Page 26.0

Automotive Industries Pension Plan

Checklist Item #26

Does the application describe the plan’s experience with certain critical assumptions, including a 

disclosure for each of the 10 plan years immediately preceding the application that separately 

identifies:

 total contributions,

 total contribution base units,

 average contribution rates,

 withdrawal liability payments, and

 the rate of return on plan assets?

See section 6.03.

The application filed on behalf of the Automotive Industries Pension Plan includes an Actuarial 

Certification of Plan Solvency under ERISA Section 305(e)(9)(c)(i) and IRC Section 432(e)(9)(C)(i). 

This certification is attached as Document No. 7.1 to Checklist Item #7. A supplemental report titled 

Application under ERISA Section 305(e)(9) and IRC Section 432(e)(9) – Additional Information is 

provided as Document No. 26.1. Exhibit I of the supplementary report provides the total contributions, 

total contribution base units, average contribution rates, withdrawal liability payments and rates of 

return for the 10 plan years immediately preceding the suspension application.

Exhibit I of the report is based on upon our interpretation of the requirements under Revenue Procedure 

2016-27, Section 6.03.
Page 26.1.1

Automotive Industries Pension Plan Application under ERISA Section 305(e)(9) and IRC 

Section 432(e)(9)- Additional Information 

Copyright© 2016 by The Segal Group, Inc. All rights reserved. 
Page 26.1.2

* Segal Consulting 

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

T 415.263.8200 www.segalco.com 

September 15, 2016 

Board of Trustees 

Automotive Industries Pension Plan 

Alameda, CA 

Dear Trustees: 

As requested by the Trustees and required by ERISA Section 305(e)(9) and Internal Revenue Cod

(taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 2016-27), we have perfor

required as part of the application for proposed benefit suspensions permitted under ERISA Section 

because of the Plan's critical and declining status. These projections are in addition to our cert

suspensions of benefits are reasonably estimated to enable the Plan to avoid insolvency within the 

4245 and IRC Section 418E, assuming the suspensions of benefits continue indefinitely and both the 

and other plan changes become effective upon the proposed July 1, 2017 suspension effective date. 

These projections were performed in accordance with the Multiemployer Pension Reform Act of 2

exhibits outline the projections performed in accordance with the regulations. These projections ha

the Actuarial Valuation as of January 1, 2016, the Actuarial Certification of Plan Status as of J

Section 432, and the Actuarial Certification of Plan Solvency under ERISA Section 305(e)

432(e)(9)(C)(i) of Proposed Benefit Suspensions as of July 1, 2017, in accordance with generally ac

and practices and a current understanding of the law. The actuarial calculations were complete

Paul C. Poon, ASA, MAAA, EA. 
Page 26.1.3 Board of Trustees 

Automotive Industries Pension Plan 

September 15, 2016 

Page2 

Segal Consulting ("Segal") does not practice law and, therefore, cannot and does not provide l

interpretation on which the certification is based reflects Segal's understanding as an actuarial firmthe statute and the significance of its ramifications, Segal recommends that the Board of Trustees 

when making any decisions regarding compliance with ERISA and the Internal Revenue Code. 

Sincerely, 

Segal Consulting, a Member of the Segal Group 

By: 

J. Ttm Bzddle 

Senior Vice President Vice President & Associate Actuar

PXP/hy 

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of the Treasur
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

1

September 15, 2016 

APPLICATION UNDER ERISA SECTION 305(E)(9) AND IRC SECTION 432(E)(9) – 

ADDITIONAL INFORMATION

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”), has performed actuarial projections under ERISA 

Section 305(e)(9) and Internal Revenue Code Section 432(e)(9), taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 

2016-27, for the Automotive Industries Pension Plan based on participant data as of December 31, 2015 and asset values as of June 30, 

2016 in accordance with generally accepted actuarial principles and practices. It has been prepared at the request of the Board of Trustees 

to assist in meeting filing and compliance requirements under federal law, in particular the application requirements for a benefit 

suspension. This certification may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees and 

may only be provided to other parties in its entirety. 

The measurements shown in this actuarial certification are not applicable for other purposes. Future actuarial measurements may differ 

significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from 

that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; differences in statutory 

interpretation; differences in methodology, changes in plan provisions and changes in applicable law. Due to the legal requirements for 

this certification, it does not include an analysis of such future measurements.

This certification is based on the January 1, 2016 actuarial valuation, dated June 7, 2016, the Actuarial Certification of Plan Status as of 

January 1, 2016 under IRC Section 432, dated March 30, 2016, and the Actuarial Certification of Plan Solvency under ERISA Section 

305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) of Proposed Benefit Suspensions as of July 1, 2017, dated September 9, 2016. The 

information described in Exhibit I is based on information provided by the Fund Office and auditor. This certification reflects the changes 

in the law made by the Multiemployer Pension Reform Act of 2014 (MPRA), taking into account regulation §1.432(e)(9)-1 and Revenue 

Procedure 2016-27. Additional assumptions required for the projections (including those under MPRA), and sources of financial 

information used are summarized in Exhibit VIII. A summary of the proposed benefit suspensions is included in the Actuarial 

Certification of Plan Solvency referenced above. 

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretations on which 

this certification is based reflect Segal’s understanding as an actuarial firm. Based on discussions with legal counsel, it is our 

understanding that the proposed benefit suspensions satisfy the requirements for such as set forth in MPRA.

This certification was based on the assumption that the Plan was qualified as a multiemployer plan for the year. 

Page 26.1.4
Page 26.1.5 Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension 

Additional Information 

EIN 

I am a member of the American Academy of Actuaries and I meet the Qualification Standards of the American Ac

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certific

accurate. The assumptions and methodology used, with the exception of those specifically identified and describe

referenced above, are prescribed by law in regulation 1.432( e )(9)-1 (Exhibits II, III, IV and V for the required sensiti

Vice President & Associate Actuary 

Enrolled Actuary No. 14-06069 

Redacted by the U.S. Department of the Treasury
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

3

Certificate Contents

EXHIBIT I Past Experience for Certain Critical Assumptions

EXHIBIT II Development of Projected December 31, 2016 Assets

EXHIBIT III Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return 

is 1.00% Lower than Used in the Actuarial Solvency Certification

EXHIBIT IV Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return 

is 2.00% Lower than Used in the Actuarial Solvency Certification

EXHIBIT V Projections of Plan’s Solvency Ratio Assuming the Industry Level 

Assumption Continues Under the Same Trend as the Plan Experienced 

Over the Past 10 Years (-5.39%)

EXHIBIT VI Projections of Plan’s Solvency Ratio Assuming the Industry Level 

Assumption Continues Under the Same Trend as the Plan Experienced 

Over the Past 10 Years, Reduced By 1.00% (-6.39%)

EXHIBIT VII Projection of Funded Percentage

EXHIBIT VIII Actuarial Basis

Page 26.1.6
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

4

EXHIBIT I 

Past Experience for Certain Critical Assumptions

Year

Total 

Contributions

Total Contribution

Base Units (months)

Average Monthly 

Contribution Rate 

Withdrawal Liability 

Payments

Rate of Return on 

Plan Assets

2006 $30,011,983 75,015 $400.08 $2,736,447 14.03%

2007 28,578,123 71,943 397.23 6,472,440 7.58%

2008 26,678,110 65,874 404.99 9,634,101 -28.08%

2009 22,786,327 55,385 411.42 5,128,397 23.35%

2010 21,362,299 52,392 407.74 9,557,144 12.97%

2011 19,750,361 48,940 403.56 4,265,906 0.37%

2012 19,650,664 46,993 418.16 19,044,204 13.17%

2013 19,994,799 46,296 431.89 8,566,118 19.81%

2014 21,517,370 46,771 460.06 6,788,280 6.15%

2015 21,011,374 45,564 461.14 8,600,901 0.20%

Average Trend From 2006 to 2015 -5.39% 

Note: The average hourly contribution rates are estimated based on total contributions divided by the total contribution base units for the year. 

Page 26.1.7
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

5

EXHIBIT II

Development of Projected December 31, 2016 Assets

The actual change in Market Value of Assets from January 1, 2016 through June 30, 2016 is shown below. Contribution income, benefit 

payments, and administrative expenses for the period beginning January 1, 2016 and ending June 30, 2016, and the value of assets as of 

June 30, 2016 was based on an unaudited financial statement provided by the Fund Office. The value of assets was reduced by the 

withdrawal liability payments receivable. 

Plan Year Beginning January 1, 2016

From

January 1, 2016 Through

June 30, 2016

Projected from

July 1, 2016 Through

December 31, 2016

Total for

Plan Year

1. Market Value at beginning of 

period $1,192,990,400 $1,158,927,465 $1,192,990,400

2. Contributions 10,747,934 10,835,864 21,583,798

3. Withdrawal liability payments* 927,542 927,542 1,855,084

4. Benefit payments 67,119,171 69,390,987 136,510,158

5. Administrative expenses 1,221,722 1,545,000 2,766,722

6. Investment earnings 22,602,482 26,821,853 49,424,335

7. Market Value at end of period: 

(1)+(2)+(3)-(4)-(5)+(6) 1,158,927,465 1,126,576,737 1,126,576,737

Note: Investment earnings based on actual experience for the six-month period ended June 30, 2016 and an annual return of 4.75% for the remaining six months of the 

Plan Year.

* The expected withdrawal liability payments for the Plan Year was assumed to be payable ratably throughout the year.

Page 26.1.8
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

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EIN 94-1133245/ PN 001 

6

EXHIBIT III 

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than Used in the Actuarial Solvency 

Certification: Regulation 1.432(e)(9)-1(d)(5)(vi)(B)(1) and Revenue Procedure 2016-27 6.04(1)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2042. 

Year Beginning January 1 

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,120,930,032 $1,075,183,330 $1,046,030,236 $1,020,428,812

2. Contributions 10,835,864 22,300,208 22,946,915 23,612,375 23,612,375

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

4. Benefit payments 69,390,987 114,993,452 97,295,905 98,035,911 99,085,851

5. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

6. Investment earnings 21,175,147 48,325,233 46,677,071 50,401,440 51,544,197

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,120,930,032 $1,075,183,330 $1,046,030,236 $1,020,428,812 $994,703,837

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,190,176,782 $1,143,326,141 $1,118,464,723 $1,093,789,688

9. Solvency ratio: (8) ÷ (4) 10.350 11.751 11.409 11.039

2021 2022 2023 2024 2025

1. Market Value at beginning of year $994,703,837 $966,366,986 $939,364,994 $909,396,835 $878,679,981

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

4. Benefit payments 100,252,100 101,953,295 103,265,498 104,301,843 105,255,990

5. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

6. Investment earnings 50,161,373 53,258,609 51,666,491 52,079,907 50,200,335

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $966,366,986 $939,364,994 $909,396,835 $878,679,981 $844,864,869

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,066,619,086 $1,041,318,289 $1,012,662,333 $982,981,824 $950,120,859

9. Solvency ratio: (8) ÷ (4) 10.639 10.214 9.806 9.424 9.027

* For the period July 1, 2016 through December 31, 2016 and with an assumed annual investment return of 3.75% over that period.

Page 26.1.9
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

7

EXHIBIT III (continued)

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than Used in the Actuarial Solvency 

Certification: Regulation 1.432(e)(9)-1(d)(5)(vi)(B)(1) and Revenue Procedure 2016-27 6.04(1)

Year Beginning January 1

2026 2027 2028 2029 2030

1. Market Value at beginning of year $844,864,869 $808,213,724 $768,511,408 $727,954,895 $685,075,738

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588 1,239,796

4. Benefit payments 105,977,606 106,743,070 106,959,229 106,680,887 106,210,095

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343 3,940,322

6. Investment earnings 48,147,920 45,924,033 45,347,464 42,819,110 40,151,663

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $808,213,724 $768,511,408 $727,954,895 $685,075,738 $639,929,156

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $914,191,330 $875,254,478 $834,914,124 $791,756,625 $746,139,251

9. Solvency ratio: (8) ÷ (4) 8.626 8.200 7.806 7.422 7.025

2031 2032 2033 2034 2035

1. Market Value at beginning of year $639,929,156 $592,773,836 $544,511,767 $494,254,205 $442,238,598

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,217,664 565,916 347,308 287,020 - 

4. Benefit payments 105,339,265 104,177,985 102,793,936 101,213,175 99,542,320

5. Administrative expenses 4,000,730 4,060,712 4,120,543 4,179,808 4,238,670

6. Investment earnings 37,354,636 35,798,336 32,697,234 29,477,982 26,140,029

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $592,773,836 $544,511,767 $494,254,205 $442,238,598 $388,210,012

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $698,113,101 $648,689,752 $597,048,141 $543,451,774 $487,752,332

9. Solvency ratio: (8) ÷ (4) 6.627 6.227 5.808 5.369 4.900

Page 26.1.10
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

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EIN 94-1133245/ PN 001 

8

EXHIBIT III (continued)

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than Used in the Actuarial Solvency 

Certification: Regulation 1.432(e)(9)-1(d)(5)(vi)(B)(1) and Revenue Procedure 2016-27 6.04(1)

Year Beginning January 1 

2036 2037 2038 2039 2040

1. Market Value at beginning of year $388,210,012 $333,242,119 $276,612,988 $218,198,339 $158,084,831

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments - - - - - 

4. Benefit payments 97,836,892 95,796,204 93,767,730 91,539,104 89,312,212

5. Administrative expenses 4,297,436 4,355,928 4,413,957 4,471,719 4,528,884

6. Investment earnings 23,554,060 19,910,626 16,154,662 12,284,940 8,300,507

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $333,242,119 $276,612,988 $218,198,339 $158,084,831 $96,156,618

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $431,079,012 $372,409,192 $311,966,069 $249,623,935 $185,468,829

9. Solvency ratio: (8) ÷ (4) 4.406 3.888 3.327 2.727 2.077

2041 2042

1. Market Value at beginning of year $96,156,618 $32,319,678

2. Contributions 23,612,375 23,612,375

3. Withdrawal liability payments - - 

4. Benefit payments 87,057,749 84,709,833

5. Administrative expenses 4,586,076 4,642,830

6. Investment earnings 4,194,510 N/A

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $32,319,678 Insolvent

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $119,377,427 $51,289,223

9. Solvency ratio: (8) ÷ (4) 1.371 0.605

Page 26.1.11
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

9

EXHIBIT IV

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than Used in the Actuarial Solvency 

Certification: Regulation 1.432(e)(9)-1(d)(5)(vi)(B)(2) and Revenue Procedure 2016-27 6.04(2)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2037. 

Year Beginning January 1

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,115,283,326 $1,058,600,049 $1,018,493,857 $981,710,690

2. Contributions 10,835,864 22,300,208 22,946,915 23,612,375 23,612,375

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

4. Benefit payments 69,390,987 114,993,452 97,295,905 98,035,911 99,085,851

5. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

6. Investment earnings 15,528,441 37,388,658 35,723,974 39,219,697 40,080,734

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,115,283,326 $1,058,600,049 $1,018,493,857 $981,710,690 $944,522,253

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,173,593,501 $1,115,789,763 $1,079,746,601 $1,043,608,104

9. Solvency ratio: (8) ÷ (4) 10.206 11.468 11.014 10.532

2021 2022 2023 2024 2025

1. Market Value at beginning of year $944,522,253 $904,498,138 $865,295,008 $822,823,048 $779,097,520

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

4. Benefit payments 100,252,100 101,953,295 103,265,498 104,301,843 105,255,990

5. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

6. Investment earnings 38,474,108 41,057,472 39,162,690 39,071,233 36,854,490

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $904,498,138 $865,295,008 $822,823,048 $779,097,520 $731,936,563

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,004,750,238 $967,248,303 $926,088,546 $883,399,363 $837,192,553

9. Solvency ratio: (8) ÷ (4) 10.022 9.487 8.968 8.470 7.954

* For the period July 1, 2016 through December 31, 2016 and with an assumed annual investment return of 2.75% over that period.

Page 26.1.12
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

10

EXHIBIT IV

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than Used in the Actuarial Solvency 

Certification: Regulation 1.432(e)(9)-1(d)(5)(vi)(B)(2) and Revenue Procedure 2016-27 6.04(2)

Year Beginning January 1 

2026 2027 2028 2029 2030

1. Market Value at beginning of year $731,936,563 $681,614,349 $627,928,058 $572,735,325 $514,856,084

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588 1,239,796

4. Benefit payments 105,977,606 106,743,070 106,959,229 106,680,887 106,210,095

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343 3,940,322

6. Investment earnings 34,476,852 31,940,059 30,711,244 27,819,025 24,790,865

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $681,614,349 $627,928,058 $572,735,325 $514,856,084 $454,348,703

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $787,591,955 $734,671,129 $679,694,554 $621,536,971 $560,558,799

9. Solvency ratio: (8) ÷ (4) 7.432 6.883 6.355 5.826 5.278

2031 2032 2033 2034 2035

1. Market Value at beginning of year $454,348,703 $391,473,668 $326,632,653 $259,361,397 $189,891,611

2. Contributions 23,612,375 23,612,375 23,612,375 23,612,375 23,612,375

3. Withdrawal liability payments 1,217,664 565,916 347,308 287,020 - 

4. Benefit payments 105,339,265 104,177,985 102,793,936 101,213,175 99,542,320

5. Administrative expenses 4,000,730 4,060,712 4,120,543 4,179,808 4,238,670

6. Investment earnings 21,634,921 19,219,391 15,683,539 12,023,803 8,239,402

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $391,473,668 $326,632,653 $259,361,397 $189,891,611 $117,962,398

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $496,812,933 $430,810,638 $362,155,332 $291,104,786 $217,504,718

9. Solvency ratio: (8) ÷ (4) 4.716 4.135 3.523 2.876 2.185

Page 26.1.13
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

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EIN 94-1133245/ PN 001 

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EXHIBIT IV (continued)

Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than Used in the Actuarial Solvency 

Certification: Regulation 1.432(e)(9)-1(d)(5)(vi)(B)(2) and Revenue Procedure 2016-27 6.04(2)

Year Beginning January 1

2036 2037

1. Market Value at beginning of year $117,962,398 $43,965,777

2. Contributions 23,612,375 23,612,375

3. Withdrawal liability payments - - 

4. Benefit payments 97,836,892 95,796,204

5. Administrative expenses 4,297,436 4,355,928

6. Investment earnings 4,525,332 327,514

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $43,965,777 Insolvent

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $141,802,669 $63,549,738

9. Solvency ratio: (8) ÷ (4) 1.449 0.663

Page 26.1.14
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

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EXHIBIT V 

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-5.39% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years: Regulation 1.432(e)(9)-1(d)(5)(vi)(C)(1) and Revenue 

Procedure 2016-27 6.04(3)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2042. 

Year Beginning January 1 

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,126,576,737 $1,091,086,927 $1,071,578,216 $1,055,152,361 

2. Contributions 10,835,864 21,528,803 21,386,821 21,245,775 20,100,628

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

4. Benefit payments 69,390,987 114,993,452 97,295,905 98,035,911 99,085,851

5. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

6. Investment earnings 26,821,853 59,353,529 57,881,549 61,943,609 63,422,619

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,126,576,737 $1,091,086,927 $1,071,578,216 $1,055,152,361 $1,037,794,061 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,206,080,378 $1,168,874,122 $1,153,188,272 $1,136,879,912

9. Solvency ratio: (8) ÷ (4) 10.488 12.014 11.763 11.474

2021 2022 2023 2024 2025

1. Market Value at beginning of year $1,037,794,061 $1,016,966,126 $996,832,061 $972,916,018 $947,555,245 

2. Contributions 19,017,204 17,992,176 17,022,398 16,104,891 15,236,837

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

4. Benefit payments 100,252,100 101,953,295 103,265,498 104,301,843 105,255,990

5. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

6. Investment earnings 62,265,460 65,746,736 64,308,583 64,943,473 63,095,183

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,016,966,126 $996,832,061 $972,916,018 $947,555,245 $918,259,443 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,117,218,226 $1,098,785,357 $1,076,181,516 $1,051,857,088 $1,023,515,433

9. Solvency ratio: (8) ÷ (4) 11.144 10.777 10.422 10.085 9.724

* For the period July 1, 2016 through December 31, 2016.

Page 26.1.15
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

13

EXHIBIT V (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-5.39% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years: Regulation 1.432(e)(9)-1(d)(5)(vi)(C)(1) and Revenue 

Procedure 2016-27 6.04(3)

Year Beginning January 1

2026 2027 2028 2029 2030

1. Market Value at beginning of year $918,259,443 $885,251,880 $848,273,354 $809,658,056 $767,735,608 

2. Contributions 14,415,572 13,638,572 12,903,453 12,207,957 11,549,948

3. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588 1,239,796

4. Benefit payments 105,977,606 106,743,070 106,959,229 106,680,887 106,210,095

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343 3,940,322

6. Investment earnings 60,988,306 58,621,626 57,997,601 55,180,237 52,131,507

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $885,251,880 $848,273,354 $809,658,056 $767,735,608 $722,506,443 

8. Available resources:

(1)+(2)+(3)-(5)+(6) $991,229,486 $955,016,424 $916,617,285 $874,416,495 $828,716,538

9. Solvency ratio: (8) ÷ (4) 9.353 8.947 8.570 8.197 7.803

2031 2032 2033 2034 2035

1. Market Value at beginning of year $722,506,443 $674,169,919 $623,748,263 $570,113,915 $513,426,018 

2. Contributions 10,927,406 10,338,419 9,781,178 9,253,973 8,755,184

3. Withdrawal liability payments 1,217,664 565,916 347,308 287,020 - 

4. Benefit payments 105,339,265 104,177,985 102,793,936 101,213,175 99,542,320

5. Administrative expenses 4,000,730 4,060,712 4,120,543 4,179,808 4,238,670

6. Investment earnings 48,858,401 46,912,705 43,151,645 39,164,094 34,943,484

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $674,169,919 $623,748,263 $570,113,915 $513,426,018 $453,343,695 

8. Available resources:

(1)+(2)+(3)-(5)+(6) $779,509,184 $727,926,248 $672,907,851 $614,639,193 $552,886,015

9. Solvency ratio: (8) ÷ (4) 7.400 6.987 6.546 6.073 5.554

Page 26.1.16
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

14

EXHIBIT V (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-5.39% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years: Regulation 1.432(e)(9)-1(d)(5)(vi)(C)(1) and Revenue 

Procedure 2016-27 6.04(3)

Year Beginning January 1 

2036 2037 2038 2039 2040

1. Market Value at beginning of year $453,343,695 $390,990,055 $325,399,243 $256,333,172 $183,754,342 

2. Contributions 8,283,279 7,836,810 7,414,406 7,014,770 6,636,674

3. Withdrawal liability payments - - - - - 

4. Benefit payments 97,836,892 95,796,204 93,767,730 91,539,104 89,312,212

5. Administrative expenses 4,297,436 4,355,928 4,413,957 4,471,719 4,528,884

6. Investment earnings 31,497,408 26,724,511 21,701,209 16,417,224 10,861,790

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $390,990,055 $325,399,243 $256,333,172 $183,754,342 $107,411,711 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $488,826,947 $421,195,447 $350,100,902 $275,293,446 $196,723,922

9. Solvency ratio: (8) ÷ (4) 4.996 4.397 3.734 3.007 2.203

2041 2042

1. Market Value at beginning of year $107,411,711 $27,063,362 

2. Contributions 6,278,957 5,940,521

3. Withdrawal liability payments - - 

4. Benefit payments 87,057,749 84,709,833

5. Administrative expenses 4,586,076 4,642,830

6. Investment earnings 5,016,519 N/A

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $27,063,362 Insolvent

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $114,121,111 $28,361,053

9. Solvency ratio: (8) ÷ (4) 1.311 0.335

Page 26.1.17
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

15

EXHIBIT VI 

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-5.39% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years Reduced By 1.00% (-6.39%): Regulation 1.432(e)(9)-

1(d)(5)(vi)(C)(2) and Revenue Procedure 2016-27 6.04(4)

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through December 31, 2041. 

Year Beginning January 1 

2016* 2017 2018 2019 2020

1. Market Value at beginning of year $1,158,927,465 $1,126,576,737 $1,090,853,116 $1,070,869,463 $1,053,714,496 

2. Contributions 10,835,864 21,301,250 20,937,105 20,579,185 19,264,176

3. Withdrawal liability payments 927,542 1,770,284 1,724,241 1,682,096 1,528,096

3. Benefit payments 69,390,987 114,993,452 97,295,905 98,035,911 99,085,851

4. Administrative expenses 1,545,000 3,148,975 3,205,416 3,261,424 3,323,792

5. Investment earnings 26,821,853 59,347,271 57,856,322 61,881,086 63,306,613

6. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,126,576,737 $1,090,853,116 $1,070,869,463 $1,053,714,496 $1,035,403,738 

7. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,205,846,568 $1,168,165,368 $1,151,750,407 $1,134,489,589

8. Solvency ratio: (8) ÷ (4) 10.486 12.006 11.748 11.450

2021 2022 2023 2024 2025

1. Market Value at beginning of year $1,035,403,738 $1,013,411,648 $991,888,847 $966,377,743 $939,200,889 

2. Contributions 18,033,195 16,880,874 15,802,186 14,792,426 13,847,190

3. Withdrawal liability payments 1,528,096 1,528,096 1,528,096 1,463,863 1,260,964

3. Benefit payments 100,252,100 101,953,295 103,265,498 104,301,843 105,255,990

4. Administrative expenses 3,386,595 3,447,778 3,509,623 3,571,157 3,632,797

5. Investment earnings 62,085,315 65,469,303 63,933,734 64,439,857 62,461,740

6. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,013,411,648 $991,888,847 $966,377,743 $939,200,889 $907,881,997 

7. Available resources: 

(1)+(2)+(3)-(5)+(6) $1,113,663,748 $1,093,842,143 $1,069,643,240 $1,043,502,732 $1,013,137,987

8. Solvency ratio: (8) ÷ (4) 11.109 10.729 10.358 10.005 9.625

* For the period July 1, 2016 through December 31, 2016.

Page 26.1.18
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

16

EXHIBIT VI (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-5.39% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years Reduced By 1.00% (-6.39%): Regulation 1.432(e)(9)-

1(d)(5)(vi)(C)(2) and Revenue Procedure 2016-27 6.04(4)

Year Beginning January 1 

2026 2027 2028 2029 2030

1. Market Value at beginning of year $907,881,997 $872,643,933 $833,225,681 $791,918,670 $747,077,936 

2. Contributions 12,962,355 12,134,060 11,358,694 10,632,873 9,953,433

4. Withdrawal liability payments 1,260,964 1,260,964 1,260,964 1,249,588 1,239,796

4. Benefit payments 105,977,606 106,743,070 106,959,229 106,680,887 106,210,095

5. Administrative expenses 3,694,798 3,756,618 3,818,087 3,879,343 3,940,322

6. Investment earnings 60,211,022 57,686,412 56,850,647 53,837,034 50,575,952

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $872,643,933 $833,225,681 $791,918,670 $747,077,936 $698,696,700 

8. Available resources:

(1)+(2)+(3)-(5)+(6) $978,621,539 $939,968,751 $898,877,899 $853,758,823 $804,906,795

9. Solvency ratio: (8) ÷ (4) 9.234 8.806 8.404 8.003 7.578

2031 2032 2033 2034 2035

1. Market Value at beginning of year $698,696,700 $646,965,609 $592,826,622 $535,196,043 $474,217,885 

2. Contributions 9,317,408 8,722,026 8,164,688 7,642,965 7,154,579

4. Withdrawal liability payments 1,217,664 565,916 347,308 287,020 - 

4. Benefit payments 105,339,265 104,177,985 102,793,936 101,213,175 99,542,320

5. Administrative expenses 4,000,730 4,060,712 4,120,543 4,179,808 4,238,670

6. Investment earnings 47,073,832 44,811,767 40,771,904 36,484,841 31,942,851

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $646,965,609 $592,826,622 $535,196,043 $474,217,885 $409,534,325 

8. Available resources:

(1)+(2)+(3)-(5)+(6) $752,304,874 $697,004,607 $637,989,979 $575,431,060 $509,076,645

9. Solvency ratio: (8) ÷ (4) 7.142 6.691 6.206 5.685 5.114

Page 26.1.19
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

17

EXHIBIT VI (continued)

Projections of Plan’s Solvency Ratio Assuming the Industry Level Assumption Continues Under the Same Trend 

(-5.39% -- See Exhibit I) as the Plan Experienced Over the Past 10 Years Reduced By 1.00% (-6.39%): Regulation 1.432(e)(9)-

1(d)(5)(vi)(C)(2) and Revenue Procedure 2016-27 6.04(4)

Year Beginning January 1 

2036 2037 2038 2039 2040

1. Market Value at beginning of year $409,534,325 $342,138,129 $271,133,184 $196,256,016 $117,441,303 

2. Contributions 6,697,402 6,269,438 5,868,821 5,493,803 5,142,749

4. Withdrawal liability payments - - - - - 

4. Benefit payments 97,836,892 95,796,204 93,767,730 91,539,104 89,312,212

5. Administrative expenses 4,297,436 4,355,928 4,413,957 4,471,719 4,528,884

6. Investment earnings 28,040,729 22,877,751 17,435,698 11,702,307 5,664,640

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $342,138,129 $271,133,184 $196,256,016 $117,441,303 $34,407,597 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $439,975,021 $366,929,389 $290,023,747 $208,980,407 $123,719,808

9. Solvency ratio: (8) ÷ (4) 4.497 3.830 3.093 2.283 1.385

2041

1. Market Value at beginning of year $34,407,597 

2. Contributions 4,814,127

4. Withdrawal liability payments - 

4. Benefit payments 87,057,749

5. Administrative expenses 4,586,076

6. Investment earnings N/A

7. Market Value at end of year: 

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

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $34,635,648

9. Solvency ratio: (8) ÷ (4) 0.398

Page 26.1.20
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

18

EXHIBIT VII - (Regulation 1.432(e)(9)-1(d)(5)(vi)(D) and Revenue Procedure 2016-27 6.05)

Projection of Funded Percentage

The projected Market Value of Assets and Funded Percentage for the Plan Years beginning January 1, 2016 through 2063. 

Year Beginning January 1 

2017 2018 2019 2020 2021 

1. Value of Plan assets $1,126,576,737 $1,091,879,546 $1,074,017,425 $1,060,175,521 $1,046,752,658

2. Unit credit accrued liability 1,287,549,615 1,267,432,316 1,264,071,242 1,259,608,833 1,253,643,046

3. Funded Percentage: (1) ÷ (2) 87.5% 86.1% 85.0% 84.2% 83.5%

2022 2023 2024 2025 2026

1. Value of Plan assets $1,031,223,406 $1,017,861,588 $1,002,177,426 $986,635,198 $968,743,674

2. Unit credit accrued liability 1,245,964,756 1,235,875,984 1,223,620,783 1,209,311,257 1,192,869,724

3. Funded Percentage: (1) ÷ (2) 82.8% 82.4% 81.9% 81.6% 81.2%

2027 2028 2029 2030 2031

1. Value of Plan assets $948,788,699 $926,580,636 $904,739,736 $881,528,539 $857,049,050

2. Unit credit accrued liability 1,174,401,290 1,153,724,331 1,131,257,762 1,107,394,259 1,082,254,598

3. Funded Percentage: (1) ÷ (2) 80.8% 80.3% 80.0% 79.6% 79.2%

2032 2033 2024 2035 2036

1. Value of Plan assets $831,611,664 $806,769,869 $781,212,008 $755,253,311 $728,722,371

2. Unit credit accrued liability 1,056,165,627 1,029,366,070 1,002,049,177 974,385,361 946,433,232

3. Funded Percentage: (1) ÷ (2) 78.7% 78.4% 78.0% 77.5% 77.0%

2037 2038 2039 2040 2041

1. Value of Plan assets $703,633,677 $678,659,614 $653,796,861 $629,262,229 $605,079,969

2. Unit credit accrued liability 918,211,799 890,053,202 861,950,262 834,120,998 806,576,121

3. Funded Percentage: (1) ÷ (2) 76.6% 76.2% 75.9% 75.4% 75.0%

2042 2043 2044 2045 2046

1. Value of Plan assets $581,305,998 $559,440,579 $538,229,828 $517,820,684 $498,253,357

2. Unit credit accrued liability 779,371,367 752,627,384 726,395,953 700,812,120 675,899,225

3. Funded Percentage: (1) ÷ (2) 74.6% 74.3% 74.1% 73.9% 73.7%

Page 26.1.21
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

19

EXHIBIT VII - (Regulation 1.432(e)(9)-1 (d)(5)(vi)(D) and Revenue Procedure 2016-27 6.05) (continued)

Projection of Funded Percentage

Year Beginning January 1

2047 2048 2049 2050 2051

1. Value of Plan assets $479,606,970 $462,019,816 $445,616,004 $430,487,560 $416,671,218

2. Unit credit accrued liability 651,718,205 628,387,497 606,008,126 584,648,148 564,315,579

3. Funded Percentage: (1) ÷ (2) 73.6% 73.5% 73.5% 73.6% 73.8%

2052 2053 2054 2055 2056

1. Value of Plan assets $405,263,666 $395,298,981 $386,902,872 $380,109,505 $375,002,370

2. Unit credit accrued liability 545,091,000 526,907,437 509,849,542 493,902,891 479,101,161

3. Funded Percentage: (1) ÷ (2) 74.3% 75.0% 75.9% 77.0% 78.3%

2057 2058 2059 2060 2061

1. Value of Plan assets $371,648,647 $370,067,506 $370,300,779 $372,391,509 $376,356,858

2. Unit credit accrued liability 465,457,313 452,932,460 441,505,958 431,153,737 421,821,731

3. Funded Percentage: (1) ÷ (2) 79.8% 81.7% 83.9% 86.4% 89.2%

2062 2063

1. Value of Plan assets $382,243,074 $391,005,406

2. Unit credit accrued liability 413,479,989 406,074,745

3. Funded Percentage: (1) ÷ (2) 92.4% 96.3%

Page 26.1.22
Application Under ERISA Section 305(e)(9) and IRC Section 432(e)(9) for the Automotive Industries Pension Plan – 

Additional Information

EIN 94-1133245/ PN 001 

20

EXHIBIT VIII 

Actuarial Basis

Unless noted otherwise, the projections in this report are based on the data, assets, and assumptions described in the Actuarial Certification 

of Plan Solvency under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) of Proposed Benefit Suspensions as of 

July 1, 2017, dated September 9, 2016. 

Historical contribution amounts, contribution base units, and rates of return shown in Exhibit I were extracted from the January 1, 2016 

actuarial valuation report. 

For purposes of the projection of assets and liabilities for calculation of funded percentages: projected assets are the values used for the 

deterministic solvency projection for the proposed suspension in the Actuarial Certification of Plan Solvency under ERISA Section 

305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i), projected liabilities following the proposed benefit suspension are estimated by 

discounting the projected future benefit payments at each year at the 7.25% valuation interest rate. 

Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretation on 

which the certification is based reflects Segal’s understanding as an actuarial firm. Due to the complexity of the statute and the 

significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when making any decisions 

regarding compliance with ERISA and the Internal Revenue Code.

5449320v2/01149.036

Page 26.1.23