Bricklayers and Allied Craftworkers Local 5 New York 

Retirement Fund Pension Plan 

EIN: 14-6016608/PN: 001

Rehabilitation Plan Update – 2014 Plan Year 

I. Introduction and Background 

The Bricklayers and Allied Craftworkers Local 5 New York Retirement Fund Pension Plan (the 

“Plan”) was determined by the Plan’s actuary to be in “critical” status as of 1/1/2009. However, the 

Board elected to temporarily freeze the Plan’s Zone Status (and extend the funding improvement 

period) under WRERA in the 2008 “Endangered” status. As of 1/1/2010 the Plan was certified in 

“Critical” status and, a Rehabilitation Plan (“RP”) was developed with benefit cuts and contribution 

rate increases. 

Key Dates Summary:

January 1 PPA Status 

2008  Initial Status Seriously Endangered 

 Expiration of CBA(s) covering 75% of active participants: 5/31/2008 

 Funding Improvement Period (15 years for Orange Zone): 1/1/2009-12/31/2023 

 

2009  Initial Status Critical 

 Frozen Status (after application of WRERA) Seriously Endangered 

 

2010  Status Critical 

 Expiration of CBA(s) covering 75% of active participants: 5/31/2011 

 Adoption Period: 3/31/2010 - 12/31/2011 

 Rehabilitation Period: 1/1/2012 - 12/31/2021 

 

2011  Status Critical 

 Rehabilitation Plan Update “Safety Valve” Schedule 

 

1. Adopting and Duration of a Schedule 

Typically, with respect to each Collective Bargaining Agreement (“CBA”) that was in effect on 

the adoption date and after the bargaining parties received a copy of the original Rehabilitation 

Plan, the bargaining parties agree to adopt one of the schedules (Default or Alternative). If the 

bargaining parties fail to adopt a Schedule, then the Plan Sponsor must implement the Default 

Schedule (available upon request), which must take effect on the earlier of (i) the date the 

Secretary of Labor certifies that the parties are at an impasse, or (ii) the date which is 180 days 

after the date on which the CBAs on 1/1/2010 expire. 

The Alternative Schedule was agreed to and adopted for our Plan. Once the agreed to Schedule 

takes effect, it remains in effect for the duration of the CBA and is relied upon by the bargaining 

parties. When a CBA comes up for negotiation, it needs to be negotiated pursuant to the most 

recent update of this Rehabilitation Plan and the schedules within. 
Bricklayers and Allied Craftworkers Local 5 New York 

Retirement Fund Pension Plan 

EIN: 14-6016608/PN: 001

Rehabilitation Plan Update – 2014 Plan Year 

2. Updates to Schedules 

The Plan Sponsor must annually update the schedules and file the update with the Plan’s annual 

report under Section 104 of ERISA. The annual update reflects updated projections of assets, 

liabilities and funding standard account credit balances provided by the Plan’s actuaries, as well 

as a projection by the Plan’s actuary as to whether or not the Plan is projected to emerge from 

critical status by the end of the Rehabilitation Period. Such updates shall be adopted by the Plan 

Sponsor each critical year following the first critical year (2010). The updated schedules shall 

include additional actions, including updated contribution and benefit schedules, that the Plan 

Sponsor deems reasonable, and may be expected to enable the Plan to emerge from critical status 

by the end of the Rehabilitation Period. 

3. CBAs as of January 1, 2010 

The main Collective Bargaining Agreement as of January 1, 2010 expired on May 31, 2011. 

4. Explanation of why the Plan is not expected to emerge from Critical Status 

The slow economic recovery of the past two years continues to create a tremendous funding 

burden related to the loss in asset value and reduction in employment (and future contributions). 

As a result, the plan sponsor determined that, based on reasonable actuarial assumptions and upon 

exhaustion of all reasonable measures, the plan can not reasonably be expected to emerge from 

critical status by the end of the rehabilitation period. 

After reviewing the options, the Trustees believed that such required contribution increases would 

cause employers to withdraw from the Plan leading to insolvency, financial assistance from the 

PBGC, and benefit cuts. 

Based upon these results, the Trustees’ selection of the Alternative Schedule as permitted by IRC 

§432(e)(3)(A)(ii), also known as a “reasonable measures” schedule, which is intended to forestall 

insolvency continues in effect. 

 
Bricklayers and Allied Craftworkers Local 5 New York 

Retirement Fund Pension Plan 

EIN: 14-6016608/PN: 001

Rehabilitation Plan Update – 2014 Plan Year 

II. Alternative Schedule 

Benefit Changes

1. The following benefit changes were previously adopted effective January 1, 

2010: 

(i) The monthly Normal Retirement Benefit earned on and after January 1, 

2010 will depend on the date on which the Participant first earned Future 

Service Credit. If that date is prior to June 1, 2004, the benefit rate will be 

$50 for all Years of Future Service Credit after December 31, 2009. 

Otherwise, the benefit rate will be $37.50 for the first ten Years of Future 

Service Credit and $50.00 for all subsequent service on and after December 

31, 2009. The ten year period is measured from date of hire. 

(ii) A year of Future Service Credit is credited for each 1,000 hours, with 1/10 

of a Year credited for each 100 hours worked. No Future Service Credit 

will be credited if less than 200 hours are worked in a Plan Year. 

(iii) Unreduced Early Retirement at age 62 with 5 years of Vesting Service is 

eliminated from the Plan and an unreduced Early Retirement at age 62 with 

20 years of Future Service Credit, with no limitation on Service earned in 

each Plan Year is added. 

2. Effective January 1, 2012, accrued benefits are frozen and will equal the benefit 

accrued through December 31, 2011. 

3. Effective March 21, 2013 the following benefits for participants not yet in pay 

status as of March 21, 2013 will be suspended until 2017: 

(i) Early Retirement 

(ii) Disability 

(iii) The Pop-Up feature on the Joint & Survivor Benefits 

(iv) Return of Contributions Death Benefit 

Contribution Increase 

Effective January 1, 2013, the Trustees have decided to eliminate all future contribution increases.