DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C.

September 17, 2020

Michael Rohr

Board of Trustees 

Bricklayers 7 & Allied Craftsmen Local No 7

33 Fitch Blvd.

Austintown, Ohio 44515

Re: Bricklayers and Allied Craftsmen Local 7 Pension Fund (Fund)

Application for Reduction of Benefits

Dear Mr. Rohr and the Board of Trustees:

On August 11, 2020, you were notified that the Secretary of the Treasury (Treasury), in 

consultation with the Secretary of Labor (DOL) and the Pension Benefit Guaranty Corporation 

(PBGC), had reviewed your application (Application) for a reduction in benefits, which was 

submitted on May 29, 2020, and determined that the Application satisfied the requirements of 

subparagraphs (C), (D), (E), and (F) of section 432(e)(9) of the Internal Revenue Code (Code), 

which were added to the Code by the Multiemployer Pension Reform Act of 2014 (MPRA). The 

notification explained that, as required under MPRA, before any benefit reduction could go into 

effect, Treasury would administer a vote of eligible participants and beneficiaries to approve or 

reject the proposed benefit reduction.

The voting period began on August 24, 2020, and ended on September 15, 2020. The Fund 

identified 444 participants and beneficiaries as eligible to vote, and ballots were delivered to 442 of 

these individuals (2 ballots were returned as undeliverable). Of the voters identified by the Fund 

who received a ballot, 96 (or 21.72% of all eligible voters who received a ballot) voted to reject the 

benefit reduction, 60 voted to approve the benefit reduction, and 286 did not return a ballot. 

Because a majority of voters identified as eligible by the Fund did not vote to reject the benefit 

reduction, the benefit reduction is permitted to go into effect. 

Treasury, in consultation with DOL and PBGC, has issued a final authorization to reduce benefits 

under the Fund as described in the Application, effective October 1, 2020, subject to the conditions 

described below.

Under MPRA, the Fund’s ability to reduce benefits is conditioned on the Fund’s compliance with 

subparagraphs (C) and (E) of section 432(e)(9). Under subparagraph (C), after the benefit 

reduction goes into effect, the Fund’s plan sponsor must make an annual determination that, 

despite all reasonable measures to avoid insolvency, the Fund is projected to become insolvent 

unless a benefit reduction continues. The Fund’s plan sponsor must maintain a written record of 

these annual determinations, and this record must include a description of the factors considered to 

determine whether all reasonable measures have been taken to avoid insolvency. The written 

record must be made available to participants and beneficiaries. If the Fund’s plan sponsor fails to 

satisfy the annual plan sponsor determination requirement for a plan year (including maintaining 
Board of Trustees Bricklayers & Allied Craftsmen Local 7 Pension Plan

September 17, 2020

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the written record), then the reduction of benefits will expire as of the first day of the following 

plan year.1

 

Subparagraph (E) of section 432(e)(9) establishes rules that apply to any benefit improvements that 

are made under the Fund during the period that the benefit reduction remains in effect.

A copy of this letter will be posted on the Treasury Department website. Please contact Treasury 

staff if you have any questions or need any additional information.

Sincerely,

Danielle Norris

MPRA Director

cc: Timothy Piatt

Kathy Garrity

 1 26 C.F.R. § 1.432(e)(9)-1(c)(5).