Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015

Defined Contri-
bution Dollars

Assumption
Changes

The liabilities were grossed up to include the value of the defined contribution plan for
certain YRCW participants. Pursuant to the audit, this amount is $111,792 as of March
31, 2015.

The interest rate was changed from 7.50% to 6.75%.

The mortality table was changed from 1983 Group Annuity Table, blended 50% male
and female with no provision for future mortality improvement, to the following:

Healthy: | RP-2014 with blue collar adjustment with mortality improvement scale
MP-2014

Disabled:  RP-2014 for disableds with mortality improvement scale MP-2014

The expected expenses were increased from $410,000 per year to $440,000 per year.

The liabilities were grossed up to include the defined contribution plan for certain
YRCW participants.

18


Teamsters Local 805 Pension Plan a O'Sullivan
Actuarial Valuation as of 3/31/2015 is cia

4.3.4 Funded Percentage

Plan Present Funded Percentage
Years Market Value of 100% See Maret a
Ending Value Accrued Funded 90%
Mar. 31 of Assets Benefits Percentage 80%
2011 — $77.615,659 $134,175,975 57.8% 70%
%
2012 71,300,012 136,331,942 523 oe ——
50% SS
2013 67,919,811 138,241,282 49.1 40% ~~
2014 66.933,598  138,296.016 48.4 30%
20%
2015 $62,149,280 $158,912,439 39.1% ae
0%
> a 2 + 2
5 € &§ 8 &
——At Market

The Funded Percentage is a statistic commonly followed by Trustees. It provides an alternative measure of the
Plan’s current level of funding. The Funded Percentage compares the market value of assets to the value of
benefits accrued as of the valuation date. Based on the market value of assets of $62,149,280 and the total
value of accumulated benefits of $158,912,439 , the Funded Percentage is 39.1% as of March 31, 2015.

The fact that the Funded Percentage is under 100% means that there are unfunded accumulated benefits when
valuing the Plan on an ongoing basis. It does not necessarily imply that the Plan is underfunded on a long term
basis because it makes no consideration of future contributions relative to future costs. The Margin is the best
single statistic to get a sense of how well funded the Plan is on a long term basis.

Moreover, the Funded Percentage is not a measure of funding on a Plan termination basis. That would require
a different interest assumption.

The Funded Percentage as per the Pension Protection Act uses the actuarial value of assets and is 43.3% as of
March 31, 2015.

12


Teamsters Local 805 Pension Plan a O'Sullivan
Actuarial Valuation as of 3/31/2015 is al

Amount:

‘Non-Married
Post-retirement death

Qualified Joint & Survivor
Annuity

100% of the benefit Participant would have received had he retired the day
before he died and elected the 100% joint and survivor option. Benefits com-
mence to beneficiary when Participant would have first been eligible to retire.

None

If married, pension benefits are paid in the form of an actuarially reduced
joint and survivor annuity unless this form is rejected by Participant and
spouse. If rejected, or if not married, benefits are payable for the life of the
Participant.

22


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015

2.

Valuation Summary

A. Long-Term Funding

Projected annual contributions of $1.78 million ($301.07 per month) fall short of the total annual cost
of benefits of $10.39 million ($1,759.05 per month). This leaves a negative margin of $8.61 million
or $(1,457.98) per month.

. White Rose Trucking Withdrawal

White Rose Trucking has withdrawn from the Plan and was assessed $13.5 million dollars in with-
drawal liability. The employer is currently in bankruptcy proceedings and it is unclear how much
money the Plan will receive.

For the purpose of this valuation, we have assumed White Rose will not pay any of its withdrawal
liability assessment.

. Pension Protection Act
As of April 1, 2015 the Plan’s funding percentage is 43.3% and it has a negative credit balance. Ad-
ditionally, the Plan is projected to become insolvent within the current or next 19 years, and its ratio
of inactive to active participants is in excess of 2 to 1. Therefore, as of April 1, 2015, the Plan is in
Critical and Declining Status.

The Trustees have adopted a Rehabilitation Plan to address the Plan’s funding issues, which is ex-
plained in detail in Section 4.5 of the report.

. Assumption Changes
We have made the following changes in the Plan’s actuarial assumptions:
e The Plan’s interest rate assumption was changed from 7.50% to 6.75%.

e The mortality was updated from 1983 GAM to RP-2014 with mortality improvement scale
MP-2014.


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

7.7 Distribution of Monthly Pensions

$0- $250- $500- $750- $1,000 $1,250

Po-suttiven

$1,500 $1,750 $2,000 $2,250 $2,500 $2.750

BFP we 8
LK Sw’
Age

Oa >
PPP oF

249 499 749 999 -1.249 -1499 -1,749 -1,999 -2.249 -2.499 -2.749 -2,999 $3.000+ Total
<50 Z 3 5
50-54 2 2 2 3 4 7 2 1 23
55-59 11 4 13 6 4 5 1 5 9 6 8 72
60-64 21 18 11 8 2 5 7 5 6 3 12 7 1 106
65-69 33 36 24 12 6 14 6 5 17 9 10 5 10 187
70-74 50 28 22 10 7 9 9 4 9 1 7 a 6 164
75-79 49 26 4 13 10 8 ll 2 4 1 5 2 5 150
80-84 24 22 18 16 11 9 6 2 7 2 1 2 120
85-89 12 14 24 20 2 ¥ 5 2 2 1 89
90-94 4 10 9 7 4 1 2 37
95-99 1 4 3 2 1 11
100+ 1 1
Unk. 5
Total 205 162 141 96 52 60 48 29 63 24 44 16 25 965
The average age of the retirees is 73.0 and the average pension is $998.
poe Retirees by Age 7 250 Retirees by Pension Amount
200
200
175
150
J g 10
B 125 =
3 2
= 100 4 100
4
50
50 4
25}
0
° Ih AP FF oF PoP? a? oh? gH
o > s wees sg PPS el

Pension Amount



Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 .

6.2 Summary of Plan Provisions

Participation Immediate

Credited Service Effective Definition
March 31, 2010 and prior —_ 1,000 hours equals one year

April 1, 2010 and after 1/12" ofa year for each month or part thereof
for which a contribution is obligated to be

made
Vesting Credit 1,000 hours equals one year
Break Year A year with less than 501 hours worked
Suspension of Benefits A member's benefit is suspended while working over the Hour Threshold

while in Prohibited Employment.

Prohibited Work in an industry covered by the Plan in the same geographical area cov-
Employment ered by the Plan
Hours Threshold 40 hours per month, except as follows:

Credited Hours
Age Service Threshold
50 25 years 70
65 = 15 years 70

Normal Retirement Pension

Age requirement: 65
Service requirement: Five years of Credited Service, or the fifth anniversary of participation
Amount: Monthly Benefit per year of Credited Service
(Preferred Schedule) Period YRC Non-YRC
Prior to 4/1/2005 $100 $100
4/1/2005-3/31/2006 $100 $0
4/1/2006-3/31/2010 $50 $50
4/1/2010 and after* 1% of 1% of

contributions contributions
* The monthly accrual for this period is 1/12 of $50 per month of Credited

Service eared until the Participant’s employer switched to the 1% formula.
The accrual will not exceed $50 per month in any case.

19


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 Be a

6.5 Funding Standard Account and Minimum Required Contributions

Rules for determining minimum required and maximum deductible contributions are set forth in IRC Sections
431 and 404, respectively. Since deductibility may be affected by factors not considered here, the deductibility
and timing of contributions should be reviewed with tax counsel.

Actual Projected
For Plan Year ending March 31: 2015 2016
Charges to the FSA:
a. Funding Deficiency 23,679,708 28,943,893
b. Normal cost 844.767 908.193
c. Amortization charges 6,164,995 8,144,333
d. Interest on a, b andc 2.301.710 2.564.758
e. Total charges $32,991,180 $ 40,561,177
Credits to FSA:
f. Credit Balance at beginning of year $0 $0
g. Employer contributions 1,770,559 1,777,517
h. Amortization credits 2,056,123 2,072,902
i. Interest on above 220.605 194.264
j. Total credits $ 4,047,287 $ 4,044,683
Credit Balance at end of year $(28,943,893)  $(36,516.494)
Minimum Required Contribution (e - (f+ h) x (1.0675)) $ 30,780,848 $38,348,354
Minimum Without Regard to the Credit Balance $30,780,848 $38,348,354

(e- hx (1.0675))

A Plan’s Credit Balance represents a cumulative measure of all prior contributions (since the initial ERISA
effective date) against all prior minimum requirements. If cumulative contributions exceed cumulative mini-
mums, then the Plan will maintain a Credit Balance which can be used to offset any current year minimum
requirements. As of 3/31/2015, the Plan has a Funding Deficiency of $(28.943.893). The minimum require-
ment for the year ending 3/31/2016 is $38,348.354.

6.6 Maximum Deductible Contribution

A. Traditional Maximum Deductible $13,175,752
B. 140% of Projected RPA Current Liability, less Projected Actuarial Value of Assets 246,184,995
C. Minimum Required Contribution 38,348,354
D. Greatest of A. B, and C $246,184.995

The maximum allowable deduction for the fiscal year ending 3/31/2016 is $246.184.995. To be deductible for
a given fiscal year, a contribution should be made by the time the tax return for that fiscal year is filed with the
IRS (including extensions). Specific advice on the deductibility of contributions and timing should be re-
viewed with your tax counsel.

25


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 ry
20-Year Service Pension
Rehabilitation Plan: Preferred Schedule
The following was eliminated for all Participants except those with at least 20 years of Credited Service
earned through April 1, 2009.

Age requirement None

Service requirement 20 years of Credited Service, with at least 20 years of Credited Service earned
through April 1, 2009

Must have worked on or after January 1, 1999
Amount $1.250 per month

Rehabilitation Plan: Default Schedule
Removed from Plan for all Participants not in pay status

Disability Retirement Pension

Rehabilitation Plan: Preferred Schedule

Age requirement 55
Service requirement 15 years of Credited Service
Amount Normal Retirement Pension

Rehabilitation Plan: Default Schedule
Removed from Plan for all Participants not in pay status

Vested Pension

Age requirement: None
Service requirement: 5 years
Amount: For Participants who did not work prior to January 1, 1999:

The Early Retirement Pension or Normal Retirement Pension as appropriate

For Participants with less than 15 years of Credited Service who worked prior
to January 1, 1999, the greater of their actuarially reduced Early Retirement
Pension, or the minimum Early Retirement Pension table above, multiplied

by a fraction:
e The numerator of the fraction is the Participant's years of Credited
Service

¢ The denominator of the fraction is 30

Pre-retirement death

Married
Age requirement: None
Service requirement: 5 years

21


ted Vesteds

Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

Po-suttiven

7.8 Distribution of Separated/Vested Participant Accrued Monthly Pensions

$0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250
249 499 -749 -999  -1,.249 -1.499 -1,749 -1.999 -2.249 -2.499 2.500+

<25 1

25.29 3 2

3034 10 13 6 2

35-39 5 23 18 7 I 3

40-44 34«a‘Ds 1D 6

45-49 7 30 19 16 2 8

50-54 32 17 20 33 14 3 10 i

55-59 20 33 18 12 5 13 1

60-64 26 22 9 10 5 4 1 2

6569 7 8 3 1 1

70-74 13 1 2 1

75+

Total 132 186 113 95 29 8 1 0 42 1 1

The average age of the separated vested is 51.1 and the average accrued benefit is $622.

Total

=>
5
31
57
79
82
130
103
79
20
21

608

Terminated Vesteds by Accrued Benefit Terminated Vesteds by Age
200 140
180
120
160
140 100
120 3
3 sf
100
3
0 2 wo
60 &
40 4
40
20 20 4
i)
a SX AP PP a PF OP oD oF 0+
FP MP FS oS os
CR a a SS v 2 oo S S) a ae
eo SLES LS BoP ih BP GM GP al ai aS
Accrued Benefit Age



Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

5. ASC No. 960 Disclosures

5.1 Present Value of Accumulated Plan Benefits

As of March 31, 2015

A. Present Value of Vested Benefits:
1. Participants currently receiving payments
2. Other vested benefits
3. Subtotal vested benefits

B. Present Value of Non-Vested Benefits

C. Present Value of Accumulated Benefits (A+B)

Po-suttiven

$ 110,819,307
47.671.719

$ 158,491,026
421.413

$ 158,912.439

The ASC No. 960 values were computed using the same assumptions as those used for determining funding

requirements.

5.2 Reconciliation of Changes in Present Value of Accumulated Benefits

A. Present Value of Accumulated Benefits at Prior Valuation Date

B. Changes During the Year Due to:

. Benefits accumulated and net gains
. Benefits paid

. Assumption changes

. Method changes

. Plan amendments

. Passage of time

NYNADWwW wn eE

. Total change

C. Present Value of Accumulated Benefits at Current Valuation Date

16

$ 138,296,016

923,184
(11,666,983)
21,425,533
0

0

9.934.689

$ 20,616,423

$ 158,912,439


Teamsters Local 805 Pension Plan iz O'Sullivan
Actuarial Valuation as of 3/31/2015 a

4.2.4 Total Gain/Loss

A. Unfunded accrued liability (UAL) at 3/31/2014 $ 65,134,537
B. Annual cost of benefits and expenses at 3/31/2014 844.767
C. Less contributions (1,770,559)
D. Interest on A, B, and C 4.882.052
E. Expected unfunded accrued liability as of 3/31/2015 (A+B+C+D) $ 69.090.797
F. Preliminary UAL before changes as of 3/31/2015 68.643.111
G. Total gain/(loss), (E-F) $ 447.686
H. Change due to:
1. Assumption changes $ 21,425,533
2. Plan amendments 0
3. Method changes ct)
4. Subtotal changes $ 21,425,533
I. Actual unfunded (surplus) accrued liability as of 3/31/2015 (F+H4) $ 90,068,644

J. Gain/(loss) due to:

1. Asset experience $ 771.764
2. Expenses (118,898)
3. Demographic experience (205,180
4. Total gain/(loss) $ 447.686


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

7.4 Historical Participation

Po sunivan

a

As of Separated
March 31 Active Vested Retired Total

2007 650 460 970 2.080
2008 647 456 977 2.080
2009 638 482 960 2,080
2010 583 508 963 2,054
2011 569 514 952 2.035
2012 597 521 964 2,082
2013 569 536 966 2,071
2014 588 544 960 2.092
2015 492 608 965 2.065

1800

Historical Participant Counts
as of March 31

1600

|

1400

1200

1000

800

600 DO —— rr

400
200
0 T
\ ‘oI
\) \)
ss

——Total Active

T T r T r T T

SO SL
i a a ee SS

—+—Total Inactive

NG

31


Actives

Teamsters Local 805 Pension Plan _| O'Sullivan
Actuarial Valuation as of 3/31/2015 Ba

7. Data Summary

7.1 Actives by Age and Credited Service

Over
O-l 1:4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40 Total
20-24 15 18 1 34
25-29 15 22 6 43
30-34 8 17 14 7 46
35-39 8 8 10 3 8 37
40-44 7 17 15 6 17 62
45-49 14 #14 = 12 14 12 10 2 78
50-54 6 ll 13 10 18 9 4 2 1 74
55-59 2 13 4 10 13 13 5 5 65
60-64 5 6 3 13 3 4 2 2 38
65-69 2 3 2 2 1 2 2 14
Over 70 1
Unknown 0
Total 75 125 = 83 56 84 37 16 ll 3 2 492
The average age of the actives is 45.0 and the average pension service is 9.9 years.
Actives by Pension Credits Actives by Age
140 100
120
80
100
80 5 a
oF }——_— all | 04
” 72. =
20
20 - i ——
0 Oo)
y 2 s & s e s we € os al i)
= Pension Credits

28



Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

4. Plan Cost

4.1 Contributions, Cost and Margin

A.

E.

B.
G.

As of

1. Actuarial liability

. Actuarial value of assets

. Unfunded actuarial liability (1-2)

. Normal cost

. Expenses

. Total cost of benefits (4+5)

. Amortization of unfunded liability

NAW WN

Anticipated Contribution Income*

1. Projected months
2. Projected contribution rate
3. Anticipated annual contribution (1x2)

Actuarial Costs*

1. Cost of benefits earned in the year
2. Amortization of unfunded liability
3. Total annual costs (1+2)

. Margin (B4-C3)

Market value of assets
Spread Statistic
Margin using assets at market

Po-suttiven

3/31/2015
$ 158,912,439
68.843.795
$ 90.068.644
468,193
440.000
$ 908.193
$ 9,118,009
4,904 Asa % of
$ 301.07 S$/Month Contributions
$1,777,517 $ 301.07 100.0%
$ 940.735 $ 159.34 52.9%
9.444.724 1,599.72 531.3%
$ 10,385,459 $ 1,759.05 584.2%
$(8.607.942)  $(1.457.98) 484.2%
$ 62,149,280
-10.8%
$(9,309.938)  $(1.576.89) -523.8%

There are two component costs to funding a pension plan: the cost of benefits earned in the year and the
amortization of the unfunded liability. The costs above are calculated consistent with a funding policy of
paying off the unfunded liability over 15 years assuming asset returns of 6.75% annually. The margin, found
on Line D above, indicates that the Plan needs an average additional amount of $1,457.98 per month (off the
accrual rate) to pay for all future benefits.

There are many actuarial measures and statistics to measure the state of the Plan’s funding. The margin is
designed to provide a single simplified statistic for a Trustee to get a sense for whether the Plan is keeping up
with its costs. As long as the margin is positive, it is a strong indication that the current benefits are affordable
on a long-term basis. If negative, it is an indication that the overall funding may need to be improved before
benefits are affordable.

* Assumes contributions and costs are paid at the end of the month.


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

3. Summary of Funding Measures

1. Current

Assets

a at Market

b at Actuarial

¢ Actuarial / Market (b/a)

Present Values
d Vested Benefits
e Accrued Benefits (Accrued Liability)

Funding Percentages
f Vested at market (a/d)

g Vested at actuarial (b/d)
h Accrued at market (a/e)
i Accrued at actuarial (b/e)

2. Prospective

Contributions

a Minimum Required
b Anticipated

¢ Actual

d Maximum Deductible

°

Credit Balance
f Minimum to preserve Credit Balance
* projected
Costs

g Cost of benefits earned in year
h Amortization of Unfunded Liability

i Total Cost (g+h)
j Margin (b-i)

3. Assumptions

a Interest rate per annum
b Total Months

Po-suttiven

As of March 31
2015 2014

$ 62,149,280 $ 66,933,598
$ 68,843,795 $ 73,161,479
110.8% 109.3%

$  158.491,026 $ 137,766,440

$  158.912,439 $ 138,296,016
39.2% 48.6%

43.4% 53.1%

39.1% 48.4%

43.3% 52.9%

For Plan Year Ending March 31
2016 2015

$ 38,348,354 $ 30,780,848
$ 1,777,517 $ 2.089.917
thd $ 1,616,634

$ 246,184,995 $  232,847.979
$ (36,516,494) * $  (28.943.893)
$ 9125472 * $ 6.862.011
$ 940.735 $ 878.326
$ 9.444.724 $ 7.136.788
$ 10,385,459 $ 8.015.114
$  (8607.942) $ (5,925,197)
6.75% 7.50%

5,904 7.056


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 . a

6. Government Reporting

6.1 Summary of Assumptions

These are the assumptions used for the ongoing valuation calculations. unless otherwise noted.

Interest Rate
Mortality
Healthy
Disabled

Termination

Retirement Age

Employment
Percent Married
Age of Spouse
Expenses

Value of Assets

Funding Method

Interest Rate for
Withdrawal Lia-
bility:

RPA °94 Cur-
rent

Liability As-
sumptions

6.75% per annum
RP-2014 healthy mortality with blue collar adjustment. separate for male and female
participants, adjusted with mortality improvement Scale MP-2014 from 2015.

RP-2014 disabled mortality, separate for male and female participants. adjusted with
mortality improvement Scale MP-2014 from 2015.

Sarason T -8 Table

Participants with 20 years of Service Credit as of April -1, 2009 are assumed to retire
3.25 years following 25 years of Service Credit for those credits accrued through March
31, 2005. The remaining credits accrued after April 1, 2005 are assumed to be payable
at age 55.

Participants with fewer than 20 years of Service Credit as of April 1. 2009 are assumed
to retire upon age 65 and 5 Years of Participation.

5.904 total months annually

80%

Females are 3 years younger than their spouses.

$440,000 payable at the beginning of the year

Average Fair Market Value (without-phase-in). Averaging period is 3 years.

Adjusted under the Pension Relief Act of 2010 for a 10-year recognition of the 2008/2009
Plan Year loss.

Unit Credit

6.75% per annum

Interest: 3.40%: Last year 3.62% was used
Mortality: RP-2000 per IRC §1.430(h)(3)-1

17


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

4.2.3

A.

B.

moa

TM

PAS oO

Actuarial Asset Gain/(Loss)
Actuarial assets at 3/31/2014

Investment income:
1. Expected income (net of investment expenses)

Development of amount recognized

Po rsuttivan

$ 73,161.479

$ 4,646,363

Year Ending Unexpected Percentage Recognized

March 31 Amount Recognized Amount

2009 $(30,094.302) 10% $ (3,009,430)

2013 6,515,716 33% 2.171.905

2014 5.456.954 33% 1,818,985

2015 772,221 33% 257,395
2. Total recognized amount $ 1,238,855
3. Forced recognition (due to +/-20% corridor) $0
4. Total investment income (1+2+3) $5,885,218
Employer contributions $1,770,559
Withdrawal Liability Payments 0
Recognition of DC Fund 238.708
Distributions:

1. Benefit payments
2. Administrative expenses
3

. Total distributions
Actuarial value as of 3/31/2015

Average actuarial value (A+E+.5 x (C+D+F3))
Rate of return (B4+H)

Assumed rate of return

Expected income (H x J)

Asset gain/(loss) (B4-K)

$(11,666.983)

545.186)
$(12,212,169)

$ 68,843,795

$ 68,179,382
8.6%

7.5%
5,113,454
771,764


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 Ma a

6.3 Recent Plan Changes

Effective
2/24/2009
(RP)

3/31/2005

Plan Change
Preferred Plan
e The accrual rate was reduced to 1% of annual employer contributions.

e The 20-Year Service Pension and 25-Year Service Pension was removed for
Participants who did not have 20 years of Credited Service as of April 1, 2009.

Default Plan
e The accrual rate was reduced to 1% of annual employer contributions.

e The 20-Year Service Pension and 25-Year Service Pension was removed for
all Participants.

e The Disability Retirement Pension was removed for all Participants not in pay
status.

Effective March 31, 2005, all benefits accrued under the Plan were frozen and no addi-
tional benefits would accrue for all active participants except those employed by Yel-
low Freight. However, an arbitrator's decision awarded the frozen participants a $50
per month accrual for the period April 1, 2006 to March 31, 2007 and the Trustees
approved a $50 per month accrual for the period April 1, 2007 to March 31, 2009.

23


Teamsters Local 805 Pension Plan

Actuarial Valuation
3/31/2015

1236 Brace Road. Unit E
Cherry Hill, NJ 08034
(856) 795-7777

February 2016

Z:\065 805\p\Val\2015\Linked Report 805 15.docx

O'Sullivan


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

4.3.2 Asset Information

Po :suntivan

om

Market Withdrawal Market ROR ROR

As of Value Liability Investment At At
3/31 of Assets  Contributions* Payments Benefits Expenses Income Market Actuarial
2012 $71,300,012 $ 1,333,334 $-  $(11,224.000) $(389.562) $3,964,581 5.4% 8.2%
2013 67.919.811 1,616,634 < (1.428.240) (385,567) 6.816.972 10.0% 4.6%
2014 66,933,598 1,784,266 20.000 (11,534,520) (410,313) 9,154,354 14.4% 8.2%
2015 $62,149,280 1,770,559 =  11.666.983) (545.186) —_5.657.292 8.7% 86%
Totals $7,741,531 $20,000 $(56,686.133) $(2.163.067) $25.593.199

4-year average —-92.6% 7A%

The average return on the market value of assets for the 4 years ending March 31, 2015 was 9.6%. We have
changed the interest rate assumption in this valuation from 7.50% to 6.75%.

The performance of the actuarial value of assets as measured by the rate of return smooths out the market value
performance. As seen in the table above, the market value return in Plan Year ended 3/31/2015 was 8.7%. The
actuarial rate of return was 8.6%.

Historical Rates of Return
by Plan Year ending March 31

@

“7

—e—At Market —e—At Actuarial —— Assumed

10


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015

4.3 Historical Information

4.3.1 Gain/(Loss)

Plan
Year

Ending Demographic Total
3/31 Assets Expense Assumptions Gain/(Loss)
2012 $557,831 $56,563 $(2,493,973) $(1,879,579)
2013 (2,264,932) 19,058 (970,540) (3,216,414)
2014 477,351 (8.979) (1,034,657) (566,285)
2015 $771,764 $(118.898) $(205,180) $447,686
4-year

Average $(114,497) $(13.064)  $(1,176,088) $(1,303,648)

Gain/loss analysis is one of the most important tools available to an actuary to ensure that the actuary’s model
of the Plan’s funding is accurate. The exhibit above shows the total gain/(loss) broken down into two compo-
nents: assets and demographic assumptions.

The gain/(loss) on assets is very unpredictable due to the unpredictable returns on the market value of assets.
Moreover, the gain/(loss) on assets is greatly influenced by the smoothing method. The pattern of asset gains
is discussed later in this report.

After itemizing the gain/(loss) on assets and administrative expenses, what remains is the gain/(loss) on all the
other demographic assumptions including retirement, turnover, disability, and mortality. Over time, to remain
confident in the future funding, it is important that the gains and losses on the demographic assumptions aver-
age zero, or at least a relatively small number.

For the last four years the Plan has averaged a loss on demographic assumptions. We have updated the mor-
tality assumption this year.


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 .

7.3 Flow of Lives

Inactive Retired &

Actives Vested Disabled Beneficiaries Total
Beginning of year 588 544 13 947 2,092
To Inactive Vested -93 93
Terminated Non-Vested ~55 -55
To Retired -16 -18 34
To Disabled
New Alternate Payee 2 2
Deaths 9 ~43 -52
Returned to work Z -2
New entrants 66 66
New Beneficiaries
Data adjustments 4 4
End of year 492 608 13 952 2,065

30


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 Te

7.2 Distribution of Months Worked

Months Count

1 3

5

3 9

4 10

5 19

6 17

7 9

8 16

9 6

10 9

11 13

12 376

Total 492

Actives by Months Worked
400
350
300
2 250
2
2 200
150
100
50
of
1 2 3 4 5 6 7 8 9 10 ll 12
Weeks Worked

29


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

4.2 Development of Plan Asset Values

mmonw

4.2.1 Market Value of Assets

A.

Saw

G.

H.

Assets at 3/31/2014

Employer contributions
Withdrawal Liability payments received
Recognition of Annuity obligation*

Investment income:

1. Interest and dividends

2. Realized/unrealized gain/(loss)
3. Investment fees

4. Total investment income

Distributions:

1. Benefit payments

2. Administrative expenses
3. Total distributions

Market value as of 3/31/2015

Average invested assets
(A+D+.5 x (B+C+F3))

H. Rate of return, E4+H

* Previous valuations netted this amount out of assets

4.2.2. Actuarial Value of Assets

. Market value as of 3/31/2015

Development of amount deferred

Po-suttiven

Total Fund

$ 66.933.598

$ 1,770,559
$0
$ 238.708

$ 2,535,411
3,152,457

(269,284
$ 5,418,584

$(11.666.983)

545.186
$(12.212.169)

Year Ending Unexpected —_— Percentage
March 31 Amount Deferred
1. 2009 $(30,094,302) 30%
2. 2014 5,456,954

3. 2015 772,221 67%

. Total deferred amount

Preliminary actuarial value of assets (A-B)

. 80% of market value

120% of market value

Actuarial value as of 3/31/2015 (C not less than D or greater than E)

$ 62,149,280
$ 61,951.501
8.7%
$ 62.149.280
Deferred
Amount
$(9,028,290)
1,818,985
514.790
$ (6,694,515)
68.843.795
49,719,424
74,579,136
$ 68.843,795


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 Ba

Minimum for Participants who worked prior to January 1, 1999 who earn 15
or more years of Service Credit:

YRC Non-YRC
$2,500 $2,100

Early Retirement Pension

Age requirement 55
Service requirement 15 years of Credited Service
Amount Normal Retirement actuarially reduced, with a minimum as below.

Minimum for Participants who worked prior to January 1, 1999.

YRC _Non-YRC

55. $800 $672
56 877 737
57 991 833
58 1,109 931
59 1,247 1,048
60 = 1,380 1,159
61 = 1,559 1,309
62 1,751 1,471
631,950 1,638
64 2,200 1,848

65 $2,500 $2,100
25-Year Service Retirement Pension
Rehabilitation Plan: Preferred Schedule

The following was eliminated for all Participants except those with at least 20 years of Credited Service
earned through April 1, 2009.

Age requirement None
Service requirement 25 years of Credited Service
Must have worked on or after January 1, 1999
Amount: Age Monthly Benefit
Less than 55 Benefit eamed prior to 4/1/2005 unreduced

55 and older Entire benefit unreduced

The benefit payable is based on the Participant’s age on the date the payment
is made, not the age of retirement.

Rehabilitation Plan: Default Schedule
Removed from Plan for all Participants not in pay status

20


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015 Ba a

6.7 Current Liability at Beginning of Plan Year
Current liability is the present value of accrued benefits under the Plan using actuarial assumptions as pre-
scribed by the Retirement Protection Act of 1994 (RPA ‘94). The liability is determined using the same as-

sumptions used to determine the Plan’s funding requirements, except for the interest rate and mortality table.
These values are used for specific, prescribed purposes.

RPA ‘94 Current Liability:

A. Assumptions:

1. Interest rate 3.40%
2. Mortality table per IRC §1.430(h)(3)-1
B. RPA °94 Current Liability Vested Benefits Total Benefits
1. Retirees and beneficiaries receiving payments $140.220,421 $140.220.421
2. Inactive vested participants 39.562.535 39,562,535
3. Actives 42.528.170 43,431,120
4. Total $ 222,311,126 $ 223,214,076
C. Expected Increase in Liability $951,004
D. Expected Benefits To Be Paid During the Year $ 11.958.658

26


Teamsters Local 805 Pension Plan zi o'sull

ivan
Actuarial Valuation as of 3/31/2015 a

*** This Page Has Been Left Intentionally Blank ***


Teamsters Local 805 Pension Plan

Actuarial Valuation as of 3/31/2015

O'Sullivan

4.3.5 Actuarial Value of Assets Expressed as a % of Market Value

Plan
‘Years
Ending
Mar. 31
2011
2012
2013
2014
2015

Actuarial
Value

of Assets

$87,486,251

83,943.698
77,394,976
73,161.479

$68,843,807

Actuarial
Assets as a
Percent
of Market
112.7%

117.7
114.0
109.3
110.8%

Spread Statistic
as of March 31

The three primary measures that help an actuary assess how well funded a plan is on a long-term basis are:

Margin,

1.
2. Gain/loss analysis and an assessment of assumptions, and
3. Spread, defined as the difference between the market and actuarial value of assets expressed as a per-

centage of the market value of assets.

The margin and assumptions were covered in earlier sections.

The third factor is the Spread statistic. When positive it represents a cushion to help offset potential future
unfavorable investment experience. Conversely, when the actuarial value is greater than the market value the
Spread turns negative. When this is the case future investment retums over and above the assumed return are

necessary over time to restore the market value of assets equal to the actuarial value.

Currently the Spread is -10.8%.

13



Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

Po-suttiven

Contribution Rate Increases

> The following contribution rates are required:

Plan Year
Beginning
4/1
2014
2015
2016
2017

Monthly
Employer
Contribution
$291.61
297.44

303.39
$309.46

For Plan Years beginning on and after 4/1/2018. additional contribution increases of 3% each year are

required.

The charts below show the Plan’s projected funded percentage and credit balance as of the 3/31/2015 snapshot
date. These charts assume that there are no gains or losses on demographic assumptions and that the market

value of assets returns the assumed rate of 6.75%.

100%

80%

60%

40%

20%

0%

Funded Percentage (PPA) as of March 31

Projected Credit Balance as of March 31

$50

3
= so
= mohKD2=ao 4
sssssess
savy gggs
-$50
-$100
-$150
+—+ $200
BSS SEA E ERE EEE EPEEEE ER ERE EES
FAIAIAIIAIN III IIIS ASAI ANIA III “5250

Explanation of Why Plan is not Expected to Emerge from Critical Status

The severe economic downturn of 2008 has created a tremendous funding burden related to the investment
loss and reduction in employment (future contributions). As a result, the plan sponsor determined that, based
on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the plan cannot reason-
ably be expected to emerge from critical status by the end of the rehabilitation period.

Next the Trustees considered reasonable measures to emerge from critical status at a later time. The Trustees
believed that such required contribution increases would cause employers to withdraw from the Plan leading
to insolvency, financial assistance from the PBGC, and benefit cuts.

Based upon the above, the Trustees have selected the schedule of benefits described above as permitted by

IRC §432(e)(3)(A)(ii), also known as a “reasonable measures” schedule, which is intended to forestall insol-

vency.

15



Teamsters Local 805 Pension Plan _| O’Sullivan
Actuarial Valuation as of 3/31/2015

1. Certification of Results

This report was prepared on behalf of the Teamsters Local 805 Pension Plan based on employee data, asset
statements and Plan documents provided by the Plan Sponsor or its representatives. We relied upon the data
as submitted, without formal audit. However, the data was tested for reasonableness, and we have no reason
to believe that any other information which would have had a material effect on the results of this valuation
was overlooked.

Therefore, to the best of our knowledge and belief, the information presented in this report is complete and
accurate, and in our opinion, each assumption used represents our best estimate of anticipated experience under
the Plan.

Certified by:
Redacted by the U.S. Department of the Treasury

4,
Enrolled Actuary No.: |RGpeteeeind
the U.S.


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

6.4 Contribution Rates by Employer

Employer

Tobacco
Panasonic & IBT 805
Harold Levinson Associates

Total

Po-suttiven

Plan Year ending 3/31/2016
(a) () ©
Expected
Annual
Monthly Conts.
Count Cont. Rate (a) x (b)
49 $297.44 $174,895
34 $350.00 142.800
409 $297.44 1.459.836
492 $1.777.530

Average expected monthly contribution rate (a) / (c) / 12: $301.07

24


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015

Table of Contents

1. Certification of Results.
2. Valuation Summary ...
3. Summary of Funding Measures
4. Plan Cost .........ccccceeeseeseeeseeseeee
4.1 Contributions, Cost and Margin ..
4.2 Development of Plan Asset Values.
4.2.1 Market Value of Assets ..
4.2.2 Actuarial Value of Assets
4.2.3. Actuarial Asset Gain/(Loss)
4.2.4 Total Gain/Loss
4.3 Historical Information ...
4.3.1 Gain/(Loss) .
4.3.2 Asset Information .
4.3.3. Employment
4.3.4 Funded Percentage
4.3.5 Actuarial Value of Assets Expressed as a % of Market Value
4.4 Pension Protection Act
5. ASC NO. 960 Disclosures
1 Present Value of Accumulated Plan Benefits
5.2 Reconciliation of Changes in Present Value of Accumulated Benefits
6. Government Reporting...
6.1 Summary of Assumptions .
6.2 Summary of Plan Provisions.
6.3. Recent Plan Changes
6.4 Contribution Rates by Employer.
6.5 Funding Standard Account and Minimum Required Contributions .
6.6 Maximum Deductible Contribution
6.7 Current Liability at Beginning of Plan Year
6.8 Amortization Schedule for Minimum Required Contribution
6.9 Equation of Balance
7. Data Summary
7.1 Actives by Age and Credited Service
7.2 Distribution of Months Worked
7.3. Flow of Lives
7.4 Historical Participation
7.5 New Pensioners
7.6 All Pensioners...
7.7 Distribution of Monthly Pensions......
7.8 Distribution of Separated/Vested Participant Accrued Monthly Pensions .

COBNDDOOMEYWS



Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

7.5 New Pensioners

Possuttiven

Monthly Pension

Average
Class Count Age Min Average Max
Disabled
Normal 16 67.5 $186 $1,064 $3,915
Early 22 593 204 1,086 2.535
Total 38 62.8 $186 $1,077 $3,915
Monthly Pension
Average
Class Count Age Min Average Max
Saeiihe 8 66.1 $212 $614 $1,689
Altemate Payee 2 332 155 503 850
Total 10 63.9 $155 $592 $1,689
7.6 All Pensioners
Monthly Pension
Average

Class = Count
Disabled 13
Normal 168

Early 620
Subtotal 801

Age Min Average Max

63.6 $1,365 $1,945 $3,265

77.0 45 1,260 5,594
71.0 Z 1025 3.800
72.1 $7 $1,089 $5,594

Monthly Pension
Average
Age Min Average Max

Class Count
Survivor 162
Altemate Payee 2
Subtotal 164
Grand Total 965

71.7 $5 $542 $2.601
55.2 155 503-850

m4 GS S41 2.601

73.0 $5 $998 $5,594

32


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

6.8 Amortization Schedule for Minimum Required Contribution

Amortization Charges

Date
Established: Base Type
2005 Combined and offset
2006 Actuarial Loss
2006 Plan Amendment
2007 Actuarial Loss
2007 Plan Amendment
2008 Actuarial Loss
2009 Actuarial Loss
2010 Actuarial Loss
2011 Actuarial Loss
2012 Actuarial Loss
2013 Actuarial Loss
2014 Actuarial Loss
2015 Assumption Change
Total Charges
Amortization Credits
Date
Established: Base Type
2008 Funding Method
2008 Assumption Change
2009 Plan Amendment (RP)
2009 Method Change
2015 Experience Gain
Total Credits

Total

6.9 Equation of Balance

Po-suttiven

A. Net Outstanding Balance of Bases

B. Credit Balance

C. Unfunded Actuarial Accrued Liability (A-B)

Outstanding Years Amortization
Balance Remaining Amount
$22,002,704 11.927 $2,570,895

4,509,931 11 556.406
471,561 26 36.496
2,937,259 12 341,822
293.447 raf 22,394
3,262,992 13 360.568
9,527,999 9 1,355.414
266,094 10 35,081
972,154 ll 119,938
1,647,090 12 191,679
2,960,882 13 327.184
544,604 14 57.464
$21.425.533 15 $2.168.992
$70,822,250 $8,144,333

Outstanding Years Amortization

Balance Remaining Amount

$ (915,688) 3 $ (325.369)
(4,390,959) 8 (682.188)
(484.771) 9 (68.962)
(3.458.395) 4 (951,062)

447.686) 15 $(45.321
$(9.697.499) $(2.072.902)
$61,124,751 $6,071,431

$61,124,751
$(28.943.893)
$90.068,644

27


Teamsters Local 805 Pension Plan
Actuarial Valuation as of 3/31/2015

p |

O'Sullivan

4.3.3, Employment

Weighted
Plan Year Average Estimated
Ending Contribution Contribution Total
3/31 Income Rate Months*
2013 $1,616,634 $257.85 6,270
2014 1.784.266 293.24 6,085
2015 $1,770,559 $296.18 5,978

Total Months
by Plan Year ending March 31

6,200 ——
6.100

6.000

5,900 i Js a

5,800

5,700 : : 1
s s s

Actual Annual Months —t—Months Assumption

The employment assumption included in the valuation is 5,904 total months annually.

* Total months for the valuation are derived by dividing actual contributions by last year’s projected contri-
bution rate, and will not necessarily match reported months by the Plan Office.

11


Teamsters Local 805 Pension Plan | O'Sullivan
Actuarial Valuation as of 3/31/2015

4.4 Pension Protection Act

The Plan continues to be in the Red Zone as of April 1, 2015 because it has a funding deficiency. Moreover,
the Plan is in Critical and Declining Status (a Red Zone category) as of 4/1/2015 due to the following:

The Plan meets the criteria for Critical Status, and
The Plan is projected to become insolvent in the current or next 19 years and
The Plan’s ratio of inactive to active participants is in excess of 2 to 1.

VVV

The following is a history of the Plan’s Zone Status under the Pension Protection Act:

As of 4/1 Zone Status
2008 — 2014 Critical (Red)
2015 Critical and Declining (Red)

The Trustees have implemented a “reasonable measures” Rehabilitation Plan (RP) as per the Pension Protec-
tion Act (PPA) intended to forestall insolvency under IRC §432(e)(3)(A)(ii). The Rehabilitation Plan and im-
portant dates are as follows:

Adoption Period: 4/01/2008 — 3/31/2011
Rehabilitation Period: 4/01/2011 — 3/31/2024

Benefit Changes
(Altemative Schedule II — for non-Yellow Freight)

Effective 4/1/2010, the accrual rate was reduced to 1% of the contributions made on a Participant’s behalf, up
to a maximum of $50 per year of Credited Service. Based on the prevailing collective bargaining agreement.
as shown in the most recent update to the RP, the accrual rates from 4/1/2014 expected to be as follows:

Plan Year Monthly
Beginning Benefit
4 Accrual (1%)

2014 $35.00
2015 35.65
2016 36.40
2017 37.10
2018 $38.25

2019 and beyond *

* 3% increases per year to a maximum accrual of $50 per year of Credited Service

> The 20-Years-and-Out and 25-Years-and-Out benefits were eliminated for participants who did not
have at least 20 years of Credited Service as of 4/1/2009.

14