8.1

Bricklayers & Allied Craftsmen Local No. 7 Pension Plan

Checklist Item #08

Does the application include the plan sponsor’s determination of projected insolvency that includes 

the documentation set forth in section 5 of Revenue Procedure 2016-27? See section 3.03.

Document 8.1 provides the determination of projected insolvency that includes the documentation

set forth in section 5 of Revenue Procedure 2016-27.
8.2

3.03 Plan Sponsor’s Determination of Projected Insolvency

Document 8.1

Determination of 

Projected Insolvency

The Board of Trustees of the Pension Plan determined, after review of all of the available 

information and possible reasonable plan changes, that the Pension Plan would become insolvent 

unless benefits were suspended as required under Internal Revenue Code (IRC) § 432(e)(9)(C)(ii).

United Actuarial Services, Inc., the Pension Plan’s actuary, determined that the Pension 

Fund was in critical status as of May 1, 2008, when the Pension Plan first became subject to 

compliance with the Pension Protection Act of 2006. In August 2008, the Board of Trustees 

adopted its initial rehabilitation plan, which was designed to eliminate adjustable benefits in order 

to reduce the present value of accumulated benefits.

In 2009, the Pension Plan’s actuary advised the Board of Trustees that the Pension Plan 

was facing insolvency by April 30, 2023. In response, the Board of Trustees adopted a new 

rehabilitation plan, effective May 1, 2010, which continued to make use of the exhaustion of all 

reasonable measures clause and began attempting to forestall insolvency.

In 2016, the Pension Plan’s actuary certified to the Board of Trustees that the Pension Plan 

was in critical and declining status for the plan year beginning May 1, 2016. The actuary 

determined that the Pension Plan would be insolvent by the end of the 2024-2025 plan year. The 

actual certification under the Pension Protection Act is included as Exhibit 3 of Checklist Item #5 

of this application. The actuary reached this conclusion even though the Board of Trustees had

taken all reasonable measures to avoid insolvency. For more information about the benefit changes 

and contribution increases undertaken since 2006, see Checklist Item #18 of this application.

The application also provides detailed information on the reasonable measures taken into 

account in making this determination that the proposed suspension is necessary to avoid 

insolvency. These are detailed in the following sections of the application:

 For a description of past and current measures taken in order to avoid insolvency 

over the 10-year period beginning on May 1, 2006, see Checklist Item #18.

 For a discussion of the various factors taken into account during the determination 

by the Board of Trustees that all reasonable measures had been taken to avoid 

insolvency prior to filing this application, see Checklist Item #19.

 For information concerning the contribution levels, benefit reductions, measures 

taken to retain and attract new contributing employers, compensation levels, and 

competitiveness and other economic factors, see Checklist Items #20 and #21.
8.3

 For a description of all other factors taken into account during the Board of 

Trustees’ determination that all reasonable measures had been taken to avoid 

insolvency prior to filing this application, see Checklist Item #22.