Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

EXHIBIT 20

ACTUARIAL VALUATION REPORTS

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MID-JERSEY TRUCKING INDUSTRY AND TEAMSTERS LOCAL 701 PENSION AND 

ANNUITY FUND 

NOTICE OF APPLICATION FOR APPROVAL OF A PROPOSED REDUCTION OF BENEFITS 

NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS 

On [insert date], the Board of Trustees of the Defined Benefit Plan of the Mid-Jersey Trucking Industry and 

Teamsters Local 701 Pension and Annuity Fund (“Plan”) submitted an application to the U.S. Treasury 

Department for approval to reduce benefits under the Plan. This type of benefit reduction is allowed by the 

Federal law called the Multiemployer Pension Reform Act of 2014. 

You are getting this notice because you have a pension benefit under the Plan. The end of this notice 

describes the proposed reduction, if any, of your monthly payments.1 This notice will also answer the 

following questions for you— 

1. Why is the Board of Trustees proposing to reduce benefits? 

2. What will happen if the Plan runs out of money? 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

4. What are the proposed reductions in benefits? 

5. What comes next? 

1. Why is the Board of Trustees proposing to reduce benefits? 

The Plan’s actuary estimated that, unless benefits are reduced, the Plan will not have enough money to

pay benefits in the year ending in 2030. This estimate is based on how much money the actuary expects

the Plan to receive and to pay out each year. The Plan’s actuary estimated that, with the reduction of 

benefits that the Board of Trustees has proposed, the Plan should not run out of money. 

2. What will happen if the Plan runs out of money? 

If the Plan does not have enough money to pay benefits, then only the amount guaranteed by the Pension

Benefit Guaranty Corporation (“PBGC”) will be paid. You can find the amount of your benefit that is 

guaranteed by PBGC at the end of this notice. 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

Under Federal law, the Board of Trustees must apply the following rules to the proposed reduction— 

• The total reduction in everybody’s benefits must be estimated to be large enough to keep the 

Plan from running out of money but not larger than needed to do that. 

• Your monthly benefit and the benefit of your beneficiary cannot be reduced below 110% of the 

amount guaranteed by PBGC. 

• Disability benefits (as defined under the Plan) cannot be reduced. 

• The benefits of people who are at least 80 years old on April 30, 2019 and their beneficiaries 

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that 

represent Plan participants and to all contributing employers. 

433
cannot be reduced. 

• The benefits of people who are at least 75 years old on April 30, 2019 and their beneficiaries 

are partially protected, and the closer the person is to age 80 the less the benefits can be 

reduced. 

• The reduction of benefits must be spread fairly among the people who have a pension benefit 

under the Plan. 

In deciding whether the proposed reduction is spread fairly, the Board of Trustees took into account the 

significant disparity of benefit amounts among participants depending upon specific years that Pension

Credits were earned, the likelihood that Active participants would withdraw support for the Plan, 

accelerating employer withdrawals from the Plan and increasing the risk of additional benefit reductions for 

participants in and out of pay status.

4. What are the proposed reductions in benefits? 

The Board of Trustees proposes the following reduction of benefits: The monthly benefit of Non-Active

participants will be the lesser of (1) $12.75 per Pension Credit ($153 per year of service), or (2) the current 

monthly pension amount determined before the suspension. The monthly accrued benefit of Active 

participants will be the lesser of (1) $17.50 per Pension Credit ($210 per year of service) earned through 

December 31, 2017, or (2) the current monthly accrued pension amount determined before the suspension,

plus regular accruals earned after December 31, 2017. An Active participant is a participant who (1) was 

not in pay status as of January 1, 2018, (2) 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. The 

proposed suspensions will remain in effect indefinitely. For example, if you are a Non-Active Participant 

and you have 20 years of service (240 Pension Credits), your benefit will be capped at $3,060 per month. 

5. What comes next? 

Approval or denial of the application by the Treasury Department 

The Treasury Department will review the application to see whether it meets all of the legal requirements 

under Federal law. If the application meets all of those requirements, the Treasury Department is required 

to approve the application. If the application does not meet the legal requirements, the Treasury 

Department will deny the application. The Treasury Department will have until [insert date 225 days after 

the complete application is submitted] to make a decision. 

You can get information from the Treasury Department 

More information about the proposed benefit reductions and a copy of the application will be available at 

www.treasury.gov/mpra. 

The application will be available on that website within 30 days after the Treasury Department receives it. 

The application includes more information about the proposed reduction, including details about: 1) the 

Plan actuary’s certification that the Plan will run out of money (that is, that the Plan is in “critical and declining 

status”); 2) how the proposed reduction would satisfy the requirement that it be large enough so that the 

Plan is estimated not to run out of money, while not being larger than needed; and 3) the sensitivity of these 

estimates to the assumptions used. 

The application describes the steps the Board of Trustees has already taken to keep the Plan from running 

434
out of money and why the Board of Trustees believes that a benefit reduction is the only remaining option 

to keep the Plan from running out of money. In addition, the application explains why the Board of Trustees 

believes that the proposed reduction is spread fairly among the people who have a pension benefit under 

the Plan. 

The Treasury Department website will also provide updated information on the application, such as whether 

the application has been withdrawn. 

For further information and assistance you can also write to the Treasury Department at the following 

address: 

 Department of the Treasury 

 Attn: MPRA Office, Room 1204 

 1500 Pennsylvania Avenue, NW 

 Washington, DC 20220 

You can comment on the application to reduce benefits 

You will be able to submit a comment on the application by going to 

www.treasury.gov/mpra. Comments may also be mailed to the Treasury Department, at the address listed 

above. All interested parties can make comments, and the comments will be publicly available. 

Retiree Representative 

If a plan has 10,000 or more participants, the Board of Trustees must select a retiree representative to 

advocate for the interests of retirees, beneficiaries, and deferred vested participants as part of this process. 

A plan is required to pay the reasonable expenses of the retiree representative. 

The Board of Trustees is not required to select a retiree representative, because the Plan has fewer than 

10,000 participants. The Board of Trustees has not chosen to select a retiree representative. 

Vote on the proposed benefit reduction 

If the application for the proposed reduction of benefits is approved by the Treasury Department, then you 

will have the opportunity to vote on the proposed reduction. Unless a majority of all participants and 

beneficiaries of the Plan vote to reject the reduction, the Treasury Department must allow the reduction of 

benefits to take effect. This means that not voting counts the same as a vote to approve the reduction. 

Your right to see Plan documents 

You may want to review Plan documents to help you understand your rights and the proposed reduction to

your benefits. The Plan administrator must respond to your request for the following documents within 30 

days: 

• The Plan document (including any amendments adopted to reflect an authorized reduction of 

benefits), trust agreement, and other documents governing the Plan (such as collective 

bargaining agreements). 

• The Plan’s most recent summary plan description (SPD or plan brochure) and any summary 

of material modifications. 

• The Plan’s Form 5500 annual reports, including the accountant’s report and audited financial 

statements, filed with the U.S. Department of Labor during the last six years. 

435
• The annual funding notices furnished by the Plan during the last six years. 

• Actuarial reports, including reports prepared in anticipation of the benefit reduction, furnished to 

the Plan within the last six years. 

• The Plan’s current rehabilitation plan, including contribution schedules, and, if the proposed 

benefit reduction goes into effect, annual plan-sponsor determinations that all reasonable 

measures to avoid running out of money continue to be taken and that the Plan would run out 

of money if there were no benefit reductions. 

• Any quarterly, semi-annual, or annual financial reports prepared for the Plan by an investment 

manager, fiduciary, or other advisor and furnished to the Plan within the last six years. 

The Plan administrator may charge you the cost per page to the Plan for the cheapest way of copying 

documents, but cannot charge more than 25 cents per page. The Plan’s Form 5500 Annual Return/Report 

of Employee Benefit Plan is also available free of charge at www.dol.gov/ebsa/5500main.html. Some of 

the documents also may be available for examination, without charge, at the Plan administrator’s office, 

your worksite or union hall. 

Your right to challenge incorrect calculations 

If you think the Plan miscalculated the reduction to your benefits, then you have the right to submit a claim 

to the Plan to have the calculation corrected. The Plan’s SPD tells you how to submit a claim. The SPD 

also describes your right to have a court review the Plan’s final decision on your claim. 

If you believe the information used to calculate your estimate at the end of this notice is wrong, please 

contact the Plan office at 732-297-3900, or 2003 U.S. Route 130, North Brunswick, NJ 08902 or email 

gprezioso@midjerseyfunds.org. 

436
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

<<Name>> 

<<Address1>> 

<<Address2>> 

Your current monthly benefit is $6,975.80. Under the proposed reduction your monthly benefit will be 

reduced to $3,060.00 beginning on April 1, 2019. 

The proposed reduction is permanent, unless the Plan is amended in the future reinstating some or all of 

the suspended benefit. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts on 

April 1, 2019. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might 

be different. 

This estimate is based on the following information from Plan records: 

• You have 240 Pension Credits (20 years of service) under the Plan. 

• You will be 74 years on April 30, 2019. 

• The portion of your benefit that is based on disability is $0. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated to 

be $715.00. If the benefit suspensions are not approved, this is the estimated amount of benefit you will 

receive once the Plan runs out of money, which is currently projected to occur in 2030. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

<<Name>> 

<<Address 1>> 

<<Address 2>> 

 

If you start receiving your benefit on October 1, 2031 in the form of a Life Annuity, your monthly benefit 

which you earned through December 31, 2017 without the proposed reduction would be $4,413.09. Under 

the proposed reduction your monthly benefit earned through December 31, 2017 in the same form would 

be reduced to $3,990.00.

1

The proposed reduction is permanent, unless the Plan is amended in the future reinstating some or all of 

the suspended benefit. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts on 

April 1, 2019. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might 

be different. 

This estimate is based on the following information from Plan records: 

• You have 228 Pension Credits (19 years of service) earned through December 31, 2017 under the 

Plan. 

• You will be 47 years and 7 months old on April 30, 2019. 

• The portion of your benefit that is based on disability is $0. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated to 

be $679.25 based on the service you earned through December 31, 2017. 

 

1

 These numbers are just estimates. The actual amount you receive will depend on things like how long you work and when 

you begin receiving payments. For more information, see Summary Plan Description. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

<<Name>> 

<<Address 1>> 

<<Address 2>> 

Your benefit without the proposed reduction as of April 1, 2019 in the form of a Life Annuity is $1,098.22 

for service through December 31, 2017. Under the proposed reduction your monthly benefit in the same 

form will be reduced to $1,045.63.

1

The proposed reduction is permanent, unless the Plan is amended in the future reinstating some or all of 

the suspended benefit. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts on 

April 1, 2019. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might 

be different. 

This estimate is based on the following information from Plan records: 

• You have 59.75 Pension Credits (4 years and 11.75 months of service) under the Plan earned 

through December 31, 2017. 

• You will be 61 years and 7 months old on April 30, 2019. 

• The portion of your benefit that is based on disability is $0. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated to 

be $178.01 based on service earned through December 31, 2017. 

 

 

1

 These amounts might be different if you take your benefit in a different form. For example, if you retire from an Active 

status and elect a 50% Joint-and-Survivor Annuity and your spouse is 3 years younger than you, your monthly benefit will be 

$928.52, if you elect a 100% Joint-and-Survivor Annuity, your monthly benefit will be $1,045.63. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

<<Name>> 

<<Address 1>> 

<<Address 2>> 

Your benefit without the proposed reduction as of April 1, 2019 in the form of a Life Annuity is $1,743.95. 

Under the proposed reduction your monthly benefit in the same form will be reduced to $765.00.

1

The proposed reduction is permanent, unless the Plan is amended in the future reinstating some or all of 

the suspended benefit. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts on 

April 1, 2019. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might 

be different. 

This estimate is based on the following information from Plan records: 

• You have 60 Pension Credits (5 years of service) under the Plan. 

• You will be 64 years and 2 months on April 30, 2019. 

• The portion of your benefit that is based on disability is $0. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated to 

be $178.75. If the benefit suspensions are not approved, this is the estimated amount of benefit you will 

receive once the Plan runs out of money, which is currently projected to occur in 2030. 

 

1

 These amounts will be different if you take your benefit in a different form. For example, if you elect a 100% Joint-andSurvivor Annuity and your spouse is 3 years younger than you, your reduced monthly benefit will be $581.40. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

<<Name>> 

<<Address1>> 

<<Address2>> 

If you start receiving your benefit on September 1, 2033 in the form of a Life Annuity, your monthly benefit 

without the proposed reduction would be $866.72. Under the proposed reduction your monthly benefit in 

the same form would be reduced to $586.50.

1

The proposed reduction is permanent, unless the Plan is amended in the future reinstating some or all of 

the suspended benefit. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts on 

April 1, 2019. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might 

be different. 

This estimate is based on the following information from Plan records: 

• You have 46 Pension Credits (3 years and 10 months of service) under the Plan. 

• You will be 45 years and 8 months on April 30, 2019. 

• The portion of your benefit that is based on disability is $0. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated to 

be $137.04. If the benefit suspensions are not approved, this is the estimated amount of benefit you will 

receive once the Plan runs out of money, which is currently projected to occur in 2030. 





	

		


					 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

This estimate of the effect of the proposed reduction of benefits has been prepared for: 

<<Name>> 

<<Address 1>> 

<<Address 2>> 

Your monthly benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed benefit reduction starts on 

April 1, 2019. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might 

be different. 

This estimate is based on the following information from Plan records: 

• You have 166 Pension Credits (13 years and 10 months of service) under the Plan as of December 

31, 2017. 

• You will be 81 years and 3 months on April 30, 2019. 

• The portion of your benefit that is based on disability is $0.00. 

PBGC Guaranteed Benefits 

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated to 

be $217.01 for service through December 31, 2017. If the benefit suspensions are not approved, this is the 

estimated amount of benefit you will receive for service through December 31, 2017 once the Plan runs out 

of money, which is currently projected to occur in 2030. 
Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

EIN/Plan Number: 13-6043977/001 

APPENDIX B 

INFORMATION ON ACTUARIAL 

ASSUMPTIONS AND METHODS

443
Actuarial Assumptions and Methods Used 

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

EIN/Plan Number: 13-6043977/001 

Page B-1 

Investment Returns 

Without the proposed suspensions, the annual benefit payments are over 10% of the Fund, and the 

Fund will gradually move to more liquid, less volatile investments. The asset allocation will be 

shifted more towards fixed income investments and away from equities. With the asset portfolio 

shifting over time, the investment returns are assumed as follows: 

Plan Year beginning June 1st, Rate of Return 

2017 6.71% 

2018 6.71% 

2019 6.71% 

2020 6.71% 

2021 6.71% 

2022 6.66% 

2023 6.63% 

2024 6.50% 

2025 6.41% 

2026 6.32% 

2027 7.32% 

2028 and later 7.28% 

With the proposed benefit suspensions, the Fund’s asset allocation will remain basically the same, 

and the investment returns are assumed as follows: 

Plan Year beginning June 1st, Rate of Return 

2017 – 2026 6.71% 

2027 and later 7.75% 

 

Mortality Rates 

Healthy Participants: The mortality of healthy participants is assumed to follow the standard RP2014 blue-collar adjusted mortality table, adjusted to 2006 by removing projections under scale 

MP-2014, and then the standard mortality improvement scale MP-2017 was applied on a fully 

generational basis. 

Disabled Participants: The mortality of disabled participants is assumed to follow the standard 

RP-2014 disabled mortality table, adjusted to 2006 by removing projections under scale MP-2014, 

and then the standard mortality improvement scale MP-2017 was applied on a fully generational 

basis. 

444
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-2 

Retirement Rates from Active Status 

Age Rate Age Rate 

40-54 5% 60-61 15% 

55 15% 62-63 25% 

56-59 10% 64 40% 

 65+ 100%

Retirement Rates for Participants with Deferred Benefits 

Age Rate Age Rate 

55 20% 60 100%

56-59 10% 

In April 2018, a Rehabilitation Plan was adopted, which raised the earliest age for retirement from 

Inactive Status to 55. 

Those inactive participants eligible to retire before May 2018 are assumed to retire at their earliest

eligibility. 

Participants who are assumed to terminate with deferred benefits in the future are assumed to retire 

in accordance with the rates above. 

Retirement Age for Disabled Participants or for Participants Who Are Assumed to Become 

Disabled in the Future 

Disabled participants and participants becoming disabled in the future are assumed to retire as 

soon as they are eligible (six months after the disability onset). 

Termination Rates for Active Participants 

Termination rates for active participants are assumed to follow the Sarason T8 pure withdrawal 

table. The rates are as follows: 

445
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-3 

Age Rate Age Rate Age Rate Age Rate

16 12.09% 28 11.39% 40 9.40% 52 3.53%

17 12.08% 29 11.30% 41 9.09% 53 2.88%

18 12.04% 30 11.21% 42 8.75% 54 2.28%

19 12.00% 31 11.11% 43 8.38% 55 1.73%

20 11.94% 32 10.99% 44 7.97% 56 1.25%

21 11.88% 33 10.86% 45 7.54% 57 0.86%

22 11.82% 34 10.72% 46 7.08% 58 0.55%

23 11.76% 35 10.55% 47 6.58% 59 0.32%

24 11.69% 36 10.37% 48 6.04% 60 0.16%

25 11.62% 37 10.16% 49 5.46% 61 0.07%

26 11.55% 38 9.93% 50 4.83% 62 0.02%

27 11.47% 39 9.68% 51 4.18% 63+ 0.00% 

Disability Rates for Active Participants 

Disability rates are as follows: 

Age Rate Age Rate Age Rate Age Rate 

20 0.05% 29 0.05% 38 0.07% 47 0.24% 

21 0.05% 30 0.05% 39 0.08% 48 0.29% 

22 0.05% 31 0.05% 40 0.09% 49 0.34% 

23 0.05% 32 0.05% 41 0.10% 50 0.40% 

24 0.05% 33 0.05% 42 0.12% 51 0.47% 

25 0.05% 34 0.05% 43 0.14% 52 0.55% 

26 0.05% 35 0.06% 44 0.16% 53+ 0.00% 

27 0.05% 36 0.06% 45 0.18% 

28 0.05% 37 0.07% 46 0.21% 

 

Marriage 

It was assumed that 80% of participants are married. Husbands are assumed to be 3 years older 

than wives. 

446
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-4 

Payment Form Elected at Retirement 

Subject to the exception noted below, the normal form of payment is the 100% Joint and Survivor 

Pension for married participants and the Sixty (60) Month Guarantee Certain benefit for single 

members. Since there is no actuarial adjustment for either of these payment options, it was 

assumed that all married members will elect the 100% Joint and Survivor Pension and all single 

members will be paid the Sixty (60) Month Guarantee Certain benefit. 

However, per the Rehabilitation Plan, members who are Inactives (as defined in the Rehabilitation 

Plan) will have the 100% Joint and Survivor Pension actuarially reduced and the 60-month 

guarantee removed from the non-Joint and Survivor form of payment. Due to the removal of these 

subsidies, it was assumed that a greater percentage of these members who are married will elect 

other than a joint and survivor option. For those members meeting this exception, it was assumed 

that the percentage electing the various payment forms would be as follows: 

Form 

Married 

Members

Single 

Members

Single Life Annuity 40% 100% 

100% Joint and Survivor Pension 30% N/A 

75% Joint and Survivor Pension 5%1

 N/A 

50% Joint and Survivor Pension 25% N/A 

Assumptions Regarding Missing or Incomplete Data 

All participants who have rights to deferred benefits are expected to claim them. 

Salary Increases 

Not applicable. 

Active Participants 

A participant with at least 120 hours or one Pension Credit in the prior year is an active participant

and is assumed to earn additional accruals under the Plan, with the exception of employees of a 

withdrawn employer. Active participants are assumed to earn 12 Pension Credits and 1 year of 

Vesting Service annually, except for employees of Yellow Roadway Corporation (YRC) who are 

assumed to earn 3 Pension Credits and 1 year of Vesting Service annually. 

 

1

 Available only for those who did not work after October 1, 1998. For those who worked after October 1, 1998, it 

was assumed that 30% would elect 50% Joint-and-Survivor annuity instead of 25%. 

447
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-5 

New Entrant Profile 

It was assumed that all active participants from Acetylene Supply Company, ABF Freight System, 

Inc., GCP Applied Technologies, H. M. Royal, Local Union and the Fund Office that are assumed 

to terminate active employment will be replaced by new hires. The employees of Bunzl New 

Jersey will not be replaced. The employment rate of Southern Wine Spirits NJ and YRC 

Worldwide, Inc. will increase by 10% each year in 2018 and 2019, and will remain steady 

thereafter. 

The distribution of entry ages for assumed new hires is as follows: 

Age Weighting 

25 10% 

30 15% 

35 20% 

40 15% 

45 15% 

50 15% 

55 10% 

Contribution Rates 

It was assumed that each employer’s contribution rate would follow its collective bargaining 

agreement (the “CBA”), and when the CBA expires the contribution rate would follow the 

Rehabilitation Plan currently in effect. The contribution rates would be as follows: 

• Acetylene Supply Company: 

o $5.25 through May 20181

o $5.50 through January 20192

o $5.00 starting February 2019 

• ABF Freight System, Inc.: 

o $12.516 through May 20181

o $13.112 through July 20182

o $11.92 starting August 2018 

• Bunzl New Jersey: 

o $12.621 through May 20181

o $13.222 through March 20212

o $12.02 starting April 2021 

 

1

 Includes 5% surcharge 

2

 Includes 10% surcharge 

448
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-6 

• GCP Applied Technologies: 

o $9.9855 through May 20181

o $9.51 starting June 2018 

• H. M. Royal: 

o $9.8385 through May 20181

o $9.37 starting June 2018 

• Southern Wine Spirits NJ: 

o $9.94525 through May 20181

o $8.805 starting June 2018 

• YRC Worldwide, Inc.: 

o $2.00025 through May 20181

o $2.0955 through March 20192

o $1.905 starting April 2019 

• Local Union and Welfare & Pension (Fund Office): 

o $10.4475 through May 20181

o $9.95 starting June 2018 

Contribution Base Units 

Contribution base units are hours worked by the employees. It was assumed that each active 

participant will work 160 hours a month. 

The future hours are assumed as follows: 

Year beginning June 1, Hours Year beginning June 1, Hours 

20173 41,600 2033 192,960 

2018 247,680 2034 192,960 

2019 247,488 2035 192,960 

2020 263,424 2036 193,920 

2021 263,232 2037 193,920 

2022 261,312 2038 193,920 

2023 259,392 2039 193,920 

2024 232,800 2040 192,000 

2025 234,720 2041 192,000 

2026 234,720 2042 192,000 

 

1

 Includes 5% surcharge 

2

 Includes 10% surcharge 

3

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

449
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-7 

Year beginning June 1, Hours Year beginning June 1, Hours 

2027 232,800 2043 192,000 

2028 230,880 2044 192,000 

2029 191,040 2045 192,000 

2030 192,000 2046 192,000 

2031 190,080 2047 192,000 

2032 193,920 2048 191,040 

2049 191,040 

Withdrawal Liability Payments 

Currently, there are two employers making withdrawal liability payments. Revlon Consumer 

Products is making quarterly payments of $4,066.50 each, and their last quarterly payment is due 

December 2031. Shore Point Distributing Company, Inc. is making quarterly payments of 

$339,719 each, and their last quarterly payment is due June 2037. Both Revlon and Shore Point 

are making their payments on time, and it is assumed that they will continue to make quarterly 

installments when due. 

After consultation with the Fund professionals, YRC Worldwide, Inc. is assumed to continue 

operations and participate in the Plan in accordance with the following schedule: 

• From now until the contract expires in 2019: 100% 

• From 2019 to 2024: 90% 

• From 2024 to 2029: 75% 

• From 2029: 50% 

It was assumed that if YRC Worldwide, Inc. were to withdraw from the Fund they will not pay 

their withdrawal liability. 

It is assumed that there will be no other withdrawals from the Fund in the future. 

Administrative Expenses 

Regular operating expenses are assumed to be $700,000 in the plan year beginning June 1, 2017, 

and they are assumed to increase 1.50% each year thereafter. In addition, the following nonrecurring administrative expenses are assumed: 

450
Actuarial Assumptions and Methods Used (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-8 

Plan Year beginning June 1, 

2017 $100,000

2018 $50,000

Projection Methodology 

The projection of benefit payments and plan liabilities was obtained via ProVal software 

(Winklevoss Technologies, LLC). Data grouping was not employed in the projections. Cash flow 

was projected assuming contributions and benefit payments would be made evenly throughout the 

year, and on average investment earnings for half of a year would apply.

451
Supporting Documentation for Selection of Certain 

Assumptions 

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

EIN/Plan Number: 13-6043977/001 

Page B-0 

Investment Return 

FOR CASHFLOW WITHOUT THE PROPOSED SUSPENSIONS: 

The Plan’s target allocation portfolio, absent benefit suspensions, is outlined below. Based on 

input from the investment advisor and after consultation with the Trustees, the target asset 

allocation will shift over the next 10 years to accommodate cash flow needs. 

Portfolio Component Target 

20171 20181 20191 20201 20211 20221

Large Cap Domestic Equity 25% 25% 25% 25% 25% 25%

Small Cap Domestic Equity 5% 5% 5% 5% 5% 5%

Global Equity 10% 10% 10% 10% 10% 10%

International Equity 8% 8% 8% 8% 8% 8%

Emerging Equity 5% 5% 5% 5% 5% 5%

Core Fixed Income 8% 8% 8% 8% 8% 8%

Absolute Return Fixed Income 4% 4% 4% 4% 4% 4%

High Yield Fixed Income 6% 6% 6% 6% 6% 6%

Global Tactical Asset Allocation 12% 12% 12% 12% 12% 13%

Real Estate 10% 10% 10% 10% 10% 10%

Opportunistic 7% 7% 7% 7% 7% 6%

Portfolio Component 

Target 

20231

 20241 20251 20261 20271 20281

and 

later 

Large Cap Domestic Equity 25% 25% 25% 25% 25% 25%

Small Cap Domestic Equity 5% 5% 5% 5% 5% 5%

Global Equity 10% 10% 10% 10% 10% 10%

International Equity 8% 8% 8% 8% 8% 8%

Emerging Equity 5% 5% 5% 5% 5% 5%

Core Fixed Income 8% 10% 12% 13% 13% 13%

Absolute Return Fixed Income 4% 4% 4% 4% 4% 4%

High Yield Fixed Income 5% 4% 3% 2% 1% 0%

Global Tactical Asset Allocation 15% 17% 19% 22% 26% 28%

Real Estate 10% 8% 6% 4% 2% 2%

Opportunistic 5% 4% 3% 2% 1% 0%

 

1

 Plan Year beginning June 1st of the indicated calendar year. 

452
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-1 

The components of the target portfolio are allocated among the standardized asset classes as 

follows: 

Portfolio Component Standardized Asset Class 

Large Cap Domestic Equity US Equity–Large Cap 

Small Cap Domestic Equity US Equity–Small/Mid Cap 

Global Equity 50% US Equity–Large Cap; 

50% Non-US Equity Developed 

International Equity Non-US Equity Developed 

Emerging Equity Non-US Equity Emerging 

Core Fixed Income US Corporate Bonds–Core 

Absolute Return Fixed Income 50% US Corporate Bonds–Core; 

50% US Corporate Bonds–High Yield 

High Yield Fixed Income US Corporate Bonds–High Yield 

Global Tactical Asset Allocation 

30% US Equity–Large Cap; 

30% Non-US Equity Developed; 

20% US Corporate Bonds–Core; 

20% Non-US Debt–Developed 

Real Estate Real Estate 

Opportunistic Private Equity 

453
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-2 

The target allocation portfolio is distributed as follows among the standardized asset classes: 

Standardized Asset Class Target 

20171 20181 20191 20201 20211 20221

US Equity–Large Cap 33.6% 33.6% 33.6% 33.6% 33.6% 33.9%

US Equity–Small/Mid Cap 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Non-US Equity Developed 16.6% 16.6% 16.6% 16.6% 16.6% 16.9%

Non-US Equity Emerging 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

US Corporate Bonds–Core 12.4% 12.4% 12.4% 12.4% 12.4% 12.6%

US Corporate Bonds–Long Duration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

US Corporate Bonds–High Yield 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%

Non-US Debt–Developed 2.4% 2.4% 2.4% 2.4% 2.4% 2.6%

Non-US Debt–Emerging 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

US Treasuries (Cash Equivalents) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

TIPS (Inflation-Protected) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Real Estate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

Hedge Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Commodities 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Infrastructure 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Private Equity 7.0% 7.0% 7.0% 7.0% 7.0% 6.0%

Standardized Asset Class 

Target 

20231 20241 20251 20261 20271 20281 and 

later 

US Equity–Large Cap 34.5% 35.1% 35.7% 36.6% 37.8% 38.4%

US Equity–Small/Mid Cap 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Non-US Equity Developed 17.5% 18.1% 18.7% 19.6% 20.8% 21.4%

Non-US Equity Emerging 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

US Corporate Bonds–Core 13.0% 15.4% 17.8% 19.4% 20.2% 20.6%

US Corporate Bonds–Long Duration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

US Corporate Bonds–High Yield 7.0% 6.0% 5.0% 4.0% 3.0% 2.0%

Non-US Debt–Developed 3.0% 3.4% 3.8% 4.4% 5.2% 5.6%

Non-US Debt–Emerging 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

US Treasuries (Cash Equivalents) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

TIPS (Inflation-Protected) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Real Estate 10.0% 8.0% 6.0% 4.0% 2.0% 2.0%

Hedge Funds 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Commodities 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Infrastructure 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Private Equity 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

 

1

 Plan Year beginning June 1st of the indicated calendar year. 

454
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-3 

In developing the net investment return assumptions, we used the 2017 Survey of Capital Market 

Assumptions report published by Horizon Actuarial Services, LLC in August 2017 (“Horizon 

Report”). The Horizon Report can found here: 

http://www.horizonactuarial.com/uploads/3/0/4/9/30499196/horizon_cma_survey_2017_v0822.pdf

The expected geometric and arithmetic returns, net of fees, the standard deviation of returns and 

the correlations for returns among the assets classes as well as the inflation rates inherent in the 

net investment returns can be found in the Horizon Report. The investment-related expense 

inherent in the net investment return for the target portfolio is reflected in the average expected 

returns in the Horizon Report. 

Without the benefit suspensions, the allocation of the target investment portfolio is expected to 

vary over time to accommodate the expected cash flow. Below is the table summarizing the 

portfolio’s statistics: 

20171 20181 20191 20201 20211 20221

Portfolio's Expected Arithmetic 

Return 7.49% 7.49% 7.49% 7.49% 7.49% 7.43%

Portfolio's Standard Deviation 12.90% 12.90% 12.90% 12.90% 12.90% 12.83%

Portfolio's Expected Geometric 

Return 6.71% 6.71% 6.71% 6.71% 6.71% 6.66%

20231

 20241 20251 20261 20271 20281 

and later

Portfolio's Expected Arithmetic 

Return 7.39% 7.25% 7.14% 7.04% 8.04% 8.00%

Portfolio's Standard Deviation 12.79% 12.62% 12.46% 12.41% 12.46% 12.43%

Portfolio's Expected Geometric 

Return 6.63% 6.50% 6.41% 6.32% 7.32% 7.28%

 

 

1

 Plan Year beginning June 1st of the indicated calendar year. 

455
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-4 

FOR CASHFLOW WITH THE PROPOSED SUSPENSIONS: 

The Plan’s target allocation portfolio is outlined below. Based on input from the investment 

advisor and after consultation with the Trustees, the target asset allocation will not change over 

time since there would be no need to shift to more liquid investments. 

Portfolio Component Target

Large Cap Domestic Equity 25% 

Small Cap Domestic Equity 5% 

Global Equity 10% 

International Equity 8% 

Emerging Equity 5% 

Core Fixed Income 8% 

Absolute Return Fixed Income 4% 

High Yield Fixed Income 6% 

Global Tactical Asset Allocation 12% 

Real Estate 10% 

Opportunistic 7% 

The target allocation portfolio is distributed as follows among the standardized asset classes: 

Standardized Asset Class Target

US Equity–Large Cap 33.6% 

US Equity–Small/Mid Cap 5.0% 

Non-US Equity Developed 16.6% 

Non-US Equity Emerging 5.0% 

US Corporate Bonds–Core 12.4% 

US Corporate Bonds–Long Duration 0.0% 

US Corporate Bonds–High Yield 8.0% 

Non-US Debt–Developed 2.4% 

Non-US Debt–Emerging 0.0% 

US Treasuries (Cash Equivalents) 0.0% 

TIPS (Inflation-Protected) 0.0% 

Real Estate 10.0% 

Hedge Funds 0.0% 

Commodities 0.0% 

Infrastructure 0.0% 

Private Equity 7.0% 

456
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-5 

In developing the net investment return assumptions, we used the 2017 Survey of Capital Market 

Assumptions report published by Horizon Actuarial Services, LLC in August 2017 (“Horizon 

Report”). The Horizon Report can found here: 

http://www.horizonactuarial.com/uploads/3/0/4/9/30499196/horizon_cma_survey_2017_v0822.pdf

The expected geometric and arithmetic returns, net of fees, the standard deviation of returns and 

the correlations for returns among the assets classes as well as the inflation rates inherent in the 

net investment returns can be found in the Horizon Report. The investment-related expense 

inherent in the net investment return for the target portfolio is reflected in the average expected 

returns in the Horizon Report. 

With the benefit suspensions, the allocation of the target investment portfolio is not expected to 

vary over time. Below is the table summarizing the portfolio’s statistics. 

2017 - 20261 20271 and later 

Portfolio's Expected Arithmetic Return 7.49% 8.52% 

Portfolio's Standard Deviation 12.90% 12.90% 

Portfolio's Expected Geometric Return 6.71% 7.75% 

Demographic Experience 

As of June 1, 2017, 28% of the retired participants are single and 72% are either married or 

widowed. 60% of active participants are married. 

Below is the distribution of optional form of benefit selected at retirement: 

Plan Year ending May 31, 

Form 2017 2016 2015 2014 2013 

Single Life Annuity with 60 

guaranteed payments 8 9 6 10 14 

100% Joint-and-Survivor Annuity2 8 16 14 19 13 

75% Joint-and-Survivor Annuity3 0 0 0 0 0 

50% Joint-and-Survivor Annuity 2 0 1 3 2 

 

 

1

 Plan Year beginning June 1st of the indicated calendar year. 

2

 Unreduced if worked on or after October 1, 1998. 

3

 Available only if did not work on or after October 1, 1998. 

457
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-6 

Below are the retirement rates by age for benefit commencements during the last 5 years for active 

participants: 

Nearest age Exposed Actual Retirements Actual retirement rates 

<40 1 0 0 

40 1 0 0 

41 0 0 0 

42 0 0 0 

43 0 0 0 

44 0 0 0 

45 1 0 0 

46 1 0 0 

47 1 0 0 

48 1 0 0 

49 0 0 0 

50 20 1 0.050000 

51 20 1 0.050000 

52 20 0 0 

53 20 1 0.050000 

54 20 0 0 

55 22 3 0.136364 

56 20 2 0.100000 

57 18 1 0.055556 

58 20 2 0.100000 

59 15 2 0.133333 

60 21 3 0.142857 

61 17 2 0.117647 

62 17 4 0.235294 

63 14 4 0.285714 

64 7 3 0.428571 

65 5 2 0.400000 

66 4 2 0.500000 

67 1 1 1.000000 

68 0 0 0 

69 0 0 0 

70+ 0 0 0 

<Total> 287 34 0.118467 

458
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-7 

Below are the retirement rates by age for benefit commencements during the last 5 years for 

terminated vested participants: 

Nearest age Exposed Actual Retirements Actual retirement rates 

50 9 1 0.111111 

51 7 0 0 

52 6 1 0.166667 

53 1 0 0 

54 1 0 0 

55 2 0 0 

56 3 0 0 

57 4 1 0.250000 

58 3 1 0.333333 

59 2 1 0.500000 

60 37 14 0.378378 

61 29 4 0.137931 

62 32 7 0.218750 

63 29 3 0.103448 

64 27 4 0.148148 

65+ 166 11 0.066265 

<Total> 358 48 0.134078 

Mortality Assumptions 

The Plan’s population is not large enough to produce credible mortality experience on its own, so 

a standard table, RP-2014 developed by the Society of Actuaries (“SOA”), is employed. In 

addition, the plan’s participants are blue-collar as defined in the SOA report. The RP-2014 

mortality tables report, which includes the experience study data and the process used to construct 

the mortality rates, issued by the SOA can be found at: 

https://www.soa.org/Research/Experience-Study/pension/research-2014-rp.aspx

To project mortality improvement, the applicable RP-2014 table was adjusted to 2006 by removing 

projections under the MP-2014 scale, then the MP-2017 improvement rates were applied. MP2017 mortality improvement rates were published by the SOA in October 2017, and reflect 

additional years of historical mortality data as compared to the MP-2014 rates. The SOA’s MP2017 mortality improvement rates report can be found at: 

https://www.soa.org/experience-studies/2017/mortality-improvement-scale-mp-2017

459
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-8 

New Entrant Profile 

The description of ages of all new entrants for each of last five years is below (totals may not 

add to 100% due to rounding): 

Plan Year ending May 31, 2017 2016 2015 

Age Count Percent Count Percent Count Percent

below 20 0% 0% 0% 

20 - 25 1 10% 1 6% 5 13% 

25 - 30 1 10% 3 17% 3 8% 

30 - 35 0% 1 6% 10 26% 

35 - 40 1 10% 0% 3 8% 

40 - 45 1 10% 4 22% 5 13% 

45 - 50 3 30% 2 11% 5 13% 

50 - 55 1 10% 2 11% 3 8% 

55 - 60 2 20% 2 11% 4 11% 

over 60 0% 3 17% 0% 

Plan Year ending May 31, 2014 2013 

Age Count Percent Count Percent 

below 20 0% 0% 

20 - 25 0% 0% 

25 - 30 0% 0% 

30 - 35 1 8% 1 11% 

35 - 40 2 17% 1 11% 

40 - 45 0% 0% 

45 - 50 2 17% 4 44% 

50 - 55 4 33% 2 22% 

55 - 60 3 25% 1 11% 

over 60 0% 0% 

 

460
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-9 

Contribution Base Units and Employer Withdrawals 

Below is a list of the employers that contributed 5% or more of the annual contributions to the plan 

for each of the last 10 years: 

• Plan Year Ending May 31, 2017

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 179,842 $6.50 per hour $1,168,975 

SWSNJ Warehousing, Inc. 38,860 $8.55 per hour $332,251 

Bunzl Distribution Northeast, LLC 18,400 $11.42 per hour $210,131 

YRC Freight 138,307 $1.705 per hour $235,813 

ABF Freight System 16,022 $11.42 per hour $182,973 

• Plan Year Ending May 31, 2016

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 207,392 $6.50 per hour $1,348,046 

SWSNJ Warehousing, Inc. 38,381 $8.24 per hour $316,257 

Bunzl Distribution Northeast, LLC 20,961 $10.42 per hour $218,410 

YRC Freight 135,311 $1.605 per hour $217,174 

ABF Freight System 14,719 $10.92 per hour $160,736 

• Plan Year Ending May 31, 2015

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 222,016 $6.50 per hour $1,443,106 

SWSNJ Warehousing, Inc. 30,227 $8.24 per hour $249,068 

Roadway Express 128,108 $1.605 per hour $205,613 

Bunzl Distribution Northeast, LLC 21,726 $9.77 per hour $212,259 

ABF Freight System 13,832 $10.42 per hour $144,126 

461
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-10 

• Plan Year Ending May 31, 2014

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 184,551 $6.50 per hour $1,199,583 

SWSNJ Warehousing, Inc. 30,755 $8.24 per hour $253,424 

Roadway Express 119,992 $1.605 per hour $192,587 

Bunzl Distribution Northeast, LLC 22,807 $9.12 per hour $208,001 

Arkansas Best Freight System 16,518 $9.12 per hour $150,644 

• Plan Year Ending May 31, 2013

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 190,928 $6.50 per hour $1,241,029 

SWSNJ Warehousing, Inc. 32,322 $7.74 per hour $250,174 

Roadway Express 123,789 $1.605 per hour $198,682 

Bunzl Distribution Northeast, LLC 22,100 $9.12 per hour $201,554 

Arkansas Best Freight System 16,658 $9.12 per hour $151,920 

• Plan Year Ending May 31, 2012

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 196,384 $6.50 per hour $1,276,495 

SWSNJ Warehousing, Inc. 33,862 $7.39 per hour $250,242 

Roadway Express 125,585 $1.605 per hour $201,564 

Bunzl Distribution Northeast, LLC 22,828 $8.47 per hour $193,350 

Arkansas Best Freight System 18,122 $8.47 per hour $153,493 

 

462
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-11 

• Plan Year Ending May 31, 2011

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 191,822 $6.50 per hour $1,246,840 

SWSNJ Warehousing, Inc. 41,765 $6.99 per hour $291,939 

Crown Beer Distributors, Inc. 31,381 $6.50 per hour $203,977 

Bunzl Distribution Northeast, LLC 24,623 $7.82 per hour $192,550 

Arkansas Best Freight System 21,072 $7.82 per hour $164,783 

• Plan Year Ending May 31, 2010

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 205,477 $6.50 per hour $1,335,600 

Crown Beer Distributors, Inc. 56,373 $6.50 per hour $366,427 

SWSNJ Warehousing, Inc. 52,838 $6.14 per hour $324,427 

Bunzl Distribution Northeast, LLC 24,962 $7.22 per hour $180,225 

Roadway Express, Inc. 106,124 $1.605 per hour $170,329 

Arkansas Best Freight System 23,168 $7.22 per hour $167,276 

• Plan Year Ending May 31, 2009

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 213,457 $6.50 per hour $1,387,469 

Crown Beer Distributors, Inc. 52,381 $6.50 per hour $340,474 

SWSNJ Warehousing, Inc. 77,036 $5.94 per hour $457,592 

Bunzl Distribution Northeast, LLC 28,437 $6.42 per hour $182,568 

Roadway Express, Inc. 221,312 $6.42 per hour $1,420,824 

Arkansas Best Freight System 25,677 $6.42 per hour $164,844 

 

463
Supporting Documentation for Selection of Certain 

Assumptions (cont’d) 

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

EIN/Plan Number: 13-6043977/001 

Page B-12 

• Plan Year Ending May 31, 2008

Employer 

Hours 

(Contribution 

Base Units) 

Contribution Rate Total 

Contributions 

Shore Point Distribution Co. 183,567 $6.50 $1,193,186 

Crown Beer Distributors, Inc. 44,134 $6.50 $286,872 

SWSNJ Warehousing, Inc. 113,504 $5.74 $651,511 

Bunzl Distribution Northeast, LLC 32,326 $5.92 $191,372 

Roadway Express, Inc. 246,151 $5.92 $1,457,213 

Arkansas Best Freight System 29,867 $5.92 $176,813 

Contribution rates in the future are assumed to follow the Rehabilitation Plan. 

Take-up Rate with Respect to Selection of Benefit/Contribution Schedules 

In the current Rehabilitation Plan there is only one schedule. It was assumed that all the employers 

will take it upon expiration of their collective bargaining agreements. 

464