i 

Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

CHECKLIST

Response Item

Number Description of Item

Page Number in 

Application

Yes 1. Does the application include an original signature of the plan sponsor 

or an authorized representative of the plan sponsor?

See section 2.01 of this revenue procedure.

0001,

0005,

0014

Yes 2. Does the application include a description of the proposed benefit 

suspension – calculated as if no other limitations apply – that includes:

• the suspension’s effective date (and its expiration date, if

applicable),

• whether the suspension provides for different treatment of

participants and beneficiaries,

• a description of the different categories or groups of individuals

affected, and

• how the suspension affects these individuals differently?

See section 2.02 of this revenue procedure.

0005

Yes 3. Does the application include a penalties-of-perjury statement signed 

by an authorized trustee on behalf of the board of trustees?

See Section 2.03 of this revenue procedure.

0006,

0014

Yes 4. Does the application include a statement, signed by an authorized 

trustee on behalf of the board of trustees, acknowledging that the 

application and the application’s supporting material will be publicly 

disclosed on the Treasury Department’s website?

See section 2.04 of this revenue procedure.

0006,

0014

Yes 5. Does the application include the plan actuary’s certification of critical 

and declining status and the supporting illustrations, including:

• the plan-year-by-plan-year projections demonstrating the

projected insolvency during the relevant period, and

• separately identifying the available resources (and the market

value of assets and changes in cash flow) during each of those

years?

See section 3.01 of this revenue procedure.

0006,

Ex. A (0015-0017)

Yes 6. Does the application include the plan actuary’s certification that, taking 

into account the proposed suspension and, if applicable, a proposed 

partition, the plan is projected to avoid insolvency if the suspension 

takes effect, and the supporting illustrations, including: 

• the plan-year-by-plan-year projections demonstrating projected

solvency during the relevant period,

• separately identifying the available resources (and the market

value of assets and changes in cash flow) during each of those

years?

See section 3.02 of this revenue procedure.

0007,

Ex. B (0018-0055)

Yes 7. Does the application include the plan sponsor’s determination of 

projected insolvency that includes the documentation set forth in 

section 5 of the revenue procedure?

See section 3.03 of this revenue procedure.

0007,

Ex. C (0056-0063)
ii

Response Item

Number Description of Item

Page Number in 

Application

Yes 8. Does the application include a demonstration that the limitations on 

individual suspensions are satisfied, including a description of each 

benefit based on disability, as defined under the plan, that is paid to 

an individual under the plan (without regard to whether the disability 

benefits are available to newly disabled participants) and calculations 

regarding:

• the guarantee-based limitation,

• the disability-based limitation,

• the age-based limitation, taking into account the guaranteebased limitation, and

• if applicable, the age-based limitation taking into account both

the guarantee-based limitation and the disability-based

limitation?

See section 4.01 of this revenue procedure.

0007-0008,

Ex. D (0064-0070)

Yes 9. Does the application include a demonstration that the proposed 

suspension is reasonably estimated to achieve the level necessary to 

avoid insolvency for the extended period, including illustrations 

regarding the plan’s solvency ratio and available resources?

See section 4.02(1) of this revenue procedure.

0008,

Ex. B(V) (0027-0029), 

Ex. B(XIII) (0050-0055), 

Ex. G (0088-0111)

N/A 10. Does the application include an illustration that the proposed 

suspension is reasonably estimated to achieve the level necessary to 

avoid insolvency for the extended period utilizing stochastic 

projections? (This illustration is optional if the plan is not required to 

appoint a retiree representative under § 432(e)(9)(B)(v)(I).)

See section 4.02(2) of this revenue procedure.

N/A

Yes 11. Does the application include a demonstration that the proposed 

suspension is not projected to materially exceed the level necessary 

to avoid insolvency, including:

• the plan-year-by-plan-year projections demonstrating

projected insolvency during the relevant period, and

• a separate identification of the available resources (and the

market value of assets and changes in cash flow) during each

of those years?

See section 4.03 of this revenue procedure.

0008,

Ex. B(VI) (0030-0032)

Yes 12. Does the application include a demonstration that the proposed 

suspension is equitably distributed, including:

• information on the effect of the suspension on the plan in the

aggregate,

• information on the effect of the suspension for different

categories or groups,

• a list of the factors taken into account,

• an explanation of why none of the factors listed in §

432(e)(9)(D)(vi) were taken into account (if applicable),

• for each factor taken into account that is not one of the factors

listed in § 432(e)(9)(D)(vi), an explanation why the factor is

relevant, and

• an explanation of how any difference in treatment among

categories or groups of individuals results from a reasonable

application of the relevant factors?

See section 4.04 of this revenue procedure.

0009,

Ex. B(XII) (0045-0049)
iii

Response Item

Number Description of Item

Page Number in 

Application

Yes 13. Does the application include a copy of the notices (excluding 

personally identifiable information) that meet the requirements under 

§ 432(e)(9)(F)?

See section 4.05(1) of this revenue procedure.

0009-0010,

Ex. E (0071-0083)

Yes 14. Does the application include a description of the efforts that are being 

taken to contact participants, beneficiaries in pay status, and alternate 

payees?

See section 4.05(2) of this revenue procedure.

0009

Yes 15. Does the application describe the steps the plan sponsor has taken to 

ensure that notices delivered electronically are reasonably accessible 

to the recipients?

See section 4.05(3) of this revenue procedure.

0009

Yes 16. Does the application include a list of each employer who has an 

obligation to contribute under the plan and each employee 

organization representing participants under the plan?

See section 4.05(4) of this revenue procedure.

0009-0010

Yes 17. Does the application include information on past and current measures 

taken to avoid insolvency?

See section 5.01 of this revenue procedure.

0010,

Ex. C (0056-0063)

Yes 18. Does the application include information regarding the plan factors 

described in § 432(e)(9)(C)(ii), for the past 10 plan years immediately 

preceding the plan year in which the application is submitted?

See section 5.02 of this revenue procedure.

0010,

Ex. C (0056-0063)

Yes 19. Does the application describe how the plan sponsor took into account 

— or did not take into account — the factors listed in section 5.02 of 

this revenue procedure in the determination that all reasonable 

measures were taken to avoid insolvency?

See section 5.03 of this revenue procedure.

0010,

Ex. C (0056-0063)

Yes 20. Does the application describe how the plan sponsor took into account

— or did not take into account — in the determination that all 

reasonable measures have been taken to avoid insolvency, the impact 

of:

• benefit and contribution levels on retaining active participants

and bargaining groups under the plan, and

• past and anticipated contribution increases under the plan on

employer attrition and retention levels?

See section 5.03 of this revenue procedure.

0010,

Ex. C (0056-0063)

Yes 21. Does the application include a discussion of any other factors the plan 

sponsor took into account including how and why those factors were 

taken into account?

See section 5.04 of this revenue procedure.

0010-0011,

Ex. C (0062-0063)

Yes 22. Does the application include a copy of the proposed ballot, excluding 

the information regarding the statement in opposition, the 

individualized estimate, and the voting procedures?

See section 6.01 of this revenue procedure.

0011,

Ex. F (0084-0087)
iv

Response Item

Number Description of Item

Page Number in 

Application

Yes 23. Does the application indicate whether the plan sponsor is requesting 

approval from PBGC of a proposed partition under § 4233 of ERISA?

See section 6.02 of this revenue procedure.

0011

N/A 24. If the answer to item 23 is yes, does the application specify the 

effective date of the proposed partition and include a plan-year-byplan-year projection of the amount of the reduction in benefit payments 

attributable to the partition?

See section 6.02 of this revenue procedure.

N/A

Yes 25. Does the application include:

• a description of each of the assumptions used in the projections 

required under §§ 3.01, 3.02, 4.02(1), 4.02(2), and 4.03 of this

revenue procedure,

• supporting evidence for selection of those assumptions, and

• an explanation of any differences among the assumptions used

for various purposes?

See section 6.03 and Appendix B of this revenue procedure.

0011,

Ex. B (0018-0055),

Ex. G (0088-0111)

Yes 26. Does the application describe the plan’s experience with certain critical 

assumptions, including a disclosure for each of the 10 plan years 

immediately preceding the application that separately identifies:

• the total contributions,

• the total contribution base units,

• the average contribution rates,

• the withdrawal liability payments, and

• the rate of return on plan assets?

See section 6.04 of this revenue procedure.

0011,

Ex. B(I) (0022)

Yes 27. Does the application include deterministic projections of the sensitivity 

of the plan’s solvency ratio throughout the extended period by taking 

into account the more conservative assumptions of investment 

experience and future contribution base units than assumed 

elsewhere in the application?

See section 6.05 of this revenue procedure.

0011,

Ex. B(VII-X) (0033-0043)

Yes 28. Does the plan include deterministic projections for each year in the 

extended period of:

• the value of plan assets,

• the plan’s accrued liability, and

• the plan’s funded percentage?

See section 6.06 of this revenue procedure.

0011,

Ex. B(XI) (0044)

Yes 29. Does the application include the plan sponsor’s representation that, if 

it receives the Treasury Department’s final authorization to suspend 

and then chooses to implement the suspension, it will also amend the 

plan:

• to provide that the suspension will cease upon the plan

sponsor’s failure to maintain a written record of its annual

determination that (i) all reasonable measures continue to be

taken to avoid insolvency and (ii) the plan would not be

projected to avoid insolvency without a suspension,

• to require that any future benefit improvements must satisfy §

432(e)(9)(E), and

• to specify that the plan sponsor will not modify these

amendments, notwithstanding any other provision of the plan

document?

See section 6.07 of this revenue procedure.

0012
v 

Response Item

Number Description of Item

Page Number in 

Application

Yes 30. Does the application indicate whether the plan is a plan described in § 

432(e)(9)(D)(vii) and, if it is, how that is reflected in the proposed 

benefit suspension?

See section 6.08 of this revenue procedure. 

0012

Yes 31. Does the application include a narrative statement of the reasons the 

plan is in critical and declining status?

See section 6.09 of this revenue procedure.

0012,

Ex. H (0112-0114)

Yes 32. Does the application include the required plan sponsor identification 

and contact information?

See section 7.01 of this revenue procedure. 

0012

Yes 33. Does the application include the required plan identification 

information?

See section 7.02 of this revenue procedure.

0012

Yes 34. Does the application include the required retiree representative 

information (if applicable)?

See section 7.03 of this revenue procedure.

0012

Yes 35. Does the application include required enrolled actuary information?

See section 7.04 of this revenue procedure.

0013

Yes 36. Does the application include a designation of power of attorney for 

each authorized representative who will represent the plan sponsor in 

connection with the application?

See section 7.05 and Appendix C of this revenue procedure.

0013,

Ex. I (0115-0119)

Yes 37. Does the application include:

• the required plan documents

• any recent amendments

• the summary plan description (SPD)

• any summary of material modifications, and

• the most recent determination letter?

See section 7.06 of this revenue procedure.

0013,

Ex. J (0120-0242)

Yes 38. Does the application include the required excerpts from the relevant 

collective bargaining agreements and side agreements?

See section 7.07 of this revenue procedure.

0013,

Ex. K (0243-0262)

Yes 39. Does the application include the required excerpts from the most 

recently filed Form 5500?

See section 7.08 of this revenue procedure.

0013,

Ex. L (0263-0310)

Yes 40. Does the application include the most recently updated rehabilitation 

plan?

See section 7.09 of this revenue procedure.

0013,

Ex. M (0311-0319)

Yes 41. Does the application include the two most recent actuarial valuation 

reports?

See section 7.10 of this revenue procedure.

0013,

Ex. N (0320-0391)

Yes 42. Does the application include this checklist, completed and placed on 

top of the application?

See section 7.11 of this revenue procedure and Appendix D.

0013,

i-vi
Response Item 

Number Description of Item 

NIA 43. If the application is being submitted for resubmission review, does

the application include:

• cross-references to information in the prior application with

respect to information that has not changed from the prior

application,

• a statement that the application is being submitted for

resubmission review, and

• the date on which the Treasury Department indicated that the

application is a candidate for resubmission review?

See section 8 of this revenue procedure. 

22 2% 2---4 

Authorized 

Mr.Rodney

Trustee 

�

on beha If of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

vi 

Date

Page Number in 

Application 

NIA 
Application for

Approval of Benefit Suspension 

Composition Roofers

Local 42 Pension Plan

Dated: June 28, 2019

ROOFERS42_0002
TABLE OF CONTENTS

Section 1. BACKGROUND AND PURPOSE

Section 2. APPLICATION PROCEDURES

2.01 - Standing to submit an application

2.02 - Terms of proposed benefit suspension

2.03 - Penalties of perjury

2.04 - Public disclosure

2.05 - Application submission

2.06 - Signature

2.07 - Duty to correct

Section 3. DEMONSTRATION THAT PLAN IS ELIGIBLE FOR SUSPENSION

3.01 - Plan actuary’s certification of critical and declining status

3.02 - Plan actuary’s certification that the Plan is projected to avoid insolvency

3.03 - Plan sponsor’s determination of projected insolvency

Section 4. DEMONSTRATION THAT THE PROPOSED SUSPENSION SATISFIES THE STATUTORY

REQUIREMENTS

4.01 - Demonstration that limitations on individual suspensions are satisfied

4.02 - Demonstration that the proposed suspension is reasonably estimated to enable the 

Plan to avoid insolvency

4.03 - Demonstration that the proposed suspension is reasonably estimated to not materially 

exceed the level necessary to avoid insolvency

4.04 - Demonstration that the proposed benefit suspension is distributed equitably

4.05 - Notice requirements

Section 5. PLAN SPONSOR DETERMINATION RELATING TO REASONABLE MEASURES TAKEN TO 

AVOID INSOLVENCY

5.01 - Measures taken to avoid insolvency

5.02 - Plan factors taken into account

5.03 - How plan factors were taken into account

5.04 - Other factors considered

Section 6. OTHER REQUIRED INFORMATION

6.01 - Ballot

6.02 - Partition

6.03 - Actuarial Assumptions used for Projections

6.04 - Ten-year experience for certain critical assumptions

6.05 - Demonstration of sensitivity of projections

6.06 - Projection of funded percentage

ROOFERS42_0003
6.07 - Plan sponsor certifications relating to plan amendments

6.08 - Whether the Plan is described in Section 432(e)(9)(D)(vii)

6.09 - Narrative Statement

Section 7. IDENTIFICATION AND BACKGROUND INFORMATION ON THE PLAN

7.01 - Plan Sponsor

7.02 - Plan identification

7.03 - Retiree representative

7.04 - Plan’s enrolled actuary

7.05 - Power of attorney

7.06 - Plan documents

7.07 - Collective bargaining and side agreements

7.08 - Annual return

7.09 - Rehabilitation plan

7.10 - Valuation reports

7.11 - Completed checklist

CONCLUSION, PERJURY STATEMENT, AND PUBLIC DISCLOSURE ACKNOWLEDGMENT

INDEX OF EXHIBITS

Exhibit A: PLAN ACTUARY’S CERTIFICATION OF CRITICAL AND DECLINING STATUS 

Exhibit B: PLAN ACTUARY’S SUPPLEMENTAL ACTUARIAL INFORMATION

Exhibit C: PLAN SPONSOR’S DETERMINATION OF PROJECTED INSOLVENCY

Exhibit D: DEMONSTRATION THAT LIMITATIONS ON INDIVIDUAL SUSPENSIONS ARE SATISFIED

Exhibit E: NOTICES

Exhibit F: PROPOSED BALLOT

Exhibit G: INFORMATION ON ACTUARIAL ASSUMPTIONS AND METHODS

Exhibit H: NARRATIVE STATEMENT

Exhibit I: POWER OF ATTORNEY

Exhibit J: PLAN DOCUMENTS

Exhibit K: COLLECTIVE BARGAINING AGREEMENT

Exhibit L: ANNUAL REPORT/FORM 5500

Exhibit M: REHABILITATION PLAN

Exhibit N: VALUATION REPORTS

ROOFERS42_0004
Section 1. BACKGROUND AND PURPOSE

Subject to Section 432(e)(9) of the Internal Revenue Code of 1986 (the “Code”) and the 

Department of Treasury regulations found at 26 CFR §1.432(e)(9)-1 (the “Regulations”), the plan 

sponsor of a multiemployer plan that is in critical and declining status (within the meaning of 

Section 432(b)(6)) for a plan year may, by plan amendment adopted in the plan year, implement 

a suspension of benefits that the plan sponsor deems appropriate. Such an amendment is 

permitted notwithstanding the anti-cutback provisions of Section 411(d)(6).

In accordance with the instructions and guidance from the Code, the Regulations and Revenue 

Procedure 2017-43, the Board of Trustees (the “Board”) for the Composition Roofers Local 42 

Pension Plan (the “Plan”) respectfully submits this application and the accompanying Exhibits to 

the Secretary of the Treasury to approve the proposed plan for benefit suspension.

As set forth in the application, the Board has evaluated and considered all available options, and 

has determined the proposed benefit suspension is in the best interest of all participants and 

beneficiaries. 

Section 2. APPLICATION PROCEDURES

2.01 - Standing to submit an application

This application for approval of a proposed benefit suspension is being submitted by the Joint 

Board of Trustees for the Composition Roofers Local 42 Pension Plan (the “Plan Sponsor”). The 

application has been signed and dated by a labor and management trustee, each of whom are 

current members of the Board. 

2.02 - Terms of proposed benefit suspension

(1) Effective Date of Proposed Suspension - The Board would propose that the effective

date for the suspension be April 1, 2020. All actuarial calculations and demonstrations

contained in the attached Exhibits assume benefit suspensions begin April 1, 2020.

(2) Expiration Date - The benefit suspension is presumed to continue indefinitely.

(3) Proposed Suspension - Following consultation with the Plan actuary and subject to the

individual and aggregate limitations of Section 432(e)(9)(D), the Board proposes a uniform

45% benefit suspension for all participants, beneficiaries, alternate payees and retirees.

The proposed suspension does not provide for different treatment of participants and

beneficiaries, other than as a result of the individual limitations.

ROOFERS42_0005
2.03 - Penalties of perjury

The required penalties of perjury statement is included in the “Conclusion, Perjury Statement 

and Public Disclosure” section of this Application. 

2.04 - Public disclosure

The required public disclosure acknowledgment is included in the “Conclusion, Perjury Statement 

and Public Disclosure” section of this Application.

2.05 - Application submission

The application will be submitted in the proper format to www.treasury.gov/mpra. 

2.06 - Signature

All signatures will be submitted electronically in PDF format. The Board understands a stamped 

signature is not acceptable.

2.07 - Duty to correct

In the event any error is discovered following submission, prompt notice will be provided to the 

Treasury Department. The Board further understands that in the event Treasury discovers an 

error in the application, it may request additional materials.

Section 3. DEMONSTRATION THAT PLAN IS ELIGIBLE FOR SUSPENSION

3.01 - Plan actuary’s certification of critical and declining status

The plan actuary’s certification required under Section 432(b)(3)(A) that the plan is in critical and 

declining status as defined in Section 432(b)(6) for the plan year in which the application is 

submitted is included in Exhibit A. Documentation supporting the actuarial certification of status 

has been included with the certification, including a plan-year-by-plan-year projection of the 

available resources as defined in Section 418E(b)(3) and the benefits under the plan, 

demonstrating that the plan is projected to become insolvent during the 2030 Plan Year. The 

plan-year-by-plan-year projection separately identifies the market value of assets as of the 

beginning and end of each plan year in the relevant period and the following cash-flow items for 

each of those years: (1) contributions; (2) withdrawal liability payments, separately identifying 

those payments that are attributable to prior withdrawals and those payments that are 

attributable to assumed future withdrawals; (3) benefit payments, separately identifying benefit 

payments with respect to current retirees and beneficiaries, terminated vested participants who 

are not currently receiving benefits, currently active participants, and future new entrants; (4) 

administrative expenses; and (5) net investment returns.

ROOFERS42_0006
3.02 - Plan actuary’s certification that the Plan is projected to avoid insolvency

The plan actuary’s certification to the Board of Trustees under Section 432(e)(9)(C)(i) that the 

plan is projected to avoid insolvency within the meaning of Section 418E, taking into account the 

proposed benefit suspension and assuming that the proposed suspension continues indefinitely 

is included in Exhibit B. Documentation supporting the actuarial certification under Section

432(e)(9)(C)(i) is included with the certification, including a plan-year-by-plan-year projection of 

the available resources within the meaning of Section 418E(b)(3) and the benefits due under the 

plan demonstrating the avoidance of insolvency of the plan over the extended period described 

in CFR 1.432(e)(9)-1(d)(5)(ii)(C). The plan-year-by-plan-year projection separately identifies the 

market value of assets as of the beginning and end of the initial period and each subsequent plan 

year in the extended period and the following cash flow items for the initial period and each of 

those plan years: (1) contributions; (2) withdrawal liability payments, separately identifying those 

payments that are attributable to prior withdrawals and those payments that are attributable to 

assumed future withdrawals; (3) benefit payments, separately identifying benefit payments with 

respect to current retirees and beneficiaries, terminated vested participants who are not 

currently receiving benefits, currently active participants, and future new entrants; (4) 

administrative expenses; and (5) net investment returns.

3.03 - Plan sponsor’s determination of projected insolvency

As required by Section 432(e)(9)(C)(ii), the Board has determined that the Plan would not be 

projected to avoid insolvency if no suspension of benefits were applied under the plan, even 

though all reasonable measures to avoid insolvency have been taken. The determination is 

attached as Exhibit C and includes the documentation set forth in Section 5 of this revenue 

procedure.

Section 4. DEMONSTRATION THAT THE PROPOSED SUSPENSION SATISFIES THE STATUTORY 

REQUIREMENTS

4.01 - Demonstration that limitations on individual suspensions are satisfied

A demonstration of how the proposed suspension satisfies the individual limitations is attached 

as Exhibit D. The attached Exhibit includes a sample calculation applying the guarantee-based 

limitation under Section 432(e)(9)(D)(i) of the Code for an individual currently receiving benefits, 

a contingent beneficiary of an individual currently receiving benefits, and a future retiree. Each 

sample calculation identifies how the monthly benefit guaranteed under Section 4022A of ERISA 

is calculated. The calculations also identify the extent, if any, to which the monthly guaranteed 

benefit calculated under Section 4022A of ERISA is reduced on account of any limitations or 

exclusions. 

ROOFERS42_0007
Exhibit D contains a description of each benefit based on disability, as defined under the plan, 

that is paid to an individual under the plan (including disability benefits that are not available to 

newly disabled participants), and for each type of benefit based on disability, a sample calculation 

applying the disability-based limitation under § 432(e)(9)(D)(iii) of the Code for an individual 

currently receiving benefits, a contingent beneficiary of an individual currently receiving benefits, 

and a future retiree. The sample calculation shows how the plan determines the extent to which 

any benefit paid with respect to a participant who commenced (or will commence) benefits as a 

result of disability is treated as a benefit based on disability.

Exhibit D also contains sample calculations applying the age-based limitation under § 

432(e)(9)(D)(ii). The sample calculations show how the proposed suspension satisfies the agebased limitation taking into account the guarantee-based limitation. The proposed suspension 

does not provide for different treatment of participants and beneficiaries (other than as a result 

of application of the individual limitations).

The demonstration does not include any personally identifiable information. 

4.02 - Demonstration that the proposed suspension is reasonably estimated to enable the 

Plan to avoid insolvency

A demonstration that, in accordance with Section 432(e)(9)(D)(iv), the proposed benefit 

suspension is reasonably estimated to enable the Plan to avoid insolvency is attached as Exhibit 

B(V). The Composition Roofers Local 42 Pension Plan is not a plan described in Section

432(e)(9)(B)(v)(I) and it is not required to use stochastic projections in the demonstration 

required by Rev. Proc. 2017-43, Section 4.02. Information on the actuarial assumptions used for 

the illustrations is contained in Exhibit B(XIII) and Exhibit G. 

4.03 - Demonstration that the proposed suspension is reasonably estimated to not materially 

exceed the level necessary to avoid insolvency

A demonstration that, in accordance with Section 432(e)(9)(D)(iv), the proposed benefit 

suspension is reasonably estimated to not materially exceed the level necessary to enable the 

plan to avoid insolvency is attached as Exhibit B(VI). For this purpose, the assumptions used are 

the same as those used in Section 4.02 of this application. The demonstration includes an 

illustration, prepared on a deterministic basis, of the plan’s available resources and solvency ratio 

showing that the proposed suspension would not reasonably be estimated to enable the plan to 

avoid insolvency if the dollar amount of the proposed suspension for each participant and 

beneficiary were reduced (but not below zero) by the greater of— (1) five percent of the 

reduction in the periodic payment proposed for that participant or beneficiary; or (2) two percent 

of the participant’s or beneficiary’s periodic payment determined without regard to the 

reduction proposed in the application.

ROOFERS42_0008
4.04 - Demonstration that the proposed benefit suspension is distributed equitably 

The Board evaluated the factors listed in Section 432(e)(9)(D)(vi)(I) through (XI), but ultimately 

determined to propose a 45% reduction to the entire plan population. There is no group or 

category that will be treated differently with respect to the proposed benefit suspension. As 

such, the Board believes the proposed benefit suspension is distributed in an equitable 

manner. The Board has extended the limitation on suspension for disability benefits to the 

spouses of deceased disability benefit retirees. Aggregate plan information concerning the 

participants, beneficiaries and alternate payees; the average monthly benefit before and 

after suspension (taking into account the individual limitations); the present value of the 

reduction and distribution of the benefit suspensions is attached as Exhibit B(XII). 

4.05 - Notice requirements 

A copy of each type of actual notice that has been or will be given to participants, beneficiaries, 

employers that have an obligation to contribute within the meaning of Section 4212(a) of ERISA, 

and each employee organization representing participants under the plan is attached as Exhibit 

E. These notices do not include any personally identifying information.

The following efforts are being made to contact participants, beneficiaries and alternate payees: 

• The Administrator is working with the Union to update the list of current

addresses.

• To the extent the Administrator is not able to find a current address, the Plan will

use a commercial locator service in an effort to reach all interested parties.

• The Board has hired a third-party digital media company to establish a website to

communicate with interested parties. The first page that visitors will see on this

site is a pop-up message explaining the importance of contacting the

Administrator to supply an updated address.

All notices will be sent via regular U.S. Mail. Any electronic delivered notices will be sent as a 

supplement to regular mailings, and only to those who opt-in to receive such notices.

The employers that have an obligation to contribute within the meaning of Section 4212(a) of 

ERISA are as follows:

AW Farrell & Son, Inc. Kalkreuth Roofing & Sheet Metal

745 Us Highway 50 8345 Green Meadows Drive N 

Milford, OH 45150 Lewis Center, OH 43035

Dalton Roofing Co. Roth Bros., Inc.

4477 Eastern Avenue 3847 Crum Road

Cincinnati, OH 45226 Youngstown, OH 44515

ROOFERS42_0009
Imbus Roofing Co., Inc. WM Kramer & Son, Inc.

5 Charlin Drive 9171 Harrison Pike #12

Wilder, KY 41076 Cleves, OH 45002

The employee organization representing Plan participants is:

Roofers Local 42

1010 Yale Avenue

Cincinnati, OH 45206 

Section 5. PLAN SPONSOR DETERMINATION RELATING TO REASONABLE MEASURES TAKEN TO 

AVOID INSOLVENCY

5.01 - Measures taken to avoid insolvency

The Board has determined that the Plan cannot avoid insolvency if no suspension of benefits 

were applied under the Plan, even though all reasonable measures to avoid insolvency have been 

taken. A detailed description of the measures taken over the past 10 plan years to avoid 

insolvency is included in Exhibit C. 

5.02 - Plan factors taken into account

The Board has determined that the Plan cannot avoid insolvency if no suspension of benefits 

were applied under the Plan, even though all reasonable measures to avoid insolvency have been 

taken. Specific information concerning the factors taken into account by the Board in making this 

determination has been included in Exhibit C. 

5.03 - How plan factors were taken into account

The Board has determined that the Plan cannot avoid insolvency if no suspension of benefits 

were applied under the Plan, even though all reasonable measures to avoid insolvency have been 

taken. Information on how the plan factors were taken into account is included in Exhibit C. 

5.04 - Other factors considered

The Board understands the difficulty the MPRA suspension will place upon those close to 

retirement, as well as the current retirees, beneficiaries and some alternate payees. However, 

the MPRA suspension is still preferable to the deeper cuts that would be necessary when PBGC 

begins providing financial assistance to the Plan. In addition, the Board wanted to shield the 

disabled and older retirees, beneficiaries and alternate payees from cuts that would be required 

under the PBGC rules. Finally, the Trustees are aware of the financial challenges facing the PBGC 

multiemployer program and believe it is unwise to expose the Plan’s participants, retirees, 

beneficiaries and alternate trustees to the potentially catastrophic results of PBGC insolvency. 

ROOFERS42_0010
No one associated with the Plan is eager to implement the MPRA option, but it is the best 

alternative currently available to the Trustees. 

Section 6. OTHER REQUIRED INFORMATION

6.01 - Proposed Ballot

Exhibit F contains a proposed ballot intended to satisfy the requirements of Section

432(e)(9)(H)(iii) (without the statement in opposition to the proposed benefit suspension 

described in Section 432(e)(9)(H)(iii)(II) or the individualized estimate that was provided as part 

of the notice described in Section 432(e)(9)(F) and the voting procedures).

6.02 - Partition

The Composition Roofers Local 42 Pension Plan is not seeking approval of a proposed partition.

6.03 - Actuarial Assumptions Used for Projections

Exhibit G includes a description of each of the assumptions used in the projectionsrequired under 

Sections 3.01, 3.02 and 4.02; supporting evidence for the selection of those assumptions; and to 

the extent different assumptions were used for different purposes, an explanation of any 

differences among the assumptions used for various purposes.

6.04 - Ten-year Experience for Certain Critical Assumptions

With respect to each of the 10 plan years immediately preceding the plan year in which the 

application is submitted, Exhibit B(I) separately identifies (1) total contributions; (2) total 

contribution base units; (3) average contribution rates; (4) withdrawal liability payments; and (5) 

rate of return on plan assets.

6.05 - Demonstration of sensitivity of projections

Exhibit B(VII-X) includes deterministic projections of the sensitivity of the Plan’s solvency ratio 

throughout the extended period to certain key assumptions and provides the separate 

projections required by Rev. Proc. 2017-43, Section 6.05. 

6.06 - Projection of funded percentage

Attached as Exhibit B(XI) is an illustration, prepared on a deterministic basis, of the projected 

value of plan assets, the accrued liability of the plan (calculated using the unit credit funding 

method) and the funded percentage for each year in the extended period. 

ROOFERS42_0011
6.07 - Plan sponsor certifications relating to plan amendments

The Board of Trustees hereby certifies that if it receives final authorization to implement the 

suspension and chooses to implement the authorized suspension, then, in addition to the plan 

amendment implementing the suspension, the following plan amendments will be timely 

adopted and not modified at any time thereafter before the suspension of benefits expires: (1) a 

plan amendment providing that in accordance with Section 432(e)(9)-(c)(ii) the benefit 

suspension will cease as of the first day of the first plan year following the plan year in which the 

plan sponsor fails to maintain a written record of its determination that both: (a) all reasonable 

measures to avoid insolvency continue to be taken during the period of the benefit suspension; 

and (b) the plan would not be projected to avoid insolvency if no suspension of benefits were 

applied under the plan; and (2) a plan amendment providing that any future benefit 

improvements must satisfy the requirements of § 432(e)(9)(E).

6.08 - Whether the Plan is described in Section 432(e)(9)(D)(vii)

The Plan is not a plan described in Section 432(e)(9)(D)(vii).

6.09 - Narrative Statement

A narrative statement of the reasons the plan is in critical and declining status is included as 

Exhibit H. 

Section 7. IDENTIFICATION AND BACKGROUND INFORMATION ON THE PLAN

7.01 - Plan Sponsor

The Plan Sponsor is the Joint Board of Trustees for the Composition Roofers Local 42 Pension 

Plan. The address of the Board is 205 W 4th Street, Suite #225, Cincinnati, OH 45202. The 

telephone number is (513) 381-6886 or (800) 832-7113. An email address for the Plan Sponsor is 

info@r42pensionrecovery.com. The Plan’s EIN is 31-6127285. The Plan Sponsor does not have a 

separate EIN. 

7.02 - Plan identification

The Plan name is Composition Roofers Local 42 Pension Plan. The EIN is 31-6127285 and the Plan

Number is 001. 

7.03 - Retiree representative

The Board has not elected to appoint a retiree representative, but one current Trustee is a retiree 

receiving benefits from the Plan. 

ROOFERS42_0012
7.04 - Plan’s enrolled actuary

The Plan’s enrolled actuary and contact information: 

Jason Birkle, EA, MAAA, ASA (Enrollment Number: 17-07856)

Cuni, Rust & Strenk

4555 Lake Forest Drive, Suite 620

Cincinnati, OH 45242

Ph: (513) 891-0270

jason.birkle@crsact.com

7.05 - Power of attorney

See Exhibit I. The Authorized Representatives are Michael Ledbetter of Ledbetter Parisi LLC and 

Jason Birkle EA, MAAA, ASA, of Cuni, Rust & Strenk.

7.06 - Plan documents

The most recent plan document, amendments, summary plan description, summaries of material 

modification and most recent determination letter are attached as Exhibit J. 

7.07 - Collective bargaining and side agreements

The relevant portions of the collective bargaining and participation agreements are attached as 

Exhibit K. 

7.08 - Annual return

Attached as Exhibit L are excerpts from the most recently filed Form 5500, including:

(1) Pages 1 and 2 of the Form 5500, without attachments or schedules;

(2) The Schedule MB, including attachments;

(3) The Schedule R, including attachments; and

(4) The accountant’s report under ERISA Section 103(a)(3).

7.09 - Rehabilitation plan

The most recently updated rehabilitation plan is attached as Exhibit M. 

7.10 - Valuation reports

The two most recent actuarial valuation reports are attached as Exhibit N. 

7.11 - Completed checklist

The completed checklist signed by the Trustees has been completed and placed on top of the 

application. 

ROOFERS42_0013
CONCLUSION, PERJURY STATEMENT AND PUBLIC DISCLOSURE 

The Board believes this application meets the requirements set forth in Section 432(e)(9)(C) 

through (F) but would request any questions or concerns be addressed with our Authorized 

Representatives shown in Exhibit I. The Board appreciates the efforts of those associated with 

the review of this application. 

Under penalties of perjury, we declare that we have examined this Application, including 

accompanying documents, and, to the best of our knowledge and belief, the request contains all 

the relevant facts relating to the request, and such facts are true, correct, and complete. We are 

aware that pursuant to Section 432(e)(9)(G)(ii), the application for approval of the proposed 

suspension of benefits, and the Application's supporting material, will be publically disclosed 

through publication on the Treasury Department website. 

Respectfully Submitted, 

Mr. Thomas Dalton 

Authorized Trustee on behalf of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

~e2 71 '2i 

Mr. Rodney Toofe 

Authorized Trustee on behalf of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

ROOFERS42_0014
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT A 

PLAN ACTUARY’S CERTIFICATION OF CRITICAL AND DECLINING STATUS

ROOFERS42_0015
 CUNI, RUST & STRENK

2019 ACTUARIAL CERTIFICATION OF FUNDED STATUS 

As Required under IRC § 432(b)(3) as Added by the Pension Protection Act of 2006 

Plan Identification 

Composition Roofers Local No. 42 Pension Plan (“Plan”) 

205 West Fourth Street, Suite 225 

Cincinnati, OH 45202 

(513) 381-6886

EIN/PN: 31-6127285/001

Plan Year: January 1, 2019 – December 31, 2019

Information on Plan Status 

As of January 1, 2019, I hereby certify that the Plan is Critical and Declining as defined by the Pension 

Protection Act of 2006 (PPA) as amended by the Multiemployer Pension Reform Act of 2014 (MPRA) 

and is meeting the annual standards required under its updated Rehabilitation Plan which was designed to 

forestall the Plan’s insolvency. 

This certification has been prepared based on the Plan’s January 1, 2018 Actuarial Valuation and 

unaudited December 31, 2018 financial statements that were prepared by the Plan Administrator. The 

January 1, 2018 Actuarial Valuation was projected to January 1, 2019 for determination of the Plan’s 

funded percentage and additional projections of later years were used to determine the Plan’s solvency. 

Anticipated future Plan contributions are based on 242,000 hours worked per year. It is assumed that 

participants exiting the Plan are replaced by new entrants. All other assumptions used along with the Plan 

Provisions reflected in this determination are summarized in the Plan’s January 1, 2018 Actuarial 

Valuation Report. 

Actuarial Certification 

I hereby certify that the projection of the Plan’s most recent Actuarial Valuation presents fairly the 

actuarial position of the Plan as of January 1, 2019. In my opinion, the assumptions used to determine the 

Plan’s 2019 PPA funded status are individually reasonable based on Plan experience and represent my 

best estimate of anticipated future experience under the Plan. The projection of the January 1, 2018 

Actuarial Valuation has been performed in accordance with generally accepted actuarial principles and 

practices and the undersigned meets the qualification standards of the American Academy of Actuaries 

necessary to render an actuarial opinion. 

Respectfully submitted, 

Jason C. Birkle, EA, MAAA, ASA 

Enrollment Number: 17-07856 

Cuni, Rust & Strenk 

4555 Lake Forest Drive, Suite 620 

Cincinnati, OH 45242 

(513) 891-0270

March 29, 2019 

ROOFERS42_0016
Illustration Supporting 2018 Pension Protection Act of 2006 (PPA) Actuarial Certification of Funded Status

Plan Name: Composition Roofers Local No. 42 Pension PlanEIN: 31-6127285PN: 0012019 PPA Funded Status = Critical and Declining. 2019 PPA Funded Percentage < 65%, Funding Deficiency in 2018, and Projected Insolvency in 2030.

Actuarial PPA PPA Prior

1/1 Value of Accrued Funded 12/31 Hourly Minimum Expected Asset

Plan Assets Liability % Credit Contribution Required Hours Expected Return

Year (1) (2) (1) / (2) Balance Rate Contribution Worked Contributions %

2018 $26,405,030 $50,475,736 52% $134,091 $5.20 $2,431,667 (1) 249,969 $1,137,875 -4.7% Unaudited (2)

2019 $24,320,330 $50,447,340 48% ($1,254,681) $5.40 $4,137,491 242,000 $1,144,939 6.5% Projected2020 $22,155,074 $50,375,170 44% ($2,955,927) $5.60 $6,000,582 242,000 $1,188,281 6.5% Projected2021 $20,515,888 $50,136,064 41% ($4,774,290) $5.80 $7,986,582 242,000 $1,231,622 6.5% Projected2022 $18,774,926 $49,818,297 38% ($6,715,562) $6.00 $10,070,713 242,000 $1,274,964 6.5% Projected2023 $16,538,859 $49,363,051 34% ($8,754,965) $6.20 $12,262,180 242,000 $1,318,306 6.5% Projected2024 $14,739,457 $48,811,653 30% ($10,901,704) $6.20 $14,819,495 242,000 $1,343,588 6.5% Projected2025 $12,824,294 $48,202,600 27% ($13,432,928) $6.20 $17,914,202 242,000 $1,343,588 6.5% Projected2026 $10,743,229 $47,470,794 23% ($16,527,635) $6.20 $21,150,819 242,000 $1,343,588 6.5% Projected2027 $8,490,230 $46,625,551 18% ($19,764,252) $6.20 $24,570,095 242,000 $1,343,588 6.5% Projected2028 $6,072,045 $45,674,661 13% ($23,183,528) $6.20 $28,444,638 242,000 $1,343,588 6.5% Projected2029 $3,510,700 $44,666,726 8% ($27,058,071) $6.20 $32,548,939 242,000 $1,343,588 6.5% Projected2030 $812,732 $43,620,621 2% ($31,162,372) $6.20 $36,707,466 242,000 $1,343,588 6.5% Projected

(1) January 1, 2018 Actuarial Valuation results.(2) Estimated based on the Plan's December 31, 2018 financial statements.

ROOFERS42_0017
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT B 

PLAN ACTUARY’S SUPPLEMENTAL ACTUARIAL INFORMATION

ROOFERS42_0018
ROOFERS42_0019
Board of Trustees 

CUNI, RUST & STRENK 

ACTUARIAL CONSULTING 

July 3, 2019 

Composition Roofers Local 42 Pension Plan 

Dear Trustees: 

As requested, this Report provides the Supplemental Actuarial Information outlined in Revenue 

Procedure 2017-43 for submission of an application to suspend benefits under the Multiemployer Pension 

Reform Act of 2014 (MPRA). This information has been prepared based on our understanding of the 

Trustees' Pension Recovery Program effective April 1, 2020 submitted on behalf of the Composition 

Roofers Local 42 Pension Plan ("Plan") and IRC §432( e)(9). 

The methods employed and the results developed are intended solely for the purpose of demonstrating 

that the proposed benefit suspensions outlined in the application are reasonably estimated to enable the 

Plan to avoid insolvency. The Plan provisions, assumptions and methods used in this application, except 

where otherwise stated, are summarized in Exhibit Xill. Determinations for purposes other than those 

expressly stated may be significantly different from the results shown in this Report. 

The information presented in this Report is based on the Plan's participant data as of January 1, 2018 and 

unaudited financials, Reviewed by Independent Accountants, as of March 31, 2019. In preparing this 

Report, we have relied on the Plan Administrator and Plan Auditor's representations that the information 

that they have supplied is both accurate and complete. The expected contribution base units have been 

developed based on information provided by the Board of Trustees. If any of this information is 

inaccurate or incomplete, the results shown in this Report could materially change. 

Pursuant to §432(e)(9)(C)(i) of the Code, I hereby certify that the Plan is projected to avoid insolvency 

within the meaning of §4 l 8E throughout the extended period of 30 years, taking into account the 

proposed benefit suspension and assuming that the proposed suspension continues indefinitely. 

I hereby certify that the Plan's most recent Actuarial Valuation and Actuarial Certification of Plan Status 

fairly present the actuarial position of the Plan. In our opinion, the assumptions used to determine Plan 

liabilities and costs are individually reasonable based on Plan experience and represent our best estimate 

of anticipated future experience under the Plan. The projections and calculations shown in this Report 

have been performed in accordance with generally accepted actuarial principles and practices and the 

undersigned meet the qualification standards of the American Academy of Actuaries necessary to render 

an actuarial opinion. 

Respectfully submitted, 

CUNI, RUST & STRENK 

{)-¢. .. , 

Jason C. Birkle, EA, MAAA, ASA 

Lead Actuary 

TELEPHONE (513) 891-0270 4555 LAKE FOREST DRIVE SUITE 620 

CINCINNATI, OH 45242 

FAX (513) 792-3082 

ROOFERS42_0020
Table of Contents

Composition Roofers Local 42 Pension Plan

Exhibit I Past Experience for Certain Critical AssumptionsExhibit II Development of Projected December 31, 2020 Market Value of Assets with Proposed SuspensionExhibit III Projected Total Contribution Base Units and Average Contribution RatesExhibit IV Deterministic Projection of Current Plan without Proposed SuspensionExhibit V Deterministic Projection of Proposed SuspensionExhibit VI Deterministic Projection of Similar But Smaller Proposed SuspensionExhibit VII Deterministic Projection of Proposed Suspension: Assuming 1.00% Lower Annual Rate of ReturnExhibit VIII Deterministic Projection of Proposed Suspension: Assuming 2.00% Lower Annual Rate of ReturnExhibit IX Deterministic Projection of Proposed Suspension: Assuming Positive 0.15% Trend in Annual Contribution Base UnitsExhibit X Deterministic Projection of Proposed Suspension: Assuming Negative 0.85% Trend in Annual Contribution Base UnitsExhibit XI Deterministic Projection of Funded Percentage of Proposed SuspensionExhibit XII Participant InformationExhibit XIII Plan Provisions, Assumptions & Methods

ROOFERS42_0021
Exhibit I: Past Experience for Certain Critical Assumptions

Composition Roofers Local 42 Pension Plan

1/1

Plan

Year

Total

Contributions

Total

Contribution

Base Units

Average

Contribution

Rate

8/1

Hourly

Contribution

Rate

Withdrawal

Liability

Payments

Rate of Return

on Plan Assets

2006 $997,910 318,975 $3.13 $3.40 $0 13.5% 2007 $1,053,854 332,523 $3.17 $3.40 $0 6.4% 2008 $957,021 292,345 $3.27 $3.40 $0 (28.7%)2009 $796,509 245,564 $3.24 $3.40 $0 26.9% 2010 $779,323 227,922 $3.42 $3.60 $0 12.0% 2011 $739,693 213,183 $3.47 $3.80 $0 (2.5%)2012 $1,027,673 218,407 $4.71 $4.00 $6,572 15.4% 2013 $858,064 214,121 $4.01 $4.20 $19,716 12.9% 2014 $895,300 222,413 $4.03 $4.40 $19,716 2.0% 2015 $965,222 231,931 $4.16 $4.60 $19,716 (4.2%)2016 $1,060,950 245,741 $4.32 $4.80 $19,716 6.0% 2017 $1,132,719 259,028 $4.37 $5.00 $21,359 13.7% 2018 $1,133,418* 248,990** $4.55 $5.20 $18,073 (4.7%)* 

Average Base Unit Trend (2009-2018): 0.15% 

* Based on December 31, 2018 unaudited financial statements, Reviewed by Independent Accountants.

** Estimated based on Reviewed December 31, 2018 unaudited financial statements and Rehabilitation Plan.

ROOFERS42_0022
Exhibit II: Development of Projected December 31, 2020 Market Value of Assets with Proposed Suspension

Composition Roofers Local 42 Pension Plan

 The Market Value of Assets as of January 1, 2018 is based on the financial statements as of that date from the Plan's Auditor. The Market Value of Assets as of

January 1, 2019, and April 1, 2019 are based on the unaudited financial statements as of those dates, Reviewed by Independent Accountants.

 Cash flow items through March 31, 2019 are derived from the Reviewed unaudited financial statements. Estimated employer contributions from April 1, 2019 through December 31, 2020 are the total annual expected contributions (based on an hours assumption of

250,000). For the April 1, 2019 to December 31, 2019 period, these are reduced by the contributions already received between January 1, 2019 and March 31, 2019.

 Estimated benefit payments from April 1, 2019 through December 31, 2019 are the total expected regular benefit payments of $3,664,035 for 2019, reduced by

actual benefit payments already made between January 1, 2019 and March 31, 2019, adjusted for one-time net benefit corrections of $55,593.

 Estimated benefit payments from January 1, 2020 to March 31, 2020 are one quarter of the benefit payments expected to be paid in 2020, if no suspension were

to take place.

 Estimated benefit payments from April 1, 2020 to December 31, 2020 are three quarters of the benefit payments expected to be paid in 2020, if the benefits are

suspended as defined in this Application.

 Estimated administrative expenses from April 1, 2019 through December 31, 2019 are based on the total expected administrative expenses for 2019 of $400,000,

reduced by the administrative expenses already incurred between January 1, 2019 and March 31, 2019.

 Estimated administrative expenses from January 1, 2020 through December 31, 2020 are based on total administrative expenses paid in 2018, increased by 1% per

year for two years.

January 1, 2018 to January 1, 2019 to April 1, 2019 to January 1, 2020 to April 1, 2020 to

December 31, 20181 March 31, 20191 December 31, 20192 March 31, 20202 December 31, 20202

1. Market Value of Assets (Beginning of Period) $26,053,645 $22,362,057 23,752,502 $ 22,598,582 $ 22,235,016 $ 

2. Employer Contributions 1,133,418 224,681 958,108 306,891 920,672

3. Withdrawal Liability Payments 000004. Benefit Payments (3,449,227) (924,677) (2,795,324) (943,716) (2,013,549)5. Administrative Expenses (215,232) (65,207) (334,793) (54,890) (164,668)

6. Annualized Asset Return Percentage (4.68%) 45.37% 6.03% 6.03% 6.48% 

7. Investment Returns (1,160,547) 2,155,648 1,018,089 328,149 1,042,1368. Market Value of Assets (End of Period) $22,362,057 $23,752,502 $22,598,582 $22,235,016 $22,019,607

1 Based on unaudited financial statements, Reviewed by Independent Accountants.2

The table below shows the actual change in the Market Value of Assets from January 1, 2018 through March 31, 2019 and projects the Market Value of Assets from April 1, 

 Projected

2019 to December 31, 2020. The projection incorporates the following information:

ROOFERS42_0023
Exhibit III: Projected Total Contribution Base Units and Average Contribution Rates

Composition Roofers Local 42 Pension Plan

1/1

Plan

Year

Total

Contributions

Total 

Contribution

Base Units

Average 

Contribution 

Rate

1/1

Plan

Year

Total

Contributions

Total 

Contribution

Base Units

Average 

Contribution 

Rate

2017 $1,132,719* 259,028 $4.37 2037 $1,388,004 250,000 $5.552018 $1,133,418** 248,990** $4.55 2038 $1,388,004 250,000 $5.552019 $1,182,789 250,000 $4.73 2039 $1,388,004 250,000 $5.552020 $1,227,563 250,000 $4.91 2040 $1,388,004 250,000 $5.552021 $1,272,337 250,000 $5.09 2041 $1,388,004 250,000 $5.552022 $1,317,112 250,000 $5.27 2042 $1,388,004 250,000 $5.552023 $1,361,886 250,000 $5.45 2043 $1,388,004 250,000 $5.552024 $1,388,004 250,000 $5.55 2044 $1,388,004 250,000 $5.552025 $1,388,004 250,000 $5.55 2045 $1,388,004 250,000 $5.552026 $1,388,004 250,000 $5.55 2046 $1,388,004 250,000 $5.552027 $1,388,004 250,000 $5.55 2047 $1,388,004 250,000 $5.552028 $1,388,004 250,000 $5.55 2048 $1,388,004 250,000 $5.552029 $1,388,004 250,000 $5.55 2049 $1,388,004 250,000 $5.552030 $1,388,004 250,000 $5.55 2050 $1,388,004 250,000 $5.552031 $1,388,004 250,000 $5.55 2051 $1,388,004 250,000 $5.552032 $1,388,004 250,000 $5.55 2052 $1,388,004 250,000 $5.552033 $1,388,004 250,000 $5.55 2053 $1,388,004 250,000 $5.552034 $1,388,004 250,000 $5.55 2054 $1,388,004 250,000 $5.552035 $1,388,004 250,000 $5.55 2055 $1,388,004 250,000 $5.552036 $1,388,004 250,000 $5.55

* Contributions from the audited financial statements as of December 31, 2017.

** Based on December 31, 2018 unaudited financial statements, Reviewed by Independent Accountants.

ROOFERS42_0024
Exhibit IV: Deterministic Projection of Current Plan without Proposed Suspension

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2018 through December 31, 2030.

2018 2019 2020 2021 2022 2023

1. Market Value at beginning of year $26,053,645 $22,362,057 $22,598,582 $21,112,220 $19,488,811 $17,705,729

2. Contributions 1,133,418 1,182,789 1,227,563 1,272,337 1,317,112 1,361,886

3. Withdrawal liability payments * 0000004. Benefit payments

a. Current retirees and beneficiaries 3,276,113 3,415,723 3,313,335 3,263,524 3,210,396 3,153,666

b. Terminated vested participants 35,545 79,891 133,362 180,963 218,689 254,829

c. Current actives 137,569 224,387 328,165 419,004 536,963 629,000

d. New entrants 000000e. Total 3,449,227 3,720,001 3,774,862 3,863,491 3,966,048 4,037,495

5. Administrative expenses 215,232 400,000 219,558 221,754 223,971 226,211

6. Investment earnings (1,160,547) 3,173,737 1,280,495 1,189,499 1,089,825 981,446

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,362,057 $22,598,582 $21,112,220 $19,488,811 $17,705,729 $15,785,355

8. Available resources: (1)+(2)+(3)-(5)+(6) $25,811,284 $26,318,583 $24,887,082 $23,352,302 $21,671,777 $19,822,850

9. Solvency Ratio: (8)÷(4e) 7.48 7.07 6.59 6.04 5.46 4.91

2024 2025 2026 2027 2028 2029

1. Market Value at beginning of year $15,785,355 $13,739,971 $11,518,977 $9,116,993 $6,541,791 $3,817,409

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 3,093,076 3,028,405 2,959,486 2,886,210 2,808,543 2,726,518

b. Terminated vested participants 289,446 326,294 366,666 401,438 428,534 452,099

c. Current actives 687,686 763,668 834,615 897,274 938,235 971,142

d. New entrants 88 411 1,408 2,483 3,810 5,473

e. Total 4,070,296 4,118,778 4,162,175 4,187,405 4,179,122 4,155,232

5. Administrative expenses 228,473 230,758 233,065 235,396 237,750 240,128

6. Investment earnings 865,381 740,538 605,252 459,595 304,486 165,634

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $13,739,971 $11,518,977 $9,116,993 $6,541,791 $3,817,409 $975,687

8. Available resources: (1)+(2)+(3)-(5)+(6) $17,810,267 $15,637,755 $13,279,168 $10,729,196 $7,996,531 $5,130,919

9. Solvency Ratio: (8)÷(4e) 4.38 3.80 3.19 2.56 1.91 1.23

* No assumed future withdrawals

ROOFERS42_0025
Exhibit IV: Deterministic Projection of Current Plan without Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2018 through December 31, 2030.

2030

1. Market Value at beginning of year $975,6872. Contributions 1,388,0043. Withdrawal liability payments 04. Benefit payments

a. Current retirees and beneficiaries 2,640,232b. Terminated vested participants 469,192c. Current actives 1,013,914d. New entrants 7,406e. Total 4,130,744

5. Administrative expenses 242,529

6. Investment earnings 0

7. Market Value at end of year:

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

8. Available resources: (1)+(2)+(3)-(5)+(6) $2,121,162

9. Solvency Ratio: (8)÷(4e) 0.51

ROOFERS42_0026
Exhibit V: Deterministic Projection of Proposed Suspension

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2019 * 2020 2021 2022 2023 2024

1. Market Value at beginning of year $23,752,502 $22,598,582 $22,019,607 $21,715,445 $21,383,611 $21,039,861

2. Contributions 958,108 1,227,563 1,272,337 1,317,112 1,361,886 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,563,212 2,636,647 2,370,910 2,328,246 2,282,879 2,234,621

b. Terminated vested participants 60,943 90,744 103,985 125,793 146,688 166,813

c. Current actives 171,169 229,874 253,222 324,351 382,067 421,134

d. New entrants 00000 78e. Total 2,795,324 2,957,265 2,728,117 2,778,390 2,811,634 2,822,646

5. Administrative expenses 334,793 219,558 221,754 223,971 226,211 228,473

6. Investment earnings 1,018,089 1,370,285 1,373,372 1,353,415 1,332,209 1,310,344

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,598,582 $22,019,607 $21,715,445 $21,383,611 $21,039,861 $20,687,090

8. Available resources: (1)+(2)+(3)-(5)+(6) $26,318,583 $24,976,872 $24,443,562 $24,162,001 $23,851,495 $23,509,736

9. Solvency Ratio: (8)÷(4e) 7.07 ** 8.45 8.96 8.70 8.48 8.33

2025 2026 2027 2028 2029 2030

1. Market Value at beginning of year $20,687,090 $20,289,459 $19,846,745 $19,365,841 $18,864,646 $18,522,852

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,183,336 2,128,934 2,071,392 2,010,761 1,947,153 1,880,748

b. Terminated vested participants 188,368 211,912 232,804 249,521 263,796 274,525

c. Current actives 469,611 515,989 558,498 588,248 613,836 646,036

d. New entrants 367 1,258 2,277 3,552 5,159 7,031

e. Total 2,841,682 2,858,093 2,864,971 2,852,082 2,829,944 2,808,340

5. Administrative expenses 230,758 233,065 235,396 237,750 240,128 242,529

6. Investment earnings 1,286,805 1,260,440 1,231,459 1,200,633 1,340,274 1,315,580

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $20,289,459 $19,846,745 $19,365,841 $18,864,646 $18,522,852 $18,175,567

8. Available resources: (1)+(2)+(3)-(5)+(6) $23,131,141 $22,704,838 $22,230,812 $21,716,728 $21,352,796 $20,983,907

9. Solvency Ratio: (8)÷(4e) 8.14 7.94 7.76 7.61 7.55 7.47

* As required under revenue procedure 2017-43 3.02, the initial period shown here begins on the first day of the calendar quarter in which the application

is submitted (April 1, 2019) and ends with the last day of the plan year that includes that first day (December 31, 2019).

** Calculated based on the annual information shown in Exhibit II.

ROOFERS42_0027
Exhibit V: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2031 2032 2033 2034 2035 2036

1. Market Value at beginning of year $18,175,567 $17,831,591 $17,495,893 $17,167,317 $16,846,883 $16,538,260

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,811,772 1,740,483 1,667,170 1,592,145 1,515,708 1,438,153

b. Terminated vested participants 285,253 294,018 303,186 312,502 321,009 329,122

c. Current actives 671,460 695,969 722,589 749,112 774,061 798,223

d. New entrants 9,341 12,263 16,378 21,656 27,748 34,749

e. Total 2,777,826 2,742,733 2,709,323 2,675,415 2,638,526 2,600,247

5. Administrative expenses 244,954 247,404 249,878 252,376 254,900 257,449

6. Investment earnings 1,290,800 1,266,435 1,242,621 1,219,353 1,196,799 1,175,171

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $17,831,591 $17,495,893 $17,167,317 $16,846,883 $16,538,260 $16,243,739

8. Available resources: (1)+(2)+(3)-(5)+(6) $20,609,417 $20,238,626 $19,876,640 $19,522,298 $19,176,786 $18,843,986

9. Solvency Ratio: (8)÷(4e) 7.42 7.38 7.34 7.30 7.27 7.25

2037 2038 2039 2040 2041 2042

1. Market Value at beginning of year $16,243,739 $15,973,285 $15,739,488 $15,540,637 $15,375,549 $15,245,163

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,359,783 1,280,920 1,201,906 1,123,083 1,044,818 967,479

b. Terminated vested participants 333,258 334,665 336,035 337,098 335,944 333,694

c. Current actives 817,410 826,975 839,556 854,981 872,354 887,809

d. New entrants 42,890 53,426 65,388 78,241 92,293 107,628

e. Total 2,553,341 2,495,986 2,442,885 2,393,403 2,345,409 2,296,610

5. Administrative expenses 260,024 262,624 265,250 267,903 270,582 273,288

6. Investment earnings 1,154,907 1,136,809 1,121,280 1,108,214 1,097,601 1,089,595

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $15,973,285 $15,739,488 $15,540,637 $15,375,549 $15,245,163 $15,152,864

8. Available resources: (1)+(2)+(3)-(5)+(6) $18,526,626 $18,235,474 $17,983,522 $17,768,952 $17,590,572 $17,449,474

9. Solvency Ratio: (8)÷(4e) 7.26 7.31 7.36 7.42 7.50 7.60

ROOFERS42_0028
Exhibit V: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2043 2044 2045 2046 2047 2048

1. Market Value at beginning of year $15,152,864 $15,105,993 $15,109,371 $15,165,908 $15,279,874 $15,454,872

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 891,474 817,223 745,128 675,562 608,867 545,358

b. Terminated vested participants 328,797 323,000 316,699 309,378 300,768 291,365

c. Current actives 897,611 902,899 906,326 906,364 903,956 900,669

d. New entrants 125,550 145,710 166,846 189,524 213,679 240,853

e. Total 2,243,432 2,188,832 2,134,999 2,080,828 2,027,270 1,978,245

5. Administrative expenses 276,020 278,781 281,568 284,384 287,228 290,100

6. Investment earnings 1,084,577 1,082,987 1,085,100 1,091,174 1,101,492 1,116,178

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $15,105,993 $15,109,371 $15,165,908 $15,279,874 $15,454,872 $15,690,709

8. Available resources: (1)+(2)+(3)-(5)+(6) $17,349,425 $17,298,203 $17,300,907 $17,360,702 $17,482,142 $17,668,954

9. Solvency Ratio: (8)÷(4e) 7.73 7.90 8.10 8.34 8.62 8.93

2049 2050

1. Market Value at beginning of year $15,690,709 $15,990,9272. Contributions 1,388,004 1,388,004

3. Withdrawal liability payments 0 04. Benefit payments

a. Current retirees and beneficiaries 485,337 429,093b. Terminated vested participants 280,775 269,726c. Current actives 892,892 880,009d. New entrants 271,131 302,402e. Total 1,930,135 1,881,230

5. Administrative expenses 293,001 295,931

6. Investment earnings 1,135,350 1,159,333

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $15,990,927 $16,361,103

8. Available resources: (1)+(2)+(3)-(5)+(6) $17,921,062 $18,242,3339. Solvency Ratio: (8)÷(4e) 9.28 9.70

ROOFERS42_0029
Exhibit VI: Deterministic Projection of Similar but Smaller Proposed Suspension

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2019 * 2020 2021 2022 2023 2024

1. Market Value at beginning of year $23,752,502 $22,598,582 $21,970,785 $21,595,366 $21,184,835 $20,755,187

2. Contributions 958,108 1,227,563 1,272,337 1,317,112 1,361,886 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,563,212 2,676,825 2,423,900 2,380,606 2,334,553 2,285,554

b. Terminated vested participants 60,943 92,950 107,975 130,614 152,305 173,190

c. Current actives 171,169 235,176 262,231 335,895 395,536 435,774

d. New entrants 00000 79e. Total 2,795,324 3,004,951 *** 2,794,106 2,847,115 2,882,394 2,894,597

5. Administrative expenses 334,793 219,558 221,754 223,971 226,211 228,473

6. Investment earnings 1,018,089 1,369,149 1,368,104 1,343,443 1,317,071 1,289,603

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,598,582 $21,970,785 $21,595,366 $21,184,835 $20,755,187 $20,309,724

8. Available resources: (1)+(2)+(3)-(5)+(6) $26,318,583 $24,975,736 $24,389,472 $24,031,950 $23,637,581 $23,204,321

9. Solvency Ratio: (8)÷(4e) 7.07 ** 8.31 8.73 8.44 8.20 8.02

2025 2026 2027 2028 2029 2030

1. Market Value at beginning of year $20,309,724 $19,811,784 $19,260,783 $18,663,533 $18,038,163 $17,556,003

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,233,461 2,178,183 2,119,694 2,058,039 1,993,326 1,925,728

b. Terminated vested participants 195,555 219,989 241,641 258,943 273,730 284,825

c. Current actives 485,805 533,598 577,299 607,765 633,887 666,786

d. New entrants 371 1,268 2,290 3,569 5,180 7,057

e. Total 2,915,192 2,933,038 2,940,924 2,928,316 2,906,123 2,884,396

5. Administrative expenses 230,758 233,065 235,396 237,750 240,128 242,529

6. Investment earnings 1,260,006 1,227,098 1,191,066 1,152,692 1,276,087 1,240,968

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $19,811,784 $19,260,783 $18,663,533 $18,038,163 $17,556,003 $17,058,050

8. Available resources: (1)+(2)+(3)-(5)+(6) $22,726,976 $22,193,821 $21,604,457 $20,966,479 $20,462,126 $19,942,446

9. Solvency Ratio: (8)÷(4e) 7.80 7.57 7.35 7.16 7.04 6.91

* As required under revenue procedure 2017-43 3.02, the initial period shown here begins on the first day of the calendar quarter in which the application

is submitted (April 1, 2019) and ends with the last day of the plan year that includes that first day (December 31, 2019).

** Calculated based on the annual information shown in Exhibit II.*** Estimated benefit payments from April 1, 2020 to December 31, 2020 are three quarters of the benefit payments expected to be paid in the 2020 Plan

 Year, if the benefits are suspended as defined in this Application and applying the statutory requirement under §432(e)(9)(D)(iv).

ROOFERS42_0030
Exhibit VI: Deterministic Projection of Similar but Smaller Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2031 2032 2033 2034 2035 2036

1. Market Value at beginning of year $17,058,050 $16,552,662 $16,044,240 $15,530,926 $15,012,886 $14,493,081

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,855,472 1,782,812 1,708,038 1,631,460 1,553,384 1,474,107

b. Terminated vested participants 295,924 305,003 314,492 324,125 332,913 341,293

c. Current actives 692,681 717,584 744,546 771,467 796,700 821,100

d. New entrants 9,371 12,298 16,421 21,709 27,808 34,817

e. Total 2,853,448 2,817,697 2,783,497 2,748,761 2,710,805 2,671,317

5. Administrative expenses 244,954 247,404 249,878 252,376 254,900 257,449

6. Investment earnings 1,205,010 1,168,675 1,132,057 1,095,093 1,057,896 1,020,622

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $16,552,662 $16,044,240 $15,530,926 $15,012,886 $14,493,081 $13,972,941

8. Available resources: (1)+(2)+(3)-(5)+(6) $19,406,110 $18,861,937 $18,314,423 $17,761,647 $17,203,886 $16,644,258

9. Solvency Ratio: (8)÷(4e) 6.80 6.69 6.58 6.46 6.35 6.23

2037 2038 2039 2040 2041 2042

1. Market Value at beginning of year $13,972,941 $13,461,732 $12,971,255 $12,498,657 $12,041,497 $11,599,456

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,393,937 1,313,213 1,232,280 1,151,500 1,071,253 991,925

b. Terminated vested participants 345,556 346,996 348,410 349,517 348,314 345,974

c. Current actives 840,379 849,865 862,373 877,755 895,101 910,512

d. New entrants 42,968 53,517 65,493 78,359 92,425 107,772

e. Total 2,622,840 2,563,591 2,508,556 2,457,131 2,407,093 2,356,183

5. Administrative expenses 260,024 262,624 265,250 267,903 270,582 273,288

6. Investment earnings 983,651 947,734 913,204 879,870 847,630 816,546

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $13,461,732 $12,971,255 $12,498,657 $12,041,497 $11,599,456 $11,174,535

8. Available resources: (1)+(2)+(3)-(5)+(6) $16,084,572 $15,534,846 $15,007,213 $14,498,628 $14,006,549 $13,530,718

9. Solvency Ratio: (8)÷(4e) 6.13 6.06 5.98 5.90 5.82 5.74

ROOFERS42_0031
Exhibit VI: Deterministic Projection of Similar but Smaller Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2043 2044 2045 2046 2047 2048

1. Market Value at beginning of year $11,174,535 $10,772,779 $10,397,479 $10,049,808 $9,732,167 $9,446,120

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 913,940 837,738 763,738 692,327 623,863 558,671

b. Terminated vested participants 340,887 334,863 328,317 320,712 311,766 301,998

c. Current actives 920,102 925,064 928,110 927,719 924,862 921,087

d. New entrants 125,711 145,891 167,043 189,738 213,910 241,105

e. Total 2,300,640 2,243,556 2,187,208 2,130,496 2,074,401 2,022,861

5. Administrative expenses 276,020 278,781 281,568 284,384 287,228 290,100

6. Investment earnings 786,900 759,033 733,101 709,235 687,578 668,100

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $10,772,779 $10,397,479 $10,049,808 $9,732,167 $9,446,120 $9,189,263

8. Available resources: (1)+(2)+(3)-(5)+(6) $13,073,419 $12,641,035 $12,237,016 $11,862,663 $11,520,521 $11,212,124

9. Solvency Ratio: (8)÷(4e) 5.68 5.63 5.59 5.57 5.55 5.54

2049 2050

1. Market Value at beginning of year $9,189,263 $8,962,8362. Contributions 1,388,004 1,388,004

3. Withdrawal liability payments 0 04. Benefit payments

a. Current retirees and beneficiaries 497,063 439,342b. Terminated vested participants 290,996 279,518c. Current actives 912,721 899,177d. New entrants 271,408 302,699e. Total 1,972,188 1,920,736

5. Administrative expenses 293,001 295,931

6. Investment earnings 650,758 635,706

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $8,962,836 $8,769,879

8. Available resources: (1)+(2)+(3)-(5)+(6) $10,935,024 $10,690,615

9. Solvency Ratio: (8)÷(4e) 5.54 5.57

ROOFERS42_0032
Exhibit VII: Deterministic Projection of Proposed Suspension

Composition Roofers Local 42 Pension Plan

Assuming 1.00% Lower Annual Rate of Return

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2049.

2019 * 2020 2021 2022 2023 2024

1. Market Value at beginning of year $23,752,502 $22,430,694 $21,627,279 $21,089,569 $20,514,468 $19,917,393

2. Contributions 958,108 1,227,563 1,272,337 1,317,112 1,361,886 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,563,212 2,636,647 2,370,910 2,328,246 2,282,879 2,234,621

b. Terminated vested participants 60,943 90,744 103,985 125,793 146,688 166,813

c. Current actives 171,169 229,874 253,222 324,351 382,067 421,134

d. New entrants 00000 78e. Total 2,795,324 2,957,265 2,728,117 2,778,390 2,811,634 2,822,646

5. Administrative expenses 334,793 219,558 221,754 223,971 226,211 228,473

6. Investment earnings 850,201 1,145,845 1,139,824 1,110,148 1,078,884 1,046,511

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,430,694 $21,627,279 $21,089,569 $20,514,468 $19,917,393 $19,300,789

8. Available resources: (1)+(2)+(3)-(5)+(6) $26,150,695 $24,584,544 $23,817,686 $23,292,858 $22,729,027 $22,123,435

9. Solvency Ratio: (8)÷(4e) 7.03 ** 8.31 8.73 8.38 8.08 7.84

2025 2026 2027 2028 2029 2030

1. Market Value at beginning of year $19,300,789 $18,628,498 $17,900,142 $17,122,413 $16,312,885 $15,626,500

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,183,336 2,128,934 2,071,392 2,010,761 1,947,153 1,880,748

b. Terminated vested participants 188,368 211,912 232,804 249,521 263,796 274,525

c. Current actives 469,611 515,989 558,498 588,248 613,836 646,036

d. New entrants 367 1,258 2,277 3,552 5,159 7,031

e. Total 2,841,682 2,858,093 2,864,971 2,852,082 2,829,944 2,808,340

5. Administrative expenses 230,758 233,065 235,396 237,750 240,128 242,529

6. Investment earnings 1,012,145 974,798 934,634 892,300 995,683 952,156

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $18,628,498 $17,900,142 $17,122,413 $16,312,885 $15,626,500 $14,915,791

8. Available resources: (1)+(2)+(3)-(5)+(6) $21,470,180 $20,758,235 $19,987,384 $19,164,967 $18,456,444 $17,724,131

9. Solvency Ratio: (8)÷(4e) 7.56 7.26 6.98 6.72 6.52 6.31

* As required under revenue procedure 2017-43 3.02, the initial period shown here begins on the first day of the calendar quarter in which the application

is submitted (April 1, 2019) and ends with the last day of the plan year that includes that first day (December 31, 2019).

** Calculated based on the annual information shown in Exhibit II.

ROOFERS42_0033
Exhibit VII: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming 1.00% Lower Annual Rate of Return

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2049.

2031 2032 2033 2034 2035 2036

1. Market Value at beginning of year $14,915,791 $14,188,361 $13,447,834 $12,691,606 $11,919,156 $11,132,490

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,811,772 1,740,483 1,667,170 1,592,145 1,515,708 1,438,153

b. Terminated vested participants 285,253 294,018 303,186 312,502 321,009 329,122

c. Current actives 671,460 695,969 722,589 749,112 774,061 798,223

d. New entrants 9,341 12,263 16,378 21,656 27,748 34,749

e. Total 2,777,826 2,742,733 2,709,323 2,675,415 2,638,526 2,600,247

5. Administrative expenses 244,954 247,404 249,878 252,376 254,900 257,449

6. Investment earnings 907,346 861,606 814,969 767,337 718,756 669,304

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $14,188,361 $13,447,834 $12,691,606 $11,919,156 $11,132,490 $10,332,102

8. Available resources: (1)+(2)+(3)-(5)+(6) $16,966,187 $16,190,567 $15,400,929 $14,594,571 $13,771,016 $12,932,349

9. Solvency Ratio: (8)÷(4e) 6.11 5.90 5.68 5.46 5.22 4.97

2037 2038 2039 2040 2041 2042

1. Market Value at beginning of year $10,332,102 $9,525,984 $8,724,521 $7,923,595 $7,119,482 $6,310,413

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,359,783 1,280,920 1,201,906 1,123,083 1,044,818 967,479

b. Terminated vested participants 333,258 334,665 336,035 337,098 335,944 333,694

c. Current actives 817,410 826,975 839,556 854,981 872,354 887,809

d. New entrants 42,890 53,426 65,388 78,241 92,293 107,628

e. Total 2,553,341 2,495,986 2,442,885 2,393,403 2,345,409 2,296,610

5. Administrative expenses 260,024 262,624 265,250 267,903 270,582 273,288

6. Investment earnings 619,243 569,143 519,205 469,189 418,918 368,354

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $9,525,984 $8,724,521 $7,923,595 $7,119,482 $6,310,413 $5,496,873

8. Available resources: (1)+(2)+(3)-(5)+(6) $12,079,325 $11,220,507 $10,366,480 $9,512,885 $8,655,822 $7,793,483

9. Solvency Ratio: (8)÷(4e) 4.73 4.50 4.24 3.97 3.69 3.39

ROOFERS42_0034
Exhibit VII: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming 1.00% Lower Annual Rate of Return

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2049.

2043 2044 2045 2046 2047 2048

1. Market Value at beginning of year $5,496,873 $4,683,064 $3,870,408 $3,058,159 $2,246,662 $1,435,306

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 891,474 817,223 745,128 675,562 608,867 545,358

b. Terminated vested participants 328,797 323,000 316,699 309,378 300,768 291,365

c. Current actives 897,611 902,899 906,326 906,364 903,956 900,669

d. New entrants 125,550 145,710 166,846 189,524 213,679 240,853

e. Total 2,243,432 2,188,832 2,134,999 2,080,828 2,027,270 1,978,245

5. Administrative expenses 276,020 278,781 281,568 284,384 287,228 290,100

6. Investment earnings 317,639 266,953 216,314 165,711 115,138 64,428

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $4,683,064 $3,870,408 $3,058,159 $2,246,662 $1,435,306 $619,393

8. Available resources: (1)+(2)+(3)-(5)+(6) $6,926,496 $6,059,240 $5,193,158 $4,327,490 $3,462,576 $2,597,638

9. Solvency Ratio: (8)÷(4e) 3.09 2.77 2.43 2.08 1.71 1.31

2049

1. Market Value at beginning of year $619,3932. Contributions 1,388,0043. Withdrawal liability payments 04. Benefit payments

a. Current retirees and beneficiaries 485,337b. Terminated vested participants 280,775c. Current actives 892,892d. New entrants 271,131e. Total 1,930,135

5. Administrative expenses 293,001

6. Investment earnings 13,397

7. Market Value at end of year:

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

8. Available resources: (1)+(2)+(3)-(5)+(6) $1,727,793

9. Solvency Ratio: (8)÷(4e) 0.90

ROOFERS42_0035
Exhibit VIII: Deterministic Projection of Proposed Suspension

Composition Roofers Local 42 Pension Plan

Assuming 2.00% Lower Annual Rate of Return

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2041.

2019 * 2020 2021 2022 2023 2024

1. Market Value at beginning of year $23,752,502 $22,262,435 $21,237,955 $20,474,717 $19,669,399 $18,837,499

2. Contributions 958,108 1,227,563 1,272,337 1,317,112 1,361,886 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,563,212 2,636,647 2,370,910 2,328,246 2,282,879 2,234,621

b. Terminated vested participants 60,943 90,744 103,985 125,793 146,688 166,813

c. Current actives 171,169 229,874 253,222 324,351 382,067 421,134

d. New entrants 00000 78e. Total 2,795,324 2,957,265 2,728,117 2,778,390 2,811,634 2,822,646

5. Administrative expenses 334,793 219,558 221,754 223,971 226,211 228,473

6. Investment earnings 681,942 924,780 914,296 879,931 844,059 807,074

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,262,435 $21,237,955 $20,474,717 $19,669,399 $18,837,499 $17,981,458

8. Available resources: (1)+(2)+(3)-(5)+(6) $25,982,436 $24,195,220 $23,202,834 $22,447,789 $21,649,133 $20,804,104

9. Solvency Ratio: (8)÷(4e) 6.98 ** 8.18 8.51 8.08 7.70 7.37

2025 2026 2027 2028 2029 2030

1. Market Value at beginning of year $17,981,458 $17,065,273 $16,088,910 $15,059,394 $13,994,523 $13,027,294

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,183,336 2,128,934 2,071,392 2,010,761 1,947,153 1,880,748

b. Terminated vested participants 188,368 211,912 232,804 249,521 263,796 274,525

c. Current actives 469,611 515,989 558,498 588,248 613,836 646,036

d. New entrants 367 1,258 2,277 3,552 5,159 7,031

e. Total 2,841,682 2,858,093 2,864,971 2,852,082 2,829,944 2,808,340

5. Administrative expenses 230,758 233,065 235,396 237,750 240,128 242,529

6. Investment earnings 768,251 726,791 682,847 636,957 714,839 662,832

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $17,065,273 $16,088,910 $15,059,394 $13,994,523 $13,027,294 $12,027,261

8. Available resources: (1)+(2)+(3)-(5)+(6) $19,906,955 $18,947,003 $17,924,365 $16,846,605 $15,857,238 $14,835,601

9. Solvency Ratio: (8)÷(4e) 7.01 6.63 6.26 5.91 5.60 5.28

* As required under revenue procedure 2017-43 3.02, the initial period shown here begins on the first day of the calendar quarter in which the application

is submitted (April 1, 2019) and ends with the last day of the plan year that includes that first day (December 31, 2019).

** Calculated based on the annual information shown in Exhibit II.

ROOFERS42_0036
Exhibit VIII: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming 2.00% Lower Annual Rate of Return

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2041.

2031 2032 2033 2034 2035 2036

1. Market Value at beginning of year $12,027,261 $11,001,768 $9,954,108 $8,881,326 $7,782,542 $6,659,379

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,811,772 1,740,483 1,667,170 1,592,145 1,515,708 1,438,153

b. Terminated vested participants 285,253 294,018 303,186 312,502 321,009 329,122

c. Current actives 671,460 695,969 722,589 749,112 774,061 798,223

d. New entrants 9,341 12,263 16,378 21,656 27,748 34,749

e. Total 2,777,826 2,742,733 2,709,323 2,675,415 2,638,526 2,600,247

5. Administrative expenses 244,954 247,404 249,878 252,376 254,900 257,449

6. Investment earnings 609,283 554,473 498,415 441,003 382,259 322,230

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $11,001,768 $9,954,108 $8,881,326 $7,782,542 $6,659,379 $5,511,917

8. Available resources: (1)+(2)+(3)-(5)+(6) $13,779,594 $12,696,841 $11,590,649 $10,457,957 $9,297,905 $8,112,164

9. Solvency Ratio: (8)÷(4e) 4.96 4.63 4.28 3.91 3.52 3.12

2037 2038 2039 2040 2041

1. Market Value at beginning of year $5,511,917 $4,347,666 $3,176,418 $1,993,399 $794,226

2. Contributions 1,388,004 1,388,004 1,388,004 1,388,004 1,388,004

3. Withdrawal liability payments 000004. Benefit payments

a. Current retirees and beneficiaries 1,359,783 1,280,920 1,201,906 1,123,083 1,044,818

b. Terminated vested participants 333,258 334,665 336,035 337,098 335,944

c. Current actives 817,410 826,975 839,556 854,981 872,354

d. New entrants 42,890 53,426 65,388 78,241 92,293

e. Total 2,553,341 2,495,986 2,442,885 2,393,403 2,345,409

5. Administrative expenses 260,024 262,624 265,250 267,903 270,582

6. Investment earnings 261,110 199,358 137,112 74,129 10,227

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $4,347,666 $3,176,418 $1,993,399 $794,226 Insolvent

8. Available resources: (1)+(2)+(3)-(5)+(6) $6,901,007 $5,672,404 $4,436,284 $3,187,629 $1,921,8759. Solvency Ratio: (8)÷(4e) 2.70 2.27 1.82 1.33 0.82

ROOFERS42_0037
Exhibit IX: Deterministic Projection of Proposed Suspension

Composition Roofers Local 42 Pension Plan

Assuming Positive 0.14% Trend in Annual Contribution Base Units

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2019 * 2020 2021 2022 2023 2024

1. Market Value at beginning of year $23,752,502 $22,599,942 $22,024,857 $21,726,952 $21,404,037 $21,072,182

2. Contributions 959,439 1,231,248 1,278,071 1,325,032 1,372,131 1,400,543

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,563,212 2,636,647 2,370,910 2,328,246 2,282,879 2,234,621

b. Terminated vested participants 60,943 90,744 103,985 125,793 146,688 166,813

c. Current actives 171,169 229,874 253,222 324,351 382,067 421,134

d. New entrants 00000 78e. Total 2,795,324 2,957,265 2,728,117 2,778,390 2,811,634 2,822,646

5. Administrative expenses 334,793 219,558 221,754 223,971 226,211 228,473

6. Investment earnings 1,018,118 1,370,490 1,373,895 1,354,414 1,333,859 1,312,838

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,599,942 $22,024,857 $21,726,952 $21,404,037 $21,072,182 $20,734,444

8. Available resources: (1)+(2)+(3)-(5)+(6) $26,319,943 $24,982,122 $24,455,069 $24,182,427 $23,883,816 $23,557,090

9. Solvency Ratio: (8)÷(4e) 7.08 ** 8.45 8.96 8.70 8.49 8.35

2025 2026 2027 2028 2029 2030

1. Market Value at beginning of year $20,734,444 $20,354,988 $19,933,798 $19,477,988 $19,005,689 $18,698,291

2. Contributions 1,402,644 1,404,748 1,406,855 1,408,965 1,411,079 1,413,195

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,183,336 2,128,934 2,071,392 2,010,761 1,947,153 1,880,748

b. Terminated vested participants 188,368 211,912 232,804 249,521 263,796 274,525

c. Current actives 469,611 515,989 558,498 588,248 613,836 646,036

d. New entrants 367 1,258 2,277 3,552 5,159 7,031

e. Total 2,841,682 2,858,093 2,864,971 2,852,082 2,829,944 2,808,340

5. Administrative expenses 230,758 233,065 235,396 237,750 240,128 242,529

6. Investment earnings 1,290,340 1,265,220 1,237,702 1,208,568 1,351,595 1,329,534

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $20,354,988 $19,933,798 $19,477,988 $19,005,689 $18,698,291 $18,390,151

8. Available resources: (1)+(2)+(3)-(5)+(6) $23,196,670 $22,791,891 $22,342,959 $21,857,771 $21,528,235 $21,198,491

9. Solvency Ratio: (8)÷(4e) 8.16 7.97 7.80 7.66 7.61 7.55

* As required under revenue procedure 2017-43 3.02, the initial period shown here begins on the first day of the calendar quarter in which the application

is submitted (April 1, 2019) and ends with the last day of the plan year that includes that first day (December 31, 2019).

** Calculated based on the annual information shown in Exhibit II.

ROOFERS42_0038
Exhibit IX: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming Positive 0.14% Trend in Annual Contribution Base Units

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2031 2032 2033 2034 2035 2036

1. Market Value at beginning of year $18,390,151 $18,090,427 $17,804,468 $17,531,531 $17,273,076 $17,033,248

2. Contributions 1,415,315 1,417,438 1,419,564 1,421,693 1,423,826 1,425,962

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,811,772 1,740,483 1,667,170 1,592,145 1,515,708 1,438,153

b. Terminated vested participants 285,253 294,018 303,186 312,502 321,009 329,122

c. Current actives 671,460 695,969 722,589 749,112 774,061 798,223

d. New entrants 9,341 12,263 16,378 21,656 27,748 34,749

e. Total 2,777,826 2,742,733 2,709,323 2,675,415 2,638,526 2,600,247

5. Administrative expenses 244,954 247,404 249,878 252,376 254,900 257,449

6. Investment earnings 1,307,741 1,286,740 1,266,700 1,247,643 1,229,772 1,213,334

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $18,090,427 $17,804,468 $17,531,531 $17,273,076 $17,033,248 $16,814,848

8. Available resources: (1)+(2)+(3)-(5)+(6) $20,868,253 $20,547,201 $20,240,854 $19,948,491 $19,671,774 $19,415,095

9. Solvency Ratio: (8)÷(4e) 7.51 7.49 7.47 7.46 7.46 7.47

2037 2038 2039 2040 2041 2042

1. Market Value at beginning of year $16,814,848 $16,628,387 $16,487,044 $16,389,739 $16,335,970 $16,327,404

2. Contributions 1,428,101 1,430,243 1,432,388 1,434,537 1,436,689 1,438,844

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,359,783 1,280,920 1,201,906 1,123,083 1,044,818 967,479

b. Terminated vested participants 333,258 334,665 336,035 337,098 335,944 333,694

c. Current actives 817,410 826,975 839,556 854,981 872,354 887,809

d. New entrants 42,890 53,426 65,388 78,241 92,293 107,628

e. Total 2,553,341 2,495,986 2,442,885 2,393,403 2,345,409 2,296,610

5. Administrative expenses 260,024 262,624 265,250 267,903 270,582 273,288

6. Investment earnings 1,198,803 1,187,024 1,178,442 1,173,000 1,170,736 1,171,861

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $16,628,387 $16,487,044 $16,389,739 $16,335,970 $16,327,404 $16,368,211

8. Available resources: (1)+(2)+(3)-(5)+(6) $19,181,728 $18,983,030 $18,832,624 $18,729,373 $18,672,813 $18,664,821

9. Solvency Ratio: (8)÷(4e) 7.51 7.61 7.71 7.83 7.96 8.13

ROOFERS42_0039
Exhibit IX: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming Positive 0.14% Trend in Annual Contribution Base Units

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2043 2044 2045 2046 2047 2048

1. Market Value at beginning of year $16,368,211 $16,466,572 $16,628,212 $16,857,014 $17,158,292 $17,536,770

2. Contributions 1,441,002 1,443,163 1,445,328 1,447,496 1,449,667 1,451,842

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 891,474 817,223 745,128 675,562 608,867 545,358

b. Terminated vested participants 328,797 323,000 316,699 309,378 300,768 291,365

c. Current actives 897,611 902,899 906,326 906,364 903,956 900,669

d. New entrants 125,550 145,710 166,846 189,524 213,679 240,853

e. Total 2,243,432 2,188,832 2,134,999 2,080,828 2,027,270 1,978,245

5. Administrative expenses 276,020 278,781 281,568 284,384 287,228 290,100

6. Investment earnings 1,176,811 1,186,090 1,200,041 1,218,994 1,243,309 1,273,192

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $16,466,572 $16,628,212 $16,857,014 $17,158,292 $17,536,770 $17,993,459

8. Available resources: (1)+(2)+(3)-(5)+(6) $18,710,004 $18,817,044 $18,992,013 $19,239,120 $19,564,040 $19,971,704

9. Solvency Ratio: (8)÷(4e) 8.34 8.60 8.90 9.25 9.65 10.10

2049 2050

1. Market Value at beginning of year $17,993,459 $18,533,1952. Contributions 1,454,020 1,456,201

3. Withdrawal liability payments 0 04. Benefit payments

a. Current retirees and beneficiaries 485,337 429,093b. Terminated vested participants 280,775 269,726c. Current actives 892,892 880,009d. New entrants 271,131 302,402e. Total 1,930,135 1,881,230

5. Administrative expenses 293,001 295,931

6. Investment earnings 1,308,852 1,350,712

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $18,533,195 $19,162,947

8. Available resources: (1)+(2)+(3)-(5)+(6) $20,463,330 $21,044,1779. Solvency Ratio: (8)÷(4e) 10.60 11.19

ROOFERS42_0040
Exhibit X: Deterministic Projection of Proposed Suspension

Composition Roofers Local 42 Pension Plan

Assuming Negative 0.86% Trend in Annual Contribution Base Units

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2019 * 2020 2021 2022 2023 2024

1. Market Value at beginning of year $23,752,502 $22,590,874 $21,989,958 $21,650,679 $21,269,025 $20,859,131

2. Contributions 950,568 1,206,783 1,240,167 1,272,898 1,304,981 1,318,703

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,563,212 2,636,647 2,370,910 2,328,246 2,282,879 2,234,621

b. Terminated vested participants 60,943 90,744 103,985 125,793 146,688 166,813

c. Current actives 171,169 229,874 253,222 324,351 382,067 421,134

d. New entrants 00000 78e. Total 2,795,324 2,957,265 2,728,117 2,778,390 2,811,634 2,822,646

5. Administrative expenses 334,793 219,558 221,754 223,971 226,211 228,473

6. Investment earnings 1,017,921 1,369,124 1,370,425 1,347,809 1,322,970 1,296,422

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $22,590,874 $21,989,958 $21,650,679 $21,269,025 $20,859,131 $20,423,137

8. Available resources: (1)+(2)+(3)-(5)+(6) $26,310,875 $24,947,223 $24,378,796 $24,047,415 $23,670,765 $23,245,783

9. Solvency Ratio: (8)÷(4e) 7.07 ** 8.44 8.94 8.66 8.42 8.24

2025 2026 2027 2028 2029 2030

1. Market Value at beginning of year $20,423,137 $19,925,324 $19,364,469 $18,746,397 $18,087,872 $17,559,424

2. Contributions 1,307,494 1,296,380 1,285,361 1,274,436 1,263,603 1,252,862

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 2,183,336 2,128,934 2,071,392 2,010,761 1,947,153 1,880,748

b. Terminated vested participants 188,368 211,912 232,804 249,521 263,796 274,525

c. Current actives 469,611 515,989 558,498 588,248 613,836 646,036

d. New entrants 367 1,258 2,277 3,552 5,159 7,031

e. Total 2,841,682 2,858,093 2,864,971 2,852,082 2,829,944 2,808,340

5. Administrative expenses 230,758 233,065 235,396 237,750 240,128 242,529

6. Investment earnings 1,267,133 1,233,923 1,196,934 1,156,871 1,278,021 1,239,067

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $19,925,324 $19,364,469 $18,746,397 $18,087,872 $17,559,424 $17,000,484

8. Available resources: (1)+(2)+(3)-(5)+(6) $22,767,006 $22,222,562 $21,611,368 $20,939,954 $20,389,368 $19,808,824

9. Solvency Ratio: (8)÷(4e) 8.01 7.78 7.54 7.34 7.20 7.05

* As required under revenue procedure 2017-43 3.02, the initial period shown here begins on the first day of the calendar quarter in which the application

is submitted (April 1, 2019) and ends with the last day of the plan year that includes that first day (December 31, 2019).

** Calculated based on the annual information shown in Exhibit II.

ROOFERS42_0041
Exhibit X: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming Negative 0.86% Trend in Annual Contribution Base Units

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2031 2032 2033 2034 2035 2036

1. Market Value at beginning of year $17,000,484 $16,418,089 $15,815,314 $15,188,965 $14,537,876 $13,863,362

2. Contributions 1,242,213 1,231,654 1,221,185 1,210,805 1,200,513 1,190,309

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,811,772 1,740,483 1,667,170 1,592,145 1,515,708 1,438,153

b. Terminated vested participants 285,253 294,018 303,186 312,502 321,009 329,122

c. Current actives 671,460 695,969 722,589 749,112 774,061 798,223

d. New entrants 9,341 12,263 16,378 21,656 27,748 34,749

e. Total 2,777,826 2,742,733 2,709,323 2,675,415 2,638,526 2,600,247

5. Administrative expenses 244,954 247,404 249,878 252,376 254,900 257,449

6. Investment earnings 1,198,172 1,155,708 1,111,667 1,065,897 1,018,399 969,214

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $16,418,089 $15,815,314 $15,188,965 $14,537,876 $13,863,362 $13,165,189

8. Available resources: (1)+(2)+(3)-(5)+(6) $19,195,915 $18,558,047 $17,898,288 $17,213,291 $16,501,888 $15,765,436

9. Solvency Ratio: (8)÷(4e) 6.91 6.77 6.61 6.43 6.25 6.06

2037 2038 2039 2040 2041 2042

1. Market Value at beginning of year $13,165,189 $12,450,603 $11,729,279 $10,996,367 $10,247,317 $9,479,446

2. Contributions 1,180,191 1,170,160 1,160,213 1,150,351 1,140,573 1,130,879

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 1,359,783 1,280,920 1,201,906 1,123,083 1,044,818 967,479

b. Terminated vested participants 333,258 334,665 336,035 337,098 335,944 333,694

c. Current actives 817,410 826,975 839,556 854,981 872,354 887,809

d. New entrants 42,890 53,426 65,388 78,241 92,293 107,628

e. Total 2,553,341 2,495,986 2,442,885 2,393,403 2,345,409 2,296,610

5. Administrative expenses 260,024 262,624 265,250 267,903 270,582 273,288

6. Investment earnings 918,588 867,126 815,010 761,905 707,547 651,821

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $12,450,603 $11,729,279 $10,996,367 $10,247,317 $9,479,446 $8,692,248

8. Available resources: (1)+(2)+(3)-(5)+(6) $15,003,944 $14,225,265 $13,439,252 $12,640,720 $11,824,855 $10,988,858

9. Solvency Ratio: (8)÷(4e) 5.88 5.70 5.50 5.28 5.04 4.78

ROOFERS42_0042
Exhibit X: Deterministic Projection of Proposed Suspension (continued)

Composition Roofers Local 42 Pension Plan

Assuming Negative 0.86% Trend in Annual Contribution Base Units

Projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2019 through December 31, 2050.

2043 2044 2045 2046 2047 2048

1. Market Value at beginning of year $8,692,248 $7,888,883 $7,069,681 $6,232,726 $5,377,103 $4,500,842

2. Contributions 1,121,266 1,111,735 1,102,286 1,092,916 1,083,626 1,074,416

3. Withdrawal liability payments 0000004. Benefit payments

a. Current retirees and beneficiaries 891,474 817,223 745,128 675,562 608,867 545,358

b. Terminated vested participants 328,797 323,000 316,699 309,378 300,768 291,365

c. Current actives 897,611 902,899 906,326 906,364 903,956 900,669

d. New entrants 125,550 145,710 166,846 189,524 213,679 240,853

e. Total 2,243,432 2,188,832 2,134,999 2,080,828 2,027,270 1,978,245

5. Administrative expenses 276,020 278,781 281,568 284,384 287,228 290,100

6. Investment earnings 594,821 536,676 477,326 416,673 354,611 290,852

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $7,888,883 $7,069,681 $6,232,726 $5,377,103 $4,500,842 $3,597,765

8. Available resources: (1)+(2)+(3)-(5)+(6) $10,132,315 $9,258,513 $8,367,725 $7,457,931 $6,528,112 $5,576,010

9. Solvency Ratio: (8)÷(4e) 4.52 4.23 3.92 3.58 3.22 2.82

2049 2050

1. Market Value at beginning of year $3,597,765 $2,664,9822. Contributions 1,065,283 1,056,228

3. Withdrawal liability payments 0 04. Benefit payments

a. Current retirees and beneficiaries 485,337 429,093b. Terminated vested participants 280,775 269,726c. Current actives 892,892 880,009d. New entrants 271,131 302,402e. Total 1,930,135 1,881,230

5. Administrative expenses 293,001 295,931

6. Investment earnings 225,070 157,112

7. Market Value at end of year:

(1)+(2)+(3)-(4e)-(5)+(6) $2,664,982 $1,701,161

8. Available resources: (1)+(2)+(3)-(5)+(6) $4,595,117 $3,582,3919. Solvency Ratio: (8)÷(4e) 2.38 1.90

ROOFERS42_0043
Exhibit XI: Deterministic Projection of Funded Percentage of Proposed Suspension

Composition Roofers Local 42 Pension Plan

Projected Market Value of Assets and Funded Percentage for the Plan Years beginning January 1, 2019 through January 1, 2051.

2019 2020 2021 2022 2023 2024

1. Value of plan assets $22,362,057 $22,598,582 $22,019,607 $21,715,445 $21,383,611 $21,039,8612. Unit credit accrued liability $53,005,207 $36,157,397 $35,977,183 $35,735,135 $35,417,418 $35,034,121

3. Funded percentage: (1) ÷ (2) 42.2% 62.5% 61.2% 60.8% 60.4% 60.1%

2025 2026 2027 2028 2029 2030

1. Value of plan assets $20,687,090 $20,289,459 $19,846,745 $19,365,841 $18,864,646 $18,522,852

2. Unit credit accrued liability $34,612,678 $34,148,803 $33,637,425 $33,088,397 $32,521,463 $31,942,208

3. Funded percentage: (1) ÷ (2) 59.8% 59.4% 59.0% 58.5% 58.0% 58.0%

2031 2032 2033 2034 2035 2036

1. Value of plan assets $18,175,567 $17,831,591 $17,495,893 $17,167,317 $16,846,883 $16,538,260

2. Unit credit accrued liability $31,348,175 $30,749,772 $30,151,693 $29,545,357 $28,937,755 $28,326,542

3. Funded percentage: (1) ÷ (2) 58.0% 58.0% 58.0% 58.1% 58.2% 58.4%

2037 2038 2039 2040 2041 2042

1. Value of plan assets $16,243,739 $15,973,285 $15,739,488 $15,540,637 $15,375,549 $15,245,163

2. Unit credit accrued liability $27,713,006 $27,110,541 $26,532,649 $25,974,518 $25,433,125 $24,904,185

3. Funded percentage: (1) ÷ (2) 58.6% 58.9% 59.3% 59.8% 60.5% 61.2%

2043 2044 2045 2046 2047 2048

1. Value of plan assets $15,152,864 $15,105,993 $15,109,371 $15,165,908 $15,279,874 $15,454,872

2. Unit credit accrued liability $24,390,736 $23,898,611 $23,429,416 $22,986,552 $22,571,704 $22,187,123

3. Funded percentage: (1) ÷ (2) 62.1% 63.2% 64.5% 66.0% 67.7% 69.7%

2049 2050 2051

1. Value of plan assets $15,690,709 $15,990,927 $16,361,1032. Unit credit accrued liability $21,828,875 $21,496,102 $21,192,437

3. Funded percentage: (1) ÷ (2) 71.9% 74.4% 77.2%

ROOFERS42_0044
Exhibit XII – Participant Information 

Composition Roofers Local 42 Pension Plan

All Participants

Age Number Before Suspension After Suspension

Group* of Lives Total Average Total Average

< 19 0 $ 0 $ 0 $ 0 $ 0

20-24 3 255 85 246 82

25-29 15 1,804 120 1,722 115 

30-34 22 5,100 232 4,655 212 

35-39 29 10,412 359 8,278 285 

40-44 39 17,146 440 13,350 342 

45-49 34 20,702 609 14,740 434 

50-54 44 33,645 765 23,085 525 

55-59 51 57,873 1,135 35,574 698 

60-64 73 94,739 1,298 64,296 881 

65-69 64 82,519 1,289 53,717 839 

70-74 46 64,313 1,398 43,173 939 

75-79 33 31,932 968 26,348 798 

80 + 32 30,124 941 30,124 941 

Total 485 450,563$ 929$ 319,309$ 658$ 

* Age at Suspension Date.

Monthly Benefit Monthly Benefit

ROOFERS42_0045
Exhibit XII – Participant Information 

Composition Roofers Local 42 Pension Plan

Active Participants

Age Number Before Suspension After Suspension

Group* of Lives Total Average Total Average

< 19 0 $ 0 $ 0 $ 0 $ 0

20-24 3 255 85 246 82

25-29 15 1,804 120 1,722 115 

30-34 22 5,100 232 4,655 212 

35-39 24 7,629 318 6,618 276 

40-44 26 10,841 417 9,293 357 

45-49 24 15,021 626 11,047 460 

50-54 21 17,717 844 12,406 591 

55-59 25 38,354 1,534 23,470 939 

60-64 11 15,279 1,389 9,674 879 

65-69 2 4,532 2,266 2,741 1,371 

70-74 0 0 0 0 0

75-79 0 0 0 0 0

80 + 0 0 0 0 0

Total 173 116,532$ 674$ 81,873$ 473$ 

* Age at Suspension Date.

Monthly Benefit Monthly Benefit

ROOFERS42_0046
Exhibit XII – Participant Information 

Composition Roofers Local 42 Pension Plan

Participants In Payment

Age Number Before Suspension After Suspension

Group* of Lives** Total Average Total Average

< 19 0 $ 0 $ 0 $ 0 $ 0

20-24 0 0 0 0 0

25-29 0 0 0 0 0

30-34 0 0 0 0 0

35-39 0 0 0 0 0

40-44 0 0 0 0 0

45-49 1 200 200 194 194 

50-54 4 3,314 829 3,212 803 

55-59 8 7,147 893 4,983 623 

60-64 51 71,070 1,394 49,825 977 

65-69 61 77,609 1,272 50,763 832 

70-74 45 63,921 1,420 42,958 955 

75-79 33 31,932 968 26,348 798 

80 + 32 30,124 941 30,124 941 

Total 235 285,316$ 1,214$ 208,408$ 887$ 

* Age at Suspension Date.

** Includes disabled participants and their beneficiaries.

Monthly Benefit Monthly Benefit

ROOFERS42_0047
Exhibit XII – Participant Information 

Composition Roofers Local 42 Pension Plan

Terminated Vested Participants

Age Number Before Suspension

Group* of Lives Total Average Total Average

< 19 0 $ 0 $ 0 $ 0 $ 0

20-24 0 0 0 0 0

25-29 0 0 0 0 0

30-34 0 0 0 0 0

35-39 5 2,782 556 1,660 332 

40-44 13 6,305 485 4,056 312 

45-49 9 5,480 609 3,498 389 

50-54 19 12,614 664 7,467 393 

55-59 18 12,372 687 7,121 396 

60-64 11 8,390 763 4,797 436 

65-69 1 378 378 212 212 

70-74 1 392 392 216 216 

75-79 0 0 0 0 0

80 + 0 0 0 0 0

Total 77 48,715$ 633$ 29,028$ 377$ 

* Age at Suspension Date.

Monthly Benefit Monthly Benefit

After Suspension

ROOFERS42_0048
Exhibit XII – Participant Information 

Composition Roofers Local 42 Pension Plan

Participants Beneficiaries Alternate Payees Total

Counts as of December 31, 2017 * 426 52 7 485

Average Monthly Benefit Before Proposed Suspension $947 $803 $741 $929

Average Monthly Benefit After Proposed Suspension $653 $715 $563 $658

Percentage Reduction in Average Monthly Benefit 31.08% 10.96% 23.94% 29.13%

Reduction in Present Value of Benefits Due to Proposed Suspension ** $16,055,099 $536,677 $147,768 $16,739,544

* Based on data summarized in this application.

** Represents the change in the present value of future liabilities as of January 1, 2020 between the current plan and the proposed suspension.

Percentage reduction in benefits Count

No reduction 73

Greater than 0% but less than 5% 68

At least 5% but less than 10% 68

At least 10% but less than 15% 35At least 15% but less than 20% 10At least 20% but less than 25% 16At least 25% but less than 30% 26At least 30% but less than 35% 27At least 35% but less than 40% 35At least 40% but less than 45% 23

45% or more 104

Total number of participants impacted by proposed suspension 412

Grand Total 485

ROOFERS42_0049
Exhibit XIII: Plan Provisions 

Composition Roofers Local 42 Pension Plan

1. Effective Date: June 1, 1964. 

2. Plan Year: January 1st through December 31st. 

3. Covered Employees: All employees covered by the Local 42 Collective 

Bargaining Agreement. 

4. Eligibility: 1st of the month coincident with or following the 

completion of 1,000 Hours of Service. 

5. Year of Service: 1 Year of Service for each Plan Year during which at 

least 1,000 Hours of Service are worked. If the 

participant works less than 1,000 hours, 1

/10 of a Year 

of Service is earned for each 100 Hours of Service 

worked. 

6. Actuarial Equivalency: UP 1984 Mortality Table at 7.00%. 

7. Payment Forms:

a. Normal Single Life Annuity for single participants and an 

Actuarially Equivalent 50% Joint & Survivor 

Annuity (QJSA) for married participants. 

b. Optional Actuarially Equivalent 75% (QOSA) or 100% Joint 

& Survivor Annuity. 

ROOFERS42_0050
Exhibit XIII: Plan Provisions 

Composition Roofers Local 42 Pension Plan

8. Normal Retirement:

a. Eligibility Age 58 or the 5th anniversary of Plan participation. 

b. Monthly Benefit The sum of the following benefit credits: 

i. Past Service $4.20 per month multiplied by Years of Service before 

June 1, 1964, with a maximum of 20 Years of Service. 

ii. Future Service Based on a percentage of Employer contributions 

made on behalf of the participant in accordance with 

the following table: 

Effective Date Percentage 

6/1/1964 5.220% 

6/1/1965 2.616% 

6/1/1966 1.740% 

6/1/1972 2.040% 

6/1/1974 2.040% 1

1/1/1980 2.880% 1

1/1/1984 2.450% 

1/1/1994 2.100% 

1/1/2009 1.000% 2

1

 Accrual is based on the specified percentage of 

contribution in excess of $0.15 per hour. 

2

 Accrual is based on contributions up to $3.00 per 

hour effective 1/1/2009 and $2.10 per hour 

effective 1/1/2010. 

In addition, accrued benefits were increased as 

follows: 

Effective Date Actives Retirees 

12/31/1986 10% 10% 

12/31/1988 5% 5% 

12/31/1989 15% 15% 

12/31/1997 10% 10% 

12/31/1999 5% 5% (min $25) 

ROOFERS42_0051
Exhibit XIII: Plan Provisions 

Composition Roofers Local 42 Pension Plan

9. Early Retirement:

a. Eligibility Age 55 and 5 Years of Service. 

b. Monthly Benefit Calculated as for Normal Retirement actuarially 

reduced from age 58. 

10. Vested Retirement:

a. Eligibility 5 Years of Service. 

b. Monthly Benefit Calculated as for Normal or Early Retirement. 

11. Disability Benefit:

a. Eligibility Total and Permanent Disability and 5 Years of 

Service. 

b. Monthly Benefit Calculated as for Normal Retirement actuarially 

reduced from age 58. Effective April 1, 2020, an 

additional 45% reduction is applied to benefits earned 

as of April 1, 2020. 

12. Pre-Retirement Death:

a. Eligibility 5 Years of Service. 

b. Monthly Benefit Surviving Spouses receive the survivor’s annuity 

calculated as for an age 55 Early Retirement 

reflecting a 50% Joint & Survivor Annuity payment 

form with death immediately after Early Retirement. 

ROOFERS42_0052
Exhibit XIII: Plan Provisions 

Composition Roofers Local 42 Pension Plan

13. Employer Contributions: Effective Date Hourly Rate 

1/1/2009 $3.40 

 1/1/2010 $3.40 

 8/1/2010 $3.60 

 8/1/2011 $3.80 

 8/1/2012 $4.00 

 8/1/2013 $4.20 

 8/1/2014 $4.40 

 8/1/2015 $4.60 

 8/1/2016 $4.80 

 8/1/2017 $5.00 

 8/1/2018 $5.20 

 8/1/2019 $5.40 

 8/1/2020 $5.60 

 8/1/2021 $5.80 

 8/1/2022 $6.00 

 8/1/2023 $6.20 

14. Proposed Benefit Suspension: Proposed Suspension as detailed in the Pension 

Recovery Program is effective April 1, 2020. All 

applicable age, guarantee, and disability-based 

limitations have been applied based on our 

understanding of the Final Regulations for 

Suspension of Benefits under the Multiemployer 

Pension Reform Act of 2014. 

ROOFERS42_0053
Exhibit XIII: Assumptions & Methods 

Composition Roofers Local 42 Pension Plan

1. Interest Rates: 6.50%. 

2. Mortality Rates:

a. Non-Disabled RP-2014 with Blue Collar adjustment. 

b. Disabled RP-2014 Disabled Retiree. 

c. Base Rate Adjustment 2006 using Scale MP-2014. 

d. Future Projections Generational projection using Scale MP-2017. 

3. Actuarial Cost Method: Unit Credit. 

4. Retirement Rates: Terminated 

Age Actives Vesteds 

55-56 0.10 0.10 

57 0.20 0.20 

58 0.30 0.50 

59-60 0.20 0.10 

61 0.40 0.10 

62 1.00 0.10 

63-65 1.00 0.50 

66-69 1.00 0.20 

70 1.00 1.00 

5. Expense Load: $400,000 in the 2019 Plan Year, $190,668 in the 2020 

Plan Year, and increased 1% per year thereafter. 

ROOFERS42_0054
Exhibit XIII: Assumptions & Methods 

Composition Roofers Local 42 Pension Plan

6. Number of Hours Worked: 250,000; 1,278.82 per year per active participant. 

7. Termination Rates: For years 1 and 2 – 0.20; for years 3 and later: 

Age Rate

 25 0.0967 

 35 0.0871 

 45 0.0635 

 55 0.0155 

 65 0.0000 

8. Disability Rates: Age Rate 

 25 0.0009 

 35 0.0015 

 45 0.0032 

 55 0.0083 

 65 0.0000 

9. Assumed Form of Payment: Payment Form Election % 

Single Life Annuity 51% 

50% Joint and Survivor 15% 

75% Joint and Survivor 8% 

100% Joint and Survivor 26% 

10. Rationale for Selection of Assumptions: Many actuarial assumptions used in this report are 

described in detail in the information included in 

response to Revenue Procedure 2017-43 Appendix B. 

The selection of other assumptions is based on the 

actuary's best estimate of future expectations based on 

the examination of recent actual results compared to 

expectations, periodic experience studies, industry 

materials, and any reasonably certain information 

available. 

ROOFERS42_0055
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT C 

PLAN SPONSOR’S DETERMINATION OF PROJECTED INSOLVENCY

ROOFERS42_0056
As required by Section 432(e)(9)(C)(ii), the Board of Trustees has determined that the Plan 

would not be projected to avoid insolvency if no suspension of benefits were applied under the 

Plan, even though all reasonable measures to avoid insolvency have been taken.

On March 31, 2010, the Plan was certified by its actuary to be in critical status for the plan year 

beginning January 1, 2010. The Board adopted an initial rehabilitation plan and expected the 

Plan to emerge from critical status by the end of the 10-year rehabilitation period. In 2014, 

after consulting with the Plan’s actuary and reviewing projections, the Board determined that 

based on reasonable assumptions, the Plan would not emerge from critical status within the 

updated rehabilitation period. In August 2014, the Board adopted a modified rehabilitation plan 

designed to forestall insolvency. 

Measures Taken to Avoid Insolvency- The Board has taken the following actions to avoid 

insolvency over the past 10 plan years immediately preceding the plan year in which this 

application was filed:

 The Plan utilizes a percentage of contribution benefit formula. Effective January 1, 2009,

the benefit formula was reduced from 2.1% of credited contributions to 1.0% of

credited contributions made on behalf of Plan participants.

 In conjunction with the reduction in the benefit formula, the Board reduced the portion

of contributions that were subject to accrual (from $3.40 per hour in December 2008 to

$2.10 per hour by January 2010). A proportionate share of contributions for

apprentices, reciprocal contributions and other classifications are subject to the nonaccrual formula. As shown below, the amount of journeyman contributions subject to

accrual has not changed from $2.10 since 2010. This is down from a high of $3.40 that

was in effect from August 2005 through December 2008.

 Since August 2010, employer contributions have increased by $.20 per hour on an

annual basis and this new money has been used solely to improve the financial

condition of the Plan—and not for benefit accrual. By August 2023, nearly two-thirds of

the contributions received will be non-benefit accruing. The Board believes this

approach is untenable beyond 2023 as active participants are unlikely to continue to

support such increases.

 Effective May 1, 2010, disability pension benefits were eliminated for any participant

who had not earned at least five years of credited service at the time of disability. The

unreduced disability benefit was eliminated and replaced with a disability reduced by

5/9 of 1% for each month that disability precedes age 58. The maximum reduction was

ROOFERS42_0057
capped at 20%. The Board initially considered whether to apply additional reductions or 

eliminate this benefit altogether, but was concerned about the devastating financial 

impact this change could have on the most vulnerable participants. Effective for 

applications received on and after July 1, 2019 the Board has voted to implement a full 

actuarial reduction on disability benefits and to eliminate the 20% cap. 

 Pre-retirement death benefits for non-vested participants, participants married less

than one year and unmarried participants were eliminated as of May 1, 2010.

 Postretirement lump-sum death benefits were eliminated for participants with an

annuity starting date on or after May 1, 2010. Following that date the only

postretirement death benefits payable will be in the form of qualified joint and survivor

annuity, or a qualified optional survivor annuity.

 The qualified preretirement survivor annuity for eligible spouses was reduced from a

100% survivor annuity to a 50% survivor annuity, effective for those with an annuity

starting date on or after August 25, 2010.

 Effective July 1, 2019, the Board of Trustees implemented a full actuarial reduction on

all early retirement benefits.

Plan Factors- In accordance with Section 432(e)(9)(C)(ii), the Board offers the following 

information:

(1) For the past 10 plan years immediately preceding the plan year in which the application

is being submitted:

(a) Contribution levels

(b) Levels of benefit accruals, including any prior reductions in the rate of benefit

accruals.

Contribution

Effective Dates

Journeyman Basic

Pension Rate

Reserve

Rate

Credited 

Benefit

Rate

Benefit 

Accrual Rate

September 1988 

through July 1989

$1.75 $0.00 $1.75 2.45%

August 1989 

through July 1990

$2.00 $0.00 $2.00 2.45%

August 1990 

through July 1991

$2.25 $0.00 $2.25 2.45%

August 1991 $2.50 $0.00 $2.50 2.45% 

ROOFERS42_0058
through 

December 1993

January 1994

through July 1995

$2.50 $0.00 $2.50 2.10%

August 1995 

through October 

1996

$2.65 $0.00 $2.65 2.10%

November 1996 

through July 2002

$2.80 $0.00 $2.80 2.10%

August 2002 

through July 2005

$3.00 $0.00 $3.00 2.10%

August 2005 

through December 

2008

$3.40 $0.00 $3.40 2.10%

January 1, 2009 

through December 

31, 2009

$3.40 $0.40 $3.00 1.0%

January 1, 2010 

through July 31, 

2010

$3.40 $1.30 $2.10 1.0%

August 1, 2010 

through July 31, 

2011

$3.60 $1.50 $2.10 1.0%

August 1, 2011 

through July 31, 

2012

$3.80 $1.70 $2.10 1.0%

August 1, 2012 

through July 31, 

2013

$4.00 $1.90 $2.10 1.0%

August 1, 2013 

through July 31, 

2014

$4.20 $2.10 $2.10 1.0%

August 1, 2014 

through July 31, 

2015

$4.40 $2.30 $2.10 1.0%

August 1, 2015 

through July 31, 

2016

$4.60 $2.50 $2.10 1.0%

August 1, 2016 

through July 31, 

2017

$4.80 $2.70 $2.10 1.0%

August 1, 2017 

through July 31, 

2018

$5.00 $2.90 $2.10 1.0%

August 1, 2018 

through July 31, 

2019

$5.20 $3.10 $2.10 1.0%

August 1, 2019 

through July 31, 

2020

$5.40 $3.30 $2.10 1.0%

August 1, 2020 

through July 31, 

$5.60 $3.50 $2.10 1.0%

ROOFERS42_0059
The impact on benefit accrual has been significant. A participant working 1,300 hours in 

2008 would be expected to earn a benefit of $92.82 (2.1% x (1,300 hours x $3.40)). Despite 

the significant increase in employer contributions, in 2024 a participant working 1,300 hours 

is only expected to earn a benefit of $27.30 (1.0% x (1,300 hours x $2.10)). The active 

participants are growing frustrated with the continual reductions to benefits and are likely 

to withdraw support if this trend continues.

(c) Prior reductions of adjustable benefits under Section 432(e)(8) have been outlined

above and include the elimination of disability benefits for those with less than five (5) years 

of credited service; elimination of the unreduced disability benefits for active participants; 

elimination of the lump sum death benefits; a reduction of the qualified preretirement 

survivor annuity from 100% to 50%; and a full actuarial reduction on early retirement 

benefits. 

(d) The Plan has not previously suspended benefits under Section 432(e)(9).

(e) The role of attracting new employers is primarily the responsibility of the Local

Union. The Local and International Unions have organizers who actively seek new 

employers interested in a bargaining relationship. The Board has attempted to assist in 

attracting new employers by balancing the Plan’s contribution rates against the need for 

wage increases, health plan costs and other demands. A primary impediment to recruiting 

new employers continues to be the threat of withdrawal liability. Many contractors are not 

willing to accept responsibility for unfunded benefits in a plan that is struggling. The Local 

Union also works to maintain market share by identifying qualified workers who may be 

interested in employment with a signatory employer. Unfortunately, as the financial 

condition of the Pension Plan deteriorates, it becomes more difficult to attract quality 

roofers. A MPRA suspension would provide stability, certainty and make it easier to attract 

and retain new contractors and experienced roofers.

2021

August 1, 2021 

through July 31, 

2022

$5.80 $3.70 $2.10 1.0%

August 1, 2022 

through July 31, 

2023

$6.00 $3.90 $2.10 1.0%

August 1, 2023 

through July 31, 

2024

$6.20 $4.10 $2.10 1.0%

ROOFERS42_0060
(2) The Board has conferred with the Plan actuary and determined that the remaining

ancillary benefits are de-minimis and have no material impact on the Plan’s solvency. The

Board continues to believe that some type of early retirement benefit and disability benefit

are necessary given the very physical nature of the trade. Many participants will be

physically unable to work to normal retirement age and the disability/early retirement

options provide an essential safety net.

(3) The average compensation for a roofer in Metropolitan Cincinnati, OH-KY-IN is $40,070.1

The hourly wage for a journeyman working under the Roofers Local 42 collective bargaining

agreement is currently $27.11. The Plan’s actuary assumes the average participant will work

1,278.82 hours per year, for an annual salary (at $27.11/hr) of $34,668.81.

(4) Competitive and other economic factors facing contributing employers. The competitive

landscape in the Greater Cincinnati market has become increasingly difficult for the

employers who participate in the Plan. Issues cited by the employers include:

 Traditionally, large scale commercial roofing projects for governmental entities were

performed under prevailing wage laws. This allowed contractors to compete against

other employers who were paying a living wage and providing quality benefits to their

workforce. As of 2017, the prevailing wage laws have either been repealed, or

significantly reduced in scope. Instead of competing against other reputable companies,

the contributing employers to the Roofers Local 42 Pension Plan must contend with

contractors who treat their roofers as 1099 independent contractors and/or utilize lowskilled day laborers. This allows their competitors to severely undercut the responsible

contractors in the area.

 Unlike electricians, plumbers, pipefitters and some other skilled trades, the roofing

industry is largely unregulated. No license is required to become a roofing contractor

and the barriers to entry are very low. New generations of roofing systems require

relatively little in the way of specialized knowledge or expensive equipment. Suppliers

rent robotic heat welders to new contractors and delivery of materials is handled by the

roofing distributors. This drives down costs and pushes skilled contractors to projects

that are more complicated and entail greater financial risk.

1 May 2016 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates

Cincinnati, OH-KY-IN, OES State Occupational Employment and Wage Estimates. (n.d.). Retrieved April 4, 2017, 

from: https://www.bls.gov/oes/current/oes_17140.htm#47-0000. The median hourly rate is $18.29, but this 

includes lower skilled residential workers and assumes 2,080 hours worked per year. The average participant in the 

Fund will not have the opportunity to work 2,080 hours in a year. 

ROOFERS42_0061
 In the past, many industrial and commercial property owners would only work with a

contractor who had a bargaining relationship with a labor organization. Today, there is

only one employer left in the Cincinnati area who insists on using a signatory contractor.

Again, this opens the market to contractors with relatively little experience and

compresses the profit margins of the signatory employers.

 Approximately 20 years ago, there were 14 signatory employers in the Greater

Cincinnati area who contributed to the Plan. Over the years this number has dwindled

to five regular employers. At the same time, several new employers have entered the

market and none have established a bargaining relationship with the Local Union. As

explained above, it is difficult to organize a new employer given the instability and

uncertainty surrounding the Plan.

 The Plan’s unfunded liabilities make it difficult for the employers to merge, sell or

otherwise transition their businesses. The contingent withdrawal liability has also raised

questions by bonding companies who may be hesitant to underwrite contributing

employers.

How Plan Factors Were Taken into Account and Other Factors Considered- The Board of 

Trustees weighed and applied each of the factors listed below when determining that all 

reasonable measures were taken to avoid insolvency.

 An analysis of the contribution levels, benefit reductions and current benefit accrual

rates caused the Board to conclude that it was not possible to solve the Plan’s funding

issues through additional rate increases or benefit cuts. The hourly contribution rate has

increased from $3.40 to $5.20 in the past decade and will climb to $6.20 by August

2023—for a total increase of 83%. At the same time, the portion of the hourly

contribution that accrues a benefit has dropped from $3.40 to $2.10—and the benefit

formula decreased from 2.1% of contributions to 1.0% of contributions. By August 2023,

the active participants will only receive benefit accrual credit for 34% of the hourly

contribution made on their behalf. The active participant population is frustrated with

the retirement plan and are looking for options. Some have left the industry altogether,

while others have gone to work out of the area and stopped reciprocal contributions.

Adding further contributions or benefit cuts to the active population is not a realistic

option.

ROOFERS42_0062
 The changes made to adjustable benefits outlined above have contributed to the

frustration of the active participant population. As explained above, the only remaining

adjustable benefits are de-minimis. The elimination of these benefits would have a

devastating impact on participants who are physically unable to work at the trade late in

their career, but would provide no meaningful impact on the Plan’s solvency. For that

reason the Board has decided to retain these de-minimis benefits.

 The ability to retain the group’s current employers and to attract new employers is key

to the Plan’s long-term solvency. In order to accomplish these goals, a permanent

solution needs to be implemented that will guarantee the financial stability of the Plan

for decades to come. The Board determined that additional increases, cuts to the

benefit accrual formula and similar changes will only aggravate the current problems.

 As explained above, the bargaining parties have agreed to continue to increase the

hourly contribution rate by $.20 per hour through August 2023. This steady increase is

designed to balance the needs of the Plan against the personal financial needs of the

active participant population. While the hourly wage of the active participants is higher

versus others in the industry, they work fewer hours. Therefore, the Board believes that

contribution rates outlined in the rehabilitation plan are reasonable.

ROOFERS42_0063
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT D 

DEMONSTRATION THAT LIMITATIONS ON INDIVIDUAL

SUSPENSIONS ARE SATISFIED

ROOFERS42_0064
Composition Roofers Local 42 Pension Plan

Application for Benefit Suspension

Demonstration that Limitations on Individual Suspensions are Satisfied

Example of Guarantee-Based Limitation for Retiree and Contingent Beneficiary

Contingent

Participant Beneficiary

Date of Birth 9/1/1959 5/22/1965

Date of Retirement 9/1/2017 9/1/2017

Age at Retirement Date 58 years 0 months 52 years 3 months

Age at Suspension Date 60 years 7 months 54 years 10 months

Optional Form of Payment 50% Joint & Survivor 

Annuity

50% Joint & Survivor 

Annuity

Current Monthly Benefit $1,413.75 $706.88

Total Service 27.20 27.20

Calculation of 110% of PBGC Guarantee

Current Monthly Benefit $1,413.75 $706.88

Accrual Rate $51.98 $25.99

PBGC Guaranteed Accrual Rate $35.75 $22.24

PBGC Guaranteed Benefit $972.40 $604.93

110% of PBGC Guaranteed Benefit $1,069.64 $665.42

Calculation of Monthly Benefit under Proposed 

Suspension

Current Monthly Benefit $1,413.75 $706.88

Base 45% Reduction $636.19 $318.10

Benefit prior to Guarantee-Based Limitation $777.56 $388.78

Benefit after Guarantee-Based Limitation $1,069.64 $665.42

Final Monthly Benefit under Proposed Suspension $1,069.64 $665.42

ROOFERS42_0065
Composition Roofers Local 42 Pension Plan

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Guarantee-Based Limitation for Future Retiree

Participant

Date of Birth 12/3/1976

Normal Retirement Date 1/1/2035

Age at Normal Retirement Date 58 years 0 months

Age at Suspension Date 43 years 3 months

Assumed Form of Payment Single Life Annuity

Monthly Benefit Earned as of Suspension Date * $850.25

Total Service as of Suspension Date * 15.50

Calculation of 110% of PBGC Guarantee* 

Monthly Benefit Earned as of Suspension Date $850.25

Accrual Rate $54.85

PBGC Guaranteed Accrual Rate $35.75

PBGC Guaranteed Benefit $554.13

110% of PBGC Guaranteed Benefit $609.54

Calculation of Monthly Benefit under Proposed Suspension 

Monthly Benefit Earned as of Suspension Date $850.25

Base 45% Reduction $382.61

Benefit prior to Guarantee-Based Limitation $467.64

Benefit after Guarantee-Based Limitation $609.54

Final Monthly Benefit under Proposed Suspension** $609.54

*

** Payable at Normal Retirement. These amounts could change based on age and form of payment 

elected at retirement.

Calculated based on estimated service and accruals.

ROOFERS42_0066
Composition Roofers Local 42 Pension Plan

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Guarantee-Based Limitation for Disabled Retiree and Contingent Beneficiary Under Age 75

Contingent

Participant Beneficiary

Date of Birth 11/3/1965 4/9/1967

Date of Disability 1/1/2017 1/1/2017

Age at Disability Date 51 years 1 months 49 years 8 months

Age at Suspension Date 54 years 4 months 52 years 11 months

Optional Form of Payment 50% Joint & Survivor 

Annuity

50% Joint & Survivor 

Annuity

Type of Pension Disability Disability

Current Monthly Benefit $647.72 $323.86

Total Service 15.00 15.00

Calculation of 110% of PBGC Guarantee

Current Monthly Benefit $647.72 $323.86

Accrual Rate $43.18 $21.59

PBGC Guaranteed Accrual Rate $35.14 $18.94

PBGC Guaranteed Benefit $527.04 $284.15

110% of PBGC Guaranteed Benefit $579.74 $312.56

Calculation of Monthly Benefit under Proposed 

Suspension

Current Monthly Benefit $647.72 $323.86

Benefit after Disability-Based Limitation $647.72 $178.12

Final Monthly Benefit under Proposed Suspension $647.72 $323.86

ROOFERS42_0067
Composition Roofers Local 42 Pension Plan

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Guarantee-Based Limitation for Future Disabled Retiree

Date of Birth 3/1/1965

Normal Retirement Date 3/1/2023

Age at Normal Retirement Date 58 years 0 months

Age at Suspension Date 55 years 2 months

Assumed Form of Payment Single Life Annuity

Monthly Benefit Earned as of Suspension Date * $1,788.01

Total Service as of Suspension Date 23.50

Assumed Disability Date 3/1/2022

Age at Disability Date 57 years 0 months

Calculation of Monthly Benefit **

Monthly Benefit Earned as of Suspension Date $1,788.01

Base 45% Reduction $804.60

Reduced Monthly Benefit Earned as of Suspension Date $983.41

Monthly Benefit Earned after Suspension Date * $51.47

Total Monthly Benefit Earned as of Disability Date $1,034.88

Early Retirement Reduction 0.90727 

Total Monthly Benefit Payable at Disability Date *** $938.91

Assumed Form of Payment Single Life Annuity

Final Benefit Payable at Disability Date $938.91

* Calculated based on estimated service and accruals.

**

***

Assumes adoption of Plan Amendment modifying Disability benefits to define them as the actuarially

reduced benefit subject to a 45% reduction at retirement.

These amounts could change based on age and form of payment elected at retirement.

ROOFERS42_0068
Composition Roofers Local 42 Pension Plan

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Age-Based Limitation for Retiree and Contingent Beneficiary Between Age 75 and Age 79

Contingent

Participant Beneficiary

Date of Birth 2/16/1943 4/27/1945

Date of Retirement 3/1/2005 3/1/2005

Age at Retirement Date 62 years 0 months 59 years 10 months

Age at Suspension Date 77 years 1 months 74 years 11 months

Optional Form of Payment 66 2⁄3% Joint & 

Survivor Annuity

66 2⁄3% Joint & 

Survivor Annuity

Current Monthly Benefit $3,617.28 $2,411.52

Current Monthly Benefit without Late Retirement Increase $2,860.80 $1,907.20

Total Credited Service 34.40 34.40

Calculation of 110% of PBGC Guarantee

Current Monthly Benefit without Late Retirement Increase $2,860.80 $1,907.20

Accrual Rate $83.16 $55.44

PBGC Guaranteed Accrual Rate $35.75 $35.75

PBGC Guaranteed Benefit $1,229.80 $1,229.80

110% of PBGC Guaranteed Benefit $1,352.78 $1,352.78

Calculation of Monthly Benefit under Proposed 

Suspension

Current Monthly Benefit $3,617.28 $2,411.52

Base 45% Reduction $1,627.78 $1,085.18

Benefit Prior to Age-Based Limitation $1,989.50 $1,352.78

Number of Months for Age-Based Limitation * 34 34

Benefit after Age-Based Limitation $2,694.87 $1,811.57

Final Monthly Benefit under Proposed Suspension $2,694.87 $1,811.57

* Assumes Contingent Beneficiary does not go into payment before Suspension Date.

ROOFERS42_0069
Composition Roofers Local 42 Pension Plan

Application for Benefit Suspension

Demonstration That Limitations on Individual Suspensions are Satisfied

Example of Age-Based Limitation for Future Retiree Between Age 75 and Age 79

Participant

Date of Birth 4/16/1944

Assumed Date of Retirement 5/1/2020

Age at Retirement Date 76 years 0 months

Age at Suspension Date 75 years 11 months

Optional Form of Payment Single Life Annuity

Monthly Benefit Earned as of Suspension Date $2,010.50

Monthly Benefit Earned as of Normal Retirement Date $1,500.40

Total Service as of Suspension Date 34.40

Calculation of 110% of PBGC Guarantee

Monthly Benefit Earned as of Suspension Date $2,010.50

Accrual Rate $58.44

PBGC Guaranteed Accrual Rate $35.75

PBGC Guaranteed Benefit $1,229.80

110% of PBGC Guaranteed Benefit $1,352.78

Calculation of Monthly Benefit under Proposed 

Suspension

Monthly Benefit Earned as of Normal Retirement Date $1,500.40

Late Retirement Factor 9.35327 

Late Retirement Benefit as of Retirement Date $14,033.64

Base 45% Reduction $6,315.14

Benefit Prior to Age-Based Limitation $7,718.50

Number of Months for Age-Based Limitation 48

Benefit after Age-Based Limitation $8,981.53

Final Monthly Benefit under Proposed Suspension $8,981.53

ROOFERS42_0070
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT E 

NOTICES

ROOFERS42_0071
Composition Roofers Local 42 Pension Plan 

205 West Fourth Street, Suite 225

Cincinnati OH 45202

(513) 977-3635

Dear Participant:

Over the past several months, you have received notices explaining that the Pension Plan is in 

“Critical and Declining” status. This means that the Plan is slowly running out of money and will 

not be able to pay all of the benefits that have been earned over the years. The current forecast 

from the actuary shows that the Plan will likely be out of money by 2030. The Plan has reached 

an important crossroads and the Board of Trustees is determined to take the necessary steps to 

preserve and protect your benefit. To help with this process, the Board worked with 

professional advisors to develop a Pension Recovery Program. This is being done to help ensure 

the Plan can survive for decades to come. 

Unfortunately, the Pension Recovery Program will require some participants, beneficiaries, exspouses and retirees to take a reduction in the amount of their monthly pension benefits. The 

Plan is applying to the Treasury Department for MPRA relief. MPRA gives Plans like ours the 

limited ability to reduce benefits in order to help stabilize the financial condition of their 

retirement plans. While no one wants to see a reduction occur, it is a necessary step if we want 

to save the Plan. If the Plan were to run out of money, benefits could be reduced below the 

levels of the Pension Recovery Program. 

Attached is a Notice of a Proposed Reduction of your Pension Benefits

The Pension Recovery Program was submitted to the Treasury Department on June 28, 2019. 

By law, we must send you the attached notice. We have put together this letter and other 

resources listed below to help you understand the situation, the options considered and the 

steps you need to take. 

The notice is divided into six main sections:

1. Why is the Board of Trustees proposing to reduce benefits?

2. What will happen if the Pension Plan runs out of money?

3. How did the Board of Trustees decide whose benefits to reduce and by how much?

4. What are the proposed reductions in benefits?

5. What comes next?

6. An individualized estimate that explains how benefits will be impacted by the Pension

Recovery Program.

ROOFERS42_0072
Next Steps

The MPRA application necessary to implement the Pension Recovery Program will be available 

on a Treasury Department website within 30 days

(https://www.treasury.gov/services/Pages/Plan-Applications.aspx). You can access this site to 

review the complete application, as well as applications from other plans that have filed. You 

will have the opportunity to review the application, comment on it and, upon approval of 

Treasury, to vote on the proposed Pension Recovery Program. We will continue to keep you 

informed throughout this process.

Additional Resources to Help Understand this Process

The Board of Trustees realizes that this process can be frustrating, confusing and difficult to 

understand. As a result, the Board has established a website that contains additional 

information (www.r42pensionrecovery.com). This website will be updated regularly and 

contain answers to frequently asked questions from participants, beneficiaries, ex-spouses and 

retirees. You can submit questions via email (info@r42pensionrecovery.com), or in writing to 

the Plan administrative offices -- Composition Roofers Local 42 Pension Plan, c/o American 

Benefit Corporation, 205 W 4th St #225, Cincinnati, OH 45202). You may also contact the Plan’s 

administrative offices at (513) 977-3635. 

Please Update Your Address!

Over the next several months, the Plan will be sending important updates and notices 

concerning the Pension Recovery program. In order to keep you properly informed, the 

Trustees would ask that you take the time to contact the administrative office to update your 

mailing address and email address (if available). The Trustees want to keep you informed and 

updated as to the status of the Pension Recovery efforts. You can contact the administrative 

office in writing, by telephone or by email (info@r42pensionrecovery.com).

Conclusion

The Board of Trustees has studied all options carefully and believes that the Pension Recovery 

Program is in the best interest of our group as a whole. No one associated with the Plan wants 

to reduce benefits, but it is the only way to sustain the Plan. We encourage you to carefully 

review the enclosed notice, the website and all other notices that follow. Your understanding 

and input is important to this process.

Sincerely,

The Board of Trustees

ROOFERS42_0073
NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS

On June 28, 2019 the Board of Trustees of the Composition Roofers Local 42 Pension Plan (“Plan”) 

submitted an application to the U.S. Treasury Department for approval to reduce benefits under the Plan.

This type of benefit reduction is allowed by the Federal law called the Multiemployer Pension Reform Act 

of 2014. 

You are getting this notice because you have a pension benefit under the Plan. The end of this notice 

describes the proposed reduction of your monthly payments.

1 This notice will also answer the following 

questions for you— 

1. Why is the Board of Trustees proposing to reduce benefits?

2. What will happen if the Plan runs out of money?

3. How did the Board of Trustees decide whose benefits to reduce and by how much?

4. What are the proposed reductions in benefits?

5. What comes next?

1. Why is the Board of Trustees proposing to reduce benefits?

The Plan’s actuary estimated that, unless benefits are reduced, the Plan will not have enough money to 

pay benefits in 2030. This estimate is based on how much money the actuary expects the Plan to receive 

and to pay out each year. The Plan’s actuary estimated that, with the reduction of benefits that the Board 

of Trustees has proposed, the plan should not run out of money.

2. What will happen if the Plan runs out of money?

If the Plan does not have enough money to pay benefits, then only the amount guaranteed by the Pension 

Benefit Guaranty Corporation (“PBGC”) will be paid. You can find the amount of your benefit that is 

guaranteed by PBGC at the end of this notice.

3. How did the Board of Trustees decide whose benefits to reduce and by how much?

Under Federal law, the Board of Trustees must apply the following rules to the proposed reduction— 

• The total reduction in everybody’s benefits must be estimated to be large enough to keep the

plan from running out of money but not larger than needed to do that.

• Your monthly benefit and the benefit of your beneficiary cannot be reduced below 110% of

the amount guaranteed by PBGC.

• Disability benefits (as defined under the Plan) cannot be reduced.

• The benefits of people who are at least 80 years old on April 30, 2020 and their beneficiaries

cannot be reduced.

• The benefits of people who are at least 75 years old on April 30, 2020 and their beneficiaries

are partially protected, and the closer the person is to age 80 the less the benefits can be

reduced.

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to

unions that represent Plan participants and to all contributing employers.

ROOFERS42_0074
• The reduction of benefits must be spread fairly among the people who have a pension benefit

under the Plan.

In deciding whether the proposed reduction is spread fairly, the Board of Trustees considered a list of 

factors contained in the applicable federal statutes and regulations. These factors include, but are not 

limited to: age and life expectancy, length of time in pay status, amount of benefit, type of benefit: 

survivor, normal retirement, early retirement, extent to which participant or beneficiary is receiving a 

subsidized benefit, extent to which participant or beneficiary has received post-retirement benefit 

increases, history of benefit increases and reductions, years to retirement for active employees, any 

discrepancies between active and retiree benefits, extent to which active participants are reasonably 

likely to withdraw support for the plan, accelerating employer withdrawals from the plan and increasing 

the risk of additional benefit reductions for participants in and out of pay status, and the extent to which 

benefits are attributed to service with an employer that failed to pay its full withdrawal liability. 

The law allows the Pension Recovery Program to apply differently to various categories of groups within 

the Plan, but the Board ultimately decided to treat all participants, retirees, beneficiaries and ex-spouses 

as uniformly as possible. However, the law protects certain groups from a full suspension (those aged 80 

and older are fully protected, those aged 75-79 have reduced suspensions and disabled participants are 

fully protected). The law also prevents the Board from reducing any person’s benefits below 110% of the 

PBGC guarantee. Therefore, not everyone will receive the same suspension.

4. What are the proposed reductions in benefits?

The Board of Trustees proposes the following reduction of benefits: To the extent possible, the Board 

intends to implement a flat 45% suspension to all participants, retirees, beneficiaries and ex-spouses. 

Again though, the law protects certain groups from a full suspension (those aged 80 and older are fully 

protected, those aged 75-79 have reduced suspensions and disabled participants are fully protected). The 

law also prevents the Board from reducing any person’s benefits below 110% of the PBGC guarantee. This 

means that MPRA will not have the exact same impact on everyone. 

If approved, the suspension would go into effect on April 1, 2020. There would be no phase-in 

implementation of the suspension, and it is expected that the suspension will remain in place 

permanently. Currently, the Plan is expected to be insolvent by 2030. If the Pension Recovery Program is 

approved, the Plan is expected to remain solvent indefinitely. 

5. What comes next?

Approval or denial of the application by the Treasury Department 

The Treasury Department will review the application to see whether it meets all of the legal requirements 

under Federal law. If the application meets all of those requirements, the Treasury Department is required 

to approve the application. If the application does not meet the legal requirements, the Treasury 

Department will deny the application. The Treasury Department will have until February 2020 to make a 

decision. 

ROOFERS42_0075
You can get information from the Treasury Department 

More information about the proposed benefit reductions and a copy of the application will be available 

at www.treasury.gov/mpra. 

The application will be available on that website within 30 days after the Treasury Department receives 

it. The application includes more information about the proposed reduction, including details about: 1) 

the Plan actuary’s certification that the Plan will run out of money (that is, that the plan is in “critical and 

declining status”); 2) how the proposed reduction would satisfy the requirement that it be large enough 

so that the Plan is estimated not to run out of money, while not being larger than needed; and 3) the 

sensitivity of these estimates to the assumptions used.

The application describes the steps the Board of Trustees has already taken to keep the Plan from running 

out of money and why the Board of Trustees believesthat a benefit reduction is the only remaining option 

to keep the Plan from running out of money. In addition, the application explains why the Board of 

Trustees believes that the proposed reduction is spread fairly among the people who have a pension 

benefit under the Plan.

The Treasury Department website will also provide updated information on the application, such as 

whether the application has been withdrawn.

For further information and assistance, you can also write to the Treasury Department at the following 

address:

Department of the Treasury

Attn: MPRA Office, Room 1204

1500 Pennsylvania Avenue, NW

Washington, DC 20220

You can comment on the application to reduce benefits

You will be able to submit a comment on the application by going to www.treasury.gov/mpra. Comments 

may also be mailed to the Treasury Department, at the address listed above. All interested parties can 

make comments, and the comments will be publicly available.

Retiree Representative

If a plan has 10,000 or more participants, the Board of Trustees must select a retiree representative to 

advocate for the interests of retirees, beneficiaries, and deferred vested participants as part of this 

process. A plan is required to pay the reasonable expenses of the retiree representative.

The Board of Trustees is not required to select a retiree representative, because the Plan has fewer than 

10,000 participants. The Board of Trustees has not chosen to select a retiree representative.

Vote on the proposed benefit reduction

If the application for the proposed reduction of benefits is approved by the Treasury Department, then 

you will have the opportunity to vote on the proposed reduction. Unless a majority of all participants and 

beneficiaries of the Plan vote to reject the reduction, the Treasury Department must allow the reduction 

of benefits to take effect. This means that not voting counts the same as a vote to approve the reduction. 

ROOFERS42_0076
Your right to see Plan documents

You may want to review Plan documents to help you understand your rights and the proposed reduction 

to your benefits. The Plan administrator must respond to your request for the following documents within 

30 days:

• The Plan document (including any amendments adopted to reflect an authorized reduction of

benefits), trust agreement, and other documents governing the Plan (such as collective bargaining

agreements).

• The Plan’s most recent summary plan description (SPD or plan brochure) and any summary of

material modifications.

• The Plan’s Form 5500 annual reports, including the accountant’s report and audited financial

statements, filed with the U.S. Department of Labor during the last six years.

• The annual funding notices furnished by the Plan during the last six years.

• Actuarial reports, including reports prepared in anticipation of the benefit reduction, furnished to

the Plan within the last six years.

• The Plan’s current rehabilitation plan, including contribution schedules, and, if the proposed

benefit reduction goes into effect, annual plan-sponsor determinations that all reasonable

measures to avoid running out of money continue to be taken and that the Plan would run out of

money if there were no benefit reductions.

• Any quarterly, semi-annual, or annual financial reports prepared for the Plan by an investment

manager, fiduciary, or other advisor and furnished to the Plan within the last six years.

The Plan administrator may charge you the cost per page to the Plan for the cheapest way of copying 

documents, but cannot charge more than 25 cents per page. The Plan’s Form 5500 Annual Return/Report 

of Employee Benefit Plan is also available free of charge at www.dol.gov/ebsa/5500main.html. Some of 

the documents also may be available for examination, without charge, at the Plan administrator’s office, 

your worksite or union hall.

Your right to challenge incorrect calculations

If you think the Plan miscalculated the reduction to your benefits, then you have the right to submit a 

claim to the Plan to have the calculation corrected. The Plan’s SPD tells you how to submit a claim. The 

SPD also describes your right to have a court review the Plan’s final decision on your claim.

If you believe the information used to calculate your estimate at the end of this notice is wrong, please 

contact the Plan office at: 

Composition Roofers Local 42 Pension Plan 

c/o American Benefit Corporation

205 W 4th St #225

Cincinnati OH 45202

(513) 977-3635

ROOFERS42_0077
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan's actuary has calculated that if the proposed reductions are not implemented, then the Plan is 

projected to be insolvent and unable to pay benefits when due in 2030. If the Plan becomes insolvent, your 

benefit would be reduced to the monthly PBGC-guaranteed level. Your estimated monthly PBGC 

guaranteed level is $246.68. 

The estimate is based on the following information from Plan records: 

• You have 6.9 years of credited service under the Plan as of April 1, 2020.

• You will be 72 years and 10 month(s) as of April 30, 2020.

• The portion of your benefit that is based on disability is 100%.

o Note that under the law, those on 100% disability retirements will face no benefit

reduction.

In the event that the proposed suspension is approved, the actual effect of the suspension on you may be 

different than the amounts in this notice due to additional work history, taxes, deductions, changes in your 

status as an active, terminated or retired participant, the death of you or your spouse, changes in marital 

status, and/or approval of a new Qualified Domestic Relations Order (QDRO) or changes to an existing 

QDRO. 

PLAN OFFICE CONTACT INFORMATION: If you believe the information used to calculate your estimate is 

incorrect, please contact the Plan office at: 

Composition Roofers local 42 Pension Plan 

c/o American Benefit Corporation 

205 W 4th Street Ste #225 

Cincinnati OH 45202 

(513) 977-3635

ROOFERS42_0078
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan's actuary has calculated that if the proposed reductions are not implemented, then the Plan is 

projected to be insolvent and unable to pay benefits when due in 2030. If the Plan becomes insolvent, your 

benefit would be reduced to the monthly PBGC-guaranteed level. Your estimated monthly PBGC 

guaranteed level is $650.63. 

The estimate is based on the following information from Plan records: 

• You have 19.2 years of credited service under the Plan as of April 1, 2020.

• You will be 80 years and 1 month(s) as of April 30, 2020.

o Note that under the law, those 80 or older as of April 30, 2020 will face no benefit

reduction.

• The portion of your benefit that is based on disability is 0%.

In the event that the proposed suspension is approved, the actual effect of the suspension on you may be 

different than the amounts in this notice due to additional work history, taxes, deductions, changes in your 

status as an active, terminated or retired participant, the death of you or your spouse, changes in marital 

status, and/or approval of a new Qualified Domestic Relations Order (QDRO) or changes to an existing 

QDRO. 

PLAN OFFICE CONTACT INFORMATION: If you believe the information used to calculate your estimate is 

incorrect, please contact the Plan office at: 

Composition Roofers Local 42 Pension Plan 

c/o American Benefit Corporation 

205 W 4th Street Ste #225 

Cincinnati OH 45202 

{513) 977-3635 

ROOFERS42_0079
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared f

o

r: 

The Plan's actuary has calculated that if the proposed reductions are not implemented, then the Plan is 

projected to be insolvent and unable to pay benefits when due in 2030. If the Plan becomes insolvent, 

your benefit would be reduced to the monthly PBGC-guaranteed level. Your estimated monthly PBGC 

guaranteed level is $487.22. 

Pursuant to the terms of your Qualified Domestic Relations Order (QDRO), your current monthly benefit is 

$555.76. Under the proposed reduction your monthly benefit will be reduced to $535.94 beginning on 

April 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your accrued benefit under the Plan. It is 

not a final benefit calculation. This estimate was prepared assuming that the proposed benefit reduction 

starts on April 1, 2020. If the benefit reduction starts later, the effect of the proposed reduction on your 

accrued benefit might be different. 

This estimate is based on the following information from Plan records: 

• Your benefit amount shown above is estimated over your former spouse's lifetime.

• The portion of your benefit that is based on disability is 0%.

In the event that the proposed suspension is approved, the actual effect of the suspension on you may be 

different than the amounts in this notice due to taxes, deductions, death and/or approval of a new QDRO 

or changes to an existing QDRO. 

PLAN OFFICE CONTACT INFORMATION: If you believe the information used to calculate your estimate is 

incorrect, please contact the Plan office at: 

Composition Roofers Local 42 Pension Plan 

c/o American Benefit Corporation 

205 W 4th Street Ste #225 

Cincinnati OH 45202 

(513) 977-3635

ROOFERS42_0080
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan's actuary has calculated that if the proposed reductions are not implemented, then the Plan is 

projected to be insolvent and unable to pay benefits when due in 2030. If the Plan becomes insolvent, your 

benefit would be reduced to the monthly PBGC-guaranteed level. Your estimated monthly PBGC 

guaranteed level is $505.35. 

Your current monthly benefit is $592.40. Under the proposed reduction your monthly benefit will be 

reduced to $555.89 beginning on April 1, 2020. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your accrued benefit under the Plan. It is not 

a final benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts 

on April 1, 2020. If the benefit reduction starts later, the effect of the proposed reduction on your accrued 

benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 22.2 years of credited service under the Plan as of April 1, 2020.

• You will be 66 years and 5 month(s) as of April 30, 2020.

• The portion of your benefit that is based on disability is 0%.

In the event that the proposed suspension is approved, the actual effect of the suspension on you may be 

different than the amounts in this notice due to additional work history, taxes, deductions, changes in your 

status as an active, terminated or retired participant, the death of you or your spouse, changes in marital 

status, and/or approval of a new Qualified Domestic Relations Order (QDRO) or changes to an existing 

QDRO. 

PLAN OFFICE CONTACT INFORMATION: If you believe the information used to calculate your estimate is 

incorrect, please contact the Plan office at: 

Composition Roofers Local 42 Pension Plan 

c/o American Benefit Corporation 

205 W 4th Street Ste #225 

Cincinnati OH 45202 

(513) 977-3635

ROOFERS42_0081
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan's actuary has calculated that if the proposed reductions are not implemented, then the Plan is 

projected to be insolvent and unable to pay benefits when due in 2030. If the Plan becomes insolvent, 

your benefit would be reduced to the monthly PBGC-guaranteed level. Your estimated monthly PBGC 

guaranteed level is $207.35. 

If you start receiving your accrued benefit on 4/1/2020 in the form of a Life Annuity, your monthly 

benefit without the proposed reduction would be $397.79. Under the proposed reduction your 

monthly benefit in the same form will be reduced to $228.09. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your accrued benefit under the Plan. It 

is not a final benefit calculation. This estimate was prepared assuming that the proposed benefit 

reduction starts on April 1, 2020. If the benefit reduction starts later, the effect of the proposed 

reduction on your accrued benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 5.8 years of credited service under the Plan as of April 1, 2020.

• You will be 64 years and 6 month(s) as of April 30, 2020.

• The portion of your benefit that is based on disability is 0%.

In the event that the proposed suspension is approved, the actual effect of the suspension on you may be 

different than the amounts in this notice due to additional work history, taxes, deductions, changes in 

your status as an active, terminated or retired participant, the death of you or your spouse, changes in 

marital status, and/or approval of a new Qualified Domestic Relations Order (QDRO) or changes to an 

existing QDRO. 

PLAN OFFICE CONTACT INFORMATION: If you believe the information used to calculate your estimate 

is incorrect, please contact the Plan office at: 

Composition Roofers Local 42 Pension Plan 

c/o American Benefit Corporation 

205 W 4th Street Ste #225 

Cincinnati OH 45202 

(513) 977-3635

ROOFERS42_0082
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

The Plan's actuary has calculated that if the proposed reductions are not implemented, then the Plan is 

projected to be insolvent and unable to pay benefits when due in 2030. If the Plan becomes insolvent, 

your benefit would be reduced to the monthly PBGC-guaranteed level. Your estimated monthly PBGC 

guaranteed level is $72.20. 

If you start receiving your accrued benefit on 1/1/2024 in the form of a Life Annuity, your monthly benefit 

without proposed reduction would be $84.16. Under the proposed reduction your monthly benefit in the 

same form would be reduced to $79.42. 

The proposed reduction is permanent. 

This is an estimate of the effect of the proposed reduction on your accrued benefit under the Plan. It is 

not a final benefit calculation. This estimate was prepared assuming that the proposed benefit reduction 

starts on April 1, 2020. If the benefit reduction starts later, the effect of the proposed reduction on your 

accrued benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 3.3 years of credited service under the Plan as of April 1, 2020.

• You will be 54 years and 4 month(s) as of April 30, 2020.

• You have 3.3 years and months of vesting service as of April 1, 2020, but you must earn at least

5 years of vesting service to be 100% vested in your benefits.

• The portion of your benefit that is based on disability is 0%.

In the event that the proposed suspensionJs approved, the actual effect of the suspension on you may be 

different than the amounts in this notice due to your vesting service, the form of benefit you select at 

retirement, additional work history, taxes, deductions, changes in yourstatus as a participant, the death 

of you or your spouse, changes in marital status, and/or approval of a new Qualified Domestic Relations 

Order (QDRO) or changes to an existing QDRO. 

PLAN OFFICE CONTACT INFORMATION: If you believe the information used to calculate your estimate is 

incorrect, please contact the Plan office at: 

Composition Roofers Local 42 Pension Plan 

c/o American Benefit Corporation 

205 W 4th Street Ste #225 

Cincinnati OH 45202 

(513) 977-3635

ROOFERS42_0083
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT F 

PROPOSED BALLOT

ROOFERS42_0084
Ballot on the Pension Recovery Program for the

Composition Roofers Local 42 Pension Plan

The MPRA Application for the Composition Roofers Local 42 Pension Plan was submitted 

on June 28, 2019 by the Board of Trustees in accordance with the Multiemployer Pension 

Recovery Plan of 2014 ("MPRA") and its regulations. 

On [Insert Date], the MPRA Application was approved by the United States Secretary of 

Treasury, in consultation with the Pension Benefit Guaranty Corporation and the United States 

Department of Labor. 

The next step is for all eligible voting participants to approve or reject the Pension 

Recovery Program. The proposed suspension of benefits set forth in the Pension Recovery 

Program will be effective for benefits paid on and after April 1, 2020 unless a majority of all 

eligible voters reject the proposed reduction of benefits; therefore, an individual's failure to cast 

a vote has the same effect as a vote to approve the reduction of benefits. This Ballot is required 

by Federal law to provide information and assistance to you in exercising your right to vote. 

The Board of Trustees Recommends the Approval of the Pension Recovery Program

The Board of Trustees strongly recommends the approval of the Pension Recovery 

Program. This is designed to prevent the Plan from becoming insolvent and preserve your 

pension benefits as completely as possible. You have worked hard for your pension benefit. The 

intent of the Pension Recovery Program is to avoid insolvency, stop the Plan's funding decline, 

and allow the Plan to continue to provide benefits going forward. Our Pension Recovery Program 

will protect the older retirees and those who are disabled, but if the Plan were to become 

insolvent then all participants and retirees would face a deep reduction in benefits. 

Description of the Proposed Benefit Reduction

You have already received an individual estimate illustrating the Pension Recovery 

Program’s impact on your monthly benefit amount. 

• The Pension Recovery Program will apply to benefits paid on and after April 1, 2020.

• The Board of Trustees proposes a uniform 45% benefit suspension for all participants,

beneficiaries, alternate payees and retirees.

• The proposed suspension does not provide for different treatment of participants and 

beneficiaries, other than as a result of the individual limitations established by law

(such as those age 75 and older, as well asthose receiving a disability pension benefit).

• No participant, beneficiary or alternate payee will receive less than 110% of the

amount guaranteed by the PBGC.

ROOFERS42_0085
The Trustees have spent more than a year evaluating possible alternatives in an attempt 

to create an equitable plan that satisfies the requirements of MPRA. Some of the factors set forth 

in MPRA that the Board of Trustees considered while attempting to craft an equitable allocation 

of the benefit reductions included: 

1— The age and life expectancy of the participant and beneficiary; 

2 — The amount of benefits; 

3 — The type of benefit, such as early retirement benefits; 

4 — The extent to which a participant or beneficiary is receiving a subsidized benefit; 

5 — The history of benefit increases and reductions for participants and beneficiaries; 

6 — The differences between active and retiree benefits; and 

7 — The extent to which active participants are reasonably likely to withdrawal support 

for the plan. 

If the reduction in benefits is approved, the Pension Recovery Program will remain in 

effect indefinitely. 

The Insolvency of the Composition Roofers Local 42 Pension Plan

Without the approval of the Pension Recovery Program, our Plan is scheduled to go 

insolvent by 2030, and possibly sooner. The insolvency of the Plan would result in the reduction 

of benefits to the amount of benefit guaranteed by the Pension Benefit Guaranty Corporation 

("PBGC"). The PBGC is a Federal agency that acts as an insurance company for pensions and 

guarantees a minimum benefit to participants and beneficiaries. Federal law requires that our 

Pension Recovery Program provide a benefit at least as much as 110% of the guaranteed benefit 

from the PBGC; thus, all Participants, Beneficiaries and Alternate Payees' monthly benefit would 

be higher if the proposed benefit reduction is approved than if the Plan is turned over to the 

PBGC. If the Pension Recovery Program is rejected, the Plan will soon become insolvent. As a 

result, all Participants, Beneficiaries and Alternate Payees would be reduced to the guaranteed 

amount by the PBGC. Individuals who retired on a Disability Pension and individuals who attained 

age 80 would be included in the reduction to the PBGC guaranteed benefit. 

The Plan's actuary has certified that the approval and implementation of the Pension 

Recovery Program will avoid insolvency and allow the Plan to continue to pay the reduced 

benefits and future accrued benefits indefinitely. The actuary's projection is based on estimates 

of future hours worked for which contributions are due and the future investment returns of the 

Plan, and, is therefore subject to some uncertainty. 

ROOFERS42_0086
The Insolvency of the Pension Benefit Guaranty Corporation

The Pension Benefit Guaranty Corporation is expected to become insolvent in 2025, 

several years before the insolvency of our Plan. The insolvency of the PBGC would mean that the 

PBGC would not have enough money to provide the guaranteed benefit and your monthly benefit 

provided through the PBGC would be reduced to almost nothing. The MPRA Application and 

proposed suspension is structured to avoid the Plan's insolvency and the involvement of the 

PBGC, and ensure the continuation of your monthly benefit payments indefinitely. The Board of 

Trustees recommends you support and to approve the suspension.

[RESERVED FOR STATEMENT IN OPPOSITION TO THE PROPOSED SUSPENSION]

The Pension Recovery Program will go into effect on April 1, 2020 unless a majority of all eligible 

voters reject it. Not voting by the deadline is the same as approving the proposed reduction. 

To register your vote, please check one of the two boxes below, sign and print your name, date 

this ballot, and return the completed ballot to Board of Trustees, by [insert appropriate date]. 

☐ I approve the suspension of benefits.

☐ I reject the suspension of benefits.

Signed: 

Name (printed): Last four digits of SSN:

Date:

ROOFERS42_0087
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT G 

INFORMATION ON ACTUARIAL ASSUMPTIONS AND METHODS

ROOFERS42_0088
Information on Actuarial Assumptions and Methods 

Composition Roofers Local 42 Pension Plan 

This document details the information requested in Revenue Procedure 2017-43 Appendix B on actuarial 

assumptions and methods that, pursuant to section 6.03 of this Revenue Procedure, must be described in 

an application for approval of a proposed benefit suspension under the Multiemployer Pension Reform 

Act of 2014 (MPRA). 

Investment Returns 

The components of both the current portfolio and target portfolio are detailed below: 

* These portfolio weightings (and the consequent investment return assumptions) are used until the

suspensions are in effect.

** These portfolio weightings are expected to go into effect as of the Suspension Effective Date (April 1, 

2020), should this application for suspension be approved. 

The Current Portfolio reflects the Plan’s need for short-term, highly liquid assets to meet benefit payment 

needs in the short term due to the Plan’s significant negative cash flow and expected insolvency. Should 

this Application be approved, these cash flow requirements will be diminished, allowing for an 

investment strategy that is more long-term, less conservative, and that seeks a higher yield, as shown in 

the Proposed Future Portfolio above. This new portfolio was designed to maximize returns given the 

Plan’s decreased need for liquidity caused by the drop in negative cash flow pursuant to the approval of 

this Application. The mix could and should change in the future in response to any significant changes in 

market conditions or the Plan’s situation (e.g. negative cash flow and expected insolvency), but there are 

no projected changes, other than those noted, incorporated into the projections provided. 

Asset Class Weight – Current 

Portfolio* 

Weight – Proposed 

Future Portfolio** 

US Equity – Large Cap 34% 30% 

US Equity – Small/Mid Cap 11% 10% 

Non-US Equity – Developed 11% 19% 

Non-US Equity – Emerging 4% 6% 

US Corporate Bonds – Core 30% 15% 

Bank Loans (US Corporate Bonds – High Yield) 0% 5% 

Real Estate 5% 7.5% 

MLPs (Infrastructure) 5% 7.5% 

ROOFERS42_0089
Net investment return for deterministic projections: 

Years (1/1/2018 to 12/31/2028) (1/1/2029+) 

Total Expected Portfolio Return 

(Current Portfolio) * 

6.03% 7.08% 

Total Expected Portfolio Return 

(Proposed Future Portfolio) ** 

6.48% 7.43% 

The net investment return assumptions used for the deterministic projections are based on the 10 and 20-

year median returns shown on Exhibits 17 and 18 of the 2018 edition of the Horizon Survey of Capital 

Market Assumptions for each asset class. The inflation assumptions inherent in those returns are also 

shown on those exhibits. The associated standard deviations and correlation coefficients from Exhibit 15 

were also used. The survey reports expectations based on indexed returns. 

In developing our proposed assumption, we have conferred with the Plan’s investment professionals as 

well as relied on our own professional knowledge in determining that the assumption is our best estimate 

for the purpose of this measurement. We are not investment professionals, and in developing our 

assumption, we consulted with our colleagues who work in this field for guidance as provided by the 

Actuarial Standards of Practice. All returns are assumed net of investment related expenses. 

The investment return assumptions used for the deterministic projections vary between the 10 and 20-year 

projections, in line with the change in the net investment return assumptions for the asset classes between 

the 10 and 20-year horizons. As mentioned earlier, upon the approval of this Application, the change in 

the investment portfolio that would take place would be a direct result of the decreased negative cash 

flows and long-term outlook of the Plan. Until the suspension date, however, the current portfolio would 

remain in place in order to meet the liquidity needs of the Plan’s current high negative cash flow position 

until expected insolvency. 

Mortality Assumptions

Standard mortality tables were used. 

Non-Disabled RP-2014 with Blue Collar adjustment. 

Disabled RP-2014 Disabled Retiree. 

Base Year Adjustment 2006 using Scale MP-2014. 

Future Projections Projected generationally using Scale MP-2017. 

This Plan’s participants consist primarily of blue collar workers. We have relied on the blue-collar 

mortality rates in the RP-2014 Mortality Tables Report issued by the Society of Actuaries as the mortality 

experience for this plan. As is explained in the Society of Actuaries release of Mortality Scale MP-2017, 

we have adjusted the base table to 2006 using MP-2014 and projected generationally using MP-2017. 

ROOFERS42_0090
Other demographic assumptions 

Please see the attached Support for Significant Actuarial Assumptions and the summary included in the 

Supplemental Actuarial Information Report. 

Assumptions regarding form and commencement age of benefits 

Please see the attached Support for Significant Actuarial Assumptions and the summary included in the 

Supplemental Actuarial Information Report. The probability of any given payment form is independent 

of age and status. 

The payment form election assumption incorporates the changes to the optional forms that would be 

implemented upon the approval of this Application. The assumed percentage of participants who are 

married is 80%, but the payment form election percentage is independent of the percent married 

assumption. Participants are assumed to elect payment forms at retirement as shown in the table below: 

Payment Form % Electing 

Single Life Annuity 51% 

Joint & 50% Survivor 15% 

Joint & 75% Survivor 8%

Joint & 100% Survivor 26% 

Assumptions regarding missing or incomplete data 

We valued all participants that were provided to us by the Plan Administrator. Please see the attached 

Support for Significant Actuarial Assumptions, which details the assumptions used to fill in missing data. 

For those that are assumed to elect a payment form with a beneficiary, it is assumed that wives are 3 years 

younger than husbands. 

New entrant profile 

Entry Age Sex Entry Age 

Accrued Benefit 

Entry Age 

Service 

Weighted Percentage 

of New Entrants 

22.5 M $238.71 1.300 15% 

27.5 M $272.19 1.416 25% 

32.5 M $209.00 1.281 21% 

37.5 M $317.39 1.336 15% 

42.5 M $248.27 1.218 15% 

47.5 M $225.38 1.550 5% 

55.0 M $267.04 1.133 4% 

Please see the attached Support for Significant Actuarial Assumptions for more detail on the development 

of each profile. 

ROOFERS42_0091
Contribution rates and base units 

Please see the attached Support for Significant Actuarial Assumptions for detail on the history of 

employers that contributed 5% or more of annual contributions to the plan. 

The assumed average contribution rate (per hour worked) for each year during the projection period is 

$4.56 in 2018, increasing to $5.56 in years 2024 and later. This assumption is based on the most recent 

Plan Year average contribution rate and increases mandated by the most recently updated Rehabilitation 

Plan. 

The assumed contribution base units for each year during the projection period is 250,000 hours. This 

assumes 1,278.82 hours per year per active participant. This represents the hours assumption used in the 

most recent Actuarial Report of 1,325 per active participant multiplied by the ratio of total assumed hours 

worked to hours worked in 2017 (250,000 / 259,028). It is assumed that the change in hours will be 

proportionate across all statuses for whom contributions are historically made to the Plan, as shown in the 

chart below. The “Non-Participant” group is made up of those who have not yet become participants in 

the Plan for whom required contributions are made. As this group historically makes up a non-trivial 

portion of contributory hours, it is assumed their future contributions will be affected in the same 

proportion as other groups in future years. 

Plan Year 

Year‐End Status  2017  2016  2015  2014  2013 

Non‐Participant 

Count*  87  67 59 37  30

Contributions  $87,219  $55,532 $54,021 $25,777  $37,694

Hours  30,240  20,053 19,457 10,325  13,331

Active 

Count*  173  175 178 170  171

Contributions  $1,038,179  $1,002,087 $906,142 $856,140  $784,096

Hours  227,380  224,594 211,096 209,185  198,458

Disabled 

Count*  0  0 0 0  1

Contributions  $0  $0 $0 $0  $1,120

Hours  0   0  0 0  280

Retired 

Count*  4  4 3 4  3

Contributions  $6,768  $5,092 $6,083 $12,295  $7,622

Hours  1,408  1,094 1,378 2,903  2,052

Total 

Count*  264  246 240 211  205

Contributions  $1,132,166  $1,062,711 $966,246 $894,212  $830,532

Hours  259,028  245,741 231,931 222,413  214,121

* Count is those with a Contribution that is greater than $0 for the year

ROOFERS42_0092
Historical trends in contribution rates and base units 

Over the past 10 years, the construction industry in Southwest Ohio has seen significant volatility in its 

workflow. In 2007, the Plan had 332,523 hours worked, and the pipeline of future projects, membership, 

and contractors was strong. However, with the economic collapse of 2008, not only did the Plan have 

significant asset losses, it also saw a significant slowdown in work projects and in its pipeline of future 

construction projects. Similar to the rest of the economy, the industry saw a decline in available work as 

capital investment dried up, and this had a direct impact on work hours. Projects have begun returning, 

allowing the CBU’s to increase, but not to pre-collapse levels, even a decade later. 

Given the nature of construction industry work, much of the work hours needed and contributions 

received are based on project-driven work that is cyclical and volatile in nature. This volatility is 

exacerbated by the reliance on large projects in the jurisdiction of the local, as well as the impact of 

weather on roofing projects. The cycles shown are consistent with other local industries and reflect the 

cyclical nature of large project construction industry work. 

Rationale for selection of contribution base unit (CBU) and contribution rate assumptions

We would note that this is a construction industry plan, and that the work is cyclical and large-project 

oriented in nature. Determining an ongoing assumption is difficult given the inherent inconsistency of 

CBU’s from year to year. In a plan such as this, defining an ongoing assumption for hours presents 

numerous challenges including: uncontrollable market influences, shrinking market share due to stronger 

non-union competitors, the impact of the legislative environment, volatility of projects, the impact of 

weather-related project delays, and future predictions of labor and contractor supply. 

When preparing our assumption, we have attempted to take into account this cyclicality and that recent 

years are believed to have leveled off at a sustainable amount. This assumption further reflects significant 

input from the trustees as to the expected work going forward and represents our best estimate of ongoing 

average CBU’s. We rely significantly on their industry expertise and experience in determining this 

assumption. While we would not expect every year to be flat, we believe predicting the timing of the 

peaks and troughs of the work cycle does not improve the prediction model and therefore does not 

provide the best estimate in future years. Instead we have used a reasonable estimate of the average 

ongoing CBU’s expected in the future. 

The contribution rate assumption reflects the rates negotiated in the current Rehabilitation Plan. We have 

not assumed any future additional contribution rate increases beyond these negotiated rate increases in our 

projections. 

Employer withdrawals and withdrawal liability payments 

No current withdrawal liability payments are recognized in our projections, as currently negotiated 

withdrawal liability payment streams being received have already been included as a receivable in the 

audited financial statements. No assumption has been made regarding future withdrawal liability 

payments expected to be collected. We have reflected already settled payments that have been deemed 

collectible. We have reflected that there are no other withdrawals that have currently been deemed 

collectible by the trustees, nor are we aware of employers who would be likely to withdraw from the Plan. 

ROOFERS42_0093
The Plan is a building and construction industry plan. As a result, a complete withdrawal occurs only if 

an employer ceases an obligation to contribute to the Plan and continues to perform work (or resumes 

such work within 5 years) in the jurisdiction of the collective bargaining agreement of the type for which 

contributions would have been due. Thus, if a contributing employer to the Plan closes its business and 

does not resume such work without an obligation to contribute, then no withdrawal has occurred. 

Administrative expenses 

Assumed administrative expenses paid by the plan, other than investment-related expenses, are assumed 

to be $400,000 in the 2019 plan year; $190,668 in the 2020 plan year, and increased 1% per year 

thereafter. The higher amount in the 2019 plan year reflects the cost of preparation, submission, and 

communication of this Application. 

Projection methodology 

No approximation or data grouping techniques were used. No changes were made to the programming of 

the actuarial software used, nor were modifications made to the resulting cash flow projections provided 

by such software. 

ROOFERS42_0094
Support for Significant Actuarial Assumptions

Composition Roofers Local 42 Pension PlanTable of Contents

Exhibit I Turnover RatesExhibit II Disability and Retirement RatesExhibit III Development of Payment Form Election AssumptionExhibit IV Assumptions Used to Fill in Missing DataExhibit V Termination Decrement StudyExhibit VI Disability Decrement StudyExhibit VII Retirement Decrement StudiesExhibit VIII Liability Gain/Loss AnalysisExhibit IX Actual Retirement Rates by AgeExhibit X Development of New Entrant ProfileExhibit XI Contribution History for 5% Employers

ROOFERS42_0095
Exhibit I: Turnover Rates

Composition Roofers Local 42 Pension Plan

0 1 2 >=3 0 1 2 >=3

15 20.00% 20.00% 20.00% 10.43% 43 20.00% 20.00% 20.00% 6.98%

16 20.00% 20.00% 20.00% 10.33% 44 20.00% 20.00% 20.00% 6.68%

17 20.00% 20.00% 20.00% 10.23% 45 20.00% 20.00% 20.00% 6.35%

18 20.00% 20.00% 20.00% 10.14% 46 20.00% 20.00% 20.00% 6.01%

19 20.00% 20.00% 20.00% 10.04% 47 20.00% 20.00% 20.00% 5.62%

20 20.00% 20.00% 20.00% 9.94% 48 20.00% 20.00% 20.00% 5.20%

21 20.00% 20.00% 20.00% 9.89% 49 20.00% 20.00% 20.00% 4.73%

22 20.00% 20.00% 20.00% 9.84% 50 20.00% 20.00% 20.00% 4.22%

23 20.00% 20.00% 20.00% 9.79% 51 20.00% 20.00% 20.00% 3.68%

24 20.00% 20.00% 20.00% 9.73% 52 20.00% 20.00% 20.00% 3.12%

25 20.00% 20.00% 20.00% 9.67% 53 20.00% 20.00% 20.00% 2.57%

26 20.00% 20.00% 20.00% 9.61% 54 20.00% 20.00% 20.00% 2.03%

27 20.00% 20.00% 20.00% 9.54% 55 20.00% 20.00% 20.00% 1.55%

28 20.00% 20.00% 20.00% 9.47% 56 20.00% 20.00% 20.00% 1.12%

29 20.00% 20.00% 20.00% 9.31% 57 20.00% 20.00% 20.00% 0.77%

30 20.00% 20.00% 20.00% 9.30% 58 20.00% 20.00% 20.00% 0.49%

31 20.00% 20.00% 20.00% 9.21% 59 20.00% 20.00% 20.00% 0.29%

32 20.00% 20.00% 20.00% 9.10% 60 20.00% 20.00% 20.00% 0.15%

33 20.00% 20.00% 20.00% 8.98% 61 20.00% 20.00% 20.00% 0.06%

34 20.00% 20.00% 20.00% 8.85% 62 20.00% 20.00% 20.00% 0.02%

35 20.00% 20.00% 20.00% 8.71% 63 20.00% 20.00% 20.00% 0.00%

36 20.00% 20.00% 20.00% 8.55% 64 20.00% 20.00% 20.00% 0.00%

37 20.00% 20.00% 20.00% 8.37% 65 20.00% 20.00% 20.00% 0.00%

38 20.00% 20.00% 20.00% 8.18% 66 20.00% 20.00% 20.00% 0.00%

39 20.00% 20.00% 20.00% 7.98% 67 20.00% 20.00% 20.00% 0.00%

40 20.00% 20.00% 20.00% 7.75% 68 20.00% 20.00% 20.00% 0.00%

41 20.00% 20.00% 20.00% 7.52% 69 20.00% 20.00% 20.00% 0.00%

42 20.00% 20.00% 20.00% 7.26% >=70 20.00% 20.00% 20.00% 0.00%

Rates by service Age Age Rates by service

Turnover Rates by Age and Service

ROOFERS42_0096
Exhibit II: Disability and Retirement Rates

Composition Roofers Local 42 Pension Plan

Disability rates

Age Rate Age Rate

15 0.045% 38 0.180% Age Rate Age Rate

16 0.060% 39 0.195% <=54 0% <=54 0%

17 0.060% 40 0.210% 55 10% 55 10%

18 0.060% 41 0.240% 56 10% 56 10%

19 0.075% 42 0.255% 57 20% 57 20%

20 0.075% 43 0.270% 58 30% 58 50%

21 0.075% 44 0.285% 59 20% 59 10%

22 0.075% 45 0.315% 60 20% 60 10%

23 0.090% 46 0.345% 61 40% 61 10%

24 0.090% 47 0.375% 62 100% 62 10%

25 0.090% 48 0.405% 63 100% 63 50%

26 0.090% 49 0.450% 64 100% 64 50%

27 0.105% 50 0.495% 65 100% 65 50%

28 0.105% 51 0.540% 66 100% 66 20%

29 0.105% 52 0.600% 67 100% 67 20%

30 0.105% 53 0.660% 68 100% 68 20%

31 0.120% 54 0.750% 69 100% 69 20%

32 0.120% 55 0.825% >=70 100% >=70 100%

33 0.135% 56 0.915%

34 0.135% 57 1.050%

35 0.150% 58 1.185%

36 0.165% 59 1.305%

37 0.180% >=60 0.000%

Retirement rates

Actives Terminated Vested

ROOFERS42_0097
Exhibit III: Development of Payment Form Election Assumption

Composition Roofers Local 42 Pension Plan

Payment Form* Actives Inactives Total % of Total Assumption

Included in 

Proposed Plan 

Amendment

Life Annuity 16 21 37 51% 51% 51%

Joint & 50% Survivor 4 1 5 7% 7% 15%

Joint & 50% Survivor with Pop-Up 4 2 6 8% 8%

Joint & 66 2/3% Survivor 3 0 3 4% 4%

Joint & 66 2/3% Survivor with Pop-Up 1 1 2 3% 3%

Joint & 75% Survivor 1 0 1 1% 1% 8%Joint & 75% Survivor with Pop-Up 0 0 0 0% 0%

Joint & 100% Survivor 7 4 11 15% 15% 26%Joint & 100% Survivor with Pop-Up 3 5 8 11% 11%

Total 39 34 73 100% 100% 100%

*Based on participant data from January 1, 2011 to January 1, 2018.

ROOFERS42_0098
Exhibit IV: Assumptions Used to Fill in Missing Data

Composition Roofers Local 42 Pension Plan

Data field Assumption used Status applicable

Member's Date of Birth Date of Hire - 30 years For all active participantsBeneficiary's Date of Birth

Member's Date of Birth +/- 3 years (plus (+) 3 years if member is a male, minus (-) 3 years if member is a female)

For all terminated vested participants or participants with Joint & Survivor payment forms

Date of Hire Valuation date - Vesting Service For all active and terminated vested participants

ROOFERS42_0099
Exhibit V: Termination Decrement Study

Composition Roofers Local 42 Pension Plan

Termination study based on terminations from 2011 - 2016

Service Near age Exposed

Actual 

Terminations

Expected 

Terminations

Actual 

q's Expected q's New

<3 <20 0 0 0 0 0

20-21 2 0 0.7 0 0.34960122-23 3 0 1.05 0 0.34957424-25 1 0 0.35 0 0.34952126-27 3 0 1.05 0 0.34947128-29 2 0 0.7 0 0.34944230-31 34 8 11.88 0.235294 0.34931432-33 25 5 8.73 0.2 0.34929434-35 4 1 1.4 0.25 0.34914236-37 2 0 0.7 0 0.34904138-39 2 0 0.7 0 0.34891640-41 2 1 0.7 0.5 0.34872842-43 1 0 0.35 0 0.34858444-45 4 1 1.39 0.25 0.34839846-47 0 0 0 0 048-49 1 0 0.35 0 0.34781950-51 0 0 0 0 052-53 0 0 0 0 054-55 0 0 0 0 056-57 0 0 0 0 058-59 0 0 0 0 060+ 0 0 0 0 0<Total> 86 16 30.03 0.186 0.349 0.2

ROOFERS42_0100
Exhibit V: Termination Decrement Study

Composition Roofers Local 42 Pension Plan

Termination study based on terminations from 2011 - 2016

Service Near age Exposed

Actual 

Terminations

Expected 

Terminations

Actual 

q's Expected q's

3+ <20 0 0 0 0 0

20-21 0 0 0 0 0 20

22-23 5 0 0.49 0 0.097853 2224-25 11 0 1.07 0 0.096878 2426-27 23 0 2.2 0 0.095529 2628-29 32 2 3.01 0.063 0.09418 2830-31 25 2 2.31 0.080 0.092396 3032-33 26 2 2.34 0.077 0.090081 3234-35 38 2 3.33 0.053 0.087501 3436-37 55 6 4.64 0.109 0.084336 3638-39 38 3 3.06 0.079 0.080484 3840-41 42 3 3.19 0.071 0.076014 4042-43 48 3 3.4 0.063 0.070744 4244-45 47 6 3.05 0.128 0.064875 4446-47 61 5 3.52 0.082 0.057783 4648-49 76 8 3.74 0.105 0.04922 4850-51 64 5 2.52 0.078 0.039308 5052-53 69 3 1.95 0.043 0.028213 5254-55 71 13 1.27 0.183 0.017942 5456-57 45 6 0.44 0.133 0.00969 5658-59 0 0 0 0 0 5860+ 0 0 0 0 0 60<Total> 776 69 45.51 0.0889 0.0587

ROOFERS42_0101
Exhibit V: Termination Decrement Study

Composition Roofers Local 42 Pension Plan

y = -0.0015x + 0.14

0.1400.1200.1000.0800.0600.0400.0200.000

24 29 34 39 44 49 54

DATACurrent RatesLinear(DATA)Linear(DATA)

ROOFERS42_0102
Exhibit VI: Disability Decrement Study

Composition Roofers Local 42 Pension Plan

Disability study based on disabilites from 2013 - 2018Near age Exposed

Actual Disabilities

Expected Disabilities Actual q's Expected q's

Ratio: Actual over Expected

 <20 0 0 0 0 0 020-24 18 0 0.01 0 0.00078 025-29 68 0 0.06 0 0.000901 030-34 152 0 0.17 0 0.001099 035-39 109 0 0.17 0 0.001591 040-44 118 0 0.27 0 0.002289 045-49 133 0 0.46 0 0.003429 050-54 155 0 0.84 0 0.005438 055-59 104 3 0.96 0.028846 0.009191 3.13860-64 17 0 0 0 0 065+ 1 0 0 0 0 0<Total> 875 3 2.94 0.003429 0.003361 1.02

ROOFERS42_0103
Exhibit VII: Retirement Decrement Studies

Composition Roofers Local 42 Pension Plan

Retirement Study based on retirements from 2013 - 2018Active ParticipantsNear age Exposed

Actual Retirements

Expected Retirements Actual q's Expected q's

Ratio: Actual over Expected New q's

New Expected Retirements

<55 0 0 0 0 0 0 0% 0

55 25 3 0 0.12 0 0 10% 2.556 29 3 0 0.103448 0 0 10% 2.957 22 5 0 0.227273 0 0 20% 4.458 16 5 4.75 0.3125 0.296906 1.053 30% 4.859 10 2 2.47 0.2 0.247166 0.809 20% 260 6 1 1.2 0.166667 0.199372 0.836 20% 1.261 7 3 2.79 0.428571 0.398591 1.075 40% 2.862 3 1 3 0.333333 1 0.333 100% 363 0 0 0 0 0 0 100% 0

64 0 0 0 0 0 0 100% 065 0 0 0 0 0 0 100% 066 0 0 0 0 0 0 100% 067 0 0 0 0 0 0 100% 068 0 0 0 0 0 0 100% 069 0 0 0 0 0 0 100% 0

70+ 1 1 1 1 1 1 100% 1

<Total> 119 24 15.21 0.201681 0.127803 1.578 0.206723 24.60

ROOFERS42_0104
Exhibit VII: Retirement Decrement Studies

Composition Roofers Local 42 Pension Plan

Retirement Study based on retirements from 2013 - 2018Terminated Vested ParticipantsNear age Exposed

Actual Retirements

Expected Retirements Actual q's Expected q's

Ratio: Actual over Expected New q's

New Expected Retirements

<55 0 0 0 0 0 0 0% 0

55 0 0 0 0 0 0 10% 056 0 0 0 0 0 0 10% 057 0 0 0 0 0 0 20% 058 16 8 7.9 0.50 0.49 1.01 50% 859 7 1 1.7 0.14 0.25 0.578 10% 0.760 8 1 2.0 0.13 0.25 0.502 10% 0.861 4 0 1.0 0.00 0.25 0 10% 0.462 1 0 0.3 0.00 0.25 0 10% 0.163 0 0 0.0 0.00 0.00 0 50% 064 1 1 0.5 1.00 0.50 2.01 50% 0.565 0 0 0.0 0.00 0.00 0 50% 066 1 0 0.2 0.00 0.20 0 20% 0.267 1 0 0.2 0.00 0.20 0 20% 0.268 1 0 0.2 0.00 0.20 0 20% 0.269 1 0 0.2 0.00 0.20 0 20% 0.2

 70+ 1 0 1.0 0.00 1.00 0 100% 1

<Total> 42 11 15.18 0.26 0.36 0.725 0.29 12.3

ROOFERS42_0105
Exhibit VIII: Liability Gain/Loss Analysis

Composition Roofers Local 42 Pension Plan

Summary of gain/(loss)1. Year of Analysis 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172. Expected unfunded liability

(a) Actuarial liability, beginning of year 37,115,091 39,166,289 37,564,646 39,789,023 40,863,015 41,996,096 42,825,434 43,812,447 44,676,930 49,636,818 50,569,299(b) Assets, beginning of year 30,960,195 33,418,331 28,066,387 33,904,538 34,753,546 32,634,773 34,240,194 34,361,297 33,254,654 31,008,620 28,817,040(c) Unfunded liability, beginning of year: (a)-(b) 6,154,896 5,747,958 9,498,259 5,884,485 6,109,469 9,361,323 8,585,240 9,451,150 11,422,276 18,628,198 21,752,259(d) Normal cost 452,857 472,435 314,185 194,349 205,201 193,114 193,675 178,827 161,935 208,326 216,566(e) Expected expenses, beginning of year 60,000 70,000 90,000 80,000 115,000 80,000 100,000 100,000 110,000 95,000 125,000(f) Interest at Valuation Interest Rate on (c)+(d)+(e) 500,081 471,779 742,683 461,913 482,225 722,583 665,919 729,748 877,066 1,230,549 1,436,099(g) Actual contributions, with interest to end of year 1,092,659 992,260 825,838 808,019 766,930 1,065,514 889,660 928,267 1,000,763 1,094,888 1,168,953(h) Expected unfunded liability: (c)+(d)+(e)+(f)-(g) 6,075,175 5,769,912 9,819,289 5,812,728 6,144,965 9,291,506 8,655,174 9,531,458 11,570,514 19,067,185 22,360,971

3. Actual unfunded liability

(a) Actuarial liability, end of year* 39,114,685 41,112,595 39,730,930 40,748,386 41,454,998 42,411,444 43,615,384 44,595,302 44,898,991 49,711,907 50,159,171(b) Assets, end of year 33,418,331 28,066,387 33,904,538 34,753,546 32,634,773 34,240,194 34,361,297 33,254,654 31,008,620 28,817,040 26,405,030(c) Actual unfunded liability: (a)-(b) 5,696,354 13,046,208 5,826,392 5,994,840 8,820,225 8,171,250 9,254,087 11,340,648 13,890,371 20,894,867 23,754,141

4. Total gain/(loss) for the year: (2)(h)-(3)(c) 378,821 (7,276,296) 3,992,897 (182,112) (2,675,260) 1,120,256 (598,913) (1,809,190) (2,319,857) (1,827,682) (1,393,170)5. Total gain/(loss), by source

(a) Liability gain/(loss) (365,134) (348,603) (1,052,951) (227,595) 19,078 149,943 (313,348) (408,649) 8,525 38,707 447,647(b) Asset gain/(loss)

(i) Assets, beginning of year 30,960,195 33,418,331 28,066,387 33,904,538 34,753,546 32,634,773 34,240,194 34,361,297 33,254,654 31,008,620 28,817,040(ii) Interest at Valuation Interest Rate on (i) 2,322,015 2,506,375 2,104,979 2,542,840 2,606,516 2,447,608 2,568,015 2,577,097 2,494,099 2,015,560 1,873,108(iii) Actual contributions, with interest to end of year 1,092,659 992,260 825,838 808,019 766,930 1,065,514 889,660 928,267 1,000,763 1,094,888 1,168,953(iv) Actual benefit payments, with interest to end of year 1,635,993 1,847,636 2,041,764 2,461,334 2,674,256 2,792,014 2,943,507 3,103,966 3,294,264 3,334,464 3,480,129(v) Actual expenses, with interest to end of year 75,704 97,738 86,147 120,039 82,834 103,059 101,786 111,386 98,165 129,581 154,698(vi) Assets, end of year 33,418,331 28,066,387 33,904,538 34,753,546 32,634,773 34,240,194 34,361,297 33,254,654 31,008,620 28,817,040 26,405,030(vii) Asset gain/(loss): (vi) - [(i)+(ii)+(iii)-(iv)-(v)] 755,159 (6,905,205) 5,035,245 79,522 (2,735,129) 987,372 (291,279) (1,396,655) (2,348,467) (1,837,983) (1,819,244)

(c) Expense gain/(loss)

(i) Expected expenses, beginning of year 60,000 70,000 90,000 80,000 115,000 80,000 100,000 100,000 110,000 95,000 125,000(ii) Interest at Valuation Interest Rate on (i) 4,500 5,250 6,750 6,000 8,625 6,000 7,500 7,500 8,250 6,175 8,125(iii) Actual expenses, with interest to end of year 75,704 97,738 86,147 120,039 82,834 103,059 101,786 111,386 98,165 129,581 154,698(iv) Expense gain/(loss): (i)+(ii)-(iii) (11,204) (22,488) 10,603 (34,039) 40,791 (17,059) 5,714 (3,886) 20,085 (28,406) (21,573)

(d) Total: (a)+(b)+(c) 378,821 (7,276,296) 3,992,897 (182,112) (2,675,260) 1,120,256 (598,913) (1,809,190) (2,319,857) (1,827,682) (1,393,170)

* Prior to changes due to Plan, Method and/or Assumption changes

ROOFERS42_0106
Exhibit IX: Actual Retirement Rates by Age

Composition Roofers Local 42 Pension Plan

Active Terminated VestedsRetirements RetirementsNear age Exposed *

Actual Retirements Actual q's Near age Exposed *

Actual Retirements Actual q's

<55 0 0 0.00000 <55 0 0 0.00000

55 25 3 0.12000 55 0 0 0.00000

56 29 3 0.10345 56 0 0 0.00000

57 22 5 0.22727 57 0 0 0.00000

58 16 5 0.31250 58 16 8 0.50000

59 10 2 0.20000 59 7 1 0.14286

60 6 1 0.16667 60 8 1 0.1250061 7 3 0.42857 61 4 0 0.0000062 3 1 0.33333 62 1 0 0.00000

63 0 0 0.00000 63 0 0 0.0000064 0 0 0.00000 64 1 1 1.0000065 0 0 0.00000 65 0 0 0.0000066 0 0 0.00000 66 1 0 0.0000067 0 0 0.00000 67 1 0 0.00000

68 0 0 0.00000 68 1 0 0.0000069 0 0 0.00000 69 1 0 0.0000070 0 0 0.00000 70 1 0 0.0000071 0 0 0.00000 71 0 0 0.0000072 0 0 0.00000 72 0 0 0.0000073 1 1 1.00000 73 0 0 0.0000074 0 0 0.00000 74 0 0 0.00000

 75+ 0 0 0.00000 75+ 0 0 0.00000

<Total> 119 24 0.20168 <Total> 42 11 0.26190

* Based on participant data from January 1, 2013 to January 1, 2018.

ROOFERS42_0107
Exhibit X: Development of New Entrant Profile

Composition Roofers Local 42 Pension Plan

Age 2014 2015 2016 2017 2018 Total Weight Age 2014 2015 2016 2017 2018 Total

 x < 20 Count: 1 1 0% x < 20 Count: 1 1

Mean: 283.080 283.08 Mean: 1.800 1.80

20 <= x < 25 Count: 2 1 1 3 4 11 15% 20 <= x < 25 Count: 2 1 1 3 4 11

Mean: 226.620 287.400 304.200 177.280 262.290 238.71 Mean: 1.300 1.000 1.000 1.267 1.475 1.30

25 <= x < 30 Count: 5 5 2 4 3 19 25% 25 <= x < 30 Count: 5 5 2 4 3 19

Mean: 324.744 298.200 175.980 266.880 212.480 272.19 Mean: 1.560 1.440 1.250 1.350 1.333 1.42

30 <= x < 35 Count: 1 3 3 5 4 16 21% 30 <= x < 35 Count: 1 3 3 5 4 16

Mean: 213.240 197.680 258.520 156.192 245.280 209.00 Mean: 1.300 1.167 1.367 1.140 1.475 1.28

35 <= x < 40 Count: 3 2 5 1 11 15% 35 <= x < 40 Count: 3 2 5 1 11

Mean: 382.680 334.920 290.712 219.840 317.39 Mean: 1.567 1.400 1.240 1.000 1.34

40 <= x < 45 Count: 2 1 2 2 4 11 15% 40 <= x < 45 Count: 2 1 2 2 4 11

Mean: 171.840 253.560 270.060 254.580 271.110 248.27 Mean: 1.000 1.300 1.250 1.400 1.200 1.22

45 <= x < 50 Count: 1 1 1 1 4 5% 45 <= x < 50 Count: 1111 4

Mean: 163.560 389.640 209.040 539.280 325.38 Mean: 1.000 1.900 1.500 1.800 1.55

50 <= x < 55 Count: 1 1 2 50 <= x < 55 Count: 1 1 2

Mean: 260.760 268.800 264.78 Mean: 1.100 1.000 1.05

55 <= x < 60 Count: 1 1 55 <= x < 60 Count: 1 1

Mean: 271.560 271.56 Mean: 1.300 1.30

60 <= x Count: 0 60 <= x Count: 0

Mean: 0.00 Mean: 0.00

50 <= x Count: 00210 3 4% 50 <= x Count: 00210 3

Mean: 266.160 268.800 267.04 Mean: 0.000 0.000 1.200 1.000 1.13

 (missing) Count: 3 2 1 6 (missing) Count: 3 2 1 6

Mean: 252.520 175.260 187.800 215.98 Mean: 1.367 1.050 1.000 1.20

 <Total> Count: 11 17 15 22 17 82 <Total> Count: 11 17 15 22 17 82

Mean: 254.313 289.426 248.904 242.678 250.299 256.65 Mean: 1.336 1.394 1.260 1.259 1.376 1.32

Annual Accrued Benefit Vested Service

ROOFERS42_0108
Exhibit X: Development of New Entrant Profile

Composition Roofers Local 42 Pension Plan

Age Range Age Count Weight DOB *

Annual 

Accrued 

Benefit

Vested 

Service

Below 25 22.5 11 15% 7/1/1995 238.71 1.300

25-29 27.5 19 25% 7/1/1990 272.19 1.416

30-34 32.5 16 21% 7/1/1985 209.00 1.281

35-39 37.5 11 15% 7/1/1980 317.39 1.336

40-44 42.5 11 15% 7/1/1975 248.27 1.218

45-50 47.5 4 5% 7/1/1970 325.38 1.550

50 and over 55 3 4% 1/1/1963 267.04 1.133

1/1/2018 New Entrant

* Rounded to nearest month

ROOFERS42_0109
Exhibit XI: Contribution History for 5% Employers

Composition Roofers Local 42 Pension Plan

2017 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 30,048 $5.00 $150,241

Dalton Roofing Co. 63,066 $5.00 $315,329

Imbus Roofing Co. 50,742 $5.00 $253,710

William Kramer & Sons 65,901 $5.00 $329,506

2016 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 25,295 $4.80 $121,414

Dalton Roofing Co. 58,844 $4.80 $282,450

Imbus Roofing Co. 39,176 $4.80 $188,046

William Kramer & Sons 74,960 $4.80 $359,807

Kelley & Carpenter 13,969 $4.80 $67,052

2015 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 31,336 $4.60 $144,144

Dalton Roofing Co. 46,051 $4.60 $211,833

Imbus Roofing Co. 36,287 $4.60 $166,922

William Kramer & Sons 62,729 $4.60 $288,552

2014 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 30,104 $4.40 $132,456

Dalton Roofing Co. 44,704 $4.40 $196,699

Imbus Roofing Co. 35,877 $4.40 $157,857

William Kramer & Sons 62,663 $4.40 $275,715

2013 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 30,154 $4.20 $126,645

Dalton Roofing Co. 44,460 $4.20 $186,732

Imbus Roofing Co. 32,646 $4.20 $137,115

William Kramer & Sons 73,544 $4.20 $308,885

ROOFERS42_0110
Exhibit XI: Contribution History for 5% Employers

Composition Roofers Local 42 Pension Plan

2012 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 17,763 $4.00 $71,050

CLL Enterprises, Inc. 68,863 $4.00 $275,450

Dalton Roofing Co. 61,936 $4.00 $247,745

Imbus Roofing Co. 32,705 $4.00 $130,818

2011 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 21,552 $3.60 $77,587

CLL Enterprises, Inc. 72,756 $3.60 $261,922

Dalton Roofing Co. 55,087 $3.60 $198,313

Imbus Roofing Co. 38,538 $3.60 $138,735

2010 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 12,610 $3.60 $45,397

CLL Enterprises, Inc. 57,871 $3.60 $208,336

Dalton Roofing Co. 48,359 $3.60 $174,093

Imbus Roofing Co. 39,855 $3.60 $143,477

Kelley & Carpenter 13,773 $3.60 $49,584

The Zero Breeze Company 12,519 $3.60 $45,070

2009 plan year 5% employers

Name

Contribution Base 

Units (Hours)*

Average Contribution 

Rate ($/Hour) Total Contributions

A.W. Farrell & Son 12,948 $3.40 $44,022

CLL Enterprises, Inc. 64,502 $3.40 $219,306

Dalton Roofing Co. 50,721 $3.40 $172,452

Imbus Roofing Co. 39,870 $3.40 $135,559

Kelley & Carpenter 15,077 $3.40 $51,262

R.E. Forshee 28,286 $3.40 $96,173

* Estimated based on Journeyman contribution rate.

ROOFERS42_0111
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT H 

NARRATIVE STATEMENT

ROOFERS42_0112
Narrative Statement of the Reason the

Composition Roofers Local 42 Pension Plan is In

Critical and Declining Status

In December 2017, the Center for Retirement Studies at Boston College released a special report 

entitled “Multiemployer Pension Plans: Current Status and Future Trends.” 1 This report details 

several characteristics that are common to plans that are facing insolvency, including the 

Composition Roofers Local 42 Pension Fund—a declining number of participants, a low funded 

ratio, a high percentage of inactives to total members and a high rate of negative cash flow. These 

factors and others have created a situation in which the Plan is likely to be insolvent in 2030

unless a MPRA application is approved.

Declining Number of Participants: A review of the actuarial valuation reports over the past 20 

years show that there are fewer active participants to help support the Plan and pay accrued 

legacy costs. For the Plan year ending December 31, 2001, the valuation showed 326 active 

participants. This was the highest level of actives over the past 20 years. By the end of the 2014 

Plan year, there were only 170 active participants, a decline of 48%. Although the numbers have 

stabilized and the Plan has grown slightly, it is not reasonable to assume that the number of 

actives will ever approach the levels of 2001. Roofing is a very physical trade and it is difficult for 

the Union and Employers to find individuals who are interested in a long-term roofing career. 

Additionally, as explained above, there is more competition in the market than in years’ past, 

primarily from contractors pay relatively low wages and benefits. 

High Percentage of Inactives to Total Participants: Like most mature plans, the Composition 

Roofers Local 42 Plan has seen an increase in the proportion of inactive former participants, 

retirees and beneficiaries. For the Plan year ending December 31, 2001, the valuation reports 

show active participants were 63% of the overall participant population. By the end of the 2016 

plan year, the valuation report showed actives had dipped to 36% of the overall participant 

population. While these numbers have stabilized, it is not reasonable to assume the ratio will 

improve dramatically over the next several years. This imbalance means that higher contribution 

rates and lower benefit accruals have much less impact than in years past.

Historic Market Downturns and Declining Funded Ratio: For the Plan year ending 1999, the real 

funded ratio was 130.9% and the Plan was fiscally strong. Unfortunately, over the ensuing three 

years, the Plan investment returns averaged annual losses of 3.5%. This obviously had a negative 

impact on the funding ratio. In the years leading up to the 2008 market crash, the Plan slowly 

1 Alicia H. Munnell, Jean-Pierre Aubry & Caroline V. Crawford, Ctr. for Retirement Research at Bos. College, 

Multiemployer Pension Plans: Current Status and Future Trends (2017), available at http://crr.bc.edu/specialprojects/special-reports/multiemployer-pension-plans-current-status-and-future-trends/. 

ROOFERS42_0113
regained ground that had been lost. Returns over that period averaged 10.22% and the real 

funded ratio reached 96.5%. The 2008 market crash was in many ways the death knell for the 

long-term solvency of the Plan. Despite the diversification of investments, the Plan suffered a 

28.7% loss for the Plan year ending 2008 and the funded ratio dropped to 62.3%. By the end of 

the 2016 Plan year, the funded ratio declined to 49.7%. 

Negative Cash Flow: For the Plan year ending 1999, the real funded ratio was 130.9% and the 

Plan’s negative cash flow was a very manageable (0.2%). Just prior to the 2008 market crash, the 

negative cash flow was only (1.8%). Since that time the negative cash flow has grown to (9.1%). 

This is obviously not sustainable and will continue to grow, making it impossible for the Plan to 

remain solvent. 

Decline in Greater Cincinnati Construction Activity: According to the Construction Start Statistics 

from Dodge & Data Analytics, overall construction activity in the Greater Cincinnati area dropped 

dramatically following the 2008 market crash. In the five years prior to 2008, construction starts 

in the Greater Cincinnati area averaged 13.668 million sq. ft. The five years following saw the 

average construction starts fall to an average of only 5.938 million sq. ft., a decline of over 56%. 

This trend is generally reflected in the work hours reported to the Plan during the same time 

period. In the five years prior to 2008, the Plan averaged 338,758 work hours. In the five years 

after, this fell to an average of 223,839 hours, or a decline of 34%. 

ROOFERS42_0114
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT I 

POWER OF ATTORNEY

ROOFERS42_0115
Power of Attorney and Declaration of Representative before the Department of the

Treasury for the Composition Roofers Local 42 Pension Plan

Applicant

Plan Name: Composition Roofers Local 42 Pension Plan

Plan Address: 205 W. 4th Street, Ste. 225

Cincinnati, OH 45202

EIN: 31-6127285

Plan Number: 001

Plan Contact: Rodney Toole

P: (513) 381-6886

F: (513)381-0238

E: info@r42pensionrecovery.com

Applicant hereby appoints the following representative(s) as attorney(s)-in-fact to represent the 

taxpayer before the Department of the Treasury and perform acts related to the attached 

application dated June 28, 2019 for suspension of benefits under Section 432(e)(9) of the Internal 

Revenue Code of 1986, as amended.

Representative Information No. 1:

Name: Michael A. Ledbetter

Title: Fund Attorney

Address: Ledbetter Parisi LLC

2449 North Delaware Street

Indianapolis, IN 46205

Telephone: (937) 619-0900

Fax: (937) 619-0999

Email: ledbetter@fringebenefitlaw.com

EIN: 03-0599899

Send copies of notices and communications to representative: YES.

With the exception of the acts described below, I authorize my representative(s) to receive and 

inspect my confidential tax information and to perform acts that I can perform with respect to 

the attached application dated June 28, 2019 for suspension of benefits under Section 432(e)(9). 

For example, my representative(s) shall have the authority to sign any agreements, consents, or 

similar documents.

Specific acts not authorized: None.

ROOFERS42_0116
Signature of Applicant and Date 

Mr. Thomas Dalton 

Authorized Trustee on behalf of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

Datl r ' 

Declaration of Representative No. 1 

Mr. Rodney Toole 

Authorized Trustee on behalf of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

Date 

Under penalties of perjury, by my signature below I declare that: 

• I am not currently suspended or disbarred from practice before the Internal Revenue Service; 

• I am authorized to represent the Applicant for the matter(s) specified in this Power of Attorney 

and Declaration of Representative; and 

• I am one of the following: 

0 

b. 

c. 

d. 

e. 

f. 

g. 

Attorney-a member in good standing of the bar of the highest court of the 

jurisdiction shown below. 

Certified Public Accountant-duly qualified to practice as a certified public accountant 

in the jurisdiction shown below. 

Enrolled Agent. 

Officer-a bona fide officer of the Applicant. 

Full-Time Employee-a full-time employee of the Applicant. 

Enrolled Actuary-enrolled as an actuary by the Joint Board for the Enrollment of 

Actuaries under 29 U.S.C. 1242 (the authority to practice before the Internal Revenue 

Service is limited by section 10.3(d) of Circular 230). 

Enrolled Retirement Plan Agent. 

Licensing Jurisdiction: Ohio, Indiana, Michigan 

Bar No.: 

CAF No.: 

0068472 (OH), 34853-49 (IN), P80758 (Ml) 

0306-88056R 

Signature of Representative and Date: 

Michael A. Ledbetter, Esq. Date 

ROOFERS42_0117
Representative Information No. 2 

Name: 

Address: 

Jason Birkle, EA, MAAA, ASA 

Cuni, Rust & Strenk 

4555 Lake Forest Drive, Suite 620 

Cincinnati, Ohio 45242 

Telephone: (513) 985-6184 

Fax: (513) 985-6185 

Email: jason.birkle@crsact.com 

EIN: 31-1227755 

With the exception of the acts described below, I authorize my representative(s) to receive and 

inspect my confidential tax information and to perform acts that I can perform with respect to 

the attached application dated June 28, 2019 for suspension of benefits under Section 432(e)(9). 

For example, my representative(s) shall have the authority to sign any agreements, consents, or 

similar documents. 

Specific acts not authorized: None. 

Signature of Applicant and Date 

Mr. Thomas Dalton 

Authorized Trustee on behalf of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

Dat? ' 

Mr. Rodney Toole 

Authorized Trustee on behalf of the 

Board of Trustees for the Composition 

Roofers Local 42 Pension Plan 

Date 

ROOFERS42_0118
Declaration of Representative No. 2 

Under penalties of perjury, by my signature below I declare that: 

• I am not currently suspended or disbarred from practice before the Internal Revenue Service; 

• I am authorized to represent the Applicant for the matter(s) specified in this Power of Attorney 

and Declaration of Representative; and 

• I am one of the following: 

a. 

b. 

C. 

d. 

e. 

0 

g. 

Attorney-a member in good standing of the bar of the highest court of the 

jurisdiction shown below. 

Certified Public Accountant-duly qualified to practice as a certified public accountant 

in the jurisdiction shown below. 

Enrolled Agent. 

Officer-a bona fide officer of the Applicant. 

Full-Time Employee-a full-time employee of the Applicant. 

Enrolled Actuary-enrolled as an actuary by the Joint Board for the Enrollment of 

Actuaries under 29 U.S.C. 1242 (the authority to practice before the Internal Revenue 

Service is limited by section 10.3(d) of Circular 230). 

Enrolled Retirement Plan Agent. 

Enrollment Number: 17-07856 

Signature of Representative and Date: 

son C. Birkle, EA, MAM, ASA Date 

ROOFERS42_0119
Application for Approval of Benefit Suspension for the

Composition Roofers Local 42 Pension Plan

EXHIBIT J 

PLAN DOCUMENTS

ROOFERS42_0120
COMPOSITION ROOFERS LOCAL 42 

PENSION PLAN 

Restated and Amended 

Effective January 1, 2015 

ROOFERS42_0121
TABLE OF CONTENTS 

PREAMBLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

ARTICLE I 

DEFINITIONS . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

1.1 Accrued Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

1.2 · Actuarial Equivalent . . . . . . .. . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . ... 6 

1.3 Actuary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. 7 

1.4 Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

1.5 Annuitant............... .... ... ... .. .. .................................. 8 

1.6 Annuity Starting Date................................................ 8 

1. 7 Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 8 

1.8 Beneficiary............................................................. 8 

1.9 Break in Service.......................................................... 8 

1.10 Collective Bargaining Agreement................................. 8 

1. 11 Consultant .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

1.12 Contributions......................................................... 9 

1.13 Covered Employment . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . .. . .. 9 

1.14 Credited Service . . . . .. .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 9 

1.15 Custodian . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . .. . . . .. . . . .. . . .. 9 

1.16 Employee............................................................. 9 

1.17 Employer......................................................... .. ... 10 

1.18 BRISA.................................................................. 10 

1.19 Hour of Service . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . 10 

1.20 Investm.ent Manager . . .. . . .. . . .. . . . . . . . . . .. . . . . .. . . . .. . . . .. . . . . . . . . . .. 11 

1.21 Joint and Survivor Annuity . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 

1.22 Participant . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . .. . . . . . . . . . . . . . . . . .. . . . 11 

1.23 Party in Interest ........... _........................................... 12 

1.24 Plan........................................................... ......... 12 

1.25 Plan Year.............................................................. 12 

1.25 Qualified Election.................................................... 12 

1.26 Qualified Joint & Survivor Annuity............................... 12 

1.27 Required Beginning Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 

1.28 Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 12 

1.29 Trust................................................................... 12 

1.30 Trust Fund............................................................ 12 

1.31 Trustee ... . . . ... .. . ... . . . .. . . . . .... .. . .. ... ... . . . .. . ......... ........ ... 13 

1.32 Union.................................................................. 13 

1.33 Year of Service................................................ .. ..... 13 

ARTICLE II 

CREDITED SERVICE................................................ .... 14 

2.1 Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

2.2 Break in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

2.3 Grace Period from Breaks in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 

ROOFERS42_0122
ARTICLE III 

ELIGIBILITY . . . . . . .. . . .. .. . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . 17 

3.1 Normal Retirement.................................................... 17 

3 .2 Early Retirement . .. . . . . . . . . . . . .. . . . . . . .. . . . . .. . . . .. . . . . .. . . . . . . . . . . . . . . 17 

3 .3 Disability Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 

3.4 Vested Deferred Retirement ..... ... .......................... ...... .. 18 

ARTICLE IV 

RETIREMENT BENEFITS . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 

4.1 Normal Retirement............................................... ..... 20 

4.2 Adjustments to Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 

4.3 Early Retirement .. . . .. . . .. . . . . . .. . . . . . . . .. . . . .. . .. . . . . . .. . . . . .. . . . . . . . . 21 

4.4 Disability Retirement . . .. .. . .. . . . .. . .. .. .. . . . .. .. .. .. . . .. .. .. .. . . .. . . .. 21 

4.5 Eligibility for Death Benefits . . . .. . .. . . .. .. . . . . . .. .. . . . .. . . . .. . .. .. . .. 22 

4.6 Pre-Retirement Death Benefits .. .. . . . .. .. . . . . . . . . . . . . .. . . .. . .. . . . . . .. 22 

4.7 Post-Retirement Death Benefits...................................... 22 

ARTICLEV 

COMMENCEMENT AND DURATION OF BENEFITS . . . . . . .. . .. . 23 

5 .1 Commencement of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 

5.2 Duration of Benefits.......... ......................................... 23 

5.3 Suspension of Loss of Benefits....................................... 23 

5.4 Notice or Suspension of Benefits.................................... 24 

5.5 Employment Past Normal Retirement Age . .. . . . . . . . . . . . . . . . . . . .. .. 24 

5.6 Benefit Payments Following Suspension or Retirement 

After Normal Retirement Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 

5.7 Cessation of Disability Benefits ... .... .. ..... .. ... ..... .... .. ... .... 26 

5.8 Mandatory Distributions to Participants .... ... ... ..... .... .. .. . . ... 26 

ARTICLE VI 

FORM OF RETIREMENT BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 27 

6.1 Qualified Joint and Survivor Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 

6.2 Qualified Pre-Retirement Survivor Annuity . .. . .. . . .. . . . . . .. . .. .. . 28 

6.3 Qualified Optional Survivor Annuity ("QOSA").................. 28 

6.4 Joint and Survivor Pension "Pop-up"............................... 29 

6.5 IRC Section 40l(a)(9) Requirements.............................. 29 

6.6 Minimum Distribution Incidental Benefit Requirements . . . . . . .. 29 

ARTICLE VII 

NON-ALIENATION OF BENEFITS . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . .. 31 

7.1 Non-Alienation of Benefits.......................................... 31 

7.2 Qualified Domestic Relations Order . . . ... . . . . . . .. . . . . . . . . . .. .. . . ... 31 

ARTICLE VIII 

CONTRIBUTIONS . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . .. . .... 32 

8.1 General . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 32 

8.2 Increases or Decreases in Benefits .. ....... ... .. .... . .. ... ..... .... 32 

2 

ROOFERS42_0123
8.3 Reciprocal Contributions............ ... . .. . .. . .. ... . ..... .... ..... ... 32 

ARTICLE IX 

DISTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. 34 

9 .1 General . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 34 

9 .2 Direct Rollover of Contributions . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . ... 34 

ARTICLEX 

AMENDMENT AND DURATION OF THIS PLAN . . . . .. .. ..... ... 37 

10.1 Amendment of Plan................. ................. ... ............ 37 

10.2 IRS Approval.................................. ...................... 38 

10.3 Duration.............................................................. 38 

10.4 Merger of Plan........................................... ........ .. .. 39 

ARTICLE XI 

TERMINATION............................................... .. .......... 40 

11.1 Tennination .................. ...... .................. ................. 40 

11.2 Partial Withdrawal of Employers . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . 40 

11.3 Allocation on Tennination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 40 

11.4 Partial Tennination . . . . .. . .. . . . . . .. . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . .. 40 

ARTICLE XII 

TIIE PENSION TRUST AND FUNDING . .. ... .... ......... .. . .. ..... 41 

12.1 Trust Agreement......................... ... ..... ... ................. 41 

12.2 Non-Reversion of Contributions . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 41 

ARTICLE XIII 

ADMINISTRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .. . . . . . . . . . . . . . 42 

13.1 Administration by Trustees........................................ 42 

13.2 Application for Benefits . .. . .. ... ... ... ... .......... ................ 42 

13.3 Decision on Appeal.................................................. 43 

13.4 Official Plan Records . . . .. . . . .. .. ...... ... . .. . . . .. .. ........ ........ 43 

13.5 Ruling No Precedent.................................. .............. 43 

13.6 Adjustment of Benefits . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . ........ .. 43 

13.7 Three Year Limitation Period.. ... ...... ....... ..... ................ 44 

ARTICLE XIV 

MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............ 45 

14.1 Interest in the Plan................................................... 45 

14.2 Limitation on Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 45 

14.3 Participant Incapacity......................... ...................... 45 

14.4 Unclaimed Benefits/Missing Participants....................... 45 

14.5 Fonner Plan........................................................... 46 

14.6 Applicable Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .... 46 

14. 7 Veterans' Pension Rights . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . .. . .. ... 46 

14.8 Retroactive Annuity Starting Date................................. 46 

14.9 Overpayments .. . . . . . . . . . . . . . . . . .. . ... .. . .. . . . . .. . ... . . . . . . . . . . . . . . . 47 

3 

ROOFERS42_0124
14.10 Miscellaneous...................................................... 47 

ARTICLE XV 

EMPLOYER WITHDRAW AL LIABILITY ........ ..... .... .................. 48 

15. l Determination by Trustees.......................................... 48 

I 5.2 Employer's Right to Information................................... 48 

15.3 Trustees' Consultation with Actuary & Other Professionals... 49 

15.4 Annual Right to Notice of Potential Withdrawal Liability..... 49 

15 .5 Method of Calculation for Withdrawal Liability . . . . . . . . . . . . . . . . 50 

15.6 .Complete Withdrawal................................................ 51 

15.7 Partial Withdrawal................................... .. ............... 51 

15.8 Arbitration.......................... ....... .. ...... .. . . ..... .. ...... ... 51 

15.9 Employer Withdrawal Liability Procedures.................... 51 

APPENDIX A 

Contribution and Reserve Rate........... .. ... .. ...................... ..... 53 

4 

ROOFERS42_0125
COMPOSITION ROOFERS NO. 42 PENSION PLAN 

AS RESTATED AND AMENDED 

This Restated and Amended Pension Plan is hereby updated effective as ofJanuary 1, 

2015, except as otherwise noted, in accordance with the powers granted to the undersigned 

Trustees in the COMPOSITION ROOFERS NO. 42 PENSION FUND AGREEMENT AND 

DECLARATION OF TRUST. 

PREAMBLE 

On December 14, 1964, the Trustees of the Composition Roofers No. 42 Pension Fund, 

pursuant to the Agreement and Declaration of Trust effective December 14, 1964, adopted a 

certain Plan effective June 1, 1964, which provided pension benefits to eligible Employees. 

The said Pension Plan was amended from time to time, but with the purpose ofthis Plan 

remaining that of providing such pension benefits for all Employees and Beneficiaries (as 

defined herein) who satisfy the requirements with respect to eligibility contained in the Plan. 

This Plan is intended to consolidate and update the Plan, with all amendments thereto, 

into one document to comply with all applicable laws, and is further intended to meet the 

applicable requirements of the Internal Revenue Code of 1986, as amended (hereinafter referred 

to as "IRC"), and the Employee Retirement Income Security Act of 1974 Certain amendments 

are now incorporated in this Restatement (i.e., principally those made to comply with certain 

requirements of the Pension Protection Act of2006 (PPA), the final Section 415 regulations of 

the Internal Revenue Code, the Heroes Earnings Assistance and Relief Tax Act, the Worker, 

Retiree, and Employer Recovery Act, the United States v. Windsor decision and other applicable 

rules and regulations). 

5 

ROOFERS42_0126
ARTICLE I 

DEFINITIONS 

The following terms used herein shall have the following respective meanings, unless the 

context clearly indicates otherwise: 

1.1 "Accrued Benefit" of a Participant means that amount, as determined as of any 

specified date, which is equal to his annual Normal Retirement Benefit computed in accordance 

with Article N of the Plan, but based on Credited Service and contributions to the given date. 

1.2 "Actuarial Equivalent" means an alternative benefit or payment which has a onesum value equivalent to the one-sum value of the benefit or payment which it replaces, computed 

on the basis of the following actuarial assumptions: 

Interest: 7.0% 

Mortality: UP 1984 Mortality Table 

Effective for benefits the distribution of which commences in a Plan Year be · on 

or after January 1, 1987 but prior to December 31 . 2000, the Actuarial Equivalent lump sum 

shall be determined using the interest rates specified above or the following interest rates, 

whichever results in the greater Actuarial Equivalent benefit: the interest rate which would be 

used (as of the date of distribution) by the Pension Benefit Guaranty Corporation to value a 

benefit upon termination of an insufficient trusteed single-employer plan or 120 percent of that 

interest rate if the Actuarial Equivalent lump sum exceeds $25,000 (provided, that the use of this 

120 percent rate shall not result in an Actuarial Equivalent lump sum ofless than $25,000). 

Effective for benefits the distribution of which commences in a Plan Year beginning on 

or after January 1, 2000, Actuarial Equivalency shall be determined on the basis of 7 .0% interest 

and UP 1984 Mortality Table Q! the Applicable Interest Rate and Applicable Mortality Table set 

forth in IRC Section 417 ( e ), whichever produces the greater benefit. 

6 

ROOFERS42_0127
The Applicable Interest Rate is the rate of interest on 30-year Treasury securities as 

specified by the Commissioner for the look-back month for the stability period. The look-back 

month applicable to the stability period is the 2nd calendar month preceding the first day of the 

stability period. The stability period is the successive period of one Plan Year that contains the 

Annuity Starting Date for the distribution and for which the Applicable Interest Rate remains 

constant. 

A plan amendment that changes the date for determining the Applicable Interest Rate 

(including an indirect change as a result of a change in Plan Year), shall not be given effect with 

respect to any distribution during the period commencing one year after the later of the 

amendment's effective date or adoption date, if, during such period and as a result of such 

amendment, the Participant's distribution would be reduced. 

The IRC Section 417 "Applicable Mortality Table" for distributions commencing prior to 

January 1, 2003, is set forth in Rev. Rul. 95-6. The IRC "Applicable Mortality Table" for 

distributions commencing on or after January 1, 2003, shall be as set forth in Rev. Ruling 2001-

62. Additionally, any references in the Plan to the "Applicable Mortality Table" or the mortality 

table set forth in Rev. Ruling 95-6 shall (beginning January 1, 2003) be construed as a reference 

to the mortality table prescribed by Rev. Ruling 2001-62. 

For lump sum payments on and after January 1, 2008, the "Actuarial Present Value" shall 

be determined by using the "Applicable Interest Rate" and "Applicable Mortality Table" set 

forth in this Subsection: 

(a) The Applicable Interest Rate shall be the interest rate prescribed under IRC 

Section 417(e)(3)(C), which is the applicable first, second and third segment rates 

(as defined in IRC Section 417(e)(3)(D)) for the second calendar month preceding 

the first day of the Plan Year that contains the date of distribution, or such other 

time as may be prescribed by the Secretary of Treasury, for the second month 

preceding the first day of the Plan Year in which the distribution was made. The 

Plan Year is the stability period under Treasury Regulation§ l.417(e)-l(d)(4). 

7 

ROOFERS42_0128
(b) The Applicable Mortality Table shall be the mortality table prescribed in 

regulations under IRC Section 417(e)(3)(B), as such table may be modified by the 

Secretary of Treasury, for use in the Plan Year that contains the date of 

distribution. 

1.3 The term "Actuary" means any individual who has satisfied the standards and 

qualifications as set forth in the regulations of the Joint Board for the Enrollment of Actuaries and 

who has been approved as an enrolled actuary to perform actuarial services required under the 

Employee Retirement Income Security Act of 1974 (BRISA). 

1.4 The term "Administrator" means the Board of Trustees. 

1.5 The tenn "Annuitant" means an Employee who is receiving retirement benefits 

under this Plan. 

1.6 The "Annuity Starting Date" is the first day of the first period for which a benefit 

is payable as an annuity. 

1.7 "Association" shall mean the Greater Cincinnati Roofing Contractors Association, 

or its corporate successor. 

1.8 The term "Beneficiary" means a person designated by a Participant or by the 

terms of the Plan who is or may become entitled to a benefit thereunder. 

1.9 "Break in Service" means: Any Plan Year during which an Employee has not 

completed an Hour of Service. 

1.10 "Collective Bargaining Agreement" shall mean any written contract by and 

between the Union and the Employers as defined herein and shall also include any and all 

extensions thereof, renewal or renewals thereof, any amendments or addenda thereto, any assents 

to participation, and any subsequent Collective Bargaining Agreements, which provide pension 

contributions to be made to this Plan, Trust and Fund as presently existing or as hereafter 

amended. 

8 

ROOFERS42_0129
1.11 The term "Consultant" means any person or entity who for compensation, 

advises, represents and provides other assistance to the Trustees concerning the operation of the 

Plan. 

1.12 The term "Contributions" means the payments required, whether paid or owed, of 

any Employer to the Trust Fund as required by the Collective Bargaining Agreement. 

1.13 "Covered Employment" shall mean employment by an Employee for which the 

Employer has agreed to contribute to the Fund under the Collective Bargaining Agreement with 

the Union or under any other written agreement. Covered Employment shall include 

employment with the Union as an Employee of the Union or of the Fund, or as an elected or an 

appointed Official of the Union, insofar as the Union or the Fund makes contributions to the 

Fund with respect to said employment. 

1.14 "Credited Service" of an Employee is the time computed in accordance with 

Article II hereof, to determine Employee's eligibility for benefits hereunder. Credited Future 

Service is any Credited Service after June 1, 1964. 

1.15 The term "Custodian" means one who is officially entrusted with guarding and 

keeping records and documents of the Trust Fund. 

1.16 The term "Employee" shall include: 

(a) All the employees working or available for work in the Collective Bargaining 

Unit of the Union and represented for the purpose of collective bargaining by the 

Union who are employed by Employers who are signatory to the Trust Agreement 

or who signify their intention to be bound by this Trust Agreement by signing an 

Assent of Participation and by making payments into the Fund hereby created. 

(b) Elected or appointed Officers or Employees of the Union, providing that the 

Trustees agree to accept such Officers and Employees. 

(c) Employees, if any, of the Trust Fund who are proposed and accepted for such 

benefits by the Trustees. As to such personnel who are Employees of the trust 

Fund, the Trustees shall be deemed to be an Employer within the meaning of this 

9 

ROOFERS42_0130
Trust Agreement, and may provide benefits for said Employees out of said Trust 

Fund. 

( d) A person, represented by or under the jurisdiction of the Union, who shall be 

employed by a Governmental Unit or Agency, and on whose behalf payment of 

contributions shall be made at the times and at the rate of payment equal to that 

paid by an Employer, as defined in Section 1.17 of this Article, in accordance 

with a written agreement, ordinance or resolution. 

1.17 The term "Employer" means and shall be deemed to include any person, firm, 

association, partnership or corporation employing Employees working in the Collective 

Bargaining Unit of the Union as well as Employers who employ persons represented for 

purposes of collective bargaining by. the Union and who signify their intentions to be bound by 

the provisions of the Declaration of Trust by signature hereto, or by signing an Assent of 

Participation, and by making payments into the fund hereby created. This Section shall also 

include the Composition Roofers Local No. 42, as an Employer for those Employees working in 

full time capacities of the Union. The term "Employer" as used in this Plan shall be further 

deemed to include the Trust itself. 

1.18 The term "BRISA" means the Employee Retirement Income Security Act of 1974 

and any amendments thereto, together with any regulations promulgated pursuant to its 

provisions. 

1.19 "Hour of Service" means: 

(a) Each hour for which an Employee is paid, or entitled to payment, for the 

performance of duties for the Employer. These hours shall be credited to the 

Employee for the computation period or periods in which the duties are 

performed; and 

(b) Each hour for which an Employee is paid, or entitled to payment, by the 

Employer on account of a period of time during which no duties are performed 

(irrespective of whether the employment relationship has terminated) due to 

vacation, holiday, illness, incapacity (including disability), layoff, jury duty, 

military duty or leave of absence. No more than 501 Hours of Service shall be 

credited under this paragraph for any single continuous period (whether or not 

such period occurs in a single computation period). Hours under this paragraph 

10 

ROOFERS42_0131
shall be calculated and credited pursuant to Section 2530.200b-2 of the 

Department of Labor Regulations which are incorporated herein by this reference; 

and 

( c) Each hour for which back pay, irrespective of mitigation of damages, is either 

awarded or agreed to by the Employer. The same Hours of Service shall not be 

credited both under paragraph (a) or (b) as the case may be, and under this 

paragraph (c). These hours shall be credited to the Employee for the computation 

period or periods to which the award or agreement pertains rather than the 

computation period in which the award, agreement or payment is made. 

(d) No Hours of Service will be counted as Hours of Service under Section unless the 

Employee furnishes to the Plan Administrator such timely information the Plan 

Administrator may reasonably require. 

1.20 "Investment Manager" means any person, firm or corporation who has been 

appointed by the Trustees as such and has evidenced acknowledgement and acceptance of such 

appointment by a document signed in writing and returned to the Trustees and who is: 

(a) Registered as an Investment Advisor under the Investment Advisor's Act of 1940; 

(b) Is a Bank as defined in that Act; or 

( c) Is an Insurance Company qualified under the laws or more than one State to have 

the power to manage, acquire or dispose of the assets of Trust Funds such as this 

Fund. 

1.21 The term "Participant" means any Employee or former Employee of an Employer 

who is or may be eligible to receive a benefit of any type from the Fund or whose Beneficiaries 

may be eligible to re.ceive any such benefit. 

(a) 

(b) 

Employees in Covered Employment prior to January 1, 2004: shall be 

considered a Participant upon the completion of one Hour of Service for 

which contributions are made to the Fund on his behalf. 

Employees who begin work in Covered Employment on or after January 

1, 2004: shall be considered a Participant in the Plan the first month 

following the month in which he is credited with 1,000 Hours of Service 

for contributing Employers. Employees who sign and file a valid 

Reciprocity Agreement will have c.ontributions transferred to their Home 

Local Fund, and will not become Participants of the Composition Roofers 

Local No. 42 Pension Plan. 

11 

ROOFERS42_0132
1964. 

1.22 The term "Party in Interest" means such persons and entities as defined in BRISA. 

1.23 "Plan" means the Composition Roofers No. 42 Pension Plan effective January 1, 

1.24 "Plan Year" means the 12 consecutive month period beginning on January 1 and 

ending on December 31. 

1.25 "Qualified Election" shall mean a waiver in writing of a Qualified Joint and 

Survivor Annuity. The waiver must be signed by the Participant and the Participant's Spouse 

and the Spouse's signature must be witnessed by a Notary Public or a Plan representative. 

1.26 "Qualified Joint and Survivor Annuity," as used herein, means an annuity for the 

life of the Employee with a survivor annuity for the life of bis Spouse which is equal to the 

annuity payable during the joint lives of the Employee and his Spouse and which is the Actuarial 

Equivalent of a single Life Annuity on the life of the Employee. 

1.27 "Required Beginning Date" shall mean April 1 of the calendar year following the 

year the Participant attains age 701⁄2. 

1.28 "Spouse" means the person to who to a Participant is legally married. Whether a 

marriage is legal shall be determined by federal law and shall include a same-sex Spouse where 

the Participant and Spouse were legally married in a state that recognizes same-sex marriages. A 

Spouse may also be a former Spouse designated as a surviving Spouse by the terms of a valid 

Qualified Domestic Relations Order. 

1.29 "Trust" means the Declaration of Trust establishing the Composition Roofers, 

Local 42, Pension Plan dated December 4, 1964, and any amendments thereto. 

1.30 The term "Trust Fund" shall mean the Composition Roofers No. 42 Pension Fund 

established pursuant to the terms of the Declaration of Trust as described herein. It shall include 

but not be limited to all funds received in the form of contributions, together with all contracts, 

12 

ROOFERS42_0133
including dividends, interest, refunds, transfers of funds under reciprocity, and any other sums 

payable to the Trustees on account of such contracts, all investments made and held by the 

Trustees, all income, increments, earnings and profits therefrom, and any and all other property 

or funds received and held by the Trustees by reason of their acceptance of this Declaration of 

Trust. Employer Contributions owed but not paid are also considered assets of the Trust Fund. 

1.31 "Trustee" means the Trustees and their successors, appointed to administer the 

Plan. The Trustees are named fiduciaries for the Plan. 

1.32 "Union" as used in this Plan means the United Union of Roofers, Waterproofers 

and Allied Workers, Local Union No. 42. 

1.33 "Year of Service" means one thousand (1,000) or more Hours of Service in 

Covered Employment during a Plan Year. Ifless than one thousand (1,000) Hours of Service are 

earned in a given year, a partial credit of one-tenth (1/lOtlt) of the year for each one hundred 

(100) hours worked will be credited in accordance with Article II hereunder. 

13 

ROOFERS42_0134
ARTICLE II 

CREDITED SERVICE 

2.1 Credited Service. The Credited Service of an Employee is the time computed in 

accordance with the following schedule: 

(a) Credited Service Between June 1. 1964 and May 31, 1976. For such Plan Years 

beginning on or after June 1, 1964, and through May 31, 1976, an Employee shall 

accrue one (l) year of Credited Service if contributions have been made on his 

behalf to the Trust Fund for one thousand (1,000) or more hours. If contributions 

have been made for less than one thousand (1,000) hours, he shall be credited 

with one-tenth (1110th) of a year for each one hundred (100) such hours. 

(b) Credited Service after June 1, 1976. For each Plan Year beginning on or after 

June 1, 1976, an Employee shall accrue one (1) year of Credited Service ifhe 

completes one thousand (1,000) or more Hours of Service in such Plan Year. If 

he complete less than one thousand (1,000) Hours of Service, he shall be credited 

with one-tenth (1/10th) of a year for each one hundred (100) such hours. 

2.2 Break in Service. The continuity of Covered Employment shall be considered an 

essential element under this Plan. The continuity of Covered Employment shall be considered 

broken, and except for Employees having a vested interest defined by Article III, all previously 

accumulated pension credits shall be cancelled, if an Employee is charged with five (5) 

consecutive one year Breaks in Service. 

If an Employee who does not retain a vested right in his Accrued Benefit according to 

Section 3.4 and who has suffered at least a one year Break in Service, but who has not been 

charged with five (5) consecutive one year Breaks in Service, again becomes a Participant in the 

Plan according to Section 1.21, shall have his prior Service and Accrued Benefit restored. 

Similarly, if a Participant who is vested in his Accrued Benefit under the terms of Section 

3.4 returns to Covered Employment and again becomes a Participant according to Section 1.21, 

he shall have his Service and Accrued Benefit restored, and any subsequent Service and Benefits 

earned will be added to those respective amounts. 

14 

ROOFERS42_0135
2.3 Grace Period from Breaks in Service. It shall not be considered a break in 

Covered Employment and an Employee shall be granted a grace period if his failure to earn an 

Hour of Service in any period of time equivalent to the period as set forth in Section 2.2 hereof is 

due to the following: 

(a) Injury or sickness which prevented him from working as a roofer, in which case a 

grace period ofup to three (3) years will be allowed during the continuance of 

such disability, but in the case of a Pensioner receiving Disability Pension 

Benefits, the grace period shall not be granted for any less than that period of time 

for which he is receiving such Disability Pension. Disability for the purpose of 

this Section of the Plan is to be determined in the sole satisfaction of the Trustees. 

In order to secure the benefit of the disability grace period, an Employee must 

give written notice to the Trustees that he is disabled. No grace period shall be 

granted for any period prior to one (1) year preceding the receipt of such written 

notice, unless the Trustees find there are extenuating circumstances which prevent 

timely filing. 

(b) Military service in the Armed Forces of the United States, in which case a grace 

period shall be granted for the entire time the Employee was engaged in such 

military service, provided he makes himself available for work in Covered 

Employment within ninety (90) days after separation from active service in the 

Armed Forces, or within ninety (90) days after recovery from a disability incurred 

during military service. Effective January 1, 2007, any Participant killed during a 

period of qualifying military service will be credited with Hours of Service as if 

he were reemployed the day prior to his death. The manner of calculating the 

Hours of Service to be credited to the Participant will be solely at the discretion of 

the Board of Trustees. 

(c) After the last contribution date, the promotion of an Employee by an Employer to 

an employment category not covered by the Collective Bargaining Agreement in 

effect between the Employer and Union, or an Employee's acceptance of full time 

employment with the Local Union, the International, or other Employer approved 

by the Trustees, in which cases a grace period for the entire length of such 

employment will be granted. In order to secure the benefit of a grace period 

under this Subsection ( c ), an application in writing must be submitted to the 

Trustees within twenty-four (24) months after the date that the Employee leaves 

Covered Employment. 

( d) For purposes of determining whether a Break in Service has occurred, periods 

during which an Employee is absent from work due to an Approved Leave of 

Absence granted by the Trustees shall not be considered a Break in Service during 

such periods. 

15 

ROOFERS42_0136
Approved leave of Absence means any absence authorized by the Trustees, 

provided that all persons under similar circumstances must be treated alike in the 

granting of such. Approved Leave of Absence, and provided further that the 

Employee retires or returns to work within the period specified in the Approved 

Leave of Absence. 

The exceptions noted in (a), (c), and (d) of this Section are not intended to add to the 

pension credits of any Employee except as may be required by law. They are merely intended to 

set forth a period which may be disregarded in determination of whether a Break in Service has 

occurred. 

16 

ROOFERS42_0137
ARTICLE ID 

ELIGIBILITY 

3.l Normal Retirement. An Employee in the Plan shall be entitled to retire on the 

first (1 st

) day of the month following the later of the attainment of age fifty eight (58) years or the 

fifth (5th) anniversary of the time he commenced participation in the Plan. His date ofretirement 

shall be on or after the first (1 st

) day of the month next following the date upon which written 

application for retirement is filed with the Trustees or their authorized agent, accompanied with 

satisfactory evidence of his date of birth. Upon the attainment of the later of age fifty-eight (58) 

of the fifth (5th) anniversary of the time he commenced participation in the Plan, a Participant 

shall have a one hundred percent (100%) non-forfeitable right to his Normal Retirement 

Benefits. This Section shall entitle the Employee to Normal Retirement Benefits as provided in 

Section 4.1 hereunder. 

3.2 Earl Retirement. An Employee in the Plan shall be entitled to retire on the first 

(1 st

) day of the month following the later of the attainment of age fifty-five (55) years, or the 

completion of five (5) or more years of Credited Service, but who has not as yet attained his 

Normal Retirement Age. His date ofretirement shall be on or after the first (1st

) day of the 

month next following the date upon which written application for early retirement is filed with 

the Trustees or their authorized agent, accompanied with satisfactory evidence of his date of 

birth. This Section shall entitle the Employee to Early Retirement Benefits as provided in 

Section 4.3 hereunder. 

(a) Any Employee who is eligible for an Early Retirement benefit may simultaneously 

apply to the Plan for disability and Early Retirement. The Employee may begin receipt 

of the Early Retirement benefit while awaiting a disability determination from the 

Social Security Administration. In the event the Employee is determined to be disabled 

by Social Security, his benefit will convert from an Early to a disability retirement. 

Benefit payments will be changed (on a prospective basis) effective the first day of the 

month following the month in which the Employee provides evidence of a disability 

17 

ROOFERS42_0138
payment from Social Security. The initial application for benefits must clearly state the 

Employee is seeking disability benefits in addition to an Early Retirement. 

3.3 Disability Retirement. An Employee with five ( 5) or more years of Credited 

Service who is permanently and totally disabled prior to Nonna! Retirement Age shall be entitled 

to retire and be eligible for disability benefits as provided in Section 4.4 hereunder, if he worked 

at least 200 Hours of Service during the 24-month period prior to his disability, or if his last 

work was in Covered Employment. 

(a) An Employee shall be deemed to be permanently and totally disabled only if a 

determination has been made by the Social Security Administration of Medical 

Disability in connection with Old Age and Survivor Insurance Coverage. 

(b) An Employee applying for disability pension may be required to submit to an 

examination by a physician or physicians selected by the Trustees, and may be 

required to submit to re-examination periodically as the Trustees may direct. 

(c) Upon approval of the application for benefits, the payment of the disability 

pension will begin as of the first day of the month coincident with, or next 

following the date on which the first Social Security disability check was received 

by the Employee and presented at the Administration Office. 

(d) Earnings by a disabled Pensioner. A disability Pensioner shall not be entitled to 

receive a monthly disability payment for any month during which he earns more 

than that amount allowed to be earned under Social Security regulations. A 

disability Pensioner shall report any and all earnings from any employment in 

excess of that amount allowed under Social Security to the office of the Pension 

Fund, in writing, within fifteen (15) days after the end of each quarter in which he 

had such earnings. If a disability Pensioner fails to make such timely reports as 

required by this Section, he shall be disqualified for benefits for twelve (12) 

months in addition to the duration of such employment for such violation. 

(e) Cessation of total and permanent disability. Any Employee retiring under the 

disability pension provision, who subsequently ceases to be totally and 

permanently disabled, may then return to Covered Employment and thereby 

resume the accrual of pension credits as outlined in Article II of this Plan. 

3.4 Vested Deferred Retirement. As of January 1, 1987, an Employee who ceases 

to work for an Employer making contributions on his behalf to the Trust shall, ifhe has five (5) 

years or more of Credited Service and providing he applies therefore, be entitled. to a retirement 

18 

ROOFERS42_0139
benefit commencing on the first (1 st

) day of the month following his fifty-eighth (58th) birthday, 

computed on the same basis as normal retirement under Section 4.1 hereof. 

(a) For Annuity Starting Dates prior to January 1, 2014, an Employee who has 

satisfied the service requirement for an Early Retirement Benefit and is fully vested as 

provided in Section 3.4, but who separates from the service (ceases to be an Employee as 

defined herein) before satisfying the age requirement for such Early Retirement Benefit, 

is entitled upon satisfaction of said age requirement to receive a benefit not less than the 

benefit to which he would be entitled at age 58, reduced as provided in Section 4.3. Early 

payment of the Vested Deferred Retirement is eliminated for Annuity Starting Dates on 

or after January 1, 2014. 

19 

ROOFERS42_0140
ARTICLE IV 

RETIREMENT BENEFITS 

4.1 Normal Retirement. The Normal Form of benefit payments shall be a monthly 

annuity for the life of the Participant. The monthly retirement benefits of an Employee eligible 

for retirement benefits and who has applied therefor for commencement on or after age fiftyeight (58) years shall be equal to the sum of: 

(a) Four Dollars and Twenty Cents ($4.20) times the number of his years of Credited 

Past Service, not in excess of twenty (20) years computed to the nearest one-tenth 

(1110th) of a year, and completed on June 1, 1964, plus 

(b) 5 .22% of the amount of contributions made by an Employer on behalf of the 

Employee between June 1, 1964 and May 31, 1965, plus 

( c) 2.616% of the amount of contributions made by an Employer on behalf of the 

Employee from June 1, 1965 to May 31, 1966, plus 

(d) 1.74% of all contributions made on behalf ofan Employee from June 1, 1966 to 

May 31, 1972, plus 

(e) 2.04% of all contributions made on behalf ofan Employee from June 1, 1972 to 

May 31, 1974, plus 

(f) 2.04% of all contributions in excess of 15 Cents (15¢) per hour made on behalf of 

the Employee from June 1, 1974 to December 31, 1979, plus 

(g) 2.88% of all contributions in excess of 15 Cents (15¢) per hour made on behalf of 

the Employee from January 1, 1980 to December 31, 1983, plus 

(h) 2.45% of all contributions made on behalf of the Employee from January I, 1984 

to December 31, 1993, plus 

(i) 2.10% of all contributions made on behalf of the Employee from January 1, 1994 

to December 31, 2008, plus 

(j) 1.0% of all contributions made on behalf of the Employee in excess of the 

Reserve Rate listed in Appendix A, from January 1, 2009 forward. 

4.2 Adiustments to Benefits. In addition to the benefit determined under Section 

4.1, a further adjustment will be made as follows: 

20 

ROOFERS42_0141
(a) For Retirees and Beneficiaries receiving monthly benefits as of the Determination 

Date shown, a percentage increase in the amount indicated commencing on the 

Start Date. 

(a) 

(b) 

(c) 

(d) 

(e) 

Determination Date 

December 31, 1986 

December 31, 1988 

December 31, 1989 

December 31, 1997 

December 31, 1999 

Percentage 

Increase 

10% 

5% 

15% 

10% 

5%* 

Starting Date 

January 1, 1987 

January 1, 1989 

January 1, 1990 

January 1, 1998 

January 1, 2000 

* $25 per month minimum 

(b) For all other Participants as of the Determination Date not included in Section 

4.2(a) above, a percentage increase in the amount indicated to be effective on the 

given Determination Date. 

(a) 

(b) 

(c) 

(d) 

(e) 

Determination Date 

December 31, 1986 

December 31, 1988 

December 31, 1989 

December 31, 1997 

December 31, 1999 

Percentage Increase 

10% 

5% 

15% 

10% 

5% 

4.3 Earl Retirement. The monthly retirement benefit of an Employee eligible for 

retirement benefits and who has applied therefor for commencement on or after age fifty-five 

(55) years, and prior to age fifty-eight (58) years shall be computed on the same basis as 

''Normal Retirement" under Section 4.1, reduced by five-ninths of one percent (519th of 1 %) for 

each month that the early retirement date is prior to the first (1 st) of the month next following the 

fifty-eighth (58th) birthday. 

4.4 Disability Retirement. 

(a) There shall be no disability retirement benefits for an employee who has less than 

five (5) years of Credited Service at the time of disability. 

21 

ROOFERS42_0142
(b) The retirement benefit of an Employee who is eligible and has applied for 

disability retirement and who has five (5) or more years of Credited Service under 

the Plan shall be a monthly pension equal to his Accrued Benefit as of the date of 

disability. 

( c) The monthly disability retirement benefit for an Employee eligible for disability 

retirement benefits, as computed under either Section 4.4(a) or 4.4(b) above, shall 

be reduced by five-ninths of one percent (519th of 1 %) for each month that the 

disability retirement date is prior to the first day of the month next following the 

participant's 58th birthday. The reduction is based on the participant's age as of 

the date of the disability. There shall be no further reduction for those below age 

55. 

4.5 Eligibility for Death Benefits. The Spouse of an Employee with five (5) or more 

years of Credited Service shall be eligible for death benefits under the rules set forth in Sections 

4.6 and 4. 7 below. 

4.6 Pre-Retirement Death Benefits. A Qualified Pre-Retirement Survivor Annuity 

as described in Section 6.3 shall be payable upon the death of a vested Participant who is married 

for niore than one (1) year from the later of the Annuity Starting Date or the date of the 

Participant's death. 

4.7 Post.;,Retirement Death Benefit. If the death of a Participant occurs after 

monthly benefits have commenced, a death benefit will be payable in accordance with the form 

of benefit payment selected by the Participant at the Annuity Starting Date. 

22 

ROOFERS42_0143
ARTICLE V 

COMMENCEMENT AND DURATION OF BENEFITS 

5.1 Commencement of Benefits. Retirement benefits shall commence on the first 

(1 st) of the month following the date a written application is filed with the Trustees. In any 

event, benefits shall commence within sixty (60) days of the end of the Plan Year in which the 

latest of the following three events occur: 

(a) Attainment of age fifty-eight (58); 

(b) The fifth (5th) anniversary of participation in the Plan; 

(c) Termination of employment under the Plan. 

5.2 Duration of Benefits. The Normal form of benefit payment under the Plan is a 

Life Annuity. 

5.3 Suspension or Loss of Benefits. 

(a) A retired Employee who withdraws from nonnal retirement by working in 

disqualified employment shall be disqualified from receiving or being entitled to 

any pension benefits for any month during which he is not in retirement. 

Disqualified employment shall be construed to mean working in the industry or 

trade in any one or more of the following circumstances: 

(1) Employment by any contributing Employer; 

(2) Employment by any Employer in the same business as any contributing 

Employer; 

(3) Self-employment in the same business as any contributing Employer; 

( 4) Employment or self-employment in any business which is or may be 

under the jurisdiction of the Union. 

A Retiree will become disqualified by working more than 40 hours per month and 

shall have his benefits suspended for every month he was so employed. Pension 

benefits shall be adjusted at the end of the Plan Year in which re-employment was 

terminated to include the adjusted age of the Participant, and any contributions 

received on account of the Participant during such period of re-employment. 

Benefits will be adjusted as of the March 1st following the end of each Plan Year. 

23 

ROOFERS42_0144
S.4 Notice of Suspension of Benefits. Notice of the suspension of benefits under 

Section 5.3 hereof shall be given to all Participant/Retirees, and shall include the following 

information: 

(a) A description of the specific reasons why benefit payments are being suspended; 

(b) A general description of the Plan provisions relating to the suspension of 

payments, and a copy of such provisions; 

( c) A statement that the applicable Department of Labor Regulations may be found in 

Section 2503.203-3 of the Code of Federal Regulations; 

(d) The Plan's procedure for providing a review of the suspension benefits; 

(e) The procedure, and necessary forms, for filing a notice oftennination of 

disqualifying employment and resumption of benefit payments; 

(f) That the Plan intends to offset any suspendable amounts actually paid during 

disqualifying re-employment, specifying: 

(1) Period and amounts of such offset; 

(2) Manner in which offset will be handled. 

S.5 Employment Past Normal Retirement Age. A Participant who continues his 

employment beyond his Normal Retirement Age will be disqualified from receiving or being 

entitled to any pension benefits until he terminates his employment and applies for retirement 

benefits. Upon retirement, he shall be entitled to the greater of: the benefit payable at Normal 

Retirement Date actuarially increased to reflect commencement at a later retirement date; or his 

Accrued Benefit as of the late retirement date. 

S.6 Benefit Payments Following Suspension or Retirement After Normal 

Retirement Aee. 

(a) Amount of Benefit Payment. The monthly amount of benefits following a 

suspension or retirement after Normal Retirement Age, shall be determined under 

Subsection (b) and shall be adjusted for any optional fonn of payment in 

accordance with Subsection ( c ). Nothing in this Section is intended to extend any 

benefit increase or adjustment effective after the initial retirement to any benefit 

upon resumption of payment, except to the extent that it may be expressly 

directed by other provisions of the Plan. 

24 

ROOFERS42_0145
(b) Payment of Benefits. If a Participant retires on or after his Normal Retirement 

Date, does not complete at least 40 Hours of Service in Suspendable Employment 

during any month prior to the Annuity Starting Date, and if the Annuity Starting 

Date is after the Normal Retirement Date, the monthly benefit will be the Accrued 

Benefit at the Normal Retirement Date, actuarially increased for each month 

between the Normal Retirement Date and the Annuity Starting Date, and then 

converted as of the Annuity Starting Date to the form of a benefit elected in the 

pension application or, if none, to the Joint and Survivor Annuity. However, if 

for administrative reasons, such as the need to obtain reliable information to 

calculate benefits or to await formal approval by the Board of Trustees for 

benefits, actual payments begin after the scheduled Annuity Starting Date, such 

delay shall not affect the Annuity Starting Date nor the benefit determination, 

provided, however, that when such monthly payments actually begin, the Former 

Participant shall receive a lump sum retroactive payment to cover benefits due for 

all months after the Annuity Starting Date but prior to the commencement of 

monthly benefits. 

When a Participant or Fonner Participant whose monthly benefit has been 

suspended pursuant to Section 5.3 has filed for resumption of benefits, the amount 

of such benefit upon its resumption shall be the amount thereof prior to its 

suspension, increased to reflect benefits due which were not suspendable pursuant 

to Section 5.3. In addition, if the Participant or Fonner Participant earned 

additional benefit accruals while benefits were suspended, such additional benefit 

accruals shall be actuarially adjusted from the date they would first have been 

paid and as of the March 1 following the Plan Year in which they were earned, 

shall be reflected in the Fonner Participant's resumed benefit. A Former 

Participant who returns to Covered Employment shall not be entitled to a 

recomputation of his or her entire benefit upon subsequent termination of 

employment. 

( c) Adjustments. The amount determined under the above subparagraphs shall be 

adjusted (using the actuarial factors set forth in Article I, Section 1.2). 

(d) Effect upon Form of Benefit. A Joint and Survivor Annuity in effect immediately 

prior to suspension of benefits shall remain effective if death occurs while 

benefits are suspended. If a Participant earns additional benefit accruals while his 

or her benefit is suspended, such person shall be entitled to a new election as to 

the form of benefit, but only with respect to such benefit accruals earned during 

the period of suspension. 

(e) Notice. 

Once monthly benefits have been suspended, it is the Participant's responsibility 

to notify the Trustees qf any request for monthly benefits to resume. The 

Participant must notify the Fund Office in writing of any employment that is not 

Covered Employment within 15 days after the end of the month in which the 

Participant has any earnings from non-Covered Employment. The Trustees have 

25 

ROOFERS42_0146
the right to withhold monthly benefit payments until such notice is made to the 

Plan. 

5.7 Cessation of Disability Benefits. Disability Retirement Benefits shall be 

terminated upon the occurrence of any of the following events: 

(a) The Employee ceased to be eligible for disability benefits from Social Security; 

(b) The Trustees determine on the basis of medical examination that the Employee 

has sufficiently recovered to return to any regular work in Covered Employment 

and refuses an offer of employment; 

( c) The Employee refuses to undergo a medical examination ordered by the Trustees, 

provided that the Employee may not be required to undergo a medical 

examination more often than semi-annually; 

(d) The date an Employee reaches his normal retirement date; provided, however, 

that he shall then be entitled to Normal Retirement Benefits. 

S.8 Mandatory Distributions to Participants 

Notwithstanding any other provision in the Plan, payment of benefits shall not be 

suspended after April 1 following the year in which the Participant reaches the age of 70 1⁄2, 

whether or not he is still working in Covered Employment. However, benefits for such work will 

continue to accrue, with such accruals to be paid as of January 1 following the year in which they 

were earned. 

26 

ROOFERS42_0147
ARTICLE VI 

FORM OF RETIREMENT BENEFITS 

6.1 Qualified Joint and Survivor Annuity. 

(a) The distribution to any Participant must be paid in the form of a Qualified Joint 

and Survivor Annuity, unless an optional form of benefit is selected pursuant to a 

Qualified Election within the period commencing no more than 180 days and 

ending no less than 30 days prior to the Annuity Starting Date. In addition, the 

Plan Administrator shall provide each Participant, within a reasonable period 

prior to the commencement of benefits, a written explanation of: 

(1) The terms and conditions of a Qualified Joint and Survivor Annuity; 

(2) The Participant's right to make, and the effect of, an election to waive the 

Qualified Joint and Survivor Annuity form of benefit; 

(3) The rights of the Participant's Spouse; and 

( 4) The right to make, and the effect of, a revocation of a previous election to 

waive the Qualified Joint and Survivor Annuity. 

Notwithstanding the requirement of consent by the Participant's Spouse, if the 

Participant establishes to the satisfaction of the Trustees that such written consent 

may not be obtained because there is no Spouse or the Spouse cannot be located, 

the Qualified Election shall be deemed valid without such Spouse's signature. 

Any consent necessary for this provision will be valid only with respect to the 

Spouse who signs the consent or in the event of a deemed Qualified Election, the 

designated Spouse. A revocation of a prior waiver may be made by a Participant 

without the consent of the Spouse at any time before commencement of benefits. 

There is no limit to the number of Qualified Elections and revocations which may 

be made. 

(b) The automatic form of the Qualified and Joint and Survivor Annuity shall be paid 

in the form of a Qualified Joint and One-Half Survivor Annuity, otherwise known 

as a Joint and 50% Survivor Annuity. Under the Qualified Joint and One-Half 

Survivor Annuity, a reduced amount shall be paid to the Participant for his 

lifetime; and his Eligible Spouse, if surviving at the Participants death, shall be 

entitled to receive thereafter a lifetime survivorship Pension in a monthly amount 

equal to 50% of the reduced monthly amount which had been payable to the 

Participant. The last payment of a Qualified Joint and One-Half Survivor Annuity 

shall be made as of the first day of the month in which the death of the survivor 

occurs. 

( c) The Annuity Starting Date for a distribution may be less than 30 days after receipt 

of the written explanation described in the preceding paragraph provided: 

27 

ROOFERS42_0148
(1) The Participant has been provided with information that clearly indicates 

the Participant has at least 30 days to consider whether to waive the 

Qualified Joint and Survivor Annuity and elect (with spousal consent) to a 

form of distribution other than a Qualified Joint and Survivor Annuity; 

(2) The Participant is permitted to revoke any affirmative distribution election 

at least until the Annuity Starting Date or, iflater, at any time prior to the 

expiration of the 7-day period that begins the day after the explanation of 

the Qualified Joint and Survivor Annuity is provided to the Participant; 

and 

(3) The Annuity Starting Date is after the date that the written explanation 

was provided to the Participant. 

6.2 Qualified Pre-Retirement Survivor Annuity. 

(a) If a vested married Participant dies on or after the Earliest Retirement Age, the 

Participant's Surviving Spouse will receive the same benefit that would have been 

payable if the Participant had retired with an immediate Joint and 50% Survivor 

Annuity on the day before the Participant's date of death. 

(b) If a vested married Participant dies before the Earliest Retirement Age, the 

Participant's Surviving Spouse will receive the same benefit that would be 

payable if the Participant had: 

(1) Separated from service on the date of death; 

(2) Survived to the Earliest Retirement Age; 

(3) Retired with an immediate Joint and 50% Survivor Annuity at the Earliest . 

Retirement Age; and 

( 4) Died on the day after the Earliest Retirement Age. 

( c) For purposes of Section 6.2(b ), a Surviving Spouse will begin to receive payments 

at the Earliest Retirement Age unless such Surviving Spouse elects a later date. 

(d) For purposes of Section 6.2, the Joint and 50% Survivor Annuity will be the 

Actuarial Equivalent of the Normal Form ofbenefit payment. 

6.3 Qualified Optional Survivor Annuity ("QOSA" ). 

(a) A Participant who is eligible for the Qualified Joint and One-Half Survivor 

Annuity and who retires on or after January 1, 2009 may elect to receive his 

28 

ROOFERS42_0149
pension benefit in the fonn of a Qualified Optional Survivor Annuity under the 

Plan. By filing a timely Qualified Election with the Plan, a Participant may 

choose to have benefits paid in the fonn of: 

(1) A Qualified Joint & Two-Thirds (66 2/3%) Survivor Annuity; 

(2) A Qualified Joint & Three-Fourths (75%) Survivor Annuity; 

(3) A Qualified Joint & Full (100%) Survivor Annuity. 

Under each QOSA, a reduced amount shall be paid to the Participant for his 

lifetime and if the Participant predeceases his Spouse, the eligible Spouse shall be 

entitled to receive the applicable percentage of the QOSA (66 2/3%, 75%, or 

100%) chosen based on the reduced lifetime amount payable to the Participant. 

(b) The last payment of a QOSA benefit shall be made as of the first day of the month 

in which the death of the survivor occurs. The general terms and conditions for 

the Surviving Spouse under the Plan shall apply to all QOSA forms of payment. 

(c) All references in this Plan Document to the Qualified Joint and One-Half Survivor 

Annuity, or QJSA, shall now be references to all three of the QOSA forms of 

payment unless otherwise clearly apparent in the context of the Plan Document 

that such reference shall not include QOSA forms of payment. 

6.4 Joint and Survivor Pension "Pop-up." 

The Plan allows for a "pop-up" option under which a Participant selecting any Joint and 

Survivor Annuity form of payment may further elect the feature that if the Spouse should 

predecease the Retiree, then the benefit subsequently payable to the Retiree shall revert back to 

the pension amount that would have been payable had the form of benefit payment originally 

beeri a Life Annuity. This benefit will be the Actuarial Equivalent of the pension that would 

otherwise be payable to the Participant, assuming the Normal Form of payment as described in 

Section 4.1. 

6.5 IRC Section 401(a)(9) Requirements. 

The optional form of a Participant's annuity, as adjusted for Actuarial Equivalence, shall 

be further adjusted (if necessary) to comply with IRC Section 401(a)(9). 

29 

ROOFERS42_0150
The Annuity Forms shall be subject to the following provisions for purposes of 

compliance with IRC Section 40l(a)(9): 

(a) Life Expectancy. The distribution period must be over a life (or lives), or over a 

period certain not longer than a life expectancy ( or joint life and last survivor 

expectancy), or for the Participant and his Designated Beneficiary. For purposes 

hereof: 

(I) Life expectancy and joint and last survivor expectancy are computed by 

use of the expected return multiples in Tables V and VI of Treasury 

Regulations§ 1.72-9. 

(2) Life expectancy or joint and last survivor expectancy shall be determined 

using the attained age of the Participant (or Designated Beneficiary) as of 

the Participant's (or Designated Beneficiary's) birthday in the earlier of: 

(A) the calendar year of the Participant's Annuity Starting Date; or (B) the 

calendar year preceding the Participant's Required Beginning Date. 

(3) The life expectancy (or joint life and last survivor expectancy) for 

purposes of determining the period certain shall be determined without 

recalculation of life expectancy. 

(b) Payments. Once payments have begun over a period certain, the period certain 

may not be lengthened even if the period certain is shorter than the maximum 

permitted. The payments shall be level monthly payments, except with respect to 

a suryivor benefit payment which themselves will be level monthly payments. 

The payments must either be non-increasing or increase only with any percentage 

increase in a specified and generally recognized cost-of-living index or because of 

an increase in benefits under the Plan. 

6.6 Minimum Distribution Requirements. 

The Annuity Forms shall be subject to the following provisions for purposes of 

compliance with the minimum distribution requirements of IRC Section 401(a)(9), including the 

incidental death benefit requirement of Section 401(a)(9)(G). All distributions will be made in 

accordance with IllC Section 401(a)(9) and §§ l.401(a)(9)-2 through 1.401(a)(9)-9. Any Plan 

provisions reflecting IRC Section 401(a)(9) shall override inconsistent distribution options. 

30 

ROOFERS42_0151
ARTICLE VII 

NON-ALIENATION OF BENEFITS 

7.1 Non-Alienation of Benefits. No benefits payable at any time under the Plan shall 

be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or 

encumbrance of any kind and any attempt to do so shall be void. No retirement benefit nor the 

Trust Fund shall in any manner be liable for or subject to the debts or liabilities of any Employee 

or retired Employee entitled to any retirement benefits. If the Employee or retired Employee 

shall attempt to, or shall alienate, sell, transfer, assign, pledge, or otherwise encumber his 

benefits under this Plan or any part thereof, or if by reason of his bankruptcy or other event 

happening at any such time, such benefits would devolve upon anyone else or would not be 

enjoyed by him; or in the event of a legal disability of a retired Employee, or his inability to care 

for his affairs, the Trustees in their discretion may terminate his interest in any such benefit and 

hold or apply it to or for the benefit of such person, his Spouse, children or other dependents, or 

any of them in such manner as the Trustees may deem proper. 

7.2 Qualified Domestic Relations Order. The provisions of Section 7 .1 shall not 

apply with respect to any Qualified Domestic Relations Order. The Trustees shall establish 

reasonable procedures, when necessary, to determine the qualified status of any domestic 

relations order and to administer distributions under such qualified orders. 

31 

ROOFERS42_0152
ARTICLEVIll 

CONTRIBUTIONS 

8.1 General. The purposes of this Fund are to provide pension benefits to eligible 

Employees and/or Spouses and/or named Beneficiaries of the Employees. These benefits are to 

be funded by receipt of contributions from contributing Employers and by the returns on the 

investments of these contributions. 

In order to effectuate the purposes hereof, each Employer shall contribute to the Pension 

Fund the amount required by the Collective Bargaining Agreement between the Union and the 

Employer. The rate of contribution shall at all times be governed by the aforesaid Collective 

Bargaining Agreement or other written agreement then in force and effect. All benefits are 

payable only from the Pension Fund, only to the extent such Fund has sufficient assets. 

8.2 Increases or Decreases in Benefits. If on the basis of an Actuarial Valuation 

made by the Actuary, the Trustees deem that the Employer's payments required under Section 

8 .1 of this Article, and the current Collective Bargaining Agreement are in excess of or fall short 

of the amounts then required to maintain the Plan on a sound actuarial basis including all 

expenses of administration, the Trustees shall have the power to authorize such increases or 

decreases in benefits under the Plan as they determine, with the advice of the Actuary, to be 

sound and feasible as the basis of maintaining the Plan on a sound actuarial basis, or as otherwise 

permitted and/or required by federal law. 

8.3 Reciprocal Contributions. A Participant's work outside the jurisdiction of the 

Fund in employment for which contributions are required to be made to a pension fund of 

another local union, and which contributions are forwarded to the Roofers Local 42 Pension 

Plan, shall be credited under this Plan. Any adjustment to Hours of Service or benefit accrual 

32 

ROOFERS42_0153
necessary to account for a higher or lower hourly contribution rate is at the sole discretion of the 

Board of Trustees. 

33 

ROOFERS42_0154
9.1 

ARTICLE IX 

DISTRIBUTIONS 

General. Any other provisions of the Plan notwithstanding, if the Actuarial 

Equivalent value of a benefit payable to a Participant, Alternate Payee (pursuant to a valid 

QDRO) or of a Pre-retirement Survivor Annuitant does not exceed $1,000 and has never 

exceeded $1,000, the Administrator, in its sole discretion, may cause the entire benefit to be paid 

in a lump-sum taxable payment to such Participant, Alternate Payee or Survivor Annuitant. The 

Actuarial Equivalent value _of any benefit will be determined in accordance with the assumptions 

specified in Section 1.2 of the Plan Document. No lump-sum benefit shall be payable under this 

Plan if the present value of the Participant's non-forfeitable benefit under the Plan exceeds 

$1,000. 

9.2 Direct Rollover of Distributions. With respect to distributions made on or after 

January 1, 1993, notwithstanding any provision of the Plan to the contrary that would otherwise 

limit a Distributee's election under the Plan, a Distributee may elect, at the time and in the 

manner prescribed by the Administrator, to have any portion of an Eligible Rollover Distribution 

paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover 

subject to the following terms and conditions: 

(a) Eligible Rollover Distributions. For purposes of this Article, an "Eligible 

Rollover Distribution" is any distribution of all or any portion of the balance to 

the credit of the Distributee, except that an eligible Rollover Distribution does not 

include: 

(1) Any distribution that is one of a series of substantially equal periodic 

payments (not less frequently than annually) made for the life (or life 

expectancy) of the Distributee or the joint lives ( or joint life expectancies) 

of the Distributee and the Distributee's designated Beneficiary, or for a 

specified period of ten years or more; 

(2) Any distribution to the extent such distribution is required under IRC 

Section 40l(a)(9); 

34 

ROOFERS42_0155
(3) The portion of any distribution that is not includable in gross income 

( determined without regard to the exclusion for net unrealized 

appreciation with respect to Employer securities); or 

(4) any hardship distribution described in IRC Section 401 (k)(2)(B)(i)(IV). 

(b) Eligible Retirement Plan. For purposes of this Article, an "Eligible Retirement 

Plan" is one of the following that accepts the Distributee's Eligible Rollover 

Distribution: 

(1) An individual retirement account described in IRC Section 408(a). For 

distributions made on or after December 31, 2007, an Eligible Retirement 

Plan also includes a Roth IRA; 

(2) An individual retirement annuity described in IRC Section 408(b); 

(3) An annuity plan described in IRC Section 403(a); 

(4) A qualified trust described in IRC Section 40l(a); or 

(5) An annuity contract described in IRC Section 403(b) and an eligible plan 

under IRC Section 457(b) which is maintained by a state, political 

subdivision of a state, or any agency or instrumentality of a state or 

political subdivision of a state and which agrees to separately account for 

amounts transferred into such plan from this Plan. The definition of 

eligible retirement plan shall also apply in the case of a distribution to a 

Surviving Spouse, or to a Spouse or former Spouse who is the Alternate 

Payee under a Qualified Domestic Relation Order, as defined in IRC 

Section 414(p ). 

( c) Distributee. For purposes of this Article, a "Distributee" includes: 

(1) An Employee or former Employee; and 

(2) An Employee's or a former Employee's Surviving Spouse and an 

Employee's or former Employee's Spouse or former Spouse who is the 

Alternate Payee under a Qualified Domestic Relations Order, without 

regard to the interest of the Spouse or former Spouse; and 

(3) Effective January 1, 2010 an Employee or former Employee's non-Spouse 

beneficiary. 

(d) Direct Rollover. For purposes of this Article, a "Direct Rollover" is a payment by 

the Plan to the Eligible Retirement Plan specified by the Distributee. 

35 

ROOFERS42_0156
( e) $200 Minimum Direct Rollover. Notwithstanding anything in this Article to the 

contrary, a Distributee shall not be permitted to elect a Direct Rollover if it is 

reasonable to expect that the total Eligible Rollover Distributions made to the 

Distributee during the taxable year of the Distributee will be less than $200. 

(f) Partial Direct Rollover. If the entire amount of an Eligible Rollover Distribution 

is greater than $500, a Distributee may elect to have a portion of such an Eligible 

Rollover Distribution paid to an Eligible Retirement Plan in a Direct Rollover 

provided that the amount of the Direct Rollover equals at least $500. If a 

Distributee elects such a partial Direct Rollover, the remaining portion of the 

Eligible Rollover Distribution must be paid to the Distributee. 

(g) Multiple Direct Rollovers Not Permitted. A Distributee is not permitted to divide 

an Eligible Rollover Distribution into separate distributions to be paid to two or 

more Eligible Retirement Plans in Direct Rollovers. A Distributee must elect that 

the Eligible Rollover Distribution or portion thereof be distributed in a Direct 

Rollover payable to a single Eligible Retirement Plan selected by the Distributee. 

(h) Elections for Installment Payments. If distribution is made to a Distributee in a 

series of periodic payments, his election to make or not to make a Direct Rollover 

with respect to one payment in a series of payments shall apply to all subsequent 

payments in the series unless the Distributee makes a subsequent election to 

change his prior election. 

(i) Default Procedures. If, after a reasonable time as defined in Treasury Regulations 

§ 1.402( c )-2T, a Distributee has failed to elect either a Direct Rollover or to have 

his Eligible Rollover Distribution paid to him, distribution shall be made to the 

Distributee in an amount equal to his eligible Rollover Distribution less any 

amount required to be withheld under any applicable income tax withholding 

requirements. 

36 

ROOFERS42_0157
ARTICLEX 

AMENDMENT AND DURATION OF THIS PLAN 

10.1 Amendment of Plan. No part of the corpus or income of the Plan shall be used 

for purposes other than for the exclusive benefit of Participants, Fonner Participants and 

Beneficiaries, and for defraying reasonable expenses of administering the Plan. There shall be 

no reversion of funds to any Employer or Association except as permitted by law and as 

authorized by the Board of Trustees. Otherwise, the Plan may be amended at any time by the 

Board of Trustees. Any amendment maybe given retroactive effect. However, no amendment 

(including a change in the actuarial basis for determining option or early retirement benefits) 

shall be effective to the extent it has the effect of decreasing an Accrued Benefit. However, the 

preceding sentence shall not apply to the extent the reduction in the Accrued Benefit is permitted 

by the Code and/or ERISA. For purposes of this Section, an amendment which has the effect of 

(a) eliminating or reducing an early retirement benefit or a retirement-type subsidy, or (b) 

eliminating an optional form of benefit (with respect to benefits attributable to service before the 

amendment), shall be treated as reducing an Accrued Benefit. In the case of a retirement-type 

subsidy, the preceding sentence shall apply only with respect to a Participant or Former 

Participant who satisfies (either before or after the amendment) the pre-amendment conditions 

for the subsidy. In general, a retirement-type subsidy is a subsidy that continues after retirement, 

but does not include a qualified disability benefit, a medical benefit, a Social Security 

supplement, a death benefit {including life insurance), or a plant shutdown benefit that does not 

continue after retirement age. In addition, no amendment shall have the effect of decreasing a 

Participant's or Former Participant's vested interest determined without regard to such 

amendment as of the later of the date of such amendment is adopted or becomes effective. 

37 

ROOFERS42_0158
If the Plan's vesting schedule is amended, or if the Plan is amended in any way that 

directly or indirectly affects the computation of the non-forfeitable percentage, each affected 

person with at least three Years of Vesting Service may elect, within a reasonable period after 

the adoption of the amendment or change, to have the non-forfeitable percentage computed 

under the Plan without regard to such amendment or change if his or her non-forfeitable 

percentage under the Plan, as amended, is at any time less than the percentage determined 

without regard to such amendment. 

The period during which the election may be made shall commence with the date the 

amendment is adopted or deemed to be made, and shall end on the latest of the following: 

(a) 60 days after the amendment is adopted; 

(b) 60 days after the amendment becomes effective; or 

(c) 60 days after written notice of the amendment is issued by the Board of Trustees. 

An amendment to the Plan shall be evidenced by an instrument in writing signed by a 

majority of the number of the Board of Trustees. 

10.2 IRS Approval. The Trustees intend to obtain approval of the Director of Internal 

Revenue that the Revised Plan and Trust established in connection herewith is a qualified Plan 

and Trust under IRC Sections 401(a) and 501(a), and will entitle any Employer to deduct its 

contributions to the Plan from its income for the purpose of computing Federal Income Tax 

under the provisions ofIRC Section 404. Any amendment or modification of the Plan may be 

made retroactively by the Trustees, if necessary, or appropriate to qualify or maintain the Plan as 

a Plan and Trust meeting the requirements ofIR.C Sections 40l{a), 501(a) and 404. 

10.3 Duration. This Plan shall continue so long as the Agreement and Declaration of 

Trust establishing said Plan shall remain operative. 

38 

ROOFERS42_0159
10.4 Merger of Plan. 

(a) In the case of any merger or consolidation of this Plan and/or the Trust Fund with or 

transfer of the assets or liabilities of the Plan and/or Trust Fund to, any other plan, the terms of 

such merger, consolidation or transfer shall be such that each Employee or other Participant 

would receive (in the event of tennination of this Plan or its successor immediately thereafter) a 

benefit which is no less than he would have received in the event oftennination of this Plan 

immediately before such merger, consolidation or transfer. 

(b) The Trust Fund shall not be merged into, acquired by or become part of any Trust Fund 

other than the Composition Roofers, Local 42, Pension Fund (providing for selection of three 

Trustees by the Greater Cincinnati Roofing Contractors .Association and three Trustees by the 

United Union of Roofers, Waterproofers and Allied Trades, Local 42) unless fifty-one percent 

(51 %) of the combined total of Employees, Participants and Beneficiaries, as defined by BRISA, 

vote in favor of such action. Said vote shall not be considered proper unless written notification 

stating the purpose of such vote and the date, time and location of the vote is mailed to each 

person eligible to vote as stated above not less than ten (10) days prior to such secret ballot vote. 

39 

ROOFERS42_0160
ARTICLE XI 

TERMINATION 

11.1 Termination. This Plan shall be terminated ifno Employers are obligated to 

contribute to the Trust Fund. This Plan may also be tenninated by the unanimous consent of all 

Trustees upon giving reasonable notice of intention to vote on such tennination and the reasons 

therefore to all Trustees, the Unions and the Employers who designate the Employer Trustees. 

11.2 Partial Withdrawal of Employers. The withdrawal or elimination of some 

Employers and/or groups of Employees from the Plan shall not constitute a termination of this 

Plan, which shall continue to exist for the benefit of other Employees remaining in or 

subsequently brought under said continuing Plan. 

11.3 Allocation on Termination. Upon termination of the Plan, the rights of all 

Employees to benefits accrued to the date of such termination shall be non-forfeitable, and upon 

occurrence of such event, the assets of the Fund shall be allocated among the Employees and 

their Beneficiaries in accordance with Section 4044(a) of BRISA, and administered and 

distributed·at such time or times as is determined by the Trustees. 

11.4 Partial Termination. Upon termination of the Plan by the Trustees with respect 

to a group of Employees, the Trustees shall allocate and segregate for the benefit of the 

Employees then or theretofore employed by an Employer or Employers with respect to which the 

Plan is being terminated the proportionate interest of such Employees in the Trust Fund. The 

funds so allocated and segregated shall be non-forfeitable and shall be distributed to such 

Employees. 

40 

ROOFERS42_0161
ARTICLE XII 

THE PENSION TRUST AND FUNDING 

12.1 Trust Agreement. A Pension Trust Agreement has been executed between the 

Employers and the Union and subscribed and accepted by the Trustees under the terms of which 

a Pension Fund shall be established to receive and hold contributions payable by the Employers 

under this Plan, interest and other income and to pay the benefits provided under said Plan and 

the expense of operation of the Plan. 

12.2 Non-Reversion of Contributions. The Employers shall have no right, title or 

interest in the contributions made by them or any of them to the Pension Fund and no part of the 

Pension Fund shall revert to the Employers or to any of them except to the extent permitted or 

required by law. 

The benefits of this Plan shall be only such as can be provided by the assets of the 

Pension Fund and there shall be no liability or obligations hereunder on the part of the 

Employers to make any further contributions to the Pension Fund in the event of termination of 

this Plan. 

41 

ROOFERS42_0162
ARTICLE XIII 

ADMINISTRATION 

13.1 Administration by Trustees. This Plan shall be administered by the Trustees of 

the Trust Fund in accordance with the Agreement and Declaration of Trust and any further 

amendments thereto. 

13.2. Application for Benefits. 

(a) Upon becoming eligible for benefits under this Plan, an Employee or his 

Beneficiary, as the case may be, shall file an application for benefits upon a form 

prescribed by the Trustees and shall :furnish such evidence and information which 

may be required by the Trustees or persons designated by them to establish the 

Employee's or Beneficiary's rights to benefits under this Plan. 

(b) Said application shall be presented to the Trustees for a determination of whether 

applicant is eligible for benefits hereunder. If the application is approved, the 

Trustees shall authorize the payment of the benefit. If the application is rejected, 

the applicant shall be promptly notified accordingly, and be advised of his rights 

to appeal at a hearing as provided below. 

(c) Pursuant to procedures established by the Trustees and consistent with Section 

503 of BRISA and the applicable regulations contained at 29 CFR Part 2560, 

which are incorporated by reference herein, each Participant or Beneficiary whose 

claim for benefits under the Plan has been denied shall receive written notice of 

denial. The notice will include: (1) the specific reason for the denial; (2) the 

sections of the Plan and/or SPD upon which the denial was based; (3) a 

description of any additional information which the Participant or Beneficiary 

may need to provide to the administrator and an explanation as to why such 

information is necessary; (4) a copy of the Plan's appeal procedures; (5) notice of 

any internal rule or guideline used in making the decision (if applicable); and ( 6) a 

notice of the Participant or Beneficiary's right to a written explanation of any 

exclusion which affects his claim. 

(d) Any Participant or Beneficiary who chooses to appeal an adverse benefit 

determination must file a written notice of appeal with the administrator no later 

than 180 days from the date the written notice of the adverse benefit 

determination is received. The appeal must include the Participant's name, 

current address and decision being appealed. The Board shall consider any 

comments, documents or other evidence the Participant/Beneficiary may submit 

in support of the appeal. The administrator shall also supply (on request) any 

documents or material to the Participant which may be relevant to the appeal 

There will be no charge to the Participant or Beneficiary for the cost of copying 

such material. 

42 

ROOFERS42_0163
13.3 Decision on Appeal. All appeals will be considered within the time periods set 

forth in 29 CFR Part 2560. Participants or beneficiaries will be provided a written notice of the 

decision of the Board within 5 days of the meeting at which the appeal was considered. In the 

event the appeal is denied, the written notice shall include the following: (a) the reasons for the 

denial; (b) the portion of the Plan and/or SPD on which the denial is based; (c) a statement 

advising the Participant if any internal rule or guideline was followed in making the decision and 

ifso, the Participant's right to a copy of such rule; (d) a notice of the Participant's right to a 

written explanation of any exclusion which affects the claim; and (e) a notice of the Participant's 

right to file suit under Section 502(a) of BRISA. 

13.4 Official Plan Records. The Trustees shall rely upon the records of the Plan in 

determining eligibility for benefits· and such records are presumed to be correct. In the event of a 

discrepancy between the records maintained by the Plan and a claim asserted by a Participant, an 

Employee or a retiree, the Trustees shall rely upon the Plan records unless shown to their 

satisfaction that the additional records are valid and should be relied upon. The burden of 

proving a claim for benefits which differs from the records established and maintained by the 

Plan shall be upon the Participant, Employee, retiree, or other person or entity. 

13.5 Rulin2 No Precedent. No ruling or decision of the Trustees in one case shall 

create a basis for a retroactive adjustment in any previously decided case nor constitute a 

precedent, except as may be required by law. 

13.6 Adiustment of Benefits. In the event that incorrect information is furnished to 

the Trustees or in the event of error by the Trustees or their delegates in determining eligibility or 

benefits, the Trustees shall have the power to make such adjustments in the Employee's benefits 

which they may deem appropriate. Such adjustments include the power to recoup overpayments 

43 

ROOFERS42_0164
if needed by any method agreed to by the Trustees. If an Employee deliberately supplies false 

information in order to acquire benefits, the Trustees may impose any penalty they deem 

appropriate. 

13. 7 Three Year Limitation Period. 

No action at law or in equity shall be brought by any Participant or Beneficiary after the 

expiration of three (3) years from the date the Board provides written notice of a decision on an 

appeal of an adverse benefit determination. Failure to bring an action within this three (3) year 

period shall forever bar such action. 

44 

ROOFERS42_0165
ARTICLE XIV 

MISCELLANEOUS 

14.1 Interest in the Plan. No Employee, group of Employees or other persons shall 

have any interest in, or right to, any part of the principal or earnings of the Pension Fund, or in 

the assets of the Pension Fund, but the same shall be administered solely in accordance with the 

provisions of the Plan and the Agreement and Declaration of Trust. 

14.2 Limitation on Employment. Nothing contained in this Plan shall be construed 

as a contract of employment between any Employer and any Employee, or as granting the right 

of any Employee to be continued in the employment of any Employer, or as a limitation on the 

right of the Employer to terminate the employment of an Employee at any time. An Employer's 

right to discipline or discharge Employees shall not be affected by reason of existence of this 

Plan, or by reason of any of the provisions of this Plan. No matter respecting the provisions of 

the Plan shall be subject to the grievance procedure established in the Collective Bargaining 

Agreement. 

14.3 Participant Incapacity. In the event that it is determined that a Participant is 

unable to manage his affairs because of illness, accident, or incapacity, either mental or physical, 

any payment due may be applied, in the discretion of the Trustees, to the maintenance and 

support of such Participant (unless and until proper claim shall be made therefore by a legally 

appointed guardian, committee or legal representatives). 

14.4 Unclaimed Benefits/Missing Participants. If any benefit payment made by the 

Trustees out of the Pension Fund be unclaimed for a period of three (3) years, it shall revert to 

and become a part of said Pension Fund, but must be reinstated if a claim for benefits is made by 

a Participant or Beneficiaries for the forfeited amount. 

45 

ROOFERS42_0166
14.5 Former Plan. No Participant, active or retired, or Beneficiary, or any 

representative of a deceased Participant may claim a greater benefit than was previously 

detennined under the Plan provisions in effect at the time of such determination. 

14.6 Applicable Law. To the extent not preempted by federal law, the Plan and all 

rights hereunder shall be governed, construed and administered in accordance with the laws of 

the State of Ohio. 

14.7 Veteran's Pension Rights. Nothing in this Plan shall be interpreted so as to deny 

a veteran of the Armed Forces any rights granted under federal law. The right of a veteran to the 

restoration of pension benefits upon his or her reemployment with a contributing Employer shall 

be governed by the rules and regulations found in 38 U.S.C. §4301, et seq., and IRC Section 

414(u). 

14.8 Retroactive Annuity Startin2 Date. To the extent the terms of the Plan permit a 

participant to affirmatively select an Annuity Starting Date that occurs sometime prior to the date 

the Plan provides the Participant is provided with a Qualified Joint and Survivor Annuity notice 

(Retroactive Annuity Starting Date - "RASD"), such payments shall be governed by the rules set 

forth in 29 CFR 1.417(3)-1 which are incorporated herein by reference. Benefits will be 

calculated as of the RASD using the mortality and interest assumptions in effect on that date. 

The benefits must satisfy the IRC Section 415 limits and IRC Section 417(e)(3) Present Value 

assumptions (if applicable) in effect on the RASD. Participants shall receive make-up payments 

including an adjustment for interest from the RASD (based on the Applicable Interest Rate) to 

the date payments are actually made. Spousal consent is required if the survivor benefit payable 

to the Spouse based on the RASD is less than the amount of the minimum required survivor 

benefit that would be payable if the actual payment date were used as the Annuity Starting Date. 

46 

ROOFERS42_0167
14.9 Overpayments. No Participant or dependent shall be entitled to receive a benefit 

in excess of that which is provided for by the terms of the Plan. In the event a Participant and/or 

dependent are overpai~ by the Plan due to any administrative, mathematical or other error, the 

Board of Trustees shall have the right and obligation to recoup such overpayments through an 

actuarial reduction of future benefit payments, the offset of future benefit payments or any other 

Trustee-approved procedure. Any Participant or dependent, upon being notified of the reduction 

or offset, shall have the right and obligation to appeal the decision to the Board of Trustees prior 

to commencing any other legal or administrative action. Under no circumstances will an 

overpayment become or be considered a vested benefit. 

14.10 Miscellaneous. The use of the masculine shall include feminine where applicable, 

and the use or the singular shall include the plural where applicable. The words "and" and "or" 

are employed in the conjunctive and disjunctive sense, respectively, except where a contrary 

intention clearly appears from the context. 

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ARTICLE XV - EMPLOYER WITHDRAWAL LIABILITY 

15.1 Determination by Trustees. 

The Trustees shall determine: 

(A) Whether an Employer has Withdrawn from the Plan; 

(B) The date of such Withdrawal; 

(C) The Employer's Withdrawal Liability; 

(D) The schedule of payments of the Employer's Withdrawal Liability; and 

(E) Any other decisions necessary to the establishment and calculation of liability 

urider this Article. 

The Trustees have the sole discretion and full authority to make a determination and shall 

promptly notify the Employer of its determination, including the amount of the Employer's 

withdrawal liability payments. The notices shall specify the schedule of the payments and 

demand payment. The notice herein provided shall be sent to the Employer by certified, 

return-receipt mail or hand delivery. 

15.2 Employer's Right to Information. 

(A) Within ninety (90) days after the Employer receives the notice required by Section 

15.1, the Employer, in the event it wishes to take any action described in subparagraphs {A) 

through (C), shall provide in written form by certified, return-receipt mail or hand delivered 

to the Trustees: 

(1) Ask the Trustees to review any specific matter relating to the 

determination of the Employer's liability and the schedule of payments; 

(2) Identify any inaccuracy in the determination of the amount of the 

Unfunded Vested Benefits allocable to the Employer; and 

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(3) Furnish any additional relevant information to the Trustees. 

(B) If an Employer fails to take any of the actions set forth in Section 15.2(A) in the time 

provided therein, it shall be deemed to have agreed to the determinations of the Trustees 

referred to in Section 15.1. 

(C) The Trustees shall review as soon as practical any matter raised by an Employer 

pursuant to Section 15.2(A). The Trustees shall send a written reply to the Employer by 

certified, return-receipt or band delivery, setting forth the decision of the Trustees, the basis 

for the decision, and the reason for any change in the determination of the Employer's 

liability or schedule of liability payments. 

15.3 Trustees' Consultation with Actuary and Other Professionals. 

In making the determination described herein, the Trustees may consult with the Plan's 

Actuary, Attorney, and Auditor, administrative personnel or other Plan professionals. 

15.4 Annual Right to Notice of Potential Withdrawal Liability. 

No more than once per calendar year, any Employer may make a written request for a notice of: 

the estimated amount of what the Employer's withdrawal liability would be if the Employer 

withdrew on the last day of the Plan Year preceding the date of the request if available, otherwise 

the estimate will be as of the last day of the preceding Plan Year; and an explanation of how the 

estimated amount was determined including (a) the actuarial assumptions and methods used to 

detennine the value of Plan liabilities and assets, (b) the data regarding Employer contributions, 

unfunded vested benefits, and annual changes in the Plan's unfunded vested benefits, and (c) the 

application of any relevant limits on the estimated withdrawal liability. The reasonable costs 

incurred by the Plan in responding to such annual requests shall be paid by the Employer, but in 

no case shall the costs exceed the limits established by the Secretary of Labor. No fees shall be 

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assessed when an Employer requests only summary information on its proportionate share of 

withdrawal liability, provided such information is contained in an Employer withdrawal liability 

report prepared by the Plan's actuary and previously presented to the Board of Trustees. 

15.5 Method of Calculation for Withdrawal Liability. 

The Plan shall utilize the ''rolling-five" method for calculating the amount of unfunded vested 

benefits allocated to a withdrawing Employer as described in Section 421 l(c)(3) ofERISA. 

(A) The amount of an Employer's unfunded vested benefits upon withdrawal shall be 

the product of: 

(1) The Plan's unfunded vested benefits as of the end of the Plan Year proceeding 

the Plan Year in which the Employer withdraws, less the value as of the end of 

such Plan Year of all outstanding claims for withdrawal liability which can 

reasonably be expected to be collected from Employers withdrawing before such 

Plan Years, multiplied by 

(2) The :fraction of: 

(a) the total amount required to be contributed by the Employer under 

the Plan for the last five Plan Years ending before the withdrawal, 

divided by 

(b) the total amount contributed under the Plan by all Employers for the 

last five Plan Years ending before the withdrawal, increased by any 

Employer contributions owed with respect to earlier periods which 

were collected in those Plan Years, and decreased by any amount 

contributed to the Plan during those Plan Years by Employers who 

withdrew from the Plan under this section during those Plan Years. 

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15.6 Complete Withdrawal. 

A complete withdrawal occurs when: 

(A) An Employer, including those who have performed work on a temporary or 

project-by-project basis, ceases to have an obligation to contribute under the Plan and the 

Employer: 

(1) Continues to perform work in the jurisdiction of the Plan of the type for which 

contributions were previously required, or 

(2) Returns to work in the jurisdiction within five (5) years after the date on which 

the obligation to contribute under the Plan ceases and does not renew the 

obligation at the time work resumes. 

15.7 .Partial Withdrawal. 

Under Section 4208(d)(2) ofERISA, there is no partial withdrawal liability within the 

entertainment industry except under the conditions and to the extent provided by the Pension 

Benefit Guarantee Corporation. 

15.8 Arbitration. 

A dispute between an Employer and the Plan concerning a determination of withdrawal liability 

shall be submitted to arbitration as provided in Section 4221 ofERISA, to be conducted in 

accordance with the rules adopted by the Trustees not inconsistent with regulations of the 

Pension Benefit Guarantee Corporation. No issue concerning the computation of withdrawal 

liability may be submitted for arbitration unless the matter has been reviewed by the Plan in 

accordance with Section 4219(b)(2) ofERISA and any Plan rules adopted thereunder. 

15.9 Employer Withdrawal Liability Procedures. 

The Board of Trustees may, at its discretion, adopt Employer Withdrawal Liability 

Procedures, which, upon adoption, shall detail additional or discretionary operating procedures as to 

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employer withdrawal liability under the Plan. Such proc.edures may be amended from time to time 

by the Board of Trustees and shall be available upon request by contributing employers. 

IN WITNESS WHEREOF, the Trustees have set their hands and adopted this Restated and 

Amended Plan document effective the 1st day of January, 2015. 

UNION TRUSTEES :zc~ ----- Robert Stockelman TomDalton 

Brandon Burke q~ 

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