Page 7.0

Automotive Industries Pension Plan

Checklist Item #7

Does the application include the plan actuary’s certification that the plan is projected to 

avoid insolvency if the suspension takes effect and the supporting illustrations, including:

 the plan-year-by-plan-year projections demonstrating projected solvency 

during the relevant period,

 a description of the assumptions used, including the new entrant profile, the 

total contribution base units, and the average contribution rates, and

 separately identifying the available resources (and the market value of assets 

and changes in cash flow) during each of those years?

See section 3.02.

The application filed on behalf of the Automotive Industries Pension Plan includes an Actuarial 

Certification of Plan Solvency under ERISA Section 305(e)(9)(c)(i) and IRC Section 

432(e)(9)(C)(i). This certification includes Exhibit III, which is a year-by-year solvency 

projection that demonstrates that the Pension Plan is projected to become insolvent in the Plan 

Year 2029 taking into account the updated financial experience through June 30, 2016. The 

certification demonstrates in Exhibit IV, that the Pension Plan is projected to avoid insolvency 

with the proposed Suspension Plan going into effect July 1, 2017. The certification separately 

provides the market value of assets, contributions, withdrawal liability payments, investment 

earnings, separately identified benefit payments and plan expenses.

The certification, attached as Document No. 7.1, is based on upon our interpretation of the 

requirements under Revenue Procedure 2016-27, Section 3.02.

Unless otherwise noted, the above certification is based on the actuarial assumptions and plan of 

benefits from the actuarial valuation certificate from the Actuarial Valuation and Review as of 

January 1, 2016. The actuarial valuation is attached as Document No. 7.2.
Page 7.1.1

Automotive Industries Pension Plan 

Actuarial Certification of Plan Solvency under ERISA 

Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) of 

Proposed Benefit Suspensions as of July 1, 2017 

Copyright© 2016 by The Segal Group, Inc. All rights reserved. 
Page 7.1.2

* Segal Consulting 

100 MONTGOMERY STREET, SUITE 500, SAN FRANCISCO, CA 94104 

T 415 263 6200 www.segalco.com 

September 15, 2016 

Board of Trustees 

Automotive Industries Pension Plan 

Alameda, CA 

Dear Trustees: 

As requested by the Trustees and required by ERISA Section 305(e)(9)(C)(i) and Internal Rev

432(e)(9)(C)(i) (taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 2016-27

actuarial analysis of the Trustees' proposed benefit suspensions under ERISA Section 305 and 

permitted because of the Plan 's critical and declining status. Based on our analysis, we project tha

of benefits are reasonably estimated to enable the Plan to avoid insolvency within the meaning of ER

Section 418E, assuming the suspensions of benefits continue indefinitely and the benefit accrual r

upon the proposed July 1, 2017 suspension effective date in accordance with the terms and effectiv

certification. In addition, this analysis demonstrates that the requirements under ERISA Section 

Section 432(e)(9)(D)(iv) (taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 201

The attached exhibits outline the projections performed in accordance with the statute, the publis

the assumptions used in the projections, and a summary of the proposed benefit suspensions. T

prepared based on the Actuarial Valuation as of January 1, 2016 and the Actuarial Certification of 

2016 under IRC Section 432 in accordance with generally accepted actuarial principles an

understanding of the law. The actuarial calculations were completed under the supervision of Paul C
Page 7.1.3

Board of Trustees 

Automotive Industries Pension Plan 

September 15, 2016 

Page2 

Segal Consulting ("Segal ") does not practice law and, therefore, cannot and does not provide legal 

interpretation on which the certification is based reflects Segal's understanding as an actuarial firm

the statute and the significance of its ramifications, Segal recommends that the Board of Trustees co

when making any decisions regarding compliance with ERISA and the Internal Revenue Code. 

Sincerely, 

Segal Consulting, a Member of The Segal Group 

By: 

J. ftm Biddle 1 L. 

Senior Vice President Vice President & Associate Actuar

PXP!hy 

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of the Treas
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

1

September 15, 2016

ACTUARIAL SOLVENCY CERTIFICATION

UNDER ERISA SECTION 305(E)(9)(C)(I) AND IRC SECTION 432(E)(9)(C)(I)

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”), has prepared an actuarial solvency certification

under ERISA Section 305(e)(9)(C)(i) and Internal Revenue Code Section 432(e)(9)(C)(i), taking into account regulation §1.432(e)(9)-1

and Revenue Procedure 2016-27, for the Automotive Industries Pension Plan based on participant data as of December 31, 2015 and asset

values as of June 30, 2016 in accordance with generally accepted actuarial principles and practices. It has been prepared at the request of

the Board of Trustees to assist in meeting the filing and compliance requirements under federal law. This certification may not otherwise

be copied or reproduced in any form without the consent of the Board of Trustees and may only be provided to other parties in its entirety.

Based on the items discussed below, the proposed benefit suspensions are reasonably estimated to enable the Plan to avoid insolvency

within the meaning of ERISA Section 4245, assuming the suspensions of benefits continue indefinitely and the benefit accrual reduction

becomes effective upon the proposed July 1, 2017 suspension effective date in accordance with the terms and effective dates summarized

in this certification. In addition, this analysis demonstrates that the requirements under ERISA Section 305(e)(9)(D)(iv) and IRC Section

432(e)(9)(D)(iv) (taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 2016-27) have been satisfied.

Note that, as required by law, this certification is only intended to demonstrate that the proposed Plan changes are reasonably projected to

be sufficient to avoid insolvency within the meaning of ERISA Section 4245 and IRC Section 418E. The measurements shown in this

actuarial certification are not applicable for other purposes. 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; differences in statutory interpretation;

differences in methodology, changes in plan provisions and changes in applicable law. Due to the legal requirements for this certification,

it does not include an analysis of such future measurements.

This certification is based on the January 1, 2016 actuarial valuation, dated June 7, 2016, as well as the Actuarial Certification of Plan

Status as of January 1, 2016 under IRC Section 432, dated March 30, 2016. This certification reflects the changes in the law made by the

Multiemployer Pension Reform Act of 2014 (MPRA), taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 2016-27. As

required by IRS regulations, assets were updated to June 30, 2016 based on actual experience. Additional assumptions required for the

projections (including those required under MPRA and regulations thereunder), and sources of financial information used are summarized

in Exhibit IX. A summary of the proposed benefit suspensions is included in Exhibit X.

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretations on which

this certification is based reflect Segal’s understanding as an actuarial firm. Based on discussions with the Plan’s legal counsel, it is our

understanding that the proposed benefit suspensions satisfy the requirements for such as set forth in MPRA.

Page 7.1.4
Page 7.1.5 Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the A

Pension Plan 

EIN 

This certification was based on the assumption that the Plan was qualified as a multiemployer plan for the year. 

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

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certifi

accurate. The projected future employment and contribution levels are based on information provided by the plan s

the projections are based on reasonable actuarial estimates, assumptions and methods that (other than projected f

contribution information provided by the plan sponsor) offer my best estimate of anticipated experience under the Pl

Paul C. Poon, ASA, MAAA 

Vice President & Associate Actuary 

Enrolled Actuary No. 14-06069 

Redacted by the U.S. Department of the Treasury
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

3

Certificate Contents

EXHIBIT I Summary of Key Information and Results

EXHIBIT II Development of Projected April 30, 2016 Assets

EXHIBIT III Deterministic Projection of Current Plan without Proposed Suspension

EXHIBIT IV Deterministic Projection of Proposed Suspension

EXHIBIT V Stochastic Projection of Proposed Suspension

EXHIBIT VI Deterministic Projection of 5% Smaller Suspension

EXHIBIT VII Stochastic Projection of 5% Smaller Suspension

EXHIBIT VIII Projected Total Contribution Base Units and Average Contribution Rates

EXHIBIT IX Actuarial Assumptions and Methodology

EXHIBIT X Proposed Benefit Suspensions

Page 7.1.6
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

4

EXHIBIT I

Summary of Key Information and Results

A summary of key information and of the results of the different tests (and subtests) required for the certification are shown below.

A. Key Information

1. Projected year of insolvency without consideration of proposed suspension December 31, 2029

2. Proposed effective date of suspension of benefits July 1, 2017

3. End of extended period December 31, 2062

4. Projected funded percentage (under IRC Section 432(j)(2)) at end of extended period 96.3%*

5. Probability the Plan will avoid insolvency through the extended period 50.3%

6. Number of Plan active participants (based on January 1, 2016 actuarial valuation) 3,923

7. Is the proposed suspension in combination with a partition? No

* See Exhibit VII of report titled: Application under ERISA Section 305(e)(9) and IRC Section 432(e)(9) – Additional Information

B. Limitation on aggregate size of suspension

1. The proposed suspension is reasonably estimated to enable the Plan to avoid insolvency

a. The solvency ratio is projected on a deterministic basis to be at least 1.0 for each plan year throughout the extended period. (See Exhibit IV)

b. The Plan’s projected funded percentage at the end of the extended period does not exceed 100%, but the Plan’s solvency ratio and its available resources

are not projected to decrease at any time during the last five plan years of the extended period. (See Exhibit IV)

c. Based on stochastic projections, the probability that the Plan will avoid insolvency throughout the extended period is more than 50% (see Exhibit V)

Because of the results summarized in B.1, the proposed suspension of benefits satisfies the requirement that it be reasonably estimated to enable the

Plan to avoid insolvency.

2. The proposed suspension does not materially exceed the level that is necessary to avoid insolvency, as required under Regulation Section 1.432(e)(9)-

1(d)(5)(iii)(A)

a. The Plan would fail one or more of the tests in B.1 if the dollar amount of the proposed benefits suspension for each participant and beneficiary were 5%

smaller. (See Exhibits VI and VII.) Note that we tested only against the 5% test and not the larger of the 5% test and the 2% test. By demonstrating failure

based on the 5% test, failure based on the larger of the 5% test and the 2% test is assured.

b. The PBGC did not issue an order partitioning the Plan.

Because of the results in B.2, the proposed suspension of benefits satisfies the requirements that the proposed suspension not materially exceed the

level that is necessary to avoid insolvency.

The proposed benefit suspension satisfies the limitation on aggregate size of suspension.

Page 7.1.7
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

5

EXHIBIT II

Development of Projected April 30, 2016 Assets

The actual change in Market Value of Assets from January 1, 2016 through June 30, 2016 is shown below. Contribution income, benefit

payments, and administrative expenses for the period beginning January 1, 2016 and ending June 30, 2016, and the value of assets as of

June 30, 2016 was based on an unaudited financial statement provided by the Fund Office. The value of assets was reduced by the

withdrawal liability payments receivable.

Year Beginning January 1, 2016

From

January 1, 2016 Through

June 30, 2016

Projected from

July 1, 2016 Through

December 31, 2016

Total for

Plan Year

1. Market Value at beginning of period $1,192,990,400 $1,158,927,465 $1,192,990,400

2. Contributions 10,747,934 10,835,864 21,583,798

2. Withdrawal liability payments* 927,542 927,542 1,855,084

3. Benefit payments

(a) New Entrants - - -

(b) Current Active 1,014,162** 1,048,489 2,062,651

(c) Current Inactive Vested 2,033,125** 2,101,942 4,135,067

(d) Current In Pay Status 64,071,884** 66,240,556 130,312,440

(e) Total 67,119,171 69,390,987 136,510,158

4. Administrative expenses 1,221,722 1,545,000 2,766,722

5. Investment earnings/(loss) 22,602,482 26,821,853 49,424,335

6. Market Value at end of period:

(1)+(2)+(3)-(4e)-(5)+(6) 1,158,927,465 1,126,576,737 1,126,576,737

* The expected withdrawal liability payments for the Plan Year was assumed to be payable ratably throughout the year.

** Estimated based on the actual benefit payments from January 1, 2016 through June 30, 2016.

Page 7.1.8
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

6

EXHIBIT III

Deterministic Projection of Current Plan without Proposed Suspension

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2029.

Year Beginning January 1

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,126,576,737 $1,066,552,409 $1,002,027,690 $937,051,818

2. Contributions 10,835,864 22,300,208 22,946,915 23,612,375 23,612,375

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

4. Benefit payments

(a) New Entrants - - - - -

(b) Current Active 1,048,489 3,805,204 5,484,115 7,041,627 8,684,194

(c) Current Inactive Vested 2,101,942 6,403,146 9,604,503 13,439,525 17,927,571

(d) Current In Pay Status 66,240,556 129,434,384 126,265,297 123,005,812 119,665,333

(e) Total 69,390,987 139,642,733 141,353,916 143,486,964 146,277,099

5. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

6. Investment earnings 26,821,853 58,696,887 55,363,458 56,478,044 54,676,351

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $1,126,576,737 $1,066,552,409 $1,002,027,690 $937,051,818 $867,267,749

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,206,195,142 $1,143,381,607 $1,080,538,782 $1,013,544,848

9. Solvency ratio: (8) ÷ (4e) 8.638 8.089 7.531 6.929

2021 2022 2023 2024 2025

1. Market Value at beginning of year $867,267,749 $790,079,849 $707,240,819 $615,261,452 $515,304,771

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

4. Benefit payments

(a) New Entrants - 4,912 13,029 24,770 42,276

(b) Current Active 10,343,869 12,120,154 13,804,416 15,559,584 17,380,960

(c) Current Inactive Vested 22,593,438 28,684,708 34,004,123 38,878,215 43,664,649

(d) Current In Pay Status 116,227,124 112,606,664 108,965,868 105,230,901 101,402,328

(e) Total 149,164,430 153,416,437 156,787,436 159,693,470 162,490,213

5. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

6. Investment earnings 50,222,654 48,884,713 43,177,220 38,231,708 31,127,596

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $790,079,849 $707,240,819 $615,261,452 $515,304,771 $405,182,697

8. Available resources: (1)+(2)+(3)-(5)+(6) $939,244,280 $860,657,257 $772,048,888 $674,998,242 $567,672,910

9. Solvency ratio: (8) ÷ (4e) 6.297 5.610 4.924 4.227 3.494

* For the period July 1, 2016 through December 31, 2016.

Page 7.1.9
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

7

EXHIBIT III (continued)

Deterministic Projection of Current Plan without Proposed Suspension

Year Beginning January 1

2026 2027 2028 2029

1. Market Value at beginning of year $405,182,697 $284,852,778 $153,449,310 $11,526,643

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588

4. Benefit payments

(a) New Entrants 67,058 99,456 141,976 195,040

(b) Current Active 18,990,518 20,549,179 22,041,230 23,444,907

(c) Current Inactive Vested 48,307,462 53,232,476 57,209,909 60,304,086

(d) Current In Pay Status 97,477,955 93,460,887 89,355,977 85,170,328

(e) Total 164,842,993 167,341,998 168,749,092 169,114,360

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343

6. Investment earnings 23,334,533 14,821,810 5,771,173 N/A

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $284,852,778 $153,449,310 $11,526,643 Insolvent

8. Available resources: (1)+(2)+(3)-(5)+(6) $449,695,771 $320,791,309 $180,275,737 $32,509,265

9. Solvency ratio: (8) ÷ (4e) 2.728 1.917 1.068 0.192

Page 7.1.10
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

8

EXHIBIT IV

Deterministic Projection of Proposed Suspension

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2062.

Year Beginning January 1

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,126,576,737 $1,091,879,545 $1,074,017,425 $1,060,175,521

2. Contributions 10,835,864 22,300,208 22,946,915 23,612,375 23,612,375

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

4. Benefit payments

(a) New Entrants - - - - -

(b) Current Active 1,048,489 3,120,912 3,901,097 5,019,760 6,194,139

(c) Current Inactive Vested 2,101,942 5,371,096 6,471,699 8,781,294 11,388,826

(d) Current In Pay Status 66,240,556 106,501,444 86,923,109 84,234,857 81,502,886

(e) Total 69,390,987 114,993,452 97,295,905 98,035,911 99,085,851

5. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

6. Investment earnings 26,821,853 59,374,742 57,968,045 62,160,960 63,846,308

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $1,126,576,737 $1,091,879,545 $1,074,017,425 $1,060,175,521 $1,046,752,657

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,206,872,997 $1,171,313,331 $1,158,211,432 $1,145,838,509

9. Solvency ratio: (8) ÷ (4e) 10.495 12.039 11.814 11.564

2021 2022 2023 2024 2025

1. Market Value at beginning of year $1,046,752,657 $1,031,223,405 $1,017,861,587 $1,002,177,426 $986,635,198

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

4. Benefit payments

(a) New Entrants - 4,912 13,029 24,770 42,276

(b) Current Active 7,377,565 8,635,525 9,843,866 11,099,312 12,406,359

(c) Current Inactive Vested 14,157,332 17,468,562 20,441,863 23,124,989 25,701,549

(d) Current In Pay Status 78,717,203 75,844,297 72,966,740 70,052,772 67,105,806

(e) Total 100,252,100 101,953,295 103,265,498 104,301,843 105,255,990

5. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

6. Investment earnings 62,968,972 66,898,785 65,950,488 67,254,533 66,123,923

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $1,031,223,405 $1,017,861,587 $1,002,177,426 $986,635,198 $968,743,674

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,131,475,505 $1,119,814,883 $1,105,442,924 $1,090,937,041 $1,073,999,664

9. Solvency ratio: (8) ÷ (4e) 11.286 10.984 10.705 10.459 10.204

* For the period July 1, 2016 through December 31, 2016.

Page 7.1.11
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

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EIN 94-1133245/ PN 001

9

EXHIBIT IV (continued)

Deterministic Projection of Proposed Suspension

Year Beginning January 1

2026 2027 2028 2029 2030

1. Market Value at beginning of year $968,743,674 $948,788,698 $926,580,635 $904,739,736 $881,528,538

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588 1,239,796

4. Benefit payments

(a) New Entrants 67,058 99,456 141,976 195,040 260,156

(b) Current Active 13,589,405 14,747,483 15,878,365 16,956,151 17,888,058

(c) Current Inactive Vested 28,193,506 30,772,132 32,838,052 34,463,600 36,033,891

(d) Current In Pay Status 64,127,637 61,123,999 58,100,836 55,066,096 52,027,990

(e) Total 105,977,606 106,743,070 106,959,229 106,680,887 106,210,095

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343 3,940,322

6. Investment earnings 64,844,090 63,418,287 64,063,077 62,487,069 60,818,758

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $948,788,698 $926,580,635 $904,739,736 $881,528,538 $857,049,050

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,054,766,305 $1,033,323,706 $1,011,698,965 $988,209,425 $963,259,146

9. Solvency ratio: (8) ÷ (4e) 9.953 9.680 9.459 9.263 9.069

2031 2032 2033 2034 2035

1. Market Value at beginning of year $857,049,050 $831,611,664 $806,769,868 $781,212,008 $755,253,310

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,217,664 565,916 347,308 287,020 -

4. Benefit payments

(a) New Entrants 339,494 434,414 545,342 674,456 823,602

(b) Current Active 18,761,680 19,590,130 20,305,069 20,936,877 21,632,525

(c) Current Inactive Vested 37,242,862 38,175,718 38,957,567 39,571,411 39,963,035

(d) Current In Pay Status 48,995,229 45,977,723 42,985,957 40,030,432 37,123,158

(e) Total 105,339,265 104,177,985 102,793,936 101,213,175 99,542,320

5. Administrative expenses 4,000,730 4,060,712 4,120,543 4,179,808 4,238,670

6. Investment earnings 59,072,570 59,218,610 57,396,935 55,534,891 53,637,675

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $831,611,664 $806,769,868 $781,212,008 $755,253,310 $728,722,371

8. Available resources: (1)+(2)+(3)-(5)+(6) $936,950,929 $910,947,854 $884,005,944 $856,466,486 $828,264,691

9. Solvency ratio: (8) ÷ (4e) 8.895 8.744 8.600 8.462 8.321

Page 7.1.12
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

10

EXHIBIT IV (continued)

Deterministic Projection of Proposed Suspension

Year Beginning January 1

2036 2037 2038 2039 2040

1. Market Value at beginning of year $728,722,371 $703,633,676 $678,659,613 $653,796,860 $629,262,229

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 993,850 1,185,188 1,401,230 1,639,666 1,905,831

(b) Current Active 22,234,289 22,678,930 23,222,635 23,655,956 24,014,709

(c) Current Inactive Vested 40,331,806 40,428,629 40,328,930 40,020,205 39,651,602

(d) Current In Pay Status 34,276,947 31,503,457 28,814,936 26,223,277 23,740,070

(e) Total 97,836,892 95,796,204 93,767,730 91,539,104 89,312,212

5. Administrative expenses 4,297,436 4,355,928 4,413,957 4,471,719 4,528,884

6. Investment earnings 53,433,258 51,565,694 49,706,559 47,863,817 46,046,460

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $703,633,676 $678,659,613 $653,796,860 $629,262,229 $605,079,969

8. Available resources: (1)+(2)+(3)-(5)+(6) $801,470,569 $774,455,818 $747,564,591 $720,801,333 $694,392,181

9. Solvency ratio: (8) ÷ (4e) 8.192 8.084 7.973 7.874 7.775

2041 2042 2043 2044 2045

1. Market Value at beginning of year $605,079,969 $581,305,998 $559,440,578 $538,229,828 $517,820,683

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 2,197,987 2,515,751 2,863,849 3,244,443 3,653,650

(b) Current Active 24,287,193 24,516,531 24,686,413 24,749,646 24,740,974

(c) Current Inactive Vested 39,197,105 38,538,610 37,753,448 36,810,758 35,790,038

(d) Current In Pay Status 21,375,465 19,138,941 17,038,280 15,078,637 13,263,627

(e) Total 87,057,749 84,709,833 82,341,990 79,883,484 77,448,289

5. Administrative expenses 4,586,076 4,642,830 4,699,228 4,755,363 4,811,184

6. Investment earnings 44,257,479 43,874,868 42,218,093 40,617,327 39,079,771

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $581,305,998 $559,440,578 $538,229,828 $517,820,683 $498,253,356

8. Available resources: (1)+(2)+(3)-(5)+(6) $668,363,747 $644,150,412 $620,571,818 $597,704,168 $575,701,646

9. Solvency ratio: (8) ÷ (4e) 7.677 7.604 7.537 7.482 7.433

Page 7.1.13
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

11

EXHIBIT IV (continued)

Deterministic Projection of Proposed Suspension

Year Beginning January 1

2046 2047 2048 2049 2050

1. Market Value at beginning of year $498,253,356 $479,606,970 $462,019,816 $445,616,004 $430,487,560

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 4,094,797 4,571,263 5,083,673 5,625,817 6,202,198

(b) Current Active 24,703,800 24,523,917 24,225,155 23,830,351 23,393,439

(c) Current Inactive Vested 34,608,459 33,325,699 31,944,237 30,491,616 28,974,475

(d) Current In Pay Status 11,595,237 10,073,394 8,695,642 7,458,085 6,355,590

(e) Total 75,002,293 72,494,273 69,948,707 67,405,869 64,925,703

5. Administrative expenses 4,866,481 4,921,670 4,976,551 5,031,241 5,086,045

6. Investment earnings 37,610,013 36,216,415 34,909,070 33,696,291 32,583,030

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $479,606,970 $462,019,816 $445,616,004 $430,487,560 $416,671,217

8. Available resources: (1)+(2)+(3)-(5)+(6) $554,609,263 $534,514,090 $515,564,711 $497,893,429 $481,596,920

9. Solvency ratio: (8) ÷ (4e) 7.395 7.373 7.371 7.386 7.418

2051 2052 2053 2054 2055

1. Market Value at beginning of year $416,671,217 $405,263,666 $395,298,980 $386,902,871 $380,109,505

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 6,809,574 7,450,961 8,117,892 8,810,799 9,534,713

(b) Current Active 22,851,266 22,317,831 21,672,537 20,994,051 20,226,471

(c) Current Inactive Vested 27,398,320 25,799,356 24,168,110 22,532,846 20,908,931

(d) Current In Pay Status 5,381,469 4,527,603 3,784,935 3,144,127 2,595,414

(e) Total 62,440,629 60,095,751 57,743,474 55,481,823 53,265,529

5. Administrative expenses 5,140,943 5,196,276 5,252,598 5,309,763 5,368,377

6. Investment earnings 32,561,646 31,714,967 30,987,588 30,385,844 29,914,396

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $405,263,666 $395,298,980 $386,902,871 $380,109,505 $375,002,370

8. Available resources: (1)+(2)+(3)-(5)+(6) $467,704,295 $455,394,732 $444,646,346 $435,591,328 $428,267,900

9. Solvency ratio: (8) ÷ (4e) 7.490 7.578 7.700 7.851 8.040

Page 7.1.14
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

12

EXHIBIT IV (continued)

Deterministic Projection of Proposed Suspension

Year Beginning January 1

2056 2057 2058 2059 2060

1. Market Value at beginning of year $375,002,370 $371,648,647 $370,067,506 $370,300,779 $372,391,508

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 10,280,402 11,041,703 11,822,188 12,612,897 13,411,341

(b) Current Active 19,399,197 18,564,273 17,695,629 16,802,534 15,914,727

(c) Current Inactive Vested 19,307,924 17,743,922 16,228,066 14,770,028 13,378,195

(d) Current In Pay Status 2,129,080 1,735,888 1,406,821 1,133,486 908,130

(e) Total 51,116,604 49,085,787 47,152,703 45,318,945 43,612,393

5. Administrative expenses 5,428,707 5,491,442 5,556,715 5,625,083 5,696,934

6. Investment earnings 29,579,212 29,383,713 29,330,316 29,422,384 29,662,300

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $371,648,647 $370,067,506 $370,300,779 $372,391,508 $376,356,857

8. Available resources: (1)+(2)+(3)-(5)+(6) $422,765,251 $419,153,293 $417,453,482 $417,710,454 $419,969,251

9. Solvency ratio: (8) ÷ (4e) 8.271 8.539 8.853 9.217 9.630

2061 2062

1. Market Value at beginning of year $376,356,857 $382,243,074

2. Contributions 23,612,375 23,612,375

3. Withdrawal liability payments - -

4. Benefit payments

(a) New Entrants 14,209,148 15,003,433

(b) Current Active 15,013,811 14,124,067

(c) Current Inactive Vested 12,059,615 10,819,469

(d) Current In Pay Status 723,703 573,855

(e) Total 42,006,277 40,520,824

5. Administrative expenses 5,772,460 5,852,539

6. Investment earnings 30,052,578 31,523,319

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $382,243,074 $391,005,405

8. Available resources: (1)+(2)+(3)-(5)+(6) $424,249,351 $431,526,229

9. Solvency ratio: (8) ÷ (4e) 10.100 10.649

Page 7.1.15
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

13

EXHIBIT V

Stochastic Projection of Proposed Suspension

Year Beginning January 1

Probability of Remaining

Solvent Through the Year and

All Prior Years Year Beginning January 1

Probability of Remaining

Solvent Through the Year and

All Prior Years

2017 100.0% 2040 64.9%

2018 100.0% 2041 62.9%

2019 100.0% 2042 61.4%

2020 100.0% 2043 59.8%

2021 100.0% 2044 58.4%

2022 100.0% 2045 57.2%

2023 100.0% 2046 56.1%

2024 100.0% 2047 55.3%

2025 99.9% 2048 54.4%

2026 99.5% 2049 53.8%

2027 98.8% 2050 53.2%

2028 97.5% 2051 52.8%

2029 95.7% 2052 52.3%

2030 93.0% 2053 52.1%

2031 90.0% 2054 51.8%

2032 86.6% 2055 51.5%

2033 83.4% 2056 51.3%

2034 79.9% 2057 51.1%

2035 76.9% 2058 50.8%

2036 74.1% 2059 50.7%

2037 71.4% 2060 50.5%

2038 68.8% 2061 50.4%

2039 66.8% 2062 50.3%

Page 7.1.16
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

14

EXHIBIT VI

Deterministic Projection of 5% Smaller Suspension

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2051.

Year Beginning January 1

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,126,576,737 $1,090,613,188 $1,070,417,938 $1,054,019,336

2. Contributions 10,835,864 22,300,208 22,946,915 23,612,375 23,612,375

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

4. Benefit payments

(a) New Entrants - - - - -

(b) Current Active 1,048,489 3,155,127 3,980,248 5,120,853 6,318,642

(c) Current Inactive Vested 2,101,942 5,422,698 6,628,339 9,014,205 11,715,763

(d) Current In Pay Status 66,240,556 107,648,091 88,890,219 86,173,405 83,411,008

(e) Total 69,390,987 116,225,916 99,498,806 100,308,464 101,445,413

5. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

6. Investment earnings 26,821,853 59,340,850 57,837,816 61,876,814 63,387,811

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $1,126,576,737 $1,090,613,188 $1,070,417,938 $1,054,019,336 $1,037,778,412

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,206,839,104 $1,169,916,745 $1,154,327,800 $1,139,223,826

9. Solvency ratio: (8) ÷ (4e) 10.384 11.758 11.508 11.230

2021 2022 2023 2024 2025

1. Market Value at beginning of year $1,037,778,412 $1,019,166,227 $1,002,330,549 $982,831,627 $963,068,676

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

4. Benefit payments

(a) New Entrants - 4,912 13,029 24,770 42,276

(b) Current Active 7,525,880 8,809,756 10,041,893 11,322,326 12,655,089

(c) Current Inactive Vested 14,579,137 18,029,370 21,119,976 23,912,651 26,599,704

(d) Current In Pay Status 80,592,699 77,682,415 74,766,697 71,811,678 68,820,632

(e) Total 102,697,716 104,526,453 105,941,595 107,071,424 108,117,701

5. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

6. Investment earnings 62,331,656 65,998,081 64,811,824 65,803,392 64,374,107

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $1,019,166,227 $1,002,330,549 $982,831,627 $963,068,676 $940,565,625

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,121,863,944 $1,106,857,002 $1,088,773,222 $1,070,140,101 $1,048,683,326

9. Solvency ratio: (8) ÷ (4e) 10.924 10.589 10.277 9.995 9.699

* For the period July 1, 2016 through December 31, 2016.

Page 7.1.17
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

15

EXHIBIT VI (continued)

Deterministic Projection of 5% Smaller Suspension

Year Beginning January 1

2026 2027 2028 2029 2030

1. Market Value at beginning of year $940,565,625 $915,591,902 $887,924,069 $860,079,081 $830,395,152

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588 1,239,796

4. Benefit payments

(a) New Entrants 67,058 99,456 141,976 195,040 260,156

(b) Current Active 13,859,461 15,037,568 16,186,509 17,280,589 18,224,295

(c) Current Inactive Vested 29,199,204 31,895,149 34,056,645 35,755,624 37,397,911

(d) Current In Pay Status 65,795,153 62,740,843 59,663,593 56,571,308 53,472,265

(e) Total 108,920,875 109,773,017 110,048,722 109,802,560 109,354,627

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343 3,940,322

6. Investment earnings 62,768,612 60,988,463 61,148,482 59,136,011 56,997,598

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $915,591,902 $887,924,069 $860,079,081 $830,395,152 $798,949,972

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,024,512,778 $997,697,087 $970,127,804 $940,197,713 $908,304,599

9. Solvency ratio: (8) ÷ (4e) 9.406 9.089 8.815 8.563 8.306

2031 2032 2033 2034 2035

1. Market Value at beginning of year $798,949,972 $766,037,193 $733,025,257 $698,714,960 $663,388,134

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,217,664 565,916 347,308 287,020 -

4. Benefit payments

(a) New Entrants 339,494 434,414 545,342 674,456 823,602

(b) Current Active 19,108,455 19,945,236 20,666,841 21,301,589 22,001,361

(c) Current Inactive Vested 38,665,035 39,642,177 40,457,832 41,101,504 41,509,841

(d) Current In Pay Status 50,375,338 47,290,667 44,229,070 41,201,506 38,220,476

(e) Total 108,488,322 107,312,495 105,899,084 104,279,055 102,555,280

5. Administrative expenses 4,000,730 4,060,712 4,120,543 4,179,808 4,238,670

6. Investment earnings 54,746,234 54,182,980 51,749,646 49,232,642 46,634,801

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $766,037,193 $733,025,257 $698,714,960 $663,388,134 $626,841,360

8. Available resources: (1)+(2)+(3)-(5)+(6) $874,525,516 $840,337,753 $804,614,044 $767,667,189 $729,396,640

9. Solvency ratio: (8) ÷ (4e) 8.061 7.831 7.598 7.362 7.112

Page 7.1.18
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

16

EXHIBIT VI (continued)

Deterministic Projection of 5% Smaller Suspension

Year Beginning January 1

2036 2037 2038 2039 2040

1. Market Value at beginning of year $626,841,360 $590,781,796 $554,064,902 $516,634,579 $478,651,820

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 993,850 1,185,188 1,401,230 1,639,666 1,905,831

(b) Current Active 22,605,620 23,048,798 23,592,720 24,024,628 24,378,752

(c) Current Inactive Vested 41,898,471 41,996,855 41,890,093 41,567,291 41,181,776

(d) Current In Pay Status 35,299,327 32,450,380 29,686,556 27,020,444 24,464,317

(e) Total 100,797,268 98,681,221 96,570,599 94,252,029 91,930,676

5. Administrative expenses 4,297,436 4,355,928 4,413,957 4,471,719 4,528,884

6. Investment earnings 45,422,765 42,707,879 39,941,858 37,128,614 34,272,688

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $590,781,796 $554,064,902 $516,634,579 $478,651,820 $440,077,323

8. Available resources: (1)+(2)+(3)-(5)+(6) $691,579,065 $652,746,123 $613,205,178 $572,903,849 $532,007,999

9. Solvency ratio: (8) ÷ (4e) 6.861 6.615 6.350 6.078 5.787

2041 2042 2043 2044 2045

1. Market Value at beginning of year $440,077,323 $400,898,917 $362,088,506 $322,688,846 $282,750,001

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 2,197,987 2,515,751 2,863,849 3,244,443 3,653,650

(b) Current Active 24,646,785 24,870,292 25,031,996 25,086,393 25,067,475

(c) Current Inactive Vested 40,703,090 40,015,012 39,195,247 38,212,324 37,146,914

(d) Current In Pay Status 22,029,002 19,724,572 17,559,305 15,538,807 13,667,035

(e) Total 89,576,864 87,125,626 84,650,397 82,081,966 79,535,074

5. Administrative expenses 4,586,076 4,642,830 4,699,228 4,755,363 4,811,184

6. Investment earnings 31,372,158 29,345,670 26,337,590 23,286,110 20,190,645

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $400,898,917 $362,088,506 $322,688,846 $282,750,001 $242,206,763

8. Available resources: (1)+(2)+(3)-(5)+(6) $490,475,781 $449,214,132 $407,339,243 $364,831,968 $321,741,838

9. Solvency ratio: (8) ÷ (4e) 5.475 5.156 4.812 4.445 4.045

Page 7.1.19
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

17

EXHIBIT VI (continued)

Deterministic Projection of 5% Smaller Suspension

Year Beginning January 1

2046 2047 2048 2049 2050

1. Market Value at beginning of year $242,206,763 $201,025,021 $159,218,309 $116,775,670 $73,641,408

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - -

4. Benefit payments

(a) New Entrants 4,094,797 4,571,263 5,083,673 5,625,817 6,202,198

(b) Current Active 25,019,032 24,826,634 24,514,639 24,106,173 23,655,030

(c) Current Inactive Vested 35,914,978 34,578,644 33,140,092 31,628,393 30,050,457

(d) Current In Pay Status 11,946,205 10,376,389 8,955,212 7,678,748 6,541,727

(e) Total 76,975,012 74,352,930 71,693,616 69,039,130 66,449,412

5. Administrative expenses 4,866,481 4,921,670 4,976,551 5,031,241 5,086,045

6. Investment earnings 17,047,376 13,855,513 10,615,153 7,323,734 3,974,389

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $201,025,021 $159,218,309 $116,775,670 $73,641,408 $29,692,716

8. Available resources: (1)+(2)+(3)-(5)+(6) $278,000,033 $233,571,239 $188,469,287 $142,680,539 $96,142,128

9. Solvency ratio: (8) ÷ (4e) 3.612 3.141 2.629 2.067 1.447

2051

1. Market Value at beginning of year $29,692,716

2. Contributions 23,612,375

3. Withdrawal liability payments -

4. Benefit payments

(a) New Entrants 6,809,574

(b) Current Active 23,098,370

(c) Current Inactive Vested 28,412,397

(d) Current In Pay Status 5,537,271

(e) Total 63,857,612

5. Administrative expenses 5,140,943

6. Investment earnings 577,469

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) Insolvent

8. Available resources: (1)+(2)+(3)-(5)+(6) $48,741,618

9. Solvency ratio: (8) ÷ (4e) 0.763

Page 7.1.20
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

18

EXHIBIT VII

Stochastic Projection of 5% Smaller Suspension

Year Beginning January 1

Probability of Remaining

Solvent Through the Year and

All Prior Years Year Beginning January 1

Probability of Remaining

Solvent Through the Year and

All Prior Years

2017 100.0% 2034 76.5%

2018 100.0% 2035 73.4%

2019 100.0% 2036 70.3%

2020 100.0% 2037 67.6%

2021 100.0% 2038 65.1%

2022 100.0% 2039 62.8%

2023 100.0% 2040 60.5%

2024 100.0% 2041 58.6%

2025 99.8% 2042 56.9%

2026 99.4% 2043 55.2%

2027 98.4% 2044 53.8%

2028 96.8% 2045 52.9%

2029 94.3% 2046 51.9%

2030 91.2% 2047 51.1%

2031 87.8% 2048 50.5%

2032 84.0% 2049 49.6%

2033 80.2%

Page 7.1.21
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

19

EXHIBIT VIII

Projected Total Contribution Base Units and Average Contribution Rates

Year Beginning

January 1

Total Contribution

Base Units

(Months)

Contribution Rate

(Monthly)

Year Beginning

January 1

Total Contribution

Base Units

(Months)

Contribution Rate

(Monthly)

2016 44,653 $485.34 2040 42,027 $561.84

2017 43,760 509.61 2041 42,027 561.84

2018 42,884 535.09 2042 42,027 561.84

2019 42,027 561.84 2043 42,027 561.84

2020 42,027 561.84 2044 42,027 561.84

2021 42,027 561.84 2045 42,027 561.84

2022 42,027 561.84 2046 42,027 561.84

2023 42,027 561.84 2047 42,027 561.84

2024 42,027 561.84 2048 42,027 561.84

2025 42,027 561.84 2049 42,027 561.84

2026 42,027 561.84 2050 42,027 561.84

2027 42,027 561.84 2051 42,027 561.84

2028 42,027 561.84 2052 42,027 561.84

2029 42,027 561.84 2053 42,027 561.84

2030 42,027 561.84 2054 42,027 561.84

2031 42,027 561.84 2055 42,027 561.84

2032 42,027 561.84 2056 42,027 561.84

2033 42,027 561.84 2057 42,027 561.84

2034 42,027 561.84 2058 42,027 561.84

2035 42,027 561.84 2059 42,027 561.84

2036 42,027 561.84 2060 42,027 561.84

2037 42,027 561.84 2061 42,027 561.84

2038 42,027 561.84 2062 42,027 561.84

2039 42,027 561.84

Page 7.1.22
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

20

EXHIBIT IX

Assumptions and Methodology

The data, actuarial assumptions and methodology are as used in the January 1, 2016 Actuarial Valuation Certificate, dated June 7, 2016, as

well as the Actuarial Certification of Plan Status as of January 1, 2016 under IRC Section 432, dated March 30, 2016, except as

specifically described below. The calculations are based on a current understanding of the requirements of ERISA Section 305, IRC

Section 432, regulation §1.432(e)(9)-1 and Revenue Procedure 2016-27.

Data: Supplemental data was provided by the Fund Office to calculate PBGC guaranteed benefits and

to model the proposed benefit suspension.

Projected Industry Activity: The projected industry assumption is based on input from the plan sponsor for the actuarial

certification of plan status as of January 1, 2016 .

New Entrants: New entrants are assumed to have a demographic mix consistent with recent entrants during the

past five years, with an entry age ranging from age 16 through 66 and an average of 33.2. New

entrants are assumed to preserve the existing active breakdown of 98% male and 2% female. The

following table shows the distribution of new entrants by entry age.

Age Range

Percentage of New

Entrants

Below 20 3%

20 – 24 21%

25 – 29 22%

30 – 34 17%

35 – 39 13%

40 – 44 9%

45 – 49 7%

50 and over 8%

Financial Information: The financial information from January 1, 2016 through June 30, 2016 was based on an unaudited

financial statement provided by the Fund Office. The value of assets was reduced by the

withdrawal liability payments receivable.

Page 7.1.23
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21

Investment Return Assumption: After June 30, 2016, the annual investment return assumption for deterministic projections is as

follows:

Plan Year

Beginning

January 1 Return

Plan Year

Beginning

January 1 Return

Plan Year

Beginning

January 1 Return

2016 4.75% 2032 7.50% 2048 8.00%

2017 5.50% 2033 7.50% 2049 8.00%

2018 5.50% 2034 7.50% 2050 8.00%

2019 6.00% 2035 7.50% 2051 8.25%

2020 6.25% 2036 7.75% 2052 8.25%

2021 6.25% 2037 7.75% 2053 8.25%

2022 6.75% 2038 7.75% 2054 8.25%

2023 6.75% 2039 7.75% 2055 8.25%

2024 7.00% 2040 7.75% 2056 8.25%

2025 7.00% 2041 7.75% 2057 8.25%

2026 7.00% 2042 8.00% 2058 8.25%

2027 7.00% 2043 8.00% 2059 8.25%

2028 7.25% 2044 8.00% 2060 8.25%

2029 7.25% 2045 8.00% 2061 8.25%

2030 7.25% 2046 8.00% 2062 8.50%

2031 7.25% 2047 8.00% 2063+ 8.50%

The net investment return assumption is based on the expected cash return as of December 31,

2015 for each Plan Year, adjusted for the anticipated risk premium for each of the portfolio’s

asset classes, all provided by Segal Rogerscasey, as well as the Plan’s target asset allocation.

Page 7.1.24
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

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EIN 94-1133245/ PN 001

22

Stochastic Projections: Stochastic projections are based on a Monte Carlo simulation of market value investment returns

with 10,000 trials. Other cash flows are based on a deterministic projection.

Stochastic modeling of investment returns begins July 1, 2016. The initial value of assets is based

on the actual value as of July 1, 2016. There are no future gains or losses except for investment

returns generated under the stochastic projections.

The assumptions for stochastic modeling were based on the Plan’s target asset allocation and

capital market assumptions reflecting a 50-year horizon provided by Segal Rogerscasey, as

follows:

Asset Class

Target

Allocation

Expected

Returns

Standard

Deviation

Allocation on

June 30, 2016

U.S. equities 45.0% 9.3% 18.5% 48.2%

International equities (developed

market)

9.3% 10.0% 21.0% 10.4%

Emerging market equities 0.7% 12.4% 24.0% 0.8%

Core fixed income 22.5% 4.3% 5.0% 18.5%

High Yield fixed income 7.5% 7.5% 12.5% 6.2%

Core real estate 5.0% 7.1% 12.0% 7.5%

Hedge fund 6.7% 6.3% 6.3% 5.6%

Private equity 3.3% 14.1% 24.5% 2.8%

Correlations U.S. equities

International

equities

(developed

market)

Emerging

market

equities

Core fixed

income

High yield

fixed income

Core real

estate Hedge fund

Private

equity

U.S. equities 1.00

International equities (developed

market)

0.88 1.00

Emerging market equities 0.80 0.90 1.00

Core fixed income 0.06 0.14 0.14 1.00

High yield fixed income 0.75 0.75 0.73 0.27 1.00

Core real estate 0.26 0.19 0.10 -0.25 -0.05 1.00

Hedge fund 0.71 0.78 0.80 -0.02 0.63 0.26 1.00

Private equity 0.77 0.75 0.71 -0.27 0.63 0.52 0.78 1.00

Page 7.1.25
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

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EIN 94-1133245/ PN 001

23

Administrative Expenses: Annual administrative expenses are assumed to be $3,090,000 for the 2016 Plan Year. Consistent

with the inflation assumption used to develop the above investment return assumption,

administrative expenses are assumed to increase by 2.25% per year. Based on the plan’s audit

statement as of December 31, 2015, about two-thirds of the administrative expenses are

dependent on the plan’s population size. This portion of the expenses have been adjusted to

reflect anticipated changes in participant counts in the future. The annual administrative expenses

assumption is based on historical and current data, adjusted to reflect estimated future experience

and professional judgment.

Benefit Payment Projections: Benefit payments were based on a closed group valuation for participants included in the 2015

actuarial valuation and an open group valuation for new entrants.

Mortality Rates: Healthy Post-Retirement: RP-2014 Blue Collar Healthy Annuitant Mortality Tables, set forward 1

year, with generational projection using Scale MP-2015.

Disabled: RP-2014 Disabled Retiree Mortality Tables, set forward 1 year, with generational

projection using Scale MP-2015.

Pre-Retirement: RP-2014 Blue Collar Employee Tables, set forward 1 year, with generational

projection using Scale MP-2015.

The RP-2014 tables, set forward 1 year, with generational projection to the ages of participants as

of the measurement date reasonably reflect the mortality experience of the Plan as of the

measurement date. These mortality tables were then adjusted to future years using the

generational projection to reflect future mortality improvement between the measurement date

and those years.

The mortality rates were based on historical and current demographic data, adjusted to reflect

estimated future experience and professional judgment. As part of the analysis, a comparison was

made between the actual number of deaths and the projected number based on the assumption

over the most recent 10 years.

The mortality assumptions were revised from those used for the 2016 zone certification and 2016

actuarial valuation. The new assumptions are based mortality rates from more recent mortality

tables, with the rates projected generationally to reflect future mortality improvement. These

assumptions are more appropriate for solvency projections involving the proposed benefit

suspensions, due to the long-term nature of those projections. Because the 2016 zone certification

and actuarial valuation did not reflect any benefit suspensions, the plan would have had a

projected near-term insolvency under either mortality basis.

Page 7.1.26
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

24

EXHIBIT X

Proposed Benefit Suspensions

The plan of benefits is as used in the January 1, 2016 actuarial valuation certificate, dated June 7, 2016, except as specifically described

below.

Proposed Benefit Suspensions: Effective July 1, 2017, the Plan will recalculate accrued benefits or benefits in pay status for all

affected participants as described below, but no less than 110% of the benefit guaranteed by the

PBGC:

 For Future Service prior to January 1, 2005, a participant’s monthly accrued benefit is

determined based on a percentage of their contributions, with the percentage ranging from

2.75% to 5.00%. Effective on the suspension date, the participant’s accrued benefit will be

capped at 1.96% of contributions for this service.

The above change will not affect the following groups of participants:

 Participants who were awarded with a disability pension and beneficiaries of such

participants, and

 Participants and beneficiaries who are at least age 80 as of the end of the month that includes

the suspension date (i.e., July 31, 2017).

The amount of benefit payable on and after the suspension date for participants and beneficiaries

who are at least age 75 but less than age 80 as of the end of the month that includes the

suspension date will equal the sum of:

 The amount of benefit calculated above, and

 1/60 of the difference between the benefit payable before the suspension date and the amount

of benefit calculated above, if any, multiplied by the number of months the participant is over

age 75 at the end of the month that includes the suspension date.

Page 7.1.27
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for the Automotive Industries

Pension Plan

EIN 94-1133245/ PN 001

25

Technical Issues

Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretation on

which the certification is based reflects Segal’s understanding as an actuarial firm. Due to the complexity of the statute and the

significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when making any decisions

regarding compliance with ERISA and the Internal Revenue Code.

5449318v2/01149.036

Page 7.1.28
This report has been prepared at the request of the Board of Trustees to assist in administering the Fund and meeting filing requirements of federal government agencies. This 

valuation report may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees and may only be provided to other parties in its entirety. 

The measurements shown in this actuarial valuation may not be applicable for other purposes.

Copyright © 2016 by The Segal Group, Inc. All rights reserved.

Automotive Industries 

Pension Plan

Actuarial Valuation and 

Review as of January 1, 2016

Page 7.2.1
Page 7.2.2

* Segal Consulting 

100 Montgomery Street, Suite 500 San Francisco, CA 94104 

T 415.263.8200 www.segalco.com 

June 7, 2016 

Board ofTrustees 

Automotive Industries Pension Plan 

Alameda, California 

Dear Trustees: 

We are pleased to submit the Actuarial Valuation and Review as of January 1, 2016. It establishes the funding requ

year and analyzes the preceding year's experience. It also summarizes the actuarial data and includes the actuarial i

to be filed with Form 5500 to federal government agencies. 

The census information upon which our calculations were based was prepared by the Fund Office, under the direct

Schumacher. That assistance is gratefully acknowledged. The actuarial calculations were completed under the supe

ASA, MAAA, Enrolled Actuary. 

We look forward to reviewing this report with you at your next meeting and to answering any questions you may h

Sincerely, 

By: J. Ti 

Seni 

MAM/gxk 

e Segal Group 

cc: Bill Boyle 

Anne Bevington, Esq. 

Sun Chang, Esq. 

Kara Dantono 

William Craig Dobbs 

Kimberly A. H

Raymond G. M

John O'Donne

Jessica Roster

Michael Schu

Benefits, Compensation and HR Consulting. Member of The Segal Group. Offices throughout the United States and C

Redacted by the U.S. Department of the Treasury
3

Table of Contents

Automotive Industries Pension Plan Actuarial Valuation and Review as of January 1, 2016 

Section 1: Actuarial Valuation Summary

Introduction...............................................................................................................................................................5

Important Information about Actuarial Valuations......................................................................................................6

A. Developments Since Last Valuation...................................................................................................................9

B. Funded Percentage and Funding Standard Account........................................................................................10

C. Solvency Projections........................................................................................................................................11

Summary of Key Valuation Results.........................................................................................................................12

Comparison of Funded Percentages.......................................................................................................................13

Section 2: Actuarial Valuation Results

Participant Information............................................................................................................................................14

Financial Information...............................................................................................................................................22

Actuarial Experience...............................................................................................................................................25

Actuarial Assumptions and Methods .......................................................................................................................29

Plan Provisions .......................................................................................................................................................30

Funding Standard Account......................................................................................................................................31

Pension Protection Act of 2006...............................................................................................................................32

Solvency Projection ................................................................................................................................................34

Disclosure Requirements........................................................................................................................................35

Page 7.2.3
4

Section 3: Supplementary Information

Exhibit A - Table of Plan Coverage .........................................................................................................................36

Exhibit B - Participant Population............................................................................................................................37

Exhibit C - Employment History...............................................................................................................................38

Exhibit D - Summary Statement of Income and Expenses on an Actuarial Basis ....................................................39

Exhibit E - Financial Information Table....................................................................................................................40

Exhibit F - Investment Return – Actuarial Value vs. Market Value...........................................................................41

Exhibit G - Annual Funding Notice for Plan Year Beginning January 1, 2016 and Ending December 31, 2016.......42

Exhibit H - Funding Standard Account ....................................................................................................................43

Exhibit I - Maximum Deductible Contribution...........................................................................................................44

Exhibit J - Pension Protection Act of 2006 ..............................................................................................................45

Exhibit K - Section 415 Limitations..........................................................................................................................47

Section 4: Certificate of Actuarial Valuation

Certificate of Actuarial Valuation .............................................................................................................................48

Exhibit 1 - Summary of Actuarial Valuation Results................................................................................................. 49

Exhibit 2 - Actuarial Present Value of Accumulated Plan Benefits...........................................................................50

Exhibit 3 - Current Liability ......................................................................................................................................51

Exhibit 4 - Information on Plan Status as of January 1, 2016 ..................................................................................52

Exhibit 5 - Summary of Plan Provisions ..................................................................................................................53

Exhibit 6 - Statement of Actuarial Assumptions/Methods ........................................................................................56

Exhibit 7 - Schedule of Projection of Expected Benefit Payments ...........................................................................60

Exhibit 8 - Schedule of Active Participant Data .......................................................................................................61

Exhibit 9 - Funding Standard Account.....................................................................................................................62

Section 5: General Background

Changes in Benefit Amounts and Average Contribution Rate Since January 1, 1976 .............................................65

Other Developments...............................................................................................................................................67

Page 7.2.4
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 5 

Section 1: Actuarial Valuation Summary

Introduction 

There are several ways of evaluating funding adequacy for a pension plan. In monitoring the Plan’s financial position, the Trustees should 

keep in mind all of these concepts. 

Funding 

Standard 

Account

The ERISA Funding Standard Account (FSA) measures the cumulative difference between actual contributions and the 

minimum required contributions. If actual contributions exceed the minimum required contributions, the excess is called 

the credit balance. If actual contributions fall short of the minimum required contributions, a funding deficiency occurs.

Zone 

Information

The Pension Protection Act of 2006 (PPA’06) called on plan sponsors to actively monitor the projected FSA credit 

balance, the funded percentage (the ratio of the actuarial value of assets to the present value of benefits earned to date) 

and cash flow sufficiency. Based on these measures, plans are then categorized as critical (Red Zone), endangered 

(Yellow Zone), or neither (Green Zone). The Multiemployer Pension Reform Act of 2014 (MPRA), among other things, 

made the zone provisions permanent.

Solvency 

Projections

Pension plan funding anticipates that, over the long term, both contributions and investment earnings will be needed to 

cover benefit payments and expenses. To the extent that contributions are less than benefit payments, investment 

earnings and fund assets will be needed to cover the shortfall. In some situations, a plan may be faced with insufficient 

assets to cover its current obligations and may need assistance from the Pension Benefit Guaranty Corporation (PBGC). 

MPRA provides options for some plans facing insolvency.

Scheduled 

Cost

The Scheduled Cost is an annual amount based on benefit levels and assets that allows a comparison to current 

contribution levels, given the expectation of a continuing Plan. 

Withdrawal 

Liability

ERISA provides for assessment of withdrawal liability to employers who withdraw from a multiemployer plan based on 

unfunded vested benefit liabilities. A separate report is available.

Page 7.2.5
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 6 

Important Information about Actuarial Valuations

An actuarial valuation is a budgeting tool with respect to the financing of future uncertain obligations of a pension plan. As such, it will never 

forecast the precise future contribution requirements or the precise future stream of benefit payments. In any event, it is an estimated forecast

— the actual cost of the plan will be determined by the benefits and expenses paid, not by the actuarial valuation. 

In order to prepare a valuation, Segal Consulting (“Segal”) relies on a number of input items. These include: 

Plan 

Provisions

Plan provisions define the rules that will be used to determine benefit payments, and those rules, or the interpretation of them, 

may change over time. Even where they appear precise, outside factors may change how they operate. For example, a plan 

may require the award of a Social Security disability pension as a condition for receiving a disability pension from the plan. If so, 

changes in the Social Security law or administration may change the plan’s costs without any change in the terms of the plan 

itself. It is important for the Trustees to keep Segal informed with respect to plan provisions and administrative procedures, and 

to review the plan summary included in our report to confirm that Segal has correctly interpreted the plan of benefits.

Participant 

Information

An actuarial valuation for a plan is based on data provided to the actuary by the plan. Segal does not audit such data for 

completeness or accuracy, other than reviewing it for obvious inconsistencies compared to prior data and other information that 

appears unreasonable. For most plans, it is not possible nor desirable to take a snapshot of the actual workforce on the 

valuation date. It is not necessary to have perfect data for an actuarial valuation: the valuation is an estimated forecast, not a 

prediction. The uncertainties in other factors are such that even perfect data does not produce a “perfect” result. 

Notwithstanding the above, it is important for Segal to receive the best possible data and to be informed about any known 

incomplete or inaccurate data.

Financial 

Information

Part of the cost of a plan will be paid from existing assets – the balance will need to come from future contributions and 

investment income. The valuation is based on the asset values as of the valuation date, typically reported by the auditor. Some 

plans include assets, such as private equity holdings, real estate, or hedge funds, that are not subject to valuation by reference 

to transactions in the marketplace. A snapshot as of a single date may not be an appropriate value for determining a single 

year’s contribution requirement, especially in volatile markets. Plan sponsors often use an “actuarial value of assets” that differs 

from market value to gradually reflect year-to-year changes in the market value of assets in determining the contribution 

requirements.

Actuarial 

Assumptions

In preparing an actuarial valuation, Segal starts by developing a forecast of the benefits to be paid to existing plan participants 

for the rest of their lives and the lives of their beneficiaries. This requires actuarial assumptions as to the probability of death, 

disability, withdrawal, and retirement of participants in each year, as well as forecasts of the plan’s benefits for each of those 

events. The forecasted benefits are then discounted to a present value, typically based on an estimate of the rate of return that 

will be achieved on the plan’s assets. All of these factors are uncertain and unknowable. Thus, there will be a range of 

reasonable assumptions, and the results may vary materially based on which assumptions the actuary selects within that range. 

That is, there is no right answer (except with hindsight). It is important for any user of an actuarial valuation to understand and 

accept this constraint. The actuarial model may use approximations and estimates that will have an immaterial impact on our 

results and will have no impact on the actual cost of the plan (the total of benefits and expenses paid out over time). In addition, 

the actuarial assumptions may change over time, and while this can have a significant impact on the reported results, it does 

not mean that the previous assumptions or results were unreasonable or wrong.

Page 7.2.6
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 7 

Given the above, the user of Segal’s actuarial valuation (or other actuarial calculations) needs to keep the following in mind: 

• The actuarial valuation is prepared for use by the Trustees. It includes information for compliance with federal filing requirements and for the plan’s 

auditor. Segal is not responsible for the use or misuse of its report, particularly by any other party.

• An actuarial valuation is a measurement at a specific date — it is not a prediction of a plan’s future financial condition. Accordingly, Segal did not 

perform an analysis of the potential range of financial measurements, except where otherwise noted.

• Actuarial results in this report are not rounded, but that does not imply precision.

• Critical events for a plan include, but are not limited to, decisions about changes in benefits and contributions. The basis for such decisions needs to 

consider many factors such as the risk of changes in employment levels and investment losses, not just the current valuation results.

• ERISA requires a plan’s enrolled actuary to provide a statement for inclusion in the plan’s annual report disclosing any event or trend that the actuary 

has not taken into account, if, to the best of the actuary’s knowledge, such an event or trend may require a material increase in plan costs or required 

contribution rates. If the Trustees are currently aware of any event that was not considered in this valuation and that may materially increase the cost 

of the Plan, they must advise Segal, so that we can evaluate it and take it into account.

• A certification of “zone” status under PPA’06 is a separate document from the actuarial valuation.

• Segal does not provide investment, legal, accounting, or tax advice. This valuation is based on Segal’s understanding of applicable guidance in these 

areas and of the plan’s provisions, but they may be subject to alternative interpretations. The Trustees should look to their other advisors for expertise 

in these areas.

• While Segal maintains extensive quality assurance procedures, an actuarial valuation involves complex computer models and numerous inputs. In the 

event that an inaccuracy is discovered after presentation of Segal’s valuation, Segal may revise that valuation or make an appropriate adjustment in 

the next valuation.

• Segal’s report shall be deemed to be final and accepted by the Trustees upon delivery and review. Trustees should notify Segal immediately of any 

questions or concerns about the final content.

As Segal Consulting has no discretionary authority with respect to the management or assets of the Plan, it is not a fiduciary in its capacity as 

actuaries and consultants with respect to the Plan.

Page 7.2.7
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 8 

ACTUARIAL VALUATION OVERVIEW 

Participant 

Information Financial 

Information

Funding 

Standard Account

Withdrawal 

Liability

Actuarial 

Assumptions

Zone 

Information

 

Disclosures

Experience

Plan 

Provisions

Solvency 

Projections Scheduled Cost

Actuarial 

Modeling

Page 7.2.8
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 9 

This January 1, 2016 actuarial valuation report is based on financial and demographic information as of that date. Changes subsequent to 

that date are not reflected unless specifically identified, and could affect future results. Segal is prepared to work with the Trustees to 

analyze the effects of any subsequent developments. The current year’s actuarial valuation results follow.

A. Developments Since Last Valuation 

1. The rate of return on the market value of plan assets was 0.2% for the 2015 plan year. The rate of return 

on the actuarial value of assets was 8.2% as a result of the asset valuation method. The current 

assumed long-term rate of return on investments is 7.25%. Given the low fixed income interest rate 

environment, target asset allocation and expectations of future investment returns for various asset 

classes, we will continue to monitor the Plan’s actual and anticipated investment returns. 

2. Based on past experience and future expectations, the benefit election assumption was changed so 

that married participants elect the 75% Joint and Survivor Option for future retirements. 

3. The 2016 certification, issued on March 30, 2016, based on the liabilities calculated in the 2015 

actuarial valuation, projected to January 1, 2016 and estimated asset information as of January 1, 

2016, classified the Plan as critical and declining (in the Red Zone) because there was a projected 

deficiency in the FSA within one year and a projected insolvency within 15 years. This projection was 

based on the Trustees’ industry activity assumption that the total number of contributory months will 

decline by 2% per year for the next four years and remain level after.

4. Under the Trustees’ Rehabilitation Plan, new collective bargaining agreements negotiated after April 27, 2008 are subject to the Default 

Schedule that includes the maximum benefit reductions allowed by law. These reductions include the removal of all early retirement 

subsidies, joint and survivor subsidies, disability pensions, the 36-payment pre-retirement death benefit and all benefit options besides the 

single life annuity, QJSA and QOSA. The Default Schedule also includes supplemental off-benefit contributions beginning January 1, 

2013. The valuation recognizes the Default Schedule. 

5. Due to the plan’s funding issues, for Funding Standard Account purposes we recommend changing the actuarial cost method from Entry 

Age Normal to Unit Credit and changing the actuarial value of assets to market value, effective January 1, 2016. The results in the report 

are based on those recommended changes.

Page 7.2.9
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 10

B. Funded Percentage and Funding Standard Account 

1. Based on this January 1, 2016 actuarial valuation, the funded percentage as of that date is 62.2%. 

This will be reported on the 2016 Annual Funding Notice. 

2. The funding deficiency in the FSA as of December 31, 2015 was $443,104,399, an increase of 

$110,520,639 from the prior year. 

3. We are available to work with the Trustees to develop credit balance projections. 

Page 7.2.10
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 11

C. Solvency Projections 

1. Based on this valuation, the current value of assets plus future investment earnings and 

contribution income are not projected to cover benefit payments and administrative 

expenses beyond 14 years (through December 31, 2029), assuming experience is 

consistent with January 1, 2016 assumptions. This is the same as projected in the January 1, 

2015 actuarial valuation because the market value investment loss was offset by the 

inclusion of expected future withdrawal liability payments. The projected assets until 

insolvency and the projection basis are shown on page 34. If requested by the Trustees, we 

can perform additional projections of the financial status of the Plan. 

Page 7.2.11
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 12

Summary of Key Valuation Results 

2015 2016

Certified Zone Status Critical and Declining Critical and Declining

Demographic Data:

• Number of active participants 4,026 3,923

• Number of inactive participants with vested rights 10,470 10,394

• Number of retired participants and beneficiaries 11,300 11,239

Assets:

• Market value of assets (MVA) $1,297,668,067 $1,192,990,400

• Actuarial value of assets (AVA) 1,199,472,038 1,192,990,400

• AVA as a percent of MVA 92.4% 100.0%

Cash Flow:

• Projected employer contributions $21,140,860(1) $23,526,812(2)

• Actual contributions 29,612,275(3) --

• Projected benefit payments and expenses 141,923,742 141,979,326

• Insolvency projected in Plan Year beginning(4) 2030(1) 2030(2)

Statutory Funding Information:

• Minimum required contribution $473,831,388 $582,342,694

• Maximum deductible contribution 3,221,905,003 3,264,455,404

• Annual Funding Notice percentage 61.1% 62.2%

• FSA deficiency projected in Plan Year Yes Yes

Cost Elements on an FSA Basis:

• Normal cost, including administrative expenses $6,195,281 $8,160,791

• Actuarial accrued liability 1,989,735,216 1,916,926,229

• Unfunded actuarial accrued liability (based on AVA) 790,263,178 723,935,829

(1) Excludes projected withdrawal liability payments. 

(2) Includes projected withdrawal liability payments.

(3) Includes $8,600,901 in withdrawal liability payments and $116,551 in liquidated damages.

(4) Includes 5% annual contribution rate increases through 2019 under the Rehabilitation Plan Default Schedule. 

Page 7.2.12
Section 1: Actuarial Valuation Summary as of January 1, 2016 for the Automotive Industries 

Pension Plan 13

Comparison of Funded Percentages

Funded Percentages

as of January 1 2016

2015 2016 Liabilities Assets

1. Present Value of Future Benefits 59.7% 60.9% $1,958,083,789 $1,192,990,400

2. Actuarial Accrued Liability 60.3% 62.2% 1,916,926,229 1,192,990,400

3. PPA’06 Liability and Annual Funding Notice 61.1% 62.2% 1,916,926,229 1,192,990,400

4. Accumulated Benefits Liability 66.1% 62.2% 1,916,926,229 1,192,990,400

5. Current Liability 41.4% 37.7% 3,165,003,139 1,192,990,400

Notes:

1. Includes the value of benefits earned through the valuation date (accrued benefits) plus the value of benefits projected to be earned in the future 

for current participants. Used to develop the actuarial accrued liability, based on long-term funding investment return assumption of 7.25% and the 

actuarial value of assets. The funded percentage using market value of assets is 60.9% for 2016 and 64.6% for 2015. 

2. Represents the portion of present value of future benefits allocated by the actuarial cost method to years prior to the valuation date. Used in 

determining the Funding Standard Account, based on long-term funding investment return assumption of 7.25% and the actuarial value of assets. 

The funded percentage using market value of assets is 62.2% for 2016 and 65.2% for 2015. 

3. Measures present value of accrued benefits using the current participant census and financial data. As defined by the PPA’06, based on long-term 

funding investment return assumption of 7.25% and the actuarial value of assets.

4. Provides present value of accrued benefits for disclosure in the audited financial statements, based on long-term funding investment return 

assumption of 7.25%, and the market value of assets.

5. Used to determine maximum tax-deductible contributions and is reported on Schedule MB to Form 5500. Based on the present value of accrued 

benefits, using a prescribed mortality table and investment return assumption of 3.28% for 2016 and 3.51% for 2015, and the market value of 

assets. The funded percentage is also shown on the Schedule MB if it is less than 70%.

Disclosure: These measurements are not necessarily appropriate for assessing the sufficiency of Plan assets to cover the estimated cost of settling the Plan’s benefit obligations or the need for 

or the amount of future contributions.

Page 7.2.13
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 14

Section 2: Actuarial Valuation Results

Participant Information 

 The Actuarial Valuation and Review considers the number and demographic characteristics of covered participants as of December 31, 

2015. More detailed information for this valuation year, and the preceding year can be found in Section 3, Exhibit A.

3,923 

Active Participants

10,394

Inactive Vested 

Participants

11,239

Pensioners and 

Beneficiaries 

Actives

Beneficiaries

Inactive 

Vesteds Pensioners

Page 7.2.14
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 15

0

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Active Inactive Vested In Pay Status

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Changes in Population Over Time

 The number of active participants has declined from 6,426 to 3,923 over the last 10 years while the number in pay status has increased by 

1,260 over that period. 

 There are now 5.5 non-active participants for each active participant.

 More details on the historical information are included in Section 3, Exhibit B. 

POPULATION AS OF

DECEMBER 31

RATIO OF NON-ACTIVES TO ACTIVES 

AS OF DECEMBER 31 

Page 7.2.15
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 16

0

100

200

300

400

500

600

700

0

200

400

600

800

1,000

1,200

Active Participants 

 There were 3,923 active participants in this year’s valuation compared to 4,026 in the prior year. 

 The age and service distribution is included in Section 4, Exhibit 8. 

DISTRIBUTION BY AGE 

AS OF DECEMBER 31, 2015

DISTRIBUTION BY YEARS OF CREDITED 

SERVICE AS OF DECEMBER 31, 2015

Average age 45.1 Average years of credited service 12.3

Prior year average age 45.1 Prior year average years of credited service 12.4

Difference 0.0 Difference -0.1

Page 7.2.16
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 17

Historical Employment 

 The total and average hours for each of the last 10 years is shown below. More details on the historical information are included in Section 

3, Exhibit C.

 The industry activity assumption used for the 2016 actuarial zone certification was that the total number of contributory months would 

decline by 2% per year for the next four years, and remain level thereafter. We look to the Trustees for guidance as to whether this 

continues to be reasonable.

TOTAL MONTHS AVERAGE MONTHS

Historical Average Total Months Historical Average Months

Last year 45,564 Last year 11.6

Last 5 years 46,913 Last 5 years 11.6

Last 10 years 55,517 Last 10 years 11.7

0

10

20

30

40

50

60

70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Thousands 

11.5

11.6

11.7

11.8

11.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Page 7.2.17
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 18

0

500

1,000

1,500

2,000

2,500

3,000

Inactive Vested Participants 

 A participant who is not currently active and has satisfied the vesting requirements for, but has not yet commenced, a pension is 

considered an “inactive vested” participant.

 There were 10,394 inactive vested participants in this year’s valuation compared to 10,470 in the prior year. 

DISTRIBUTION BY AGE 

AS OF DECEMBER 31, 2015

DISTRIBUTION BY MONTHLY AMOUNT AS OF 

DECEMBER 31, 2015

Average age 54.9 Average amount $891

Prior year average age 54.4 Prior year average amount $874

Difference 0.5 Difference $17

0

500

1,000

1,500

2,000

2,500

Page 7.2.18
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 19

New Pensions Awarded 

 There were 310 pensions awarded in 2015. 

 The average pension awarded, after adjustment for optional forms of payment, was $909. 

Total Normal Early Disability Unreduced Early Rule of 85

Year 

Ended

Dec 31 Number

Average 

Amount Number

Average 

Amount Number

Average 

Amount Number

Average 

Amount Number

Average 

Amount Number

Average 

Amount

2006 511 $1,255 120 $690 177 $920 27 $2,445 124 $957 63 $3,346

2007 541 1,177 131 544 177 991 21 1,852 148 952 64 3,283

2008 678 1,360 134 687 276 1,102 29 1,882 133 1,015 106 3,172

2009 577 1,287 197 594 221 967 26 2,044 57 1,130 76 3,871

2010 463 1,105 169 518 181 727 17 1,736 35 1,801 61 3,281

2011 462 1,105 146 547 224 625 16 2,397 19 2,056 57 3,611

2012 311 1,157 212 534 42 1,627 6 2,822 17 2,012 34 3,742

2013 288 875 230 510 21 1,410 9 1,422 6 1,936 22 3,663

2014 247 872 203 672 33 1,268 4 1,593 1 1,101 6 4,940

2015 310 909 267 759 39 1,497 1 2,004 - - 3 6,252

Page 7.2.19
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 20

0

500

1,000

1,500

2,000

2,500

Normal Early Disability Unreduced Early Rule of 85

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Normal Early Disability Unreduced Early Rule of 85

Pay Status Information 

December 31, 2014 vs. December 31, 2015

8,837 pensioners and 2,410 beneficiaries  8,777 pensioners and 2,419 beneficiaries

$11,029,028 total monthly benefits received  $11,085,801 total monthly benefits received

Distribution of Pensioners

PENSIONERS BY TYPE AND BY AGE AS OF 

DECEMBER 31, 2015

PENSIONERS BY TYPE AND MONTHLY 

AMOUNT AS OF DECEMBER 31, 2015

Page 7.2.20
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 21

Progress of Pension Rolls Over the Past Ten Years 

IN PAY STATUS AT YEAR END

Year Number

Average 

Age

Average

Amount Terminations1 Additions2

2006 8,003 70.9 $968 317 519

2007 8,195 71.0 997 352 544

2008 8,568 70.8 1,039 347 720

2009 8,796 71.0 1,070 361 589

2010 8,928 71.2 1,086 346 478

2011 9,031 71.4 1,101 370 473

2012 8,993 71.9 1,118 361 323

2013 8,922 72.4 1,123 378 307

2014 8,837 72.9 1,131 354 269

2015 8,777 73.3 1,140 384 324

1

 Terminations include pensioners who died or were suspended during the prior plan year. 2

 Additions to the pension rolls include new pensions awarded and suspended pensioners who have been reinstated. 

Page 7.2.21
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 22

0

20

40

60

80

100

120

140

160

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ Millions 

Net Contributions Benefits Paid

Financial Information 

 Pension plan funding anticipates that, over the long term, both contributions (less administrative expenses) and investment earnings (less 

investment fees) will be needed to cover benefit payments. 

 A summary of these transactions for the valuation year and the prior year, including investment activity on an actuarial basis, is presented 

in Section 3, Exhibit D. 

 Contributions net of administrative expenses were $26,616,055 for the year.

 Benefit payments during the year totaled $133,827,365. They are projected to increase to $161 million 10 years from now. 

COMPARISON OF NET EMPLOYER CONTRIBUTIONS 

AND BENEFITS PAID

Page 7.2.22
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 23

Determination of Actuarial Value of Assets 

 The valuation is based on the Trustees adopting our recommendation to change the asset valuation method to market value. Under this 

valuation method, the full value of market fluctuation is recognized in a single year and, as a result, the asset value and the pension plan 

cost are relatively volatile. However, the volatility of plan costs is not an important factor for plans projected to become insolvent. 

1 Actuarial value of assets = Market value of assets $1,192,990,400

Page 7.2.23
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 24

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ Billions 

Actuarial Value Market Value

Asset History

 Both the actuarial value and the market value of assets are representations of the Plan’s financial status. 

 The actuarial value is significant because it is subtracted from the Plan’s total actuarial accrued liability to determine the portion that is not 

funded and is used to determine the PPA’06 funded percentage. 

 Amortization of the unfunded accrued liability is an important element in the contribution requirements of the Plan. 

ACTUARIAL VALUE OF ASSETS VS. MARKET VALUE OF ASSETS 

AS OF DECEMBER 31

Page 7.2.24
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 25

Actuarial Experience 

 To calculate the cost requirements of the Plan, assumptions are made about future events that affect the amount and timing of benefits to 

be paid and assets to be accumulated. For contribution requirements to remain stable, assumptions should approximate experience and 

expectations for the future, which may require adjustments in the assumptions from time to time. 

 Each year actual experience is measured against the assumptions and differences are reflected in the contribution requirement. If 

assumptions are changed, the contribution requirement is adjusted to take into account a change in experience anticipated for all future 

years.

 Taking account of experience gains or losses in one year without making a change in assumptions reflects the belief that the experience 

was a short-term development and that, over the long run, experience will return to assumed levels. 

 The net experience variation for the year ending December 31, 2015, other than investment experience, was 0.2% of the projected 

actuarial accrued liability from the prior valuation, and was not significant when compared to that liability. 

1 Net gain from investments $10,479,841

2 Net gain from administrative expenses 3,904

3 Net gain from other experience 4,783,771

4 Net experience gain: 1 + 2 + 3 $15,267,516

Page 7.2.25
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 26

Actuarial Value Investment Experience 

 The actuarial rate of return for a given year is the investment income net of investment expenses, expressed as a percentage of the average 

actuarial value of assets during the year. 

 Net investment income consists of interest and dividend income at the actuarially assumed rate of return (net of investment expenses) and 

the adjustment for market value changes. 

 The actuarial value of assets does not yet fully recognize past net investment losses. As a result, the effect of favorable future investment 

returns will be dampened as recognition of past net investment losses is phased in. Therefore, the rate of return on an actuarial basis may 

fall below the assumed rate of return as unrecognized losses are reflected, even if market returns are favorable.

EXPERIENCE FOR THE YEAR ENDED DECEMBER 31, 2015

1 Net investment income $93,555,154

2 Average actuarial value of assets 1,145,866,383

3 Rate of return: 1 ÷ 2 8.16%

4 Assumed rate of return 7.25%

5 Expected net investment income: 2 x 4 $83,075,313

6 Actuarial gain: 1 - 5 $10,479,841

Page 7.2.26
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 27

-40%

-30%

-20%

-10%

0%

10%

20%

30%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Actuarial Value Market Value

Historical Investment Returns

 As expected, the experience in the past few years has shown both higher and lower rates of return than the long-term assumption. 

However, actuarial planning is long term, as the obligations of a pension plan are expected to continue for the lifetime of its active and 

inactive participants.

 Based upon this experience, the current asset allocation, and future expectations, we have maintained the assumed long-term rate of return 

of 7.25%. We will continue to monitor the Plan’s actual and anticipated investment returns and may revise our assumed long-term rate of 

return in a future actuarial valuation, if warranted. 

MARKET VALUE AND ACTUARIAL RATES OF RETURN FOR YEARS ENDED

DECEMBER 31

Average Rates of Return Actuarial Value Market Value

Most recent five-year average return: 8.84% 7.67% 

Most recent 10-year average return: 5.50% 5.74% 

20-year average return: 7.10% 6.68% 

Page 7.2.27
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 28

Non-Investment Experience 

Administrative Expenses

 Administrative expenses for the year ended December 31, 2015 of $2,996,220 resulted in a gain of $3,904 for the year. 

 Because it is projected that these expenses will continue at this level, we have maintained the assumption of $3,000,000 for the 

current year.

Mortality Experience

 Mortality experience (more or fewer than expected deaths) yields actuarial gains or losses. 

 The average number of deaths for nondisabled pensioners over the past eight years was 315 per year compared to 303 projected deaths per 

year. The disability mortality table was revised effective January 1, 2014. The average number of deaths for disabled pensioners over the 

past two years was 28.5 per year compared to 25.9 projected deaths per year. 

 We will continue to monitor the mortality experience and the margin for future mortality improvement. 

Other Experience

There are other differences between projected and actual experience that appear when a new valuation is compared with projections from the 

previous valuation. These include the extent of turnover among the participants and retirement experience (earlier or later than projected). 

Net Liability Experience

The net gain from mortality and other experience amounted to $4,783,770 for the last plan year, which is 0.2% of the projected actuarial 

accrued liability. 

Page 7.2.28
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 29

Actuarial Assumptions and Methods 

 The following change in assumptions was recognized for FSA and Solvency Projection purposes since the prior valuation: 

• The assumed benefit election for married pensioners changed from Life Annuity to 75% Joint and Survivor Option (“QOSA”) for 

future retirements. 

 The valuation reflects the following recommended method changes for FSA purposes since the prior valuation: 

• The actuarial cost method was changed from Entry Age Normal to Unit Credit. The Unit Credit actuarial cost method is recommended 

because it provides more flexibility in determining the proposed benefit suspensions under MPRA. 

• The actuarial value of assets was set equal to market value. Market value is recommended to be consistent with the asset basis used for 

our projections of plan insolvency. 

 The actuarial assumptions and methods can be found in Section 4, Exhibit 6.

Page 7.2.29
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 30

Plan Provisions 

 There were no changes in plan provisions since the prior valuation. 

 A summary of all plan provisions can be found in Section 4, Exhibit 5. 

Page 7.2.30
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 31

Funding Standard Account 

 A summary of the ERISA minimum funding requirements, including the exceptions that can apply, is included in Section 3, Exhibit H. 

 On December 31, 2015, the FSA had a funding deficiency of $443,104,399, as shown on the 2015 Schedule MB, a summary of which is 

shown in Section 3, Exhibit H. Contributions meet the legal requirement on a cumulative basis if that account shows no deficiency. For a 

plan that is in critical status under PPA’06, employers will generally not be penalized if a funding deficiency develops, provided the 

parties fulfill their obligations in accordance with the Rehabilitation Plan developed by the Trustees and the negotiated bargaining 

agreements reflect that Rehabilitation Plan.

 The minimum funding requirement for the year beginning January 1, 2016 is $582,342,694. 

Page 7.2.31
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 32

Pension Protection Act of 2006

2016 Actuarial Status Certification

 PPA’06 requires trustees to actively monitor their plans’ financial prospects to identify emerging funding challenges so they can be 

addressed effectively. Details are shown in Section 3, Exhibit J. 

 The 2016 certification, completed on March 30, 2016, was based on the liabilities calculated in the January 1, 2015 actuarial valuation, 

adjusted for subsequent events and projected to December 31, 2015, and estimated asset information as of December 31, 2015. The 

Trustees provided an industry activity projection that contributory months will decline by 2% per year for the next four years, then remain 

level after. 

 This Plan was classified as critical and declining (in the Red Zone) due to a projected deficiency in the FSA within 1 year and a projected 

insolvency within 15 years.

Rehabilitation Plan Update

 The Trustees initially adopted a Rehabilitation Plan to enable the plan to cease being in critical status by the end of the Rehabilitation 

Period. Under the Rehabilitation Plan, new collective bargaining agreements negotiated on or after April 28, 2008 will include the 

maximum benefit reductions allowed by law. These reductions include the removal of all early retirement subsidies, joint and survivor 

subsidies, disability pensions, the 36-payment pre-retirement death benefit and all benefit options besides the single life annuity, QJSA or 

QOSA. The Rehabilitation Plan also includes supplemental off-benefit contributions to the plan beginning January 1, 2013. 

 Due to the adverse experience, the Trustees have determined that they could not make any reasonable updates to the original 

Rehabilitation Plan to enable expected emergence from critical status. As a result, the Rehabilitation Plan was restated in 2012 for the 

Trustees’ decision to forestall plan insolvency. Working toward that goal, the Trustees have eliminated early retirement benefits for 

inactive participants and have reduced the supplemental off-benefit contributions to encourage continued plan participation. 

 Section 432(e)(3)(B) requires that the Trustees annually update the Rehabilitation Plan and Schedules. Segal will continue to assist the 

Trustees to evaluate and update the Rehabilitation Plan and prepare the required assessment of Scheduled Progress in meeting the 

requirements of the Rehabilitation Plan.

Page 7.2.32
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 33

0.00

0.50

1.00

1.50

2.00

2.50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$ Billions 

PVAB Actuarial Value of Assets

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PPA’06 Funded Percentage Historical Information

PRESENT VALUE OF ACCRUED BENEFITS (PVAB) VS. 

ACTUARIAL VALUE OF ASSETS AS OF JANUARY 1

PPA ’06 FUNDED PERCENTAGE AS OF JANUARY 1

Page 7.2.33
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 34

Solvency Projection 

 The Plan is operating under a Rehabilitation Plan that is intended to forestall insolvency. Accordingly, this report does not contain a longterm “Scheduled Cost” measure that the Trustees could use to evaluate whether benefit levels are sustainable given negotiated 

contribution rates. 

 The chart below shows that assets are projected to be exhausted in 2030, the same year as projected in last year’s valuation. The market 

value investment loss for the year was offset by the inclusion of expected future withdrawal liability payments. 

 These projections are based on the plan of benefits and assumptions used in this valuation, adjusted for and including the following: 

• assumes all non-retired members are covered under the Rehabilitation Plan Default Schedule, 

• reflects the Trustees’ decision to increase contribution rates by 5% per year over 7 years, beginning January 1, 2013 (the additional 

contributions do not count toward benefit accruals), 

• assumes expected future withdrawal liability payments, and

• assumes total contributory months will decline by 2% per year for the next four years, then remain level thereafter.

PROJECTED ASSETS AS OF DECEMBER 31

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

$ Billions 

Page 7.2.34
Section 2: Actuarial Valuation Results as of January 1, 2016 for the Automotive Industries 

Pension Plan 35

Disclosure Requirements 

Annual Funding Notice

 PPA’06 requires the annual funding notice to be provided to participants, employers, unions and government agencies. The notice must be 

sent by 120 days after the end of the plan year. The actuarial information to be provided in the annual funding notice is shown in 

Section 3, Exhibit G.

 The value of plan benefits earned to date as of January 1, 2016 is $1,916,926,229 using the long-term funding interest rate of 7.25%. As 

the actuarial value of assets is $1,192,990,400, the Plan’s funded percentage is 62.2%, compared to 61.1% in the prior year. The funded 

percentage is one measure of a plan’s funded status. It is not indicative of how well funded a plan may be in the future, especially in the 

event of plan termination. 

Current Liability

 ERISA also requires the disclosure by the actuary of the funding percentage based on "current liability" assumptions and the market value 

of assets, if it is less than 70%. The Plan’s current liability as of January 1, 2016 is $3,165,003,139 using an interest rate of 3.28%, based 

on 30-year U.S. Treasury security rates. As the market value of assets is $1,192,990,400, this funded current liability percentage is 37.7%. 

This will be disclosed on the 2016 Schedule MB of IRS Form 5500. Details are shown in Section 4, Exhibit 9. 

Accounting Information

 The Financial Accounting Standards Board (FASB) requires determination of the present value of accumulated plan benefits - the 

single-sum value of the benefits, vested or not, earned by participants as of the valuation date. Additional details on the present value of 

the accumulated plan benefits can be found in Section 4, Exhibit 2.

 These present values are determined based on the plan of benefits reflected for FSA purposes and are based upon the actuarial 

assumptions used to determine the ERISA funding costs of the ongoing Plan. These are not appropriate liability measurements for other 

purposes such as if the Plan were to terminate.

Page 7.2.35
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 36

Section 3: Supplementary Information

EXHIBIT A - TABLE OF PLAN COVERAGE 

Year Ended December 31

Category 2014 2015

Change from 

Prior Year

Active participants in valuation:

• Number 4,026 3,923 -2.6%

• Average age 45.1 45.1 N/A

• Average years of Credited Service 12.4 12.3 N/A

• Average credited contribution rate for upcoming year for benefit accruals $398.43 $399.29 0.2%

• Number with unknown age 17 3 N/A

• Total active vested participants 3,000 2,836 -5.5%

Inactive participants with rights to a pension:

• Number 10,470 10,394 -0.7%

• Average age 54.4 54.9 N/A

• Average monthly benefit $874 $891 1.9%

Pensioners (including disableds):

• Number in pay status 8,837 8,777 -0.7%

• Average age 72.9 73.3 N/A

• Average monthly benefit $1,131 $1,140 0.8%

• Number in suspended status 53 43 -18.9%

Beneficiaries:

• Number in pay status 2,410 2,419 0.4%

• Average age 75.2 75.5 N/A

• Average monthly benefit 431 447 3.7%

Page 7.2.36
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 37

EXHIBIT B - PARTICIPANT POPULATION 

Year Ended

December 31

Active

Participants

Inactive Vested

Participants

Pensioners and

Beneficiaries

Ratio of Non-Actives

to Actives

2006 6,426 11,231 9,979 3.30

2007 6,211 11,156 10,293 3.45

2008 5,661 10,856 10,698 3.81

2009 4,687 11,011 11,044 4.71

2010 4,484 10,882 11,243 4.93

2011 4,180 10,749 11,402 5.30

2012 4,031 10,709 11,419 5.49

2013 3,979 10,602 11,377 5.52

2014 4,026 10,470 11,300 5.41

2015 3,923 10,394 11,239 5.51

Page 7.2.37
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 38

EXHIBIT C - EMPLOYMENT HISTORY

Total Months of Contributions Active Participants Average Months of Contributions

Year Ended 

December 31 Number Percent Change Number Percent Change Number Percent Change

2006 75,015 -5.6% 6,426 -7.5% 11.7 2.6%

2007 71,943 -4.1% 6,211 -3.3% 11.6 -0.9%

2008 65,874 -8.4% 5,661 -8.9% 11.6 0.0%

2009 55,385 -15.9% 4,687 -17.2% 11.8 1.7%

2010 52,392 -5.4% 4,484 -4.3% 11.7 -0.8%

2011 48,940 -6.6% 4,180 -6.8% 11.7 0.0%

2012 46,993 -4.0% 4,031 -3.6% 11.7 0.0%

2013 46,296 -1.5% 3,979 -1.3% 11.6 -0.9%

2014 46,771 1.0% 4,026 1.2% 11.6 0.0%

2015 45,564 -2.6% 3,923 -2.6% 11.6 0.0%

Five-year average months: 11.6

Ten-year average months: 11.7 

Page 7.2.38
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 39

EXHIBIT D - SUMMARY STATEMENT OF INCOME AND EXPENSES ON AN ACTUARIAL BASIS 

Year Ended December 31, 2014 Year Ended December 31, 2015

Contribution income:

• Employer contributions $21,483,704 $20,894,823

• Withdrawal liability payments 6,788,280 8,600,901

• Liquidated damages 33,666 116,551

• Less administrative expenses -2,419,630 -2,996,220

Net contribution income $25,886,020 $26,616,055

Investment income:

• Expected investment income $82,066,859 $83,075,313

• Adjustment toward market value(1) 39,404,588 10,479,841

Net investment income 121,471,447 93,555,154

Total income available for benefits $147,357,467 $120,171,209

Less benefit payments -$133,798,195 -$133,827,365

Change in actuarial asset method $0 $7,174,518

Change in reserve for future benefits $13,559,272 -$6,481,638

(1) Recognizes the difference in market value ($5,747,487 for 2014 and $5,119,780 for 2015) between the draft audit report used for 

the prior year’s valuation and the final audit report.

Page 7.2.39
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 40

EXHIBIT E - FINANCIAL INFORMATION TABLE

Year Ended December 31, 2014 Year Ended December 31, 2015

Cash equivalents $13,894,118 $18,539,310

Accounts receivable:

• Employer contributions $1,500,916 $1,289,383

• Accrued investment income 5,157,569 4,536,815

Total accounts receivable 6,658,485 5,826,198

Investments:

• Common stock $633,908,820 589,294,764

• Corporate obligations 188,110,956 165,735,087

• Collective trusts 136,023,143 106,611,606

• Limited partnerships 87,348,619 79,360,652

• Limited liability companies and other 

private equity 42,329,503 38,702,985

• U.S. Government and Government 

Agency obligations 25,682,181 18,878,670

• Real estate investment fund 64,798,679 73,728,300

• U.S. Treasury notes 66,773,205 63,985,706

• Cash equivalents 33,893,127 34,600,106

• Real estate investment trusts 2,047,131 0

• Mutual funds 816,199 1,045,445

Total investments at market value 1,281,731,563 1,171,943,321

Total assets $1,302,284,166 $1,196,308,829

Less accounts payable -$4,616,099 -$3,318,429

Net assets at market value $1,297,668,067* $1,192,990,400

Net assets at actuarial value $1,199,472,038 $1,192,990,400

* Based on a draft audit report used for the prior year’s valuation. The market value in the final audit report was revised by 

$5,119,780 to $1,302,787,847.

Page 7.2.40
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 41

EXHIBIT F - INVESTMENT RETURN – ACTUARIAL VALUE VS. MARKET VALUE

Actuarial Value

Investment Return*

Market Value

Investment Return

Actuarial Value

Investment Return*

Market Value

Investment Return

Year Ended 

December 31 Amount Percent Amount Percent

Year Ended 

December 31 Amount Percent Amount Percent

1996 $112,854,729 14.95% $121,975,932 14.60% 2006 $92,832,022 6.49% $195,157,758 14.03%

1997 187,327,378 22.24% 205,092,727 21.88% 2007 131,895,915 9.08% 114,762,992 7.58%

1998 195,373,452 19.54% 213,521,275 19.19% 2008 -175,242,416 -11.64% -435,550,927 -28.08%

1999 81,780,749 7.05% 74,274,648 5.75% 2009 60,972,513 4.91% 239,476,303 23.35%

2000 177,747,357 14.75% 54,220,234 4.08% 2010 77,802,636 6.47% 151,288,010 12.97%

2001 79,973,253 5.87% -9,069,183 -0.67% 2011 42,140,746 3.58% 4,437,230 0.37%

2002 45,393,706 3.19% -89,236,183 -6.68% 2012 48,750,735 4.38% 146,396,089 13.17%

2003 61,192,070 4.28% 184,138,629 15.25% 2013 183,962,564 17.42% 228,350,850 19.81%

2004 60,565,457 4.20% 100,886,814 7.52% 2014 121,471,447 10.73% 78,292,262 6.15%

2005 53,952,656 3.74% 74,528,689 5.39% 2015 100,729,672 8.79% 2,533,643 0.20%

Total $1,741,476,641 $1,655,477,792

Most recent 5-year average return: 8.84% 7.67% 

Most recent 10-year average return: 5.50% 5.74% 

20-year average return: 7.10% 6.68% 

Note: Each year’s yield is weighted by the average asset value in that year.

* The investment returns for 2000 and 2015 include the effect of a change in the method for determining the actuarial value of assets.

Page 7.2.41
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 42

EXHIBIT G - ANNUAL FUNDING NOTICE FOR PLAN YEAR BEGINNING

JANUARY 1, 2016 AND ENDING DECEMBER 31, 2016

2016

Plan Year

2015

Plan Year

2014

Plan Year

Actuarial valuation date January 1, 2016 January 1, 2015 January 1, 2014

Funded percentage 62.2% 61.1% 60.7%

Value of assets $1,192,990,400 $1,199,472,038 $1,185,912,766

Value of liabilities 1,916,926,229 1,962,292,229 1,954,700,784

Fair value of assets as of plan year end Not available 1,192,990,400 1,297,668,067

Critical or Endangered Status

The Plan was in critical status in the plan year for the following five reasons:

1. The plan had a projected Funding Standard Account funding deficiency within 4 years; and

2. The plan had a funded percentage less than 65% and a projected funding deficiency within 5 years; and 

3. The plan’s inactive vested liability exceeded that for actives and the plan had a projected funding deficiency within 

5 years and the plan’s projected contributions fall short of the plan’s normal cost plus interest on unfunded liability; and

4. The plan was in critical status last year and had a projected funding deficiency within 10 years; and

5. The plan was in critical status last year and had a projected insolvency within 30 years. 

The plan was also in critical and declining status because:

1. The plan had a ratio of inactives to actives of at least 2 to 1 and had a projected insolvency within 20 years; and

2. The plan had a funded percentage less than 80% and had a projected insolvency within 20 years; and

3. The plan has a projected insolvency within 15 years.

Page 7.2.42
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 43

EXHIBIT H - FUNDING STANDARD ACCOUNT

 ERISA imposes a minimum funding standard that requires the Plan to maintain an FSA. The accumulation of contributions in excess of 

the minimum required contributions is called the FSA credit balance. If actual contributions fall short on a cumulative basis, a funding 

deficiency has occurred. For a plan that is in critical status under PPA’06, employers will generally not be penalized if a funding 

deficiency develops, provided the parties fulfill their obligations in accordance with the Rehabilitation Plan developed by the Trustees and 

the negotiated bargaining agreements reflect that Rehabilitation Plan.

 The FSA is charged with the normal cost and the amortization of increases or decreases in the unfunded actuarial accrued liability due to 

plan amendments, experience gains or losses, and changes in actuarial assumptions and funding methods. The FSA is credited with 

employer contributions and withdrawal liability payments. All items, including the prior credit balance or deficiency, are adjusted with 

interest at the actuarially assumed rate.

 Increases or decreases in the unfunded actuarial accrued liability are amortized over 15 years except that short-term benefits, such as 13th

checks, are amortized over the scheduled payout period. 

FSA FOR THE YEAR ENDED DECEMBER 31, 2015

Charges Credits

1 Prior year funding deficiency $332,583,760 6 Prior year credit balance $0

2 Normal cost, including administrative expenses 6,156,802 7 Employer contributions 29,612,275

3 Total amortization charges 122,965,604 8 Total amortization credits 19,943,817

4 Interest to end of the year 33,473,697 9 Interest to end of the year 2,519,372

5 Total charges $495,179,863 10 Full-funding limitation credit 0 

11 Total credits $52,075,464

Credit balance (Funding deficiency): 

11 - 5

-$443,104,399

Page 7.2.43
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 44

EXHIBIT I - MAXIMUM DEDUCTIBLE CONTRIBUTION

 Employers that contribute to defined benefit pension plans are allowed a current deduction for payments to such plans. There are various 

measures of a plan’s funded level that are considered in the development of the maximum deductible contribution amount. 

 One of the limits is the excess of 140% of “current liability” over assets. “Current liability” is one measure of the actuarial present value 

of all benefits earned by the participants as of the valuation date. This limit is significantly higher than the current contribution level. 

 Contributions in excess of the maximum deductible amount are not prohibited; only the deductibility of these contributions is subject to 

challenge and may have to be deferred to a later year. In addition, if contributions are not fully deductible, an excise tax in an amount 

equal to 10% of the non-deductible contributions may be imposed. However, the plan sponsor may elect to exempt the non-deductible 

amount up to the ERISA full-funding limitation from the excise tax.

 The Trustees should review the interpretation and applicability of all laws and regulations concerning any issues as to the deductibility of 

contribution amounts with Fund Counsel. 

1 Normal cost, including administrative expenses $8,160,791

2 Amortization of unfunded actuarial accrued liability (fresh start as of January 1, 2016) 97,218,198

3 Preliminary maximum deductible contribution: 1 + 2, with interest to the end of the plan year $113,018,966

4 Full-funding limitation (FFL) 1,694,161,885

5 Preliminary maximum deductible contribution, adjusted for FFL: lesser of 3 and 4 113,018,966

6 Current liability, projected to the end of the plan year 3,140,587,038

7 Actuarial value of assets, projected to the end of the plan year 1,132,366,450

8 Excess of 140% of current liability over projected assets at end of plan year: [140% of (6)] - (7), not less than zero 3,264,455,404

9 End of year minimum required contribution 582,342,694

Maximum deductible contribution: greatest of 5, 8, and 9 $3,264,455,404

Page 7.2.44
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 45

EXHIBIT J - PENSION PROTECTION ACT OF 2006

PPA’06 Zone Status 

 Based on projections of the credit balance in the FSA, the funded percentage, and cash flow sufficiency tests, plans are categorized in one 

of three “zones”: critical status, endangered status, or neither.

 The funded percentage is determined using the actuarial value of assets and the present value of benefits earned to date, based on the 

actuary’s best estimate assumptions.

Critical 

Status

(Red Zone) 

A plan is classified as being in critical status (the Red Zone) if:

• The funded percentage is less than 65%, and either there is a projected FSA deficiency within five years or the plan is projected to 

be unable to pay benefits within seven years, or

• There is a projected FSA deficiency within four years, or 

• There is a projected inability to pay benefits within five years, or

• The present value of vested benefits for inactive participants exceeds that for actives, contributions are less than the value of the 

current year’s benefit accruals plus interest on existing unfunded accrued benefit liabilities, and there is a projected FSA deficiency 

within five years, or

• As permitted by the Multiemployer Pension Reform Act of 2014, the plan is projected to be in the Red Zone within five years and 

the plan sponsor elects to be in critical status.

A critical status plan is further classified as being in critical and declining status if:

• The ratio of inactives to actives is at least 2 to 1, and there is an inability to pay benefits projected within 20 years, or

• The funded percentage is less than 80%, and there is an inability to pay benefits projected within 20 years, or

• There is an inability to pay benefits projected within 15 years.

Any amortization extensions are ignored for testing initial entry into the Red Zone. 

The Trustees are required to adopt a formal Rehabilitation Plan, designed to allow the plan to emerge from critical status by the end 

of the rehabilitation period. If they determine that such emergence is not reasonable, the Rehabilitation Plan must be designed to 

emerge as of a later time or to forestall possible insolvency.

Trustees of Red Zone plans have tools, such as the ability to reduce or eliminate early retirement subsidies, to remedy the situation. 

Accelerated forms of benefit payment (such as lump sums) are prohibited. However, unless the plan is critical and declining, 

Trustees may not reduce benefits of participants who retired before being notified of the plan’s critical status (other than rolling back 

recent benefit increases) or alter core retirement benefits payable at normal retirement age. 

Page 7.2.45
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 46

Endangered 

Status 

(Yellow Zone) 

A plan not in critical status (Red Zone) is classified as being in endangered status (the Yellow Zone) if:

• The funded percentage is less than 80%, or

• There is a projected FSA deficiency within seven years.

A plan that has both of the endangered conditions present is classified as seriously endangered.

Trustees of a plan that was in the Green Zone in the prior year can elect not to enter the Yellow Zone in the current year (although 

otherwise required to do so) if the plan’s current provisions would be sufficient (with no further action) to allow the plan to emerge 

from the Yellow Zone within 10 years.

The Trustees are required to adopt a formal Funding Improvement Plan, designed to improve the current funded percentage, and 

avoid a funding deficiency as of the emergence date.

Green Zone A plan not in critical status (the Red Zone) nor in endangered status (the Yellow Zone) is classified as being in the Green Zone.

Early Election 

of Critical 

Status

Trustees of a Green or Yellow Zone plan that is projected to enter the Red Zone within five years must elect whether or not to enter 

the Red Zone for the current year. 

Page 7.2.46
Section 3: Supplementary Information as of January 1, 2016 for the Automotive Industries 

Pension Plan 47

EXHIBIT K - SECTION 415 LIMITATIONS

 Section 415 of the IRC specifies in terms of pay or dollars the maximum benefit that may be paid to an individual from a defined benefit 

plan and the maximum amount that may be allocated each year to an individual’s account in a defined contribution plan. 

 If an individual is covered only by multiemployer plans, the plans’ benefits do not have to be combined. If the individual is covered by a 

multiemployer and a single-employer plan, the benefits from all plans maintained by the same employer are combined. Multiemployer 

plan benefits do not need to be combined with single-employer plan benefits in testing the pay-based limit but are combined for testing the 

dollar-based limit.

 A qualified pension plan may not pay benefits in excess of the IRC Section 415 limits. Non-compliance can result in disqualification of 

the plan; the plan could lose its tax-exempt status, employers could lose their deductions and active participants could be taxed on their 

vested benefits. 

 Section 415(b) as amended by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) limits the maximum annual 

benefit payable to a dollar limit of $160,000 indexed for inflation. The dollar limit indexed for inflation has remained unchanged at 

$210,000 for 2015 and 2016. The limits must be adjusted based on each participant’s circumstances for such things as age at retirement 

and form of benefits chosen. 

 While the actual determination of the exact limits applicable to each participant’s benefit can only be determined when the individual 

retires and applies for benefits, the overall impact of the Section 415 dollar limits has been reflected in this valuation for minimum and 

maximum funding purposes, based on our understanding of the requirements of IRC Sections 404, 412, 415, and 431 and the data 

available to us.

 The Trustees should review the interpretation and applicability of the law and regulations in this area with Fund Counsel. 

Page 7.2.47
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 48

Section 4: Certificate of Actuarial Valuation

JUNE 7, 2016

CERTIFICATE OF ACTUARIAL VALUATION

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”) has prepared an actuarial valuation of the Automotive 

Industries Pension Plan as of January 1, 2016 in accordance with generally accepted actuarial principles and practices. It has been prepared at 

the request of the Board of Trustees to assist in administering the Fund and meeting filing requirements of federal government agencies. This

valuation report may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees and may only be 

provided to other parties in its entirety.

The measurements shown in this actuarial valuation may not be applicable for other purposes. 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 amortization period or additional cost 

or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. 

The valuation is based on the assumption that the Plan is qualified as a multiemployer plan for the year and on draft information supplied by 

the auditor with respect to contributions and assets and reliance on the Plan Administrator with respect to the participant data. Segal 

Consulting does not audit the data provided. The accuracy and comprehensiveness of the data is the responsibility of those supplying the data. 

To the extent we can, however, Segal does review the data for reasonableness and consistency. Based on our review of the data, we have no 

reason to doubt the substantial accuracy of the information on which we have based this report and we have no reason to believe there are facts 

or circumstances that would affect the validity of these results. Adjustments for incomplete or apparently inconsistent data were made as 

described in the attached Exhibit 6. 

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

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial valuation is complete and accurate, 

except as noted in Exhibit 1. Each prescribed assumption for the determination of Current Liability 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 combination, offer my best estimate of anticipated experience under the plan. 

Paul C. Poon, ASA, MAAA

Associate Actuary

Enrolled Actuary No. 14-06069 

Page 7.2.48

Redacted by the U.S. Department of the Treasury
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 49

EXHIBIT 1 - SUMMARY OF ACTUARIAL VALUATION RESULTS

The valuation was made with respect to the following data supplied to us by the Plan Administrator: 

Pensioners as of the valuation date (including 2,419 beneficiaries in pay status and 43 pensioners in suspended status) 11,239

Participants inactive during year ended December 31, 2015 with vested rights (including 1 participant with unknown age) 10,394

Participants active during the year ended December 31, 2015 (including 3 participants with unknown age) 3,923

• Fully vested 2,836

• Not vested 1,087

Total participants 25,556

The actuarial factors as of the valuation date are as follows:

Normal cost, including administrative expenses $8,160,791

Actuarial present value of projected benefits 1,958,083,789

Present value of future normal costs 41,157,560

Actuarial accrued liability 1,916,926,229

• Pensioners and beneficiaries $1,203,131,908

• Inactive participants with vested rights 521,981,469

• Active participants 191,812,852

Actuarial value of assets ($1,192,990,400 at market value as reported by Lindquist LLP) $1,192,990,400

Unfunded actuarial accrued liability 723,935,829

 

Page 7.2.49
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 50

EXHIBIT 2 - ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS

The actuarial present value of accumulated plan benefits calculated in accordance with FAS ASC 960 is shown below as of 

January 1, 2015 and as of January 1, 2016. In addition, the factors that affected the change between the two dates follow. 

Benefit Information Date

January 1, 2015 January 1, 2016

Actuarial present value of vested accumulated plan benefits:

• Participants currently receiving payments $1,217,466,920 $1,203,131,908

• Other vested benefits 743,708,297 712,226,557

• Total vested benefits $1,961,175,217 $1,915,358,465

Actuarial present value of non-vested accumulated plan benefits 1,117,012 1,567,764

Total actuarial present value of accumulated plan benefits $1,962,292,229 $1,916,926,229

Factors

Change in Actuarial 

Present Value of 

Accumulated Plan Benefits

Benefits accumulated, net experience gain or loss, changes in data $1,988,189

Benefits paid -133,827,365

Changes in actuarial assumptions -50,941,769

Interest 137,414,945

Total -$45,366,000

Page 7.2.50
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 51

EXHIBIT 3 - CURRENT LIABILITY1

The table below presents the current liability for the Plan Year beginning January 1, 2016. 

Item Amount

Retired participants and beneficiaries receiving payments $1,701,306,908

Inactive vested participants 1,069,256,570

Active participants

• Non-vested benefits $10,739,461

• Vested benefits 383,700,200

• Total active $394,439,661

Total $3,165,003,139

Expected increase in current liability due to benefits accruing during the plan year $12,616,560

Expected release from current liability for the plan year 138,979,326

Expected plan disbursements for the plan year, including administrative expenses of $3,000,000 $141,979,326

Current value of assets $1,192,990,400

Percentage funded for Schedule MB 37.7%

1 The actuarial assumptions used to calculate these values are shown in Exhibit 6. 

Page 7.2.51
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 52

EXHIBIT 4 - INFORMATION ON PLAN STATUS AS OF JANUARY 1, 2016

Plan status (as certified on March 30, 2016, for the 2016 zone certification) Critical and 

Declining

Scheduled progress (as certified on March 30, 2016, for the 2016 zone certification) Yes

Actuarial value of assets for FSA $1,192,990,400

Accrued liability under unit credit cost method 1,916,926,229

Funded percentage for monitoring plan's status 62.2%

Reduction in unit credit accrued liability benefits since the prior valuation date resulting from the reduction in adjustable benefits $0

Year in which insolvency is expected 2030

Page 7.2.52
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 53

EXHIBIT 5 - SUMMARY OF PLAN PROVISIONS

(SCHEDULE MB, LINE 6) 

This exhibit summarizes the major provisions of the Plan included in the valuation. It is not intended to be, nor should it be 

interpreted as, a complete statement of all plan provisions. 

Plan Year January 1 through December 31

Pension Credit Year January 1 through December 31

Plan Status Ongoing plan

Normal Pension • Age Requirement: 65 

• Service Requirement: 5 years of Credited Service (including 24 months of Future Service)

• Amount: The monthly amount is the sum of (a), (b), (c), (d) and (e).

a. $10.00 for each year of Past Service.

b. $5.00 for each $100 of the contributions made on the participant’s behalf from his Contribution Date through June 

30, 2003.

c. $3.00 for each $100 of the contributions made on the participant’s behalf from July 1, 2003 through December 

31, 2004.

d. 0.5% for the first $250 of monthly contributions, 1.0% for the next $250 of monthly contributions, and 2.0% of 

monthly contributions in excess of $500 made on the participant’s behalf on or after January 1, 2005.

e. 1.0% of monthly contributions made on the participant’s behalf on or after July 1, 2008.

Contribution increases under the Rehabilitation Plan do not count for benefit accruals.

Early Retirement

Pension

• Age Requirement: 55

• Service Requirement: 60 months of Credited Future Service

• Amount: Accrued Normal Pension amount to which the participant would be entitled, reduced by 3% for each year 

that the retiring employee is younger than 62 (no reduction is applied between ages 62 and 65 for the Unreduced 

Early Pension, or if participants age and service total at least 85 for the Unreduced Rule of 85 Pension). For 

participants subject to the Rehabilitation Plan benefit reductions, all Early Retirement Pensions are reduced from age 

65, using the plan’s actuarial equivalence basis. This benefit is not available to those who retire from inactive status.

Page 7.2.53
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 54

Disability Pension • Age Requirement: None

• Service Requirement: 5 years of Credited Service (including 24 months of Future Service)

• Other Requirements: Eligible for a Social Security disability benefit.

• Amount: Accrued Normal Pension amount to which the participant would be entitled (on his date of disability) without 

any reduction. For participants subject to the Rehabilitation Plan benefit reductions, the Disability Pension is not 

available and those who become disabled are eligible only for the Vested Benefit described below.

Vested Benefit • Age Requirement: None

• Service Requirement: 5 years of Credited Service (including 24 months of Future Service)

• Amount: Accrued Normal Pension, payable commencing at Normal Retirement Age, or, if available (on a reduced 

basis), as early as age 55.

• Normal Retirement Age: The later of age 65 and the fifth anniversary of participation.

Spouse’s Benefit • Age Requirement: None

• Service Requirement: 5 years of Credited Service (including 24 months of Future Service)

• Amount: 50% of the benefit that the participant would have received had he or she retired the day before death on a 

Joint and Survivor Annuity. If the participant is not eligible to retire at the time of death, payments will be deferred until 

the participant’s earliest retirement age.

Pre-Retirement Death 

Benefit

• Age Requirement: None

• Service Requirement: 5 years of Credited Service (including 24 months of Future Service)

• Amount: Return of the total contributions made on account of the participant’s employment or, if greater, the 

participant’s unreduced pension at time of death payable for 36 months. This benefit is not payable if benefits are due 

under the Spouse's Benefit or for participants subject to the Rehabilitation Plan benefit reductions.

Joint and Survivor 

Annuity

All retirements are paid in the form of a 50% joint and survivor annuity unless this form is rejected by the participant and 

spouse. The benefit amount otherwise payable is reduced to reflect the joint and survivor coverage. If the spouse 

predeceases the participant, the benefit "pops-up" to the amount is payable before the reduction. If this type of pension 

is rejected, benefits are payable for the life of the participant without reduction (with a minimum guarantee of 36 monthly 

payments) or in any other available optional form elected by the participant. For participants subject to the Rehabilitation 

Plan benefit reductions, the “pop-up” feature and the 36-month guarantee are not available, and the joint and survivor 

reduction factors are based on the plan’s actuarial equivalence basis.

Page 7.2.54
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 55

Optional Forms of 

Benefit Payment

• 50% Joint and Survivor Option (“QJSA”)

• 75% Joint and Survivor Option (“QOSA”)

• Life with 36-Month Guarantee Option

• Life with 120-Month Guarantee Option

• Full 100% Joint and Survivor Option

Aside from a life only annuity, QJSA and QOSA, these options are not available for participants subject to the 

Rehabilitation Plan benefit reductions.

Credited Service 

Schedule

Commencing January 1, 1976 a year of Future Service is credited during any Plan Year in which the participant 

completes at least 5 months of covered service. (No fractional credit is granted.) Prior to January 1, 1976, Future 

Service was granted at the rate of one-twelfth of a year for each month of contribution payments.

Past Service is credited for service prior to the Contribution Date up to a maximum of 20 years for members who 

became participants prior to January 1, 1975 and 10 years for members who entered the Plan after January 1, 1975. 

For participants who joined the Plan after 1978, the amount of Credited Past Service can not exceed the Credited 

Future Service earned under the Plan.

Break-in-Service Rules • One-Year Break: A participant incurs a One-Year Break in Service if he or she fails to complete five months of service 

or 501 hours of service in a Plan Year.

• Permanent Break: A non-vested participant incurs a Permanent Break in Service if the number of consecutive OneYear Breaks in Service is at least 5 and it equals or exceeds the number of years of Credited Service which the 

employee had previously accumulated. At this time, the non-vested portion of the participant’s service and benefits 

accrued are canceled.

Participation Rule An employee becomes a “Participant” the first day of the first month for which an employer contribution was made.

Contribution Rate The average benefit contribution rate on January 1, 2016 was $399.29 per month.

Plan Amendments There were no changes in plan provisions reflected in this actuarial valuation

Page 7.2.55
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 56

EXHIBIT 6 - STATEMENT OF ACTUARIAL ASSUMPTIONS/METHODS

(SCHEDULE MB, LINE 6) 

Mortality Rates Healthy: RP-2000 Combined Healthy Mortality Tables, set back 1 year

Disabled: RP-2000 Combined Healthy Mortality Tables, set forward 3 years

The tables contain approximately a margin of 4% (actual deaths compared to expected deaths) as a provision for future 

mortality improvement. 

The mortality rates were based on historical and current demographic data, adjusted to reflect estimated future 

experience and professional judgment. As part of the analysis, a comparison was made between the actual number of 

deaths and the projected number based on the assumption over the most recent 8 years.

Termination Rates 

before Retirement Rate (%)

Mortality

Age Male Female Disability Withdrawal*

20 0.03 0.02 0.05 21.20

25 0.04 0.02 0.06 15.80

30 0.04 0.02 0.08 11.60

35 0.07 0.04 0.11 8.40

40 0.10 0.06 0.17 6.20

45 0.14 0.10 0.27 4.20

50 0.20 0.16 0.45 2.60

55 0.32 0.24 0.76 1.00

60 0.59 0.44 1.22 0.00

* Withdrawal rates under age 55 are increased by 6 percentage points for the first 5 years of service. Withdrawal 

rates do not apply at retirement eligibility.

The termination rates and disability rates were based on historical and current demographic data, 

adjusted to reflect estimated future experience and professional judgment. As part of the analysis, a 

comparison was made between the actual number of terminations and disability retirements and the 

projected number based on the assumption over the most recent 8 years.

Page 7.2.56
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 57

Retirement Rates

Age Annual Retirement Rates

55 – 60 5%

61 15

62 35

63-64 25

65 50

66 30

67 100

The retirement rates were based on historical and current demographic data, adjusted to reflect 

estimated future experience and professional judgment. As part of the analysis, a comparison was made 

between the actual number of retirements and the projected number based on the assumption over the 

most recent 8 years.

Description of 

Weighted Average 

Retirement Age

Age 62.2, determined as follows: The weighted average retirement age for each participant is calculated as the sum of 

the product of each potential current or future retirement age times the probability of surviving from current age to that 

age and then retiring at that age, assuming no other decrements. The overall weighted retirement age is the average of 

the individual retirement ages based on all the active participants included in this actuarial valuation.

Retirement Age for 

Inactive Vested 

Participants

Age 65

The retirement age for inactive vested participants was based on historical and current demographic data, adjusted to 

reflect the plan design, estimated future experience and professional judgment. As part of the analysis, the ages of new 

retirees from inactive vested status were reviewed.

Future Benefit 

Accruals

Work-year of 11.2 months of contributions per active participant.

The future benefit accruals were based on historical and current demographic data, adjusted to reflect estimated future 

experience and professional judgment. As part of the analysis, a comparison was made between the assumed and the 

actual benefit accruals over the most recent 10 years.

Unknown Data for 

Participants

Same as those exhibited by participants with similar known characteristics. If not specified, participants are assumed to 

be male. 

Definition of Active 

Participants

Active participants are defined as those with at least five months in the most recent Plan Year, excluding those who 

have retired as of the valuation date.

Page 7.2.57
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 58

Exclusion of Inactive 

Vesteds

Inactive participants over age 70 excluded from the valuation.

The exclusion of inactive vested participants over age 70 was based on historical and current demographic data, 

adjusted to reflect estimated future experience and professional judgment. As part of the analysis, the ages of new 

retirees from inactive vested status were reviewed.

Percent Married 85%

Age of Spouse Females 4 years younger than males.

Benefit Election For future retirements, married participants are assumed to elect the 75% Joint and Survivor Option (“QOSA”) and nonmarried participants are assumed to elect the Straight Life Annuity.

The benefit elections were based on historical and current demographic data, adjusted to reflect the plan design, 

estimated future experience and professional judgment. As part of the analysis, a comparison was made between the 

assumed and the actual option election patterns over the most recent 8 years.

Net Investment Return 7.25% 

The net investment return assumption is a long-term estimate derived from historical data, current and recent market 

expectations, and professional judgment. As part of the analysis, a building block approach was used that reflects 

inflation expectations and anticipated risk premiums for each of the portfolio’s asset classes as provided by Segal

Rogerscasey, as well as the Plan’s target asset allocation.

Annual Administrative 

Expenses

$3,000,000, payable monthly (equivalent to $2,888,977 payable at the beginning of the year). 

The annual administrative expenses were based on historical and current data, adjusted to reflect estimated future 

experience and professional judgment. 

Actuarial Value of 

Assets

At market value. 

Actuarial Cost Method Unit Credit Actuarial Cost Method. Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and 

are allocated by service.

Benefits Valued Unless otherwise indicated, includes all benefits summarized in Exhibit 5. 

Current Liability 

Assumptions

Interest: 3.28%, within the permissible range prescribed under IRC Section 431(c)(6)(E)

Mortality: Mortality prescribed under IRS Regulations 1.431(c)(6)-1 and 1.430(h)(3)-1: RP-2000 tables projected forward 

to the valuation year plus seven years for annuitants and 15 years for nonannuitants

Estimated Rate of 

Investment Return

On actuarial value of assets (Schedule MB, line 6g): 8.2%, for the Plan Year ending December 31, 2015

On current (market) value of assets (Schedule MB, line 6h): .2%, for the Plan Year ending December 31, 2015 

Page 7.2.58
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 59

FSA Contribution 

Timing (Schedule MB, 

line 3a)

Unless otherwise noted, contributions are paid periodically throughout the year pursuant to collective bargaining 

agreements. The interest credited in the Funding Standard Account is therefore assumed to be equivalent to a July 1st 

contribution date.

Justification for 

Change in Actuarial 

Assumptions

(Schedule MB, line 11)

For purposes of determining current liability, the current liability interest rate was changed due to a change in the 

permissible range and recognizing that any rate within the permissible range satisfies the requirements of IRC Section 

431(c)(6)(E) and the mortality tables were changed in accordance with IRS Regulations 1.431(c)(6)-1 and 1.430(h)(3)-

1.

Based on past experience and future expectations, the following actuarial assumption was changed as of 

December 31, 2015: 

 Benefit election for married future pensioners, previously Straight Life Annuity.

Method Changes The following actuarial methods were changed as of January 1, 2016. Both changes are subject to automatic approval 

pursuant to IRS Revenue Procedure 2000-40. 

 Actuarial cost method, previously Entry Age Normal.

 Asset method, previously the actuarial value of assets calculated as the market value of assets less unrecognized 

returns in each of the last five years. Unrecognized return is equal to the difference between the actual market 

return and the expected return on the actuarial value, and is recognized over a five-year period. The actuarial value 

is further adjusted, if necessary, to be within 20% of the market value.

Page 7.2.59
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 60

EXHIBIT 7 - SCHEDULE OF PROJECTION OF EXPECTED BENEFIT PAYMENTS

(SCHEDULE MB, LINE 8b(1))

Plan Year Expected Annual Benefit Payments

2016 $138,810,556

2017 139,673,967

2018 141,303,784

2019 143,275,235

2020 145,805,531

2021 148,361,811

2022 152,194,330

2023 155,050,537 

2024 157,330,833

2025 159,421,896

Page 7.2.60
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 61

EXHIBIT 8 - SCHEDULE OF ACTIVE PARTICIPANT DATA

(SCHEDULE MB, LINE 8b(2)) 

The participant data is for the year ended December 31, 2015 

Years of Credited Service

Age Total 1-4 5-9 10-14 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39

40 & 

over

Under 25 162 156 6 – – – – – – – 

25 - 29 337 235 91 11 – – – – – – 

30 - 34 428 208 140 72 8 – – – – – 

35 - 39 447 158 106 105 73 5 – – – – 

40 - 44 467 121 90 114 104 36 2 – – – 

45 - 49 505 84 85 125 112 56 40 3 – – 

50 - 54 647 75 73 136 133 93 96 39 2 – 

55 - 59 556 35 46 92 112 79 108 59 25 – 

60 - 64 287 7 25 44 60 50 50 24 23 4 

65 - 69 80 4 3 17 20 9 12 4 4 7 

70 & over 4 1 1 – 1 – – – – 1 

Unknown 3 3 – – – – – – – – 

Total 3,923 1,087 666 716 623 328 308 129 54 12

Page 7.2.61
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 62

EXHIBIT 9 - FUNDING STANDARD ACCOUNT

The table below presents the FSA for the Plan Year ending December 31, 2016. 

Charges Credits

1 Prior year funding deficiency $443,104,399 6 Prior year credit balance $0

2 Normal cost, including administrative expenses 8,160,791 7 Amortization credits 31,253,922

3 Amortization charges 122,965,603 8 Interest on 6 and 7 2,265,909

4 Interest on 1, 2 and 3 41,631,732 9 Full-funding limitation credit 0 

5 Total charges $615,862,525 10 Total credits $33,519,831

Minimum contribution with interest required to avoid a funding deficiency: 5 - 10, not less than zero $582,342,694

Full funding limitations (FFL) and credits:

ERISA FFL (accrued liability FFL) $785,173,625

RPA’94 override (90% current liability FFL) 1,694,161,885

FFL credit 0 

Page 7.2.62
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 63

EXHIBIT 9 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Charges) (Schedule MB, Line 9c)

Type of Base

Date

Established

Amortization

Amount

Years

Remaining

Outstanding

Balance

Combined Base 01/01/2012 $114,042,944 4.82 483,087,221

Plan Amendment 01/01/2012 71,720 11 $569,684

Experience Loss 01/01/2012 3,929,674 11 31,213,909

Experience Loss 01/01/2013 4,468,372 12 37,561,945

Change in Assumptions 01/01/2014 452,893 13 4,002,641

Total $122,965,603 $556,435,400

Page 7.2.63
Section 4: Certificate of Actuarial Valuation as of January 1, 2016 for the Automotive Industries 

Pension Plan 64

EXHIBIT 9 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Credits) (Schedule MB, Line 9h)

Type of Base

Date

Established

Amortization

Amount

Years

Remaining

Outstanding

Balance

Plan Amendment 07/01/2012 $2,549,656 11.5 $20,852,886

Plan Amendment 01/01/2013 4,388 12 36,890

Plan Amendment 07/01/2013 1,234,444 12.5 10,648,107

Plan Amendment 01/01/2014 810,548 13 7,163,569

Experience Gain 01/01/2014 11,003,792 13 97,250,749

Experience Gain 01/01/2015 4,340,989 14 40,112,889

Experience Loss 01/01/2016 1,587,746 15 15,267,516

Change in Assumptions 01/01/2016 5,473,446 15 52,631,817

Change in Funding Method 01/01/2016 3,285,438 10 24,465,029

Change in Asset Method 01/01/2016 963,475 10 7,174,518

Total $31,253,922 $275,603,970

Page 7.2.64
Section 5: General Background as of January 1, 2016 for the Automotive Industries

Pension Plan 65

Section 5: General Background

A summary of major developments with the background and position of the Pension Plan is provided in this section.

CHANGES IN BENEFIT AMOUNTS AND AVERAGE CONTRIBUTION RATE SINCE JANUARY 1, 1976

Effective Date Average Monthly 

Credited

Contribution Rate

Monthly Pension Amount Improvement 

to Existing 

Year Month Retirees

Per Year of 

Past Service

Future Service (per 

$100 of Contributions)

1976

1980

1981

1984

1986

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

January

January

November

September

January

January

January

December

January

January

January

January

January

January

January

January

$ 87.58

103.49

126.33

139.13

153.00

163.60

180.00

183.00

187.00

191.25

200.67

220.37

195.75

205.64

208.50

$ 5.00

5.50

6.05

6.96

7.27

7.71

 

10.00

 $2.75

 3.03

 3.33

 3.83

 4.00

 4.24

$4.45/$4.24(2)

$4.50/$4.24(3)

$4.50/$4.24(4)

$4.50/$4.24(5)

$4.73/$4.24(5)

$4.90/$4.73(4)/$4.24(5)

$5.00/$4.24(5)

10%

(1)

10%

15%

4.5%

6%

(1)

4.25%

1%

4%(1)

2%(1)

1%(1)

2%(1)

Page 7.2.65
Section 5: General Background as of January 1, 2016 for the Automotive Industries

Pension Plan 66

CHANGES IN BENEFIT AMOUNTS AND AVERAGE CONTRIBUTION RATE SINCE JANUARY 1, 1976

(CONTINUED)

Effective Date Average Monthly

Credited

Contribution Rate

Monthly Pension Amount Improvement 

to Existing 

Year Month Retirees

Per Year of 

Past Service

Future Service (per 

$100 of Contributions)

2000 January 222.52

2001 January 235.22

2002 January 324.40

2003 January 352.56

2003 July $5.00/$3.00(6)

2004 January 365.78

2005 January 390.04 $0.50/$1.00/$2.00(7)

2006 January 393.84

2007 January 404.09

2008 January 395.33

2008 July $1.00(8)

2009 January 381.89

2010 January 394.93

2011 January 393.62

2012 January 399.53

2013 January 405.25

2014 January 398.95

2015 January 398.43

2016 January 399.29

(1) Additional, one-time only, pension payment was granted.

(2) The lower factor applies to service after January 1, 1992.

(3) The lower factor applies to service after January 1, 1994.

(4) The lower factor applies to service after January 1, 2000.

(5) The lower factor applies to service after January 1, 2005.

(6) The lower factor applies to service after July 1, 2003.

(7) The first factor applies to the first $250 of monthly contributions, the second factor applies to the second $250 of monthly 

contributions, and the last factor applies to monthly contributions in excess of $500. All three factors apply to service after 

January 1, 2005.

(8) This factor applies to service after July 1, 2008.

Page 7.2.66
Section 5: General Background as of January 1, 2016 for the Automotive Industries

Pension Plan 67

OTHER DEVELOPMENTS

Date Event

September 1, 1955: Board of Trustees executed Trust Agreement.

Pension Plan was adopted.

July 12, 1956: Favorable determination letter from the Internal Revenue Service was received.

January 1, 1976: Plan revised to satisfy ERISA.

Funding Standard Account was established.

January 1, 1985: Early Retirement reduction factor was lowered to 1/3 of 1% per month.

January 1, 1986: Plan amended to satisfy REA.

Partial vested-rights adopted for participants with at least 5 years of service.

Early Retirement reduction was dropped for participants retiring at age 62 or later and lowered 

to 1/4 of 1% per month for ages between 55 and 62.

Eligibility requirements for Early Retirement and Disability pensions were lowered to 5 years 

of service.

Pre-retirement death benefits are payable on the basis of vested percentage.

January 1, 1997: Full vesting adopted for participants with at least 5 years of service.

October 1, 1997: Plan amended to provide Unreduced Rule of 85 Retirement.

October 1, 1999: Joint and Survivor factors were increased and now reflect a simplified formula

January 1, 2002: One-time IAP rollover allowed for all non-retired participants. Future rollovers at retirement will 

no longer be allowed.

January 1, 2003: Eligibility requirements for Disability Pension amended to require receipt of a Social Security 

Disability award.

January 15, 2008: Board adopts the Segal interest rate method and the market value of assets for determining 

withdrawal liability.

March 4, 2008: For collective bargaining agreements effective on or after March 4, 2008, the $700 per month 

cap on contribution rates was eliminated.

Page 7.2.67
Section 5: General Background as of January 1, 2016 for the Automotive Industries

Pension Plan 68

OTHER DEVELOPMENTS (CONTINUED)

Date Event

March 28, 2008: Plan certified as being in “Critical” status under PPA ‘06. A Rehabilitation Plan was adopted 

that include supplemental off-benefit contributions beginning January 1, 2013 and the 

following benefit reductions:

1. Early retirement and joint and survivor adjustment factors will be based on the plan’s 

actuarial equivalence basis.

2. The “Rule of 85” unreduced early retirement benefit will no longer be available.

3. The Plan’s disability benefit will no longer be available to new applicants.

4. The 36-payment pre-retirement death benefit is eliminated.

5. Payment forms, except for a life annuity or automatic joint and 50% survivor annuity, will 

no longer be available to new retirees.

March 5, 2009: Board elects under WRERA to freeze 2009 plan status under PPA’06 and to extend 

Rehabilitation Period by three years.

February 1, 2011: The commencement of the Vested Benefit (for inactive vested participants) prior to Normal 

Retirement Age was eliminated.

March 8, 2011: Board adopts resolution to forestall plan insolvency under the Rehabilitation Plan.

Board adopts simplified method under PBGC Technical Update 10-3 for determining 

withdrawal liability.

March 8, 2012: Board elects to reduce annual supplemental off-benefit contribution under Rehabilitation Plan 

Default Schedule from 12.5% to 5.0%.

March 31, 2015: Plan certified as being in “Critical and Declining” under PPA’06 and MPRA.

September 3, 2015: Date of most recent favorable determination letter from the IRS.

5434445v3/01149.001

Page 7.2.68