DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.

August 3, 2017

Board of Trustees

New York State Teamsters Conference Pension and Retirement Fund
c/o Ken Stilwell

P.O. Box 4928

Syracuse, NY 13221

Re: New York State Teamsters Conference Pension and Retirement Fund (Fund) Application
for Reduction of Benefits

Dear Mr. Stilwell:

The application submitted by the Board of Trustees of the Fund to the Secretary of the Treasury
(Treasury) on May 15, 2017, to reduce benefits pursuant to the Multiemployer Pension Reform
Act of 2014 (MPRA) has been reviewed to determine whether it satisfies the requirements
established by Congress under MPRA. In consultation with the Secretary of Labor (DOL) and
the Pension Benefit Guaranty Corporation (PBGC), Treasury has determined that the Fund is
eligible to reduce benefits under MPRA and that your application satisfies the requirements of
subparagraphs (C), (D), (E), and (F) of section 432(e)(9) of the Internal Revenue Code (Code),
as added by MPRA.

This notification is not a final authorization to implement the benefit reduction described in your
application. Pursuant to Code section 432(e)(9)(H), no reduction of benefits can take effect
before a vote of the participants and beneficiaries of the Fund with respect to the proposed
reduction. MPRA requires Treasury, in consultation with DOL and PBGC, to administer this
vote. Accordingly, Treasury, in consultation with DOL and PBGC, will administer a vote of the
participants and beneficiaries of the Fund.'

‘In certain cases, MPRA requires Treasury to permit the implementation of a proposed benefit reduction (or a
modification of the proposed benefit reduction) even though a majority of the plan’s eligible participants and
beneficiaries vote to reject the proposed reduction. This special provision of MPRA applies only in the case of a
plan that is “systemically important.” A systemically important plan is a plan with respect to which the PBGC
projects the present value of projected financial assistance payments to exceed $ 1,000,000,000 if the proposed
benefit reduction is not implemented. This amount is adjusted for inflation. Section 432(e)(9)(H)(v)(III).. The
amount for 2017 is $ 1,012,000,000, IRS Notice 2016-62. Treasury has not determined whether the Fund is
systemically important.



Board of Trustees

New York State Teamsters Conference Pension and Retirement Fund
August 3, 2017

Page 2

Pursuant to the regulations under MPRA, the Trustees must submit the following to Treasury or
its designated vendor no later than August 9, 2017:

e a voting roster that identifies eligible voters in accordance with the regulations under
MPRA, including all Fund participants (active participants, deferred vested participants,
and retirees) and beneficiaries of deceased participants;

e Fund information (such as participant identification codes used by the Fund) to enable
Treasury to verify the identity of each eligible voter;

e mailing addresses for all voters on the roster (or an indication that an address could not be
identified through reasonable efforts);

e current electronic mailing addresses for those voters who also may be contacted
electronically; and

e _ individualized estimates of the effect of the proposed benefit reduction on each
participant and beneficiary in the Fund.”

The Trustees are responsible for making reasonable efforts to identify the mailing addresses for
those eligible voters whose ballot packages are returned as undeliverable (upon notice of such
returns by Treasury).’ Please review the regulations under MPRA for further details regarding
these requirements. If you fail to satisfy the applicable requirements, it may not be possible
to timely administer, and certify the results of, the vote. In that case, it may not be possible
to issue a final authorization permitting implementation of the proposed reduction.

Please contact Treasury staff if you have any questions regarding this information.

Sincerely,

lia Neis

Office of Tax Policy

ec: Michael S. Scalzo, Trustee
John A. Bulgaro, Trustee
John F. Ring, Esq.
James T. Kimble, Esq.
Bernard T. King, Esq.
Jonathan M. Cerrito, Esq.

? Treas. Reg. § 1.432(e\(9)-1(h)(2)(iii)(B)(2).

> Treas. Reg. § 1.432(e)(9)-1(h)(2)(iii)(B)(3).

‘ See Treas. Reg. § 1.432(e)(9)-1(a)(4)(iii)(D). (The effective date of a benefit reduction may not precede the date
on which a final authorization to reduce benefits is issued.)