CPTF-DV000686

Part I Annual Re ort Identification Information 

For calendar plan year 2017 or fiscal plan year beginninsj)S/01/2017 and ending 04/30/2018 

A This return/report is for: a multiemployer plan O a multipl(:l--employer plan (Filers checking this box must attach a list of 

participating employer information in accordance with the form instructions.) 

B This return/report is: § a single-employer plan the first return/report an amended return/report § a DFE (specify) the final return/report a short plan year return/report (less than 12 months) 

C If the plan is a collectively-bargained plan, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... • 

D Check box if filing under: [XI Forni 555.!l- .•. ·.·•.... . D automatic extension O the DFVC program n special extension (enter description) 

I Part II I Basic Plan lnformation'..-eriter au· requested information 

1 a Name of plan 

CARPENTERS' 

VICINITY 

.·. · .. 

PENSION TRUST .FUND - DETROIT AND 

1 b Three-digit plan 

number /PN) • 

1 C Effective date of plan 

05/01/1957 

I 001 

2a Plan sponsor's nam.e (employer, if for a single-employer plan) 

Mailing address (include room, apt., suite no. and street, or P.O. Box) 

City or town, st~te or province, country, and ZIP or foreign postal code (if foreign, see instructions) 

BOARD OF TRUS.TEES OF CARPENTERS ' 

2b Employer Identification 

Number (EIN) 

**-***2188 

PENSION TRUST FUNDDETROIT&VICINITY 

JOAN JANKS 

P.O. BOX 4540 

TROY MI 48099-4540 

2c Plan Sponsor's telephone 

number 

248-813-9800 

2d Business code (see 

instructions) 

238300 

Caution: A penalty for the late or incomplete filing of this return/report will be assessed unless reasonable cause is established. 

Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this return/report, including accompanying schedules, 

statements and attachments, as well as the electronic version of this return/report, and to the best of my knowledge and belief, it is true, correct, and complete. 

SIGN MICHAEL J. JACKSON, CHAIRMAN HERE 

Sianature of olan administrator Date Enter name of individual sianina as olan administrator 

SIGN ROBERT HALIK, SECRETARY HERE 

Sianature of emolover/olan sponsor Date Enter name of individual sianina as emolover or olan soonsor 

SIGN 

HERE 

Sianature of DFE Date Enter name of individual sianina as DFE 

For Paperwork Reduction Act Notice, see the Instructions for Form 5500. Form 5500 (2017) 
CPTF-DV000687

a Sponsor's name 4d PN 

C Plan Name 

5 Total number of participants at the beginning of the plan year ·'•,, . 5 I 4706 

6 Number of participants as of the end of the plan year unless otherwise stated (welfare plans complete only lines 6a(1), 

6a(2), 6b, 6c, and 6d). 

a(1) Total number of active participants at the beginning of the plan year 6a(1) 4706 ············•············· ···········•• ········ a(2) Total number of active participants at the _end of the plan year 6a(2) 4899 ········•··•··········••·······················••· ... 

b Retired or separated participants receiving benefits· .............. 6b 5369 ... .......... ··••························· . . . . . . . . . . . . 

C Other retired or separated participants entitled to future benefits ..... 6c 6592 ··••············· ·································· 

d Subtotal. Add lines 6a(2), 6b, and 6c 6d 16860 ············•·· ············ ·········-···· ·············· ······-·· ···········-···· 

e Deceased participants whose beneficiaries are receiving or are entitled to receive benefits .. Ge 3266 ···••····················· 

f Total. Add lines 6d and 6e 6f 20126 

·························· ·········-·· ······················································ 

g Number of participants with account balances as of the end of the plan year (only defined contribution plans 

complete this item) 

··········· ·-····························•·· ············-······································· ······· 

6Q 

h Number of participants who terminated employment during the plan year with accrued benefits that were 

less than 100% vested .................................................. ····· ·································· .. ········ 6h 

7 Enter the total number of employers obligated to contribute to the plan (only mulliemployer plans complete this item) 7 413 

Sa If the plan provides pension benefits, enter the applicable pension feature codes from the List of Plan Characteristic Codes in the instructions: 

lA 

b If the plan provides welfare benefits, enter the applicable welfare feature codes from the List of Plan Characteristic Codes in the instructions: 

9a Plan fun~ng arrangement (check all that apply) 9b Plan be~fit arrangement (check all that apply) 

(1) _ Insurance (1) _ Insurance 

(2) Code section 412(e)(3) insurance contracts (2) _ Code section 412(e)(3) insurance contracts 

(3) E Trust (3) 2! Trust 

(4) General assets of the sponsor (4l General assets of the sponsor 

10 Check all applicable boxes in 10a and 10b to indicate which schedules are attached, and, where indicated, enter the number attached. (See instructions) 

a Pension Schedules b General Schedules 

(1) R (Retirement Plan Information) (1) X H (Financial Information) 

(2) MB (Mulliemployer Defined Benefit Plan and Certain Money (2) (Financial Information - Small Plan) 

Purchase Plan Actuarial Information) - signed by the plan (3) A (Insurance Information) 

actuary (4) X C (Service Provider Information) 

(3) • SB (Single-Employer Defined Benefit Plan Actuarial (5) X D (DFE/Participating Plan Information) Information) - signed by the plan actuary (6) G (Financial Transaction Schedules) 
CPTF-DV000688

 

CARPENTERS' PENSION TRUST FUND - DETROIT AND 

C Plan sponsor's name as shown on line 2a of Form 5500 

.. D Employer Identification Number (EIN) 

BOARD OF TRUSTEES OF CARPENTERS' **-***2188 

I Part I I Distributions 

All references to distributions relate only to payments of benefits during the plan year. 

1 :::::i:~: of. ~-istrib~tions ~ai~ .in. p.ro.pe~y -o~he~ th.an. i~ -~sh. ~r the. for~s. of. prop~~- s~eci.fied. i.n t~e . . . . . . . . . . . . ...I _ 1_ ... I __________ _ 

2 Enter the EIN(s) of payor(s) who paid benefits on behalf of the plan to participants or beneficiaries during the year (if more than two, enter EINs of the two 

payors who paid the greatest dollar amounts of benefits): 

EIN(s): 

Profit-sharing plans, ESOPs, and stock bonus plans, skip line 3. 

3 Number of participants (living or deceased) whose benefits were distributed in a single sum, during the plan 

ear .. 

3 0 

Part II Funding Information (If.the plan is not subject to the minimum funding requirements of section of 412 of the Internal Revenue Code or 

ERISA section 302, ski this Part. 

4 Is the plan administrator making.an election under Code section 412(d)(2) or ERISA section 302(d)(2)? 

If the plan is a d,efined berefit plan, go to line 8. 

5 If a waiver of thefuinimum funding standard for a prior year is being amortized in this 

plan year, see instructions and enter the date of the ruling letter granting the waiver. Date: Month 

Yes X No N/A 

Day __ Year ___ _ 

If you completed line 5, complete lines 3, 9, and 10 of Schedule MB and do not complete the remainder of th,.is_s_c,_h_ed_u_l_e_. _______ _ 

6 a ::~:~e~;y ::i:~:::;uire.d .contri~uUon. for.th,_s .plan .yea.r (i.nclude. a.ny.prior year.acc~m-ulate.d fundin~ 1 •• I 

b Enter the amount contributed by the employer to the plan for this plan year t-· _6_b-+· __________ _ 

c Subtract the amount in line 6b from the amount in line 6a. Enter the result 

(enter a minus sign to the left of a negative amount) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~6_c~-----------

If you completed line 6c, skip lines 8 and 9. 

7 Will the minimum funding amount reported on line 6c be met by the funding deadline? .... D Yes D No • N/A 

8 If a change in actuarial cost method was made for this plan year pursuant to a revenue procedure or other 

authority providing automatic approval for the change or a class ruling letter, does the plan sponsor or plan 

administrator agree with the change? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D Yes D No N/A 

I Part Ill I Amendments 

9 If this is a defined benefit pension plan, were any amendments adopted during this plan 

year that increased or decreased the value of benefits? If yes, check the appropriate 

box. If no, check the "No" box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D Increase D Decrease • Both No 

Part IV ESOPs (see instructions). If this is not a plan described under Section 409(a) or 4975(e)(7) of the Internal Revenue Code, skip this Part. 

10 Were unallocated employer securities or proceeds from the sale of unallocated securities used to repay any exempt loan? D Yes • No 

11 a Does the ESOP hold any preferred stock? D Yes 

b If the ESOP has an outstanding exempt loan with the employer as lender, is such loan part of a "back-to-back" loan? 

(See instructions for definition of "back-to-back" loan.) ................................ . D Yes D No 

12 Does the ESOP hold any stock that is not readily tradable on an established securities market? D Yes D No 

For Paperwork Reduction Act Notice, see the Instructions for Form 5500. Schedule R (Form 5500) 2017 
CPTF-DV000689

p

(

) 

(

)

) 

( 1) Contribution rate (in dollars and cents) (2) Base unit measure:O Hourly O Weekly I I Unit of production O Other (specify): 

a Name of contributing employer 

b EIN C Dollar amount contributed by employer 

d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box 0 

and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year 

e Contribution rate information (If more than one rate applies, check this boxO and see instructions regarding required attachment. Otherwise, 

complete lines 13e(1) and 13e(2).) 

(1) Contribution rate (in dollars and cents) (2) Base unit measure:O Hourly O Weekly I I Unit of production O Other (specify): 

a Name of contributing employer 

b EIN c Dollar amount contributed by employer 

d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box 

and see instruction; regarding required attachment. Otherwise, enter the applicable date.) Month Day Year • 

e Contribution rate inform8tipn (If more than one rate applies, check this boxO and see instructions regarding required attachment. Otherwise, 

complete lines 13e(1) and13e(2).) 

( 1) Contribution rate Jin dollars and cents) (2) Base unit measure:O Hourly O Weekly I I Unit of production O Other (specify): 

a Name of contributing employer 

b EIN C Dollar amount contributed by employer 

d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box 0 

and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year 

e Contribution rate information (If more than one rate applies, check this boxO and see instructions regarding required attachment. Otherwise, 

complete lines 13e(1) and 13e(2).) 

(1) Contribution rate (in dollars and cents) 

(2) Base unit measure:O Hourly O Weekly ! ! Unit of production O Other (specify): 

a Name of contributing employer 

b EIN C Dollar amount contributed by employer 

d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box 0 

and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year 

e Contribution rate information (If more than one rate applies, check this boxO and see instructions regarding required attachment. Otherwise, 

complete lines 13e(1) and 13e(2).) 

(1) Contribution rate (in dollars and cents) (2) Base unit measure:O Hourly O Weekly I I Unit of production O Other (specify): 

a Name of contributing employer 

b EIN c Dollar amount contributed by employer 

d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box 0 

and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month Day Year 

e Contribution rate information (If more than one rate applies, check this boxO and see instructions regarding required attachment. Otherwise, 

complete lines 13e(1) and 13e(2).) 

(1) Contribution rate (in dollars and cents) (2) Base unit measure:O Hourly D Weekly D Unit of production D Other (specify): 
CPTF-DV000690

p

. ... . .... 

16 Information with respect to any employers who withdrew from the plan during the preceding plan year: 

a Enter the number of employers who withdrew during the preceding plan year ........................... 16a .. , ... 

b If line 16a is greater than 0, enter the aggregate amount of withdrawal liability assessed or estimated to be 16b 

assessed aaainst such withdrawn emplovers ..... . . •'• ~'. ...... ' ··········•········· .. ········•·•·············· 

17 If assets and liabilities from another plan have been transferred to or merged with this plan during the plan year, check box and see instructions regarding 

supplemental information to be included as an attachment. .. . . . .. .. .. . .. .. .. . .. .. .. . .. .. . . .. .. .. .. .. .. ..................................... .. 

Part VI Additional Information for Single-Employer and Multiemployer Defined Benefit Pension Plans 

18 If any liabilities to participants or their beneficiaries under lhe plan ~s, of the end of the plan year consist (in whole or in part) of liabilities to such participants 

and beneficiaries under two or more pension plans as of immediately before such plan year, check box and see instructions regarding supplemental 

19 

information to be included as an attachment ..... : . .. .. .. . . . .. . .. .. . .. .. . . .. .. . .. ....... .. 

If the total number of particip,ants is 1,000 or more, complete lines (a) through (c) 

a Enter the percentage of plan assets held as: 

Stock: 2 7 . 3 % Investment-Grade Debt: 12 . 6 % High-Yield Debt: 1 . 8 % Real Estate: 20. 7 % Other: 

• 

........ • 

37. 6% 

b Provide the .a.·vera~duration o ..f the combined investment-grade and t;!!.9,h-yield debt: 

0 0-3 years, LJ 3-6 years 6-9 years O 9-12 years LJ 12-15 years O 15-18 years 018-21 years O 21 years or more 

c What duration measure Was.used to calculate line 19(b)? 0 Effective duration O Macaulay duration Modified duration O Other (specify): 
SCHEDULE MB 

(Form 5500) 

Department of the Treasury 

Internal Revenue Service 

Department of Labor 

Employee Benefits Security Administration 

Pension Benefit Guaranty Corporation 

Multiemployer Defined Benefit Plan and Certain 

Money Purchase Plan Actuarial Information 

This schedule is required to be filed under section 104 of the Employee 

Retirement Income Security Act of 1974 (ERISA) and section 6059 of the 

Internal Revenue Code (the Code). 

► File as an attachment to Form 5500 or 5500-SF. 

For calendar plan year 2017 or fiscal plan year beginning 0 5 / 0 1 / 2 0 1 7 and ending 

► Round off amounts to nearest dollar. 

► Caution: A penalty of $1,000 will be assessed for late filing of this report unless reasonable cause is established. 

OMBNo.1210 0110 

2017 

This Form is Open to Public 

Inspection 

04/30/2018 

A Name of plan 8 Three digit 

Carpenters Pension Trust Fund Detroit and Vicinity 1--�p I lan number�(PN�

) ___ ►_� __ 00l _

C Plan sponsor's name as shown on line 2a of Form 5500 or 5500 SF D Employer Identification Number (EIN) 

Trustees of Carpenters Pension Trust Fund Detroit and Vicin'ty38 6242188 

E Type of plan: (1) � Multiemployer Defined Benefit (2) D Money Purchase (see instructions) 

1 a Enter the valuation date: Month _ _5 _ _ Day 1 Year 201 7 

b Assets 

(1) Current value of assets ...................................................................................................................... 1b(1) 734,239,795 

(2) Actuarial value of assets for funding standard account... .................................................................... 1b(2) 781,238,944 

C (1) Accrued liability for plan using immediate gain methods .................................................................... 1c(1) 2,199,043,180 

(2) Information for plans using spread gain methods: 

(a) Unfunded liability for methods with bases ...................................................................................... 1c(2)(a) 

(b) Accrued liability under entry age normal method ............................................................................ 1c(2)(b) 

(c} Normal cost under entry age normal method ................................................................................. 1c(2)(c) 

(3) Accrued liability under unit credit cost method ..................................................................................... 1c(3) 2,199,043,180 

d Information on current liabilities of the plan: 

(1) Amount excluded from current liability attributable to pre participation service (see instructions) ......... 1d(1) 

(2) "RPA '94" information:

(a) Current liability ............................................................................................................................... 1d(2)(a) 3,775,320,326 

(b) Expected increase in current liability due to benefits accruing during the plan year ........................ 1d(2)(b) 34,343,276 

(c) Expected release from "RPA '94" current liability for the plan year. ................................................ 1d(2)(c) 151,002,311 

(3) Expected plan disbursements for the plan year .................................................................................... 1d(3) 153,305,096 

Statement by Enrolled Actuary 

To the best of my knowledge, the information supplied in this schedule and accompanying schedules, statements and attachments, if any, is complete and accurate. Each prescribed assumption was applied 

in accordance with applicable law and regulations. In my opinion, each other assumption is reasonable (taking into account the experience of the plan and reasonable expectations) and such other 

assumptions, in combinati , offer my best estimate of anticipated experience under the plan. 

SIGN 

HERE 

Andrew T. Smith, FCA, 

Type or print name of actuary 

United Actuarial Services, Inc. 

Firm name 

11590 N. Meridian Street, Suite 610 

Carmel 

Address of the firm 

IN 46032 4529 

17 05374

Most recent enrollment number 

(317)580 8675

Telephone number (including area code) 

If the actuary has not fully reflected any regulation or ruling promulgated under the statute in completing this schedule, check the box and see 

instructions □ 

For Paperwork Reduction Act Notice, see the Instructions for Form 5500 or 5500-SF. Schedule MB (Form 5500) 2017 

v. 170203 

CPTF-DV000691

l 

ASA, EA 
CPTF-DV000692

Schedule MB (Form 5500) 2017 Page2-D 

2 Operational information as of beginning of this plan year: 

a Current value of assets (see instructions) .............................................................................................................. I 2a 7 3 4 , 2 3 9 , 7 9 5 .--------~--+-------~--~--

b "RPA '94" current liability/participant count breakdown: 1--.,_(1..,_)_N_u_m_b_e_r_o_f .,_p_a_rf_1c..,_ip_a_n_ts_+-__ ..,_(2-')_C_u_r_re_n_t_li_ab_i_lit.,_y __ _ 

(1) For retired participants and beneficiaries receiving payment................................... 1----------7-'-,_3_1_4+-____ 2~,_2_0_4..,_,_9_1_0-'-, _5_0_6_ 

(2) For terminated vested participants ......................................................................... . 6,465 593,844,625 

(3) For active participants: 

(a) Non-vested benefits ......................................................................................... . 18,263,141 

(b) Vested benefits ................................................................................................ . 958 302 054 

(c) Total active ...................................................................................................... . 5 208 976 565 195 

(4) Total ....................................................................................................................... '--------=l,8'-'-"9'""8""'7+----=3~7~7=5~3=2=0~32==6 

C ~;~cee~:;~:~'.~~~. '.~~~.'~'.~~. '.'.~~. ~'.~.i~'.~~. '.i.~·~· ~~. ~:. .'.i.~·~· .~.~.'. ~'..' .. ~~'.~~~. ~~~'..'.~ .. I.~~~.:~.~.~ .. ~.~.~.' .. ~.~'.~~ .. ~~~~ ................ I 2c 19.45% 

3 Contributions made to the plan for the plan year by employer(s) and employees: 

(a) Date (b) Amount paid by (c) Amount paid by (a) Date (b) Amount paid by c) Amount paid by 

(MM-DD-YYYY) employer(s) employees (MM-DD-YYYY) employer(s) employees 

04/30/2018 123 147,221 

Totals • I 3(b) 123,147,221 3(c> I 0 

4 Information on plan status: 

a Funded percentage for monitoring plan's status (line 1 b(2) divided by line 1c(3)) ................................................ 1 4a 35.5 % 

b ~~~~ i~~~}~~nt~~~t= t~.·~ ~'.~:~~ .'.~~~.'.~~'.r.~.~'.i.~~~.'.~.~ .~'.:~~~~.~~t.~f .. ~~.~:.~.~_i~~.~~i~.~~~~.~:.~'.~.~:~.~.:~'.~~!· If '-I _

4

_b__,'--_c __________ _ 

C Is the plan making the scheduled progress under any applicable funding improvement or rehabilitation plan? ............................................................. ~ Yes D No 

d If the plan is in critical status or critical and declining status, were any benefits reduced (see instructions)? ................................................. • Yes ~ No 

e If lined is "Yes," enter the reduction in liability resulting from the reduction in benefits (see instructions), 

measured as of the valuation date ..... ....... ................... ............ .. . ......... ............... ....... .. .. .. ......................... ....... ... 4e 

f If the rehabilitation plan projects emergence from critical status or critical and declining status, enter the plan 

year in which it is projected to emerge. 

::~::i:~a:~~a;~oenc~l~:r: .~~~.~~ ~~ .. ~~'.~~~~'.Ii.~·~· :.~.~~i·~·I·~· .i~~~'.~~·~·~·~'.. ~~~~'..~.~~. :.'.~~. :,~~~. '.~ .~.~.i~~. '.~~~l·~·~·~~gjs 

4f 

5 Actuarial cost method used as the basis for this plan year's funding standard account computations (check all that apply): 

a D Attained age normal b • Entry age normal C ~ Accrued benefit (unit credit) 

e D Frozen initial liability f • Individual level premium g • Individual aggregate 

D Other (specify): 

2035 

d D Aggregate 

h • Shortfall 

j If box his checked, enter period of use of shortfall method .................................................................................. l'--_5'-j--'-------------

k Has a change been made in funding method for this plan year? ................................................................................................................... • Yes ~ No 

If line k is "Yes," was the change made pursuant to Revenue Procedure 2000-40 or other automatic approval? ........................................... • Yes D No 

m ~~~r~~i~~,~~!s~·~=~~~i~:flui~~,i~~,~~~~~dt~·~·~·~·t·~··:~.~~.~~.~~~;.~:.~:.'.~~.'.~'.'.~.~ .. 1.~~~~ .. :i.~.~'.~i.d·~·~·l·~'..~'.~~.~'. ............. l~s-m_~I-------------
CPTF-DV000693

Schedule MB (Form 5500) 2017 Page3-0 

6 Checklist of certain actuarial assumptions: 

a Interest rate for "RPA '94" current liability ..................................................................................................................................... j 6a I 3.05 % 

Pre-retirement Post-retirement 

b Rates specified in insurance or annuity contracts .................................... • Yes • No ~ N/A • Yes • No ~ N/A 

C Mortality table code for valuation purposes: 

(1) Males ................................................................................... 6c(1) 13 MP 13 FP 

(2) Females ............................................................................... 6c(2) 13 MP 13 FP 

d Valuation liability interest rate ..................................................... 6d 7. 50 % 7.50 % 

e Expense loading ......................................................................... 6e 22. 7% • N/A %1 ~ N/A 

f Salary scale ................................................................................ 6f % ~ N/A 

g Estimated investment return on actuarial value of assets for year ending on the valuation date .................... 6g 1.8 % 

h Estimated investment return on current value of assets for year ending on the valuation date ...................... 6h 11.1 % 

7 New amortization bases established in the current plan year· 

(1) Type of base (2) Initial balance (3) Amortization Charge/Credit 

1 62,924,769 6,631,231 

4 46,472,895 4,897,475 

8 Miscellaneous information: 

a If a waiver of a funding deficiency has been approved for this plan year, enter the date (MM-DD-YYYY) of Sa 

the ruling letter granting the approval ........................................................................................................... . 

b(1) Is the plan required to provide a projection of expected benefit payments? (See the instructions.) If "Yes," 

attach a schedule ..................................................................................................................................................... . ~ Yes • No 

b(2} Is the plan required to provide a Schedule of Active Participant Data? (See the instructions.) If "Yes," attach a 

schedule .................................................................................................................................................................. . ~ Yes • No 

C Are any of the plan's amortization bases operating under an extension of time under section 412(e) (as in effect 

prior to 2008) or section 431 (d} of the Code?················································································································~------------ ~ Yes • No 

d If line c is "Yes," provide the following additional information: 

(1) Was an extension granted automatic approval under section 431 (d)(1) of the Code?·····························~-----------="------'=---

(2) If line 8d(1) is "Yes," enter the number of years by which the amortization period was extended ............ LI _s_d_(_2_)_,_ _____________ _ 

~ Yes D No 

5 

(3) Was an extension approved by the Internal Revenue Service under section 412(e) (as in effect prior 

to 2008) or 431 (d)(2) of the Code?··········································································································~--~------------

(4) i~~i ~~i~~\3~~sn~~~~,r ~~t;~~r~~:~~~f(~D~.~~ .. ~.~.~~·i·~~.'.~~.~~.~~'.~.~~'.~~.:.~~'.~.~ .. ~~~.~~~·~·~·~·~··(·~·~~ ............ 11--S-d_(_4_)-+--------------

(5) If line 8d(3) is "Yes," enter the date of the ruling letter approving the extension ······································1-. ..:..S..:..d-'-'(5-'-)-'--------------

D Yes~ No 

(6) If line 8d(3) is "Yes," is the amortization base eligible for amortization using interest rates applicable under 

section 6621 (b) of the Code for years beginning after 2007? D Yes D No ·······························"················································· 

e If box 5h is checked or line Be is "Yes," enter the difference between the minimum required contribution 

for the year and the minimum that would have been required without using the shortfall method or Se 

extending the amortization base(s) ............................................................................................................... 309,423,521 

9 Funding standard account statement for this plan year: 

Charges to funding standard account: 

a Prior year funding deficiency, if any .............................................................................................................. 9a 258,325,344 

b Employer's normal cost for plan year as of valuation date ............................................................................. 9b 18,256,173 

C Amortization charges as of valuation date: Outstanding balance 

(1) All bases except funding waivers and certain bases for which the 9c(1) amortization period has been extended ............................................ 1,707,949,686 215,348,678 

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

(3) Certain bases for which the amortization period has been 9c(3) extended .......................................................................................... 0 0 

d Interest as applicable on lines 9a, 9b, and 9c ................................................................................................ 9d 36,894,765 

e Total charges. Add lines 9a through 9d ......................................................................................................... 9e 528,824,960 
CPTF-DV000694

Schedule MB (Form 5500) 2017 Page4 

Credits to funding standard account: 

f Prior year credit balance, if any..................................................................................................................... 9f O 1-------1---------------

9 Employer contributions. Total from column (b) of line 3 .......................................... ~ .. _ .._ ... _ .. _ .._ .._ ... _ .. _ .. _ .._ .. _ ... _ .. _ .._ .._···_··--1· _9_9_~1---------1_2_3_;,_1_4_7-'-,_2_2_1_ 

Outstanding balance 

h Amortization credits as of valuation date ................................................ I 9h 5 4 8 , 4 7 O , 7 9 4 6 8 , 5 9 9, 1 4 9 '-----'-------'----'-------l-------------''-----'----

I n t ere st as applicable to end of plan year on lines 9f, 9g, and 9h .................................................................. ,___9_i _.,__ ________ 9---'-, _7_6_2_,_9_6_1 

Full funding limitation (FFL) and credits: 

(1) ERISA FFL (accrued liability FFL) .......................................................... \ 9j(1) \ 1,594,294,854 

(2) "RPA '94" override (90% current liability FFL) ........................................ 1 9j(2) I 2, 716, 8 7 7, 2 31 L------'-----'-----'----'---l---------------

( 3) FFL credit.............................................................................................................................................. 9j(3) 0 1-----+-------------

k (1) Waived funding deficiency..................................................................................................................... 9k(1) O 1-----+-------------

( 2) Other credits .... . . .. . ..... .. . . ... . ... . ....... ........... ...... .......... ..... ..... ... . . . ....... ............ .. . . . . . .... .. .. . . ... ............ .......... 9k(2) 0 1-----+-------------

T o ta I credits. Add lines 9fthrough 9i, 9j(3), 9k(1), and 9k(2) .......................................................................... 1--_9_1_-1-______ 2_0_1_,'-5_0_9_,_3_3_1 

m Credit balance: If line 91 is greater than line 9e, enter the difference ............................................................ . 1-----+------------- 9m 

n Funding deficiency: If line 9e is greater than line 91, enter the difference....................................................... 9n 3 2 7 , 315 , 6 2 9 L------'------------'-----

90 Current year's accumulated reconciliation account: 

(1) Due to waived funding deficiency accumulated prior to the 2017 plan year ....................................... 9o(1) 0 

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

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

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

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

10 Contribution necessary to avoid an accumulated funding deficiency. (See instructions.) ........................... 10 327,315,629 

11 Has a change been made in the actuarial assumptions for the current plan year? If "Yes," see instructions ................ .. ~ Yes O No 
CPTF-DV000695

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 3 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line 3 - Employer Contributions 

The employer contributions shown in line 3 of the Schedule MB were contributed or 

accrued throughout the plan year for work performed during the plan year. 
CPTF-DV000696

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 4 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line 4b - Illustration Supporting Actuarial Certification of 

Status 

The plan was certified in Critical status as of May 1, 2017. Refer to the attached PPA 

certification. This result is based on a funded ratio of 36.4% and an existing funding 

deficiency (recognizing amortization extensions), which is projected to remain negative 

(recognizing amortization extensions) at the end of the 2017-18 plan year as shown in the 

table below: 

Asof 

4/30/2017 

4/30/2018 

Credit Balance/ 

Fundin Deficienc 

241,275,000 

291,240,000 

Schedule MB, line 4c - Documentation Regarding Progress Under Funding 

Improvement or Rehabilitation Plan 

The Plan has made the scheduled progress as of May 1, 2018 as outlined in the 2014 

updated rehabilitation plan. This is based on the data, plan provisions, assumptions and 

methods as described in the attached certification dated July 27, 2018. Projections 

indicate that the Plan is not projected to emerge from Critical at the end of the rehabilitation 

plan period. This rehabilitation plan, however, includes the use of the "exhaustion of all 

reasonable measures" clause of IRC 432(e)(3)(A)(ii). Therefore, we interpret scheduled 

progress for this Plan to mean continued use of all reasonable measures to forestall 

insolvency. Due to competitive pressures, the trustees do not believe any further 

contribution rate increase or benefit changes could be supported at this time without 

having a net negative impact on the Fund. The trustees continue to monitor this situation 

annually. 
CPTF-DV000697

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 4 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line 4f - Assumptions Used to Project Plan Year in which 

Insolvency is Expected 

Assumed return on fund 7.72% for the plan year ending 4/30/2018 

assets 6.60% for the next 1 0 years (5/1/2018-4/30/2028) 

7.50% thereafter 

Future total hours worked 9,285,188 for the plan year ending 2018 

8,500,000 for the plan year ending 2019 

8,250,000 for the plan year ending 2020 

8,000,000 for the plan year ending 2021 

7,000,000 thereafter 

Contribution rate None 

increases 

Plan changes None 
CPTF-DV000698

July 28, 2017 

Board of Trustees 

United Actuarial 

Services, Inc. 

Actuaries and Consultants 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

700 Tower Drive, Suite 300 

Troy, MI 48098-2808 

Re: 2017 Actuarial Certification Under the Pension Protection Act 

Dear Trustees: 

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

IRC section 432, with_ respect to the funded status of the Carpenters Pension Trust Fund - Detroit 

and Vicinity Pension Plan. 

Identifying Information 

Plan Name: Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

BIN/Plan#: 38-6242188/001 

Plan year of Certification: year beginning May 1, 2017 

Plan Sponsor: Board of Trustees of Carpenters Pension Trust Fund - Detroit and Vicinity 

Pension Plan 

Sponsor Address: 700 Tower Drive, Suite 300, Troy, MI 48098-2808 

Sponsor Telephone: 1-800-572-2525 

Enrolled Actuary Name: Andrew T. Smith 

Enrollment Number: 17-05374 

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

Actuary Telephone: (317) 580-8675 

Certification of Plan Status 

I certify that the above-named Plan is in the following status(es) as of May 1, 2017 (all that apply 

are checked): 

Safe--Neither Endangered nor Critical Status 

Safe Due to Special Rule 

Endangered Status 

Seriously Endangered Status 

Projected to be in Critical Status within 5 years ----

l 1590 North Meridian Street, Suite 61 0 • Carmel, Indiana 46032-4529 • /317) 580-8670 • Fax /317) 580-8651 

~" 
CPTF-DV000699

United Actuarial Services, Inc. 

Actuaries and Consultants 

Board of Trustees -2-

Critical Status X 

Critical and Declining Status 

This certification is based on the following results: 

• Projected funded ratio as of May 1, 2017: 36.4% 

• Previously emerged from critical status using IRC 

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

rule?: No 

July 28, 2017 

• First projected deficiency (with extension): Existing deficiency, FSA projected 

to remain negative as of April 30, 

2018 

• At least 8 years of benefit payments in plan 

assets?: Yes 

Certification of Scheduled Progress 

I certify that the above-named Plan has made scheduled progress as of May 1, 2017 as outlined 

in the 2014 updated rehabilitation plan. The Plan is not projected to emerge from Critical status 

by the end of the rehabilitation plan period as specified in the updated rehabilitation plan. This 

rehabilitation plan, however, includes the use of the "exhaustion of all reasonable measures" 

clause of IRC 432(e)(3)(A)(ii). Therefore, we interpret scheduled progress for this Plan to mean 

continued use of all reasonable measures to emerge at the earliest date possible or to forestall 

insolvency. 

Basis for Result 

The certifications utilize the assumptions, methods, plan provisions and demographic data as 

disclosed in the May 1, 2016 actuarial valuation report with the following exceptions: 

• Based on the April 30, 2017 unaudited financial statements provided by the plan 

administrator, the asset return for the 2016-17 plan year is assumed to be 9.53%. We also 

updated the contributions, benefit payments, and expenses for the 2016-17 plan year 

based on these financial statements. 

• No adjustments were made to the contribution rate assumption. 
CPTF DV000700

United Actuarial Services, Inc. 

Actuaries and Consultants 

Board of Trustees -3- July 28, 2017 

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

activity, the following hours were assumed: 7,500,000 for the plan year beginning in 

2017 and for each plan year thereafter. For the 2016-17 plan year, our projections used 

actual hours of 7,324,282. 

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

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

certifications are intended to be in good faith compliance with the necessary disclosures for 

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

answer questions regarding these certifications. 

Sincerely, 

Andrew T. Smith, FCA, ASA, EA 

President 

Enrollment Number: 17-05374 

Date of Signature: 7/28/2017 

cc: Secretary of the Treasury 

Ms. Joan Janks, Plan Manager 

Ms. Linda Olsson, Plan Associate 

Mr. John Tesija, Fund Counsel 

Mr. Christopher Scott, Auditor 

m:\docs\det carp\db 28369\valuations\20170501\ppa\2017050 I ppa cert.docx 
CPTF-DV000701

July 27, 2018 

Board of Trustees 

United Actuarial 

Services, Inc. 

Actuaries and Consultants 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

700 Tower Drive, Suite 300 

Troy, MI 48098-2808 

Re: 2018 Actuarial Certification Under the Pension Protection Act 

Dear Trustees: 

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

section 432, with respect to the funded status of the Carpenters Pension Trust Fund - Detroit and 

Vicinity Pension Plan. 

Identifying Information 

Plan Name: Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

EIN/Plan #: 38-6242188/001 

Plan year of Certification: year beginning May 1, 2018 

Plan Sponsor: Board of Trustees of Carpenters Pension Trust Fund - Detroit and Vicinity Pension 

Plan 

Sponsor Address: 700 Tower Drive, Suite 300, Troy, MI 48098-2808 

Sponsor Telephone: 1-800-572-2525 

Enrolled Actuary Name: Angela L. Jeffries 

Enrollment Number: 17-08511 

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

Actuary Telephone: (317) 580-8668 

Certification of Plan Status 

I certify that the above-named Plan is in the following status as of May 1, 2018 (all that apply are 

checked): 

Safe--Neither Endangered nor Critical Status 

Safe--Neither Endangered nor Critical Status 

Due to Special Rule 

Endangered Status 

Seriously Endangered Status 

Projected to be in Critical Status within 5 years 

Critical Status 

Critical and Declining Status X 

11590 North Meridian Street, Suite 610 • Carmel, Indiana 46032-4529 • (317) 580-8670 • Fax (317) 580-8651 
CPTF-DV000702

Board of Trustees -2- July 27, 2018 

These certifications are based on the following results: 

• Projected funded ratio as of May 1, 2018: 34.5% 

• Previously emerged from critical status using IRC 

Section 432( e )( 4)(B)(ii)(I) special emergence No 

rule?: 

• First projected deficiency (with extension): Existing deficiency, FSA projected 

to remain negative as of April 30, 

2019 

• At least 8 years of benefit payments in plan Yes 

assets?: 

• Plan year of projected insolvency: 2035 

• Ratio of inactive to active participants: 2.65 inactive/active 

Certification of Scheduled Progress 

I certify that the above-named Plan has made scheduled progress as of May 1, 2018 as outlined in 

the 2014 updated rehabilitation plan. The Plan is not projected to emerge from Critical status by 

the end of the rehabilitation plan period as specified in the updated rehabilitation plan. This 

rehabilitation plan, however, includes the use of the "exhaustion of all reasonable measures" clause 

of IRC 432( e )(3)(A)(ii). Therefore, we interpret scheduled progress for this Plan to mean 

continued use of all reasonable measures to emerge at the earliest date possible or to forestall 

insolvency. 

Basis for Result 

The certifications utilize the assumptions, methods, plan provisions and demographic data as 

disclosed in the May 1, 2017 actuarial valuation report with the following exceptions: 

• Based on the April 30, 2018 unaudited financial statements provided by the plan 

administrator, the asset return for the 2017-18 plan year is assumed to be 7.72%. We also 

updated the contributions, benefit payments, and expenses for the 2017-18 plan year based 

on these financial statements. 

• For the period May 1, 2018 through April 30, 2028, plan assets were assumed to return 

6.60% per year, with 7.50% per year assumed thereafter. 

• No adjustments were made to the contribution rate assumption. 

United Actuarial Services, Inc. 
CPTF-DV000703

Board of Trustees -3- July 27, 2018 

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

activity, the following hours were assumed: 8,500,000 for the plan year beginning in 2018, 

8,250,000 for the plan year beginning in 2019, 8,000,000 for the plan year beginning in 

2020, and 7,000,000 for each plan year thereafter. For the 2017-2018 plan year, our 

projections used actual hours of 9,285,188. 

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

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

certifications are intended to be in good faith compliance with the necessary disclosures for 

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

answer questions regarding these certifications. 

Sincerely, 

Angela L. Jeffries, EA, MAAA 

Consulting Actuary 

Enrollment Number: 17-08511 

Date of Signature: 7/27/2018 

cc: Secretary of the Treasury 

Mr. Andrew Smith, UAS 

Ms. Joan Janks, Plan Manager 

Ms. Linda Olsson, Plan Associate 

Mr. John Tesija, Fund Counsel 

Mr. Christopher Scott, Auditor 

Ms. Carly Lewandowski, Auditor 

m:\docs\det carp\db 28369\valuations\20180501\ppa\20180501 ppa cert.docx 

United Actuarial Services, Inc. 
CPTF-DV000704

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 6 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line 6 - Summary of Plan Provisions 

Attached is a summary of the plan provisions valued. The plan provisions are the same 

as those valued in the preceding year. 

Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods 

Attached is a summary of the actuarial assumptions and methods used to perform the 

most recent valuation. 
CPTF-DV000705

Schedule MB, line 6 - Summary of Plan Provisions 

Carpenters Pension Trust Fund-Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

PLAN HISTORY 

Origins/Purpose 

The Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan was established 

effective May 1, 1957 as a result of collective bargaining agreements between the 

Carpenters' District Council of Detroit and Vicinity and various employer associations and 

other employers working within the jurisdiction of the Carpenters' District Council. 

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management. 

Effective May 1, 2002, the Interior Systems Local 1045 Resilient Pension Fund Pension 

Plan was merged with Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan. 

Employer Contributions 

The Pension Plan is financed entirely by contributions from the employers as specified in 

the applicable Collective Bargaining Agreements. Contributions began May 1, 1957 at the 

rate of 3% of wages. The rate has been increased through the years. 

Reciprocity 

The Trustees adopted a "Money Follows the Man" Reciprocity Agreement with other 

signatory funds within the Third District of the United Brotherhood of Carpenters and 

Joiners of America (AFL-CIO). Also, the Trustees became a party of the lnternational's 

Reciprocal Agreement for Carpenters Pension Funds, which includes both the Pro-Rata 

and Money Follows the Man reciprocity types. 

United Actuarial Services, Inc. Page A-1 
CPTF-DV000706

Schedule MB~ line 6 - Summary of Plan Provisions 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

SUMMARY OF PLAN PROVISIONS 

Plan year The 12-month period beginning May 1 and ending the 

following April 30 

Vesting/credit year A participant shall accrue 1 vesting/credit year for each 

plan year on and after May 1, 1957, during which the 

participant is credited with 500 or more hours of service. 

500 hours of service is equivalent to 435 hours of work. 

Break in service Plan year with less than 500 hours of service (435 hours 

of work) 

Inactive participant No hours of service during 2 consecutive plan years 

Normal retirement benefit 

Eligibility Age 65 or 5th anniversary of participation, if later 

Monthly amount • 4.30% of employer contributions for work performed 

United Actuarial Services, Inc. 

prior to May 1 , 2004, plus 

• 3.00% of employer contributions for work performed 

May 1, 2004 - April 30, 2007, plus 

• 1.00% of employer contributions for work performed on 

and after May 1, 2007. 

Payable for Life. 

Page A-2 
CPTF-DV000707

Schedule MB, line 6 - Summary of Plan Provisions 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

SUMMARY OF PLAN PROVISIONS (CONT.} 

Contribution "discounting" Contributions that are "discounted" according to the 

following schedule are not considered in determining 

benefits. 

United Actuarial Services, Inc. 

• Contributions for work performed from June 1, 2006 

through May 31, 2007 are generally "discounted" by 

22% to 23%. 

• Contributions for work performed from June 1, 2007 

through May 31, 2008 are generally "discounted" by 

16% to 17%. Some contracts are discounted by 35%. 

• Contributions for work performed from June 1, 2008 

through May 31, 2009 are generally "discounted" by 

23% to 23.5%. The Floorlayers contract is discounted 

at 28% and the Millmen and other contracts are 

discounted by 45%. 

• Contributions for work performed from June 1, 2009 

through May 31, 201 0 are generally "discounted" by 

37% to 37.5%. The Floorlayers contract is discounted 

at 42% and the Millmen and other contracts are 

discounted by 45%. 

• Contributions for work performed on and after June 1, 

2010 are generally "discounted" by 45% to 46%. The 

Floorlayers contract is discounted at 51 % and the 

Millmen and other contracts are discounted by 50%. 

• Contributions for work performed on or after June 1, 

2011 are generally "discounted" by 50% to 53%. The 

Floorlayers contract is discounted at 56% and the 

Millmen and other contracts are discounted by 50%. 

• Contributions for work performed on and after June 1, 

2012 are generally "discounted" at an average rate of 

58%. 

• Contributions for work performed on and after June 1, 

2013 are generally "discounted" at an average rate of 

63%. 

Page A-3 
CPTF-DV000708

Schedule MB, line 6 - Summary of Plan Provisions 

Carpenters Pension Trust Fund-Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

Early retirement benefit 

Eligibility 

Monthly amount 

Eligibility 

Monthly amount 

Eligibility 

Monthly amount 

Vested benefit 

Eligibility 

Monthly amount 

United Actuarial Services, Inc. 

SUMMARY OF PLAN PROVISIONS (CONT.) 

Age 55 and 1 0 credit years, has met Applicable Index 

Requirement, worked at least 435 hours in the two years 

prior to retirement. Applicable Index Requirement is 80 

points if participant had at least 76 points as of May 1, 201 0; 

otherwise 85 points. 

Normal reduced by 1 /3rd of 1 % for each month under age 62 

(unless eligible for grandfathered exception - see below). 

Payable for life. 

Age 55 and 1 0 credit years, has not met Applicable Index 

Requirement, worked at least 435 hours in the two years 

prior to retirement. 

Normal reduced by 5/9% for each month under age 62 

(unless eligible for grandfathered exception - see below). 

Payable for life. 

Grandfathered exception: Active at retirement, meets the 

Applicable Index Requirement on or before August 1, 2015 

Early retirement benefit will not be less than normal reduced 

by 5%. Payable for life. 

Three vesting years, did not work at least 435 hours in the 

two years prior to retirement 

20% of normal after 3 vesting years increasing 20% per year 

to 100% at 7 vesting years. Payable for life commencing at 

age 65, or reduced amount (5/9% reduction for each month 

by which commencement precedes age 65) commencing at 

early retirement age, if eligible. 

Page A-4 
CPTF-DV000709

Schedule MB, line 6 - Summary of Plan Provisions 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

Total and permanent 

disability benefit 

Eligibility 

Monthly amount 

Eligibility 

Monthly amount 

Pre-retirement surviving 

spouse benefit 

Eligibility 

Monthly or lump sum 

amount 

Optional forms 

United Actuarial Services, Inc. 

SUMMARY OF PLAN PROVISIONS (CONT.) 

Under age 62, 5 credit years, disability award from the 

Social Security Administration. 

75% of vested accrued normal or $260 times vested 

percentage subject to the following cap: 

• Capped at $525 for credit years 5-9 

• Capped at $625 for credit years 10-15 

• Capped at $725 for credit years 16-19 

• Capped at $1,050 for credit years 20-24 

• Capped at $1,350 for 25 or more credit years 

Payable until eligible for normal, early, recovery or death. 

Under age 62, less than 5 credit years, disability award from 

the Social Security Administration. 

Lump sum payment equal to actuarial equivalent of vested 

accrued benefit. 

Death of married vested participant 

50% of participant's joint and 50% survivor. Payable to 

spouse for life commencing at participant's earliest 

retirement age. 

• Joint and 50% survivor with pop-up 

• Joint and 75% survivor with pop-up 

• Joint and 100% survivor with pop-up 

• Life-ten years certain 

Page A-5 
CPTF-DV000710

Scheduie MB, line 6 - Statement of Actuarial Assumptions/Methods 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

ACTUARIAL ASSUMPTIONS 

The following assumptions are used throughout this report except as specifically noted 

herein. 

Valuation date 

Interest rates 

ER/SA rate of return 

used to value liabilities 

Current liability 

Operational expenses 

Load for pop-up feature 

Mortality 

Assumed plan mortality 

Current liability 

United Actuarial Services, Inc. 

May i, 20"17 

7.5% per year net of investment expenses. 

3.05% (in accordance with Section 4 i 2(1)(7)(C) of the 

Internal Revenue Code) 

$4,300,000 

Liabilities for non-retired participants' benefits to be paid 

after retirement increased 0.6%; liabilities for retired 

participants receiving a joint and survivor form of benefit 

increased by i. 7%. 

i 00% of the RP-20"14 Blue Collar Mortality Tables for 

employees and healthy annuitants adjusted backward to 

2006 with the MP-20"14 projection scale and projected 

forward using the MP-20"17 projection scale. 

Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males and 

females as required by Section 43"1 (c)(6) of the Internal 

Revenue Code. 

Page B-1 
CPTF-DV000711

Schedule MB, line 6-Statement of Actuarial Assumptions/Methods 

Carpenters Pension Trust Fund - Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

Special withdrawal rates 

for first 5 years of 

employment 

Withdrawal 

Disability 

United Actuarial Services, Inc. 

ACTUARIAL ASSUMPTIONS {CONT.} 

Year of 

Employment 

First 

Second 

Third 

Fourth 

Fifth 

Annual 

Withdrawal 

Rate 

.60 

.60 

.30 

.15 

.15 

T-7 Turnover Table from The Actuary's Pension Handbook 

(less GAM 51 mortality) - specimen rates shown below: 

Withdrawal 

Age Rate 

25 .0967 

30 .0930 

35 .0871 

40 .0775 

45 .0635 

50 .0422 

55 .0155 

60 .0015 

30% of the 1964 OASDI male table - specimen rates 

shown below: 

Disability 

Age Rate 

25 .0003 

30 .0003 

35 .0005 

40 .0007 

45 .0011 

50 .0018 

55 .0030 

60 .0049 

Page B-2 
CPTF-DV000712

Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods 

Carpenters Pension Trust Fund-• Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

Future retirement rates 

Active lives 

Inactive vested lives 

Disabled lives 

Future Hours Worked 

Vested lives 

Non-Vested lives 

Future hourly contribution 

rate 

Age of participants with 

unrecorded birth dates 

Marriage assumptions 

United Actuarial Services, Inc. 

ACTUARIAL ASSUMPTIONS {CONT.) 

According to the following schedule: 

Age 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65+ 

Without 

Index 80 or 85 

Requirements 

.10 

.10 

.10 

.10 

.15 

.15 

.30 

.30 

.30 

.05 

1.00 

With 

Index 80 or 85 

Requirements 

.25 

.25 

.25 

.25 

.25 

.25 

.25 

.40 

.40 

.40 

1.00 

Resulting in an average expected retirement age of 59.7 

Age 59 if at least 1 0 years of service, and age 62 if less than 

10 years of service. It is assumed that inactive vested 

participants will not qualify for index 80 or 85. 

Disability benefit assumed payable until the earliest of age 

62, recovery or death. Then normal retirement benefit 

commences. 

1,600 hours per year, 0 after assumed retirement age 

600 hours per year, 0 after assumed retirement age 

Based on individual's average rate received for the most 

recent plan year increased to reflect known bargained 

increases. Additionally, beginning May 1, 2013, an average 

"discount" of 63% was assumed. 

Based on average entry age of participants with recorded 

birth dates and same vesting status. 

1 00% assumed married with the male spouse 3 years older 

than his wife. 

Page B-3 
CPTF-DV000713

Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

Inactive vested lives over 

age 70 

Deferred Beneficiary 

Lump Sum Payments 

Social security disability 

benefit 

QDRO benefits 

Section 415 limit 

assumptions 

Dollar limit 

Assumed form of 

payment for those limited 

by Section 415 

Benefits not valued 

United Actuarial Services, Inc. 

ACTUARIAL ASSUMPTIONS (CONT.) 

Continuing inactive vested participants over age 70 are 

assumed deceased and are not valued. 

Benefit payments for deferred beneficiaries of deceased 

participants that are due a lump sum once the plan emerges 

from critical status are assumed to be paid 20 years after 

the valuation date. 

33% of disabled participants are assumed to obtain a 

disability award from the Social Security Administration 

Benefits to alternate payee included with participant's 

benefit until payment commences. 

$215,000 per year 

Qualified joint and 100% survivor annuity. 

Lump sum disability for participants under age 62 with less 

than 5 credit years. 

Page B-4 
CPTF-DV000714

Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS 

The non prescribed actuarial assumptions were selected to provide a reasonable long 

term estimate of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for the 

selection of each non-prescribed assumption that has a significant effect on the valuation 

results. 

ERISA rate of return used 

to value liabilities 

Mortality 

Retirement 

Withdrawal 

Future hours worked 

United Actuarial Services, Inc. 

Future rates of return were modeled based on the Plan's 

current investment policy asset allocation and composite, 

long-term capital market assumptions taken from Horizon 

Actuarial's 2017 survey of investment consultants. 

Based on this analysis, we selected a final assumed rate 

of 7.50%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities. 

The RP-2014 Blue Collar Mortality Tables for employees 

and healthy annuitants adjusted backward to 2006 with the 

MP-2014 projection scale and projected forward using the 

MP-2017 projection scale was chosen as the base table for 

this population. 

The blue collar table was chosen based on the industry of 

plan participants. Finally, it was determined that no further 

adjustment was necessary in order to match projected 

deaths to actual post-retirement death experience. The 

period of actual data studied was from May 1, 2012 to April 

30, 2017. 

Actual rates of retirement by age were studied for the 

period May 1, 2012 and April 30, 2015. The assumed 

future rates of retirement were selected based on the 

results of this study. No further adjustments were deemed 

necessary at this time. 

Actual rates of withdrawal by age were studied for the 

period May 1, 2012 and April 30, 2015. The assumed 

future rates of withdrawal were selected based on the 

results of this study. No further adjustments were deemed 

necessary at this time. 

Based on review of recent plan experience. 

Page B-5 
CPTF-DV000715

Schedule MB, line 6- Statement of Actuarial Assumptions/Methods 

Carpenters Pension Trust Fund- Detroit and Vicinity EIN: 38-6242188/PN: 001 

May 1, 2017 

Funding method 

Funding period 

ER/SA Funding 

Population valued 

Actives 

Inactive vested 

Retirees 

Asset valuation method 

Actuarial value 

Unfunded vested 

benefits 

ACTUARIAL METHODS 

Individual entry age normal with costs spread as a level 

dollar amount over service. 

Traditional unit credit cost method, effective May 1 , 2003. 

Eligible employees with at least one hour during the 

preceding plan year. 

Vested participants with no hours during the preceding 

plan year. 

Participants and beneficiaries in pay status as of the 

valuation date. 

Smoothed market value effective May 1, 1997. Gains and 

losses are spread over a 5-year period. The actuarial 

value is limited to not less than 80% and not more than 

120% of the actual market value of assets in any plan year. 

For the presumptive method, actuarial value, as described 

above, is used. 

Pension Relief Act of 2010 • 10-year smoothing was elected with respect to the loss 

incurred during the plan year ended in 2009. 

United Actuarial Services, Inc. 

• The 130% cap on actuarial value of assets was elected 

for the plan years beginning in 2009 and 2010. 

• 30-year amortization of net investment loss was 

elected with respect to the loss incurred during the plan 

year ended in 2009. The loss was allocated to future 

years using the "prospective method" of IRS. The 

amount of each allocation is shown in Appendix C. 

Page B-6 
CPTF-DV000716

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 8 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line Bb(1) - Schedule of Projection of Expected Benefit 

Payments 

Below is the projected expected benefit payout from the most recent actuarial valuation. 

The projections exclude any future accruals. 

Plan Year Expected Annual 

Beginning Benefit Payments 

2017 $ i 53,068,333 

2018 155,420,749 

2019 158,695,301 

2020 162,361,133 

2021 166,341,156 

2022 170,577,088 

2023 174,496,016 

2024 178,013,249 

2025 181,287,340 

2026 i 84,242,317 

Schedule MB, line Bb(2) - Schedule of Active Participant Data 

Attached is the required Schedule of Active Participant Data from the most recent actuarial 

valuation. 
CPTF-DV000717

Attained 

age 

Schedule MB, Line 8i>(2) •· Scheduie of Active Participant Data 

Carpenters Pensfon Trust Fund" Detroit and Vicinity Pension Plan E!N: 38-6242188/PN: 001 

May 1, 2017 

Years of Service 

Under1 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 &up 

Under 25 113 228 16 0 0 0 0 0 0 0 

25 to 29 103 222 124 21 0 0 0 0 0 0 

30 to 34 136 180 134 131 24 0 0 0 0 0 

35 to 39 86 166 135 150 143 24 0 0 0 0 

40 to 44 83 95 89 118 238 119 6 0 0 0 

45 to 49 70 90 77 126 207 150 79 12 0 0 

50 to 54 65 65 66 92 194 156 117 132 2 0 

55 to 59 34 33 38 71 100 94 82 35 1 0 

60 to 64 11 9 15 19 31 25 13 1 0 1 

65 to 69 4 0 1 0 3 0 1 0 1 0 

70 &up 1 0 0 0 0 0 0 0 0 0 

May contain values based on estimated data 
CPTF-DV000718

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 8 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line Be - Calculation of Minimum Required Contribution 

without Amortization Extension 

Below is the detail of the contribution requirements with and without the amortization 

extension. 

Minimum Required Contribution Without With 

Plan Year Beginning May 1, 2017 Extension Extension 

Minimum funding cost 

Total normal cost $ 18,256,173 $ 18,256,173 

Net amortization of unfunded liabilities 137,760,629 146,749,529 

Interest to end of e_!an Y._ear 11,701,257 12,375,424 

167,718,059 177,381,126 

Full funding limit 2,716,877,231 2,716,877,231 

Net charge to funding std. acct. (lesser of above) 167,718,059 177,381,126 

less: Credit balance with interest to Y._ear end (596,504,392) (277,699,745) 

Minimum Required Contribution (not less than 0) $ 764,504,392 $ 455,080,871 

Effect of extension $ 309,423,521 
CPTF-DV000719

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 9 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, lines 9c and 9h - Schedule of Funding Standard Account 

Bases 

Attached is a schedule of minimum funding amortization bases maintained pursuant to 

IRC Section 431. Since some of the plan's amortization bases are operating under an 

extension, the amortization bases are shown both before and after the extension is 

applied. 
CPTF-DV000720

Carpenters Pension Trust Fund-Detroit and Vicinity 

E!N: 38-6242188/PN: 001 

Attachment to 2017 Scheduie MB: Lines 9c and 9h 

Schedule of Funding Standard Account Bases 

Bases Shown: With Extension 

-,------ -------------------- I 5/1/2017 5/1/2017 I 

! Remaining Period i i 

Date Source of Change in Original Original ' I Outstanding • Amortization ! 

Established Unfunded Liabili Amount Period 1 Years ! Months : Balance Payment 

Charges 

5/1/1977 Lath. UAL 45 5 0 352,414 81,027 

5/1/1977 UAL 45 5 0 21,403,562 4,921,122 

5/1/1978 Amendment 45 6 0 3,917,609 776,397 

5/1/1979 Amendment 45 7 0 5,204,341 914,029 

5/1/1980 Amendment 45 8 0 10,148,671 1,611,770 

5/1/1983 Amendment 35 1 0 826,981 826,981 

5/1/1983 Assumption 35 1 0 204,140 204,140 

5/1/1983 Lath. ben 35 0 6,648 6,648 

5/1/1984 Amendment 35 2 0 1,718,053 890,073 

5/1/1984 Lath. ben 35 2 0 71,022 36,794 

5/1/1985 Amendment 35 3 0 5,113,433 1,829,122 

5/1/1985 Lath. ben 35 3 0 18,618 6,661 

5/1/1986 Amendment 35 4 0 3,827,339 1,062,993 

5/1/1987 Amendment 35 5 0 12,059,682 2,772,771 

5/1/1987 Method change 35 5 0 4,005,394 920,922 

5/1/1989 Amendment 35 7 0 3,977,449 698,551 

5/1/1990 Amendment 35 8 0 14,736,247 2,340,349 

5/1/1991 Assumption 35 9 0 8,593,193 1,253,145 

5/1/1992 Amendment 35 10 0 4,252,237 576,270 

5/1/1993 Assumption 35 11 0 71,963 9,150 

5/1/1994 Amendment 35 12 0 5,699,401 685,401 

5/1/1995 Assumption 35 13 0 13,672,303 1,565,182 

5/1/1996 Assumption 19,314,830 35 14 0 12,804,553 1,403,110 

5/1/1997 Amendment 115,128,332 35 15 0 80,040,589 8,434,955 

5/1/1997 Assumption 2,432,702 35 15 0 1,691,284 178,234 

5/1/1998 Experience 20,023,624 20 0 1,295,493 1,295,493 

5/1/1999 Amendment 22,642,031 35 17 0 17,037,039 1,679,932 

5/1/1999 Experience 20,053,818 20 2 0 2,718,743 1,408,506 

5/1/2000 Amendment 36,206,741 35 18 0 28,154,160 2,698,320 

5/1/2000 Assumption 10,287,556 35 18 0 7,999,549 766,684 

5/1/2000 Experience 5,279,519 20 3 0 1,101,756 394,108 

5/1/2001 Experience 33,142,699 20 4 0 9,340,328 2,594,157 

5/1/2002 Amendment 65,943,178 35 20 0 54,247,752 4,950,029 

5/1/2002 Experience 70,475,288 20 5 0 24,914,259 5,728,304 

5/1/2003 Assumption 85,964,800 35 21 0 72,448,870 6,471,832 

Page C-1 
CPTF-DV000721

Carpenters Pension Trust Fund-Detroit and Vicinity 

EIN: 38-6242188/PN: 001 

Attachment to 2017 Schedule MB: Lines 9c and 9h 

Schedule of Funding Standard Account Bases 

Bases Shown: With Extension 

~--- --~----~--~~--~-------·-----~----- --------·----------- ----------~----- I 5/1/2017 5/1/2017 l 

! Remaining Period I I 

Date Source of Change in Original Original ' I Outstanding Amortization : 

Established Unfunded Liabili Amount Period 1 Years I Months ' Balance Payment 

5/1/2003 Experience 254,431,353 20 6 0 107,587,037 21,321,738 

5/1/2004 Experience 20,035,740 20 7 0 9,802,826 1,721,652 

5/1/2005 Experience 116,546,347 20 8 0 64,384,945 10,225,349 

5/1/2006 Assumption 32,822,460 35 24 0 29,370,093 2,487,581 

5/1/2006 Experience 61,302,815 20 9 0 37,530,715 5,473,101 

5/1/2007 Assumption 97,147,893 35 25 0 88,374,848 7,375,039 

5/1/2007 Experience Loss 36,021,921 20 10 0 24,082,662 3,263,726 

5/1/2008 Assumptions 29,589,137 20 11 0 21,378,172 2,718,458 

5/1/2008 Experience 21,904,410 20 11 0 15,825,953 2,012,435 

5/1/2009 Experience 29,524,251 15 7 0 17,828,900 3,131,258 

5/1/2009 Relief 09 Asset 163,705,587 29 21 0 146,305,326 13,069,403 

5/1/2010 Experience 16,798,389 15 8 0 11,199,214 1,778,612 

5/1/2011 Assumptions 14,968,746 15 9 0 10,850,491 1,582,326 

5/1/2011 Expereince 19,762,045 15 9 0 14,325,041 2,089,019 

5/1/2011 Relief 09 Asset 83,446,610 27 21 0 76,099,562 6,797,947 

5/1/2012 Assumptions 3,586,082 15 10 0 2,792,808 378,487 

5/1/2012 Experience 127,391,921 15 10 0 99,211,735 13,445,352 

5/1/2012 Relief 09 Asset 9,268,532 26 21 0 8,550,370 763,802 

5/1/2013 Assumptions 112,407,257 15 11 0 93,156,862 11,845,867 

5/1/2013 Relief 09 Asset Loss 42,325,699 25 21 0 39,540,680 3,532,155 

5/1/2014 Relief 09 Asset Loss 39,456,467 24 21 0 37,410,577 3,341,874 

5/1/2015 Assumptions 66,762,182 15 13 0 61,458,193 7,035,631 

5/1/2015 Experience 53,022,966 15 13 0 48,810,503 5,587,744 

5/1/2016 Amendment 19,478,191 15 14 0 18,732,425 2,052,679 

5/1/2016 Experience 83,462,560 15 14 0 80,267,009 8,795,575 

5/1/2017 Assumptions 46,472,895 15 15 0 46,472,895 4,897,475 

5/1/2017 Experience 62,924,769 15 15 0 62,924,769 6,631,231 

Total Charges: 1,707,949,686 215,348,678 

Page C-2 
CPTF-DV000722

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

Date Source of Change in 

Established Unfunded Liabili 

Credits 

5/1/1989 Assumption 

5/1/1990 Lath. assum 

5/1/1992 Assumption 

5/1/1999 Assumptions 

5/1/2009 Amendment 

5/1/2009 Method (Relief) 

5/1/2010 Amendment 

5/1/2010 Relief 09 Asset 

5/1/2013 Amendment 

5/1/2013 Experience Gain 

5/1/2014 Amendment 

5/1/2014 Assumptions 

5/1/2014 Experience 

5/1/2016 Assumptions 

Carpenters Pension Trust Fund-Detroit and Vicinity 

EIN: 38-6242188/PN: 001 

Attachment to 2017 Schedule MB: Lines 9c and 9h 

Schedule of Funding Standard Account Bases 

Bases Shown: With Extension 

5/1/2017 5/1/2017 -1 

I 

Original Original Remaining Period Outstanding Amortization : 

Amount Period Years I Months Balance Payment ' 

30 2 0 4,952,065 2,565,529 

30 3 0 75,983 27,180 

30 5 0 1,783,776 410,128 

104,779,461 30 12 0 70,225,031 8,445,154 

19,793,553 15 7 0 11,952,792 2,099,247 

77,104,031 30 22 0 69,566,477 6,095,115 

101 ,829,896 15 8 0 67,888,335 10,781,743 

55,383,209 28 21 0 49,977,236 4,464,449 

186,630, 145 15 11 0 154,668,648 19,667,733 

5,974,815 15 11 0 4,951,589 629,647 

66,875,803 15 12 0 58,603,820 7,047,605 

24,371,644 15 12 0 21,357,071 2,568,369 

25,585,607 15 12 0 22,420,879 2,696,300 

10,447,082 15 14 0 10,047,092 1,100,950 

Total Credits: 548,470,794 68,599,149 

Net Charges: 1,159,478,892 146,749,529 

Less Credit Balance: 

Less Reconciliation Balance: 

Unfunded Actuarial Liability: 

Page C-3 

-258,325,344 

0 

1,417,804,236 
CPTF-DV000723

Carpenters Pension Trust Fund-Detroit and Vicinity 

EIN: 38-6242188/PN: 001 

Attachment to 2017 Schedule MB: Lines 9c and 9h 

Schedule of Funding Standard Account Bases 

Bases Shown: Without Extension 

--~----··- I 5/1/2017 --------~-- ---··1 

I 5/1/2017 I 

Date Source of Change in Original _ Original Remaining Period 1 Outstanding Amortization 1 I 

Established Unfunded Liabili Amount Period Years I Months : Balance Payment 

Charges 

5/1/1978 Amendment 40 0 999,794 999,794 

5/1/1979 Amendment 40 2 0 2,207,663 1,143,729 

5/1/1980 Amendment 40 3 0 5,502,608 1,968,335 

5/1/1989 Amendment 30 2 0 1,687,213 874,100 

5/1/1990 Amendment 30 3 0 7,989,989 2,858,094 

5/1/1991 Assumption 30 4 0 5,396,468 1,498,800 

5/1/1992 Amendment 30 5 0 2,944,182 676,928 

5/1/1993 Assumption 30 6 0 53,394 10,582 

5/1/1994 Amendment 30 7 0 4,451,146 781,747 

5/1/1995 Assumption 30 8 0 11,105,057 1,763,658 

5/1/1996 Assumption 19,314,830 30 9 0 10,725,582 1,564,111 

5/1/1997 Amendment 115, 128,332 30 10 0 68,720,762 9,313,161 

5/1/1997 Assumption 2,432,702 30 10 0 1,452,096 196,791 

5/1/1999 Amendment 22,642,031 30 12 0 15,175,088 1,824,932 

5/1/2000 Amendment 36,206,741 30 13 0 25,428,478 2,911,009 

5/1/2000 Assumption 10,287,556 30 13 0 7,225,087 827,116 

5/1/2002 Amendment 65,943,178 30 15 0 50,074,610 5,277,036 

5/1/2003 Assumption 85,964,800 30 16 0 67,454,156 6,864,082 

5/1/2003 Experience 254,431,353 15 0 27,456,871 27,456,871 

5/1/2004 Experience 20,035,740 15 2 0 4,158,323 2,154,312 

5/1/2005 Experience 116,546,347 15 3 0 34,909,491 12,487,453 

5/1/2006 Assumption 32,822,460 30 19 0 27,887,400 2,604,837 

5/1/2006 Experience 61,302,815 15 4 0 23,569,023 6,545,995 

5/1/2007 Assumption 97,147,893 30 20 0 84,334,163 7,695,370 

5/1/2007 Experience Loss 36,021,921 15 5 0 16,674,468 3,833,805 

5/1/2008 Assumption 29,589,137 15 6 0 15,862,045 3,143,561 

5/1/2008 Experience 21,904,410 15 6 0 11,742,441 2,327,132 

5/1/2009 Experience 29,524,251 15 7 0 17,828,900 3,131,258 

5/1/2009 Relief08 Asset Loss 163,705,587 29 21 0 146,305,326 13,069,403 

5/1/2010 Experience 16,798,389 15 8 0 11,199,214 1,778,612 

5/1/2011 Assumptions 14,968,746 15 9 0 10,850,491 1,582,326 

5/1/2011 Experience 19,762,045 15 9 0 14,325,041 2,089,019 

5/1/2011 Relief 09 Asset 83,446,610 27 21 0 76,099,562 6,797,947 

5/1/2012 Assumptions 3,586,082 15 10 0 2,792,808 378,487 

5/1/2012 Experience 127,391,917 15 10 0 99,211,730 13,445,352 

Page C-4 
CPTF-DV000724

Carpenters Pension Trust Fund-Detroit and Vicinity 

EIN: 38-6242188/PN: 001 

Attachment to 2017 Schedule MB: Lines 9c and 9h 

Schedule of Funding Standard Account Bases 

Bases Shown: Without Extension 

-----I 5/1/2017 5/1/2017 l 

I Remaining Period l I 

Date Source of Change in Original Original I Outstanding Amortization : 

Established Unfunded Liabili Amount Period Years I Months Balance Payment ' 

5/1/2012 Relief 09 Asset 9,268,532 26 21 0 8,550,370 763,802 

5/1/2013 Assumptions 112,407,257 15 11 0 93,156,862 11,845,867 

5/1/2013 Relief 09 Asset Loss 42,325,699 25 21 0 39,540,680 3,532,155 

5/1/2014 Relief 09 Asset Loss 39,456,467 24 21 0 37,410,577 3,341,874 

5/1/2015 Assumptions 66,762,182 15 13 0 61,458,193 7,035,631 

5/1/2015 Experience 53,022,966 15 13 0 48,810,503 5,587,744 

5/1/2016 Amendment 19,478,191 15 14 0 18,732,425 2,052,679 

5/1/2016 Experience 83,462,560 15 14 0 80,267,009 8,795,575 

5/1/2017 Assumptions 46,472,895 15 15 0 46,472,895 4,897,475 

5/1/2017 Experience 62,924,769 15 15 0 62,924,769 6,631,231 

Total Charges: 1,411,124,953 206,359,778 

Credits 

5/1/1989 Assumption 30 2 0 4,952,065 2,565,529 

5/1/1990 Lath. assum 30 3 0 75,983 27,180 

5/1/1992 Assumption 30 5 0 1,783,776 410,128 

5/1/1999 Assumptions 104,779,461 30 12 0 70,225,031 8,445,154 

5/1/2009 Amendment 19,793,553 15 7 0 11,952,792 2,099,247 

5/1/2009 Method (Relief) 77,104,031 30 22 0 69,566,477 6,095,115 

5/1/2010 Amendment 101,829,896 15 8 0 67,888,335 10,781,743 

5/1/2010 Relief08 Asset 55,383,209 28 21 0 49,977,236 4,464,449 

5/1/2013 Amendments 186,630,145 15 11 0 154,668,648 19,667,733 

5/1/2013 Experience 5,974,815 15 11 0 4,951,589 629,647 

5/1/2014 Amendment 66,875,803 15 12 0 58,603,820 7,047,605 

5/1/2014 Assumptions 24,371,644 15 12 0 21,357,071 2,568,369 

5/1/2014 Experience 25,585,607 15 12 0 22,420,879 2,696,300 

5/1/2016 Assumptions 10,447,082 15 14 0 10,047,092 1,100,950 

Total Credits: 548,470,794 68,599,149 

Page C-5 
CPTF-DV000725

Date 

Established 

Source of Change in 

Unfunded Liabili 

Carpenters Pension Trust Fund-Detroit and Vicinity 

EIN: 38-6242188/PN: 001 

Attachment to 2017 Schedule MB: Lines 9c and 9h 

Schedule of Funding Standard Account Bases 

Bases Shown: Without Extension 

5/1/2017 

Original Original i Remaining Period I Outstanding 

Amount Period i Years I Months Balance 

Net Charges: 862,654,159 

Less Credit Balance: -555, 150,077 

Less Reconciliation Balance: 0 

Unfunded Actuarial Liability: 1,417,804,236 

Page C-6 

5/1/2017 

Amortization I 

Payment 

137,760,629 
CPTF-DV000726

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 10 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line 10-Accumulated Funding Deficiency 

Pursuant to I RC Section 4971 (g)(1), the excise tax related to the accumulated funding 

deficiency that would otherwise be assessed under IRC Section 4971 (a) and/or (b) is not 

assessed because: 

• The Plan is in critical status for the plan year ended April 30, 2018. 

• The rehabilitation period is May 1, 2010 to April 30, 2020. Since the rehabilitation 

period has not yet expired, the Plan has not failed to meet the requirements of IRC 

Section 432(e) by the end of the rehabilitation period. 

• The Plan has not received certifications under IRC Section 432(b)(3)(A)(ii) for 3 

consecutive plan years that it is not meeting its requirements under the rehabilitation 

plan. 
CPTF-DV000727

CARPENTERS PENSION TRUST FUND - DETROIT AND VICINITY 

EIN: 38-6242188/PN: 001 

ATTACHMENT TO 2017 SCHEDULE MB: LINE 11 

STATEMENT BY ENROLLED ACTUARY 

Schedule MB, line 11 - Justification for Change in Actuarial Assumptions 

The assumptions and methods differ from those used the preceding year in the following 

respects: 

• The assumed mortality rates were changed from 115% of the RP-2014 Blue Collar 

Mortality Table for employees and healthy annuitants projected forward from 2006 

using the MP-2016 projection scale to 100% of the RP-2014 Blue Collar Mortality 

Table for employees and healthy annuitants projected forward from 2006 using the 

MP-2017 projection scale. This change was made in order to better reflect anticipated 

improvements in mortality rates for each future year due to medical advances and 

lifestyle changes. 

• The assumed disability rates were changed to 30% of the rates used in the 2016 

actuarial valuation report (see Appendix B for more details). This change was made 

in order to reflect the number observed disabilities being lower than we expected. 

• The projections contained in this report incorporate a short-term rate of return 

assumption of 6.6%. Prior-year projections generally assumed a 7.5% return for all 

future years. The long-term hours assumption for projections was also decreased from 

9.0 million to 7.0 million per year. 

• The current liability interest rate was changed from 3.22% to 3.05%. The new rate is 

within established statutory guidelines. 

Actuary's Statement of Reliance 

In completing this Schedule MB, the enrolled actuary has relied upon the correctness of 

the financial information presented in the pension fund audit and upon the accuracy and 

completeness of participant census data provided by the plan administrator. 
CPTF-DV000728

WHEREAS, the Trustees of the Carpenters Pension Trust Fund - Detroit and Vicinity ("the 

Fund") adopted the initial Rehabilitation Plan under the Pension Protection Act of 2006 (PPA) on 

September 27, 2008, well in advance of its Rehabilitation Period in order to avoid any employer 

contribution surcharges. 

The Rehabilitation Plan included two schedules: a Default Schedule, and a Preferred Schedule. 

The Default Schedule was included for purposes of statutory compliance, and had the bargaining parties 

been unable to agree to the contribution increases required by the Preferred Schedule, the Default 

Schedule would have been implemented. However, the bargaining parties agreed to collective bargaining 

agreements that required pension contributions consistent with the Preferred Schedule, since the adoption 

of said Plan and have continued to do so since then. The Rehabilitation Plan has been reviewed each year 

to be sure that it remains viable and revised, as necessary, based on projections made by the Fund's 

actuary. 

In 2013 the Trustees, in conjunction with the Fund's actuary and advisors, determined that 

adherence to the Rehabilitation Plan's Preferred Schedule was no longer prudent and that further changes 

were needed to protect the Fund. These changes were summarized in the "All Reasonable Measures 

Plan" which replaced the Fund's Rehabilitation Plan that was in place since its adoption. The Trustees 

have updated the All Reasonable Measures Plan for this plan year. No changes to benefits or 

contributions have been made as part of those updates. The All Reasonable Measures Plan was also 

incorporated into the Plan document. This document is only a summary of Pension Plan changes - all 

benefit determinations shall be made in accordance with the Plan document, which shall govern in the 

event of any conflict with this or any other notice provided by the Fund, although this All Reasonable 

Measures Plan is an expression of the Trustees' intent for interpretation purposes and to the extent 

necessary, may be considered as an amendment or supplement to the Pension Plan. 

I. Applicable Standards under the PPA 

The PPA provides that rehabilitation plans must include one or more schedules showing revised 

benefit structures, revised contributions, or both, which, if adopted by the plan sponsor and agreed upon 

by the bargaining parties, may reasonably be expected to enable a pension fund to emerge from critical 

status by the end of the pension fund's rehabilitation period. 

Alternatively, the PPA provides that if the Fund determines that, after exhaustion of all 

reasonable measures, it cannot emerge from critical status within the statutory time period, then an 

alternative work-out plan can be adopted that is designed to do so on a more prudent time table, or, if 

emergence is not possible, one that will forestall or prevent insolvency. 

II. The Board's decision to employ an alternative work-out plan 

The goal of a PPA all reasonable measures work-out plan is to, by adopting various changes in 

benefits and contributions, allow a pension plan to emerge from critical status by the end of its 
CPTF-DV000729

Accordingly, and for the reasons set forth herein, the Fund

s Board of Trustees determined that, 

on the basis of reasonable actuarial assumptions and upon the exhaustion of all reasonable measures and 

other considerations, this "All Reasonable Measures" Work-out Plan is the most prudent course of action 

for the Fund. The All Reasonable Measures Work-out Plan was adopted, effective May I, 2013, to 

replace the Fund's Rehabilitation Plan, previously in place. This 2014 Update to the All Reasonable 

Measures Plan is hereby adopted, effective as of May 1, 2014 and made a part of the Plan document. 

A. Alternatives considered & rationale for adoption by the Plan 

The Board of Trustees considered numerous alternatives (including combinations of contribution 

rate increases and benefit adjustments) that, together with applicable amortization extensions, were 

projected to enable the Fund to emerge from critical status by the end of its rehabilitation period. The 

prior Rehabilitation Plan (i.e., the Rehabilitation Plan that the 2013 All Reasonable Measures Plan 

replaced) initially called for $1.55 per hour in uncredited contributions through 2015 and $.75 per hour in 

2016. This would have resulted in an average pension contribution rate of over $19.00 per hour, with 

approximately two thirds of that amount being non-benefit-credited. Moreover, additional uncredited 

contributions were required for future plan years based on lower than expected work hours and 

disappointing investment returns in the Plan Year ending April 30, 2013. The Fund determined that to 

continue with the current Rehabilitation Plan would seriously jeopardize the industry on which the Plan 

relies, and would drastically increase the likelihood of a significant number of employer withdrawals 

from the Plan, including a possible mass withdrawal, which would almost certainly drive the Plan into 

insolvency. 

In addition, to completely reduce benefits (accrued and ancillary) to the bare minimum permitted 

by law, would drive away future and current participants and severely hamper recruiting efforts since 

current and future participants would be shouldering the vast majority of the PP A uncredited funding 

obligations. This too would pose a severe risk to the Fund, since its long term survival depends upon the 

influx and retention of new and younger participants. With this in mind, the Board determined that while 

some benefit reductions had to be made, especially to ancillary benefits, their severity must be tempered 

by the Plan's need to retain its current and future pre-retirement age participants. In making this decision, 

the Board evaluated numerous options and consulted with various parties to gauge the impact of those 

options. In the end, adoption of the All Reasonable Measures Plan was deemed the most prudent course 

of action. 

B. Prior Benefit Changes 

As required by law, the Fund ceased paying all lump sum payments in excess of the de minimis 

amount of $5,000 on August 27, 2008 when the required "notice of the plan's critical status" was sent. 

The Fund also eliminated the so-call "Index 80" benefit and substituted an "Index 85" benefit with 

minimum age 55 requirement, as of May 1, 2010. Other benefit modifications were also made, in 

accordance with the PPA provisions. 

C. Benefit Changes under the All Reasonable Measures Plan 

2 
CPTF-DV000730

11 Benefits for early retirees (including their surviving spouses or beneficiaries) who entered 

pay status on or after September I, 2008 but prior to August 1, 2013 will be recalculated 

as if the new early retirement reduction factors described herein had been in effect when 

they initially retired; however the amount of the new early retirement benefit shall not be 

less than 95% of the original early retirement benefit., i.e., subject to a 5% cap; 

11 Benefits for early retirees who retire on or after August 1, 2013 and who have met their 

applicable Index requirements will have their retirement benefits reduced at the rate of 

1/3 of 1% per each month (4% per year) between their retirement age and age 62, unless 

they come within the grandfathered exception; 

11 Benefits for early retirees who retire on or after August 1, 2013 and who have not met 

their applicable Index requirements will have their retirement benefit reduced at the rate 

of 5/9% per month (6.66% per year) for each month between their retirement age and age 

62, unless they come within the grandfathered exception; 

11 Vested deferred Participants who fail to cure a break in service by working 435 hours in 

the two years prior to their retirement will have their retirement benefit reduced at the 

rate of5/9% per month (6.66% per year) for each month until reaching age 65; 

11 Grandfathered exception: Active Participants who meet the applicable Index criteria by 

August 1, 2015 will not have their benefit reduced by more than 5%. 

11 Disability benefits (which are ancillary plan benefits) for Participants who entered pay 

status on or after September 1, 2008 ( or alternatively as of December 1, 2014, if required 

by applicable law) will be capped in accordance with the following schedule before they 

convert to regular retirement benefits. Disabled retirees currently in pay status shall 

begin receiving the capped benefit effective August 1, 2013. 

Credit Years Cap on Monthly Benefit 

5-9 $525 

10-15 $625 

16-19 $725 

20-24 $1,050 

25+ $1,350 

The foregoing disability benefit changes may be implemented at a later date, following the 

conclusion of litigation involving same. 

11 Participants receiving disability benefits who convert to an Early Retirement Benefit 

prior to reaching age 62 will be subject to an early retirement reduction factor. Such 

factor shall be determined in accordance with the rules described herein based on the 

Participant's age and service at the time of conversion; 

3 
CPTF-DV000731

g

, 

, 

p

y 

Disability benefits from the Social Security Administration in order to be eligible for Plan 

disability benefits. Participants currently in pay status whose benefits commenced on or 

after September 1, 2008 will have until August 1, 2015 to obtain such an award in order 

to continue receiving their disability benefits. The foregoing may be implemented at a 

later date, following the conclusion of litigation involving same; 

• Retiree death benefits will no longer be payable in the form of a lump sum on or after 

August 1, 2013 even when the Plan emerges from the PPA "red zone." Benefits that 

were payable in a lump sum prior to August 1, 2013, but have not been paid out in that 

form due to the Plan's "red zone" status, will be paid in a lump sum when the Plan 

emerges from the "red zone." 

11 The suspension of benefits rules will be tightened. Effective for early retirements that 

commenced on or after September I, 2008, early retirees who work any hours in 

prohibited employment as provided in the Plan in a restricted month will have their 

benefits suspended to the extent permitted by law. 

D. Changes to Actuarial Assumptions 

Taking into account the above changes to the Plan, the actuary has adjusted the actuarial 

assumptions for the Plan, which are detailed below. 

11 Rate of return on investments of 7.5% (reduced from 7.75%) for the Plan Year ending 

April 30, 2013 and all subsequent Plan Years going forward. 

• Contribution Hours 

o Historic Contribution Hours 

• Seven million (7.0) man hours for the Plan Year ending April 30, 2013. 

o Current and Future Contribution Hours 

• Seven and one-half (7 .5) million man hours for the Plan Years ending 

April 30, 2014 and April 30, 2015; 

• Eight million (8.0) million man hours for Plan years going forward. 

• Based on the foregoing, the Fund is projected to enter the Green Zone reaching a 100% 

funded level in 2039. 

E. Funding Requirements 

In the 2013 Plan Year, there was a contribution rate increase applicable to the Commercial, 

Display, Floorlayers, Millwrights and Roadbuilders contracts of $1.55 per hour uncredited, as of June 1, 

2013. No further uncredited contributions are required under this All Reasonable Measures Plan, 

4 
p

necessary, to take into account the Fund's investments returns, work hours and other actuarial 

assumptions. No further uncredited contributions or benefit adjustments are required for the current Plan 

Year. 

IN WITNESS WHEREOF, we have approved and adopted this All Reasonable Measures Plan 

on this 13th day of January, 2015. 

W:\FUNDS\mrcc\DB-PENS\PPA \2014 rehab plan updated.ARM.11 .07.14.doe 

5 

CPTF-DV000732 
CARPENTERS PENSION TRUST FUND

DETROIT AND VICINITY PENSION PLAN

DETROIT, MICHIGAN

Actuarial Valuation Report

For Plan Year Commencing 

May 1, 2017

CPTF-DV000733
11590 North Meridian Street, Suite 610  Carmel, Indiana 46032-4529  (317) 580-8670  Fax (317) 580-8651

April 10, 2018

Board of Trustees

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

Detroit, Michigan

Dear Trustees:

We have been retained by the Board of Trustees of the Carpenters Pension Trust Fund - 

Detroit and Vicinity Pension Plan to perform annual actuarial valuations of the pension plan. 

This report presents the results of our actuarial valuation for the plan year beginning May 

1, 2017. The valuation results contained herein are based on current plan provisions 

summarized in Appendix A, the actuarial assumptions and methods listed in Appendix B 

and on financial statements audited by Bultynck & Co., P.L.L.C. Participant data was 

provided by BeneSys, Inc. While we have reviewed the data for reasonableness in 

accordance with Actuarial Standards of Practice No. 23, we have not audited it. The data 

was relied on as being both accurate and comprehensive.

This report has been prepared in order to (1) assist the Trustees in evaluating the current 

actuarial position of the plan, (2) determine the minimum required and maximum deductible 

contribution amounts under Internal Revenue Code §431 and §404, (3) provide the fund’s 

auditor with information necessary to comply with Accounting Standards Codification 960, 

and (4) document the plan’s certified status under Internal Revenue Code §432 for the 

current year and provide the basis to certify such status for the subsequent year. In addition, 

information contained in this report will be used to prepare Schedule MB of Form 5500 that 

is filed annually with the IRS and could be used to calculate employer withdrawal liability. 

We are not responsible for the use of, or reliance upon, this report for any other purpose. 

We have prepared this report in accordance with generally accepted actuarial principles 

and practices and have performed such tests as we considered necessary to assure the 

accuracy of the results. The results have been determined on the basis of actuarial 

assumptions that, in my opinion, are appropriate for the purposes of this report, are 

individually reasonable and in combination represent my best estimate of anticipated 

experience under the plan. Actuarial assumptions may be changed from previous 

valuations due to changes in mandated requirements, plan experience resulting in changes 

in expectations about the future, and/or other factors. An assumption change does not 

indicate that prior assumptions were unreasonable when made. For purposes of current 

liability calculations, assumptions are prescribed by regulation or statute. By relying on this 

valuation report, the Trustees confirm they have accepted the assumptions contained in the 

report.

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

subject to revision based on future regulatory or other guidance.

Future actuarial measurements may differ significantly from the current measurements 

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

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

demographic assumptions, increases or decreases expected as part of the natural 

operation of the methodology used for these measurements (such as the end of an 

CPTF-DV000734

United Actuarial 

Services, Inc. 

Actuaries and Consultants 
Board of Trustees -2- April 10, 2018

amortization period or additional cost or contribution requirements based on the plan’s 

funded status), and changes in plan provisions or applicable law.

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

advice. None of the comments made herein should be construed as constituting such 

advice. We are not aware of any direct or material indirect financial interest or relationship 

that could create a conflict of interest that would impair the objectivity of our work.

The undersigned actuary meets the Qualification Standards of the American Academy of 

Actuaries to render the actuarial opinion contained in this report. 

We are available to respond to any questions you may have about this report.

UNITED ACTUARIAL SERVICES, INC.

Andrew T. Smith, FCA, ASA, EA

President

United Actuarial Services, Inc. 

CPTF-DV000735
TABLE OF CONTENTS

PART I: SUMMARY OF RESULTS 5

5 - Year Summary of Valuation Results 6

5 - Year Summary of Demographics 7

Changes From Prior Study 8

History of Major Assumptions 9

Experience vs. Assumptions 10

Plan Maturity 11

Unfunded Vested Benefits/Employer Withdrawal Liability 12

Contribution Allocation 13

Funding Standard Account Projection 14

Funded Ratio Projection 15

PPA Funding Status Report 16

Ultimate Funded Status 17

Stress and Sensitivity Analysis 18

PART II: SUPPLEMENTAL STATISTICS 19

Participant Data Reconciliation 20

Hours Worked During Plan Year 21

Contributions Made During Plan Year 22

Active Information 23

Inactive Vested Information 24

Retiree Information 25

PART III: ASSET INFORMATION 27

Market and Actuarial Fund Values 28

Flow of Funds 29

Investment Gain and Loss 30

Rate of Return on Fund Assets 31

PART IV: ENROLLED ACTUARY’S REPORT 32

Normal Cost/Actuarial Liability 33

Actuarial Liability Reconciliation/Projection 34

Funded Ratios 35

Funding Period 36

Current Liability 37

Funding Standard Account 38

Funding Standard Account Without Amortization Extension 39

Full Funding Limit 40

Minimum Required Contribution and Full Funding Credit 41

Maximum Deductible Contribution 42

History of Unfunded Vested Benefits 43

Termination by Mass Withdrawal 44

ASC 960 Information 45

APPENDICES

Plan Provisions Appendix A

Actuarial Assumptions and Methods Appendix B

Minimum Funding Amortization Bases Appendix C

Summary of Endangered and Critical Status Rules Appendix D

Glossary of Common Pension Terms Appendix E

United Actuarial Services, Inc. 

CPTF-DV000736
Page 5 

PART I: SUMMARY OF RESULTS

CPTF-DV000737

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 6 

 

5 - YEAR SUMMARY OF VALUATION RESULTS

Actuarial Study 

as of May 1, 2017 2016 2015 2014 2013

PPA funded status Critical Critical Critical Critical Critical

Progress under FIP/RP Yes Yes Yes Yes Yes

Improvements restricted* Yes Yes Yes Yes Yes

Funded ratio

PPA certification 36.4% 38.9% 42.5% 43.9% 42.0%

Valuation report (AVA) 35.5% 38.7% 41.4% 44.3% 42.2%

Valuation report (MVA) 33.4% 33.6% 36.0% 37.5% 35.1%

Date of first funding deficiency

PPA certification 4/30/10 4/30/10 4/30/10 4/30/10 4/30/10 

Valuation report 4/30/10 4/30/10 4/30/10 4/30/10 4/30/10 

Net investment return

On market value 11.13% -0.22% 4.42% 10.51% 6.31%

On actuarial value 1.78% -0.66% 1.12% 7.78% 5.06%

Asset values ($ 000)

Market 734,240 712,660 746,439 747,282 718,006 

Actuarial 781,239 821,814 859,594 883,024 861,607 

Accum. ben. ($ 000) 2,199,043 2,123,936 2,076,091 1,991,086 2,043,816

* Benefit improvement restrictions due to fund being in critical status. Restrictions in place until plan is 

in the safe zone again.

CPTF-DV000738

I 

~1 ,500,000 +----------------------- c: 

(IC 

r.n 

- ,!l,,ccumulate:::I ~1 ,000,000 +-----------------------

Beneflts i= 

500,000 

2017 2016 2015 2014 2013 

Plan Year Beginning 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 7 

 

5 - YEAR SUMMARY OF DEMOGRAPHICS

Actuarial Study 

as of May 1, 2017 2016 2015 2014 2013

Demographics

Active 5,208 5,246 5,054 4,986 5,213 

Inactive vested 6,465 6,495 6,515 6,482 6,340 

Receiving benefits 7,314 7,290 7,276 7,363 7,339 

Total 18,987 19,031 18,845 18,831 18,892 

Unrecorded dates of birth 70 65 127 80 67 

Average entry age 28.1 28.1 27.9 27.9 27.9 

Average attained age 42.3 42.1 42.5 42.4 42.0 

History of Hours

CPTF-DV000739

I 

8,000 

7,000 

6,000 

5,000 • Actives 4,000 • Inactive Vested 3,000 • Retirees 2,000 

1,000 

0 

2017 2016 2015 2014 2013 

9.0 

8.0 

7.0 

Expected Hrs- 6.0 Valuation 

Expected Hrs - ~ 5.0 

PPACert ~ 4.0 

-+-Actual Hrs i 3.0 

2.0 

1.0 

0.0 

2018 2017 2016 2015 2014 

Plan Year Ending 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 8 

 

CHANGES FROM PRIOR STUDY

Changes in Plan Provisions

The plan provisions underlying this valuation are the same as those valued last year.

Changes in Actuarial Assumptions and Methods

The actuarial assumptions and methods used in this valuation differ from those used in the 

prior valuation in the following respects:

• The assumed mortality rates were changed from 115% of the RP-2014 Blue Collar 

Mortality Table for employees and healthy annuitants projected forward from 2006 using 

the MP-2016 projection scale to 100% of the RP-2014 Blue Collar Mortality Table for 

employees and healthy annuitants projected forward from 2006 using the MP-2017 

projection scale. This change was made in order to better reflect anticipated 

improvements in mortality rates for each future year due to medical advances and 

lifestyle changes.

• The assumed disability rates were changed to 30% of the rates used in the 2016 

actuarial valuation report (see Appendix B for more details). This change was made in 

order to reflect the number observed disabilities being lower than expected. 

• The projections contained in this report incorporate a short-term rate of return 

assumption of 6.6%. Prior-year projections generally assumed a 7.5% return for all 

future years. The long-term hours assumption for projections was also decreased from 

9.0 million to 7.0 million per year.

• The current liability interest rate was changed from 3.22% to 3.05%. The new rate is 

within established statutory guidelines.

CPTF-DV000740

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 9 

 

HISTORY OF MAJOR ASSUMPTIONS

Actuarial Study as of May 1,

Assumption 2017 2016 2015 2014 2013

Future rate of net 

investment return

7.50% 7.50% 7.50% 7.50% 7.50%

Mortality table RP 2014 RP 2014 RP 2014 RP-2000G RP-2000G 

Adjustment 100% 115% 2 yr. sf 2 yr. sf 2 yr. sf

Projection Scale MP-2017 MP-2016 MP-2015 AA AA 

Future expenses $4.3M $4.3M $4.0M $4.0M $3.5M

Average future hourly 

contribution rate*

Credited $5.72 $5.74 $5.85 $5.82 $5.86

Non-credited 9.78 9.81 10.00 10.20 8.36

Total $15.50 $15.55 $15.85 $16.02 $14.22

Average future annual hours

Vested 1,600 1,600 1,400 1,400 1,200

Non-vested 600 600 500 500 500

Average expected retirement age**

Actives 59.7 59.6 59.5 58.0 58.0

Inactive vested 61.6 61.4 61.4 62.6 62.7

* Actual average derived from application of assumptions specified in Appendix B.

** Resulting from the application of the retirement probabilities shown in Appendix B to active 

participants.

CPTF-DV000741

I 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 10 

 

EXPERIENCE VS. ASSUMPTIONS

Actuarial assumptions are used to project certain 

future events related to the pension plan (e.g. 

deaths, withdrawals, investment income, expenses, 

etc.). While actual results for a single plan year will 

rarely match expected experience, it is intended that 

the assumptions will provide a reasonable long term 

estimate of developing experience.

The following table provides a comparison of expected outcomes for the prior plan year with 

the actual experience observed during the same period. This display may provide insight 

as to why the plan’s overall actuarial position may be different from expected.

Plan Year Ending 

April 30, 2017 Expected Actual

Decrements

Terminations 955

less: Rehires 302

Terminations (net of rehires) 824.3 653

Retirements 78.1 80

Disabilities 22.1 5

Deaths - pre-retirement 42.7 51

Deaths - post-retirement 301.3 289

Asset assumptions

Rate of net investment return on actuarial value 7.50% 1.78%

Net expenses $ 4,300,000 $ 3,914,123

Other demographic assumptions

Average retirement age from active (new retirees) 59.2 59.1

Average retirement age from inactive (new retirees)* 61.4 62.6

Average entry age (new entrants) 28.1 32.5

Hours worked per vested active 1,600 1,675

Hours worked per non-vested active 600 653

Total hours worked (valuation assumption) 6,907,600 7,266,322

Total hours worked (PPA certification assumption) 8,500,000 7,266,322

Unfunded liability (gain)/loss

(Gain)/loss due to asset experience $ 45,436,674

(Gain)/loss due to liability experience 17,488,095

Total (gain)/loss $ 62,924,769

* Expected average based on the average for the total group of participants.

Comparing the prior year’s 

experience to assumptions 

provides indications as to 

why overall results may 

differ from those expected 

CPTF-DV000742

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 11 

 

PLAN MATURITY

When a new pension plan is first established, its 

liabilities are typically limited to active plan 

participants. However, as people become vested 

and retire, a plan begins to develop liabilities 

attributable to inactive participants. The process of 

adding inactive liabilities (often referred to as 

“maturing”) is a natural outgrowth of the operation of 

the plan. As a plan matures, its liabilities tend to balloon in relation to its contribution base, 

making it more difficult to correct for adverse outcomes by increasing contribution rates or 

reducing future benefit accruals.

We generally consider a plan with an active to retiree headcount ratio of less than 1.0, or 

an active to inactive headcount ratio of less than 0.5, to be mature.

Actuarial Study 

as of May 1, 2017 2016 2015 2014 2013

Active/retiree headcount ratio 0.71 0.72 0.69 0.68 0.71

Active/inactive headcount ratio 0.38 0.38 0.37 0.36 0.38

Liabilities of Actives, Retirees, and Inactive Vesteds

Total Liabilities: $2,199,043,180

Measures of plan maturity 

can play a part in 

understanding risk and a 

plan’s ability to recover 

from adverse experience

CPTF-DV000743

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 12 

 

UNFUNDED VESTED BENEFITS/EMPLOYER WITHDRAWAL LIABILITY

The following table shows a history of the plan’s 

unfunded vested benefits (UVB) required to 

compute a specific employer withdrawal liability 

under the presumptive method. If all unfunded 

vested benefits since the inception of the 

Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) are zero ($0) or less, there 

will be no withdrawal liability assessed to a withdrawing employer. Otherwise, an employer 

may be assessed withdrawal liability payments pursuant to MPPAA. The display does not 

reflect adjustments for prior employer withdrawals.

In accordance with IRC Section 432(e)(9)(A) and PBGC Technical Update 10-3, the impact 

of reducing adjustable benefits is reflected by adding the unamortized portion of the value 

of affected benefits (VAB) to the most recent year’s unfunded vested benefits pool.

Presumptive Method ($ 000) 

April 30, 2017 2016 2015 2014 2013

Vested benefits interest 7.50% 7.50% 7.50% 7.50% 7.50%

Vested benefits 2,185,387 2,089,265 1,986,840 1,883,082 2,081,918

less: Asset value* 781,239 821,814 859,594 883,024 861,607

UVB 1,404,148 1,267,451 1,127,246 1,000,058 1,220,311

Unamortized VAB 212,515 223,293 233,318 242,642 2,528

UVB + VAB 1,616,663 1,490,744 1,360,564 1,242,700 1,222,839

* Actuarial value

** Includes VAB.

An employer withdrawing 

during the coming year may

have withdrawal liability

CPTF-DV000744

I 

3,000,000 

2,500,000 ... & ,,. ... .... 

Assets• ,,. .... & 

~2,000,000 ,,. 

--/J) 

!1 ,500,000 -+-Vested !e 8ene1ils** 0 

~1 ,000,000 

i - - - n

_ 500,000 - I 

0 

201 7 2016 2015 2014 2013 

I 

Plan Year Emling 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 13 

 

CONTRIBUTION ALLOCATION

The following allocation charts illustrate how the 

expected contribution rate for the coming plan year 

will be “spent” to pay for benefits being earned in the 

current year, plan expenses, and funding of past 

unfunded liabilities.

Contribution Allocation as of May 1, 2017

Total Average Expected Contribution Rate $15.50

Contribution Allocation as of May 1, 2016

Total Average Expected Contribution Rate $15.55

These graphs show how 

the contributions are

being spent

CPTF-DV000745

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 14 

 

FUNDING STANDARD ACCOUNT PROJECTION

The funding standard account (FSA) was 

established by ERISA as a means of determining 

compliance with minimum funding standards. 

The FSA is hypothetical in the sense that it does 

not represent actual assets held by a custodian. 

Rather, a positive FSA balance (called a “credit balance”) means that the plan has 

exceeded minimum funding standards on a cumulative basis, while a negative balance 

(called a “funding deficiency”) means that the plan has fallen short of such standards.

Actuaries must project the plan’s credit balance each year in order to determine PPA status. 

If the credit balance is projected to be negative in a future year, the plan could be forced 

into yellow (endangered) or red (critical) status depending how far into the future the 

projected funding deficiency is. The plan’s credit balance projection appears below.

(2,500)

(2,000)

(1,500)

(1,000)

(500)

0

20162017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041

Credit Balance ($ millions)

Year Ending

Current year

Last year

The funding standard 

account projection is a major 

driver of PPA status

CPTF-DV000746

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 15 

 

FUNDED RATIO PROJECTION

The funded ratio is defined as the actuarial value 

of plan assets divided by the plan’s liabilities for 

accrued benefits. Along with the funding standard 

account projection, funded ratio is one of the two 

major drivers of PPA funded status. In order for a 

plan to enter the green zone (also called “safe” or “not endangered or critical”) the funded 

ratio must be at least 80%. The projection of the funded ratio appears below.

The plan’s funded ratio is a 

major driver of PPA status

CPTF-DV000747

80% 

70% 

60% 

d> 

:::, 

('O 50% ·,= 

4) 

u 40% ... 

d> 

Q. 30% 

~ 

§ 20% 

u.. 10% 

0% co t-- co en Cl .... N (") 

.... .... .... .... N N N N Cl Cl Cl Cl Cl Cl Cl Cl 

N N N N N N N N 

United Actuarial Services, Inc. 

.,,. <n N N Cl Cl 

N N 

cot-- co mo.- NMv<nco t--como .- N N N NM MM MM MM MM M v v Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl Cl NNNNNNNNNNNNNNNN 

Year Beginning 

--Current year 

--Last year 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 16 

 

PPA FUNDING STATUS REPORT

The Pension Protection Act of 2006 (PPA), as amended 

by the Multiemployer Pension Reform Act of 2014 

(“MPRA”), requires all multiemployer pension plans to 

obtain an annual status certification. The possible 

statuses are: “Endangered”, “Seriously Endangered”, “Critical”, “Critical and Declining” or 

none of these. As the plan’s actuary, we must complete the status certification within 90 

days of the beginning of the plan year, and we must also certify whether or not the plan has 

made scheduled progress if its funding improvement or rehabilitation period has 

begun. The criteria for these determinations are outlined in Appendix D. Due to the timing 

requirement affecting PPA certifications, they are performed based on data different from 

that used in this report (see certification letter for additional details). The results are 

summarized below. 

Description

Values Used for PPA Certification

2017 2016

Funded ratio 36.4% 38.9%

Date of first projected funding deficiency

With extensions 4/30/2018 4/30/2017

Without extensions 4/30/2018 4/30/2017

Years of benefit payments in assets 8+ 8+

Certified PPA status Critical Critical

Making progress under FIP/RP Yes Yes

Projected PPA Status 2017 2018 2019 2020 2021 2022 2023 2024

20252026202720282029203020312032203320342035203620372038203920402041

Year Beginning

Safe

Endangered

Seriously Endangered

Critical

Critical and Declining

Safe (special rule)

The plan is in Critical 

status for 2017

CPTF-DV000748

• 

• 

• 

I I I I I I I I I I I I I I I I I I I I I I I I I : I I I I I I I I I I I I I I I I I I I I I I I I I I 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 17 

 

ULTIMATE FUNDED STATUS

An actuarial valuation deals primarily with the ability 

of the plan to meet Internal Revenue Code 

requirements now and in the near future. As such, it 

is heavily focused on current plan assets and 

liabilities. But it is also important to keep in mind the 

true purpose of the plan funding—that is, to accumulate sufficient assets to pay the benefits 

that the plan has promised to its participants. The chart below looks at this long-term 

funding adequacy. To the current plan assets we add the present value of all future 

contributions expected to be made for the current plan participants. To the value of the 

plan’s liabilities for benefits that have been previously earned we add the present value of 

all the future benefits the current plan participants are expected to earn through their future 

service. Ideally these ultimate asset and liability values will be approximately equal.

Neither of these amounts reflect the effect of future new participants or future contribution 

rate increases to the plan. Generally new entrants generate greater future contributions 

than benefits, so they represent a net positive to the actual future funding shown here. 

Ultimate funded status is a 

snapshot measure of 

contribution sufficiency

CPTF-DV000749

2,500,000 ...------5-8_% ______ 59- %------,,-59,,...,%----------,5c-c8--,-%,---

2,000,000 ---

~ 

';; 1,500,000 --- ,:: 

16 

!a 

0 

.:: 1,000,000 

500,000 

0 

2017 

• M arketValue of Assets 

• PV Future Contributions 

United Actuarial Services, Inc. 

2016 2015 2014 

• PV Current Benefits 

• PV Future Benefits 
Summary of Results 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2017 Actuarial Valuation 

STRESS AND SENSITIVITY ANALYSIS 

The table below illustrates 

the impact on the plan when 

experience varies from key 

assumptions 

Currently, the Plan projects its first critical and 

declining status certification in 2018. Considering 

that experience rarely matches our assumptions 

exactly, we developed the table below to 

demonstrate the impact that variations in certain 

key assumptions would have on the initial critical 

and declining certification date and on the date of 

projected insolvency. We examined future hours assumptions equal to the baseline , 10% 

lower, and 10% higher. We examined asset returns for the 2017-18 plan year of 10.00%, 

7.50%, 4.00%, and 0.00%. All results included the impact of a lower asset return of 6.60% 

for the next 10 years and 7.50% thereafter. Stochastic modeling is also available for a more 

detailed analysis of sensitivity to asset returns. 

Return for the 2017-18 PY 

(6.60% next 10 yrs, 7.50% thereafter) 

Hours Assumption Funding Stats I 10.00% I 7.50% I 4.00% I 0% 

10% Lower 

8,280,000 in 2017-18 First Year C&D: 2018 2018 2018 2018 7,650,000 in 2018-19 

7,425,000 in 2019-20 First Year Insolvent: 2034 2033 2033 2032 7,200,000 in 2020-21 

6,300,000 thereafter 

Baseline 

9,200,000 in 2017-18 First Year C&D: 2018 2018 2018 2018 8,500,000 in 2018-19 

8,250,000 in 2019-20 First Year Insolvent: 2037 2037 2036 2035 8,000,000 in 2020-21 

7,000,000 thereafter 

10% Higher 

10,120,000 in 2017-18 First Year C&D: 2027 2025 2021 2019 9,350,000 in 2018-19 

9,075,000 in 2019-20 First Year Insolvent: 2047 2045 2042 2040 8,800,000 in 2020-21 

7,700,000 thereafter 

United Actuarial Services, Inc. 

Page 18 

CPTF-DV000750 
Page 19

PART II: SUPPLEMENTAL STATISTICS

CPTF-DV000751

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 20 

 

PARTICIPANT DATA RECONCILIATION

The participant data reconciliation table below provides information as to how the plan’s 

covered population changed since the prior actuarial study. Such factors as the number of 

participants retiring, withdrawing and returning to work have an impact on the actuarial 

position of the pension fund.

Participants 

Valued As Active

Inactive 

Vested

Receiving 

Benefits

Total 

Valued

May 1, 2016 5,246 6,495 7,290 19,031

Change due to:

New hire 709 - - 709

Rehire 302 (140) - 162

Termination (955) 262 - (693)

Disablement (5) (42) 47 - 

Retirement (80) (109) 189 - 

Death (15) (36) (289) (340)

Cash out - (2) - (2)

New beneficiary - 24 97 121

Certain pd. expired - - (4) (4)

Data adjustment 6 13 (16) 3

Net change (38) (30) 24 (44)

May 1, 2017 5,208 6,465 7,314 18,987

CPTF-DV000752

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 21 

 

HOURS WORKED DURING PLAN YEAR

Hours Worked Per Participant

Plan Year Ending 

April 30, 2017 Number Hours Worked

Average 

Hours Worked

Actives

Vested 3,716 6,223,729 1,675

Non-vested, continuing 450 545,255 1,212

Non-vested, new entrant 1,042 428,504 411

Total active 5,208 7,197,488 1,382

Others 103 68,834 668

Total for plan year 5,311 7,266,322 1,368

History of Total Actual and Expected Hours Worked (Thousands)

Plan Year Ending 

April 30, 2018 2017 2016 2015 2014

Expected hours valuation 6,825 6,908 5,983 5,953 5,422

Expected hours PPA cert 7,500 8,500 8,000 7,500 7,500

Actual hours worked n/a 7,266 7,306 6,772 6,202

History of Average Actual and Expected Hours Worked per Participant

CPTF-DV000753

I 

I 

1,800 -,------------------------, 

1,600 +---------------::11--~~==;j 

1,400 +--~,__-... _,,,,~,=....- -=---~=--------l 

1,200 

1,000 +------------------------1 

800 +------------------------1 

600 

400 ~ ----------------------1 

200 +------------------------1 

o---~--~--~--~--~--~----; 

2011 2012 2013 2014 2015 2016 2017 2018 

United Actuarial Services, Inc. 

- vested Avg Hrs 

- vested Hr Assump 

- Non-VstAvg Hrs 

........ Non-Vst Hr Assump 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 22 

 

CONTRIBUTIONS MADE DURING PLAN YEAR

Employer Credited Contributions Reported in Employee Data

Plan Year Ending 

April 30, 2017 Number

Credited 

Contributions 

Reported

Actives

Vested 3,716 $ 36,589,694

Non-vested, continuing 450 2,395,235

Non-vested, new entrant 1,042 1,795,941

Total valued as active 5,208 40,780,870

Others 103 403,941

Total for plan year 5,311 $ 41,184,811

Average credited hourly contribution rate $ 5.67

Comparison with Audited Employer Contributions

Employer credited contributions reported in data $ 41,184,811

Adjusted total employer contributions reported* $ 111,611,954

Total audited employer contributions $ 106,706,279

Percent reported 105%

* Adjusted to reflect the 63% discounted portion of contributions that are not credited 

for benefit accrual purposes.

History of Actual and Expected Total Contributions Received

CPTF-DV000754

1 60.0 -,-------------------------, 

140.0 +--------------------------< 

120.0 +----------------,-, 

tA 00.0 +-------------....__;;;._..-""'"":::i C 

C) 

§ 80.0 +------,---,----~ 2 

6 0. 0 +--'9'==~...:.a:,--: 

40.0 

20.0 

0.0 ......... - ............ - ~ - ~~~~~ ~ - ..--'-- ..--'-- --.--'-- ___...- --.---'- --< 

2008 2009 2010 201 1 2012 2013 201 4 201 5 2016 201 7 2018 

United Actuarial Services, Inc. 

Expected Contr 

- Valuation 

Expected Contr 

-PPACert 

-+-Actual Co ntr 
Active Partici 

A e <1 

< 25 113 

25-29 103 

30-34 90 

35-39 86 

40-44 82 

45-49 70 

50-54 64 

55-59 34 

60-64 11 

65-69 4 

70+ 1 

Totals 658 

Unrecorded 

DOB 48 

Total 

Active 

Lives 706 

Supplemental Statistics 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2017 Actuarial Valuation 

ACTIVE INFORMATION 

e and Service as of Ma 1, 2017 

Years of Service 

1-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40+ Total 

228 16 - - - - - - - 357 

222 124 21 - - - - - - 470 

173 134 131 24 - - - - - 552 

166 135 150 143 24 - - - - 704 

95 89 118 238 119 6 - - - 747 

90 77 126 207 150 79 12 - - 811 

65 66 92 194 156 117 132 2 - 888 

33 38 71 100 94 82 35 1 - 488 

9 15 19 31 25 13 1 - 1 125 

- 1 - 3 - 1 - 1 - 10 

- - - - - - - - - 1 

1,081 695 728 940 568 298 180 4 1 5,153 

7 - - - - - - - - 55 

1 088 695 728 940 568 298 180 4 1 5 208 

Page 23 

United Actuarial Services, Inc. 

CPTF-DV000755 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 24 

 

INACTIVE VESTED INFORMATION

Inactive Vested Participants by Age as of May 1, 2017

Age Group Number

Estimated Deferred 

Vested Benefits*

< 30 47 $ 4,296

30-34 234 59,827

35-39 675 324,893

40-44 981 632,107

45-49 1,109 809,306

50-54 1,304 1,037,576

55-59 1,127 772,817

60-64 776 428,171

65-69 178 54,702

70+ 20 6,084

Totals 6,451 4,129,779

Unrecorded birth date 14 1,564

Total inactive vested lives 6,465 $ 4,131,343

* Amount payable at assumed retirement age as used in the valuation process.

CPTF-DV000756

I 

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 25 

 

RETIREE INFORMATION

Benefits Being Paid by Form of Payment as of May 1, 2017

Monthly Benefits Being Paid

Form of Payment Number Total Average Smallest Largest

Life only 1,869 $ 3,323,070 $ 1,778 $ 33 $ 8,038

Certain & life 381 588,605 1,545 31 7,679

Joint & survivor 2,950 6,191,888 2,099 25 8,846

Disability 526 791,254 1,504 46 4,916

Beneficiaries 1,588 1,284,248 809 11 6,584

Totals 7,314 $ 12,179,065 $ 1,665 $ 11 $ 8,846

Retirees by Age and Form of Payment as of May 1, 2017

Form of Benefits Being Paid

Age

Group

Life

Only

Certain 

& Life

Joint & 

Survivor Disability Total

< 40 - - - 10 10

40-44 - - - 25 25

45-49 - - - 54 54

50-54 2 - 4 130 136

55-59 160 30 273 226 689

60-64 312 65 527 81 985

65-69 421 79 755 - 1,255

70-74 320 63 550 - 933

75-79 268 42 419 - 729

80-84 178 43 232 - 453

85-89 124 35 141 - 300

90-94 67 21 45 - 133

95+ 17 3 4 - 24

Totals 1,869 381 2,950 526 5,726

plus: Beneficiaries 1,588

Total receiving benefits 7,314

CPTF-DV000757

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 26 

 

RETIREE INFORMATION (CONT.)

Age of Participants Retired During Last 5 Plan Years

(excludes beneficiaries and disability retirements)

Age at Plan Year Ending April 30,

Retirement 2017 2016 2015 2014 2013

< 45 - - - - - 

45 - - - - - 

46 - - - - - 

47 - - - - - 

48 - - - - - 

49 - - - - - 

50 - - - - 1

51 - - - - 4

52 - 1 - - 1

53 - 1 - 1 2

54 - - - 1 5

55 33 54 20 30 25

56 13 23 15 10 11

57 10 12 4 6 7

58 10 13 5 8 6

59 7 3 10 7 9

60 8 8 5 8 7

61 5 8 1 4 7

62 27 19 12 42 50

63 5 7 3 15 16

64 4 5 2 1 9

65 43 30 28 11 7

66+ 15 11 8 8 10

Totals 180 195 113 152 177

History of Average Retirement Ages

(excludes beneficiaries and disability retirements)

Retirement During Plan Year 

Ending In: Number

Average 

Retirement Age

2017 180 61.1

2016 195 59.7

2015 113 60.7

2014 152 60.3

2013 177 60.2

CPTF-DV000758

United Actuarial Services, Inc. 
Page 27

PART III: ASSET INFORMATION

CPTF-DV000759

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 28 

 

MARKET AND ACTUARIAL FUND VALUES

Asset information extracted from the fund’s financial statements audited by Bultynck & Co., 

P.L.L.C. 

Market/Actuarial Value of 

Fund Investments

as of April 30, 2017 2016 2015

Invested assets

Domestic common stocks $ 80,476,728 $ 73,147,576 $ 109,602,331

Foreign common stocks 4,116,213 2,894,880 3,563,633

Mutual funds 220,011,130 216,298,321 223,646,410

Corporate securities 6,194,578 - - 

Government securities 2,745,741 - - 

Mortgage-backed corp. secur. 271,648 3 3

Mortgage-backed GSE secur. 229,070 - - 

Real estate investment trusts 2,509,454 2,456,837 2,820,288

Common/collective trusts 8,915,967 9,361,635 8,629,917

Hedge funds 64,019,094 61,305,433 51,349,384

Private equity 143,080,092 134,860,103 153,815,431

Real estate 166,638,915 170,679,611 156,929,964

Cash 19,323,106 11,217,834 16,988,050

Cash equivalents 7,227,063 15,686,707 8,901,997

Prepaid expenses 684,481 9,043,907 688,351

726,443,280 706,952,847 736,935,759

Net receivables* 7,796,517 5,707,381 9,502,919

Market value $ 734,239,795 $ 712,660,227 $ 746,438,678

Fund assets - Actuarial value 

Market value $ 734,239,795 $ 712,660,227 $ 746,438,678

less: Deferred investment

gains and (losses) (46,999,149) (109,153,386) (113,154,984)

Actuarial value $ 781,238,944 $ 821,813,613 $ 859,593,662

Actuarial value as a 

percentage of market value 106.40% 115.32% 115.16%

* Equals receivables, less any liabilities

CPTF-DV000760

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 29 

 

FLOW OF FUNDS

Asset information extracted from the fund’s financial statements audited by Bultynck & Co., 

P.L.L.C. 

Plan Year Ending 

April 30, 2017 2016 2015

Market value at beginning of

plan year $ 712,660,227 $ 746,438,678 $ 747,281,896

Additions

Employer contributions 106,706,279 111,258,164 106,709,394

Net investment income* 76,301,511 (1,590,827) 32,272,370

Other income 97,527 56,937 1,257,398

183,105,317 109,724,274 140,239,162

Deductions

Benefits paid 157,611,626 139,232,507 137,382,422

Net expenses* 3,914,123 4,270,218 3,699,958

161,525,749 143,502,725 141,082,380

Net increase (decrease) 21,579,568 (33,778,451) (843,218)

Adjustment - - - 

Market value at end of

plan year $ 734,239,795 $ 712,660,227 $ 746,438,678

Cashflow

Contr.-ben.-exp. (54,819,470) (32,244,561) (34,372,986)

Percent of assets -7.47% -4.52% -4.60%

Estimated net investment return

On market value 11.13% -0.22% 4.42%

On actuarial value 1.78% -0.66% 1.12%

* Investment expenses have been offset against gross investment income.

CPTF-DV000761

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 30 

 

INVESTMENT GAIN AND LOSS

Investment Gain or Loss

Plan Year Ending April 30, 2017

Expected market value at end of plan year

Market value at beginning of plan year $ 712,660,227

Employer contributions and non-investment income 106,803,806

Benefits and expenses paid (161,525,749)

Expected investment income (at 7.50% rate of return) 51,397,444

709,335,728

Actual market value at end of plan year 734,239,795

less: Expected market value 709,335,728

Investment gain or (loss) $ 24,904,067

History of Gains and (Losses)

Plan Year Investment

Ending Gain

April 30, or (Loss)

2017 $ 24,904,067

2016 (56,366,691)

2015 (22,531,938)

2014 20,961,778

2009 (282,819,686)

Deferred Investment Gains and (Losses)* 

Plan Year

Ending Amount of Gain or (Loss) Deferred as of April 30,

April 30, 2017 2018 2019 2020

2017 $ 19,923,254 $ 14,942,440 $ 9,961,627 $ 4,980,813

2016 (33,820,015) (22,546,677) (11,273,338) - 

2015 (9,012,775) (4,506,388) - - 

2014 4,192,356 - - - 

2009 (28,281,969) - - -

Totals $ (46,999,149) $ (12,110,625) $ (1,311,711) $ 4,980,813

* Gains and (Losses) for the plan years ending 2010, 2011, 2012, and 2013 have been fully 

recognized.

CPTF-DV000762

I 

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 31 

 

RATE OF RETURN ON FUND ASSETS

Historical Rates of Net Investment Return

Average Rates of Net Investment Return (dollar weighted)

Return on Market Value Return on Actuarial Value

Period Ending April 30, Period Ending April 30,

Period 2017 2016 2017 2016

One year 11.13% -0.22% 1.78% -0.66%

5 years 6.36% 3.25% 3.11% 1.54%

10 years 2.02% 2.29% 2.93% 3.50%

15 years 3.80% 2.73% 2.32% 2.58%

20 years 4.49% 4.89% 4.95% 5.43%

CPTF-DV000763

25% -----------------------------------

20% -t-1-----------------------------------

5% 

0% +-----\----\------,1/-- --\{-----.._--\-/--l---\~l-l/-----~ ~ ,,L- r-----=-~M:-:--a~~-e~t~V~a~lu_e __ 

-10% 

-15% 

-20% 

-25% ro 0) 0 0 N (") 'SJ" 0) 0) 0 0 0 0 0) 0) 0 

N 0 N 0 N 0 N 0 N 

I 

United Actuarial Services, Inc. 

I[) 

0 

0 

N 

<D t--COa>O N(V') 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N 

Plan Year Ending 

,::;;f" L{) (D r---

0 0 0 0 N N N N 

-.-Actuarial Value 

-+-Expected R etu m 
Page 32

PART IV: ENROLLED ACTUARY’S REPORT

CPTF-DV000764

United Actuarial Services, Inc. 
Enrolled Actuary's Report 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2017 Actuarial Valuation 

NORMAL COST/ACTUARIAL LIABILITY 

Normal Cost as of May 1, 

Active participants - service prior to valuation date $ 

Active participants - service after valuation date 

Anticipated administrative expenses (beg. of year) 

Total normal cost $ 

Unfunded Actuarial Liability as of May 1, 

Actuarial liability 

Participants currently receiving benet;ts $ 

Inactive vested participants 

Active participants - service prior to val. date 

Active e,articie,ants - service after val. date 

less: Fund assets (actuarial value) 

Unfunded actuarial liability (not less than 0) $ 

United Actuarial Services, Inc. 

Page 33 

CPTF-DV000765 

2017 

- $ 

14, 11 1,595 

4, 144,578 

18,256,173 $ 

2017 

1,472,456,622 $ 

282,361,270 

444,225,288 

2,199,043, 180 

781,238,944 

1,417,804,236 $ 

2016 

13,839,136 

4,144,578 

17,983,714 

2016 

1,422,489,365 

269,249,766 

432, 197, 122 

2,123,936,253 

821,813,613 

1,302,122,640 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 34 

 

ACTUARIAL LIABILITY RECONCILIATION/PROJECTION

Reconciliation of Unfunded Actuarial Liability

Expected unfunded actuarial liability as of April 30, 2017

Unfunded actuarial liability as of May 1, 2016 $ 1,302,122,640

Normal cost (including expenses) 17,983,714

Actual contributions (106,706,279)

Interest to end of plan year 95,006,497

1,308,406,572

Increase (decrease) due to:

Experience (gain) or loss 62,924,769

Plan amendment - 

Change in actuarial assumptions 46,472,895

Change in actuarial method - 

Net increase (decrease) 109,397,664

Unfunded actuarial liability as of May 1, 2017 $ 1,417,804,236

Projection of Actuarial Liability to Year End

Actuarial liability as of May 1, 2017 $ 2,199,043,180

Expected increase (decrease) due to:

Normal cost (excluding expenses) 14,111,595

Benefits paid (153,305,096)

Interest on above (4,690,571)

Interest on actuarial liability 164,928,239

Net expected increase (decrease) 21,044,167

Expected actuarial liability as of April 30, 2018 $ 2,220,087,347

CPTF-DV000766

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 35 

 

FUNDED RATIOS

Present Value of Accumulated Benefits/

Funded Ratios

Actuarial Study as of May 1, 2017 2016

Present value of vested accumulated benefits

Participants currently receiving benefits $ 1,472,456,622 $ 1,422,489,365

Inactive vested participants 279,647,779 267,105,220

Active participants 433,282,347 416,104,082

Total 2,185,386,748 2,105,698,667

Nonvested accumulated benefits 13,656,432 18,237,586

Present value of all accumulated benefits $ 2,199,043,180 $ 2,123,936,253

Market value of assets $ 734,239,795 $ 712,660,227

Funded ratios (Market value)

Vested benefits 33.6% 33.8%

All accumulated benefits 33.4% 33.6%

Actuarial value of assets $ 781,238,944 $ 821,813,613

Funded ratios (Actuarial value used for PPA)

Vested benefits 35.7% 39.0%

All accumulated benefits 35.5% 38.7%

Interest rate used to value benefits 7.50% 7.50%

CPTF-DV000767

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 36 

 

FUNDING PERIOD

The funding period is the approximate number of years that would be required to completely 

fund the unfunded entry age normal actuarial liability if future plan experience occurs 

according to the assumptions. The funding period is an indicator of the long term financial 

soundness of the plan. Historically, funds often targeted a maximum funding period of up to 

20 years. Today, asset losses are being paid off over a maximum of 15 years and are the 

primary driver for ERISA minimum funding. An ultimate target of no more than 10 years is 

recommended. A lower, more conservative funding period target can be chosen. As the 

funding period drops, the risk of having future funding issues also diminishes.

Funding Period Calculation 

Actuarial Study as of May 1, 2017 2016

Unfunded actuarial liability

Actuarial liability $ 2,290,411,786 $ 2,212,654,771

less: Fund assets (actuarial value) 781,238,944 821,813,613

1,509,172,842 1,390,841,158

Funds available to amortize unfunded

Anticipated contributions (beg. of yr.) 101,948,474 103,551,202

less: Normal cost (including expenses) 6,695,686 6,731,043

$ 95,252,788 $ 96,820,159

Funding period (years) * * 

* Anticipated contributions are insufficient to pay normal cost and amortize unfunded liability.

CPTF-DV000768

United Actuarial Services, Inc. 
Enrolled Actuary's Report 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2017 Actuarial Valuation 

Current Liability as of May 1, 2017 

Vested current liability 

Participants currently receiving benet;ts 

Inactive vested participants 

Active participants 

Nonvested current liability 

Inactive vested participants 

Active participants 

Total current liability 

Proj ection of Current Liability to Year End 

Current liability as of May 1, 2017 

Expected increase (decrease) due to: 

Benefits accruing 

Benefits paid 

Interest on above 

Interest on current liability 

Net expected increase (decrease) 

Expected current liability as of April 30, 2018 

United Actuarial Services, Inc. 

Page 37 

CPTF-DV000769 

CURRENT LIABILITY 

$ 2,204,910,506 

590,634,011 

958,302,054 

3,753,846,571 

3,210,614 

18,263,141 

21,473,755 

$ 3,775,320,326 

$ 3,775,320,326 

34,343,276 

(153,305,096) 

(1,290,433) 

115,147,270 

(5, 104,983) 

$ 3,770,215,343 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 38 

 

FUNDING STANDARD ACCOUNT

Funding Standard Account

Plan Year Ending April 30, 

2018

(Projected)

2017

(Final)

Charges

Prior year funding deficiency $ 258,325,344 $ 190,015,687

Normal cost (including expenses) 18,256,173 17,983,714

Amortization charges (see Appendix C) 215,348,678 203,886,364

Interest on above 36,894,765 30,891,432

Total charges 528,824,960 442,777,197

Credits

Prior year credit balance - - 

Employer contributions 142,582,667 106,706,279

Amortization credits (see Appendix C) 68,599,149 68,599,149

Interest on above 10,491,790 9,146,425

ERISA full funding credit - - 

Total credits 221,673,606 184,451,853

Credit balance (credits less charges) $ (307,151,354) $ (258,325,344)

CPTF-DV000770

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 39 

 

FUNDING STANDARD ACCOUNT WITHOUT AMORTIZATION EXTENSION

The Funding Standard Account on the previous page has been developed using an 

amortization extension approved by the IRS under §412(e) or §431(d) of the Code. We are 

required to report the dollar difference between the minimum required contribution with 

extension and without extension on the Schedule MB. 

Funding Standard Account

Plan Year Ending April 30, 

2018

(Projected)

2017

(Final)

Charges

Prior year funding deficiency $ 555,150,077 $ 455,964,615

Normal cost (including expenses) 18,256,173 17,983,714

Amortization charges (see Appendix C) 206,359,778 214,053,463

Interest on above 58,482,453 51,600,135

Total charges 838,248,481 739,601,927

Credits

Prior year credit balance - - 

Employer contributions 142,582,667 106,706,279

Amortization credits (see Appendix C) 68,599,149 68,599,149

Interest on above 10,491,790 9,146,422

ERISA full funding credit - - 

Total credits 221,673,606 184,451,850

Credit balance (credits less charges) $ (616,574,875) $ (555,150,077)

CPTF-DV000771

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 40 

 

FULL FUNDING LIMIT

Projection of Assets 

for Full Funding Limit

Market

Value

Actuarial

Value

Asset value as of May 1, 2017 $ 734,239,795 $ 781,238,944

Expected increase (decrease) due to:

Investment income 49,157,794 52,682,730

Benefits paid (153,305,096) (153,305,096)

Expenses (4,300,000) (4,300,000)

Net expected increase (decrease) (108,447,302) (104,922,366)

Expected value as of April 30, 2018* $ 625,792,493 $ 676,316,578

* Ignoring expected employer contributions (as required by regulation).

Full Funding Limit 

as of April 30, 2018

For Minimum 

Required

For Maximum 

Deductible

ERISA full funding limit (not less than 0)

Actuarial liability $ 2,220,087,347 $ 2,220,087,347

less: Assets (lesser of market or actuarial) 625,792,493 625,792,493

plus: Credit balance (w/interest to year end) - n/a

1,594,294,854 1,594,294,854

ERISA full funding limit without extension (not less than 0)

Actuarial liability 2,220,087,347 n/a

less: Assets (lesser of market or actuarial) 625,792,493 n/a

plus: Credit bal. w/o ext. (w/int. to year end) - n/a

1,594,294,854 n/a

Full funding limit override 

(not less than 0)

90% of current liability 3,393,193,809 3,393,193,809

less: Assets (actuarial value) 676,316,578 676,316,578

2,716,877,231 2,716,877,231

Full funding limit (greater of ERISA limit and full funding override)

With amortization extension $ 2,716,877,231 $ 2,716,877,231

Without amortization extension $ 2,716,877,231 n/a

CPTF-DV000772

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 41 

 

MINIMUM REQUIRED CONTRIBUTION AND FULL FUNDING CREDIT

Minimum Required Contribution

Plan Year Beginning May 1, 2017

Without 

Extension

With 

Extension

Minimum funding cost

Normal cost (including expenses) $ 18,256,173 $ 18,256,173

Net amortization of unfunded liabilities 137,760,629 146,749,529

Interest to end of plan year 11,701,257 12,375,424

167,718,059 177,381,126

Full funding limit 2,716,877,231 2,716,877,231

Net charge to funding std. acct. (lesser of above) 167,718,059 177,381,126

less: Credit balance with interest to year end (596,786,333) (277,699,745)

Minimum Required Contribution (not less than 0)* $ 764,504,392 $ 455,080,871

Effect of extension $ 309,423,521

* Excise taxes that would otherwise apply in the case of a negative credit balance are waived if the 

provisions of the rehabilitation plan are followed and the plan continues to make scheduled progress

Full Funding Credit to Funding Standard

Account Plan Year Ending April 30, 2018

Without 

Extension

With 

Extension

Full funding credit (not less than 0)

Minimum funding cost (n.c., amort., int.) $ 167,718,059 $ 177,381,126

less: full funding limit 2,716,877,231 2,716,877,231

$ - $ - 

CPTF-DV000773

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 42 

 

MAXIMUM DEDUCTIBLE CONTRIBUTION

The maximum amount of tax-deductible employer contributions made to a pension plan is 

determined in accordance with Section 404(a) of the Internal Revenue Code. For a 

multiemployer pension plan, Section 413(b)(7) of the Internal Revenue Code and IRS 

Announcement 98-1 provide that, if anticipated employer contributions are less than the 

deductible limit for a plan year, then all employer contributions paid during the year are 

guaranteed to be deductible. If anticipated employer contributions exceed the deductible 

limit, the Trustees have two years from the close of the plan year in question to retroactively 

improve benefits to alleviate the problem. 

Maximum Deductible Contribution

Plan Year Beginning May 1, 2017

Preliminary deductible limit

Normal cost (including expenses) $ 18,256,173

10-year limit adjustment (using “fresh start” alternative) 192,143,372

Interest to end of plan year 15,779,966

226,179,511

Full funding limit 2,716,877,231

Maximum deductible contribution override

140% of vested current liability projected to April 30, 2018 5,248,278,875

less: Actuarial value of assets projected to April 30, 2018 676,316,578

4,571,962,297

Maximum deductible contribution* $ 4,571,962,297

Anticipated employer contributions $ 105,771,542

* Equals the lesser of the preliminary deductible limit and the full funding limit, but not less than the 

maximum deductible contribution override.

CPTF-DV000774

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 43 

 

HISTORY OF UNFUNDED VESTED BENEFITS

Presumptive Method

April 30, 

Vested 

Benefits

Interest Rate

Value of 

Vested 

Benefits Asset Value*

Unfunded 

Vested 

Benefits

Unamortized 

Portion of

VAB

1998 8.00% 810,023,495 920,624,247 (110,600,752)

1999 8.50% 850,699,898 1,012,396,059 (161,696,161)

2000 8.50% 938,572,993 1,111,005,014 (172,432,021)

2001 8.50% 1,029,784,599 1,179,424,453 (149,639,854)

2002 8.50% 1,107,078,442 1,199,112,035 (92,033,593)

2003 8.50% 1,184,327,138 1,096,149,080 88,178,058

2004 8.50% 1,275,453,703 1,135,029,517 140,424,186

2005 8.50% 1,362,988,818 1,078,562,590 284,426,228

2006 8.50% 1,443,959,383 1,050,435,719 393,523,664

2007 8.00% 1,611,741,457 1,050,682,726 561,058,731

2008 8.00% 1,694,967,827 1,080,411,426 614,556,401

2009 8.00% 1,777,493,533 925,248,368 852,245,165

2010 8.00% 1,784,003,335 1,016,672,140 767,331,195

2011 8.00% 1,868,338,612 967,427,492 900,911,120 2,737,290

2012 8.00% 1,932,955,484 869,984,478 1,062,971,006 2,636,477

2013 7.50% 2,081,917,679 861,607,040 1,220,310,639 2,527,599

2014 7.50% 1,883,082,305 883,023,972 1,000,058,333 242,642,462

2015 7.50% 1,986,839,845 859,593,662 1,127,246,183 233,317,630

2016 7.50% 2,089,265,487 821,813,612 1,267,451,875 223,292,801

2017 7.50% 2,185,386,748 781,238,944 1,404,147,804 212,515,423

* Actuarial value

CPTF-DV000775

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 44 

 

TERMINATION BY MASS WITHDRAWAL

If all employers were to cease to have an obligation to contribute to the plan, the plan would 

be considered “terminated due to mass withdrawal.” In this event, the Trustees would have 

the option of distributing plan assets in satisfaction of all plan liabilities through the purchase 

of annuities from insurance carriers or payment of lump sums. If assets are insufficient to 

cover liabilities, a special actuarial valuation pursuant to Section 4281 of ERISA would be 

performed as of the end of the plan year in which the mass withdrawal occurred. If the 

Section 4281 valuation indicates the value of nonforfeitable benefits exceeds the value of 

plan assets, employer withdrawal liability would be assessed.

The ERISA Section 4281 valuation described above uses required actuarial assumptions 

that are typically more conservative than those used for valuing an on-going plan. In order 

to illustrate the impact of the mass withdrawal assumptions, we performed an illustrative 

Section 4281 valuation as if mass withdrawal had occurred during the prior plan year. The 

value of assets used below is market value without any adjustments for outstanding 

employer withdrawal liability claims. 

As required by regulation, interest rates of 2.15% for the first 20 years and 2.60% for each 

year thereafter and the GAM 94 Basic Table projected to 2027 mortality table were used.

Illustrative Section 4281 Valuation

as of April 30, 2017

Value of nonforfeitable benefits

Participants currently receiving benefits $ 2,460,401,172

Inactive vested participants 693,494,201

Active participants 1,198,610,049

Expenses (per Section 4281 of ERISA) 23,747,420

4,376,252,842

less: Fund assets (market value) 734,239,795

Value of nonforfeitable benefits in excess of (less than) fund assets $ 3,642,013,047

CPTF-DV000776

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page 45 

 

ASC 960 INFORMATION

The following displays are intended to assist the fund’s auditor in complying with Accounting 

Standards Codification 960. The results shown are not necessarily indicative of the plan’s 

potential liability upon termination.

Present Value of Accumulated Benefits

Actuarial Study as of May 1, 2017 2016

Present value of vested accumulated benefits

Participants currently receiving benefits $ 1,472,456,622 $ 1,422,489,365

Other participants 712,930,126 683,209,302

2,185,386,748 2,105,698,667

Nonvested accumulated benefits 13,656,432 18,237,586

Present value of all accumulated benefits $ 2,199,043,180 $ 2,123,936,253

Market value of plan assets $ 734,239,795 $ 712,660,227

Interest rate used to value benefits 7.50% 7.50%

Changes in Present Value of Accumulated Benefits

Present value of accumulated benefits as of May 1, 2016 $ 2,123,936,253

Increase (decrease) due to:

Plan amendment - 

Change in actuarial assumptions 46,472,895

Benefits accumulated and experience gain or loss 26,950,439

Interest due to decrease in discount period 159,295,219

Benefits paid (157,611,626)

Net increase (decrease) 75,106,927

Present value of accumulated benefits as of May 1, 2017 $ 2,199,043,180

CPTF-DV000777

United Actuarial Services, Inc. 
APPENDICES

CPTF-DV000778

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-1 

PLAN HISTORY

Origins/Purpose

The Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan was established 

effective May 1, 1957 as a result of collective bargaining agreements between the 

Carpenters’ District Council of Detroit and Vicinity and various employer associations and 

other employers working within the jurisdiction of the Carpenters’ District Council.

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management.

Effective May 1, 2002, the Interior Systems Local 1045 Resilient Pension Fund Pension 

Plan was merged with Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan. 

Employer Contributions

The Pension Plan is financed entirely by contributions from the employers as specified in 

the applicable Collective Bargaining Agreements. Contributions began May 1, 1957 at the 

rate of 3% of wages. The rate has been increased through the years. 

Reciprocity

The Trustees adopted a “Money Follows the Man” Reciprocity Agreement with other 

signatory funds within the Third District of the United Brotherhood of Carpenters and 

Joiners of America (AFL-CIO). Also, the Trustees became a party of the International’s 

Reciprocal Agreement for Carpenters Pension Funds, which includes both the Pro-Rata 

and Money Follows the Man reciprocity types.

CPTF-DV000779

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-2 

SUMMARY OF PLAN PROVISIONS

Plan year The 12-month period beginning May 1 and ending the 

following April 30

Vesting/credit year A participant shall accrue 1 vesting/credit year for each 

plan year on and after May 1, 1957, during which the 

participant is credited with 500 or more hours of service. 

500 hours of service is equivalent to 435 hours of work.

Break in service Plan year with less than 500 hours of service (435 hours 

of work)

Inactive participant No hours of service during 2 consecutive plan years

Normal retirement benefit

Eligibility Age 65 or 5th anniversary of participation, if later

Monthly amount • 4.30% of employer contributions for work performed 

prior to May 1, 2004, plus 

• 3.00% of employer contributions for work performed 

May 1, 2004 – April 30, 2007, plus 

• 1.00% of employer contributions for work performed on 

and after May 1, 2007. 

Payable for Life.

CPTF-DV000780

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-3 

SUMMARY OF PLAN PROVISIONS (CONT.) 

Contribution “discounting” Contributions that are “discounted” according to the 

following schedule are not considered in determining 

benefits.

• Contributions for work performed from June 1, 2006 

through May 31, 2007 are generally “discounted” by 

22% to 23%. 

• Contributions for work performed from June 1, 2007 

through May 31, 2008 are generally “discounted” by 

16% to 17%. Some contracts are discounted by 35%.

• Contributions for work performed from June 1, 2008 

through May 31, 2009 are generally “discounted” by 

23% to 23.5%. The Floorlayers contract is discounted 

at 28% and the Millmen and other contracts are 

discounted by 45%.

• Contributions for work performed from June 1, 2009 

through May 31, 2010 are generally “discounted” by 

37% to 37.5%. The Floorlayers contract is discounted 

at 42% and the Millmen and other contracts are 

discounted by 45%.

• Contributions for work performed on and after June 1, 

2010 are generally “discounted” by 45% to 46%. The 

Floorlayers contract is discounted at 51% and the 

Millmen and other contracts are discounted by 50%.

• Contributions for work performed on or after June 1, 

2011 are generally “discounted” by 50% to 53%. The 

Floorlayers contract is discounted at 56% and the 

Millmen and other contracts are discounted by 50%.

• Contributions for work performed on and after June 1, 

2012 are generally “discounted” at an average rate of

58%.

• Contributions for work performed on and after June 1, 

2013 are generally “discounted” at an average rate of 

63%.

CPTF-DV000781

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-4 

SUMMARY OF PLAN PROVISIONS (CONT.)

Early retirement benefit

Eligibility Age 55 and 10 credit years, has met Applicable Index 

Requirement, worked at least 435 hours in the two years 

prior to retirement. Applicable Index Requirement is 80 

points if participant had at least 76 points as of May 1, 2010; 

otherwise 85 points.

Monthly amount Normal reduced by 1/3rd of 1% for each month under age 62

(unless eligible for grandfathered exception – see below). 

Payable for life.

Eligibility Age 55 and 10 credit years, has not met Applicable Index 

Requirement, worked at least 435 hours in the two years 

prior to retirement.

Monthly amount Normal reduced by 5/9% for each month under age 62 

(unless eligible for grandfathered exception – see below). 

Payable for life.

Eligibility Grandfathered exception: Active at retirement, meets the 

Applicable Index Requirement on or before August 1, 2015

Monthly amount Early retirement benefit will not be less than normal reduced 

by 5%. Payable for life.

Vested benefit

Eligibility Three vesting years, did not work at least 435 hours in the 

two years prior to retirement

Monthly amount 20% of normal after 3 vesting years increasing 20% per year 

to 100% at 7 vesting years. Payable for life commencing at 

age 65, or reduced amount (5/9% reduction for each month 

by which commencement precedes age 65) commencing at 

early retirement age, if eligible.

CPTF-DV000782

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-5 

SUMMARY OF PLAN PROVISIONS (CONT.)

Total and permanent 

disability benefit

Eligibility Under age 62, 5 credit years, disability award from the 

Social Security Administration.

Monthly amount 75% of vested accrued normal or $260 times vested 

percentage subject to the following cap:

• Capped at $525 for credit years 5-9

• Capped at $625 for credit years 10-15

• Capped at $725 for credit years 16-19

• Capped at $1,050 for credit years 20-24

• Capped at $1,350 for 25 or more credit years

Payable until eligible for normal, early, recovery or death.

Eligibility Under age 62, less than 5 credit years, disability award from 

the Social Security Administration.

Monthly amount Lump sum payment equal to actuarial equivalent of vested 

accrued benefit.

Pre-retirement surviving 

spouse benefit

Eligibility Death of married vested participant

Monthly or lump sum 

amount

50% of participant’s joint and 50% survivor. Payable to 

spouse for life commencing at participant’s earliest 

retirement age. 

Optional forms • Joint and 50% survivor with pop-up

• Joint and 75% survivor with pop-up

• Joint and 100% survivor with pop-up

• Life-ten years certain

CPTF-DV000783

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-6 

HISTORICAL PLAN MODIFICATIONS

One-time payment

Effective date May 1, 1994

Adoption date July 18, 1994

Provisions Retirees and beneficiaries receiving benefits as of 12/1/94 

received a one-time payment on 1/1/95 equal to the 

average 12/1/94 payment ($623).

Retiree increase

Effective date January 1, 1997 (rescinded January 1, 2010)

Adoption date December 12, 1996

Provisions Retirees and spouses receiving benefits as of 12/31/96 

shall receive an increase in monthly benefits which 

corresponds to the retiree’s years of credited service as 

described below:

Years of

Credited Service

Increase in

Monthly Benefit

0 – 9 $ 50.00

10 – 19 100.00

20 – 29 125.00

30 + 150.00

Vesting schedule

Effective date May 1, 1997

Adoption date December 12, 1996

Provisions Vesting scale changed to 20% at 3 years increasing 20% 

per year to 100% at 7 years.

Vesting for non-bargained employees remained at 100% 

for 5 years.

Normal retirement increase

Effective date May 1, 1997

Adoption date November 12, 1997

Provisions Normal retirement benefit increased from 3.9% to 4.3% of 

employer contributions.

CPTF-DV000784

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-7 

HISTORICAL PLAN MODIFICATIONS (CONT.) 

Pre-retirement survivor 

annuity increase

Effective date May 1, 1997

Adoption date November 12, 1997

Provisions The pre-retirement survivor annuity increased from joint & 

50% survivor to joint and 100% survivor.

Retiree increase

Effective date May 1, 1999 (rescinded January 1, 2010)

Adoption date July 20, 2000

Provisions Retirees and beneficiaries participating in an affiliated 

healthcare plan received a $100 per month increase.

Retiree increase

Effective date May 1, 2000 (rescinded January 1, 2010)

Adoption date December 18, 2000

Provisions Retirees and beneficiaries participating in an affiliated 

healthcare plan received a $100 per month increase.

Pre-ERISA benefit

Effective date May 1, 2000

Adoption date October 19, 2000

Provisions Participants who are active on or after May 1, 2000 and 

qualify for the reinstatement of Credit Years and Vesting 

Years shall have all Plan Years of contributions that 

remained in the Fund after the participant received his 

“cash termination benefit’’ before May 1, 1976 reinstated. 

Retiree increase

Effective date July 1, 2001 (rescinded January 1, 2010)

Adoption date April 26, 2001

Provisions Retirees and beneficiaries who retired between May 1, 

2000 and July 1, 2001 and participated in an affiliated 

healthcare plan received a $100 per month increase.

CPTF-DV000785

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-8 

HISTORICAL PLAN MODIFICATIONS (CONT.) 

Plan Merger

Effective date May 1, 2002

Adoption date March 19, 2002

Provisions Resilient Floor Decorators Local #2265 Pension Fund 

was merged into the Fund.

Joint and Survivor Option

Effective date January 1, 2002

Adoption date July 18, 2001

Provisions A 75% joint and survivor option was added to the plan.

Disability and employment

Effective date January 1, 2004

Adoption date April 12, 2004

Provisions The plan was amended to allow disabled participants to 

resume employment in supervisory capacity and continue 

to receive disability payments.

Normal retirement 

decrease

Effective date May 1, 2004

Adoption date April 12, 2004

Provisions The crediting rate for employer contributions for work 

performed on and after May 1, 2004 was decreased from 

4.30% to 3.00%. Contributions for work performed prior 

to May 1, 2004 are still credited at 4.30%.

Normal retirement 

decrease

Effective date June 1, 2006 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2006 are generally 

“discounted” by 22% to 23%.

CPTF-DV000786

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-9 

HISTORICAL PLAN MODIFICATIONS (CONT.) 

Normal retirement 

decrease

Effective date May 1, 2007 

Adoption date April 17, 2007

Provisions The crediting rate for employer contributions for work 

performed on and after May 1, 2008 was decreased from 

3.00% to 1.00%. 

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2007 are generally 

“discounted” by 16% to 17%. Some contracts are 

discounted by 35%.

Change to Index 85 and 

minimum age 55

Effective date January 1, 2008

Adoption date April 17, 2007

Provisions For participants who became active on or after January 1, 

2008, the age plus service equal to 80 is changed to age 

55 and age plus service of 85.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2008 are generally 

“discounted” by 23% to 23.5%. The Floorlayers contract 

is discounted at 28% and the Millmen and other contracts 

are discounted by 45%.

CPTF-DV000787

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-10 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2009 are generally 

“discounted” by 37% to 37.5%. The Floorlayers contract 

is discounted at 42% and the Millmen and other contracts 

are discounted by 45%.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2010 are generally 

“discounted” by 45% to 46%. The Floorlayers contract is 

discounted at 51% and the Millmen and other contracts 

are discounted by 50%.

Elimination of postretirement improvements

Effective date January 1, 2010

Adoption date March 10, 2010

Provisions Post-retirement increases granted May 1, 1999; May 1, 

2000; June 1, 2001 and December 31 1996 are 

eliminated.

Change to Index 85 

Effective date May 1, 2010

Adoption date March 10, 2010

Provisions For participants who are not grandfathered (age plus 

service of at least 76 on May 1, 2010), the index 80 

requirement changed to index 85. Participants who joined 

the plan on or after May 1, 2007 must also be at least age 

55 in order to qualify for index 85.

CPTF-DV000788

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-11 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2011 are generally 

“discounted” by 52% to 53%. The Floorlayers contract is 

discounted at 56% and the Millmen and other contracts 

are discounted by 50%.

Non-credited contribution 

rate change

Effective date June 1, 2011

Adoption date July 12, 2012

Provisions The “cap” on the non-credited contribution rate was 

removed retroactive to June 1, 2011.

Terms of Reciprocity 

Agreement

Effective date June 1, 2012

Adoption date July 12, 2012

Provisions The reciprocity agreement with the Michigan Carpenters’ 

Pension Fund was modified so that only credited amounts 

are transferred back to the members’ home funds.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2012 are generally 

“discounted” by 58%. The Floorlayers contract is 

discounted at 58% and the Millmen and other contracts 

are discounted by 50%.

CPTF-DV000789

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-12 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Early retirement benefit

Effective date August 1, 2013 (retro to September 1, 2008)

Adoption date May 7, 2013

Provisions No unreduced early retirements until age 62. Participants 

can retire as early as 55 with a reduced benefit. Early 

retirement reduction will be 5/9% per month prior to age 

62 (1/3% per month if applicable Index requirement is 

satisfied). For active participants who qualify for the 

grandfather exception, the benefit will be reduced by no 

more than 5%.

Participants, surviving spouses and beneficiaries who 

entered pay status between September 1, 2008 and 

August 1, 2013 will have their benefits recalculated as if 

the new early retirement rules had been in effect at the 

time of their retirement, but the benefit will not be reduced 

by more than 5%.

Vested benefit

Effective date August 1, 2013

Adoption date May 7, 2013

Provisions Participants who fail to cure a break in service by working 

435 hours in the two years prior to retirement will have 

their benefit reduced 5/9% for each month under age 65.

CPTF-DV000790

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-13 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Disability benefit

Effective date August 1, 2013 (retro to September 1, 2008)

Adoption date May 7, 2013

Provisions Participants must now obtain a disability award from the 

Social Security Administration in order to be eligible for 

disability benefits under the pension plan. Participants 

with disability benefits in pay status as of August 1, 2013 

that commenced on or after September 1, 2008 must 

secure a Social Security disability award by August 1, 

2015 in order to retain their benefit.

Additionally, disability benefits commencing on or after 

September 1, 2008 will be capped in accordance with the 

following schedule:

Credit Years Cap on Monthly Benefit

5-9 $525

10-14 $625

15-19 $725

20-24 $1,050

25+ $1,350

Death benefits

Effective date August 1, 2013

Adoption date May 7, 2013

Provisions Pre-retirement death benefits discontinued for unmarried 

participants. Surviving spouse pre-retirement death 

benefit reduced to 50% of the joint and 50% survivor 

annuity.

Pre- and post-retirement lump sum death benefits 

discontinued.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2013 are generally 

“discounted” by 63%. 

CPTF-DV000791

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page A-14 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Suspension of benefit 

rules

Effective date August 1, 2013

Adoption date May 7, 2013

Provisions Effective for early retirements that commenced on or after 

September 1, 2008, early retirees who work any hours in 

prohibited employment will have their benefits suspended 

to the extent permitted by law.

Disability benefit

settlement

Effective date August 1, 2013

Settlement date October 18, 2016

Provisions Due to the settlement of a class action lawsuit, the 

disability benefit change effective August 1, 2013 was 

partially reversed for retirees receiving a disability benefit 

as of August 1, 2013 who had an effective date on or after 

September 1, 2008. Such retirees were restored to 95% 

of their prior disability benefit amount, and back payments 

were made retroactive to August 1, 2013.

CPTF-DV000792

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-1 

ACTUARIAL ASSUMPTIONS

The following assumptions are used throughout this report except as specifically noted 

herein.

Valuation date May 1, 2017

Interest rates

ERISA rate of return 

used to value liabilities

7.5% per year net of investment expenses.

Current liability 3.05% (in accordance with Section 412(l)(7)(C) of the 

Internal Revenue Code)

Operational expenses $ 4,300,000

Load for pop-up feature Liabilities for non-retired participants’ benefits to be paid 

after retirement increased 0.6%; liabilities for retired 

participants receiving a joint and survivor form of benefit 

increased by 1.7%.

Mortality

Assumed plan mortality 100% of the RP-2014 Blue Collar Mortality Tables for 

employees and healthy annuitants adjusted backward to 

2006 with the MP-2014 projection scale and projected 

forward using the MP-2017 projection scale.

Current liability Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males and 

females as required by Section 431(c)(6) of the Internal 

Revenue Code.

CPTF-DV000793

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-2 

ACTUARIAL ASSUMPTIONS (CONT.) 

Special withdrawal rates 

for first 5 years of 

employment

Year of 

Employment

Annual 

Withdrawal 

Rate

First .60

Second .60

Third .30

Fourth .15

Fifth .15

Withdrawal T-7 Turnover Table from The Actuary’s Pension Handbook

(less GAM 51 mortality) – specimen rates shown below:

Age

Withdrawal 

Rate

25 .0967

30 .0930

35 .0871

40 .0775

45 .0635

50 .0422

55 .0155

60 .0015

Disability 30% of the 1964 OASDI male table - specimen rates 

shown below:

Age

Disability 

Rate

25 .0003

30 .0003

35 .0005

40 .0007

45 .0011

50 .0018

55 .0030

60 .0049

CPTF-DV000794

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-3 

ACTUARIAL ASSUMPTIONS (CONT.) 

Future retirement rates

Active lives According to the following schedule:

 Age

Without

Index 80 or 85

Requirements

With

Index 80 or 85

Requirements 

55 .10 .25

56 .10 .25

57 .10 .25

58 .10 .25

59 .15 .25

60 .15 .25

61 .30 .25

62 .30 .40

63 .30 .40

64 .05 .40

65+ 1.00 1.00

Resulting in an average expected retirement age of 59.7

Inactive vested lives Age 59 if at least 10 years of service, and age 62 if less than 

10 years of service. It is assumed that inactive vested 

participants will not qualify for index 80 or 85.

Disabled lives Disability benefit assumed payable until the earliest of age 

62, recovery or death. Then normal retirement benefit 

commences.

Future Hours Worked

Vested lives 1,600 hours per year, 0 after assumed retirement age

Non-Vested lives 600 hours per year, 0 after assumed retirement age

Future hourly contribution 

rate

Based on individual’s average rate received for the most 

recent plan year increased to reflect known bargained 

increases. Additionally, beginning May 1, 2013, an average 

“discount” of 63% was assumed. 

Age of participants with 

unrecorded birth dates

Based on average entry age of participants with recorded 

birth dates and same vesting status.

Marriage assumptions 100% assumed married with the male spouse 3 years older 

than his wife.

CPTF-DV000795

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-4 

ACTUARIAL ASSUMPTIONS (CONT.) 

Inactive vested lives over 

age 70

Continuing inactive vested participants over age 70 are 

assumed deceased and are not valued.

Deferred Beneficiary 

Lump Sum Payments

Benefit payments for deferred beneficiaries of deceased 

participants that are due a lump sum once the plan emerges 

from critical status are assumed to be paid 20 years after 

the valuation date.

Social security disability 

benefit

33% of disabled participants are assumed to obtain a 

disability award from the Social Security Administration

QDRO benefits Benefits to alternate payee included with participant’s 

benefit until payment commences.

Section 415 limit 

assumptions

Dollar limit $215,000 per year

Assumed form of 

payment for those limited 

by Section 415

Qualified joint and 100% survivor annuity.

Benefits not valued Lump sum disability for participants under age 62 with less 

than 5 credit years.

CPTF-DV000796

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-5 

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS

The non prescribed actuarial assumptions were selected to provide a reasonable long 

term estimate of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for the 

selection of each non-prescribed assumption that has a significant effect on the valuation 

results.

ERISA rate of return used 

to value liabilities

Future rates of return were modeled based on the Plan’s 

current investment policy asset allocation and composite, 

long-term capital market assumptions taken from Horizon 

Actuarial’s 2017 survey of investment consultants. 

Based on this analysis, we selected a final assumed rate 

of 7.50%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities.

Mortality The RP-2014 Blue Collar Mortality Tables for employees 

and healthy annuitants adjusted backward to 2006 with the 

MP-2014 projection scale and projected forward using the 

MP-2017 projection scale was chosen as the base table for 

this population. 

The blue collar table was chosen based on the industry of 

plan participants. Finally, it was determined that no further 

adjustment was necessary in order to match projected 

deaths to actual post-retirement death experience. The 

period of actual data studied was from May 1, 2012 to April 

30, 2017.

Retirement Actual rates of retirement by age were studied for the 

period May 1, 2012 and April 30, 2015. The assumed 

future rates of retirement were selected based on the 

results of this study. No further adjustments were deemed 

necessary at this time.

Withdrawal Actual rates of withdrawal by age were studied for the 

period May 1, 2012 and April 30, 2015. The assumed 

future rates of withdrawal were selected based on the 

results of this study. No further adjustments were deemed 

necessary at this time.

Future hours worked Based on review of recent plan experience.

CPTF-DV000797

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-6 

ACTUARIAL ASSUMPTIONS USED FOR PROJECTIONS

The assumptions used for the credit balance and funding ratio projections are the same 

as used throughout the report with the following exceptions. 

Assumed return on fund 

assets

Current year projections 7.50% for the first year (5/1/2017-4/30/2018)

6.60% for the next 10 years (5/1/2018-4/30/2028) 

7.50% thereafter

Prior year projections 9.00% for the first year (5/1/2016-4/30/2017)

7.50% thereafter

Future total hours worked

Current year projections 9,200,000 for the plan year ending in 2018

8,500,000 for the plan year ending in 2019

8,250,000 for the plan year ending in 2020

8,000,000 for the plan year ending in 2021

7,000,000 thereafter

Prior year projections 7,300,000 for the plan year ending in 2017

9,000,000 thereafter

Contribution rate 

increases

Current year projections None assumed after 2013

Prior year projections None assumed after 2013

Plan changes since prior 

year

No changes from the previous year.

CPTF-DV000798

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page B-7 

ACTUARIAL METHODS

Funding method

Funding period Individual entry age normal with costs spread as a level 

dollar amount over service.

ERISA Funding Traditional unit credit cost method, effective May 1, 2003.

Population valued

Actives Eligible employees with at least one hour during the 

preceding plan year.

Inactive vested Vested participants with no hours during the preceding 

plan year.

Retirees Participants and beneficiaries in pay status as of the 

valuation date.

Asset valuation method

Actuarial value Smoothed market value effective May 1, 1997. Gains and 

losses are spread over a 5-year period. The actuarial 

value is limited to not less than 80% and not more than 

120% of the actual market value of assets in any plan year.

Unfunded vested 

benefits

For the presumptive method, actuarial value, as described 

above, is used.

Pension Relief Act of 2010 • 10-year smoothing was elected with respect to the loss 

incurred during the plan year ended in 2009.

• The 130% cap on actuarial value of assets was elected 

for the plan years beginning in 2009 and 2010.

• 30-year amortization of net investment loss was 

elected with respect to the loss incurred during the plan 

year ended in 2009. The loss was allocated to future 

years using the “prospective method” of IRS. The 

amount of each allocation is shown in Appendix C.

CPTF-DV000799

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2017 5/1/2017

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2017 Actuarial Valuation

Bases Shown: With Extension

Charges

5/1/1977 Lath. UAL 45 5 0 352,414 81,027

5/1/1977 UAL 45 5 0 21,403,562 4,921,122

5/1/1978 Amendment 45 6 0 3,917,609 776,397

5/1/1979 Amendment 45 7 0 5,204,341 914,029

5/1/1980 Amendment 45 8 0 10,148,671 1,611,770

5/1/1983 Amendment 35 1 0 826,981 826,981

5/1/1983 Assumption 35 1 0 204,140 204,140

5/1/1983 Lath. ben 35 1 0 6,648 6,648

5/1/1984 Amendment 35 2 0 1,718,053 890,073

5/1/1984 Lath. ben 35 2 0 71,022 36,794

5/1/1985 Amendment 35 3 0 5,113,433 1,829,122

5/1/1985 Lath. ben 35 3 0 18,618 6,661

5/1/1986 Amendment 35 4 0 3,827,339 1,062,993

5/1/1987 Amendment 35 5 0 12,059,682 2,772,771

5/1/1987 Method change 35 5 0 4,005,394 920,922

5/1/1989 Amendment 35 7 0 3,977,449 698,551

5/1/1990 Amendment 35 8 0 14,736,247 2,340,349

5/1/1991 Assumption 35 9 0 8,593,193 1,253,145

5/1/1992 Amendment 35 10 0 4,252,237 576,270

5/1/1993 Assumption 35 11 0 71,963 9,150

5/1/1994 Amendment 35 12 0 5,699,401 685,401

5/1/1995 Assumption 35 13 0 13,672,303 1,565,182

5/1/1996 Assumption 19,314,830 35 14 0 12,804,553 1,403,110

5/1/1997 Amendment 115,128,332 35 15 0 80,040,589 8,434,955

5/1/1997 Assumption 2,432,702 35 15 0 1,691,284 178,234

5/1/1998 Experience 20,023,624 20 1 0 1,295,493 1,295,493

5/1/1999 Amendment 22,642,031 35 17 0 17,037,039 1,679,932

5/1/1999 Experience 20,053,818 20 2 0 2,718,743 1,408,506

5/1/2000 Amendment 36,206,741 35 18 0 28,154,160 2,698,320

5/1/2000 Assumption 10,287,556 35 18 0 7,999,549 766,684

5/1/2000 Experience 5,279,519 20 3 0 1,101,756 394,108

5/1/2001 Experience 33,142,699 20 4 0 9,340,328 2,594,157

5/1/2002 Amendment 65,943,178 35 20 0 54,247,752 4,950,029

5/1/2002 Experience 70,475,288 20 5 0 24,914,259 5,728,304

5/1/2003 Assumption 85,964,800 35 21 0 72,448,870 6,471,832

Page C-1

CPTF-DV000800

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2017 5/1/2017

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2017 Actuarial Valuation

Bases Shown: With Extension

5/1/2003 Experience 254,431,353 20 6 0 107,587,037 21,321,738

5/1/2004 Experience 20,035,740 20 7 0 9,802,826 1,721,652

5/1/2005 Experience 116,546,347 20 8 0 64,384,945 10,225,349

5/1/2006 Assumption 32,822,460 35 24 0 29,370,093 2,487,581

5/1/2006 Experience 61,302,815 20 9 0 37,530,715 5,473,101

5/1/2007 Assumption 97,147,893 35 25 0 88,374,848 7,375,039

5/1/2007 Experience Loss 36,021,921 20 10 0 24,082,662 3,263,726

5/1/2008 Assumptions 29,589,137 20 11 0 21,378,172 2,718,458

5/1/2008 Experience 21,904,410 20 11 0 15,825,953 2,012,435

5/1/2009 Experience 29,524,251 15 7 0 17,828,900 3,131,258

5/1/2009 Relief 09 Asset 163,705,587 29 21 0 146,305,326 13,069,403

5/1/2010 Experience 16,798,389 15 8 0 11,199,214 1,778,612

5/1/2011 Assumptions 14,968,746 15 9 0 10,850,491 1,582,326

5/1/2011 Expereince 19,762,045 15 9 0 14,325,041 2,089,019

5/1/2011 Relief 09 Asset 83,446,610 27 21 0 76,099,562 6,797,947

5/1/2012 Assumptions 3,586,082 15 10 0 2,792,808 378,487

5/1/2012 Experience 127,391,921 15 10 0 99,211,735 13,445,352

5/1/2012 Relief 09 Asset 9,268,532 26 21 0 8,550,370 763,802

5/1/2013 Assumptions 112,407,257 15 11 0 93,156,862 11,845,867

5/1/2013 Relief 09 Asset Loss 42,325,699 25 21 0 39,540,680 3,532,155

5/1/2014 Relief 09 Asset Loss 39,456,467 24 21 0 37,410,577 3,341,874

5/1/2015 Assumptions 66,762,182 15 13 0 61,458,193 7,035,631

5/1/2015 Experience 53,022,966 15 13 0 48,810,503 5,587,744

5/1/2016 Amendment 19,478,191 15 14 0 18,732,425 2,052,679

5/1/2016 Experience 83,462,560 15 14 0 80,267,009 8,795,575

5/1/2017 Assumptions 46,472,895 15 15 0 46,472,895 4,897,475

5/1/2017 Experience 62,924,769 15 15 0 62,924,769 6,631,231

Total Charges: 1,707,949,686 215,348,678

Page C-2

CPTF-DV000801

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2017 5/1/2017

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2017 Actuarial Valuation

Bases Shown: With Extension

Credits

5/1/1989 Assumption 30 2 0 4,952,065 2,565,529

5/1/1990 Lath. assum 30 3 0 75,983 27,180

5/1/1992 Assumption 30 5 0 1,783,776 410,128

5/1/1999 Assumptions 104,779,461 30 12 0 70,225,031 8,445,154

5/1/2009 Amendment 19,793,553 15 7 0 11,952,792 2,099,247

5/1/2009 Method (Relief) 77,104,031 30 22 0 69,566,477 6,095,115

5/1/2010 Amendment 101,829,896 15 8 0 67,888,335 10,781,743

5/1/2010 Relief 09 Asset 55,383,209 28 21 0 49,977,236 4,464,449

5/1/2013 Amendment 186,630,145 15 11 0 154,668,648 19,667,733

5/1/2013 Experience Gain 5,974,815 15 11 0 4,951,589 629,647

5/1/2014 Amendment 66,875,803 15 12 0 58,603,820 7,047,605

5/1/2014 Assumptions 24,371,644 15 12 0 21,357,071 2,568,369

5/1/2014 Experience 25,585,607 15 12 0 22,420,879 2,696,300

5/1/2016 Assumptions 10,447,082 15 14 0 10,047,092 1,100,950

Total Credits: 548,470,794 68,599,149

Net Charges: 1,159,478,892 146,749,529

Less Credit Balance:

Less Reconciliation Balance:

Unfunded Actuarial Liability:

-258,325,344

0

1,417,804,236

Page C-3

CPTF-DV000802

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2017 5/1/2017

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2017 Actuarial Valuation

Bases Shown: Without Extension

Charges

5/1/1978 Amendment 40 1 0 999,794 999,794

5/1/1979 Amendment 40 2 0 2,207,663 1,143,729

5/1/1980 Amendment 40 3 0 5,502,608 1,968,335

5/1/1989 Amendment 30 2 0 1,687,213 874,100

5/1/1990 Amendment 30 3 0 7,989,989 2,858,094

5/1/1991 Assumption 30 4 0 5,396,468 1,498,800

5/1/1992 Amendment 30 5 0 2,944,182 676,928

5/1/1993 Assumption 30 6 0 53,394 10,582

5/1/1994 Amendment 30 7 0 4,451,146 781,747

5/1/1995 Assumption 30 8 0 11,105,057 1,763,658

5/1/1996 Assumption 19,314,830 30 9 0 10,725,582 1,564,111

5/1/1997 Amendment 115,128,332 30 10 0 68,720,762 9,313,161

5/1/1997 Assumption 2,432,702 30 10 0 1,452,096 196,791

5/1/1999 Amendment 22,642,031 30 12 0 15,175,088 1,824,932

5/1/2000 Amendment 36,206,741 30 13 0 25,428,478 2,911,009

5/1/2000 Assumption 10,287,556 30 13 0 7,225,087 827,116

5/1/2002 Amendment 65,943,178 30 15 0 50,074,610 5,277,036

5/1/2003 Assumption 85,964,800 30 16 0 67,454,156 6,864,082

5/1/2003 Experience 254,431,353 15 1 0 27,456,871 27,456,871

5/1/2004 Experience 20,035,740 15 2 0 4,158,323 2,154,312

5/1/2005 Experience 116,546,347 15 3 0 34,909,491 12,487,453

5/1/2006 Assumption 32,822,460 30 19 0 27,887,400 2,604,837

5/1/2006 Experience 61,302,815 15 4 0 23,569,023 6,545,995

5/1/2007 Assumption 97,147,893 30 20 0 84,334,163 7,695,370

5/1/2007 Experience Loss 36,021,921 15 5 0 16,674,468 3,833,805

5/1/2008 Assumption 29,589,137 15 6 0 15,862,045 3,143,561

5/1/2008 Experience 21,904,410 15 6 0 11,742,441 2,327,132

5/1/2009 Experience 29,524,251 15 7 0 17,828,900 3,131,258

5/1/2009 Relief08 Asset Loss 163,705,587 29 21 0 146,305,326 13,069,403

5/1/2010 Experience 16,798,389 15 8 0 11,199,214 1,778,612

5/1/2011 Assumptions 14,968,746 15 9 0 10,850,491 1,582,326

5/1/2011 Experience 19,762,045 15 9 0 14,325,041 2,089,019

5/1/2011 Relief 09 Asset 83,446,610 27 21 0 76,099,562 6,797,947

5/1/2012 Assumptions 3,586,082 15 10 0 2,792,808 378,487

5/1/2012 Experience 127,391,917 15 10 0 99,211,730 13,445,352

Page C-4

CPTF-DV000803

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2017 5/1/2017

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2017 Actuarial Valuation

Bases Shown: Without Extension

5/1/2012 Relief 09 Asset 9,268,532 26 21 0 8,550,370 763,802

5/1/2013 Assumptions 112,407,257 15 11 0 93,156,862 11,845,867

5/1/2013 Relief 09 Asset Loss 42,325,699 25 21 0 39,540,680 3,532,155

5/1/2014 Relief 09 Asset Loss 39,456,467 24 21 0 37,410,577 3,341,874

5/1/2015 Assumptions 66,762,182 15 13 0 61,458,193 7,035,631

5/1/2015 Experience 53,022,966 15 13 0 48,810,503 5,587,744

5/1/2016 Amendment 19,478,191 15 14 0 18,732,425 2,052,679

5/1/2016 Experience 83,462,560 15 14 0 80,267,009 8,795,575

5/1/2017 Assumptions 46,472,895 15 15 0 46,472,895 4,897,475

5/1/2017 Experience 62,924,769 15 15 0 62,924,769 6,631,231

Total Charges: 1,411,124,953 206,359,778

Credits

5/1/1989 Assumption 30 2 0 4,952,065 2,565,529

5/1/1990 Lath. assum 30 3 0 75,983 27,180

5/1/1992 Assumption 30 5 0 1,783,776 410,128

5/1/1999 Assumptions 104,779,461 30 12 0 70,225,031 8,445,154

5/1/2009 Amendment 19,793,553 15 7 0 11,952,792 2,099,247

5/1/2009 Method (Relief) 77,104,031 30 22 0 69,566,477 6,095,115

5/1/2010 Amendment 101,829,896 15 8 0 67,888,335 10,781,743

5/1/2010 Relief08 Asset 55,383,209 28 21 0 49,977,236 4,464,449

5/1/2013 Amendments 186,630,145 15 11 0 154,668,648 19,667,733

5/1/2013 Experience 5,974,815 15 11 0 4,951,589 629,647

5/1/2014 Amendment 66,875,803 15 12 0 58,603,820 7,047,605

5/1/2014 Assumptions 24,371,644 15 12 0 21,357,071 2,568,369

5/1/2014 Experience 25,585,607 15 12 0 22,420,879 2,696,300

5/1/2016 Assumptions 10,447,082 15 14 0 10,047,092 1,100,950

Total Credits: 548,470,794 68,599,149

Page C-5

CPTF-DV000804

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2017 5/1/2017

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2017 Actuarial Valuation

Bases Shown: Without Extension

Net Charges: 862,654,159 137,760,629

Less Credit Balance:

Less Reconciliation Balance:

Unfunded Actuarial Liability:

-555,150,077

0

1,417,804,236

Page C-6

CPTF-DV000805

United Actuarial Services, Inc. 
Appendix D – Summary of Endangered and Critical Status Rules

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page D-1 

RULES FOR ENDANGERED AND CRITICAL STATUS

Background

The Pension Protection Act of 2006 (“PPA”), enacted in August 2006, established special 

rules for plans in “Endangered” or “Critical” status. These rules become effective with the 

plan year beginning in 2008 and were originally scheduled to “sunset” in 2015.

The Multiemployer Pension Reform Act of 2014 (“MPRA”), enacted in December 2014, 

made the provisions contained in the PPA permanent. MPRA also made numerous 

changes to the PPA rules, including adding a new status for deeply troubled plans: Critical 

and Declining.

Informally, Critical Status is often referred to as “red zone” and Endangered Status as 

“yellow zone.” A plan that is neither Critical nor Endangered is said to be “green zone.”

Criteria for Endangered and Critical

The table below summarizes the criteria for these categorizations. Projected deficiencies 

are calculated as of the last day of each plan year and are based on contribution rates 

codified in bargaining agreements and, if applicable, wage allocations. 

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN:

Plan is Critical if it is described in one or 

more of the following:

• Funded percentage is less than 65%, 

and, inability to pay nonforfeitable 

benefits and expenses for next 7 years, 

or

• Projected funding deficiency (not

recognizing extensions) in the current 

year or next 3 years (next 4 years if 

funded at less than 65%), or

• (1) Contributions are less than current 

year costs (i.e. “normal cost”) plus 

interest on any unfunded past liabilities, 

and, (2) value of vested benefits for 

non-actives is greater than for actives, 

and, (3) projected funding deficiency

(not recognizing extensions) in the 

current year or next 4 years, or

• Inability to pay all benefits and 

expenses for next 5 years.

Plan is Endangered if it is not Critical and it is 

described in one of the following:

• Funded percentage is less than 80%, or

• Projected funding deficiency in the current 

year or next 6 years.

A non-critical plan that meets both of the 

preceding criteria is considered “Seriously 

Endangered” 

A plan that meets one of the two Endangered 

Status criteria above, but was not in Critical or 

Endangered for the preceding year, will 

remain not Critical or Endangered (i.e. it will 

be in “green zone”) provided it is not projected 

to meet either of the two Endangered Status 

criteria as of the end of the 10th plan year 

following the certification year

CPTF-DV000806

United Actuarial Services, Inc. 
Appendix D – Summary of Endangered and Critical Status Rules

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page D-2 

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN (cont.): 

A plan with a 5-year amortization extension 

under IRC Section 431(d) that previously 

emerged from Critical Status in PYB 2015 or 

later will re-enter Critical Status only if it is 

described in one of the following:

• Projected funding deficiency in the 

current year or next 9 years (including

amortization extensions), or, 

• Projected insolvency within the next 30 

years

GETTING OUT:

Plan emerges from Critical Status when it 

meets all of the following:

• No longer meets any of the Critical 

Status tests, and, 

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

A plan with a 5-year amortization extension 

under IRC Section 431(d) emerges from 

Critical Status when it meets all the 

following:

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

Plan emerges from Endangered Status when 

it no longer meets the requirements to be 

classified as Endangered or when it enters 

Critical Status

CPTF-DV000807

United Actuarial Services, Inc. 
Appendix D – Summary of Endangered and Critical Status Rules

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation

Page D-3 

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Restrictions for Endangered and Critical Plans

The Trustees of a plan that is in Endangered or Critical status face a number of restrictions in plan 

improvements that can be adopted and bargaining agreements that can be accepted.

Period Endangered/Critical Restrictions

Date of first certification 

through adoption of funding 

improvement/rehabilitation 

plan (“plan adoption period”)

• No reduction in level of contributions for any participants

• No suspension of contributions

• No exclusion of new or younger employees

• No amendment that increases the liabilities of the plan by 

reason of any increase in benefits, change in accrual, or 

change in vesting unless required by law

After adoption of a funding 

improvement/rehabilitation 

plan until end of funding 

improvement/rehabilitation 

period

• Cannot be amended so as to be inconsistent with funding 

improvement/rehabilitation plan

• No amendment that increases benefits, including future 

accruals, unless actuary certifies as being paid for with 

contributions not contemplated in funding improvement/

rehabilitation plan and still expected to meet applicable 

benchmark after considering the amendment

Additionally, Critical status plans cannot pay benefits greater than the single life 

annuity once the initial red zone notice is sent unless the benefit is eligible for 

automatic cash-out.

Critical and Declining Plans

Beginning in 2015, plans that are in Critical Status and are projecting insolvency within the 

next 15 years (20 years in some circumstances) are certified by the actuary as being in 

“Critical and Declining.” These plans may have access to new tools that will allow them 

to reduce many previously-untouchable benefits, including benefits for participants in pay 

status. However, these expanded benefit reductions require government approval, must 

not be rejected by a majority of all participants through a vote, and are subject to a number 

of other requirements and limitations.

Selected Other MPRA Changes (effective with 2015 plan years)

• Plans projected to be Critical within the next 5 years can elect to be in Critical Status 

immediately

• New contribution rate increases required by a funding improvement or rehabilitation 

plan are not considered in calculating an employer’s withdrawal liability or payment 

schedule

• If, upon the expiration of a collective bargaining agreement under a funding 

improvement or rehabilitation plan, bargaining parties do not adopt a new agreement 

consistent with an updated schedule, the Trustees must implement the update to the 

schedule previously adopted.

• PBGC premium doubled and indexed

• PBGC ability to facilitate mergers and partitions expanded

CPTF-DV000808

United Actuarial Services, Inc. 
Appendix E – Glossary of Common Pension Terms

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page E-1 

GLOSSARY OF COMMON PENSION TERMS

Benefits

Accrued Benefit: A benefit that an employee has earned (or accrued) through past 

participation in the plan. It is the amount payable at normal retirement age. 

Why it matters: Under the law, Accrued Benefits generally may not be reduced 

by plan amendment (note that special rules allowing for limited reduction and/or 

suspension of accrued benefits apply to critical status, critical and declining 

status and insolvent plans). 

Actuarial Equivalence: Given a set of actuarial assumptions, when two different sets 

of payment scenarios have an equal present value.

Early Retirement Reduction Factor: A retirement benefit that begins before normal 

retirement age may be reduced. The plan document defines the amount of the 

reduction by formula or a table of factors. This reduction may or may not be actuarially 

equivalent, but its present value can be no less than actuarially equivalent to the benefit 

payable at normal retirement age. 

Benefit Crediting (Accrual) Rate: A general reference to the calculation of the amount 

of monthly retirement benefit earned per dollar contributed or per year or hour worked. 

Assets

Market Value of Assets: The market value of all assets in the fund including on an 

accrued, not cash basis (matching the plan audit).

Actuarial Value of Assets: The amount of assets recognized for actuarial valuation 

purposes. Recent changes in market value may be partially recognized (there are 

variations allowed on the exact recognition). Generally the actuarial value is limited to 

not be less than 80% or more than 120% of the market value. 

Why it matters: Many funding calculations use this “smoothed” asset value 

method to lessen the impact of volatility in the market value of plan assets.

Assumed Rate of Return: Long term assumption of the rate of return on assets based 

upon the diversification mix of invested assets. 

Why it matters: This assumption is used in calculating the present values 

discussed in the Liabilities section below. The Assumed Rate of Return has an 

inverse relationship with plan liabilities. In other words, a lower Assumed Rate 

of Return increases liabilities, while a higher Assumed Rate of Return decreases 

plan Liabilities.

CPTF-DV000809

United Actuarial Services, Inc. 
Appendix E – Glossary of Common Pension Terms

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page E-2 

GLOSSARY OF COMMON PENSION TERMS (CONT.)

Liabilities

Present Value of Accrued Benefits: The discounted value of benefit payments due 

in the future but based only on the current Accrued Benefits of each participant. The 

value is based on actuarial assumptions including an assumed rate of investment 

return. 

Why it matters: This liability is one of the primary factors in determining a plan’s 

annual PPA funded status (see Funded Ratio).

Present Value of Vested Benefits: The discounted value of Accrued Benefits that 

are considered vested (non-forfeitable). Benefits that are not vested include those of 

participants who have not satisfied the plan vesting requirement (usually five years of 

service). In addition under the law some death and temporary disability benefits are 

also considered non-vested regardless of service because they are not considered 

protected benefits. 

Why it matters: This liability is the primary driver of a plan’s Employer Withdrawal 

Liability.

Actuarial (Accrued) Liability: For inactive members this is the same as the Present 

Value of Accrued Benefits above. For active members this depends on the cost 

method selected by the actuary. Under the accrued benefit or traditional unit credit 

cost method this is also the same as the Present Value of Accrued Benefits. Under 

other cost methods (including most commonly entry age normal) this represents an 

alternate allocation of projected benefit cost over the working lifetime of active 

members. Under the entry age normal cost method, the active Actuarial Liability is 

larger than the Present Value of Accrued Benefits. 

Unfunded Actuarial Liability: The Actuarial Liability less the Actuarial Value of 

Assets. 

Current Liability: This is similar to the Present Value of Accrued Benefits, but uses a 

statutory, significantly lower, interest rate (equivalent to an expected rate of return on 

a bond only-type portfolio) and statutory mortality tables. The lower interest rate 

means that Current Liability tends to be significantly higher than the Present Value of 

Accrued Benefits. This number has very little impact on multiemployer plans. 

Normal Cost: The present value of all benefits that are expected to accrue or to be 

earned under the plan during the plan year. The way in which a benefit is considered 

to be earned varies with the actuarial cost method.

Risk: The potential of future deviation of actual results from expectations derived from 

actuarial assumptions.

CPTF-DV000810

United Actuarial Services, Inc. 
Appendix E – Glossary of Common Pension Terms

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2017 Actuarial Valuation 

Page E-3 

GLOSSARY OF COMMON PENSION TERMS (CONT.)

Funding

Funded Ratio (Funded Percentage): Actuarial Value of Assets divided by the 

Present Value of Accrued Benefits. This is one of two key measures used to determine 

a plan’s annual PPA funded status. This may also be referred to as PPA Funded Ratio. 

This must be greater than 80% to avoid endangered status.

Credit Balance: The accumulated excess of actual contributions over legally required 

minimum contributions as maintained in the funding standard account. The funding 

standard account is maintained by the actuary in the valuation process and reported 

annually in schedule MB to the Form 5500 filing. A negative credit balance is known 

as an accumulated funding deficiency. Prior to PPA, an accumulated funding 

deficiency caused an immediate excise tax (waiver under PPA if certain conditions are 

met). After PPA, a current or projected funding deficiency is one of the key measures 

used in determining the annual PPA status. It can eventually trigger an excise tax 

levied on contributing employers.

Withdrawal Liability

Unfunded Vested Benefits (UVB): Present Value of Vested Benefits less the value 

of plan assets determined on either an actuarial or market value basis. The selection 

of asset measurement is part of the withdrawal liability method of the Plan.

Employer Withdrawal Liability (EWL): An employer that withdraws from a 

multiemployer plan is liable for its proportionate share of Unfunded Vested Benefits, 

determined as of the date of withdrawal. 

Why it matters: If a contributing employer leaves the plan while it has Unfunded 

Vested Benefits liability, that employer’s allocated share of Employer Withdrawal 

Liability is either assessed, as applicable, or reallocated among the plan’s 

remaining active employers if the presumptive method is used. A construction 

employer withdrawing from a construction industry plan will not be assessed 

unless they continue performing work within the jurisdiction of the CBA or restart 

such work within a period of 5 years. Small amounts (under $150,000) are 

generally reduced or eliminated pursuant to the “de minimis rule.”

CPTF-DV000811

United Actuarial Services, Inc. 
CARPENTERS PENSION TRUST FUND

DETROIT AND VICINITY PENSION PLAN

DETROIT, MICHIGAN

Actuarial Valuation Report

For Plan Year Commencing 

May 1, 2018

CPTF-DV000812
11590 North Meridian Street, Suite 610  Carmel, Indiana 46032-4529  (317) 580-8670  Fax (317) 580-8651

February 4, 2019

Board of Trustees

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

Detroit, Michigan

Dear Trustees:

We have been retained by the Board of Trustees of the Carpenters Pension Trust Fund - 

Detroit and Vicinity Pension Plan to perform annual actuarial valuations of the pension 

plan. This report presents the results of our actuarial valuation for the plan year beginning 

May 1, 2018. The valuation results contained herein are based on current plan provisions 

summarized in Appendix A, the actuarial assumptions and methods listed in Appendix B 

and on financial statements audited by Bultynck & Co., P.L.L.C. Participant data was 

provided by BeneSys, Inc. While we have reviewed the data for reasonableness in 

accordance with Actuarial Standards of Practice No. 23, we have not audited it. The data 

was relied on as being both accurate and comprehensive.

This report has been prepared in order to (1) assist the Trustees in evaluating the current 

actuarial position of the plan, (2) determine the minimum required and maximum 

deductible contribution amounts under Internal Revenue Code §431 and §404, (3) provide 

the fund’s auditor with information necessary to comply with Accounting Standards 

Codification 960, and (4) document the plan’s certified status under Internal Revenue 

Code §432 for the current year and provide the basis to certify such status for the 

subsequent year. In addition, information contained in this report will be used to prepare 

Schedule MB of Form 5500 that is filed annually with the IRS and could be used to 

calculate employer withdrawal liability. We are not responsible for the use of, or reliance 

upon, this report for any other purpose. 

We have prepared this report in accordance with generally accepted actuarial principles 

and practices and have performed such tests as we considered necessary to assure the 

accuracy of the results. The results have been determined on the basis of actuarial 

assumptions that, in our opinion, are appropriate for the purposes of this report, are 

individually reasonable and in combination represent our best estimate of anticipated 

experience under the plan. Actuarial assumptions may be changed from previous 

valuations due to changes in mandated requirements, plan experience resulting in 

changes in expectations about the future, and/or other factors. An assumption change 

does not indicate that prior assumptions were unreasonable when made. For purposes of 

current liability calculations, assumptions are prescribed by regulation or statute. By 

relying on this valuation report, the Trustees confirm they have accepted the assumptions 

contained in the report.

The results are based on our best interpretation of existing laws and regulations and are 

subject to revision based on future regulatory or other guidance.

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to such factors as the following: plan experience differing 

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

or demographic assumptions, increases or decreases expected as part of the natural 

operation of the methodology used for these measurements (such as the end of an 

CPTF-DV000813

United Actuarial 

Services, Inc. 

Actuaries and Consultants 
Board of Trustees -2- February 4, 2019

amortization period or additional cost or contribution requirements based on the plan’s 

funded status), and changes in plan provisions or applicable law.

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

advice. None of the comments made herein should be construed as constituting such 

advice. We are not aware of any direct or material indirect financial interest or relationship 

that could create a conflict of interest that would impair the objectivity of our work.

The undersigned actuaries meet the Qualification Standards of the American Academy of 

Actuaries to render the actuarial opinion contained in this report. 

We are available to respond to any questions you may have about this report.

UNITED ACTUARIAL SERVICES, INC.

Consulting Actuary President

United Actuarial Services, Inc. 

CPTF-DV000814
TABLE OF CONTENTS

PART I: SUMMARY OF RESULTS 5

5 - Year Summary of Valuation Results 6

5 - Year Summary of Demographics 7

Changes From Prior Study 8

History of Major Assumptions 9

Experience vs. Assumptions 10

Plan Maturity 11

Unfunded Vested Benefits/Employer Withdrawal Liability 12

Contribution Allocation 13

Funding Standard Account Projection 14

Funded Ratio Projection 15

PPA Funding Status Report 16

Ultimate Funded Status 17

Stress and Sensitivity Analysis 18

PART II: SUPPLEMENTAL STATISTICS 19

Participant Data Reconciliation 20

Hours Worked During Plan Year 21

Contributions Made During Plan Year 22

Active Information 23

Inactive Vested Information 24

Retiree Information 25

PART III: ASSET INFORMATION 27

Market and Actuarial Fund Values 28

Flow of Funds 29

Investment Gain and Loss 30

Rate of Return on Fund Assets 31

PART IV: ENROLLED ACTUARY’S REPORT 32

Normal Cost/Actuarial Liability 33

Actuarial Liability Reconciliation/Projection 34

Funded Ratios 35

Funding Period 36

Current Liability 37

Funding Standard Account 38

Funding Standard Account Without Amortization Extension 39

Full Funding Limit 40

Minimum Required Contribution and Full Funding Credit 41

Maximum Deductible Contribution 42

History of Unfunded Vested Benefits 43

Termination by Mass Withdrawal 44

ASC 960 Information 45

APPENDICES

Plan Provisions Appendix A

Actuarial Assumptions and Methods Appendix B

Minimum Funding Amortization Bases Appendix C

Summary of Endangered and Critical Status Rules Appendix D

Glossary of Common Pension Terms Appendix E

United Actuarial Services, Inc. 

CPTF-DV000815
Page 5 

PART I: SUMMARY OF RESULTS

CPTF-DV000816

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 6 

 

5 - YEAR SUMMARY OF VALUATION RESULTS

Actuarial Study 

as of May 1, 2018 2017 2016 2015 2014

PPA funded status Crit. & Decl. Critical Critical Critical Critical

Progress under FIP/RP* Yes Yes Yes Yes Yes

Improvements restricted** Yes Yes Yes Yes Yes

Funded ratio

PPA certification 34.5% 36.4% 38.9% 42.5% 43.9%

Valuation report (AVA) 34.8% 35.5% 38.7% 41.4% 44.3%

Valuation report (MVA) 34.3% 33.4% 33.6% 36.0% 37.5%

Credit Balance/(Funding 

Deficiency) ($ 000)***

(327,316) (258,325) (190,016) (141,912) (106,157)

Date of first projected funding deficiency***

PPA certification Existing Existing Existing Existing Existing

Valuation report Existing Existing Existing Existing Existing

Net investment return

On market value 7.87% 11.13% -0.22% 4.42% 10.51%

On actuarial value 2.56% 1.78% -0.66% 1.12% 7.78%

Asset values ($ 000)

Market 761,729 734,240 712,660 746,439 747,282 

Actuarial 771,737 781,239 821,814 859,594 883,024 

Accum. ben. ($ 000) 2,217,888 2,199,043 2,123,936 2,076,091 1,991,086

* Scheduled progress for this Plan means using all reasonable measures to forestall insolvency.

** Benefit improvement restrictions due to fund being in critical and declining status and due to fund 

having an amortization extension. Restrictions will remain in place until plan is in safe status again. 

*** With amortization extension.

CPTF-DV000817

2,500,000 

~ 

,. - ~ 

. ~ 

2,000,000 . ,. - Assets tfl (Actuarial) .... - Assets ~ 1,500,000 

(Market) C 

"' Ill 

- A.cairn ulated 5 1,000,000 Bene1its ~ 

-W--fl- LJ ~ - 500,000 

0 I 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 7 

 

5 - YEAR SUMMARY OF DEMOGRAPHICS

Actuarial Study 

as of May 1, 2018 2017 2016 2015 2014

Participant counts

Active 5,803 5,208 5,246 5,054 4,986 

Inactive vested 6,438 6,465 6,495 6,515 6,482 

Receiving benefits 7,395 7,314 7,290 7,276 7,363 

Total 19,636 18,987 19,031 18,845 18,831 

Average entry age 28.5 28.1 28.1 27.9 27.9 

Average attained age 41.6 42.3 42.1 42.5 42.4 

Hours worked in prior plan year (thousands)

Expected hours valuation 6,825 6,908 5,983 5,953 5,422

Expected hours PPA cert 7,500* 8,500* 8,000 7,500 7,500

Actual hours worked 8,185 7,266 7,306 6,772 6,202

* The 2017 PPA cert expected hours of 7,500,000 in the 2018 column is different than the 9,200,000 

expected hours used in the 2017 valuation projections. Likewise, the 2016 PPA cert expected hours 

of 8,500,000 in the 2017 column is different than the 7,300,000 expected hours used in the 2016 

valuation projections.

CPTF-DV000818

• Actives 

• Inactive Vested 

• Retirees 

- Expected HrsValuation 

Expected HrsPPA Cert 

- Actual Hrs 

8,000 ~ ------------------------, 

7,000 -+----

6, 000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

9.0 

8.0 

7.0 

6.0 Cl) 

C 5.0 

~ 4.0 

i 3.0 

.2.0 

1.0 

0.0 

I 

CJ 

r-

_I 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 8 

 

CHANGES FROM PRIOR STUDY

Changes in Plan Provisions

The plan provisions underlying this valuation are the same as those valued last year.

Changes in Actuarial Assumptions and Methods

The actuarial assumptions and methods used in this valuation differ from those used in 

the prior valuation in the following respects:

• The mortality projection scale was updated from MP-2017 to MP-2018. This change 

was made in order to reflect the latest mortality improvement data available.

• The assumed withdrawal select rates were adjusted according to the schedule in 

Appendix B. This change reflects our best estimate of future withdrawal patterns 

based on recent plan experience.

• Continuing inactive vested participants and deferred beneficiaries over age 70 are no 

longer assumed to be deceased. 

• The percentage of participants married and spousal age difference assumptions were 

changed from 100% married with the male spouse 3 years older to 65% married with 

the male spouse 2 years older. This change is based on recent retirement experience 

and represents our best estimate.

• We changed the optional form assumption from 100% electing a life annuity to the 

percentages in the below table. This change was made based on recent retirement 

experience and represents our best estimate.

Optional form

Married

Participants

Single

Participants

Life annuity 15% 85%

Life-ten year certain 5% 15%

Joint & 50% survivor 20% n/a

Joint & 75% survivor 15% n/a

Joint & 100% survivor 45% n/a

• The assumed percentage of contributions that are non-credited was decreased from 

63.1% to 61.0% to match the plan document.

• The assumed operational expenses were decreased from $4,300,000 to $4,000,000 

to reflect our best estimate of future expenses based on recent plan experience. 

• The pop-up load on liabilities for retirees receiving a joint and survivor form of benefit 

was eliminated and was replaced with individually estimated pop-up amounts should 

the spouse predecease the participant. 

• The current liability interest rate was changed from 3.05% to 2.99%. The new rate is 

within established statutory guidelines.

CPTF-DV000819

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 9 

 

HISTORY OF MAJOR ASSUMPTIONS

Actuarial Study as of May 1,

Assumption 2018 2017 2016 2015 2014

Future rate of net 

investment return

7.50% 7.50% 7.50% 7.50% 7.50%

Mortality table RP 2014 RP 2014 RP 2014 RP 2014 RP-2000G 

Adjustment 100% 100% 115% 2 yr. sf 2 yr. sf

Projection scale MP-2018 MP-2017 MP-2016 MP-2015 AA 

Future expenses $4.0M $4.3M $4.3M $4.0M $4.0M

Average future hourly 

contribution rate*

Credited $5.74 $5.72 $5.74 $5.85 $5.82

Non-credited 8.99 9.78 9.81 10.00 10.20

Total $14.73 $15.50 $15.55 $15.85 $16.02

Average future annual hours

Vested 1,600 1,600 1,600 1,400 1,400

Non-vested 600 600 600 500 500

* Actual average derived from application of assumptions specified in Appendix B.

CPTF-DV000820

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 10 

 

EXPERIENCE VS. ASSUMPTIONS

Actuarial assumptions are used to project certain 

future events related to the pension plan (e.g. 

deaths, withdrawals, investment income, expenses, 

etc.). While actual results for a single plan year will 

rarely match expected experience, it is intended 

that the assumptions will provide a reasonable long 

term estimate of developing experience.

The following table provides a comparison of expected outcomes for the prior plan year 

with the actual experience observed during the same period. This display may provide 

insight as to why the plan’s overall actuarial position may be different from expected.

Plan Year Ending 

April 30, 2018 Expected Actual

Decrements

Terminations 759

less: Rehires 356

Terminations (net of rehires) 792.8 403

Retirements 96.9 97

Disabilities 6.8 6

Deaths - pre-retirement 49.0 42

Deaths - post-retirement 269.1 298

Monthly benefits of deceased retirees $ 303,227 $ 302,768

Financial assumptions

Rate of net investment return on actuarial value 7.50% 2.56%

Administrative expenses $ 4,300,000 $ 4,016,068

Other demographic assumptions

Average retirement age from active (new retirees) 58.9 58.9

Average retirement age from inactive (new retirees)* 61.6 63.4

Average entry age (new entrants) 28.1 32.5

Hours worked per vested active 1,600 1,756

Hours worked per non-vested active 600 712

Total hours worked (valuation assumption) 6,824,800 8,184,597

Total hours worked (PPA certification assumption) 7,500,000 8,184,597

Unfunded liability (gain)/loss

(Gain)/loss due to asset experience $ 37,887,750

(Gain)/loss due to liability experience 12,008,517

Total (gain)/loss $ 49,896,267

* Expected average based on the average for the total group of participants.

Comparing the prior year’s 

experience to assumptions 

provides indications as to 

why overall results may 

differ from those expected 

CPTF-DV000821

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 11 

 

PLAN MATURITY

When a new pension plan is first established, its 

liabilities are typically limited to active plan 

participants. However, as people become vested 

and retire, a plan begins to develop liabilities 

attributable to nonactive participants (retirees and 

inactive vested participants). The process of 

adding nonactive liabilities (often referred to as 

“maturing”) is a natural outgrowth of the operation of the plan. As a plan matures, its 

liabilities tend to balloon in relation to its contribution base, making it more difficult to 

correct for adverse outcomes by increasing contribution rates or reducing future benefit 

accruals.

Headcount ratios show the number of retiree or inactive participants supported by each 

active participant. While there is no hard and fast rule, we generally consider a plan to be 

mature if each active is supporting more than 1 retiree or more than 2 nonactives. A 

negative net cash flow (benefits payments and expenses greater than contributions) can 

also be an indicator of a mature plan. A negative cash flow, when expressed as a 

percentage of assets, in excess of the assumed rate of return on fund assets is not 

sustainable in the long term. 

Actuarial Study 

as of May 1, 2018 2017 2016 2015 2014

Retiree/active headcount ratio 1.27 1.40 1.39 1.44 1.48

Nonactive/active headcount ratio 2.38 2.65 2.63 2.73 2.78

Cash flow

Contr.-ben.-exp. ($000) (29,243) (54,819) (32,245) (34,373) (43,975)

Percent of assets -3.84% -7.47% -4.52% -4.60% -5.88%

Liabilities of Actives, Retirees, and Inactive Vesteds

Total Liabilities: $2,217,887,651

Measures of plan maturity 

can play a part in 

understanding risk and a 

plan’s ability to recover 

from adverse experience

CPTF-DV000822

Retiree 

$1 ,486,101 ,209 

6,7% 

United Actuarial Services, Inc. 

Active 

$442,391,581 

20% 

Inactive Vested 

$289,394,861 

13% 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 12 

 

UNFUNDED VESTED BENEFITS/EMPLOYER WITHDRAWAL LIABILITY

The following table shows a history of the plan’s 

unfunded vested benefits (UVB) required to 

compute a specific employer withdrawal liability 

under the presumptive method. If all unfunded 

vested benefits since the inception of the 

Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) are zero ($0) or less, 

there will be no withdrawal liability assessed to a withdrawing employer. Otherwise, an 

employer may be assessed withdrawal liability payments pursuant to MPPAA. The 

display does not reflect adjustments for prior employer withdrawals.

In accordance with IRC Section 432(e)(9)(A) and PBGC Technical Update 10-3, the 

impact of reducing adjustable benefits is reflected by adding the unamortized portion of 

the value of affected benefits (VAB) to the most recent year’s unfunded vested benefits 

pool. An employer who is assessed withdrawal liability will be assessed a portion of the 

UVB and the VAB.

Presumptive Method ($ 000) 

April 30, 2018 2017 2016 2015 2014

Vested benefits interest 7.50% 7.50% 7.50% 7.50% 7.50%

Vested benefits 2,205,042 2,185,387 2,089,265 1,986,840 1,883,082

less: Asset value* 771,737 781,239 821,814 859,594 883,024

UVB 1,433,305 1,404,148 1,267,451 1,127,246 1,000,058

Unamortized VAB 200,929 212,515 223,293 233,318 242,642

UVB + VAB 1,634,234 1,616,663 1,490,744 1,360,564 1,242,700

* Actuarial value

** Includes VAB

An employer withdrawing 

during the coming year may

have withdrawal liability

CPTF-DV000823

I 

3,000,000 

2,500,000 . T T ~ 

-- T . - Assets~ ~ 2,000,000 

. .... (I) 

'Cl 

C 

- vested gj 1,500,000 

Benefitstt g 

f: 1,000,000 

~ - n 

~I 500,000 - I - 0 

United Actuarial Services, Inc. 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 13 

 

CONTRIBUTION ALLOCATION

The following allocation charts illustrate how the 

expected contribution rate for the coming plan year 

will be “spent” to pay for benefits being earned in the 

current year, plan expenses, and funding of past 

unfunded liabilities.

Contribution Allocation as of May 1, 2018

Total Average Expected Contribution Rate $14.73

Contribution Allocation as of May 1, 2017

Total Average Expected Contribution Rate $15.50

These graphs show how 

the contributions are

being spent

CPTF-DV000824

~ ---- Benefits Alr~ -------

Accrued 

$12.12 

82% 

Current Year 

Accruals 

$2.06 

14% Expenses 

$0.55 

4% 

Current Year 

Accruals 

-------~------- Benefits Already 

Accrued 

$12.72 

82% 

United Actuarial Services, Inc. 

$2.15 Expenses 

14% $0.63 
Page 14 

 

not represent actual assets held by a custodian. 

The FSA is hypothetical in the sense that it does 

pg 

Rather, a positive FSA balance (called a “credit balance”) means that the plan has 

Actuar

(called a “funding deficiency”) means that the plan has fallen short of such standards.

exceeded minimum funding standards on a cumulative basis, while a negative balance 

ies must project the plan’s FSA each year in order to determine PPA status. If a 

funding deficiency is projected in a future year, the plan could be forced into yellow 

f

(endangered) or red (critical) status depending how far into the future the projected 

unding deficiency is. The plan’s FSA projection appears below. These projections are 

Projections” section of Appendix B.

based on the assumptions summarized in the “Actuarial Assumptions used for 

 

driver of PPA status

CPTF-DV000825 C: :::s 

;:; 

tD 

0. 

O'edlt Balance($ mllllons) 

::w "3 "3 ....... ....... .. ..... ..... 

C C) -(Ji -C) -(Ji C) "ij, 

Al 8 8 8 8 8 8 C) 

.. 

ii' 2017 

-

Ill 2018 

tD 2019 

.. 

< 2020 ;:;· 2021 tD 

Ill 2022 

.. 

- 2023 

:::s 

n 2024 

2025 2026 2027 

re 2028 

;:;, 2029 

2030 

~- 2031 

2032 2033 

2034 

2035 2036 

2037 

2038 2039 2040 

2041 20

42 

I 

i (") I;; 

'< iii 

i ;!. l 
Page 15 

 

g g 

standard account projection, funded ratio is one 

The projection of the funded ratio appears below.

(also called “safe” or “not endangered or critical”) the funded ratio must be at least 80%. 

of the two major drivers of PPA funded status. In order for a plan to enter the green zone 

 These projections are based on the 

assumptions summarized in the “Actuarial Assumptions used for Projections” section of 

Appendix B.

CPTF-DV000826 C: :::s 

i 

0. 

.. 

C 

Al 

.. 

ii' 

-

Ill 

" .. < ;:;· 

.!II " 

-

:::s 

n 

0 

#-

2017 2018 2019 

2020 

2021 

2022 2023 

2024 

2025 2026 

2027 2028 

g' 2029 

~- 2030 

5· 2031 

10 2032 

2033 2034 

2035 2036 2037 2038 2039 

2040 2041 20

42 

Funded Percentage 

0 

#-

Nc,>,1>,r.,,t;i-.JO, 

0 0 0 0 0 0 0 

#- #- #- #- #- #- #-

I I 

[ ,:-, 

-< 

-iii 

i ;::. -< 

ro 

fl! 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 16 

 

PPA FUNDING STATUS REPORT

The Pension Protection Act of 2006 (PPA), as amended 

by the Multiemployer Pension Reform Act of 2014 

(“MPRA”), requires all multiemployer pension plans to 

obtain an annual status certification. The possible 

statuses are: “Safe”, “Endangered”, “Seriously 

Endangered”, “Critical” or “Critical and Declining”. As the plan’s actuary, we must 

complete the status certification within 90 days of the beginning of the plan year, and we 

must also certify whether or not the plan has made scheduled progress if its funding 

improvement or rehabilitation period has begun. The criteria for these determinations are 

outlined in Appendix D. Due to the timing requirement affecting PPA certifications, they 

are performed based on data and assumptions different from that used in this report (see 

certification letter for additional details). These projections are based on the assumptions 

summarized in the “Actuarial Assumptions used for Projections” section of Appendix B.

The results are summarized below. 

Description

Values Used for PPA Certification

2018 2017

Funded ratio 34.5% 36.4%

Date of first projected funding deficiency

With extensions Existing Existing

Without extensions Existing Existing

Year of projected insolvency (PYB) 2035 2051

Certified PPA status Critical & Declining Critical

Making progress under FIP/RP Yes * Yes *

* Scheduled progress for this Plan means using all reasonable measures to forestall insolvency.

Projected PPA Status

The plan is in Critical 

and Declining status 

for 2018

CPTF-DV000827

I 

CurrentYear 

Last Year 

Year Beginning 

United Actuarial Services, Inc. 

• Safe 

• Safe( special rule) 

Endangered 

• Seriously Enda ngB'ed 

• Critical 

• Critical and Declining 
Summary of Results

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 17 

 

ULTIMATE FUNDED STATUS

An actuarial valuation deals primarily with the ability 

of the plan to meet Internal Revenue Code 

requirements now and in the near future. As such, 

it is heavily focused on current plan assets and 

liabilities. But it is also important to keep in mind 

the true purpose of the plan funding—that is, to accumulate sufficient assets to pay the 

benefits that the plan has promised to its participants. The chart below looks at this longterm funding adequacy. To the current plan assets we add the present value of all future 

contributions expected to be made for the current plan participants. To the value of the 

plan’s liabilities for benefits that have been previously earned we add the present value of 

all the future benefits the current plan participants are expected to earn through their 

future service. Ideally these ultimate asset and liability values will be approximately equal.

Neither of these amounts reflect the effect of future new participants or future contribution 

rate increases to the plan. Generally new entrants generate greater future contributions 

than benefits, so they represent a net positive to the actual future funding shown here. 

Ultimate funded status is a 

snapshot measure of 

contribution sufficiency

CPTF-DV000828

2,500,000 

2,000,000 

~ 

-- 1,500,000 in 

"Cl 

= (U 

in 

:::, 

0 

~ 1,000,000 

500,000 

0 

58% 58% 

2018 2017 

• Market Value of Assets 

• PV Future Contributions 

United Actuarial Services, Inc. 

59% 59% 58% 

2016 2015 2014 

• PV Current B,enefits 

• PV Future Benefits 
Summary of Results 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2018 Actuarial Valuation 

The table below illustrates 

the impact on the plan when 

experience varies from key 

assumptions 

STRESS AND SENSITIVITY ANALYSIS 

Currently, the plan is in critical and declining 

status and projects a 2034 date of insolvency. 

Considering that experience rarely matches our 

assumptions exactly, we developed the table 

below to demonstrate the impact that variations in 

certain key assumptions would have on the date 

of projected insolvency. We examined future 

hours assumptions equal to the baseline, 10% lower, and 10% higher. We examined 

asset returns for the 2018-19 plan year of 6.20%, 4.00%, 0.00%, and -4.00%. All results 

included the impact of a lower asset return of 6.20% for the next 9 years and 7.50% 

thereafter. Stochastic modeling is also available for a more detailed analysis of sensitivity 

to asset returns. 

Return for the 2018-19 PY 

(6.20% next 9 yrs, 7.50% thereafter) 

Hours Assumption 6.20% I 4.00% I 0.00% I -4.00% 

10% Lower 

7,560,000 in 2018-19 

7,380,000 in 2019-20 Insolvency Insolvency Insolvency Insolvency 

7,200,000 in 2020-21 year: 2032 year: 2032 year: 2031 year: 2031 

6,570,000 in 2021 -22 

6,300,000 thereafter 

Baseline 

8,400,000 in 2018-19 

8,200,000 in 2019-20 Insolvency Insolvency Insolvency Insolvency 

8,000,000 in 2020-21 year: 2034 year: 2034 year: 2033 year: 2033 

7,300,000 in 2021 -22 

7,000,000 thereafter 

10% Higher 

9,240,000 in 2018-19 

9,020,000 in 2019-20 Insolvency Insolvency Insolvency Insolvency 

8,800,000 in 2020-21 year: 2038 year: 2038 year: 2037 year: 2036 

8,030,000 in 2021 -22 

7,700,000 thereafter 

United Actuarial Services, Inc. 

Page 18 

CPTF-DV000829 
Page 19 

PART II: SUPPLEMENTAL STATISTICS

CPTF-DV000830

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 20 

 

PARTICIPANT DATA RECONCILIATION

The participant data reconciliation table below provides information as to how the plan’s 

covered population changed since the prior actuarial study. Such factors as the number 

of participants retiring, withdrawing and returning to work have an impact on the actuarial 

position of the pension fund.

Participants 

Valued As Active

Inactive 

Vested

Receiving 

Benefits

Total 

Valued

May 1, 2017 5,208 6,465 7,314 18,987

Change due to:

New hire 1,117 - - 1,117

Rehire 356 (136) - 220

Termination (759) 213 - (546)

Disablement (6) (5) 11 - 

Retirement (97) (153) 250 - 

Death (12) (43) (301) (356)

Cash out - (6) - (6)

New beneficiary - 43 126 169

Certain pd. expired - - (3) (3)

Data adjustment (4)* 60** (2)*** 54

Net change 595 (27) 81 649

May 1, 2018 5,803 6,438 7,395 19,636

* Comprised primarily of actives that were removed due to reciprocity out.

** Comprised primarily of records previously assumed deceased because they were over age 70.

*** Comprised primarily of duplicate records that were removed.

CPTF-DV000831

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 21 

 

HOURS WORKED DURING PLAN YEAR

Hours Worked Per Participant

Plan Year Ending 

April 30, 2018 Number Hours Worked

Average 

Hours Worked

Actives

Vested 3,780 6,636,384 1,756

Non-vested, continuing 539 737,605 1,368

Non-vested, new entrant 1,484 701,981 473

Total active 5,803 8,075,970 1,392

Others 135 108,627 805

Total for plan year 5,938 8,184,597 1,378

History of Total Actual and Expected Hours Worked (Thousands)

Plan Year Ending 

April 30, 2019 2018 2017 2016 2015

Expected hours valuation 7,249 6,825 6,908 5,983 5,953

Expected hours PPA cert 8,500 7,500 8,500 8,000 7,500

Actual hours worked n/a 8,185 7,266 7,306 6,772

History of Average Actual and Expected Hours Worked per Participant

CPTF-DV000832

2,000 

1,800 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 

~ 

~ 

-

-

-

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

-

~ 

- -

~ T 

- _..,,,,,-

-

---A . ~ 

- - -

2012 20H 2014 2015 2016 2017 2018 2019 

United Actuarial Services, Inc. 

- vested Avg Hrs 

- vested Hr Assum p 

- Non~VstAvg Hrs 

- Non-Vst HrAssump 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 22 

 

CONTRIBUTIONS MADE DURING PLAN YEAR

Employer Credited Contributions Reported in Employee Data

Plan Year Ending 

April 30, 2018 Number

Credited Contributions 

Reported

Actives

Vested 3,780 $ 39,553,421

Non-vested, continuing 539 3,208,416

Non-vested, new entrant 1,484 3,311,083

Total valued as active 5,803 46,072,920

Others 135 618,340

Total for plan year 5,938 $ 46,691,260

Average credited hourly contribution rate $ 5.70

Comparison with Audited Employer Contributions

Employer credited contributions reported in data $ 46,691,260

Adjusted total employer contributions reported* $ 119,721,179

Total audited employer contributions $ 123,147,221

Percent reported 97%

* Adjusted to reflect the 61% discounted portion of contributions that are not credited for 

benefit accrual purposes.

History of Actual and Expected Total Contributions Received**

** The 2018 PPA cert expected contributions of 131,733,986 in the 2019 column is different than the 

123,737,217 expected contributions used in the 2018 valuation projections. Likewise, the 2017 PPA 

cert expected contributions of 116,648,009 in the 2018 column is different than the 142,582,667

expected contributions used in the 2017 valuation projections and the 2016 PPA cert expected 

contributions of 134,697,603 in the 2017 column is different than the 113,537,396 expected 

contributions used in the 2016 valuation projections.

CPTF-DV000833

I 

I 

160.0 -,---------------------------, 

1 40.0 +-----------------------------i 

120.0 +----------------

.,,100.0 +----------~..::;;;__..,.-~ C: 

0 

= 80. 0 +----r-:r-------:::,,,- ~ 

60.0 

40.0 

20.0 

LJ 

0.0 +-'--~..,c_-r-'--~-~--'---...,.-C-"-,----'-r-'--~'--~--~----i 

2009 2010 2011 2012 2013 2014! 2015 2016 2017 2018 2019 

United Actuarial Services, Inc. 

- Expected Contr 

- Valuation 

Expected Contr 

-PPA Cert 

- Actual Contr 
Active Partici 

A e <1 

< 25 195 

25-29 134 

30-34 115 

35-39 132 

40-44 111 

45-49 81 

50-54 80 

55-59 50 

60-64 20 

65-69 2 

70+ 2 

Totals 922 

Unrecorded 

DOB 23 

Total 

Active 

Lives 945 

Supplemental Statistics 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2018 Actuarial Valuation 

ACTIVE INFORMATION 

e and Service as of Ma 1, 2018 

Years of Service 

1-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40+ Total 

314 15 - - - - - - - 524 

300 128 19 - - - - - - 581 

253 120 128 17 - - - - - 633 

226 117 154 133 23 - - - - 785 

152 88 120 186 146 4 - - - 807 

107 86 117 187 170 62 14 - - 824 

89 67 87 173 166 104 137 3 - 906 

53 28 65 103 105 70 66 2 - 542 

12 22 20 31 38 18 3 - - 164 

1 1 - 3 2 - - - - 9 

- 1 - - - - - - - 3 

1,507 673 710 833 650 258 220 5 - 5,778 

2 - - - - - - - - 25 

1 509 673 710 833 650 258 220 5 - 5 803 

Page 23 

United Actuarial Services, Inc. 

CPTF-DV000834 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 24 

 

INACTIVE VESTED INFORMATION

Inactive Vested Participants by Age as of May 1, 2018

Age Group Number

Estimated Monthly 

Deferred Vested 

Benefits*

< 30 34 $ 2,172

30-34 179 36,829

35-39 614 262,128

40-44 958 546,951

45-49 1,119 755,320

50-54 1,243 912,643

55-59 1,198 790,944

60-64 798 429,141

65-69 206 63,593

70+ 87 42,655

Totals 6,436 3,842,376

Unrecorded birth date 2 225

Total inactive vested lives 6,438 $ 3,842,601

* Amount payable at assumed retirement age as used in the valuation process.

CPTF-DV000835

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 25 

 

RETIREE INFORMATION

Benefits Being Paid by Form of Payment as of May 1, 2018

Monthly Benefits Being Paid

Form of Payment Number Total Average Smallest Largest

Life only* 2,293 $ 4,055,957 $ 1,769 $ 32 $ 8,038

Joint & survivor 2,969 6,258,276 2,108 25 8,846

Disability 484 734,349 1,517 193 4,916

Beneficiaries 1,649 1,383,810 839 11 6,584

Totals 7,395 $ 12,432,392 $ 1,681 $ 11 $ 8,846

Retirees by Age and Form of Payment as of May 1, 2018

Form of Benefits Being Paid

Age

Group

Life

Only*

Joint & 

Survivor Disability Beneficiaries Total

< 40 - - 9 8 17

40-44 - - 21 2 23

45-49 - - 49 10 59

50-54 - - 106 55 161

55-59 162 228 221 107 718

60-64 396 568 78 169 1,211

65-69 502 746 - 195 1,443

70-74 418 570 - 206 1,194

75-79 331 441 - 227 999

80-84 235 232 - 257 724

85-89 147 138 - 243 528

90-94 79 41 - 133 253

95+ 23 5 - 37 65

Totals 2,293 2,969 484 1,649 7,395

* Includes retirees receiving life and certain benefits.

CPTF-DV000836

United Actuarial Services, Inc. 
Supplemental Statistics

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 26 

 

RETIREE INFORMATION (CONT.)

Age of Participants Retired During Last 5 Plan Years

(excludes beneficiaries and disability retirements)

Age at Plan Year Ending April 30,

Retirement 2018 2017 2016 2015 2014

< 52 - - - - - 

52 - - 1 - - 

53 - - 1 - 1

54 - - - - 1

55 36 33 54 20 30

56 11 13 23 15 10

57 8 10 12 4 6

58 14 10 13 5 8

59 13 7 3 10 7

60 11 8 8 5 8

61 8 5 8 1 4

62 31 27 19 12 42

63 11 5 7 3 15

64 6 4 5 2 1

65 63 43 30 28 11

66+ 20 15 11 8 8

Totals 232 180 195 113 152

Average 

retirement age 61.5 61.1 59.7 60.7 60.3

CPTF-DV000837

United Actuarial Services, Inc. 
Page 27

PART III: ASSET INFORMATION

CPTF-DV000838

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 28 

 

MARKET AND ACTUARIAL FUND VALUES

Asset information extracted from the fund’s financial statements audited by Bultynck & 

Co., P.L.L.C. 

Market/Actuarial Value of 

Fund Investments

as of April 30, 2018 2017 2016

Invested assets

Domestic common stocks $ 87,971,144 $ 80,476,728 $ 73,147,576

Foreign common stocks 17,181,416 4,116,213 2,894,880

Mutual funds 215,928,174 220,011,130 216,298,321

Corporate securities 23,682,219 6,194,578 - 

Government securities 16,790,217 2,745,741 - 

Mortgage-backed corp. secur. 3,844,721 271,648 3

Mortgage-backed GSE secur. - 229,070 - 

Real estate investment trusts 2,495,519 2,509,454 2,456,837

Common/collective trusts 7,580,600 8,915,967 9,361,635

Hedge funds 51,799,260 64,019,094 61,305,433

Private equity 122,674,338 143,080,092 134,860,103

Real estate 173,111,462 166,638,915 170,679,611

Cash 18,390,720 19,323,106 11,217,834

Cash equivalents 10,323,446 7,227,063 15,686,707

Prepaid expenses 684,544 684,481 9,043,907

752,457,780 726,443,280 706,952,847

Net receivables* 9,271,229 7,796,517 5,707,381

Market value $ 761,729,009 $ 734,239,795 $ 712,660,227

Fund assets - Actuarial value 

Market value $ 761,729,009 $ 734,239,795 $ 712,660,227

less: Deferred investment

gains and (losses) (10,007,780) (46,999,149) (109,153,386)

Actuarial value $ 771,736,789 $ 781,238,944 $ 821,813,613

Actuarial value as a 

percentage of market value 101.31% 106.40% 115.32%

* Equals receivables, less any liabilities

CPTF-DV000839

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 29 

 

FLOW OF FUNDS

Asset information extracted from the fund’s financial statements audited by Bultynck & 

Co., P.L.L.C. 

Plan Year Ending 

April 30, 2018 2017 2016

Market value at beginning of

plan year $ 734,239,795 $ 712,660,227 $ 746,438,678

Additions

Employer contributions 123,147,221 106,706,279 111,258,164

Net investment income* 56,604,709 76,301,511 (1,590,827)

Other income 127,168 97,527 56,937

179,879,098 183,105,317 109,724,274

Deductions

Benefits paid 148,373,816 157,611,626 139,232,507

Net expenses* 4,016,068 3,914,123 4,270,218

152,389,884 161,525,749 143,502,725

Net increase (decrease) 27,489,214 21,579,568 (33,778,451)

Adjustment - - - 

Market value at end of

plan year $ 761,729,009 $ 734,239,795 $ 712,660,227

Cash flow

Contr.-ben.-exp. (29,242,663) (54,819,470) (32,244,561)

Percent of assets -3.84% -7.47% -4.52%

Estimated net investment return

On market value 7.87% 11.13% -0.22%

On actuarial value 2.56% 1.78% -0.66%

* Investment expenses have been offset against gross investment income.

CPTF-DV000840

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 30 

 

INVESTMENT GAIN AND LOSS

Investment Gain or Loss

Plan Year Ending April 30, 2018

Expected market value at end of plan year

Market value at beginning of plan year $ 734,239,795

Employer contributions and non-investment income 123,274,389

Benefits and expenses paid (152,389,884)

Expected investment income (at 7.50% rate of return) 53,976,154

759,100,454

Actual market value at end of plan year 761,729,009

less: Expected market value 759,100,454

Investment gain or (loss) $ 2,628,555

History of Gains and (Losses)

Plan Year Investment

Ending Gain

April 30, or (Loss)

2018 $ 2,628,555

2017 24,904,067

2016 (56,366,691)

2015 (22,531,938)

2014 20,961,778

2009 (282,819,686)

Deferred Investment Gains and (Losses)

Plan Year

Ending Amount of Gain or (Loss) Deferred as of April 30,

April 30, 2018 2019 2020 2021

2018 $ 2,102,844 $ 1,577,133 $ 1,051,422 $ 525,711

2017 14,942,440 9,961,627 4,980,813 - 

2016 (22,546,676) (11,273,338) - - 

2015 (4,506,388) - - - 

Totals $ (10,007,780) $ 265,422 $ 6,032,235 $ 525,711

CPTF-DV000841

I 

United Actuarial Services, Inc. 
Asset Information

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 31 

 

RATE OF RETURN ON FUND ASSETS

Historical Rates of Net Investment Return

Average Rates of Net Investment Return (dollar weighted)

Return on Market Value Return on Actuarial Value

Period Ending April 30, Period Ending April 30,

Period 2018 2017 2018 2017

One year 7.87% 11.13% 2.56% 1.78%

5 years 6.64% 6.36% 2.56% 3.11%

10 years 2.67% 2.02% 2.19% 2.93%

15 years 5.37% 3.80% 3.47% 2.32%

20 years 3.36% 4.49% 4.35% 4.95%

CPTF-DV000842

20% ~ --------------------------------

-10% +------------------+----t>---------------

-15% +-------------------lf--0---------------

-20% +-----------------3⁄4----------------

0) 

0) 

0) 

0 

0 

0 

N 

0 

0 

N 

N 

0 

0 

N 

<') 

0 

0 

N 

V 

0 

0 

N 

IO 

0 

0 

N 

<O 

0 

0 

N 

United Actuarial Services, Inc. 

r-romo 

g g g 0 N N N N 

Plan Year Ending 

0 

N 

N 

0 

N 

<') 

0 

N 

IO 

0 

N 

<O 

0 

N 

,.._ 

0 

N 

co 

0 

N 

- Market Value 

- Actuarial Value 

-+-Expected Return 
Page 32

PART IV: ENROLLED ACTUARY’S REPORT

CPTF-DV000843

United Actuarial Services, Inc. 
Enrolled Actuary's Report 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2018 Actuarial Valuation 

NORMAL COST/ACTUARIAL LIABILITY 

Normal Cost as of May 1, 

~w~~~~ $ 

Anticipated administrative expenses (beg. of year) 

Total normal cost $ 

Unfunded Actuarial Liability as of May 1, 

Actuarial liability 

Participants currently receiving benefits $ 

Inactive vested participants 

Active participants 

Jess: Fund assets (actuarial value) 

Unfunded actuarial liability (not less than 0) $ 

United Actuarial Services, Inc. 

Page 33 

CPTF-DV000844 

2018 

14,376,040 $ 

3,855,422 

18,231,462 $ 

2018 

1,486,101,209 $ 

289,394,861 

442,391 ,581 

2,217,887,651 

771 ,736,789 

1,446,150,862 $ 

2017 

14,11 1,595 

4,144,578 

18,256,173 

2017 

1,472,456,622 

282,361 ,270 

444,225,288 

2,199,043,180 

781 ,238,944 

1,417,804,236 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 34 

 

ACTUARIAL LIABILITY RECONCILIATION/PROJECTION

Reconciliation of Unfunded Actuarial Liability

Expected unfunded actuarial liability as of April 30, 2018

Unfunded actuarial liability as of May 1, 2017 $ 1,417,804,236

Normal cost (including expenses) 18,256,173

Actual contributions (123,147,221)

Interest to end of plan year 103,086,512

1,415,999,700

Increase (decrease) due to:

Experience (gain) or loss 49,896,267

Plan amendment - 

Change in actuarial assumptions (19,745,105)

Change in actuarial method - 

Net increase (decrease) 30,151,162

Unfunded actuarial liability as of May 1, 2018 $ 1,446,150,862

Projection of Actuarial Liability to Year End

Actuarial liability as of May 1, 2018 $ 2,217,887,651

Expected increase (decrease) due to:

Normal cost (excluding expenses) 14,376,040

Benefits paid (156,614,181)

Interest on above (4,794,829)

Interest on actuarial liability 166,341,574

Net expected increase (decrease) 19,308,604

Expected actuarial liability as of April 30, 2019 $ 2,237,196,255

CPTF-DV000845

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 35 

 

FUNDED RATIOS

Present Value of Accumulated Benefits/

Funded Ratios

Actuarial Study as of May 1, 2018 2017

Present value of vested accumulated benefits

Participants currently receiving benefits $ 1,486,101,209 $ 1,472,456,622

Inactive vested participants 287,640,501 279,647,779

Active participants 431,300,579 433,282,347

Total 2,205,042,289 2,185,386,748

Nonvested accumulated benefits 12,845,362 13,656,432

Present value of all accumulated benefits $ 2,217,887,651 $ 2,199,043,180

Market value of assets $ 761,729,009 $ 734,239,795

Funded ratios (Market value)

Vested benefits 34.5% 33.6%

All accumulated benefits 34.3% 33.4%

Actuarial value of assets $ 771,736,789 $ 781,238,944

Funded ratios (Actuarial value used for PPA)

Vested benefits 35.0% 35.7%

All accumulated benefits 34.8% 35.5%

Interest rate used to value benefits 7.50% 7.50%

CPTF-DV000846

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 36 

 

FUNDING PERIOD

The funding period is the approximate number of years that would be required to 

completely fund the unfunded entry age normal actuarial liability if future plan experience 

occurs according to the assumptions. The funding period is an indicator of the long term 

financial soundness of the plan. Historically, funds often targeted a maximum funding 

period of up to 20 years. Today, asset losses are being paid off over a maximum of 15 

years and are the primary driver for ERISA minimum funding. An ultimate target of no 

more than 10 years is recommended. A lower, more conservative funding period target 

can be chosen. As the funding period drops, the risk of having future funding issues also 

diminishes.

Funding Period Calculation 

Actuarial Study as of May 1, 2018 2017

Unfunded actuarial liability

Actuarial liability $ 2,301,227,465 $ 2,290,411,786

less: Fund assets (actuarial value) 771,736,789 781,238,944

1,529,490,676 1,509,172,842

Funds available to amortize unfunded

Anticipated contributions (beg. of yr.) 102,922,672 101,948,474

less: Normal cost (including expenses) 8,114,992 6,695,686

$ 94,807,680 $ 95,252,788

Funding period (years) * * 

* Anticipated contributions are insufficient to pay normal cost and amortize unfunded liability.

CPTF-DV000847

United Actuarial Services, Inc. 
Enrolled Actuary's Report 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

May 1, 2018 Actuarial Valuation 

Current Liability as of May 1, 2018 

Vested current liability 

Participants currently receiving benefits 

Inactive vested participants 

Active participants 

Nonvested current liability 

Inactive vested participants 

Active participants 

Total current liability 

Proj ection of Current Liability to Year End 

Current liability as of May 1, 2018 

Expected increase (decrease) due to: 

Benef;ts accruing 

Benef;ts paid 

Interest on above 

Interest on current liability 

Net expected increase (decrease) 

Expected current liability as of April 30, 2019 

United Actuarial Services, Inc. 

Page 37 

CPTF-DV000848 

CURRENT LIABILITY 

$ 2,319,183,732 

631,597,770 

1,002,743,538 

3,953,525,040 

2,337,109 

21,647,891 

23,985,000 

$ 3,977,510,040 

$ 3,977,510,040 

37,383,894 

(156,614, 181) 

(1 ,223,604) 

118,927,550 

(1 ,526,341) 

$ 3,975,983,699 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 38 

 

FUNDING STANDARD ACCOUNT

Funding Standard Account

Plan Year Ending April 30, 

2019

(Projected)

2018

(Final)

Charges

Prior year funding deficiency $ 327,315,629 $ 258,325,344

Normal cost (including expenses) 18,231,462 18,256,173

Amortization charges (see Appendix C) 218,273,664 215,348,678

Interest on above 42,286,556 36,894,765

Total charges 606,107,311 528,824,960

Credits

Prior year credit balance - - 

Employer contributions 147,306,211 123,147,221

Amortization credits (see Appendix C) 70,679,954 68,599,149

Interest on above 10,824,983 9,762,961

ERISA full funding credit - - 

Total credits 228,811,148 201,509,331

Credit balance (credits less charges) $ (377,296,163) $ (327,315,629)

CPTF-DV000849

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 39 

 

FUNDING STANDARD ACCOUNT WITHOUT AMORTIZATION EXTENSION

The Funding Standard Account on the previous page has been developed using an 

amortization extension approved by the IRS under §412(e) or §431(d) of the Code. We 

are required to report the dollar difference between the minimum required contribution 

with extension and without extension on the Schedule MB. 

Funding Standard Account

Plan Year Ending April 30, 

2019

(Projected)

2018

(Final)

Charges

Prior year funding deficiency $ 636,739,149 $ 555,150,077

Normal cost (including expenses) 18,231,462 18,256,173

Amortization charges (see Appendix C) 183,161,351 206,359,778

Interest on above 62,859,897 58,482,453

Total charges 900,991,859 838,248,481

Credits

Prior year credit balance - - 

Employer contributions 147,306,211 123,147,221

Amortization credits (see Appendix C) 70,679,954 68,599,149

Interest on above 10,824,983 9,762,962

ERISA full funding credit - - 

Total credits 228,811,148 201,509,332

Credit balance (credits less charges) $ (672,180,711) $ (636,739,149)

CPTF-DV000850

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 40 

 

FULL FUNDING LIMIT

Projection of Assets 

for Full Funding Limit

Market

Value

Actuarial

Value

Asset value as of May 1, 2018 $ 761,729,009 $ 771,736,789

Expected increase (decrease) due to:

Investment income 51,106,644 51,857,227

Benefits paid (156,614,181) (156,614,181)

Expenses (4,000,000) (4,000,000)

Net expected increase (decrease) (109,507,537) (108,756,954)

Expected value as of April 30, 2019* $ 652,221,472 $ 662,979,835

* Ignoring expected employer contributions (as required by regulation).

Full Funding Limit 

as of April 30, 2019

For Minimum 

Required

For Maximum 

Deductible

ERISA full funding limit (not less than 0)

Actuarial liability $ 2,237,196,255 $ 2,237,196,255

less: Assets (lesser of market or actuarial) 652,221,472 652,221,472

plus: Credit balance (w/interest to year end) - n/a

1,584,974,783 1,584,974,783

ERISA full funding limit without extension (not less than 0)

Actuarial liability 2,237,196,255 n/a

less: Assets (lesser of market or actuarial) 652,221,472 n/a

plus: Credit bal. w/o ext. (w/int. to year end) - n/a

1,584,974,783 n/a

Full funding limit override 

(not less than 0)

90% of current liability 3,578,385,329 3,578,385,329

less: Assets (actuarial value) 662,979,835 662,979,835

2,915,405,494 2,915,405,494

Full funding limit (greater of ERISA limit and full funding override)

With amortization extension $ 2,915,405,494 $ 2,915,405,494

Without amortization extension $ 2,915,405,494 n/a

CPTF-DV000851

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 41 

 

MINIMUM REQUIRED CONTRIBUTION AND FULL FUNDING CREDIT

Minimum Required Contribution

Plan Year Beginning May 1, 2018

Without 

Extension

With 

Extension

Minimum funding cost

Normal cost (including expenses) $ 18,231,462 $ 18,231,462

Net amortization of unfunded liabilities 112,481,397 147,593,710

Interest to end of plan year 9,803,461 12,436,884

140,516,320 178,262,056

Full funding limit 2,915,405,494 2,915,405,494

Net charge to funding std. acct. (lesser of above) 140,516,320 178,262,056

less: Credit balance with interest to year end (684,494,585) (351,864,301)

Minimum Required Contribution (not less than 0)* $ 825,010,905 $ 530,126,357

Effect of extension $ 294,884,548

* Excise taxes that would otherwise apply in the case of a negative credit balance are waived if the 

provisions of the rehabilitation plan are followed and the plan continues to make scheduled progress

Full Funding Credit to Funding Standard

Account Plan Year Ending April 30, 2019

Without 

Extension

With 

Extension

Full funding credit (not less than 0)

Minimum funding cost (n.c., amort., int.) $ 140,516,320 $ 178,262,056

less: full funding limit 2,915,405,494 2,915,405,494

$ - $ - 

CPTF-DV000852

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 42 

 

MAXIMUM DEDUCTIBLE CONTRIBUTION

The maximum amount of tax-deductible employer contributions made to a pension plan is 

determined in accordance with Section 404(a) of the Internal Revenue Code. For a 

multiemployer pension plan, Section 413(b)(7) of the Internal Revenue Code and IRS 

Announcement 98-1 provide that, if anticipated employer contributions are less than the 

deductible limit for a plan year, then all employer contributions paid during the year are 

guaranteed to be deductible. If anticipated employer contributions exceed the deductible 

limit, the Trustees have two years from the close of the plan year in question to 

retroactively improve benefits to alleviate the problem. 

Maximum Deductible Contribution

Plan Year Beginning May 1, 2018

Preliminary deductible limit

Normal cost (including expenses) $ 18,231,462

10-year limit adjustment (using “fresh start” alternative) 195,984,958

Interest to end of plan year 16,066,232

230,282,652

Full funding limit 2,915,405,494

Maximum deductible contribution override

140% of vested current liability projected to April 30, 2019 5,532,811,064

less: Actuarial value of assets projected to April 30, 2019 662,979,835

4,869,831,229

Maximum deductible contribution* $ 4,869,831,229

Anticipated employer contributions $ 106,782,272

* Equals the lesser of the preliminary deductible limit and the full funding limit, but not less than the 

maximum deductible contribution override.

CPTF-DV000853

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 43 

 

HISTORY OF UNFUNDED VESTED BENEFITS

Presumptive Method

April 30, 

Vested 

Benefits

Interest Rate

Value of 

Vested 

Benefits Asset Value*

Unfunded 

Vested 

Benefits

Unamortized 

Portion of

VAB

1999 8.50% 850,699,898 1,012,396,059 (161,696,161)

2000 8.50% 938,572,993 1,111,005,014 (172,432,021)

2001 8.50% 1,029,784,599 1,179,424,453 (149,639,854)

2002 8.50% 1,107,078,442 1,199,112,035 (92,033,593)

2003 8.50% 1,184,327,138 1,096,149,080 88,178,058

2004 8.50% 1,275,453,703 1,135,029,517 140,424,186

2005 8.50% 1,362,988,818 1,078,562,590 284,426,228

2006 8.50% 1,443,959,383 1,050,435,719 393,523,664

2007 8.00% 1,611,741,457 1,050,682,726 561,058,731

2008 8.00% 1,694,967,827 1,080,411,426 614,556,401

2009 8.00% 1,777,493,533 925,248,368 852,245,165

2010 8.00% 1,784,003,335 1,016,672,140 767,331,195

2011 8.00% 1,868,338,612 967,427,492 900,911,120 2,737,290

2012 8.00% 1,932,955,484 869,984,478 1,062,971,006 2,636,477

2013 7.50% 2,081,917,679 861,607,040 1,220,310,639 2,527,599

2014 7.50% 1,883,082,305 883,023,972 1,000,058,333 242,642,462

2015 7.50% 1,986,839,845 859,593,662 1,127,246,183 233,317,630

2016 7.50% 2,089,265,487 821,813,612 1,267,451,875 223,292,801

2017 7.50% 2,185,386,748 781,238,944 1,404,147,804 212,515,423

2018 7.50% 2,205,042,289 771,736,789 1,433,305,500 200,929,002

* Actuarial value

CPTF-DV000854

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 44 

 

TERMINATION BY MASS WITHDRAWAL

If all employers were to cease to have an obligation to contribute to the plan, the plan 

would be considered “terminated due to mass withdrawal.” In this event, the Trustees 

would have the option of distributing plan assets in satisfaction of all plan liabilities through 

the purchase of annuities from insurance carriers or payment of lump sums. If assets are 

insufficient to cover liabilities, a special actuarial valuation pursuant to Section 4281 of 

ERISA would be performed as of the end of the plan year in which the mass withdrawal 

occurred. If the Section 4281 valuation indicates the value of nonforfeitable benefits 

exceeds the value of plan assets, employer withdrawal liability would be assessed.

The ERISA Section 4281 valuation described above uses required actuarial assumptions 

that are typically more conservative than those used for valuing an on-going plan. In 

order to illustrate the impact of the mass withdrawal assumptions, we performed an 

illustrative Section 4281 valuation as if mass withdrawal had occurred during the prior plan 

year. The value of assets used below is market value without any adjustments for 

outstanding employer withdrawal liability claims. 

As required by regulation, interest rates of 2.27% for the first 20 years and 2.59% for each 

year thereafter and the GAM 94 Basic Mortality Table projected to 2028 were used.

Illustrative Section 4281 Valuation

as of April 30, 2018

Value of nonforfeitable benefits

Participants currently receiving benefits $ 2,448,450,600

Inactive vested participants 705,825,820

Active participants 1,190,832,469

Expenses (per Section 4281 of ERISA) 24,257,815

4,369,366,704

less: Fund assets (market value) 761,729,009

Value of nonforfeitable benefits in excess of (less than) fund assets $ 3,607,637,695

CPTF-DV000855

United Actuarial Services, Inc. 
Enrolled Actuary’s Report

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page 45 

 

ASC 960 INFORMATION

The following displays are intended to assist the fund’s auditor in complying with 

Accounting Standards Codification 960. The results shown are not necessarily indicative 

of the plan’s potential liability upon termination.

Present Value of Accumulated Benefits

Actuarial Study as of May 1, 2018 2017*

Present value of vested accumulated benefits

Participants currently receiving benefits $ 1,486,101,209 $ 1,472,456,622

Expenses on parts. currently rec. benefits 40,867,783 40,492,557

Other participants 718,941,080 712,930,126

Expenses on other participants 19,770,880 19,605,578

2,265,680,952 2,245,484,883

Present value of nonvested accumulated benefits

Nonvested accumulated benefits 12,845,362 13,656,432

Expenses on nonvested benefits 353,247 375,552

13,198,609 14,031,984

Present value of all accumulated benefits $ 2,278,879,561 $ 2,259,516,867

Market value of plan assets $ 761,729,009 $ 734,239,795

Interest rate used to value benefits 7.50% 7.50%

Changes in Present Value of Accumulated Benefits

Present value of accumulated benefits as of May 1, 2017* $ 2,259,516,867

Increase (decrease) due to:

Plan amendment - 

Change in actuarial assumptions (20,288,096)

Benefits accumulated and experience gain or loss 22,576,909

Interest due to decrease in discount period 169,463,765

Benefits paid (148,373,816)

Operational expenses paid (4,016,068)

Net increase (decrease) 19,362,694

Present value of accumulated benefits as of May 1, 2018 $ 2,278,879,561

* The 2017 present value of accumulated benefits (PVAB) column has been restated from the

2017 valuation to include an operational expense load of 2.75%. This change resulted in an increase of 

$60,473,687 to the 2017 PVAB.

CPTF-DV000856

United Actuarial Services, Inc. 
APPENDICES

CPTF-DV000857

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-1 

PLAN HISTORY

Origins/Purpose

The Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan was established 

effective May 1, 1957 as a result of collective bargaining agreements between the 

Carpenters’ District Council of Detroit and Vicinity and various employer associations and 

other employers working within the jurisdiction of the Carpenters’ District Council.

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management.

Effective May 1, 2002, the Interior Systems Local 1045 Resilient Pension Fund Pension 

Plan was merged with Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan. 

Employer Contributions

The Pension Plan is financed entirely by contributions from the employers as specified in 

the applicable Collective Bargaining Agreements. Contributions began May 1, 1957 at the 

rate of 3% of wages. The rate has been increased through the years. 

Reciprocity

The Trustees adopted a “Money Follows the Man” Reciprocity Agreement with other 

signatory funds within the Third District of the United Brotherhood of Carpenters and 

Joiners of America (AFL-CIO). Also, the Trustees became a party of the International’s 

Reciprocal Agreement for Carpenters Pension Funds, which includes both the Pro-Rata 

and Money Follows the Man reciprocity types.

CPTF-DV000858

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-2 

SUMMARY OF PLAN PROVISIONS

Plan year The 12-month period beginning May 1 and ending the 

following April 30

Vesting/credit year A participant shall accrue 1 vesting/credit year for each 

plan year on and after May 1, 1957, during which the 

participant is credited with 500 or more hours of service. 

500 hours of service is equivalent to 435 hours of work.

Break in service Plan year with less than 500 hours of service (435 hours 

of work)

Inactive participant No hours of service during 2 consecutive plan years

Normal retirement benefit

Eligibility Age 65 or 5th anniversary of participation, if later

Monthly amount • 4.30% of employer contributions for work performed 

prior to May 1, 2004, plus 

• 3.00% of employer contributions for work performed 

May 1, 2004 – April 30, 2007, plus 

• 1.00% of employer contributions for work performed on 

and after May 1, 2007. 

Payable for Life.

CPTF-DV000859

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-3 

SUMMARY OF PLAN PROVISIONS (CONT.) 

Contribution “discounting” Contributions that are “discounted” according to the 

following schedule are not considered in determining 

benefits.

• Contributions for work performed from June 1, 2006 

through May 31, 2007 are generally “discounted” by 

22% to 23%. 

• Contributions for work performed from June 1, 2007 

through May 31, 2008 are generally “discounted” by 

16% to 17%. Some contracts are discounted by 35%.

• Contributions for work performed from June 1, 2008 

through May 31, 2009 are generally “discounted” by 

23% to 23.5%. The Floorlayers contract is discounted 

by 28%; the Millmen and some other contracts are 

discounted by 45%.

• Contributions for work performed from June 1, 2009 

through May 31, 2010 are generally “discounted” by 

37% to 37.5%. The Floorlayers contract is discounted 

by 42%; the Millmen and some other contracts are 

discounted by 45%.

• Contributions for work performed from June 1, 2010 

through May, 31, 2011 are generally “discounted” by 

45% to 46%. The Floorlayers contract is discounted by

51%; the Millmen and some other contracts are 

discounted by 50%.

• Contributions for work performed from June 1, 2011 

through May 31, 2012 are generally “discounted” by 

50% to 53%. The Floorlayers contract is discounted by

56%.

• Contributions for work performed from June 1, 2012 

through May 31, 2013 are generally “discounted” by

55% to 57.75%. The Floorlayers contract is discounted 

by 60.75%.

• Contributions for work performed on and after 

June 1, 2013 are generally “discounted” by 61%. 

Effective on and after January 1, 2019, the Liberty 

Fabricating contract is discounted by 20%.

CPTF-DV000860

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-4 

SUMMARY OF PLAN PROVISIONS (CONT.)

Early retirement benefit

Eligibility Age 55 and 10 credit years, has met Applicable Index 

Requirement, worked at least 435 hours in the two years 

prior to retirement. Applicable Index Requirement is 80 

points if participant had at least 76 points as of May 1, 2010; 

otherwise 85 points.

Monthly amount Normal reduced by 1/3rd of 1% for each month under age 62

(unless eligible for grandfathered exception – see below). 

Payable for life.

Eligibility Age 55 and 10 credit years or age 62 and 3 credit years, 

has not met Applicable Index Requirement, worked at least 

435 hours in the two years prior to retirement.

Monthly amount Normal reduced by 5/9% for each month under age 62 

(unless eligible for grandfathered exception – see below). 

Payable for life.

Eligibility Grandfathered exception: Active at retirement, meets the 

Applicable Index Requirement on or before August 1, 2015

Monthly amount Early retirement benefit will not be less than normal reduced 

by 5%. Payable for life.

Vested benefit

Eligibility Three vesting years, did not work at least 435 hours in the 

two years prior to retirement

Monthly amount 20% of normal after 3 vesting years increasing 20% per year 

to 100% at 7 vesting years. Payable for life commencing at 

age 65, or reduced amount (5/9% reduction for each month 

by which commencement precedes age 65) commencing at 

early retirement age, if eligible.

CPTF-DV000861

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-5 

SUMMARY OF PLAN PROVISIONS (CONT.)

Total and permanent 

disability benefit

Eligibility Under age 62, 5 credit years, disability award from the 

Social Security Administration.

Monthly amount The greater of 75% of vested accrued normal or $260, 

multiplied by vested percentage subject to the following cap:

• Capped at $525 for credit years 5-9

• Capped at $625 for credit years 10-15

• Capped at $725 for credit years 16-19

• Capped at $1,050 for credit years 20-24

• Capped at $1,350 for 25 or more credit years

Payable until eligible for normal, early, recovery or death.

Eligibility Under age 62, less than 5 credit years, disability award from 

the Social Security Administration.

Monthly amount Lump sum payment equal to actuarial equivalent of vested 

accrued benefit.

Pre-retirement surviving 

spouse benefit

Eligibility Death of married vested participant

Monthly or lump sum 

amount

50% of participant’s joint and 50% survivor. Payable to 

spouse for life commencing at participant’s earliest 

retirement age. 

Optional forms • Joint and 50% survivor with pop-up

• Joint and 75% survivor with pop-up

• Joint and 100% survivor with pop-up

• Life-ten years certain

CPTF-DV000862

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-6 

HISTORICAL PLAN MODIFICATIONS

One-time payment

Effective date May 1, 1994

Adoption date July 18, 1994

Provisions Retirees and beneficiaries receiving benefits as of 12/1/94 

received a one-time payment on 1/1/95 equal to the 

average 12/1/94 payment ($623).

Retiree increase

Effective date January 1, 1997 (rescinded January 1, 2010)

Adoption date December 12, 1996

Provisions Retirees and spouses receiving benefits as of 12/31/96 

shall receive an increase in monthly benefits which 

corresponds to the retiree’s years of credited service as 

described below:

Years of

Credited Service

Increase in

Monthly Benefit

0 – 9 $ 50.00

10 – 19 100.00

20 – 29 125.00

30 + 150.00

Vesting schedule

Effective date May 1, 1997

Adoption date December 12, 1996

Provisions Vesting scale changed to 20% at 3 years increasing 20% 

per year to 100% at 7 years.

Vesting for non-bargained employees remained at 100% 

for 5 years.

Normal retirement increase

Effective date May 1, 1997

Adoption date November 12, 1997

Provisions Normal retirement benefit increased from 3.9% to 4.3% of 

employer contributions.

CPTF-DV000863

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-7 

HISTORICAL PLAN MODIFICATIONS (CONT.) 

Pre-retirement survivor 

annuity increase

Effective date May 1, 1997

Adoption date November 12, 1997

Provisions The pre-retirement survivor annuity increased from joint & 

50% survivor to joint and 100% survivor.

Retiree increase

Effective date May 1, 1999 (rescinded January 1, 2010)

Adoption date July 20, 2000

Provisions Retirees and beneficiaries participating in an affiliated 

healthcare plan received a $100 per month increase.

Retiree increase

Effective date May 1, 2000 (rescinded January 1, 2010)

Adoption date December 18, 2000

Provisions Retirees and beneficiaries participating in an affiliated 

healthcare plan received a $100 per month increase.

Pre-ERISA benefit

Effective date May 1, 2000

Adoption date October 19, 2000

Provisions Participants who are active on or after May 1, 2000 and 

qualify for the reinstatement of Credit Years and Vesting 

Years shall have all Plan Years of contributions that 

remained in the Fund after the participant received his 

“cash termination benefit’’ before May 1, 1976 reinstated. 

Retiree increase

Effective date July 1, 2001 (rescinded January 1, 2010)

Adoption date April 26, 2001

Provisions Retirees and beneficiaries who retired between May 1, 

2000 and July 1, 2001 and participated in an affiliated 

healthcare plan received a $100 per month increase.

CPTF-DV000864

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-8 

HISTORICAL PLAN MODIFICATIONS (CONT.) 

Plan merger

Effective date May 1, 2002

Adoption date March 19, 2002

Provisions Resilient Floor Decorators Local #2265 Pension Fund 

was merged into the Fund.

Joint and survivor option

Effective date January 1, 2002

Adoption date July 18, 2001

Provisions A 75% joint and survivor option was added to the plan.

Disability and employment

Effective date January 1, 2004

Adoption date April 12, 2004

Provisions The plan was amended to allow disabled participants to 

resume employment in supervisory capacity and continue 

to receive disability payments.

Normal retirement 

decrease

Effective date May 1, 2004

Adoption date April 12, 2004

Provisions The crediting rate for employer contributions for work 

performed on and after May 1, 2004 was decreased from 

4.30% to 3.00%. Contributions for work performed prior 

to May 1, 2004 are still credited at 4.30%.

Normal retirement 

decrease

Effective date June 1, 2006 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2006 are generally 

“discounted” by 22% to 23%.

CPTF-DV000865

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-9 

HISTORICAL PLAN MODIFICATIONS (CONT.) 

Normal retirement 

decrease

Effective date May 1, 2007 

Adoption date April 17, 2007

Provisions The crediting rate for employer contributions for work 

performed on and after May 1, 2008 was decreased from 

3.00% to 1.00%. 

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2007 are generally 

“discounted” by 16% to 17%. Some contracts are 

discounted by 35%.

Change to Index 85 and 

minimum age 55

Effective date January 1, 2008

Adoption date April 17, 2007

Provisions For participants who became active on or after January 1, 

2008, the age plus service equal to 80 is changed to age 

55 and age plus service of 85.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2008 are generally 

“discounted” by 23% to 23.5%. The Floorlayers contract 

is discounted by 28% and the Millmen and some other 

contracts are discounted by 45%.

CPTF-DV000866

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-10 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2009 are generally 

“discounted” by 37% to 37.5%. The Floorlayers contract 

is discounted by 42% and the Millmen and some other 

contracts are discounted by 45%.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2010 are generally 

“discounted” by 45% to 46%. The Floorlayers contract is 

discounted by 51% and the Millmen and some other 

contracts are discounted by 50%.

Elimination of postretirement improvements

Effective date January 1, 2010

Adoption date March 10, 2010

Provisions Post-retirement increases granted May 1, 1999; May 1, 

2000; June 1, 2001 and December 31 1996 are 

eliminated.

Change to Index 85 

Effective date May 1, 2010

Adoption date March 10, 2010

Provisions For participants who are not grandfathered (age plus 

service of at least 76 on May 1, 2010), the index 80 

requirement changed to index 85. Participants who joined 

the plan on or after May 1, 2007 must also be at least age 

55 in order to qualify for index 85.

CPTF-DV000867

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-11 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2011 are generally 

“discounted” by 52% to 53%. The Floorlayers contract is 

discounted by 56% and the Millmen and some other 

contracts are discounted by 50%.

Non-credited contribution 

rate change

Effective date June 1, 2011

Adoption date July 12, 2012

Provisions The “cap” on the non-credited contribution rate was 

removed retroactive to June 1, 2011.

Terms of Reciprocity 

Agreement

Effective date June 1, 2012

Adoption date July 12, 2012

Provisions The reciprocity agreement with the Michigan Carpenters’ 

Pension Fund was modified so that only credited amounts 

are transferred back to the members’ home funds.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2012 are generally 

“discounted” by 55% to 57.75%. The Floorlayers contract 

is discounted by 60.75%.

CPTF-DV000868

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-12 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Early retirement benefit

Effective date August 1, 2013 (retro to September 1, 2008)

Adoption date May 7, 2013

Provisions No unreduced early retirements until age 62. Participants 

can retire as early as 55 with a reduced benefit. Early 

retirement reduction will be 5/9% per month prior to age 

62 (1/3% per month if applicable Index requirement is 

satisfied). For active participants who qualify for the 

grandfather exception, the benefit will be reduced by no 

more than 5%.

Participants, surviving spouses and beneficiaries who 

entered pay status between September 1, 2008 and 

August 1, 2013 will have their benefits recalculated as if 

the new early retirement rules had been in effect at the 

time of their retirement, but the benefit will not be reduced 

by more than 5%.

Vested benefit

Effective date August 1, 2013

Adoption date May 7, 2013

Provisions Participants who fail to cure a break in service by working 

435 hours in the two years prior to retirement will have 

their benefit reduced 5/9% for each month under age 65.

CPTF-DV000869

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-13 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Disability benefit

Effective date August 1, 2013 (retro to September 1, 2008)

Adoption date May 7, 2013

Provisions Participants must now obtain a disability award from the 

Social Security Administration in order to be eligible for 

disability benefits under the pension plan. Participants 

with disability benefits in pay status as of August 1, 2013

that commenced on or after September 1, 2008 must 

secure a Social Security disability award by August 1, 

2015 in order to retain their benefit.

Additionally, disability benefits commencing on or after 

September 1, 2008 will be capped in accordance with the 

following schedule:

Credit Years Cap on Monthly Benefit

5-9 $525

10-15 $625

16-19 $725

20-24 $1,050

25+ $1,350

Death benefits

Effective date August 1, 2013

Adoption date May 7, 2013

Provisions Pre-retirement death benefits discontinued for unmarried 

participants. Surviving spouse pre-retirement death 

benefit reduced to 50% of the joint and 50% survivor 

annuity.

Pre- and post-retirement lump sum death benefits 

discontinued.

Non-credited contribution 

rate change

Effective date Various dates 

Provisions The plan was amended so that contributions for work 

performed on or after June 1, 2013 are generally 

“discounted” by 61%. 

CPTF-DV000870

United Actuarial Services, Inc. 
Appendix A – Plan Provisions

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page A-14 

HISTORICAL PLAN MODIFICATIONS (CONT.)

Suspension of benefit 

rules

Effective date August 1, 2013

Adoption date May 7, 2013

Provisions Effective for early retirements that commenced on or after 

September 1, 2008, early retirees who work any hours in 

prohibited employment will have their benefits suspended 

to the extent permitted by law.

Disability benefit

settlement

Effective date August 1, 2013

Settlement date October 18, 2016

Provisions Due to the settlement of a class action lawsuit, the 

disability benefit change effective August 1, 2013 was 

partially reversed for retirees receiving a disability benefit 

as of August 1, 2013 who had an effective date on or after 

September 1, 2008. Such retirees were restored to 95% 

of their prior disability benefit amount, and back payments 

were made retroactive to August 1, 2013.

CPTF-DV000871

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-1 

ACTUARIAL ASSUMPTIONS

The following assumptions are used throughout this report except as specifically noted 

herein.

Valuation date May 1, 2018

Interest rates

ERISA rate of return 

used to value liabilities

7.50% per year net of investment expenses.

Current liability 2.99% (in accordance with Section 412(l)(7)(C) of the 

Internal Revenue Code)

Operational expenses $ 4,000,000 per year excluding investment expenses. For 

the present value of expenses for ASC 960, a 2.75% load 

was applied to the ASC 960 liabilities. This load was 

calculated by taking 3 years of actual expenses divided by 

3 years of actual benefit payments.

Pop-up feature Retirees receiving a joint and survivor form of benefit have 

pop-up amounts which are individually estimated. 

Liabilities for non-retired participants’ benefits to be paid 

after retirement are increased by 0.6%.

Mortality

Assumed plan mortality RP-2014 Blue Collar Mortality Tables for employees and 

healthy annuitants adjusted backward to 2006 with the MP2014 projection scale and projected forward using the MP2018 projection scale.

Current liability Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males and 

females as required by Section 431(c)(6) of the Internal 

Revenue Code.

CPTF-DV000872

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-2 

ACTUARIAL ASSUMPTIONS (CONT.) 

Withdrawal T-7 Turnover Table from The Actuary’s Pension Handbook

(less GAM 51 mortality) – specimen rates shown below. 

Assumed rate during second year of employment is 50%*, 

30% for the third year, and 15% for the fourth and fifth 

years.

Age

Withdrawal 

Rate

25 .0967

30 .0930

35 .0871

40 .0775

45 .0635

50 .0422

55 .0155

60 .0015

* All newly reported participants are considered to have 

already worked their first year of employment.

Disability 30% of the 1964 OASDI male table - specimen rates 

shown below:

Age

Disability 

Rate

25 .0003

30 .0003

35 .0005

40 .0007

45 .0011

50 .0018

55 .0030

60 .0049

CPTF-DV000873

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-3 

ACTUARIAL ASSUMPTIONS (CONT.) 

Retirement 

Active lives According to the following schedule:

 Age

Without

Index 80 or 85

Requirements

With

Index 80 or 85

Requirements 

55 .10 .25

56 .10 .25

57 .10 .25

58 .10 .25

59 .15 .25

60 .15 .25

61 .30 .25

62 .30 .40

63 .30 .40

64 .05 .40

65+ 1.00 1.00

Resulting in an average expected retirement age of 59.7

Inactive vested lives Age 59 if at least 10 years of service, and age 62 if less than 

10 years of service. It is assumed that inactive vested 

participants will not qualify for index 80 or 85.

Disabled lives Disability benefit assumed payable until the earliest of age 

62, recovery or death. Then normal retirement benefit 

commences.

Future Hours Worked

Vested lives 1,600 hours per year, 0 after assumed retirement age

Non-Vested lives 600 hours per year, 0 after assumed retirement age

Future hourly contribution 

rate

Based on individual’s average rate received for the most 

recent plan year increased to reflect known bargained 

increases. Additionally, an average “discount” of 61% was 

assumed. 

Age of participants with 

unrecorded birth dates

Based on average entry age of participants with recorded 

birth dates and same vesting status.

Marriage assumptions 65% assumed married with the male spouse 2 years older 

than his wife.

CPTF-DV000874

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-4 

ACTUARIAL ASSUMPTIONS (CONT.) 

Optional form 

assumption

For the non-retired participants, the following table shows 

the percent assumed to elect an optional form at retirement.

Optional form

Married

Participants

Single

Participants

Life annuity 15% 85%

Life-ten year certain 5% 15%

Joint & 50% survivor 20% n/a

Joint & 75% survivor 15% n/a

Joint & 100% survivor 45% n/a

Deferred beneficiary 

lump sum payments

Benefit payments for deferred beneficiaries of deceased 

participants that are due a lump sum once the plan emerges 

from critical status are assumed to be paid 20 years after 

the valuation date.

QDRO benefits Benefits to alternate payee included with participant’s 

benefit until payment commences.

Section 415 limit 

assumptions

Dollar limit $220,000 per year

Assumed form of 

payment for those limited 

by Section 415

Qualified joint and 100% survivor annuity.

Benefits not valued Lump sum disability for participants under age 62 with less 

than 5 credit years.

CPTF-DV000875

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-5 

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS

The non-prescribed actuarial assumptions were selected to provide a reasonable long 

term estimate of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for the 

selection of each non-prescribed assumption that has a significant effect on the valuation 

results.

ERISA rate of return used 

to value liabilities

Future rates of return were modeled based on the Plan’s 

current investment policy asset allocation and composite, 

long-term capital market assumptions taken from Horizon 

Actuarial’s 2018 survey of investment consultants. 

Based on this analysis, we selected a final assumed rate 

of 7.50%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities.

Mortality The RP-2014 Blue Collar Mortality Tables for employees 

and healthy annuitants adjusted backward to 2006 with the 

MP-2014 projection scale and projected forward using the 

MP-2018 projection scale was chosen as the base table for 

this population. 

The blue collar table was chosen based on the industry of 

plan participants.

Retirement Actual rates of retirement by age were last studied for the 

period May 1, 2012 and April 30, 2015. The assumed 

future rates of retirement were selected based on the 

results of this study. No further adjustments were deemed 

necessary at this time.

Withdrawal Actual rates of withdrawal by age were studied for the 

period May 1, 2013 and April 30, 2018. The assumed 

future rates of withdrawal were selected based on the 

results of this study. 

Future hours worked Based on review of recent plan experience adjusted for 

anticipated future changes in workforce.

CPTF-DV000876

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-6 

ACTUARIAL ASSUMPTIONS USED FOR PROJECTIONS

The assumptions used for the credit balance, funded ratio and PPA zone projections are 

the same as used throughout the report with the following exceptions. 

Assumed return on fund 

assets

Current year projections 6.20% for the first 10 years (5/1/2018-4/30/2028)

7.50% thereafter

Prior year projections 7.50% for the first year (5/1/2017-4/30/2018)

6.60% for the next 10 years (5/1/2018-4/30/2028) 

7.50% thereafter

Future total hours worked

Current year projections 8,400,000 for the plan year ending in 2019

8,200,000 for the plan year ending in 2020

8,000,000 for the plan year ending in 2021

7,300,000 for the plan year ending in 2022

7,000,000 thereafter

Prior year projections 9,200,000 for the plan year ending in 2018

8,500,000 for the plan year ending in 2019

8,250,000 for the plan year ending in 2020

8,000,000 for the plan year ending in 2021

7,000,000 thereafter

Contribution rate 

increases since prior year

None

Plan changes since prior 

year

None

Open group projections Stable population assumed with new entrants replacing 

active participants as they withdraw, retire or die. New 

entrants are based upon entry age of the current active 

population.

CPTF-DV000877

United Actuarial Services, Inc. 
Appendix B – Actuarial Assumptions and Methods

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page B-7 

ACTUARIAL METHODS

Funding method

ERISA Funding Traditional unit credit cost method, effective May 1, 2003.

Funding period Individual entry age normal with costs spread as a level 

dollar amount over service.

Population valued

Actives Eligible employees with at least one hour during the 

preceding plan year.

Inactive vested Vested participants with no hours during the preceding 

plan year.

Retirees Participants and beneficiaries in pay status as of the 

valuation date.

Asset valuation method

Actuarial value Smoothed market value effective May 1, 1997. Gains and 

losses are spread over a 5-year period. The actuarial 

value is limited to not less than 80% and not more than 

120% of the actual market value of assets in any plan year.

Unfunded vested 

benefits

For the presumptive method, actuarial value, as described 

above, is used.

Pension Relief Act of 2010 • 10-year smoothing was elected with respect to the loss 

incurred during the plan year ended in 2009.

• The 130% cap on actuarial value of assets was elected 

for the plan years beginning in 2009 and 2010.

• 30-year amortization of net investment loss was 

elected with respect to the loss incurred during the plan 

year ended in 2009. The loss was allocated to future 

years using the “prospective method” of IRS. The 

amount of each allocation is shown in Appendix C.

Effective date of 

amortization extension May 1, 2008

CPTF-DV000878

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2018 Actuarial Valuation

Bases Shown: With Extension

Charges

5/1/1977 Lath. UAL 45 4 0 291,741 81,027

5/1/1977 UAL 45 4 0 17,718,623 4,921,122

5/1/1978 Amendment 45 5 0 3,376,803 776,397

5/1/1979 Amendment 45 6 0 4,612,086 914,029

5/1/1980 Amendment 45 7 0 9,177,168 1,611,770

5/1/1984 Amendment 35 1 0 890,079 890,079

5/1/1984 Lath. ben 35 1 0 36,795 36,795

5/1/1985 Amendment 35 2 0 3,530,634 1,829,122

5/1/1985 Lath. ben 35 2 0 12,853 6,661

5/1/1986 Amendment 35 3 0 2,971,672 1,062,993

5/1/1987 Amendment 35 4 0 9,983,429 2,772,771

5/1/1987 Method change 35 4 0 3,315,808 920,922

5/1/1989 Amendment 35 6 0 3,524,816 698,551

5/1/1990 Amendment 35 7 0 13,325,591 2,340,349

5/1/1991 Assumption 35 8 0 7,890,551 1,253,145

5/1/1992 Amendment 35 9 0 3,951,665 576,270

5/1/1993 Assumption 35 10 0 67,524 9,150

5/1/1994 Amendment 35 11 0 5,390,050 685,401

5/1/1995 Assumption 35 12 0 13,015,155 1,565,182

5/1/1996 Assumption 19,314,830 35 13 0 12,256,551 1,403,110

5/1/1997 Amendment 115,128,332 35 14 0 76,976,056 8,434,955

5/1/1997 Assumption 2,432,702 35 14 0 1,626,528 178,234

5/1/1999 Amendment 22,642,031 35 16 0 16,508,890 1,679,932

5/1/1999 Experience 20,053,818 20 1 0 1,408,505 1,408,505

5/1/2000 Amendment 36,206,741 35 17 0 27,365,028 2,698,320

5/1/2000 Assumption 10,287,556 35 17 0 7,775,330 766,684

5/1/2000 Experience 5,279,519 20 2 0 760,722 394,108

5/1/2001 Experience 33,142,699 20 3 0 7,252,134 2,594,157

5/1/2002 Amendment 65,943,178 35 19 0 52,995,052 4,950,029

5/1/2002 Experience 70,475,288 20 4 0 20,624,901 5,728,304

5/1/2003 Assumption 85,964,800 35 20 0 70,925,316 6,471,832

5/1/2003 Experience 254,431,353 20 5 0 92,735,197 21,321,738

5/1/2004 Experience 20,035,740 20 6 0 8,687,262 1,721,652

5/1/2005 Experience 116,546,347 20 7 0 58,221,566 10,225,349

5/1/2006 Assumption 32,822,460 35 23 0 28,898,700 2,487,581

Page C-1

CPTF-DV000879

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2018 Actuarial Valuation

Bases Shown: With Extension

5/1/2006 Experience 61,302,815 20 8 0 34,461,935 5,473,101

5/1/2007 Assumption 97,147,893 35 24 0 87,074,795 7,375,039

5/1/2007 Experience Loss 36,021,921 20 9 0 22,380,357 3,263,726

5/1/2008 Assumptions 29,589,137 20 10 0 20,059,193 2,718,458

5/1/2008 Experience 21,904,410 20 10 0 14,849,531 2,012,435

5/1/2009 Experience 29,524,251 15 6 0 15,799,966 3,131,258

5/1/2009 Relief 09 Asset 163,705,587 29 20 0 143,228,617 13,069,403

5/1/2010 Experience 16,798,389 15 7 0 10,127,147 1,778,612

5/1/2011 Assumptions 14,968,746 15 8 0 9,963,278 1,582,326

5/1/2011 Expereince 19,762,045 15 8 0 13,153,724 2,089,019

5/1/2011 Relief 09 Asset 83,446,610 27 20 0 74,499,236 6,797,947

5/1/2012 Assumptions 3,586,082 15 9 0 2,595,395 378,487

5/1/2012 Experience 127,391,921 15 9 0 92,198,862 13,445,352

5/1/2012 Relief 09 Asset 9,268,532 26 20 0 8,370,561 763,802

5/1/2013 Assumptions 112,407,257 15 10 0 87,409,320 11,845,867

5/1/2013 Relief 09 Asset Loss 42,325,699 25 20 0 38,709,164 3,532,155

5/1/2014 Relief 09 Asset Loss 39,456,467 24 20 0 36,623,855 3,341,874

5/1/2015 Assumptions 66,762,182 15 12 0 58,504,254 7,035,631

5/1/2015 Experience 53,022,966 15 12 0 46,464,466 5,587,744

5/1/2016 Amendment 19,478,191 15 13 0 17,930,727 2,052,679

5/1/2016 Experience 83,462,560 15 13 0 76,831,792 8,795,575

5/1/2017 Assumptions 46,472,895 15 14 0 44,693,576 4,897,475

5/1/2017 Experience 62,924,769 15 14 0 60,515,554 6,631,231

5/1/2018 Experience 49,896,267 15 15 0 49,896,267 5,258,242

Total Charges: 1,654,442,353 218,273,664

Page C-2

CPTF-DV000880

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2018 Actuarial Valuation

Bases Shown: With Extension

Credits

5/1/1989 Assumption 30 1 0 2,565,526 2,565,526

5/1/1990 Lath. assum 30 2 0 52,463 27,180

5/1/1992 Assumption 30 4 0 1,476,671 410,128

5/1/1999 Assumptions 104,779,461 30 11 0 66,413,367 8,445,154

5/1/2009 Amendment 19,793,553 15 6 0 10,592,560 2,099,247

5/1/2009 Method (Relief) 77,104,031 30 21 0 68,231,714 6,095,115

5/1/2010 Amendment 101,829,896 15 7 0 61,389,586 10,781,743

5/1/2010 Relief 09 Asset 55,383,209 28 20 0 48,926,246 4,464,449

5/1/2013 Amendment 186,630,145 15 10 0 145,125,984 19,667,733

5/1/2013 Experience Gain 5,974,815 15 10 0 4,646,087 629,647

5/1/2014 Amendment 66,875,803 15 11 0 55,422,932 7,047,605

5/1/2014 Assumptions 24,371,644 15 11 0 20,197,854 2,568,369

5/1/2014 Experience 25,585,607 15 11 0 21,203,922 2,696,300

5/1/2016 Assumptions 10,447,082 15 13 0 9,617,103 1,100,950

5/1/2018 Assumptions 19,745,105 15 15 0 19,745,105 2,080,808

Total Credits: 535,607,120 70,679,954

Net Charges: 1,118,835,233 147,593,710

Less Credit Balance:

Less Reconciliation Balance:

Unfunded Actuarial Liability:

-327,315,629

0

1,446,150,862

Page C-3

CPTF-DV000881

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2018 Actuarial Valuation

Bases Shown: Without Extension

Charges

5/1/1979 Amendment 40 1 0 1,143,729 1,143,729

5/1/1980 Amendment 40 2 0 3,799,344 1,968,335

5/1/1989 Amendment 30 1 0 874,096 874,096

5/1/1990 Amendment 30 2 0 5,516,787 2,858,094

5/1/1991 Assumption 30 3 0 4,189,993 1,498,800

5/1/1992 Amendment 30 4 0 2,437,298 676,928

5/1/1993 Assumption 30 5 0 46,023 10,582

5/1/1994 Amendment 30 6 0 3,944,604 781,747

5/1/1995 Assumption 30 7 0 10,042,004 1,763,658

5/1/1996 Assumption 19,314,830 30 8 0 9,848,582 1,564,111

5/1/1997 Amendment 115,128,332 30 9 0 63,863,171 9,313,161

5/1/1997 Assumption 2,432,702 30 9 0 1,349,453 196,791

5/1/1999 Amendment 22,642,031 30 11 0 14,351,418 1,824,932

5/1/2000 Amendment 36,206,741 30 12 0 24,206,279 2,911,009

5/1/2000 Assumption 10,287,556 30 12 0 6,877,819 827,116

5/1/2002 Amendment 65,943,178 30 14 0 48,157,392 5,277,036

5/1/2003 Assumption 85,964,800 30 15 0 65,134,330 6,864,082

5/1/2004 Experience 20,035,740 15 1 0 2,154,312 2,154,312

5/1/2005 Experience 116,546,347 15 2 0 24,103,691 12,487,453

5/1/2006 Assumption 32,822,460 30 18 0 27,178,755 2,604,837

5/1/2006 Experience 61,302,815 15 3 0 18,299,755 6,545,995

5/1/2007 Assumption 97,147,893 30 19 0 82,386,702 7,695,370

5/1/2007 Experience Loss 36,021,921 15 4 0 13,803,713 3,833,805

5/1/2008 Assumption 29,589,137 15 5 0 13,672,370 3,143,561

5/1/2008 Experience 21,904,410 15 5 0 10,121,457 2,327,132

5/1/2009 Experience 29,524,251 15 6 0 15,799,966 3,131,258

5/1/2009 Relief08 Asset Loss 163,705,587 29 20 0 143,228,617 13,069,403

5/1/2010 Experience 16,798,389 15 7 0 10,127,147 1,778,612

5/1/2011 Assumptions 14,968,746 15 8 0 9,963,278 1,582,326

5/1/2011 Experience 19,762,045 15 8 0 13,153,724 2,089,019

5/1/2011 Relief 09 Asset 83,446,610 27 20 0 74,499,236 6,797,947

5/1/2012 Assumptions 3,586,082 15 9 0 2,595,395 378,487

5/1/2012 Experience 127,391,917 15 9 0 92,198,857 13,445,352

5/1/2012 Relief 09 Asset 9,268,532 26 20 0 8,370,561 763,802

5/1/2013 Assumptions 112,407,257 15 10 0 87,409,320 11,845,867

Page C-4

CPTF-DV000882

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2018 Actuarial Valuation

Bases Shown: Without Extension

5/1/2013 Relief 09 Asset Loss 42,325,699 25 20 0 38,709,164 3,532,155

5/1/2014 Relief 09 Asset Loss 39,456,467 24 20 0 36,623,855 3,341,874

5/1/2015 Assumptions 66,762,182 15 12 0 58,504,254 7,035,631

5/1/2015 Experience 53,022,966 15 12 0 46,464,466 5,587,744

5/1/2016 Amendment 19,478,191 15 13 0 17,930,727 2,052,679

5/1/2016 Experience 83,462,560 15 13 0 76,831,792 8,795,575

5/1/2017 Assumptions 46,472,895 15 14 0 44,693,576 4,897,475

5/1/2017 Experience 62,924,769 15 14 0 60,515,554 6,631,231

5/1/2018 Experience 49,896,267 15 15 0 49,896,267 5,258,242

Total Charges: 1,345,018,833 183,161,351

Credits

5/1/1989 Assumption 30 1 0 2,565,526 2,565,526

5/1/1990 Lath. assum 30 2 0 52,463 27,180

5/1/1992 Assumption 30 4 0 1,476,671 410,128

5/1/1999 Assumptions 104,779,461 30 11 0 66,413,367 8,445,154

5/1/2009 Amendment 19,793,553 15 6 0 10,592,560 2,099,247

5/1/2009 Method (Relief) 77,104,031 30 21 0 68,231,714 6,095,115

5/1/2010 Amendment 101,829,896 15 7 0 61,389,586 10,781,743

5/1/2010 Relief08 Asset 55,383,209 28 20 0 48,926,246 4,464,449

5/1/2013 Amendments 186,630,145 15 10 0 145,125,984 19,667,733

5/1/2013 Experience 5,974,815 15 10 0 4,646,087 629,647

5/1/2014 Amendment 66,875,803 15 11 0 55,422,932 7,047,605

5/1/2014 Assumptions 24,371,644 15 11 0 20,197,854 2,568,369

5/1/2014 Experience 25,585,607 15 11 0 21,203,922 2,696,300

5/1/2016 Assumptions 10,447,082 15 13 0 9,617,103 1,100,950

5/1/2018 Assumptions 19,745,105 15 15 0 19,745,105 2,080,808

Total Credits: 535,607,120 70,679,954

Page C-5

CPTF-DV000883

United Actuarial Services, Inc. 
Date 

Established

Source of Change in 

Unfunded Liability

Original 

Amount

Original 

Period Years Months

Outstanding 

Balance

Amortization 

Payment

Remaining Period 5/1/2018 5/1/2018

Appendix C - Minimum Funding Amortization Bases

Carpenters Pension Trust Fund-Detroit and Vicinity

May 1, 2018 Actuarial Valuation

Bases Shown: Without Extension

Net Charges: 809,411,713 112,481,397

Less Credit Balance:

Less Reconciliation Balance:

Unfunded Actuarial Liability:

-636,739,149

0

1,446,150,862

Page C-6

CPTF-DV000884

United Actuarial Services, Inc. 
Appendix D – Summary of Endangered and Critical Status Rules

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page D-1 

RULES FOR ENDANGERED AND CRITICAL STATUS

Background

The Pension Protection Act of 2006 (“PPA”), enacted in August 2006, established special 

rules for plans in “Endangered” or “Critical” status. These rules become effective with the 

plan year beginning in 2008 and were originally scheduled to “sunset” in 2015.

The Multiemployer Pension Reform Act of 2014 (“MPRA”), enacted in December 2014, 

made the provisions contained in the PPA permanent. MPRA also made numerous 

changes to the PPA rules, including adding a new status for deeply troubled plans: Critical 

and Declining.

Informally, Critical Status is often referred to as “red zone” and Endangered Status as 

“yellow zone.” A plan that is neither Critical nor Endangered is said to be “green zone.”

Criteria for Endangered and Critical

The table below summarizes the criteria for these categorizations. Projected deficiencies 

are calculated as of the last day of each plan year and are based on contribution rates 

codified in bargaining agreements and, if applicable, wage allocations. 

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN:

Plan is Critical if it is described in one or 

more of the following:

• Funded percentage is less than 65%, 

and, inability to pay nonforfeitable 

benefits and expenses for next 7 years, 

or

• Projected funding deficiency (not

recognizing extensions) in the current 

year or next 3 years (next 4 years if 

funded at less than 65%), or

• (1) Contributions are less than current 

year costs (i.e. “normal cost”) plus 

interest on any unfunded past liabilities, 

and, (2) value of vested benefits for 

non-actives is greater than for actives, 

and, (3) projected funding deficiency

(not recognizing extensions) in the 

current year or next 4 years, or

• Inability to pay all benefits and 

expenses for next 5 years.

Plan is Endangered if it is not Critical and it is 

described in one of the following:

• Funded percentage is less than 80%, or

• Projected funding deficiency in the current 

year or next 6 years.

A non-critical plan that meets both of the 

preceding criteria is considered “Seriously 

Endangered” 

A plan that meets one of the two Endangered 

Status criteria above, but was not in Critical or 

Endangered for the preceding year, will 

remain not Critical or Endangered (i.e. it will 

be in “green zone”) provided it is not projected 

to meet either of the two Endangered Status 

criteria as of the end of the 10th plan year 

following the certification year

CPTF-DV000885

United Actuarial Services, Inc. 
Appendix D – Summary of Endangered and Critical Status Rules

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page D-2 

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Critical Status (“Red Zone”) Endangered Status (“Yellow Zone”)

GETTING IN (cont.): 

A plan with a 5-year amortization extension 

under IRC Section 431(d) that previously 

emerged from Critical Status in PYB 2015 or 

later will re-enter Critical Status only if it is 

described in one of the following:

• Projected funding deficiency in the 

current year or next 9 years (including

amortization extensions), or, 

• Projected insolvency within the next 30 

years

GETTING OUT:

Plan emerges from Critical Status when it 

meets all of the following:

• No longer meets any of the Critical 

Status tests, and, 

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

A plan with a 5-year amortization extension 

under IRC Section 431(d) emerges from 

Critical Status when it meets all the 

following:

• No projected funding deficiencies in the 

current year or next 9 years (including

amortization extensions), and, 

• No projected insolvencies in the next 30 

years

Plan emerges from Endangered Status when 

it no longer meets the requirements to be 

classified as Endangered or when it enters 

Critical Status

CPTF-DV000886

United Actuarial Services, Inc. 
Appendix D – Summary of Endangered and Critical Status Rules

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation

Page D-3 

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Restrictions for Endangered and Critical Plans

The Trustees of a plan that is in Endangered or Critical status face a number of restrictions in plan 

improvements that can be adopted and bargaining agreements that can be accepted.

Period Endangered/Critical Restrictions

Date of first certification 

through adoption of funding 

improvement/rehabilitation 

plan (“plan adoption period”)

• No reduction in level of contributions for any participants

• No suspension of contributions

• No exclusion of new or younger employees

• No amendment that increases the liabilities of the plan by 

reason of any increase in benefits, change in accrual, or 

change in vesting unless required by law

After adoption of a funding 

improvement/rehabilitation 

plan until end of funding 

improvement/rehabilitation 

period

• Cannot be amended so as to be inconsistent with funding 

improvement/rehabilitation plan

• No amendment that increases benefits, including future 

accruals, unless actuary certifies as being paid for with 

contributions not contemplated in funding improvement/

rehabilitation plan and still expected to meet applicable 

benchmark after considering the amendment

Additionally, Critical status plans cannot pay benefits greater than the single life 

annuity once the initial red zone notice is sent unless the benefit is eligible for 

automatic cash-out.

Critical and Declining Plans

Beginning in 2015, plans that are in Critical Status and are projecting insolvency within the 

next 15 years (20 years in some circumstances) are certified by the actuary as being in 

“Critical and Declining.” These plans may have access to new tools that will allow them 

to reduce many previously-untouchable benefits, including benefits for participants in pay 

status. However, these expanded benefit reductions require government approval, must 

not be rejected by a majority of all participants through a vote, and are subject to a number 

of other requirements and limitations.

Selected Other MPRA Changes (effective with 2015 plan years)

• Plans projected to be Critical within the next 5 years can elect to be in Critical Status 

immediately

• New contribution rate increases required by a funding improvement or rehabilitation 

plan are not considered in calculating an employer’s withdrawal liability or payment 

schedule

• If, upon the expiration of a collective bargaining agreement under a funding 

improvement or rehabilitation plan, bargaining parties do not adopt a new agreement 

consistent with an updated schedule, the Trustees must implement the update to the 

schedule previously adopted.

CPTF-DV000887

United Actuarial Services, Inc. 
Appendix E – Glossary of Common Pension Terms

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation 

Page E-1 

GLOSSARY OF COMMON PENSION TERMS

Benefits

Accrued Benefit: A benefit that an employee has earned (or accrued) through past 

participation in the plan. It is the amount payable at normal retirement age. 

Why it matters: Under the law, Accrued Benefits generally may not be reduced 

by plan amendment (note that special rules allowing for limited reduction and/or 

suspension of accrued benefits apply to critical status, critical and declining 

status and insolvent plans). 

Actuarial Equivalence: Given a set of actuarial assumptions, when two different sets 

of payment scenarios have an equal present value.

Early Retirement Reduction Factor: A retirement benefit that begins before normal 

retirement age may be reduced. The plan document defines the amount of the 

reduction by formula or a table of factors. This reduction may or may not be actuarially 

equivalent, but its present value can be no less than actuarially equivalent to the benefit 

payable at normal retirement age. 

Benefit Crediting (Accrual) Rate: A general reference to the calculation of the amount 

of monthly retirement benefit earned per dollar contributed or per year or hour worked. 

Assets

Market Value of Assets: This is the fair value of all assets in the fund on an accrued, 

not cash basis. The market value of assets matches the value in the plan audit.

Actuarial Value of Assets: The amount of assets recognized for actuarial valuation 

purposes. Recent changes in market value may be partially recognized (there are 

variations allowed on the exact recognition). Generally the actuarial value is limited to 

not be less than 80% or more than 120% of the market value. 

Why it matters: Many funding calculations use this “smoothed” asset value 

method to lessen the impact of volatility in the market value of plan assets.

Assumed Rate of Return: Long term assumption of the rate of return on assets based 

upon the diversification mix of invested assets. 

Why it matters: This assumption is used in calculating the present values 

discussed in the Liabilities section below. The Assumed Rate of Return has an 

inverse relationship with plan liabilities. In other words, a lower Assumed Rate 

of Return increases liabilities, while a higher Assumed Rate of Return decreases 

plan Liabilities.

CPTF-DV000888

United Actuarial Services, Inc. 
Appendix E – Glossary of Common Pension Terms

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation 

Page E-2 

GLOSSARY OF COMMON PENSION TERMS (CONT.)

Liabilities

Present Value of Accrued Benefits: The discounted value of benefit payments due 

in the future but based only on the current Accrued Benefits of each participant. The 

value is based on actuarial assumptions including an assumed rate of investment 

return. 

Why it matters: This liability is one of the primary factors in determining a plan’s 

annual PPA funded status (see Funded Ratio).

Present Value of Vested Benefits: The discounted value of Accrued Benefits that 

are considered vested (non-forfeitable). Benefits that are not vested include those of 

participants who have not satisfied the plan vesting requirement (usually five years of 

service). In addition under the law some death and temporary disability benefits are 

also considered non-vested regardless of service because they are not considered 

protected benefits. 

Why it matters: This liability is the primary driver of a plan’s Employer Withdrawal 

Liability.

Actuarial (Accrued) Liability: For inactive members this is the same as the Present 

Value of Accrued Benefits above. For active members this depends on the cost 

method selected by the actuary. Under the accrued benefit or traditional unit credit 

cost method this is also the same as the Present Value of Accrued Benefits. Under 

other cost methods (including most commonly entry age normal) this represents an 

alternate allocation of projected benefit cost over the working lifetime of active 

members. Under the entry age normal cost method, the active Actuarial Liability is 

larger than the Present Value of Accrued Benefits. 

Unfunded Actuarial Liability: The Actuarial Liability less the Actuarial Value of 

Assets. 

Current Liability: This is similar to the Present Value of Accrued Benefits, but uses a 

statutory, significantly lower, interest rate (equivalent to an expected rate of return on 

a bond only-type portfolio) and statutory mortality tables. The lower interest rate 

means that Current Liability tends to be significantly higher than the Present Value of 

Accrued Benefits. This number has very little impact on multiemployer plans. 

Normal Cost: The present value of all benefits that are expected to accrue or to be 

earned under the plan during the plan year. The way in which a benefit is considered 

to be earned varies with the actuarial cost method.

Risk: The potential of future deviation of actual results from expectations derived from 

actuarial assumptions.

CPTF-DV000889

United Actuarial Services, Inc. 
Appendix E – Glossary of Common Pension Terms

Carpenters Pension Trust Fund – Detroit and Vicinity Pension Plan

May 1, 2018 Actuarial Valuation 

Page E-3 

GLOSSARY OF COMMON PENSION TERMS (CONT.)

Funding

Funded Ratio (Funded Percentage): Actuarial Value of Assets divided by the 

Present Value of Accrued Benefits. This is one of two key measures used to determine 

a plan’s annual PPA funded status. This may also be referred to as PPA Funded Ratio. 

This must be greater than 80% to avoid endangered status.

Credit Balance: The accumulated excess of actual contributions over legally required 

minimum contributions as maintained in the funding standard account. The funding 

standard account is maintained by the actuary in the valuation process and reported 

annually in schedule MB to the Form 5500 filing. A negative credit balance is known 

as an accumulated funding deficiency. Prior to PPA, an accumulated funding 

deficiency caused an immediate excise tax (waiver under PPA if certain conditions are 

met). After PPA, a current or projected funding deficiency is one of the key measures 

used in determining the annual PPA status. It can eventually trigger an excise tax 

levied on contributing employers.

Withdrawal Liability

Unfunded Vested Benefits (UVB): Present Value of Vested Benefits less the value 

of plan assets determined on either an actuarial or market value basis. The selection 

of asset measurement is part of the withdrawal liability method of the Plan.

Employer Withdrawal Liability (EWL): An employer that withdraws from a 

multiemployer plan is liable for its proportionate share of Unfunded Vested Benefits, 

determined as of the date of withdrawal. 

Why it matters: If a contributing employer leaves the plan while it has Unfunded 

Vested Benefits liability, that employer’s allocated share of Employer Withdrawal 

Liability is either assessed, as applicable, or reallocated among the plan’s 

remaining active employers if the presumptive method is used. A construction 

employer withdrawing from a construction industry plan will not be assessed 

unless they continue performing work within the jurisdiction of the CBA or restart 

such work within a period of 5 years. Small amounts (under $150,000) are 

generally reduced or eliminated pursuant to the “de minimis rule.”

CPTF-DV000890

United Actuarial Services, Inc. 
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.0

Does the application include a description of the proposed benefit suspension – calculated as if

no other limitations apply – that includes:

 the suspension’s effective date (and its expiration date, if applicable);

 whether the suspension provides for different treatment of participants and

beneficiaries;

 a description of the different categories or groups of individuals affected; and

 how the suspension affects these individuals differently?

See section 2.02 of Revenue Procedure 2017‐43.

Document 2.1 provides a description of the proposed benefit suspension under the Pension

Plan.  

CPTF-DV000891
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.1

Document 2.1

Description of the Proposed Benefit Suspension

Effective Date and Expiration

The Board of Trustees of the Pension Plan propose the following reduction of benefits, which

will become effective on July 1, 2020 if approved, will remain in effect indefinitely, and will not

expire by its own terms.

Historical Benefit Formula

The Board of Trustees believe that, in order to understand the proposed suspension formula,

the reader must be aware of the historical benefit formula.

Generally, the accrued benefit for a participant who terminated prior to May 1, 2004 is

determined from the following table:

Plan Year of

Termination

Starting May 1, Formula

<=1976 2.75% of contributions, but not less than $35 per month or more than

$650 per month*

1977‐1978 2.75% of contributions, but not less than $35 per month or more than

$800 per month*

1979

2.75% of the first $15,000 of contributions plus 3% of contributions in

excess of $15,000, but not less $35 per month or more than $900 per

month*

1980‐1983 2.6% of contributions*

1984 2.9% of contributions*

1985 3.2% of contributions*

1986 3.4% (3.2% for PYB < 1985) of contributions

1987‐1988 3.6% (3.4% for PYB < 1985) of contributions

1989 3.7% (3.4% for PYB < 1985) of contributions

1990‐1991 3.85% of contributions

1992‐1996 3.9% of contributions

1997‐2003 4.3% of contributions

* Not less than 3.5% of the first $4,300 of total contributions plus 1.5% of the remaining contributions if

participant on 4/30/1969

A participant who terminates on or after May 1, 2004 will have his or her benefit determined as

follows:

 4.3% of contributions made or required to be made prior 5/1/2004, plus

CPTF-DV000892
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.2

 3% of credited contributions made or required to be made from and after 5/1/2004 but

prior to 5/1/2007 (77.5%‐78% of contributions related to work performed from

6/1/2006 through 5/1/2007 is credited), plus

 1% of credited contributions made or required to be made from and after 5/1/2007

(between 84% and 39% of contributions related to work performed during this period is

credited).

Description of Proposed Suspension

The proposed benefit suspension shall be accomplished by recalculating all accrued benefits

and, for benefits that are in pay status, recalculating such benefit from the revised accrued

benefit.

First, the participant population is divided into 2 classes: “active/retiree” and “deferred

vested.” These classes are defined as follows:

 Active/Retiree – either:

o Worked at least one hour in plan year ended 4/30/2018 or 4/30/2019 (must

have previously met initial participation by working at least 870 hours total over

a 2‐plan‐year period), or

o Is in pay status as a retiree, disabled retiree, beneficiary or alternate payee as of

5/1/2019, or

o Is a beneficiary of a participant who was active at death entitled to a future

benefit  

 Deferred Vested – Is partially or fully vested but did not satisfy active hours requirement

and is not in pay status or otherwise did not meet the Active/Retiree requirements.

Second, the suspension formula is applied based on the individual’s class as defined above.

 Active/Retiree ‐ The accrued benefit earned prior to 5/1/2007 will be reduced by 16%.  

Any accrued benefit earned under the 1% multiplier will be untouched.   

 Deferred Vested ‐ The accrued benefit earned prior to 5/1/2007 will be reduced by 26%.  

Any accrued benefit earned under the 1% multiplier will be untouched.   

Retirees Who Entered Pay Status between 9/1/2008 and 7/31/2013

As an adjustable benefit cut implemented as part of the plan’s rehabilitation plan, the early

retirement factors were changed effective August 1, 2013 with application to any participant

who retired on or after September 1, 2008.  As a result, all participants who entered pay status

between September 1, 2008 and July 31, 2013 had their benefit recalculated as if the new

CPTF-DV000893
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.3

factors had been in place when they originally retired.    However, the new early retirement

reduction was capped at a 5% reduction.

Post‐suspension benefits for this group will be determined using the early retirement factor in

effect when the participant initially retired.  However, no benefit will be increased as a result of

the suspension.

Disability‐Based Limitation

The individual limitations will be applied as per statute.    However, there are some special

circumstances related to the application of the disability‐based limitation.    These are

enumerated below:

 When the disability rules were changed in 2013, disabled retirees without a Social

Security award were allowed one year to obtain such award.  As a result of this change,

some previously disabled participants ceased to qualify under the plan rules.    These

participants will not receive any special protection under the disability‐based limitation.

 As the result of a settlement of a class action lawsuit in October 2016, most disabled

participants who were in pay status as of 8/1/2013 and had taken a cut due to the 2013

rule change, were restored to 95% of their pre‐amendment disability benefit amount.  

After these participants retire, the disability‐based limitation will be applied based on

the 95% of pre‐amendment disability amount.

 Also as the result of the 2016 class action settlement, affected disabled participants who

were:

o In pay status on 8/1/2013, and

o Converted to early retirement prior to October 2016, and

o Had an early retirement benefit that was less than 95% of their prior disability

benefit,

were granted a benefit increase to 95% of their pre‐amendment disability amounts

payable until age 62, at which time their benefit will increase to an unreduced, early

retirement benefit.  For purposes of the disability‐based limitation, the benefit payable

until normal retirement age for these participants will be treated as a disability benefit.

 In the case of separate interest alternate payees, the alternate payee will generally not

receive any portion of the disability‐based limitation.  The exception to this is in the case

of an alternate payee who was assigned a portion of the participant’s disability benefit.  

In this case, such alternate payee will receive a disability‐based limitation based on the

portion of disability benefit assigned and the participant will not receive a disability‐

based limitation based on such portion.

CPTF-DV000894
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.4

 In the case of a shared interest alternate payee, any disability‐based limitation will be

shared in the same manner as the benefit itself.

 Surviving spouses and beneficiaries will not receive any disability‐based limitation.

How Suspension Affects Various Groups of Participants – Main Groupings

Below is a listing of the various groups of participants that are treated differently under the

suspension and a description of how each group is treated differently.    The groups are

designated by the letters A through E.

Group Description How Treated Differently

A Active

Active participants will be subject to the 16% cut level on pre‐

5/1/2007 accruals.  Since they are continuing to accrue benefits, the

effect of any cut relative to the final accrued benefit at retirement

will become less as time passes

B Deferred

Vested

The deferred vested participant group is the only one that is subject

to the higher cut level of 26% of pre‐5/1/2007 accruals

C

Retiree with

8/1/2013

Benefit

Reduction

As described above, the benefits of the retirees in this group were

reduced to reflect a new set of early retirement factors effective

8/1/2013 (though the reduction was limited to 5% of the benefit in

pay status immediately prior to 8/1/2013).  This group is subject to

the 16% cut level on pre‐5/1/2007 accruals, but the early retirement

factor used for determining the post‐suspension benefit in pay

status will be the factor that was in effect when they initially retired.  

Thus, the reduction will be slightly less relative to the benefit in

effect immediately prior to suspension when compared to a

similarly‐situated retiree who did not experience the 8/1/2013

benefit adjustment.

D

Beneficiary of

October 2016

Disability

Lawsuit

Settlement

This group is subject to the 16% cut level on pre‐5/1/2007 accruals.  

However, as described above, the disability‐based limitations are

applied differently to this group as compared to a similarly‐situated

disabled or retired participant who was not a beneficiary of the

lawsuit settlement.

E

Pay Status

Participant Not

In Groups C or

D

This group is subject to the 16% cut level on pre‐5/1/2007 accruals,

but does not receive the benefit of any of the special rules applicable

to groups D and E.

   

CPTF-DV000895
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.5

How Suspension Affects Various Groups of Participants – Sub‐groups

Because the proposed suspension does not affect any benefits accrued on or after May 1, 2007

(those that accrued under the 1% multiplier), each of preceding groups must be sub‐divided

into 3 parts:   

 Those with all accruals prior to May 1, 2007,  

 Those with all accruals on or after May 1, 2007, and  

 Those with accruals both before and after May 1, 2007.   

For simplicity, the 3 possible sub‐groups are labeled 1, 2, and 3.  The way in which each sub‐

group is treated differently is described below:

Sub‐

Group

Description How Treated Differently

1 Pre‐5/1/2007

Accruals Only

The 16% (26% in the case of deferred vested participants) reduction

will apply to the entire accrued benefit

2 Post‐5/1/2007

Accruals Only

As there are no pre‐5/1/2007 accruals, the accrued benefit will be

unaffected by the suspension

3

Pre‐ And Post‐

5/1/2007

Accruals

The 16% (26% in the case of deferred vested participants) reduction

will only apply to the portion of the benefit accrued prior to

5/1/2007.  Therefore, the overall reduction will be less than 16% (or

26%).

Final Groupings

Final groupings are referred to by starting with the letter representing the participant’s main

group and appending the number representing the appropriate sub‐group. For example, “A1,”

“A2,” etc.

The final groupings are summarized below (note that a few of the final groups do not contain

any participants):

Group Description

A1 Active, pre‐5/1/2007 accruals only

A2 Active, post‐5/1/2007 accruals only

A3 Active, pre‐ and post‐5/1/2007 accruals

B1 Deferred vested, pre‐5/1/2007 accruals only

B2 Deferred vested, post‐5/1/2007 accruals only

B3 Deferred vested, pre‐ and post‐5/1/2007 accruals

C1 Retiree with benefit reduction effective 8/1/2013, pre‐5/1/2007 accruals only

C2 Retiree with benefit reduction effective 8/1/2013, post‐5/1/2007 accruals only

C3 Retiree with benefit reduction effective 8/1/2013, pre‐ and post‐5/1/2007 accruals

CPTF-DV000896
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #2 – 2.02 Description of the Proposed Benefit Suspension

2.6

Group Description

D1 Beneficiary of the October 2016 disability lawsuit settlement, pre‐5/1/2007 accruals

only

D2 Beneficiary of the October 2016 disability lawsuit settlement, post‐5/1/2007 accruals

only

D3 Beneficiary of the October 2016 disability lawsuit settlement, pre‐ and post‐5/1/2007

accruals

E1 Retiree not included in a C or D group, pre‐5/1/2007 accruals only

E2 Retiree not included in a C or D group, post‐5/1/2007 accruals only

E3 Retiree not included in a C or D group, pre‐ and post‐5/1/2007 accruals

Note:  In the table above, “retiree” includes beneficiaries and alternate payees

CPTF-DV000897
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #5 – 3.01 Plan Actuary’s Certification of Critical and Declining Status  

as of May 1, 2019

5.0

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

the supporting illustrations, including:

 the plan‐year‐by‐plan‐year projections demonstrating projected insolvency

during the relevant period; and

 separately identifying the available resources (and the market value of assets

and changes in cash flow) during each of those years?

See section 3.01 of Revenue Procedure 2017‐43

Document 5.1 provides the certification of critical and declining status of the Pension Plan’s

actuary.

Supplemental reports that include year‐by‐year solvency projections and the market value of

assets, contributions, investment earnings, benefit payments and plan expenses are provided in

Document 5.2, Exhibits I, II, III. The reports are based on the actuary’s interpretation of the

requirements under Revenue Procedure 2017‐43, Section 3.01.  Please refer to the May 1, 2019

actuarial certification in Document 5.1, the May 1, 2018 actuarial valuation report in Document

41.1, and the actuarial assumptions described in Checklist Item # 25.

   

CPTF-DV000898
Carpenters Pension Trust Fund – Detroit and Vicinity

EIN/Plan #: 38‐6242188/001

Checklist Item #5 – 3.01 Plan Actuary’s Certification of Critical and Declining Status  

as of May 1, 2019

5.1

Document 5.1

Actuary’s Certification of  

Critical and Declining Status

The following is the Pension Plan’s Actuarial Certification of Plan Status as of May 1, 2019, as

required under Internal Revenue Code (IRC) §432. This certification, which designated the

Pension Plan as meeting the “critical and declining status” for the current plan year, was filed

on July 29, 2019.  

Note that the attached certification indicates a different insolvency date than the other

sections of this application.    This is due to slightly different participant data, asset data,

projection methodologies, and assumptions.

CPTF-DV000899
11590 North Meridian Street, Suite 610  Carmel, Indiana 46032-4529  (317) 580-8670  Fax (317) 580-8651

July 29, 2019 

Board of Trustees 

Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

700 Tower Drive, Suite 300 

Troy, MI 48098-2808 

Re: 2019 Actuarial Certification Under the Pension Protection Act 

Dear Trustees: 

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

IRC section 432, with respect to the funded status of the Carpenters Pension Trust Fund - Detroit 

and Vicinity Pension Plan. 

Identifying Information 

Plan Name: Carpenters Pension Trust Fund - Detroit and Vicinity Pension Plan 

EIN/Plan #: 38-6242188/001 

Plan year of Certification: year beginning May 1, 2019 

Plan Sponsor: Board of Trustees of Carpenters Pension Trust Fund – Detroit and Vicinity 

Pension Plan 

Sponsor Address: 700 Tower Drive, Suite 300, Troy, MI 48098-2808 

Sponsor Telephone: 1-800-572-2525 

Enrolled Actuary Name: Angela L. Jeffries 

Enrollment Number: 17-08511 

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

Actuary Telephone: (317) 580-8668 

Certification of Plan Status 

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

checked): 

Safe--Neither Endangered nor Critical Status 

Safe--Neither Endangered nor Critical Status 

Due to Special Rule 

Endangered Status 

Seriously Endangered Status 

Projected to be in Critical Status within 5 years 

Critical Status 

Critical and Declining Status X 

CPTF-DV000900

United Actuarial 

Services, Inc. 

Actua ries a nd Con sulta nts 
Board of Trustees -2- July 29, 2019 

This certification is based on the following results: 

 Projected funded ratio as of May 1, 2019: 34.5% 

 

 Previously emerged from critical status using 

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

emergence rule?: No 

 

 First projected deficiency (with extension): Existing deficiency, FSA projected to 

remain negative as of April 30, 2019 

 

 At least 8 years of benefit payments in plan 

assets?: Yes 

 

 Plan year of projected insolvency: 2034-35 plan year 

 

 Ratio of inactive to active participants: 2.38 

Certification of Scheduled Progress 

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

in the 2014 updated rehabilitation plan. The Plan is not projected to emerge from Critical status 

by the end of the rehabilitation plan period as specified in the updated rehabilitation plan. This 

rehabilitation plan, however, includes the use of the “exhaustion of all reasonable measures” 

clause of IRC 432(e)(3)(A)(ii). Therefore, we interpret scheduled progress for this Plan to mean 

continued use of all reasonable measures to emerge at the earliest date possible or to forestall 

insolvency. 

Basis for Result 

The certifications utilize the assumptions, methods, plan provisions and demographic data as 

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

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

administrator, the asset return for the 2018-19 plan year is assumed to be 6.26%. We also 

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

based on these financial statements. 

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

6.40% per year, with 7.50% per year assumed thereafter. 

 No adjustments were made to the contribution rate assumption. 

CPTF-DV000901

United Actuarial Services, Inc. 
Board of Trustees -3- July 29, 2019 

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

activity, the following hours were assumed: 8,200,000 for the plan year beginning in 

2019; 8,000,000 for the plan year beginning in 2020; 7,800,000 for the plan year 

beginning in 2021, and 7,000,000 for each plan year thereafter. For the 2018-2019 plan 

year, our projections used actual hours of 7,953,779. 

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

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

certifications are intended to be in good faith compliance with the necessary disclosures for 

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

answer questions regarding these certifications. 

Enrollment Number: 17-08511 

Date of Signature: 07-29-2019 

cc: Secretary of the Treasury 

 Mr. Andrew Smith, UAS 

 Ms. Joan Janks, Plan Manager 

 Ms. Linda Olsson, Plan Associate 

 Mr. John Tesija, Fund Counsel 

 Mr. Christopher Scott, Auditor 

m:\docs\det carp\db 28369\valuations\20190501\ppa\20190501 ppa certification.docx 

   

CPTF-DV000902

United Actuarial Services, Inc.