Bricklayers & Allied C.-aftsmcn Local No.7 Pension Plan 

Checklist Ttcm #05 

Does tlu: application include the plan actuary's certi It cation of critic.al and declining stants and the 

supporting illustrations, including: 

• the plan-year-by-plan-ycar projections demonstrating projected insolvency during 

the relevant period; and 

• separately identifying the ava ilable resources (and the market value of assets and 

changes in cash flow) during each of those years? 

Sec section 3.0 I. 

Document 5. 1 provides the cett ification of critical and declining status of the Pension Plan's 

actuary. Document 5.2 provides supplemental reports that are based on the acn~ary's interpretation 

of the requirements under Revenue Procedure 2016-27, Section 3.0 1. For a discussion of the 

actuarial assumptions, see Checklist Item #6 of this application. 

5. 1 
3.01 Plan Actua ry's Certification of Critical and Declining Status 

Document 5.1 

Actuuo·y's Certification of 

Criti cnl and Declining Status 

The following is the Pension Plan's Aclloarial Certification of Plan Status as of May I, 

20 15, us required under Internal Revenue Code (IRC) § 432. Tltis certification, which designated 

the Pension Plan as meeting the "critical und declining status" for the cun·ent plan year, was filed 

on July 29. 2015. Supplemental reports that include year-hy-year solvency projections and tl1e 

market value of assets, contributions, investment earnings, benefit payments and plan expenses arc 

provided in Document 5.2, Exhibits I and II. The reports are based on the actuary's interpretation 

of the requirements under Revenue Procedure 2016-27, Section 3.01. The actuarial certification 

under the Pension Protection Act is included as Exhibit III. 

For the actuarial certification, sec the l(>llowing pages. 

5.2 
June 28,2016 

United Actuarial 

Services, Inc. 

1\C(Lf.:-triCS. <·lncJ (Ofl<>liii;Jnl<; 

The Honorable Jacob .f. Lew 

U.S. Secreta1·y of the Treasury 

U.S. Depa1·tment of the Treasury 

1500 Pennsylvania Avenue, NW 

Washington, DC. 20220 

Rc: Application for Approval of the Suspension of Benefits under the Bricklayers & 

Allied Craftsmen Local No. 7 Pension Ph111 

Dear Secretary Lew: 

As required by the Board ofTmstees of the Bricklayers & Allied Craftsmen Local No.7 

Pension Plan and as required by ERISA § 305(e)(9) and Interna l Revenue Code (IRC) § 

432(e)(9) (taking into account Temporary Regulation§ 1.432(e)(9)-IT, Proposed Regulation§ 

1.432(e)(9)· 1 and Revenue Procedure 2016-27), United Actuarial Services, Inc. has prepared 

supplemental information as part ol' the application for proposed benefit suspension permitted 

under ERJSA § 305 and IRC § 432 because of the Plan's critical and declining status. This 

information is based on, and is in addition to, our Actuarial Certification of Plan Status as of 

May I, 20 15 under IRC § 432, dated July 29, 2015. The purpose is to provide information 

required under Revenue Procedure 2016-27, Section 3.0 1, not explicitly shown in that 

certification. 

The measurements shown 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; and changes in plan 

provisions or applicable law. This supplement was based on the assumption that the Plan was 

qualified as a multiemployer plan for the year. 

United Act\1arial Services. Inc. does not provide, nor charge for, investment, tax or legal 

advice. None of the comments made herein should be construed as constituting such advice. We 

are not a wart! of any direct or material indirect financial interest or relationship that could create 

a conflict of interest that would impair the objectivity of our work. 

I am a member of the Ameiican Academy of Actuaries and meet the Qualification 

Standards of the American Academy of Actuaries to render the actuarial opinion contained 

I 1590 Nortll Mcnd1an Str<.:ct, SlJite 6 10 • ,~rmel. ln dlil~,t346032-4 ~29 • {3 17) 580·8670 • Fax (3 17) ~80 865 1 
Redacted by the U.S. Department 

of the Treasury
Sec the following pages. 

Document 5.2 

Supplemental Reporto> 

5.5 
Checklist 5 

Supplcmtntal l nfonuatlon to Actuarial Cerl'lficafit)n of Pbo St:•tus as of M:ty 1, 2016 under JH.C Section 432 

Brkkl9ycrs & Allied Craftsmen Lvcal l\Q. 1 Pension Pl:tn 

EXHJBlT 1- Sol\'ency l'roje(•tion 

The projected Markel V~ c of Asset~ and A vailabk Resources llx the PlaJl Yeisr$ beginning y I. 2016 through April 30~ 2025 

Ycur Bc!!ionint!' Mot\' 1 

2016 2017 2Cl l8 2019 2020 2021 

I. ).lhwkel Vah1e at he '. l)fVt:al· 14,626,261 12,792.803 11.396,338 9,914,722 X,307 ,600 658~-~ 2. Contributions X48,542 952,000 ?52.000 952.000 952,000 952,000 

.1,_ 1 Vi hdnnv~ l Jiabiliti' paynlcnts _ 0 () 0 0 0 0 

4. ne efi~meuts 3,305.351 2.92_0,007 2,984,565 3,012,847 3,027,796 3.02~-~ 5. Administrntive exoenses 240,000 120,000 120.000 120,000 120,000 20,000 

..£:.. Investment earniJ!.gs ___ 863.352 761 ,542 670.949 573,725 468.776 356.7()2 

7. M;wkel Value at end 1)1' year 

I 1 n -t2l+Ol-!4l-<sl+<6l 12,792.803 11,396.338 9,9 14.722 X,307,6<l0 6,SRO,S81 4.7 ~ 

X. I ~i~.; ~le ri~~~urce~: I -(2 +(3 i- 5)+(61 16.098.15<1 14.386,345 12,899,2X7 I 1,320,447 9,608.376 7.769,2X2 

Ye;lr BePinninu l\·hlJ I -

2022 2023 2024 

I. Mal'ket Value at h(c,. or vear 4,747,078 2.7>3.994 497,204 

2. Contnbutions 952,000 952,000 952.000 -

~ \Vithdnnval liabili ~· ~a~·mcnts _: - - 4. Jlcm,: li l Ol.IVIIlt!lll:; 3.080.706 3.l70:639 3,163,006 - 5. Administrative eX.>enscs 120,000 120,000 120 000 

6. Jnvc-.stmcm_c_;_~mif!gs 235,623 I 0 I .~49 (4.1,294 i 7 Markel V(lluc llt end vf ycnr 

1- (_1)-(2)-(3)-{4)-(5)+{6) 2,733.994 4~7.204 lltl>Ol\•t:nt 

8. A vailublt::: resoun.:t:S: 

(I )-(2}:(:ll:ill:( 6) __ 5,814,700 3,667,843 1,2&5,910 

56 
Chrcklist s 

S uJmlcmcnlal lnfonn:dion to Aclu!tri:d CcrCification of l'lau Status as of May I, 2016 under lltC Scclion 432 

Brickl:•ycJ-:s & Allied Cr:tftsmen Loc:tl ~o. 7 .,ension l'lan 

EXI·IIHIT 11 - l'rojected Total Contrihution Ras<' Uni1S ~tnd Co.,Cdbution Rates 

r Year Beginning Total Coutl'ibulion R1asc nif.s Contribution Rate -Mny I IHuu<S) IHourl)~ 

i 2016 125,000 $6.79 

I 2017 1•10.000 6.80 

2018 140,000 6.80 

2019 140,<100 6.80 

2020 140.000 6.80 

202 1 140,000 6.80 

2022 ' 140,000 6.80 

2023 I 140.000 6.80 

2024 140,000 6.80 I __ 2025 I 140,000 6.80 

5.7 
June 20.20 16 

United Actuarial 

Services, Inc. 

Ant..IHnCfi ;1nc·t ( on~uu.·u ll<: 

Board of Trustees 

Bricklayers and Allied Craftsmen Local No.7 Pension Plan 

Akron, Ohio 

Rc: .2016 Actuurial Certification under the Pension l'•·otcction Act 

Dear Trustee: 

The following information is intended to comply with the annual ccrtilication requirements of IRC 

section 432, with respect to the funded status of the Bricklayers and Allied Craftsman Local No. 

7 Pension Plan. 

Identifying lnf01·mnfion 

Plan Name: Bricklayers and Allied Craftsman Local No. 7 Pension Plan 

EIN/Plan #: 34-6666798/00 I 

Plan year of Ce1tification: year beginning May I, 2016 

Plan Sponsor: Board of Trustees of Bricklayers and Allied Craftsman Local No. 7 Pension Plan 

Sponsor Address: 33 Fitch Blvd, Austintown, 011 44515-2202 

Sponsor Telephone: (330) 270-0453 

Emollcd Actuary Name: Kathryn A. Garrity, FSA, EA, MAAA 

Enrollment Number: 14-05379 

Actuary Address: 11590 N. Meridian St., Suite 610, Carmel, rN 46032 

Actuary Telephone: (3 17) 580-8688 

Certification of Plan Status 

1 certify that the !li?_q.vc-named Plan is in the fo llowing status as of May I. 2016 Call that apply are 

eckc : 

Safe--Neither Endangered nor Critical Status 

Safe Due to Special Rule 

Endangered Status 

Seriously Endangered Status 

Projected to be in Critical Status within 5 years 

Critical Status 

CriticaJ and Declining Status X 

I 1590 North Melldldn Stret•t. SUite 610 • Ci1rmel. lndid'!flh46032-4529 • (317) 580-8670 • Fax (o 

EX1liBIT III 
United Actuarial Services, Inc. 

/\< lu rutc•o;, ;1ncl Consu lta nts 

Board of TrusCccs -2-

These certifications m·c based on the fi)llowing results: 

Projected funded rations of' May I , 20 16: 46.7% 

Previously emerged from critica l stmus using IRC Section No 

432(e)(4)(3)(2) special emergence rule: 

First projected deficiency: April 30,2017 

At least 8 year of bene lit payments in plan assets: Yes 

.June 20,2016 

Date o r projected insolvency: End of2024-2025 plan year 

Ratio of inactive to active participants: 2.35 

Certification of Scheduled Prog1·css 

I certify that the above-named Plan has made the scheduled progress as outlined in the 2016 

rehabilitation plan ugdate as of May I, 2016. Projections indicate that the Plan is not projected to 

emerge from Critical at the end of the rehabilitation plan period as specified in the updated 

rehabilitation plan. This rehabilitation plan, however, includes the usc of the "exhaustion of all 

reasonable measures" clause of lRC 432(c)(3 )(A)(ii). Therefore, we interpret scheduled progress 

for this Plan to mean continued usc of all reasonable measures to forestall insolvency. Due to 

competitive pressures, the trustees do not believe any further contribution or benefit changes could 

ctnTently be supported without having a net negative impact on the Fund. The trustees continue to 

monitor this situation annually. 

These ce11ifications are intended to be in good faith compliance with the necessary disclosures for 

certification and represent my best estimate o f the Plan's funded position. 

Basis for Result 

The cet1ifications utilize the assumptions, methods, plan provisions and demographic data as 

disclosed in the May I, 2015 actuarial valuation report with the following exceptions: 

• Based on the April 30, 20 16 unaudited fi nancial statements provided by the plan 

administrator, the asset return for the 2015-2016 plan year is assumed to be -3.45%. We 

also updated the contributions, benefit payments, and expenses for the 2015-2016 plan year 

based on these financial statements. Expenses for the 2015-2016 plan year were increased 

by 30,000 and expenses for the 201 6-2017 plan year were increased from 120,000 to 

240,000 to account for additional fees associated with critical and declini ng status. 

5.9 
Redacted by the U.S. Department of the 

Treasury
IRoprint on Fund Letterh ead) 

Notice of Critical and Oecllnlng Status 

For 

Bricklayers and Allied Craftsmen Local No. 7 Pension Plan 

This is to inform you that on June 20. 2016 the Plan Actuary certified to the U.S. Department of the Treasury and to the Plan 

Sponsor that the Plan is in critical and declining status for the plan year beginning May 1. 2016. Federal law requires that you 

receive this notice. In the future you will receive an annual update of this status and the progress the Plan is making towards 

the goals described below. 

Critical Status 

The Plan is still considered to be in critical and declining status because it is projected to sallsfy the following 

Projected accumulated funding deficiency within the current or next 3 plan years 

The Plan's actuary projects that, if no further action is taken, the Plan will have an accumulated funding deficiency for 

the plan year ending April 30, 2017. Note. "accumulated funding deficiency" means that contributions would be 

insufficient to satisfy Federal requirements. 

Projected insolvency within the current or next 15 plan years 

The Plan's actuary projects that, if no further action is taken, the Plan will have a projected insolvency for the plan year 

ending April 30, 2025. 

As required by law, the Plan Actuary's certification includes only conlribuhon rate Increases that have been codified in collective 

bargaining or participation agreements. 

Rehabilitation Plan and Possibility of Reduction In Benefits 

Federal taw requires pension plans in critical and declining status to adopt a rehabilitation plan aimed at restoring the financial 

health of the Plan. A rehabilitation plan may involve reductions to future benefit accruals, ineteases to contribution rates. or both. 

The law also permits pension plans lo reduce, or even eliminate, benefits called "adjustable benefits" as part of a rehabilitation 

plan. The Plan offers the following adjustable benefits which may be reduced or eliminated (for all participants. Including those 

not yet in pay status) as part of any rehabilitation plan the Pension Plan may adopt: 

Post-retirement death benefits; 

• Disability benefits (if not yet in pay status); 

• Early retirement benefit or retirement type subsidy; 

• Death benefit payment options other than a qualified joint and survivor annuity (QJSA); 

• Benefit increases made within the fast 60 months. 

You should have already received a Summary or Material Modifications in September of 2008 thai explains the benefit changes. 

But you should know that whether or net the Plan reduces adjustable benefits, effective as or August 28, 2008, the Plan JS not 

permitted to pay any lump sum benefits in excess of $5.000 (or any other payment in excess of the monthly amount paid under 

a single life annuity) while it is in critical and declining status. 

In addition the trustees or a critical and declining plan may recommend benefit reductions. The reduction must eliminate the 

insolvency (no more, no less), must be within allowable limits and must be equitably allocated. All reasonable measures must 

also have already been taken. Any such recommended benefit reductions are also subject to a participant vote. If the Trustees 

of the Plan determine lhallhe above benefit reductions are necessary, you will receive a separate notice in the future identifying 

and explaining the effect or those reductions. 

Future Experience and Possible Adjustments 

The rehabilitation plan is based on a number or assumptions about future experience and may need to be adjusted in I he future 

if such assumptions are not met. Additional contribution rate increases and/or reductions in the rate at which benefits are 

earned may be needed irthe Fund were to suffer asset returns below the expected 7.75% in the 2016-17 plan year or later, a 

drop in the hours worked. or poor experience from other sources. n. at some point in lime, the Trustees determine that further 

adjustments are necessary, you will receive a separate notice identifying and explaining the effect of those changes. 

Where to Get More Information 

You have a right to receive a copy of the rehabilitation plan and any updates to that plan. To receive a copy or the latest 

version. you may contact the Benefit Office at 33 Filch Boulevard, Austintown. OH. 44515·2202 or by telephone at (800) 435-

2388. 

5.11