001

CHECKLIST - IS THE SUBMISSION COMPLETE? 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR MID-JERSEY 

TRUCKING INDUSTRY AND LOCAL 701 PENSION FUND 

Response Item Description of item Page number 

number in 

- aoolication 

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

14 authorized representative of the plan sponsor? See section 2.01 of this 

N/A revenue procedure. 

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

1-2 No suspension - calculated as if no other limitations apply • that includes: 

N/A • the suspension's effective date (and its expiration date, if Exhibit 9 

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 orocedure. 

~ 3. Does the application include a penalties-of-perjury statement signed by an 

2, Exhibit 1 authorized trustee on behalf of the board of trustees? See Section 2.03 of 

N/A this revenue procedure. 

-

c~ 4. Does the application include a statement. signed by an authorized trustee 

No 2, Exhibit 2 on behalf of the board of trustees, acknowledging that the application and 

N/A the application's supporting material will be publicly disclosed on the 

Treasury Department's website? See section 2.04 of this revenue 

procedure. 

I~ 5. Does the application include the plan actuary's certification of critical and 

2, Exhibit 3 declining status and the supporting illustrations, including: 

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

insolvency during the relevant period. and 

• separately identifying the available resources (and the market 

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

years? 

See section 3.01 of this revenue procedure. 
002

I~ 6. Does the application include the plan actuary's certification that, taking into 

3, Exhibit4 account the proposed suspension and, if applicable, a proposed partition, 

N/A 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. 

-

~ 7. Does the application include the plan sponsor's determination of projected 3, Exhibit 5, No insolvency that includes the documentation set forth in section 5 of the 

N/A revenue procedure? See section 3.03 of this revenue orocedure. Appendix B 

Wcf 8 Does the application include a demonstration that the limitations on 3-4, Exhibit 6 individual suspensions are satisfied, including a description of each benefit 

N/A 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 guarantee-based 

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. 

wt 9. Does the application include a demonstration that the proposed 4, Exhibit 7 suspension is reasonably estimated to achieve the level necessary to 

N/A 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. 

Yes 10. Does the application include an illustration that the proposed suspension is 

No 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. 

j~ 11. Does the application include a demonstration that the proposed 4, Exhibit 8 suspension is not projected to materially exceed the level necessary to 

N/A 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. 
003

~ 12. Does the application include a demonstration that the proposed 5, Exhibit 9 No suspension is equitably distributed, including: 

N/A • 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. 

~ 13. 

No 

Does the application include a copy of the notices (excluding personally 

identifiable information) that meet the requirements under§ 432(e)(9)(F)? 5-6, Appendix A 

N/A See section 4.05(1) of this revenue orocedure. 

~ 14. Does the application include a description of the efforts that are being 6 No taken to contact participants, beneficiaries in pay status, and alternate 

N/A payees? See section 4.05(2) of this revenue procedure. 

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. 

--

~ 16. Does the application include a list of each employer who has an obligation 6, Exhibit 10 No to contribute under the plan and each employee organization representing 

N/A participants under the plan? See section 4.05(4) of this revenue 

procedure. 

-

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

taken to avoid insolvency? See section 5.01 of this revenue procedure. 6-7, Exhibit 5 

NIA 

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

"No described in § 432(e)(9)(C)(ii), for the past 10 plan years immediately 7, Exhibit 11 

N/A preceding the plan year in which the application is submitted? See section 

5.02 of this revenue procedure. 

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

i:ro- did not take into account - the factors listed in section 5.02 of this revenue 6-10, Exhibit 5 

N/A procedure in the determination that all reasonable measures were taken to 

avoid insolvencv? See section 5.03 of this revenue orocedure. 

~ 20. Does the application describe how the plan sponsor took into account - or 

No did not take into account - in the determination that all reasonable 9 

N/A 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. 
004

-

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

No sponsor took into account including how and why those factors were taken 9-10 

N/A into account? See section 5.04 of this revenue orocedure. 

-

I~ 

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

information regarding the statement in opposition, the individualized 10, Exhibit 12 

NIA estimate, and the voting procedures? See section 6.01 of this revenue 

procedure. 

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

No approval from PBGC of a proposed partition under section 4233 of ERISA? 

(NIA) See section 6.02 of this revenue procedure. 

-

Yes 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-by-plan-year 

projection of the amount of the reduction in benefit payments attributable to 

the partition? See section 6.02 of this revenue procedure. 

-:~ 25. Does the application include: 

No • a description of each of the assumptions used in the projections 1 0. Appendix B 

NIA required under sections 3.01. 3.02, 4.02(1), 4.02(2), and 4.03 of 

this revenue procedure, 

• supporting evidence for the 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. 

~ 26. Does the application describe the plan's experience with certain critical 

assumptions, including a disclosure for each of the 10 plan years 10, Exhibit 11 

NIA 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. 

I~ 27. Does the application include deterministic projections of the sensitivity of 

No the plan's solvency ratio throughout the extended period by taking into 10-11, Exhibit 1 ~ 

NIA 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. 

LVes1 28. Does the plan include deterministic projections for each year in the 

Ne> extended period of: 11, Exhibit 14 

NIA • the value of plan assets, 

• the plan's accrued liability, and 

• the plan's funded percentage? 

See section 6.06 of this revenue procedure. 
005

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~ 29. Does the application include the plan sponsor's representation that, if it 

No receives the Treasury Department's final authorization to suspend and 11, Exhibit 15 

N/A 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. 

~ 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 11 

N/A susoension? See section 6.08. 

~ 31 Does the application include a narrative statement of the reasons the plan 

is in critical and declining status? 11-12 

N/A See section 6.09. 

•CfroJ 32. Does the application include the required plan sponsor identification and 

contact information? See section 7.01 of this revenue procedure. 12 

N/A 

~ 33. Does the application include the required plan identification information? 

No See section 7.02 of this revenue procedure. 12 N/A 

Yes 34. Does the application include the required retiree representative information 

~ (if applicable)? See section 7.03 of this revenue procedure . 

.__.... 

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

See section 7.04 of this revenue procedure. 12-13 

N/A 

~ 

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

No authorized representative who will represent the plan sponsor in 13, Exhibit 16 

NIA connection with the application? See section 7.05 and Appendix C of this 

revenue procedure. 

::;;p 37. Does the application include: 

• the required plan documents 13, Exhibit 17 

N/A • 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 orocedure. 

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

collective bargaining agreements and side agreements? See section 7.07 13, Exhibit 18 

N/A of this revenue procedure. 
006

,,.--..... 

~ 39. Does the application include the required excerpts from the most recently 

No filed Fonn 5500? See section 7.08 of this revenue procedure. 13, Exhibit 19 

NIA 

~ 40. Does the application include the most recently updated rehabilitation plan? See section 7.09 of this revenue procedure. 13, Exhibit 5 

N/A 

w;; 41 Does the application include the two most recent actuarial valuation 

reports? See section 7.10 of this revenue procedure. 13, Exhibit 20 

N/A 

~ 42. Does the application include this checklist, completed and placed on top of 

No the application? See section 7 .11 of this revenue procedure and this 13, Exhibit 20 

N/A Appendix D. 

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

~ application include: 

• cross-references to infonnation 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. 

ERNE T OEHL ROCCO l\lORO'.\GELLO 

Date: June 25, 20L8 
007

MID-JERSEY TRUCKING INDUSTRY AND LOCAL 701 PENSION FUND 

APPLICATION FOR SUSPENSION OF BENEFITS 

SECTION 1. BACKGROUND AND PURPOSE 

Pursuant to Revenue Procedure 2017-43 ("Revenue Procedure") and the Department of the 

Treasury's final regulations issued under section 432(e)(9) of the Internal Revenue Code of 1986 

("Code"), 26 U.S.C. § 432(e)(9), and published in the Federal Register on April 28, 2016, 81 Fed. 

Reg. 25540 (collectively, "Regulations"), the Board of Trustees ("Trustees") of the Mid-Jersey 

Trucking Industry and Local 70 l Pension Fund ("Plan" or "Fund") submits this Application, and 

the accompanying Exhibits and Appendices, to the Secretary of the Treasury for approval of a 

suspension of benefits. 

Section 432(e)(9)(G) of the Code provides that the Secretary of the Treasury shall approve an 

application for approval of a suspension of benefits upon finding that the Plan is eligible for the 

benefit suspension and has satisfied the criteria set forth in subparagraphs (C), (D), (E) and (F) of 

section 432(e)(9) of the Code. As set forth below, the Plan is eligible to suspend benefits and has 

satisfied each of the enumerated criteria. Therefore, the Trustees respectfully request that the 

Secretary approve this Application to suspend benefits. 

SECTION 2. APPLICATION PROCEDURES 

.01 Plan sponsor submission. 

The Trustees, as Plan Sponsor, submit this Application for approval of a proposed benefit 

suspension under Code section 432(e)(9). This Application is signed and dated by the Union and 

Employer Co-Chair Trustees, who are both authorized to sign and are current members of the 

Board of Trustees . 

. 02 Terms of proposed benefit suspension. 

I) Effective Date 

The effective date of the proposed benefit suspension is April 1, 2019. 

2) Expiration Date 

The proposed benefit suspension will not expire by its own terms. 

3) Different Treatment of Participants and Beneficiaries 

The proposed benefit suspension provides for different treatment for Active Participants and NonActive Participants. See Treasury Regulation l.432(e)(9)-l(d)(6)(ii)(B)(10). Active Participants 

for this purpose are those Plan participants: (1) who were not in pay status as of January 1, 2018, 

(2) who earned at least 1 Pension Credit during the 2017 calendar year, and (3) whose last 

Contributing Employer had not withdrawn from the Fund as of December 31, 2017. All other 

participants and beneficiaries are considered Non-Active Participants. 
008

The Trustees have identified 5 different groups of Active Participants and 5 different groups of 

Non-Active Participants, based on Treasury Regulations 1.432(e)(9)-l(d)(6)(iv) and (v), to ensure 

that the suspensions are equitably allocated. These 10 groups are listed in Exhibit 9. Active 

Participants hired after June 30, 2009, when benefit accrual levels were reduced by 50% by the 

Trustees, will have no benefit suspension. All other Active Participants (Group 10) will experience 

benefit suspensions because the Trustees believe that benefit levels before July 2009 were too high 

and, therefore, Active Participants hired before then should incur a benefit suspension. 

Active Participants: The proposed benefit suspension for Active Participants will be 

calculated as follows: 

(l) take the difference between (a) the monthly accrued benefit earned through December 31, 

2017, and (b) Pension Credits earned through December 31, 2017 times $17.50; and 

(2) apply the necessary adjustments for early commencement and payment forms. 

(3) The proposed benefit suspension is subject to the limitations described in Code sections 

432(e)(9)(D)(i), (ii) and (iii). 

Non-Active Participants: The proposed benefit suspension for Non-Active Participants 

will be calculated as follows: 

(1) take the difference between (a) the monthly benefit payable at normal retirement age, and (b) 

Pension Credits earned by the participant times $12.75; and 

(2) apply the necessary adjustments for early or delayed commencement, payment forms and 

vesting percentage. 

(3) The proposed benefit suspension is subject to the limitations described in Code Sections 

432(e)(9)(D)(i), (ii) and (iii) . 

. 03 Penalties of perjury statement. 

Please refer to Exhibit 1 . 

. 04 Public disclosure statement. 

Please refer to Exhibit 2. 

SECTION 3. DEMONSTRATION THAT PLAN IS ELIGIBLE FOR SUSPENSION 

.0 l Plan actuary's certification of critical and declining status. 

The Plan actuary certified the Plan to be in critical and declining status as defined in Code section 

432(b)(6) for the plan year commencing June 1, 2017. Please see Exhibit 3 for a copy of the 

actuarial certification and the supporting documents. The supporting documentation for the 

certification includes a plan-year-by-plan-year projection of the Plan's available resources and the 

benefits that are due under the Plan, demonstrating that the Plan is projected to become insolvent 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

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Page2 
009

during the plan year commencing June I, 2029. The plan-year-by-plan-year projection separately 

identifies the market value of assets as of the beginning and end of each plan year beginning June 

l, 2017 through the insolvency year, and the following cash flow items for those years: (l) 

contributions; (2) withdrawal liability payments; (3) benefit payments; ( 4) administrative 

expenses; and (5) net investment returns. Please refer to Appendix B for a complete list of 

actuarial assumptions used for the projections . 

. 02 Plan actuary's certification that the plan is projected to avoid insolvency. 

Please see Exhibit 4 for the Plan actuary's certification that the Plan is projected to avoid 

insolvency taking into account the proposed benefit suspension, and assuming that the proposed 

benefit suspension continues indefinitely. The supporting documentation includes a plan-year-byplan-year projection of the available resources and the benefits that are due under the Plan 

demonstrating the avoidance of insolvency of the Plan over the extended period. The plan-yearby-plan-year projection separately identifies the market value of assets as of the beginning and end 

of the initial period and of each subsequent plan year in the extended period and the following cash 

flow items for those years: (I) contributions; (2) withdrawal liability payments; (3) benefit 

payments; (4) administrative expenses; and (5) net investment returns. The initial period begins 

April 1, 2018. Please refer to Appendix B for a complete list of actuarial assumptions used for 

the projections . 

. 03 Plan sponsor's determination of projected insolvency. 

The Trustees determined that, in accordance with section 432(e)(9)(C)(ii) of the Code and after a 

review of all available information and possible Plan changes, the Plan is projected to become 

insolvent unless benefits are suspended, even though all reasonable measures to avoid insolvency 

have been taken. The reasonable measures taken to avoid insolvency are set forth in the Plan's 

Rehabilitation Plan, Exhibit 5. 

The Trustees have included additional documentation and information in Section 5 of this 

Application illustrating their determination of projected insolvency and the reasonable measures 

taken into account in making the determination that the proposed suspensions are necessary to 

avoid insolvency. 

SECTION 4. DEMONSTRATION THAT THE PROPOSED SUSPENSION SATISFIES 

THE STATUTORY REQUIREMENTS 

.01 Demonstration that limitations on individual suspensions are satisfied. 

Please refer to Exhibit 6 for a demonstration of how the proposed suspension satisfies the 

limitations described in sections 432(e)(9)(D)(i), (ii) and (iii) of the Code as required under the 

Revenue Procedure. Exhibit 6 includes: 

1) A sample calculation applying the guarantee-based limitation under section 432(e)(9)(D)(i) of 

the Code for an individual in each category or group identified in the Revenue Procedure. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 3 
010

2) A sample calculation applying the disability-based limitation under section 432(e)(9)(D)(iii) of 

the Code for an individual in each category or group identified in accordance with the Revenue 

Procedure. 

3) A sample calculation applying the age-based limitation under section 432(e)(9)(D)(ii) of the 

Code for an individual in each category or group identified in accordance with the Revenue 

Procedure . 

. 02 Demonstration that the proposed suspension is reasonably estimated to enable the plan to 

avoid insolvency. 

Please refer to Exhibit 7 for a demonstration that, in accordance with section 432(e)(9)(D)(iv) of 

the Code, the proposed benefit suspension is reasonably estimated to enable the Plan to avoid 

insolvency. Exhibit 7 includes: 

1) An illustration, prepared on a deterministic basis, showing that: 

(a) For each plan year during the extended period, the plan's solvency ratio, i.e., the ratio of 

the Plan's available resources to the scheduled benefit payments under the Plan for the 

plan year, is projected to be at least 1.0. 

(b) The Plan's projected funding percentage at the end of the extended period is greater than 

100 percent. 

2) Stochastic projections are neither required nor provided. 

3) Information on the actuarial assumptions used for the illustrations is provided in Appendix 

B . 

. 03 Demonstration that the proposed suspension is reasonably estimated to not materially 

exceed the level necessary to avoid insolvency. 

Please refer to Exhibit 8 for a demonstration that, in accordance with section 432(e)(9)(D)(iv) of 

the Code, the proposed benefit suspension is reasonably estimated to not materially exceed the 

level necessary to enable the Plan to avoid insolvency. Please refer to Appendix B for a complete 

list of actuarial assumptions. The demonstration in Exhibit 8 includes an illustration, prepared 

on a deterministic basis, of the Plan's available resources and solvency ratio as described in 

section 4.02(1) of the Revenue Procedure showing the proposed suspension would not reasonably 

be estimated 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: 

I) 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 . 

. 04 Demonstration that the proposed benefit suspension is distributed eguitably. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page4 
011

Please refer to Exhibit 9 for a demonstration that, in accordance with section 432(e)(9)(D)(vi) of 

the Code, the proposed benefit suspension is distributed in an equitable manner across the 

participant and beneficiary population. 

1) Exhibit 9 includes the following information: 

(a) The number of participants, beneficiaries, and alternate payees; the average monthly 

benefit before suspension; the average monthly benefit after the suspension ( determined 

taking into account the individual limitations); and the aggregate present value of the 

reduction in benefits for all individuals. 

(b) A demonstration of the distribution of the benefit suspension, expressed as a count of 

individuals whose benefits are not reduced, and a count of individuals whose benefits are 

reduced by a percentage that falls within a series of ranges of I 0%. 

2) Since the proposed suspension provides for different treatment for different categories ( other 

than as a result of application of the individual limitations), the following information is 

included in Exhibit 9: 

(a) The information described in Sections 4.04(1)(a) and (b) of the Revenue Procedure 2017-

43 for Active Participants and Non-Active Participants. 

(b) The factors the Trustees considered in designing the proposed benefit suspensions to be 

distributed in an equitable manner across the participant and beneficiary population. 

(c) Why different treatment of groups results from a reasonable application of the relevant 

factors . 

. 05 Notice. 

1) Individual Notices. 

Please refer to Appendix A for a copy of the notice sent to employers that have an obligation to 

contribute to the Plan and to the employee organization representing participants under the Plan. 

See Appendix A for each type of actual notice that will be given to each participant, beneficiary 

and alternate payee under the Plan. The Plan has included the following six (6) sample actual 

notices. 

1. Non-Active Participant, Beneficiary, Alternate Payee in pay status subject to suspensions. 

2. Active Participant, hasn't reached Normal Retirement Date, not in pay status, and subject to 

suspensions. 

3. Non-Active Participant, hasn't reached Normal Retirement Date, not in pay status, and subject 

to suspensions. 

4. Active Participant, reached Normal Retirement Date, not in pay status, and subject to 

suspensions. 

5. Non-Active Participant, reached Normal Retirement Date, not in pay status, and subject to 

suspensions. 

6. Any Participant not subject to a benefit suspension. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

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Page 5 
012

2) Efforts made to contact Participants, Beneficiaries and Alternate Payees. 

The Trustees will make all reasonable efforts to contact all participants, beneficiaries of deceased 

participants, and alternate payees of the Plan (regardless of whether their benefits are proposed to 

be suspended) pursuant to the Regulations and in satisfaction of their fiduciary duties under 

ERISA. Specifically, the Trustees will provide notice to the last known address of the participant, 

beneficiary or alternate payee on file with the Plan, using the same address the Trustees used to 

distribute the Plan's most recent annual funding notice. If the notice is returned as undeliverable, 

the Trustees will contact the local union representing Plan participants in an attempt to locate those 

missing individuals for whom the notice was returned as undeliverable. Further, if still necessary 

to locate missing individuals, the Trustees will request contact information from the plan 

administrators of any other employee benefit plans that the Trustees reasonably believe may have 

information useful for locating the missing individuals. Lastly, the Trustees will then use an 

internet search tool, a credit reporting agency and a commercial service to search for those 

remaining individuals for whom they were not able to otherwise obtain updated information. The 

Trustees will mail a notice to individuals within five (5) days of locating them. 

3) Electronic delivery of notices will not be used. 

4) Please refer to Exhibit 10 for a list of: 

(a) Each contributing employer as of the date of this Application that has an obligation to 

contribute to the Plan within the meaning of section 4212(a) ofERISA. 

(b) Each employee organization representing participants under the Plan. 

SECTION 5. PLAN SPONSOR DETERMINATION RELATING TO REASONABLE 

MEASURES TAKEN TO AVOID INSOLVENCY 

.01 Measures taken to avoid insolvency 

The Fund's Board of Trustees has taken the following measures to avoid insolvency over the 10-

year period from June 1, 2007 to May 31, 2017: 

1) In 2009, the Board amended the Plan to reduce future accruals by 50% for Pension Credits 

earned after June 30, 2009 for employees of all employers. 

2) In 2009, the Board amended the Plan to freeze Pension Credits for employees of YRC 

Worldwide Inc. for service between September 1, 2009 and May 31, 2011, and in August 2011, 

the Board amended the Plan to limit the number of Pension Credits for employees of YRC 

Worldwide Inc. for service earned on and after June 1, 2011. 

3) In March 2012, the Board amended the Plan to limit lump-sum payments of a participant's 

accrued benefit to the portion of the benefit earned before April 1, 2012. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

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4) In November, 2017, the Board amended the Plan to provide that beginning in 2018, benefits 

subject to the Code Section 41 S(b) limitations will not be adjusted on an annual basis as the 

limitations increase. 

5) On April 9, 2018, the Trustees adopted a Rehabilitation Plan that eliminated all adjustable 

benefits for Non-Active Participants (See Exhibit 5 for a copy of the Rehabilitation Plan) . 

. 02 Plan factors 

1) For the 10 plan years immediately preceding the plan year in which the application is 

submitted, the following information is submitted: 

(a) Contribution levels. 

The information concerning contribution levels for the past 10 years is included in Exhibit 

11. 

(b) Levels of benefit accruals, including any prior reductions in the rate of benefit accruals. 

The information concerning levels of benefit accruals for the past 10 years is included in 

the last three pages of the actuarial valuation reports contained in Exhibit 20. 

(c) Prior reductions, if any, of adjustable benefits under section 432(e)(8). 

Please see Exhibit 5, the Fund's Rehabilitation Plan adopted on April 9, 2018. 

(d) There have been no prior suspension of benefits under section 432(e)(9). 

(e) The measures undertaken by the Trustees to retain or attract contributing employers. The 

Rehabilitation Plan (Exhibit 5) was structured with an eye towards retaining current 

contributing employers by not asking for contribution increases. It was feared that any 

amount of increased contributions under the Rehabilitation Plan would be more than offset 

by future contributions not made by withdrawing employers who cannot or will not support 

another contribution increase to the Plan. The union bargaining agents have tried to bargain 

new employers into the Plan, but have met stiff resistance from prospective employers 

since the 2008 market downturn. 

2) The impact on the Plan's solvency of the subsidies and ancillary benefits, if any, available to 

active participants. The Plan actuary has determined that removing the subsidies and ancillary 

benefits available to active participants would have an immaterial effect on the solvency of the 

Fund. For a more detailed analysis of the potential cost impact, please see Section III C of the 

Rehabilitation Plan. In addition, the Trustees have determined that if these benefits were to be 

made unavailable to active participants, this action could cause a rush to retire by those eligible 

to immediately retire, resulting in an increase in the liabilities of the Plan as compared to 

continuing to provide the subsidized and ancillary benefits to active participants. Furthermore, 

contributing employers would have a hard time replacing retiring active participants in the 

current market, further straining the employers' and Plan resources. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

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014

3) Compensation levels of active participants relative to employees in the Participants' industry 

generally. 

Wages of active participants in the industry are at a competitive disadvantage because of their 

employers' contribution levels required to fund the Plan. 

4) Competitive and other economic factors facing contributing employers. 

Contributing employers are at a competitive disadvantage because of the declining contribution 

base and unfunded liabilities of the Plan . 

. 03 How Plan factors were taken into account. 

1) Contribution levels 

Contribution levels were taken into account based on the Fund's actual employer contributions 

for the plan year ended May 31, 2018. As shown in Appendix B, total contributions are based 

on hours of covered employment multiplied by the employer's contribution rate. 

2) Benefit accrual levels, including any prior reductions in the rate of benefit accruals. 

The Trustees increased benefit accrual levels in the late 1990s to keep pace with the increase 

in Plan assets as a result of strong investment returns generated by the stock market. However, 

Plan assets declined significantly because of poor stock market returns in 2001 and 2002 and 

the stock market crash of 2008. This caused the Trustees to adopt a 50% decrease in benefit 

accrual levels for covered service after June 30, 2009. 

3) Prior reductions of adjustable benefits under section 432(e)(8). 

Under the Rehabilitation Plan, the Trustees have reduced all adjustable benefits under the Plan 

for Non-Active Participants. The Trustees expect that these reductions will remain in effect for 

the indefinite future. 

4) Prior benefit suspensions under section 432(e)(9). 

The Plan has not implemented prior benefit suspensions under section 432(e)(9). 

5) Measures taken to retain or attract contributing employers. 

The Plan has had difficulty since at least 2009 in attracting new employers, especially because 

of the decline in the Plan's funding level and the shortage of qualified drivers. Therefore, the 

Trustees have focused on taking steps to retain the current contributing employers. For 

example, the Rehabilitation Plan does not include future increases to contributions because of 

the Trustees' concern this would lead to the loss of some current employers. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 8 
015

6) The impact on the Plan's solvency of the subsidies and ancillary benefits, if any, available to 

active participants. 

The Trustees, after consultation with the Fund actuary, have determined that the long-run 

solvency of the Fund is best served by continuing to offer active participants the Plan's current 

level of benefit subsidies and ancillary benefits. See the Fund actuary's cost benefit impact 

analysis in the Rehabilitation Plan. 

7) Compensation levels of active participants relative to employees in the participants' industry 

generally. 

Wages are generally lower for Active Participants compared to wages of employees who do 

not have access to defined benefit plans or other benefit plans. Total compensation packages 

are generally higher for Active Participants compared to employees in the industry who do not 

have availability to an array of employee benefit plans and are generally in line with employees 

in the industry with similar benefit packages. 

8) Competitive and other economic factors facing contributing employers. 

Competitive and other economic factors facing contributing employers in a Teamsters' defined 

benefit plan have been well documented in public forums for the past several years. We will 

provide them upon request if needed. 

9) The impact of benefit and contribution levels on retaining active participants and bargaining 

groups under the Plan. 

The Trustees have determined that increasing contribution levels and decreasing benefit levels 

for active participants would have a detrimental impact on retaining active participants and 

bargaining groups in the Plan. The benefit levels were cut in half in 2009 for active participants 

in response to the 2008 market downturn. The Trustees believe that the actives bear the burden 

of saving the Plan and the benefit levels of active employees is not high enough for them to 

withstand a further reduction in their benefit levels for future service under the Plan. Similarly, 

it would be detrimental to the goal of retaining active participants and bargaining groups in the 

Plan if more wages are diverted to the Plan at the expense of potential wage increases. 

l 0) The impact of past and anticipated contribution increases under the Plan on employer attrition 

and retention levels. 

The Trustees have determined that past employer contribution increases under the Plan had a 

negative impact on employer attribution and retention levels. For example, a high hourly 

contribution rate resulted in a major contributing employer not making contributions to the 

Fund for a two-year period (July 2009 to August 2011) and then resuming contributions at a 

significantly lower hourly contribution rate. Therefore, the Rehabilitation Plan does not 

provide for contribution increases . 

. 04 Other factors considered 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page9 
016

The Trustees considered the demographics of the Fund participants and the declining state of the 

industry to ensure that all reasonable measures have been taken to avoid insolvency. 

SECTION 6. OTHER REQUIRED INFORMATION 

.01 Ballot. 

The Trustees have adopted the attached proposed ballot to satisfy the requirements of 

432(e)(9)(H)(iii). Exhibit 12 . 

. 02 Partition. 

The Trustees are not requesting approval from the Pension Benefit Guaranty Corporation of a 

proposed partition of the Plan under section 4233 of ERISA. 

.03 Actuarial assumptions used for projections. 

1) Please refer to Appendix B for a list of actuarial assumptions used in the projections required 

under sections 3.01, 3.02, 4.02(1) and 4.03 of the Revenue Procedure. 

2) Please refer to Appendix B for the supporting evidence for the selection of the actuarial 

assumptions. 

3) Within this Application only one set of assumptions is used . 

. 04 Ten-year experience for certain critical assumptions. 

Please refer to Exhibit 11 for the following information for each of the 10 plan years immediately 

preceding the plan year beginning on June I , 20 I 7: 

I) Total contributions. 

2) Total contribution base units. 

3) Average contribution rates. 

4) Withdrawal liability payments. 

5) Rate of return on plan assets . 

. 05 Demonstration of sensitivity of projections. 

Please refer to Exhibit 13 for the deterministic projections of the sensitivity of the Plan's solvency 

ratio throughout the extended period, using the same assumptions as for the projections under 

section 4.02(1) of the Revenue Procedure, except that: 

1) The assumed rate of return is reduced by 1 percentage point. 

2) The assumed rate of return is reduced by 2 percentage points. 

3) Future contribution base units decrease at a rate equal to the average annual rate of decrease 

that the plan experienced over the last ten years. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 10 
017

4) Future contribution base units decrease at a rate equal to the average annual rate of decrease 

that the plan experienced over the last ten years reduced by 1 percentage point. 

.06 Projection of funded percentage. 

Please refer to Exhibit 14 for 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 . 

. 07 Plan sponsor certifications relating to plan amendments. 

See Exhibit 15 for the Trustees' certification that if the Trustees receive final authorization to 

implement the suspension as described in section 432(e)(9)(H)(vi) and, if the Trustees choose 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 Trustees fail 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 

benefit suspension. 

b) The Plan would not be projected to avoid insolvency if no suspension of benefits were 

applied under the Plan. 

2) A Plan amendment providing that any future benefit improvements will satisfy the 

requirements of section 432(e)(9)(E) . 

. 08 Whether a plan is described in section 432(e)(9)(D)(vii). 

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

. 09 Narrative statement. 

The Fund was certified to be in Critical and Declining Status for its 2017 plan year primarily due 

to a shrinking contribution base and heavy investment losses in 2001, 2002 and 2008 during times 

when the Fund had extensive negative cash flows. The Fund primarily covers truck drivers in the 

mid/northern New Jersey area, an industry that has experienced a significant decline in 

employment over the last 10 years. Specifically, over the last 10 years, the Fund has experienced 

a 64% decrease in active participants, causing a 40% decrease in employer contribution income. 

Employers have experienced great difficulty in finding new hires to replace retiring workers, 

causing a disproportionate number of retirees as compared to active participants. 

The number of active participants has declined from 3 76 as of June 1, 2007 to 130 as of June 1, 

2017. This has resulted in a growing trend of declining employer contributions. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 11 
018

Moreover, contributions from current employers were approximately $1,393,488 for the plan year 

ended May 31, 2017 as compared to $4,008,725 for the plan year ended May 31, 2007. The 

aggregate benefits paid to participants and beneficiaries were $32,657,650 for the plan year ended 

May 31, 2017 as compared to $29,742,525 for the plan year ended May 31, 2007. 

As a result, there has been a major decline in Fund assets over the past 10 years. Also, the Fund's 

assets were significantly adversely affected by the 2008-2009 stock market decline in the past 10 

years. The market value •Of Fund assets that was $396.4 million as of June 1, 2007, is now 

approximately $23 7 .6 million as of June I, 2017. 

As part of the Fund's Rehabilitation Plan, the Board considered the possibility of increased 

employer contributions to improve the solvency of the Fund. The Fund's actuary determined that, 

with no changes to the Fund's current plan of benefits, for the Fund to emerge from Critical and 

Declining Status by May 31, 2030, employer contribution rates would have to be increased by 

45% annually for each of the next 10 years, ultimately increasing to a rate that is more than 40 

times the current contribution rate. By comparison, the Fund's actuary has determined that, even 

with a 50% reduction in future benefit accruals for all active participants and the elimination of all 

adjustable benefits, under Code section 432(e)(8), employer contribution rates would still have to 

be increased by approximately 44% per year for each of the next 10 plan years for the Fund to 

emerge from Critical and Declining Status by May 31, 2030. As part of the Rehabilitation Plan, 

the Board reduced certain adjustable benefits. 

In summary, the cumulative result of these negative changes and trends is that the Fund is now in 

Critical and Declining Status and will become insolvent in 2030, unless the benefit reductions 

proposed by the Board are approved by the Secretary of the Treasury. 

SECTION 7. IDENTIFICATION AND BACKGROUND INFORMATION ON THE PLAN 

.01 Plan Sponsor. 

Board of Trustees of the Mid-Jersey Trucking Industry and Local 701 Pension Fund 

2003 US Route 130, Suite A, 

No. Brunswick, NJ 08902 

Tel. (732) 297-3900 

.02 Plan identification. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

The EIN is 13-6043977. The Plan number is 001. 

The Plan is a multiemployer defined benefit pension plan under section 414(f) of the Code . 

. 03 Retiree representative. None because the Plan has fewer than 10,000 participants . 

. 04 Plan's enrolled actuary. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 12 
019

Dewey A. Dennis, FCA, MAAA 

Enrollment Number 17-05712 

First Actuarial Consulting, Inc. 

1501 Broadway, Suite 1728 

New York, NY 10036 

Telephone: (212) 395-9559 

.05 Power of Attorney. 

See attached Exhibit 16 . 

. 06 Plan documents 

See attached Exhibit 17 . 

. 07 Collective bargaining and side agreements. 

See attached Exhibit 18 . 

. 08 Annual return. 

See attached Exhibit 19 . 

. 09 Rehabilitation plan. 

See attached Exhibit 5 . 

. 10 Valuation reports. 

The two most recent actuarial reports are attached. Please refer to attached Exhibit 20 . 

. 11 Completed checklist. 

See attached Exhibit 21. 

Thank you for your consideration of this Application. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 13 
020

Very truly yours, 

THE BOARD OF TRUSTEES OF THE MID-JERSEY TRUCKING INDUSTRY AND LOCAL 

701 PENSION FUND 

Signature: . 

Name: 

Title: 

Date: 

Signature: 

Name: 

Title: 

Union Trustee 

June 25; 2018 

Date: June 25, 2018 

20636400vl 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 14 
021

Exhibit 1 

Penalties of Periury Statement 

Under penalties of perjury, I declare that I have examined this application of the Defined Benefit 

Plan of the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and Annuity Fund, 

including the accompanying documents, and, to the best of my knowledge and belief, the request 

contains all the relevant facts relating to the request, and such facts are true, correct, and 

complete. 

Date: June~ 2018 Date: June oL( 2018 
022

Exhibit 2 

Public Disclosure Statement 

I acknowledge that, pursuant to § 432(e)(9)(G)(ii), the application for approval of the proposed 

suspension of benefits under the Defined Benefit Plan of the Mid-Jersey Trucking Industry and 

Teamsters Local 701 Pension and Annuity Fund, and the application's supporting material, will 

be publicly disclosed through publicatio11: on the Treasury Department website. 

Date: June J-f, 2018 Date: June JJ -, 2018 
023

EXHIBIT 3 

PLAN ACTUARY'S CERTIFICATION 

OF CRITICAL AND DECLINING 

STATUS 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 
024

MID-JERSEY TRUCKING INDUSTRY 

AND LOCAL 701 PENSION FUND 

APPLICATION FOR BENEFIT 

SUSPENSIONS 

Information Required by Section 3.01 of 

Revenue Procedure 2017-43 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 ®~·· FACT 

~~ 
025

Plan Actuary's Certification of Critical and 

Declining Status 

On August 29, 2017, the Plan was certified to be in critical and declining status as defined in 

§432(b)(6) of the Internal Revenue Code for the plan year beginning June 1, 2017. The Plan is 

not expected to emerge from critical status. The PP A actuarial certification for the plan year 

beginning June 1, 2017 is in the Appendix of this report. Please note that the results of that 

certification are somewhat different from the results contained in Item 1 of this report because 

some of the assumptions used for the certification are different than those used herein, 

particularly the investment return assumption, as 7 .5% per annum for each future year was 

assumed in the certification. 

Item 1 of this report contains a plan year-by-plan year projection of the available resources as 

defined in §418E(b)(3) of the Internal Revenue Code and the benefits that are due under the 

Plan, demonstrating that the Plan is projected to become insolvent during the period described in 

§432(b )( 6). The market value of assets at the beginning and end of the plan year, the 

contributions, the withdrawal liability payments, the benefit payments, the administrative 

expenses and the net investment returns are identified for each plan year. 

Item 2 of this report contains expected benefit payments separately identified with respect to 

current retirees and beneficiaries, terminated-vested participants who are not currently receiving 

benefits, currently active participants, and future new entrants. 

The undersigned actuaries of First Actuarial Consulting, Inc., meet the Qualification Standards 

of the American Academy of Actuaries to render the actuarial opinion contained in this report. 

In our opinion, all the calculations were performed in accordance with the generally accepted 

actuarial principles and practices and this report is complete and accurate and complies with the 

reasonable actuarial-assumption rules. 

I ewey •If . enms, . . • ., Jl••• ~, •~••• 

Enrolled Actuary No. 17-05712 

, 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

-~ .. 

Enrolled Actuary No. 17'."07546 

FACT 

~~ 
026

Item 1 - Projection of Plan's Available Resources 

Plan Year ending in 20181 2019 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets -

beginning of period 233,891,068 231,230,025 

Employer Contributions 248,615 1,411,380 

Withdrawal Liability to past wdl 0 1,375,142 

Payments to future 

attributable wdl 0 0 

Benefit Payments (5,362,665) (31,972,380) 

Administrative Expenses (133,333) (760,500) 

Net Investment Return 2,586,340 14,510,834 

Market Value of Assets - end of 

Plan Year 231,230,025 215,794,501 

Plan Year ending in 2022 2023 

Assumed Rate of Return 6.71% 6.66% 

Market Value of Assets -

beginning of Plan Year 182,875,850 165,303,479 

Employer Contributions 1,386,635 1,363,556 

Withdrawal Liability dl to past w 1,375,142 1,375,142 Payments fu . to ture 

attnbutable wdl 0 0 

Benefit Payments (30,893,421) (30,398,941) 

Administrative Expenses (742,954) (754,099) 

Net Investment Return 11,302,227 10,063,014 

Market Value of Assets - end of 

Plan Year 165,303,479 146,952,151 

1 Reflects the period from April 1, 2018 through May 31, 2018. 

Other columns reflect the periods from June 1st through May 31st. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N:\Fact\Local 701 \Suspension application\work\[cashjlow No SoB.xlsx]BPs 

®~36 

2020 2021 

6.71% 6.71% 

215,794,501 199,681,319 

1,369,456 1,416,876 

1,375,142 1,375,142 

0 0 

(31,623,356) (31,283,676) 

(721,158) (731,975) 

13,486,734 12,418,164 

199,681,319 182,875,850 

2024 2025 

6.63% 6.50% 

146,952,151 127,817,819 

1,340,478 1,254,953 

1,375,142 1,375,142 

0 0 

(29,900,904) (29,458,726) 

(765,410) (776,891) 

8,816,362 7,410,979 

127,817,819 107,623,276 

~i 

FACT 
027

Item 1 - Projection of Plan's Available Resources 

(cont'd) 

Plan Year ending in 

Assumed Rate of Return 

Market Value of Assets -

beginning of Plan Year 

Employer Contributions 

Withdrawal Liability to past wdl 

Payments to future 

attributable wdl 

Benefit Payments 

Administrative Expenses 

Net Investment Return 

Market Value of Assets - end of 

Plan Year 

Plan Year ending in 

Assumed Rate of Return 

Market Value of Assets -

beginning of Plan Year 

Employer Contributions 

Withdrawal Liability dl to past w 

Payments fi . to uture 

attnbutable wdl 

Benefit Payments 

Administrative Expenses 

Net Investment Return 

Market Value of Assets - end of 

Plan Year 

2026 

6.41% 

107,623,276 

1,260,770 

1,375,142 

0 

(28,921,338) 

(788,545) 

6,030,931 

86,580,236 

2030 

7.28% 

18,945,892 

1,138,949 

1,375,142 

0 

(26,716,815) 

(836,933) 

467,817 

INSOLVENT 

2027 

6.32% 

86,580,236 

1,260,770 

1,375,142 

0 

(28,373,835) 

(800,373) 

4,633,261 

64,675,201 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN JPN: 13-6043977 /001 

N:\Fact\Local 701 \Suspension application\work\[casliflow No SoB.xlsx]cashflow 

®~36 

2028 2029 

7.32% 7.28% 

64,675,201 42,357,952 

1,251,170 1,228,092 

1,375,142 1,375,142 

0 0 

(27,910,280) (27,343,818) 

(812,379) (824,564) 

3,779,098 2,153,088 

42,357,952 18,945,892 

~i 

FACT 
028

Item 2 - Expected Benefit Payments 

Benefit Payments Attributable To 

Retirees and Terminated Active 

Plan Year ending Beneficiaries Vesteds as Participants 

May 31, 

as of 6/1/2017 of6/1/2017 as of 

6/1/2017 

2018 1 5,188,334 137,289 37,042 

2019 30,491,413 1,029,304 451,663 

2020 29,839,792 1,134,664 648,900 

2021 29,158,219 1,252,706 872,751 

2022 28,445,270 1,331,251 1,116,900 

2023 27,702,825 1,392,623 1,303,493 

2024 26,962,854 1,427,116 1,509,718 

2025 26,203,303 1,580,451 1,670,479 

2026 25,425,087 1,694,198 1,791,474 

2027 24,628,683 1,814,179 1,912,082 

2028 23,814,721 2,035,387 2,030,401 

2029 22,983,891 2,147,187 2,163,358 

2030 22,136,996 2,216,496 2,285,949 

1 Reflects the period from April 1, 2018 through May 31, 2018. 

Other rows reflect the periods from June 1st through May 31st. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N:\Fact\Local 701 \Suspension application\work\[casliflow No SoB.xlsx]BPs 

®~36 

New Entrants 

after 6/1/2017 

0 

0 

0 

0 

0 

0 

1,216 

4,493 

10,579 

18,891 

29,771 

49,382 

77,374 

Total Benefit 

Payments 

5,362,665 

31,972,380 

31,623,356 

31,283,676 

30,893,421 

30,398,941 

29,900,904 

29,458,726 

28,921,338 

28,373,835 

27,910,280 

27,343,818 

26,716,815 

~1 

FACT 
029

Appendix to Exhibit 03 -

Information Required by Section 3.01 of 

Revenue Procedure 2017-43 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 .,~ .. ~1 

FACT 
030

First Actuarial Consulting, Inc. 

Telephone: (212} 395-9555 

Facsimile: (212) 869-2233 

E-Mail: ddennis@factuarial.com 

1501 Broadway 

Suite 1728 

New York, NY 10036 

To: 

From: 

CC: 

Date: 

Subject: 

MEMORANDUM 

Secretary of the Treasury 

Dewey A. Dennis 

Mr. Giancarlo Prezioso, Fund Manager, Mid-Jersey Trucking Industry and Local 

701 Pension Fund 

August 29, 2017 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

- Status as of June I, 2017 

Plan Identification: 

Name of the Plan: 

EIN/Plan Number: 

Plan Sponsor: 

Plan Year: 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

13-6043977/00 I 

Board of Trustees of the Mid-Jersey Trucking Industry 

2003 US Route 130, Suite A, No. Brunswick, NJ 08902 

Phone: (732) 297-3900 

2017 (beginning 611/2017 and ending 5/31/2018) 

A table of the actuarial assumptions and the methodology used for this certification is 

included in the attachments to this certification as Exhibit A. The above captioned pension fund 

does not have an accumulated funding deficiency for the plan year beginning June 1, 2017, but it 

is projected to have such an accumulated funding deficiency within the 4 succeeding plan years 

as outlined in Exhibit C of the attachments to this certification. In addition, the above captioned 

pension fund is currently not projected to avoid insolvency over a twenty-year period starting 

with the 2017 plan year. 

As called for under Internal Revenue Code Section 432, as amended by the 

Multiemployer Pension Reform Act of 2014, I certify that the above captioned pension fund is in 

critical and declining status for the 2017 plan year. 

Date of Signature 

Attachments 

N,.•·1•«1 1/.,,caf 70 P•'<ff 6. I. 20/ 7 ,-er1ifia11iu,, A,·1«aiial*,:er1({k."-11hN1 __ /,!'O (. io 17.Jn,c-
031

Exhibit A. ACTUARIAL ASSUMPTIONS /METHODS 

Actuarial Assumptions 

Interest Rates 

Mortality 

Retireme,rt Rates 

Termination Rates 

Disability Rates 

Administrative 

Expenses 

Valuation 

ASC 960 

Withdrawal Liability 

7 .50% per annum 

7.50% per annum 

7 .50% per annum 

RP2000 mortality table set forward three years projected with 

scale AA on a fully generational basis for healthy participants. 

RP2000 Disabled mortality table for disabled participants. 

The tables specified in IRC Section 43 l(C)(6)(D)(iv)&(v) were 

employed to develop Current Liability. 

For those eligible to retire, the retirement rates are as follows: 

Age 

40-44 

45-49 

50-59 

60-61 

Rate 

5% 

15 

50 

45 

Age 

62 

63-69 

70and 

over 

Rate 

50% 

75 

100 

The termination rates are assumed to follow the published T-6 

table. Sample rates are as follows: 

Age Rate 

20 7.94% 

30 7.40 

40 6.11 

so 3.62 

60 and over 0.13 

Sample rates are as follows: 

Age 

25 

30 

35 

40 

Rate 

0.05% 

0.05 

0.06 

0.09 

Age 

45 

50 

55 

60 

$600,000 payable at the beginning of the year. 

Rate 

0.18% 

0.40 

0.85 

1.74 

Actuarial Certification of the Mid-Jersey Trucking Industry and Local No. 701 Pension Fund as of June 1, 

2017 

FACT 

~~ 
032

A. ACTUARIAL ASSUMPTIONS /METHODS (cont'd) 

Maximum Benefits It is assumed that the maximum benefit limitation under the IRC 

will not increase in the future. 

Marriage 80% of participants are assumed to be married. Husbands are 

assumed to be three years older than wives. 

Form of Payment Participants are assumed to elect the normal form for married 

and single participants. 

New Entrants New entrants are anticipated at a level sufficient to maintain a 

stable composition of membership. 

Cost-of-Living None. 

Adjustment 

Future Increases in None. 

Benefit Limits 

Benefits Not Included None. 

in tl,e Valuation 

Prorata Pensions 25% of the accrued benefit liability for inactive participants 

without vested rights in the database is included in the Actuarial 

Accrued Liability to estimate emerging liability for pro-rata 

pensions commencing in the future. 

Actuarial Certification of the Mid-Jersey Trucking Industry and Local No. 701 Pension Fund as of June I, 

2017 

2 

FACT 

~~ 
033

A. ACTUARIAL ASSUMPTIONS /METHODS (cont'd) 

Actuarial Metltods 

Cost Method 

The Entry Age Normal Cost Method is employed in this valuation. Under this method, 

the normal cost is the annual level dollar contribution that would have been required from 

the age of plan entry in order to fund the participant's retirement, termination and 

ancillary benefits if the current plan provisions had always been in effect. The actuarial 

accrued liability is the present value of all future benefits for inactive participants and is 

the excess of the present value of all future benefits over the present value of future 

normal costs for active participants. The present value of all future benefits is determined 

by discounting to the valuation date, the total future expected cash flow from the plan 

using the aforementioned actuarial assumptions. The present value of future normal costs 

is determined by discounting to the valuation date, all of the normal costs anticipated to 

result from future valuations using the aforementioned actuarial assumptions. The 

normal cost and actuarial accrued liability for the entire plan are the sums of the 

individually computed normal costs and actuarial accrued liabilities for all current plan 

participants. 

For purposes of developing the funded ratio prescribed under the 2006 Pension Protection 

Act (PPA), the Traditional Unit Credit cost method is employed. Under this method, an 

"accrued benefit" is calculated as of the beginning of the year and is projected as of the 

end of the year for each benefit that may be payable in the future. The "accrued benefit" 

is based on the plan's accrual formula and upon service as of the beginning or end of the 

year. For benefits where the plan's accrual formula is not relevant, benefits are assumed 

to accrue on a straight•line basis over the period during which the employee earns 

credited service. The actuarial accrued liability is the present value of the "accrued 

benefit" as of the beginning of the year for active participants and is the present value of 

all benefits for other participants. The normal cost is the present value of the difference 

between the "accrued benefit" as of the beginning and the "accrued benefit" projected to 

the end of the year. The normal cost and actuarial accrued liability for the plan are the 

sums of the individually computed normal costs and actuarial accrued liabilities for all 

plan participants. 

The determination of funded status as of June I, 20 I 7 reflects a projection of the June I, 

2016 actuarial valuation of the Fund. For this projection and for the projection of the 

Funding Standard Account under the PP A, we have assumed that all of the actuarial 

assumptions outlined above would be realized in each year of the projections. 

Furthermore, underlying these projections are the following assumptions, adopted after 

conferral with the Fund Administrator and Board of Trustees regarding their expectations 

concerning the Plan membership's demographic composition going forward: 

Actuarial Certification of the Mid-Jersey Trucking Industry and Local No. 701 Pension Fund as of June 1, 

2017 

3 

~1 

FACT 
034

A. ACTUARIAL ASSUMPTIONS /METHODS (cont'd) 

(a) that the continuing active membership would remain stable at its current level, 

after reflecting the withdrawal of Shore Point Distribution as of May 1, 2017. 

(b) that, for the plan year ending May 31, 2017, continuing active members will have 

earned twelve additional Pension Credits for the year. 

As a result of these assumptions, our projection of the Funding Standard Account 

presumes that 1) employer contributions will remain at their most recently measured 

levels, assuming that Shore Point Distributions withdrawal liability contributions will 

be equivalent to the employer contributions that had been paying, and 2) normal cost 

will be adjusted to reflect the withdrawal of Shore Point Distribution. 

Asset Metl,od 

The Five-Year Weighted Average of Asset Gains/Losses Method is used in this valuation. 

The actuarial value of assets was initially set to Market Value as of June 1, 2004 and is 

subsequently determined by adjusting the market value of assets to reflect the asset gains and 

losses (the difference between expected investment return and actual investment return) 

during each of the previous five years (subsequent to June 1, 2004) at the rate of 20% per 

year (10% per year for 10 years for the 2008 net investment loss). The actuarial value is 

subject to a restriction that it not be less than 80% or more than 120% of market value. 

For purposes of developing the PPA projections as of June 1, 2017, the Fund auditor has 

provided us with an unaudited financial statement of assets as of May 31, 2017. 

Actuarial Certification of the Mid-Jersey Trucking Industry and Local No. 701 Pension Fund as of June I, 

2017 

4 

~1 

FACT 
035

Exhibit B DEVELOPMENT OF FUNDED PERCENTAGE AT 6/1/2017 -

DRAFT 

Computation of Actuarial Value of Assets 

Investment Gain /{Loss) 

I. Market value of assets as of June 1, 2016 

2. Expected return on market value of assets 

(a) Contributions during 2016 plan year 

(b) Benefits paid 

(c) Administrative expenses 

(d) Total 

Amount 

$2,568,773 

(32,657,650) 

(626,033) 

Weight for 

Timing 

1/2 

13/24 

1/2 

(e) Weighted market value of assets during 2016: (1) + 2(d) 

(f) Expected return (2e) x 7.50% 

3. Actual Return 

(a) Market value of assets as of June I, 2016 

(b) Contributions for prior plan year 

( c) Benefits paid and administrative expenses 

( d) Market value of assets as of June I, 2017 

( e) Actual Return 

4. Investment gain /(loss), 3(e)-2(f) 

Actuarial Value of Assets 

1. Market value of assets as of June I, 2017 

2. Deferred gain /(loss) 

Plan Year Investment Gain Percent 

Ending /(Loss) Recognized 

(a) 2009 ($90,767,215) 

(b) 2014 21,504,764 

(c) 2015 (6,845,615) 

(d) 2016 (32,488,518) 

(e) 2017 13,455,311 

(f) Total: 

3. Assets minus deferred gain /(loss), (1)-(2)(t) 

4. Corridor for actuarial value of assets 

(a) 80% of market value of assets 

(b) 120% of market value of assets 

5. Actuarial value of assets as of June 1, 2017 

(3), not less than (4)(a) nor greater than (4)(b) 

90% 

80% 

60% 

40% 

20% 

Percent 

Deferred 

IO% 

20% 

40% 

60% 

80% 

$238,242,493 

Weighted 

Amount 

$1,284,387 

(17,689,560) 

(313,017) 

($16,718,190) 

$221,524,303 

16,614,323 

($238,242,493) 

(2,568,773) 

33,283,683 

237,597.217 

$30,069,634 

$13,455,311 

$237,597,217 

Deferred Gain 

/(Loss) 

($9,076,722) 

4,300,953 

(2,738,246) 

(19,493,111) 

10..764.24~ 

($16,242,877) 

$253,840,094 

$190,077,774 

285,116,660 

$253,840,094 

Note: The figures on this page were developed from unaudited assets as of 5/31 /20 I 7. 

Actuarial Certification of the Mid-Jersey Trucking Industry and Local No. 701 Pension Fund as or June I, 2017 . ..,.,. ~1 

FACT 
036

Ex. B DEVELOPMENT OF FUNDED PERCENTAGE AT 6/1/2017 cont'd -

DRAFT 

In order to estimate the actuarial accrued liability as of June 1, 2017 under the Traditional 

Unit Credit funding method, we performed a one-year projection valuation on our actuarial 

software program that developed the Plan's liabilities for the June 1, 2016 actuarial valuation. 

For this one-year projection, we assumed that all of the actuarial assumptions listed in Exhibit 

A were realized for the projection year (with the exception of the asset return assumption, 

where the actual unaudited returns were used). 

This one-year projection yielded an actuarial accrued liability under the Traditional Unit 

Credit funding method of $333,293,583 as of June I, 2017. The ratio of Actuarial Value of 

Assets to the projected actuarial accrued liability is 76.16% ($253,840,094 divided by 

$333,293,583). 

NtFa.N.rx:al 70h-a/',6. /.2017•,·enijico1im1'./i..•hihi1 8.d,H: 

Actuarial C,rtlli<atio• ofthe Mld-Jors,y Tmldng l•duot,y and Lo<al No, 701 Pension Fund as of Juno I, 2017 ~ ~ •~,. FACT 

2 
Exhibit C - Funding Standard Account Proiection 

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

Funding Standard Account projection 

Plan Year Beginning June I, 

2016 2017 2018 2019 2020 2021 

Charges 

Normal Cost 1,749,561 1,265,297 1,265,297 1,265,297 1,265,297 1,265,2

Amortization Charges 28,227,817 24,219,622 23,187,642 23,099,660 23,509,634 23,364,0

Interest 2,248,303 1,911,369 1,833,970 1,827,372 1,858,120 1,847,2

Total Charges 32,225,681 27,396,288 26,286,909 26,192,329 26,633,051 26,476,5

Credits 

Prior Year's Credit Balance 76,077,983 65,254,906 58,449,491 47,421,337 27,450,710 5,541,5

Contributions 2,568,773 2,568,773 2,568,773 2,568,773 2,568,773 2,568,7

Amortization Credits 12,122,468 12,122,468 7,637,155 0 0 304,8

Interest 6,711,363 5,899,632 5,052,827 3,652,929 2,155,132 534,8

Total Credits 97,480,587 85,845,779 73,708,246 53,643,039 32,174,615 8,950,0

Credit Balance (Funding Deficiency) 65,254,906 58,449,491 47,421,337 27,450,710 5,541,564 (17,526,5

The PP A test looks at the current year (2017) and the subsequent six years (through 2023) for a funding deficiency. This Plan fails the test since there is a funding deficiency projected for the 2021 Plan year. 

Further projections show that the Plan should be able to pay all benefit payments over the projection period if all assumpti

N: l'act:/.ocal 70/',•al f>I2017·certijicatim,Ig,J,ava _PSA ccrt.xl<Jf'SAfu/1 rec 

.. ~,, 
038

EXHIBIT4 

PLAN ACTUARY'S CERTIFICATION 

THAT THE PLAN IS PROJECTED TO 

AVOID INSOLVENCY 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 
039

MID-JERSEY TRUCKING INDUSTRY 

AND LOCAL 701 PENSION FUND 

APPLICATION FOR BENEFIT 

SUSPENSIONS 

Information Required by Section 3.02 of 

Revenue Procedure 2017-43 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 ®~36 

~1 

FACT 
040

Plan Actuary's Certification that the Plan 

is Projected to Avoid Insolvency 

On August 29, 2017, the Plan was certified to be in critical and declining status for the plan year 

beginning June 1, 2017 as defined in §432(b)(6) of the Internal Revenue Code. The plan is not 

expected to emerge from critical status. 

The Trustees are submitting an application to the Treasury to suspend benefits under §432(e)(9). 

The purpose of this report is to provide information required in Section 3.02 of Revenue Procedure 

2017-43 and to certify that the Plan is projected to avoid insolvency within the meaning of §418E, 

taking into account the proposed benefit suspension. 

Item 1 of this report contains a plan-year-by-plan-year projection of the available resources as 

defined in §418E(b)(3) of the Internal Revenue Code and the benefits that are due under the plan, 

demonstrating that the plan is projected to avoid insolvency, taking into account the proposed 

benefit suspension, over the extended period described in §432(e)(9)-l(d)(5)(ii)(C). The market 

value of assets at the beginning and end of each plan year, the contributions, the withdrawal 

liability payments, the benefit . payments, the administrative expenses and the net investment 

returns are identified for each plan year. 

Item 2 of this report contains expected benefit payments, taking into account the proposed benefit 

suspension, separately identified with respect to current retirees and beneficiaries, terminatedvested participants who are not currently receiving benefits, currently active participants, and 

future new entrants. 

The full list of actuarial assumptions and methods and the supporting documentation is in the 

separate report labeled "Appendix B - Information on Actuarial Assumptions and Methods". 

The undersigned actuaries of First Actuarial Consulting, Inc. meet the Qualification Standards of 

the American Academy of Actuaries to render the actuarial opinion contained in this report. All 

the calculations were performed in accordance with our understanding of generally accepted 

actuarial principles and practices and this report, to our knowledge, is complete and accurate and 

complies with the reasonable actuarial-assumption rules. 

The undersigned actuaries certify that the Plan is projected to avoid insolvency within the 

meaning of Section 418E of the IRC over the extended period described in §432(e)(9)-

l(d)(5)(ii)(C) if the proposed benefit suspensions are taken into account. 

y 

Enrolled Actuary No. 17-05712 Enrolled Actuary No. 17-07546 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 • .,.._ss ~1 

FACT 
041

Item 1 - Projection of Plan's Available Resources 

Plan Year ending in 20181 2019 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets -

beginning of period 233,891,068 231,230,025 

Employer Contributions 248,615 1,411,380 

Withdrawal Liability to past wdl 0 1,375,142 

Payments to future 

attributable wdl 0 0 

Benefit Payments (5,362,665) (30,397,838) 

Administrative Expenses (133,333) (760,500) 

Net Investment Return 2,586,340 14,563,660 

Market Value of Assets - end of 

Plan Year 231,230,025 217,421,869 

Plan Year ending in 2022 2023 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets -

beginning of Plan Year 204,937,946 198,620,510 

Employer Contributions 1,386,635 1,363,556 

Withdrawal Liability dl 

p to past w 1,375,142 1,375,142 ayments fu . to ture 

attributable wdl 0 0 

Benefit Payments (21,436,144) (20,986,764) 

Administrative Expenses (742,954) (754,099) 

Net Investment Return 13,099,885 12,689,914 

Market Value of Assets - end of 

Plan Year 198,620,510 192,308,259 

1 Reflects the period from April 1, 2018 through May 31, 2018. 

Other columns reflect the periods from June 1st through May 31st. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N:\Fact\Local 701\Suspension application\work\[cashflow SoB.xlsx]cashjlow 

®~36 

2020 2021 

6.71% 6.71% 

217,421,869 211,192,832 

1,369,456 1,416,876 

1,375,142 1,375,142 

0 0 

(22,165,711) (21,822,923) 

(721,158) (731,975) 

13,913,234 13,507,994 

211,192,832 204,937,946 

2024 2025 

6.71% 6.71% 

192,308,259 186,003,684 

1,340,478 1,254,953 

1,375,142 1,375,142 

0 0 

(20,535,145) (20,108,804) 

(765,410) (776,891) 

12,280,360 11,868,372 

186,003,684 179,616,456 

~1 

FACT 
042

Item 1 - Projection of Plan's Available Resources 

(cont'd) 

Plan Year ending in 2026 2027 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets -

beginning of Plan Year 179,616,456 173,288,834 

Employer Contributions 1,260,770 1,260,770 

Withdrawal Liability to past wdl 1,375,142 1,375,142 

Payments to future 

attributable wdl 0 0 

Benefit Payments (19,630,625) (19,149,103) 

Administrative Expenses (788,545) (800,373) 

Net Investment Return 11,455,636 11,046,811 

Market Value of Assets - end of 

Plan Year 173,288,834 167,022,081 

Plan Year ending in 2030 2031 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets -

beginning of Plan Year 157,838,735 153,335,051 

Employer Contributions 1,138,949 1,140,778 

Withdrawal Liability dl to past w 1,375,142 1,375,142 Payments fu . to ture 

attnbutable wdl 0 0 

Benefit Payments (17,789,010) (17,322,498) 

Administrative Expenses (836,933) (849,487) 

Net Investment Return 11,608,168 11,276,794 

Market Value of Assets - end of 

Plan Year 153,335,051 148,955,780 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

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®~36 

2028 2029 

7.75% 7.75% 

167,022,081 162,385,584 

1,251,170 1,228,092 

1,375,142 1,375,142 

0 0 

(18,738,803) (18,271,312) 

(812,379) (824,564) 

12,288,373 11,945,793 

162,385,584 157,838,735 

2032 2033 

7.75% 7.75% 

148,955,780 144,742,759 

1,122,787 1,164,778 

1,371,076 1,358,876 

0 0 

(16,800,918) (16,369,461) 

(862,229) (875,162) 

10,956,263 10,647,126 

144,742,759 140,668,916 

~1 

FACT 
043

Item 1 - Projection of Plan's Available Resources 

(cont'd) 

Plan Year ending in 2034 2035 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets -

beginning of Plan Year 140,668,916 136,755,796 

Employer Contributions 1,162,949 1,156,776 

Withdrawal Liability to past wdl 1,358,876 1,358,876 

Payments to future 

attributable wdl 0 0 

Benefit Payments (15,895,832) (15,397,647) 

Administrative Expenses (888,290) (901,614) 

Net Investment Return 10,349,177 10,064,459 

Market Value of Assets - end of 

Plan Year 136,755,796 133,036,646 

Plan Year ending in 2038 2039 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets -

beginning of Plan Year 126,310,040 122,273,228 

Employer Contributions 1,171,853 1,171,853 

Withdrawal Liability dl to past w 339,719 0 Payments fu . to ture 

attnbutable wdl 0 0 

Benefit Payments (13,878,848) (13,375,780) 

Administrative Expenses (942,799) (956,940) 

Net Investment Return 9,273,263 8,966,192 

Market Value of Assets - end of 

Plan Year 122,273,228 118,078,553 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

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N:\Fact\Local 701 \Suspension application\work\[cashjlow SoB.xlsx]cashjlow 

®~36 

2036 2037 

7.75% 7.75% 

133,036,646 129,543,774 

1,156,776 1,171,853 

1,358,876 1,358,876 

0 0 

(14,888,805) (14,380,083) 

(915,138) (928,866) 

9,795,419 9,544,486 

129,543,774 126,310,040 

2040 2041 

7.75% 7.75% 

118,078,553 114,062,833 

1,171,853 1,162,253 

0 0 

0 0 

(12,876,185) (12,351,916) 

(971,295) (985,864) 

8,659,907 8,368,068 

114,062,833 110,255,374 

~1 

FACT 
044

Item 1 - Projection of Plan's Available Resources 

(cont'd) 

Plan Year ending in 2042 2043 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets -

beginning of Plan Year 110,255,374 106,577,084 

Employer Contributions 1,162,253 1,162,253 

Withdrawal Liability to past wdl 0 0 

Payments to future 

attributable wdl 0 0 

Benefit Payments (11,928,707) (11,447,643) 

Administrative Expenses (1,000,652) (1,015,662) 

Net Investment Return 8,088,816 7,821,808 

Market Value of Assets - end of 

Plan Year 106,577,084 103,097,840 

Plan Year ending in 2046 2047 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets -

beginning of Plan Year 96,768,757 93,920,200 

Employer Contributions 1,162,253 1,162,253 

Withdrawal Liability dl to past w 0 0 Payments fu . to ture 

attnbutable wdl 0 0 

Benefit Payments (10,062,301) (9,620,281) 

Administrative Expenses (1,062,056) (1,077,986) 

Net Investment Return 7,113,547 6,909,295 

Market Value of Assets - end of 

Plan Year 93,920,200 91,293,481 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N:\Fact\Local 701 \Suspension application\work\[cashjlow SoB.xlsx]cashjlow 

®~36 

2044 2045 

7.75% 7.75% 

103,097,840 99,831,994 

1,162,253 1,162,253 

0 0 

0 0 

(10,967,388) (10,513,213) 

(1,030,897) (1,046,360) 

7,570,186 7,334,083 

99,831,994 96,768,757 

2048 2049 

7.75% 7.75% 

91,293,481 88,892,624 

1,162,253 1,160,424 

0 0 

0 0 

(9,190,698) (8,780,084) 

(1,094,156) (1,110,568) 

6,721,744 6,550,882 

88,892,624 86,713,278 

~1 

FACT 
045

Item 2 - Expected Benefit Payments 

Benefit Payments Attributable To 

Retirees and Terminated Active 

Plan Year ending Beneficiaries Vesteds as Participants New Entrants Total Benefit 

May 31, 

as of 6/1/2017 of6/1/2017 as of after 6/1/2017 Payments 

6/1/2017 

2018 1 5,188,334 137,289 37,042 0 5,362,665 

2019 28,954,846 1,001,410 441,582 0 30,397,838 

2020 20,671,217 933,476 561,018 0 22,165,711 

2021 20,046,772 1,020,378 755,773 0 21,822,923 

2022 19,399,854 1,070,176 966,114 0 21,436,144 

2023 18,735,590 1,122,934 1,128,240 0 20,986,764 

2024 18,077,565 1,148,080 1,308,285 1,215 20,535,145 

2025 17,410,195 1,243,514 1,450,602 4,493 20,108,804 

2026 16,735,442 1,326,386 1,558,217 10,580 19,630,625 

2027 16,054,851 1,409,795 1,665,566 18,891 19,149,103 

2028 15,370,130 1,567,776 1,771,125 29,772 18,738,803 

2029 14,683,022 1,649,610 1,889,294 49,386 18,271,312 

2030 13,995,322 1,715,537 2,000,768 77,383 17,789,010 

2031 13,308,897 1,823,942 2,078,451 111,208 17,322,498 

2032 12,625,580 1,862,463 2,165,922 146,953 16,800,918 

2033 11,947,388 1,962,746 2,271,617 187,710 16,369,461 

2034 11,276,421 2,023,759 2,357,304 238,348 15,895,832 

2035 10,614,614 2,067,675 2,420,048 295,310 15,397,647 

2036 9,963,922 2,090,875 2,481,523 352,485 14,888,805 

2037 9,326,434 2,100,027 2,547,121 406,501 14,380,083 

2038 8,704,129 2,111,506 2,600,626 462,587 13,878,848 

2039 8,098,728 2,129,183 2,621,787 526,082 13,375,780 

2040 7,511,642 2,152,848 2,616,072 595,623 12,876,185 

2041 6,944,278 2,127,703 2,613,978 665,957 12,351,916 

2042 6,397,876 2,166,295 2,630,668 733,868 11,928,707 

2043 5,873,469 2,156,400 2,613,505 804,269 11,447,643 

2044 5,371,806 2,133,495 2,576,127 885,960 10,967,388 

2045 4,893,596 2,106,642 2,537,012 975,963 10,513,213 

2046 4,439,368 2,055,747 2,499,840 1,067,346 10,062,301 

2047 4,009,521 2,010,896 2,444,478 1,155,386 9,620,281 

2048 3,604,580 1,960,875 2,380,102 1,245,141 9,190,698 

2049 3,224,888 1,899,316 2,312,267 1,343,613 8,780,084 

1 Reflects the period from April 1, 2018 through May 31, 2018. 

Other rows reflect the periods from June 1st through May 31st. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

~~ EIN /PN: 13-6043977 /001 

N: \Fact\Local 701 \Suspension application \work\[cashflow SoB.xlsx]BPs 

®~36 FACT 
Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

EXHIBIT 5 

REHABILITATION PLAN 

046
047

I. 

REHABILITATION PLAN 

FOR THE 

DEFINED BENEFIT PLAN OF THE MID-JERSEY TRUCKING INDUSTRY AND 

TEAMSTERS LOCAL 701 PENSION AND ANNUITY FUND 

Introduction 

Under the Employee Retirement Income Security Act ("BRISA"), on August 29, 2017, the 

actuary of the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and Annuity Fund 

("Fund") certified that the Fund's defined benefit plan ("Plan") is in Critical Status for the Plan 

Year beginning June 1, 2017. 

As required by law, the Board of Trustees sent a Notice of Critical Status ("Notice"), to 

participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation 

("PBGC") and the Department of Labor, advising, in part, that ( l) the Fund is in Critical Status for 

the 2017 Plan Year; (2) all non-level benefits previously available under the Fund's Plan of 

benefits, including certain lump sum benefits or any other payments in excess of the monthly 

amount paid under a single life annuity, are not payable in the form effective as of the date of the 

Notice; and (3) employers participating in the Fund ("Employers") are obligated to pay a 5% 

contribution surcharge to the Fund, effective for contributions due to the Fund for work performed 

on or after November 1, 2017. The 5% surcharge wiJl increase to 10% on June l, 2018 and will 

continue until the earlier of (1) the date the Fund emerges from Critical Status; or (2) the date the 

Employer enters into a new collective bargaining agreement ("CBA") with the Union consistent 

with the Schedule in this Rehabilitation Plan. 

GeneralJy, the Fund must emerge from Critical Status by the end of its ten year 

Rehabilitation Period, as defined by BRISA. The Fund's Rehabilitation Period will begin on June 

1, 2020 and end on May 31, 2030. However, the Fund's Board of Trustees has determined that 

based on all reasonable actuarial assumptions, and upon exhaustion of all reasonable measures, the 

Fund cannot reasonably be expected to emerge from critical status by the end of the Rehabilitation 

Period. Pursuant to ERISA Section 305(e)(3)(A)(ii), the Board of Trustees is adopting this 

Rehabilitation Plan to forestall possible insolvency (as defined by ERISA Section 4245). 

The Schedule of contribution increases and benefit reductions attached to this 

Rehabilitation Plan ("Schedule") will be provided to the bargaining parties no later than the 

thirtieth day after the Board of Trustees adopts this Rehabilitation Plan. Any new CBA entered 

into by the bargaining parties or any other agreement calling for participation in the Fund after it 

is so provided must reflect the terms of the Schedule. If the bargaining parties cannot reach an 

agreement concerning the adoption of the Schedule, the Schedule is to be treated as the default 

schedule and will become effective on the date specified in BRISA Section 305(e)(3)(C)(ii). 

This Rehabilitation Plan is based on the reasonable projections of the Fund's liabilities 

using June 1, 2016 database and on reasonable assumptions about how the Fund's assets will 

change in the coming years, particularly as a result of changes in the Fund's investment returns, 

which are dependent on the financial markets. The Board of Trustees will update this 
048

Rehabilitation Plan, as required by law. The Board of Trustees has the sole discretion to amend 

and construe this Rehabilitation Plan. 

II. Alternatives Considered for Emerging From Critical Status During the 

Rehabilitation Period 

The Board of Trustees considered reasonable measures for emerging from Critical Status 

during the Rehabilitation Period. The alternatives considered include projections by the Fund's 

Actuary that are based on reasonable actuarial assumptions. For instance, the Fund's Actuary 

determined that, with no changes to the Fund's current plan of benefits ("Plan"), for the Fund to 

emerge from Critical Status by the end of the Rehabilitation Period, Employer contribution rates 

would have to be increased by 45% annually for each of the next ten years, ultimately increasing 

to a rate that is more than 40 times of the current contribution rate. The Fund's Actuary has 

determined that, even with a 50% reduction in future benefit accruals and the elimination of all 

adjustable benefits, Employer contribution rates would still have to be increased by approximately 

44% per year for each of the next ten years for the Fund to emerge from Critical Status by the end 

of the Rehabilitation Period. 

The Board determined that these and any similar measures were not reasonable. 

Specifically, the Board determined that such measures are unlikely to be agreed upon by the 

bargaining parties, and therefore the likely outcome of collective bargaining over these types of 

alternatives would be negotiated withdrawals from the Fund. In this regard, the Fund's Actuary 

determined that, if a mass withdrawal were to occur, and all withdrawal liability payments were 

collected (which is extremely unlikely), the Fund would not emerge from Critical Status and would 

become insolvent (as defined by ERISA Section 4245) in the plan year ending in 2030. The Fund's 

Actuary also determined that, if a mass withdrawal were to occur, in the more likely case that 50% 

of withdrawal liability payments were collected, the Fund would become insolvent (as defined by 

ERISA Section 4245) in the plan year ending in 2029. 

III. Schedule of Reasonable Measures to Forestall the Fund's Date oflnsolvency 

. The Board of Trustees has determined that, based on reasonable actuarial assumptions and 

upon exhaustion of all reasonable measures, given the combination of required contribution 

increases and benefit reductions necessary for the Fund to emerge from Critical Status by the end 

of the Rehabilitation · Period, the Fund cannot be reasonably expected to emerge from Critical 

Status by the end of the Rehabilitation Period. Therefore, the Trustees are adopting a 

Rehabilitation Plan described under Section 305(e)(3)(A)(ii) that consists ofreasonable measures 

to forestall the date of the Fund's possible insolvency. 

A. General Information. The Schedule contains the contribution increases and 

benefit reductions that will be necessary for the Fund to forestall insolvency, by delaying the 

projected date of insolvency from 2030, in the case of a mass withdrawal, to 2031. The Schedule 

described herein will also be treated as the Default Schedule for the purposes of ERISA Section 
049

305(e)(3)(C) since the Default Schedule described in Section 305(e)(l) would not be a reasonable 

measure. 

B. Contributions. As outlined below, the Board of Trustees has determined that the 

benefit cuts included in this Schedule are expected to be sufficient to forestall the Fund's possible 

insolvency past the estimated date the Fund would be insolvent if there was mass withdrawal of 

all of the Fund's contributing employers, which the Board had determined is likely to occur if the 

Fund does not utilize Section 305(e)(3)(A)(ii). With respect to contributions, the Board has 

reviewed the contribution history of each contributing employer whose CBA expires in the next 

year. Specifically, of the seven employers contributing to the Fund pursuant to a CBA, four have 

CBAs that expire during the 2018 plan year. Of the Fund's approximately 155 active participants, 

these four employers, in the aggregate, employ approximately 112 actives participants. If the 

Board were to require a one-time contribution increase of 5%, it would only raise an additional 

$36,800 from these four employers during the 2018 plan year, assuming the employers agree to 

adopt this Schedule. However, the Board believes that the more likely result is that the employers 

will choose to withdraw from the Fund and would likely be unable to pay their withdrawal liability 

in full or, to the extent applicable, would not pay their full withdrawal liability due to operation of 

limitations provided in ERISA Section 4219 (c)(l)(B). If all contributing employers agreed to a 

one-time 5% increase, including the employers that participate pursuant to written agreement other 

than a CBA, the increased assets would total only $81,000. The Board has concluded that this de 

minimus increase is insufficient to justify the risk that the majority of these employers will 

withdraw from the Fund and be unable to pay their withdrawal liability in full. 

As a result, contribution rates will remain at the rates in the CBA in effect at the time this Schedule 

is adopted 

C. Benefits. 

The following adjustable benefits shall be eliminated for all participants who have an 

Annuity Starting Date on or after May 15, 2018 and did not earn at least 120 Hours of Service 

during each of the three years (defined as 12 consecutive month periods) ending with the month 

immediately preceding the participant's Annuity Starting Date: 

1. Disability Benefit not yet in pay status. 

2. 60-Month Certain guarantee. 

3. Subsidized Joint & Survivor Annuity for married Participants. 

4. Commencement of new retirement benefits will not be permitted prior to age 55. 

5. Pre-Retirement Death, Accidental Death and Dismemberment Benefits except as required 

by law for surviving spouses. 

6. The subsidized portion of the Early Retirement Benefit and Service Pension for all years 

of service. 

7. Post-Retirement death benefits for Participants and Beneficiaries. 

8. Lump sum payment option for the benefits earned prior to April I, 2012. 

Note: Items 5 and 8 are eliminated for all Participants with an Annuity Starting Date on or 

after May 15, 2018 regardless of the number of hours worked. 
050

As of April 30 2017, there were approximately 220 participants actively working in 

covered employment. The Board of Trustees believes that eliminating these adjustable benefits 

for active participants will likely cause the mass retirement of most of those 92 participants who 

are currently eligible to retire or will be eligible to retire before June 1, 2018. The Fund's actuary 

has determined that while the cost of continuing to provide these benefits to active participants is 

approximately $5.6 million, if all active participants who are eligible to currently retire, do retire, 

the Fund's benefit liability would be increased by approximately $6.6 million, more than offsetting 

the entire cost-savings of the adjustable benefits. Moreover, the Board believes that were a mass 

retirement to occur, it is more likely than not to result in very little, if any, replacement hiring by 

contributing employers, and the further contraction of the covered industry. Specifically both the 

Union and contributing employers have noted significant difficulty in hiring new drivers to filJ 

current vacancies. If aJl the eligible active participants were to retire within the next 30 days, it is 

extremely unlikely that even half of these retirees will be replaced, leaving both the Fund and the 

industry in an even worse position. 

IV. Actions to be Taken by the Board of Trustees 

The Fund's Board of Trustees will review the Fund's Rehabilitation Plan, including the 

Schedules, as required by law and will update the Rehabilitation Plan as required by law. In 

addition, the Board of Trustees will consider all options available to the Fund, including but not 

limited to, obtaining an amortization period extension under Section 43 l(d) of the Internal 

Revenue Code, reducing Fund expenditures that may assist the Fund in forestalling insolvency, or 

exploring a merger with another plan. 

V. Annual Standards for Meeting the Requirements of this Rehabilitation Plan 

With the implementation of these changes, the Board of Trustees will make adequate 

progress, to the extent based on reasonable financial markets activity and other relevant factors, 

toward enabling the Fund to forestall insolvency and will monitor the Fund's contribution rates 

annually as compared to the costs of operating the Fund. 
051

RESOLUTION CONFIRMING ADOPTION OF 

REHABILITATION PLAN FOR THE 

DEFINED BENEFIT PLAN OF THE MID-JERSEY TRUCKING INDUSTRY AND TEAMSTERS LOCAL 

701 PENSION AND ANNUITY FUND 

FOR THE2017PLANYEAR 

WHEREAS, pursuant to Section 305 of the Employee Retirement Income Security Act 

("ERISA") as amended by the Pension Protection Act of 2006 ("PPA"), the Defined Benefit Plan 

of the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and Annuity Fund ("Plan") 

was certified to be in Critical Status for the Plan Year beginning June 1, 2017. 

WHEREAS, the PP A requires pension plans in Critical Status to adopt a Rehabilitation Plan 

aimed at restoring the financial health of the plan. 

Now THEREFORE, this is to confirm that we, the Board of Trustees, adopted the 

Rehabilitation Plan attached hereto, on April 9, 2018. 

/~ 9_ 7 ~/'~ Date: 7- I' ~. ' ---'-----~---

Date: _ __,i,,/---'-)-"-1;"'-'--'); f:.,______ 

367446vl 

20583168v6 
EXHIBIT 6 

DEMONSTRATION THAT THE 

PROPOSED SUSPENSION SATISFIES 

STATUTORY REQUIREMENTS 

 

052
MID-JERSEY TRUCKING INDUSTRY AND LOCAL 701 PENSION FUND 

APPLICATION FOR SUSPENSION OF BENEFITS 

SECTION 4.01(2)(a) – Description of each benefit based on disability 

Below is an excerpt from pages 18 and 19 of the Fund’s plan document describing the disability 

benefits of those currently receiving disability benefits under the Plan and also for those projected 

to become disabled in the future under the Plan. 

Section 4.12. Disability Pension – Eligibility 

A Participant shall be entitled to retire on a Disability Pension on and after January 1, 1975, if he 

meets the following requirements: 

(a) He has not attained age 53; and 

(b) He has at least one hundred twenty (120) Pension Credits; and 

(c) He has completed at least one hundred twenty (120) Hours of Service in the twelve 

(12) consecutive Month period preceding the onset of his disability; and 

(d) He has been determined to be permanently and totally disabled by the Trustees as 

defined in Section 4.14. 

Section 4.13. Disability Pension – Amount 

The monthly amount of the Disability Pension is the amount of the Early Retirement Pension and 

is computed as if the Participant had attained the age of fifty-three (53). 

A Disability Pension shall be payable commencing with the first day of the seventh Month 

following the onset of the disability and continuing thereafter for life, so long as the permanent 

and total disability continues. 

Notwithstanding any provision of the Plan to the contrary, the Disability Pension will be paid as a 

Qualified Joint and Survivor Annuity, or subject to waiver in accordance with Section 5.02 or any 

other benefit having an equivalent Actuarial Present Value benefit payment form that would be 

available to the Participant under the Plan if he or she were retiring at Normal Retirement Age (or, 

if the Participant is then eligible for it as described in Section 4.04, Early Retirement). 

For the benefit conversion factors to be used when the Participant is retiring with a Disability 

Pension, see Section 5.10. 

052.a
Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

Page 2

Section 4.14. Definition of Total and Permanent Disability 

An Employee shall be deemed to be permanently and totally disabled only if the Participant is 

qualified for a disability income benefit under the Federal Social Security Act. 

Section 4.15. Physical Examination 

A Participant applying for a 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 until his 53rd birthday. The Trustees may in their sole and 

absolute discretion require, or accept, as sole proof of total disability or continued total disability 

a determination by the Social Security Administration that the Employee is entitled to a Social 

Security Disability benefit. 

052.b
Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /Plan Number: 13-6043977 /001 

Below is a summary of the enclosed sample calculations: 

 

Guarantee 

Based 

Limitation - 

Full 

Guarantee 

Based 

Limitation 

- Partial 

Benefits 

Paid on 

Disability

Age-Based 

Limitations 

(ages 75-

79) 

Age-Based 

Limitation 

(over age 

80) 

Current Retiree or 

Beneficiary None None Sample 1 Sample 3 Sample 4 

Spouse of Current 

Retiree None None None Sample 5 Sample 6 

Future Retiree None None Sample 2 None None 

There are no participants impacted by the scenarios where “None” appears in the chart. 

All current retirees receiving their benefits under the disability provision have no contingent 

beneficiary. 

053
153348980

Sample 1

Disabled

1. Date of Birth 4/7/1944

2. Monthly Benefit $856.80

3. Pension Credits 207.00

4. Payment Form Life Annuity with 60 

Payments Guaranteed 

5. Early Retirement Factor 0.5600

6. Payment Form Factor 1.0000

7. Delayed Retirement Factor1 1.0000

8. Vesting Percentage 100.00%

9. Proposed Benefit After Suspension: $12.75 x 

(3)x(5)x(6)x(7)x(8), not more than (2)

$856.80

10. Proposed Suspension: (2) - (9) $0.00

11. Disability Based Limitation Applies

12. Guarantee Based Limitation

a) Nominal Accrual Rate: (2) / [(3)/12] / (7) $49.67

b) PBGC Guarantee Benefit $616.69

13. Maximum Allowable Suspension: $0, if (11) is "Applies", 

or (2) - 110% of (12)(b), not less than $0 $0.00

14. Suspension Amount: minimum of (10) and (13) $0.00

15. Suspension Effective Date 4/1/2019

16. Age on Suspension Effective Date 74.9167

17. Months Until Age 802

 60

18. Applicable Percentage: (12) / 60, not greater than 100% 100.000%

19. Final Benefit Suspension: (14) x (19) $0.00

20. Monthly Benefit After Suspension: (2) - (19) $856.80

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[samples.xlsx]1

1

 Applicable if a member retired after age 60 and did not work in suspendable 

employment.

2

 Number of months during the period beginning with the month after the month in which 

the suspension of benefits is effective and ending with the month during which the 

member attains age 80, per Regulation 1.432(e)(9)-1(d)(3).

054
152823131

Sample 2

Future Retiree - Benefits Based on Disability

1. Date of Birth 12/4/1976

2. Monthly Accrued Benefit as of December 31, 2017 (unadjusted for 

form and early/late commencement)

$4,332.87

3. Pension Credits as of December 1, 2017 223.00

BENEFITS PAYABLE IN UNREDUCED FORM

4. Proposed Benefit After Suspension: $17.50 x (3), not more than (2) $3,902.50

5. Proposed Suspension: (2) - (4) $430.37

6. Disability Based Limitation Applies

7. Guarantee Based Limitation

a) Nominal Accrual Rate: (2) /[(3)/12] $233.16

b) PBGC Guarantee Benefit $664.35

8. Maximum Allowable Suspension: $0 if (6) is "Applies", otherwise 

(2) - 110% of (12)(b), not less than $0

$0.00

9. Suspension Amount: minimum of (10) and (13) $0.00

10. Suspension Effective Date 4/1/2019

11. Age on Suspension Effective Date 42.2500

12. Months Until Age 801 452

13. Applicable Percentage: (12) / 60, not greater than 100% 100.000%

14. Final Benefit Suspension: (14) x (19) $0.00

15. Monthly Benefit After Suspension: (2) - (19) $4,332.87

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[samples.xlsx]2

1

 Number of months during the period beginning with the month after the month in which 

the suspension of benefits is effective and ending with the month during which the member 

attains age 80, per Regulation 1.432(e)(9)-1(d)(3).

055
Member SSN: 139307111

Sample 3

Retiree - Age Based Limitation (75-79)

1. Date of Birth 3/13/1941

2. Monthly Benefit $12,213.90

3. Pension Credits 420.00

4. Payment Form Life Annuity with 60 

Payments Guaranteed 

5. Early Retirement Factor 1.0000

6. Payment Form Factor 1.0000

7. Delayed Retirement Factor1

 1.0000

8. Vesting Percentage 100.00%

9. Proposed Benefit After Suspension: $12.75 x 

(3)x(5)x(6)x(7)x(8), not more than (2)

$5,355.00

10. Proposed Suspension: (2) - (9) $6,858.90

11. Disability Based Limitation N/A

12. Guarantee Based Limitaiton

a) Nominal Accrual Rate: (2) / [(3)/12] / (7) $348.97

b) PBGC Guarantee Benefit $1,251.25

13. Maximum Allowable Suspension: (2) - 110% of (12)(b), 

not less than $0

$10,837.53

14. Suspension Amount: minimum of (10) and (13) $6,858.90

15. Suspension Effective Date 4/1/2019

16. Age on Suspension Effective Date 78.0000

17. Months Until Age 802

 23

18. Applicable Percentage: (12) / 60, not greater than 100% 38.333%

19. Final Benefit Suspension: (14) x (19) $2,629.25

20. Monthly Benefit After Suspension: (2) - (19) $9,584.65

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[samples.xlsx]3

1

 Applicable if a member retired after age 60 and did not work in suspendable 

employment.

2

 Number of months during the period beginning with the month after the month in 

which the suspension of benefits is effective and ending with the month during which 

the member attains age 80, per Regulation 1.432(e)(9)-1(d)(3).

056
Member SSN: 117284032

Sample 4

Retiree - Age Based Limitation (over age 80)

1. Date of Birth 8/10/1938

2. Monthly Benefit $6,859.12

3. Pension Credits 236.00

4. Payment Form 100% Joint-andSurvivor Annuity 

5. Early Retirement Factor 1.0000

6. Payment Form Factor 0.8100

7. Delayed Retirement Factor1

 1.0000

8. Vesting Percentage 100.00%

9. Proposed Benefit After Suspension: $12.75 x 

(3)x(5)x(6)x(7)x(8), not more than (2)

$2,437.29

10. Proposed Suspension: (2) - (9) $4,421.83

11. Disability Based Limitation N/A

12. Guarantee Based Limitation

a) Nominal Accrual Rate: (2) / [(3)/12] / (7) $348.77

b) PBGC Guarantee Benefit $703.08

13. Maximum Allowable Suspension: (2) - 110% of (12)(b), 

not less than $0

$6,085.73

14. Suspension Amount: minimum of (10) and (13) $4,421.83

15. Effective Suspension Date 4/1/2019

16. Age on Effective Suspension Date 80.5833

17. Months Until Age 802

 0

18. Applicable Percentage: (12) / 60, not greater than 100% 0.000%

19. Final Benefit Suspension: (14) x (19) $0.00

20. Monthly Benefit After Suspension: (2) - (19) $6,859.12

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[samples.xlsx]4

2

 Number of months during the period beginning with the month after the month in 

which the suspension of benefits is effective and ending with the month during which 

the member attains age 80, per Regulation 1.432(e)(9)-1(d)(3).

1

 Applicable if a member retired after age 60 and did not work in suspendable 

employment.

057
Member SSN: 151324540

Sample 5

Contingent Beneficiary of a Retiree - Age Based Limitation (75-79)

1. Date of Birth (Member) 9/16/1939

2. Date of Birth (Beneficiary) 6/12/1942

3. Monthly Benefit Payable to Member $3,104.55

4. Payment Form Joint-andSurvivor 

Annuity 

5. Monthly Benefit Payable to Beneficiary $3,079.71

6. Pension Credits 115.0000

7. Early Retirement Factor 1.0000

8. Payment Form Factor 1.0000

9. Continuation Factor 0.9920

10. Delayed Retirement Factor1

 1.0000

11. Vesting Percentage 100.00%

12. Benefit After Proposed Suspension (to member): $12.75 x 

(6)x(7)x(8)x(10)x(11), not more than (3)

$1,466.25

13. Benefit After Proposed Suspension (to beneficiary): (9) x (12) $1,454.52

14. Proposed Suspension (Beneficiary): (5) - (13) $1,625.19

15. Disability Based Limitation N/A

16. Guarantee Based Limitation

a) Nominal Accrual Rate (Beneficiary): (5) /[(6)/12] / (10) $321.36

b) PBGC Guarantee Benefit (Beneficiary) $342.60

17. Maximum Allowable Suspension: (5) - 110% of (16)(b), not less than $0 $2,702.85

18. Suspension Amount: minimum of (14) and (17) $1,625.19

19. Suspension Effective Date 4/1/2019

20. Member's Age on Suspension Effective Date 79.5000

21. Months Until Age 802

 (member) 5

22. Applicable Percentage: (21) / 60, not greater than 100% 8.333%

23. Final Benefit Suspension: (18) x (22) $135.43

24. Monthly Benefit After Suspension Payable to Beneficiary: (5) - (23) $2,944.28

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[samples.xlsx]5

1

 Applicable if a member retired after age 60 and did not work in suspendable employment.

2

 Number of months during the period beginning with the month after the month in which the 

suspension of benefits is effective and ending with the month during which the member attains 

age 80, per Regulation 1.432(e)(9)-1(d)(3).

058
Member SSN: 137287925

Sample 6

Contingent Beneficiary of a Retiree - Age Based Limitation (over age 80)

1. Date of Birth (Member) 3/31/1938

2. Date of Birth (Beneficiary) 8/1/1943

3. Monthly Benefit Payable to Member $4,129.64

4. Payment Form 100% Joint-andSurvivor Annuity 

5. Monthly Benefit Payable to Beneficiary $4,129.64

6. Pension Credits 142.00

7. Early Retirement Factor 1.0000

8. Payment Form Factor 0.7680

9. Delayed Retirement Factor1

 1.0000

10. Vesting Percentage 100.00%

11. Benefit After Proposed Suspension (to member): $12.75 x 

(6)x(7)x(8)x(9)x(10), not more than (3)

$1,390.46

12. Benefit After Proposed Suspension (to beneficiary): 100% of (11) $1,390.46

13. Proposed Suspension (Beneficiary): (5) - (12) $2,739.18

14. Disability Based Limitation N/A

15. Guarantee Based Limitation

a) Nominal Accrual Rate (Beneficiary): (5) / [(6)/12] / (9) $348.98

a) PBGC Guarantee Benefit (Beneficiary) $423.04

16. Maximum Allowable Suspension: (5) - 110% of (15)(b), not less 

than $0

$3,664.30

17. Suspension Amount: minimum of (13) and (16) $2,739.18

18. Suspension Effective Date 4/1/2019

19. Member's Age on Suspension Effective Date 81.0000

20. Months Until Age 802

 (member) 0

21. Applicable Percentage: (20) / 60, not greater than 100% 0.000%

22. Final Benefit Suspension: (17) x (21) $0.00

23. Monthly Benefit After Suspension Payable to Beneficiary: (5) - (22) $4,129.64

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[samples.xlsx]6

1

 Applicable if a member retired after age 60 and did not work in suspendable employment.

2

 Number of months during the period beginning with the month after the month in which the 

suspension of benefits is effective and ending with the month during which the member attains 

age 80, per Regulation 1.432(e)(9)-1(d)(3).

059
060

EXHIBIT 7 

DEMONSTRATION THAT PROPOSED 

SUSPENSION IS REASONABLY 

ESTIMATED TO ENABLE THE PLAN 

TO AVOID INSOLVENCY 
061

MID-JERSEY TRUCKING INDUSTRY 

AND LOCAL 701 PENSION FUND 

APPLICATION FOR BENEFIT 

SUSPENSIONS 

Information Required by Section 4.02 of 

Revenue Procedure 2017-43 

June 2018 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 ®~'• 

~1 

FACT 
062

Actuarial Statement 

On August 29, 2017, the Plan was certified to be in critical and declining status as defined in 

§432(b)(6) of the Internal Revenue Code for the plan year beginning June 1, 2017. The Plan is 

not expected to emerge from critical status. 

The Trustees are submitting an application to the Treasury to suspend benefits under §432(e)(9). 

The purpose of this report is to provide information required by Section 4.02 of the Revenue 

Procedure 2017-43, the demonstration that the proposed suspension is reasonably estimated to 

enable the Plan to avoid insolvency. 

Item 1 of this report contains an illustration, prepared on a deterministic basis, showing that for 

each plan year during the extended period described in §l.432(e)(9)-l(d)(5)(ii)(C), the Plan's 

solvency ratio - the ratio of the Plan's available resources (as defined in §418E(b)(3)) to the 

scheduled benefit payments under the Plan for the plan year - is projected to be at least 1.0. 

The full list of actuarial assumptions and methods and the supporting documentation is in the 

separate report labeled "Appendix B - Information on Actuarial Assumptions and Methods". 

The undersigned actuaries of First Actuarial Consulting, Inc. meet the Qualification Standards of 

the American Academy of Actuaries to render the actuarial opinion contained in this report. 

In our opinion, all the calculations were performed in accordance with our understanding of 

generally accepted actuarial principles and practices and this report, to our knowledge, is complete 

and accurate and complies with the reasonable actuarial assumption rules. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 •~•• FACT 

~~ 
063

Item 1 - Pro,iection o,f Plan's Solvency Ratio 

Plan Year ending in 20181 2019 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets - beginning 

of period 233,891,068 231,230,025 

Employer Contributions 248,615 1,411,380 

Withdrawal Liability to past wdl 0 1,375,142 

Payments attributable to future wdl 0 0 

Benefit Payments (5,362,665) (30,397,838) 

Administrative Expenses (133,333) (760,500) 

Net Investment Return 2,586,340 14,563,660 

Market Value of Assets - end of 

Plan Year 231,230,025 217,421,869 

Solvency Ratio 43.61 7.61 

Plan Year ending in 2022 2023 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets - beginning 

of Plan Year 204,937,946 198,620,510 

Employer Contributions 1,386,635 1,363,556 

Withdrawal Liability to past wdl 1,375,142 1,375,142 

Payments attributable to future wdl 0 0 

Benefit Payments (21,436,144) (20,986,764) 

Administrative Expenses (742,954) (754,099) 

Net Investment Return 13,099,885 12,689,914 

Market Value of Assets - end of 

Plan Year 198,620,510 192,308,259 

Solvency Ratio 9.56 9.46 

1 Reflects the period from April 1, 2018 through May 31, 2018. 

Other columns reflect the periods from June 1st through May 31st. 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N: \Fact\Local 701 \Suspension application\work\[cashjlow SoB.x~~';f· 7) 

2020 

6.71% 

217,421,869 

1,369,456 

1,375,142 

0 

(22,165,711) 

(721,158) 

13,913,234 

211,192,832 

9.81 

2024 

6.71% 

192,308,259 

1,340,478 

1,375,142 

0 

(20,535,145) 

(765,410) 

12,280,360 

186,003,684 

9.36 

2021 

6.71% 

211,192,832 

1,416,876 

1,375,142 

0 

(21,822,923) 

(731,975) 

13,507,994 

204,937,946 

9.68 

2025 

6.71% 

186,003,684 

1,254,953 

1,375,142 

0 

(20,108,804) 

(776,891) 

11,868,372 

179,616,456 

9.25 

~1 

FACT 
064

Item 1 - Projection of Plan's Solvency Ratio 

(cont'd) 

Plan Year ending in 2026 2027 

Assumed Rate of Return 6.71% 6.71% 

Market Value of Assets - beginning 

of Plan Year 179,616,456 173,288,834 

Employer Contributions 1,260,770 1,260,770 

Withdrawal Liability to past wdl 1,375,142 1,375,142 

Payments attributable to future wdl 0 0 

Benefit Payments (19,630,625) (19,149,103) 

Administrative Expenses (788,545) (800,373) 

Net Investment Return 11,455,636 11,046,811 

Market Value of Assets - end of 

Plan Year 173,288,834 167,022,081 

Solvency Ratio 9.15 9.05 

Plan Year ending in 2030 2031 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets - beginning 

of Plan Year 157,838,735 153,335,051 

Employer Contributions 1,138,949 1,140,778 

Withdrawal Liability to past wdl 1,375,142 1,375,142 

Payments attributable to future wdl 0 0 

Benefit Payments (17,789,010) (17,322,498) 

Administrative Expenses (836,933) (849,487) 

Net Investment Return 11,608,168 11,276,794 

Market Value of Assets - end of 

Plan Year 153,335,051 148,955,780 

Solvency Ratio 8.87 8.85 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N: \F act\Local 701 \Suspension application \work\[ cash flow SoB.xls~wc. 7) 

2028 

7.75% 

167,022,081 

1,251,170 

1,375,142 

0 

(18,738,803) 

(812,379) 

12,288,373 

162,385,584 

8.91 

2032 

7.75% 

148,955,780 

1,122,787 

1,371,076 

0 

(16,800,918) 

(862,229) 

10,956,263 

144,742,759 

8.87 

2029 

7.75% 

162,385,584 

1,228,092 

1,375,142 

0 

(18,271,312) 

(824,564) 

11,945,793 

157,838,735 

8.89 

2033 

7.75% 

144,742,759 

1,164,778 

1,358,876 

0 

(16,369,461) 

(875,162) 

10,647,126 

140,668,916 

8.84 

~i 

FACT 
065

Item 1 - Projection of Plan's Solvency Ratio 

(cont'd) 

Plan Year ending in 2034 2035 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets - beginning 

of Plan Year 140,668,916 136,755,796 

Employer Contributions 1,162,949 1,156,776 

Withdrawal Liability to past wdl 1,358,876 1,358,876 

Payments attributable to future wdl 0 0 

Benefit Payments (15,895,832) (15,397,647) 

Administrative Expenses (888,290) (901,614) 

Net Investment Return 10,349,177 10,064,459 

Market Value of Assets - end of 

Plan Year 136,755,796 133,036,646 

Solvency Ratio 8.85 8.88 

Plan Year ending in 2038 2039 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets - beginning 

of Plan Year 126,310,040 122,273,228 

Employer Contributions 1,171,853 1,171,853 

Withdrawal Liability to past wdl 339,719 0 

Payments attributable to future wdl 0 0 

Benefit Payments (13,878,848) (13,375,780) 

Administrative Expenses (942,799) (956,940) 

Net Investment Return 9,273,263 8,966,192 

Market Value of Assets - end of 

Plan Year 122,273,228 118,078,553 

Solvency Ratio 9.10 9.14 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

N:\Fact\Local 701 \Suspension application\work\[cashjlow SoB.xli~l&f· 7) 

2036 

7.75% 

133,036,646 

1,156,776 

1,358,876 

0 

(14,888,805) 

(915,138) 

9,795,419 

129,543,774 

8.94 

2040 

7.75% 

118,078,553 

1,171,853 

0 

0 

(12,876,185) 

(971,295) 

8,659,907 

114,062,833 

9.17 

2037 

7.75% 

129,543,774 

1,171,853 

1,358,876 

0 

(14,380,083) 

(928,866) 

9,544,486 

126,310,040 

9.01 

2041 

7.75% 

114,062,833 

1,162,253 

0 

0 

(12,351,916) 

(985,864) 

8,368,068 

110,255,374 

9.23 

FACT 

~~ 
066

Item 1 - Projection of Plan's Solvency Ratio 

(cont'd) 

Plan Year ending in 2042 2043 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets - beginning 

of Plan Year 110,255,374 106,577,084 

Employer Contributions 1,162,253 1,162,253 

Withdrawal Liability to past wdl 0 0 

Payments attributable to future wdl 0 0 

Benefit Payments (11,928,707) (11,447,643) 

Administrative Expenses (1,000,652) (1,015,662) 

Net Investment Return 8,088,816 7,821,808 

Market Value of Assets - end of 

Plan Year 106,577,084 103,097,840 

Solvency Ratio 9.24 9.31 

Plan Year ending in 2046 2047 

Assumed Rate of Return 7.75% 7.75% 

Market Value of Assets - beginning 

of Plan Year 96,768,757 93,920,200 

Employer Contributions 1,162,253 1,162,253 

Withdrawal Liability to past wdl 0 0 

Payments attributable to future wdl 0 0 

Benefit Payments (10,062,301) (9,620,281) 

Administrative Expenses (1,062,056) (1,077,986) 

Net Investment Return 7,113,547 6,909,295 

Market Value of Assets - end of 

Plan Year 93,920,200 91,293,481 

Solvency Ratio 9.62 9.76 

Actuarial Accrued Liability ( eoy) 

Funded Percentage ( eoy) 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN JPN: 13-6043977 /001 

N:\Fact\Local 701 \Suspension application\work\[cashjlow SoB.xlsx]4.02 (ex. 7) 

®~36 

2044 

7.75% 

103,097,840 

1,162,253 

0 

0 

(10,967,388) 

(1,030,897) 

7,570,186 

99,831,994 

9.40 

2048 

7.75% 

91,293,481 

1,162,253 

0 

0 

(9,190,698) 

(1,094,156) 

6,721,744 

88,892,624 

9.93 

2045 

7.75% 

99,831,994 

1,162,253 

0 

0 

(10,513,213) 

(1,046,360) 

7,334,083 

96,768,757 

9.50 

2049 

7.75% 

88,892,624 

1,160,424 

0 

0 

(8,780,084) 

(1,110,568) 

6,550,882 

86,713,278 

10.12 

70,175,466 

123.57% 

~1 

FACT