Central States, Southeast and Southwest Areas Pension Plan 

Item #5

5.0 

Plan actuary’s certification of critical and declining status and the supporting illustrations, including: 

• the year-by-year projections demonstrating projected insolvency during the relevant period, and 

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

flow) during each of those years. 

See section 3.01. 

The information is provided in document number 5.1 (Actuarial Certification of Plan Status as of 

January 1, 2015 under IRC Section 432) and document number 5.2 (Supplemental Information to 

Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432). 

Document number 5.3 (Actuarial Valuation and Review as of January 1, 2014) is the January 1, 2014 

Actuarial Valuation Certificate document referenced in document number 5.1. 

 
Central States, Southeast and Southwest Areas 

Pension Plan

Actuarial Certification of Plan Status as of 

January 1, 2015 under IRC Section 432 

Copyright © 2015 by The Segal Group, Inc. All rights reserved.

5.1.1
333 WEST 34TH STREET, 3RD FLOOR NEW YORK, NY 10001

T 212.251.5000 www.segalco.com

March 31, 2015 

Board of Trustees 

Central States, Southeast and Southwest Areas Pension Plan 

9377 West Higgins Road 

Rosemont, Illinois 60018-4938 

Dear Trustees:

As required by ERISA Section 305 and Internal Revenue Code (IRC) Section 432, we have completed the Plan’s actuarial 

status certification as of January 1, 2015 in accordance with the Multiemployer Pension Reform Act of 2014 (MEPRA). The 

attached exhibits outline the projections performed and the results of the various tests required by the statute. These 

projections have been prepared based on the Actuarial Valuation as of January 1, 2014 and in accordance with generally 

accepted actuarial principles and practices and a current understanding of the law. The actuarial calculations were completed 

under the supervision of Daniel V. Ciner, MAAA, EA, Senior Vice President and Actuary. 

As of January 1, 2015, the Plan is in critical and declining status. This certification also notifies the IRS that the Plan is 

making the scheduled progress in meeting the requirements of its rehabilitation plan, based on the annual standards in the 

rehabilitation plan. This certification is being filed with the Internal Revenue Service, pursuant to ERISA section 305(b)(3) and 

IRC section 432(b)(3). 

This certification reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to 

significant investment losses in 2008. On February 12, 2009, the Plan filed an application with the IRS to change the 

conditions. Since the anticipated condition relief has not yet been obtained, the projections in this certification were completed 

without recognition of the amortization extension. However, even if the conditions are changed so that the Plan meets any new 

revised conditions, the Plan will still be in critical and declining status as of January 1, 2015. 

5.1.2
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. 

We look forward to reviewing this certification with you at your next meeting and to answering any questions you may have. 

Sincerely,

Segal Consulting, a Member of The Segal Group

By: 

Steven M. Rabinowitz, FSA, MAAA, FCA, EA Daniel V. Ciner, MAAA, EA

 Senior Vice President and Actuary Senior Vice President and Actuary 

cc: Mr. Thomas Nyhan 

Mr. Mark Angerame

Gary Ford, Esq.

5.1.3

Redacted by the US Department of Treasury

Redacted by the US Department of 

Treasury
5.1.4

Redacted by the US Department of 

Treasury
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

1 

March 31, 2015 

Illustration Supporting Actuarial Certification of Status (Schedule MB, line 4a)

ACTUARIAL STATUS CERTIFICATION AS OF JANUARY 1, 2015 UNDER IRC SECTION 432 

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

Internal Revenue Code Section 432 for the Central States, Southeast and Southwest Areas Pension Plan as of January 1, 2015 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 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. 

The measurements shown in this actuarial certification 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); differences in statutory interpretation and 

changes in plan provisions or applicable law.

This certification is based on the January 1, 2014 actuarial valuation, dated September 3, 2014. This certification reflects the changes in 

the law made by the Multiemployer Pension Reform Act of 2014 (MEPRA). Additional assumptions required for the projections

(including those under MEPRA), and sources of financial information used are summarized in Exhibit VI. 

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. 

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 Academy of Actuaries to 

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certification is complete and 

accurate. As required by IRC Section 432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan 

sponsor. In my opinion, the projections are based on reasonable actuarial estimates, assumptions and methods that (other than projected 

industry activity) offer my best estimate of anticipated experience under the Plan.

__ 

Daniel V. Ciner, MAAA, EA

Senior Vice President and Actuary

Enrolled Actuary No: 14-05773 

5.1.5

Redacted by the US Department of 

Treasury
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

2 

Certificate Contents

EXHIBIT I Status Determination as of January 1, 2015

EXHIBIT II Summary of Actuarial Valuation Projections

EXHIBIT III Funding Standard Account Projections

EXHIBIT IV Funding Standard Account – Projected Bases Assumed Established After 

January 1, 2014

EXHIBIT V Solvency Projections 

EXHIBIT VI Actuarial Assumptions and Methodology

5.1.6
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

3 

EXHIBIT I

Status Determination as of January 1, 2015

Status Condition 

Test 

Component 

Result

Final 

Result

Critical Status: 

Determination of critical status: 

C1. A funding deficiency is projected in four years (ignoring any amortization extensions)? .............................................................. Yes Yes

C2. (a) A funding deficiency is projected in five years (ignoring any amortization extensions),........................................................ Yes

(b) AND the present value of vested benefits for non-actives is more than present value of vested benefits for actives, ............. Yes

(c) AND the normal cost plus interest on unfunded actuarial accrued liability (unit credit basis) is greater than contributions 

for current year? ...................................................................................................................................................................... Yes Yes

C3. (a) A funding deficiency is projected in five years (ignoring any amortization extensions), ........................................................ Yes

(b) AND the funded percentage is less than 65%?........................................................................................................................ Yes Yes

C4. (a) The funded percentage is less than 65%, ................................................................................................................................ Yes

(b) AND the present value of assets plus contributions is less than the present value of benefit payments and administrative 

expenses over seven years? ..................................................................................................................................................... No No

C5. The present value of assets plus contributions is less than the present value of benefit payments and administrative expenses 

over five years? ............................................................................................................................................................................... No No

Regular emergence test: 

C6. (a) Was in critical status for the immediately preceding plan year, .............................................................................................. Yes

(b) AND EITHER a funding deficiency is projected for the plan year or any of the next nine plan years, without regard to the 

use of the shortfall method but taking into account any extension of amortization periods under IRC section 431(d)(2) or 

IRC section 412(e) as in effect prior to PPA’06,..................................................................................................................... Yes

(c) OR is projected to become insolvent for the current year or any of the 30 succeeding plan years? ........................................ Yes Yes

In Critical Status? (If any of (C1) through (C6) is Yes then Yes) ..................................................................................................... Yes

5.1.7
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

4 

Determination of critical and declining status:

C7. (a) Is in critical status because one of tests C1-C5 is YES,........................................................................................................... Yes

(b) AND insolvency is projected within 15 years using assumptions described in Exhibit VI.B? ................................................ Yes Yes

C8. (a) Is in critical status because one of tests C1-C5 is YES,........................................................................................................... Yes

(b) AND the ratio of inactives to actives is at least 2 to 1,............................................................................................................ Yes

(c) AND insolvency is projected within 20 years using assumptions described in Exhibit VI.B? ............................................... Yes Yes

C9. (a) Is in critical status because one of tests C1-C5 is YES,........................................................................................................... Yes

(b) AND the funded percentage is less than 80%, ....................................................................................................................... Yes

(c) AND insolvency is projected within 20 years using assumptions described in Exhibit VI.B? ................................................ Yes Yes

In Critical and Declining Status? (If any of (C7) through (C9) is Yes, then Yes)............................................................................ Yes

Endangered Status: 

E1. (a) Is not in critical status, ............................................................................................................................................................ N/A

(b) AND the funded percentage is less than 80%? ....................................................................................................................... N/A N/A

E2. (a) Is not in critical status,............................................................................................................................................................. N/A

(b) AND a funding deficiency is projected in seven years? ......................................................................................................... N/A N/A

In Endangered Status? (Yes when either (E1) or (E2) is Yes)........................................................................................................... No

In Seriously Endangered Status? (Yes when BOTH (E1) and (E2) are Yes) ................................................................................... No

Neither Critical Status Nor Endangered Status:

Neither Critical nor Endangered Status?............................................................................................................................................ No

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its rehabilitation plan, 

based on the annual standards of the rehabilitation plan. 

The annual standard for meeting the requirements of the rehabilitation plan is that actuarial projections updated for each year show, based 

on reasonable assumptions, that under the rehabilitation plan and its schedules (as amended and updated from time to time) the Fund will 

forestall its possible insolvency prior to 2023. The actuarial projection shown in Exhibit V indicates that the Fund is projected to remain 

solvent until 2026. The actuarial assumptions and methods used for this projection are as described in Exhibit VI.B.

5.1.8
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

5 

EXHIBIT II 

Summary of Actuarial Valuation Projections

The actuarial factors as of January 1, 2015 (based on projections from the January 1, 2014 valuation certificate):

I. Financial Information

1. Market value of assets $17,863,105,558

2. Actuarial value of assets 16,781,283,666

3. Reasonably anticipated contributions 

a. Upcoming year 688,851,179

b. Present value for the next five years 2,825,563,790

c. Present value for the next seven years 3,534,636,719

4. Projected benefit payments 2,893,742,525

5. Projected administrative expenses 42,799,735

II. Liabilities

1. Ratio of inactive participants to active participants 5.3

2. Present value of vested benefits for active participants 4,360,084,995

3. Present value of vested benefits for non-active participants 30,566,558,680

4. Total unit credit accrued liability 35,165,770,917

5. Present value of payments Benefit Payments Administrative Expenses Total

a. Next five years $12,234,876,386 $193,193,111 $12,428,069,497

b. Next seven years 16,088,222,850 257,339,938 16,345,562,788

6. Unit credit normal cost plus expenses 273,750,718

III. Funded Percentage (I.2)/(II.4) 47.7% 

IV. Funding Standard Account

1. Credit balance/(funding deficiency) as of the end of prior year -$6,623,445,113

2. Years to projected funding deficiency 0 

V. Years to Projected Insolvency 11

5.1.9
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

6 

EXHIBIT III

Funding Standard Account Projections 

The table below presents the Funding Standard Account Projections for the Plan Years beginning January 1, 2014 through 2021. 

Year Beginning January 1,

2014 2015 2016 2017 2018 2019 2020 2021

1. Credit balance/(funding 

deficiency) at beginning of 

year -$4,983,597,170 -$6,623,445,113 -$8,507,992,120 -$10,432,642,984 -$12,366,372,819 -$14,062,196,207 -$15,874,278,958 -$17,752,140,510

2. Interest on (1) -373,769,788 -496,758,383 -638,099,409 -782,448,224 -927,477,961 -1,054,664,716 -1,190,570,922 -1,331,410,538

3. Normal cost 246,731,360 230,950,983 229,280,609 223,327,825 213,512,137 199,607,060 188,065,335 182,698,870

4. Administrative expenses

adjusted to beginning of year 35,586,296 42,799,735 43,655,730 44,528,845 45,419,422 46,327,810 47,254,366 48,199,453

5. Net amortization charges 1,684,241,384 1,682,036,930 1,577,310,062 1,442,184,890 1,077,317,194 1,125,799,389 940,336,833 870,632,065

6. Interest on (3), (4) and (5) 147,491,928 146,684,074 138,768,480 128,253,117 100,218,656 102,880,069 88,174,239 82,614,780 

7. Expected contributions 817,323,193 688,851,179 677,073,182 662,181,268 643,972,995 693,799,129 555,701,343 536,487,884

8. Interest on (7) 30,649,620 25,831,919 25,390,244 24,831,798 24,148,987 23,397,164 20,838,800 20,118,296

9. Credit balance/(funding 

deficiency) at end of year: 

(1) + (2) – (3) – (4) – (5) – 

(6) + (7) + (8) -$6,623,445,113 -$8,507,992,120 -$10,432,642,984 -$12,366,372,819 -$14,062,196,207 -$15,874,278,958 -$17,752,140,510 -$19,711,090,036

 

The above reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to significant 

investment losses in 2008. On February 12, 2009, the Plan filed an application with the IRS to change the conditions. Since the 

anticipated condition relief has not yet been obtained, the projections in this certification were completed without recognition of the 

amortization extension. 

5.1.10
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

7 

EXHIBIT IV 

Funding Standard Account – Projected Bases Assumed Established After January 1, 2014

Schedule of Funding Standard Account Bases

Type of Base Date Established

Base

Established

Amortization

Period

Amortization

Payment

Actuarial Gain 01/01/2015 -$594,482,832 15 -$62,648,667

Actuarial Gain 01/01/2016 -322,668,524 15 -34,003,931

Actuarial Gain 01/01/2017 -596,383,450 15 -62,848,961

Actuarial Gain 01/01/2018 -362,225,298 15 -38,172,561

Actuarial Loss 01/01/2019 34,698,162 15 3,656,613 0 0 0

5.1.11
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

8 

EXHIBIT V

Solvency Projection

The table below presents the projected Market Value of Assets for the Plan Years beginning January 1, 2014 through 2026. 

Year Beginning January 1,

2014 2015 2016 2017 2018 2019 2020 2021

1. Market Value at beginning of 

year $18,740,758,554 $17,863,105,558 $16,881,126,867 $15,812,289,060 $14,658,047,472 $13,376,824,164 $12,035,769,499 $10,444,971,848

2. Contributions 582,358,731 574,805,811 571,165,233 563,502,681 554,280,189 612,705,066 522,132,459 510,127,262

3. Withdrawal liability payments 232,836,446 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 80,000,000 80,000,000

4. Benefit payments 2,822,248,295 2,888,100,132 2,896,302,772 2,892,783,934 2,921,588,354 2,941,593,387 2,956,355,431 2,952,535,449

5. Administrative expenses 38,077,564 44,500,000 45,390,000 46,297,800 47,223,756 48,168,231 49,131,596 50,114,228

6. Interest earnings 1,167,477,686 1,255,815,630 1,181,689,732 1,101,337,465 1,013,308,613 916,001,887 812,556,917 692,903,298

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $17,863,105,558 $16,881,126,867 $15,812,289,060 $14,658,047,472 $13,376,824,164 $12,035,769,499 $10,444,971,848 $8,725,352,731

2022 2023 2024 2025 2026

1. Market Value at beginning of 

year $8,725,352,731 $6,864,309,999 $4,835,063,809 $2,625,782,700 $253,043,389

2. Contributions 498,768,852 488,061,847 477,667,580 467,480,904 38,958,222 

3. Withdrawal liability payments 80,000,000 87,000,000 94,000,000 101,000,000 8,750,000 

4. Benefit payments 2,952,176,857 2,975,038,127 2,997,436,221 2,991,028,918 296,903,273 

5. Administrative expenses 51,116,512 52,138,842 53,181,619 54,245,252 4,610,846 

6. Interest earnings 563,481,785 422,868,932 269,669,151 104,053,955 762,508 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $6,864,309,999 $4,835,063,809 $2,625,782,700 $253,043,389 $0 

 

The actuarial assumptions and methods used for the projection above are as described in Exhibit VI.B. All cash flow components (items 2-

5 above) are assumed to occur in the middle of each year, except for the remaining balance of the YRCW Contribution Deferral 

Agreement, which is assumed to be paid December 31, 2019. 

5.1.12
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

9 

EXHIBIT VI 

Actuarial Assumptions and Methodology

The actuarial assumptions and plan of benefits are as used in the January 1, 2014 actuarial valuation certificate, dated September 3, 2014, 

except as specifically described below. We also assumed that experience would emerge as projected, except as described below. The 

calculations are based on a current understanding of the requirements of ERISA Section 305 and IRC Section 432. 

A. Actuarial Assumptions and Plan Provisions, Except as Modified by Section B

Contribution Rates: The changes to contribution rates on and after January 1, 2014 were based on formal 

commitments by the collective bargaining parties settled before January 1, 2015 based on 

preliminary data as of December 31, 2014. 

Asset Information: The financial information as of December 31, 2014 was based on an unaudited financial

statement provided by the Fund’s Financial Accounting Division Manager. Employer 

contributions were adjusted for changes in YRCW Contribution Deferral Agreement balances, 

based on information received from the plan sponsor. 

For projections after that date, the assumed administrative expenses were projected to match the 

projected amount in the unaudited financial statement for 2015 and were increased by 2% per 

year after 2015 and the benefit payments were projected based on the January 1, 2014 actuarial 

valuation. The projected net investment return was assumed to be 7.5% of the average market 

value of assets beginning with the 2015 Plan Year. Any resulting investment gains or losses due 

to the operation of the asset valuation method are amortized over 15 years in the Funding 

Standard Account. 

Projected Industry Activity: As required by Internal Revenue Code Section 432, assumptions with respect to projected 

industry activity are based on information provided by the plan sponsor. Based on this 

information, starting with the number of participants included in the January 1, 2014 actuarial 

valuation, the number of active participants is assumed to decline by 4% during the 2014 Plan 

Year followed by declines of 4% per year for 10 years and 2% per year thereafter. The number of 

employment units (weeks, days, and hours worked) are assumed to be in accordance with the 

assumptions used in the January 1, 2014 valuation. The decline is increased by 16% per year for 

the first 5 years following the year the Default Schedule applied to a group and 6% per year for 

5.1.13
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

10

the next 5 years for participants under the Default Schedule. On average, 2/3 of active 

participants on the Default Schedule are assumed to have become subject to that schedule as of 

December 31, 2008, and 1/3 as of December 31, 2011. 

In addition to projections of industry activity directly linked to the level of ongoing employment, 

the Trustees also anticipate that 25% of the reduction in projected employer contributions due to 

the decline in the number of active participants will continue in the form of withdrawal liability 

payments for 20 years, with a minimum of $120 million per year for five years and $80 million 

per year thereafter.

Based on information from the plan sponsor, it is assumed that, as a result of an agreement with 

YRCW (Contribution Deferral Agreement), the Fund will receive $8.0 million in annual property 

sale and interest income during the Calendar years 2015-2019 and the December 31, 2014 

balance of $81,488,707 will grow with 7.5% per year interest, paid monthly, reduced by the 

property sale income, and will be paid on December 31, 2019. 

Future Normal Costs: Based on the assumed industry activity, normal cost and liabilities were determined based on an 

open group forecast with the number of active participants assumed to change as described above 

and the new entrants to have a demographic mix consistent with recent entrants.

B. Assumptions for Solvency Projection and Scheduled Progress

Assumptions for this purpose are the same as shown in Section A with the following exceptions: 

 Unless noted otherwise in the data used for the 2014 actuarial valuation, Classes 15 and above (other than YRCW) are assumed to 

remain under the Primary Schedule, and make all future required contribution rate increases, and Classes 14 and below (other than 

YRCW) are assumed to have elected the Default Schedule, and make all future required contribution rate increases. YRCW is 

assumed to remain on the Distressed Employer Schedule with no contribution rate increases. 

 15% of the attrition for Classes 15 and above is attributable to voluntary employer withdrawal (Rehabilitation Plan Withdrawals).

C. Amortization Extension 

This certification reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to significant 

investment losses in 2008. On February 12, 2009, the Plan filed an application with the IRS to change the conditions. Since the anticipated 

condition relief has not yet been obtained, the projections in this certification were completed without recognition of the amortization 

extension. However, even if the conditions are changed so that the Plan meets any new revised conditions, the Plan will still be in critical 

and declining status as of January 1, 2015. 

5.1.14
Actuarial Status Certification as of January 1, 2015 under IRC Section 432 for the Central States, Southeast and Southwest Areas 

Pension Plan

EIN 36-6044243/ PN 001 

11

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. 

5499852v3/10346.001

5.1.15
Central States, Southeast and 

Southwest Areas Pension Plan Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432 . Copyright © 2015 by The Segal Group, Inc. All rights reserved. 

5.2.1
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432 

Central States, Southeast and Southwest Areas Pension Plan 

EIN 

September 18, 2015 

APPLICATION UNDER ERISA SECTION 305(E)(9) AND IRC SECTION 432(E)(9) – SUPPLE

INFORMATION TO ACTUARIAL CERTIFICATION OF PLAN STATUS AS OF JANUAR

As requested by the Trustees of the Central States, Southeast and Southwest Areas Pension Plan and required by ERISA 

and Internal Revenue Code (IRC) Section 432(e)(9) (taking into account temporary regulation §1.432(e)(9)-1T, propos§1.432(e)(9)-1 and Revenue Procedure 2015-34), Segal Consulting, a Member of The Segal Group, Inc. (“Segal”) has 

supplemental information required as part of the application for proposed benefit suspensions permitted under ERISA S

IRC Section 432 because of the Plan’s critical and declining status. This information is based on, and is in addition to, 

Certification of Plan Status as of January 1, 2015 under IRC Section 432, dated March 31, 2015. The purpose is to prorequired under Revenue Procedure 2015-34, Section 3.01 not explicitly shown in that certification. This supplement may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees provided to other parties in its entirety. The measurements shown are not applicable for other purposes. Future actuarimay differ significantly from the current measurements presented in this supplement due to such factors as the followindiffering from that anticipated by the economic or demographic assumptions; changes in economic or demographic assdifferences in statutory interpretation; differences in methodology, changes in plan provisions and changes in applicabllegal requirements for this information, it does not include an analysis of such future measurements. Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpreinformation shown in this supplement are based reflect Segal’s understanding as an actuarial firm. This supplement 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 Academrender the actuarial opinion herein. To the best of my knowledge, the information supplied in this supplement is complrequired by IRC Section 432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan 

opinion, the projections are based on reasonable actuarial estimates, assumptions and methods that (other than projecteoffer my best estimate of anticipated experience under the Plan

Senior Vice President and Actuary Enrolled Actuary No. 14-05773 

5.2.2 Redacted by the US Department of Treasury
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432 

Central States, Southeast and Southwest Areas Pension Plan 

EIN 

EXHIBIT I Solvency Projection 

The projected Market Value of Assets and Available Resources for the Plan Years beginning January 1, 2014 through 2

Year Beginning January 1 

2014 2015 2016 2017 

1. Market Value at beginning of year $18,740,758,554 $17,863,105,558 $16,881,126,867 $15,812,289,060 2. Contributions 582,358,731 574,805,811 571,165,233 563,502,681 

3. Withdrawal liability payments 232,836,446 120,000,000 120,000,000 120,000,000 

4. Benefit payments 2,822,248,295 2,888,100,132 2,896,302,772 2,892,783,934 

5. Administrative expenses 38,077,564 44,500,000 45,390,000 46,297,800 

6. Investment earnings 1,167,477,686 1,255,815,630 1,181,689,732 1,101,337,465 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $17,863,105,558 $16,881,126,867 $15,812,289,060 $14,658,047,472 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $20,685,353,853 $19,769,226,999 $18,708,591,832 $17,550,831,406 

2019 2020 2021 2022 

1. Market Value at beginning of year $13,376,824,164 $12,035,769,499 $10,444,971,848 $8,725,352,731 2. Contributions 612,705,066 522,132,459 510,127,262 498,768,852 

3. Withdrawal liability payments 120,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 2,941,593,387 2,956,355,431 2,952,535,449 2,952,176,857 5. Administrative expenses 48,168,231 49,131,596 50,114,228 51,116,512 

6. Investment earnings 916,001,887 812,556,917 692,903,298 563,481,785 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $12,035,769,499 $10,444,971,848 $8,725,352,731 $6,864,309,999 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $14,977,362,886 $13,401,327,280 $11,677,888,181 $9,816,486,857 

5.2.3
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432 

Central States, Southeast and Southwest Areas Pension Plan 

EIN 

EXHIBIT I (continued) Solvency Projection 

Year Beginning January 1 

2024 2025 2026 

1. Market Value at beginning of year $4,835,063,809 $2,625,782,700 $253,043,389 

2. Contributions 477,667,580 467,480,904 467,498,664 3. Withdrawal liability payments 94,000,000 101,000,000 105,000,000 

4. Benefit payments 2,997,436,221 2,991,028,918 2,980,441,673 5. Administrative expenses 53,181,619 54,245,252 55,330,157 

6. Investment earnings 269,669,151 104,053,955 -- 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $2,625,782,700 $253,043,389 $0 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $5,623,218,921 $3,244,072,307 $770,211,896 

5.2.4
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432 

Central States, Southeast and Southwest Areas Pension Plan 

EIN 

EXHIBIT II Projected Total Contribution Base Units and Average Contribution Rates 

Year Beginning 

January 1* 

Total Contribution Base Units 

(Equivalent Weeks) 

Average Contributio

(Weekly) 

 2015 3,176,488 $178  2016 3,035,253 186  2017 2,901,553 191  2018 2,783,200 196  2019 2,669,718 200  2020 2,560,904 204  2021 2,456,565 208  2022 2,356,513 212  2023 2,262,252 216  2024 2,171,762 220  2025 2,084,892 224  2026 2,043,194 229 Note: Projections of contributions in Exhibit I were based on contribution rates for individuals contained in the participant data and app

assumptions described in the Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432. The above amoestimated total base units and estimated average rates that aggregate to the total projected contributions each year (excluding assadditional contributions as a result of an agreement with YRCW). 

* Contributions for the Plan year beginning January 1, 2014 were based on financial information provided by the Fund Office. 

5.2.5
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432 

Central States, Southeast and Southwest Areas Pension Plan 

EIN 

The actuarial assumptions, methodology, and plan provisions are as used for the solvency projection in the Actuarial C

Status as of January 1, 2015 under IRC Section 432, dated March 31, 2015. The calculations are based on a current un

requirements of ERISA Section 305, IRC Section 432, temporary regulation §1.432(e)(9)-1T, proposed regulation §1.4Revenue Procedure 2015-34. 

Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutorwhich these calculations are based reflects Segal’s understanding as an actuarial firm. Due to the complexity of the statsignificance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when making regarding compliance with ERISA and the Internal Revenue Code. Actuarial calculations were completed under the supervision of Daniel V. Ciner, MAAA, Enrolled Actuary. 5536888v3/10346.001

5.2.6
Central States, Southeast and 

Southwest Areas Pension Plan Actuarial Valuation and Review as of January 1, 2014 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 © 2014 by The Segal Group, Inc. All rights reserved. 

5.3.1
333 West 34th Street New York, NY 10001

T 212.251.5000 www.segalco.com

September 3, 2014 Board of Trustees Central States, Southeast and Southwest Areas Pension Plan 9377 West Higgins Road Rosemont, Illinois 60018-4938 Dear Trustees: We are pleased to submit the Actuarial Valuation and Review as of January 1, 2014. It establishes for the current year and analyzes the preceding year's experience. It also summarizes the actuarial actuarial information that is required 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. 

acknowledged. The actuarial calculations were completed under the supervision of Daniel V. Ciner

We look forward to reviewing this report with you at your next meeting and to answering any questSincerely, Segal Consulting, a Member of The Segal Group By: 

 Steven M. Rabinowitz, FSA, MAAA, EA, FCA  Senior Vice President and Actuary cc: Mr. Thomas Nyhan  Mr. Mark Angerame  Gary Ford, Esq.

5.3.2 Redacted by the US Department of Treasury
SECTION 1 SECTION 2 SECTION 3 SECT

ACTUARIAL VALUATION SUMMARY 

ACTUARIAL VALUATION RESULTS 

SUPPLEMENTARY INFORMATION 

CERTACTU

Introduction .................................. 4Important Information About 

Actuarial Valuations ............... 5

A. Changes Since Last 

Valuation ................................. 7

B. Cash Flow ............................... 8C. 2014 Actuarial Status (Zone) 

Certification ............................ 8

D. Funded Percentage and 

Funding Standard Account ..... 9

Summary of Key Valuation 

Results ................................... 10

Comparison of Funded 

Percentages ........................... 11

A. Participant Data ..................... 12B. Financial Information............ 17C. Actuarial Experience ............. 20D. Summary of Contribution 

Requirements ........................ 25

E. Pension Protection Act of 

2006 (PPA’06) ...................... 27

F. Cash Flow ............................. 28G. Disclosure Requirements ...... 29H. Withdrawal Liability ............. 31

EXHIBIT A

Table of Plan Coverage ......... 32

EXHIBIT B

Participant Population: 2004 – 2013 ....................................... 33

EXHIBIT C

Summary Statement of Income and Expenses on an Actuarial Basis ...................................... 34

EXHIBIT D

Financial Information Table .. 35

EXHIBIT E

Annual Funding Notice ......... 36

EXHIBIT F

Minimum Required Contribution ........................... 37

EXHIBIT G

Maximum Deductible Contribution ........................... 40

EXHIBIT H

Pension Protection Act of 2006 (PPA ’06) ............................... 42

EXHIBIT I

Section 415 Limitations ......... 44

EXHI

SumValu

EXHI

Inforof Ja

EXHI

ScheData 

EXHI

Fund

EXHI

Curr

EXHI

ActuAccu

EXHI

StateAssu

EXHI

Sum

5.3.3
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

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.  Cash Flow 

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 will need assistance from the Pension Benefit Guaranty Corporation (PBGC). . 

 PPA’06 

The Pension Protection Act of 2006 (PPA’06) calls on plan sponsors to actively monitor the projected Funding Standard Account 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 “zone” rules created by PPA’06 are scheduled to expire (“sunset”) for plan years beginning after December 31, 2014. However, if a pension plan is operating under a Funding Improvement Plan or a Rehabilitation Plan for the last plan year beginning in 2014, that Funding Improvement Plan or Rehabilitation Plan will remain in effect. 

We will keep you informed legislative changes as they 

 Funding Standard Accoun

The ERISA Funding Standthe normal cost and amortizunfunded actuarial accrued each valuation date. The accontributions made in excecontributions is called the ccontributions fall short of thcontribution on a cumulativdeficiency has occurred. 

 Withdrawal Liability 

ERISA provides for assessmto employers who withdraw based on unfunded vested b

The current year’s actuarial val

5.3.4
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

IMPORTANT INFORMATION ABOUT ACTUARIAL VALUATIONS An actuarial valuation is a budgeting tool with respect to the financing of future uncertain obligations of a pennever forecast the precise future contribution requirements or the precise future stream of benefit payments. Iforecast – the actual cost of the plan will be determined by the benefits and expenses paid, not by the actuariaIn order to prepare a valuation, Segal Consulting (“Segal”) relies on a number of input items. These include:  Plan of benefits Plan provisions define the rules that will be used to determine benefit payments, and tho

of them, may change over time. Even where they appear precise, outside factors may change how they o

may require the award of a Social Security disability pension as a condition for receiving a disability penchanges in the Social Security law or administration may change the plan’s costs without any change in timportant for the Trustees to keep Segal informed with respect to plan provisions and administrative prosummary included in our report to confirm that Segal has correctly interpreted the plan of benefits. 

 Participant data An actuarial valuation for a plan is based on data provided to the actuary by the plan. S

for completeness or accuracy, other than reviewing it for obvious inconsistencies compared to prior data appears unreasonable. For most plans, it is not possible or desirable to take a snapshot of the actual work 

any event, the actuarial valuation is based on a future work force that is presumed to be the same as the a

the valuation, but in fact, employment varies from year to year, sometimes quite considerably. It is not nfor an actuarial valuation: the valuation is an estimated forecast, not a prediction. The uncertainties in oth

perfect data does not produce a “perfect” result. Notwithstanding the above, it is important for Segal to r

and to be informed about any known incomplete or inaccurate data. 

 Assets Part of the cost of a plan will be paid from existing assets – the balance will need to come from fu

investment income. The valuation is based on the asset values as of the valuation date, typically reported include assets, such as private equity holdings, real estate, or hedge funds, that are not subject to valuatioin the marketplace. A snapshot as of a single date may not be an appropriate value for determining a singrequirement, especially in volatile markets. Plan sponsors often use an “actuarial value of assets” that difgradually reflect year-to-year changes in the market value of assets in determining the contribution requi

 Actuarial assumptions In preparing an actuarial valuation, Segal starts by developing a forecast of the b

plan participants for the rest of their lives and the lives of their beneficiaries. This requires actuarial assu

death, disability, withdrawal, and retirement of each participant for each year, as well as forecasts of the 

those events. The forecasted benefits are then discounted to a present value, typically based on an estimabe achieved on the plan’s assets. All of these factors are uncertain and unknowable. Thus, there will be a assumptions, and the results may vary materially based on which assumptions the actuary selects within right answer (except with hindsight). It is important for any user of an actuarial valuation to understand a

actuarial model may use approximations and estimates that will have an immaterial impact on our results the actual cost of the plan. In addition, the actuarial assumptions may change over time, and while this cthe reported results, it does not mean that the previous assumptions or results were unreasonable or wron

5.3.5
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

Given the above, the user of Segal’s actuarial valuation (or other actuarial calculations) needs to keep the foll The actuarial valuation is prepared for use by the Trustees. It includes information for compliance with f

for the plan’s auditor. Segal is not responsible for the use or misuse of its report, particularly by any othe

 An actuarial snapshot is a measurement at a specific date – it is not a prediction of a plan’s future financi

 Critical events for a plan include, but are not limited to, decisions about changes in benefits and contribu

decisions needs to consider many factors such as the risk of changes in employment levels and investmenvaluation results. 

 ERISA requires a plan’s enrolled actuary to provide a statement for inclusion in the plan’s annual report 

that the actuary has not taken into account, if, to the best of the actuary’s knowledge, such an event or tre

increase in plan costs or required contribution rates. If the Trustees are currently aware of any event that 

valuation and that may materially increase the cost of the Plan, they must advise Segal, so that we can ev

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. Segal’s valuation is based on our und

guidance in these areas and of the plan’s provisions, but they may be subject to alternative interpretationtheir other advisors for expertise in these areas. 

 While Segal maintains extensive quality assurance procedures, an actuarial valuation involves complex c

numerous inputs. In the event that an inaccuracy is discovered after presentation of Segal’s valuation, Seor 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. Truste

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 as actuaries and consultants with respect to the Plan. 

5.3.6
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

The actuarial valuation report as of January 1, 2014 is based on financial and demographic informa

subsequent to that date are not reflected and could affect future actuarial costs of the Plan. We are p

Trustees to analyze the effects of any subsequent developments. A. CHANGES SINCE LAST VALUATION 

1. The number of active participants declined by 4.7% 

during 2013. As of this valuation, the ratio of nonactive to active participants is 5.15 to 1. 

2. The rate of return on the market value of plan assets 

was 18.6% for the 2013 plan year. The rate of return on the actuarial value of assets was 15.1% as a result of the asset valuation method. These rates are estimates, net of investment fees, based on a mid-year average cash flow assumption which is consistent with the calculation used for the Schedule MB. The current assumed long-term rate of return on investments is 7.50%. Given historically low interest rates, we will continue to monitor the Plan’s investment returns. 

3. The following assumption was changed effective 

January 1, 2014:  The annual administrative expense assumption was 

changed from $35,400,000 (payable monthly) to $37,000,000 payable monthly). 

4. The following plan provisio

reflected in this valuation:  During the plan year en

1,013 active participantparticipants were first rthe Default Schedule, DSchedule, or were subjereductions as a result oWithdrawal. As participthese schedules, their ctreated as a plan change

5. On June 26, 2013, the U.S. 

States v. Windsor, decided gender marriages were no ltreated as married under fedeffective prospectively from Windsor decision and subseService guidance, defined btreat all legally married spoof applicable federal tax law for example, Qualified Joinregardless of the state in whCounsel should be consultePlan’s language or operationecessary or desirable. 

5.3.7
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

B. CASH FLOW The Plan is projected to be unable to pay benefits within 13 years, based on a projection shown in the 2014 actuarial status (zone) certification for purposes of reviewing the scheduled progress in meeting the requirements of the Rehabilitation Plan. This cash flow crisis requires continued monitoring by the Trustees. The actions already taken to address this issue include the adoption of and updates to the Rehabilitation Plan. 

C. 2014 ACTUARIAL STATU

CERTIFICATION 

1. The 2014 certification, prev

the liabilities calculated in tprojected to December 31, information as of Decembeclassified as critical (Red Zfunding deficiency as of Deprojected deficiencies in all (disregarding the Section 4extension). 

2. The 2014 certification refle

2009 to meet the Section 4conditions due to significanOn February 12, 2009, the with the IRS to change the condition relief has not yet projections in the certificatirecognition of the amortizaeven if the conditions are cmeets any new revised conbe in critical status (Red Zo

3. The Plan was certified to be 

progress in meeting the reqRehabilitation Plan, based othe Fund will forestall poss2023. 

5.3.8
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

D. FUNDED PERCENTAGE AND FUNDING 

STANDARD ACCOUNT 

1. Based on this January 1, 2014 actuarial valuation, the 

funded percentage as of that date is 48.4%. This will be reported on the 2014 Annual Funding Notice to be provided within 120 days after the end of this plan year. 

2. The funding deficiency in the Funding Standard 

Account as of December 31, 2013 was $4,983,597,170 (disregarding the 412(e) amortization extension), an increase of $1,783,709,520 from the prior year funding deficiency. PPA ’06 requires plan sponsors to monitor the projected credit balance. 

3. The imbalance between the benefit levels in the Plan 

and the resources available to pay for them must be addressed. The funding deficiency and 48.4% funded percentage require continued monitoring by the Trustees. The actions already taken to address this issue include the adoption of and updates to the Rehabilitation Plan. 

5.3.9
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

SUMMARY OF KEY VALUATION RESULTS 

 2014 

Certified Zone Status Critical Demographic Data: 

Number of active participants 65,324 

Number of inactive participants with vested rights 129,700 

Number of retired participants and beneficiaries 206,622 

Assets: 

Market value of assets (MVA) $18,740,758,554 Actuarial value of assets (AVA) 17,028,061,298 AVA as a percent of MVA 90.9% 

Cash Flow: 

Projected employer contributions (excluding withdrawal liability payments) 

$572,284,552 

Actual employer contributions (excluding withdrawal liability payments) -- Withdrawal liability payments received -- 

Statutory Funding Information: 

ERISA minimum required contribution $7,471,417,926 Maximum deductible contribution 59,325,966,067 Annual Funding Notice percentage 48.4% Funding Standard Account deficiency at the end of prior year $4,983,597,170 

Actuarial Funded Status – IRC 412(e) Letter Basis: 

Funded ratio 62.8% Minimum required funded ratio per 412(e) condition 61.0% 

5.3.10
SECTION 1: Actuarial Valuation Summary as of January 1, 2014 for the Central States, So

Areas Pension Plan 

COMPARISON OF FUNDED PERCENTAGES 

2014 

Fu

Liability Assets 201

1. Present Value of Future Benefits $36,938,114,323 $17,028,061,298 4

2. PPA’06 Liability and Annual Funding Notice 35,189,411,452 17,028,061,298 4

3. Current Liability 53,728,073,336 18,740,758,554 34. 412(e) Funded Ratio 29,822,856,638 18,740,758,554 6

Notes: 

1. Includes the value of benefits earned through the valuation date (accrued benefits) plus the value of 

in the future for current participants. Used to develop the actuarial accrued liability, based on long-te

assumption of 7.50% and the actuarial value of assets. The funded percentage using market value of 47.9% for 2013. 

2. Measures present value of accrued benefits using the current participant census and financial data. A

Protection Act of 2006, based on long-term funding investment return assumption of 7.50% and the 

3. Used to determine maximum tax-deductible contributions and is reported on Schedule MB to Form 

value of accrued benefits, using a prescribed mortality table and investment return assumption of 3.62013, and the market value of assets. The funded percentage is also shown on the Schedule MB if it 

4. Used to determine compliance with the conditions of the 412(e) amortization extension. Based on th

using the actuarial assumptions in effect on January 1, 2004, including the former investment return market value of assets. 

Disclosure: These measurements are not necessarily appropriate for assessing the sufficiency of Plan as

cost of settling the Plan’s benefit obligation or the need for or the amount of future contribu

5.3.11
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

0

50,000

100,000150,000200,000250,000

ActiveInactive VestedIn Pay Status 0.00

1.002.003.004.005.006.00

The Actuarial Valuation and Review considers the number and demographic characteristics of covered participants, including 65,324 active participants, 129,700 inactive vested participants, and 206,622 pensioners and beneficiaries as of December 31, 2013. This section presents a summary of significant statistical data on these participant groups. The significant shift in participants from active to inactive vested status in 2007 is primarily due to the withdrawal of UPS.

More detailed information for this preceding years can be found in S

A. PARTICIPANT DATA

A historical perspective of how the participant population has changed over the past several years can be seen in these charts. 

CHART 1 

Participant Population as of December 31, 2004 – 2013 

CHART 2 Ratio of Non-Actives to Actives December 31, 2004 – 2013 

5.3.12
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

0

2,0004,0006,0008,000

10,00012,00014,000

0

2,0004,0006,0008,000

10,00012,00014,00016,000

Active Participants Pension plan costs are affected by the age and pension credits of active participants. In this year’s valuation, there were 65,324 active participants with an average age of 48.4 and average pension credits of 14.0. This compares to 48.3 and 13.9, respectively, for the 68,544 active participants in the prior year. Among active participants, there were 514 with unknown age. The Fund Office adjusted for missing birth dates by assuming that they were 30 years prior to the participation dates.

Inactive Vested Participants Participants who leave the coverasatisfying the requirements for a dimmediate pension but elect to deconsidered “inactive vesteds” and plan cost. In this year’s valuation, inactive vesteds with an average ato 130,926 in the prior valuation wNo cost is included for other inactthough some may return to active incurring a permanent break in se

These charts show a distribution of active participants by age and by pension credits. 

CHART 3 

Distribution of Active Participants by Age as of December 31, 2013 

CHART 4 Distribution of Active Participanof December 31, 2013 

5.3.13
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Pensioners and Beneficiaries During the fiscal year ended December 31, 2013, there were 6,029 pensions awarded, as detailed in this chart. The average monthly pension awarded, after adjustment for optional forms of payment, was $1,140. The chart below presents both the number and average monthly amount of pensions awarded in each of the years shown, by type and in total. 

CHART 5 Pension Awards: 2004 – 2013 

 Total Regular 

Year Ended 

December 31 Number 

Average 

Amount Number 

Average 

Amount Nu

2004 9,316 - - 9,068 - - 2005 7,514 - - 7,289 - - 2006 6,203 $1,404 6,148 $1,410 2007 7,605 1,278 7,417 1,296 2008 7,269 1,216 7,123 1,230 2009 8,221 1,387 8,072 1,401 2010 8,253 1,207 8,026 1,224 2011 6,747 1,153 6,520 1,172 2012 5,540 1,142 5,407 1,156 2013 6,029 1,140 5,877 1,156 

5.3.14
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

0

5,000

10,00015,00020,00025,00030,00035,00040,00045,000

OtherTwenty-Year ServiceContributoryVestedDisabilityEarlyContribution-Based

0

5,000

10,00015,00020,00025,00030,00035,000

As of this year’s valuation date, 172,834 pensioners and 32,980 beneficiaries were receiving total monthly benefits of $234,797,979. For comparison, in the previous year, there were 175,031 pensioners and 32,636 beneficiaries receiving monthly benefits of $234,911,902. There were 808 suspended pensioners and beneficiaries in this valuation compared with 576 in the prior year. 

These charts show the distribution of the current pensioners based on their age and monthly amount, by type of pension. 

CHART 6 

Distribution of Pensioners by Type and by Age as of December 31, 2013 

CHART 7 Distribution of Pensioners by TyAmount as of December 31, 201

5.3.15
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

In Chart 8, additions to the pension rolls include new pensions awarded. Terminations include pensioners who died plus net suspensions during the prior plan year. The change in average age and average amounts of pensioners in payment status is shown as the Fund matures over time. 

This chart shows a year-by-year history of changes in the pensioner group. 

CHART 8 Progress of Pension Rolls: 2004 – 2013 

Year Ended In Payment Status 

December 31 Additions Terminations Number Average A

2004 9,316 7,659 180,746 70.5 2005 7,514 7,305 180,955 70.8 2006 6,203 6,924 180,234 71.0 2007 7,605 8,186 179,653 71.3 2008 7,269 8,510 178,412 71.6 2009 8,221 7,865 178,768 71.8 2010 8,253 8,108 178,913 72.0 2011 6,747 8,097 177,563 72.3 2012 5,540 8,072 175,031 72.7 2013 6,029 8,226 172,834 73.1 

5.3.16
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

0.01.02.03.04.05.06.07.08.0

2004 2005 2006 2007 2008 2009 2010 2011 

$ Billions 

Benefits PaidNet Contributions

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. Pension plan assets change as a result of the net impact of these income and expense components. A summary of these transactions for the valuation year is presented in Section 3, Exhibit C. 

Contributions net of administrativ$683,571,894 for the year. Benefitotaled $2,822,507,812. To the excontributions are projected to be linvestment earnings or fund assetshortfall. Our projections show the Plan is e2026. We will continue to monito

B. FINANCIAL INFORMATION

This chart depicts the net employer contributions and benefits paid over the last ten years. 

CHART 9 

Comparison of Net Employer Contributions and Benefits Paid for Years Ended December 31, 2004 – 2013 

Note: Net contributions include withdrawal liability payments.

5.3.17
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Because the Plan is funded by negotiated contribution rates, it is desirable to have a level and predictable pension plan cost from one year to the next. For this reason, the Trustees have approved an asset valuation method that gradually adjusts to market value. Under this valuation method, the full value of market fluctuations is not recognized in a single year and, as a result, the asset value and the pension plan cost are more stable.

The amount of the adjustment to rtreated as income, which may be pRealized gains and losses and unrtreated equally and, therefore, the immediate effect on the actuarial 

This chart shows the determination of the actuarial value of assets as of December 31, 2013. 

CHART 10 Determination of Actuarial Value of Assets as of December 31, 2013 

1 Market value of assets, December 31, 2013 

Original Unrec

2 Calculation of unrecognized return Amount* R

 (a) Year ended December 31, 2013 $1,857,415,173 $1,485, (b) Year ended December 31, 2012 970,780,120 582, (c) Year ended December 31, 2011 -1,459,149,077 -583, (d) Year ended December 31, 2010 1,139,783,380 227, (e) Year ended December 31, 2009 3,062,868,189  (f) Total unrecognized return 

3 Preliminary actuarial value: (1) - (2f) 4 Adjustment to be within 20% corridor 5 Final actuarial value of assets as of December 31, 2013: (3) + (4) 6 Actuarial value as a percentage of market value: (5) ÷ (1) 7 Amount deferred for future recognition: (1) - (5) 

* Total return minus expected return on a market value basis ** Recognition at 20% per year over 5 years 

5.3.18
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

05

1015202530

2004 2005 2006 2007 2008 2009 2010 2011 

$ Billions 

Actuarial ValueMarket Value

Both the actuarial value and the market value of assets are representations of the Fund’s financial status. As investment gains and losses are gradually taken into account, the actuarial value of assets tracks the market value of assets. 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 portion is an important element in the contribution requirements of the Plan as detailed in Subsection D. 

This chart shows how the actuarial value of assets and the market value of assets have changed from 2004 to 2013. 

CHART 11 

Actuarial Value of Assets vs. Market Value of Assets as of December 31, 2004 - 2013 

5.3.19
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

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. Each year actual experience is measured against the assumptions and, to the extent that there are differences in that year, the contribution requirement is adjusted. 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 single year's experience was a short-term development and that, over the long run, experience will 

return to that originally assumed. requirements to remain stable, assapproximate experience. When compared to the projected a$35,261,050,010 as of December variation other than investment exsignificant. On the following pagemajor components of the actuarial 

C. ACTUARIAL EXPERIENCE

This chart provides a summary of the prior year’s actuarial experience. 

CHART 12 Actuarial Experience for the Year Ended December 31, 2013 

1 Net gain from investments* 2 Net loss from administrative expenses 3 YRCW receivable change 4 Net gain from other experience 5 Net experience gain: (1) + (2) + (3) + (4) 

* Details in Chart 13. 

5.3.20
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Investment Rate of Return Because earnings on investments significantly affect the cost of the Plan, an assumption is made about the rate of return on plan assets. The rate of return is investment income net of investment expenses, expressed as a percentage of the average actuarial value of assets during the year. Investment income for the purposes of the actuarial valuation consists of projected investment income at the actuarially assumed rate and the adjustment for market value changes. Investment expenses are subtracted. 

This chart shows the portion of the gain due to investment experience. 

CHART 13 Actuarial Value Investment Experience for the Year Ended December 31, 2013 

1 Net investment income 2 Average actuarial value of assets 3 Rate of return: (1)  (2) 4 Assumed rate of return 5 Expected net investment income: (2) x (4) 6 Actuarial gain: (1) – (5) 

5.3.21
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

For your information, the following chart shows the rate of return on an actuarial basis compared to the market value investment return for the last ten years, including five-year and ten-year averages. However, actuarial planning is long term as the obligations of pension plans are expected to continue for the lifetime of its active and inactive participants. As indicated below, the experience in the past few years has shown both higher and lower rates of return than the longterm assumption. Overall, interest 

substantially in the current economupon this experience, the current aexpectations, we have maintained of return of 7.50%. However, we plan’s investment returns and may term rate of return in a future actuwarranted.

CHART 14 Investment Return – Actuarial Value vs. Market Value: 2004 - 2013 

Projected Investment 

Income 

Recognition of Market 

Value Gains (Losses) 

Actuarial Value Investment 

Return 

Year Ended 

December 31 Amount Amount Amount Percent 

2004 $1,367,661,000 -$845,716,000 $521,945,000 2.6% 2005 1,449,898,000 -459,090,000 990,808,000 5.6% 2006 1,498,975,253 271,391,109 1,770,366,362 10.04% 2007 1,507,356,663 895,402,137 2,402,758,800 13.23% 2008 1,943,506,319 -5,415,952,648 -3,472,446,329 -13.78% 2009 1,223,053,967 2,814,845,365 4,037,899,332 20.41% 2010 1,382,393,425 -926,146,146 456,247,279 2.11% 2011 1,407,939,175 -1,437,456,872 -29,517,697 -0.15% 2012 1,244,976,663 -1,178,311,875 66,664,788 0.37% 2013 1,252,359,124 1,114,339,557 2,366,698,681 15.05% 

Total $14,278,119,589 -$5,166,695,373 $9,111,424,216 

Most recent five-year average return: 7.27% 

Ten-year average return: 4.71% 

Note: Each year’s yield is weighted by the average asset value in that year. 

5.3.22
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

-40%-30%-20%-10%

0%

10%20%30%

2004 2005 2006 2007 2008 2009 2010 2011 

Actuarial ValueMarket Value

Subsection B described the actuarial asset valuation method that gradually recognizes fluctuations in the market value rate of return. The goal of this is to stabilize the actuarial rate of return and to produce more level pension plan costs. 

This chart illustrates how this method has actually worked over the past ten years. 

CHART 15 

Market Value and Actuarial Rates of Return for Years Ended December 31, 2004 - 2013 

5.3.23
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Administrative Expenses Administrative expenses for the year ended December 31, 2013 totaled $36,799,378, compared to the assumption of $35,400,000 payable monthly. This resulted in a loss of $1,446,854 for the year when adjusted for timing. The assumption for 2014 is being changed to $37,000,000 annually, payable monthly, to reflect the expense budget. Mortality Experience In the prior valuation, the mortality assumptions were updated to better reflect anticipated mortality improvement. Mortality experience (fewer or more than expected deaths) yields actuarial gains or losses. The number of deaths for nondisabled pensioners over the past year was 7,821 compared to 7,201 projected deaths. The number of deaths for disabled pensioners over the past year was 168 compared to 219 projected deaths. We will continue to monitor the mortality experience and the margin for future mortality improvement. YRCW Receivable Change Due to receipt of YRCW contributions previously recognized as a receivable in the assets, and a decrease in the allowance for uncollectible YRCW payments receivable, a gain of $4,835,915 was incurred in the Funding Standard Account. 

Other Experience There are other differences betweexperience that appear when a new with projections from the previou the extent of turnover among  retirement experience (earlier  the number of disability retireAnother difference may be a signiparticipants, such as the reemployparticipants who are not vested buservice.The net gain from mortality and oto $87,676,246 for the last plan ye

5.3.24
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Changes Since Last Valuation The following plan provision was changed and is reflected in this valuation:  During the plan year ended December 31, 2013, 1,013 

active participants and 2,585 inactive vested participants were first reported to be covered under the Default Schedule, Distressed Employer Schedule, or were subject to the Adjustable Benefit reductions as a result of a Rehabilitation Plan Withdrawal. As participants become subject to these schedules, their changes in benefits are treated as a plan change. 

Effective January 1, 2014, the following assumption was changed:  The annual administrative expense assumption was 

changed from $35,400,000 (payable monthly) to $37,000,000 (payable monthly) to reflect the Fund Office budget for 2014. 

Contributions ERISA imposes a minimum fundithe Plan to maintain a Funding StContributions meet the legal requibasis if that account shows no defemployers are not liable for satisffunding standard for any plan yeacritical status pursuant to Section sponsor adopts and complies with accordance with Section 432(e). TAccount for the prior Plan Year is Exhibit F. Employers who contribute to defiare also subject to maximum dedulimitations prescribed by the IRS. maximum deductible contribution Exhibit G.

D. SUMMARY OF CONTRIBUTION REQUIREMENTS

CHART 16 Contribution Requirements vs. Contributions Projected for Year Beginning January 1, 2014ERISA minimum required contribution Projected contributions Maximum deductible contribution 

This chart summarizes the contribution information for the valuation year. 

5.3.25
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Based on contribution rates reported in the participant data, assuming that 65,324 participants will work an average number of hours, days, or weeks and an agreement with YRCW (Contribution Deferral Agreement) as noted in the following two paragraphs, the contributions projected for the year beginning January 1, 2014 are $572,284,552, as shown in Chart 16. Contributions for the year beginning January 1, 2014 are projected to be less than the maximum allowable deduction level. Participants are assumed to work 1,300 hours or 47 weeks in benefit classes 1 through 14 and 1,700 hours or 51 weeks in classes 15 through 18 plus or 210 days in classes 1 through 16 and 240 days in classes 17 and 18 plus. Based on information from the plan sponsor, it is assumed that, as a result of an agreement with YRCW (Contribution Deferral Agreement), the Fund will receive $8.0 million in annual property sale and interest income during the Calendar years 2014-2019 and the December 31, 2013 balance of $84,150,155 will grow with 7.5% per year interest, paid monthly, reduced by the property sale income, and will be paid on December 31, 2019. 

5.3.26
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

PPA’06 calls on trustees to actively monitor their plans’ financial prospects to identify emerging funding challenges so they can be addressed effectively. Trustees are required to review formal projections of the financial status of their plans at least annually. Details are shown in Section 3H. 2014 Actuarial Status Certification The actuarial certification of plan status under PPA’06 is required not later than the 90th day of the plan year. The 2014 certification was based on the liabilities calculated in the 2013 actuarial valuation, adjusted for subsequent events and projected to December 31, 2013, and estimated asset information as of December 31, 2013. In addition, the Trustees provided the industry activity assumption. This Plan was classified as critical (Red Zone) because there was a deficiency in the Funding Standard Account as of December 31, 2013 and projected deficiencies for subsequent years (disregarding the Section 412(e) extension). The Trustees have adopted and updated a Rehabilitation Plan. The Plan is making the scheduled progress in meeting the requirements of its Rehabilitation Plan, based on the annual standards of the Rehabilitation Plan. E. PENSION PROTECTION ACT OF 2006 (PPA’06)

5.3.27
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

The Plan is operating under a Rehabilitation Plan that is intended to forestall insolvency of the Fund. Upon insolvency, PBGC financial assistance will be needed to continue payment of Plan benefits at the reduced PBGC guaranteed benefit level. Section 432(e)(3)(B) requires that the Trustees annually update the Rehabilitation Plan and Schedules. We will work with the Trustees to provide annual cash flow projections to assist the Trustees with those updates and to prepare our required assessment of scheduled progress in meeting the requirements of the Rehabilitation Plan. The Plan was projected to become insolvent within 13 years (2026) based on a projection shown in the 2014 actuarial status (zone) certification for purposes of reviewing the scheduled progress in meeting the requirements of the Rehabilitation Plan. F. CASH FLOW

5.3.28
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

0%

10%20%30%40%50%60%70%80%

2005 2006 2007 2008 2009 

05

10152025303540

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ Billions 

PVABActuarial Valueof Assets

Present Value of Accumulated Plan Benefits (PVAB) Financial reporting, in accordance with the Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 960, requires determination of the present value of accumulated plan benefits. It is the singlesum value of the benefits, vested or not, earned by participants as of the valuation date. These present values are determined based on the plan of benefits reflected for Funding Standard Account 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.

The funded percentages based on are 48.4% and 47.6% for the 2014 respectively. If the market value odetermine the funded percentage, would become 53.3%. The PVAB 2014 is not the same as that used tcertification required under PPA’0in Charts 17 and 18 reflect curreninformation, whereas the annual cprior participant data and estimatebelow compares the present value benefits with the actuarial value oyears. Chart 18 shows the relationpercentage. 

G. DISCLOSURE REQUIREMENTS

A historical comparison 

over the past ten years is shown in these charts. 

CHART 17 

Present Value of Accumulated Plan Benefits vs. Actuarial Value of Assets as of January 1, 2005 - 2014 

CHART 18 Actuarial Value of Assets as a PValue of Accumulated Plan BenJanuary 1, 2005 - 2014 

5.3.29
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

For a detailed breakdown of this information and reconciliation from last year to this year, see Section 4, Exhibit VI. 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 actuary’s “best estimate” assumptions are the basis for the measurement of the funding notice percentage. The value of plan benefits earned to date as of January 1, 2014 is $35,189,411,452 using the long-term funding interest rate of 7.50%. As the actuarial value of assets is $17,028,061,298, the Plan’s funded percentage is 48.4%, compared to 47.6% 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. The actuarial information to be provided in the annual funding notice is shown in Section 3, Exhibit E. 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%. As shown in Section 4, Exhibit V, the Plan's current liability as of January 1, 2014 is $53,728,073,336 using an interest rate of 3.64%. As the market value of assets is $18,740,758,554, this funded current liability percentage is 34.9%. This will be disclosed on the 2014 Schedule MB of IRS Form 5500. 

Disclosure of Any Recent AdverERISA requires the Plan’s enrollestatement for inclusion in the Planany event or trend that the actuary if, to the best of the actuary’s knotrend may require a material increcontribution rates. If the Trustees event that was not considered and increase the cost of the Plan, they Consulting, so that we can evalua

5.3.30
SECTION 2: Actuarial Valuation Results as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

The actuarial present value of vested plan benefits for withdrawal liability purposes is not the same figure as determined for FASB ASC 960 purposes because the two calculations involve different benefit provisions and different actuarial assumptions. In general, reductions in accrued benefits or contribution surcharges for a plan in critical status (Red Zone) are disregarded for determination of withdrawal liability. A detailed report on withdrawal liability is available. H. WITHDRAWAL LIABILITY

5.3.31
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

EXHIBIT A Table of Plan Coverage 

 Year Ended Decemb

Category 2013 2

Active participants in valuation: 

Number 65,324 6Number covered by Default Schedule, Distressed Employer Schedule or Rehabilitation Plan Withdrawal 

17,077 1

Average age 48.4 Average pension credits 14.0 Number with unknown age 514 Total active vested participants 51,902 5

Inactive participants with rights to a pension: 

Number 129,700 13Number covered by Default Schedule, Distressed Employer Schedule or Rehabilitation Plan Withdrawal 

21,395 1

Average age 52.6 

Pensioners: 

Number in pay status 172,834 17

Average age 73.1 Average monthly benefit $1,284 $

Number in suspended status 541 

Beneficiaries: 

Number in pay status 32,980 3

Average monthly benefit $389 

Number in suspended status 267 

5.3.32
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

EXHIBIT B Participant Population: 2004 – 2013 

Year Ended 

December 31 

Active 

Participants 

Inactive Vested 

Participants 

Pensioners and 

Beneficiaries 

2004 157,306 86,272 207,234 2005 156,744 86,213 208,666 2006 154,926 88,025 208,674 20071 106,169 124,196 209,590 

2008 98,799 125,273 209,127 20092 80,961 131,304 210,208 20103 73,800 131,327 211,063 20114 70,158 130,866 210,214 2012 68,544 130,926 208,243 2013 65,324 129,700 206,622 

1 Reflects withdrawal of UPS 2 Includes 16,062 YRCW employees in the active participant counts since contributions were assumed to resume for the3 Includes 12,701 YRCW employees determined to be active based on employment during 2010 in the Health and Welfa

contributions on their behalf resumed June 1, 2011. 4 To reflect withdrawal of Hostess, 2,850 participants reported as active are excluded from the active counts. 2,032 of 

included with the inactive vested counts. 

5.3.33
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

EXHIBIT C Summary Statement of Income and Expenses on an Actuarial Basis 

 Year Ended 

December 31, 2013 

D

Contribution income: 

Employer contributions $566,442,633 $57Withdrawal liability payments 153,928,639 18Adjustment for receivable employer contributions not  collected in time to be recognized in the Schedule MB 

4,661,123 -

Less administrative expenses -36,799,378 -3

Net contribution income $688,233,017 

Investment income: 

Expected market return $1,252,359,124 $1,24Recognition of market value gains (losses) 1,114,339,557 -1,17

Net investment income 2,366,698,681 

Total income available for benefits $3,054,931,698 Less benefit payments -2,822,507,812 Change in reserve for future benefits $232,423,886 

5.3.34
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

EXHIBIT D Financial Information Table 

Year Ended 

December 31, 2013 

D

Cash equivalents $1,839,575,176 Accounts receivable: 

Employer contributions, less allowance for uncollectible contributions 

$82,384,530 $8

Interest and dividends 55,082,074 4Other, primarily for securities sold 412,159,973 3

Total accounts receivable 549,626,577 

Investments: 

Cash equivalents $503,084,159 $86Fixed income securities 5,067,648,637 4,58Equity securities 12,412,426,988 11,97Other, primarily real estate related 834,696,613 33

Total investments at market value 18,817,856,397 

Total assets $21,207,058,150 Less accounts payable: 

Liability to return collateral held under securities lending agreements 

-$1,835,378,512 -$1,34

Payables for securities purchased -439,737,060 -5Withdrawal liability refundable -126,582,722 -4Accounts payable and accrued expenses -64,601,302 -5

Total accounts payable -2,466,299,596 

Net assets at market value $18,740,758,554 Net assets at actuarial value $17,028,061,298 

5.3.35
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

EXHIBIT E Annual Funding Notice for Plan Year Beginning January 1, 2014 and Ending December 31, 2

2014 

Plan Year 

2013 

Plan Ye

Actuarial valuation date January 1 January Funded percentage 48.4% 47.6

Value of assets $17,028,061,298 $16,795,637,4Value of liabilities 35,189,411,452 35,312,128,4

Fair value of assets as of December 31, 2014 NFair value of assets as of December 31, 2013 $18,7Fair value of assets as of December 31, 2012 17,7Critical or Endangered Status The Plan was in critical status because there was a funding deficiency in the Funding Standard Acc2013 and projected deficiencies for subsequent years (ignoring 412(e) amortization extension). The updated a Rehabilitation Plan. 

5.3.36
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Funding Standard Account ERISA imposes a minimum funding standard that requires the Plan to maintain a Funding Standard Account. Contributions meet the legal requirement on a cumulative basis if that account shows no deficiency. The accumulation of the actual contributions in excess of the minimum required contributions under ERISA is called the credit balance. If actual contributions fall short of the minimum required contributions on a cumulative basis, a funding deficiency has occurred. The Funding Standard Account is charged with normal cost and the amortization of increases in the unfunded actuarial accrued liability due to 1) plan amendments, 2) experience losses, and 3) changes in actuarial assumptions and 

funding methods. The account icontributions, withdrawal liabilamortization of decreases in the liability due to 1) plan amendmand 3) changes in actuarial assumethods. Increases or decreases in the acto assumption changes and plan over 15 years and short-term beare amortized over the schedule

EXHIBIT F Minimum Required Contribution 

This chart presents the charges and credits in the Funding Standard Account for the year 

ended December 31, 2013 without the effect of the 412(e) extension. 

Funding Standard Account for the Year Ended December 31, 2013, Without Effect of 412(e) 

Charges Credit

1 Prior year funding deficiency $3,199,887,650 6 Prior year credit balance 2 Normal cost, including administrative expenses 282,544,717 7 Employer contributions 3 Total amortization charges 2,751,354,636 8 Total amortization credits 4 Interest to end of the year 467,534,025 9 Interest to end of the year 5 Total charges $6,701,321,028 10 Full-funding limitation credit 

11 Total credits 12 Credit balance (Funding deficien

(11) – (5) 

The above reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to s2008. On February 12, 2009, the Plan filed an application with the IRS to change the conditions. Since the anticipated c

obtained, this valuation was completed without recognition of the amortization extension. 

5.3.37
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Additional Information Required for Section 412(e) Extension Effective for the 2004 Plan Year, the Plan received IRS approval to extend the amortization period by ten years for existing amortization charge bases. There were several financial conditions attached to that approval. First, the Plan must maintain a credit balance in the Funding Standard Account that is at least as large as the accumulation (at the Plan’s valuation rate) of the amortized (at the Plan’s valuation rate over a period of 15 years) differences between the amortization of payments of such bases had such bases been extended and amortized at the Plan’s valuation rate. The Plan’s credit balance is in excess of the minimum required credit balance as shown below.

Second, the Plan’s funded ratiomarket value of assets by the ac(computed using the Unit CrediPlan’s assumptions as of Januar59% for each valuation date thrincreasing to 60% on January 12014; 62% on January 1, 2016; 1% for each valuation date afteratio for 2009 was less than 59%requirements and the Funding Sdetermined as if the extension wthe chart on the previous page sthe December 31, 2013 funding to the 412(e) amortization extendetails the credit balance develoamortization extension was still 

Funding Standard Account for the Year Ended December 31, 2013, Including 412(e) Extensio

Charges Credit

1 Prior year funding deficiency $0 6 Prior year credit balance 2 Normal cost, including administrative expenses 282,544,717 7 Employer contributions 3 Total amortization charges 2,368,455,606 8 Total amortization credits 4 Interest to end of the year 146,726,235 9 Interest to end of the year 5 Total charges $2,797,726,558 10 Full-funding limitation credit 

11 Total credits 12 Credit balance (Funding deficien

(11) – (5) 

* Exceeds minimum required credit balance of $4,995,759,512 in accordance with the conditions of the amortization ext

This chart presents the charges and credits in the Funding Standard Account for the year 

ended December 31, 2013 with the effect of the 412(e) extension. 

5.3.38
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Reorganization Under the reorganization provisions of the IRC, the Minimum Contribution Requirement (MCR) is calculated as the amount that amortizes the unfunded liability for current pensioners over ten years and the unfunded vested liability for non-pensioners over 25 years. The MCR is applicable only if this amount is larger than the Funding Standard Account requirement before the application of the credit balance. 

For the year beginning January exceed the Funding Standard Athe application of the credit balapplicable for the current year. the Plan is said to be “in reorgareorganization, contribution reqthe normal ERISA funding requnotice to its participating emploin reorganization, cut-backs in rpermitted and any new benefit iadequately funded. We are prepimplications of reorganization s

Development of Reorganization Index for the Plan Year Ended December 31, 2013 

MCR – Vested Benefits Charge under 

IRC Section 418(b)(3) 

Net Charge to Funding Stan

IRC Section 41

1 Benefits in pay status $23,681,961,891 5 Normal cost including administrativ2 Benefits attributable to other participants 11,266,513,194 6 Amortization charges 3 Actuarial value of assets 17,028,061,298 7 Amortization credits 4 Vested benefits charge [(1) – (3)] amortized over 

ten years plus (2) amortized over 25 years $1,841,959,204 

8 Net charges: (5) + (6) – (7) Reorganization index for the year ended December 31, 2013: (4) – (8), not less th

* Without reflecting the IRC Section 412(e) amortization extension 

This chart details the calculations of the reorganization index. 

5.3.39
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

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 is the limit that applies to your Plan as shown below. 

Contributions received by the Pmaximum deductible amount ardeductibility of these contributiand may have to be deferred to contributions are not fully deduamount equal to 10% of the nonmay be imposed. However, the exempt the non-deductible amofunding limitation from the exc

EXHIBIT G Maximum Deductible Contribution 

This chart presents the calculation of the maximum deductible contribution for the January 1, 2014 - December 31, 2014 year. 

Maximum Deductible Contribution1. 

Normal cost, including administrative expenses 

2. Amortization of unfunded actuarial accrued liability 3. Preliminary maximum deductible contribution: (1) + (2), with interest to the end of the plan year 4. Full-funding limitation (FFL) 5. Preliminary maximum deductible contribution, adjusted for FFL: lesser of (3) and (4) 6. Current liability for maximum deductible contribution, projected to the end of the plan year 7. Actuarial value of assets, projected to the end of the plan year 8. Excess of 140% of current liability over projected assets at end of plan year: [140% of (6)] - (7), not less than zero 9. End of year minimum required contribution 10. Maximum deductible contribution: greatest of (5), (8), and (9) 

5.3.40
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

In a multiemployer plan, the Trustees generally have no control over the contributions received because those contributions depend on economic conditions. Action may be limited to establishing benefits so that the maximum allowable deduction levels are not exceeded under a reasonable income assumption and to taking prompt action whenever the limits are exceeded. It has been our understanding that Section 413(b)(7) of the Internal Revenue Code allows full deductions for contributions to multiemployer plans if the anticipated contributions for the plan year are less than the maximum, even if the actual contributions exceed the maximum. However, an IRS General Counsel’s Memorandum expresses a different view. An IRS Private Letter Ruling issued in October 2002 limits that Memorandum to its facts, and supports the 

conclusion that all contributionare deductible if the total reasonof the start of the year was withPrivate Letter Ruling is, technicrespect to the plan to which it wwith a similar question will neewith Fund Counsel, whether to wait to deal with it when and if auditor. You should review with Fund Cand applicability of all laws and issues as to the deductibility of 

5.3.41
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

The “zone” rules created by PPA’06 are scheduled to expire (“sunset”) for plan years beginning after December 31, 2014. However, if a pension plan is operating under a Funding Improvement Plan or a Rehabilitation Plan for the last plan year beginning in 2014, that Funding Improvement Plan or Rehabilitation Plan will remain in effect, as will all provisions of the Internal Revenue Code or ERISA regulating the operation of such Funding Improvement Plan or Rehabilitation Plan. We will keep you informed of regulatory guidance and legislative changes as they develop. PPA’06 Zone Status Based on projections of the credit balance in the Funding Standard Account, the funded percentage, and cash flow sufficiency tests, plans are categorized in one of three “zones,” critical status, endangered status, or neither. A plan is classified as being in critical status (the Red Zone) if: 

 The PPA’06 funded percentage is less than 65%, 

and either there is a projected Funding Standard Account deficiency within five years or the plan is projected to be unable to pay benefits within seven years, or 

 There is a projected Funding Standard Account 

deficiency within four years, or 

 There is an inability to 

years, or 

 The present value of ve

participants exceeds thaare less than the value oaccruals plus interest on benefit liabilities, and tStandard Account defic

Amortization extensions cannoZone criteria. The corrective action for a critiformal Rehabilitation Plan, desemerge from critical status by tperiod. If the Trustees determinnot reasonable, the rehabilitatioemerge as of a later date or to fRed Zone plans have tools, such eliminate early retirement subsisituation. Plans in the Red Zone They may not reduce benefits obefore being notified of the planrolling back recent benefit increretirement benefits payable at n

EXHIBIT H Pension Protection Act of 2006 (PPA ’06) 

5.3.42
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

A plan is classified as being in endangered status (the Yellow Zone) if: 

 The PPA’06 funded percentage is less than 80%, 

or 

 There is a projected Funding Standard Account 

deficiency within seven years, and 

 The plan is not in critical status (Red Zone). 

The corrective actions for an endangered plan are based on the adoption of a formal Funding Improvement Plan, designed to improve gradually the current funded percentage, to forestall a funding deficiency and to keep the plan out of critical status. A plan that has both of the endangered conditions present is classified as seriously endangered. Trustees of those plans must take interim measures to delay the projected funding deficiency by one year and improve the plan’s funded percentage. 

A plan is classified as being in neither in critical status (the Re

status (the Yellow Zone).Funded Percentage For purposes of PPA’06, the fudetermined using the actuarial vCredit accrued liability.” This lequivalent to the present value as discussed in Subsection G of the actuary’s best estimate assu

5.3.43
SECTION 3: Supplementary Information as of January 1, 2014 for the Central States, Sout

Areas Pension Plan 

Section 415 of the Internal Revenue Code specifies the maximum benefits that may be paid to an individual from a defined benefit plan and the maximum amounts that may be allocated each year to an individual’s account in a defined contribution plan. If an individual is covered solely by multiemployer plans, the plans do not have to be combined for any of the limits. If the individual is covered by a single-employer plan, all plans maintained by the same employer are combined in applying these tests. Multiemployer plan benefits do not need to be combined with single-employer plan benefits in testing against the pay-based limit. A qualified pension plan may not pay benefits in excess of the Section 415 limits. The ultimate penalty for noncompliance is disqualification; the plan could lose its tax exemption, employers could lose their deductions and active participants could be taxed on their vested benefits. In particular, Section 415(b) of the IRC 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 is $205,000 for 2013 and $210,000 for 2014. These are the limits in simplified terms. They 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 applicable to each participant’s when the individual retires and overall impact of the Section 41reflected in this valuation for plon our understanding of the req404, 412, 415, and 431 and the Fund Counsel’s review and interegulations must be sought in th

EXHIBIT I Section 415 Limitations 

5.3.44
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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September 3, 2014 

CERTIFICATE OF ACTUARIAL VALUATION 

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”), has prepared an actuarial valuatiStates, Southeast and Southwest Areas Pension Plan as of January 1, 2014 in accordance with generally accepted actua

practices. It has been prepared at the request of the Board of Trustees to assist in administering the Fund and meeting fof federal government agencies. This valuation report may not otherwise be copied or reproduced in any form without 

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 measuresignificantly from the current measurements presented in this report due to such factors as the following: plan experienthat anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increxpected as part of the natural operation of the methodology used for these measurements (such as the end of an amorti

additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicThe valuation is based on the assumption that the Plan is qualified as a multiemployer plan for the year and on informa

Central States with respect to contributions, assets and participant data. Segal Consulting does not audit the data providand comprehensiveness of the data is the responsibility of those supplying the data. To the extent we can, however, Seg

data for reasonableness and consistency. Based on our review of the data, we have no reason to doubt the substantial acinformation on which we have based this report and we have no reason to believe there are facts or circumstances that 

validity of these results. Adjustments for incomplete or apparently inconsistent data were made as described in the attaI am a member of the American Academy of Actuaries and I meet the Qualification Standards of the American Academrender the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial valuation is 

accurate, except as noted in Exhibit I. Each prescribed assumption for the determination of Current Liability was appliewith applicable law and regulations. In my opinion, each other assumption is reasonable (taking into account the exper

and reasonable expectations) and such other assumptions, in combination, offer my best estimate of anticipated experie

___ 

Daniel V. Ciner, MAAA, EA Senior Vice President and Actuary Enrolled Actuary No. 14-05773 

5.3.45 Redacted by the US Department of Treasury
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

EIN 3

EXHIBIT I Summary of Actuarial Valuation ResultsThe valuation was made with respect to the following data supplied to us by the Plan Administrator: 1 Pensioners as of the valuation date (including 32,980 beneficiaries in pay status, 541 pensioners in 

suspended status and 267 beneficiaries in suspended status) 

 

2 Participants inactive during year ended December 31, 2013 with vested rights (including 841 participants with 

unknown age) 

 

3 Participants active during the year ended December 31, 2013 (including 514 participants with unknown age) 

Fully vested 51,902 Not vested 13,422 

4 Total participants 

The actuarial factors as of the valuation date are as follows: 1 Normal cost, including administrative expenses 

2 Actuarial accrued liability  Pensioners and beneficiaries $23,681,961,891  Inactive participants with vested rights 6,269,133,530  Active participants 5,238,316,031 3 Actuarial value of assets ($18,740,758,554 at market value as reported in financial statements) 

4 Unfunded actuarial accrued liability 

5.3.46
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT II Information on Plan Status as of January 1, 2014 

1 Plan status (as certified on March 31, 2014, for the 2014 zone certification) 2 Scheduled progress (as certified on March 31, 2014, for 2014 zone certification) 3 Actuarial value of assets for Funding Standard Account 4 Accrued liability under unit credit cost method 5 Funded percentage for monitoring plan's status 6 Reduction in unit credit accrued liability resulting from the reduction in adjustable benefits since 

the prior valuation date 

5.3.47
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT III Schedule of Active Participant Data (Schedule MB, line 8b)The participant data is for the year ended December 31, 2013. 

Pension Credits 

Age Total Under 1 1-4 5-9 10-14 15 - 19 20 - 24 25 - 29 30 - 34 3

Under 25 1,746 564 1,134 48 - - - - - - - - - - 25 - 29 2,956 424 1,697 808 27 - - - - - - - - 30 - 34 3,950 350 1,591 1,380 596 33 - - - - - - 35 - 39 5,083 334 1,477 1,477 1,223 556 16 - - - - 40 - 44 7,245 352 1,552 1,673 1,705 1,427 504 32 - - 45 - 49 9,956 333 1,517 1,649 1,933 2,094 1,626 783 21 50 - 54 13,109 277 1,351 1,591 2,096 2,279 2,441 2,145 837 55 - 59 12,733 153 861 1,159 1,564 1,897 2,123 2,367 1,719 60 - 64 6,799 52 367 560 837 913 1,073 1,177 912 65 - 69 1,085 8 65 122 167 155 160 121 100 70 & over 148 2 21 25 18 19 12 15 11 Unknown 514 252 248 12 2 - - - - - - - - 

Total 65,324 3,101 11,881 10,504 10,168 9,373 7,955 6,640 3,600 

5.3.48
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT IV Funding Standard Account The table below presents the Funding Standard Account for the Plan Year ending December 31, 2014. 

Charges Credits

1 Prior year funding deficiency $4,983,597,170 6 Prior year credit balance 2 Normal cost, including administrative expenses 282,317,656 7 Amortization credits 3 Amortization charges 2,723,904,562 8 Interest on (6) and (7) 4 Interest on (1), (2) and (3) 599,236,454 9 Full-funding limitation credit 5 Total charges $8,589,055,842 10 Total credits Minimum contribution with interest required to avoid a funding deficiency: (5) – (10), not less than zero Full funding limitations (FFL) and credits:1 ERISA FFL (accrued liability FFL) 2 RPA’94 override (90% current liability FFL) 3 FFL credit Note: The above reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to significant investme

February 12, 2009, the Plan filed an application with the IRS to change the conditions. Since the anticipated condition relief has not yet been obtwas completed without recognition of the amortization extension. 

5.3.49
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT IV (continued) Funding Standard Account Schedule of Funding Standard Account Bases: Amortization Charges as of January 1, 2014 (without amortizat(Schedule MB, line 9c) 

Type of Base Date Established 

Amortization 

Amount 

Years 

Remaining 

O

Plan Amendment 01/01/1993 $38,762,593 9 Plan Amendment 01/01/1994 31,006,198 10 

Change in Assumptions 01/01/1995 17,021,296 11 

Plan Amendment 01/01/1995 73,323,009 11 

Plan Amendment 01/01/1996 25,039,818 12 

Plan Amendment 01/01/1997 28,387,074 13 

Plan Amendment 01/01/1998 78,124,643 14 

Plan Amendment 01/01/1999 77,674,688 15 

Plan Amendment 01/01/2000 39,147,195 16 

Experience Loss 01/01/2001 70,722,930 2 

Plan Amendment 01/01/2001 21,660,666 17 

Plan Amendment 01/01/2002 17,972,771 18 

Experience Loss 01/01/2002 72,276,217 3 

Plan Amendment 01/01/2003 8,357,479 19 Experience Loss 01/01/2003 326,695,126 4 1Change in Assumptions 01/01/2003 123,927,774 19 1

Experience Loss 01/01/2005 185,462,548 6 

Experience Loss 01/01/2006 69,704,771 7 

Change in Assumptions 01/01/2006 148,231,625 22 1

Change in Assumptions 01/01/2007 237,812,085 23 2

Plan Amendment 01/01/2009 167,531 10 

Experience Loss 01/01/2009 561,524,190 10 4

5.3.50
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

EIN 3

EXHIBIT IV (continued) Funding Standard Account Schedule of Funding Standard Account Bases: Amortization Charges as of January 1, 2014 (without amortizat(Schedule MB, line 9c) 

Type of Base Date Established 

Amortization 

Amount 

Years 

Remaining 

O

Experience Loss 01/01/2011 123,801,819 12 1Experience Loss 01/01/2012 162,390,816 13 1Change in Assumptions 01/01/2013 42,965,078 14 

Experience Loss 01/01/2013 141,744,622 14 1

Total $2,723,904,562 $20

5.3.51
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT IV (continued) Funding Standard Account Schedule of Funding Standard Account Bases (Credits) (Schedule MB, line 9h) 

Type of Base Date Established 

Amortization 

Amount 

Years 

Remaining 

O

Experience Gain 01/01/2000 $60,444,208 1 Experience Gain 01/01/2004 44,825,572 5 Plan Amendment 01/01/2004 20,969,650 20 

Change in Assumptions 01/01/2004 40,431,539 20 

Experience Gain 01/01/2007 62,145,950 8 Plan Amendment 01/01/2008 88,507,361 9 

Experience Gain 01/01/2008 176,591,671 9 1Plan Amendment 01/01/2010 1,422,139 11 Experience Gain 01/01/2010 301,688,292 11 2Plan Amendment 01/01/2011 1,283,693 12 Change in Assumptions 01/01/2011 25,645,809 12 

Plan Amendment 07/01/2011 57,365,343 12.5 Plan Amendment 01/01/2012 18,176,560 13 

Plan Amendment 01/01/2013 3,142,834 14 Experience Gain 01/01/2014 134,693,411 15 1Plan Amendment 01/01/2014 2,329,146 15 

Total $1,039,663,178 $7

5.3.52
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT IV (continued) Funding Standard Account Schedule of Funding Standard Account Bases: Amortization Charges as of January 1, 2014 (with amortization (Schedule MB, line 9c) 

Type of Base Date Established 

Amortization 

Amount 

Years 

Remaining 

O

Combined and offset charge 01/01/1992 $244,872,868 7.48 $1Experience Loss 01/01/1993 5,708,926 4 

Plan Amendment 01/01/1993 15,393,356 19 

Experience Loss 01/01/1994 8,021,838 5 

Plan Amendment 01/01/1994 12,167,722 20 

Experience Loss 01/01/1995 13,932,561 6 

Change in Assumptions 01/01/1995 6,595,241 21 

Plan Amendment 01/01/1995 28,409,944 21 

Experience Loss 01/01/1996 2,806,665 7 

Plan Amendment 01/01/1996 9,572,574 22 Plan Amendment 01/01/1997 10,700,968 23 

Plan Amendment 01/01/1998 29,025,961 24 

Experience Loss 01/01/1999 11,209,234 10 

Plan Amendment 01/01/1999 28,430,936 25 

Plan Amendment 01/01/2000 14,111,679 26 

Experience Loss 01/01/2001 29,269,585 12 

Plan Amendment 01/01/2001 7,687,533 27 Plan Amendment 01/01/2002 6,278,856 28 Experience Loss 01/01/2002 29,937,743 13 

Plan Amendment 01/01/2003 2,873,440 29 Change in Assumptions 01/01/2003 42,608,828 29 1

Experience Loss 01/01/2003 135,034,044 14 1

5.3.53
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

EIN 3

EXHIBIT IV (continued) Funding Standard Account Schedule of Funding Standard Account Bases: Amortization Charges as of January 1, 2014 (with amortization (Schedule MB, line 9c) 

Type of Base Date Established 

Amortization 

Amount 

Years 

Remaining 

O

Experience Loss 01/01/2005 185,462,548 6 Experience Loss 01/01/2006 69,704,771 7 

Change in Assumptions 01/01/2006 148,231,625 22 1

Change in Assumptions 01/01/2007 237,812,085 23 2

Plan Amendment 01/01/2009 167,531 10 

Experience Loss 01/01/2009 561,524,190 10 4Experience Loss 01/01/2011 123,801,819 12 1Experience Loss 01/01/2012 162,390,816 13 1Change in Assumptions 01/01/2013 42,965,078 14 

Experience Loss 01/01/2013 141,744,622 14 1

Total $2,368,455,587 $24* Bases established through January 1, 2003 are amortized at 0% interest as of January 1, 2014 with the 412(e) amortization extension, which i

valuation. On February 12, 2009, the Plan filed an application with the IRS to change the conditions of the amortization extension. Since any cyet been obtained, this valuation was completed without recognition of the amortization extension. 

5.3.54
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT IV (continued) Funding Standard Account  Equation of Balance 

1 Net outstanding balance of bases 2 Credit balance (Funding deficiency) 3 Unfunded actuarial accrued liability: (1) - (2) 

5.3.55
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT V Current Liability The table below presents the current liability for the Plan Year beginning January 1, 2014. 

Item Am

1. Retired participants and beneficiaries receiving payments 2. Inactive vested participants 3. Active participants 

a. Non-vested benefits $553,804,726 b. Vested benefits 8,976,928,736 

c. Total active 

4. Total Expected increase in current liability due to benefits accruing during the plan year 

Expected release from current liability for the plan year Expected plan disbursements for the plan year, including administrative expenses of $37,000,000 Current value of assets Percentage funded for Schedule MB 

Note: The actuarial assumptions used to calculate these values are shown in Exhibit 

VII. 

5.3.56
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT VI 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 2014 and as of January 1, 2013. In addition, the factors that affected the change between the two dates follow. 

Benefit Information 

January 1, 2014 Ja

Actuarial present value of vested accumulated plan benefits: 

Participants currently receiving payments $23,681,961,891 Other vested benefits 11,266,513,194 Total vested benefits $34,948,475,085 

Actuarial present value of non-vested accumulated plan benefits 240,936,367 Total actuarial present value of accumulated plan benefits $35,189,411,452 Factors 

Chan

Pre

Acc

Plan amendments Benefits accumulated Net experience gain or loss and changes in data 

Benefits paid Changes in actuarial assumptions Interest 

Total 

5.3.57
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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Actuarial Funded Status – IRC 412(e) Letter Basis (Using Assumptions from January 1, 2014 Valuation Report) 

January 1, 2014 

1 Interest Rate 8.0% 2 Actuarial liability $29,822,856,638 3 Market value of assets $18,740,758,554 4 Funded ratio 62.8% 5 Minimum required funded ratio per IRC 412(e) condition 61.0% 

5.3.58
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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EXHIBIT VII Statement of Actuarial Assumptions/Methods (Schedule MB, line 6) Decrements: Rates of Retirement: Table A, except effective July 1, 2011, benefits commen

age 57 

 Rates of Withdrawal Prior to Retirement: Table B  Rates of Disability: Table C  Rates of Mortality for Healthy Lives: RP-2000 Combined Healthy Blue Colla

(sex distinct), projected on a generational basis using Scale AA for 13 years anthereafter as described in Table D 

 Rates of Mortality for Disabled Lives: According to the RP-2000 Disability R

Table (sex distinct) 

 Note: The rates described above are rates of decrement, not probability rates. 

a given age are calculated by considering all applicable rates of decrement at t

 The RP-2000 Combined Healthy Blue Collar Mortality Table, projected on a g

using Scale AA for 13 years and further projected under Scale BB to the measreasonably reflects the projected mortality experience of the Plan as of the meresulting mortality table was then adjusted to future years using generational pScale BB to reflect future mortality improvement. 

5.3.59
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

Pension Plan 

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Table A 

Retirement (%) 

*Participants who have less than 15 years of contributory credit on 12/31/03 are assumed to retire in accordance with the “20-24” ra

Benefit Classes 1 – 14 Benefit Classes 15 and 16 Benefit Classes 17A an

Age Under 20 20 & Over Under 20 20 – 24 25 – 29* 30 & Over* Under 20 20 – 24 25 – 2948 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 

0.0 0.0 0.5 0.5 0.5 0.5 1.0 1.0 1.0 2.5 3.0 3.0 6.0 

10.0 25.0 25.0 25.0 50.0 30.0 25.0 25.0 25.0 

100.0 

0.0 0.0 1.5 1.5 1.5 1.5 3.0 4.0 5.0 6.0 6.0 7.0 

15.0 20.0 50.0 35.0 35.0 55.0 35.0 25.0 25.0 25.0 

100.0 

0.0 0.0 0.5 0.5 0.5 0.5 1.0 1.5 2.0 5.0 5.0 5.0 8.0 

15.0 35.0 25.0 25.0 50.0 40.0 35.0 30.0 30.0 

100.0 

0.0 0.0 1.0 1.0 1.5 1.5 1.5 3.0 5.0 7.0 9.0 

10.0 15.0 25.0 50.0 35.0 35.0 60.0 60.0 35.0 35.0 35.0 

100.0 

1.0 2.0 3.0 3.0 4.0 4.0 5.0 6.0 8.0 

12.0 13.0 15.0 20.0 30.0 55.0 

50.0 45.0 60.0 60.0 35.0 35.0 35.0 

100.0 

10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 18.0 17.0 17.5 20.0 35.0 65.0 50.0 40.0 55.0 55.0 45.0 30.0 30.0 

100.0 

0.0 0.0 0.5 0.5 0.5 0.5 0.5 1.0 2.0 4.0 4.0 6.0 7.5 

12.0 27.5 24.5 23.0 48.0 34.0 28.5 33.5 21.0 

100.0 

0.0 0.5 1.0 1.0 1.0 1.0 1.5 2.5 4.0 9.5 9.0 9.5 

10.5 18.0 37.0 30.5 32.5 46.0 35.5 35.0 18.5 12.5 

100.0 

2.0 2.0 3.0 3.0 5.0 5.0 6.0 8.0 

10.0 15.0 15.0 15.0 20.0 30.0 50.0 50.0 45.0 60.0 40.0 40.0 25.0 30.0 

100.0 

5.3.60
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Table A (continued) 

Retirement (%) 

* Participants who have less than 15 years of contributory credit on 12/31/03 are assumed to retire in accordance with the “20-24** YRCW participants subject to benefit reductions under the Distressed Employer Schedule are assumed to retire in accordance w

“Vested Pension” rates, effective July 1, 2011. In addition, YRCW participants who were age 55 with 25 years of service as of 

assumed to defer benefit commencement until age 62. 

Benefit Class 18** Benefit Classes 18 Plus Vested Ina

Age 

Under 

20 20 - 24 25 – 29* 30 & Over* Under 20 20 – 24 25 – 29* 30 & Over* 

Vested 

Pension

2

S

48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 

 69 

70 

0.0 0.0 0.0 0.0 0.5 0.5 0.5 1.0 1.5 3.5 3.5 4.0 4.5 

10.5 27.0 20.0 20.0 50.0 25.0 25.5 25.0 25.0 

100.0 

1.0 1.0 1.5 2.0 2.0 1.5 3.0 3.0 5.5 

12.5 11.0 13.0 15.5 20.0 35.5 27.0 35.0 61.0 38.0 36.0 18.0 

9.0 

100.0 

2.0 3.0 4.0 5.0 7.0 7.0 9.0 

10.0 15.0 30.0 20.0 20.0 25.0 30.0 60.0 45.0 45.0 45.0 40.0 40.0 30.0 30.0 

100.0 

10.0 10.0 10.0 10.0 10.0 10.0 15.0 15.0 20.0 25.0 25.0 25.0 25.0 35.0 65.0 45.0 40.0 50.0 50.0 50.0 35.0 20.0 

100.0 

0.0 0.0 0.25 0.25 0.25 0.25 0.5 2.0 2.0 3.0 4.0 4.0 4.0 8.0 

20.0 10.0 

25.0 35.0 50.0 25.0 25.0 25.0 

100.0 

0.0 0.5 0.5 1.0 1.0 1.0 1.5 2.5 4.0 9.5 9.0 9.5 

10.5 18.0 37.0 30.5 32.5 46.0 35.5 35.0 18.5 12.5 

100.0 

2.0 3.0 4.0 5.0 7.0 7.0 9.0 

10.0 15.0 30.0 20.0 20.0 25.0 30.0 60.0 45.0 45.0 45.0 40.0 40.0 30.0 30.0 

100.0 

10.0 10.0 10.0 10.0 10.0 10.0 15.0 15.0 20.0 25.0 25.0 25.0 25.0 35.0 65.0 45.0 40.0 50.0 50.0 50.0 35.0 20.0 

100.0 

0.0 0.0 0.5 0.5 0.5 1.0 1.5 2.5 2.5 4.0 4.0 4.0 5.0 8.0 

15.0 

8.0 

15.0 30.0 

8.0 8.0 8.0 8.0 

100.0 

5.3.61
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Table B 

Withdrawals (%) * 

*Withdrawal rates cut out at eligibility for retirement, provided a non-zero rate of retirement applies at that age. 

Years of Service Classes 1 – 14 Classes 15 and 16 Classes 17A and 17B Class 18 Cla

0 1 2 3 4 5 6 7 8 9 

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 & Over 

40.00 30.00 25.00 25.00 20.00 20.00 17.00 16.00 15.00 15.00 15.00 15.00 13.00 13.00 13.00 10.00 

9.00 8.00 8.00 9.00 

11.00 

9.00 8.00 7.00 6.00 6.00 6.00 6.00 6.00 5.00 5.00 

35.00 25.00 20.00 15.00 14.00 13.00 11.00 10.00 10.00 10.00 

9.00 9.00 8.00 7.00 6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 3.00 3.00 2.00 2.00 2.00 2.00 

35.00 20.00 15.00 12.00 12.00 10.00 10.00 10.00 10.00 

7.00 7.00 7.00 6.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 

25.00 14.00 10.00 10.00 

8.00 6.00 6.00 6.00 6.00 6.00 5.00 5.00 4.00 4.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 

5.3.62
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Table C 

Disability (%) 

Age Rate of Disability Age Rate of Disability Age Ra

21 0.00 36 0.03 51 22 0.00 37 0.04 52 23 0.00 38 0.05 53 24 0.00 39 0.06 54 25 0.00 40 0.07 55 26 0.00 41 0.08 56 27 0.00 42 0.10 57 28 0.00 43 0.10 58 29 0.00 44 0.11 59 30 0.00 45 0.12 60 31 0.00 46 0.12 61 32 0.01 47 0.13 62 33 0.02 48 0.12 63 34 0.02 49 0.11 64 35 0.03 50 0.11 65 

5.3.63
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Table D 

Mortality* (%) 

Age 

Healthy Disabled 

Male Female Male Female 

20 0.03 0.02 2.26 0.75 25 0.03 0.02 2.26 0.75 30 0.07 0.03 2.26 0.75 35 0.10 0.04 2.26 0.75 40 0.12 0.07 2.26 0.75 45 0.15 0.11 2.26 0.75 50 0.19 0.16 2.90 1.15 55 0.33 0.25 3.54 1.65 60 0.67 0.46 4.20 2.18 65 1.28 0.96 5.02 2.80 70 2.17 1.72 6.26 3.76 75 3.54 2.75 8.21 5.22 80 6.10 4.41 10.94 7.23 85 10.35 7.59 14.16 10.02 90 17.06 13.00 18.34 14.00 

* Rates above are sample rates in 2014. Healthy rates are projected on a generational basis after 2014 using Scale BB. 

5.3.64
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Description of Weighted Average Retirement Age: Age 62, determined as follows: The weighted average retirement age for each 

calculated as the sum of the product of each potential current or future retiremprobability of surviving from current age to that age and then retiring at that aother decrements. The overall weighted retirement age is the average of the inages based on all the active participants included in the January 1, 2014 actuar

Future Benefit Accruals: One year of service per year 

Frequency of Employer Contributions: 

Benefit Assumed Weeks Assumed Days A

Class Worked Worked 

1 through 14 47 210 

15 & 16 51 210 

17A & 17B 51 240 

18 & 18 Plus 51 240 

Unknown Data for Participants: Same as those exhibited by participants with similar known characteristics. If 

participants are assumed to be male. The Fund Office adjusted for missing birassuming that they were 30 years prior to the participation date. 

Definition of Active Participants: Active participants are defined as those reported as Active by Central States e

have retired as of the valuation date. All actives have earned one year of vestinmost recent plan year. 

Exclusion of Inactive Vested  Participants: Inactive participants over age 70 are excluded from the valuation, based on an 

they will not ultimately apply for a pension or respond to inquiries by the Funassumption does not apply to those UPS participants that became inactive vest

result of UPS’s withdrawal. 

Percent Married: 80% Age of Spouse: Females are three years younger than male spouses. 

5.3.65
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Benefit Election: Married participants are assumed to elect the Joint and Survivor Annuity. Sing

assumed to elect the Single Life Annuity with 60 months of payments guarantguarantee for participants on the Default Schedule). 

Net Investment Return: 7.50% - The net investment return assumption is a long-term estimate derived 

data, current and recent market expectations, and professional judgment. As p

building block approach was used that reflects inflation expectations and anticpremiums for each of the portfolio’s asset classes, as well as the Plan’s target 

Annual Administrative Expenses: $37,000,000, payable monthly, for the year beginning January 1, 2014 (equiva

payable at the beginning of the year) 

Actuarial Value of Assets: The market value of assets less unrecognized returns in each of the last five ye

return is equal to the difference between the actual market return and the projeand is recognized over a five-year period. The actuarial value is further adjustbe within 20% of the market value. 

Actuarial Cost Method: Unit Credit Actuarial Cost Method. Normal Cost and Actuarial Accrued Liabi

on an individual basis and are allocated by service. 

Benefit Class: Plan participants are assumed to remain in their current Benefit Class until ter

retirement. 

Benefits Valued: Unless otherwise indicated, includes all benefits summarized in Exhibit VIII. 

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Current Liability Assumptions: 

Interest 3.64%, 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: R

projected forward to the valuation year plus seven years for annuitants and 15 nonannuitants 

Justification for Change in 

Actuarial Assumptions (Schedule MB, line 11): Based on past experience and future expectations, the following actuarial assu

changed as of January 1, 2014:  Administrative expenses, previously $35,400,000, payable monthly. 

Estimated Rate of Investment Return: 

On actuarial value of assets  (Schedule MB, line 6g): 15.1%, for the Plan Year ended December 31, 2013 On current (market) value of assets  (Schedule MB, line 6h): 18.6%, for the Plan Year ended December 31, 2013 

Funding Standard Account 

Contribution Timing (Schedule MB, line 3(a)): Unless otherwise noted, contributions are paid periodically throughout the yea

collective bargaining agreements. The interest credited in the Funding Standar

therefore assumed to be equivalent to a July 1 contribution date. 

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EXHIBIT VIII 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 

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 Participation: Employee is eligible to participate when at least 20 weeks of contributions hav

or her behalf in the first year of employment, or in any calendar year thereafteClasses 15A through 18+, need 20 weeks or 75 days of contributions). 

Contributions: Employers make daily or weekly contributions on behalf of their employees, a

collective bargaining agreement. These contribution rates are a factor in determClass. Minimum contribution rates vary by several factors, including Benefit Clast contract. 

 The average annual contribution per participant, based on the assumptions reg

$8,638. 

Service Credit: Sum of Contributory Credit and Non-Contributory Credit. 

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Contributory Credit: Credit is based on contributions made by employer on employee’s behalf. Con

earned on a calendar year basis according to the following schedule: 

Benefit Classes 1 – 14 

 0 – 19 weeks contributed No Credit  20 – 39 weeks contributed Number of weeks divided by  40 or more weeks contributed 1 year credit 

Benefit Classes 15A – 18+ 

 0 – 19 weeks contributed No Credit  20 – 39 weeks contributed Number of weeks divided by  40 or more weeks contributed 1 year credit 

 or  74 days contributed No Credit 

 75 – 179 days contributed Number of days divided by 1 180 or more days contributed 1 year credit 

Non-Contributory Credit: Employee can earn Non-Contributory Credit if he or she became a Participant 

1985, and if he or she worked for a Teamster type organization prior to becomthis plan. Up to one year of Non-Contributory Credit can be given for each yeCredit. 

Reemployment: If a pensioner or disabled Participant returns to work, benefit payments may b

pursuant to the terms of the Plan. Benefit may have to be re-calculated if he or additional credit. 

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Vesting Service: A Participant earns one year of Vesting Service for each calendar year during 

makes at least 20 weeks of contribution on his or her behalf (20 weeks or 75 dClasses 15A through 18+). A Participant becomes vested upon earning five yeservice. 

Break in Service: A one-year break is a calendar year with less than 10 weeks of Contributory C

Contributory Credit, or Vesting Service. 

 A Break in Service occurs when a non-vested Participant has the greater of a) 

one-year breaks, or b) a number of consecutive one-year breaks equal to the nVesting Service prior to the one-year breaks. 

Retirement Benefits: A Participant receives the best of the following benefit types at retirement: 

 Twenty-Year Service Pension  Contribution-Based Pension  Contributory Credit Pension 

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Twenty-Year Service Pension: This benefit is earned by combining Contributory Credit and Non-Contributor

least one-half of the total Credit must be Contributory. 

 This benefit is based on Benefit Class and age at retirement as follows: 

Monthly Pension Benefit 

Benefit Class Age 57 Age 58 Age 59 60-64 Age 65 

1 $ 60 $ 60 $ 60 $ 60 $ 60 2 90 90 90 90 90 

2A 125 125 125 125 125 

3 140 140 140 170 170 

3A 170 170 170 210 210 

4 225 225 225 275 275 5 260 260 260 315 315 6 285 285 285 350 350 7 330 330 330 400 400 8 365 365 365 445 445 9 400 400 400 485 485 

10 435 435 435 530 530 11 490 490 490 595 595 12 575 575 575 675 675 13 600 600 600 725 725 14 625 625 625 775 775 15 700 750 800 900 900 16 700 750 800 900 1,100 

17A&B 700 750 800 900 1,100 

18&18+ 700 750 800 900 1,100 

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Eligibility: Attain age 50 while an active plan participant with 20 years of Credit 

or 30 years of Credit, regardless of age. 

Amount: Monthly pension benefit is based on chart above using age on the earlier of 1) 

2) date of termination. Benefit must be reduced .5% for each month retiremen57. 

Deferred Pension (Special Provision): 

Eligibility: Attain age 57 while an active plan participant with 20 years of Credit 

or 20 years of Contributory Credit, regardless of age, with at least 20 weeks und

Benefit Class Rate Chart or Attain age 50 while an active plan participant with 20 years of Contributory C

Amount: Monthly pension benefit is based on previous chart using age at retir

termination). This special Deferred Pension allows a participant to terminadelay retirement to a later date to receive a greater benefit. 

 This benefit must be reduced .5% for each month retirement age precedes age 

not payable prior to age 50. 

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Contribution-Based Pension: 

Eligibility: Five years of Vesting Service. Amount: This monthly pension benefit is payable, unreduced, at the earlier of age 65 

years of Credit, and is equal to (a) + (b) + (c): (a) 1% of all employer contributions paid on the Participant’s behalf on or aft(b) 2% of all employer contributions paid on the Participant’s behalf on or aft

through December 31, 2003; 

(c) Pre-1986 credit is determined using a formula as defined in the January 1, 

 This benefit can be taken early, with a reduction of .5% for each month retire

age 65, or age 62 with 20 years Credit if earlier. 

Contributory Pension:

Eligibility (must meet any of the following): 

 30 years of Contributory Credit, with at least 1⁄2 year of Contributory Credi

 January 1, 2004 and Contribution being made under Schedule B of the Ben Chart; 

 at least age 57 with at least 20 years of Contributory Credit and Benefit Cla

 at least age 57 with at least 25 years of Contributory Credit and Benefit Cla at least age 60 with at least 25 years of Contributory Credit and Benefit Cla 25 years of Contributory Credit and Benefit Class 17A, 18, or 18+;  at least age 55 with at least 25 years of Contributory Credit and Benefit Cla at least age 50 with at least 20 years of Contributory Credit and Benefit Cla

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Amount: Sum of (a) and (b), where: 

a) 1% of Contributions paid on participant’s behalf on or after January 1, 200

monthly and reduced .5% per month for retirement prior to 62); 

b) a percentage (determined by taking years of Contributory Credit as of Dec

divided by total Contributory Credit at retirement) of the amount, payable from the following charts (age used in chart should be age at date of termi

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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For Benefit Classes 1 – 14: 

Use age 60 amount from Twenty-Year Service Pension chart. 

For Benefit Class 15A: 

Age 25 Years 30 Years 

Any 0 1,000 

60-61 950 1,050 

62-64 1,050 1,125 

65+ 1,125 1,250 

For Benefit Class 15B: 

Age 25 Years 30 Years Any 0 1,000 

60-61 1,000 1,100 

62-64 1,100 1,250 

65+ 1,250 1,500 

For Benefit Class 15C (Phase I): 

Age 25 Years 30 Years Any 0 1,000 

57-59 900 1,125 

60-61 1,125 1,350 

62-64 1,225 1,500 

65+ 1,375 1,750 

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For Benefit Class 15C (Phase II):

Age 25 Years 30 Years Any 0 1,000 

57-59 1,000 1,250 60-61 1,250 1,600 62-64 1,350 1,750 65+ 1,500 2,000 

For Benefit Class 16: 

Age 20 Years 25 Years 30 Years 

Any 0 0 2,000 

57 900 1,200 2,000 

58 950 1,300 2,000 

59 1,000 1,400 2,000 

60 1,050 1,500 2,000 61 1,100 1,600 2,100 62 1,200 1,700 2,200 63 1,300 1,800 2,300 64 1,400 1,900 2,400 65+ 1,500 2,000 2,500 

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Contributory Credit Pensions Under Benefit Class 17A 

Years of Contributory Service

Age 20-24 25 26 27 28 29 30 31 32 33 34 35 

Any Age - 1,500 1,500 1,500 1,500 1,500 2,000 2,100 2,200 2,300 2,400 2

56 

- 1,500 1,600 1,600 1,600 1,600 2,000 2,100 2,200 2,300 2,400 2

57 900 1,500 1,600 1,700 1,700 1,700 2,000 2,100 2,200 2,300 2,400 258 950 1,500 1,600 1,700 1,800 1,800 2,000 2,100 2,200 2,300 2,400 259 1,000 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 260 1,050 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 261 1,100 1,600 1,600 1,700 1,800 1,900 2,100 2,100 2,200 2,300 2,400 262 1,200 1,700 1,700 1,700 1,800 1,900 2,200 2,200 2,200 2,300 2,400 263 1,300 1,800 1,800 1,800 1,800 1,900 2,300 2,300 2,300 2,300 2,400 264 1,400 1,900 1,900 1,900 1,900 1,900 2,400 2,400 2,400 2,400 2,400 2

65 & Up 1,500 2,000 2,000 2,000 2,000 2,000 2,500 2,500 2,500 2,500 2,500 2

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Contributory Credit Pensions Under Benefit Class 17B 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 35 & 

Any Age - - - - - - 2,500 2,600 2,700 2,800 2,900 3,0

55 - 1,500 1,500 1,500 1,500 1,500 2,500 2,600 2,700 2,800 2,900 3,056 - 1,500 1,600 1,600 1,600 1,600 2,500 2,600 2,700 2,800 2,900 3,057 900 1,500 1,600 1,700 1,700 1,700 2,500 2,600 2,700 2,800 2,900 3,058 950 1,500 1,600 1,700 1,800 1,800 2,500 2,600 2,700 2,800 2,900 3,059 1,000 1,500 1,600 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,900 3,060 1,050 1,500 1,600 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,900 3,061 1,100 1,600 1,600 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,900 3,062 1,200 1,700 1,700 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,900 3,063 1,300 1,800 1,800 1,800 1,800 1,900 2,500 2,600 2,700 2,800 2,900 3,064 1,400 1,900 1,900 1,900 1,900 1,900 2,500 2,600 2,700 2,800 2,900 3,0

65 & Up 1,500 2,000 2,000 2,000 2,000 2,000 2,500 2,600 2,700 2,800 2,900 3,0

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SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Central States, Southeast and So

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Contributory Credit Pensions Under Benefit Class 18 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 35 

Any Age - 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 3

50 650 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 351 700 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 352 750 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 353 800 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 354 850 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 355 900 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 356 950 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 357 1,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 358 1,050 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 359 1,100 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 360 1,150 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 361 1,200 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 362 1,300 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 363 1,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 364 1,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3

65 & Up 2,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3

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Contributory Credit Pensions Under Benefit Class 18 Plus 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 35 

Any Age - 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 

50 650 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 51 700 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 52 750 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 53 800 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 54 850 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,400 55 900 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 56 950 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 57 1,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 58 1,050 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 59 1,100 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 60 1,150 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 61 1,200 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 62 1,300 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 63 1,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 64 1,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 

65 & Up 2,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 

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Disability Pension: 

Eligibility: Under age 62 with 10 years of credited service and Benefit Class 4 or higher Amount: For Benefit Class 18: $650 per month plus $50 for each year that the age 

exceeded age 50 with a maximum benefit of $1,000. For other Benefit Classuntil death or recovery from disability. At age 65, a disabled participant manormal retirement benefit instead. 

Vesting: 

Eligibility: 5 years of vesting service Amount: Vested participants retiring after January 1, 1987 will get a Contribution-Base

Vested Pension is only for those retiring on or before January 1, 1987. 

Pre-Retirement Death Benefits: 

Survivors may only receive one non-disability death benefit. 

50% Surviving Spouse BenefitEligibility: Married and either a vested participant or eligible for an immediate pension. 

Amount: 50% of the pension that would have been payable under the Joint and 50% Su

option. 

60-Month Survivor BenefitEligibility: Active participant with 20 years of credited service, married or with dependen

Benefit Class 4 or higher. 

Amount: 60 months’ pension equal to the greater of $160 per month or the pension the 

could have received under the lifetime with limited surviving spouse payment 

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Lump-Sum Death BenefitEligibility: Active participant with 10 years of credited service. Amount: Amount $4,000 under Schedule B, $2,000 under Schedule A, or $10,000 unde

but not more than 50% of the contributions made for the participant. Survivor than one death benefit must elect which one to receive if not covered under Be

Disability Death BenefitEligibility: Receiving a disability pension Amount: $1,000 or 50% of spouse’s benefit Lump-Sum Disability BenefitEligibility: Age 45 with 10 years of credited service and not eligible for the disability penAmount: Amount $3,000 under Schedule B or $2,000 under Schedule A, but not more t

contributions made for the participant. 

Optional Forms of Payment: For single participants: 

 Single Life Annuity for members of Benefit Classes 4 and higher, with a $ Single Life Annuity for members of Benefit Classes below 4 and a benefit 

of Credit, with a $1,000 death benefit 

For married participants:  50% Joint and Survivor Pension (QJSA) with pop-up provision, reduced f

annuity 

 75% Joint and Survivor Pension (QOSA) with pop-up provision, reduced 

annuity 

 Single Life Annuity for members of Benefit Classes 4 and higher, with 60 

payments guaranteed or, if the spouse does not survive to the pensioner’s death benefit 

 Single Life Annuity for members of Benefit Classes below 4 and a benefit 

of Credit, with a $1,000 death benefit upon the pensioner’s death and a $5upon the spouse’s death 

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Benefit Transfer: Effective January 1, 2008, the responsibility to pay all benefits to non-retired U

of January 1, 2008 other than the Contribution-Based Pension Accrued Benefiwas transferred to the UPS/IBT Full-Time Pension Plan. 

Summary of Plan Changes Under Rehabilitation Plan: 

Primary Schedule Except for plan withdrawals, preserves all current benefit provisions. Annuall

contribution increases are required effective immediately after the expiration o

Bargaining Agreement. For 2008 agreements, the increases are 8% for the firsthe next three years, and 4% per year thereafter. Effective for retirements on oparticipants will not be granted a retirement date prior to age 57, and effective required contributions will be limited to $348 per week for each participant co

National Automobile Transporter Agreement and $342 per week for all other employer that qualifies as a New Employer under Section 2.2(b) of Appendix 

required to make additional contribution rate increases otherwise required by tPlan as of the date it qualifies as a New Employer.

Default Schedule Adjustable Benefits are eliminated or reduced to the maximum extent permitte

employees of contributing employers subject to the Default Schedule. Adjustathe Twenty-Year Service Pension, the Contributory Credit Pension, all disabilin pay status, and before retirement death benefits other than the 50% survivinEffective for retirements on or after July 1, 2011, the early retirement reductioSchedule are based on actuarially equivalent factors rather than 6% per year fr

commence prior to age 57. Annually compounded contribution increases of 4% 

effective immediately after the expiration of the Collective Bargaining Agreemthat qualifies as a New Employer under Section 2.2(b) of Appendix E of the Pto make additional contribution rate increases otherwise required by the Rehab

the date it qualifies as a New Employer.

Rehabilitation Plan Withdrawals When a contributing employer is no longer required to make employer contrib

Pension Fund under one or more of its Collective Bargaining Agreements as a 

members of a Bargaining Unit, its representatives, or the contributing employe

of that employer that have not yet commenced benefits shall be subject to the reductions of the Default Schedule. 

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Distressed Employer Schedule Adjustable Benefits are eliminated or reduced to the maximum extent permitte

employees of contributing employers subject to the Distressed Employer Scheparticipant that has achieved a minimum age of 55 and accrued a minimum of Contributory Credit as of the date of the Distressed Employer’s termination of Fund provided that the retirement is not prior to age 62. Adjustable Benefits inYear Service Pension, the Contributory Credit Pension, all disability benefits nstatus, and before retirement death benefits other than the 50% surviving spouretirement reductions are based on actuarially equivalent factors effective for rafter July 1, 2011. 

Changes in Plan Provisions The following plan provision was changed and is reflected in this valuation: 

 During the plan year ended December 31, 2013, 1,013 active participants 

vested participants were first reported to be covered under the Default SchEmployer Schedule, or were subject to the Adjustable Benefit reductions aRehabilitation Plan Withdrawal. As participants become subject to these schanges in benefits are treated as a plan change. 

5448218v3/10346.006

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