DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C.

March 27, 2020

Mr. Thomas Dalton

Mr. Rodney Toole

Board of Trustees

Composition Roofers Local 42 Pension Plan

205 W. 4th Street, Ste. 225

Cincinnati, OH 45202

Re: Composition Roofers Local 42 Pension Plan (Fund)

Application for Reduction of Benefits

Dear Mr. Dalton & Mr. Toole:

On February 6, 2020, you were notified that the Secretary of the Treasury (Treasury), in 

consultation with the Secretary of Labor (DOL) and the Pension Benefit Guaranty Corporation 

(PBGC), had reviewed your application (Application) for a reduction in benefits, which was 

submitted on June 28, 2019, and determined that the Application satisfied the requirements of 

subparagraphs (C), (D), (E), and (F) of section 432(e)(9) of the Internal Revenue Code (Code), 

which were added to the Code by the Multiemployer Pension Reform Act of 2014 (MPRA). The 

notification explained that, as required under MPRA, before any benefit reduction could go into 

effect, Treasury would administer a vote of eligible participants and beneficiaries to approve or 

reject the proposed benefit reduction.

The voting period began on February 19, 2020, and ended on March 13, 2020. The Fund identified 

486 participants and beneficiaries as eligible to vote, and ballots were delivered to 462 of these 

individuals (24 ballots were returned as undeliverable). Of the voters identified by the Fund who 

received a ballot, 168 (or 36.36 percent of all eligible voters who received a ballot) voted to reject 

the benefit reduction, 51 voted to approve the benefit reduction, and 243 did not return a ballot. 

Because a majority of voters identified as eligible by the Fund did not vote to reject the benefit 

reduction, the benefit reduction is permitted to go into effect. Treasury, in consultation with DOL 

and PBGC, has issued a final authorization to reduce benefits under the Fund as described in the 

Application, effective April 1, 2020, subject to the conditions described below.

Under MPRA, the Fund’s ability to reduce benefits is conditioned on the Fund’s compliance with 

subparagraphs (C) and (E) of section 432(e)(9). Under subparagraph (C), after the benefit 

reduction goes into effect, the Fund’s plan sponsor must make an annual determination that, 

despite all reasonable measures to avoid insolvency, the Fund is projected to become insolvent 

unless a benefit reduction continues. The Fund’s plan sponsor must maintain a written record of 

these annual determinations, and this record must include a description of the factors considered to 

determine whether all reasonable measures have been taken to avoid insolvency. The written 

record must be made available to participants and beneficiaries. If the Fund’s plan sponsor fails to 

satisfy the annual plan sponsor determination requirement for a plan year (including maintaining 

the written record), then the reduction of benefits will expire as of the first day of the following 
Mr. Thomas Dalton

Mr. Rodney Toole

Board of Trustees Composition Roofers Local 42 Pension Plan

March 27, 2020

Page 2

plan year.1 

Subparagraph (E) of section 432(e)(9) establishes rules that apply to any benefit improvements that 

are made under the Fund during the period that the benefit reduction remains in effect.

A copy of this letter will be posted on the Treasury Department website. Please contact Treasury 

staff if you have any questions or need any additional information.

Sincerely,

Danielle Norris

MPRA Director

cc: Michael A. Ledbetter

Michael Rust

 1 26 C.F.R. § 1.432(e)(9)-1(c)(5).