Certification 

,, PPA ·06 requires trustees to acti vely monitor their plans· financial prospects lo identify 

emerging funding challenges so they can be addressed effectively. Details are shown in 

Sectinn 3. Exhihit K. 

Year Zone Status 

,, The 201 8 certification, completed on ovember 29.201 8. was based on the liabilities 

calculated in the September I, 201 7 actuarial valuation. adjusted for subsequent events 

and projected to August 3 1. 201 8, and estimated asset in formation as of 

August 31, 20 18. The Trustees provided an industry acti vity assumption of an active 

population dec lini ng 5.6% in 2018 and 2% annuall y thereafter. with contri butions made 

for 1,850 hours per yea r for each active participant. 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

GREEN 

GREEN 

RED 

RED 

RED 

RED 

RED 

RED ,. This Plan was classified as critical and is also critical and declining (in the Red 7nne ) 

because there is a deficiency in the FSA and the Plan was projected to be insolvent within 

15 years. 2016 RED (C&D) 

, In addition. the Plan is making the scheduled progress in meeting the requirements of its 

rehabilitation plan. 

2017 RED (C&D) 

2018 RED (C&D) 

Rehabilitation Plan 

,, The Plan ·s Rehabilitation period began September I, 201 3 and ends August 31 , 2048. 

, Section 432(c)(3)(8) require that the Trustees annuall y update the Rehabilitation Plan and Schedules. 

, Based on this valuation. projections show the Pl an is not expected to emerge from critical status within the Rehabilitation Period. 

,, The annual standards detailed in the Rehabilitation Plan of avoiding insolvency before 2024 is projected to be met. 

, Segal will continue to assist the Trustees to evaluate and update the Rehabilitation Plan and to prepare the required assessment of 

Scheduled Progress. We arc working with the Trnstecs to update the Rehabilitation Plan including exploring a potential benefi t 

suspension under MPRA. 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 24 
CK708

• • • 

Funding Standard Account (FSA) 

<I) 

C 

i 

~ V) 

, The minimum fundi ng requirement for the year beginni ng September 1, 20 18 is S 127,436.231. 

,.. Based on the as. umption that 695 paiticipants will work an average of 1.850 hours at a S7.36 78 average contribution rate, the 

contributions projected fo r the yea r beginning September I, 20 18 are $9.4 73, 149. The funding deficiency is projected to increase by 

approx imately $29.5 million to S 109.9 million as of August 31, 20 19. 

,.. A 15-ycar r,rojection indicates the funding deficiency will continue to grow. assuming that: 

• The Plan will cam a market rate of return equal to 7.00% each year. 

• All other experience emerges as assumed. no assumption changes arc made. 

• There are no plan amendments or changes in luw/regulation. and 

• Administrative expenses are r,rojectcd to increase 1.5% r,er year. 

,. The projection is based on a dec lining number of acti ve cmr,loyees and 1 .850 hours per capita. with future normal cost increasing by 0.2% r er year. 

100 

0 ~- ... , ..... 

- 100 

-200 

-300 

-400 

2014 

CREDIT BALANCE AS OF AUGUST 31 

'''" 

~ I I 

2017 2020 2023 2026 2029 

Additional scenarios would demonstrate sensitivity to risk from investment 

return, employment and other factors. 

2032 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 

25 
CK709

• • 

PPA'06 Funded Percentage Historical Information 

400 

350 

300 (/) 

250 C 

,g 

2 200 

~ 150 

100 

50 

0 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

2009 2010 

PRESENT VALUE OF ACCRUED BENEFITS (PVAB) VS. 

ACTUARIAL VALUE OF ASSETS AS OF SEPTEMBER 1 

2011 20 12 2013 2014 2015 20 16 

• PVAB • Actu arial Value of Assets 

PPA '06 FUNDED PERCENTAGE AS OF SEPTEMBER 1 

• 

2017 2018 

42.6% 

2009 20 10 --- 2011 2012 20 13 20 14 2015 2016 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

2017 20 18 

* Segal Consulting 26 
CK710

• • • 

Solvency Projection 

V) 

C 

~ 

~ 

Vl 

, PPA ·00 requires Trustees to monitor plan solvency - the ability to pay benefits and expenses when due. MPRJ\ classifies reel zone 

plans that are projected to become insolvent within 15 or 20 years as ··critical and declining.·· Sec Section 3. Exl,ihir K for more 

infomrntion. 

, This Plan was certi fied as cri tical and declining based on a projected insolvency in 11 years. 

,. Based on this valuation. asset. are projected to be exhausted in 2030, as shown below. This is two years later than projected in the 

prior year va luation. 

,. This projection is based on the negotiated contri bution rate . . the current va luation assumptions and the Trustees· industry acti vity 

assumptions. This projection docs not rencct the contribution rate increases under the Rehabilitation Plan. Reflecting future rate 

increases required under the Rehabilitation Plan, the Pl an is projected to be insolvent in the year ending J\ugust 31, 2032. 

,, The Pl an is orerating under a Rehabi litation Plan that is intended to fore stall insolvency. 

160 

140 

120 

100 

80 

60 

40 

20 

0 

2019 2020 

PROJECTED ASSETS AS OF AUGUST 31 

I I I 

2021 2022 2023 2024 2025 2026 2027 

Additional scenarios would demonstrate sensitivity to 

investment return, employment and other alternative assumptions. 

2028 

• 

2029 ~ 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund --X-- Segal Consulting 27 
CK711

• • 

Funding Concerns 

;... The imbalance between the benefit levels in the Plan and the resources avai lable to pay fo r them must be monitored. 

, The growing fu nding defi ciency and the projected inability to pay benefits need prompt attention. 

• 

:,.. We arc working with the Trustees to develop alternatives to add ress this situation including updating the Rehabilitation Plan if needed 

and exploring a possible benefit suspension under MPRA. 

, The actions already taken to address this issue include plan changes and scheduled contribution rate increases per the Rehabilitation 

Plan. 

, Since the actuarial va luation results arc dependent on n given set of assumrtions, there is a risk that emerging results may differ 

signifi cantly as actual experience proves to be different from the assumptions. We have included a list of va rious risks that may affect 

the Plan. 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 28 
CK712

• • • 

Risk 

,. The actuarial va luation results arc dependent on a single set of a sumptions: however. there is a risk that emerging results may di ffcr 

signi licantly as actual experience proves to be di ffcrent from the current assumptions. 

',. \A/e have not been engaged to pcrfom, a detailed analysis of the potential range of the in1pact or risk relative to the P1an·s future 

financial condition. but have included a brief discu sion of some risks that may affect the Plan. 

,- A rnore detai led asscssn,cnt of the ri sks wou1d provide the Trustees \~1ith a better understanding of the risks inherent in the Plan. ·rhis 

assessment may include scenario testing, sensiti vity testing. stress testing and stochastic modeling. 

,. A detailed ri k assessment could be important for your Plan because: 

• the Plan assets arc quickly diminishing. 

• retired participants account for most of the Plan·s liabilit ies leavi ng limited options for reducing Plan costs in the event of adverse 

experience. 

• the Trustees may want to consider the option. available under MPR/\. 

, Investment Risk (the risk that returns wi II be di ffcrent than expected) 

-,, Withdrawal Liability Payme111 Risk 

, Other Demographic Risk (the risk that participant experience will be different than assumed) 

,. Maturity Measures 

The risk associated with a pension plan increases as it become. more mature. meaning thm the actives represent a smaller portion of 

the liabilities of the plan. When this happens. there is a greater risk that tluctuations in the experience or the non-active participants or 

of the assets of the plan can result in large swings in the contribution requirements. 

• In addition to Plan risks. external risks inc lude legislative. regu latory or financial reporting changes that cou ld impact the Plan·s 

funding and disclosure requirements. 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 

29 
CK713

• • 

Withdrawal Liability 

",, /\s of August 3 1. 2018. the preliminary actuarial present value of vested plan benefits for withdrawal liability purposes is 

$382,989,27 1. 

• 

,. Reducti ons in accrued benefi ts or contri bution surcharges for a plan in critical status (Red Zone) are disregarded in determini ng an 

employer's allocation of the UVB. The Trnstecs have adopted a method for ca lculating the UVB effecti ve for withdrawals that occur 

on and after September I. 2011 . The method is based on the PBGC"s Technical Update 10-3. which describes how to account for the 

e ffect of benefit reductions that arc implemented as part of a Rehabilitation Plan ('·J\ffected Benefits") when a pension plan is in 

critica l status. 

,... The una11101tizcd value of all Affected Renefirs pools (as shown in the chart below) is also inc luded in the total present value of vested 

benefits of S389,092,202 as of August 3 1, 20 18. 

,. The S 13.325,348 decrease in the un funded present value of vested benefi ts from the prior year is primarily due to the actuarial gain for 

the year ended August 3 1. 20 18. 

August 31 

- - -- ---- ~- ~ ----- 2017 2018 

1 PVVB measured for withdrawal purposes $403,41 0,828 $382,989,271 

2 Unamortized value of Affected Benefits Pools 6,646,387 6,102,931 

3 Total present value of vested benefits: 1 + 2 410,057,215 389,092,202 

4 Market Actuarial value of assets 146,959,183 139,319,518 

5 Unfunded present value of vested benefits (UVB): 3 - 4 , not less than $0 $263,098,032 $249,772,684 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund ft Segal Consulting 30 
CK714

• • • 

Withdrawal Liability Assumptions 

, The actuaria l assumptions and methods arc reasonable (taking into account the experience of the Plan and rea ·onablc expectations) 

and, in combination. represent the actuary·s best estimate of anticipated experience under the Plan to determine the unfunded vested 

benefits for withdrawal liabi lity purposes. 

, The interest rate is based on a blend. which includes rates selected ba cd on estimated annuity purcha e rates for benefits being settled, 

because withdrawal liability is a final settlement ofan employer"s obligations to the Plan. For benefits that could be settled 

immediately. because assets on hand arc suffi cient, the annuity purchase rates are those promulgated by PBGC under 

ERIS/\ Sec. 4044 for rnu ltiemploycr plans terminating by mass withdrawal on the measurement date. For benefits that cannot be 

scllled immediately because they arc not currently funded. the calculation uses rates equal 10 the interest rate used for plan fundi ng 

calculations. 

Interest 

Administrative 

Expenses 

Mortality 

Retirement Rates 

For liabilities up to market value of assets, 2.53% for 25 years and 2.64% beyond (2.44% for 20 years and 2.74% beyond, in 

the prior year valuation). For liabilities in excess of market value of assets. same as used for plan funding as of 

September 1, 2018 (the corresponding funding rate as of a year earlier was used for the prior year's value). 

Calculated as prescribed by PBGC formula (29 CFR Part 4044. Appendix C); not applicable to those liabilities determined 

using funding interest rates. 

Same as used for plan funding as of September 1, 2018 (the corresponding mortality rates as of a year earlier were used for 

the prior year's value) 

Same as used for plan funding as of September 1, 2018 (the corresponding retirement rates as of a year earlier were used 

for the prior year's value) 

Section 2: Actuarial Valuation Results as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund -X- Segal Consulting 31 
CK715

• • • 

Section 3: Supplementary Information 

EXHIBIT A - TABLE OF PLAN COVERAGE 

~

---- _____ 'r_ear End~gust 31 ------1 

I I Change from 

Cate o 2017 I 2018 I Prior Year 

Participants in Fund Office tabulation 758 

Less: Participants with less than one pension credit 66 

Active participants in valuation: 

• Number 692 

• Average age 50.3 

• Average pension credits 13.9 

• Average contribution rate for upcoming year S6.9393 

• Number with unknown age and/or service information 73 

• Total active vested participants 524 

Inactive participants with rights to a pension: 

• Number 919 

• Average age 62.2 

• Average estimated monthly benefit $989 

• Beneficiaries with rights to deferred payments 16 

Pensioners: 

• Number in pay status 2,166 

• Average age 76.9 

• Average monthly benefit S963 

• Number of alternate payees in pay status 24 

• Number in suspended status 8 

Beneficiaries: 

• Number in pay status 639 

• Average age 78.6 

• Average monthly benefit $303 

Total Participants 4,440 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

751 -0.9% 

56 N/A 

695 0.4% 

50.1 -0.2 

13.6 -0.3 

S7.3678 6.17% 

14 -80.8% 

515 -1 .7% 

739 -19.6% 

57.0 -5.2 

$1 ,066 7.8% 

15 -6.3% 

2,090 -3.5% 

77.1 0.2 

$976 1.3% 

24 0.0% 

8 0.0% 

648 1.4% 

79.1 0.6 

$325 7.3% 

4,195 -5.5% 

ft Segal Consulting 32 
CK716

• • • 

EXHIBIT B - PARTICIPANT POPULATION 

Year Ended Active Inactive Vested Pensioners and Ratio of Non-Actives 

Au ust 31 Particl ants Partlci ants Beneficiaries to Actives 

2009 1,014 1.055 3,387 4.38 

2010 900 1,026 3,337 4.85 

2011 823 977 3,284 5.18 

2012 799 936 3,228 5.21 

2013 745 928 3,147 5.47 

2014 762 892 3,047 5.17 

2015 746 866 2,950 5. 12 

2016 71 4 954 2,866 5.35 

2017 692 935 2,813 5.42 

2018 695 754 2,746 5.04 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund ---X- Segal Consulting 33 
CK717

• 

Year Ended 

Au ust 31 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

. -

1,720,548 

1,546,363 

1,373,063 

1,506,274 

1,446,566 

1,410,162 

1,438,233 

1,554,780 

1,328,491 

1,270,352 

• 

EXHIBIT C - EMPLOYMENT HISTORY 

. - . ; . - • a 

-16.8% 1,014 -3.3% 

-10.1% 900 -11 .2% 

-11.2% 823 -8.6% 

9.7% 799 -2.9% 

-4.0% 745 -6.8% 

-2.5% 762 2.3% 

2.0% 746 -2.1% 

8.1% 714 -4.3% 

-14.6% 692 -3.1% 

-4.4% 695 0.4% 

Five-year average hours: 

Ten-year average hours: 

• 

.. 1,697 -13.9% 

1,718 1.2% 

1,668 -2.9% 

1,885 13.0% 

1,942 3.0% 

1,851 -4.7% 

1,928 4.2% 

2,174 13.0% 

1,920 -11 .8% 

1,828 -4.8% 

1,938 

1,860 

' The total hours of contributions are based on total contributions divided by the average contribution rate for the year. which may differ from the hours 

reported lo the Fund Office. 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 34 
CK718

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

• 

Total 

Number 

70 

89 

107 

82 

51 

44 

60 

54 

53 

57 

Average 

Monthly 

Amount 

$1,206 

1,441 

1,796 

1,215 

749 

754 

1,093 

1.075 

1,171 

1,162 

• 

EXHIBIT D - NEW PENSION AWARDS 

_ Regular _ _ ______ Early -·---·- Disability __ _ _ 25 Year 

Number 

11 

10 

16 

20 

12 

9 

16 

13 

17 

20 

Average 

Monthly 

Amount 

$1 ,073 

1,393 

2,135 

1,289 

1,060 

1,262 

1,788 

1,500 

1,994 

1,743 

Number 

14 

20 

22 

25 

13 

9 

19 

20 

11 

16 

Average 

Monthly 

Amount 

$948 

1,766 

925 

1,041 

782 

747 

1,01 4 

1. 191 

1,144 

1,285 

Number 

5 

2 

Average 

Monthly 

Amount 

$1 ,552 

1,798 

Number 

5 

9 

7 

4 

Average 

Monthly 

Amount 

$1,557 

1,418 

2,053 

1,368 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

• 

30 Year Deferred •-•- -----------··------·-· 

Number 

15 

18 

35 

6 

Average 

Monthly 

Amount 

$1,954 

2,495 

3,082 

3,297 

Number 

20 

32 

25 

27 

26 

26 

25 

21 

25 

21 

-l'T" Segal Consulting 

Average 

Monthly 

Amount 

$723 

667 

471 

834 

589 

580 

710 

700 

624 

517 

35 
CK719

• • 

EXHIBIT E - PROGRESS OF PENSION ROLLS OVER THE PAST TEN YEARS 

IN PAY STATUS AT YEAR END 

Average Average 

Year Number A e Amount Termlnatlons1 Addltlons2 

2009 2,741 74.6 $751 156 70 

2010 2,686 74.9 778 144 89 

2011 2,616 74.9 833 177 107 

2012 2,557 75.2 864 141 82 

2013 2.494 75.6 873 114 51 

2014 2,399 76.1 891 139 44 

2015 2,303 76.4 914 160 64 

2016 2,214 76.6 936 143 54 

2017 2,166 76.9 963 103 55 

2018 2.090 77.1 976 143 67 

1 Terminations include pensioners who died or were suspended during the prior plan year. 2 Additions to the pension rolls include new pensions awarded and suspended pensioners who have been reinstated. 

• 

Section 3: Supplementary Information as o f September 1, 2018 for the Local 807 Labor-Management 

Pension Fund * Segal Consulting 36 
CK720

• • • 

EXHIBIT F - SUMMARY STATEMENT OF INCOME AND EXPENSES ON AN ACTUARIAL BASIS 

I Year Ended Au ust 31, 2017 I Year Ended Au ust 31, 2018 

Contribution income: 

• Employer contributions $8,443,862 $8,815,351 

• Withdrawal liability 1,186,042 1,560,642 

Net contribution income $9,629,904 

Investment income: 

• Expected investment income $10,758,236 $9,541,499 

• Adjustment toward market value 1,537,828 985,290 

Net investment income 12,296,064 

Total Income available for benefits $21 ,925,968 

Less benefit payments and expenses: 

• Pension benefits -$27,708,903 -$27,611 ,270 

• Administrative expenses -1,314,420 -2,260,251 

Total benefit payments and expenses -$29.023,323 

C .... In actuartal Yalue of nuts 

Actuarial value of assets $147,543,512 

Market value of assets $146,959,183 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

$10,375,993 

10.526.789 

$20,902,782 

-$29,871,521 

- 8 

$138,574,773 

$139,319,518 

* Segal Consulting 37 
CK721

• • • 

EXHIBIT G - INVESTMENT RETURN - ACTUARIAL VALUE VS. MARKET VALUE 

Actuarial Value I Market Value I I Actuarial Value I Market Value 

Investment Return Investment Return ' Investment Return Investment Return 

Year Ended I : : I I Year Ended I , Au ust 31 I Amount , Percent1 ! Amount Percent Au ust 31 Amount Percent1 Amount I Percent 

1999 $32,593,357 12.42% $47,058,801 14.76% 2009 -$34,867, 728 

2000 81,834,042 29.71% 59,512,080 17.18% 2010 8,037,106 

2001 29,277,005 8.67% -62,881,065 -16.28% 2011 13,604,781 

2002 1,199,191 0.35% -11.203. 792 -3.71% 2012 -4.948.828 

2003 15,178,041 4.65% 22,386,314 8.28% 2013 3,153.095 

2004 2,946.1 48 0.92% 23,032,687 8.45% 2014 18,835,084 

2005 -2.324, 160 -0.76% 26,801,814 9.73% 2015 16,885,950 

2006 15,090,705 5.36% 13,791,691 4.89% 2016 12,772,694 

2007 22,473,083 8.12% 26,072,256 9.44% 2017 12,296,064 

2008 14,984,096 5.39% -16,025.521 -5.71% 2018 10,526.789 

Total $269,546,515 

Most recent five-year average return: 

Most recent ten-year average return: 

20-year average return: 

Note: Each year's yield is weighted by the average asset value in that year. 

1 The investment return for 2000 includes the effect of a change in the method for determining the actuarial value of assets. 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

-12.73% -$45,016,697 -18.32% 

3.69% 10,326,551 5.76% 

6.71% 24,761 ,516 14.84% 

-2.56% 16,223,983 9.65% 

1.91% 18,022.130 11 .16% 

12.72% 27,727.402 17.41% 

11.34% -3,820,930 -2.26% 

8.61% 10,745,723 7.28% 

8.57% 14,376,699 10.2 1% 

7.72% 11,855,863 8.74% 

$213,747,505 

9.84% 8.09% 

3.17% 5.09% 

5.63% 4.56% 

ft Segal Consulting 38 
CK722

• • • 

EXHIBIT H - ANNUAL FUNDING NOTICE FOR PLAN YEAR BEGINNING 

SEPTEMBER 1, 2018 AND ENDING AUGUST 31, 2019 

2018 2017 2016 

Actuarial valuation date 

Funded percentage 

Value of assets 

Plan Year Plan Year Plan Year 

September 1, 2018 September 1, 2017 

42.0% 42.6% 

S138,57 4,773 $147,543,512 

Value of liabilities 329,865,553 346,728.132 

Fair market value of assets as of plan year end Not available 139,319,518 

Critical or Endangered Status 

The Plan was in crit ica l status in the plan year because a funding deficiency exists. 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund 

September 1, 2016 

46.7% 

$154,640,867 

331,036,014 

146,959,183 

--X- Segal Consulting 39 
CK723

• • • 

EXHIBIT I - FUNDING STANDARD ACCOUNT 

,, ERISA imposes a minimum funding standard that requires the Plan to maintain an FSA. The accumulation of contributions in excess 

of the minimum required contributions is ca lled the FSA credit balance. rractual contri hutions fa ll short on a cumulative basis, a 

funding deficiency has occurred. 

,,. The FSA is charged with the normal cost and the amortization of increases or decreases in the unfunded actuarial accrued liability due 

to rlan amendments, experience gains or losses, and changes in actuarial assumptions and funding methods. The rSA is credited with 

employer contributions and withdrawal liability payments. 

,,. Increases or decreases in the unfunded actuarial accrued liability are amortized over 15 years except that sho1t-term benefits. such as 

13th checks. arc arnortized over the scheduled payout period . 

,,. On August 31 , 2018, the rSA had a funding deficiency of$80,384. 128, as shown on the 2017 Schedule MB. Contributions meet the 

lega l requirement on a cumulative basis if that account shows no deficiency. 

FSA FOR THE YEAR ENDED AUGUST 31 , 2018 

Char es i Credits 

1 Prior year funding deficiency $45,628.883 6 Prior year credit balance $0 

2 Normal cost. including administrative expenses 2,879,618 7 Employer contributions 10,375,993 

3 Total amortization charges 40,216.249 8 Total amortization credits 3,591 ,089 

4 Interest to end of the year 6,210,733 9 Interest to end of the year 584,273 

5 Total charges $94,935,483 10 Full-funding limitation credit Q 

11 Total credits $14,551,355 

Credit balance (Funding deficiency): 

11 • 5 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund fr Segal Consulting 40 
CK724

• • • 

EXHIBIT J - MAXIMUM DEDUCTIBLE CONTRIBUTION 

,. Employers that contribute to defined benefit pension plans arc allowed a current deduction for payments to such plans. There are 

various measures of a plan·s funded level that arc considered in the development of the maximum deductible contribution amount. 

,. One of the lin1ils is the excess of 140% of··eurrent linbility .. over assets. ·'Current liability .. is one measure of the actuarial present 

value of all benefit: earned by the participants as of the va luation date. This limit is significantl y higher than the current contribution 

level. 

,. Contri butions in excess of the maximum deductible amount arc not prohibited: only the deductibility of these contributions is subject 

to challenge and may have to be deferred to a later year. In addition. if contributions arc nol full y deductible, an excise tax in an 

amount equal to I 0% of the non-deductible contributions may be imposed. However. the plan sponsor may elect to exempt the nondeducti ble an10unl up to the ERISA full-funding limitation from the excise tax. 

,. The Trustees should review the interpretation and applicability of all laws and regulations concerning any issues as to the deductibil ity 

of contribution amounts with Fund Counsel. 

1 Normal cost, including administrative expenses 

2 Amortization of unfunded actuarial accrued liability 

3 Preliminary maximum deductible contribution: 1 + 2 , with interest to the end of the plan year 

4 Full-funding limitation (FFL) 

5 Preliminary maximum deductible contribution, adjusted for FFL: lesser of 3 and 4 

6 Current liability for maximum deductible contribution, projected to the end of the plan year 

7 Actuarial value of assets, projected to the end of the plan year 

8 Excess of 140% of current liability over projected assets at end of plan year: (140% of (6)] - (7), not less than zero 

9 End of year minimum required contribution 

Maximum deductlble contribution: greatest of 5, 8, and 9 

$3,614,528 

26,373,138 

S32,086,803 

367. 192,800 

32,086,803 

538,080,738 

117,079,864 

636,233,169 

127,436,231 

$636,233,169 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund "ft Segal Consulting 41 
CK725

• • • 

EXHIBIT K - PENSION PROTECTION ACT OF 2006 

PPA'06 Zone Status 

,.. Based on projections of the credit balance in the FSA. the funded percentage, and cash flow sufficiency tests, plans arc categorized in 

one of the ··zones .. described below. 

;.... The funded percentage is determined using the actuaiial va lue of assets and the present value of benefits earned lo date, based on the 

actuary's best estimate assumptions. 

A plan is classified as being in critical status (the Red Zone) if: 

• The funded percentage is less than 65%, and either there is a projected FSA deficiency within five years or the plan is projected to 

be unable to pay benefits within seven years. or 

• There is a projected FSA deficiency within four years. or 

• There is a projected inability to pay benefits within five years. or 

• The present value of vested benefits for inactive participants exceeds that for actives, contributions are less than the value of the 

current year's benefit accruals plus interest on existing unfunded accrued benefit liabilities, and there is a projected FSA deficiency 

within five years, or 

• As permitted by the Multiemployer Pension Reform Act of 2014, the plan is projected to be in the Red Zone within the next five 

years and the plan sponsor elects to be in critical status. 

A critical status plan is further classified as being in critical and declining status if: 

• The ratio of inactives to actives is at least 2 to 1. and there is an inability to pay benefits projected within 20 years, or 

• The funded percentage is less than 80%, and there is an inability to pay benefits projected within 20 years, or 

• There is an inability to pay benefits projected within 15 years. 

Any amortization extensions are ignored for testing initial entry into the Red Zone. 

The Trustees are required to adopt a formal Rehabilitation Plan, designed to allow the plan to emerge from critical status by the end 

of the rehabilitation period. If they determine that such emergence is not reasonable, the Rehabilitation Plan must be designed to 

emerge as of a later time or to forestall possible insolvency. 

Trustees of Red Zone plans have tools. such as the ability to reduce or eliminate early retirement subsidies. to remedy the situation. 

Accelerated forms of benefit payment (such as lump sums) are prohibited. However, unless the plan is critical and declining, 

Trustees may not reduce benefits of participants who retired before being notified of the plan's critical status (other than rolling back 

recent benefit increases) or alter core retirement benefits payable at normal retirement age. 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund ft Segal Consulting 42 
CK726

• 

Green Zone 

• ' ;~•JI ' • f.1" 

• .... < 

l . • '~ . :H n : ~~ ~i,~,~ ' 

• • 

A plan not in critical status (Red Zone) is classified as being in endangered status (the Yellow Zone) if: 

• The funded percentage is less than 80%. or 

• There is a projected FSA deficiency within seven years. 

A plan that has both of the endangered conditions present is classified as seriously endangered. 

Trustees of a plan that was in the Green Zone in the prior year can elect not to enter the Yellow Zone in the current year (although 

otherwise required to do so) if the plan's current provisions would be sufficient (with no further action) to allow the plan to emerge 

from the Yellow Zone within 10 years. 

The Trustees are required to adopt a formal Funding Improvement Plan, designed to improve the current funded percentage, and 

avoid a funding deficiency as of the emergence date. 

A plan not in critical status (the Red Zone) nor in endangered status (the Yellow Zone) is classified as being in the Green Zone . 

Trustees of a Green or Yellow Zone plan that is projected to enter the Red Zone within the next five years must elect whether or not 

to enter the Red Zone for the current year . 

Section 3: Supplementary Information as of September 1, 2018 for the Local 807 Labor-Management 

Pension Fund --X- Segal Consulting 43 
• • 

Section 4: Certificate of Actuarial Valuation 

JUNE 24, 2019 

CERTIFICATE OF ACTUARIAL VALUATION 

This is to certify that Segal Consulting. a Member of The Segal Group, Inc. ( .. Segal"") hus prepared an actuari al va luation o r the Local 807 LaborManagement Pension Fund as of September I. 2018 in accordance with generally accepted actuarial principles and practices. It has been prepared 

at the request of the 13oard of Trustees to assist in administering the runcl and meeting fi ling requirements of federal govemment agencies. This 

valuation report may not otherwise be copied or reproduced in any form without the consent of" the l3oard ofTrustccs and may only be provided 

to other parties in it · entirety. 

The measurements shown in this actuarial valuation may not be appl icable for other purposes. Future actuaria l measurements may diffor 

sig:ni fi cantl y from the current measurement~ presented in this report due to uch factors as the following: plan experience differing from that 

anticipated by the economic or demographic assumr,tions; changes in economic or dernogruph ic assumptions; increases or decreases expected as 

part oft he natura l operation or the methodology used for these measurements (such as the end of an amorti7.ation period or additiona l cost or 

contribution requirements based on the plan's fu nded status): and change. in plan provisions or applicnble law. 

Tht: valuation is based on the assumption th.it the Plan is qualified as a multiemploycr plan for the year and on information suppl ied by the 

auditor with respect to contri butions and assets and reliance on the Plan Administrator with respect to the r,articipant data. Segal Consulting does 

not audit the data provided. The accurncy and eomprehcnsivcncs~ o rthe daw is the responsibi lity of those supplying the data. To the extent we 

can. howevi.:r, Segal docs review the uata for reasonableness and consistency. Rasecl on our review of the data, we have no reason to doubt the 

substantia l accuracy of the information on which we have based thi~ report and we have no reason to believe there arc facts or circumstances that 

would affect the validity of these results. Adj ustments for incompl ete or apparently inconsistent data were made as described in the attached 

l\·hihit 8. 

I am a member of the American Academy of Actuaries and l meet the Qualification Standards of the American Academy of Actua ries to render 

the actuari al opi ni on herein. To the best or my knowledge. the info1111ation supplied in this actuarial valuation is complete and accurate. except as 

noted in Exhibit/. Eac h prc~cribed a sumption for the determination of Current Liability was applied in accordance with applicable law and 

regulations. In my opinion. each other assumption is reasonable (taki ng into account the experience of the plan and rcnsonable expectations) nnd 

· · · ,at ion. offer my best estimatc of anticipated experience under the plan. 

Vice President and Actuary 

Enrolled Actuary ·o. 17-06166 

Section 4: Certificate of Actuarial Valuation as of September 1. 2018 for the Local 807 LaborManagement Pension Fund 'ft Segal Consulting 44 

CK727 
CK728

• 

EXHIBIT 1 - SUMMARY OF ACTUARIAL • VALUATION RESULTS 

The va luation was rnauc with respect to the following data supplied to us by the Plan Administrntor: 

Pensioners as of the valuation date (including 648 beneficiaries in pay status and eight pensioners in 

suspended status) 

Participants inactive during year ended August 31. 2018 with vested rights (including one participant 

with unknown age) 

Participants active during the year ended August 31, 2018 (including 14 participants with unknown age) 

• Fully vested 

• Not vested 

Total ~ 

The actuarial factors as of the valuation date arc as follows: 

Normal cost, including administrative expenses 

Actuarial present value of projected benefits 

Present value of future normal costs 

Actuarial accrued liability 

• Pensioners and beneficiaries 1 

• Inactive participants with vested rights 

• Active participants 

Actuarial value of assets ($139,319,518 at market value as reported by Schultheis & Panetlieri, LLP) 

Unfunded actuarial accrued liability 

' Includes liabilities for 24 former spouses in pay status. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund 

515 

180 

$213,769,865 

56,964.353 

66,040,815 

2.746 

754 

695 

41 5 

$3,614,528 

345,994,376 

9,219,343 

336,775,033 

$138,574,773 

198,200,260 

* Segal Consulting 45 
CK729

• EXHIBIT 2-ACTUARIAL PRESENT VALUE • OF ACCUMULATED PLAN BENEFITS 

The actuarial present value or accumulated plan benefits calculated in accordance with FASB ASC 960 is shown below as of September I. 

201 7 and as of September I. 2018. In addition, the factors that affected the change between the two dates follow. 

Benefit Information Date -r-------------

Se tember 1, 2017 I Se tember 1, 2018 

Actuarial present value of vested accumulated plan benefits: 

• Participants currently receiving payments 

• Other vested benefits 

• Total vested benefits 

Actuarial present value of non-vested accumulated plan benefits 

Total Htuartal present value of accurnulatacl plan beheflta 

$218,616,602 

127,587,346 

$346,203,948 

524,184 

$346,728,132 

$213,769,865 

115,591 .447 

$329,361,312 

504,241 

Change in Actuarial 

Present Value of 

Factors Accumulated Plan Benefits 

Plan amendments 

Benefits accumulated, net experience gain or loss. changes in data 

Benefits paid 

Changes in actuarial assumptions 

Interest 

Total 

Sectio n 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Lo cal 807 Labor• 

Management Pension Fund 

$0 

-$12,543,815 

-27.611,270 

68,464 

23,224,042 

* Segal Consulting 46 
CK730

• 

EXHIBIT 3 - CURRENT 

• 

LIABILITY 

The table below presents the current liability for the Plan Year beginning September I. 20 I 8. 

Retired participants and beneficiaries receiving payments 

Inactive vested participants 

Active participants 

• Non-vested benefits 

• Vested benefits 

• r otal active 

$1,722,397 

125,094,730 

$301,250,544 

116,524.333 

Total $126,817, 127 ----....... --~--'---~---'--------------------__, ______ _ 

Expected increase in current liability due to benefits accruing during the plan year 

Expected release from current liability for the plan year 

Expected plan disbursements for the plan year, including administrative expenses of $2,200,000 

Current value of assets2 

Percentage funded for Schedule MB 

1 

The actuarial assumptions used to calculate these values are shown in Exhibit 8. 2 Includes $19,789,596 In withdrawal liability payments receivable. 

Section 4: Certificate of Actuarial Valuation as of September 1, 201 8 for t he Local 807 LaborManagement Pension Fund 

$144,592.004 

$5,261,259 

27,868,732 

30,068,732 

$159,109,114 

29.2% 

* Segal Consulting 47 
CK731

• 

EXHIBIT 4- INFORMATION ON PLAN 

• STATUS AS OF SEPTEMBER 1, 2018 

Plan status (as certified on November 29, 2018, for the 2018 zone certification) 

Scheduled progress (as certified on November 29, 2018, for the 2018 zone certification) 

Actuarial value of assets for FSA 

Accrued liability under unit credit cost method 

Funded percentage for monitoring plan's status 

Year in which insolvency is expected 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund 

Critical 

Yes 

$138,574.773 

329.865.553 

42.0% 

2030 

* Segal Consulting 48 
CK732

• -------- ----- --- -

EXHIBIT 5- SCHEDULE OF PROJECTION 

• 

OF EXPECTED BENEFIT PAYMENTS 

(SCHEDULE MB, LINE 8b(1 }) 

Plan Expected Annual 

Year Benefit Pa ments1 

2018 $27,799,071 

2019 27,454,217 

2020 27,138,417 

2021 26,894,324 

2022 26,694,297 

2023 26,397,528 

2024 26,180,628 

2025 25,972,338 

2026 25,696,214 

2027 25,514,776 

' Assuming as of the valuation date: 

• no additional accruals, 

• experience is in line with valuation assumptions. and 

• no new entrants are covered by the plan. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 49 
CK733

• 

EXHIBIT 6- SCHEDULE OF 

• 

ACTIVE PARTICIPANT DATA 

(SCHEDULE MB, LINE 8b(2)) 

The participant data is for the year ended January 31, 2018. 

___ __ __ _ _____________________ _ ________ Pension Credits _____ _ 

A e Total 1-4 5-9 10-14 15 -19 20 • 24 25. 29 30 • 34 35 - 39 40 & over 

Under 25 

25 - 29 26 20 6 

30 - 34 45 32 8 5 

35 - 39 54 27 12 12 3 

40 - 44 68 17 13 14 16 8 

45 - 49 111 29 15 23 22 19 

50 - 54 125 21 13 20 22 26 

55 - 59 124 9 10 21 23 27 

60 - 64 89 8 7 19 13 18 

65 - 69 35 3 6 8 6 

70 & over 3 1 

Unknown 14 14 

Total 695 180 88 120 107 105 

Note: Excludes 56 participants with less than one pension credit. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund 

3 

15 8 

18 10 5 1 

8 10 5 

6 2 2 

50 30 12 3 

"ft Segal Consulting 50 
CK734

• EXHIBIT 7 - FUNDING 

• 

STANDARD ACCOUNT 

The table below presents the FSA for the Plan Y ca r ending August 3 1. 20 19. 

Char es I Credits 

1 Prior year funding deficiency $80,384,128 6 Prior year credit balance 

2 Normal cost, including administrative expenses 3,614,528 7 Amortization credits 

3 Amortization charges 40,216,971 8 Interest on 6 a nd 7 

4 Interest on 1, 2 and 3 8,695,094 9 Full-funding limitation credit 

5 Total c:tagee $132,910,721 10 Total credits 

Minimum contribution with interest required to avoid a funding deficiency: 5 - 10 , not less than zero 

ERISA FFL (accrued liability FFL) 

RPA'94 override (90% current liability FFL) 

FFL credit 

Full Fundln Limitation FFL and Credits 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund 

$0 

5,116,346 

358,144 

0 

SS,474,490 

$127,436,231 

S215,941,823 

367,192,800 

0 

* Segal Consulting 51 
CK735

• • 

EXHIBIT 7- FUNDING STANDARD ACCOUNT (CONTINUED) 

Schedule of FSA Bases (Charges} (Schedule MB, Line 9c} 

Date Amortization Years Outstanding 

T e of Base Established Amount Remalnln Balance 

Plan amendment 09/01/2009 $529,467 

Actuarial loss 09/01 /2009 5,822.349 

Combined and offset base 09/01 /2009 24,741 ,613 

Plan amendment 09/01/2010 41 ,383 

Actuarial loss 09/01 /2010 784,016 

Actuarial loss 09/01/2011 180,307 

Actuarial loss 09/01/2012 2,392,142 

Actuarial loss 09/01/2013 1,072,777 

Assumption changes 09/01/2014 718,260 

Actuarial loss 09/01/2016 8,293 

Assumption changes 09101/2016 2,268,4 17 

Actuarial loss 09/01/2017 159,514 

Assumption changes 09/01/2017 1,497,709 

Assumption changes 09/01 /2018 724 

Total $40,216,971 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund 

6 $2,700,385 

6 29,695,130 

2.22 52,850,226 

7 238,639 

7 4,521,062 

8 1,152,035 

9 16,676,333 

10 8,062,166 

11 5,763,014 

13 74,160 

13 20,285,742 

14 1,492,678 

14 14,015,035 

15 7,058 

$157,533,663 

-X- Segal Consulting 52 
CK736

• • 

EXHIBIT 7 - FUNDING STANDARD ACCOUNT ( CONTINUED) 

Schedule of FSA Bases (Credits) (Schedule MB, Line 9h) 

Date Amortization Years Outstanding 

T e of Base Established Amount Remalnln Balance 

Assumption changes 09/01/2010 $51,751 

Plan amendment 09/01/2011 2,522,660 

Actuarial gain 09/0112014 428,664 

Actuarial gain 09/01/2015 588,013 

Actuarial gain 09/01 /2018 1,525,258 

Total $5,116,346 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund 

7 $298,427 

8 16,118,004 

11 3,439,422 

12 4,997,329 

15 14,864,349 

$39,717,531 

* Segal C onsulting 53 
CK737

• 

Mortality Rates 

EXHIBIT 8- STATEMENT OF ACTUARIAL • ASSUMPTIONS/METHODS 

(SCHEDULE MB, LINE 6) 

Healthy: 

Disabled: 

RP-2014 Blue Collar Employee and Annuitant Mortality Tables (adjusted back to 2006) with 

generational Scale MP-2018 from 2006 

RP-2014 Disabled Annuitant Mortality Table {adjusted back to 2006) with generational Scale MP-2018 

from 2006 

The above mortality tables reasonably reflects the mortality experience of the Plan as of the measurement date. These 

mortality tables were then adjusted to future years using generational projection under Scale MP-2018 to anticipate 

future mortality improvement. 

The mortality rates were based on historical and current demographic data, adjusted to reflect estimated future 

experience and professional judgment. As part of the analysis, a comparison was made between the actual number of 

and the projected number based on the prior year's assumption over the most recent years. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 54 
CK738

Termination 

• 

Rates • 

L 

I -----------,-------------------------------- Rate(%) 

I t-----------------·------- i Mortality' Years of Service 

Withdrawal 2 

Ag·: ····· i---M- a-le---.--F- e-m- a-le---+-L;s- -ys-e-~h-r:-n--.-Y-!-;4-rs-..-Y:;~: :~-~~:: 

20 0.07 0.02 17.99 14.19 0.00 

25 0.07 0.02 21.74 17.14 12.96 

30 0.06 0.02 18.61 13.58 8.39 

35 0.07 0.03 16.78 11.02 7. 15 

40 0.10 0.05 15.91 10.35 6.01 

45 0.16 0.09 15.48 9.47 5.82 

50 0.26 0.13 15.60 8.90 5.32 

55 0.38 0.19 13.52 7.82 2.59 

60 0.64 0.31 13.63 7.84 2.12 

1 Mortality rates are shown from the base table and do not reflect any mortality projection. 

2 Withdrawal rates cut out at early retirement age. 

0.00 

0.00 

4.84 

5.02 

4.15 

3.73 

3.49 

0.88 

0.20 

The termination rates were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis, a comparison was made between the actual number of retirements by 

age and the projected number based on the prior year's assumption over the most recent years. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 55 
CK739

Retirement 

• 

Rates 

Description of 

Weighted Average 

Retirement Age 

• 

I Annual 

A e· Retirement Rates 

55 - 61 2% 

62 10 

63 6 

64 14 

65 16 

66 20 

67 14 

68 21 

69 17 

70 100 

• if eligible 

The retirement rates were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis. a comparison was made between the actual number of retirements by 

age and the projected number based on the prior years' assumption over the most recent years. 

Age 66, determined as follows: The weighted average retirement age for each participant is calculated as the sum of 

the product of each potential past or future retirement age times the probability of surviving from entry age to that age 

and then retiring at that age, assuming no other decrements. The overall weighted retirement age is the average of the 

individual retirement ages based on all the active participants included in the September 1, 2018 actuarial valuation. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 56 
CK740

Retirement 

• 

Rates for 

Inactive Vested 

Participants 

Future Benefit 

Accruals 

Unknown Data for 

Participants 

Definition of Active 

Participants 

Exclusion of Inactive 

Vested Participants 

Percent Married 

Age of Spouse 

• 

I 

Annual Annual 

Retirement Retirement 

Age 1 Rates Age 1 Rates 

55 16% 63 - 64 4% 

56 11 65 52 

57 - 58 66 29 

59 6 67 18 

60 9 68 8 

61 4 69 7 

62 17 70 100 

' if eligible 

The retirement rates for inactive vested participants were based on historical and current demographic data, adjusted lo 

reflect estimated future experience and professional judgment. As part of the analysis, a comparison was made 

between the actual number of retirements by age and the projected number based on the prior years' assumption over 

the most recent years. 

Employees are assumed to work 1,850 hours per year. 

The future benefit accruals were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis. a comparison was made between the assumed and the actual benefit 

accruals over the most recent years. 

Same as those exhibited by participants with similar known characteristics. If not specified. participants are assumed to 

be male. 

Active participants are defined as those with at least 250 hours in the most recent credit year and who have 

accumulated at least one pension credit, excluding those who have retired as of the valuation date. 

None 

50% 

Females three years younger than males. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 57 
CK741

Benefit 

• 

Election 

Delayed Retirement 

Net Investment Return 

Annual Administrative 

Expenses 

Actuarial Value of 

Assets 

Actuarial Cost Method 

Benefits Valued 

Current Liability 

Assumptions 

Estimated Rate of 

Investment Return 

• 

60% of participants assumed to elect the Single Life Annuity, 20% assumed to elect 50% Joint and Survivor Annuity. 

and 20% assumed to elect 75% Joint-and-Survivor Annuity. 

The benefit elections were based on historical and current demographic data. adjusted to reflect the plan design, 

estimated future experience and professional judgment. As part of the analysis, a comparison was made between the 

assumed and the actual option election patterns over the past several years. 

Inactive vested participants who are assumed to commence receipt of benefits after attaining normal retirement age 

qualify for delayed retirement increases. 

7.00% 

The net investment return assumption is a long-term estimate derived from historical data, current and recent market 

expectations, and professional judgment. As part of the analysis, a building block approach was used that reflects 

inflation expectations and anticipated risk premiums for each of the portfolio's asset classes as provided by Segal 

Marco Consulting, as well as the Plan's target asset allocation. 

$2,200,000, payable monthly, for the year beginning September 1, 2018 (equivalent to $2,121 ,235 payable at the 

beginning of the year). For the year beginning September 1, 2019, $1 ,800,000, and for 2020 onward, S1 ,300,000 

(with 1.5% annual inflation) 

The annual administrative expenses were based on historical and current data, adjusted to reflect estimated future 

experience and professional judgment. 

The market value of assets less unrecognized returns in each of the last five years. Unrecognized return is equal to the 

difference between the actual market return and the projected market return, and is recognized over a five-year period. 

The actuarial value is further adjusted, if necessary, to be within 20% of the market value. 

Entry Age Normal Actuarial Cost Method. Entry Age is the age at date of employment or, if date is unknown, current 

age minus pension credits. Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and are 

allocated by service, with Normal Cost determined as if the current benefit accrual rate had always been in effect. 

Unless otherwise indicated. includes all benefits summarized in Exhibit 9. 

Interest: 3.01%, within the permissible range prescribed under IRC Section 431(c)(6)(E) 

Mortality: Mortality prescribed under IRS Regulations 1.431 (c)(6)-1 and 1 .430(h)(3)-1 (a)(2): RP-2014 employee and 

annuitant mortality tables adjusted backward to the base year (2006) using Scale MP-2014. projected forward 

generationally using Scale MP-201 6. 

On actuarial value of assets (Schedule MB. line 6g): 7.64%, for the Plan Year ending August 31, 2018 

On current (market) value of assets (Schedule MB. line 6h): 8.64%. for the Plan Year ending August 31, 2018 

FSA Contribution Unless otherwise noted, contributions are paid periodically throughout the year pursuant to collective bargaining 

Timing (Schedule MB, agreements. The interest credited in the Funding Standard Account is therefore assumed to be equivalent to a 

line 3a) March 15 contribution date. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 58 
CK742

• 

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

• 

For purposes of determining current liability, the current liability interest rate was changed from 3.03% to 3.01% due to 

a change in the permissible range and recognizing that any rate within the permissible range satisfies the requirements 

of IRC Section 413( c)(6 )(E) and the mortality tables were changed in accordance with I RS Regulations 1 .431 ( c)(6)-1 

and 1.430(h)(3)-1. 

Based on past experience and future expectations, the following actuarial assumptions were changed: 

, Mortality rates for healthy participants. previously RP-2014 Blue Collar Mortality Tables (adjusted back to 2006) with 

generational projection using Scale MP 2017 from 2006. 

, Mortality rates for disabled participants, previously RP-2014 Disabled Annuitant Mortality Table (adjusted back to 

2006) with generational projection using Scale MP 2017 from 2006. 

, Retirement rates for active participants, previously: 

j Annual 

Age1 I Retirement Rates 

55-61 2% 

62 6 

63 5 

64 11 

65 16 

66 18 

67 11 

68 22 

69 14 

70 100 

1 if eligible 

Section 4: Certificate of Actuarial Valuation as of September 1, 201 8 for the Local 807 LaborManagement Pension Fund * Segal Consulting 59 
CK743

• 

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

(Cont'd) 

• ,. Retirement rates for inactive vested participants. previously: 

I Annual I Annual 

Retirement Retirement 

Age 1 Rates Age 1 Rates 

55 24% 63 10% 

56 6 64 3 

57 4 65 53 

58 2 66 29 

59 10 67 13 

60 7 68 5 

61 21 69 13 

62 20 70 100 

1 if eligible 

,. Annual administrative expenses. previously $1 ,500,000 year. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund * Segal Consulting 60 
CK744

• 

EXHIBIT 9 - SUMMARY • OF PLAN PROVISIONS 

(SCHEDULE MB, LINE 6) 

This exhibit summarizes the major provisions of the Plan included in the val uation. It is not intended to be, nor should it be interpreted as, a 

complete statement of all plan provisions. 

Plan Year 

Pension Credit Year 

Plan Status 

Regular Pension 

Early Retirement 

Vesting 

September 1 through August 31 

February 1 through January 31 

Ongoing plan 

• Age Requirement: 65 

• Service Requirement: 15 pension credits 

Amount: The total accrued benefit is the sum of each year's accrual based on 

1. The highest contribution rate prior to February 1. 201 0 for service earned prior to February 1, 2010. 

2. The highest contribution rate that was made for at least 250 hours during the pension credit year for 

service from February 1, 2010 to January 31, 2012. 

3. For service on and after February 1, 2012, the accrual rate is lesser of: 

(a) 1 % of product of number of hours for which contributions are due on behalf of the participant in 

credit year based on the contribution rate in effect on September 1, 2011 , or 

(b) Accrual rate under the Plan as of September 1, 201 1. 

The accrual rate effective May 1, 2001 for contribution rates $4.315 or more per hour, S 165 for each pension credit less 

than 25 plus $20.49 for each pension credit greater than 25. Lower benefit levels have been established for employees 

at lower contribution levels. 

Delayed Retirement Amount: Regular pension accrued at Normal Retirement Age (NRA), increased by 1.0% for each 

month greater than NRA. and 1.5% for each month greater than age 70. 

• Age Requirement: 55 

• Service Requirement: 15 pension credits 

• Amount: Regular pension accrued, actuarially, reduced from age 65 

• Age Requirement: None 

• Service Requirement: Five pension credits or 5 years of vesting service 

• Amount: Regular or early pension accrued based on plan in effect and contribution rate when last active 

• Normal Retirement Age: Later of age 65 or the participant's 51h anniversary of participation. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund ..X.-Segal Consulting 61 
CK745

Spouse

• 's PreRetirement Death 

Benefit 

Optional Forms of 

Benefits 

Participation 

Pension Credit 

Vesting Credit 

Contribution Rate 

Changes in Plan 

Provisions 

8930189v1/01 544.001 

• Age Requirement: None 

• 

• SeNice Requirement: 5 pension credits or 5 years of vesting service 

• Amount: 50% of the benefit employee would have received had he or she retired the day before he or she died and 

elected the joint and survivor option. If the employee died prior to eligibility for an early retirement pension, the 

spouse's benefit is deferred to the date employee would have first been eligible to retire. 

• Charge for Coverage: None 

50% Joint-and-Survivor 

75% Joint-and-Survivor 

Single Life Annuity 

Earliest of February 1 or August 1 after completion of 1,000 hours during a 12 consecutive month period. 

Hours Worked I 

Per Year Pension Credit 

Under 250 

250 - 499 

500 - 749 

750 - 999 

1,000 and over 

0 

1/4 

1/2 

3/4 

One year of vesting service for at least 1,000 hours. 

The average contribution rate as of September 1, 2018 is $7.3678. 

None 

Section 4: Certificate of Actuarial Valuation as of September 1, 2018 for the Local 807 LaborManagement Pension Fund --X- Segal Consulting 62 
CK746

Man~gement Pension Fund 

Actuarial Valuation and Review 

as of September 1, 2017 

.,, . 

This repor1 has been prepared at the request of the Board or Trustees to assist in administering the Fund and meeting filing requirements or federal goaernment agencies. This 

valuation report may not otherwise be copied or reproduced many form without the consent of the Board of Trustees and may only be provided to other parties in its entirety. 

The measurements shown in this ac1uarial valuahon may not be applicable for other purposes. 

Copyright© 2018 by The Segal Group, Inc. All rights reserved. 
* Segal Consulting 

333Wcsl 34th Snee• New Vo,k NY 10001-2402 

T 212.,-!;l.5000 www.seg,.1k:o.c.om 

April 25, 2018 

Board of Trustees 

Local 807 Labor-Management Pension Fund 

32-43 49th Street 

Long lsland City, New York 11103 

Dear Trustees: 

We are pleased to submit the Actuarial Valuation and Review as of September 1, 2017. It establishes the fonding requirements for the current 

year and analy,:es the preceding year's experience. It also summarizes lhe actuarial data and includes the actuarial infom1ation that is required 

to be filed with Fonn 5500 to federal government agencies. 

The census information upon which our calculations were based was prepared by the Fund Office, under the direction of Al Fernandez. 1bat 

assistance is gratefully acknowledged. The actuarial calculations were completed under the supervision of Joel R Leary, AS/\, FCA, MAAA, 

Enrolled Actuary. 

We look forward to reviewing this report with you at your next meeting and to answering any questions you may have. 

Sincerely, 

Senior Vice President a.nd Actuary 

cc: Fund Administrator 

Fund Counsel. 

Fund Auditor 

- --

... 

Benefits, Compensation and HR Consulting. Memb0r of The Sagal Group. Offices throughout the United States and Canada 

CK747 
CK748

Local 807 Labor-Management Pension Fund Actuarial Valuation aod Review as of September 1, 2017 

Section 1 · Actuarial Valuation Summary 

Summary of Key Valuation Results . ... ................. . .................. 7 

Comparison of Funded Percentages ............................... ................... 8 

A. Developments Since Last Valuation ............................................... 9 

B. Funded Percentage and Funding Standard Account. ........•........... 9 

C. Solvency Projections .................................................................... 10 

D. Funding Concerns and Risks ................. . ............................ 10 

E. Withdrawal Liability ........................................................................ 1 O 

$P.ct1on 2 Actuarial Valuation Results 

Participant Information .................... . . ......... ······· ................ 11 

Financial lnfomiation .. ....... ......... ....... .... .. . ................. 17 

Actuarial Experience .................... ....................................................... 20 

Actuarial Assumptions ........ . ....................................................... 24 

Plan Provisions . . . . .. . . ............................................................ 24 

Contribution Rate Changes .......................................................... ..... 24 

Pension Protection Act of 2006 ................................ ........................... 25 

Funding Standard Account (FSA)............ . ......................... 26 

Solvency Projection ............................ . ···················•········•··•····29 

Funding Concerns ................. ............... . ···········•··•····················30 

Risk .......... ................ . ........................ . . ............................. 30 

Withdrawal Liability .............................................. . . ····· .... 31 

Disclosure Requirements............. . ..................... . . ................. 33 

Section 3: Supplemeotary lnfonnahon 

Exhibit A - Table of Plan Coverage..... . .................................... ... 34 

Exhibit B - Participant Population ........................................................ 35 

Exhibit C - Employment History .......................................................... 36 

Exhibit D - Progress of Pension Rolls Over the Past ten Years ......... 37 

Exhibit E - Summary Statement of Income and Expenses on an 

Actuarial Basis................. ... ..... ..... .. . .............................. 38 

Exhibit F - Investment Return - Actuarial Value vs. Market Value ...... 39 

Exhibit G - Annual Funding Notice for Plan Year Beginning 

September 1. 2017 and Ending August 31. 2018...................... . .. .40 

Exhibit H - Funding Standard Account... ................... . ················ ..... 41 

Exhibit I - Maximum Deductible Contribution ............................ . 

Exhibit J - Pension Protection Act of 2006 ..................... . 

Section 4· Certificate of Actuarial Valuation 

..... 42 

. ... .43 

Certificate of Actuarial Valuation ........................................................ 4 5 

Exhibit 1 - Summary of Actuarial Valuation Results ........................... 46 

Exhibit 2 • Actuarial Present Value of Accumulated Plan Benefits ...... 47 

Exhibit 3 - Current liability ..... ........................................................... 48 

Exhibit 4 - Information on Plan Status as of September 1. 2017 ......... 49 

Exhibit 5 · Schedule of Projection of Expected Benefit Payments ...... 50 

Exhibit 6 - Schedule of Active Participant Data ...... . .................. 51 

Exhibit 7 - Funding Standard Account ... ............................................. 52 

Exhibit 8 - Statement of Actuarial Assumptions/Methods .................... 55 

Exhibit 9 - Summary of Plan Provisions .............................................. 62 

"i"~ Segal Consulting 3 
CK749

Introduction 

There are several ways of evaluating funding adequacy for a pension plan. In monitoring the Plan's financial position, the Trustees should 

keep in mind all of these concepts. 

[i 

I .., '} r 

., ""' r 

1 lgl 

...... i f' 

Funding 

Standard 

Account 

Zone 

Information 

Solvency 

Projections 

Withdrawal 

Liability 

The ERISA Funding Standard Account (FSA) measures the cumulative difference between actual contributions and the 

minimum required contributions If actual contributions exceed the minimum required contnbutions. the excess is called 

the credit balance. If actual contributions fall short of the minimum required contributions, a funding deficiency occurs. 

The Pension Protection Act of 2006 (PPA'06) called on plan sponsors to actively monitor the projected FSA credit 

balance, the funded percentage (the ratio of the actuarial value of assets to the present value of benefits earned to date) 

and cash flow sufficiency. Based on these measures, plans are then categorized as critical (Red Zone), endangered 

(Yellow Zone), or neither (Green Zone). The Multiemployer Pension Reform Act of 2014 (MPRA), among other things, 

made the zone provisions permanent. 

Pension plan funding anticipates that, over the long term, both contributions and investment earnings will be needed to 

cover benefit payments and expenses. To the extent that contributions are less than benefit payments, investment 

earnings and fund assets will be needed to cover the shortfall. In some situations, a plan may be faced with insufficient 

assets to cover its current obligations and may need assistance from the Pension Benefit Guaranty Corporation (PBGC). 

MPRA provides options for some plans facing insolvency . 

ERISA provides for assessment of withdrawal liability to employers who withdraw from a multiemployer plan based on 

unfunded vesled benefit liabilities. 

..,v,.. Segal Consulting 4 
CK750

Important Information about A ctuarial Valuations 

An actuarial valuation is a budgeting tuul with respect to the financing of future uncertain obl igations of a pension plan. As such, it will never 

forecast the precise future contribution requirements or tJ1e precise future sln:am nfbencfit payments. In any event, it is an estimated forecast 

- the actual cost of the plan will be determined by the benefits and expenses paid, not by the actuarial valuation. 

In order to prepare a valuation, Segal Consulting (" Segal'') rel ies on a number o f input items. T hese include: 

il 

Plan 

Provisions 

Participant 

Information 

Financial 

Information 

Actuarial 

Assumptions 

Plan provisions define the rules that will be used to determine benefit payments, and those rules, or the interpretation of them, 

may change over time. Even where they appear precise, outside factors may change how they operate. For example, a plan 

may require the award of a Social Security disability pension as a condition for receiving a disability pension from the plan. If so. 

changes in the Social Security law or administration may change the plan's costs without any change in the terms of the plan 

itself. It is important for the Trustees to keep Segal informed with respect to plan provisions and administrative procedures. and 

to review the plan summary included in our report to confirm that Segal has correctly interpreted the plan of benefits. 

An actuarial valuation for a plan is based on data provided to the actuary by the plan. Segal does not audit such data for 

completeness or accuracy, other than reviewing it for obvious inconsistencies compared to prior data and other information that 

appears unreasonable. For most plans. it is not possible nor desirable to take a snapshot of the actual workforce on the 

valuation date. It is not necessary to have perfect data for an actuarial valuation: the valuation is an estimated forecast, not a 

prediction. The uncertainties in other factors are such that even perfect data does not produce a "perfect" result. 

Notwithstanding the above, it is important for Segal to receive the best possible data and to be informed about any known 

incomplete or inaccurate data. 

Part of the cost of a plan will be paid from existing assets - the balance will need to come from future contributions and 

investment income. The valuation is based on the asset values as of the valuation date, typically reported by the auditor. Some 

plans include assets, such as private equity holdings, real estate, or hedge funds, that are not subject to valuation by reference 

to transactions in the marketplace. A snapshot as of a single date may not be an appropriate value for determining a single 

year's contribution requirement, especially in volatile markets. Plan sponsors often use an •actuarial value of assets" that differs 

from market value to gradually reflect year-to-year changes in the market value of assets in determining the contribution 

requirements. 

In preparing an actuarial valuation, Segal starts by developing a forecast of the benefits to be paid to existing plan participants 

for the rest of their lives and the lives of their beneficiaries. This requires actuarial assumptions as to the probability of death, 

disability, v,;thdrawal, and retirement of participants in each year, as well as forecasts of the plan's benefits for each of those 

events. The forecasted benefits are then discounted to a present value, typically based on an estimate of the rate of return that 

will be achieved on the plan's assets. All of these factors are uncertain and unknowable. Thus, there will be a range of 

reasonable assumptions, and the results may vary materially based on which assumptions the actuary selects within that range. 

That is, there is no right answer (except with hindsight). It is important for any user of an actuarial valuation to understand and 

accept this constraint. The actuarial model may use approximations and estimates that will have an immaterial impact on our 

results and will have no impact on the actual cost of the plan (the total of benefits and expenses paid out over time}. In addition, 

the actuarial assumptions may change over time, and while this can have a significant impact on the reported results, ii does 

not mean that the previous assumptions or results were unreasonable or wrong. 

1~ Segal Consulting s 
CK751

Given the above, the user nf Scgal's actuarial valuation (or other actuarial calculations) needs to keep the following in mind: 

The actuarial valuation is prepared for use by the Trustees. It includes information for compliance with federal (iling requirements and 

for the plan's auditor. Segal is not responsible for the use or misuse of it5 report, particularly by any other party. 

An actuarial valuation is a measurement at a specific date - it is not a prediction of a plan's future financial condition. /\ccordingly. 

Segal did not perform an analysis of the potential range of financial measurements, except where otherwise noted. 

Actuarial results in this report are not rounded, but that does not imply precision. 

Critical events for a plan include. but arc not limited to. decisions about changes in benefits and contributions. The basis for such 

decisions needs to conside r many factors such as the risk of changes in employment levels and investment losses, not just the current 

valuation results. 

ER[SA requires a plan's enrolled aciuary to provide a stat.ement for inclusion in the plan's annual report disclosing any event or trend 

that the actuary has not taken into account, if, to the best of the actuary's knowledge, such an event or trend may require a material 

increase in plan co~ts or required contribution rates. Ir the Trustees are currently aware or ,my event that was not considered in this 

valuation and that may materially increase the cost of the Plan, they must advise Segal, so that we can evaluate it and take it into 

account. 

A certification of ·•zone" status under PPA '06 is a separate document from the actuarial valuation. 

Segal does not provide investment, legal. accounting, or tax advice. This valuation is based on Scgal's understanding of applicable 

guidance in these areas and of the plan· s provisions. but they may be subject to alternative interpretations. The Trustees should look to 

the ir other advisors fur expertise in these areas. 

While Segal maintains extensive quality assurance procedures, ru1 actuarial valuation .involves complex computer models and numerous 

input~. In the event that a n inaccuracy is discovered after presentation of Segal 's valuation, Segal may revise that valuation or make an 

appropriate adjustment in the next valuation. 

Segal's report shall be deemed to be final and accepted by the Trustees upon delivery and review. Trustees should notify Segal 

immediately of any questions or concerns about the final content. 

/\s Segal Consulting has no discretionary authority with respect. to the management or assets of the Plan. it is not a fiduc iary in its capacity as 

actuaries and consultants with respec t to the Plan. 

'i'r Segal Consulting 6 
CK752

Summary of Key Valuation Results 

Certified Zone 

Status 

Demographic 

Data: 

Assets: 

Cash Flow: 

Statutory 

Funding 

Information: 

Cost Elements 

on an FSA 

Cost Basis : 

Withdrawal 

liability:' 

Number of active participants 

Number of inactive participants with vested rights 

Number of retired participants and beneficiaries 

Market value of assets (MVA) 

• Actuarial value of assets (AVA) 

AVA as a percent of MVA 

Projected employer contributions at the negotiated rates 

Actual contributions including withdrawal liability payments 

Projected benefit payments and expenses 

Insolvency projected in Plan Year ending August 31 , 

Minimum required contribution 

Maximum deductible conlribution 

Annual Funding Notice percentage 

FSA deficiency as of August 31, 

Normal cos~ including administrative expenses 

Actuanal accrued liability 

Unfunded actuarial accrued liability (based on AVA) 

Present value of vested benefits 

Unfunded pres_ent value of vested benefits (based on MVA) 

1 Using the assumptions described in Section 2: Withdrawal Liability Assumptions. 

Critical 

714 

954 

2.866 

$151 ,975,903 

154,640,867 

101.8% 

$8,879,222 

9,629,904 

30,215,241 

2028 

$55,589,8 t 5 

596,623,925 

46.7% 

$14,037,722 

$2,413,752 

338,327,966 

$183,687,099 

401,758,145 

249,782,242 

Section 1: Ac tt1arial Valuation Sumll'lary as of September 1, 201 7 for the L ocal 807 L abor-Management 

Pansion Fund 

Critical 

692 

935 

2,813 

$146,959,183 

147,543,512 

100.4% 

$8,883,692 

31 ,106,935 

2028 

$91 ,093,017 

613,199,660 

42.6% 

$45,628,883 

$2,879,618 

353,791 ,408 

$206,247,896 

410,057,215 

263,098,032 

-r",.. Segal Consulting 7 
CK753

Comparison of Funded Pe rcentages 

1. Present Value of Future Benefits 44.7% 40.7% $362,880,123 $147,543,512 

2. Actuarial Accrued liability 45.7% 41.7% 353,791 .408 147,543,512 

3. PPA'06 liability and Annual Funding Notice 46.7% 42.6% 346,728,132 147,543,512 

4. Accumulated Benefits Liability 45.9% 42.4% 346,728,132 146,959,183 

5. Withdrawal Liability 37.8% 35.8% 410,057,215 146,959,183 

6. Current Liability 30.9% 29.6% 536,604,543 158,835,925 

- - Notes: - - ---- --- - -----

1. The value of benefits earned through the valuation date (accrued benefits) plus the value of benefits projected to be earned in the future for current 1 

participants. Used to develop the actuarial accrued liability. based on the long-tern, funding investment return assumption of 7.00% for 2017 and 1 7.50% for 2016 and the actuarial value of assets. The funded percentage using market value of assets is 44.0% for 2016 and 40.5% for 2017. 

2. The portion of the present value of future benefits allocated by the acluarial cost method to years prior to the valuation date based on the longterm funding investment return assumption of 7.00% for 2017 and 7.50% for 2016 and the actuarial value of assets. The funded percentage using 

market value of assets is 44.9% for 2016 and 41 .5% for 201 7. 

3. The present value of benefits earned through the valuation date (accrued benefits) defined by PPA'06, based on the long-term funding investment 

return assumption of 7.00% for 2017 and 7.50% for 2016 and compared to the actuarial value of assets. 

4. The present value of a=ued benefits for disclosure in the audited financial statements, based on the long-term funding investment return 

assumption of 7.00% for 2017 and 7.50% for 2016 and compared to the market value of assets. 

5. The present value of vested benefits for withdrawal liability purposes, based on the blended interest rate and other assumptions described in 

Section 2: Withdrawal Uabili/y Assumptions, the present value of vested benefits, and compared to the market value of assets. lndudes the 

unamortized value of the Rehabilitation Plan reductions. 

6. The present value of accrued benefits based on a government-prescribed mortality table and investment return assumption of 3.11% for 2016 and 

3.03% for 2017, and compared to the market value of assets, induding withdrawal liability payments receivable. Used to develop the maximum 

tax-deductible contribution and shown on the Schedule MB if less than 70%. "-- --- -

Disdosure· These measurements are not necessanly appropriate for assessing the sufficiency of Plan assets to cover the estimated cost or settling the Plan·s benefit obligations or the need ·1o, or the amount of future contribut1ons. 

Section 1: Actuarial Valu~tion Summary as of Septem ber 1, 2017 for the Local 807 Labor-Management 

Pension Fund 71" Segal Consulting 8 
CK754

This September 1, 2017 actuarial valuation report Is based on financial and demographic information as of that date. Changes subsequent to 

that date are not reflected unless specifically identified, and will affect future results. Segal is prepared to work with the Trustees to analyze 

the effects of any subsequent developments. The current year's actuarial valuation results follow . .._____ - - ·- --- ----- - A. Developments Since Last Valuation 

I . The rate of return on the market value of plan assets was 10.21 % for the plan year ended 

August 31. 2017. The ra te of return on the actuarial value of a~sets was 8.57%. Given the low fixed 

income interest rate environment, target asset allocation and expectations of future investment 

returns for various asset classes, we will continue to monitor the Pl an's actual and anticipated 

investment returns relative to the assumed long-term rate of return on investments. The assumption for net investment return was revised 

\.\>ith this valuation from 7.50% lo 7.00%. 

2. Additionally, the assumptions for mortality rates, retirement rates, benefit election and annual administrative expenses have been revised. 

Sec Section 4, /::xhib/t 8 for more information. 

3. The 2017 certification, issued on November 29, 2017, based on the liabilities calculated in the 2016 actuarial valuation, projected to 

August 31 , 20 17, and estimated asset information as of August 3 I, 201 7, classified the Plan as critical and is also critica l and declining (in 

the Red Zone) because there is a deficiency in the FSA and the Plan was projected to be insolvent within 15 years. This projection was 

based on the Trustees' industry activity assumption that the active population will decline by 2% annually and, on average, contributions 

will be made for 1,850 hours per year for t::ach acti ve participant. 

B. Funded Percentage and Funding Standard Account 

I. Based on this September I , 2017 actuarial valuation, the funded percentage that will be reported 

on the 201 7 Annual Funding Notice is 42.6%. 

I~ I 

2. The funding de fic iency in the FSA as of August 3 1, 201 7 was $45,628,883 , an increase of 

$3 1,591. 161 from the p rior year. 

Section 1: Ac tu 1 iai \ialuauon Summary as of September 1, 2017 for the Local 807 Labor-Management 

Pension Fund 'T~ Segal Consulting 9 
CK755

C. Solvency Projections 

The Plan is projected to be unable to pay benefits within l l years (i.e., the year ending August 31, 

2028), a~suming experience is consistent with the September I, 2017 assumptions. This is the 

same as projected in the September 1, 2016 valuation. This projection docs not take into account 

future contribution rnlt! increases required under the Rehabilitation Plan. We are working with the 

Trustees to evaluate a possible benefit suspension under MPRA to address this this cash-flow 

crisis. Reflecting future rate increases required under the Rehabilitation Plan, the Plan is projecled 

to be insolvent in the year ending August 31 , 2029. 

D. Funding Concerns and Risks 

I:" • 

I. The imbalance between the benefit leve ls in the Plan and the resources available to pay for them is 

being monitored. 

2. The growing funding deficiency and the projected inability to pay benefits need prompt attention. 

3. We arc working with the Trnstccs to develop alternatives to address this sit11ation including updating the 

Rehabilitation Plan iJ needed and exploring a possible bene fit suspension under MPRA. 

4. The actions already taken tn address this iss11c include plan changes and scheduled contribution rate 

incre.ases per the Rehabilitation Plan. 

Z0,4 21115 291li 2111 HU ffit 

5. S ince the actuarial va.lualion results are dependent on a given set of assumptions, there is a risk Lhat emerging results may differ 

significantly as acn1aJ experience proves to be different from the assumptions. We have included a list of various risks that may affect the 

Plan in Section 2. 

E. Withdrawal Liability 

I . The unfunded present value of vested benefits for withdrawal liability purposes (UVB) is $263,098,032 

(using the assumptions outlined in Section 2: Withdrawal Liability Assumptions). Compared to 

$249,782,242 as of th e prior year, the increase of $13,3 15,790 is primarily due to changes in assumptions, 

and partially offset by Lhe investment gain on a market value basis. 

2. The Trustees have adopted the method outlined in PBCiC Technical Update I 0-3 to aecow1t for bene fit 

reductions implemented by the Rehabilitation Plan. The unamortized value of those benefit reductions is 

inc luded in the unfunded vested benefit amount shown above. 

Sec tion 1: Ac tuarial Valuation Summary as c f ~eptember 1, 2017 for the Local 807 Lahor-Management 

Pension Fund -fT Segal Consulting 10 
CK756

------- ---- -------- - ----------------------- - ---

Participant Information 

The Actuarial Valuation is ha~ed on demographic data as of August 3 1, 2017. 

There are 4,440 total participants in the current valuation, compared to 4,534 in the prior valuation. 

The ratio of non-actives to actives has increased tu 5.42 from 5.40 in the prior year. 

More details on the historical infom1atio11 are included in Section 3, Exhibils A and B. 

POPULATION AS OF 

AUGUST 31 

RATIO OF NON-ACTIVES TO ACTIVES 

AS OF AUGUST 31 

4,000 6.00 

3,500 

5.00 

3,000 

2,500 

4.00 

2,000 3.00 

1,500 

2.00 

1,000 • 

500 ' .. :- : 1.00 

0 ~ 00 

2008 2009 2010 20 11 20 12 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 

-+- Active -e-1nactive Vested ...,_ In Pay Status 

Sectio,1 2: Actuarial Vaiu,'llion Results as of September 1, 2017 for the Local 807 Labor-Management 

Pension Fune.: .,--;. Segal Consulting 11 
CK757

Active Participants 

160 

140 

120 

100 

80 

60 

40 

20 

0 

There were 692 active participants this year, a decrease of3. I% compared to 714 in the prior year. 

The age and service distribution is included in Section 4, Exhibit 6. 

BY AGE BY PENSION CREDITS 

180 

160 

140 

120 

100 

80 

60 

I I I • -

40 I 20 

0 I 

.7 ,,,°' ~ ~ i ,e, ~ ~ :::, ~ ,t,' ~ 

~ 

~' 

Average age 50.3 Average pension credits 13.9 

Prior year average age 

Difference 

50.9 

-0.6 

Prior year average pension credits 

Difference 

14.4 

-0.5 

"'~ 0 

'b-

$' 

Sec tion 2: Ac tuarial Valu.1tion RP.su its as of September 1, 2017 for the Local 807 Labor-Management 

P<"n sio11 hmd .;,;. Segal Consulting 12 
CK758

Historical Employment 

1 

:E 

The charts below show a history of hours worked over the last ten years. Additional detail is in Section 3, Exhibit C. 

The 20 I 7 zone certification wa~ based on an industry activity assumption of a reduction in active participant levels of 2% annually 

and, on the average, contributions will be made for each active for 1,850 hours each year. 

The valuation is based on 692 actives and a long-tenn employment projection of 1,850 hours. 

TOTAL HOURS 

2.50 2,500 

2.00 2,000 

1.50 1,500 

1.00 1,000 

0.50 500 

0.00 0 

2008 2009 2010 2011 2012 2013 2014 20 15 2016 2017 

M:ij@aitG lr:•t,iSttl:'.-l11s 

Last year 1,328.491 

Last five years 1,435,646 

Last 10 years 1,539,183 

Long-term assumption 1,280,200 

AVERAGE HOURS 

- - ..., 

~; - If 

lit 

r 

rl 

• ': 

2008 2009 2010 20 11 2012 2013 20 14 2015 2016 2017 

Historical Avera a Hour& • 

Last year 

Last five years 

Last 10 years 

Long-term assumption 

1,920 

1,961 

1.874 

1,850 

Note: The total hours of contributions are based on total contributions divided by the average contribution rate for the year. which may differ from the hours reported to the 

Fund Office. 

Section 2: Act1ldriai V.i lu?.tion Res ults as of September 1, 2017 for the L ocal 807 Labor-Managem ent 

Pens io n Ft ,d -t~ Segal Consulting 13 
CK759

Inactive Vested Participants 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

t\ participant who is not currently active and has satisfied the requirements for, but has not yet commenced, a pension is considered an 

" inactive vested" participant. 

There were 9 I 9 inactive vested participants this year, a decrease of2.0% compared to 938 last year. 

This excludes 16 beneficiaries entitled to future benefits this year, the same as in the prior year. 

BY AGE BY MONTHLY AMOUNT 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

- • I I I I 0 I I I I • B I ~ ,go 

~· ,,,"> 

- ~ ~ '!I' ~ 

$' .;' ~ ,,,">' 

Prior year average age 

Difference 

~ 

~ 

cg, 

~; 

58.6 

3.6 

.,_q; $ 0 0 

'b- ;f "c ,::; 

~ * & & * & ~ & & ~ ,;; ., 'b .... .. "' ~ C "> "' Q) .. ..... ..... ..... 0 'V 'V :v· 'V ,;; ~ ,§ 'It 

}' # ~ i i ,§>' f .. .. ,§> # " " .. ..... .... .... 'V ~ '\,· ,,,. .. .. .. .. .. .. Average amount C. ' $989 

Prior year average amount 

Difference 

$951 

$38 

Section 2: Actuarial Valuation Results as o f September 1, 2017 for the Local 807 l abor-Management 

Pension Fund .,~ Segal Consulting 14 
CK760

New Pensions Awarded 

2008 85 $1 ,260 20 $1 ,258 19 $1 ,296 5 $773 5 $2,646 

2009 70 1,206 11 1,073 14 948 5 1,552 5 1,557 

2010 89 1,441 10 1,393 20 1,766 9 1,418 

2011 107 1,796 16 2,135 22 925 2 1,798 7 2,053 

2012 82 1,215 20 1,289 25 1,041 4 1,368 

2013 51 749 12 1,060 13 782 

2014 44 754 9 1,262 9 747 

2015 60 1,093 16 1.788 19 1,014 

2016 54 1,075 13 1,500 20 1,191 

2017 53 1,171 17 1,994 11 1,144 

Section 2: Actuarial Valuation Results as of September 1, 2017 for the Loc.;il 807 Labor-Management 

Pension Fund 

16 $1,635 20 $703 

15 1,954 20 723 

18 2,495 32 667 

35 3,082 25 471 

6 3,297 27 834 

26 589 

26 580 

25 710 

21 700 

25 624 

..,-;.. Segal Consulting 15 
CK761

Pay Status Information 

600 

500 

400 

300 

200 

100 

0 

The re were 2,166 pensioners and 639 beneficiaries this year, compared to 2,2 14 and 646, respectively, in the prior year. 

Monthly benefits for the Plan Year ending August 3I,2017 total $2,280,000, as compared to $2,269,436 in lhe prior year. 

~ ~ -

~ 

;:,' o§' ~-

BY TYPE 

AND AGE 

I 

I I ~ ~ ,._,,. 

~- rt?' ,._,;, 

I • 

I I I I 

"°" ~ ~ t 

""' ~- rt? es ~ 

~ 

Regular • Early • Disability • 25 Year 30 Year • Deferred 

f,( . . Average age. 76.9 · 

Prior year average age 

Difference 

77.0 

-0.1 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

BY TYPE AND 

MONTHLY AMOUNT 

I 

Ii -

I -- - -

Regular • Early • Disability • 25 Year 30 Year • Deferred 

Prior year average amount 

Difference 

$936 

$27 

Sec tion 2: Actuarial Valuation Results as o f September 1, 2017 for the L ocal 807 Labo r-Managem enl 

Pension Fund ..,\ Segal Consulting 16 
CK762

Financial Information 

(/) 

35 

30 

25 

~ 20 

~ 

w 15 

10 

5 

0 

Benefits and expenses are funded solely from contributions and investment earnings. 

/\ddilional detail is in Section 3, Exhibit£. 

For the most recent year. hcnelit paymenL~ und expenses were 3.0 times contributions. 

COMPARISON OF EMPLOYER CONTRIBUTIONS 

WITH BENEFITS AND EXPENSES PAID 

- - - - - - -

I I I 

2008 2009 2010 2011 2012 2013 2014 2015 

• Contributions Benefits Paid • Expenses 

Sec tion 2: Actuarial Valui:ltion Results as of September 1, 2017 for the Local 807 Labor-Managem ent 

Pens ion Fund 

- - -

I I 

2016 2017 

-{'" Segal Consulting 17 
CK763

Dete rmination of A ctuarial Value of Assets 

The asset valuation method gradually recognizes annual market value fluctuations to help mitigate volatility in the actuarial cost 

calculations. 

Less volatility in die actuarial cost bener aligns with negotiated contri bution rates. 

1 

2 

3 

4 

5 

6 

7 

Market value of assets, August 31 , 2017 

Calculation of unrecognized return 

(a) Year ended August 31, 2017 

(b) Year ended August 31, 2016 

(c) Year ended August 31, 2015 

(d) Year ended August 31, 2014 

(e) Year ended August 31 , 20 13 

(f) Total unrecognized return 

Preliminary actuarial value: ( 1 ) - ( 2 fl 

Adjustment to be within 20% corridor 

Final actuarial value of assets as of August 31, 2017: 

Actuarial value as a percentage of market value: (5) + (1) 

Amount deferred for future recognition: (1) - { 5) 

Total return minus expected return on a market value basis 

.. Recognition ill 20% per year over 5 years 

(3) + (4) 

$3,818,336 

-329.297 

-16 493756 

15,780,415 

5,912,804 

Section 2: Ac t udrial Valuation Results as of September 1, 2017 for the Loc al 807 Labor-Management 

Pen sion Fund 

$3,054,669 

-197.578 

-6 597 502 

3,156,083 

Q 

$1 46,g59,183 

-$584 329 

147,543,512 

0 

147,543,512 

100.4% 

-$584 329 

.,.",,_ Segal Consulting 18 
CK764

0 

~ 00 

"' 

Asset History for Years Ended August 31 

ACTUARIAL VALUE OF ASSETS VS. MARKET VALUE OF ASSETS 

300 

250 

</) 200 C 

~ 

~ 150 <Ft 

100 

50 

0 

2008 2009 2010 2011 2012 2013 2014 2015 

Actuarial Value ..._ Market Value 

Section 2: Actuarial Valuation Results as of September 1, 201 7 for the Local 807 Labor-Managernent 

Pension Fund 

2016 2017 

,.\ Segal Consulting 19 
CK765

Actuarial Experience 

Assumptions should reflect experience and should be based on reasonable expectations for the future. 

Each year actual experience is compared to that projected by the assumptions. Differences are reflected in the contribution 

requirement as an experience gain or loss. 

Assumptions are not changed if experience is believed to be a short-tenn development and that, over the long run, experience "viii 

return Lo assumed levels. 

The net experience variation for the year was not significant when compared to that liability. 

1 

2 

3 

4 

EXPERIENCE FOR THE YEAR ENDED AUGUST 31 , 2017 

Gain from investments 

Loss from administrative expenses 

Net loss from other experience 

Net experience loss: 1 + 2 + 3 

Sec tion 2: Ac tuarial Valuation Results as of Septembe r 1, 2017 for the Local 807 Labor-Management 

Pens ion Fu 'ld 

$1,537,828 

40 757 

-3 051 61 1 

-$1 554 540 

-,"';- Segal Consulting 20 
CK766

Actuarial Value Investment Experience 

Net investment income consists of expected investment income at the actuarially assumed rate of return, and an adjustment for market 

value changes. Investment expenses are subtracted. 

The actuarial value of assel~ does not yet fully recognize past investment gains and losses, which will a!Tect future actuarial 

investment returns. 

INVESTMENT EXPERIENCE FOR THE YEAR ENDED AUGUST 31 , 201 7 

1 Net investment income $12,296,064 

2 Average actuarial value of assets 143,443, 141 

3 Rate of return: 1 2 8.57% 

4 Assumed rate of return 7.50% 

5 Expected net investment income: 2x 4 $10,758,236 

6 Actuarial gain from investments: 1 • 5 $1537828 

Sec tion 2: A ctuarial Valu.:ition Results as of September 1, 2017 for the Local 807 Labor-Management 

P--·nsion J:und TT Segal Consulting 21 
CK767

Historical Investment Re turns 

Actuarial planning is long term. The oh ligations of a pe::nsion plan are expected to continue for the lifetime of all its participants. 

The assumed long-term rate of return o f 7 .00% considers past experience, the Trustees' asset allocation policy and future expectations. 

20% 

15% 

10% 

5% 

0% 

-5% 

-10% 

-15% 

-20% 

-25% 

2008 2009 

MARKET VALUE ANO ACTUARIAL RATES OF RETURN 

FOR YEARS ENDED AUGUST 31 

'---___ .. 

2010 2011 2012 2013 

Actuara l Value _._Market Value 

Most recent year return: 

Most recent five-year average return: 

Ten-year average return: 

.r 

8.57% 

8.48% 

3.17% 

2014 2015 

10.2 1% 

8.62% 

3.15% 

Section 2: Actuarial Valuation Results as of September 1, 2017 for the Local 807 Labor-Management 

Pension Funu 

2016 2017 

-,"t· Segal Consulting 22 
CK768

Non-Investment Experience 

Adrnmistrat ve Expenses 

Administrative expenses for the year ended August 3 1, 2017 totaled $1 ,3 14,420, as compared to the assumption of $ 1,275,000. 

Mortality Experience 

Mortality experience (more or fewer than expected deaths) yie lds actuarial gains or losses. 

The average number of deaths for oondisabled pensioners over the pa~t year was I 15 compared to 120 projected deaths. The number 

of deaths for disabled pensioners over the past year was 8 compared to 5.4 projected deaths. However, the number of deaths for 

pensioners is too small to be statistically credible. The mortality table used was published by the Socidy of Actuaries and is 

appropriate for the valuation of this plan. 

Other Experie nce 

OLher differences between projected and actual experience include the extent of turnover among the partic ipants and retirement 

experience (earl ier or later than projected). 

Section 2: Ac tuarial Valuation Results as of September 1, 2017 for the Loca l 807 Labor-Management 

Pe nsion Fund -f.,.. Segal Consulting 23 
CK769

Actuarial Assumptions 

The following assumptions were changed with this valuation: 

Annual admin.istrative expenses were increased to $1,500,000 for the year beginning September I, 2017. 

Effective September I.20 17, the mortality assumption was updated to use generational Scale MP-2017 for antic ipation of future 

longevity improvement. 

The assumption for bene lit election was modified to renect 20% of participants retiring would elect the 75% Joint and Survivor 

option. 

The retirement rnles for active and inactive vested participants were revised based on past experience and ruture expectations. 

The net investment return assumption wa.~ revised from 7.5% to 7.0%. 

These changes increased the actuarial accrued liability by 4.3% and increased the normal cost by 13.7% . 

Details on actuarial assumptions and methods are in Section 4, Exhibit 8 

Plan Provisions 

The re were no changes in plan provisions for FSA purposes since the prior valuation. 

A summary o f plan provisions is in Section 4, Exhibit 9. 

Contribution Rate Changes 

The average contribution rate is $6.94 per hour as of this valuation. 

Sec rion 2: 11. ctuarial Valuation Results as of September 1, 2017 tor the Local 807 Labor-Management 

Pension Fune! -iT Segal Consulting 24 
CK770

Pension Protection Act of 2006 

2017 Actuarial Status Cert1f1cation 

PPA'06 requires trustees to actively monitor their plans' financial prospects to identify 

emerging funding challenges so lhey can be addressed effectively. Details are shown in 

Section 3, Exhibit J. 

The 20 17 certification, complekd on Novt:mber 29, 2017, was based on the liabilities 

calculated in lhc September I, 2016 actuarial valuation, adjusted for subsequent events 

and projected to August 3 1, 2017, and estimated asset information as of August 3 1, 2017. 

The Trustees provided an industry activity assumption ofan active population declining 

2% annually with contributions made for 1.850 hours per year for each active participant. 

This Plan was classified as critical and is also criti cal and declining (in the Red Zone) 

because there is deficiency in the FSA and the Plan was projected to be insolvent within 

15 yea.rs. 

In addition, the Plan is making the scheduled progress in meeting the requin:menl~ of its 

rehabilitation plan. 

Rchab11itat1on Pl.1n Update 

The Plan's Rehabilitation Period began September 1, 2013 and ends August 31 , 2048. 

Section 432(c)(3)(R) requires that the Trustees annually update the Rehabilitation Plan and Schedules. 

2008 GREEN 

2009 GRE!:'t-. 

2010 RED 

2011 RED 

2012 RED 

2013 RED 

2014 RED 

2015 RED 

2016 RED (C&D) 

2017 RED (C&O) 

Based on this valuation, projections show the Plan is not expected to emerge from critical status within the Rehabilitation Period. 

The annual standard detailed in the Rehabilitation Plan of avoiding insolvency before 2024 is projected to be met. 

Segal will continue to assist the Trustees to evaluate and update t11e Rehabilitation Plan and to prepare the required assessment of 

Scheduled Progress. We arc working with the Trustees to update the Rehabilitation Plan including exp loring a potential benefit 

suspension under MPRA. 

Sec tio n 2: Ac .u,ui.:il Valo,,tion Result,; a s of Septem her 1, 2017 fo r the Local 807 Labor-Managem ent 

P>"nsion Fw 1d .,.;- Segal Consulting 25 
CK771

Funding Standard Account (FSA) 

On August 31, 2017, the FSA had a funding deficiency of $45,628,883, as shown on the 2016 Schedule MB. Contributions meet the 

legal requirement on a cumulative basis if that account shows no deficiency. 

Employers contri buting to plans in critical status will generally not be penalized if a funding deficiency develops, provided the parties 

fulfill their obligations under the Rehabilitation Plan, including negotiation of bargaining agreements consistent with Schedules 

provided by the Trustees. 

The minimum funding requirement for the year beginning September 1, 2017 is $91,093,018. 

Based on the asswnption that 692 participams will work an average of 1,850 hours at a $6.9393 average contribution rate, the 

contributions projected for the year beginning September I. 2017 are $8,883,692. ln addition, withdrawal liability payments are 

projected Lo be $] ,360,77 I. The funding deficiency is projected to increase by approximately $34,890,995 to $80,519,878 as of 

August 31, 20 18. 

A summary of the ERJSA minimum funding requirements and the FSA for the year ended August 31, 201 7 is included in 

Section 3, Exhibit H. 

Sectio n 2: Actuarial Valuation Results as of September 1, 2017 for the Local 807 Labor-Ma nagement 

Pension Fund /,- Segal Consulting 26 
CK772

Funding Standard Account Projec tion 

A 15-yea.r projection indicates the funding deficiency will continue to grow assuming that: 

The Plan will cam a market rate of return equal to 7.00% eacb year. 

All other experience emerges as assumed, no assumption changes are made, 

There are no plan amendments or changes in law regulation, and 

Administrative expenses are projected to increase 1.0% per year. 

The projection is ba~ed on a declining number of active employees (2% annually) and 1,850 hours per capita with future normal cost 

increasing by 0.2% per year. 

CREDIT BALANCE AS OF AUGUST 31 

100 

0 ~i ~, 

w I I I I I I I I -100 

1/) 

C -200 ~ 

~ .,. --300 

-400 

-500 

2013 2016 2019 2022 2025 

Section 2: Actuarial Valuation Results as of September 1, 2017 for the Local 807 Labor-Management 

Pe n si o n Fu nd 

I 

2028 2031 

..,.v,.. Segal Consulting 27 
CK773

PPA'06 Funded Percentage Historical Information 

400 

350 

300 

"' C: 250 

~ 200 i 

... 150 

100 

50 

0 

2008 2009 

100% 

90% 

60% 

70

80% 

% ~ 

50% 

40% 

30% 

20% 

10% 

0% 

2008 2009 

PRESENT VALUE OF ACCRUED BENEFITS (PVAB) VS. 

ACTUARIAL VALUE OF ASSETS AS OF SEPTEMBER 1 

2010 2011 2012 2013 2014 2015 

• PVAB • Actuarial Value of Assets 

PPA '06 FUNDED PERCENTAGE AS OF SEPTEMBER 1 

• ·-----.... • • • 

2010 2011 2012 20 13 2014 2015 

Section 2: A ctuarial Valuatiou Results as of September 1, 2017 for the Local 807 Labor-Management 

Pension Fund 

2016 2017 

• ... 

2016 2017 

~ Segal Consulting 28 
CK774

Solvency Projection 

160 

140 

120 

u, 100 C 

~ ::'!, 

80 

... 60 

40 

20 

0 

PPA'06 requires Trustees to monitor plan solvency - the abil ity ln pay benefits and expenses when due. MPRA classifies red zone 

plans that are projected to become insolvent within 15 or 20 years as "critical and declining." See Section 3, Exhibit .J for more 

information. 

This Plan was certified as critical and declining based on a proj ected insolvency in 13 years. 

Based on this valuation, assets are projected to be exhausted in 2028, as shown below. This is the same year projected in the prior 

year. 

Tbis projecLion is based on the negotiated contribution rates, the current valuation assumptions and the Trustees' industry activity 

assumptions. This projection does not reflect the contribution rate increases under the Rehabilitation Plan. Re flecting futu re rate 

increases required under the Rehabilitation Plan, the Plan is projected to be insolvent in the year ending August 31, 2029. 

The Plan is operating under a Rehabilitation Plan that is intended to foresrall insolvency. 

PROJECTED ASSETS AS OF AUGUST 31 

I I I I 

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 

Section 2: Actuarial Vafuntion Results as o f September 1, 2017 for the Local 807 Labor-Management 

Pensio1: Fund T~ Segal Consulting 29 
CK775

Funding Concerns 

Risk 

The imbalance between the benefit levels in the Plan and the resources available to pay for them must be monitored. 

The growing funding deficiency and the projected inability to pay benefits need prompt allention. 

We are working with the Trustees to develop alternatives to address this situation including updating the Rehabilitation Plan if needed 

and exploring a possible bene 11t suspension under MPRA. 

The actions already taken to address this issue include plan changes and scheduled contribution ra te increases per the Rehabili1at.i.on 

Plan. 

Since the actuarial valuation results a re dependent on a given set of assumptions, there is a risk that emcrgi.ng results may differ 

signi 11cantly as actual experience proves to be different from the assumptions. We have included a list or various risks that may affect 

lhe Plan. 

We have not been engaged to perform a detailed analysis of the potential range ofthc impact of risk relative to t11e Plan's future 

financial condition. but we have included a brief list of some risks that may affect the Plan: 

• Investment Risk (the risk that returns will be different than expected) 

• Contribution Risk (the risk that actual contributions will be different from projected contributions) 

Longevity Risk (the risk t11at mortality experience will be different than expected) 

• Demographic Risk (the risk that participant experience will be di ffercnl than assumed) 

Section~: Actuariai V.iluation Results as of September 1, 2017 for the Local 807 Labor-Management 

Pension Fund ..,~ Segal Consulting 30 
CK776

Withdrawal Liability 

As of August 31, 2017, the preliminary actuarial present value of vested plan benefits for withdrawal liability purposes is 

$403,410,828. 

Reductions in accrued benefits or contribution surcharges for a plan in critical status (Red Zone) arc disregarded in determining an 

employer's allocation of the t/VB. The Trustees have adopted a method for calculating the UVB effective for withdrawals that occur 

on and after September I , 201 1. The method is based on the PBGC-s Technical Update I 0-3, which describes how to account for the 

effect of benefit reductions that are implemented as pan of a Rehabilitation Plan ("Affected Benefits") when a pension plan is in 

critical status. 

The unamortized value of all Affected Benefits pools (as shown in the chart below) is also included in the total present value of vested 

benefits of$410,057,215 asof August 31 , 2017. · 

The $13,3 I 5.790 increase in the unfunded present value of vested benefits from the prior year is primarily due to changes in 

assumptions. 

1 Present value of vested benefits (PWB) measured as of valuation date 

2 Unamortized value of Affected Benefits pools 

3 Total present value of vested benefits 1 + 2 

4 Market value of assets 

5 Unfunded present value of vested benefits (UVB). 3 - 4, not less than SO 

$394,606,217 

7,151928 

$401,758,145 

151,975,903 

$249,782,242 

Sec tion 2: Ac tuarial Valuation Results as of S eptember 1, 2017 for the Local 807 Labor-Management 

Pe nsion Fu 1c! 

$403,410,828 

6,646,387 

$410,057,215 

146,959,183 

$263,098.032 

-,V.- Segal Consulting 31 
CK777

Withdrawal Liability Assumptions 

The actuarial assumptions and methods arc reasonable (taking into account the experience of the Plan and reasonable expectations) 

and, in combination, represent the actuary's best estimate of anticipated experience under lhe Plan to dderminc the unfunded vested 

hencfits for withdrawal liability purposes. 

The interest rate is based on a blend, which includes rates selected based on estimated annuity purchase rates for benefits being settled, 

hccause withdrawal liability is a final settlement of an employer's obligations to the Plan. For benefits that could be settled 

immediately, because assets on hand arc sufficient, the annuity purchase rates are those promulgated by PRGC under 

ERISA Sec. 4044 for multiemployer plans tenninating by mass withdrawal on the measurement date. For benefits that cannot be 

settled immediately hccausc they arc not currently funded, the calculation uses rates equal to the interest rate used for plan funding 

cakulations. 

Interest 

Administrative 

Expenses 

Mortality 

Retirement Rates 

For liabilities up to market value of assets, 2.44% for 20 years and 2.74% beyond (2.50% for 20 years and 2.85% beyond. in 

the prior year valuation). For liabilities in excess of market value of assets, same as used for plan funding as of 

September 1, 2017 (the corresponding funding rate as of a year earlier was used for the prior year's value). 

Calculated as prescribed by PBGC formula (29 CFR Part 4044, Appendix C); not applicable to those hab1lities determined 

using funding interest rates. 

Same as used for plan funding as of September 1, 2017 (the corresponding mortality rates as of a year earlier were used for 

the prior year's value) 

Same as used for plan funding as of September 1, 2017 (the corresponding retirement rates as of a year earlier were used 

for the prior year's value) 

Sec tion 2: Acl!1arial Valu;ition Results dS of September 1, 2017 for the L ocal 807 Labor-Management 

P .n:;.ion Fune! ~ Segal Consulting 32 
CK778

Disclosure Requirements 

Annual Funding Notice 

The actuaria l information to be provided in the annual funding notice is shown in Section 3, Exhibit G. 

The value of plan benefits earned to date as of September I, 2017 is $346,728,132 using the long-tem1 funding interest rate of 7.00%. 

As the actuarial value of assets is$ I 47,543,S I 2, the Plan ·s f uncled percentage is 42.6%, cumpam..l to 46.7% in the prior year. 

Current I .ability 

The Plan's current liability as of September I, 2017 is $536,604,543 using an interest rate of 3.03%. As the ma rket value or assets, 

including withdrawal liability payments receivable, is $158.835,925, the funded cuTTent liability percentage is 29.6%. This is required 

to be disclosed on the 20 17 Schedule MB of IRS Form 5500 since it is less than 70%. Details are shown in Section 4, Exhibit 3. 

Accounting 1nfonm1tm11 

Tht: Financ ial Accounting Standards Board (FASB) requires determination or the present value o r accumulated plan bene fi ts - the 

single-stun va lue or the benefits, vested or not, earned by participants as of the valuation date. Additional details on the present value 

of the accumulated plan benefits can be found in Section 4, Exhibit 2. 

Section 2: Actuarial Valuation Results as of September 1, 201 7 for the Local 807 Labor-Managem ent 

Pension Fund ~,,.T Segal Consulting 33 
CK779

EXHIBIT A - TABLE OF PLAN COVERAGE 

Participants in Fund Office tabulation 791 

Less: Participants with less than one pension credit 77 

Active participants in valuation: 

• Number 71 4 

• Average age 50.9 

• Average pension credits 14.4 

Average contribution rate for upcoming year 6.3560 

Number with unknown age and/or service information 68 

Total active vested participants 566 

Inactive participants with rights to a pension: 

• Number 938 

• Average age 58.6 

• Average estimated monthly benefit $951 

• Beneficiaries with rights to deferred payments 16 

Pensioners: 

. Number in pay status 2,214 

Average age 76.6 

• Average monthly benefit $936 

• Number of alternate payees in pay status 23 

• Number in suspended status 6 

Beneficiaries: 

. Number in pay status 646 . • Average age 78.0 

• Average monthly benefit $306 

Total Participants 4,534 

Sect ion 3: Suμpkmentary l11form atio11 as of September 1, 2017 for t he Local B07 Labor-Managemen t 

Pension Fund 

758 -4 2% 

66 NIA 

692 31% 

50.3 -0 6 

13.9 -0 5 

6.9393 9.2% 

73 7.4% 

524 -7 4% 

919 -20% 

62.2 3.7 

$989 4.0% 

16 0.0% 

2,166 -2 2:4 

76.9 0.3 

$963 2.9% 

24 4.3% 

8 33.3% 

639 1 1 '1/o 

78.6 0.6 

$303 -0 7% 

4,440 -2.1% 

....... r Segal Consulting 34 
CK780

EXHIBIT B - PARTICIPANT POPULATION 

2008 1,049 1,077 3,477 

2009 1,014 1,055 3,387 

2010 900 1,026 3,337 

201 1 823 977 3,284 

2012 799 936 3,228 

2013 745 928 3,147 

2014 762 892 3,047 

2015 746 866 2,950 

2016 714 954 2,866 

2017 692 935 2,813 

Section 3: Supplem entary lnform:ition as of September 1, 2017 for the Local 807 Labor-Ma nagement 

Pension i=und 

4.34 

4.38 

4.85 

5.18 

5.21 

5.47 

5.17 

5.12 

5.35 

5.42 

..,v,. Segal Consulting 35 
CK781

EXHIBIT C - EMPLOYMENT HISTORY 

2008 2,067,352 2.3% 1,049 -53% 1,971 8.1% 

2009 1,720,548 -168% 1,014 .3 3"/4. 1,697 -13 9% 

2010 1,546,363 -10 1% 900 11 2% 1,718 1.2% 

2011 1,373,063 -11 2% 823 -86'!', 1,668 -2 9% 

2012 1,506,274 9.7% 799 -2 go;., 1,885 13.0% 

2013 1,446,566 -4 0% 745 -6 8% 1,942 3.0% 

2014 1,410,162 -2 5% 762 2.3% 1,851 .4 7% 

2015 1,438,233 2.0% 746 -2 1% 1,928 4.2% 

2016 1,554,780 8.1% 714 -4.3% 2,178 13.0% 

2017 1,328,491 14 6% 692 .3 1% 1,920 11 83⁄4, 

Five-year average hours: 1,964 

Ten-year average hours: 1,876 

The total hours of contributions are based on total contributions divided by the average contribution rate for the year, which may differ from the hours 

reported to the Fund Office. 

Section 3: Supplementary lnfonnation as of September 1, 2017 for the l ocal 807 Labor-Management 

Pension Fund 

.t,. Segal Consulting 36 
CK782

EXHIBIT D - PROGRESS OF PENSION ROLLS OVER THE PAST TEN YEARS 

IN PAY STATUS AT YEAR END 

2008 

2009 " .J • -, .,, 

2010 I ~ ' -~~ 1.-1· 

2011 a,, BJ,. 

2012 •~d 

2013 :. ,1 ,.1 !·. !lj 

2014 

2015 '•1A 

2016 1 1;•,t 4 

2017 f) 

' Terminations indude pensioners who died or were suspended dunng the prior plan year. 2 Additions to the pension rolls include new pensions awarded and suspended pensioners who hase been reinstated. 

Sec tion 3: Supplementary Information as of September 1, 2017 for the Local 807 Labor-Management 

Pens·on Fund ;--,. Segal Consulting 37 
CK783

EXHIBIT E - SUMMARY STATEMENT OF INCOME AN D EXPENSES ON AN ACTUARIAL BASIS 

Contribution income: 

• Employer contributions $8,399,235 $8,443,862 

• Withdrawal liability payments 4 743 832 1186042 

Net contribution income $13,143,067 

Investment income: 

• Expected investment income $11 ,122,870 S10, 758,236 

• Adjustment toward market value 1 649 824 1,537,828 

Net investment income 12,772,694 

Total income available tor benefits $25,915,761 

Less benefit payments and expenses: 

• Pension benefits -$28, 153.461 -527 708 903 

• Administrative expenses -1204147 -1.~14 420 

Total benefit payments and expenses -S29.357,608 

Change in reserve for future benefits -$3.,441,$47 

Section 3 : Supplementary Information as of September 1, 201 7 for the Local 807 Labor-Management 

Pension Fund 

$9,629,904 

12,296,064 

$21,925,968 

-529 023.323 

-$7,097,355 

-r~ Segal Consulting 38 
CK784

EXHIBIT F - INVESTMENT RETURN -ACTUARIAL VALUE VS. MARKET VALUE 

• .!.I 

1998 $22,473,670 8 71% $26.488,651 8.53% 2008 $14,984,096 

1999 32,593,357 12.42% 47,058,801 14.76% 2009 .34 867 728 

2000 81,834,042 29.71% 59,512,080 17.18% 2010 8,037,106 

2001 29,277,005 8.67% -62 881 065 -16 28% 201 1 13,604,781 

2002 1,199,191 0.35% -11 203 792 .3 71% 2012 .4 948 828 

2003 15,178,041 4.65% 22,386,314 8.28% 2013 3,153,095 

2004 2,946,148 0.92% 23,032,687 8.45% 201 4 18,835,084 

2005 -2 324 160 076% 26,801 ,814 9.73% 2015 16,885,950 

2006 15,090,705 5.36% 13,791 .691 4.89% 2016 12,772,694 

2007 22,473,083 8.12% 26,072,256 9.44% 2017 12,296,064 

Total $281,493,396 

Most recent five-year average return: 

Most recent ten-year average return: 

20-year average return: 

Note Each year's yield is weighted by the average asset value in that year 

' The Investment return ro, 2000 mciudes the effed ol a change in the method for determining the actuarial value of assets. 

Section 3: Supi,kmentdry lnfon11ation as of September 1, 2017 for the Local 807 Labor-Man;igernc nt 

Pension Ft,ncl 

5.39% -$16.025 521 .5 71% 

12 73% -4!, 0 16.697 -18 32°/, 

3.69% 10,326,551 5.76% 

6.71% 24,761 ,516 14.84% 

-2 56"i 16,223,983 9.65% 

1.91 % 18,022,130 11.16% 

12.72% 27,727,402 17.41% 

11.34% .3 820.930 -2 26'V., 

8.61% 10,745,723 7.28% 

8.57% 14,376,699 10.21% 

$228,380,293 

8.48% 8.62% 

3.17% 3.15% 

5.74% 4.70% 

-t..- Segal Consulting 39 
CK785

EXHIBIT G - ANNUAL FUNDING NOTICE FOR PLAN YEAR BEGINNING 

SEPTEMBER 1, 2017 AND ENDING AUGUST 31, 201 8 

Actuarial valuation date 

Funded percentage 

Value of assets 

Value of liabilities 

Fair market value of assets as of plan year end 

Critical or Endangered Status 

September 1, 2017 

42.6% 

$147,543,512 

346,728,132 

Not available 

The Plan was in critical status in the plan year because a funding deficiency exists. 

'' 

September 1, 2016 

46.7% 

$154,640,867 

331,036,014 

146,959,183 

Section 3: Supplem,?ntary Information as of September 1, 2017 for the Local 807 Labor-Management 

Pension Fund 

September 1, 2015 

50.7% 

$158,082,714 

312,026,509 

151,975,903 

-{,- Segal Consulting 40 
CK786

EXHIBIT H - FUNDING STANDARD ACCOUNT 

ERlSA imposes a minimum funding standard that requires the Plan to maintain an FSA Tbe accumulation of contributions in excess 

o f the minimum required contributions is called the FSA credit balance. If actual contributions fall short on a cumulative basis, a 

funding deficiency has occurred. For a plan that is in critical status under PP/\ '06, employers "'@ generally not be penalized if a 

funding deficiency develops, provided the parti es fulfill their obligations in accordance with the Rehabilitation Plan developed by the 

Trustees and the negotiated bargaining agreements rcncct that Rehabilitation Plan. 

The FSA is charged with the normal cost and the amortiz.ation of increases or decreases in the unfunded actuarial accrued liability due 

to plan amendments, experience gains or losses, and changes in actuarial assumptions and funding methods. The FSA is credited with 

employer contributions and withdrawal liability payments. All items, including the prior credit balru1ce or deficiency, arc adj usted with 

interest at the actuarially assumed rate. 

Increases or dec reases in the unfunded actuaria l accrued liability arc amortized over 15 years except that short-term benefits, such as 

l 3th checks, are amortized over the scheduled payout period. 

FSA FOR THE YEAR ENDED AUGUST 31, 201 7 

1 Prior year funding deficiency $14,037,722 6 Prior year credit balance 

2 Normal cost. including administrative expenses 2,413,752 7 Employer contributions 

3 Total amortization charges 38,917,176 8 Total amortization credits 

4 Interest to end of the year 4,152 649 9 Interest to end of the year 

5 Total charges $59,521,299 10 Full-funding limitation credit 

11 Total credits 

Sec tion 3 : Supplemo:? 11 t<1ry lnforn1c1tion a s of Se ptember 1, 201 7 for the Local 807 Labor-Ma nagement 

Pension Fu nd 

$0 

9,629,904 

3,657,194 

605,318 

Q 

$13,892,416 

-Wj628883 

.,"., Segal Consulting 4 1 
CK787

EXHIBIT I - MAXIMUM DEDUCTIBLE CONTRIBUTION 

Employers that contribute to de(i ned benefit pension plans arc allowed a current deduction for payments to such plans. There are 

various measures of a plan's fi.rndcd level that are considered in the devdopment o f the ml:lx imum deductible contribution amount. 

One of the limits is the excess o f 140% of "current liability" over assets. "Current liability" is one measure of the actuarial present 

value of all benefits earned by the partic ipants as of the valuation date. Th.is limit is significantly higher than the c urrenl contribution 

level. 

Contributions in excess o f the maximwn deductible amount are not prohibited; only the deductibility of these contributions is subject 

10 challenge and may have to be deferred to a later year. In addition, if contributions are not fully deduc tible, an excise tax in an 

amount equal to I 0% of the non-deductible contributions may be imposed. However, the plan sponsor may elect to exempt the nondeductible l:lmount up to the ERISA full-funding limitation from the excise tax. 

The Trustees should review the interpretation and applicability o f a ll laws and regulations concerning any issues as to the deductibility 

of contribulion amounts w ith Fund Counsel. 

1 Normal cost, including administrative expenses 

2 Amortization of unfunded actuarial accrued liability 

3 Preliminary maximum deductible contribution: 1 + 2 , with interest to the end of the plan year 

4 Full-funding limitation (FFL) 

S Preliminary maximum deductible contribution, adjusted for FFL: lesser of 3 and 4 

6 Current liability for maximum deductible contribution, projected to the end of the plan year 

7 Actuarial value of assets, projected to the end of the plan year 

$2,879,618 

27,443,982 

$32,446,252 

349,376,719 

8 Excess of 140% of current liability over projected assets at end of plan year: [1 40% of (61] - (71. not less than zero 

32,446,252 

527,645,882 

125,504,575 

613,199,660 

9 End of year minimum required contribution 

Maximum deductible contribution: _greatest of 5, 8, aJtd 9 

Section 3: Suppl-, nentary In formation as of Se ptem ber 1, 2017 for the Loca l 807 Labor-Ma nagement 

Pension Fu nd 

91 ,093,017 

$613,199,660 

l.- Segal Consulting 42 
CK788

EXHIBIT J - PENSION PROTECTION ACT OF 2006 

PPA'06 Zone Status 

Based on projections of the credit balance in the FSA, the funded percentage, and cash flow sufficiency tests, plans are categorized in 

one o r three "zones": critical status, endangered Starns, or neither. 

The funded percentage is detennined using the actuarial value of assets and the present value or benefits earned to date, based on I.he 

actuary's best estimate assumptions. 

A plan is classified as being in critical status (the Red Zone) if. 

• The funded percentage is less than 65%, and either there is a projected FSA deficiency within five years or the plan is projected to 

be unable to pay benefits within seven years, or 

• There is a projected FSA deficiency within four years, or 

• There is a projected inability to pay benefits within five years, or 

• The present value of vested benefits for inactive participants exceeds that for actives, contributions are less than the value of the 

current year's benefit accruals plus interest on existing unfunded accrued benefit liabilities, and there is a projected FSA deficiency 

within five years, or 

• As permitted by the Multiemployer Pension Reform Act of 2014, the plan is projected to be in the Red Zone within the next five 

years and the plan sponsor elects to be in critical status. 

A critical status plan Is further classified as being in critical and declining status if-

• The ratio of inactives to actives is at least 2 to 1, and there is an inability to pay benefits projected within 20 years, or 

• The funded percentage is less than 80%, and there is an inability to pay benefits projected within 20 years, or 

• There is an inability to pay benefits projected within 15 years. 

Any amortization extensions are ignored for testing initial entry into the Red Zone. 

The Trustees are required to adopl a formal Rehabilitation Plan, designed to allow the plan to emerge from critical status by the end 

of the rehabilitation period. If they determine that such emergence is not reasonable, the Rehabilitation Plan must be designed to 

emerge as of a later time or to forestall possible insolvency. 

Trustees of Red Zone plans have tools, such as the ability to reduce or eliminate early retirement subsidies, to remedy the situation. 

Accelerated forms of benefit payment (such as lump sums) are prohibited. However, unless the plan is critical and declining, 

Trustees may not reduce benefits of participants who retired before being notified of the plan's critical status (other than rolling back 

recent benefit increases) or alter core retirement benefits payable at normal retirement age. 

Sec tion 3: Supplementary Inform ation as o f September 1, 2 017 for t he Local 807 L abor-Management 

Pension Fund f.,. Segal Consulting 43 
CK789

A plan not in critical status {Red Zone) is classified as being in endangered status {the Yellow Zone) if: 

• The funded percentage is less than 80%, or 

There is a projected FSA deficiency within seven years. 

A plan that has both of the endangered conditions present is classified as seriously endangered. 

Trustees of a plan that was in the Green Zone in the prior year can elect not to enter the Yellow Zone in the current year (although 

otherwise required to do so} if the plan's current provisions would be sufficient (with no further action) to allow !he plan to emerge 

from the Yellow Zone within 10 years. 

The Trustees are required to adopt a formal Funding Improvement Plan, designed to improve the current funded percentage, and 

avoid a funding deficiency as of the emergence date. 

============-'----==--------===--""'===, A plan not in critical status {the Red Zone) nor in endangered status {the Yellow Zone) is classified as being in the Green Zone. 

Trustees of a Green or Yellow Zone plan that is projected to enter the Red Zone within the next five years must elect whether or not 

to enter the Red Zone for the current year. 

Section 3: Su pleme 1ta•y Information as o f September 1, 2017 for the Local 807 Labor-Management 

Pension Fund .;, ... Segal Consulting 44 
CK790

3 

4843-5314-9590, V. 1 
EIN 51-6099111/PN 002 

APRIL 25, 2018 

CERTIFICATE OF ACTUARIAL VALUATION 

This is to certify that Segal Consulling. a Member of The Segal Group, Inc. ("Segal") has prepared an actuarial valuation of the Local 807 LaborManagement Pension Fund as of September I, 2017 in accordance with gene rally accepted actuarial principles and practices. 1t has been prepared 

at the reques t of the Board of Trustees to assis1 in administering the Fund and meeting fili ng requirements of federal government agencies. This 

valuation report may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees and may only be provided 

to other parties in its entirety. 

The measurements shown in this actuarial valuation may not be applicable for other purposes. Future actuarial measurements may differ 

significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that 

anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; .increases or decreases expected as 

part of the natural operation or the methodology used for these measurements (such as the end of ru1 amortization period or additional cost or 

contribution requirements based on the p lan's funded status); and changes in plan provisions or applicable law. 

Tbe valuation is based on the assumption that the Plan is qualified as a multiemployer plan for the year and on information supplied by the 

auditor with. respec t to contributions and assets and reliance on the Plan Administrator with respect to the participant data. Segal Consulting does 

not audit the data provided. The accuracy and comprehensiveness of the data is the responsibility of those supplying the data. To the extent we 

can, however, Segal does review the data for reasonableness and consistency. Based on our review of the data, we have no reason lo dt)ubl the 

substantial accuracy or the infonnation on which we have ba5ed this report and we have no reason to believe there arc fac ts or circumstances that 

would affect the validity ofthesc results. Adjustments for incomplete or apparently inconsistent data were made as ckscribed in the atcached 

Exhibil 8. 

I am a member of the American Academy of Actuaries and I meet the QW1lifica1ion Standards of the American Academy of Actuaries to render 

the actuarial opinion hen::in. To the best ofmy knowledge, the infom1ation supplied in this actuarial valuation is compk:te and accura te, except as 

noted in Exhibit J. Each prescribed assumption for the determination of Currenl Liability w~ applied in accordance wilh applicable Jaw and 

regulations. In my <1pinion, each other assumption is reasonable (taking into account the experience of the plan and reasonable expectations) and 

· · · , offer my best estimate of anticipate-cl experience under the plan. 

Vice President and Actuary 

Enrolled Actuary No. 17-06166 

Section 4: Certificate ot Actuarial Valuation as of September 1, 2017 for the Local 807 LaborMan;igement Pension Fund ..,vT" Segal Consulting 45 

CK791 
CK792

EIN 51-6099111/PN 002 

EXHIBIT 1 - SUMMARY OF ACTUARIAL VALUATION RESULTS 

Tbe valuation was made \.\~th respect to the fol lowing data supplied to us by the Plan Administrator: 

Pensioners as of the valuation date (including 639 beneficiaries in pay status and eight pensioners in 

suspended status) 

Participants inactive during year ended August 31 , 2017 with vested rights (including 85 participants 

with unknown age) 

Participants active during the year ended August 31 , 2017 (including 73 participants with unknown age) 

• Fully vested 

• Not vested 

The actuarial factors as of the valuation date are as follows: 

Normal cost, including administrative expenses 

Actuarial present value of projected benefits 

Present value of future normal costs 

Actuarial accrued liability 

• Pensioners and beneficiaries 1 

• Inactive participants with vested rights 

• Active participants 

Actuarial value of assets ($146,959,183 at market value as reported by Schultheis & Panettieri LLP) 

Unfunded actuarial accrued liability 

1 Includes liabilities for 24 former spouses in pay status. 

Section 4: Certif icate o f A ctuari;il Valuation as o f September 1, 2017 for the L o cal 807 Labo rManagement Pension Fun d 

524 

168 

$218,616,602 

69,040,224 

66,134,582 

2,813 

935 

692 

$2,879,618 

362,880,123 

9,088,715 

353,791,408 

$147,543,512 

206,247,896 

.. ~ Segal Consulting 46 
CK793

EIN 51 -6099111/PN 002 

EXHIBIT 2 - ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS 

The actuarial present value of accumulated plan benefiL~ calculated in accordance with FASB ASC 960 is sbown below as of September I, 

2016 an<l as o f September I, 2017. In addition, the factors that affected the change bet.veen the two <lates follow. 

Actuarial present value of vested accumulated plan benefits: 

Participants currently receiving payments 

Other vested benefits 

Total vested benefits 

Actuarial present value of non-vested accumulated plan benefits 

Total actuanal present value of accu 

Benefits accumulated, net experience gain or loss, changes in data 

Benefits paid 

Changes in actuarial assumptions 

Interest 

Total 

$213,992,714 

116.768,019 

$330,760,733 

275,281 

$3~ ,c,38,014 

Section 4 : Certificate of A ctuarial Valuation as of September 1, 2017 for the Local 807 l aborManagement Pension Fund 

$218,616,602 

127,587 346 

$346,203,948 

524,184 

$346,728,132 

S5,416,378 

-27 708.903 

14,282,616 

23,702,027 

$15,692,118 

-,V~ Segal Consulting 47 
CK794

EXHIBIT 3 - CURRENT LIABILITY 

The table below presents the current liability for the Plan Year beginning September I, 2017. 

Retired participants and beneficiaries receiving payments 

Inactive vested participants 

Active participants 

Non-vested benefits 

• Vested benefits 

• Total active 

Total 

Expected increase in current liability due to benefits accruing during the plan year 

Expected release from current liability for the plan year 

Expected plan disbursements for the plan year, including administrative expenses of $1,500,000 

Current value of assets2 

Percentage funded for Schedule MB 

1 The actuarial assumptions used to calculate these values are shown in Exhibit 8. 

2 Includes $11,876,742 in withdrawal liability payments receiaable. 

Sec tion 4: Certificate o f Ac t uarial Valuation as o f September 1, 20 17 for the Local 807 Labo rManagem ent Pen s ion Fund 

EIN 51 -6099111/PN 002 

$1 ,596,175 

118.540 332 

$289,057,878 

127,410,158 

$120, 136,507 

$536,604,543 

$4,817,172 

29,693,565 

31,193,565 

$158,835,925 

29.6% 

..,".,.. Segal Consulting 48 
CK795

EIN 51-6099111/PN 002 

EXHIBIT 4 - INFORMATION ON PLAN STATUS AS OF SEPTEMBER 1, 2017 

Plan status (as certified on November 29, 2017, for the 2017 zone certification) 

Scheduled progress (as certified on November 29, 2017, for the 201 7 zone certification) 

Actuarial value of assets for FSA 

Accrued liability under unit credit cost method 

Funded percentage for monitoring plan's status 

Year in which insolvency is expected 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund 

Critical 

Yes 

$147,543,512 

346.728,132 

42.6% 

2029 

* Segal Consulting 49 
CK796

EIN 51-60991 11/PN 002 

EXHIBIT 5 - SCHEDULE OF PROJECTION OF EXPECTED BENEFIT PAYMENTS 

(SCHEDULE MB, LINE 8b( 1 )) 

2017 $29,660,601 

2018 29,017,862 

2019 28,540,864 

2020 28,141 ,176 

2021 27,855,072 

2022 27,565,261 

2023 27,223,633 

2024 26,930,258 

2025 26,688,239 

2026 26,376,318 

1 Assuming as of the valuation dale: 

• no additional accruals. 

, experience is in line with valuation assumptions, and 

• no new entrants are covered by the plan. 

Section 4: Certificare of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborM,magement Pens ion Fund ·{r Segal Consulting 50 
CK797

EXHIBIT 6 - SCHEDULE OF ACTIVE PARTICIPANT DATA 

(SCHEDULE MB, L!NE 8b(2)) 

The participant data is for the year ended January 3 1, 2017. 

Under 25 

25 -29 10 9 

30 - 34 34 21 6 7 

35- 39 43 19 8 13 3 

40- 44 68 16 10 17 18 7 

45 - 49 94 12 15 21 25 15 

50 - 54 134 20 16 27 25 26 

55 - 59 115 7 8 22 22 28 

60 - 64 81 6 23 10 16 

65 - 69 35 3 4 7 9 

70 & over 5 

Unknown 73 61 12 

Total 692 168 86 135 110 102 

Nole: Excludes 66 participants v~th less than one pension credit. 

Se ction 4: Certific ate o f A c tuarial Valuation as of September 1, 2017 for the Locai 807 LaborManagament Pension Fund 

6 

11 9 

14 10 

9 11 

6 

47 31 

EIN 51 -6099111/PN 002 

4 

4 

4 

12 1 

·-."'r Segal Consulting 51 
CK798

EXHIBIT 7 - FUNDING STANDARD ACCOUNT 

The table below presents the FSA for the Plan Year ending August 3 I, 2018. 

1 Prior year funding deficiency $45,628,883 6 Prior year credit balance 

2 Normal cost, including administrative expenses 2,879,618 7 Amortization credits 

3 Amortization charges 40,216,249 8 Interest on 6 and 7 

4 Interest on 1. 2 and 3 6,210,733 9 Full-funding limitation credit 

'5 Total charges $~~tR'otaTcredlts 

Minimum contribution with interest required to avoid a funding deficiency: 5 - 10, not less than zero 

ERISA FFL (accrued liability FFL) 

RPA'94 override (90% current liability FFL) 

FFL credit 

Sec tion 4: Certificate ot Ac tuarial Valuation as of September 1, 2017 for the Local 80 7 LaborManagement Pension Fund 

EIN 51-6099111/PN 002 

$0 

3,591 ,089 

251 ,376 

0 

$3,842,465 

$91 ,093,018 

$224,391,672 

349,376,719 

0 

-iT Segal Consulting 52 
CK799

EXHIBIT 7 - FUNDING STANDARD ACCOUNT (CONTINUED) 

Plan amendment 09/01/2009 $529,467 

Actuarial loss 09/01/2009 5,822,349 

Combined and offset base 09/01/2009 24,741 ,614 

Plan amendment 09/01/2010 41 ,383 

Actuarial loss 09/01/2010 784,017 

Actuarial loss 09/01/2011 180,307 

Actuarial loss 09/01/2012 2,392,142 

Actuarial loss 09/01/2013 1,072,777 

Assumption changes 09/01/2014 718,260 

Actuarial loss 09/01/2016 8,293 

Assumption changes 09/01/2016 2,268,417 

Actuarial loss 09/01/2017 159,514 

Assumption changes 09/01/2017 1,497,709 

Total $40,216,249 

Section 4: Certificate of Ac tuarial Valuation as o f September 1, 2017 for the L ocal 807 L aborManaqemen t Pens ion Fl!nd 

EIN 51-6099111/PN 002 

7 $3,053,191 

7 33,574,806 

3.22 74,134,349 

B 264,410 

8 5,009,309 

9 1,256,975 

10 17,977,501 

11 8,607.512 

12 6,104,254 

14 77,601 

14 21 ,227,054 

15 1,554,540 

15 14,595,873 

$187,437,375 

..,.,,,,.,.. Segal Consulting 53 
CK800

0 

0 

co 

..... 

EXHIBIT 7 - FUNDING STANDARD ACCOUNT (CONTINUED) 

Assumption changes 09/01/2010 $51,752 

Plan amendment 09/0112011 2,522,660 

Actuarial gain 09/0112014 428,664 

Actuarial gain 09/01/2015 588,013 

Total $3,591,089 

Sec tion 4: Certificate o~ Ac tuarial Valuation as o f September 1, 2017 for the Local 807 LaborManagem ent Pensio n Fund 

8 

9 

12 

13 

EIN 51-6099111/PN 002 

$330,656 

17,586,215 

3,643,077 

5,258,414 

$26,818,362 

.. v.,... Segal Consulting 54 
CK801

EIN 51-6099111 /PN 002 

Mortality Rates 

EXHIBIT 8 - STATEMENT OF ACTUARIAL ASSUMPTIONS/METHODS 

(SCHEDULE MB, LINE 6) 

Healthy· 

Disabled· 

RP-2014 Blue Collar Employee and Annuitant Mortality Tables {adjusted back to 2006} with 

generational Scale MP-2017 from 2006 

RP-2014 Disabled Annuitant Mortality Table (adjusted back to 2006) with generational Scale MP-2017 

from 2006 

The above mortality tables reasonably reflects the mortality experience of the Plan as of the measurement date. These 

mortality tables were then adjusted to future years using generational projection under Scale MP-2016 to anticipate 

future mortality improvement. 

The mortality rates were based on historical and current demographic data, adjusted to reflect estimated future 

experience and professional judgment. As part of the analysis, a comparison was made between the actual number of 

and the projected number based on the prior year's assumption over the most recent years. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborManagement Pension Fund -ft Segal Consulting 55 
CK802

EIN 51 -6099111/PN 002 

Termination Rates 

20 0.07 0.02 17.99 14.19 0.00 

25 0.07 0.02 21.74 17.14 12.96 

30 0.06 0.02 18.61 13.58 8.39 

35 0.07 0.03 16.78 11.02 7.15 

40 0.10 0.05 15.91 10.35 6.01 

45 0.16 0.09 15 48 9.47 5.82 

50 0.26 0.13 15.60 8.90 5.32 

55 0.38 0.19 13.52 7.82 2.59 

60 0.64 0.31 13.63 7.84 2.12 

' Mortality rates are shown from the base table and do not reflect any mortality projection. 

2 Withdrawal rates cut out at ear1y retirement age. 

0.00 

0.00 

4.84 

5.02 

4.15 

3.73 

3.49 

0.88 

0.20 

The termination rates were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of the analysis, a comparison was made between the actual number of retirements by 

age and the projected number based on the prior year's assumption over the most recent years. 

Section 4 : Cert ficat-, of Ac tuarial Valuation as of Septem ber 1, 2017 for the Local 807 LaborMa nagement Pension Fund l'..- Segal Consulting 56 
CK803

EIN 51-609911 1/PN 002 

Retirement Rates 

Description of 

Weighted Average 

Retirement Age 

55-61 2% 

62 6 

63 5 

64 11 

65 16 

66 18 

67 11 

68 22 

69 14 

70 100 

• if eligible 

The retirement rates were based on historical and current demographic data, estimated future experience and 

professional judgment. As part of !he analysis, a comparison was made between !he actual number of retirements by 

age and the projected number based on the prior years' assumption over the most recent years. 

Age 66, determined as follows: The weighted average retirement age for each participant is calculated as the sum of 

the product of each potential past or future retirement age times the probability of surviving from entry age to that age 

and then retiring at that age, assuming no other decrements. The overall weighted retirement age is the average of the 

individual retirement ages based on all the active participants included in !he September 1, 2017 actuarial valuation. 

Sec tion 4 ; Certificate ot Ac tuarial Valuatio n as of Septernber 1, 2017 for the Local 807 LaborManagement Pension Fund -tr Segal Consulting 57 
CK804

EIN 51 -6099111/PN 002 

Retirement Rates for 

Inactive Vested 

Participants 

Future Benefit 

Accruals 

Unknown Data for 

Participants 

Definition of Active 

Participants 

Exclusion of Inactive 

Vested Participants 

Percent Married 

Age of Spouse 

55 24% 63 10% 

56 6 64 3 

57 4 65 53 

58 2 66 29 

59 10 67 13 

60 7 68 5 

6 1 2 69 13 

62 20 70 100 

• if eligible 

The retirement rates for inactive vested participants were based on historical and current demographic data, adjusted to 

reflect estimated future experience and professional judgment. As part of the analysis, a comparison was made 

between the actual number of retirements by age and the projected number based on the prior years' a~_sumption over 

the most recent years. 

Employees are assumed to work 1,850 hours per year. 

The future benefit accruals were based on historical and current demographic data, estimated future experience and 

professional judgmenl As part of the analysis, a comparison was made between the assumed and the actual benefit 

accruals over the most recent years. 

Same as those exhibited by participants with similar known characteristics. If not specified, participants are assumed to 

be male. 

Active participants are defined as those with at least 250 hours in the most recent credit year and who have 

accumulated at least one pension credit, excluding those who have retired as of the valuation date. 

None 

50% 

Females three years younger than males. 

Section 4: CtJr!if1cate of A c tuarial Valuation as of September 1, 2017 for the L o c al 807 L aborMana gement Pension Fu nd .r .. Segal Consulting 58 
CK805

Benefit Election 

Delayed Retirement 

Net Investment Return 

Annual Administrative 

Expenses 

Actuarial Value of 

Assets 

Actuarial Cost Method 

Benefits Valued 

Current Liability 

Assumptions 

Estimated Rate of 

Investment Return 

FSA Contribution 

Timing (Schedule MB, 

line Ja) 

EIN 51-6099111/PN 002 

60% of participants assumed to elect the Single Life Annuity, 20% assumed to elect 50% Joint and Survivor Annuity, 

and 20% assumed to elect 75% Joint-and-Survivor Annuity. 

The benefit elections were based on historical and current demographic data, adjusted to reflect the plan design, 

estimated future experience and professional judgment. As part of the analysis, a comparison was made between the 

assumed and the actual option election patterns over the past several years. 

Inactive vested participants wtJo are assumed to commence receipt of benefits after attaining normal retirement age 

qualify for delayed retirement increases. 

7.00% . 

The net investment return assumption is a long-term estimate derived from historical data, current and recent market 

expectations, and professional judgment. As part of the analysis, a building block approach was used that reflects 

inflation expectations and anticipated risk premiums for each of the portfolio's asset classes as provided by Segal 

Marco Consulting, as well as the Plan's target asset allocation. 

$1,500,000, payable monthly, for the year beginning September 1, 2017 (equivalent to $1 ,446,296 payable at the 

beginning of the year) 

The annual administrative expenses were based on historical and current data, adjusted to reflect estimated future 

experience and professional judgment. 

The market value of assets less unrecognized returns in each of the last five years. Unrecognized return is ~qual to the 

difference between the actual market return and the projected market return, and is recognized over a five-year period. 

The actuarial value is further adjusted, if necessary, to be within 20% of the market value. 

Entry Age Normal Actuarial Cost Method. Entry Age is the age at date of employment or, if date is unknown, current 

age minus pension credits. Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and are 

allocated by service, with Normal Cost determined as if the current benefit accrual rate had always been in effect. 

Unless otherwise indicated, includes all benefits summarized in Exhibit 9. 

Interest: 3.03%, within the perm1ss1bfe range prescribed under IRC Section 431(c)(6)(E) 

Mortality: Mortality prescribed under IRS Regulations 1.431(c)(6)-1 and 1.430(h)(3)-1: RP-2000 tables projected forward 

to the valuation year plus seven years for annuitants and 15 years for nonannuitants 

On actuarial value of assets (Schedule MB, line 6g). 8.48%, for the Plan Year ending August 31, 2017 

On current (market) value of assets (Schedule MB, line 6h): 10.10%. for the Plan Year ending August 31, 2017 

Unless otherwise noted, contributions are paid periodically throughout the year pursuant to collective bargaining 

agreements. The interest credited in the Funding Standard Account is therefore assumed to be equivalent to a March 

15 contribution date. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborM anagement Pension Fund * Segal Consulting 59 

. , 
CK806

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

EIN 51-609911 1/PN 002 

For purposes of determining current liability, the current liability interest rate was changed from 3.11% to 3.03% due to 

a change in the permissible range and recognizing that any rate within the permissible range satisfies the requirements 

of IRC Section 413(c)(6)(E) and the mortality tables were changed in accordance with IRS Regulations 1.431(c)(6)-1 

and 1.430(h)(3)-1. 

Based on past experience and future expectations, the following actuarial assumptions were changed: 

Mortality rates tor healthy participants, previously RP-2014 Blue Collar Mortality Tables (adjusted back to 2006) with 

generational projection using Scale MP 2016 from 2006. 

Mortality rates for disabled participants, previously RP-2014 Disabled Annuitant Mortality Table (adjusted back to 

2006) with generational projection using Scale MP 2016 from 2006. 

Retirement rates for each participants, previously: 

55-61 2% 

62 - 63 6 

64 12 

65 15 

66 16 

67 7 

68 16 

69 19 

70 100 

• if eligible 

Sec tion 4 : C ertificate of Ac tuarial Valuatio n as of September 1, 201 7 for the Local 807 LaborManagement Pension Fund .X- Segal Consulting 60 
CK807

EIN 51-6099111/PN 002 

Justification for 

Change in Actuarial 

Assumptions 

(Schedule MB, line 11) 

(Cont'd) 

Retirement rates lor inactive vested participants, previously: 

55 28% 63 

56-57 4 64 

58 2 65 

59 10 66 

60 9 67 

61 2 68 

62 20 69 

70 

• if eligible 

12% 

3 

52 

29 

12 

6 

13 

100 

Benefit election, previously 60% of participants assumed to elect Single Life Annuity and 40% assumed to elect 

50% Joint-and-Survivor Annuity 

Annual administrative expenses, previously $1,275,000 per year 

Net investment return, previously 7.50% 

Sec tion 4: Certificate of Ac tuarial Valu ation as o f Septem ber 1, 2017 for the L ocal 807 LaborManagement Pension Fund ~ Segal Consulting 61 
CK808

EXHIBIT 9 - SUMMARY OF PLAN PROVISIONS 

(SCHEDULE MB, LINE 6) 

EIN 51-6099111/PN 002 

This exhibi1 summarizes the: major provisions of the Plan included in the valuation. It is not intended to be, nor should it be interpre ted as, a 

·complete statement of' a ll plan provisions. 

Plan Year 

Pension Credit Year 

Plan Status 

Regular Pension 

Early Retirement 

_ Vesting 

September 1 through August 31 

February 1 through January 31 

Ongoing plan 

• Age Requirement· 65 

• Service Requirement: 15 pension credits 

Amount. The total accrued benefit is the sum of each year's accrual based on 

1. The highest contribution rate prior lo February 1, 201 O for service earned prior to February 1, 2010. 

2. The highest contribution rate that was made for at least 250 hours during the pension credit year for 

service from February 1, 2010 to January 31. 2012. 

3. For service on and after February 1, 2012, the accrual rate is lesser of: 

(a) 1 % of product of number of hours for which contributions are due on behalf of the participant in 

credit year based on the contribution rate in effect on September 1. 2011. or ' 

(b) Accrual rate under the Plan as of September 1, 2011. 

The accrual rate effective May 1, 2001 for contribution rates $4.315 or more per hour, $165 for each pension credit less 

than 25 plus $20.49 for each pension credit greater than 25. Lower benefit levels have been established for employees 

at lower contribution levels. 

Delayed Retirement Amount: Regular pension accrued at Normal Retirement Age (NRA), increased by 1.0% for each 

.month greater than NRA, and 1.5% /or each month greater than age 70. 

• Age Requirement: 55 

• Service Requirement· 15 pension credits 

• Amount: Regular pension accrued, actuarially, reduced from age 65 

• Age Requirement: None 

• Service Requirement: Frve pension credits or S years of vesting service 

• Amount· Regular or early pension accrued based on plan rn effect and contribution rate when last active 

• Normal Retirement Age: Later of age 65 or the participant's 5th anniversary of participation. 

Section 4: Certificate of Actuarial Valuation as of September 1, 2017 for the Local 807 LaborM anage ment Pe ns ion Fund "ft Segal Consulting 62 
CK809

EIN 51 -6099111 IPN 002 

Spouse's PreRetirement Death 

Benefit 

Optional Forms of 

Benefits 

Participation 

Pension Credit 

Vesting Credit 

Contribution Rate 

Changes in Plan 

Provisions 

8703328v1101544.001 

• Age Requirement: None 

Service Requirement: 5 pension credits or 5 years of vesting service 

Amount: 50% of the benefit employee would have received had he or she re/ired the day befo,e he or she died and 

elected the joint and survivor option. If the employee died prior to eligibility for an early ret,remont pension, the 

spouse's benefit is deferred to the date employee would have first been eligible to retire. 

Charge for Coverage: None 

50% Joint-and-Survivor 

75% Joint-and-Survivor 

Single Life Annuity 

Earliest of February 1 or August 1 after completion of 1,000 hours during a 12 consecutive month period. 

Under250 O 

250 -499 114 

500- 749 112 

750-999 314 

1,000 and over 

One year of vesting service for at least 1,000 hours. 

Rates as of September 1, 2017 vary from $1 .50 to $10.37 per hour, with an average rate of $6.9393. 

None 

Section 4: Cert,fic~ie of Actu arial Valuation as o f Sep tember 1, 201 7 for the L ocal 807 L aborManagcme,•t Pens ion FLnd .,,... Segal Consulting 

.. _ 

63