Page 38.0

Automotive Industries Pension Plan

Checklist Item #38

Does the application include the required excerpts from the most recently filed Form 5500?

See section 7.08.

Yes. The required excerpts from the most recently filed Form 5500 are attached as Document No. 38.1.

Form 5500 (2014) Page 2

3a Plan administrator’s name and address Same as Plan Sponsor 

 

3b Administrator’s EIN

3c Administrator’s telephone 

number

4 If the name and/or EIN of the plan sponsor has changed since the last return/report filed for this plan, enter the name, 

EIN and the plan number from the last return/report:

4b EIN

a Sponsor’s name 4c PN

5 Total number of participants at the beginning of the plan year 5

6 Number of participants as of the end of the plan year unless otherwise stated (welfare plans complete only lines 6a(1), 

 6a(2), 6b, 6c, and 6d).

a(1) Total number of active participants at the beginning of the plan year................................................................................ 6a(1)

a(2) Total number of active participants at the end of the plan year ....................................................................................... 6a(2)

b Retired or separated participants receiving benefits ............................................................................................................. 6b

c Other retired or separated participants entitled to future benefits.......................................................................................... 6c

d Subtotal. Add lines 6a(2), 6b, and 6c. .................................................................................................................................. 6d

e Deceased participants whose beneficiaries are receiving or are entitled to receive benefits................................................. 6e

f Total. Add lines 6d and 6e. ................................................................................................................................................. 6f

g Number of participants with account balances as of the end of the plan year (only defined contr bution plans 

 complete this item)............................................................................................................................................................... 6g

h Number of participants that terminated employment during the plan year with accrued benefits that were 

 less than 100% vested......................................................................................................................................................... 6h

7 Enter the total number of employers obligated to contribute to the plan (only multiemployer plans complete this item)......... 7

8a If the plan provides pension benefits, enter the applicable pension feature codes from the List of Plan Characteristics Codes in the instructions:

b If the plan provides welfare benefits, enter the applicable welfare feature codes from the List of Plan Characteristics Codes in the instructions: 

9a Plan funding arrangement (check all that apply) 9b Plan benefit arrangement (check all that apply)

(1) Insurance (1) Insurance

(2) Code section 412(e)(3) insurance contracts (2) Code section 412(e)(3) insurance contracts

(3) Trust (3) Trust

(4) General assets of the sponsor (4) General assets of the sponsor

10 Check all applicable boxes in 10a and 10b to indicate which schedules are attached, and, where indicated, enter the number attached. (See instructions)

a Pension Schedules b General Schedules

(1) R (Retirement Plan Information) (1) H (Financial Information)

(2) MB (Multiemployer Defined Benefit Plan and Certain Money 

Purchase Plan Actuarial Information) - signed by the plan 

actuary

(2) I (Financial Information – Small Plan)

(3) ___ A (Insurance Information)

(4) C (Service Provider Information)

(3) SB (Single-Employer Defined Benefit Plan Actuarial 

Information) - signed by the plan actuary

(5) D (DFE/Participating Plan Information)

(6) G (Financial Transaction Schedules)

X

23631

10768

4018

X

26120

X

X

X

3973

2397

1B

X

149

8845

X

26028

X
SCHEDULE MB

(Form 5500)

Department of the Treasury

Internal Revenue Service

Department of Labor

Employee Benefits Security Administration

Pension Benefit Guaranty Corporation

Multiemployer Defined Benefit Plan and Certain 

Money Purchase Plan Actuarial Information

This schedule is required to be filed under section 104 of the Employee 

Retirement Income Security Act of 1974 (ERISA) and section 6059 of the 

Internal Revenue Code (the Code).

 File as an attachment to Form 5500 or 5500-SF.

OMB No. 1210-0110

2014

This Form is Open to Public 

Inspection

For calendar plan year 2014 or fiscal plan year beginning and ending 

Round off amounts to nearest dollar.

Caution: A penalty of $1,000 will be assessed for late filing of this report unless reasonable cause is established.

A Name of plan B Three-digit

plan number (PN) 

C Plan sponsor’s name as shown on line 2a of Form 5500 or 5500-SF D Employer Identification Number (EIN)

E Type of plan: (1) Multiemployer Defined Benefit (2) Money Purchase (see instructions) 

1a Enter the valuation date: Month _________ Day _________ Year _________

b Assets

(1) Current value of assets...................................................................................................................... 1b(1)

(2) Actuarial value of assets for funding standard account....................................................................... 1b(2)

c (1) Accrued liability for plan using immediate gain methods .................................................................... 1c(1)

(2) Information for plans using spread gain methods:

(a) Unfunded liability for methods with bases ......................................................................................... 1c(2)(a)

(b) Accrued liability under entry age normal method............................................................................... 1c(2)(b)

(c) Normal cost under entry age normal method .................................................................................... 1c(2)(c)

(3) Accrued liability under unit credit cost method ........................................................................................ 1c(3)

d Information on current liabilities of the plan:

(1) Amount excluded from current liability attributable to pre-participation service (see instructions) ............ 1d(1)

(2) “RPA ‘94” information:

(a) Current liability.................................................................................................................................. 1d(2)(a)

(b) Expected increase in current liability due to benefits accruing during the plan year........................... 1d(2)(b)

(c) Expected release from “RPA ‘94” current liability for the plan year.................................................... 1d(2)(c)

(3) Expected plan disbursements for the plan year....................................................................................... 1d(3)

Statement by Enrolled Actuary

To the best of my knowledge, the information supplied in this schedule and accompanying schedules, statements and attachments, if any, is complete and accurate. Each prescribed assumption was applied in 

accordance with applicable law and regulations. In my opinion, each other assumption is reasonable (taking into account the experience of the plan and reasonable expectations) and such other assumptions, in 

combination, offer my best estimate of anticipated experience under the plan.

SIGN

HERE

Signature of actuary Date

Type or print name of actuary Most recent enrollment number

Firm name Telephone number (including area code)

Address of the firm

If the actuary has not fully reflected any regulation or ruling promulgated under the statute in completing this schedule, check the box and see 

instructions

For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500 or Form 5500-SF. Schedule MB (Form 5500) 2014

v. 140124

SEGAL CONSULTING

12/31/2014

01

94-1133245

137892673

1954700784

140892673

01/01/2014

415-263-8200

AUTOMOTIVE INDUSTRIES PENSION PLAN

BD. OF TRUSTEES OF AUTOMOTIVE INDUSTRIES PENSION PLAN

1327287980

05/07/2015

001

1185912766

1982679153

01

12239463

14-06069

2014

X

3086236967

PAUL C. POON, ASA, MAAA

100 MONTGOMERY STREET, SUITE 500, SAN FRANCISCO, CA 94104-4308



Attachment to 2014 Schedule MB (Form 5500) for 

Automotive Industries Pension Plan (94-1133245/001)

FOOTNOTES TO SCHEDULE MB 

Line 1(b)(1) 

and Line 2(a) 

The current value of assets used for the valuation as shown on line 1(b)(1) is based on 

a draft audit report provided by the plan auditor. The current value found in the final 

audit report is shown in line 2(a) and differs slightly from the draft amount. 

Line 3(b) Contributions are paid periodically throughout the year pursuant to collective 

bargaining agreements. This number includes liquidated damages ($33,666) and 

withdrawal liability payments ($6,788,280) and was obtained from a draft audit. 

Line 9(b) Per the cost method used by this plan, at year-end, the Normal Cost from the valuation 

is adjusted by the ratio of the actual negotiated contributions (excluding withdrawal 

liability payments and liquidated damages) received during the plan year to the 

expected contributions. The derivation of the adjusted Normal Cost is as follows: 

1) Normal Cost from January 1, 2014 actuarial valuation $6,126,874 

2) Administrative expense adjusted to the beginning of the year 2,888,977 

3) 2014 actual negotiated contributions 21,483,704 

4) 2014 expected contributions 20,126,527 

5) Adjusted Normal Cost: [((1) - (2)) x ((3)/(4))] + (2) 6,345,213

Line 9(j)(1) Using the adjusted Normal Cost from line 9(b), the derivation of the ERISA FFL 

is as follows: 

Full Funding Limitation (ERISA): 

(a) Full Funding Limitation from January 1, 2014 actuarial 

valuation

$861,103,022 

(b) Adjustment due to change in Normal Cost (with interest) 234,169 

(c) Full Funding Limitation as of December 31, 2014 [(a) + (b)] 861,337,191 

The valuation was based on the assumption that the plan was qualified for the year and on information 

supplied by the auditor with respect to contributions and assets and by the Fund Administrator with 

respect to the data required on employees and pensioners


Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

EIN 9

 Certificate Contents 

EXHIBIT I Status Determination as of January 1, 2014 EXHIBIT II Summary of Actuarial Valuation Projections EXHIBIT III Funding Standard Account Projections EXHIBIT IV Funding Standard Account – Projected Bases Assumed Established After January 1, 20EXHIBIT V Actuarial Assumptions and Methodology EXHIBIT VI Documentation Regarding Progress Under Rehabilitation Plan 
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT I Status Determination as of January 1, 2014 

Status Condition 

Test Compo

Result 

Critical Status  1. Funding deficiency projected in four years?  2. Funding deficiency projected in five years Yes AND present value of vested benefits for non-actives more than present value of vested benefits for actives Yes

AND normal cost plus interest on unfunded actuarial accrued liability (unit credit basis) greater than contributions 

for current year? 

Yes 

 3. Funding deficiency projected in five years Yes AND funded percentage less than 65%? Yes  4. Funded percentage less than 65% Yes AND assets plus contributions less than benefit payments and administrative expenses over seven years? No  5. Assets plus contributions less than benefit payments and administrative expenses over five years?  6. In critical status for immediately preceding plan year and funding deficiency projected within ten years?  In Critical Status? Endangered Status 

 1. Funded percentage less than 80% N/A AND not in Critical Status? N/A  2. Funding deficiency projected in seven years N/A AND not in Critical Status? N/A 

In Endangered Status? In Seriously Endangered Status? 

Neither Critical Status Nor Endangered Status 

Neither Critical nor Endangered Status? 

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its based on the annual standards of the rehabilitation plan.
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT II Summary of Actuarial Valuation Projections

The actuarial factors as of January 1, 2014 (based on projections from the January 1, 2013 valuation certificate): 

Ja

I. Asset and Contribution Information 

1. Market value of assets 2. Actuarial value of assets 3. Reasonably anticipated contributions 

a. Upcoming year b. Present value for the next five years c. Present value for the next seven years 

II. Liabilities 

1. Present value of vested benefits for active participants 2. Present value of vested benefits for non-active participants 3. Total unit credit accrued liability 4. Present value of payments Benefit Payments Administrative Expenses 

a. Next five years $590,252,047 $13,744,879 b. Next seven years 785,638,952 18,510,501 

5. Unit credit normal cost plus expenses 

III. Funded Percentage (I.2)/(II.3) IV. Funding Standard Account 

1. Credit Balance as of the end of prior year 2. Years to projected funding deficiency, if within ten years 
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT III Funding Standard Account Projections 

The table below presents the Funding Standard Account Projections for the Plan Years beginning January 1, 2013 throu

Year Beginning January 1, 

2013 2014 2015 2016 2017 2018 2019 

1. Credit balance at 

beginning of year -$110,466,227 -$223,888,881 -$337,784,822 -$454,941,225 -$577,614,160 -$704,223,588 -$836,445

2. Interest on (1) -8,008,801 -16,231,944 -24,489,400 -32,983,239 -41,877,027 -51,056,210 -60,6423. Normal cost 3,691,966 3,507,018 3,436,878 3,368,140 3,300,777 3,234,762 3,1704. Administrative expenses 2,888,977 2,975,646 3,064,916 3,156,863 3,251,569 3,349,116 3,4495. Net amortization charges 119,341,445 106,729,451 102,322,011 99,081,632 94,028,970 90,276,914 89,681

6. Interest on (3), (4) and (5) 9,151,747 8,207,878 7,889,726 7,656,481 7,292,145 7,022,407 6,9817. Expected contributions 28,622,709 22,924,966 23,205,335 22,748,777 22,331,542 21,922,652 21,5218. Interest on (7) 1,037,573 831,030 841,193 824,643 809,518 794,696 780

9. Credit balance at end of 

year: (1) + (2) – (3) – (4) – (5) – (6) + (7) + (8) -$223,888,881 -$337,784,822 -$454,941,225 -$577,614,160 -$704,223,588 -$836,445,649 -$978,068
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT III Funding Standard Account Projections (continued) 

Year Beginning January 

2021 2022 

1. Credit balance at beginning of year -$1,108,616,113 -$1,148,035,837 

2. Interest on (1) -80,374,668 -83,232,598 

3. Normal cost 3,044,532 2,983,641 4. Administrative expenses 3,659,670 3,769,460 5. Net amortization charges -24,983,233 -25,085,299 6. Interest on (3), (4) and (5) -1,325,230 -1,329,084 7. Expected contributions 20,603,795 20,099,523 8. Interest on (7) 746,888 728,608 

9. Credit balance at end of year: (1) + (2) – (3) – (4) – (5) – (6) + (7) + (8) -$1,148,035,837 -$1,190,779,022 
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT IV Funding Standard Account – Projected Bases Assumed Established After January 1, 2013 

Schedule of Funding Standard Account Bases 

Type of Base Date Established 

Base 

Established

Amortization

Period

A

Experience Gain/(Loss) 01/01/2014 -$107,741,595 15 Plan Amendment 01/01/2014 -7,598,276 15 Experience Gain/(Loss) 01/01/2015 -42,381,262 15 Experience Gain/(Loss) 01/01/2016 -31,158,986 15 Experience Gain/(Loss) 01/01/2017 -48,585,617 15 Experience Gain/(Loss) 01/01/2018 -36,079,195 15 Experience Gain/(Loss) 01/01/2019 -5,724,207 15 Experience Gain/(Loss) 01/01/2020 -3,762,237 15 Experience Gain/(Loss) 01/01/2021 -2,218,600 15 Experience Gain/(Loss) 01/01/2022 -981,452 15 

Experience Gain/(Loss) 01/01/2023 -345,513 15 
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT V Actuarial Assumptions and Methodology 

The actuarial assumptions and plan of benefits are as used in the January 1, 2013 actuarial valuation certificate, dated Mexcept as specifically described below. We also assumed that experience would emerge as projected, except as describcalculations are based on a current understanding of the requirements of ERISA Section 305 and IRC Section 432. Plan of Benefits: All active employees in the January 1, 2013 actuarial valuation not covered un

Schedule are assumed to become covered on January 1, 2014. 

Contributions: The Default Schedule of the Rehabilitation Plan calls for seven annual 5% con

increases, beginning January 1, 2013. We have assumed two increases, on avenegotiated into the existing CBAs for 2014 and 2015. The projected contributions also include the following anticipated withdrawal by year. 

Year Amount (In Millions) 

2014 $2.2 2015 $1.9 2016 $1.9 2017 $1.9 2018 $1.9 2019 $1.9 2020 $1.9 2021 $1.7 2022 $1.6 2023 $1.1 2024 $0.2 
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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Asset Information: The financial information as of December 31, 2013 was based on an unaudited 

statement provided by the Fund Administrator. For projections after that date, the assumed administrative expenses were incryear and the benefit payments were projected based on the January 1, 2013 acThe projected net investment return was assumed to be 7.25% of the average massets for the 2014 - 2023 Plan Years. Any resulting investment gains or losseoperation of the asset valuation method are amortized over 15 years in the FunStandard Account. 

Projected Industry Activity: As required by Internal Revenue Code Section 432, assumptions with respect 

industry activity are based on information provided by the plan sponsor. Based information, the total number of contributory months is expected to decline by 

Future Normal Costs: Based on the assumption that replacement employees will have the same entry 

leaving the work force, the Entry Age Normal Cost method used in the valuatiNormal Costs per active. Therefore, we have assumed that the normal cost in fthat for the 2013 plan year, after the year-end adjustment for actual versus expfor 2013, and further adjusted for the projected industry activity above. 
Actuarial Status Certification as of January 1, 2014 under IRC Section 432 for the Automotive Industries Pensio

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EXHIBIT VI Documentation Regarding Progress Under Rehabilitation Plan 

Based on the Rehabilitation Plan in effect as of December 31, 2013, the applicable standard for January 1, 2014 was foinsolvency until after December 31, 2020, using the plan provisions, assumptions/methods, and contribution levels that this certification. Our projections based on this certification indicate the plan will become insolvent during the 2030 Plan Year. Thereforstandard is met. 5303378v2/01149.027 
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Automotive Industries Pension P

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EXHIBIT III Schedule of Active Participant Data (Schedule MB, line 8b)

The participant data is for the year ended December 31, 2013. 

Years of Credited Service 

Age Total 1-4 5-9 10-14 15 - 19 20 - 24 25 - 29 30 - 34 3

Under 25 120 113 7 - - - - - - - - - - 25 - 29 329 196 128 5 - - - - - - - - 30 - 34 407 162 157 85 3 - - - - - - 35 - 39 439 115 130 137 53 4 - - - - 40 - 44 483 86 106 162 91 34 4 - - 45 - 49 592 76 114 164 110 78 46 4 50 - 54 737 65 85 158 133 139 112 42 55 - 59 511 23 74 88 87 82 85 48 60 - 64 264 7 23 47 58 52 41 14 65 - 69 70 6 7 13 10 5 14 5 70 & over 3 - - - - 2 1 - - - - - - Unknown 24 22 2 - - - - - - - - - - 

Total 3,979 871 833 861 546 394 302 113 
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EXHIBIT IV (continued) Funding Standard Account 

Schedule of Funding Standard Account Bases (Charges) (Schedule MB, line 9c) 

Type of Base Date Established 

Amortization 

Amount 

Years

Remaining

O

Combined Base 01/01/2012 $114,042,943 6.82 Plan Amendment 01/01/2012 71,720 13 Experience Loss 01/01/2012 3,929,675 13 Experience Loss 01/01/2013 4,468,373 14 Change in Assumptions 01/01/2014 452,894 15 Total $122,965,605 
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Automotive Industries Pension P

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EXHIBIT IV (continued) Funding Standard Account 

Schedule of Funding Standard Account Bases (Credits) (Schedule MB, line 9h) 

Type of Base Date Established 

Amortization 

Amount 

Years

Remaining

O

Plan Amendment 07/01/2012 $2,549,656 13.5 Plan Amendment 01/01/2013 4,388 14 Plan Amendment 07/01/2013 1,234,444 14.5 Plan Amendment 01/01/2014 810,548 15 

Experience Gain 01/01/2014 11,003,792 15 

Total $15,602,828 
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Automotive Industries Pension P

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EXHIBIT VII Statement of Actuarial Assumptions/Methods (Schedule MB, line 6) 

Mortality Rates: Healthy: RP-2000 Combined Healthy Mortality Tables, set back 1 year 

Disabled: RP-2000 Combined Healthy Mortality Tables, set forward 3 yThe above RP-2000 mortality tables (set back 1 year for healthy lives and set disabled lives) reasonably anticipates the projected mortality experience of the measurement date. The additional 1-year setback is a provision made for futurimprovement. 

Termination Rates beforeRetirement: Rate (%) 

 Mortality 

Age Male Female Disability 

 20 0.03 0.02 0.05  25 0.04 0.02 0.06 

 30 0.04 0.02 0.08 

35 0.07 0.04 0.11 40 0.10 0.06 0.17 45 0.14 0.10 0.27 50 0.20 0.16 0.45 55 0.32 0.24 0.76 60 0.59 0.44 1.22 

* Withdrawal rates under age 55 are increased by 6 percentage points for the first 5 years o

rates do not apply at retirement eligibility.
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Retirement Rates: 

Age Retirement Rates 

55 – 60 5% 

61 15 62 35 63 25 64 25 65 50 66 30 67 100 

Description of Weighted Average Retirement Age: Age 62.2, determined as follows: The weighted average retirement age for eac

calculated as the sum of the product of each potential current or future retiremprobability of surviving from current age to that age and then retiring at that aother decrements. The overall weighted retirement age is the average of the inages based on all the active participants included in this actuarial valuation. 

Retirement Age for Inactive Vested Participants: Age 65 

Future Benefit Accruals: Work-year of 11.2 months of contributions per active participant. 

Unknown Data for Participants: Same as those exhibited by participants with similar known characteristics. If 

participants are assumed to be male. 

Definition of Active Participants: Active participants are defined as those with at least five months in the most r

excluding those who have retired as of the valuation date. 

Exclusion of Inactive Vesteds: Inactive participants over age 70 excluded from the valuation. Percent Married: 85% 
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Age of Spouse: Females 4 years younger than males. Benefit Election: All future pensioners are assumed to elect the Life Option at retirement. Net Investment Return: 7.25% 

Annual Administrative Expenses: $3,000,000, payable monthly (equivalent to $2,888,977 payable at the beginniActuarial Value of Assets: The market value of assets less unrecognized returns in each of the last five ye

 return is equal to the difference between the actual market return and the expe

actuarial value, and is recognized over a five-year period. The actuarial value if necessary, to be within 20% of the market value. 

Actuarial Cost Method: Entry Age Normal Actuarial Cost Method. Entry Age is the current age minus 

Normal Cost and Actuarial Accrued Liability are calculated on an individual ballocated by service, with Normal Cost determined as if the current benefit accalways been in place. Normal Cost is adjusted by the ratio of the actual contribbenefit accruals received during the plan year to the expected contribution. Foexpected contributions are $20,126,527. 

Benefits Valued: Unless otherwise indicated, includes all benefits summarized in Exhibit VIII. 

Current Liability Assumptions: 

Interest 3.64%, within the permissible range prescribed under IRC Section 431(c)(6)(EMortality Mortality prescribed under IRS Regulations 1.431(c)(6)-1 and 1.430(h)(3)-1: R

projected forward to the valuation year plus seven years for annuitants and 15 nonannuitants 
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Automotive Industries Pension P

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Justification for Change in 

Actuarial Assumptions (Schedule MB, line 11): For purposes of determining current liability, the current liability interest rate 

a change in the permissible range and recognizing that any rate within the permsatisfies the requirements of IRC Section 431(c)(6)(E) and the mortality tables accordance with IRS Regulations 1.431(c)(6)-1 and 1.430(h)(3)-1. 

 Based on past experience and future expectations, the following actuarial assu

changed as of January 1, 2014: á Mortality for disabled lives, previously RP-2000 Combined Healthy Mort

forward 5 years. 

Estimated Rate of Investment Return: 

On actuarial value of assets  (Schedule MB, line 6g): 17.4%, for the Plan Year ending December 31, 2013 On current (market) value of assets  (Schedule MB, line 6h): 19.8%, for the Plan Year ending December 31, 2013 

Funding Standard Account 

Contribution Timing (Schedule MB, line 3(a)): Unless otherwise noted, contributions are paid periodically throughout the yea

collective bargaining agreements. The interest credited in the Funding Standartherefore assumed to be equivalent to a July 1st contribution date.
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EXHIBIT VIII Summary of Plan Provisions (Schedule MB, line 6) 

This exhibit summarizes the major provisions of the Plan included in the valuation. It is not intended to be, nor should 

a complete statement of all plan provisions. Plan Year: January 1 through December 31 

Pension Credit Year: January 1 through December 31 Plan Status: Ongoing plan Normal Pension: 

Age and Service requirements 65 and 5 years of Credited Service (including 24 months of Future Service). Amount The monthly amount is the sum of (a), (b), (c), (d) and (e). 

a. $10.00 for each year of Past Service. b. $5.00 for each $100 of the contributions made on the participant's behalf f

Contribution Date through June 30, 2003. 

c. $3.00 for each $100 of the contributions made on the participant's behalf f

through December 31, 2004. 

d. 0.5% for the first $250 of monthly contributions, 1.0% for the next $250 o

contributions, and 2.0% of monthly contributions in excess of $500 made behalf on or after January 1, 2005. 

e. 1.0% of monthly contributions made on the participant’s behalf on or afteContribution increases under the Rehabilitation Plan do not count for benefit a
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Early Retirement Pension: 

Age and Service requirements 55 and 60 months of Credited Future Service. Amount Accrued Normal Pension amount to which the participant would be entitled, r

each year that the retiring employee is younger than 62 (no reduction is applieand 65 for the Unreduced Early Pension, or if participants age and service totaUnreduced Rule of 85 Pension). For participants subject to the Rehabilitation reductions, all Early Retirement Pensions are reduced from age 65, using the pequivalence basis. This benefit is not available to those who retire from inactiv

Disability Pension: 

Age and Service requirements Any age and 5 years of Credited Service (including 24 months of Future ServiOther requirements Eligible for a Social Security disability benefit. Amount Accrued Normal Pension amount to which the participant would be entitled (o

disability) without any reduction. For participants subject to the Rehabilitation reductions, the Disability Pension is not available and those who become disabonly for the Vested Benefit described below. 

Vested Benefit: 

Age and Service requirements Any age and 5 years of Credited Service (including 24 months of Future ServiAmount Accrued Normal Pension, payable commencing at Normal Retirement Age, or

reduced basis), as early as age 55. 

Normal Retirement Age The later of age 65 and the fifth anniversary of participation. 

Spouse's Benefit: 

Age and Service requirements Any age and 5 years of Credited Service (including 24 months of Future ServiAmount 50% of the benefit that the participant would have received had he or she retir

death on a Joint and Survivor Annuity. If the participant is not eligible to retirdeath, payments will be deferred until the participant’s earliest retirement age
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Pre-Retirement Death Benefit: 

Age and Service requirements Any age and 5 years of Credited Service (including 24 months of Future ServiAmount Return of the total contributions made on account of the participant’s employm

the participant’s unreduced pension at time of death payable for 36 months. This benefit is not payable if benefits are due under the Spouse's Benefit or fo

subject to the Rehabilitation Plan benefit reductions. 

Joint and Survivor Annuity: All retirements are paid in the form of a 50% joint and survivor annuity unless 

rejected by the participant and spouse. The benefit amount otherwise payable the joint and survivor coverage. If the spouse predeceases the participant, the bthe amount is payable before the reduction. If this type of pension is rejected, for the life of the participant without reduction (with a minimum guarantee of payments) or in any other available optional form elected by the participant. Fsubject to the Rehabilitation Plan benefit reductions, the “pop-up” feature and guarantee are not available, and the joint and survivor reduction factors are baactuarial equivalence basis. 

Optional Forms of Benefit Payment: 

á 50% Joint and Survivor Option (“QJSA”) á 75% Joint and Survivor Option (“QOSA”) á Life with 36-Month Guarantee Option

á Life with 120-Month Guarantee Option

á Full 100% Joint and Survivor Option

Aside from a life only annuity, QJSA and QOSA, these options are not availabsubject to the Rehabilitation Plan benefit reductions.
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Credited Service Schedule: Commencing January 1, 1976 a year of Future Service is credited during any P

the participant completes at least 5 months of covered service. (No fractional cPrior to January 1, 1976, Future Service was granted at the rate of one-twelfth month of contribution payments. 

 Past Service is credited for service prior to the Contribution Date up to a maxi

for members who became participants prior to January 1, 1975 and 10 years foentered the Plan after January 1, 1975. For participants who joined the Plan afamount of Credited Past Service can not exceed the Credited Future Service ePlan.

Break-in-Service Rules: 

One-Year Break A participant incurs a One-Year Break in Service if he or she fails to complete 

service or 501 hours of service in a Plan Year. 

Permanent Break A non-vested participant incurs a Permanent Break in Service if the number o

Year Breaks in Service is at least 5 and it equals or exceeds the number of yeaService which the employee had previously accumulated. At this time, the nonthe participant’s service and benefits accrued are canceled. 

Participation Rule: An employee becomes a "Participant" the first day of the first month for which 

 contribution was made.

Contribution Rate: The average benefit contribution rate on January 1, 2014 was $398.95 per mon
SECTION 4: Certificate of Actuarial Valuation as of January 1, 2014 for the Automotive Industries Pension P

EIN 9

Plan Amendments: The level of benefits payable is directly proportional to the negotiated contribu

recognized for benefit accruals; any change in this rate for continuing active ean automatic benefit change and, therefore, in a plan amendment. 

 The Trustees implemented a Rehabilitation Plan with a schedule that reduce P

described in Section 4, Exhibit VIII. This year’s valuation recognizes the beneall members not previously covered under this schedule. 

5313555v1/01149.001 



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Plan Name: Automotive Industries Pension Plan

Plan Sponsor: Board of Trustees of the Automotive Industries Pension Trust Fund

Employer Identification Number: 94-1133245 Plan Number: 001

SCHEDULE R, SUMMARY OF REHABILITATION PLAN 

 FOR 201 PLAN YEAR 

Subsequent ACTIONS THROUGH DECEMBER 31, 

 As permitted under Section 204 of the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), on 

March 5, 2009, the Board of Trustees voted to temporarily freeze the plan's 2009 funded status to be the same as that of

the 2008 plan year. As a result, the Plan was not required to update its Rehabilitation Plan for 2009. 

On April 21, 2009, the Plan provided notice of actions taken under both Sections 204 and 205 of WRERA to the 

Internal Revenue Service. 

4

2014
Automotive Industries Pension Fund

Administered by: Associated Third Party Administrators

1640 SOUTH LOOP RD • ALAMEDA, CA 94502 • TELEPHONE (510) 836-2484 Or (800) 635-3105

Mailing Address: POST OFFICE BOX 23120 • OAKLAND,CA 94623-0120

Website: www.aitrustfunds.org

AUTOMOTIVE INDUSTRIES PENSION TRUST FUND

REVISED REHABILITATION PLAN

Effective July 9, 2012

Introduction

The Pension Protection Act of 2006 ("PPA"), as amended by the Worker, Retiree, and

Employer Act of 2008 ("WRERA"), requires the Trustees of a multiemployer pension fund that

has been certified by its actuary as being in Critical Status (also known as the "Red Zone") to

. develop a Rehabilitation Plan. The Rehabilitation Plan should enable the fund to cease to be in

Critical Status by the end of the rehabilitation period . However, if the Trustees determine,

based upon the exhaustion of all reasonable measures, that the fund can not reasonably be

expected to emerge by the end of the rehabilitation period, the Rehabilitation Plan should be

designed to enable the fund to cease to be in Critical Status at a later date, or if not reasonable,

to forestall possible insolvency.

On March 28, 2008, the Automotive Industries Pension Trust Plan ("Plan") was certified by its

actuary to be in critical status for the plan year beginning January 1, 2008. Ithas continued to

be certified to be in critical status for subsequent plan years, including the current plan year

beginning January 1, 2012. An initial Rehabilitation Plan was adopted on March 21, 2008.

Under PPA, the Trustees are required to annually review and update the Rehabilitation Plan and

its Schedules as necessary.

This Rehabilitation Plan:

1. specifies the rehabilitation period;

2. describes alternatives the Trustees considered when preparing the Rehabilitation Plan;

3. explains why the Trustees concluded that there are no reasonable measures that would

enable the Fund to emerge from Critical Status by the end of the rehabilitation period;

4. includes one schedule (Default) of benefit and contribution changes that wiJI be

provided to the bargaining parties, which must be implemented as part of future

collective bargaining agreements between local unions and contributing employers

entered into or renewed after the adoption of this Rehabilitation Plan;

5. describes how the Default Schedule will be automatically implemented if there is no

agreement between the bargaining parties in a timely manner; and

6. provides annual standards for meeting the requirements of the Rehabilitation Plan and

describes how the Rehabilitation Plan will be updated from time to time.

.Tuly 2012 1
July 2012 2

Rehabilitation Period

The initial rehabilitation period was the I 0-year period from January 1, 2011 through December

31, 2020. The Trustees elected to extend this period by 3 years to December 31, 2023 under 

WRERA.

Rehabilitation Plan Standard

PPA generally provides a 10-year rehabilitation period to emerge from Critical Status. Pursuant

to Section 205 of WRERA, the Trustees could elect to extend the I 0-year rehabilitation period

to a 13-year rehabilitation period. However, PPA also specifically provides for a plan to emerge

from Critical Status later, if possible, or to forestall insolvency if the plan cannot reasonably be

expected to emerge by the end of the rehabilitation period, or at all, as determined by its

Trustees.

The original Default Schedule of benefit cuts and contribution increases was designed to enable

the plan to emerge by the end of the original rehabilitation period on December 31, 2020. After

reflecting actual experience through January 1, 2011 and the 3-year extension of the

rehabilitation period, the supplemental contributions required in the original Default Schedule

would need to increase from 12.5% to 35.8% per year for 7 years beginning January 1, 2013, 

based on reasonable assumptions, to emerge by December 31, 2023. For example, the average

contribution rate would have to grow from $394 to $3,356 per month.

The Board of Trustees concluded that such changes in contribution rate to emerge from the

Critical Status by the end of the rehabilitation period were unreasonable and involved

considerable risk to the Fund and Fund participants. Inreaching this conclusion the Board

considered (1) information concerning the decline in the automotive industry in general, (2) the

rapid decline of contributing employers and of active participants in the Fund, and (3)

information concerning the remaining larger contributing employers to the fund, the risk of 

further substantial withdrawals in the future and the potential adverse impact of such

withdrawals. The Board concluded that the continued existence of the Fund and the Trustees'

ability to discourage bargaining withdrawals and maintain or improve the Fund's funded status

would be jeopardized by any attempt to emerge from Critical Status by the end of the

rehabilitation period.

The Board of Trustees concluded that annual contribution rate increases in excess of those

called for under the attached Default Schedule could trigger mass withdrawals and significant

losses to the Fund and participants. The Trustees further concluded that contributions required

to emerge from critical status "at a later date" would be unreasonable and therefore the

Rehabilitation Plan could not be expected to do any more than forestall insolvency.

The Board of Trustees considered several actions, options, and alternatives that would enable

the Fund to emerge from Critical Status either by the end of the rehabilitation period or as soon

as reasonably possible after the period. The Trustees have determined the remedies considered

to emerge from Critical Status were unreasonable measures that would be untenable or

counterproductive and adverse to the Fund and Fund participants. The various remedies and

alternative schedules considered included the following:
July 2012 3

l. Seek the assistance of the Pension Benefit Guaranty Corporation CPBGC) to improve the

funding position of the Fund: The Trustees have considered various possible approaches

with the PBGC. The concepts of PBGC assisted merger and PBGC approved managed mass 

withdrawal were determined to be unachievable after considerable discussion. The approach

of partitioning the Fund's liability related to benefits earned by participants through service

with employers who became, or will become, bankrupt into a new pension plan that will

receive assistance was also considered by the Trustees but was determined not to be viable

due to the relatively small amount of plan. liability that would be eligible for assistance.

2. Secure a merger with another fund: Various standard mergers (not PBGC-assisted) were

considered and/or explored during and before the Fund entered critical status. In each case,

the Trustees of the proposed merger partner were found to be unwilling or unable to 

effectuate a merger.

Trustee Approved Rehabilitation Plan Remedies

Having considered all reasonable measures to emerge from critical status, the Trustees have

concluded that the Fund cannot reasonably be expected to emerge from critical status by the

end of the rehabilitation period or at a later date. Based on this, they have adopted the following

reasonable measures to forestall insolvency of the Fund:

I. Eliminate Early Retirement Benefits for Inactive Vested Participants

The Trustees amended the pension plan so as to eliminate early retirement benefits (i.e., 

benefits commencing prior to the Plan's age 65 normal retirement age) for inactive vested

participants, effective February 1, 2011. Previously, these benefits were available on an

actuarial equivalence basis.

2. Default Schedule

Under this schedule, all non-protected and adjustable benefits for participants who retired on 

or after July 1, 2008 are eliminated effective July 1, 2008, or if later, the date the Default

Schedule is adopted pursuant to collective bargaining, or imposed automatically by the

Trustees. Attachment A describes the non-protected and adjustable benefits that are being

eliminated and the supplemental employer contributions.

Annual Standards for Meeting the Rehabilitation Requirements

Based on reasonable assumptions, the Fund is projected to become insolvent. The year of 

projected insolvency will vary each year as actual experience differs from the assumptions. The

Trustees recognize the possibility that actual experience could be less favorable than the

reasonable assumptions used for the Rehabilitation Plan and the need to update the

Rehabilitation Plan on an annual basis. Consequently, the annual standard for meeting the

requirements of this Rehabilitation Plan is for updated actuarial projections each year to show, 

based on reasonable assumptions, that under the Rehabilitation Plan (as amended from time to 

time) the projected insolvency will occur after 2020.
July 2012 4

Annual Updating of Rehabilitation Plan

Each year the Fund's actuary will review and certify the status of the Fund under PPA funding

rules and whether the Fund is making the scheduled progress in meeting the requirements of the

Rehabilitation Plan. If the Trustees determine that it is necessary in light of updated

information, they will revise the Rehabilitation Plan and present updated schedules to the

bargaining parties. Notwithstanding subsequent changes in benefit and contribution schedules,

a schedule provided by the Trustees and relied upon by the bargaining parties in negotiating a

collective bargaining agreement shall remain in effect for the duration of that collective

bargaining agreement.
July 2012 5

DEFAULTSCHEDULE

Attachment A

Benefit Changes

Remove early retirement subsidies - instead of the Ru le of 85 or the 3% per year reductions

from age 62, reductions will be based on actuarial equ ivalence from normal retirement age

(65).

Eliminate the Early Retirement Pension for inactive vested participants.

Eliminate future Disability Pension awards.

):>- Eliminate 36-payment pre -retirement death benefit awards.

Eliminate Automatic Joint and Survivor Benefit subsidies on all future pensioner awards;

reductions will be based on actuarial equivalence.

Eliminate all optional forms of payments on pension awards; si ngle participants will receive

a single life annuity with no death benefits and married participants will receive the reduced

QJSA or QOSA.

Supplemental Contributions

Supplemental Contributions will be payable based on the following schedule:

Contribution increases under all agreements as follows (all increases are "off-benefit", i.e.,

will not count toward benefit accruals):

Effective Date Increase in

monthly rate

Cumulative

increase

March 28, 2008 - December 31, 2012

January I,201 3

January 1, 2014

January 1, 20 15

January 1, 2016

January 1, 2017

January 1, 201 8

January 1, 2019

0.0%

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

0.0%

5.0%

10.3%

15.8%

21.6%

27.6%

34.0%

40.7%
July 2012 6

Implementation

Attachment A (continued)

Benefit reductions for active participants become effective when their employer's collective

bargaining agreement is renewed on or after April 27, 2008 - but no later than 180 days following

the expiration date of the prior collective bargain ing agreement.

An active participant 's employer will be the participant 's most recent employer prior to retirement.

Once an employer is determined, the Plan will search its records to determine when that employer's

collective bargaining agreement expired and the benefit reductions for its employees became

effective.

For a non-collectively bargained active participant (e.g., owner-operator , alumni, etc.) that has had

contributions made to the Plan under the terms of a subscription agreement, the effective date will

be July 1, 2009. Other categories of active participants who are automatically covered by the July 1,

2009 effective date include:

Non-bargained participants covered under the Plan by working in "related non-covered

employment.

Participants working in covered positions in the jurisdiction of a "related plan."

Participants worki ng in "recognized unrelated service."

Participants whose employer ceased to be a contri buting employer prior to July 2008.

Participants currently under a Plan "grace period" due to (I) incapacity based on a disability

that prevents them from working in covered service, (2) serving in the Armed Forces of the

United States, or (3) engaged in this industry in an ineligible classification.

Participants receiving workers' compensation benefits.

The benefits of Pensioners, surviving spouses and Alternate Payees who commenced receipt of

benefits prior to April 27, 2008 or, if applicable, the benefit reduction effective date (see above) are

not subject to reduction under the Default Schedule except to the extent provided under the terms of

the Pension Plan and/or to the extent permitted by law or regulation.