International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #8 – 3.03 Plan Sponsor’s Determination of Projected Insolvency

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

includes the documentation set forth in section 5 of Revenue Procedure 2016-27? 

See section 3.03.

Document 8.1 provides the documentation of the projected insolvency including the 

documentation set forth in section 5 of Revenue Procedure 2016-27.
International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #8 – 3.03 Plan Sponsor’s Determination of Projected Insolvency

Document 8.1

Plan Sponsor’s Determination of Projected Insolvency

The Board of Trustees for the International Association of Machinists Motor City Pension Fund

determined after review of all of the available information and possible reasonable plan changes 

that the Pension Fund would become insolvent unless benefits are suspended as required under 

Code § 432(e)(9)(C)(ii).

United Actuarial Services, Inc., the Pension Fund’s Actuary, determined that the Pension Fund 

was in Critical Status as of July 1, 2008 when the Plan first became subject to compliance with 

the Pension Protection Act of 2006. In October 2008, the Board of Trustees adopted its initial 

rehabilitation plan which was designed to eliminate adjustable benefits in order to reduce the 

present value of accumulated benefits. This rehabilitation plan also declared that the exhaustion 

of all reasonable measures had been taken.

In 2009, the Plan Actuary advised the Board of Trustees that the Pension Fund was facing 

insolvency by June 30, 2024. No further changes were made to the rehabilitation plan, however, 

since all reasonable measures had already been exhausted in the previous year’s rehabilitation 

plan. 

In 2016, the Plan’s actuary certified to the Board of Trustees that the Pension Fund was in critical 

and declining status for the Plan Year beginning July 1, 2016. The Plan’s Actuary determined that 

the Pension Fund would be insolvent by the end of the 2025-2026 plan year. The actual 

certification is included as Document 5.1, pages 5.2 to 5.4, of this application. The Plan’s actuary 

determined this despite the fact that the Board of Trustees has taken all reasonable measures to 

avoid the insolvency. 

The application filed on behalf of the Pension Fund also provides detailed information on the 

reasonable measures taken into account in making this determination that the proposed 

Suspension Plan is necessary to avoid insolvency. These are detailed in the following sections of 

the application as outline below:

• A detailed description of the measures taken in order to avoid insolvency over the 10 year 

period beginning in 2007 is provided in response to Checklist Item #18. This includes the 

consideration of a facilitated merger in both 2011 and 2015 and a partition study in 2014.

• Information concerning the contribution levels, benefit reductions, measures taken to 

retain and attract new contributing employers, compensation levels and competitiveness 

and other economic factors is provided in response to Checklist Item #19.

• Description of how the various Plan Factors were taken into account during the 

determination by the Board of Trustees that all reasonable measures had already been 

8.1
International Association of Machinists Motor City Pension Fund

EIN/Plan #: 38-6237143/001

Checklist Item #8 – 3.03 Plan Sponsor’s Determination of Projected Insolvency

taken to avoid insolvency is provided in response to Checklist Item #20. This includes a 

mass withdrawal study which was performed in 2016.

• A description of all other factors taken into account during the Board of Trustees’ 

determination that all reasonable measures were taken to avoid insolvency prior to filling 

this application for approval of a benefit suspension is provided in response to Checklist 

Item #21.

The Board of Trustees began formally considering the idea of a benefit suspension in June 2015. 

See pages 8.3 to 8.35 pages below. Initially, just percent adjustments to the PBGC guarantee 

were studied to give the Board a general idea of the degree of suspension needed. The next 

study was completed in November 2015. See pages 8.36 to 8.63. A cap or ceiling on the benefit 

multiplier was studied with potentially the elimination of all post-retirement increases and/or 

the maximum reduction applied to employers that did not pay their full withdrawal liability. A 

follow up study was completed in March 2016 that also added the maximum reduction to 

participants that terminated prior to 1/1/88 or inactive vested participants with 15 or less years 

of service. A pro rate of the maximum reduction and the multiplier ceiling would also apply to 

inactive vested participants with 15-20 years of service. See pages 8.64 to 8.92. Then, the mass 

withdrawal study was completed to see if that would provide any meaningful extension to the 

Plan’s projected insolvency. When it did not, the Board decided to formally proceed with the 

benefit suspension. A fourth study was completed in November 2016. See pages 8.93 to 8.109. 

A flat percent reduction of 65% was suggested as an alternative to the multiplier ceiling because 

of the lack of history on many participants. Many special assumptions needed with a benefit 

suspension were added. The Plan’s actuary shared in February 2017 the proposed benefit 

suspension formula, which was the maximum suspension (110% of the PBGC guarantee) for all 

participants. See pages 8.110 for the final pension model (more changes have been made after 

this model was prepared) and 8.111 for a comparison between a flat 65% reduction and the 

maximum reduction. 

8.2
International Association of Machinists 

Motor City Pension Fund 

June 23, 2015 Board of Trustees' Meeting 

Preliminary Study on Benefit Suspension witb 

Critical and Declining Status 

Paul Bullock- United Actuarial Services, Inc. 

United Actuarial 

Services, Inc. 

Is g><:tuariles and Consultants 
Critical and Declining Status 

Recap on Benefit Suspensions 

• Key additional tool becomes available in the deep red zone 

• Benefits already eamed can be suspended 

• This includes benefits already in pay status 

• Idea is to take a lesser reduction now to avoid a greater reduction, 

down to the PBGC guarantee, when plan becomes insolvent 

• Actuarial conditions of benefit suspension 

• The Plan would eliminate its projected insolvency with the benefit 

suspension levels contemplated 

• In years after suspension, document that 

• the Plan would project an insolvency without continued suspensions, and 

• all reasonable measures continue to be taken 

United Actuarial Services, Inc. 

8.4 

2 
Benefit Suspension 

Recap on General Conditions 

• Suspensions cannot be lower than 110% of PBGC guarantee 

• No suspensions for 

• Disabled participants 

• Participants over age 80 with phase-out beginning at age 75 

• Suspensions can't materially exceed the level necessary to 

avoid a proj ected insolvency 

• If suspensions are done in conjunction with a partition 

• Suspensions can' t take effect prior to the partition effective date 

• Suspensions must be maxed out and more action is still needed to 

eliminate an insolvency before a partition would be approved 

United Actuarial Services, Inc. 

8.5 

3 
Initial Suspension Study 

• Goals of initial suspension study 

• Determine if maximum suspension, II 0% of the PBGC guarantee, is 

enough in which case a partition is no longer a possibility 

• What level of suspension is just enough and what do the funding 

projections look like; the fina l suspension will project similarly 

• Establish more conservative assumptions with any suspension 

• Update mortality to RP-2014 with the blue collar adjustment and a 3-year 

set-forward to custom match the table to plan experience. Disabilities use 

the special RP-2014 disability table with a 3-year set-forward. 

• Lower the assumed rate. of return to 7 .SO% as of July I, 20 I 5 

• Lower the asset return for 10 years stat1ing with the 2014-15 year to 6.75% 

United Actuarial Services, Inc. 

8.6 

4 
Study Results 

Current Outlook - Insolvency in 2028 

Here is the current funding outlook with the more conservative assumptions*: 

United Actuaria l Services, Inc . 

IIIIIIIIIIIIIIIIJ J IIIIII I 

i~:~;::ii~~~,.~=~!~iii::i: 

•we r«eh·ed !he: 1.86~ return for2014•1S ft~:J Ibis sn•dy W<'S coQl)leted. Ifdli."$l'l:l.tUU iudded to ttus sn•d)', we es!iltlllte th.1t the 5 in.w ln~nq would IUO\"'C: trp an tw.ldinoo11J )"'C:IIr lo 2027, 8.7 
Study Results 

110% of PBGC Guarantee 

The. maximum suspension, 110% of the PBGC guarantee, more than works: 

United Actuarial Services, Inc. 

8.8 

6 
Study Results 

180% of PBGC Guarantee 

180% of the PBGC guarantee is the most that can be done, with this outlook*: 

United Actuaria l Services, Inc . 

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How Are Participants Affected 

Actives Percent of Current Benefit at Ages 55, 62 

and 65 with 180°/o ofPBGC Guarantee 

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How Are Participants Affected 

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8.1 1 

9 
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8.1 2 

10 
Insolvent Reductions in 2028 

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II 

8.1 3 
Insolvent Reductions in 2028 

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8.14 

12 
Insolvent Reductions in 2028 

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- n~.,.,. ... ,",. :_,,.. ,,,_, 1.1ST.ll ... ,., .... .... , __ .. ·-...... -............ _ .... .- ·- M W ........ •- M .......... ._ .. _ .... -... ~~· ......... '"""'--"'""' ... "' • .... ..... M ~ ., u 

United Actuarial Services, Inc. 

8.1 5 

13 
Challenge of 180% of Guarantee 

• 180% ofPBGC guarantee may not be an ideal solution 

• Benefits not yet in pay status would be complicated 

• Guarantee would be on benefit with early retirement factor applied 

• Level of suspension changes with level of early reduction 

• Participants likely would have trouble calculating their benefits 

United Actuarial Services, Inc. 

8.1 6 

14 
Benefit Suspension 

Recap of Possibilities Under MPRA 

• Any suspension must be equitably distributed 

• Factors that may be taken into account include 

• Age and life expectancy 

• Length of time in pay status 

• Amount ofbenefit 

• Benefit type: early, normal, . SUrVIVOr 

• Extent of subsidized benefit 

• Extent of post-ret increases 

• History of benefit increases 

and reductions 

United Actuarial Services, Inc. 

8.1 7 

• Years to retirement for actives 

• Discrepancies between active 

and retiree benefits 

• Extent actives would withdraw 

support, which would trigger a 

drop in weeks and further cuts 

• Service earned with withdrawn 

employers that didn't pay their 

full withdrawal liability 

IS 
Ideas for Actual Suspension 

• Flat percentage reduction with 110% guarantee floor, or 

• Percentage reduction to benefits earned under 3.5% multiplier 

• These are generally the affected benefits with 180% of guarantee 

• This multiplier was derived from gains that later were lost 

• Benefits with the 0.5% and even 2.0% multiplier already hit enough 

• May want to give maximum suspension to some participants 

• Bankrupt employer participants that would've been patiitioned 

• Participants of withdrawn employers that paid no EWL 

• Inactive vested participants- but be careful: 

• Treat an inactive vested with 25 years same as one with 5 years? 

• What about inactive vested now in pay status? 

United Actuarial Services, Inc. 

8.1 8 

16 
Maximum Suspension 

Actives Percent of Cunent Benefit at Ages 55, 62 

and 65 with 110°/o ofPBGC Guarantee 

-- - - ti- K- ~ .. ~ .. » >< ~ .. -M 

~ - _,_ ~':'rJ.a· • • _...,...,,...~~-- -"' ~ .......... ...... ":"' ..... " 

", ", 

c,;o.,.,."" ..... ' " ., 

"' -"·· _..,...,,..,l,. - ,,. - · .. p<!"loil<l -- ~ 

-eo.. ·· ...... !- , It; -......... "' ..... ,. ... -' ' ............... ,.,._..,. "" l'<t. '~ ,. ·~ · ~- -· -· c.>. .. .rur-u • • • ,. • -·· ool.-11$~,. N .,_ = --.. ........... : .. :::! -- ,,ll ... ""' .. ,.. ..._ .... ,.. ......... • - ·~· -· < .......... ""' • , - • • ..... ,., ... ~ .... ··· "" ""' "' - -~ .,~ ~ 

.................... ,. ... "·'' """- ~- ·-<4-ol · - -........... ,.,. ... ' ' " • ' ' ' --~ .............. -·· -~ -·· -·· .. ... .., 

- ···"'All'"" ,,.,. .... ~ .. 

-~ • ~ • ' • ' ,. - · p<l1All 5" "' or UO>O- - ou< ,.~ .,. ~ ....... : .. ::';] '"'' --~ ....,.~ 

,_ w~ ~~ fl.~ 

-...~ ..r ......... <a---s• " - ~""' '"'"'"' , y -·u , • , -... -......... .,_ , .. .... -·e•""""'M" 1111• ... ~· ~ ..... ~~ )<';1 .. 

................... !> ... u• ~ .. »<!"' """"' .1,_.,.. _~ ... 

-Go>.ot<~ol- , , ' • ' " ............. .,. .... ,. ... _ .,. ........... , ........ " .. .. .. -•p<ill>l>M,,. ,, ~ 1'; \ .. 

-c.o. ....... r .... , • - "'to' ol Nl $:'>" -

_.. .......... : .. ................ 1" ........ _,...,_ ' " .. ... " " .. ' • ' ,_ ............. "*"'"' - w- .... .... .... ~ .......... _ .. _ .... .. - ··~ -- -·· ~· n - ,._ .. ~ 

To• ... ••~•-"'"""~" .... -·- '" ~ M .o " 

United Actuarial Services, Inc. 

17 

8.1 9 
Maximum Suspension 

Inactive Vested Monthly Benefit Impact at Age 

60 with 110°/o ofPBGC Guarantee 

11_,._. .. -u 

c:c .. m«M -·-«01< ...... ~11 -·-of ~~a,; ol PIIGC c;., • ..,,.._ Ao~oet•«~~ 

U"l9 

(OI;fV!(It~ 

.-...e·-~c .. u-~lt 

-WUJI' UOSQIP9GC ~~~-~ 

Mr~dPe<Ciet<l 

.... 

CO...f'li«M 

~~(t,itfll'fJI~ t 

-·-<>I UO!o: ot f'IIM:( ,:.,.,,..,....., ........ o~c, .. .-.~ 

.. , .. , 

c.c .. triJiM -·-•01• ...... -..tll -·-ol ~ 0!00 ol PIIGC c;., • ..,,.._ ........ _ .._"""" -u 

c.c .. m JAA 

....... _olc..·-~t _,.._(It UOSQI'P9GC ~~~-~ 

Mr~dhtocSH9 . CO...m«M 

~d(t,itfll'fll ~it -·d UOSOfP&GC G ........ ~ ~.Of~oeNI -

{0\IMd.tA ...,.,_..,c .......... _, --of H O!O'ofPIIC'iCGu•..,n- .... -.,_ol_.-.1 

·~ c.c .. m JAA ...,..,_ofcur...,.,-..r•t 

-·-ol O!o;oiPDCCG" "'"­ .....,,_ o! ,,.,.~,-,..=~=· Too:OI·c-mon•:... 

l<Moi ........ _ .. O..t--lil 

·~ _..., ol u.,. Cll,.eot - - toe T~ ·~· 0)1 fo««o>~ 

United Actuarial Services, Inc. 

4 Ol -

- 10.l4 ~ .. :n~~ 

'"·00 -??· 

• • • ~S6.U 711.2? 9U.1& lX.U .. ·~~ ,.~ ·~~ Mt~ 

• .. ·~~ -n _ " " .. l,U&.Jl 

» l!lo ... ,. £U~t ou .... ..,.. 717!00 8"1"- ""' 

"':a " " ' ..... "' ... ' " " ' ,,.,. $4)..41; Sl0.02 , .... l$7;110 191..&1 &2'0$1 .. , .. :S. 

L,.t ?a _ n51\- ZU!- .tU"" 

" .. •"•"" " nt.u ua~ 

l)l.ll :n•11 <ll~-ll 

797~ ... , .,~ 

_, • :~· OH-14 

ltOtO 1"'" 479~4 

-...llil ,,,~ 

' ~ "' » u~ u•- U?-1'0 ·~· "u' · ~ "'M ..... """ ...... 7U,. 

8.20 

~,. ~a -u Ot.-.IJot.ol 

,~~':> 

•n~ 

n "' 

UL&9 

U'-.119 

.,. 

" ... .. ULU 

t~~~-:tll! 

• 1.'01Al 7~JI " .,, ... o •n:: .. ..., AI"-' 

• ' 'G"-•1 " U1.S9 

""' ' ' " Ul!l'UI J..4U~ S7&._t4 

nuo 913.29 nus .,._ il.OIJI. Uflli 

iiU .. JII •"~ 710 .. 

' ,. l,.1t t ,0.1 $;.$_,, Ull..)l SQI..4 ') 

..... " • m 

'-'"·" .... .,.» $ .... ,, 

11'$,0, J..OlO·H n l.-r• ...... • .,.... 

18 
Maximum Suspension 

In Pay Status Impact of Monthly Benefit 

Receiving with 110°/o ofPBGC Guarantee 

-... - _ ...... ~M .... · » U ~ »U 

- . 

- .. ..... 

.._. ~ .. 

_,.w_ ., ........... -:, • , , -·-

• lOO.OC. lllt;~ 

~" lU~ 

..... ,.... .... ,o:o. .... ~c""""'- ••~ u ~u;,o ~U.O<I 

.... _.., "'"'"" ...... , .... - - -- '"" ~too'M ' " • , ... ........... "''"'"'"'' _...,, •uu ........ -- ·· -- _,_ « I tOio V. I>OGC <,....,.._ ........ .......... ....... - ........... K<O l'liUl ~.JO C.O).U ~1Dl n~.1~ 

·~ C. lUll ...... _ ... " ....... . ...... !11ll"f- 'IO S~ ~ ·- ~" "l: ~ 

-""""'""'- ' u " 0 " .. • " .... _ .... ,..,... __ .. llll.."'> »>H W7MJ 1:•n.c.n 2; • .0:0.10 l .l ..... 7., un.:• l.N1.>1 a.--- OIO>o.<ol"-""-'- ... ~ .. ...~ ..... ~w ...... -··· _,,., *.4"' ... ....... .... . _ ot ""''""' __.._ ... ......- M !&U!Ii _..... .. ~ "'" ""-••M- ' " , , .. ~ • , ... ""·'-"'''"'""'-· )''"" llO...O ~~ ·~ll l;O$l.O' ~·~ :1,114.•1 lUUl • .,..,oliO .. ••-O"ll""'"""KC~•- lU •• ? H0-'1:1 H:e.n '>'>l.'"l ..... t.J•n.a.<~ l.$0>~ '>'> ~~ ~1.1'> ...... _ ........... - u~ ~ 

~- _ • .. 4 .. ,. 

"-'vAA • " f ,. " • • '" .,._.,..,..e ...... ,,_.,. .,.__ ·-... n • n • nu ...... ....... ··· ~· • . .. U-.. ··-·· .......... ..... ,_ct ll~fl'l l>ot;CG-•...- a~ H~.!IO llO tO ~n ~~,. ... 90?, l) t 1.10.:• ,,..t u I <IU. iO ~n u .. _._.,.,on.,., ..._ .,. M ... n N ~ , _ ---C......I<I'IIOA • • " ,. " " " • ~ 

..... _.,c;.,.,. ... ,_...." 1.-.tA ,, .. ~·~ 1~ .-t .. __ .... ·-"" .. _.. ........... .._ l.O,.. .. ~~ 1_ ... , U.f')O. ~'~ 

...... _.., ......... -""'-''""""' 

...... _""'""'""'-· -·-... llo:M Ol'l'eCi( «-- ..... ""' ........ ~-· 

·-~~·"""' • > -,.---... -,;~ ' ' • ' " ..... _ ... .,....,. ... ,_ .. ..... ... . ..,.. .... ·-- -- ...... .......... -- . .......... ,,.,_ .. ...... .... ,_ <1'1 tt.oo.<>l"l'lti'-G.-- ~•» 

·~ · HliQ<I -x ·~,~ l:l I<) 1$.& -M tlltO» 

~··" ~Uil<l 

""··-~"'""""' -t.o...lld- • ' ' ' ' ' ' ,. -·-~, ........ _.,, •:oM Wl.'.O~ "'""·""" ... ~ 

_ .. ,..,,., ,. .. _,.. ~0 7 • ..... >o~~•ct• -Oil"_" __ 

····-··· ....... .... - -· ... *'"'" .. ...... -·· w .... ., ....... ~ .... ~· .-• ..r-.... • • . • • • • ... ,_etc ........ ,-, :t.Ul.l ~·~ ~01 ·~ "'"''" ~·~ .......... ""• •-., IJ(I'OI; ,..-.c;C:~•- nr.;~• 1>5'/.el) )11}.11) n:.u ,t:Jl-001 ......... ...... _""'""''-· w , 

l'____ c-..,_ ... , .......... _ ... ,, .. .. i. ... ,;;: o)l; ;; N .. it' 

- ·~· -M - ,,_,,,.J U " -'4' l--·"' ·~· V 'JT .Zl ,,. .. , __ .. u..,.,_..,._., ... ......,_ l..llll-.40 ....... ._.. . -~ M,_ ·-n -·· ........... .. .......... ~ . ..... '"""'- - "'""' ... "' • ou 

- ., Q~ ~ ...,. 

United Actuarial Services, Inc. 

8.21 

19 
2015 PPA Zone Status 

Funding Update 

• Critical and Declining status ("deep red zone") requires 

• Critical status, and 

• Projected insolvency within 15 years or within 20 years if: 

• Inactives to actives is more than a 2-to-1 ratio, or 

• Funded percentage is less than 80% 

• The Plan is projected to be in the deep red zone for 2015 

• An insolvency is projected in 2029, which is 14 years out 

• 2015 projected funded ratio is 61.0%, just need insolvency in 20 years 

• These results based on March 31, 2015 financials and other updates 

outlined on next slide 

United Actuarial Services, Inc. 

8.22 

20 
Basis for Funding Update 

• The projected zone result is based on 2014 valuation plus: 

• The 2014-15 retum is estimated to be 1.86% based on March 31, 2015 

financials plus 2% for the last 3 months (8% expected return pace) 

• Estimated future weeks are 5,826 per future year after subtracting out 

3,906 weeks per year from Ryder's withdrawal 

• Ryder's EWL payments are considered reasonably collectible and 

have been added to projections 

• The special assumption updates used for the study were not added 

because the PPA certification is based on the 2014 valuation result 

United Actuaria l Services, Inc . 

8.23 

21 
2015 PPA Zone Status 

Scheduled Progress 

• Scheduled progress certification satisfied if 

• The Board has reconsidered in the 2014-15 plan year whether all 

reasonable measures still have been exhausted 

• This reconsideration does not necessarily require further action 

• Should be done if it has not already; PPA requires annual updates to 

the rehabilitation plan 

United Actuaria l Services, Inc . 

8.24 

22 
Next Steps 

• Regulations regarding benefit suspensions to be released any day now 

• PPA certification completed 9/28115 

• PPA zone notice and Annual Funding Notice 

• Mailed out by I 0/28/ 15 

• Opportune time to also mail out suspension notice (submission of proposed 

suspensions must have already been made to IRS) 

• Would address concern participants may have regarding suspensions 

• Second wave of suspension studies? 

• Further studies will add 2014-15 retum from 2015 PP A certification update 

• Timing of suspension? 

• The reduction level will only be greater the closer the Plan gets to insolvency 

• If effective 8/I/16, should do 2015 valuation ASAP so estimated suspension 

impact notice going with I 0/28/I 5 notices would have latest benefit figures 

United Actuarial Services, Inc. 

8.25 

23 
Actuarial Basis 

This report includes results which are based on plan provisions, assumptions, methods 

and demographic data described in the July 1, 2014 actuarial valuation of the 

International Association of Machinists Motor City Pension Fund except as noted. 

TI1is report is subject to the same qualifications and limitations as detailed in that 

report. 

I am a Member of the Academy of Actuaries and fhlly meet the qualification 

requirements of the Academy to provide the opinion contained herein. 

Redaclt'd b:~ the J S L'cpartrrent of tne rt>asury 

Paul Bullock, ASA, EA, MAAA 

United Actuarial Services, Inc. 

8.26 

24 
Appendix 

Annual Benefit Impact on Actives At Age 55 

Retirement with 180°/o ofPBGC Guarantee 

._, ..... Oi\.ciC"r (O<.Ift(o/Ao\ 

~ 

-~~Co! o! G.tr•t"l ~roe 

-OCto! 180116 ol P!IGG ~'¥'~«' 

~CtOf"tf(~l 

,U .)O 

eo.. .. ooiM - •• ,. « c.,,...,.l -1\t 

-••eo of u.os«r~c;u.,...,.., 

- •• ,.of""'"'""' -~ co.,,.,.OIM 

~ac.eO! "' ~r,. 

~ftet of ~0! P&GC ~~ 

-re~~e 01 "'-tt(~"' 

)$-1\19 

c-ot-

-aee 0! Gurtt"t a-rot - ·•p<ol UO!ooc.lf>OC<G_t ....,_ 

-••1110olP<orun1 

--

eo..nooiM · •• ,.«c.,,....,., -1\t -••eo of UIOScof r~ c;,.,.,...,.., 

-•a.,.ofl'ootc>Onl ...... , 

(o..ntot"""' -•c.e 0! c..~"' a-r,. ~ftet of ~0! P&GC ~~ 

~lie 0! "'-tt(tf'l ..... ""'""otM -··•«a. ...... l~>l _,.,.cof l--cof f'IIGC G<o•r...,_ 

-··• or""'"'""' 'no· !ill 

co.. .. ooiM ...,.. .• .,..,.,c ........ ,-~~. 

~·et olt~Of1>9(j(. Wbf- -~~lle ot Pltf(tf>l 

f(>t .. (-otAA 

Ton. A~~Of(lltrotf\1~ 

Totello"'C!f"~ or t~ 01 PeG( tN¥o11t~ 

fot•l ,.~ otl"lef(~t 

United Actuarial Services, Inc. 

6.899 u ' U199.U 

S.6S9" .1$ 

US9.18 

,. 10.0~ 67 

10.039.61 

> 

U ,3;H.87 

U$U..31 

-···- ... _,., 

1U011.S • U,loOt l~ 

,-- 20.02•.• 2 

lQ.Ol• .. , 

' p ;u9.» 11,?49,)8 

2U6US ' 2U6U$ -' ,. - ... -·· .. --· . -· .. - ... 

8.27 

Gftf\41'oUI 

• 6.$99 .... 6.899 ... 

,. U ,:JII.$0 

U .7 .. $0 

oo· U.S42.» 

U.S•2.38 

25 
Appendix 

Annual Benefit Impact on Actives At Age 62 

Retirement with 180°/o ofPBGC Guarantee 

•-u"""' _v.o.~ ... ""l, eo-tel .... ....... <Ac:,,.,..,,_, ...... _ « li!IO'o 01 ...cc c ... ,_ 

""tftlft<)'( .. tf(to\1 

"''"'' -c ....... ...:M ...... _-, ......... -:, <btfwt Of l~OII'Eic;( cN.•- ..... ,.. ell'<~.,., 

-~ eo....oi<AAA 

N•t"'Nit~('-""~' ~11 ..,..,..,...,;t_..,l,.occ:o .... _.. ....... , ....... , ·~ , ....... """" 

"l'tfllliltd '""'""' ~~~ -•-olliiCI"'eiCIKC:G<oot•-

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-c-• ...-..... ..... __ ,..,., .... -.. ... ., ... Oilll-Oo!1111CCO...._ 

.ll;otf~\l<l'tf(tf>l 

,.~ 

to.:>!loiAA 

...... _"", .......... -:, ... ...._« t(loi)lo(lt~(Guo"•"'le" 

.................. , -...... '""-"··- "'I•«C:--• _;, .._. ... IJril~(li' Ul~(olfOMC:O...,,-. 

........ e~ ....... . 1otaiC-otM 

Toui--Oi/IC:oo,.•..,-111. 

•~-OJ'~ OI ~'"'"Moeoe 1<ot<tl~..trc...,.o:ot 

·--

United Actuarial Services, Inc. 

·· ~ .... 

• 

8.28 

• 

" l.oll~ 4 .. .... !11 ... 4 

" 

26 
Appendix 

Annual Benefit Impact on Actives At Age 65 

Retirement with 180°/o ofPBGC Guarantee 

-- . - .. ~ ~ ~" l5-tt »__!• ~ .. ,.,. 

C9•••")(U --,. 

• ~· - -·~ • - ... ""'"""' -·n• OJI;o.;-'t t_I>)Uo!l - ... ,; MIOO.<t! <>IIQI: , ... ..__ ... ~ .. ~ ..... J., ~ 

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.'1$..,. 

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.................. .. 

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--~ __ .................. , .. _ • po;oo ... ...... ~ ..... ............. H,Un-' ... ....... , .............. ..... -.... , .... ~ . ..,. .,/)WOof* " ,~,, 

M . .. , ..... ,,uru. • • n • • w 

--~"""""'-'"' l .Hl!U C,.OOt.O.O __ ' xc.v. nou.~ lQ.v».n >IUN~ ... ,.... .... IO";lC; ....... ._ $~l.V)l .... ~.~:.ooo 9,U9.4.0 :i~J.OUll U ... n'l>: ~,. ... ,.,.. --·'--' '~ "" 

y .ou.o 

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- ... .,ru ...... -.n· ''·~·(.} ' ' ,_,,,,.;,o ......,._,; lOO'&of"toCX e ...... ...,... H.IPl.O? :l.)11!.l'O l"--U '''"' •l 

-0110~-· · .. .. _ , :ilw:'i ..... .:-......... • •• .. M " " .. , , _ •• .,. .. ,..,. o.rr.,.t .,._ ?Ullf , ,tPoU lO..,..lol$ u .u'"' u.ouwt u ..... o..o\ • lC\:.11·' · lll.4"l, ,. ).~41 U.l".l" l';..U),.oq ................... , ..... ,,._,.,_oM- '"'!"'" ··~" · .. ............ •.• ,wo ....... ........... . ............ ~ ...... ,. ~ .......... , u,.-. .. ..,~ ............. , .................. "'''"'" ... .... "~ --- United Actuarial Services,. Inc. 

8.29 

27 
Appendix 

Annual Benefit Impact on Actives At Age 55 

Retirement with 110°/o ofPBGC Guarantee 

._ ..... _o-nd(OO'~s-­

COI.r"'' ol u. .... _qe otC""'tn~ ~.c 

..,.tr11$t or ttC* 0'! ii'SGC C:W.•o~>lft 

.,._fil'eOt~cl'tl'l 

,u;.J .. 

~.,~ 

.......... of c .... _ ~~o~ 

- .... of ~co!~o:. ... , .,,_ 

........ .. ~-¢-

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-ll~ otCIN•- ~r~ .... (!011~ ot t!C* of PEl(;(. ~ ... 1\Ttot 

,.,._qeotf>to<ctnt ..... COv<'ol ot u. 

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·~ ~.,~ 

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-......... ..... ... ,_¢_ ~~~-~.:. ........ - •S·49 

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.... (!011~ ot l!C* ot PEl(;(. ~ ... 1\Ttot 

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-

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-··· ..,._fil't cl ot ~·- UC* ot IOo...flo PaGe ~roll~ 

""~ot~·c- ToWitot.o~tcifAA 

TOW!A¥tt~o:l 

row AYertoee of C..

110.0

rrerot 

1 

~ 

1'80CGY¥ ... t« fou.IIWer•(lll~-

United Actuarial Services, Inc. 

SU.01 ' ~H.07 

01-Gol 

" S,6S9,78 

S.U6.4l 

..... 

,--,· tQ.Ol9,67 tM23.81 

10.03961 tU0$18 

~:.~' -- ... --~- ' 

' 6.7S0.84 • •uous 

4,7l1.0.0 u,.:n.,J 

• :J.!Ill.o.l 'lo,OH.liO ' 

3,!1lJ' llC S.GH..IO 

,. 10..29842 

10..)10..» 

H . TU J.q ' l.u»S.C. 

, .. 10.67 .. 1-t. 

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,-

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28 
Appendix 

Annual Benefit Impact on Actives At Age 62 

Retirement with 110°/o ofPBGC Guarantee 

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29 
Appendix 

Annual Benefit Impact on Actives At Age 65 

Retirement with 110°/o ofPBGC Guarantee 

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' ... ~ ' • - 30 
Appendix 

Annual Benefit Impact on Actives At Age 55 

Retirement with 1 00°/o of PBGC Guarantee 

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31 
Appendix 

Annual Benefit Impact on Actives At Age 62 

Retirement with 1 00°/o of PBGC Guarantee 

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8.34 

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Ill~:::: 

32 
Appendix 

Annual Benefit Impact on Actives At Age 65 

Retirement with 1 00°/o of PBGC Guarantee 

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United Actuarial Services, Inc. 

8.35 

33 
International Association of Machinists 

Motor City Pension Fund 

December 4, 2015 Board of Trustees' Meeting 

Study on Benefit Suspension witb 

Critical and Declining Status 

Paul Bullock- United Actuarial Services, Inc. 

United Actuarial 

Services, Inc. 

W~ t<'•uaries and Consultants 
Critical and Declining Status 

Recap on Benefit Suspensions 

• Key additional tool becomes available in the deep red zone 

• Benefits already eamed can be suspended 

• This includes benefits already in pay status 

• Idea is to take a lesser reduction now to avoid a greater reduction, 

down to the PBGC guarantee, when plan becomes insolvent 

• Actuarial conditions of benefit suspension 

• The Plan would eliminate its projected insolvency with the benefit 

suspension levels contemplated 

• In years after suspension, document that 

• the Plan would project an insolvency without continued suspensions, and 

• all reasonable measures continue to be taken 

United Actuarial Services, Inc. 

8.37 

2 
Benefit Suspension 

Recap on General Conditions 

• Suspensions cannot be lower than 110% of PBGC guarantee 

• No suspensions for 

• Disabled participants 

• Participants over age 80 with phase-out beginning at age 75 

• Suspensions can't materially exceed the level necessary to 

avoid a proj ected insolvency 

• If suspensions are done in conjunction with a partition 

• Suspensions can' t take effect prior to the partition effective date 

• Suspensions must be maxed out and more action is still needed to 

eliminate an insolvency before a partition would be approved 

United Actuarial Services, Inc. 

8.38 

3 
Benefit Suspension 

Recap of Possibilities Under MPRA 

• Any suspension must be equitably distributed 

• Factors that may be taken into account include 

• Age and life expectancy 

• Length of time in pay status 

• Amount ofbenefit 

• Benefit type: early, normal, . SUrVIVOr 

• Extent of subsidized benefit 

• Extent of post-ret increases 

• History of benefit increases 

and reductions 

United Actuarial Services, Inc. 

8.39 

• Years to retirement for actives 

• Discrepancies between active 

and retiree benefits 

• Extent actives would withdraw 

support, which would trigger a 

drop in weeks and further cuts 

• Service earned with withdrawn 

employers that didn't pay their 

full withdrawal liability 

4 
Benefit Suspension 

Funding Conditions 

• The proposed regulations released on June 17 outline the 

funding conditions that must be satisfied after suspension* 

• The solvency ratio must be 1.0+ for extended period of 30+ years 

• Ratio numerator: beg. of yr. assets + inv. inc. + contributions - expenses 

• Ratio denominator: expected benefit payments for the year 

• The funded ratio is at least 100% at end of extended period OR the 

solvency ratio only increases in last 5 years of extended period 

• "Goldilocks Rule" - The above tests would not be satisfied if the 

level of reduction per participant was 5% less 

United Actuarial Services, Inc. 

• The re<]\~netu d,., , a ~QC l<1Stk proj~;C ioo. bM at e<~st a SO% chat>ce Q( no insoh-enq• dl.lllll@: extelldcd period IS on)y requited if 5 

plao ~ lO.OOO+ nrticipau ~ ru:td doe:sn't apply to lllis Plan8.4Q>roposod rep. lhese conditiom nre wbj«t t\H barttte \\itb filial rc:ss. 
Current Outlook 

Insolvency in 2025-26 

The insolvency has moved up I year due to a weak -1.18% return in 2015-16 so far: 

United Actuaria l Services, Inc . 

Note:; •l.l S% !"('rom est.inutle based on 9/JOJ 15 \lllttuditW firutnci.o,Js, tbm. rel\.lro at 6,. 7 S% per attn\JW t<~ te Cot rcro.1ioing 9 woutfts, 6 

8.41 
Suspension Studies - Round 2 

• At the June 23rd meeting we were asked to value what level of 

suspension would be needed with the following changes: 

• Study # I - Lower past multiplier in 0.1% increments to a new max ceiling 

• The 3.5% multiplier benefits would be affected first, then 3.4%, etc. 

• The floor benefit would still be 110% ofPBGC premium 

• We assumed pre-1988 termination participants (whose benefits are based on a 

crediting rate and not a multiplier) will always be below the ceiling multiplier 

• Disabilities/age 80+ participants protected, ages 75-79 patticipants partly protected 

• Study #2 - Eliminate all post-retirement increases, then follow Study #I 

• Study #3 - For participants of employers that didn't pay their full EWL, make 

the minimum suspension high enough so that the corresponding liability value 

equals to their employer's unfunded liability, then follow Study #2 

• All suspensions are assumed to be effective July I, 20 17 

United Actuarial Services, Inc. 

8.42 

7 
Study #1 

Historical Multipliers 

• Multiplier levels subject to reduction in Study #1 

• Pre-7/l/04 contributions 

• < 1.6% multiplier assumed if terminated prior to 111/88 (detailed data n/a) 

• 2.9% multiplier if terminated prior to 7/ 1/91 

• 3.1% multiplier iftenninated prior to 7/ 1/92 

• 3.2% multiplier iftenninated prior to 7/ 1/93 

• 3.3% multiplier iftenninated prior to 7/ 1194 

• 3.4% multiplier iftenninated prior to 7/ 1/95 

• 3.5% multiplier is otherwise used 

• 7/ 1104 to 6/30/06 - 2.0% multiplier 

• 7/ 1/06 and later - 0.5% multiplier applies on credited contributions 

United Actuarial Services, Inc. 

8 

8.43 
Study #1 Results 

1.6o/o Multiplier Ceiling 

United Actuarial Services, Inc. 

8.44 

9 
Study #1 

Impact to Historical Multiplier Schedule 

• Pre-711/04 contributions 

• No reduction if tenninated prior to lll/88 (detailed data n/a) 

• 1.6% multiplier is otherwise used 

• 7/ 1/04 to 6/30/06 - 1.6% multiplier 

• 7/1/06 and later - 0.5% multiplier remains unchanged 

United Actuarial Services, Inc. 

8.45 

10 
Study #1 Results 

Active Accrued Benefit Impact w/1.6% Multiplier Ceiling 

8.46

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l • 21JQ .,., .. 7~ Z!lo 

21KJ, olli"T 

:J' 

tJ....:..a;, 

7a:o...;,;o 

..... ... _. .. .21! '!: ....... ., :1 ,.- JI.lll 

,., ~ .. :P ~ItO .. 

Jl""\. .,.,.. 

c;,.. :l, ..lU-.k1 .Hi ~ 

--~ H-.Mi 

-

~ 

J"ll:hL..IIW 

!1-

"' :s. :LUW41..A!ll ;a._~a,..rg 

Jaloul2 I' nc• lL<Il 

-- .., .. ] ;z z .. 

-t .oiJ :s. ,;jl ... -~ 

U'l7..1'_ ..... .....,,._loi.JI :.a.. c.~ .di ""'.]I~ ~-m...:.-=- 7 

..... _'1lfoo'lj 

_. ..... 01 ;r ;! • 1 zr, Z'J(I~ ;z;z 1.~10,. 01.""""~ ..,~.., (1]1 l..._.,ll 1~73 ,2' L"T:t.o:n. uz~ .... z 

2 

i:ta!Uilo 

~ ... :L 

,.,.. .. ... • • A ~ 

I "ITJIIL..ift"'' 'l. r~L:..,. 111!11~1 . .... 

.... 

~ 

:r.1: 

.. - • az 
Study #1 Results 

 Inactive Vested Accrued Benefit Impact w/1.6% Mult. Ceiling 

8.47

............ both "' c;.:..,noco .. iAA 

.,..,.., •• c.( D~N "tT 

JOVCf'ajlO Of Study 1 &E-N FIT 

A"'~"8'" o r "'-"' 

·~~ eout'otof ... ,... 

Av~.-'!8"!! o t &€NHT 

"'"•.-•t~J• o f st.u<lv 1 ot·NrtT 

Av0f;lo80 of ~-"1 

--Counl of A.l't. 

....... otaao or eENf'tY 

Ave--aae or Sn,o(ly 1 8E'N#OtT 

Jt,.v•.-•s• o f Poo...,.•u 

~·"'f 

Govnto'AA 

01-1).01 --

41D.o:J 

)U.,!U 

74 'I~ 

• ...... 

~01..~ 

~.· 

•• u:t;,.e 

22 • • .1.2 

~ .. 

"' 

1(1.1.4 

· > lOl..OD 

.l!:llt-.23 

,. ~;)1 4.ll .. J~.$9 ' o;,:J 

~-

,, ..... • • .,.,.....62 

...... ,...,. 6~.4" 70.6,. 

» J~ov•o-•~• of •c:.N II'IT "' 

AYCoO'aao of '!1-'ludy 1 DENf't1 

Aver.fl&e o r P~nt 

n.~-- Clollt ~ .:..17' 

1U.S.. .w$.0'1 f:>oa6 • .1S 

" 

COufHOf.IV< 

A.,<l:f" .. lil<!' O l 8ENIF'IT 

Av•o-•s• of ~tudy 1 QII:NI'tT 

........... ". <>1 p_ ... , ..... co .. n• oi IV\ 

Jt,.VOoat;O Of ISt'NrtT 

.Ave<"•ae o r Stvdv 1 &ENFtT 

Av•o-•s• oi P•o-a.nt 

-~ C:ovnto-tA.Po 

Av•r•e• o t Q~NC:IT 

...,.,.,,. • • o r SluCiy 1 Ot"N,.T 

... ..,.•tae or P~rn 

~ 

cc:ountofAA 

Ave•aae or 8ENf:oT 

Av•.-.,8~ ol $ tudy I AI&'NI<tT 

J~.v••••• of p,....,..,, 

f. G~ 

• .. 

243.03: 3:27. ,., 

' ~ 

:J».07 ::tn.n 

U7 . • m .se 6!>.~ • ~-

;ill'9.17 "' ~~.)() 

766 .. 

• )21.12 

)<M..)c7 

...z!:?" Tout C.OUI'I\01 AA 1 :t u< 

TO'>I-1 A-noc~ of A.I'"NI<IT ,,0!01.7'n l!~O<; u ·-a .c.c;-

Tot..oJ A- tOOK .. o( $l....,., l ei_,HrfT ·===:. ii =·~ Total A....:>o'~.C Of Nf<e-At 4't,~ .1'0,..,.. 

" 

United Actuarial Services. ln"c'-'.'--

..... ..... ~ • $77.2$ f,)A, ,., 

.-os.:Jl. !ICU.~ 

" 7 •:>1 . ,7 -.~ ...... 600. 1& 

n.,. 70.3% 

.. .. -~ !l<l~.17' 

~4!t.:l7 ~O.:l& 

...... ''"" .. , h~ O') ~.01 

71)0. u !147 .0<1 

... ... ~ ..... ........ ~ 

-':OU-11 ~·.~7 

... ~ .. .-

_,. 3·~ 

• > 1~.10 a!l6.1l. 

• 14Y.t 8C) ..... .... ' 

,u ... o7 ll.l~.4.t 

... • 

7 • U~:Z..I» .,,..,,a 

867.)9 8~ u 

as . .-~ 

• Ut.a..tU aN.:u ' a». 'tO ~~ 

68-6'i 

.. •• 111 ...... t U'Ii.I'A 

- :S.O-' _ ..... ., 

... -

"'-'" 

-~ 

~ • .n ' noo.~ 

. ..t:a..,:a..ae: ' 

.lo.Q.S1 

~ 

1AUO.G7 ' ~7.n 

7"" 

2810,60 ' 

...... 

1<tA4.

-

07 

...... 

:t.!i·:$~ 

1!>4S-.7'~ 

087 ~ 

....... 

...... u ' ""~-~ 

-

•~w ' ~ .. ...... 

-

lTni.UI ' ·~..,..,1 

...... 

t G-..s..- ' 

=.u 

...... 

ll:n.oo ' 

:U6.12 

...... 

.. 

_,.,lt.37 

•tS13 

~·% 

~3.70 " 

.t-\.07 

'1'0.-~,. 

... t;tl ...... , 

407.-

?.t.t'K 
Study #1 Results 

 In Pay Status Impact on Monthly Benefit w/1.6% Mult. Ceiling 

8.48

" uw""'t»ot• 

....... Count ot b..A 

Av•o-oo.s- of-n•fll 

Avef'~O o r S~u<IY .1 &o<'\nt 

Avoeo--a"" Q l P<en:...,...• 

!>'li- $9 

co .. ,., ot A.A 

Av.eo-.-..re o r 4M!!n<efll 

Av•.-.. • cof Sh•dy 1 -nhl 

AVOf'~·C) Of floC)f'(!C)f'lt 

-Cou "l of A.A. 

Avof'a•o or &4~flt 

Av.,.~ of sn .. <lv .1 &e"'n' 

Av•o-oo.s• o t -<"CO•nt 

~~ 

CounlofAA 

AvCWai[O Of &e ... ef•t 

Au.eo--a.e o r Su•t:lv I ll:l>enh• 

Av•.--.• of - .-c•nt ~, .. Count ot AA 

Av•.-.,.•of-n•f•t 

AV(If'~j[C) o r $tu(l'y 1 &Of'tflt 

• ,..,.~or P<ef'(:ent ,._.._.,.. 

Cou ... tOfAA 

.... .,.aa.e o r kneru Av• .. ~• of llitudy 1 G•nht 

AY0f';lolt<l' Of floC)f'("Of"'t 

..... Cou nt o( A.A. 

AvOf';o&• of -~fot 

Av., .. e o r Sn.od'Y 1 &ef'llit 

Av•.-..•<>1-<"CO•o-tt 

... Count or A.A 

Av•.--.•ot-n•1u 

AvC)f';lo&O of Study 1 -f'tflt 

A"'e<'Oo£"e o r P<eo-cc-ent 1 out <::ouon of AA 

Touot Av.,.se or ll:l>ene-11~ 

TobOI Av-"'tl• of $.U,od'y l Jt• ·nllt 

I OU.I ,A..,C)o';lollt0 Ol VC)t (C)t~t 

•• -AS ~~:::::: ... A> 

·~ 

......... ' 9 

• 

s-.u.02 

• l1.2.u 

• :S7l.. T.l 

...... 

..... 

• «>AS 

:n.4.~ 

!.0 - 14 

:S:l:t.!lo!J ' 

US.lO 

• :l(o~. ?SI 

.. so;..eo 

20 

237.,., 

, J'lU·...:IO 

>.SLi> 

. ,.~ 

, 

17,...!19 

~.!lo:S 

:I?:Z:.lU "' 10~\o~Ait ' 4!J1. 6S . •

==== -'~2.!U lOfiA ') 4,1.M 

eo ~ 1.08 

)9-I_.S ~'l'.S:l )()2. ~ 

United Actuarial Services. ln"c'-'.'--

Ci-1* 

s ... A> 

•• 

)'&1). '1':5 

.. 

'j6(1,00 

' 

~ ~-

-" 5-UU)A 

• ._ .. 0 

UU.GJ 

u ,. 18.,.,.. 5-S 2bS.'9S 

•• » ~tl 20 2.SH.61 

.. .. 

ll)2,4 6~ 11)t!o3 .• 0$ 

...... 

~.s,.: 

u .. ..,.,,$1::o 1on.86 ~ 20 102.11.6$ 

,. 7 

~·"'"' 1~,s 10J..S..70 

an..,., 1:z:oo.,:> 1ou.:ro 

-- •~w 

• • ~4G • .., .• o 

•• • U'j"7.0. rio&S. 6,_ 

>7 • 260?.1.1 .1.'t2l.. 11 

, s • .1.,.06 lOII.t.:t:.t 

tl:l-2.01:> 1-otll-.22. 

s1 <ts 

U04,GA .t .. U.7S 

u•:r.llll uso.,... 

-·"" , ... .,. 

-

1&l.S.:M ' 

, 290>0.50 

G • ,.••d Tohol 

• 410.00 

~*-- 88 

•• l<ltl(l, 7a 

~ 

1-SU-6~ 

U> 

1~1ti....O 

U70.U '" 

7'0.68 

..... 

., 

ll)!it7.aa 

-1 •• 1 

)'!$ ~,. 

= 

OVJ.U 

8.2J 82 
Study #2 

Post-Retirement Increases 

• Past post-retirement increases subj ect to reduction in Study #2 

• If retired before May 1, 1988, 10% increase 

• If retired before May 1, 1989, 5% increase+ 1% per whole year retired 

before Jan. 1, 1989 with max increase of 25% and min increase of $20 

• If retired before July 1, 1991, $20 increase 

• If retired before July 1, 1994, $100 increase 

• If retired before July l, 1995, $20 increase 

• If retired before July 1, 1999, $30 increase 

• If retired before July 1, 2000, $20 increase 

United Actuaria l Services, Inc. 

14 

8.49 
Study #2 Results 

Repeal Post-Ret Incr. & 1.6°/o Mult. Ceiling ......... 

The savings from eliminating post-ret. increases didn' t move up the 1.6% multiplier ceiling 

r-·-

........ >'If " "'~' ... ,

United Actuarial Services, Inc. 

·--

8.50 

IS 
Study #2 Results 

 In Pay Status Impact w/1.6% Mult. Ceiling & Repeal Post-Ret. Incr. 

8.51

"uw""'t»ot• 

....... Count ot b..A 

Av•o-oo.s- of-n•fll 

AVCf'~O o r $~u<IY 2 &0<'\0t 

Avoe<"-ae Ql P<en:..,..• 

!>'li- $9 

oou,.t ot A.A 

Av.e.-.-..re o r 4M!!neflt 

Av•.--.• cof Sh•dy :l: -nhl 

AVC)f'~·C) Of floorC.Oo'lt 

-Cou "l of AA. 

Avora•o or &4~flt 

""'".,.~Of" sn,.(ly 2 &eront 

Av•o-oo,s• o t -<"CO•ru 

~~ 

CounlofAA 

AvCWai[O Of &e ... Cf•t 

Ave.-"'&~ o f Su•t:lv 2 ll:loenht 

Av•.--.• of .-c•n~ 

~, .. Coun~ ot AA 

.......... .,. ... ,-... ro l 

AVOf'aJ[O O f $tuCI ... ~ $Oftflt 

"""'.,~or P~f'(:.,., ,._.._.,.. 

Cou,..tor A.A 

.... .,aa.e o r kneru 

Av•.-~• of Study :il ••""' 

AvC)f';lolt<l' or O>of'<ef"'t 

..... C:OUt'Olo( AA 

AvOf';o&• of -~fot 

..... ., .. ..,or Sn.ody 2 &e""' 

Av•.-..•<>1-n.•tU 

... •• -~ 

-===-""' 

·~ !.0 - 14 

:S:l:t.!lo!J ' 

US.lO 

' • ......... 9 :l(o~. ?SI 

• .. s-.u.02 so;..eo 

• 20 

l1.2.u 237 ~ 

• , :S"?'l.. T.l J':U-...10 

.... oo >.SLi> 

..... . ~ 

• ., ...... 17,...!19 

:n.4.~ ~.!I:S 

Count or A.A '70 i 4 

~·-

s 

-A> 

•• 

)'&1), '1':5 

~ 

'j6(1,00 

' 

-~ ~- -- -" 5-UU)A 

• 0 ._ .. • UU-GJ ~4G 

u ,. •• 18.,.,..ss 2bS.'9S U'j)',O. 

•• » n 

~tl 20 2.S2!t.61 260?.1.1 

" ». ;l::U..!J..47 ll!ll!>.4 7 

122$.61 12$2.$4 

....c-. . . 

» » 

ll)24 (o3- 100.3--0:0 

..C.!>O .7::1.1:) 

~ .. - 8Ll~ 

u u ..,.,,$~::. 1on.86 ~ 09 102'9.6$ 

•• 7 

•~w 

• 

• .., .• o 

• rio&S. 6,_ 

• 1't2l.. l-1 

s 

-

l&l.S.:M ' 

• 290>0.50 

G•,.••d Tohol 

• .. 10.00 

~*-- 88 

•• 

l<ltl(l, ?a 

~ 

1.SU..6S 

u• 

1l1ti.,&O 

U70.U '" 

.622 .... -:==~"';~ "' .,. "'"' 2 "~ 

., 

ll)!it?.a.t. 

NO.? • hJ_.,,. 

= 

en.u 

., .. Av•.--.• ol - .. •1u :l?l:.•t loo-IA.It 4!11 6.'5 

AvOiO'f';lo&O Of Study 2 -o'l.flt ·===:: -'~2.!U 1""""'.4-:t 4,1.M A"'e<'Oo,i"e o r P<ercc-ent 

~·"'"' ·~,, 1-0l.S-.70 

an..:s., •zoo.:~-:> 1ou.:ro • .1.,,06 lCMU.:tll 7"6.04 tl:l-2.01:> 1-<*1.2.2. 746..001 

rowl <:ouo~t ot""' 1110 ~ ~~ 9'; 

T<Oo\Ofll Av.,..~re or &enent 3~-*"' .,...,.s2 )C) ~ O:t9-~JTot.t "'"-"'l!l• ot liU•dV :t -..n, J=::::; ~-~~~j[. -.uo. . .t7 -·- ,.;s.~n 0~1 Av~;~oao 01 vo.·ceoo" '"· '"';....!"'!!!'--'"".' " 

United Actuarial Services. ln"c'-'.'--

- 11!> ~10 $4 :t00L01 

-=:11-"'.:Jl l;tOLOG :t..M4 •• 1 USO.,..., 1-.-

'"'·l ..!"'"""" -"'..... M,QM. l'lt--'"' 

... 

ll>. ... , 

:n.o ••• 

--
Study #3 

Orphan Participants 

• The following employers didn't pay their EWL and, based on 

individual asset workup, have $0 as of 9/30/15 so their 

participants are "orphaned" and can be reduced the maximum 

• ABC Paving (Employer ID is 11 00) 

• Borman Foods/Fanner Jack (1503) 

• E & L Transport (2500) 

• Pyrek Transport Inc. (6400) 

• Thomas Goodfellow (3200) 

• Other bankmpt employers can't count because they had no EWL 

• Ryder (7313, 7300, 7104, 7103) didn't pay 10% ofEWL but 

their assets cover participant liabilities so they aren't orphaned 

United Actuarial Services, Inc. 

8.52 

17 
Study #3 Results 

Max Out Orphan Participant Reduction, 

..___, Repeal Post-Ret Increase, and 1.9°/o Mult. Ceiling 

Keeping post-ret increases didn't help boost multiplier aga in so we removed it from Study #3 

- ""' .. -

--

United Actuaria l Services, Inc . 

8.53 

18 
Study #3 Results 

Active Accrued Benefit Impact w/1.9% Multiplier Ceiling 

8.54

-......... _,. ..... (1 .. (>4 

-~ ...... ~~ ~ ~·~ 

-- >~M 

- G •-Tot•r 

V -H 

c ....... ~ .. ·- ' , , ................ ~ ....... Jc.6? ~.:loll 

....... - .... Of s ..... .,. ~~~~- l!.olo? ~.-"'Ill ~· ................. _._... . ~· ........... c....,.,, .. ,.,A ~ ~ 

A .. - ... 01-NA -A> -A> A .......... <t>1 ,.,,.(1'( '0 .. ,_ _A, Av•••i.• 0.! -~o\1 liii- ~· 

-·-c .................. •• ' ~ 

.... _ ......... ~ ... " ..... ) 

............. 

.... ~-......... Of t.O -........... ... <t'(. ~~~~- .il .... 

;;;; 

ill. -.u -~· ,. -

-~ , ....... 

c ........ torAA • • • • .. A Y-•11.• AI - N A ·- ~ .. "'-··" _, ...... .......... .. .......... A,..,~ AI ...... ., .... _ -"' 

A"'"'"$* A I -~· ~- ·-- ~ ..... --eYv..,, o r AA , ,. """'•-oiMNA U> J,(IQ ..,., ,,l_ ... ,.,,_ . ., ..,,.,. •• ..,. o •! $tvdy " "-C-NA ·- ,., IO(I "' ..... 10$!00" ._., .... _ ... ..., ........ .._ -~ ~ft "' ,.... c;....,.,,..,-,.,., • ' • , , , >7 

"--·•ot..CNA 4.~1 .,...,., •=n or~•.n totol.- ,_,. ............ Of t.o .. d'( :t llll;"fA -~ ~· _, Av•..-. ...... -.,....., 6').(,~ ?)'.~ 

-h 

(:(Jv••1 • • AA • • • • ,, ................. ~ ..... ~ ~· ,. 2.!0"1·.,. .. ~,,., .,. ) ........ ,!> ............... "" .,, .... y, "( ....... ...,,,., ,_,. lto'O,,., ~"" .,., ll-

...................... ...._... - ~- ........__ O!fo·~ $$-'$-I> 

co ................ , , • , , , ,. ............... <>" II<NA .,...,. ~.~ 141'?. 6;) ,.u . .n :u.:.. .• ~..., .... : 

A-..... Ol Sh>d'() ~~~~ 64.). 610.4) ~0<1$ ;) ,_,. l•UO,_,. ~ll!.SOI "~' ~l..Ol 

A¥•-••ot-...... IJr~JAg~ .,._ ,., ... "" M.::r-.. 65 • .11~ """"' ~.OS 

-~ eo ..... , .. ,,.,. , , • , , • , • ' ,. ,. ............. ~ ...... :.. -l'OI0.4? .. ,.._)11 all~>-.- ,_» o.iM 

·-~ .. ,,.~. 

·-~ tilt,...$~ 

.... -........ ,;,.,.,.,. "''"- ..... ~ .. ~ ... --· ••• 

C-fOfAA , , AY-"'8* ()1-N A ' ''" ...... ~ 03!1.tl3 

............... ~ ISiy(OV-li O!"O!.HA 

..-.,.~ 

!' .......... 

... c: ... , 

"'-.'

•••• 

' 

.,.

~,.,.

_, - , , - --..... !!!!l -~ ·- - • ., .. ., • • • • ... T0 .,.o A-• - ... fN:N A 

··~ ll~ .il -,__,_,,.,,.. ""'l '" .,,.....,,. HP'"'"" u-u ll' _,, 1..9)7,.,1 1 """'' ,.0 

>"o-

.,.

• 

· 

.,.., 

.... _......,.,.of-·"'- _ "'' ""'"""' _, 

-' _ ...... -· 

United Actuarial Services, Inc. 
Study #3 Results 

 Non-Orphan Inactive Vested Benefit Impact w/1.9% Mult. Ceiling 

8.55

............ both _,.,_ ... 01-1).01 -- 1(1.1.4 

· _,. 3·~ 

-~ :t.!i·:$~ 

- ('So• nd 1'......,1 

"'"' c;.:..,nocoiAA > 

Jt,.,. ...... c.( D~N"tT .. l-... o:J ::101..00 ll:n.oo ' J>o~tc,.aao ot Stu<lv' &EN FIT 31S&.:U. .l!:llt-.2) ...... """'~"8'" o r .,._,., .... ·~~ eout'otot AA • •• ' u Au~.-'!8"!! o t &€N~'n' ~C'>4.$9 ~;)1 4.ll .. J~.$9 ~l9.$7 

Jt,.v•.-•t~J• o f Sl.u<ly !S ot·NriT ::1-10 ..... o;,:; 

·~ ~ 

.Av0f';lo80 ot ~-"1 "'· ... ... --Counl of AA. ,. • • , A¥0t;lo80 Of ltENf'tY ,,;,.e sss..o.a .,.,...62 S0....$5 

A~teraae or S t'u(ly ~ &E'N#OIT 24J.87 .a.u. ~ s,e.&.. 73 37-l.OJ; 

Jt,.v•.-•s• of p • ....,.,., n .!l% 7 .... ,. 7:),6.,., 7J.o.% 

--Counlo(JV< w ~ • ' .. ,..,.o,.;;oao or 8€Nf'IT ...... s".~ .~ 10 8S6.J2 62.4,4$ 

Av~.-~-~ o r fi-tv<lv a 9£,.HT 4-:;G •• l ,..,...,.•l!t• o f .,.,..,.,., n q!'l ..... 4;Qyn1 ot AA " » • • • • .,..,.•1!1• o ( l)l:NrtT 24l.OJ l!,...,o;,, .. ,.,..00 ""·" 10;1.11.,.. lO!t;).HI 1!1?4.!5:1 ..... 1.,$ 

A¥01';1180 or S-tudy' 6€NHT 157.!0 .U.S.1'!1 S46.6S SlO.s' S$0.!;'1' 

AVe<"to8~ Of P~nt ... ,. ?9.9'1j ,$0,2._" .... ~ j~ ,.. ... .!iS· 'liO 

eou.-.lOfJV< , ,. 7 • s Ave<"to8~ of 8£NI'lT :U).;O$ 4J:),4l ...... ' ' "' ,...., "" ~· J.Jfl,$8 l_$4~7l $1$,02 

Av•.-•1!1• of 51udy l llt:"NJOtT l!~·7 lJ'O.OJ wo ...... ;)ll!.~7 , ... :t.ll:'> 

AvOI'•&o or O<ttc-.t'lt ...... " '" ,, .. " 0., :!>,. 

..,. .. " 

co .. nto1"""" a 

- " • ' ' ' ' ~ 

Jt,.vOfall<t or 6t.NPn ,.._ .. ...... ,...,,._,. UU • .,ll: ·""·'l' 1no.o,. ,..,. .. l'T"IIS-.UI 

..,. .. e.-aae o• Stv<lv .ll 8ENI<IT ,. .... ht7.0J. -0.43 

Jt,.v•.-•s• of ... ....,.,., A 'II. 110.'3'"( 

-(;ount O' AA ' • ,. • ' ' ' .. 

Jt,.v•.-•e• of Q~NII'IT JIS7.10 Oli:JI-U 1llt.~ ou.u Jla6.07 ll:•to.ao IOO"J.A~ !1-oli.'!OIS 

AvOt .. ;oi;Ot O( Study' tttNr-n 5!>?.70 l-MS • .,!> 1.4,....:.?:! .. n.o' 

"""e<>•ae ot Pe<'e-en1 

fot:..l c::o.."' or AA ''"" ' ' • • • ' ••• 

Tot>Ol A....,-~e or $€NOT JS1'.7'0 l-4).0.) .lOS. a. ~911.l • 1''19.1.) J..O.)(;..U 91JS.1. ........ ....... . ....... S JO.S.l 

TO'l>O.I I\_.,.._ .. r o;tuoty ll •.:N .!JfT loS7.70 S7.~ ~.'('!> lU .• 'IO !;<lit.- I.I J.<f. l-:1: UIIIO.::U l-5U.U :M$.11 

l.OUJ 1\-folo&'O O)f -r<..,lt -, ........ 1,..~ , ..... ... - IIA'K 

United Actuarial Services, Inc. 
Study #3 Results 

 Orphan Inactive Vested Benefit Impact w/110% PBGC Guar. At Age 60 

8.56

Rli>IM Labels. 01- 041 05---1)9 :IJ.O..il.4 15- il.9 20 24 .25-29 GrandTou~ 

45- 49 

Countot AA 2 :1 3i 

Averag,e of BEN FIT :1152.03 1712.68 1313&. 9:1 

Aver-age of Study 3 BEN FliT 427.66 539. 71 485.0.1 

Average ,of ?ercent 37.1!1 3La 

50-'54 

1

Count: of AA .1 3 2 ]. 7 

Jlve.-age ,of BEN Fl'f 1.0Sl.. 7 1642 6~ 273A.2.9 241 20~ ~ 

A:ver.ag,e of Studv l BE~ F' •rT 285. 1.1 501..40 855.32 1.061.. '"1a 

Avar•g.e of Perc;ent ..... --- 31-a. M.1" 

55- 591 

CountofAA 1 1 1 3 6 

A \I~ of eeNFIT l-25.07 141. 77 1464.81 1623..7:2 

A<v ra roof St1,.1dy l BENFlT 157.30 14l.16 

A'IO!cra -«"' or P .. n'l' 69.~ 99 •• 

00...64 

co un it or AA 2 2 

Av r a, Ol BENFIT 945.78 945.79 

Aver-age or Study :1 BEN FIT 304.77 3.04.77 

A,.,er-,age or Percen t az.a 

65-t 

CountofAA l.. l!. 

A""''ersge of BEN FIT 596.31 596 .. U 

A'lllersge of Study 3 BENJ'JT 547.9<2 547.92 

A'll,erage of Percent 91..~ 9L99i 

Tot:al count of AA 1 4 6 2. 5 1 ll9 

Total Average ol DENFIT 2.25. 07 7l'B. 7S> 1.449.49 1154.'50 2675.8-"i 2940.2.4 l.61'J. g7 

Total AveTage of ·study 3 BEN FrT 1'57. 10 2'5&9-5- 4'5.3.88 573.82. 857.29 106L7B 54B.OC1 

Tot:al Ave;rsge of Percent 69.9M 

-- n.sK ... ,. sz.- 8LI" ...... .., 
Study #3 Results 

 Non-Orphan In Pay Status Impact on Benefit w/1.9% Mult. Ceiling 

8.57

"uw""'t»ot• 

....... Count ot b..A 

Av•o-oo.s- of-n•fll 

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................ ,_ ... ,,. AVOf'aJ[O O f $tuCiy 3 &Oftflt 

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......... 9 279.$9 

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Count or A.A '70 i 4 

Av•.--.• o l - .. •1u :l?l:.•t loo-IA.It 4!11 6.'5 

AvOiO'f';lo&O Of Study S -o'l.flt ·===:: -'~2.!U 1~.4-:t 4,1.M A"'e<'Oo,i"e o r P<ercc-ent 

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Tobit "'"-"'l!l• ot liU•dV 1 -..fh ~===::. ~-~~~j!. n.- n•.- o~l Av~;~oao 01 vo.·c.,ot .,-, ·-'" ~ 

United Actuarial Services. ln"c'-'.'--

C#-1'0 

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..... 7 

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S1S.14 4:11 ...... 

...... 1$.1.1" 

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1646.11 1~80.,0.111 JMJ.OIIl 

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...... ., l'lli 7• > 

1S • • .1,(',$$.9$ POL~ 2072.4) 

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807. 79' 
Study #3 Results 

 Orphan In Pay Status Impact on Benefit w/110% of PBGC Guarantee 

8.58

l'tow uaboho 

._ ... covntofAA 

Av~o'iliJJ~ O f I'U .. 'I ... 01 

Avet..-.aget o r S.tucrv 3 Bonr n 

Averea~ ot Perc:~nt 

$5~$9 

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Avot~IICO o t Bonont 

AVCn!IJCC ofStVdV 3 Benflt 

AV"i!f"M8'1! o ·f Poeo-c:OI!nl 

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Av•.-.:.801> o f Study s ~t nnt 

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G'!H W 

covnt of AA 

AvQt.age O f 6enefo1 

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7Q-74 

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AVCr.liAC o t 8etncflt 

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l\v$r.a,se o r $tudy s 8onnt 

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....... c;o..,.nt of AA 

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ot~ l A"¥ ..,.o11tJO o r e.on.:.ri t 

Tot;~~ I Av o-;~~ae o t Study 3 Q-cntlt 

Tot31 A v e"'ae o f o- t 

OS- 00 

1 

21A-.S..1 

170.96 

a:1.~" 

• 

2:1A.S1 

United Act~a!lal Services, Inc. 

1 2 2 6 1 

JA3.08 1336.03 2781.14 2S-l.S.80 2S0.63 

143,08 707. 8:1o 393, .1.9 81-G, U 2~ G3 

2 2 3 G 2 

14;).8. 3-!3' l.704J, <J4 2343, 7<\ ;J~0 C. 33~ 72 

40·~;a,1 72.2.60 70'T.M4 UJ61$.$3 116,S.01 

1 2 1 • 2 1 

12 

1..976~91 

707.?0 

c; 

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·~-01 

10 

171.52. 614.S1 

171..S2 

78?.14 ,336.51 S'!t&6~S.S 201-2..54 2.63)'.62: 

• 

686.70 

1 2 s ... .l.S39.54 2772.82 3224. 7S 289SAO 

7 07. $.:1o 80<1o.l.7 1040. U 123-3.83 

-- ':. ~ ~ . ~-"'V7." 

2 1 • <UOJ0.49 >92. 7'9 2203.00 

204S.?S S?'1.02 16'76~S9 

.._ ... 74 • .1 96 

• • 2 0 ,. ."1A 2 168.78 ol:t26.60 2:~ 01 

1376

•

38

:E::::::·i"'il"i

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8 

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71.8" 

1 1 

1831..03 1831..03 

1.02:1. 71) 241 ) .00 
Next Steps- Solution 

• Any further tweaks to proposed solution? 

• Central States has a maximum reduction on terminated vested 

participants, arguing actives might otherwise reject proposal 

• T enninated vested max reduction should c.onsider 

• Length of service 

• Extend to terminated vested now in pay status? 

• Retum to work requirement needed for tenn vested to be treated as active? 

• Data improvements 

• Pre-1/1 /88 terminations 

• They are not reduced in any of these studies because data unavailable 

• They are a small part of liabilities, so changes shouldn't be signitlcant 

• We must perform an open group projection on final solution to 

include new entrants, which may have slight impact on the solution 

United Actuaria l Services, Inc. 

8.59 

24 
Next Steps - Timing 

• IRS Submission 

• Have three month windows of time for cash flow projections 

• Can file before final regulations but may need to revise accordingly 

• Additional work to be done for submission 

• Draft notice. including estimated impact to each pat1icipant is due within 4 

business days prior to submission 

• Draft a ballot for the vote 

• Various other pieces of information required by Rev. Proc. 2015-34 

• Must be no later than 9/30/ 16 with a 711/17 effective date 

• After IRS Submission - up to 225-day wait for approval 

• Hold membership meetings to explain suspension and voting 

• Line up third party to cany out voting 

• Voting must be within 30 days ofiRS approval! 

United Actuarial Services, Inc. 

8.60 

25 
Basis for Study 

General Assumptions 

• This study is based on 20 15 valuation with these exceptions: 

• The assets are based on the 6/30/ 15 unaudited financial statements 

• We assumed a -1 .18% return for the 20 15-16 year based on 9/30115 

unaudited financia1s and 6.75% per annum return for last 9 months 

• We assumed a 6.75% a1mual return through the 2024-25 plan year 

• We assumed 5,962 future annual weeks starting in 2015-16 year 

• Future contributions in projections include all reasonably collectible 

contributions developed with the 6/30115 EWL report 

United Actuarial Services, Inc. 

8.61 

26 
Basis for Study 

Benefit Assumptions 

• We made the following benefit assumptions for the study 

• All suspensions are effective as of July I, 2017. 

• Pre-1/1 I 1988 tenninations, who have a credit formula, are assumed to 

have an equivalent multiplier under 1.6% and were not reduced. 

• A tenninated participant's multiplier was determined using his or her 

reported date of tennination. 

• For detennining a beneficiary's reduction, we assumed the retiree's 

benetit was the beneficiary's benetit divided by the J&S percentage. 

United Actuarial Services, Inc. 

8.62 

27 
Actuarial Basis 

This report includes results which are based on plan provisions, assumptions, methods 

and demographic data described in the July 1, 20 I 5 actuarial valuation of the 

International Association of Machinists Motor City Pension Fund except as 

previously noted. This report is subject to the same qualifications and limitations as 

detailed in that report. 

I am a Member of the Academy of Actuaries and fhlly meet the qualification 

requirements of the Academy to provide the opinion contained herein. 

Redacted b>' the U S Department of the Treasurr 

Paul Bullock, ASA, EA, MAAA 

United Actuarial Services, Inc. 

28 

8.63 
International Association of Machinists 

Motor City Pension Fund 

March 4, 2016 Board of Trustees' Meeting 

Additional Benefit Suspension Study 

Special Handling of Inactive Vested Participants 

Paul BuUock- United Actuarial Services, Inc. 

United Actuarial 

Services, Inc. 

W~ el!<'•uaries and Consult.ants 
Critical and Declining Status 

Recap on Benefit Suspensions 

• Key additional tool becomes available in the deep red zone 

• Benefits already eamed can be suspended 

• This includes benefits already in pay status 

• Idea is to take a lesser reduction now to avoid a greater reduction, 

down to the PBGC guarantee, when plan becomes insolvent 

• Actuarial conditions of benefit suspension 

• The Plan would eliminate its projected insolvency with the benefit 

suspension levels contemplated 

• In years after suspension, document that 

• the Plan would project an insolvency without continued suspensions, and 

• all reasonable measures continue to be taken 

United Actuarial Services, Inc. 

8.65 

2 
Benefit Suspension 

Recap on General Conditions 

• Suspensions cannot be lower than 110% of PBGC guarantee 

• No suspensions for 

• Disabled participants 

• Participants over age 80 with phase-out beginning at age 75 

• Suspensions can't materially exceed the level necessary to 

avoid a projected insolvency 

• If suspensions are done in conjunction with a partition 

• Suspensions can' t take effect prior to the partition effective date 

• Suspensions must be maxed out and more action is still needed to 

eliminate an insolvency before a partition would be approved 

United Actuarial Services, Inc. 

8.66 

3 
Benefit Suspension 

Recap of Possibilities Under MPRA 

• Any suspension must be equitably distributed 

• Factors that may be taken into account include 

• Age and life expectancy 

• Length of time in pay status 

• Amount ofbenefit 

• Benefit type: early, normal, . surv1vor 

• Extent of subsidized benefit 

• Extent of post -ret increases 

• History of benefit increases 

and reductions 

United Actuarial Services, Inc. 

8.67 

• Years to retirement for actives 

• Discrepancies between active 

and retiree benefits 

• Extent actives would withdraw 

support, which would trigger a 

drop in weeks and further cuts 

• Service earned with withdrawn 

employers that didn't pay their 

full withdrawal liability 

4 
Benefit Suspension 

Recap of Funding Conditions 

• The proposed regulations released on June 17 outline the 

funding conditions that must be satisfied after suspension* 

• The solvency ratio must be 1.0+ for extended period of 30+ years 

• Ratio numerator: beg. of yr. assets + inv. inc. + contributions - expenses 

• Ratio denominator: expected benefit payments for the year 

• The funded ratio is at least 100% at end of extended period OR the 

solvency ratio only increases in last 5 years of extended period 

• "Goldilocks Rule" - The above tests would not be satisfied if the 

level of reduction per participant was 5% less 

United Actuarial Services, Inc. 

• The: ~\ iJ ~nle1111lwl<~ stochastic projection b.n at lc:Mt t' 50% (:}lal)cc: of no il•soh'ei)C;y cllutlllJ c:xtc:o<led pencxl i$ only required if 5 

J)lo\0 h./Is 10.000+ participants und doesn't apply to this an8~l'OPO$ed re~. bc:-~ conditiom 1.11e subj«l to cbru)!le wilb fu~.<~l rep, 
Current Outlook 

Insolvency in 2025-26 

The insolvency is still! year earlier due to a weak -0.15% retum in2015-16 so far: 

United Actuarial Services, Inc. 

Ill UIIJUIIIIJII,I UIIIU :::::~,,~,,:~:::::::;:::~ 

--- I ~ [ -- 3 -----;;: ~= ~=;~~~i: ::=:~:~ :~ 

Note· ..Q.) S% ~tw:u C$ti.twle \><1$«1 on 12/31115 uuaudited finan~;&o , tben r¢1tJru at 6.75% r nnnum nue for rcmMni~ 6 tl)l.)l11hs. 6 

8.69 
Suspension Studies - Round 3 

• Our starting point is Study #3, which included: 

• Eliminate all post-retirement increases 

• For participants of employers that didn't pay their full EWL, make the 

minimum suspension high enough so that the corresponding liability value 

equals to their employer's unfunded liability 

• After above changes made, lower the past multiplier in O.l% increments to a 

new maximum ceiling 

• Study #3 used a 1.9% multiplier ceiling 

• The floor benefit would still be I I 0% ofPBGC premium 

• We assumed pre-1988 termination participants (whose benefits are based on a 

crediting rate and not a multiplier) will always be below the ceiling multiplier 

• Disabilities/age 80+ participants protected, ages 75-79 participants partly protected 

• All suspensions are assumed to be effective July I, 2017 

United Actuarial Services, Inc. 

8.70 

7 
Suspension Studies - Round 3 

Historical Multipliers 

• Multiplier levels subject to reduction 

• Pre-7/ l/04 contributions 

• < 1.9% multiplier assumed if terminated prior to 111/88 (detailed data n/a) 

• 2.9% multiplier if terminated prior to 7/ 1/91 

• 3.1% multiplier iftenninated prior to 7/ 1/92 

• 3.2% multiplier iftenninated prior to 7/ 1/93 

• 3.3% multiplier iftenninated prior to 7/ 1194 

• 3.4% multiplier iftenninated prior to 7/ 1/95 

• 3.5% multiplier is otherwise used 

• 711/04 to 6/30/06 - 2.0% multiplier 

• 7/ 1/06 and later - 0.5% multiplier applies on credited contributions 

United Actuarial Services, Inc. 

8.71 

8 
Suspension Studies - Round 3 

Orphan Participants 

• The following employers didn't pay their EWL and, based on 

individual asset workup, have $0 as of 12/30/15 so their 

participants are "orphaned" and can be reduced the maximum 

• ABC Paving (Employer ID is 11 00) 

• Borman Foods/Fanner Jack (1503) 

• E & L Transport (2500) 

• Pyrek Transport Inc. (6400) 

• Thomas Goodfellow (3200) 

• Other banktupt employers can't count because they had no EWL 

• Ryder (7313, 7300, 7104, 7103) didn't pay 10% ofEWL but 

their assets cover participant liabilities so they aren't orphaned 

United Actuarial Services, Inc. 

8.72 

9 
Suspension Studies - Round 3 

Study #4 

• Study #4 starts with Study #3 plus the following: 

• Leave in post-retirement increases because they provided no savings 

• Maximum reduction ( 110% of guarantee) for inactive vested who are 

• Orphaned participants of employers noted on previous slide 

• Participants tenninated prior to 1/ 1/ 1988 

• Use the multiplier ceiling for these inactive vested participants 

• Ryder participants - They paid enough EWL to fund their vested liability 

• Edward C. Levy, Bill Wink Chevrolet, and Superior patticipants - All of 

these employers are current on their EWL payment schedules 

United Actuarial Services, Inc. 

8.73 

10 
Suspension Studies - Round 3 

Study #4 (Continued) 

• Study #4 starts with Study #3 plus the following: 

• All other inactive vested not included above are reduced as follows 

• 20+ years of service - Use the multiplier ceiling 

• More than I 5 but less than 20 years of service - Prorate between multiplier 

ceiling and 110% ofPBGC guarantee (for example, 80%/20% for 19 

years, 60%/40% for 18 years, etc.) 

• 15 or less years of service - 110% of PBGC guarantee 

• Inactive vested for all of the above groupings include inactive vested 

that are now retired and also future inactive vested patticipants 

United Actuarial Services, Inc. 

8.74 

II 
Suspension Studies - Round 3 

Other Changes for Study #4 

• More benefit tweaks from what we've learned on suspensions 

• Applicability of maximmn reduction/1 1 0% of PBGC guarantee 

• This benefit floor for actives only applies thru July I, 20 17 effective date 

• Benefits earned after July I, 2017 use the regular 0. 5% multiplier 

• Survivor% w/PBGC guarantee > Joint & 50% or 75% elected fo1m 

• Survivor's guarantee is based on his/her benefit, not participant guarantee 

• Adding 50%/75% factor means that more is guaranteed 

• Assumed retirement age for current inactive vested 

• Lowered from 60 to 52 if getting some or all of the maximum reduction 

• Benefit has much smaller reduction because early retirement reduction 

offset to a large extent by more of the benefit being under the guarantee. 

United Actuarial Services, Inc. 

8.75 

12 
Suspension Studies - Round 3 

Other Changes for Study #4 

• Example of why age 52 assumed retirement age used 

• Assume a participant has a $2,160 benefit and 24 years of service 

• Benefit at age 65 

• The 110% guarantee at 65 is $943.80 (=1.1 x $35.75 x 24) 

• $2,160 is $90 per year of service = $2,160 I 24 years of service 

• Only $35.75 of$90/year guaranteed (100% of I" $11 + 75% of next $33) 

• Benefit at age 52 

• The 110% guarantee at 52 is $692.74 (=1.1 x $26.24 x 24) 

• Age 52 benefit is 34.8% of$2,160 = $751.68 

• $75 1.68 is $31 .32 per year of service = $751.68 / 24 years of service 

• I 00% of I" $11.00 + 75% of $20.32 = $26.24 

• $692.74 is 73.4% of$943.80 or more than double a regular age 52 benetit 

United Actuarial Services, Inc. 

8.76 

13 
Study #4 Results 

2.0°/o Multiplier Ceiling 

Recovery still takes a while; the funded ratio starts increasing 21 years out in 2037. 

ltr-- -- ... 

United Actuarial Services, Inc. 

a.n 

14 
Study #4 Results 

2.1 °/o Multiplier Ceiling 

A ceiling of2.1% also works, but barely. The funded ratio only starts increasing 30 years out. 

Its-----.. c 

United Actuarial Services, Inc. 

8.78 

IS 
Study #4 

Which Multiplier Ceiling to Use? 

• Study #4 uses a 2015-16 return of -0.15% based on 12/31/15 

financials and 6 months of return at 6.75% annual rate 

• 2.0% is lowest multiplier that satisties the Goldilocks Rule and is the 

reconunended solution because it has the best chance of recovery 

• A higher 2.1% multiplier ceiling also works but just barely and comes 

with almost l 0 additional years before the funded ratio starts rising 

• Further return updates may affect multiplier ceiling 

• Return must be < 1.35% in order for 2.0% multiplier ceiling to work 

• Return must be < 3.11% in order for 2.1% multiplier ceiling to work 

• A delay from the July 1, 2017 effective date could lower the ceiling 

United Actuarial Services, Inc. 

8.79 

16 
Study #4 Results

Active Accrued Benefit Impact w/2.0% Multiplier Ceiling

8.80

17

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t:l:i&.AIILQUfU. -G!f lV\. ,. ... .. 1..1' lUI 1 .r • • .. :1. ~.I' 

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:T_ .. _. A,....r .. .,.. .-tl ,.._ • .,._m .,._ , ....... 7('1 ... ~·--· 

__ ... --- IR7..A..._. .AM. 

Un ted Al::tlol I Servjcesr rnco; 
Study #4 Results

Inactive Vested Benefit Impact w/2.0% Mult. Ceiling at Age 60 for Only 

Ryder Participants and Employers Current on EWL

8.81

18

... ...._ ......... b 

·~- ~~ ~·· ~-::.1<4 ·~~ -- :ts--'!la - Uo-•nd Tot..o~ 

...,_.., 

COvnto• A.A • • Avoe.-"'8~ o t RI<NI'n- :to 1.09 ?OI.OA 

Av•r•,e• o ·r Study 4 II:U:.N I"JT 1!:1#.X:t 

Av$<"~M'"' or Pe<"c e ra 

,s; ~9 

COvnt.ot AA • • • n 

Av•no-8• o t QI;NJ'IT ~- :l90.40 .5'1-lo.$~ ~7~ 

Av•r .. J!Ioll o ( Study 4 QC:NP"IT 277.:&0 

ve,.~ao or e>otcol'lt ..... -~ COvn' Q f AA 

Av• r•,e• of 1:u:::N 1"1T • • • ·~ -·= :l!.:l• -·oo -0. -r.:t :&00.~ 

A ve• .. lil'"' or study 4 e:u:.Nf'tT ~~.!>S -!:l.:tG ~:ot."7'0 

ve.-~~<> of Pcrcont ...... ...... 4 5 · 4 9 

Count of A-A • " .. ' 7 » 

Av•••JiJ• of Qt:.NI"JT :l4:<l-.!U. .,,~ -,y.- --r.s:t.- o.:t0.1-:t !J.!JO.:OU!$ 

A v<G>.-.:.a• or Stud'v .. &E.NFtT 1>0. 19 37~.')$ S$<1 8~ 668.8, ;rr:ss ~s 4 33.S? 

Avcr~a.:. or Percent 7$,4"' "" 1 .. 73 )J4 • ,..,.,. 

-·· CovntorA.A 7 ... s • 1 1 .. 

Aver;,g-e or &ENI'IT 218. 29 

""'·"" 4$4. J.S $30.$2 1.$34. ,.., U94..1)2 407. $$ Av•nos<!' o t $tudy 4 RI;N"'n- IOG'l. ?'ll '1100.~ ~-·7 

Av•.-•-'!1• or P•o-c:•nt G?. :l""- 7X. n'Jil. • o.1'K 

S!>-!:>V 

Counto• A.A • H • 1 • • 1 3<> 

Ave.-~se o;o t ElE:NJ'n- 1_96.92 287. :00 7\\1.$0 ~a 96 7('iJI,C)A U9l..e8 1$43, 72 d.Af$. 4.0 

Av•no,s• of Stud-y 4 A.~;"NJ'fT ;a.-.~ 

Av•iU.aJt• or P•l'o:ent a7 

..,_ .. count or A.A • • • • • • .. 

Avoeno-8• o ·t 9-II'NI'n- ~a. :a.? ~-~.o 1 1070.'10 11179.,117 """'-•• I 7711. lilt at7 • .l1 

A v•r•,e• of !Study 4 Qt:Nt"'IT 11-GA:.J: :n.<:J.o;:~: 1--3!)1.!)0 1-!loa?.-51 0 154.11 

A VG'oOijl. Of P$o"C:Qf'lt . ,.,. ...... ••• 

Covnt o t AA • • • Avoonoer• of AI:.NI"JT ll:tG.97 100;:1:.~ 909.'all 

Av .. ra-1!1 .. or Study 4 Dt.'N,.fT 1..,....7ll .... ,.~ 

A VCl.-.:OjjtQ Of PClf'C:Qf'll ........ 2A 

TOtlll C:ovnt Of AA .. .. .. 7 • • .. ... . 

Tq."oJ AV<eo-1!08~ o;> t Q.t:"N,.::IT , ..... --~(1..9~ (to...o;.tl . .... 7 !07 . 47 9U5. 7S • '17th~ 'lf!O-.- ;t(;q.o ~-~ 

T«>"'•-• A-~•s• uf !Otudy 4 Alt'Nf"IT 1-81.$$ :u.~ .. oo $-10 •• ~ 0:117.0.,. :TOll.- •oa1.:.7 ~00 '*':11 1.$:1:t.-1;:1: lt0$ • .110 

fOlO:O I A-t'aKV <of "'"''''"''H tU.O'M. ar.4 911o -,.,.:.t'K ... ,.. ••• 8116 0>0 .. ...... __ .,. 

United Actuarial Services, Inc:. 
Study #4 Results

Inactive Vested Benefit Impact w/2.0% Mult. Ceiling at 60 (20+ Yrs),

110% PBGC Guar. at 52 (15 Yrs Svc) or Blend at 52 (16-19 Yrs Svc)

8.82

19

f\O'IN ~~.aber s. None "'1..0 ........ 25~ ).0,34 Gr 1'\-d Total 

lln-.-ut 

Coun\af A A :1 

Av ..-oiliiiJ:Q oof Bt:INf' I I :u.a .!:>l A"'e"'" .lle o f S ·to.JI(lly 4 BEN F IT 200 7). 

Av•.-.8• at IP•I"~nt 'D1-~ 

::1-:i.-:SIII 

Coun"tofAA 3 ~ oi 

Aw-.,.r 8'1:' n t RFNFIT ::>09 ~51 "'lc<l7 . ... ., 2<1:l. d <I 

A.v•lrWlt!• a! ~~uc::ly 4 D I:Nrl T ~17.1!11 ~-7111-

A vQI'l.il ,.;,of~ c. n't .,..~ ~Z-""' 

40--44 

Caun'l- c:roiAA ::> 1 ~ ~ 

..,....,. .. ,..l'i .. a~ n.::Nrl'T !S81.'l!7 "11::1-7.31 

A v oi'Oiiii:C. 0 1' Study 4 HI:JNt-I T ,l!!l4). 7 :1. .:ll!>"!i1 . 6'!11 

Ave.-... se -<1o f IP'"'"""'=''!""'T rA .!"" ~;>"" 

'iV-0 11 

c ........ , OfAA ~ a !I !I .ZJ:I. 

A ... CI"-l8C o f ISE ... f'IT J.79 8S 3()4 2.6 7<~.6-79 122.J.. :1.8 <1..03 "?,(!< 

A..,..,. ... 8'1:' "''"' <;,t-ud'fo' ~ RJ;NFIT ~0.'\ C)q 

Av•~• c::::~f Pat'~::..•nl. ~- ' 

C::o!..ln"t or AA .l. 1.~ 9 3 d Jl 3~ 

AV..,.....,S"" a! II::LIO:NF IT 175 . .-a 1..!!1.5. ii!l0 .oi'1AAIJ ...... :!!.~ "1'2n7. 71. ID.!!o:I.JG '11Q::I'~SII 

A v .... .,. af 5ludv .ot RH::NrlT ]..11!1.. 71li 13~.'1:1 :Z:nt.IS.!Io 4 .S:S.'!U. 1177.- !!1.52.80 3~-iD:S 

Av ~orOi;IZC! of ~rCG-n'l: 92.096 8 70.... 88b .. 88~ 68 ~ 90 So" ~ • 'li6 

,;.s-'59 

Cc:.untaf- A A 11!1. 21 !S :J ::z 47 

vw~ .. w uof IStNPI r ~~-'!liT .S:Z4. ll.'!ll ~J:I.-~ ~!:> , _ .... 1::Z.40.!:>0 405. llb 

A ... e,. 11'1:: 0 1' St:l.Cil " .4 BENIFilr J. 72. 3-2 272 00 436,73 So71 6dl 973...S.So 30d sa .o. .... .-.-...g .. a t P.-.-Jr.,.nt Jl"'l'Q'Jiio JIW'i.4S 7.._ -os 

D0-1!1.4 

LOull'lt.OfAA :.lb ~0 14 s J.. 6J:I. 

.O.ver-.se oT SENFI'T 2::iol0 7t"j. 2G4 r..e :::0:1-:<. 29 3:3 3: 18 ~:el.0.67 423 0:31 

Av•r•a• a~ S.~u c::l y .A IUONF IT :ZD:!..7JI ::aoa:. ::ul .ot::HI_..,. '!I!~.JI7 '1.:2 st7-7::1 ~-dcill 

v~.- .. Mu ~m-L n'l IS2.lo "' ns.. Til£ BO. :Z .. 1:>'!11.4 "'- Y l . 7'loi> 70.~9!:. 

6'5 4 

C':ii"''IIII"'IT Qf' 4.6 .. 2 ~ ::> .,.., A .., .... ~. col Dli:Nri:T :::157- 71[] ::1~1-12 ::J.1.:Z. I!l'!ll !5::z..:!ll. ::za. ::lb810.60 5:1D.II!.:Z 

A v.:rll" .. il:.:ll oot' '!l.lu<ilv 4 H"tNI" 1 II" S!> 1' • .1"0 211. '!110 ll~D 'Ib -1.20 :lll'-. '!112 ;~ 1"-b.U!:.I 

Avo!!!-r.::J11~ of f'\cJ"c~nt 200.~ 66~ 896'toli 84 O'toJ 62 1'111 7~7"(, 

Tnbl• c-..n~ ol AA :t 70 ~ :ll:;f tr. "11 -:1. :Hil' 

Tao .... l A,_<'"I[OIIICIOf DCNriT JLZB . .aa ::z2!1,. 31 Zi112.:1!lll ~71117 1ULS • .-.c:a 11;!1' ... Q'!i. 24Tll'.:z:D 41:1'.-

ToQ•A~I".'JIQ; or !:>h.od\1' "' tttN Fll ll..111>. #II> 17-l. bi 

of.), __ _, __ :a,e,. &;6 ~~ ll5!1!>-. - ~.hJ !!)ti. 

To~nt A..,...F"-/I!Re n1' P~r..-""'rrt "112:-0"'- 7,_ .. .,.. 8oS ·~ 7F! I""' l'i<IJ A.,. 8;jl! '""' ~ % 7ffi 8-% 

); 
Study #4 Results

Inactive Vested Benefit Impact w/110% PBGC Guarantee at Age 52 for 

Orphan or Pre-1/1/1988 Termination Participants

8.83

20

' ·- ,., 

....... '" .., .. 

''· '" .,, 

""Y' , .. '''" "· ....... 

........... 

Av""<""'''""'Y'"''''" "· ....... 

. ,........... ,,,,,_., "· .. ""' 

"'"' . ,........... ,,,,.._,, 

~" ..... --· ··- .. ""' 

To<o< ~au<>< o< AA 

•~•,_ A~~·~~c ~• B'NH< 

0 o<oO A~c•~<>~ <>< "'"'V ~ <>eN< < < 

"""' Au•·•~e" .,, p.,., '"" 

<>< M 

' ' .. ' .. ' ' - m "'" 

, 

·~~ "' ~--·· .... ~% 

.. ' . ' 

c 

.... " 

, 

4h<." 

zz~.H 

""·-""' 

"' H 

,• ... '/ 

' .... '·' 

.,.,- ,., 

-- "' .. __ .... 

,.,_ ..... "" .,,_,.. 

..... 

.... ,. ... ,. 

'"" 9~ ". '"' M <"-' 

' .. ' " 

""' .... 

""' ,_, . ... , ' . ,, ~ 

, , ...... ~ .. '"' 4> ><>9.0~ B,_.~~ 

~- ,.,_ .-,, .. 

......... """' 

. ' '--

•, on "'' 

---, "" ... ·-··· ... &2.~ .... 

'"-' 

" --

"''• , __ 

-· .. ' 

--

,, 

"' 

~--"'· 

' 

,. 

""'" ""-" "" -" "" 
Study #4 Results 

In Pay Status Impact on Benefit w/2.0% Mult. Ceiling 

for Active Retirements and Inactive Vested of Employers Paying EWL 

...... Cov..,tot A./A. 

ro~ee of eoeneflt 

Ave'""Se c:ot StiXIY 4 "'"""'" 

Avo o--ao of Po.-.:ont 

"J~59 

COutUOfAA 

Av9f'~lle ot 8$notit 

A v e roae ot S.tvdy 4 eenTit 

Averaae ot 1<-e~,t 

~ 

co .. ntofAA 

AvWo'•JlW .:>f ., .. .,_.!11 

Av•U'.l:B4 Of Stu<ly .a 8•.,.>fit 

AVC'OIII:e Of P<erc.ent 

..... CQunrntAA 

Av•u-••s• of Ao nofn 

Av .. .-.o~o of !H...dy .. l'l....,fH 

AVo>(oli;O Of I'Or'<::o><''ll 

7C)..7A 

<:ovo"'tOf .tJ...A 

Ave,...,.Re ot eenertt 

Avoo-oo.s• oi l::tt.Kty 4 o .... tot 

Avoroo,so of.,.._,.,.,. .. , 

7~70 

COUAlOfAJ> 

1'0-ve"O.II:e Of Oeneflt 

AVer~t~re of $lv<l't 4 8eoflt 

Averl!'S~ o• l>l!~nt 

•o ... 

Co""' .. r AA 

AVQf'olj!Q Of IIOn.:>flt 

AvOf'~II:O Of S-tvdy 4 $c;H'flt 

.,.,..e,.•ae O' Pe~nt 

... 

Countot AA 

Av• r•.et• of 1:1•,.•*'' 

Avwf'oilt.l{oit of Sludy 4 oo;.,)flt 

A. o'~IJQ ot Dor<:Orn 

Tot <ot COvnt of AA 

ToUtl Ave~ae o f &enent 

N U o.o., 

~- l-0·14 1-!i-UI 

~ ~~ ~~ 

·~· 

• • &IU.~ :;.o.o..n 3).~. '110 ,,. .. .. ...... • ' • > • • • 

1!'1\ll.% 101. 73 $88,46 S1.2.19 :t80o6.•S 0A$ . A(O 1665.10 

1$3.12 101.7) ::O!M.G4 4~1.37 UG$.00 ...... 1277 ~ 

~l 0 ~ ""!iQ< ~~ 

2 • ' •• ,. • 1!)15.00 ...... IU.O.OO U70.~ l')O.:'I.ISO ~,.815 

.1164.6S 

• • •• • •• ,. • :~o•.•u 177 ~ :1.70 ... ~ l~.~<l :t u~.- ~::u.t• uo •. ,,. 10-S.S.-;z..t. U74.12 1400.:U 

• • • • 7 ,. • 

:)24.<94 !>48.02 'JoO:~o.07 ........ Joo.:l< ~ ~.1 0:) 2211.. 73 

,,.:5 • .:54 41::t.:u 6:114.04 U .GS.GO U1::li G~ 1-502. 12 

~-- ""- 79.4tt. ~- ... 2 .. 

, • • • " " • ...... 46-S,62. ........ 1)4$.16 1007.?8 16$$. ?8 370L~ 

~(;.!>) 4,2(;,.).;1 -1')7,34 USLSG ')09-.07 Ut'IO :)~ U$7. &8 

.. ,. ... .,. o.1L.<!> lf,..'I. O~ l!J:J o~ ttl~ 04 ~.,. 

,. £ • • •• u , • -.-co :;t~.- ~lt'oii.Ol :.O;t.~O ~·"·""' lU.:I.'>.IU l.,..!'l.7!$ 11 -C>.:O.II 

" 08.4S 2')0.- ~24.61 $62..26 9 :U.S6 .l0)S .. 62 J.9-4S .. ?3 1US.~8 

' • 7 2 • 0;)2.00 ?12.0.0 

~.).0) a.oJS,$0 OH,S9 J2A1' ~ l-109.0 7 ......... :1.S0.1:9 

- .u 'U'-... 1 ...... 7111 un .... cu 1:1~ •.... ·-- • -.<11 .• • , 

• 1.~ ...... •:. ~ ~·" 7l-.O'S .4~ '1':5 . 2!< Inc. 

8.84 

-

• lOU.~ 

14.S7.3S 

• 2.lGO ~O 

1700.0;lt. 

> 

U.XIo.42 

1027.:5!;1 

!1- ~ 

.. ,_._ • 

746.0<1 ' 

J.77A..92 

....... -

·~*~ 

a o .. u oJ TuUo-1 

,. 1-U7.93 

--~ .. 1. 9? 

~ 

., ~.~ 

1032 .. ?6 

.. , :574.11 

U0,)..80 

~ 77.4" 

21 
Study #4 Results

In Pay Status Impact on Benefit Inactive Vested Retirees w/2.0% Mult. 

Ceiling (20+ Yrs), 110% Guarantee (15 Yrs) or Blend (16-19 Yrs)

8.85

22

RO'W il.a e• 105-09 :I.Q-11.4 :1$--1.9 20-2 4 2 5 -29 

5-";~ '59 

Count ofJ'J.A :1. 2. 7 

A.veraae or Bel"'erH 97.02 41 J.S 367.52 

A.verag:e of Study eenror 96. 68 339. :18 

A.ver-!31g:e or Pe ~'~t.ent 

"·~ 87. 5 'J6 

60-6-' 

CounT Of /AA 3 5 6 1 1 16 

Aver-!3111[e Of Bef"\1eJ•r "" 15. 33 .2851. 3 30<11 . 7$ 6A3-.62 3~ 20 

Av er.aae o-r s '-'d v "' e entit 309.:1.2 272..06 2~ 7:1 63:5-3.5 32.4.-Ao\ 

A.vpr..:aae or Pe,.QPrn 74.~ '!M.O'J6 ~.?H. ,..~ 

65-69 

Co~nt of AA ~ 91 6 U) 2 Ji"' 

Avlii!'r.:~os:;:o elf Re np fiT -443 • .24 ,16~.?11!i 266.47 ~R.SS 647. 74 "1;97,03. 

AverAII[P of 5Tuav .Q Aeon tit l.R~-7'iit .24~-S~ ~.SS-7.::J 54~-30 6 0.77 51;~7.69 

Alt#;:or.:~oe;P o I' Pi'> rcs>n'l " ~-O'Ko 96.0W. S:;t.596! 94.3% BS .l ~ 

7 ()-74 

Count o 't AA. ~ .li.B :13 9 4~ 

AVl!!!!r~g~ a f Ble ne fll 2.l. :'1". /31 4.4~ 40 449.!18 ::J3 , .'92 

Aver~ge of ~tudy 4 · H.enfn. 2.031 .ti.:'::ll .:138-.ti-3 4:111:1- ~1 tJO:C!i. 2.9 

AY ll!!!n:tge D f fl'e r c,en l 9~.6% 80.!1% 9it.O% 90.6% 

7 - 79 

Count of AA 1.1 9 6 2. 2.8 

Aver-8R,e or Drenefll 17:1... 9:'::11 314:1 .82. 54.::5 .82. !:102. 29 

A.vll!!!n::t~e of Study 4 Oenfll. :1.59.36 31::1!.9 . 34 513. 7:1 837.99 

Avrer.ttKe! 0 f P~ cren l 92. 1'% 93.4% 94.S" 92. 9% 

80-84 

Count of IJ..A 7 3. 1 .1. 12 

Aver.tt&e or Denrefil 2.81.:1.3 354.03 2.80.03 964. 3;7 3:56.2.0 

A.v rel".ttJC.re or Study Oenfi 2.8:1..09 ~s,.~~ oa 2.80.031 ~1Sd 37 :}:56..:18 

Av el".ttllre or Per tei'llt: 100.~ 100. 100.~ 100.'"' 100.~ 

o\~1 Cou,•l or AA 7 64 4:1. 26 6 :1. :14'!; 

Tot: I Ave"'41K~ ot D nerit 128 8~ 2.49 9~ }64. 7.:1 '!;4";,. 2 78-J.. llA 64:1.62. 6 ~ 

Tot I AVelf aeot tudy4 O:eHnt 2.09.15.7 2:1' .07 48:}.. 1)8. 7 ' 87 123 29 

Tot-al .Averar:,e 01' Pere e"' t 63 ~ 92.4" 88.6 'Ko ,5.1""' 90.2% 
Study #4 Results

In Pay Status Impact on Benefit w/110% of PBGC Guarantee

Orphan or Pre-1/1/1988 Termination Inactive Vested

8.86

23

Row Labols. 

SS-S9 

Countot AA 

Aver~ae of Benef it 

Aver~ae of Stvdy 4 &en ftt 

Ave~-ce of P~ c:ent 

...... C~ntOfAA 

Avor~eo or e onorn 

Av4rrto8@ of $ t vdy <11 uoenfu 

A ver .. ae or Pe-r c"'""' 

...... Countof AA 

10-:14 

2 

l.4~ oe 1330.03 

14a.08 707 ~ 

• • • 

4 

<)4.87, 23 

903.40 

• .IA38.~S L901.'3S 3~'32.72 3340.76 332.5.72 

4 CMI.<n 6,....,.4 , ••. u 1068-•~ t"le.=J..oo 

1 2 1 ') 2 

.1..2S.OO Gl.4..51 787. '14 3336.!01 398G.SS 

:lS-~.0 G'fillt)d Tot.illt 

• 

2480.70 

7'99.89 

1S 

2804.27 

r.tcn.u 

' ,. 

Aver•IJe ot- Be-nefit 20U.S4 2G34.7l. 

Aver•11e of Study 4 eenftt 

Aver~ee of Pe c:e t ilii~ooii . ..:""" ,.;:: ""!§. ~~:2 1008.8!0 1233.82 ;.;~;;;:;:::l 

7G-74 

C:Our'ltOfAA 

Avor~ao o f Bor'lt:trlt 

Avor~so or Stud v 4 &or'lttt 

Avor.-e:o of Perc:ont 

7$· 79 

Covntof A A 

Aver.,.ae o! O~ efu 

Aver•e:o of Study 4 8ont lt 

Aver~ae of Pe c:ent 

..,. ... Covntof AA 

Avor-.as~ or "'~"""'" ' 

Av0,.i1180 Of Study 4 8<i>f"lflt 

Avor•so o r l>orcorn 

.... 

Covntol'AA 

Ave~ae of eenef•t 

Aver••e of $tvc;ly 4 Oen ht 

A v .. I'AS• Of I>~HCot!nl 

2:tA.S1 ' 

.176.96 

82-S .. 

TOU.I COunt Of AA 1 

Totolll A~oo-o-rill80' of eo.nont :.tl.4.S1 

To~t AvOIOIEI.O of SWdy 4 &cntl t 176.96 

ThUtt Av o.tr; .. at tl>.,.,.,. .. ,, 82.S'llto 

!Jnited Actua!lal Services, Inc:_,_ 

s ' 236.02 "l..S3').S4 

2:22.3') 707.85 

• 

teo.>.9a-

.13.13.61 

70.4 .. 

1 

:S27.,9 

S27.9') 

4 

1644.73 

649.28 

1 

"1006.~ 

1006.79 

723.87 ' 

5 5 

3224. 7S 2780.60 

.l040.1.S 1.377.17 

• 

2.2.48.48 

1608 • .1.0 

7 U N 

:t.S2'l.67 ' 

2327.67 

• :1'04&A1 

2048.41 

.-J: 72ii il .... ._~----- ? ~ 11 2 4 14 ~ 

SS0.40 1472 .:17 1040.40 33ol0.41 2846..37 :1.066.20 

250 • .24 843.23 791.-lS 1.02.2.67 1A60...26 

> 

2056.~0 ~· 

8.54.51 

• ~Q,:)7 ZC) 

1400.86 

A.O"' 

• 1.5~1.~ 

15')1.85 

2 

l.23'!MJ7 

22-39.07 
Study #4 - Data Missing 

• For participants whose employer is not noted 

• All considered in the grouping where reduction is based on service 

• Includes 89 inactive vested and 205 retired participants 

• For missing date of termination 

• Assume 6/30 of latest year with contributions on 138 inactive vested 

and 88 pa11icipants in pay status 

• Use date of retirement for participants in pay status without any 

contribution history provided for 316 participants in pay status, so all 

of these participants, unless orphans, aren't considered inactive vested 

• Pre-11111988 terminations were given the maximum reduction 

United Actuarial Services, Inc. 

8.87 

24 
Next Steps- Timing 

• Prior to IRS submission on suspensions 

• Coordination with PBGC's initial merger feasibility study 

• We will provide the PBGC with all requested data by week of Feb. 29. 

• They said 6-8 weeks to complete, so should be done by end of April. 

• It may take longer; they took more time than they said to just request data. 

• We need approval of suspension at least 3 months before tiling 

• June 30 deadline - If we miss this date, then July 1, 2017 effective date 

not possible and, barring a mid-year effective date, we move out a year. 

• This leaves, at most, 2 months for fuJJ merger study. 

• We may only have initial feasibility merger study, but this may be enough 

to justify a year delay if the initial merger study results are favorable. 

United Actuarial Services, Inc. 

a.ea 

25 
Next Steps- Timing 

• IRS Submission 

• Have three month windows of time for cash flow projections 

• Can file before final regulations but may need to revise accordingly 

• Additional work to be done for submission 

• Draft notice. including estimated impact to each pat1icipant is due within 4 

business days prior to submission 

• Draft a ballot for the vote 

• Various other pieces of information required by Rev. Proc. 2015-34 

• Must be no later than 9/30/ 16 with a 7/1117 effective date 

• After IRS Submission - up to 225-day wait for approval 

• Hold membership meetings to explain suspension and voting 

• Line up third party to cany out voting 

• Voting must be within 30 days of IRS approval! 

United Actuarial Services, Inc. 

8.89 

26 
Basis for Study 

General Assumptions 

• This study is based on 20 15 valuation with these exceptions: 

• We assumed a -0.15% retum for the 2015-16 year based on 12/31115 

unaudited financials and 6 .75% per mmum return for last 6 months 

• We assumed a 6.75% ammal return through the 2024-25 plan year 

• We assumed 5,962 future a1mual weeks starting in 2015-16 year 

• Future contributions in projections include all reasonably collectible 

contributions developed with the 6/30115 EWL report 

• Current inactive vested with all or a portion of their benefit based on 

the 110% of the PBGC guarantee are assumed to retire at age 52 

United Actuaria l Services, Inc . 

8.90 

27 
Basis for Study 

Benefit Assumptions 

• We made the following benefit assumptions for the study 

• All suspensions are effective as of July I, 2017. 

• A terminated participant's multiplier was determined using his or her 

reported date of termination. If date of termination missing, the 6/30 

of the last year of contributions is used as the date of tennination. If 

that's missing too, assume date of retirement is date of termination. 

United Actuaria l Services, Inc . 

8.91 

28 
Actuarial Basis 

This report includes results which are based on plan provisions, assumptions, methods 

and demographic data described in the July 1, 20 I 5 actuarial valuation of the 

International Association of Machinists Motor City Pension Fund except as 

previously noted. This report is subject to the same qualifications and limitations as 

detailed in that report. 

I am a Member of the Academy of Actuaries and fhlly meet the qualification 

requirements of the Academy to provide the opinion contained herein. 

Redacted b)' the U S Department of the 1 reasuf)' 

Paul Bullock, ASA, EA, MAAA 

United Actuarial Services, Inc. 

29 

8.92 
11590 North Meridian Street, Suite 610  Carmel, Indiana 46032-4529  (317) 580-8670  Fax (317) 580-8651

November 8, 2016 

Board of Trustees 

International Association of Machinists Motor City Pension Fund 

Troy, Michigan 

Re: Benefit Suspension Update 

Dear Trustees: 

We have prepared a few items to aid in our discussion regarding benefit suspensions: 

1. Summary of Additional Assumptions with a Benefit Suspension – We have learned about 

a few special assumptions that are warranted to add to our benefit suspension studies. This 

attachment provides a summary and discussion of these additional assumptions. 

2. Age and Service Tables with Old and New Higher Tier Benefit Suspension Formula –

We have updated these tables to include three additional months of asset experience from 

June, July and August. They use both the old multiplier ceiling formula for the higher tier 

and the new flat percent reduction formula to allow for a comparison between the two. 

The multiplier ceiling of 1.0% is lower than the previous 1.1% ceiling calculated back in 

June. Here are the positive and negative items impacting this update: 

 The additional operational expense assumptions from #1 above, which includes a 2% 

increase per year and an extra $100,000 in fees for the next two plan years, are the key 

reason why this result is worse. 

 These additional expenses were partly offset by improved actual asset returns. The 

estimated return for the 2015-16 plan year improved from -2.48% to -1.35%. The 

estimated return for the 2016-17 plan year, including asset experience from July and 

August, improved from our expected 6.75% to 9.10%.

The new flat percent reduction would be a 65% reduction to all participants on the higher 

tier. This reduction is much simpler and will allow us to properly adjust affected participants 

in pay status without requiring their contribution history. For example, if a participant has a 

$1,000 per month benefit in retirement, the 65% reduction will lower his benefit to $350. 

There is one group, active participants with most if not all accruals at the 0.5% multiplier, 

that we wanted to avoid hurting with the benefit suspension. Their benefits have already 

been reduced enough. The multiplier ceiling concept guaranteed that the 0.5% multiplier 

years would not be touched. The flat reduction does not have that guarantee. However, 

everyone’s benefit cannot be reduced below 110% of the PBGC guarantee. Participants with 

only 0.5% multiplier accruals are already below this floor level so they continue to see no 

further reduction under the flat reduction formula. 

8.93
Board of Trustees -2- November 8, 2016 

This flat percent reduction is replacing the multiplier ceiling for what I have been referring to 

as the higher tier benefit. The lower tier benefit, the maximum reduction of 110% of the 

PBGC guarantee, still applies to the same groups of participants as it did before. Age and 

service grids are not provided for the lower tier because those results have not changed since 

our last update. Maintaining the lower tier benefit is subject to it still being an equitable 

distribution among the various groups. We have not yet determined if it is an equitable 

distribution with the flat percentage reduction being the higher tier. We may have to move 

participants from the lower tier benefit to the higher tier benefit if the equitable distribution 

calculations no longer work. 

The 65% flat percentage reduction result is still preliminary. We still have a number of 

additional items to add before getting the final suspension percentage for a suspension filing 

that would be made by the end of March, 2017: 

 The asset experience through December 31, 2016 – The asset return is still the biggest 

variable which could still significantly change our final result. An additional loss could 

be enough to make even the maximum benefit suspension not feasible. 

 The plan experience from the July 1, 2016 actuarial valuation – Our preliminary 

valuation result at this moment yields a very small experience gain on plan liabilities. 

Unless there is an unexpected surprise, the 2016 plan experience gain or loss is not 

expected to significantly change our result.

 Adding final special assumptions – The mortality update especially should drop plan 

liabilities by about 0.25% to 0.40%. The open group projection with new entrants could 

also affect the result, but it is difficult to tell whether this change will help or hurt the 

final result. 

3. Sample Benefit Suspension Participant Notice – This attached preliminary sample notice 

provides an idea of what content would be provided to participants in late March if the Board 

decides to proceed. 

Deciding to approve this benefit suspension is tough choice that no Board ever wants to consider. 

Participants have been loyal, sometimes for their entire career, knowing that they will receive a 

monthly lifetime pension for their hard work and dedication. This implicit promise would be 

broken by taking away a big chunk of their pension benefits and is a compelling reason to do 

nothing. However, this alone is a false sense of reality. The Plan is projected to be insolvent in 

less than 10 years at which time participants’ benefit will be cut to the PBGC guarantee level. 

Additionally, the PBGC is also in financial trouble. By the time of Plan insolvency, this PBGC 

guarantee could be cut yet further to save itself from insolvency (one study looked at a 25% cut) 

or cut by a whopping 90% if the PBGC’s funds are used up. No action on a suspension would 

lead to at least a 10% greater cut in 10 years for most participants1

, and it could be much greater. 

 

1

 Participants with most or all of their benefits earned at the 0.5% multiplier may already be below the PBGC 

guarantee and, therefore, would not receive any further reduction with the Plan’s insolvency.

8.94
-3-

As fiduciaries, the Board must operate in what is in the best interest of pJ:m panicipaots. 

Approving a be ~:~efit suspension itL least gives participnnts n choice (remember, they get an 

oppc>11unity to vore Otl the suspensioo) between a smallet haitcUl now ot a bigger haitcut l:uet. 

Finally. there is only a small window of oppottunity to do a benefit suspension. Once the 

maximum reduction on all part:icipants. 11 0% of the PBGC g\tarantee. does not eliminate the 

insolvency, the window of opportunity is hut ~. This could hnppen as early as this currcm 

~:~uary J, 20 I 8 proposed suspension d:tte with a big enoush toss or soon thereafler, even if thereis not an additional loss. Waiting furthel' to consider a benefit suspension risks having this 

window of opponunity shUl forevet•. 

The results in this letter are based on the plan provisions. ~sump s. methods and 

demogrnphic daul ;'s summarized in the July I. 2016 PPA certification leiter whh the following 

exceptions: 

• The asset remm for the 20 ~ 17 plan year is assumed to be 9.10% based on actuaJ experience 

through A\lg-ust 31, 2016 combined with a return at an annual rotc of 6.75% for d1c remaining 

len monlhs of the pl.:·m ye~ .r. 

• Ope.r<uional expenses are assumed to i1\crease by 2% J)tW year be.ginning with the 2016-17 

plan year. Also. an additional $100.000 is added ro the opemtionaJ expenses in both the 

2016-17 and 2017-18 plan years. 

I ::un <"l\1ail.able m {317) :580-8652 or pbulll)Ck@uniledaciUaJial.corn i f >rou have any que.~ . 

will be in attendance at yow· November 10,. meeti11g 10 review this letter. 

Sincerely. 

Redacte b>' the U S epartment 

of the Treasur>' 

. . . Vice President 

Enc1osurcs 

cc: f\•lr. Duane. Menter. Adminisll'ator 

f\•lr. li ael f\<lills. Fund Counsel 

rvts. Violet Gjorgjevski. Plan Associate 

~ T¢dmkotlly. MN{A :ll <>w~ p ia") to p;u1i1i0n a Jl(lrll()ll of h~ l)l;n'l <>IY ll) Ill~ POOC wlicn h~ tnaxhnum su~pt: ~iofl 

docs 001 v.'OI'k. HO\\o"C\'N, the PBGC t.~o'Ould only upprovc a sus!)l.-ns.ion thtll includes a panition if such Jktrtilion dMJ 

n()l (:QIIl[Jr(UtliSC l!teir bilily 10 m:d:.e p;l)'lltents (0 plon., lh:t! I hey lb:'i\'t;: :.~I R": t4y prom i~. 1'hi& dftcli,,ely m:·•l.'.:.S Ill!: 

s pmtilioo solmton very dillkult. if nOl impossible. to scromplish at this time. 

8.95 
IAM Motor City Pension Fund 

Additional Projection Assumptions with a Benefit Suspension 

There are a few additional projection assumption changes we have added (where noted in italics) or need 

to incorporate into the final benefit suspension solution as a result of recent benefit suspension 

application denials, guidance from speakers at educational sessions, and experience from the first UAS 

actuary that has completed a benefit suspension application (for Bricklayers Local 7): 

x Employment trends ʹ It is important to add an annual decline in work if the industry has had a track 

record of declining work in the past. The lack of a decline in an industry that had a track record of one 

was part of the reason for the Road Carriers Local 707 and Iron 16 suspension denials. Here is a 5, 10 

and 15-year average annual change in work for employers that were current as of June 30, 2015 (all 

other employers excluded): 

Period Average Increase 

7/1/2010-6/30/2015 

(5 years) +0.48%/year 

7/1/2005-6/30/2015 

(10 years) -2.71%/year 

7/1/2000-6/30/2015 

(15 years) -1.01%/year 

A 5-year history includes most of the recovery period from the recession but not the recession itself, 

so this figure may be high. A 10-year history includes the recession and partial recovery, but this 

ĚŽĞƐŶ͛ƚ ŝŶĐůƵĚĞ ƐƚƌŽŶŐĞƌ ŵĂƌŬĞƚ ƉĞƌŝŽĚƐ ůŝŬĞ ƚŚĞ ϭεεϬ͛Ɛ͘ dŚĞ ϭρ-year history includes more years 

before the recession and an smaller decline of only 1% per year. Further history (which is unavailable) 

likely would show that something higher, including 0% growth, could be justified. /ƚ͛Ɛ ĂůƐŽ ǁŽƌƚŚǁŚŝůĞ

to note that the maximum suspension would not work with a 1% decline per year. Considering all of 

this, we have left the Plan at 0% growth in future weeks worked in our latest update. 

x Future new entrants ʹ dŚĞ ĨŝŶĂů ƌƵŶ ŵƵƐƚ ŝŶĐůƵĚĞ ǁŚĂƚ͛Ɛ ĐĂůůĞĚ ĂŶ ŽƉĞŶ ŐƌŽƵƉ ƉƌŽũĞĐƚŝŽŶ͘ dŚŝƐ ŝƐ

where we replace current actives after they terminate, retire, etc. with new entrants. These new 

entrants must have a distribution of entry ages which reflect ages of actual new entrants to the Plan 

over at least the past 5 years. 

x Expenses ʹ Both of these items have been added to our latest update. 

o We need to estimate and add the additional cost of completing the benefit suspension 

application. We estimate this cost to be $100,000 in each of the next two plan years. This is extra 

expense could have easily been $150,000 with the multiplier ceiling formula given the benefit 

calculation challenges we would have faced with limited documentation. Brick 7, our other fund 

that filed for a suspension, faced similar issues with less than half the participant size and 

generated $120,000 in special charges in the suspension filling year. 

o Future expenses should also be increased annually by expected inflation. We used an annual 

increase of 2.0% per year into the future. 

8.96
IAM Motor City Pension Fund 

Additional Projection Assumptions with a Benefit Suspension 

x Bankruptcy rates ʹ There is an annual probability that an employer paying withdrawal liability would 

go bankrupt and would no longer be able to pay withdrawal liability. We used an annual rate of 

bankruptcy of 13.6% for the smaller employers in our mass withdrawal liability study. However, no 

application has yet to add bankruptcy rates. Why? From what I have learned, it seems the track 

record of employers going bankrupt is considerably worse with mass withdrawal. It generates greater, 

uncapped assessments that further incentivizes employers to declare bankruptcy. Also, mass 

ǁŝƚŚĚƌĂǁĂů ĐĂŶ ďĞ Ă ƉůĂŶ ƐƉŽŶƐŽƌ ĚĞĐŝƐŝŽŶ͕ ǁŚĞƌĞĂƐ Ă ƌĞŐƵůĂƌ ǁŝƚŚĚƌĂǁĂů ŝƐ ƉƌŝŵĂƌŝůLJ ĂŶ ĞŵƉůŽLJĞƌ͛Ɛ

financial decision, so mass withdrawal employers could get stuck with a withdrawal liability that they 

did not financially choose or can afford. As a result of no bankruptcy rates with prior suspension filings 

and these above arguments, I will likely leave bankruptcy rates out of the benefit suspension. 

x Mortality ʹ The Society of Actuaries recently published mortality improvement scale MP-2016. This 

adds three additional years (2012, 2013 and 2014) to their study. The rate of mortality improvement 

over these three years continued to be slower and, therefore, the new scale has slower 

improvements. We will add in this scale with the 2016 valuation. It is estimated to lower plan 

liabilities by about 0.25% to 0.40%. 

We will hear back on at least one additional suspension application (Teamsters 469) before the end of the 

year. We will hear on a second (Brick 7) in early February and could hear about a third (Iron 17) ahead of 

their 225-day due date because they resubmitted their application and had already started their approval 

process͘ tĞ ǁŝůů ŵŽŶŝƚŽƌ ƚŚĞƐĞ ƌĞƐƉŽŶƐĞƐ ƚŽ ƐĞĞ ŝĨ ƚŚĞƌĞ͛Ɛ ĂŶLJ ĨƵƌƚŚĞƌ ĂĚũƵƐƚŵĞŶƚƐ ǁĞ ŶĞĞĚ ƚŽ ŵĂŬĞ

before filing our application.

8.97
IAM Motor City Pension Fund 

Breakdown of Benefit Suspension Impact by Age and Service 

Actives with 1.0% Multiplier Ceiling, 110% of PBGC Guar. Minimum 

8.98

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IAM Motor City Pension Fund 

Breakdown of Benefit Suspension Impact by Age and Service 

Actives with 65% Flat Reduction, 110% of PBGC Guarantee Minimum 

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IAM Motor City Pension Fund 

Breakdown of Benefit Suspension Impact by Age and Service 

Inactive Vested with 1.0% Multiplier Ceiling Only, 110% of PBGC Guar. Minimum 

 

8.100

Row label~ 05·09 , .... 15-19 20-24 25·29 ..... 3S·l9 ..,. Citaf'M:I Total 

JO·J4 

COuntofAA 2 2 

AverageofBENFrT 201.08 201.08 

Aver:age of Stucty 4 BEN HT 1.98.23 198.2J 

Average of Percent 98.6%, .... JS<JCJ 

Coumot AA 5 • 3 17 

Average Of B£NFJT , ... .,. 296.4() 513.S9 307.56 

Avvr-.&« of Study 4 8E'NFfT 162.25 273.10 411..86 2JS.S8 

Aver.1ge of Percent .s" 92.1% 9L9" 8M 

., ... 

CountofAA • • 3 ].$ 

Avt,..i90f8£NFIT 244.25 228.60 SA$.19 3')0.99 

Aver•ge of Study 4 8ENFIT 449.36 2;52:.67 

Average of ~rcent SL ... 83. 

..... 

CountofAA • 11 11 l 2 33 

AveNge of BENHT 242.-Sl 4n.64 797..54 73'2.84 BS6. U ~6.28 

Average of Stucty 4 BENFrr 184.87 354.11 581.74 668.87 785.33 424.63 

Average of Percent J!-2%. "·'\. ,_,. 9LJ% 91.7% 70.3 

..... 

count of AA 7 ll 5 2 ' ' 29 

Ave~tt of B(NFfT l18.l:9 ...... ..... 15 S30.S2 1534.79 S:l 407.55 

Avenge of Study 4 BENj:n' 173.96 274.6! 426.05 498.17 l06L7S 1160.09 349.SS 

Average of Percent Lmr19-~ 91.2" 93.8% 93.9% 69.2" 72.8% ss.a" 

SS·S9 

CountOfAA 8 ll 2 1 3 2 ' 30 

Aver•~ of 8E.NFfT 196.9:! 2:87.56 761..50 3il6.96 763.64 u9t.sa 1543. n "" Average of Study 4 BEN FrT J.$9.52 2:51.99 S74.70 336.96 707.64 1043.51 1387.76 )87.87 

Average of Percent 81.0511 8'1.6% IJ.:>% ""'"" n:l% 81.6% ...... 86.9" 

..... 

COuntofAA 2 • 4 ' 1 1 13 

Aver<lge of BENFIT 248.17 389.0 1 1076.10 B79.32 1545.36 1778 . .18 812.31 

Average of Study 4 BEN FIT 216.42 ll9.02 122.14 802.58 1392.90 15S9.S1 644.81 

Average of Percent 87.1% 82.0'Jj 67.1ll 91.3!6 90.1ll 89.4% 19A 

... 

count of AA 1 1 2 

Aver4,geof8fNFJT 336.97 1602.89 969.93 

Avel'age of Study 4 BEHFJT 336.97 t454.n 895.85 

Average ot Percent 100.~ ...... .,.. 

Tot• ICou.nt of AA ,. ,. 24 • ' 3 2 2 , .. 

lobi tr.~efl Clf &£Nm , .... 3~ 1 6S6 . .ilt 751.47 9l6.7S 13.?:6.0!) lS44.54 1690.$4 ...... TotaiAvenee of Study4 8ENF!IT 118..02. ltl.SS 518.44 580.36 1t 3..99 1082.37 ll90..3l 152:2.\'2 38U8 

o~l Aver.~ge of l>eroen t 79. " 86.1% )9.0'Jj 71.2% 86.(1% 81.6" ... .,. ... "" 82-8%1 

Unhed Actuarl"l Scr"'l"'· Inc. 
IAM Motor City Pension Fund 

Breakdown of Benefit Suspension Impact by Age and Service 

Inactive Vested with 65% Flat Reduction, 110% of PBGC Guarantee Minimum 

 

8.101

Row label~ 05·09 , .... 15-19 20-24 25·29 ..... 3S·l9 ..,. Citaf'M:I Total 

JO·J4 

COuntofAA 2 2 

AverageofBENFrT 201.08 201.08 

Aver:age of Stuct)' S BEN HT 1.98.23 198.2J 

Average of Percent 98.6%, .... JS<JCJ 

Coumot AA 5 • 3 17 

Average Of B£NFJT , ... .,. 296.4() 513.S9 307.56 

Avvr-.&« of Study 5 BE'NFfT 162.25 273.10 411..86 2JS.S8 

Aver.1ge of Percent .s" 92.1% 9L9" 8M 

., ... 

CountofAA • • 3 ].$ 

Avt,..i90f8£NFfT 244.25 228.60 SA$.19 3')0.99 

Aver•ge of Study .S 8ENFIT 449.36 2;52:.67 

Average of ~rcent SL ... 83. 

..... 

CountofAA • 11 11 l 2 33 

AveNge of BENHT 242.-Sl 4n.64 797..54 73'2.84 BS6. U ~6.28 

Average of Study s BENFrr 184.87 354.11 581.74 668.87 785.33 424.63 

Average of Percent J!-2%. "·'\. ,_,. 9LJ% 91.7% 70.3 

..... 

count of AA 7 ll 5 2 ' ' 29 

Ave~tt of B(NFfT l18.l:9 ...... ..... 15 530.52 1534.79 5:l 407.55 

Avenge of Stu<t,o S BENj:n' 173.96 274.6! 426.05 498.17 l06L7S 1160.09 349.SS 

Average of Percent Lmr19-~ 91.2" 93.8% 93.9% 69.2" 72.8% ss.a" 

SS·S9 

CountOfAA 8 ll 2 1 3 2 ' 30 

Aver•~ of 8E.NFfT 196.9:! 2:87.56 761..50 3il6.96 763.64 u9t.sa 1543. n "" Average of Study S BEN FrT J.$9.52 2:51.99 574.70 336.96 707.64 1043.51 1387.76 )87.87 

Average of Percent 81.0511 8'1.6% IJ.:>% ""'"" n:l% 81.6% ...... 86.9" 

..... 

COuntofAA 2 • 4 ' 1 1 13 

Aver<lge of BENFIT 248.17 389.0 1 1076.10 B79.32 1545.36 1778 . .18 812.31 

Average of Study 5 BEN FIT 216.42 ll9.02 122.14 802.58 1392.90 1569.51 644.81 

Average of Percent 87.1% 82.0'Jj 67.1ll 91.3!6 90.1ll 89.4% 19A 

... 

count of AA 1 1 2 

Aver4,geof8fNFJT 336.97 1602.89 969.93 

Avel'age of Study S BEHFJT 336.97 t454.n 895.85 

Average ot Percent 100.~ ...... .,.. 

Tot• ICou.nt of AA ,. ,. 24 • ' 3 2 2 , .. 

lobi tr.~efl Clf &£Nm , .... 3~ 1 6S6 . .ilt 751.47 9l6.7S 13.?:6.0!) lS44.54 1690.$4 ...... TotaiAvenee of Study.S 8ENF!IT 118..02. ltl.SS 518.44 580.36 1t 3..99 1082.37 ll90..3l 152:2.1'2 38U8 

o~l Aver.~ge of l>eroen t 79. " 86.1% )9.0'Jj 71.2% 86.(1% 81.6" ... .,. ... "" 82-8%1 

Unhed Actuarl"l Scr"'l"'· Inc. 
IAM Motor City Pension Fund 

Breakdown of Benefit Suspension Impact by Age and Service 

In Pay Status with 1.0% Multiplier Ceiling Only, 110% of PBGC Guar. Minimum 

 

8.102

Row~llcb 

S0!04 

C.aunta!AA 

A¥terage of BeMf 1 

.lh~e~ge of S<rudrt Benl1t 

A¥erage of Pertent 

~9J 

('QUI'Itof AA 

AVPfillf" of E;IPRoC~flt 

A'\u;ar;ag~ of s1udy .11 Benin 

Avllrill!l= of PI:'I'OC!nt 

150·64 

C.ountafAA 

A¥tefag_e of Bl!!fliE! I L 

A¥ereg:e of S'LUdf/.IIIJ;en•it 

A¥erage of Perrent 

~ 

count of :ItA 

Allii!r011f!i! of BPI'IIIIM 

nn)lg~ of Study4 Blanf"t'l 

A¥c:r;aga of ~t!l'alnt 

1o .r.a 

CounL of AA. 

A~er~~.ge of Beneiit 

Ao,~eriJge of S.l.udr/4 Benl11 

A~,oe age of Per<-ent 

~19 

countofftA 

AIIPI"PifP ~f I'IP!'IIIf t 

AMPriiiJII of srudy .11 BiAnll'l 

At,!CriiBtJ of Peoroont 

ao u 

Ccur'rtofAA 

Avtehl.ge m Be1ilt!1i 1 

A¥erage of S.Wdr/4 D:enlit 

A .. u!!rage of Pen:ent 

~ 

COunt of All, 

Allii!r'ilfii! of E.IP1'11!fit 

Avar~~ga m S.rudy .II ijopnfl1 

A~o~c ;agv of PI:'I'OCint 

klbl ~:~u ...t of AA 

Tuiiii Aver.ge of l!lertelt'l. 

'lolal Avll!fq,a!! Ul' study 4 Oc!nlit 

1"0011 Alit!!r,..ge ot' Pe!K-elrt 

1G 

4n&A5 

08..45 

100.0"111. 

7{1 

~!12 ·n 

~Sl.'!l l 

100.~ 

110 

1!14..15 

l !I<U!i 

100.0'!11. 

2. 

332.55 

lU.lO 

~ 

l 3 

J!I'MIIi 11)]. 73 

183. 12 1D1-73 

'!1 ~ 100...,. 

2. 4 

15!..06 3~ 64 

1.50..28. 284-21 

"' nn. 

li B 

261L41 177-&l 

19~1. )0 176..13 

1 

566.71 

S2U4 

~3 ~ 

1 2 ~ " .. ~I; ~U l'J lll'Q6.~ ]J,q.% 16&5.10 

~~-li4 49 1.3.7 ~.SO, 71.!1.7! 108~.14! 

90.""" 

.LO 14 

s t0.66 l51Cl.90 l915:ua 20)9.~ 

l50,53 6114.32 !B8.2J 1012.60 ,-.-.<,-, ~ 1 • 1 P ,• ··,- r- ..-.-. 1 ,: ·~· 

.. I o ~ • I • "; ', •'~ ~ ~= ,I •- • I 

e6_4% 

10 5 2;.1. IS ~ 

370.49 ltiM,9~ ~-~ :Z4tl~.IS 1~!1.77 

l-~.12 74'9.00 :~aa1.n 12lfl7.34 134G-.16 

Gond fob l 

24 

U67.'~3 

70~ D1 42 

1615.24 155(1.09 

1457.]5 '764,'JI(1 

~ 

J 7fi 

1311i0.SO l(i4i!.47 

11.9'-'3S 

12 ~ --~~~ 99-'-"i 90 10.9% _ ___.:o==...;:.........o.;;z::="""" sus 

~ 6o 6, 4. 1 J! 4 l S1 

524..~ 54S:.D2. 005.07 79U4 11565.99 :1991.05 2271.78 2:156.4.2 1500.@;8 

30477 :1158 50 48:L:U :l622.16 

51.1" 67.416 .. 71~ 7'>.2~ 

2 s a; 5I n IS 3 1 S7 

-4\l,...CS 4C>!LIS2 GA4-IiQ 1~.15 1~.13 115SR.'I\:l 371111.~ ~012. ~ rnom 

191-lli 42S.Il\ 76.1i~ )'\7(1.9'3. IJ9"7. [14. 139(1.1 ] U'AB.Ui 1'9i&t ~ 1QOB.ll 

'!ll A% 13.9% 111...!1'< II-2...!J% -"' .2% 

2. 4 & 10 11 5 41 1 55 

290..44 l2.4.61 562.26 919.94 1.0".15.81 191i5. "131 1115.38 1786 • .U 855.12 

2.!l(l.i4 324.61 561.26 91.9.94 1015.81 .1,9.t5, 7.) ll15.J8 1786.4) S55.l2 

100.0% 100.-mt. 100 ~ loo..o% 1~ lOO.o% JOO ~ 1()1)..(11\, IOO.IP!IIo 

l .II 3 5I 7 2 41 J 103 

1064-JI!J -451-&S ~.3'}1 l:JN.lS lOLS.7tl 832.1;15 •n:ui6 74;6.1).\ ~7B.U 

l~!l 4!11. &:i ~~;J!JI 13~.18. l0l.!.1D '- ~ 9 l:7.(16 7'1&.04 !17H.I 1 

100.1:1% 100.11.1l 00~ 1~ lDD.U% lliiL~ 1Dl ~ JtlO..o% lOO.if.tl'. 

l :P J~ 3!1 ~ 6 bJ 21 22 olU 

6-l..Ol :J4§..-86 626.!19 1247.29 1'109.1)7 1949.6S 1!50..2!9 1711.92 UoUCI 

:UO..ll 05..8.!; 480.83- m.-90 97S.57 12S1.14 Uli:li.YI 11411.41 741:11.21 

74,S.'jf, U.'i'% 76.~ 7'J~ 57-a i$.2% 68.2.% 76.1'll. 68.0% 
IAM Motor City Pension Fund 

Breakdown of Benefit Suspension Impact by Age and Service 

In Pay Status with 65% Flat Reduction, 110% of PBGC Guarantee Minimum 

8.103

Row~llcb 

S0!04 

C.aunta!AA 

A¥terage of BeMf l 

.lh~e~ge of S<rudrt 5 Benl1t 

A¥erage of Pertent 

~9J 

('QUI'Itof AA 

AVPfillf" of E;!PfloCiti.t 

A'\u;ar;ag~ of S1ud&~ .!1 l!ianin 

Avllrill!l= of Pl:'rotmt 

150·64 

C.ountafAA 

A ... erag.e .of Be I'M:! hl 

A¥ereg:e of S'I.Udl/ 5 Ben• it 

A¥erage of Perrent 

~ 

count of :ItA 

Allii!r011f!i! of BPI'IIIIid 

nn)lg~ of S1udy.:. llianfl'l 

A¥c:r;aga of ~I:I'CIInt 

1o .r.a 

Count of AA. 

A~er~~.ge of Belleift 

Ao,~eriJge of S.l.ud~ 5 Benl 11 

A~,oe age of Per<-ent 

~19 

countofftA 

AIIPI"PifP ~f I'IP!'IIIf t 

AMPriiiJII of srudy .5 l!ianll'l 

At,!CriiBtJ of lii~:!.roant 

aou 

Ccur'rtofAA 

Avtehl.ge m Be•.ef&t 

A¥erage of S.wdy 5 D:enlit 

A .. u!!rage of Pen:ent 

~ 

COunt of All, 

Allii!r'ilfii! of E.IP1'11!ftt 

Avar~~ga m s:rud~ 5 ijopnfl1 

A~o~c ;agv of Pl:'raJnt 

klbl ~:~u ...t of AA 

Tuiiii Ave ~~ge of l!lerteUt 

'lolal Avll!fq,a!! Ul' study 5: Bc!nlit 

1"0011 Alit!!r,..ge ot' Pe!K-elrt 

1G 

4n&A5 

08.45 

100.0"111. 

7{1 

;m .• ·n 

3Sl.'!ll 

1.00.~ 

110 

1!14..15 

l !I<U!i 

lOO.O'!If. 

l 

J!I'MIIi 

183. 12 

'!1 ~ 

2. 

15!..06 

150..28. 

"' 

li 

261l41 

1!14-:U 

n.4,... 

~ 

524..~ 

30477 

sa.u' 

2 

-4UAS 

199\.,ll!i 

2. 

290..44 

2.!10..44 

100.0% 

l 

1064-JI!I 

l~!l 

100.1:1% 

l :P 

~&l..Ol 

:ULO!i 

7!t 1\lri 

2. 

332.55 

lU.lO 

~ 

3 

11)]. 73 

1D1-73 

100...,. 

4 

3~ 64 

284-21 

nn. 

B 

177-&l 

l1lt..Da 

1 

566.71 

S2U4 

~3 ~ 

1 2 ~ " .. ~I; ~U l'J lli06.~ ]J,q.% 16&5, 10 

~~-li4 49 1.3.7 871.11.7 71.!1.7! 108~.14! 

90.""" 

.LO 14 

U0.66 l51Cl.90 19153.8:6 20)9,88 

349.00 72ti.B1 981.21 1026.07 -.., ••- -r ~,-.... , ,._- .- .-,to.,- -,..- •" 1 J~ r;. r 

" .-. ~.& •• ~: -~ ~ ~- •• ~ ••• • 

e6_4% 

10 5 2;.1. IS ~ 

170,.119 1~.!1~ 23iBiii,M :Zolliii,.JS 1~!1.77 

J,lJ.-M ~-3l lO!I!.tl )1'9!i. 79 1341>.16 

1 

1615.24 

1457.35 

~ 

Gond fob l 

42 

15.56.09 

789.41 

7fi 

1~3. 11 

8:!0.641 

~-'9!1-1~ ~ 90.1% 10 9% ....,: 1iiiio--

6. 

548:.{12. 

31)!.!1!1 

66-ft 

s 

4C>S.I5). 

474.n 

'91.2% 

4 

l2.4.61 

324.61 

lOO.mt. 

.II 

451-&S 

4!11. &:; 

100.11.1l 

J~ 

:J45..-86 

~ 

i8.01 

6, 4. 1 .1! 4 l 

005.07 79U4 11565.99 :1991.05 2271.78 2:156.4.2 

482.111 57l.St 9"26.68 W1.68 t.UlJ.41 1622.16 

.. 71~ ~ 60.~ 61.8"' 7'>.2~ 

a; 5I n IS 3 1 

(i44.1ia 1~.15 1~.13 115SR.'I\:l 37!0U(I ).012. ~ 

474.:n )'\7(1.9'3. I;J'9'7. D4 139(1.1 ] 1SI:i~ ~ 1'9i&t ~ 

Fl.t.'- 91...!1'< II-2...!J% lU. ~ • .I% 

& 10 11 5 41 1 

562.26 919.94 1.0".15.81 191i5.7"l 1115.38 1786 • .U 

561.26 91.9.94 1015.81 .1,9.t5, 7.) ll15.J8 1786.4) 

100 ~ loo..o% 1~ lOO.o% JOO ~ 1()1)..(11\, 

3 5I 7 2 41 J 

~.3'}1 l:JN.lS lOLS.7tl 832.1;15 •n:ui6 74;6.1).'1. 

~~;J!JI 13~.111. l0l.!.1D ~- ~ 9 l7.(16 7'1&.04. 

100~ 1~ lDD.U% lliiL~ 1Dl ~ JtlO..o% -~-----

3!1 ~ 6 b.J 21 22 

626.!'19 1247.29 170U7 19o8.6S 1!50.l!9 1711.92 

480.]1 9'17 . .10 984.aa u n . s~ U64.J;II 11411.41 

16.~ 74..)~ 51A!!I 63.5% 68.3':\t 76.1'.(, 

S7 

I~.IJJ 

1009..311 

1<>..2% 

5.5 

855.12 

S55.l2 

IOO.IP!IIo 

103 

~7B.U 

!17H.I 1 

lDl.if.tl'. 

olll 

11oUCI 

~:1!..1!1 

68.0'1t. 
	





n March 29, 2017, the Board of Trustees of the International Association of Machinists Motor 

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Final 8eMflt Suspension. Maximum Suspension toe All Participants 

r = 

8.110 
IAM Motor City Pension

Summary of Benefit Suspension Study Results

Group Number Current With 65% Red. With Max Red. With 65% Red. With Max Red.

Actives at Age 65

Had 65% Reduction Originally 15 1,730.79 605.78 531.54 65.0% 69.3%

Had Max Reduction Already 122 605.32 393.18 393.18 35.0% 35.0%

Already Below Max Reduction 4 113.97 113.97 113.97 0.0% 0.0%

Total 141 711.11 407.87 399.97 42.6% 43.8%

Inactive Vested at Age 60

Had 65% Reduction Originally 8 1,202.60 420.91 342.86 65.0% 71.5%

Had Max Reduction Already 291 614.97 413.02 413.02 32.8% 32.8%

Already Below Max Reduction 73 133.13 133.13 133.13 0.0% 0.0%

Total 372 533.05 358.28 356.59 32.8% 33.1%

In Pay Status

Had 65% Reduction Originally 25 3,122.13 1,140.54 960.22 63.5% 69.2%

Had Max Reduction Already 361 1,393.26 808.24 808.24 42.0% 42.0%

Already Below Max Reduction 81 148.95 148.95 148.95 0.0% 0.0%

Age 80+/Disabled, Fully Protected 171 790.99 790.99 790.99 0.0% 0.0%

Total 638 1,141.61 732.93 725.87 35.8% 36.4%

Average Accrued Benefit Percent Reduction

8.1101