Response Item# 

YES 1 

YES 2 

YES 3 

YES 4 

YES 5. 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBITOl 

Checklist 

Description of Item 

Does the application include an original signature of the plan sponsor or an authorized representative of 

the plan sponsor? 

Does the application include a description of the proposed benefit suspension - calculated as if no other 

limitations apply- that include: 

• The suspension's effective date ( and its expiration date, if applicable),

• Whether the suspension provides for different treatment of participants and beneficiaries,

• A description of the different categories or groups of individuals affected, and

• How the suspension affects those individuals differently?

Does the application include a penalties-of-pe1jury statement signed by an authorized trustee on behalf 

of the board of trustees? 

Does the application include a statement, signed by an authorized trustee on behalf of the board of 

trustees, acknowledging that the application and the application's supporting material will be publicly 

disclosed on the Treasury Department's website? 

Does the application include the plan actuary's certification of critical and declining status and the 

supporting illustrations, including: 

• The plan-year-by-plan-year projections demonstrating projected insolvency during the relevant

period, and

• Separately identifying the available resources (and the market value of assets and changes in

cash flow) during each of those years?

Pa e 

Application 

(BAC 7:9) 

Application 

(BAC 7:4) 

Exhibit 02 

(BAC 7:19) 

Exhibit 03 

(BAC 7:20) 

Exhibit 04 

(BAC 7:21) 

Exhibit 04A 

(BAC 7:22) 

Exhibit 04B 

(BAC 7:25) 

BAC 7:10
Response Item# 

YES 6 

YES 7 

YES 8 

YES 9 

NIA 10 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

Description of Item 

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

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

suspension takes effect, and the supporting illustrations, including: 

• The plan-year-by-plan-year projections demonstrating projected solvency during the relevant

period,

• Separately identifying the available resources (and the market value of assets and changes in 

cash flow) during each of those years?

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

documentation set forth in section 5 of the revenue procedure? 

Does the application include a demonstration that the limitations on individual suspensions are satisfied, 

including a description of each benefit based on disability, as defined under the plan, that is paid to an 

individual under the plan (without regard to whether the disability benefits are available to newly disabled 

participants) and calculations regarding: 

• The guarantee-based limitation,

• The disability-based limitation,

• The age-based limitation, taking into account the guarantee-based limitation, and 

• If applicable, the age-based limitation taking into account both the guarantee-based limitation

and the disability-based limitation?

Does the application include a demonstration that the proposed suspension is reasonably estimated to 

achieve the level necessary to avoid insolvency for the extended period, including illustrations regarding 

the plan's solvency ratio and available resources? 

Does the application include an illustration that the proposed suspension is reasonably estimated to 

achieve the level necessary to avoid insolvency for the extended period utilizing stochastic projections? 

(This illustration is optional if the plan is not required to appoint a retiree representative under 

 432( e)(9)(B)(v)(I).) 

Page 

Exhibit 05 

(BAC 7:26) 

Exhibit 05A 

(BAC 7:28) 

Exhibit 06 

(BAC 7:29) 

Exhibit 07 

(BAC 7:30) 

Exhibits 

07A-07Q 

(BAC 7:31 -

BAC 7:47) 

Exhibit 08 

(BAC 7:48) 

Exhibit 08A 

(BAC 7:49) 

Application 

(BAC 7:5) 

BAC 7:11
Response Item# 

NIA 11 

YES 12 

YES 13 

YES 14 

NIA 15 

YES 16 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

Description ofltem 

Does the application include a demonstration that the proposed suspension is not projected to materially 

exceed the level necessary to avoid insolvency, including: 

• The plan-year-by-plan-year projections demonstrating projected insolvency during the relevant

period, and 

• A separate identification of the available resources (and the market value of assets and changes

in cash flow) during each of those years?

Does the application include a demonstration that the proposed suspension is equitably distributed, 

including: 

• information on the effect of the suspension on the plan in the aggregate,

• information on the effect of the suspension for different categories or groups,

• a list of the factors taken into account,

• an explanation of why none of the factors listed in§ 432(e)(9)(D)(vi) were taken into account (if

applicable),

• for each factor taken into account that is not one of the factors listed in §432(e)(9)(D)(vi), an 

explanation why the factor is relevant, and

• an explanation of how any difference in treatment among categories or groups of individuals

results from a reasonable aoolication of the relevant factors?

Does the application include a copy of the notices ( excluding personally identifiable information) that 

meet the requirements of §432(e)(9)(F)? 

Does the application include a description of the efforts that are being taken to contact participants, 

beneficiaries in pay status, and alternate payees? 

Does the application describe the steps the plan sponsor has taken to ensure that notices delivered 

electronically are reasonably accessible to the recipients? 

Does the application include a list of each employer who has an obligation to contribute under the plan 

and each employee organization representing participants under the plan? 

Pa2e 

Application 

(BAC 7:5) 

Exhibit 09 

(BAC 7:50) 

Exhibit 10 

(BAC 7:54) 

Exhibit l0A 

(BAC 7:55) 

Application 

(BAC 7:5) 

Application 

(BAC 7:5) 

Exhibit 11 

(BAC 7:87) 

BAC 7:12
Response Item# 

YES 17 

YES 18 

YES 19 

YES 20 

YES 21 

YES 22 

YES 23 

YES 24 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

Description of Item 

Does the application include information on past and current measures taken to avoid insolvency? 

Does the application include information regarding the plan factors described in §432(e)(9)(C)(ii), for 

the past 10 plan years immediately preceding the plan year in which the application is submitted? 

Does the application describe how the plan sponsor took into account - or did not take into account - the 

factors listed in section 5.02 of this revenue procedure in the determination that all reasonable measures 

were taken to avoid insolvency? 

Does the application describe how the plan sponsor took into account - or did not take into account - in 

the determination that all reasonable measures have been taken to avoid insolvency, the impact of: 

• benefit and contribution levels on retaining active pa1ticipants and bargaining groups under the

plan, and

• past and anticipated contribution increases under the plan on employer attrition and retention

levels?

Does the application include a discussion of any other factors the plan sponsor took into account 

including how and why those factors were taken into account? 

Does the application include a copy of the proposed ballot, excluding the information regarding the 

statement in opposition, the individualized estimate, and the voting procedures? 

Does the application indicate whether the plan sponsor is requesting approval from PBGC of a proposed 

partition under section 4233 of ERISA? 

If the answer to item 23 is yes, does the application specify the effective date of the proposed partition 

and include a plan-year-by-plan-year projection of the amount of the reduction in benefit payments 

attributable to the partition? 

Page 

Exhibit 12 

(BAC 7:88) 

Exhibit 13 

(BAC 7:89) 

Exhibit 14 

(SAC 7:93) 

Exhibit 15 

(BAC 7:96) 

Application 

(BAC 7:6) 

Exhibit 16 

(BAC 7:98) 

Application 

(BAC 7:6) 

Application 

(BAC 7:6) 

Exhibit 17 

(BAC 7:101) 

BAC 7:13
Response Item# 

YES 25 

YES 26 

YES 27 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Description ofltem 

Does the application include: 

• a description of each of the assumptions used in the projections required under sections 3.01,

3.02, 4.02(1), 4.02(2), and 4.03 of this revenue procedure,

• supporting evidence for the selection of those assumptions, and 

• an explanation of any differences among the assumptions used for various purposes?

Does the application describe the plan's experience with ce1tain critical assumptions, including a 

disclosure for each of the 10 plan years immediately preceding the application that separately identifies: 

• the total contributions,

• the total contribution base units,

• the average contribution rates,

• the withdrawal liability payments, and

• the rate of return on olan assets?

Does the application include deterministic projections of the sensitivity of the plan's solvency ratio 

through the extended period by taking into account the more conservative assumptions of investment 

experience and future contribution base units than assumed elsewhere in the application? 

Pa!!e 

Exhibit 18 

(BAC 7:103) 

Exhibit 18A 

(BAC 7:104) 

Exhibit 18B 

(BAC 7:115) 

Exhibit 18C 

(BAC 7:116) 

Exhibit 19 

(BAC 7:130) 

Exhibit 20 

(BAC 7:131) 

Exhibit 20A 

(BAC 7:132) 

Exhibit 20B 

(BAC 7:133) 

Exhibit 20C 

(BAC 7:134) 

Exhibit 20D 

(BAC 7:135) 

BAC 7:14
Response Item# 

YES 28 

YES 29 

NIA 30 

YES 31 

YES 32 

YES 33 

NIA 34 

YES 35 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

Description of Item 

Does the plan include deterministic projections for each year in the extended period of: 

• the value of plan assets,

• the plan's accrued liability, and

• the plan's funded percentage?

Does the application include the plan sponsor's representation that, if it receives the Treasury 

Department's final authorization to suspend and then chooses to implement the suspension, it will also 

amend the plan: 

• to provide that the suspension will cease upon the plan sponsor's failure to maintain a written

record of its annual deterrn ination that (i) all reasonable measures continue to be taken to avoid

insolvency and (ii) the plan would not be projected to avoid insolvency without a suspension,

• to require that any future benefit improvements must satisfy §432(e)(9)(E), and

• to specify that the plan sponsor will not modify these amendments, notwithstanding any other

provision of the olan document?

Does the application indicate whether the plan is a plan described in §432( e)(9)(D)(vii) and, if it is, how 

that is reflected in the proposed benefit suspension? 

Does the application include a narrative statement of the reasons the plan is in critical and declining 

status? 

Does the application include the required plan sponsor identification and contact information? 

Does the application include the required plan identification information? 

Does the application include the required retiree representative information (if applicable)? 

Does the application include the required enrolled actuary information? 

Page 

Exhibit 21 

(BAC 7:136) 

Exhibit 21A 

(BAC 7:137) 

Exhibit 22 

(BAC 7:139) 

Application 

(BAC 7:7) 

Exhibit 23 

(BAC 7:140) 

Exhibit 24 

(BAC 7:146) 

Exhibit 25 

(BAC 7:147) 

Application 

(BAC 7:7) 

Exhibit 26 

(BAC 7:148) 

BAC 7:15
Resoonse Item# 

YES 36 

YES 37 

YES 38 

YES 39 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

Descriotion ofltem 

Does the application include a designation of power of attorney for each authorized representative who 

will represent the plan sponsor in connection with the application? 

Does the application include: 

• the required plan documents

• any recent amendments

• the summary plan description (SPD)

• any summary of material modifications, and 

• the most recent determination letter?

Does the application include the required excerpts from the relevant collective bargaining agreements 

and side agreements? 

Does the application include the required excerpts f

rom the most recently filed Fonn 5500? 

Pa!!e 

Exhibit 27 

(BAC 7:149) 

Exhibit 28 

(BAC 7:152) 

Exhibit 28A 

(BAC 7:153) 

Exhibit 28B 

(BAC 7:225) 

Exhibit 28C 

(BAC 7:257) 

Exhibit 28D 

(BAC 7:300) 

Exhibit 29 

(BAC 7:303) 

Exhibit29A 

(BAC 7:304) 

Exhibit 30 

(BAC 7:309) 

Exhibit 30A 

(BAC 7:310) 

BAC 7:16
Response Item# 

YES 40 

YES 41 

YES 42 

NIA 43 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

Descriotion of Item 

Does the application include the most recently updated rehabilitation plan? 

Does the application include the two most recent actuarial valuation reports? 

Does the application include this checklist, completed and placed on top of the application? 

If the application is being submitted for resubmission review, does the application include: 

• cross-references to info1mation in the prior application with respect to information that has not

changed from the prior application,

• a statement that the application is being submitted for resubmission review, and

• the date on which the Treasury Department indicated that the application is a candidate for

resubmission review?

Paize 

Exhibit 31 

(BAC 7:401) 

Exhibit 31A 

(BAC 7:402) 

Exhibit 32 

(BAC 7:405) 

Exhibit 32A 

(BAC 7:406) 

Exhibit 32B 

(BAC 7:475) 

Exhibit 1 

(BAC 7:10) 

Application 

(BAC 7:8) 

BAC 7:17
APPLICATION FOR APPROVAL OF BENEHT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

I am an authorized trustee who is a member of the Board of Trustees. 

Print Name 

C [Z,Of/R.._ 

Date I I

BAC 7:18
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

EXHIBIT02 

Penalties of Perjury Statement 

Under penalties of perjury, I declare that I have examined this application, including the 

accompanying documents, and, to the best of my knowledge and belief, the request contains all 

the relevant facts relating to the request, and such facts are true, correct, and complete. 

Signature 

Print Name 

Title 

Date 

BAC 7:19
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT03 

Treasury Website Acknowledgement 

I am a trustee authorized to sign by the Board of Trustees. I acknowledge that, pursuant to 

§432(e)(9)(G)(ii), the application for approval of the proposed suspension of benefits, and the

application's supporting material, will be publicly disclosed through publication on the Treasury

Department website.

Signature 

Print Name 

Title 

BAC 7:20
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 04 

Actuary’s Certification of Critical and Declining Status 

The Actuary’s certification of critical and declining status is attached as Exhibit 04A (BAC 7:22). 

Supporting illustration is attached as Exhibit 04B (BAC 7:25). 

BAC 7:21
11590 North Meridian Street, Suite 610  Carmel, Indiana 46032-4529  (317) 580-8670  Fax (317) 580-8651

July 29, 2019 

Board of Trustees

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan 

Austintown, OH 

Re: 2019 Actuarial Certification under the Pension Protection Act

Dear Trustees:

The following information is intended to comply with the annual certification requirements of IRC 

section 432, with respect to the funded status of the Bricklayers and Allied Craftsman Local No. 

7 Pension Plan. 

Identifying Information 

Plan Name: Bricklayers and Allied Craftsman Local No. 7 Pension Plan 

EIN/Plan #: 34-6666798/001 

Plan year of Certification: year beginning May 1, 2019 

Plan Sponsor: Board of Trustees of Bricklayers and Allied Craftsman Local No. 7 Pension Plan 

Sponsor Address: 33 Fitch Blvd Austintown, OH 44515 

Sponsor Telephone: (248) 813-9800 

Enrolled Actuary Name: Kathryn A. Garrity, FSA, EA, MAAA 

Enrollment Number: 17-05379 

Actuary Address: 11590 N. Meridian St., Suite 610, Carmel, IN 46032 

Actuary Telephone: (317) 580-8688 

Certification of Plan Status 

I certify that the above-named Plan is in the following status(es) as of May 1, 2019 (all that apply 

are checked):

Safe--Neither Endangered nor Critical Status

Safe--Neither Endangered nor Critical Status

Due to Special Rule

Endangered Status 

Seriously Endangered Status

Projected to be in Critical Status within 5 years

Critical Status

Critical and Declining Status X

BAC 7:22
Board of Trustees -2- July 29, 2019 

This certification is based on the following results: 

• Projected funded ratio as of May 1, 2019: 24.4%

• Previously emerged from critical status using IRC

Section 432(e)(4)(B)(ii)(I) special emergence

rule?: No

• First projected deficiency: Existing deficiency, FSA projected

to remain negative as of April 30, 

2020

• At least 8 years of benefit payments in plan

assets?: No

• Plan year of projected insolvency: 2022-23 plan year

• Ratio of inactive to active participants: 2.835

Certification of Scheduled Progress

I certify that the above-named Plan has made scheduled progress as of May 1, 2019 as outlined in 

the 2008 rehabilitation plan, which was updated on December 8, 2017. Projections indicate that 

the Plan is not projected to emerge from Critical status at the end of the rehabilitation period as 

specified in the rehabilitation plan. This rehabilitation plan, however, includes the use of the 

“exhaustion of all reasonable measures” clause of IRC Section 432(e)(3)(A)(ii). Therefore, we 

interpret scheduled progress for this Plan to mean continuing to use all reasonable measures to 

forestall insolvency and it is my understanding that such consideration was made in the past year. 

Basis for Result

The certification utilizes the assumptions, methods, plan provisions and demographic data as 

disclosed in the May 1, 2018 actuarial valuation report with the following exceptions:

• Based on the April 30, 2019 unaudited financial statements provided by the plan

administrator, the asset return for the 2018-19 plan year is assumed to be 3.94%. We also

updated the contributions, benefit payments, and expenses for the 2018-19 plan year based

on these financial statements.

• For the period May 1, 2019 through April 30, 2028, plan assets were assumed to return

6.00% per year, with 7.00% per year assumed thereafter.]

BAC 7:23
Board of Trustees -3- July 29, 2019 

• No adjustments were made to the contribution rate assumption.

• Based on information provided by the Trustees regarding projection of future industry

activity, the following hours were assumed: 90,000 for the plan year beginning in 2019;

and for each plan year thereafter. For the 2018-2019 plan year, our projections used actual

hours of 110,535.

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

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

certification is intended to be in good faith compliance with the necessary disclosures for 

certification and represents my best estimate of the Plan’s funded position. We are available to 

answer questions regarding this certification. 

Sincerely,

Kathryn A. Garrity, FSA, EA, MAAA

Chief Actuary

EA number: 17-05379 

Date of Signature: ___7/29/2019__ 

cc: Secretary of the Treasury

Susan Cunningham, BeneSys

Timothy P. Piatt, Fund Counsel 

David Eyster, Fund Auditor 

m:\docs\brick7\db 28244\valuations\20190501\ppa\20190501 ppa certification-final.docx

BAC 7:24
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Checklist Item #5: based on 2019 PPA Certifcation Assumptions no Suspension or Partition

Plan Year End Interest Rate

Market Value of 

Asset BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

4/30/2020 6.00% 9,531,294 612,000 2,816,588 310,938 33,416 129,570 - 120,000 - 488,044 4/30/2021 6.00% 7,220,826 612,000 2,736,651 297,167 66,907 216,296 - 120,000 - 348,621 4/30/2022 6.00% 4,744,426 612,000 2,644,046 281,976 104,904 301,308 - 120,000 - 199,580 4/30/2023 6.00% 2,103,772 612,000 2,550,064 266,626 154,067 389,976 - 120,000 - 40,286 

Benefit Payments by 5/1/19 Status

BAC 7:25

Exhibit 04B
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFfSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

EXHIBIT OS 

Actuary's Certification that Plan will Avoid Insolvency 

This Certification and the attached Exhibit 05A (BAC 7:28) has been prepared by United Actuarial 

Services, Inc. at the request of the Board of Trustees of the Bricklayers and Allied Craftsmen Local 

No. 7 Pension Plan. United Actuarial Services, Inc. certifies under IRC §432(e)(9)(C)(i) that the 

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

proposed benefit suspension effective October 1, 2020 and assuming such suspension continues 

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

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

Application, Section 2, page BAC 7:4. Exhibit 18 (BAC 7:103) describes the actuarial 

assumptions and methodology used in the reports filed with this application, as required under 

Revenue Procedure 2017-43, Section 4.02(3). 

This certification is based on the May 1, 2019 actuarial valuation report, Exhibit 32B (BAC 7:475), 

and the May 1, 2019 actuarial certification, Exhibit 04A (BAC 7:22). The Market Value of assets 

as of June 30, 2019 (the start of the "initial period" as defined in Revenue Procedure 2017-43, 

Section 3.02, as required under regulation §1.432(e)(9)-l(d)(5)(iv)(C)(l)) was furnished by 

BeneSys, Inc. and certified by Bultynck and Co., PLLC. 

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

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

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

Future actuarial measurements may differ significantly from the current measurements presented 

in this certification due to factors such as the following: plan experience differing from that 

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

assumptions, or changes in plan provisions. 

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

revision based on future regulatory or other guidance. 

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

None of the comments made herein should be construed as constituting such advice. We are not 

aware of any direct or material indirect financial interest or relationship that could create a conflict 

of interest that would impair the objectivity of our work. 

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

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

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

§432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan

sponsor. In 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.

BAC 7:26
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Kathryn A. Garrity, FSA, EA, MAAA 

Enrollment Number:,10-05379 

11590 N. Meridian St., Suite 610 

Carmel, IN 46032 

Phone: 317-580-8688 

BAC 7:27
EXHIBIT 05A

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 6: with Suspension and Partition

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY

Total 

Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY Resources

Solvency 

Ratio

4/30/2020 7.75% 6,422,399 29,212 0 0 0 0 249,146 49,000 0 487,315 6,640,780 6,889,926 27.6542

4/30/2021 5.75% 6,640,780 458,431 1,695,089 142,601 28,052 147,103 0 227,969 0 330,601 5,188,998 7,201,843 3.5779

4/30/2022 5.75% 5,188,998 634,262 997,185 40,963 4,188 150,174 0 79,495 0 280,032 4,831,287 6,023,797 5.0514

4/30/2023 5.75% 4,831,287 667,328 939,730 38,510 5,930 192,503 0 81,922 0 260,800 4,500,820 5,677,493 4.8250

4/30/2024 5.75% 4,500,820 670,272 881,770 36,004 7,947 237,632 0 84,585 0 242,189 4,165,343 5,328,696 4.5805

4/30/2025 5.75% 4,165,343 667,380 823,740 33,465 9,726 259,815 0 87,550 0 223,783 3,842,209 4,968,955 4.4100

4/30/2026 5.75% 3,842,209 667,350 766,100 30,913 11,271 280,107 2 90,148 0 206,230 3,537,249 4,625,642 4.2500

4/30/2027 5.75% 3,537,249 665,050 709,346 28,376 13,110 300,522 10 92,882 0 189,615 3,247,668 4,299,032 4.0890

4/30/2028 5.75% 3,247,668 664,290 653,962 25,878 14,956 311,993 767 95,634 0 174,123 2,982,891 3,990,447 3.9605

4/30/2029 5.75% 2,982,891 663,510 600,413 23,441 16,523 329,307 1,593 98,501 0 159,836 2,736,460 3,707,737 3.8174

4/30/2030 6.75% 2,736,460 663,343 549,120 21,085 17,998 339,770 2,590 101,506 0 172,267 2,540,001 3,470,564 3.7295

4/30/2031 6.75% 2,540,001 663,376 500,439 18,834 19,596 365,010 4,021 104,754 0 159,662 2,350,385 3,258,285 3.5888

4/30/2032 6.75% 2,350,385 665,080 454,670 16,700 21,222 387,032 5,562 100,656 0 147,825 2,177,448 3,062,634 3.4599

4/30/2033 6.75% 2,177,448 664,948 412,029 14,699 22,386 395,839 7,645 104,223 0 137,127 2,022,702 2,875,300 3.3724

4/30/2034 6.75% 2,022,702 663,041 372,640 12,842 23,645 415,827 9,869 107,957 0 127,091 1,870,054 2,704,877 3.2401

4/30/2035 6.75% 1,870,054 662,574 336,520 11,140 24,920 425,388 12,346 111,915 0 117,465 1,727,864 2,538,178 3.1323

4/30/2036 6.75% 1,727,864 662,674 303,606 9,594 25,973 437,719 15,221 116,012 0 108,347 1,590,760 2,382,873 3.0082

4/30/2037 6.75% 1,590,760 662,055 273,778 8,208 26,653 443,916 18,304 120,238 0 99,646 1,461,364 2,232,223 2.8958

4/30/2038 6.75% 1,461,364 662,383 246,876 6,976 27,105 443,749 21,892 124,704 0 91,591 1,344,036 2,090,634 2.8002

4/30/2039 6.75% 1,344,036 661,177 222,685 5,889 27,720 451,872 25,724 129,431 0 83,900 1,225,792 1,959,682 2.6703

4/30/2040 6.75% 1,225,792 660,829 200,948 4,940 28,325 456,529 30,067 134,441 0 76,179 1,107,550 1,828,359 2.5365

4/30/2041 6.75% 1,107,550 660,830 181,394 4,115 28,434 451,285 34,875 132,849 0 68,950 1,004,377 1,704,480 2.4346

4/30/2042 6.75% 1,004,377 660,817 163,762 3,408 28,548 446,287 40,023 129,865 0 62,697 915,998 1,598,026 2.3431

4/30/2043 6.75% 915,998 661,174 147,809 2,805 28,625 442,771 45,923 127,282 0 57,306 839,264 1,507,197 2.2565

4/30/2044 6.75% 839,264 661,916 133,298 2,294 28,820 442,091 52,026 125,619 0 52,525 769,557 1,428,086 2.1686

4/30/2045 6.75% 769,557 662,004 120,011 1,868 28,483 432,543 58,675 122,183 0 48,511 716,309 1,357,889 2.1165

4/30/2046 6.75% 716,309 662,088 107,762 1,511 28,002 423,271 65,724 118,949 0 45,545 678,723 1,304,993 2.0838

4/30/2047 6.75% 678,723 662,227 96,396 1,217 27,411 416,129 72,912 116,133 0 43,520 654,272 1,268,337 2.0655

4/30/2048 6.75% 654,272 662,818 85,797 974 26,567 403,649 80,585 112,423 0 42,571 649,666 1,247,238 2.0872

4/30/2049 6.75% 649,666 663,352 75,879 773 25,715 393,370 88,385 109,337 0 42,836 662,394 1,246,516 2.1340

4/30/2050 6.75% 662,394 663,909 66,590 610 24,825 380,144 97,212 106,084 0 44,322 695,161 1,264,542 2.2209

4/30/2051 6.75% 695,161 663,941 57,924 476 23,853 364,600 106,418 102,721 0 47,192 750,302 1,303,573 2.3561

4/30/2052 6.75% 750,302 663,908 49,897 366 22,805 349,425 115,924 99,348 0 51,528 827,972 1,366,389 2.5378

4/30/2053 6.75% 827,972 663,976 42,534 280 21,789 334,870 126,253 96,517 0 57,297 927,002 1,452,728 2.7633

4/30/2054 6.75% 927,002 663,945 35,853 210 20,655 318,418 136,637 93,346 0 64,558 1,050,386 1,562,159 3.0524

4/30/2055 6.75% 1,050,386 663,959 29,856 155 19,511 302,918 148,787 90,697 0 73,332 1,195,752 1,696,979 3.3857

4/30/2056 6.75% 1,195,752 663,913 24,533 114 18,351 286,904 161,329 88,157 0 83,566 1,363,844 1,855,075 3.7764

4/30/2057 6.75% 1,363,844 663,933 19,874 81 17,184 270,027 174,202 85,686 0 95,329 1,556,052 2,037,420 4.2326

4/30/2058 6.75% 1,556,052 663,973 15,854 56 16,037 254,124 188,146 83,664 0 108,614 1,770,758 2,244,975 4.7341

4/30/2059 6.75% 1,770,758 663,960 12,438 38 14,880 237,686 201,916 81,543 0 123,423 2,009,640 2,476,598 5.3037

4/30/2060 6.75% 2,009,640 663,907 9,585 26 13,739 221,519 215,842 79,630 0 139,821 2,273,026 2,733,737 5.9337

4/30/2061 6.75% 2,273,026 663,866 7,243 17 12,623 205,852 229,925 77,911 0 157,827 2,561,148 3,016,808 6.6207

4/30/2062 6.75% 2,561,148 663,802 5,363 11 11,533 190,628 243,753 76,316 0 177,474 2,874,820 3,326,108 7.3703

4/30/2063 6.75% 2,874,820 663,738 3,889 6 10,493 175,984 257,685 74,910 0 198,801 3,214,392 3,662,449 8.1741

4/30/2064 6.75% 3,214,392 663,675 2,760 3 9,492 161,949 271,549 73,670 0 221,840 3,580,484 4,026,237 9.0324

4/30/2065 6.75% 3,580,484 663,611 1,915 2 8,534 148,580 285,310 72,589 0 246,633 3,973,798 4,418,139 9.9431

4/30/2066 6.75% 3,973,798 663,547 1,296 2 7,635 135,895 299,188 71,708 0 273,220 4,394,841 4,838,857 10.8979

4/30/2067 6.75% 4,394,841 663,483 859 0 6,775 123,917 312,848 70,966 0 301,651 4,844,609 5,289,008 11.9015

4/30/2068 6.75% 4,844,609 663,419 558 0 5,982 112,642 326,481 70,399 0 331,984 5,323,951 5,769,614 12.9461

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

3) Actives are not partitioned. Terminated Vesteds are fully partitioned. Retiree (healthy & disabled) and Beneficiary liabilities are partitioned as shown in updated listing.

4) Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

Benefit Payments by 5/1/19 Status

BAC 7:28
Exhibit 06

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 7: Determination of Projected Insolvency (no partition or suspension)

Plan Year End

Interest 

Rate

Market Value of 

Asset BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY Resources

Solvency 

Ratio

4/30/2020 7.75% 6,422,399 29,212 - - - - 249,146 49,000 - 487,315 6,640,780 6,889,926 27.6542

4/30/2021 5.75% 6,640,780 434,728 2,592,945 281,561 63,393 204,938 - 250,000 - 296,799 3,979,470 7,122,307 2.2662

4/30/2022 5.75% 3,979,469 572,144 2,514,646 268,176 99,769 286,381 - 115,000 - 150,854 1,418,495 4,587,468 1.4476

4/30/2023 5.75% 1,418,495 573,497 1,745,247 215,565 103,883 274,465 - 117,875 - 27,412 - 1,901,528 0.8129

Notes: The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

Benefit Payments by 5/1/19 Status

BAC 7:29
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 07 

Demonstration of Suspension Limitations 

The following exhibits are attached which demonstrate that the limitations on individual 

suspensions are satisfied: 

Exhibit 07A (BAC 7:31) – Retiree Under 75 without Contingent Beneficiary, No Late Retirement, 

110% of PBGC Guarantee 

Exhibit 07B (BAC 7:32) – Retiree Under 75 without Contingent Beneficiary, Late Retirement, 

110% of PBGC Guarantee 

Exhibit 07C (BAC 7:33) – Retiree Under 75 with Contingent Beneficiary, No Late Retirement, 

110% of PBGC Guarantee 

Exhibit 07D (BAC 7:34) – Retiree Under 75 with Contingent Beneficiary, Late Retirement, 110% 

of PBGC Guarantee 

Exhibit 07E (BAC 7:35) – Beneficiary Under 75, 110% of PBGC Guarantee 

Exhibit 07F (BAC 7:36) – Inactive Vested, No Late Retirement, 110% of PBGC Guarantee 

Exhibit 07G (BAC 7:37) – Inactive Vested, Late Retirement, 110% of PBGC Guarantee 

Exhibit 07H (BAC 7:38) – Alternate Payee Not in Payment, 110% of PBGC Guarantee 

Exhibit 07I (BAC 7:39) – Alternate Payee in Payment Under 75, 110% of PBGC Guarantee 

Exhibit 07J (BAC 7:40) – Retiree Age 75-80 without Contingent Beneficiary, Age 75-79 and 

110% of PBGC Guarantee 

Exhibit 07K (BAC 7:41) – Retiree Age 75-80 without Contingent Beneficiary, Late Retirement, 

Age 75-79 and 110% of PBGC Guarantee 

Exhibit 07L (BAC 7:42) – Retiree Age 75-80 with Contingent Beneficiary, No Late Retirement, 

Age 75-79 and 110% of PBGC Guarantee 

Exhibit 07M (BAC 7:43) – Retiree Age 75-80 with Contingent Beneficiary, Late Retirement, Age 

75-79 and 110% of PBGC Guarantee

Exhibit 07N (BAC 7:44) – Beneficiary Age 75-80, Age 75-79 and 110% of PBGC Guarantee

Exhibit 07O (BAC 7:45) – Disability

Exhibit 07P (BAC 7:46) – Retiree Over Age 80 without Contingent Beneficiary, No Late

Retirement, Over Age 80 and 110% of PBGC Guarantee

Exhibit 07Q (BAC 7:47) – Beneficiary Over Age 80, Over Age 80 and 110% of PBGC Guarantee

BAC 7:30
Exhibit 07A

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #1

Participant Category: Retiree Under Age 75 without a contingent beneficiary, No Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement

Age at retirement date 56 years 0 months

Age at suspension date 64 years 2 months

Current monthly benefit

Late retirement factor (LRD) applied to current benefit

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit, without regard to LRF

Current monthly benefit, without regard to LRF/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

8/6/1956

9/1/2012

1490.95

1.00000

2581.65

25.00

life annuity

1490.95

983.12

893.75

35.75

59.64

No

60

983.12

Yes

No

983.12

983.12

BAC 7:31
Exhibit 07B

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #2

Participant Category: Retiree Under Age 75 without a contingent beneficiary, Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement

Age at retirement date 63 years 0 months

Age at suspension date 65 years 3 months

Current monthly benefit

Late retirement factor (LRD) applied to current benefit

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit, without regard to LRF

Current monthly benefit, without regard to LRF/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

3234.81

8/1/2018

7/25/1955

1101.10

1001.00

35.75

104.08

2914.35

life annuity

28.00

3008.64

1.10996

1101.10

No

Yes

No

1101.10

1101.10

60

BAC 7:32
Exhibit 07C

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #3

Participant Category: Retiree Under Age 75 with a contingent beneficiary, No Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 57 years 4 months

Age at suspension date 62 years 9 months

Spouse age at retirement date 56 years 1 months

Spouse age at suspension date 61 years 6 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Monthly benefit/ Benefit Credits 79.67 64.49

PBGC guaranteed accrual rate 35.75 35.75

PBGC guaranteed benefit, current benefit 715.00 715.00

110% of PBGC guaranteed benefit, current benefit 786.50 786.50

Suspension benefit prior to age based limitation 786.5 786.5

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 60 60

Benefits after age-based limitation 786.50 786.50

Final Monthly Benefit under Proposed Suspension 786.50 786.50

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

786.50

No

Yes

No

joint & 100% w pop-up

Current Benefit

64.49

35.75

715.00

786.50

1/30/1958

4/12/1959

6/1/2015

1289.75

1593.35

1289.75

1.0000

1289.75

1593.35

1289.75

2325.61

20.00

786.50

786.50

60

BAC 7:33
Exhibit 07D

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #4

Participant Category: Retiree Under Age 75 with a contingent beneficiary, Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 69 years 11 months

Age at suspension date 72 years 9 months

Spouse age at retirement date 65 years 7 months

Spouse age at suspension date 68 years 5 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Current monthly benefit, without regard to LRF/ Benefit Credits 43.66 29.60

PBGC guaranteed accrual rate 35.50 24.95

PBGC guaranteed benefit, current benefit 603.45 424.18

110% of PBGC guaranteed benefit, current benefit 663.79 466.59

Suspension benefit prior to age based limitation 663.79 466.59

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 60 60

Benefits after age-based limitation 663.79 466.59

Final Monthly Benefit under Proposed Suspension 663.79 466.59

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

Yes

No

joint & 100% w pop-up

Current Benefit

29.60

24.95

424.18

466.59

466.59

60

466.59

466.59

No

17.00

1/21/1948

5/6/1952

1/1/2018

904.85

1334.63

904.85

1.7981

503.24

742.26

503.24

778.72

BAC 7:34
Exhibit 07E

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #5

Participant Category: Beneficiary Under Age 75

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement (member)

Age at retirement date 64 years 6 months

Age at suspension date 68 years 1 months

Current monthly benefit

Total accrued benefit payable at normal retirement age (member)

Total Benefit Credits

Form of pension (original)

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

60

1140.42

1140.42

Yes

No

9/16/1952

4/1/2017

2196.33

3120.36

No

29.00

joint & 100%

75.74

35.75

1036.75

1140.42

1140.42

BAC 7:35
Exhibit 07F

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #6

Participant Category: Inactive vested, No Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Age at suspension date 44 years 7 months

Total accrued benefit payable at normal retirement age

Late Retirement factor

Total accrued benefit payable at assumed age 62

Total Benefit Credits

Calculation of 110% of PBGC Guarantee at Assumed Retirement Age of 62

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

110% of PBGC guaranteed limit?

35.75

1.00000

3/19/1976

367.39

367.39

8.00

45.92

286.00

314.60

314.60

Yes

This calculation excludes any reductions in the participant's accrued benefit for pre-retirement death benefit coverage.

BAC 7:36
Exhibit 07G

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #7

Participant Category: Inactive Vested, Late Retirement

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Age at suspension date 69 years 6 months

Total accrued benefit payable at normal retirement age

Late retirement factor for assumed age 70 4/12 late retirement

Total accrued benefit payable at assumed age 70 4/12 late

Total accrued benefit payable at assumed age 70 4/12 no LRF

Total Benefit Credits

Calculation of 110% of PBGC Guarantee at Assumed Retirement Age of 65

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

110% of PBGC guaranteed limit?

4/24/1951

321.87

227.37

27.11

208.76

227.37

1.41562

7.00

Yes

This calculation excludes any reductions in the participant's accrued benefit for pre-retirement death benefit coverage.

32.48

189.78

208.76

BAC 7:37
Exhibit 07H

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #8

Participant Category: Alternate Payee not in Payment

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Age at suspension date 48 years 6 months

Total accrued benefit payable at normal retirement age*

Total Benefit Credits

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

110% of PBGC guaranteed limit?

* This amount already has QPSA of 3.00% taken into account.

* This amount already has the additional early retirement adjustment AP age of 88.17% taken into account. 

214.32

214.32

Yes

This calculation excludes any reductions in the participant's accrued benefit for pre-retirement death benefit coverage. Service and benefit

amounts shown are after adjustment for QDRO.

194.84

4/25/1972

5.45

52.77

35.75

287.58

BAC 7:38
Exhibit 07I

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #9

Participant Category: Alternate Payee in Payment Under Age 75

Suspension Limitation: 110% of PBGC Guaranteed Benefit

Date of birth

Date of retirement

Age at retirement date 51 years 4 months

Age at suspension date 65 years 5 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

Service and Benefit amounts shown are portion attributable to AP only

61.93

5 Year Certain & Continuous

60

279.21

279.21

253.83

35.75

No

Yes

No

279.21

279.21

7.10

691.93

439.67

10/1/2006

5/9/1955

BAC 7:39
Exhibit 07J

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #10

Participant Category: Retiree Age 75-80 without contingent beneficiary, No Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement

Age at retirement date 58 years 5 months

Age at suspension date 76 years 8 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit, current benefit

110% of PBGC guaranteed benefit, current benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

2/3/1944

8/1/2002

164.53

191.91

12.00

Yes

1.0000

164.53

156.40

164.53

164.53

40

164.53

164.53

13.03

joint & 75%

13.71

No

Yes

BAC 7:40
Exhibit 07K

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #11

Participant Category: Retiree Age 75-80 without contingent beneficiary, Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement

Age at retirement date 69 years 1 months

Age at suspension date 75 years 4 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit, without regard to LRF/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit, current benefit

110% of PBGC guaranteed benefit, current benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

51.75

6/16/1945

8/1/2014

87.91

87.91

1.6180

54.33

4.00

Life only

13.58

12.94

Yes

Yes

56.92

56.92

56

58.99

58.99

No

BAC 7:41
Exhibit 07L

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #12

Participant Category: Retiree Age 75-80 with contingent beneficiary, No Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 62 years 0 months

Age at suspension date 76 years 6 months

Spouse age at retirement date 59 years 0 months

Spouse age at suspension date 73 years 6 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Monthly benefit/ Benefit Credits 119.01 51.32

PBGC guaranteed accrual rate 35.75 35.75

PBGC guaranteed benefit, current benefit 1036.75 1036.75

110% of PBGC guaranteed benefit, current benefit 1140.42 1140.42

Suspension benefit prior to age based limitation 1140.42 1140.42

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 42 42

Benefits after age-based limitation 1833.71 1244.74

Final Monthly Benefit under Proposed Suspension 1833.71 1244.74

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit? Yes

1140.42

42

1691.18

1691.18

No

Yes

1140.42

1.0000

2976.27

3451.39

1488.14

3460.82

29.00

joint & 50% w pop-up

Current Benefit

102.63

35.75

1036.75

1488.14

4/24/1944

4/9/1947

5/1/2006

2976.27

3451.39

BAC 7:42
Exhibit 07M

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #13

Participant Category: Retiree Age 75-80 with contingent beneficiary, Late Retirement

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Spouse date of birth

Date of retirement

Age at retirement date 65 years 9 months

Age at suspension date 77 years 7 months

Spouse age at retirement date 62 years 4 months

Spouse age at suspension date 74 years 2 months

Current monthly benefit

Pop-up benefit if spouse dies first

Spouse benefit if participant dies first

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Pop-up benefit if spouse dies first, w/o regard to LRF

Spouse benefit if participant dies first, w/o regard to LRF

Total accrued benefit payable at normal retirement age

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Pop-up Benefit Survivor Benefit

Current monthly benefit, without regard to LRF/ Benefit Credits 69.53 49.74

PBGC guaranteed accrual rate 35.75 35.75

PBGC guaranteed benefit, current benefit 178.75 178.75

110% of PBGC guaranteed benefit, current benefit 196.62 196.62

Suspension benefit prior to age based limitation 196.62 196.62

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos) 29 29

Benefits after age-based limitation 277.91 225.85

Final Monthly Benefit under Proposed Suspension 277.91 225.85

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit? Yes

196.62

29

225.85

225.85

No

Yes

196.62

1.0181

248.70

347.67

248.70

345.41

5.00

joint & 100% w pop-up

Current Benefit

49.74

35.75

178.75

253.19

3/17/1943

8/20/1946

1/1/2009

253.19

353.95

BAC 7:43
Exhibit 07N

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #14

Participant Category: Beneficiary Age 75-80

Suspension Limitation: Age 75-79 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement (member)

Age at retirement date 60 years 1 months

Age at suspension date 75 years 9 months

Current monthly benefit

Total accrued benefit payable at normal retirement age (member)

Total Benefit Credits

Form of pension (original)

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

135.33

131.74

135.33

3/1/2005

1/11/1945

11.98

12.30

joint & 100%

11.00

289.54

51

135.33

Yes

Yes

No

135.33

135.33

BAC 7:44
Exhibit 07O

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #15

Participant Category: Disability

Suspension Limitation: Disability

Date of birth

Date of retirement (conversion from disablity)

Age at retirement date 57 years 11 months

Age at suspension date 62 years 2 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Disability based benefit

Total Benefit Credits

Type of pension

Form of pension

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

35.75

80.37

lifetime annuity

Disability

8/7/1958

16.00

1273.02

1818.76

1285.95

8/1/2016

629.20

572.00

no

no

Yes

572.00

60

1273.02

BAC 7:45
Exhibit 07P

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #16

Participant Category: Retiree Over Age 80 without contingent beneficiary, No Late Retirement

Suspension Limitation: Over Age 80 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement

Age at retirement date 60 years 3 months

Age at suspension date 85 years 10 months

Current monthly benefit

Total accrued benefit payable at normal retirement age

Late factor applied to current monthly benefit

Current monthly benefit, without regard to late factor (LRF)

Total Benefit Credits

Form of pension

Calculation of 110% of PBGC Guarantee

Monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit, current benefit

110% of PBGC guaranteed benefit, current benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

215.20

12/3/1934

4/1/1995

246.61

n/a

1.0000

246.61

11.00

Life only

22.42

19.56

Yes

Yes

236.73

236.73

0

246.61

246.61

No

BAC 7:46
Exhibit 07Q

Bricklayers and Allied Craftsment Local No. 7 Pension Plan

EIN/Plan #: 34-6666798/001

Checklist Item #8 - 4.01 Demonstration that Limitations on Individual Suspensions are Satisfied

Illustration #17

Participant Category: Beneficiary Over Age 80

Suspension Limitation: Over Age 80 (and 110% of PBGC Guaranteed Benefit)

Date of birth

Date of retirement (member)

Age at retirement date 61 years 6 months

Age at suspension date 88 years 4 months

Current monthly benefit

Total accrued benefit payable at normal retirement age (member)

Total Benefit Credits

Form of pension (original)

Calculation of 110% of PBGC Guarantee

Current monthly benefit/ Benefit Credits

PBGC guaranteed accrual rate

PBGC guaranteed benefit

110% of PBGC guaranteed benefit

Suspension benefit prior to age based limitation

Age Based Limitation

Months from age 80 (at suspension date, max 60 mos)

Benefits after age-based limitation

Final Monthly Benefit under Proposed Suspension

Summary of Applicable Federal Limitations

Disability limit?

110% of PBGC guaranteed limit?

Age-based limit?

0

6/16/1932

1/1/1994

289.65

561.35

13.00

Life only

22.28

19.46

252.98

278.29

278.29

289.65

289.65

No

Yes

Yes

BAC 7:47
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 08 

Demonstration of Insolvency Avoidance 

This application filed on behalf of the Pension Plan includes an actuarial certification of plan 

solvency under ERISA § 305(e)(9)(c)(i) and IRC Section 432(e)(9)(C)(i) as of the effective date 

of the proposed benefit suspension, which is October 1, 2020. See Exhibits 05 and 05A (BAC 

7:26 and BAC 7:28 respectively). 

Exhibit 08A (BAC 7:49) provides an illustration based on the deterministic basis showing that the 

proposed suspension is reasonably estimated to avoid insolvency throughout the extended period. 

This illustration provides the market value and solvency ratio for Plan Years ending April 30, 2020 

through April 30, 2068. 

Exhibit 18 (BAC 7:103) describes the actuarial assumptions and methodology used in the reports 

filed with this application, as required under Revenue Procedure 2017-43, Section 4.02(3). 

BAC 7:48
Exhibit 08A

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 9: with Suspension and Partition

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY

Total 

Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY Resources

Solvency 

Ratio

4/30/2020 7.75% 6,422,399 29,212 0 0 0 0 249,146 49,000 0 487,315 6,640,780 6,889,926 27.6542

4/30/2021 5.75% 6,640,780 458,431 1,695,089 142,601 28,052 147,103 0 227,969 0 330,601 5,188,998 7,201,843 3.5779

4/30/2022 5.75% 5,188,998 634,262 997,185 40,963 4,188 150,174 0 79,495 0 280,032 4,831,287 6,023,797 5.0514

4/30/2023 5.75% 4,831,287 667,328 939,730 38,510 5,930 192,503 0 81,922 0 260,800 4,500,820 5,677,493 4.8250

4/30/2024 5.75% 4,500,820 670,272 881,770 36,004 7,947 237,632 0 84,585 0 242,189 4,165,343 5,328,696 4.5805

4/30/2025 5.75% 4,165,343 667,380 823,740 33,465 9,726 259,815 0 87,550 0 223,783 3,842,209 4,968,955 4.4100

4/30/2026 5.75% 3,842,209 667,350 766,100 30,913 11,271 280,107 2 90,148 0 206,230 3,537,249 4,625,642 4.2500

4/30/2027 5.75% 3,537,249 665,050 709,346 28,376 13,110 300,522 10 92,882 0 189,615 3,247,668 4,299,032 4.0890

4/30/2028 5.75% 3,247,668 664,290 653,962 25,878 14,956 311,993 767 95,634 0 174,123 2,982,891 3,990,447 3.9605

4/30/2029 5.75% 2,982,891 663,510 600,413 23,441 16,523 329,307 1,593 98,501 0 159,836 2,736,460 3,707,737 3.8174

4/30/2030 6.75% 2,736,460 663,343 549,120 21,085 17,998 339,770 2,590 101,506 0 172,267 2,540,001 3,470,564 3.7295

4/30/2031 6.75% 2,540,001 663,376 500,439 18,834 19,596 365,010 4,021 104,754 0 159,662 2,350,385 3,258,285 3.5888

4/30/2032 6.75% 2,350,385 665,080 454,670 16,700 21,222 387,032 5,562 100,656 0 147,825 2,177,448 3,062,634 3.4599

4/30/2033 6.75% 2,177,448 664,948 412,029 14,699 22,386 395,839 7,645 104,223 0 137,127 2,022,702 2,875,300 3.3724

4/30/2034 6.75% 2,022,702 663,041 372,640 12,842 23,645 415,827 9,869 107,957 0 127,091 1,870,054 2,704,877 3.2401

4/30/2035 6.75% 1,870,054 662,574 336,520 11,140 24,920 425,388 12,346 111,915 0 117,465 1,727,864 2,538,178 3.1323

4/30/2036 6.75% 1,727,864 662,674 303,606 9,594 25,973 437,719 15,221 116,012 0 108,347 1,590,760 2,382,873 3.0082

4/30/2037 6.75% 1,590,760 662,055 273,778 8,208 26,653 443,916 18,304 120,238 0 99,646 1,461,364 2,232,223 2.8958

4/30/2038 6.75% 1,461,364 662,383 246,876 6,976 27,105 443,749 21,892 124,704 0 91,591 1,344,036 2,090,634 2.8002

4/30/2039 6.75% 1,344,036 661,177 222,685 5,889 27,720 451,872 25,724 129,431 0 83,900 1,225,792 1,959,682 2.6703

4/30/2040 6.75% 1,225,792 660,829 200,948 4,940 28,325 456,529 30,067 134,441 0 76,179 1,107,550 1,828,359 2.5365

4/30/2041 6.75% 1,107,550 660,830 181,394 4,115 28,434 451,285 34,875 132,849 0 68,950 1,004,377 1,704,480 2.4346

4/30/2042 6.75% 1,004,377 660,817 163,762 3,408 28,548 446,287 40,023 129,865 0 62,697 915,998 1,598,026 2.3431

4/30/2043 6.75% 915,998 661,174 147,809 2,805 28,625 442,771 45,923 127,282 0 57,306 839,264 1,507,197 2.2565

4/30/2044 6.75% 839,264 661,916 133,298 2,294 28,820 442,091 52,026 125,619 0 52,525 769,557 1,428,086 2.1686

4/30/2045 6.75% 769,557 662,004 120,011 1,868 28,483 432,543 58,675 122,183 0 48,511 716,309 1,357,889 2.1165

4/30/2046 6.75% 716,309 662,088 107,762 1,511 28,002 423,271 65,724 118,949 0 45,545 678,723 1,304,993 2.0838

4/30/2047 6.75% 678,723 662,227 96,396 1,217 27,411 416,129 72,912 116,133 0 43,520 654,272 1,268,337 2.0655

4/30/2048 6.75% 654,272 662,818 85,797 974 26,567 403,649 80,585 112,423 0 42,571 649,666 1,247,238 2.0872

4/30/2049 6.75% 649,666 663,352 75,879 773 25,715 393,370 88,385 109,337 0 42,836 662,394 1,246,516 2.1340

4/30/2050 6.75% 662,394 663,909 66,590 610 24,825 380,144 97,212 106,084 0 44,322 695,161 1,264,542 2.2209

4/30/2051 6.75% 695,161 663,941 57,924 476 23,853 364,600 106,418 102,721 0 47,192 750,302 1,303,573 2.3561

4/30/2052 6.75% 750,302 663,908 49,897 366 22,805 349,425 115,924 99,348 0 51,528 827,972 1,366,389 2.5378

4/30/2053 6.75% 827,972 663,976 42,534 280 21,789 334,870 126,253 96,517 0 57,297 927,002 1,452,728 2.7633

4/30/2054 6.75% 927,002 663,945 35,853 210 20,655 318,418 136,637 93,346 0 64,558 1,050,386 1,562,159 3.0524

4/30/2055 6.75% 1,050,386 663,959 29,856 155 19,511 302,918 148,787 90,697 0 73,332 1,195,752 1,696,979 3.3857

4/30/2056 6.75% 1,195,752 663,913 24,533 114 18,351 286,904 161,329 88,157 0 83,566 1,363,844 1,855,075 3.7764

4/30/2057 6.75% 1,363,844 663,933 19,874 81 17,184 270,027 174,202 85,686 0 95,329 1,556,052 2,037,420 4.2326

4/30/2058 6.75% 1,556,052 663,973 15,854 56 16,037 254,124 188,146 83,664 0 108,614 1,770,758 2,244,975 4.7341

4/30/2059 6.75% 1,770,758 663,960 12,438 38 14,880 237,686 201,916 81,543 0 123,423 2,009,640 2,476,598 5.3037

4/30/2060 6.75% 2,009,640 663,907 9,585 26 13,739 221,519 215,842 79,630 0 139,821 2,273,026 2,733,737 5.9337

4/30/2061 6.75% 2,273,026 663,866 7,243 17 12,623 205,852 229,925 77,911 0 157,827 2,561,148 3,016,808 6.6207

4/30/2062 6.75% 2,561,148 663,802 5,363 11 11,533 190,628 243,753 76,316 0 177,474 2,874,820 3,326,108 7.3703

4/30/2063 6.75% 2,874,820 663,738 3,889 6 10,493 175,984 257,685 74,910 0 198,801 3,214,392 3,662,449 8.1741

4/30/2064 6.75% 3,214,392 663,675 2,760 3 9,492 161,949 271,549 73,670 0 221,840 3,580,484 4,026,237 9.0324

4/30/2065 6.75% 3,580,484 663,611 1,915 2 8,534 148,580 285,310 72,589 0 246,633 3,973,798 4,418,139 9.9431

4/30/2066 6.75% 3,973,798 663,547 1,296 2 7,635 135,895 299,188 71,708 0 273,220 4,394,841 4,838,857 10.8979

4/30/2067 6.75% 4,394,841 663,483 859 0 6,775 123,917 312,848 70,966 0 301,651 4,844,609 5,289,008 11.9015

4/30/2068 6.75% 4,844,609 663,419 558 0 5,982 112,642 326,481 70,399 0 331,984 5,323,951 5,769,614 12.9461

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

3) Actives are not partitioned. Terminated Vesteds are fully partitioned. Retiree (healthy & disabled) and Beneficiary liabilities are partitioned as shown in updated listing.

4) Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

Benefit Payments by 5/1/19 Status

BAC 7:49
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 09 

Demonstration of Equitable Distribution 

Effect of Proposed Suspension on the Plan in the Aggregate 

Group Count 

Average 

Monthly Benefit 

Before 

Suspension 

Average 

Monthly Benefit 

After Suspension

PV Reduction in 

Benefits 

All 427 $ 1,046.44 $ 580.86 15,242,586

Retiree 166 $ 1,350.68 $ 879.51 7,910,021

Beneficiary 47 $ 530.27 $ 457.02 343,140

Term. vest 108 $ 1,023.53 $ 336.45 4,658,218

Active 106 $ 822.22 $ 417.09 2,331,207

The above impacts are of the suspension only (not the partition) and are measured based on cash 

flows starting on the proposed effective date of October 1, 2020. Present value is at 6.75%. 

Distribution of Participants by Benefit Reduction Percentage – Aggregate Basis 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 110 25.76% 

0.001% to 10% 98 22.95% 

10.001% to 20% 13 3.04% 

20.001% to 30% 17 3.98% 

30.001% to 40% 17 3.98% 

40.001% to 50% 28 6.56% 

50.001% to 60% 43 10.07% 

60.001% to 70% 51 11.94% 

70.001% to 80% 44 10.30% 

80.001% to 90% 6 1.41% 

90.001% to 100% 0 0.00% 

BAC 7:50
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Distribution of Participants by Benefit Reduction Percentage – Retirees 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 67 40.36%

0.001% to 10% 18 10.84%

10.001% to 20% 7 4.22%

20.001% to 30% 11 6.63%

30.001% to 40% 6 3.61%

40.001% to 50% 17 10.24%

50.001% to 60% 13 7.83%

60.001% to 70% 21 12.65%

70.001% to 80% 6 3.61%

80.001% to 90% 0 0.00%

90.001% to 100% 0 0.00%

Distribution of Participants by Benefit Reduction Percentage – Beneficiaries 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 31 65.96%

0.001% to 10% 8 17.02%

10.001% to 20% 1 2.13%

20.001% to 30% 1 2.13%

30.001% to 40% 1 2.13%

40.001% to 50% 2 4.26%

50.001% to 60% 1 2.13%

60.001% to 70% 1 2.13%

70.001% to 80% 1 2.13%

80.001% to 90% 0 0.00%

90.001% to 100% 0 0.00%

BAC 7:51
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Distribution of Participants by Benefit Reduction Percentage – Inactive Vesteds 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 3 2.78%

0.001% to 10% 18 16.67%

10.001% to 20% 4 3.70%

20.001% to 30% 2 1.85%

30.001% to 40% 2 1.85%

40.001% to 50% 4 3.70%

50.001% to 60% 11 10.19%

60.001% to 70% 23 21.30%

70.001% to 80% 35 32.41%

80.001% to 90% 6 5.56%

90.001% to 100% 0 0.00%

Distribution of Participants by Benefit Reduction Percentage – Actives 

Benefit Reduction 

Percentage Count 

Percentage

of Total 

None 9 8.49%

0.001% to 10% 54 50.94%

10.001% to 20% 1 0.94%

20.001% to 30% 3 2.83%

30.001% to 40% 8 7.55%

40.001% to 50% 5 4.72%

50.001% to 60% 18 16.98%

60.001% to 70% 6 5.66%

70.001% to 80% 2 1.89%

80.001% to 90% 0 0.00%

90.001% to 100% 0 0.00%

Calculation Basis 

Status was determined as of May 1, 2019. For participants not in payment the comparison was 

made as of normal retirement age or current age on May 1, 2019 if later. Current benefits as of 

May 1, 2019 include estimated late retirement factors if applicable. For active members estimated 

benefit accruals and service for the period May 1, 2019 to September 30, 2020 were added 

BAC 7:52
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Effect of Proposed Suspension on the Plan on a Group-by-group Basis 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(a) for these reasons. 

Identification of Factors Taken Into Account 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(b) for these reasons. 

Explanation as to Why No Factors Listed in IRC Section 432(e)(9)(D)(vi)(I) through (XI) 

Were Taken Into Account 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(c) for these reasons. 

Relevance of Factors Not Listed in IRC Section 432(e)(9)(D)(vi)(I) through (XI) 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(d) for these reasons. 

Differences in Treatment Among Groups Result from Reasonable Application of Relevant 

Factors 

The Plan has made the maximum cuts (taking into account applicable limits) to all participants. 

The Plan has also applied for a Partition as well as a suspension. There are not additional 

disclosures required under Rev. Proc. 2017-43, Section 4.04(2)(e) for these reasons. 

BAC 7:53
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 10 

Samples of Notices 

Copies of the Notices and also samples of the individual estimates (without personally identifiable 

information) are attached as Exhibit 10A (BAC 7:55). 

BAC 7:54
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 10A 

NOTICE OF APPLICATION FOR PARTITION FOR 

BRICKLAYERS & ALLIED CRAFTSMEN LOCAL NO. 7 PENSION PLAN 

December 13, 2019 

This notice is to inform you that, on November 26, 2019, the Board of Trustees of the Bricklayers 

& Allied Craftsmen Local No. 7 Pension Plan (“Board of Trustees”) filed a complete application 

with the Pension Benefit Guaranty Corporation (“PBGC”) requesting approval for a partition of 

the Bricklayers & Allied Craftsmen Local No. 7 Pension Plan (“Plan”). The Plan’s Employer 

Identification Number is 34-6666798 and the Plan’s three-digit Plan Number is 001. 

The Board of Trustees has also submitted an application for reduction of benefits under section 

305(e)(9)(G) of ERISA. A copy of the Notice of a Proposed Reduction of Your Pension Benefits 

is included with this mailing. That Notice describes information on how to obtain a copy of the 

application as well as other important information about your benefits from the Plan. 

What is partition? 

A multiemployer plan that is in critical and declining status may apply to PBGC for an order that 

separates (i.e., partitions) and transfers the PBGC-guaranteed portion of certain participants’ and 

beneficiaries’ benefits to a newly-created successor plan. The total amount transferred from the 

original plan to the successor plan is the minimum amount needed to keep the original plan solvent. 

While the Board of Trustees will administer the successor plan, PBGC will provide financial 

assistance to the successor plan to pay the transferred benefits. 

Participants and beneficiaries in the successor plan do not get any better or worse benefits than 

Participants and beneficiaries in the original plan. The reduction of benefits is applied uniformly 

to both plans. 

PBGC guarantees benefits up to a legal limit. However, if the PBGC-guaranteed amount payable 

by the successor plan is less than the benefit payable under the original plan after taking into 

account benefit reductions or any plan amendments after the effective date of the partition, Federal 

law requires the original plan to pay the difference. Therefore, partition will not further change the 

total amount payable to any participant or beneficiary. 

What are the rules for partition? 

Federal law permits, but does not require, PBGC to approve an application for partition. PBGC 

generally will make a decision on the application for partition within 270 days. A plan is eligible 

for partition if certain requirements are met, including: 

1. The pension plan is in critical and declining status. A plan is in critical and declining status

if it is in critical status (which generally means the plan’s funded percentage is less than

65%) and is projected to run out of money within 15 years (or 20 years if there are at least

BAC 7:55
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

twice as many inactive as active participants, or if the plan’s funded percentage is less than 

80%). 

2. PBGC determines, after consulting with the PBGC Participant and Plan Sponsor Advocate, 

that the Board of Trustees has taken (or is taking) all reasonable measures to avoid 

insolvency, including reducing benefits to the maximum allowed under the law. 

3. PBGC determines that: (1) providing financial assistance in a partition will be significantly 

less than providing financial assistance in the event the plan becomes insolvent; and (2) 

partition is necessary for the plan to remain solvent. 

4. PBGC certifies to Congress that its ability to meet existing financial assistance obligations 

to other multiemployer plans (including plans that are insolvent or projected to become 

insolvent within 10 years) will not be impaired by the partition. 

5. The cost of the partition is paid exclusively from PBGC’s multiemployer insurance fund. 

Why are partition and benefit reductions needed? 

The Plan is in critical and declining status, is 24% funded as of May 1, 2019, and is projected to 

become insolvent by 4/30/23. The Board of Trustees has taken reasonable measures to avoid 

insolvency, but has determined that these measures are insufficient and that the proposed partition 

and reduction of benefits combined are necessary for the Plan to avoid insolvency. 

The estimated numbers of participants and beneficiaries whose benefits (or any portion thereof) 

would be transferred, including the number of retirees receiving payments (if any), terminated 

vested participants (if any), and active participants (if any), are as follows: 

 108 terminated vested participants 

 87 retirees receiving payments 

 19 beneficiaries 

 0 active participants. 

All terminated vested participants were selected to defer the financial assistance requested from 

the PBGC. No active participants were selected in order to keep the calculations as straightforward 

as possible. The retirees and beneficiaries to be transferred were selected by starting just under age 

80 (as of October 31, 2020). The plan sponsor then moved down the age groups until the ongoing 

plan was projected to remain solvent. This gave the successor plan a covered group that was neither 

too young nor too old. The resulting ages were about age 65 to age 79. 

If instead the Plan is allowed to become insolvent, the benefits of all participants and beneficiaries 

whose benefits exceed the PBGC-guaranteed amount would be reduced to the PBGC-guaranteed 

amount. 

BAC 7:56
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

What is PBGC’s multiemployer plan guarantee? 

Federal law sets the maximum that PBGC may guarantee. For multiemployer plan benefits, PBGC 

guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan’s monthly 

benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited 

service. PBGC’s maximum guarantee, therefore, is $35.75 per month times a participant’s years 

of credited service. PBGC guarantees vested pension benefits payable at normal retirement age, 

early retirement benefits, and certain survivor benefits, if the participant met the eligibility 

requirements for a benefit before plan termination or insolvency. A benefit or benefit increase that 

has been in effect for less than 60 months is not eligible for PBGC’s guarantee. PBGC also does 

not guarantee benefits above the normal retirement benefit, disability benefits not in pay status, or 

non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or 

severance pay. 

How will I know when PBGC has made a decision on the application for partition? 

If PBGC approves the Board of Trustees’ application for partition, PBGC will issue a notice to 

affected participants and beneficiaries whose benefits will be transferred to the successor plan no 

later than 14 days after it issues the order of partition. You may also visit www.pbgc.gov/MPRA 

for a list of applications for partition received by PBGC and the status of those applications. 

How do I obtain information on the application for approval to reduce benefits? 

The application for approval of the proposed reduction of benefits will be publicly available within 

30 days after the Treasury Department receives the application. See 

https://www.treasury.gov/mpra for a copy of the application, instructions on how to send 

comments on the application, and how to contact the Treasury Department for further information 

and assistance. 

Your Rights to Receive Information about Your Plan and its Benefits 

Your Plan’s Summary Plan Description (“SPD”) will include information on the procedures for 

claiming benefits, which will apply to both the original and successor plans until the Plan provides 

you a new SPD. You also have the legal right to request documents from the original plan to help 

you understand the partition and your rights such as: 

 The plan document, trust agreement, and other documents governing the Plan (e.g., 

collective bargaining agreements); 

 The latest SPD and summaries of material modification; 

 The Plan’s Form 5500 annual reports, including audited financial statements, filed with the 

U.S. Department of Labor during the last six years; 

 The Plan’s annual funding notices for the last six years; 

 Actuarial reports (including reports submitted in support of the application for partition) 

furnished to the Plan within the last six years; 

 The Plan’s current rehabilitation plan, including contribution schedules; and 

BAC 7:57
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Any quarterly, semi-annual or annual financial reports prepared for the Plan by an 

investment manager, fiduciary or other advisor and furnished to the Plan within the last six 

years. 

If your benefits are transferred to the successor plan, you will be furnished a successor plan SPD 

within 120 days of the partition; and the plan document, trust agreement, and other documents 

governing the successor plan will be available for review following the partition. 

The plan administrator must respond to your request for these documents within 30 days, and may 

charge you the cost per page for the least expensive means of reproducing documents, but cannot 

charge more than 25 cents per page. The Plan’s Form 5500 annual reports are also available free 

of charge at http://www.dol.gov/ebsa/5500main.html. Some of the documents also may be 

available for examination, without charge, at the plan administrator’s office, your worksite, or 

union hall. 

Plan Contact Information 

For more information about this Notice, you may contact: 

Bricklayers & Allied Craftsmen Local No. 7 Pension Plan 

33 Fitch Blvd. 

Austintown, Ohio 44515 

(330) 270-0453 

PBGC Contact Information 

Multiemployer Program Division, PBGC 

1200 K Street, NW 

Washington, DC 20005-4026 

Email: Multiemployerprogram@pbgc.gov 

Phone: (202) 326-4000 x6535 

PBGC Participant and Plan Sponsor Advocate Contact Information 

Constance Donovan, PBGC 

1200 K Street, NW 

Washington, DC 20005-4026 

Email: Advocate@pbgc.gov 

Phone: (202) 326-4488 

BAC 7:58
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS 

On December 13, 2019, the Board of Trustees of the Bricklayers & Allied Craftsmen Local No. 7 

Pension Plan (“Plan”) submitted an application to the U.S. Treasury Department for approval to 

reduce benefits under the Plan. This type of benefit reduction is allowed by the Federal law called 

the Multiemployer Pension Reform Act of 2014. 

After discussions with the U.S. Treasury Department, the December 13, 2019 application 

was withdrawn on May 22, 2020 and a new application was submitted on May 29, 2020. This 

was done to take into account the recent COVID-19 crisis which impacted both investment 

returns and the potential work outlook. 

The Plan has also submitted an application with the Pension Benefit Guaranty Corporation 

requesting approval of a partition. That partition is more fully described in the Notice of 

Application for Partition that is also included in this mailing. 

You are getting this notice because you have a pension benefit under the Plan. The end of this 

notice describes the proposed reduction of your monthly payments.

1

 This notice will also 

answer the following questions for you—

1. Why is the Board of Trustees proposing to reduce benefits? 

2. What will happen if the Plan runs out of money? 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

4. What are the proposed reductions in benefits? 

5. What comes next? 

1. Why is the Board of Trustees proposing to reduce benefits? 

The Plan’s actuary estimated that, unless benefits are reduced, the Plan will not have enough 

money to pay benefits in the plan year ending November 30, 2022. This estimate is based on how 

much money the actuary expects the Plan to receive and to pay out each year. The Plan’s actuary 

estimated that, with the reduction of benefits that the Board of Trustees has proposed, the plan 

should not run out of money. 

2. What will happen if the Plan runs out of money? 

If the Plan does not have enough money to pay benefits, then only the amount guaranteed by the 

Pension Benefit Guaranty Corporation (“PBGC”) will be paid. You can find the amount of your 

benefit that is guaranteed by PBGC at the end of this notice. 

1

 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that 

represent Plan participants and to all contributing employers. 

BAC 7:59
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

Under Federal law, the Board of Trustees must apply the following rules to the proposed 

reduction— 

 The total reduction in everybody’s benefits must be estimated to be large enough to keep 

the plan from running out of money but not larger than needed to do that. 

 Your monthly benefit and the benefit of your beneficiary cannot be reduced below 110% 

of the amount guaranteed by PBGC. 

 Disability benefits (as defined under the Plan) cannot be reduced. 

 The benefits of people who are at least 80 years old on October 31, 2020 and their 

beneficiaries cannot be reduced. 

 The benefits of people who are at least 75 years old on October 31, 2020 and their 

beneficiaries are partially protected, and the closer the person is to age 80 the less the 

benefits can be reduced. 

 The reduction of benefits must be spread fairly among the people who have a pension 

benefit under the plan. 

In deciding whether the proposed reduction is spread fairly, the Board of Trustees took into account 

the following: 

 If the Plan only made the maximum reductions described above, the Plan would still run 

out of money. Therefore, the Plan had to take the additional step of applying for a partition. 

The only way to save this Plan is to do both the maximum reductions AND the partition. 

4. What are the proposed reductions in benefits? 

The Board of Trustees proposes the following reduction of benefits: 

The reduction will change benefits to 110% of the PBGC guaranteed level. This reduction will 

apply to all individuals regardless of the percentage of contributions formula in effect at the time 

the individual accrued his or her benefit. The reduction will apply uniformly to all participants, 

beneficiaries, and Alternate Payees under a Qualified Domestic Relations Order that are not 

otherwise exempt due to their age or disability status as described above. Early retirement 

reductions and form of benefit adjustments will apply as well. No person will have his/her benefit 

reduced below 110% of the PBGC guaranteed level. No person will have his/her benefit increase 

due to the new benefit calculation. The proposed suspension is permanent. 

With the combination of the suspension and partition, the Plan actuary projects the plan will 

stabilize and remain solvent. This expectation is based on a number of assumptions – such as 

projected future work hours, contribution rates and investment returns. Even with these and other 

assumptions carefully considered, it is possible that the reduction may not work as intended. 

BAC 7:60
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

5. What comes next? 

Approval or denial of the application by the Treasury Department 

The Treasury Department will review the application to see whether it meets all of the legal 

requirements under Federal law. If the application meets all of those requirements, the Treasury 

Department is required to approve the application. If the application does not meet the legal 

requirements, the Treasury Department will deny the application. 

Even though the December 13, 2019 application was withdrawn and then a new application 

was made at the end of May, 2020, the Treasury Department is expected to make a 

determination by early August, 2020.

You can get information from the Treasury Department 

More information about the proposed benefit reductions and a copy of the application is available 

at www.treasury.gov/mpra. 

The application will be available on that website within 30 days after the Treasury Department 

receives it. The application includes more information about the proposed reduction, including 

details about: 1) the Plan actuary’s certification that the Plan will run out of money (that is, that 

the plan is in “critical and declining status”); 2) how the proposed reduction would satisfy the 

requirement that it be large enough so that the Plan is estimated not to run out of money, while not 

being larger than needed; and 3) the sensitivity of these estimates to the assumptions used. 

The application describes the steps the Board of Trustees has already taken to keep the Plan from 

running out of money and why the Board of Trustees believes that a benefit reduction is the only 

remaining option to keep the plan from running out of money. In addition, the application explains 

why the Board of Trustees believes that the proposed reduction is spread fairly among the people 

who have a pension benefit under the plan. 

The Treasury Department website will also provide updated information on the application, such 

as whether the application has been updated or withdrawn. 

For further information and assistance you can also write to the Treasury Department at the 

following address: 

Department of the Treasury 

Attn: MPRA Office, Room 1204 

1500 Pennsylvania Avenue, NW 

Washington, DC 20220 

You can comment on the application to reduce benefits 

BAC 7:61
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

You will be able to submit a comment on the application by going to www.treasury.gov/mpra. 

Comments may also be mailed to the Department of the Treasury, at the address listed above. All 

interested parties can make comments, and the comments will be publicly available. 

Retiree Representative 

If a plan has 10,000 or more participants, the Board of Trustees must select a retiree representative 

to advocate for the interests of retirees, beneficiaries, and deferred vested participants as part of 

this process. A plan is required to pay the reasonable expenses of the retiree representative. 

The Board of Trustees is not required to select a retiree representative, because the Plan has fewer 

than 10,000 participants. The Board of Trustees has not chosen to select a retiree representative. 

Vote on the proposed benefit reduction 

If the application for the proposed reduction of benefits is approved by the Treasury Department, 

then you will have the opportunity to vote on the proposed reduction. Unless a majority of all 

participants and beneficiaries of the Plan vote to reject the reduction, the Treasury Department 

must allow the reduction of benefits to take effect. This means that not voting counts the same as 

a vote to approve the reduction. 

You may contact PBGC’s Participant and Plan Sponsor Advocate by mail at Pension Benefit 

Guaranty Corporation, Attn: Participant and Plan Sponsor Advocate, 1200 K St., NW, Washington 

DC 20005; by telephone at (202) 229-4448; or by e-mail at advocate@PBGC.gov. 

Your right to see Plan documents 

You may want to review Plan documents to help you understand your rights and the proposed 

reduction to your benefits. The Plan administrator must respond to your request for the following 

documents within 30 days: 

 The Plan document (including any amendments adopted to reflect an authorized reduction 

of benefits), trust agreement, and other documents governing the Plan (such as collective 

bargaining agreements). 

 The Plan’s most recent summary plan description (SPD or plan brochure) and any summary 

of material modifications. 

 The Plan’s Form 5500 annual reports, including audited financial statements, filed with the 

U.S. Department of Labor during the last six years. 

 The annual funding notices furnished by the Plan during the last six years. 

 Actuarial reports, including reports prepared in anticipation of the benefit reduction, 

furnished to the Plan within the last six years. 

 The Plan’s current rehabilitation plan, including contribution schedules, and, if the 

proposed benefit reduction goes into effect, annual plan-sponsor determinations that all 

reasonable measures to avoid running out of money continue to be taken and that the Plan 

would run out of money if there were no benefit reductions. 

BAC 7:62
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Any quarterly, semi-annual or annual financial reports prepared for the Plan by an 

investment manager, fiduciary or other advisor and furnished to the Plan within the last six 

years. 

The Plan administrator may charge you the cost per page to the Plan for the cheapest way of 

copying documents, but cannot charge more than 25 cents per page. The Plan’s Form 5500 Annual 

Return/Report of Employee Benefit Plan is also available free of charge at 

www.dol.gov/ebsa/5500main.html. Some of the documents also may be available for examination, 

without charge, at the Plan administrator’s office, your worksite or union hall. 

Your right to challenge incorrect calculations 

If you think the Plan miscalculated the reduction to your benefits, then you have the right to submit 

a claim to the Plan to have the calculation corrected. The Plan’s summary plan description (“SPD”) 

tells you how to submit a claim. The SPD also describes your right to have a court review the 

Plan’s final decision on your claim. 

If you believe the information used to calculate your estimate at the end of this notice is wrong, 

please contact the Plan office at: 

Bricklayers & Allied Craftsmen Local No. 7 Pension Plan 

33 Fitch Blvd. 

Austintown, Ohio 44515 

(330) 270-0453 

BAC 7:63
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 Receiving Non-Joint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $1490.95 payable as STRAIGHT LIFE. Under the proposed 

reduction your monthly benefit will be reduced to $983.12 beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 25 of credited service under the Plan. 

 You will be 64 years and 2 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $983.12. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $893.75 

BAC 7:64
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 with Actual Late Retirement Receiving Non-Joint 

& Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $3234.81 payable as STRAIGHT LIFE.2 Under the proposed 

reduction your monthly benefit will be reduced to $1101.10 beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 28 years of credited service under the Plan. 

 You will be 65 years and 3 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $1101.10. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $1001.00.

3

2

 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to account 

for your late retirement. 

3

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

BAC 7:65
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 Receiving Joint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $1289.75 payable as 100% J&S. Under the proposed reduction 

your monthly benefit will be reduced to $786.50 beginning on October 1, 2020. Since you are 

receiving a 100% J&S, under the proposed reduction, your beneficiary will receive $786.50 upon 

your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 20 of credited service under the Plan. 

 You will be 62 years and 9 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $786.50. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $715.00. 

BAC 7:66
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 with Actual Late Retirement Receiving Joint & 

Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $904.85 payable as 100% J&S.4 Under the proposed reduction 

your monthly benefit will be reduced to $466.59 beginning on October 1, 2020. Since you are 

receiving a 100% J&S, under the proposed reduction, your beneficiary will receive $466.59 upon 

your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 17 of credited service under the Plan. 

 You will be 72 years and 9 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $466.59. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

4

 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to account 

for your late retirement. 

BAC 7:67
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $424.18.5

5

 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

BAC 7:68
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Beneficiary Under 75 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $2196.33 payable as STRAIGHT LIFE. Under the proposed 

reduction your monthly benefit will be reduced to $1140.42 beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 29 of credited service associated with your benefit under the Plan. 

 You will be 68 years and 1 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $1140.42. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $1036.75. 

BAC 7:69
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Inactive Vested Under Age 62 Reduced 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

If you start receiving your benefit on 4/1/2038 in the form of a Single Life Annuity, your monthly 

benefit without the proposed reduction would be$367.39. Under the proposed reduction your 

monthly benefit in the same form would be reduced to$314.60.67

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 You have 8 years of credited service under the Plan. 

 You will be 44 years and 7 months as of October 31, 2020. 

Additional Information used in your Calculation (based on Plan records) 

 You are 100% vested based on service through April 30, 2019. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $314.60 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

6

 These numbers are just estimates. The actual amount you receive will depend on things like how long you work and when you begin receiving 

payments. For more information, see the Plan’s SPD or contact the Plan Office.

7

 These amounts will be different if you take your benefit in a different form. For example, if you elect the Life-5 Year Certain Annuity form of 

payment, your reduced monthly benefit will be $314.60. If the value of your benefit is $5,000 or less, you will receive your benefit in a single lump 

sum payment. 

BAC 7:70
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $286.00. 

BAC 7:71
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Inactive Vested Normal Retirement Over 62 Reduced 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your benefit without the proposed reduction as of May 1, 2019 in the form of a lifetime annuity is 

$321.87. Under the proposed reduction your monthly benefit in the same form would be reduced 

to $208.76.89

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 You have 7 years of credited service under the Plan. 

 You will be 69 years and 6 months as of October 31, 2020.

Additional Information used in your Calculation (based on Plan records) 

 You are 70% vested based on service through April 30, 2019. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is 208.76. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

8

 These numbers are just estimates. The actual amount you receive will depend on things like how long you work and when you begin receiving 

payments. For more information, see the Plan’s SPD or contact the Plan Office. Because you will be over age 62, when you begin receiving your 

benefit, the Plan will increase the amount to account for your late retirement. 

9

 These amounts will be different if you take your benefit in a different form. For example, if you elect the Life-5 Year Certain Annuity form of 

payment, your reduced monthly benefit will be $201.99. If the value of your benefit is $5,000 or less, you will receive your benefit in a single lump 

sum payment. 

BAC 7:72
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $189.78.10

10 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

BAC 7:73
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Alternate Payee Not in Pay Status Under Age 62 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan considered the Participant’s years of service as of April 30, 2019 and the terms of your 

Qualified Domestic Relations Order (“QDRO”). 

If you start receiving your benefit on October 1, 2033, the Participant’s Normal Retirement Date, 

in the form of a Single Life Annuity, your monthly benefit without the proposed reduction would 

be $287.58. Under the proposed reduction your monthly benefit in the same form would be 

reduced to $214.32.1112

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 The Participant has 18 years of credited service under the Plan. 

 The Participant will be 49 years and 1 months as of October 31, 2020. 

 Your share of the Participant’s credited service under the Plan as of April 30, 2019 is 5.45 

years. This amount is dictated by the terms of your QDRO. 

 As of April 30, 2019, the Participant’s total accrued benefit was $1,078.16. 

 Under the terms of your QDRO, you are entitled to 50% of what is called the “Marital 

Portion” of the participant’s accrued benefit. To figure out the Marital Portion, take the 

number of months of the participant’s participation in the Plan during the marriage (from 

November 1, 1994 to April 29, 2004), and divide it by the total number of months of the 

participant’s participation as of the date of divorce. Multiply the answer times the 

participant’s accrued benefit. You are entitled to 50% of that number. 

11 These numbers are just estimates. The actual amount you receive will depend on things like how long the Participant works and when you begin 

receiving payments. For more information, see the Plan’s SPD or contact the Plan Office.

12 These amounts will be different if you take your benefit in a different form. For example, if you elect the Life-5 Year Certain Annuity form of 

payment, your reduced monthly benefit will be $214.32. If the value of your benefit is $5,000 or less, you will receive your benefit in a single lump 

sum payment. 

BAC 7:74
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 The QDRO also requires that the Participant provide for a Qualified Pre-retirement 

Survivor Annuity. This causes your benefit to be reduced by 2.998%. 

Additional Information used in your Calculation (based on Plan records) 

 The Participant is 100% vested based on service through April 30, 2019. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC), reduced as required by your QDRO. 

 110% of the PBGC guarantee is $214.32, reduced as required by your QDRO. Therefore, 

your benefit amount after suspension would be $214.32. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $194.84. 

BAC 7:75
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Alternate Payee Under 75 with QDRO 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan considered the terms of your Qualified Domestic Relations Order (“QDRO”) and the 

Participant’s years of service as of April 30, 2019. 

Your current monthly benefit is $439.67 payable as Life Annuity with 5 Years Guaranteed annuity. 

Under the proposed reduction your monthly benefit will be reduced to $279.21 beginning on 

October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 7.10 years of credited service associated with your benefit under the Plan. 

 You will be 65 years and 5 months as of October 31, 2020. 

 The portion of your benefit that is based on disability is $0.00. 

 Under the terms of your QDRO, you are entitled to 50% of the participant’s accrued benefit 

as of August 6, 1992. This has been taken into consideration in the calculations included 

in this estimate. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $279.21. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

BAC 7:76
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be 253.83. 

BAC 7:77
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree No Change 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $164.53 payable as STRAIGHT LIFE. Your monthly benefit 

would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records, as of April 30, 2019: 

 You have 12 of credited service under the Plan. 

 You will be 76 years and 8 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $156.39 

BAC 7:78
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Age 75-80 with Actual Late Retirement Receiving Non-Joint 

& Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $87.91 payable as STRAIGHT LIFE.13 Under the proposed 

reduction your monthly benefit will be reduced to $58.99 beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 4 of credited service under the Plan. 

 You will be 75 years and 4 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $54.33. Due to Federal Limitations related to your age 

your benefit will be subject to 93% of the full benefit reduction. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $51.75.14

13 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to account 

for your late retirement. 

14 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

BAC 7:79
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Age 75-80 Receiving Joint & Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $2976.27 payable as 50% J&S. Under the proposed reduction 

your monthly benefit will be reduced to $1691.17 beginning on October 1, 2020. Since you are 

receiving a 50% J&S, under the proposed reduction, your beneficiary will receive $1244.74 upon 

your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 29 of credited service under the Plan. 

 You will be 76 years and 6 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $1140.42. Due to Federal Limitations related to your age 

your benefit will be subject to 70% of the full benefit reduction. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $1036.75. 

BAC 7:80
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Age 75-80 with Actual Late Retirement Receiving Joint & 

Survivor Benefit 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $253.19 payable as 100% J&S.15 Under the proposed reduction 

your monthly benefit will be reduced to $225.85 beginning on October 1, 2020. Since you are 

receiving a 100% J&S, under the proposed reduction, your beneficiary will receive $225.85 upon 

your death. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 5 of credited service under the Plan. 

 You will be 77 years and 7 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC). 

 110% of the PBGC guarantee is $196.62. Due to Federal Limitations related to your age 

your benefit will be subject to 48% of the full benefit reduction. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

15 Because you retired after age 62, when you began receiving your benefit, the Plan increased the amount to account 

for your late retirement. 

BAC 7:81
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $178.75.

16

16 Per PBGC rules, the PBGC would NOT increase your benefit due to late retirement. 

BAC 7:82
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Beneficiary No Change 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $135.33 payable as STRAIGHT LIFE. Your monthly benefit 

would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records: 

 You have 11 of credited service associated with your benefit under the Plan. 

 You will be 75 years and 9 months old as of October 31, 2020. 

 The portion of your benefit that is based on disability is none. 

 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $131.74. 

BAC 7:83
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Under 75 With Portion Based on Disability 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $1,285.95 payable as a Single Life Annuity. Under the proposed 

reduction your monthly benefit will be reduced to $1,273.02 beginning on October 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

 You have 16 years of credited service under the Plan. 

 You will be 62 years and 2 months as of October 31, 2020. 

 The portion of your benefit that is based on disability is $1273.02. 

 The amount of your reduced benefit is equal to 110% of the amount guaranteed by the 

Pension Benefit Guaranty Corporation (PBGC), but will not be lower than the amount of 

your benefit that is based on disability. 

 110% of the PBGC guarantee is $629.20. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be 572.00. 

BAC 7:84
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Retiree Over 80 No Change 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $246.61 payable as STRAIGHT LIFE. Your monthly benefit 

would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records: 

 You have 11 of credited service under the Plan.

 You will be 85 and 10 months old as of October 31, 2020.

 The portion of your benefit that is based on disability is none.

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $215.20. 

BAC 7:85
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

Participant Category: Beneficiary Over 80 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

Your current monthly benefit is $289.65 payable as STRAIGHT LIFE. Your monthly benefit 

would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on October 1, 2020. 

This estimate is based on the following information from Plan records: 

 You have 13 of credited service associated with your benefit under the Plan.

 You will be 88 years and 4 months old as of October 31, 2020.

 The portion of your benefit that is based on disability is $none.

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to a change in your circumstances. For 

example, additional work history, changes in marital status, approval of a new QDRO or changes 

to an existing QDRO, etc. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger 

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $252.98. 

BAC 7:86
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 11 

List of Contributing Employers and Employee Organizations 

Employers Obligated to Contribute Employee Organizations 

Ameriseal & Restoration Bricklayers & Allied Craftworkers Local 7 OH

Beaver Constructors, Inc.

C.R. Hoiles Masonry, Inc.

Cleveland Marble Mosaic

Coon Caulking & Sealants

Crowe Construction

Foti Construction

Gabor Enterprises

Graciano Corp.

Grunwell-Cashero Co.

Hmh Restoration

J & H Concrete

Kapton Caulking & Building

Lencyk Masonry Co., Inc.

Lou Ritenour Decorators

Masonry Contracting Corp.

Medina Glass Block Inc.

Mike Coates Construction

Norm King Construction

Ohio Admin. Distr. Council

R.G. Smith Co. Inc.

Ram Construction Svcs.

Rohr Masonry

Selinsky Force Industrial Services

Stanley Miller Construction

Stitle Construction

United Masonry Construction

Valentine Contractors

Warren Guillard Bricklayers

Western Specialty Contractors

Wilson Restoration

Wischt & Sons Construction

BAC 7:87
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 12 

Past and Current Measures Taken to Avoid Insolvency 

Reductions in Plan Benefits 

Since May 1, 2008, the Plan has taken the following steps to avoid insolvency: 

 Benefit Accrual Rate: The benefit accrual rate for future service was not changed,

since it was already significantly lower than 1% of total contributions.

 Pre-Retirement Surviving Spouse Benefit: Effective May 1, 2009, the cost of the

pre-retirement spouse benefit was paid for by an actuarial decrease in benefits based

on the number of months after May 1, 2009 such coverage was in effect.

 Early Retirement Subsidies: The early retirement reduction factors were changed

from 4% per year to 7% per year, effective May 1, 2009.

 Optional Form of Payment: The normal form of benefit was changed to life only,

instead of a 60-month guaranteed form for retirements on or after May 1, 2009.

 Disability Benefits for Current Active Participants: The disability retirement

pension was eliminated for participants whose disability benefit commencement

dates would have been on or after May 1, 2009.

Contribution Rate Increases 

The hourly contribution rates have increased as shown below. Without a suspension and partition, 

the contribution rate is expected to remain at $6.80 per hour. Expected contribution rates after a 

suspension and partition are assumed to increase by 1% per year beginning May 1, 2021. 

Effective Date Hourly Contribution Rate 

June 1, 2006 $3.55

June 1, 2007 $4.01

September 1, 2008 $4.41

June 1, 2009 $4.81

June 1, 2010 $5.21

June 1, 2011 $5.61

June 1, 2012 $6.01

June 1, 2013 $6.41

June 1, 2014 $6.46

June 1, 2015 $6.66

June 1, 2016 $6.80

BAC 7:88
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 13 

Section 432 Plan Factors 

Plan Factors 

In accordance with Code § 432(e)(9)(C)(ii), the following factors were taken into account in the 

plan sponsor’s determination that all reasonable measures have been taken to avoid insolvency. 

Current and Past Contribution Levels 

Contribution dollars and hours are summarized in the table below: 

The Plan’s Ten-Year Experience for Certain Critical Assumptions 

Year 

Ending 

4/30 

Base 

Units 

(Hours) 

Average 

Hourly 

Rate 

Contributions 

Excluding 

Withdrawal 

Liability Payments 

Withdrawal 

Liability 

Payments 

Return on 

Assets 

(Market Basis)

2009 125,501 $5.15 $646,285 $0 -24.68%

2010 163,420 $4.99 $815,526 $0 29.68%

2011 137,302 $5.40 $741,199 $0 14.16%

2012 154,904 $5.56 $861,825 $0 0.71%

2013 123,783 $6.15 $761,064 $0 8.65%

2014 99,661 $6.75 $672,704 $0 8.27%

2015 145,457 $6.43 $934,649 $0 6.72%

2016 135,899 $5.69 $772,854 $0 -3.48%

2017 91,547 $6.61 $604,875 $0 10.94%

2018 114,761 $6.53 $749,475 $0 8.60%

2019 111,464 $6.71 $723,439 $0 4.02%

The above table shows both hours and contributions net of reciprocity in and out of the Plan. The 

justification of actuarial assumptions contained elsewhere in this application contains more detail 

on recent reciprocity activity. The average hourly rates in the table above do not exactly match the 

Local 7 rates due to the impact of reciprocity. 

Levels of Benefit Accruals 

Benefit accruals were calculated as follows: $1.00 per year of past service plus 4.10% of employer 

contributions made on and after February 1, 1968 and before May 1, 2003; 3.00% of employer 

contributions made on and after May 1, 2003 and before May 1, 2005; 1.00% of employer 

contributions made on and after May 1, 2005 and before May 1, 2006; 1.00% of $2.00 of employer 

contributions made on and after May 1, 2006 and before May 1, 2016; and 0.30% of the first $6.66 

and 1.0% of contributions over $6.66 for employer contributions made on and after May 1, 2016. 

Benefit accrual levels lower than 4.10% were in effect prior to 1999 and were increased over time. 

BAC 7:89
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Prior Reductions of Adjustable Benefits 

 Pre-Retirement Surviving Spouse Benefit: Effective May 1, 2009, the cost of the 

pre-retirement spouse benefit was paid for by an actuarial decrease in benefits based 

on the number of months after May 1, 2009 such coverage was in effect. 

 Early Retirement Subsidies: The early retirement reduction factors were changed 

from 4% per year to 7% per year, effective May 1, 2009. 

 Optional Form of Payment: The normal form of benefit was changed to life only, 

instead of a 60-month guaranteed form for retirements on or after May 1, 2009. 

 Disability Benefits for Current Active Participants: The disability retirement 

pension was eliminated for participants whose disability benefit commencement 

dates would have been on or after May 1, 2009. 

All available adjustable benefit cuts have been made except for the fact that the early retirement 

reduction, while approximately actuarial equivalent at age 55, is slightly more generous than a 

pure actuarial equivalent at ages between age 55 and age 62. The reduction was chosen for ease of 

administration and communication. 

Prior Suspensions of Benefits

None 

Impact on Plan Solvency of Subsidies and Ancillary Benefits Available to Active Participants 

There are no remaining ancillary benefits for active participants. Almost all subsidies for active 

participants have been removed from the Plan as part of the Rehabilitation Plan. 

Compensation Levels of Active Participants Relative to Employees in the Participants’ 

Industry 

Compensation levels of active participants are substantially higher than non-union employees in 

the industry covered by the Plan, particularly when taking into account benefit costs. The 

geographic area covered by the Plan is very small and surrounded by neighboring local unions. As 

a result, it is relatively easy for employees to change their “home” local union. After changing 

their home local unions, members may continue to work in Local 7’s jurisdiction, but the 

contributions are reciprocated out to the appropriate home locals. 

The following tables present historical information on the wage packages (including pension 

contribution rates of Local 7 and the other locals with the majority of reciprocity activity). 

BAC 7:90
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Gross Wage Rate (Journeyman) 

2019 2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $50.25 $48.50 $47.50 $46.50 $45.50 $44.20 2.53%

Local 5 $52.51 $51.40 $50.25 $49.03 $47.81 $46.59 2.36%

Local 6 $46.21 $44.68 $42.33 $41.18 $40.03 $38.88 3.39%

Local 8 $50.07 $49.00 $47.88 $46.58 $45.48 $44.43 2.36%

Local Pension Contribution (Journeyman) 

2019 2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $6.80 $6.80 $6.80 $6.80 $6.66 $6.46 1.01%

Local 5 $7.30 $6.81 $6.32 $5.83 $5.33 $4.83 7.92%

Local 6 $6.14 $5.86 $5.65 $5.45 $5.15 $5.10 3.63%

Local 8 $7.23 $7.23 $7.23 $7.23 $7.23 $7.23 0.00%

The table above shows that, in 2014, the pension contributions for Local 7 were higher than for 

Local 5 and Local 6, but that the difference has decreased over time. This helps to explain the 

lower incidence of members changing home locals in recent years. 

Competitive and Other Economic Factors Facing Contributing Employers

Contributing employers within the Local 7 jurisdiction are facing an increased non-Union presence 

when bidding for work. In addition, neighboring Local Unions have increased their presence in 

the area. Many of those neighboring Locals are not facing the pension issues that Local 7 is facing. 

This gives them the ability to gain and earn work easier than Local 7 contributing employers. 

Finally, due to the fact that the Local 7 fund is facing insolvency, the amount of unfunded liability, 

and therefore potential withdrawal liability, harms the contributing employers and their ability to 

obtain financing from banks, financing that would help them more effectively bid work. 

Impact of Benefit/Contribution Levels on Retaining Active Participants

The current contribution to benefit accrual ratio is extremely small. It is difficult for the Union to 

retain active participants when those participants can switch their Union membership to a 

neighboring Local (with the blessing of the International) and have their pension contributions sent 

to that Local. 

Impact of Past/Anticipated Contribution Increases on Employer Attrition/Retention

Contribution increases have ceased for the time being because contributing employers have 

expressed an inability to pay higher contribution rates within the Local 7 jurisdiction and remain 

competitive. 

BAC 7:91
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Measures Taken to Attract New Contributing Employers 

The Board of Trustees has taken multiple measures to attract and retain contributing employers. 

Shortly after developing the Rehabilitation Plan consisting of multiple schedules with large 

contribution increases, the Board of Trustees realized that forcing the small set of contributing 

employers to adopt the schedules would inevitably force them out of business or, at the very least, 

out of the Plan. 

Similarly, the Board of Trustees reviewed the possibility of continued cuts to benefit accruals and 

the overall benefits package of the Plan. The Board of Trustees feels that too significant a decrease 

in the total compensation received by the active participants would lead the active participants to 

push their employers to withdraw from the Plan. Ultimately, the Board of Trustees removed almost 

all subsidies from the Plan and brought the accrual rate down to a level it felt was as diminished 

as it could afford, while not risking the loss of the remaining contribution base. 

BAC 7:92
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 14 

Description of All Reasonable Measures 

(1) For the 10 plan years immediately preceding the plan year in which the application

is submitted:

(a) Contribution Levels

The Plan considered whether contributing employers and participants could afford

to continue increasing contributions in order to form a rehabilitation plan that did

not use an “exhaustion of all reasonable measures” provision. Such contribution

levels would have been significantly above and beyond what the Plan felt was

reasonable. The contribution levels described in this application were and are the

maximum amount of reasonableness without a partition and suspension.

(b) Levels of Benefit Accruals

Participants in the Plan are already receiving an extremely small accrual. Any

further reduction would be so close to a 0% accrual that contributions to the Plan

would be meaningless, at least as it pertained to growing a participant’s pension.

In order to stop the exodus of participants to other Locals, the Plan determined that

the current accrual rate was as low as the Plan could go.

(c) Prior Reductions of Adjustable Benefits

The Plan cut all adjustable benefits either completely or a significant amount in

2009. The only adjustable benefit cuts that could still be made would have little

impact on the Plan’s funding and would only serve to make the Plan even less

attractive for current and future participants.

(d) Prior Suspensions of Benefits

There have been no prior suspensions of benefits under §432(e)(9).

(e) Measures Undertaken to Retain/Attract Contributing Employers

The Plan has attempted to keep contribution levels as low as possible to make the

Plan attractive to contributing employers. The Local Union has also been active in

attempting to organize employers and also to require Union work on large projects.

The Plan also has left some accrual of benefits so as to make the Plan at least

somewhat attractive to current and future participants. Without these efforts, it is

likely that the number of contributing employers would have dropped even further.

BAC 7:93
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

(2) Impact of Plan Solvency on Subsidies and Ancillary Benefits 

Little to no subsidies and ancillary benefits remain for active participants. Any cuts to the 

remaining subsidies would have little to no impact on the Plan’s funding and would have 

a negative effect on the ability to attract and retain employers and participants. 

(3) Compensation Levels of Active Participants

 

Compensation levels of active participants are substantially higher than non-union 

employees in the industry covered by the Plan, particularly when taking into account 

benefit costs. The geographic area covered by the Plan is very small and surrounded by 

neighboring local unions. As a result, it is relatively easy for employees to change their 

“home” local union. After changing their home local unions, members may continue to 

work in Local 7’s jurisdiction, but the contributions are reciprocated out to the appropriate 

home locals. 

The following tables present historical information on the wage packages (including 

pension contribution rates of Local 7 and the other locals with the majority of reciprocity 

activity). 

Gross Wage Rate (Journeyman) 

2019 2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $50.25 $48.50 $47.50 $46.50 $45.50 $44.20 2.53%

Local 5 $52.51 $51.40 $50.25 $49.03 $47.81 $46.59 2.36%

Local 6 $46.21 $44.68 $42.33 $41.18 $40.03 $38.88 3.39%

Local 8 $50.07 $49.00 $47.88 $46.58 $45.48 $44.43 2.36%

Local Pension Contribution (Journeyman) 

2019 2018 2017 2016 2015 2014

Avg. % 

Increase

Local 7 $6.80 $6.80 $6.80 $6.80 $6.66 $6.46 1.01%

Local 5 $7.30 $6.81 $6.32 $5.83 $5.33 $4.83 7.92%

Local 6 $6.14 $5.86 $5.65 $5.45 $5.15 $5.10 3.63%

Local 8 $7.23 $7.23 $7.23 $7.23 $7.23 $7.23 0.00%

The table above shows that, in 2014, the pension contributions for Local 7 were higher than 

for Local 5 and Local 6, but that the difference has decreased over time. This helps to 

explain the lower incidence of members changing home locals in recent years. 

BAC 7:94
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

(4) Competitive and Other Economic Factors Facing Contributing Employers

Contributing Employers are facing an increased non-Union presence as well as general 

anti-Union animus in the legislatures which impact the Local’s jurisdiction. Add this in 

with the general disinterest shown by the Local’s International Union as to members 

switching Locals and the impact of that action on the Plan’s funding and contributing 

employers are put at a distinct competitive disadvantage. 

BAC 7:95
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 15 

Impact of Contributions 

The Impact of Benefit and Contribution Levels on Retaining Active Participants and 

Bargaining Groups under the Pension Plan 

Decreases in benefit levels under the Pension Plan have drastically reduced union 

membership, participant numbers, and morale. Given the sizable uncredited portion of 

contributions to the Pension Plan, it is generally known by the union members that the 

Pension Plan is in critical and declining status and heading quickly toward insolvency. 

Qualitative data also suggest that union members and members in the other local unions 

have low morale and are pessimistic about the future of the Pension Plan. Continuous 

reductions in pension benefits have caused considerable transfers from Local 7 to other 

neighboring local unions, whose pension plans are not in critical and declining status. 

Quantitative data suggest greater losses in Local 7 than in comparable local unions in the 

northeast Ohio area. For instance, in 2005, based on the U.S. Department of Labor 

statistics, Bricklayers Local 7 had 415 members, compared to 205 members in 2018, a 

decrease of 50.6%. While geographically similar locals also have experienced membership 

losses, their losses have not been as drastic as Local 7’s losses. For instance, Local 6 in 

Canton, Ohio, had 392 members in 2005 and 340 members in 2018, a decrease of only 

13.27%. Similarly, Local 5 in the Cleveland area had 1,563 members in 2005 and 1,159 in 

June 2019, a 25.9% loss. 

All of the neighboring locals have substantial pension plans whose funding percentages far 

exceed that of the Pension Plan. Members of the International Union of Bricklayers and 

Allied Craftworkers are free to join, or transfer, to any local union that they choose. An 

analysis of both qualitative and quantitative data suggests that without drastic changes that 

would stabilize the Pension Plan, insolvency would likely be accelerated due to the ongoing 

flight of the Akron membership to neighboring local unions. In addition to membership 

retention and recruiting problems, knowledge of the Pension Plan and its impending 

insolvency make organizing and retaining union contractors and members a constant 

struggle. 

The Impact of Past and Anticipated Contribution Increases under the Pension Plan on 

Employer Attrition and Retention Levels 

As noted above, the impact of past and anticipated contribution increases under the Pension 

Plan has had a significant detrimental effect on employer retention levels. The Pension Plan 

has lost the following contractors (among others), some of which were the original 

contributors: 

 Frank Brown & Sons

 Duer Construction

 Livigny Construction

BAC 7:96
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Bucky Arnes Construction 

 Moore Masonry 

 Hercules Masonry 

 Greer Masonry 

 Landus Masonry 

 Applegren Masonry 

 Reich Masonry 

 Morgan Masonry 

 Giambrone 

 LMR Construction 

 Miencorp, Inc. 

 Thomarios 

 Trisco Systems 

 Zavarella 

BAC 7:97
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 16 

Proposed Ballot for the Pension Plan 

BALLOT ON THE PROPOSED SUSPENSION OF BENEFITS FOR THE 

BRICKLAYERS & ALLIED CRAFTSMEN LOCAL NO. 7 PENSION PLAN 

The Board of Trustees of the Bricklayers & Allied Craftsmen Local No. 7 Pension Plan sent a 

notice to all active participants, retirees, and beneficiaries in May 2020, setting forth a proposal to 

suspend benefits for certain recipients. It is time to vote on the proposed suspension. But before 

you vote for or against the suspension, you should keep the following points in mind. 

IMPORTANT POINTS TO REMEMBER 

The term “suspend” means that your benefits will be reduced for an indefinite period of time if the 

proposal is approved. The notice you received in May, 2020 described the proposed reduction in 

benefits, the effects of the reduction on each group affected by the proposal, and the factors 

considered by the Board of Trustees in designing the proposal. The Board of Trustees has taken 

this action because it has determined that a reduction in benefits is necessary to avoid insolvency. 

Along with the notice, the Board of Trustees sent each recipient a copy of his or her individualized 

estimate of how the proposed reduction would affect the recipient’s benefit. A copy of the 

individualized estimate is enclosed with this ballot. If you need a copy of the notice that was sent 

before, please contact the Fund Office and another copy will be provided. 

This ballot has been provided to you because you are eligible to vote to approve or reject the 

proposed suspension of benefits. The voting instructions are provided below. Votes must be 

received by in order to be eligible for counting. 

Before you vote, you should consider the following: 

1. The proposed reduction will NOT affect any participant, retiree, or beneficiary who is age

80 or older or who is receiving disability benefits from the Pension Plan.

2. The proposed reduction in benefits will affect all other active participants, retirees, and

beneficiaries.

3. For each retiree who is between the ages of 75 and 80 as of October 1, 2020, the amount

of the reduction will be limited to a percentage of the reduction applied to younger retirees,

with the percentage becoming smaller with each age closer to age 80.

4. The benefits of all Participants described in number (2) above will be reduced to 110% of

the Pension Benefit Guaranty Corporation (“PBGC”) guarantee, which is the maximum

reduction allowable by law. Individuals describe in number (3) above will see a smaller

reduction.

BAC 7:98
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

5. The proposed suspension of benefits, if approved, would apply to benefit payments starting 

on October 1, 2020. 

6. The Pension Plan’s Board of Trustees has determined that if the benefits are not reduced 

as proposed by the Board of Trustees, the Pension Plan will become insolvent by the 2022 

plan year. Needless to say, these projections are partly based on educated guesses and 

assumptions about future contribution levels, investment rates of return, and future work 

hours. Therefore, the projections are subject to some degree of uncertainty. 

7. The Pension Plan’s actuary has certified that if the benefits are not reduced as proposed by 

the Board of Trustees, the Pension Plan will become insolvent by the 2022 plan year. The 

Pension Plan’s actuary has certified that if these reductions are approved and implemented, 

the Pension Plan is projected to avoid insolvency. Again, these projections are partly based 

on educated guesses and assumptions about future contribution levels, investment rates of 

return, and future work hours. Therefore, the projections are subject to some degree of 

uncertainty. 

8. The Plan has also applied to the PBGC for a partition. Information about the partition was 

sent to you in December, 2019. 

9. The Board of Trustees supports the proposed suspension of benefits. The Board of Trustees 

has done everything in its power to avoid these benefit reductions, including reducing 

active participants’ benefits and future accruals and getting active participants to agree to 

increase contributions to the Pension Plan instead of receiving wage increases. However, 

reductions in investment returns, work hours, and employer contributions have forced the 

Board of Trustees to take this action so that the Pension Plan does not become insolvent. 

10. Insolvency of the Pension Plan could result in benefits lower than benefits paid under the 

proposed suspension. A description of the projected benefit payments in the event of 

Pension Plan’s insolvency is provided in the accompanying individualized estimate. 

11. If the Pension Plan were to become insolvent, it would not be able to pay all of the benefits 

promised to all eligible recipients, and benefits paid would be less than the benefit 

reductions under the proposed suspension of benefits. 

STATEMENTS REQUIRED BY FEDERAL LAW 

1. To the best of the Board of Trustees’ knowledge and belief, the ballot does not contain any 

false or misleading information. 

2. The Board of Trustees has provided a description of the proposed suspension and its 

effects, including the effect of the suspension on each category or group of individuals 

affected by the suspension and the extent to which they would be affected. 

3. The Board of Trustees has considered the following four (4) factors in designing the 

proposed benefit suspension: 

BAC 7:99
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 The amount of benefits; 

 The history of benefit increases and reductions for participants and beneficiaries; 

 Any discrepancies between active and retiree benefits; and 

 The extent to which active participants are reasonably likely to withdraw support 

for the Pension Plan, accelerating employer withdrawals from the Pension Plan, 

and increasing the risk of additional benefit reductions for participants in and out 

of pay status. 

4. If approved, the suspension would remain in effect indefinitely. 

5. The proposed suspension has been approved by the U.S. Department of the Treasury, in 

consultation with the PBGC and the U.S. Department of Labor. 

6. The PBGC acts as the guarantor of benefits provided by defined benefit pension plans like 

this one, but only to a certain level. Generally, the benefits that would be paid under this 

proposal would be greater than the benefits guaranteed by the PBGC. If the PBGC were to 

become insolvent, it would not be able to pay the guaranteed benefits, and whatever it could 

pay would be less than what the Pension Plan would pay if it were to become insolvent. 

7. The suspension will go into effect unless a majority of eligible voters vote to reject the 

suspension and that, therefore, a failure to vote has the same effect on the outcome of the 

vote as a vote in favor of the suspension. 

8. The following statements in opposition to the proposed suspension have been compiled 

from comments received pursuant to the solicitation of comments in the Federal Register 

notice with respect to the application. 

 [Opposing comment TBD] 

BAC 7:100
Exhibit 17

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 24: Benefit Payment Reduction

Plan Year End Retirees Beneficiary

Terminated 

Vested Active New Entrants Total

4/30/2020 0 0 0 0 0 0

4/30/2021 359,100 115,268 17,008 0 0 491,376

4/30/2022 607,908 187,244 43,255 0 0 838,407

4/30/2023 599,512 176,673 60,729 0 0 836,914

4/30/2024 590,177 165,955 80,932 0 0 837,064

4/30/2025 579,961 155,168 98,734 0 0 833,863

4/30/2026 568,721 144,399 114,265 0 0 827,385

4/30/2027 556,371 133,737 132,520 0 0 822,628

4/30/2028 542,837 123,274 151,115 0 0 817,226

4/30/2029 528,043 113,094 166,869 0 0 808,006

4/30/2030 511,926 103,274 181,705 0 0 796,905

4/30/2031 494,444 93,870 197,646 0 0 785,960

4/30/2032 475,572 84,937 214,034 0 0 774,543

4/30/2033 455,316 76,513 225,653 0 0 757,482

4/30/2034 433,727 68,624 238,341 0 0 740,692

4/30/2035 410,897 61,288 251,138 0 0 723,323

4/30/2036 386,966 54,507 261,653 0 0 703,126

4/30/2037 362,122 48,274 268,451 0 0 678,847

4/30/2038 336,578 42,572 272,922 0 0 652,072

4/30/2039 310,580 37,373 279,260 0 0 627,213

4/30/2040 284,390 32,647 285,321 0 0 602,358

4/30/2041 258,297 28,368 286,510 0 0 573,175

4/30/2042 232,614 24,505 287,765 0 0 544,884

4/30/2043 207,648 21,036 288,641 0 0 517,325

4/30/2044 183,688 17,933 290,642 0 0 492,263

4/30/2045 160,982 15,171 287,297 0 0 463,450

4/30/2046 139,729 12,729 282,548 0 0 435,006

4/30/2047 120,096 10,581 276,683 0 0 407,360

4/30/2048 102,186 8,708 268,347 0 0 379,241

4/30/2049 86,065 7,087 259,914 0 0 353,066

4/30/2050 71,751 5,698 251,011 0 0 328,460

4/30/2051 59,204 4,522 241,369 0 0 305,095

4/30/2052 48,351 3,537 230,903 0 0 282,791

4/30/2053 39,082 2,723 220,754 0 0 262,559

4/30/2054 31,272 2,061 209,495 0 0 242,828

4/30/2055 24,779 1,533 197,974 0 0 224,286

4/30/2056 19,451 1,116 186,320 0 0 206,887

4/30/2057 15,136 798 174,666 0 0 190,600

4/30/2058 11,687 558 163,180 0 0 175,425

4/30/2059 8,964 381 151,506 0 0 160,851

Benefit Payment Reduction by 5/1/19 Status

BAC 7:101
Exhibit 17

4/30/2060 6,839 254 140,005 0 0 147,098

4/30/2061 5,202 165 128,751 0 0 134,118

4/30/2062 3,951 104 117,812 0 0 121,867

4/30/2063 3,002 65 107,245 0 0 110,312

4/30/2064 2,285 39 97,106 0 0 99,430

4/30/2065 1,745 23 87,453 0 0 89,221

4/30/2066 1,340 12 78,309 0 0 79,661

4/30/2067 1,030 7 69,715 0 0 70,752

4/30/2068 791 4 61,685 0 0 62,480

Notes: 1) PBGC guarantee benefits determined as of 10/1/20

2) Mortality is RP2006 with MP2018 not mass withdrawal mortality

3) Actives are not partitioned. Terminated Vesteds are fully partitioned.

 Retiree and benificiary partition listing supplied seperately.

BAC 7:102
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 18

Assumptions 

Exhibit 18A (BAC 7:104) describes the assumptions used by the actuary for performing 

projections required under Rev. Proc. 2017-43, Sections 3.01, 3.02, 3.03, and 4.02(1). The 

certification of critical and declining status required by Rev. Proc. 2017-43, Section 3.01 was 

prepared before this submission and includes a few assumptions that differ from those used to 

prepare other projections contained herein. These differences are noted and explained. Further 

differences in assumptions are due to expected differences in behavior of the members and 

employers in situations where the plan is or is not insolvent. 

Exhibit 18B (BAC 7:115) describes the development of the 3/31/2020 assets. 

Exhibit 18C (BAC 7:116) provides supporting documentation for certain assumptions including 

the actuary’s rationale for the selection of major assumptions. 

Documents 18A - 18C (BAC 7:104 - BAC 7:129) are based on the actuary’s interpretation of the 

requirements of Revenue Procedure 2017-43, Section 6.03 and Appendix B. 

BAC 7:103
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 18A 

Assumption Development 

Actuarial Assumptions and Methods Used for Projections 

Investment Returns 

 For certification of critical and declining status required by Rev. Proc. 2017-43, Section

3.01 and checklist #5:

Time Period Assumed Rate of 

Return 

5/1/2019 – 4/30/2028 6.00%

5/1/2028+ 7.00%

 For all other projections:

Time Period Assumed Rate of 

Return 

4/1/20 -4/30/20 7.75%1

5/1/2020 – 4/30/2029 5.75%

5/1/2029+ 6.75%

The rates were updated based on Survey of Capital Market Assumptions: 2019 Edition, published 

by Horizon Actuarial Services, LLC. 

Assumed future investment percentages, as provided by Graystone Consulting, are shown below: 

Asset Class Allocation

US Large Cap 35%

US Small/Mid Cap 10%

Non-US Developed 18%

US Fixed - Core 30%

Treasuries/Cash 1%

Hedge Funds 6%

Since most assets are liquid, no change in investment mix was assumed over time. 

Mortality 

Mortality was assumed to follow the RP-2006 blue collar mortality tables projected generationally 

using the MP-2018 projection scale. Sex-distinct mortality rates were used for males and females. 

1

 Based on preliminary actual investment information and estimated other cashflows. 

BAC 7:104
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

The employee tables were used for all participants not in pay status while the healthy annuitant 

tables were used for all participants in pay status. 

No adjustments (such as set-forwards or rate multipliers) were applied. 

Other Demographic Assumptions 

 Withdrawal 

Ultimate rates of withdrawal are assumed to follow table T-8 (less GAM-51 mortality) 

from The Actuary’s Pension Handbook., but modified starting at age 49 in order to account 

for the incidence of disability. (Since the Plan does not provide a special a disability benefit, 

it was assumed that disabled participants would receive a withdrawal or retirement benefit, 

as appropriate). The complete table is shown below: 

Age

 Withdrawal 

 Rate Age

 Withdrawal 

 Rate Age

 Withdrawal 

 Rate 

20 0.119384 35 0.105540 50 0.053166

21 0.118807 36 0.103702 51 0.046026

22 0.118208 37 0.101635 52 0.038798

23 0.117584 38 0.099328 53 0.031717

24 0.116930 39 0.096769 54 0.025038

25 0.116242 40 0.093957 55 0.018990

26 0.115515 41 0.090862 56 0.013749

27 0.114745 42 0.087459 57 0.010000

28 0.113924 43 0.083754 58 0.010000

29 0.113046 44 0.079749 59 0.010000

30 0.112095 45 0.075447 60 0.010000

31 0.111053 46 0.070816 61 0.010000

32 0.109903 47 0.065810 62 0.010000

33 0.108617 48 0.060394 63+ -

34 0.107172 49 0.054556

BAC 7:105
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Additionally, special select rates are applied during the first 3 years that a participant is 

reported: 

Year 

Reported

Select 

Withdrawal

Rate 

First 0.35

Second 0.35

Third varies2

For retirement after withdrawal, all current actives are assumed to retire at age 59. Age 59 

is representative of the benefit weighted average retirement age from inactive vested status 

over the last 5 years. Our valuation software does not allow for retirement rates in this 

situation. The liability related to actives who withdrawal is about 1% of total plan liabilities 

and is not material. 

Here is the data to support the age 59 assumption: 

PYE

Retirements 

from IV

Average 

Ret Age

$Weighted 

Avg Ret Age

4/30/2019 2 5,170 58.0 58.6

4/30/2018 6 7,512 61.8 60.7

4/30/2017 3 2,497 61.0 60.4

4/30/2016 1 2,296 57.0 57.0

4/30/2015 0 0 0 0

TOTAL 12 17,476 60.6 59.575

 Disability 

Since the Plan does not provide disability benefits no disabilities are assumed, however, 

withdrawal rates have been adjusted to account for disability incidence (see note in 

withdrawal section above). 

2

 For purposes of 3.01 and checklist #5 (the 2019 PPA certification), a rate of 0.20 was used; for all other purposes, 

0.35 was used. When the 2019 actuarial valuation was completed, this assumption was updated from 0.20 to 0.35 

based on analysis of experience through 4/30/2019. 

BAC 7:106
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Retirement – Participants who are Active as of 5/1/2019

For active participants, the following rates of retirement are assumed to apply:

Age 

Retirement 

Rate 

55 0.15

56 0.05

57 0.05

58 0.10

59 0.20

60 0.30

61 0.40

62+ 1.00

No late retirement factors were applied to active participants. It was assumed that their 

accrued benefit is always greater than their benefit at NRA with a late retirement factor 

adjustment. 

 Retirement – Inactive Vested Participants

o For purposes of the certification of critical and declining status required by Rev.

Proc. 2017-43, Section 3.01 (checklist #5) and the 2019 valuation report furnished

pursuant to Rev. Proc. 2017-43, Section 7.10 (checklist #41), inactive vested

participants were assumed to commence benefits according to the following table:

Criteria 

Assumed 

Commencement 

Age 

Terminated prior to 5/1/1997 Normal retirement 

age

Terminated after 5/1/1997 with 

less than 10 years of service

Normal retirement 

age

Terminated after 5/1/1997 with 

less 10+ years of service Age 59 

BAC 7:107
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

o For all other purposes, inactive vested participants were assumed to commence 

benefits in accordance with the following table of retirement rates: 

Age 

Retirement 

Rate 

55 0.10

56 0.05

57 0.05

58 0.10

59 0.10

60 0.15

61 0.15

62 0.25

63 0.15

64 0.15

65 0.15

66 0.50

67+ 1.00

No late retirement factors were applied to inactive vesteds. This gives correct PBGC 

guarantee values and has minimal impact on MPRA suspension values. 

The inactive vested retirement assumption was changed following the completion of the 

certification of critical and declining status required by Rev. Proc. 2017-43, Section 3.01 

(checklist #5) in order to more accurately reflect exact cash flow projections for the longer 

period after the current projected insolvency date. 

 Percent Married 

The critical and declining status certification and all actuarial valuation reports prior to 

2019 included an assumption that 100% of participants are married at retirement. The other 

projections contained herein use a 75% married assumption. 

For all J&S 50% and J&S 100% projection runs, we assumed 100% married. For all Life 

Annuity projection runs, we assumed 64.29% married. The overall 75% married 

assumption was not applied until the final blending of the projected benefit payouts for the 

cash flows. 

Female spouse is always assumed to be 3 years younger than the male spouse, unless actual 

age is known as is the case for all payees. 

BAC 7:108
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Assumptions Regarding Form and Commencement Age of Benefits 

 “Take Up” Rate of Benefit Form Election 

o For purposes of the certification of critical and declining status required by Rev. 

Proc. 2017-43, Section 3.01 (checklist #5) and the 2019 valuation report furnished 

pursuant to Rev. Proc. 2017-43, Section 7.10, all future retirees were assumed to 

elect a life annuity. 

o For all other purposes, future retirees were assumed to elect benefit forms according 

to the following table. Note that, in addition to the 3 assumed forms of payment in 

the table, the plan also provides for life-5 year certain and joint & 75% survivor 

options, which were not valued. It was determined that valuing all 5 possible 

optional forms would not yield a material improvement in the accuracy of the 

projections. 

Benefit Form 

Married 

Participants 

(75% 

Assumed) 

Single 

Participants 

(25% 

Assumed) 

Life annuity 60% 100%

Joint & 50% survivor 20% n/a

Joint & 100% survivor 20% n/a

The change in assumption was made to more accurately reflect future cash flows for the 

longer period after the current projected insolvency date. 

The popup feature for the Joint & Survivor forms of benefit is unsubsidized. For all 

projection runs for actives, inactive vesteds, and new entrants, the 50% effective rate was 

changed to 84.87% for all Suspension Benefit value runs and 85.51% for all PBGC 

Guaranteed Benefit value runs. These revised rates are the average effective rates for our 

inactive vesteds based on the data calculated in our census data. It was necessary to use 

just one effective rate in our projection runs because our software does not permit rates 

varying by individual. 

 Pre-retirement Death Benefit Coverage 

The plan provides that, unless a participant explicitly waives pre-retirement death benefit 

coverage, such coverage will be “paid for” via a reduction in the participant’s accrued 

benefit. For purposes of the 2019 critical and declining certification, projections assumed 

no pre-retirement death benefit coverage (implicitly assuming that any pre-retirement death 

benefits would be offset by the associated reduction in accrued benefits). For all other 

projections contained herein (including the 2019 valuation report furnished pursuant to 

Rev. Proc. 2017-43, Section 7.10), an explicit married percentage of 75% is assumed and 

all married participants are assumed to elect pre-retirement death coverage. 

BAC 7:109
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Assumptions Regarding Missing or Incomplete Data 

 Assumption Regarding Terminated Vested Participants Beyond Normal Retirement Age 

Absent explicit information to the contrary, all known inactive vested participants were 

assumed to be alive. 

New Entrant Profile 

 The new entrant assumption is the same for all projections that use explicit new entrants. 

Distribution of assumed future new entrants by age and sex are as follows: 

Age Sex Distribution 

25 M 28%

30 M 18%

35 M 9%

40 M 15%

45 M 9%

50 M 8%

55 M 13%

 Future new entrants joining the plan during the plan year ending 4/30/2020 were assumed 

to work 991 hours during their initial year of participation. Subsequent years’ hours were 

adjusted on the same basis as plan-wide hours. New entrants joining the plan in subsequent 

years were assumed to work the same number of hours in each year as a member of the 

initial cohort works in such year. 

 For purposes of the critical and declining status determination required by Rev. Proc. 2017-

43, Section 3.01 and checklist #5, no explicit new entrant profile was used. Normal cost 

was assumed constant and was used to indirectly estimate any emerging benefit payment 

streams due to new entrants prior to insolvency. These projections are effectively 

superseded by the more robust projections contained elsewhere in the filing. 

Contribution Rates 

 Projections without a partition (i.e., those required by Rev. Proc. 2017-43, Sections 3.01 

and 3.03 checklists 5 and 7) assume the current $6.80 per hour average contribution rate 

for all future years. 

 For all projections with a successful partition (those required by Rev. Proc. 2017-43, 

Sections 3.02, 40.2(1) and 6.06 checklists 6, 9 and 28), the contribution rate is assumed to 

increase by 1% per year beginning May 1, 2021. 

BAC 7:110
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Contribution Base Units 

 For purposes of the critical and declining status certification required by Rev. Proc. 2017-

43, Section 3.01 and checklist 5, future hours were assumed to be 90,000 for all years. This 

assumption does not reflect a partition. The assumption was representative of expected 

average hours worked until insolvency. 

Most projections in the 2019 valuation report furnished pursuant to Rev. Proc. 2017-43, 

Section 7.10 assume 99,100 hours for all years, which was based on participant-level 

assumptions of 1,200 hours per current vested member and 650 hours per current nonvested member. These hours assumed per person were adjusted so that the total hours were 

close to Trustee expectations. This allows valuation output to be more directly used in all 

calculations.

 For all other projections (other than those contained in the critical and declining status 

certification required by Rev. Proc. 2017-43, Section 3.01 and checklist 5 and in prior 

valuation reports), hours worked for the plan year ending 4/30/2020 are assumed to be 

103,100. This estimate derives from the 5/1/2019 valuation assumption of 99,100 hours 

with an additional 4,000 hours assumed for members who work less than 435 hours and do 

not become participants. 

Subsequent years’ hours are assumed to trend as follows: 

o In scenarios without a partition (i.e., those required by Rev. Proc. 2017-43, Sections 

3.01 and 3.03 checklists 5 and 7), hours were assumed to decline by 6% per year in 

our initial baseline. In addition, due to the likely impact of the COVID19 pandemic 

hours for plan year ending 4/30/21 were reduced 35% from this baseline and hours 

in plan year ending 4/30/22 were reduced 10% from baseline. Finally, hours in plan 

years beginning 5/1/22 and later were reduced 5% from the baseline. 

o In scenarios with a successful partition (those required by Rev. Proc. 2017-43, 

Sections 3.02, 40.2(1) and 6.06 checklists 6, 9 and 28), hours were assumed to 

decline by 1% per year in our initial baseline. In addition, due to the likely impact 

of the COVID19 pandemic hours for plan year ending 4/30/21 were reduced 35% 

from this baseline and hours in plan year ending 4/30/22 were reduced 10% from 

baseline. Finally, hours in plan years beginning 5/1/22 and later were reduced 5% 

from the baseline. 

We realize that, under this set of assumptions, a given year might be projected to see one 

level of hours under the no-partition scenarios and a different level under the partition 

scenarios. A constant decline was assumed for computational simplicity. In reality, under 

scenarios with insolvency there is likely to be a larger decline at the year of insolvency. 

We believe a constant decline of 6% per year is reasonably similar to a lower decline before 

BAC 7:111
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

insolvency plus a shock decline in the insolvency year and then 6% declines after 

insolvency. 

 For all projections other than the critical and declining status certification required by Rev. 

Proc. 2017-43, Section 3.01 and checklist 5, individual (current) active participants were 

assumed to work 1,200 hours per year if they were vested and 650 hours per year otherwise. 

However, these numbers were pro-rated (within the valuation system) in order to conform 

the total hours worked by the entire population under the above assumptions. The assumed 

hours assumption for active participants was increased from the 2018 actuarial valuation 

based on an analysis of subsequent hours experience. 

 For all cash flow projections, contribution values come directly from the valuation 

software. The valuation software deals with decreases on a headcount basis, not a total 

hours basis. There are different hours per person assumptions for vested and non-vested 

current members and for new entrants. This is a source of slight distortion versus the 

described assumption. We thought it was important to use contributions from the actual 

runs to tie directly to the related liability projections. 

Future Benefit Accrual 

No change in future benefit accrual was assumed even in the case of insolvency. Employers will 

still be obligated to contribute to the fund and will want to provide continued accrual. The current 

benefit formula for a member who works 1,200 hours annually provides a benefit of about $25.66 

per year of service, which is significantly less than the maximum PBGC guarantee. 

Withdrawal Liability Payment 

 

No future withdrawal liability payments were assumed. 

Administrative Expenses 

 The basic schedule of assumed administrative expenses is as follows: 

Period Assumed Expenses 

4/1/2020 through 4/30/2020 $49,000

Plan year ending 4/30/2021 $250,000

Plan year ending 4/30/2022 $115,000

On and after 5/1/2022 Prior year’s assumption increased by 2.5%

 For scenarios with a partition, the annual expenses from the basic schedule above are 

increased by $10,000 to reflect the additional complexity of maintaining separate records 

for 2 plans. In the plan year ending 4/30/21 the PBGC was assumed to pay $22,031 

reflecting short year and exclusion of many one-time expenses. In plan years ending 

4/30/22 through 4/30/31 the ongoing plan is assumed to pay the first 35% of expenses with 

BAC 7:112
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

the remaining expense split by head count. Beginning with the plan year beginning 5/1/31 

the ongoing plan initial piece is lowered to 25% as the PBGC will assume responsibility 

for its share of PBGC premiums. The expense percentages where determined based on 

recent past expenses and allocating the full cost certain expenses such as actuarial and audit 

to the ongoing plan. Finally, a limit on the total expense amount of 14.51% of total benefit 

payments was applied. This cap first has an impact in the plan year beginning 5/1/40. 

 For scenarios leading to insolvency, the annual expenses from the basic schedule above are

decreased by $20,000 in the year immediately following insolvency to reflect decreased

PBGC premiums and lower professional costs. The savings in the first year of insolvency

are assumed to be offset by one-time costs at initial insolvency.

Rationale: Without fees for the 2016 suspension application or the initial stages of this partition 

application, recent administrative expenses have been between $100,000 and $110,000 

annually, including PBGC premiums of approximately $12,000. The expected 2022 expenses 

reflect that level plus inflation. 

Market Value of Assets as of 3/31/2020 data sources and adjustments 

Unaudited market assets as of 3/31/2020 were provided by the fund administrator and the 

investment consultant. Audited assets as of 4/30/2019 were available from both the administrator 

and the auditor. We studied the differences between prior audited and unaudited financial 

statements and found that, historically, the differences in net market value have been small and 

have primarily involved payables and receivables. The administrator confirmed that no 

adjustments to these items are typically booked between audits. Our final value of net assets 

available for benefits as of 3/31/2020 was based on invested asset values provided by the 

administrator and receivable and payable amounts as of 4/30/2019. The development of the 

3/31/2020 assets is shown in Exhibit 18B of this application. That exhibit also shows the 

development of the estimated return for the month of April 2020. 

Projection Methodology 

 The DBVal valuation system was used to perform all actuarial projections, unless

otherwise disclosed. Additional calculations were performed using Microsoft Excel.

 As discussed above, for purposes of the certification of critical and declining status

certification furnished under Rev. Proc. 2017-43, Section 3.01 and checklist 5, “take up”

rates of optional forms of benefit were not used.

 No data grouping techniques were used.

 The following changes to the cash flow projections were incorporated:

o All included scenarios used pre-partition cash flows for actives from the 6% decline

in hours scenario. We believe the modest difference in accrued benefits during the

BAC 7:113
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

period 5/1/2020 through 9/30/2020 between the 1% and 6% decline scenarios has 

almost no impact on such cash flows. 

o Cash flows for actives and terminated vested participants prior to partition or

insolvency were estimated based on runs with different assumed mortality since the

period before insolvency is short and the impact is immaterial.

o Inactive vested participants were processed in separate runs in order to properly

value the desired retirement decrements. No pre-retirement withdrawal or

disability rates were assumed for these runs.

o For each plan design scenario, 3 active-only runs (one for each form of benefit), 3

inactive vested-only runs (one for each form of benefit), and one pay status run

were done. The projected benefit payments from these runs were blended, along

with projected benefits from assumed new entrants, to produce the final stream of

benefit payments.

o Benefit payments from the valuation system output are given as of the beginning

of each plan year. These were multiplied by a one-half year interest adjustment

factor to produce cash flows.

o For purposes of the certification of critical and declining status required by Rev.

Proc. 2017-43, Section 3.01 and checklist 5, active participant cash flows from the

valuation system were adjusted for contribution rate and total hours. Similar

adjustment is also made for some of the graphs in the valuation reports furnished

pursuant to Rev. Proc. 2017-43, Section 7.10. For all other purposes, these

adjustments were handled within the valuation system.

o For purpose of the certification of critical and declining status under Rev. Proc.

2017-43, Section 3.01 expected benefit payments were only available in total.

Amounts by status were estimated using ratios from the calculation under Rev.

Proc. 2017-43, Section 3.03.

BAC 7:114
Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798Exhibit 18BDevelopment of 3/31/20 Market Value of Assets

Audited assets Admin assets asset accounts Adjusted Preliminary 

4/30/2019 4/30/2019 3/31/2020 3/31/2020 4/30/2020 COMM

Investments at fair value 9,009,920 9,006,240 6,014,507 6,014,507 6,267,909receivable contributions 174,707 165,420 160,730 131,030 est. COreceivable interest and dividend 6,361 0 6,361 6,361prepaid assets 10,052 12,192 10,052 10,052cash and cash equiv 404,871 404,871 314,922 314,922 327,699SUBTOTAL 9,605,911 9,588,723 6,329,429 6,506,572 6,743,051Accounts payable reciprocity 68,025 56,228 56,288 63,944 55,100 est. COAccounts payable other 4,230 1,203 2,801 20,230 43,230 profesNet assets available for benefits 9,533,656 9,531,292 6,270,340 6,422,399 6,644,721Reconcile 3/31 to 4/30Beginning 3/31 6,422,399Ben pay -249,146 From 5/1/19 valuation reportadmin exp -49,000Contributions 29,212 one month return 50% of 103,100 hours/12invest earnings 491,257 7.81% invest consult estimate was 8.5% on invested assetsNet change 222,323End 4/30 6,644,721

BAC 7:115
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 18C 

Supporting Documentation 

Actuarial Assumptions and Methods Used for Projections 

Supporting Documentation for Selection of Certain Assumptions 

Investment Returns 

 Components of the target portfolio used in the projections expressed in terms of the asset

classes used for setting the plan’s investment policy. Note that all of these asset classes

are permissible asset classes as listed in Appendix B of Rev. Proc. 2017-43. The mix of

assets is not projected to vary over time.

Asset Class 

Target 

Allocation 

US Large Cap 35%

US Small/Mid Cap 10%

Non-US Developed 18%

US Fixed - Core 30%

Treasuries/Cash 1%

Hedge Funds 6%

 Net investment return assumptions used for deterministic projections

o The net investment return assumptions used for deterministic projections were

based on:

 The expected net returns, standard deviations, and correlations from the

Survey of Capital Market Assumptions: 2019 Edition as detailed in

Document 6A1. Short-term assumptions from the survey were assumed to

apply to plan years ending prior to May 1, 2029 and the long-term

assumptions were used thereafter.

 The assumed investment allocations as described in the preceding section.

o Portfolio returns were modeled using the preceding target asset allocation and

capital market assumptions. The final short and long-term assumptions (shown

below) were selected based on the observed median geometric average portfolio

returns over a 10-year period for the short-term assumption and over a 20-year

period for the long-term assumption.

BAC 7:116
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PYE 2020-2029 PYE 2030 and later 

Assumed Interest Rate 5.75% 6.75% 

o Since the capital market returns provided in response to the Horizon survey 

included the effects of inflation and were net of investment-related expenses, we 

did not employ an explicit inflation or investment expense assumption. 

Demographic Experience 

 Experience Studies 

UAS does not typically perform formal experience studies for our clients. We assess the 

appropriateness of assumptions by looking at 5-year histories of demographic experience 

(expected versus actual exits by cause) and aggregate liability gain or loss relative to the 

size of accrued liability. 

Due to the small size of the Plan we have provided 10 years of experience below even 

though 5 years were often used in assumption setting. If an assumption looks questionable, 

we perform an internal demographic experience study. The expected values in the tables 

below are relative to the assumption used for the valuation that year not to current 

assumptions. The size of this Plan means actual experience is not fully creditable and can 

be volatile. 

A 10-year history of demographic experience is provided below: 

PYE 

4/30:

Expected and Actual Exits From Active Status Due To: 

Retirement (Net) Withdrawal 

Expected Actual Expected Actual 

2019 6.3 2 9.5 14

2018 4.7 2 6.6 (3)

2017 2.3 1 10.2 24

2016 0.9 3 14.3 36

2015 1.6 1 6.9 (8)

2014 2.0 5 9.8 24

2013 3.9 5 11.9 16

2012 2.2 1 12.1 6

2011 4.8 5 13.3 21

2010 2.3 4 10.9 13

BAC 7:117
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PYE 

4/30:

Expected and Actual Deaths by Status 

Actives Inactive Vesteds Retirees 

Expected Actual Expected Actual Expected Actual 

2019 0.3 0 0.7 2 10.1 11

2018 0.2 1 0.6 0 9.8 11

2017 0.4 0 0.7 0 13.6 13

2016 0.3 0 0.5 0 11.4 10

2015 0.2 0 0.5 0 11.6 16

2014 0.3 0 0.6 0 11.4 11

2013 0.3 0 0.6 2 11.0 9

2012 0.3 0 0.7 1 9.7 10

2011 0.3 0 0.9 0 9.1 9

2010 0.3 0 0.8 1 8.4 6

 Liability Gain/Loss Analysis 

Liability gains/losses for the last 10 years, both as a dollar amount and as a percentage of 

accrued liability, are shown below. Keep in mind these gains and losses also include the 

impact of the assumed hours per member (i.e., the effect of benefit accruals for the plan 

year being greater or less than was assumed in the prior year’s valuation report). 

 Percentage of Plan Population That Is Married 

For the 10 plan years ending April 30, 2010-2019, 74 people commenced retirement 

benefits. Of these, 55, or 74.3%, were married and, on average, the male spouse was 2.5 

years older than the female spouse. There were no same-sex married couples reported. 

PYE 

4/30:

Liability (Gain)/Loss 

As $ Amount

As % of 

Liability

2019 $ 120,513 0.30%

2018 (186,836) -0.48%

2017 1,075,847 2.95%

2016 821,780 2.26%

2015 (298,189) -0.85%

2014 98,493 0.28%

2013 (35,147) -0.10%

2012 93,534 0.27%

2011 143,822 0.41%

2010 515,601 1.49%

BAC 7:118
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Distribution of Optional Form Elections 

The distribution of optional form elections at retirement for the plan years ending April 30, 

2010-2019 is shown below. Note that the life-five year certain and joint & 75% survivor 

options were not valued. 

Benefit Form 

Married 

Participants 

Electing 

Single 

Participants 

Electing 

Life annuity 52.73% 68.42%

Life-five year certain 7.27% 31.58%

Joint & 50% survivor 20.00% 0.00%

Joint & 75% survivor 3.64% 0.00%

Joint & 100% survivor 16.36% 0.00%

 Rates of Retirement by Age 

Retirement experience for actives based on the plan years ending April 30, 2010-2019 is 

summarized below: 

Age Exposure Retirements Rate 

55 32 4 12.5%

56 28 3 10.7%

57 25 0 0.0%

58 23 1 4.3%

59 23 6 26.1%

60 16 5 31.3%

61 10 0 0.0%

62 10 8 80.0%

63 2 1 50.0%

64 2 0 0.0%

65 1 0 0.0%

66 2 1 50.0%

67 0 0 n/a

68 0 0 n/a

69 0 0 n/a

70 0 0 n/a

>70 0 0 n/a

BAC 7:119
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Retirement experience for inactive vested participants based on the plan years ending April 

30, 2010-2019 is summarized below. Note that the exposures for ages 55-64 do not include 

participants with less than 10 years of service as such participants are not eligible to retire 

early. 

Age Exposure Retirements Rate 

55 13 0 0.0%

56 22 2 9.1%

57 18 3 16.7%

58 16 0 0.0%

59 11 1 9.1%

60 10 1 10.0%

61 6 2 33.3%

62 33 4 12.1%

63 40 3 7.5%

64 23 3 13.0%

65 14 6 42.9%

66 23 5 21.7%

67 12 1 8.3%

68 8 2 25.0%

69 8 2 25.0%

70 5 1 20.0%

>70 9 1 11.1%

Observation: Many of the retirements after age 62 were part of a one-time data clean up in 

2015 and involved short service participants. 

BAC 7:120
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Rates of Withdrawal by Age 

Withdrawal experience (net of rehires) for actives based on the plan years ending April 30, 

2010-2019 is summarized below: 

Age 

Rang

e 

Exposure 

(>2yrs 

svc) 

Net 

Withdrawa

l Rate 

<20 0 0 0.0%

20-24 14 1 7.14%

25-29 58 12 20.69%

30-34 94 9 9.57%

35-39 131 16 12.21%

40-44 174 15 8.62%

45-49 211 8 3.79%

50-54 197 9 4.57%

55-59 23 6 26.09%

60+ 13 1 7.69%

The above table includes only those participants with 3 years of service as of the valuation 

date. Experience in the first three years of employment is summarized below. 

Service Exposure

Net 

Withdrawal Rate 

0 7 1 14.29%

1 85 33 38.82%

2 91 32 35.16%

Mortality Assumptions 

 Experience Study Underlying Mortality Rates 

The vast majority of participants in the plan are employed in the construction industry as a 

bricklayer. As such, they would be classified as blue-collar workers. Therefore, we 

selected the blue-collar tables of the RP-2014 Mortality Tables Report issued by the 

Society of Actuaries as the basis for the mortality assumption. We believe this table is 

representative of the expected mortality experience under the plan. 

BAC 7:121
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 Process Used to Construct Tables 

As we have selected the blue-collar tables of the RP-2014 Mortality Tables Report issued 

by the Society of Actuaries as the basis for the mortality assumptions, we refer the reader 

to the text of this study for a detailed description of how the tables were constructed. The 

report can be found here: 

https://www.soa.org/globalassets/assets/files/research/exp-study/research-2014-rpreport.pdf 

 Mortality Adjustments 

No adjustments were applied to the blue-collar tables found in the RP-2014 study. 

 Mortality Improvement 

We used the Society of Actuaries’ MP-2018 improvement scales to project mortality rates 

generationally. 

New Entrant Profile 

 The distribution of ages of new entrants over the past 5 years appears below: 

Age 

Range 

Percentage of New Entrants for PYE 4/30: 

2019 2018 20171 2016 2015 

<20 0.00% 16.67% n/a 0.00% 3.03%

20-24 12.50% 8.33% n/a 13.04% 9.09%

25-29 0.00% 16.67% n/a 21.74% 9.09%

30-34 25.00% 16.67% n/a 8.70% 24.24%

35-39 12.50% 16.67% n/a 13.04% 3.03%

40-44 12.50% 0.00% n/a 21.74% 15.15%

45-49 0.00% 8.33% n/a 4.35% 15.15%

50-54 25.00% 8.33% n/a 4.35% 6.06%

55-59 0.00% 0.00% n/a 8.70% 12.12%

60+ 12.50% 8.33% n/a 4.35% 3.03%

 New entrants generally do not enter the plan with vesting or benefit service. This is 

because: 

o Reciprocity agreements are typically of the “money-follows-man” type, so 

participants generally cannot come in with vesting service earned in another plan 

that carries over to this Plan under a “pro-rata” reciprocity agreement. 

1

 There were no new entrants for the plan year ended 4/30/2017 

BAC 7:122
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

o If the plan is designated as a home fund under a money-follows-man agreement, 

the employee must first become a participant in the plan, so he/she would not be a 

new employee when contributions are transferred in. 

o Furthermore, contiguous non-covered service is extremely rare as the plan does not 

allow a termination to occur between the non-covered and covered service. 

Contribution Base Units and Employer Withdrawals 

 Employers That Contributed Over 5% 

Information on the employers that made more than 5% of total plan year contributions 

during the last 6 plan years (plan years ending April 30, 2014-2019) appears below. Note 

that contribution information by employer was not readily available for the preceding 4 

years (2010-2013). 

PYE 

4/30: Employer Name 

Percent 

of Total 

2

 Hours

Average 

Contribution 

Rate 

Total 

Contribution

2019 Company A 26.56% 36,386 $6.81 247,722

2019 Company B 10.51% 14,363 $6.82 98,011

2019 Company C 7.04% 9,656 $6.80 65,661

2019 Company D 12.24% 16,782 $6.80 114,118

2019 Company E 7.05% 9,664 $6.80 65,715

2019 Company F 5.14% 7,050 $6.80 47,937 

2018 Company A 22.26% 29,813 $6.80 202,727

2018 Company B 17.13% 22,787 $6.85 156,029

2018 Company C 8.63% 11,530 $6.81 78,559

2018 Company G 9.54% 12,672 $6.85 86,860

2018 Company H 6.13% 8,204 $6.80 55,784

2018 Company I 5.05% 6,744 $6.81 45,941

2017 Company A 5.31% 5,306 $6.75 35,828

2017 Company B 28.43% 28,078 $6.83 191,883

2017 Company F 5.61% 5,578 $6.78 37,840

2017 Company H 5.53% 5,490 $6.80 37,313

2017 Company J 5.25% 5,163 $6.86 35,412

2017 Company K 5.54% 5,500 $6.80 37,386

2017 Company L 5.31% 5,268 $6.80 35,822

2

 Percentages are of contributions made by local employers, excluding reciprocity. 

BAC 7:123
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

PYE 

4/30: Employer Name 

Percent 

of Total 

2

 Hours

Average 

Contribution 

Rate 

Total 

Contribution

2016 Company A 19.97% 29,081 $6.65 193,251

2016 Company B 14.75% 21,379 $6.68 142,763

2016 Company C 6.92% 9,860 $6.79 66,986

2016 Company F 7.01% 10,193 $6.65 67,831

2016 Company M 12.76% 19,000 $6.48 123,148

2015 Company B 12.45% 21,739 $6.53 141,893

2015 Company C 11.90% 20,286 $6.68 135,569

2015 Company E 5.68% 9,139 $7.08 64,733

2015 Company M 17.39% 30,745 $6.45 198,175

2015 Company N 10.56% 18,561 $6.48 120,335

2014 Company B 10.44% 13,672 $6.49 88,779

2014 Company D 11.16% 14,447 $6.57 94,923

2014 Company J 20.27% 26,717 $6.45 172,401

2014 Company N 6.40% 8,464 $6.44 54,471

2014 Company O 12.58% 16,735 $6.39 106,982

 Historical Trends – Contribution Base Units (Hours) 

PYE 

4/30: Net Hours 

Regular 

Hrs 

Recip 

IN Hrs 

Recip 

OUT 

Hrs 3 Yr Avg 

% Chg 3 

Yr 

2009 125,501

2010 163,420

2011 137,302 142,074

2012 154,904 151,875 6.9%

2013 123,783 138,663 -8.7%

2014 99,661 131,877 21,899 54,115 126,116 -9.0%

2015 145,457 173,548 36,289 64,380 122,967 -2.5%

2016 135,899 145,141 40,171 49,413 127,006 3.3%

2017 91,547 98,979 33,537 40,969 124,301 -2.1%

2018 114,761 133,285 40,442 58,966 114,069 -8.2%

2019 112,776 136,906 34,736 58,866 106,361 -6.8%

Due to administration system changes, details of reciprocity activity are not available 

before 2014. The historical hours show a long-term decline but also annual volatility. The 

volatility is typical of the project-based nature of work in the construction industry. The 

BAC 7:124
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

long-term decline includes one significant employer that went out of business in 2016. 

Years 2014 and 2017 had lower hours primarily due to a lack of major projects in the area 

in those years (i.e. normal project-based volatility). The gradual decline in hours from 2010 

to 2013 was due in part to the large increase in required contributions during that period. It 

is also the period that saw the heaviest incidence of members moving their home local 

away from Local 7 due to those same increasing contributions. 

 Historical Trends – Contribution Rates 

Even before the 2008 great recession this Plan had funding concerns that had led to 

increases in contributions and decreases in benefits starting as early as 2003. Prior to 2006 

the contribution rate had been $3.30 for a number of years. By 2013 the rate had increased 

to $6.41. Some of these increases were made as part of the rehabilitation plan and before 

the Plan decided to declare exhaustion of all reasonable measures. Over that 8-year period 

contributions almost doubled with an annualized increase of about 11.5%. Since 2013, 

contributions have increased to $6.80 a 6% increase over six years. 

 Rationale for Hours Assumption 

See preceding table under the heading, “Historical Trends – Contribution Base Units 

(Hours).” The rolling 3-year averages of hours worked have steadily declined over the past 

10 years. We believe the declining health of the plan (not the amount of work available or 

expected to be available) was the biggest single driver of this decline. The hours in plan 

years ending in 2018 and 2019 do show some stabilization already happening. The hours 

reporting process also has a significant delay especially for reciprocity. However, Initial 

estimates of hours for the nine-month period May 2019 to January 2020 are about 93,000 

which would annualize to 124,000. 

Hours in construction industry plan especially for a small geographic area are naturally 

volatile even ignoring the health of the Plan or the economy. Large projects like schools or 

hospitals are sporadic as they do not need to be replaced or updated frequently if the 

population is stable. 

Kent State University which is in the area of the fund has significant future plans for new 

buildings which will very likely include brick work. The COVID-19 pandemic may delay 

some of these projects, but any projects in process are likely to be completed. Also, any 

delays should be considered temporary since the projects themselves are needed (residence 

hall upgrades, educational building upgrades, etc.). Any delay will likely be re-evaluated 

in the near future. 

The Bureau of Labor Statistics recently showed brick and related trades as growing 

nationwide. The population of the counties in the geographic area covered by the Plan have 

remained fairly stable.

If there is no partition, we believe recent declines will continue. We estimate the average 

rate of decline will be approximately 6%, perhaps with slightly lower declines before 

insolvency and a bump at the time of insolvency. 

BAC 7:125
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

If the Plan can be stabilized with a Partition, the Board of Trustees expects they can 

stabilize hours and work at near the current level. For projections under the partition 

scenario, we determined that a modest future decline of, on average, 1% was more realistic 

to account for the possibility of sporadic loss of additional Employers or members 

continuing to transfer home locals occasionally. 

Impact of COVID 19 Pandemic: 

In the state of Ohio construction activity experienced a temporary slowdown but not to the 

levels seen in other industries. Also, the outlook in the construction industry is positive for 

the remainder of 2020, though this optimism is based on a phased re-opening of the 

economy in Ohio and no further shutdowns or extended quarantines. 

In the 2009 recession the timing of changes in hours did not exactly follow the timing of 

investment market losses of labor disruption in other industries. This is due to the long 

planning process for much of the type of work done by the employers and members of this 

Plan. The other general volatility of this trade and the other factors impacting the Plan make 

it hard to draw conclusions from the past. 

As the pandemic causes important shifts in how many businesses operate in the short and 

longer term, we expect there will be a temporary delay in large capital projects to be 

replaced by different projects in different sectors of the economy. Our best estimate of this 

disruption is a single year decrease in hours of 35% (from the assumptions described in the 

prior section) for the plan year ending April 30, 2021. We have also allowed for a continued 

impact in the plan year ending April 2022 with a 10% decrease. Finally, we have allowed 

for the possibility of a small longer-term disruption with a 5% decrease in the hours for the 

plan year ending April 30, 2023 and later. 

We have confirmed with the Trustees that the current crisis is not likely to cause any of the 

Plan’s largest employers to cease operations. 

Hours adjustment for temporary workers 

The Plan requires 435 hours for initial participation and does not give benefit credit for a 

year with less than 435 hours. Historically (see table below) there have been fairly 

significant aggregate levels of hours for individuals that each had less than 435 hours. We 

have set a future assumption of 4,000 such hours which is approximately 66% for the fiveyear activity without adjustment for late reciprocity (see discussion above under 

approximations). The late reciprocity was actually often for members that worked over 435 

hours so the values below would decrease by 500 hours or less per year if adjusted. 

BAC 7:126
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Plan year ending 

Number of NonParticipants with Hours Total Hours by NonParticipants 

4/30/2019 55 7,212.50

4/30/2018 39 4,144,50

4/30/2017 37 3,722.50

4/30/2016 47 5,866.25

4/30/2015 59 9,522.15

 Rationale for Contribution Rate Assumption 

The bargaining parties and Trustees are of the opinion that, historically, pension 

contribution rates increased too much and too quickly. They understand that the high 

contributions and low accrual rate will make it difficult to man jobs and retain qualified 

craftsmen. Furthermore, the high contribution rates make it difficult for signatory 

contractors to compete in the market place. 

However, over a long-term projection period we believe contribution rates will increase 

slowly at about half the rate of inflation. Therefore, we have assumed a 1% increase in 

rates starting in 2021. It should be noted that, in the previous suspension application 

(submitted in 2016 and subsequently withdrawn), the bargaining parties had agreed to 

contribution rate increases of 5¢/hour per year, which is slightly less than 1% of the initial 

rate. Finally, the current benefit formula provides for accrual at 1% on contributions in 

excess of $6.66 per hour, which provides incentive to allocate new contributions. 

 Experience with Employer Withdrawals 

The Plan has collected no withdrawal liability in the last ten years. This is primarily due to 

the operation of the “construction industry exemption.” In addition, the vast majority of 

contractors are working under statewide agreements that require contributions only when 

working in the area of each fund. 

Projection Methodology 

 Changes to Cash Flow Projections 

o Inactive vested participants were processed in separate runs in order to properly 

value the desired retirement decrements. This was done because our valuation 

system does not fully support inactive decrements. 

o For each plan design scenario, 3 active-only runs (one for each form of benefit 

being valued), 3 inactive vested-only runs (one for each form of benefit being 

valued), and one pay status run were done. The projected benefit payments from 

these runs were blended, along with projected benefits from assumed new entrants, 

to produce the final stream of benefit payments. This was done because our 

valuation system does not allow the user to assume multiple forms of benefit 

payment in a single run. 

BAC 7:127
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

o Benefit payments from the valuation system output are given as of the beginning 

of each plan year. These were multiplied by a one-half year interest adjustment 

factor to produce cash flows. We think it is more intuitive to work with cash flows 

rather than interest-adjusted cash flows. Additionally, all benefit payments 

produced by the valuation system are discounted at the valuation interest rate, 

whereas, when projecting assets, various rates of interest are applied. 

o For purposes of the certification of critical and declining status required by Rev. 

Proc. 2017-43, Section 3.01 and checklist 5, active participant cash flows from the 

valuation system were adjusted for contribution rate and total hours. The 

certification of critical and declining status was done before work on this filing had 

commenced and we had not yet developed code to handle this adjustment internally. 

Additional Disclosures Relating to the Use of Different Assumptions 

Explanation of differences between assumptions used for the actuarial valuation reports required 

to be furnished by Rev. Proc. 2017-43, Section 7.10 and the critical and declining certification 

required by Rev. Proc. 2017-43, Section 3.01 and checklist 5 versus assumptions used for other 

projections contained in this application. 

 The short- and long-term interest rates used for the critical and declining certification are 

6.0% and 7.0%, respectively, whereas interest rates of 5.75% and 6.75% were used for the 

other projections contained in this filing. When the certification of critical and declining 

status was completed, the 2019 Horizon survey was not yet published. After performing 

portfolio projections using the 2019 survey, we decided to lower both the short- and longterm rates by 25 basis points each. 

 For purposes of the critical and declining certification, the assumed “take-up” rate for 

benefit form election was 100% electing a single life annuity. The other projections 

contained herein use an explicit “take-up” assumption assigning various probabilities to 

the 3 valued forms of benefit. When the certification was completed, it was based on the 

2018 actuarial valuation report, which used the single form. We felt that it was not 

necessary to incorporate the explicit approach because the difference is not material over 

the short period of time until projected insolvency. 

 The plan provides that, unless a participant explicitly waives pre-retirement death benefit 

coverage, such coverage will be “paid for” via a reduction in the participant’s accrued 

benefit. For purposes of the critical and declining certification, projections assumed no 

pre-retirement death benefit coverage (implicitly assuming that any pre-retirement death 

benefits would be offset by the associated reduction in accrued benefits). For all other 

projections contained herein (including the 2019 valuation report furnished pursuant to 

Rev. Proc. 2017-43, Section 7.10), an explicit married percentage of 75% is assumed and 

all married participants are assumed to elect pre-retirement death coverage. 

BAC 7:128
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

 For purposes of the valuation reports and the critical and declining certification, current 

inactive vested participants are assumed to retire at age 59 if they have at least 10 years of 

service, or age 62 if less than 10 years of service. For other projections, retirement rates 

are used to value a distribution of benefit commencement ages for inactive vested 

participants. We felt that it was not necessary to incorporate the explicit approach when 

preparing the critical and declining certification because the difference is not material over 

the short period of time until projected insolvency. 

 For purposes of the critical and declining certification, we did not take into account any 

increased expenses due to the partition application, nor did we assume any future inflation 

in expenses. At the time the critical and declining certification was prepared, we did not 

have a final agreement to proceed with the partition application. When preparing this filing 

we decided it would be more appropriate to increase the 2019-2020 expense level to reflect 

these additional costs and to include a future inflation adjustment in our expense 

assumption. 

 The third-period select withdrawal rate was updated from the 20% used in the critical and 

declining certification to 35% as used in other projections contained herein. This change 

was made based on an updated study of recent experience performed with the 5/1/2019 

actuarial valuation. 

BAC 7:129
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 19 

Plan’s Experience with Critical Assumptions 

Pension Plan's Ten-Year Experience for Certain Critical Assumptions 

Year 

Ending 

4/30 

Base 

Units 

(Hours) 

Average 

Hourly 

Rate 

Contributions 

Excluding 

Withdrawal 

Liability Payments 

Withdrawal 

Liability 

Payments 

Return on 

Assets 

(Market Basis)

2009 125,501 $5.15 $646,285 $0 -24.68%

2010 163,420 $4.99 $815,526 $0 29.68% 

2011 137,302 $5.40 $741,199 $0 14.16% 

2012 154,904 $5.56 $861,825 $0 0.71% 

2013 123,783 $6.15 $761,064 $0 8.65% 

2014 99,661 $6.75 $672,704 $0 8.27% 

2015 145,457 $6.43 $934,649 $0 6.72% 

2016 135,899 $5.69 $772,854 $0 -3.48%

2017 91,547 $6.61 $604,875 $0 10.94%

2018 114,761 $6.53 $749,475 $0 8.60% 

2019 112,776 $6.47 $729,439 $0 4.02%

BAC 7:130
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 20 

Plan Sensitivity 

Pension Plan's Ten-Year Experience for Certain Critical Assumptions 

The following exhibits provide 4 separate, deterministic solvency ratio projections intended to help 

gauge the sensitivity of the projections to certain key assumptions as required by Rev. Proc. 2017-

43, Section 6.05. Each exhibit was prepared recognizing the proposed suspension. As permitted 

by Rev. Proc. 2017-43, Section 6.05, Exhibits 20C and 20D (BAC 7:134 and BAC 7:135, 

respectively) do not recognize any change in expected benefit payments that may result from using 

alternate assumptions regarding future contribution base units. 

 Exhibit 20A (BAC 7:132) projects the Pension Plan's solvency ratio using assumed rates

of return reduced by one percentage point (beginning with the plan year ending April 30,

2020);

 Exhibit 20B (BAC 7:133) projects the Pension Plan's solvency ratio using assumed rates

of return reduced by two percentage points (beginning with the plan year ending April 30,

2020);

 Exhibit 20C (BAC 7: 134) projects the Pension Plan's solvency ratio using an hours base

unit which is equal to the trend that the Pension Plan experienced over the 10 plan years

ending April 30, 2019; and

 Exhibit 20D (BAC 7:135) projects the Pension Plan's solvency ratio using an hours base

unit equal to the trend assumed in Exhibit 20C (BAC 7:134) reduced by one percentage

point (beginning with the plan year ending April 30, 2020).

BAC 7:131
Exhibit 20A

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 27: Sensitivity Projections - 1% Lower Interest

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY

4/30/2020 7.75% 6,422,399 29,212 0 0 0 0 249,146 49,000 0 487,315 6,640,780

4/30/2021 4.75% 6,640,780 458,431 1,695,089 142,601 28,052 147,103 0 227,969 0 273,105 5,131,502

4/30/2022 4.75% 5,131,502 634,262 997,185 40,963 4,188 150,174 0 79,495 0 228,600 4,722,359

4/30/2023 4.75% 4,722,359 667,328 939,730 38,510 5,930 192,503 0 81,922 0 210,269 4,341,361

4/30/2024 4.75% 4,341,361 670,272 881,770 36,004 7,947 237,632 0 84,585 0 192,495 3,956,190

4/30/2025 4.75% 3,956,190 667,380 823,740 33,465 9,726 259,815 0 87,550 0 174,930 3,584,203

4/30/2026 4.75% 3,584,203 667,350 766,100 30,913 11,271 280,107 2 90,148 0 158,109 3,231,122

4/30/2027 4.75% 3,231,122 665,050 709,346 28,376 13,110 300,522 10 92,882 0 142,097 2,894,023

4/30/2028 4.75% 2,894,023 664,290 653,962 25,878 14,956 311,993 767 95,634 0 127,042 2,582,165

4/30/2029 4.75% 2,582,165 663,510 600,413 23,441 16,523 329,307 1,593 98,501 0 113,004 2,288,902

4/30/2030 5.75% 2,288,902 663,343 549,120 21,085 17,998 339,770 2,590 101,506 0 121,011 2,041,187

4/30/2031 5.75% 2,041,187 663,376 500,439 18,834 19,596 365,010 4,021 104,754 0 107,327 1,799,236

4/30/2032 5.75% 1,799,236 665,080 454,670 16,700 21,222 387,032 5,562 100,656 0 94,234 1,572,708

4/30/2033 5.75% 1,572,708 664,948 412,029 14,699 22,386 395,839 7,645 104,223 0 82,039 1,362,874

4/30/2034 5.75% 1,362,874 663,041 372,640 12,842 23,645 415,827 9,869 107,957 0 70,323 1,153,458

4/30/2035 5.75% 1,153,458 662,574 336,520 11,140 24,920 425,388 12,346 111,915 0 58,859 952,662

4/30/2036 5.75% 952,662 662,674 303,606 9,594 25,973 437,719 15,221 116,012 0 47,721 754,932

4/30/2037 5.75% 754,932 662,055 273,778 8,208 26,653 443,916 18,304 120,238 0 36,824 562,714

4/30/2038 5.75% 562,714 662,383 246,876 6,976 27,105 443,749 21,892 124,704 0 26,350 380,145

4/30/2039 5.75% 380,145 661,177 222,685 5,889 27,720 451,872 25,724 129,431 0 16,047 194,048

4/30/2040 5.75% 194,048 660,829 200,948 4,940 28,325 456,529 30,067 134,441 0 5,568 5,195

4/30/2041 5.75% 5,195 660,830 181,394 4,115 28,434 451,285 34,875 132,849 0 0 0

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

3) Actives are not partitioned. Terminated Vesteds are fully partitioned. Retiree (healthy & disabled) and Beneficiary liabilities are partitioned as shown in updated listing.

4) Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

Benefit Payments by 5/1/19 Status

BAC 7:132
Exhibit 20B

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 27: Sensitivity Projections - 2% Lower Interest

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY

4/30/2020 7.75% 6,422,399 29,212 0 0 0 0 249,146 49,000 0 487,315 6,640,780

4/30/2021 3.75% 6,640,780 458,431 1,695,089 142,601 28,052 147,103 0 227,969 0 215,610 5,074,007

4/30/2022 3.75% 5,074,007 634,262 997,185 40,963 4,188 150,174 0 79,495 0 178,318 4,614,582

4/30/2023 3.75% 4,614,582 667,328 939,730 38,510 5,930 192,503 0 81,922 0 161,961 4,185,276

4/30/2024 3.75% 4,185,276 670,272 881,770 36,004 7,947 237,632 0 84,585 0 146,117 3,753,727

4/30/2025 3.75% 3,753,727 667,380 823,740 33,465 9,726 259,815 0 87,550 0 130,510 3,337,320

4/30/2026 3.75% 3,337,320 667,350 766,100 30,913 11,271 280,107 2 90,148 0 115,565 2,941,695

4/30/2027 3.75% 2,941,695 665,050 709,346 28,376 13,110 300,522 10 92,882 0 101,329 2,563,828

4/30/2028 3.75% 2,563,828 664,290 653,962 25,878 14,956 311,993 767 95,634 0 87,914 2,212,842

4/30/2029 3.75% 2,212,842 663,510 600,413 23,441 16,523 329,307 1,593 98,501 0 75,364 1,881,939

4/30/2030 4.75% 1,881,939 663,343 549,120 21,085 17,998 339,770 2,590 101,506 0 80,635 1,593,848

4/30/2031 4.75% 1,593,848 663,376 500,439 18,834 19,596 365,010 4,021 104,754 0 67,412 1,311,982

4/30/2032 4.75% 1,311,982 665,080 454,670 16,700 21,222 387,032 5,562 100,656 0 54,701 1,045,921

4/30/2033 4.75% 1,045,921 664,948 412,029 14,699 22,386 395,839 7,645 104,223 0 42,749 796,797

4/30/2034 4.75% 796,797 663,041 372,640 12,842 23,645 415,827 9,869 107,957 0 31,204 548,262

4/30/2035 4.75% 548,262 662,574 336,520 11,140 24,920 425,388 12,346 111,915 0 19,876 308,483

4/30/2036 4.75% 308,483 662,674 303,606 9,594 25,973 437,719 15,221 116,012 0 8,823 71,855

4/30/2037 4.75% 71,855 662,055 273,778 8,208 26,653 443,916 18,304 120,238 0 0 0

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

3) Actives are not partitioned. Terminated Vesteds are fully partitioned. Retiree (healthy & disabled) and Beneficiary liabilities are partitioned as shown in updated listing.

4) Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

Benefit Payments by 5/1/19 Status

BAC 7:133
Exhibit 20C

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 27: Sensitivity Projections - Contribution Base Units Continue to Decrease at 10-year Historical Rate 

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY

Total 

Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY

4/30/2020 7.75% 6,422,399 29,212 0 0 0 0 249,146 49,000 0 487,315 6,640,780

4/30/2021 5.75% 6,640,780 453,557 1,695,089 142,601 28,052 147,103 0 227,969 0 330,461 5,183,983

4/30/2022 5.75% 5,183,983 620,844 997,185 40,963 4,188 150,174 0 79,495 0 279,358 4,812,180

4/30/2023 5.75% 4,812,180 646,264 939,730 38,510 5,930 192,503 0 81,922 0 259,096 4,458,946

4/30/2024 5.75% 4,458,946 642,212 881,770 36,004 7,947 237,632 0 84,585 0 238,975 4,092,195

4/30/2025 5.75% 4,092,195 632,641 823,740 33,465 9,726 259,815 0 87,550 0 218,579 3,729,119

4/30/2026 5.75% 3,729,119 625,886 766,100 30,913 11,271 280,107 2 90,148 0 198,536 3,375,001

4/30/2027 5.75% 3,375,001 617,097 709,346 28,376 13,110 300,522 10 92,882 0 178,907 3,026,758

4/30/2028 5.75% 3,026,758 609,836 653,962 25,878 14,956 311,993 767 95,634 0 159,855 2,693,260

4/30/2029 5.75% 2,693,260 602,643 600,413 23,441 16,523 329,307 1,593 98,501 0 141,432 2,367,557

4/30/2030 6.75% 2,367,557 596,084 549,120 21,085 17,998 339,770 2,590 101,506 0 145,096 2,076,669

4/30/2031 6.75% 2,076,669 589,775 500,439 18,834 19,596 365,010 4,021 104,754 0 125,903 1,779,693

4/30/2032 6.75% 1,779,693 585,002 454,670 16,700 21,222 387,032 5,562 100,656 0 106,601 1,485,453

4/30/2033 6.75% 1,485,453 578,666 412,029 14,699 22,386 395,839 7,645 104,223 0 87,505 1,194,804

4/30/2034 6.75% 1,194,804 570,871 372,640 12,842 23,645 415,827 9,869 107,957 0 68,097 890,991

4/30/2035 6.75% 890,991 564,402 336,520 11,140 24,920 425,388 12,346 111,915 0 48,065 581,229

4/30/2036 6.75% 581,229 558,484 303,606 9,594 25,973 437,719 15,221 116,012 0 27,433 259,022

4/30/2037 6.75% 259,022 552,030 273,778 8,208 26,653 443,916 18,304 120,238 0 6,040 0

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

3) Actives are not partitioned. Terminated Vesteds are fully partitioned. Retiree (healthy & disabled) and Beneficiary liabilities are partitioned as shown in updated listing.

4) Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

5) Historical average change in hours was determined to be - 1.06%.

Benefit Payments by 5/1/19 Status

BAC 7:134
Exhibit 20D

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 27: Sensitivity Projections - Contribution Base Units Continue to Decrease at 10-year Historical Rate Minus an Additional Percentage Point

Plan Year End

Interest 

Rate

Market Value of Asset 

BOY Contributions Retirees Beneficiary

Terminated 

Vested Active New Entrants

Admin. 

Expenses

W/D liab. 

Payments

Investment 

Return

Market Value 

of Asset EOY

4/30/2020 7.75% 6,422,399 29,212 0 0 0 0 249,146 49,000 0 487,315 6,640,780

4/30/2021 5.75% 6,640,780 448,972 1,695,089 142,601 28,052 147,103 0 227,969 0 330,329 5,179,267

4/30/2022 5.75% 5,179,267 608,357 997,185 40,963 4,188 150,174 0 79,495 0 278,728 4,794,347

4/30/2023 5.75% 4,794,347 626,866 939,730 38,510 5,930 192,503 0 81,922 0 257,513 4,420,131

4/30/2024 5.75% 4,420,131 616,639 881,770 36,004 7,947 237,632 0 84,585 0 236,008 4,024,840

4/30/2025 5.75% 4,024,840 601,309 823,740 33,465 9,726 259,815 0 87,550 0 213,805 3,625,658

4/30/2026 5.75% 3,625,658 588,876 766,100 30,913 11,271 280,107 2 90,148 0 191,522 3,227,515

4/30/2027 5.75% 3,227,515 574,737 709,346 28,376 13,110 300,522 10 92,882 0 169,209 2,827,216

4/30/2028 5.75% 2,827,216 562,235 653,962 25,878 14,956 311,993 767 95,634 0 147,012 2,433,272

4/30/2029 5.75% 2,433,272 549,987 600,413 23,441 16,523 329,307 1,593 98,501 0 124,969 2,038,450

4/30/2030 6.75% 2,038,450 538,503 549,120 21,085 17,998 339,770 2,590 101,506 0 120,938 1,665,822

4/30/2031 6.75% 1,665,822 527,418 500,439 18,834 19,596 365,010 4,021 104,754 0 96,066 1,276,652

4/30/2032 6.75% 1,276,652 517,861 454,670 16,700 21,222 387,032 5,562 100,656 0 70,380 879,051

4/30/2033 6.75% 879,051 507,075 412,029 14,699 22,386 395,839 7,645 104,223 0 44,157 473,463

4/30/2034 6.75% 473,463 495,188 372,640 12,842 23,645 415,827 9,869 107,957 0 16,852 42,723

4/30/2035 6.75% 42,723 484,629 336,520 11,140 24,920 425,388 12,346 111,915 0 0 0

Notes: 1) Benefit Suspension and Partition are implemented beginning 10/1/2020.

2) The initial period from 3/31/20 to 4/30/20 (first row) is based on preliminary actual information. Total expected benefit payments are shown under New Entrants.

3) Actives are not partitioned. Terminated Vesteds are fully partitioned. Retiree (healthy & disabled) and Beneficiary liabilities are partitioned as shown in updated listing.

4) Contributions are the same contributions as in our original filing with the new hours reduction percentages (0.65 yr 1, 0.90 yr 2, 0.95 yrs 3+) applied.

5) Historical average change in hours was determined to be - 1.06%.

Benefit Payments by 5/1/19 Status

BAC 7:135
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 21 

Deterministic Projections

Exhibit 21A (BAC 7:137) projects the Pension Plan's funded percentage using the value of plan 

assets and accrued liabilities during the extended period of May 1, 2020 through 2068. The 

projection includes the impact of benefit suspensions and is made on the same basis as Exhibit 5 

(BAC 7:26). 

BAC 7:136
Exhibit 21A

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan

EIN Number: 34-6666798

Checklist Item 28: Plan-Year-by-Plan-Year Projections of Unit Credit Accrued Liability and Funded Percentages

Plan Year End

Market Value of Asset 

BOY

Unit Credit Accrued 

Liability Funded Percentage

4/30/2020 6,422,399 12,610,441 50.93%

4/30/2021 6,640,780 12,285,076 54.06%

4/30/2022 5,188,998 11,925,315 43.51%

4/30/2023 4,831,287 11,585,199 41.70%

4/30/2024 4,500,820 11,240,185 40.04%

4/30/2025 4,165,343 10,878,046 38.29%

4/30/2026 3,842,209 10,529,186 36.49%

4/30/2027 3,537,249 10,197,244 34.69%

4/30/2028 3,247,668 9,882,367 32.86%

4/30/2029 2,982,891 9,594,375 31.09%

4/30/2030 2,736,460 9,325,055 29.35%

4/30/2031 2,540,001 9,080,273 27.97%

4/30/2032 2,350,385 8,842,254 26.58%

4/30/2033 2,177,448 8,609,935 25.29%

4/30/2034 2,022,702 8,395,989 24.09%

4/30/2035 1,870,054 8,184,885 22.85%

4/30/2036 1,727,864 7,984,575 21.64%

4/30/2037 1,590,760 7,790,114 20.42%

4/30/2038 1,461,364 7,604,761 19.22%

4/30/2039 1,344,036 7,432,995 18.08%

4/30/2040 1,225,792 7,263,087 16.88%

4/30/2041 1,107,550 7,096,803 15.61%

4/30/2042 1,004,377 6,942,468 14.47%

4/30/2043 915,998 6,797,622 13.48%

4/30/2044 839,264 6,658,491 12.60%

4/30/2045 769,557 6,521,429 11.80%

4/30/2046 716,309 6,394,393 11.20%

4/30/2047 678,723 6,275,961 10.81%

4/30/2048 654,272 6,163,498 10.62%

4/30/2049 649,666 6,062,000 10.72%

4/30/2050 662,394 5,968,996 11.10%

4/30/2051 695,161 5,886,357 11.81%

4/30/2052 750,302 5,816,420 12.90%

4/30/2053 827,972 5,758,673 14.38%

4/30/2054 927,002 5,711,635 16.23%

4/30/2055 1,050,386 5,677,258 18.50%

4/30/2056 1,195,752 5,652,804 21.15%

4/30/2057 1,363,844 5,638,269 24.19%

4/30/2058 1,556,052 5,634,186 27.62%

4/30/2059 1,770,758 5,638,347 31.41%

4/30/2060 2,009,640 5,651,435 35.56%

BAC 7:137
Exhibit 21A

4/30/2061 2,273,026 5,673,023 40.07%

4/30/2062 2,561,148 5,702,381 44.91%

4/30/2063 2,874,820 5,739,392 50.09%

4/30/2064 3,214,392 5,783,368 55.58%

4/30/2065 3,580,484 5,833,813 61.37%

4/30/2066 3,973,798 5,890,219 67.46%

4/30/2067 4,394,841 5,951,879 73.84%

4/30/2068 4,844,609 6,018,385 80.50%

BAC 7:138
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 I 001 

EXHIBIT22 

Plan Amendment 

The Board of Trustees certifies that, if it receives the Treasury Department's final authorization to 

suspend and then chooses to implement the suspension, it will also amend the Plan: 

• To provide that the suspension will cease upon the Board's failure to maintain a

written record of its annual determination that (i) all reasonable measures continue

to be taken to avoid insolvency and (ii) the Plan would not be projected to avoid

insolvency without a suspension,

• To require that any future benefit improvements must satisfy §432(e)(9)(E), and 

• To specify that the Board will not modify these amendments, notwithstanding any 

other provision of the Plan document.

Signature 

Print Name 

Authorized Trustee 

Date 

BAC 7:139
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 23 

Reasons for Critical & Declining Status 

Since the start of the plan year beginning on May 1, 2006, the Plan has seen significant decreases 

in both assets and contributions due in part to the financial crises in 2008 and 2014. During that 

time period, the Plan has seen a 64% decrease in the market value of assets, as well as a 52% 

decrease in contribution hours when comparing the plan year beginning in 2007 to the average 

hours during the plan years beginning in 2016 through 2018. 

The collapse of the financial markets in 2008 resulted in the Plan experiencing its worst investment 

losses on record and contributed to the drastic slowdown of the building and construction industry 

in the geographic area covered by the Plan and the geographic area where contributing employers 

performed work. This, along with the maturity of the Plan, made it difficult for the Plan to recover 

from the economic downturn it had experienced. With an inactive-to-active ratio of over 250% for 

most of the period since 2010, the Plan has found itself in a situation where the contributions from 

active members are not substantial enough to keep the Plan from becoming insolvent. 

On July 29, 2008, the Plan was first certified to be in critical status within the meaning of the 

Pension Protection Act of 2006 (the “PPA”) for the plan year beginning on May 1, 2008. In 

September 2008, the Board of Trustees adopted a Rehabilitation Plan implementing reductions in 

benefits and increases in contributions that were reasonably expected to enable the Plan to emerge 

from critical status at the end of the Rehabilitation Period (10-year period beginning on May 1, 

2009). 

Almost immediately following the adoption of the initial Rehabilitation Plan, the great recession 

of 2008 started. The economic conditions in the building and construction trades did not improve, 

but rather continued to decline. In light of this information and based on reasonable actuarial 

assumptions, the Board of Trustees concluded that the Plan could not reasonably be expected to 

emerge from critical status by the end of the Rehabilitation period. This was reflected in the 

updated Rehabilitation Plan, which the Board of Trustees adopted on February 11, 2011. 

The primary measures available to the Board of Trustees to allow the Plan to avoid insolvency are 

employer contribution increases and benefit reductions. Over the past ten (10) years, the Board of 

Trustees has worked with the bargaining parties to develop sustainable combinations of employer 

contributions and reasonable pension benefit levels. Simultaneously, the Board of Trustees and 

bargaining parties have been constrained by the collective bargaining process, the burdens of 

increased outgoing reciprocity payments, and the amounts that contributing employers are willing 

and able to contribute to the Plan. 

As of the plan year beginning May 1, 2006, the Plan was 75% funded on a market basis, and its 

assets returned 10.97% on its investments. At the time, there were 201 retirees, surviving spouses, 

and alternate payees in pay status; 119 inactive vested participants and deferred beneficiaries; and 

195 active participants working an average of 1,139 hours per year. The present value of 

accumulated vested benefits was $33,853,627, and the market value of assets was $26,539,420. 

BAC 7:140
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Since that time, the Plan’s demographics and asset base have declined to its current levels. At 

present, the Plan is 24% funded on an actuarial basis, and it is facing a projected insolvency date 

of 2022. As of May 1, 2019, the Plan was 23.1% funded on a market basis, and its assets returned 

4.02% on its investments for the most recent plan year. As of the most recently completed actuarial 

valuation as of May 1, 2019, there were 213 retirees, surviving spouses, and alternate payees in 

pay status; 109 inactive vested participants and deferred beneficiaries; and 106 active participants 

working an average of 959 hours per year. The present value of accumulated vested benefits is 

$41,258,612, and the market value of assets was $9,533,656. 

2006: As of May 1, 2006, the Plan’s level of funding was 75% on a market basis. The number of 

active participants was down 11.0% from the previous plan year, and the contribution hours 

decreased by 12.3% from the previous plan year. The Plan’s investments returned 10.97% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate to $3.55 per hour from $3.30, effective June 1, 2006. After much debate and with 

a few alternate proposals that were in effect only for a short period of time, the Board of Trustees 

also adopted a decrease in the rate at which future benefits would accrue. Effective May 1, 2006, 

the future service benefit accrual rate was decreased to 1.00% of $2.00 for employer contributions 

made after May 1, 2006, with contributions above $2.00 non-credited. 

2007: As of May 1, 2007, the Plan’s level of funding was 79% on a market basis. The number of 

active participants was down 11.8% from the previous plan year, and the contribution hours 

decreased by 11.4% from the previous plan year. The Plan’s investments returned 10.45% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $3.55 per hour to $4.01 per hour, effective June 1, 2007. The Board of 

Trustees also adopted another benefit change. On September 7, 2007, with an effective date of 

January 1, 2008, the Board of Trustees added the qualified joint and 75% benefit option, as 

required by law. No cost was associated with this change. 

2008: As of May 1, 2008, the Plan’s level of funding was 71% on a market basis. The number of 

active participants was down 9.3% from the previous plan year, and the contribution hours 

decreased by 23.8% from the previous plan year. The Plan’s investments returned a loss of 2.69% 

on a market basis. In response to the funding concerns, the bargaining parties agreed to increase 

the contribution rate from $4.01 per hour to $4.41 per hour, effective September 1, 2008. In July 

2008, the Board of Trustees changed investment firms, going with Smith Barney, Citigroup 

Global, in order to improve investment returns. 

During this plan year, the Board of Trustees adopted several amendments to the Plan to eliminate 

several subsidies and ancillary benefits following passage of the PPA. The Board of Trustees also 

adopted its first Rehabilitation Plan, and on July 29, 2008, the actuary certified that the Plan was 

in “critical” status under the PPA. The Notice of Critical Status was issued to contributing 

employers and participants on August 19, 2008. Under the Rehabilitation Plan, the Plan was 

projected to exceed 80% funded by the plan year beginning on May 1, 2013, but not to exit critical 

status without a funding deficiency in the credit balance until May 1, 2023. Thus, the initial 

Rehabilitation Plan made use of the exhaustion of all reasonable measures clause at Internal 

Revenue Code (“Code”) § 432(e)(3)(A)(ii). 

BAC 7:141
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

On September 22, 2008, with an effective date of May 1, 2009, the Board of Trustees made the 

following benefit adjustments: 

• The early retirement factor was changed from 1/3 of 1% to .5833% for each month 

under age 62. Participants who were at least age 55 and had at least 10 years of 

service as of May 1, 2009 would use the 1/3 of 1% reduction. This reduction closely 

approximates a full actuarial adjustment at most ages, but is easier to communicate 

than an exact actuarial equivalence. The purpose of preserving the prior rules for 

those persons already eligible to retire was to prevent a large rush to retire in the 

window between the announcement and the effective date of the change. A large 

group of immediate retirements would have had a more significant negative impact 

on the Plan than preserving the prior rules would have had. 

• The 60-month guarantee post-retirement death benefit was removed for participants 

not in pay status as of May 1, 2009. 

• The pre-retirement 5-year certain death benefit was removed for deaths after May 

1, 2009. 

• The total and permanent disability benefit was eliminated for disabilities after May 

1, 2009. 

• The cost of the pre-retirement surviving spouse benefit would be paid by the 

participant. 

These benefit cuts were scheduled to reduce the present value of the accumulated benefits by 

approximately $2.3 million. At the time, the present value of accumulated vested benefits was 

$34,672,083, and the market value of assets was $25,340,853. The changes above included all 

such changes available as adjustable benefits. 

2009: As of May 1, 2009, the Plan’s level of funding was 51.6% on a market basis. The number 

of active participants was down 12.8% from the previous plan year, and the contribution hours 

decreased by 11.1% from the previous plan year. The Plan’s investments returned a loss of 24.68% 

on a market basis. In response to the funding concerns, the bargaining parties agreed to increase 

the contribution rate from $4.41 per hour to $4.81 per hour, effective June 1, 2009. The Board of 

Trustees made no benefit changes during this plan year. However, during the previous plan year, 

Congress passed the Worker, Retiree, and Employer Recovery Act of 2008, which allowed the 

Board of Trustees to freeze the current Rehabilitation Plan for a 1-year period to evaluate the 

impact of the asset losses caused by the market crash of 2008-2009. At the time, the present value 

of accumulated vested benefits was $33,867,493, and the market value of assets was $17,516,662. 

After this large investment loss, the annual update to the Rehabilitation Plan first showed a 

projected insolvency. The Board of Trustees continued to make use of the exhaustion of all 

reasonable measures clause and began attempting to forestall insolvency. Insolvency was expected 

by April 30, 2023. 

BAC 7:142
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

2010: As of May 1, 2010, the Plan’s level of funding was 59.7% on a market basis. The number 

of active participants was up 3.7% from the previous plan year, and the contribution hours 

increased by 18% from the previous plan year. The Plan’s investments returned 29.68% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $4.81 per hour to $5.21 per hour, effective June 1, 2010. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $34,484,817, and the market value of assets was $20,654,452. 

The expected insolvency date based on this valuation basis was April 30, 2029. 

2011: As of May 1, 2011, the Plan’s level of funding was 61.6% on a market basis. The number 

of active participants was down 7.1% from the previous plan year, and the contribution hours 

decreased by 16% from the previous plan year. The Plan’s investments returned 14.16% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $5.21 per hour to $5.61 per hour, effective June 1, 2011. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $34,740,407, and the market value of assets was $21,415,024. In 

June 2011, the Board of Trustees agreed to enter into a fiduciary asset management agreement 

with Morgan Stanley Smith Barney LLC in an attempt to increase investment returns. The 

expected insolvency date based on this valuation basis was April 30, 2029. 

2012: As of May 1, 2012, the Plan’s level of funding was 55.3% on a market basis. The number 

of active participants was up 7.6% from the previous plan year, and the contribution hours 

increased by 12.8% from the previous plan year. The Plan’s investments returned 0.71% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $5.61 per hour to $6.01 per hour, effective June 1, 2012. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $35,419,483, and the market value of assets was $19,614,346. 

The expected insolvency date based on this valuation basis was April 30, 2027. 

2013: As of May 1, 2013, the Plan’s level of funding was 53.8% on a market basis. The number 

of active participants was down 7.8% from the previous plan year, and the contribution hours 

decreased by 20.1% from the previous plan year. The Plan’s investments returned 8.65% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $6.01 per hour to $6.41 per hour, effective June 1, 2013. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

accumulated vested benefits was $35,456,723, and the market value of assets was $19,101,019. 

The expected insolvency date based on this valuation basis was April 30, 2026. 

2014: As of May 1, 2014, the Plan’s level of funding was 51.5% on a market basis. The number 

of active participants was down 20% from the previous plan year, and the contribution hours 

decreased by 17.6% from the previous plan year. The Plan’s investments returned 8.27% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $6.41 per hour to $6.46 per hour, effective June 1, 2014. The Board of 

Trustees made no benefit changes during this plan year. At the time, the present value of 

BAC 7:143
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

accumulated vested benefits was $35,571,497, and the market value of assets was $18,341,720. 

The expected insolvency date based on this valuation basis was April 30, 2025. 

2015: As of May 1, 2015, the Plan’s level of funding was 48.3% on a market basis. The number 

of active participants was up 38.5% from the previous plan year, and the contribution hours 

increased by 41.3% from the previous plan year. The Plan’s investments returned 6.72% on a 

market basis. In response to the funding concerns, the bargaining parties agreed to increase the 

contribution rate from $6.46 per hour to $6.66 per hour, effective June 1, 2015. At the time, the 

present value of accumulated vested benefits was $35,983,111, and the market value of assets was 

$17,411,864. The expected insolvency date based on this valuation basis was April 30, 2026. 

During this plan year, the Board of Trustees began to explore the possibility of a MPRA suspension 

(see 2016 below). 

2016: As of May 1, 2016, the Plan’s level of funding was 39.6% on a market basis. The number 

of active participants was down 12.5% from the previous plan year, and the contribution hours 

decreased by 13.3% from the previous plan year. The Plan’s investments returned a loss of 3.48% 

on a market basis. In response to the funding concerns, the bargaining parties agreed to increase 

the contribution rate from $6.66 per hour to $6.80 per hour, effective June 1, 2016. At the time, 

the present value of accumulated vested benefits was $35,861,466, and the market value of assets 

was $14,219,652. The expected insolvency date based on this valuation basis was April 30, 2025. 

In June 2016, the Plan filed for a MPRA suspension. In January 2017, the suspension application 

was withdrawn after discussions with the regulatory agencies. In early 2017 (after the application 

was withdrawn), the actuary determined that a suspension submission without a partition probably 

would be unsuccessful. The Board of Trustees opted to wait and see if there would be any 

additional legislative relief before attempting a partition. 

While working on the suspension application, the Board of Trustees made a change to the Plan’s 

accrual formula. Prior to the change, the accrual rate was 1% of the first $2.00 contributed. Any 

contribution amount in excess of $2.00 was non-credited. After the change, the accrual rate was 

0.3% of the first $6.66 contributed and 1% of any amount contributed in excess of $6.66. As noted 

above, the bargaining parties responded by increasing the contribution rate from $6.66 per hour to 

$6.80 per hour. The effective average benefit rate became 0.314% (= {$0.02+$0.0014}/$6.80). 

Under this new benefit design, each time the contribution rate is increased, the average benefit 

credit rates also increase. This was done to provide a small incentive for members to stay active in 

the Plan and also to attract new members. 

2017: As of May 1, 2017, the Plan’s level of funding was 32.8% on a market basis. The number 

of active participants was down 19% from the previous plan year, and the contribution hours 

decreased by 26.2% from the previous plan year. The Plan’s investments returned 10.94% on a 

market basis. At the time, the present value of accumulated vested benefits was $39,294,510, and 

the market value of assets was $12,893,823. The expected insolvency date based on this valuation 

basis was April 30, 2023. 

2018: As of May 1, 2018, the Plan’s level of funding was 28.4% on a market basis. The number 

of active participants was up 12.7% from the previous plan year, and the contribution hours 

BAC 7:144
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

increased by 24.2% from the previous plan year. The Plan’s investments returned 8.60% on a 

market basis. At the time, the present value of accumulated vested benefits was $40,609,803, and 

the market value of assets was $11,528,839. The expected insolvency date based on this valuation 

basis was April 30, 2023. 

2019: As of May 1, 2019, the Plan’s level of funding was 23.1% on a market basis. The number 

of active participants was down 7.8% from the previous plan year, and the contribution hours 

decreased by 2.6% from the previous plan year. The Plan’s investments returned 4.02% on a 

market basis. At the time, the present value of accumulated vested benefits was $41,258,612, and 

the market value of assets was $9,533,656. The expected insolvency date based on this valuation 

basis was April 30, 2023. 

It is the Board of Trustees’ opinion that as of the filing of this application all reasonable measures 

that the Plan could have taken have been taken in an effort to avoid insolvency. Despite these 

measures, the Plan is projected to become insolvent unless benefits are suspended to the maximum 

allowable extent and the parallel partition request is approved. 

Going forward, the Board of Trustees believes the declining health of the plan (not the amount of 

work available or expected to be available) was the biggest single driver of the Fund’s decline. 

Kent State University, which is in the area of the fund, has significant future plans for new 

buildings which will very likely include brick work. The Bureau of Labor Statistics recently 

showed brick and related trades as growing nationwide. The population of the counties in the 

geographic area covered by the Plan have remained fairly stable.

If there is no suspension, we believe recent declines will continue. We estimate the average rate of 

decline will be approximately 6%, perhaps with slightly lower declines before insolvency and a 

bump at the time of insolvency. 

If the Plan can be stabilized with a suspension, the Board of Trustees expects they can stabilize 

hours and work at near the current level. For projections under the suspension scenario, we 

determined that a modest future decline of, on average, 1% was more realistic to account for the 

possibility of sporadic loss of additional Employers or members continuing to transfer home locals 

occasionally. 

BAC 7:145
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 24 

Plan Sponsor ID and Contact Information 

Plan Sponsor: Board of Trustees – Bricklayers 7 & Allied Craftsmen Local No 7 

Address: 33 Fitch Blvd., Austintown, Ohio 44515 

Phone Number: (330) 270-0453

EIN: 34-6666798

BAC 7:146
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 25 

Plan Identification Information

Plan Name: Bricklayers & Allied Craftsmen Local 7 Pension 

EIN: 34-6666798

Plan Number: 001

BAC 7:147
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 26 

Enrolled Actuary Information 

Name Kathryn Garrity, FSA, EA, MAAA 

Enrollment Number 20-05379

Contact Information United Actuarial Services, Inc. 

11590 North Meridian St., Suite 610 

Carmel, Indiana 46032 

(317) 580-8688 (Phone)

(317) 580-8651 (Fax)

Email: kgarrity@unitedactuarial.com

BAC 7:148
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT27 

Power of Attorney 

Applicant Information 

Plan Sponsor 

Plan Name 

Address 

Plan Number 

EIN 

Contact Person 

Contact Title 

Phone 

Email 

Fax 

Board of Trustees - Bricklayers 7 & Allied Craftsmen Local No 7 

Bricklayers & Allied Craftsmen Local No. 7 Pension Fund 

33 Fitch Blvd., Austintown, Ohio 44515 

001 

34-6666798 

Susan Cunningham 

Plan Administrator 

(330) 270-0453

susan.cunningham@benesys.com

(330) 270-0912

Applicant hereby appoints the following representatives as attorneys-in-fact to represent the 

taxpayer before the Department of the Treasury and perform acts related to the attached application 

dated May 29, 2020 for suspension of benefits under §432(e)(9) of the Internal Revenue Code of 

1986, as amended. 

Representatives Information 

Name: 

Company: 

Title: 

Address: 

EIN: 

Telephone: 

Email: 

Fax: 

Timothy P. Piatt 

Macala & Piatt, LLC 

Fund Counsel 

601 S. Main St. 

N. Canton, Ohio 44720

34-1933033 

(330) 493-1570

tppiatt@mgplaborlaw.com 

(330) 493-7042

Kathryn Garrity 

United Actuarial Services, Inc. 

Fund Actuary 

11590 N. Meridian St., Suite 610 

Carmel, Indiana 46032 

35-2156428 

(317) 580-8688

kgarrity@unitedactuarial.com 

(317) 580-8651 

Send copies of notices and communications to representatives: YES 

With the exception of the acts described below, I authorize my representatives to receive and 

inspect information, including confidential tax information, and to perform acts that I can perform 

with respect to the attached application dated May 29, 2020 for suspension of benefits under 

BAC 7:149
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICK.LAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

§432(e)(9). For example, my representatives shall have the authority to sign any agreements,

consents, or similar documents.

Specific acts not authorized: NIA. My representatives have full authority without exception. 

Signature of Applicant and Date 

I am an authorized trustee and am a current member of the Board of Trustees. 

Signature Date I 

Print Name ....___ 

BAC 7:150
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

Declaration of Representatives 

Under penalties of perjury, by my signature below I declare that: 

• I am not currently suspended or disbarred from practice before the Internal Revenue

Service;

• I am authorized to represent the Applicant for the matter(s) specified in this Power of

Attorney and Declaration of Representative; and 

• I am one of the following:

a. Attorney - a member in good standing of the bar of the highest court of the

jurisdiction shown below.

b. Certified Public Accountant - duly qualified to practice as a certified public

accountant in the jurisdiction shown below.

c. Enrolled Agent.

d. Officer - a bona fide officer of the Applicant.

e. Full-Time Employee - a full-time employee of the Applicant.

f. Enrolled Actuary - enrolled as an actuary by the Joint Board for the Enrollment of

Actuaries under 29 U.S.C. 1242 (the authority to practice before the Internal

Revenue Service is limited by section 10.3(d) of Circular 230). 

g. Enrolled Retirement Plan Agent.

Required information for Representatives: 

Designation Licensing jurisdiction Bar or enrollment 

(if a licable) number 

a OH 0080620 

f EA# 20-05379 

Signature Date 

BAC 7:151
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR 

BRICKLAYERS AND ALLIED CRAFTSMEN LOCAL 7 PENSION FUND 

EIN/PN: 34-6666798 / 001 

EXHIBIT 28 

Plan Documents 

The documents are attached as follows: 

Exhibit 28A (BAC 7:153) – Plan Document 

Exhibit 28B (BAC 7:225) – Amendments 

Exhibit 28C (BAC 7:257) – SPD 

Exhibit 28D (BAC 7:300) – Determination Letter 

Due to the recency of the Plan’s new Summary Plan Description and amendments, no Summaries 

of Material Modifications have been mailed. 

BAC 7:152
BRICKLAYERS 

AND ALLIED 

CRAFTSMEN 

LOCAL 7 PENSION 

PLAN 

Effocti ve May I, 20 I 4 * 

* Except as Otherwise Noted 

BAC 7:153 Exhibit 28A
TABLE OF CONTl::NTS 

ARTICLE 1: DEFINITIONS ....................................................................................................... I 

1.1 Accrued Benefit ...................................................................................................... I 

1.2 Active Participant. .................................................................................................. I 

1.3 Acn1arial Equivalent. .............................................................................................. 1 

1.4 Administrative Manager. ........................................................................................ 2 

1.5 Alternate Payee ....................................................................................................... 2 

1.6 Beneficiary .............................................................................................................. 2 

I . 7 Break in Service ...................................................................................................... 3 

1.8 Computation Period £'or Eligibility To Participate ................................................. 3 

1.9 Contiguous Non-Covered Service .......................................................................... 4 

1.10 Contrihutions ............................................................................. , ............................. 4 

1.1 I Covered Service ...................................................................................................... 4 

1.12 Domestic Relations Order ....................................................................................... 4 

1.13 Earliest Retirement Age .......................................................................................... 4 

1.14 Early Retirement Age ............................................................................................. 4 

1.15 Employee ................................................................................................................ 4 

1.16 Employer. ................................................................................................................ 5 

1.17 fiduciary ................................................................................................................. 6 

1.18 Forfeited Service ..................................................................................................... 7 

1.19 Hours of Service - Hours Worked .......................................................................... 7 

1.20 Inactive Pmiicipant ................................................................................................. 8 

1.21 Jurisdiction of this Fund .......................................................................................... 9 

1.22 Leased Employees .................................................................................................. 9 

1.23 Maternity/Paternity Leaves of Ahsenee .................................................................. 9 

1.24 Non-Vested Employee or Participant. .................................................................... 9 

1.25 Nom,al Retirement Age .................. ,, .... , .... , ............................................................ 9 

1.26 Original Plan .......................................................................................................... JO 

1.27 Participant ............................................................................................................. IO 

1.28 Pension Plan .......................................................................................................... 11 

1.29 Plan Year. .............................................................................................................. 11 

1.30 Qualified Dome tic Relations Order ..................................................................... 11 

1.31 Qualified Joint and Survivor Benefit. ................................................................... 11 

1.32 Qualified Pre-Retirement Survivor Benefit. ......................................................... 11 

1.33 Reciprocity ............................................................................................................ 11 

1.34 Restatement Date .................................................................................................. 12 

1.35 Retirement Benefit or Benefits ............................................................................. 12 

1.36 Same Geographic Arca ........................................................................................ 12 

1.37 Same Industry ....................................................................................................... 12 

1.38 SameTradeofCraft. ............................................................................................. 12 

1.39 Spouse or Eligible Spouse .................................................................................... 12 

1.40 Terminated Vested Participant .............................................................................. 13 

1.41 Total and Permanent Disability ............................................................................ 13 

1.42 Trust Agreement ................................................................................................... 13 

1.43 Trust Fund ............................................................................................................. 13 

BAC 7:154 Exhibit 28A
1.44 Trustees ................................................................................................................. 14 

I .45 Union ..................................................................................................................... 14 

1.46 Vested Participant. ................................................................................................ 14 

1.47 Vesting and Benefit Accrual Computation Period ................................................ 14 

1.48 Year of Service ..................................................................................................... 15 

ARTICLE U: CLASSES OF BENEFITS ................................................................................. 19 

2.1 Classes of Benefits ................................................................................................. 19 

2.2 Non-Duplication ofI3enefits .................................................................................. 19 

ARTICLE III: NOR<\,IAL RETIRE.VIEl'iT BENEFITS .......................................................... 20 

3.1 Eligibility for Nom,al Retirement Benefits ........................................................... 20 

3.2 Amount ofNomrnl Retirement Llenefit. ................................................................. 20 

3.3 Fonu of Benefit.. .................................................................................................... 21 

3.4 Commencement of Nonna] Retirement Benefits .................................................... 21 

3.5 Calculation ofBenelit for Tenuinated Vested Participants ..................................... 22 

ARTICLE TV: EAR.LY RETIREi'\IIENT BENEFITS ............................................................ 23 

4.1 Eligibility for Early Retirement Benefits ............................................................. 23 

4.2 Amount of Early Retirement Benefits .................................................................. 23 

4.3 Fonn of Benefit.. .................................................................................................... 23 

4.4 Commencement of Early Retirement Benefits ....................................................... 23 

ARTICLE V: FOR"\IIS 01• BENEFIT & ELECTION PROCEDURE ................................... 25 

5.1 Automatic Fonn of Retirement Benefit. ................................................................. 25 

5.2 Eligibility For Qualified Joint and 50% Survivor Benefits ..................................... 25 

5.3 Right of Election for the Qualified Joint and 50% Survivor Benefit.. .................. 26 

5.4 Amount of Qualified Joint and Survivor Benefit. ................................................... 27 

5.5 Conunencement of Qualified Joint and 50% Survivor Benefits .............................. 27 

5.6 Non-Applicability of Qualified Joint and 50% Survivor Be11efit To Disability 

Benefit ................................................................................................................... 28 

5.7 Qualified Joint and 100% Survivor Benefit Option ................................................ 28 

5.8 Qua Ii fied Joint and 75% Benefit Option ............................................................... 28 

5.9 60 Month Guarantee .............................................................................................. 28 

ARTICLE Vt-TOTAL AND PERMA"IENT DISABILITY BENEFITS .............................. 29 

6.1 Elimination of Disability Benefit .......................................................................... 29 

6.2 Eligibility For Total and Penrnu1ent Disability Benefits ......................................... 29 

6.3 Fom, of Benefit. ..................................................................................................... 30 

6.4 A.mount ofTotal and Pennancnt Disability Benefits .............................................. 30

6.5 Conunencernent ofTotal and Pe,manent Disability Benefits ................................. 30 

6.6 Termination of Benefits for Total and Permanent Disability .................................. 30 

6.7 Re-Employment After Termination of Total and Permanent Disability Benefit ..... 31 

ARTICLE VII- VESTING ........................................................................................................ 32 

7. 1 Vesting Schedule: ................................................................................................. 32 

ARTICLE YIU: DEATH BENEFITS ....................................................................................... 34 

8.1 Pre-Retirement Death Benefit ................................................................................ 34 

8.2 Post Retirement Death Benefits .............................................................................. 36 

8.3 Failure to Designate A Beneficiary ........................................................................ 37 

8.4 Application for Death Benefits ............................................................................... 37 

ARTICLE IX: SlJSPENSIO\'i OF BENEFITS ...................................................................... 38 

BAC 7:155 Exhibit 28A
BAC 7:156 Exhibit 28A
BAC 7:157 Exhibit 28A
BAC 7:158 Exhibit 28A
BAC 7:159 Exhibit 28A
BAC 7:160 Exhibit 28A
BAC 7:161 Exhibit 28A
BAC 7:162 Exhibit 28A
BAC 7:163 Exhibit 28A
BAC 7:164 Exhibit 28A
BAC 7:165 Exhibit 28A
BAC 7:166 Exhibit 28A
BAC 7:167 Exhibit 28A
BAC 7:168 Exhibit 28A
BAC 7:169 Exhibit 28A
BAC 7:170 Exhibit 28A
BAC 7:171 Exhibit 28A
BAC 7:172 Exhibit 28A
BAC 7:173 Exhibit 28A
BAC 7:174 Exhibit 28A
BAC 7:175 Exhibit 28A
BAC 7:176 Exhibit 28A
BAC 7:177 Exhibit 28A
BAC 7:178 Exhibit 28A
BAC 7:179 Exhibit 28A
BAC 7:180 Exhibit 28A
BAC 7:181 Exhibit 28A
BAC 7:182 Exhibit 28A
BAC 7:183 Exhibit 28A
BAC 7:184 Exhibit 28A
BAC 7:185 Exhibit 28A
BAC 7:186 Exhibit 28A
BAC 7:187 Exhibit 28A