BRY~ N ~A [ 

August 17, 2016 

VIA ELECTRONIC MAIL 

Eric Berger 

Department of the Treasmy 

MPRA Office, Room 1224 

1500 Pennsylvania Avenue, N.W. 

Washington, DC 20220 

BRYAN CAVE l lP 1290 Avenue of the Americas. New York. NY 10104·3300 

T: 212 541 2000 F: 212 541 4630 bryancave.com 

Kyle 1'. Flaherty 

Direcr. 2 12/541-2 134 

Fnx: 212/ 541- 1358 

kpflahcrt)·@bry:lnca\·c.com 

Re: Provision of Additional Infotmation and Documents relating 

to the United Furnin1re Workers Pension Fund A's Application 

for a Suspension of Benefits ("Application"); 

Subrnission Reference Codes 433a0ffd-543d-4d4a-baa3-c1 e 1 b49cadf1 

tbt.Q1lgh 9c12b863-fc8e-4a06:9de4-d596735l bead 

Dear Mr. Berger: 

In connection with your Office's completeness review of the above-referenced Application 

and our telephone conference on Monday, August 15 regarding same, please accept this 

supplemental submission addressing each of the items that you identified on our call. This 

supplemental submission has been submitted to the Secretary via \\'W\\·.trcasur_r·!',lli:.impra pursuant 

to the requirements of Revenue Procedure 2016-27 ("Rev. Proc. 2016-27"). 

1. Attached behind Tab 1 is the demonstration required pursuant to Section 4.01 of 

Rev. Proc. 2016-27. This demonstration is intended to supersede the demonstration provided in 

Exhibit 9 of the original submission of this Application. 

2. Attached behind Tab 2, and as required pursuant to Section 4.05(1) of Rev. Proc. 

2016-27, are redacted copies of each type of individualized benefit statement that was provided to 

participants and beneficiaries of the Pension Fund. These individualized notices were sent to all 

Pension Fund participants and beneficiaries with the model notice prepared by the PBGC and 

Treasuty for joint partitioning/benefit suspension applications. The Pension Fund has 7 different 

statuses that required 17 different types of individualized notices, and redacted copies of each of 

those different types of notices are provided in Tab 2. The notices that were sent to contributing 

employers and to employee organizations representing participants under the Pension Fund did not 

include any of the individualized notices. 

1943240.1 
Eric Berger 

August 17,2016 

Page2 

3. The Pension Fund's restated plan document as of October 30, 2009 and each of the 

Pension Fund's plan amendments following the restatement were provided to Treasury in Exhibit 

18 of the original submission to this Application. 

4. Attached behind Tab 3 are copies of the Pension Fund's two most recent actuarial 

valuation reports. 

Please let me know if you require any additional information. 

Redacted by the U.S. 

Department of the Treasury 

Enclosures (Tab 1, Tab 2 and Tab 3) 

cc: Dee Anne Walker, Pension Fund Director 

Christian Benjaminson, Cheiron 

11>432•10.1 
---------------------------------------------x 

Application of the United Furniture : 

Workers Pension Fund A for Approval : 

Of Suspension of Benefits - · 

SUPPLEMENTAL SUBMISSION 

(8/17 /16) 

EIN: 13-5511877 /PN:001 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x 

TAB1 

• Actuarial Demonstration that Limitations on Individual · 

Suspensions are Satisfied (Rev. Proc. 2016-27 -Section 

4.01). 

19436113 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United Furniture Workers Pension Fund A 

EIN: 13-5511877 / PN: 001 

Revenue Procedure 2016-27, Section 4.01 

Demonstration that Limitations on Individual Suspensions are Satisfied 

As required by Section 4.01 of Revenue Procedure 2016-27, we prepared the following examples 

to illustrate how the proposed suspension effective May 1, 2017 satisfies the limitations on 

suspension. The proposed suspension does not affect participant or beneficiary who is: 

(1) currently receiving less than 110% of the PBGC guarantee, (2) over age 80 as of the effective 

date, and (3) disabled under the Plan. 

Example #1 illustrates the guarantee-based limitation under IRC §432(e)(9)(D)(i), Example #2 

the age-based limitation under IRC §432(e)(9)(D)(ii), and Example #3 the disability-based 

limitation under IRC §432(e)(9)(D)(iii). We also provided an Example #4 that combines all three 

limitations; however, given the disability there is no impact on the participant’s final benefit.

Please note, the Plan’s Disability Pension is payable to a participant who has been awarded a 

Social Security Disability. The monthly disability benefit is equal to the accrued benefit without 

reduction and is payable as of the date of entitlement established by Social Security. The benefit 

payable does not change upon reaching Normal Retirement Age. 

These examples were prepared solely for the United Furniture Workers Pension Fund A for the 

purpose described. Other users of this information are not intended users as defined in the 

Actuarial Standards of Practice, and Cheiron assumes no duty or liability to such other users. 
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

United Furniture Workers Pension Fund A 

EIN: 13-55 11877 I PN: 001 

Revenue Procedure 2016-27, Section 4.01 

Demonstration that Limitations on Individual Suspensions are Satisfied 

Effective Date of Suspension 

Birth Date 

Months Until Age 80 1 

Applicable Percentage 

([3] + 60, not greater than 100%) 

Accrued Monthly Benefit 

Credited Service 

Accrual Rate ([5] + [6]) 

PBGC Guaranteed Accrual Rate 2 

PBGC Guaranteed Benefit [(6) x (8)] 

110% PBGC Guaranteed Benefit 

(110% x [9], but not more than [5]) 

Monthly Benefit Reduction 

([5] - [10]) 

Age-based Limitation ([4] x [11]) 

Benefit After Suspension ([5] - [12]) 

Example #1: 

Retiree Under 

Age 75 

5/1/2017 

3/31/1949 

142 

100.00% 

$1,259.36 

40.250 

$31.2884 

$26.2163 

$1,055.21 

$1,160.73 

$98.63 

$98.63 

$1 160.73 

Example #2: 

Retiree Over 

Age 75 

511/2017 

4/2011939 

23 

38.33% 

$1,292.76 

35.667 

$36.2453 

$29.9340 

$1,067.66 

$1,174.43 

$11 8.33 

$45.36 

$1 7.40 

Example #3: 

Disabled 

Participant 

5/112017 

2116/1950 

153 

100.00% 

$228.34 

NOT 

APPLICABLE 

FOR DISABLED 

PARTICIPANTS 

$228.34 

Example #4: 

Disabled 

Participant, 

Over Age 75 

5/1/2017 

114/1940 

32 

53.33% 

$113.35 

NOT 

APPLICABLE 

FOR DISABLED 

PARTICIPANTS 

$113.35 

Number of months dlll'i.ng the period begliming with the month after the month u1 which the suspension of benefits is effective and endli1g with the 

month duru1g which the participant attali1s age 80, per Regulation § 1.432( e)(9)-1 ( d)(3). 

2 100% of first $ 11 plus 75% of the next$33 

<:-HEIRON ~ 2 
---- --- ------ --------------------------------x 

Application of the United Furniture 

Workers Pension Fund A for Approval 

Of Suspension of Benefits -

SUPPLEMENTAL SUBMISSION 

(8/17 /.16) 

EIN: 13-5511877 /PN:001 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x 

TAB2 

• Redacted copies of 17 different types of individualized -

notices that were distributed to Pension Fund 

participants and beneficiaries. 

1943683 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #1 -- BEFORE NORMAL RETIREMENT AGE, 

REDUCED 

ACTIVE PARTICIPANT 

If you sta1t receiving your benefit on June l, 2040 in the form of a Single Life Annuity, your 

monthly benefit without the proposed reduction would be $739.70. Under the proposed reduction 

your monthly benefit in the same form would be reduced to $667.98. These numbers are just 

estimates. The actual amount you receive will depend on how long you work and when you 

begin receiving payments. For more information, see the Plan's summary plan description. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May l, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

This estimate is based on the following inf01mation from Plan records: 

• Your accrued monthly benefit as of March I, 2016 is $739.70. 

• You have 19.0833 years of credited service under the Plan. 

• You will be age 42 as of May 31 , 2017 (the last day of the month in wh ich the benefit 

reduction starts). There is no reduction for participants or beneficiaries over age 80 and 

reductions are limited for participants or beneficiaries between ages 75 and 80. 

• Your benefit is not based on disability. 

In the event that the proposed suspension is .approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $607.25. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #2 --OVER NORMAL RETIREMENT AGE, REDUCED 

ACTIVE PARTICIPANT 

Your benefit without the proposed reduction as of March 1, 2016 in the form of a Single Life 

Atmuity is $1,103.04. Under the proposed reduction your monthly benefit in the same form will 

be reduced to $990.42. These amounts will be different if you elect a Joint & Survivor form of 

payment, but the impact depends on your spouse's age. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your accrued monthly benefit as of March 1, 2016 is $1,103.04. 

• You have 26.5833 years of credited service under the Plan. 

• You will be age 69 and 5 months as of May 31, 20 17 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• Your benefit is not based on disability. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work histoty, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $900.38. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (61 5) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #3 --NOT REDUCED 

ACTIVE PARTICIPANT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your accrued monthly benefit as of March 1, 2016 is $12.34. 

• You have 0.8333 years of credited service under the Plan. 

• You will be age 37 and 6 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). 

• Your benefit is not based on disability. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $11.55. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #4 --REDUCED 

ALTERNATE PAYEE RECEIVING A PORTION OF YOUR 

FORMER SPOUSE'S BENEFIT 

Your current monthly benefit is $244.96. Under the proposed reduction your monthly benefit 

will be reduced to $228.15 beginning May 1, 2017. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your cmTent monthly benefit as of March I, 20 16 is $244.96. 

• Your former spouse had 22.7500 years of credited service under the Plan. 

• You will be age 62 and 7 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $207.41. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: SAMPLE #5 -- NOT REDUCED 

STATUS: ALTERNATE PAYEE RECEIVING A PORTION OF YOUR 

FORMER SPOUSE'S BENEFIT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May I, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

This estimate is based on the following inf01mation from Plan records: 

• Your current monthly benefit as ofMarch 1, 2016 is $76.88. 

• Your former spouse had 28.1667 years of credited service under the Plan. 

• Your former spouse will be age 69 and 10 months as of May 31, 2017 (the last day of the 

month in which the benefit reduction starts). 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes instants 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $70.05. 

Plan Office Contact Information 

If you believe the infom1ation used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

This estimate of the efiect ofthe proposed reduction ofbenefits has been prepared for: 

NAME: SAMPLE #6 --NOT REDUCED 

STATUS: BENEFICIARY ENTITLED TO A SURVIVORSHIP BENEFIT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March l , 2016 is $50.93. 

• You have 28.4167 years of credited service under the Plan. 

• Your spouse would have been age 55 and 11 months as of May 31, 2017 (the last day of 

the month in which the benefit reduction starts). 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. · 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $50.93. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: SAMPLE #7 --REDUCED 

STATUS: BENEFICIARY RECEIVING SURVIVORSHIP BENEFITS 

Your current monthly benefit is $328.43. Under the proposed reduction your monthly benefit 

will be reduced to $323.69 beginning May 1, 2017. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 20 17. If the benefit reduction starts later, the effect of the proposed. reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March I, 20 16 is $328.43. 

• You have 17.0833 years of credited service under the Plan. 

• You will be age 75 and 11 months as of May 3 1,2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $293.30. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (6 15) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORI(ERS PENSION FUND A 

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

NAME: SAMPLE #8 --NOT REDUCED 

STATUS: BENEFICIARY RECEIVING SURVIVORSHIP BENEFITS 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be dif1erent. 

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

• Your current monthly benefit as ofMarch l , 20 16 is $84.63. 

• You have 27.2500 years of credited service under the Plan. 

• You will be age 74 and 10 months as ofMay 31,2017 (the last day ofthe month in which 

the benefit reduction starts). 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work hist01y, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $84.63. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 3721 0, (61 5) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #9 --NOT REDUCED (SINGLE) 

DISABLED PARTICIPANT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March 1, 2016 is $211.82. 

• You have 18.0833 years of credited service under the Plan. 

• You will be age 85 and 6 months as of May 31, 20 17 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• You retired under a Disability A ward Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, te1minated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $208.59. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #10 --NOT REDUCED (MARRIED) 

DISABLED PARTICIPANT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March l, 2016 is $95.27 (with a $47.64 monthly 

survivor annuity for your spouse). 

• You have 9.7500 years of credited service under the Plan. 

• You will be age 74 and 5 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). 

• You retired under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work histoty, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $95.27. 

Plan Office Contact Information 

If you believe the infonnation used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #11 --REDUCED (SINGLE) 

RETIRED PARTICIPANT 

Your current monthly benefit is $578.28. Under the proposed reduction your monthly benefit 

will he reduced to $548.75 begim1ing May I, 2017. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May I, 2017. If the benefit reduction stat1s later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as ofMarch I, 2016 is $578.28. 

• You have 19.1667 years of credited service under the Plan. 

• You will be age 76 and 8 months as ofMay 31,2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work histoty, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $486.42. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #12 --REDUCED (MARRIED) 

RETIRED PARTICIPANT 

Your current monthly benefit is $1,068.10 (with a $534.05 monthly survivor annuity for your 

spouse). Under the proposed reduction your monthly benefit will be reduced to $976.97 (with a 

$534.05 monthly survivor annuity for your spouse) beginning May 1, 2017. 

The proposed reduction is pem1anent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March 1, 2016 is $1,068.10 (with a $534.05 monthly 

survivor annuity for your spouse). 

• You have 31.6667 years of credited service under the Plan. 

• You will be age 74 and 2 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by . 

PBGC is estimated to be $888.16. 

Plan Office Contact Information 

If you believe the infonnation used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #13 ""NOT REDUCED (SINGLE) 

RETIRED PARTICIPANT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March l, 20 16 is $59.19. 

• You have I 0.9167 years of credited service under the Plan. 

• You will be age 84 as of May 31, 2017 (the last day of the month in which the benefit 

reduction starts). There is no reduction for participants or beneficiaries over age 80 and 

reductions are limited for participants or beneficiaries between ages 75 and 80. 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in stants 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $59. 19. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #14 -- NOT REDUCED (MARRIED) 

RETIRED PARTICIPANT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your current monthly benefit as of March 1, 2016 is $574.83 (with a $287.42 monthly 

survivor annuity for your spouse). 

• You have 23.9167 years of credited service under the Plan. 

• You will be age 83 and 3 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• You did not retire under a Disability Award Pension. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, tem1inated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $496.89. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #15 -- BEFORE NORMAL RETIREMENT AGE, 

REDUCED 

TERMINATED VESTED PARTICIPANT 

If you start receiving your benefit on September 1, 2035 in the fom1 of a Single Life Annuity, 

your monthly benefit without the proposed reduction would be $491.93. Under the proposed 

reduction your monthly benefit in the same form would be reduced to $370.31. These numbers 

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

you begin receiving payments. For more information, see the Plan's summary plan description. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

This estimate is based on the following inf01mation from Plan records: 

• Your accrued monthly benefit as ofMarch 1, 2016 is $491.93. 

• You have 9.4167 years of credited service under the Plan. 

• You will be age 46 and 9 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• Your benefit is not based on disability. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work history, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $336.65. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 3 721 0, ( 615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #16 --OVER NORMAL RETIREMENT AGE, REDUCED 

TERMINATED VESTED PARTICIPANT 

Your benefit without the proposed reduction as of March 1, 2016 in the form of a Single Life 

Ammity is $209.85. Under the proposed reduction your monthly benefit in the same form will 

be reduced to $188.00. These amounts will be different if you elect a Joint & Survivor form of 

payment, but the impact depends on your spouse's age. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction starts on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your accmed monthly benefit as of March 1, 20 16 is $209.85. 

• You have 4.9167 years of credited service under the Plan. 

• You will be age 68 and 5 months as of May 3 1, 2017 (the last day of the month in which 

the benefit reduction starts). There is no reduction for participants or beneficiaries over 

age 80 and reductions are limited for participants or beneficiaries between ages 75 and 

80. 

• Your benefit is not based on disability. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work hist01y, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $170.91. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

IN THE UNITED FURNITURE WORKERS PENSION FUND A 

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

NAME: 

STATUS: 

SAMPLE #17 --NOT REDUCED 

TERMINATED VESTED PARTICIPANT 

Your monthly benefit would not change under the proposed reduction. 

The proposed reduction is permanent. 

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

a final benefit calculation. This was done assuming that the proposed benefit reduction sta11s on 

May 1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your 

benefit might be different. 

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

• Your accrued monthly benefit as of March 1, 20 16 is $121.26. 

• You have 12.3333 years of credited service under the Plan. 

• You will be age 66 and 8 months as of May 31, 2017 (the last day of the month in which 

the benefit reduction starts). 

• Your benefit is not based on disability. 

In the event that the proposed suspension is approved, the actual effect of the suspension on you 

may be different than the amounts in this notice due to additional work histo1y, changes in status 

as an active, terminated or retired participant, changes in marital status, and approval of a new 

QDRO or changes to an existing QDRO. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by 

PBGC is estimated to be $121.26. 

Plan Office Contact Information 

If you believe the information used to calculate your estimate is wrong, please contact the Plan 

office at 1910 Air Lane Drive, Nashville, TN 37210, (615) 889-8860. 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x 

Application of the United Furniture : 

Workers Pension Fund A for Approval ~ 

Of Suspension of Benefits - · 

SUPPLEMENTAL SUBMISSION 

(8/17 /16) 

EIN: 13-5511877 /PN:001 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x 

TAB3 

• Pension Fund's two most recent actuarial valuation 

reports. 

194.16113 
Actuarial Valuation Report for the 

United Furniture Workers 

Pension Fund A 

as of March 1, 2014 

Produced by Cheiron 

February 2015 

Classic Values, Innovative Advice 
Table of Contents 

Letter ofTransmittal ............................................................................................................ i 

Foreword ........... , ................................................................................................................ iii 

Section I Summary ...................................................................................................... 1 

Section II Assets .......................................................................................................... 7 

Section III Liabilities ..................................................................................................... 9 

Section IV Contributions .............................................................................................. 13 

Section V Unfunded Vested Benefits ......................................................................... 21 

Section VI Reorganization Status ................................................................................ 22 

Section VII F ASB ASC Topic #960 ............................................................................ .23 

Appendix A Membership Information ........................................................................... 24 

Appendix B Summary ofMajor Plan Provisions ........................................................... 28 

Appendix C . Actuarial Assumptions and Methods ......................................................... 30 

-c+tEIRON 
Classic Values, Innovative Advice 

February 3, 2015 

Board of Trustees 

c/o Ms. Dee Anne Walker, Secretary-Treasurer/Director 

United Furniture Workers Pension Fund A 

1910 Air Lane Drive 

Nashville, Tennessee 37210 

Dear Trustees: 

At your request, we have prepared this report to present the Actuarial Valuation of the United Furniture Workers Pension Fund 

A (the "Plan") as of March I, 2014. This report contains information on the Plan's assets and liabilities and also discloses 

contribution levels, including the minimum required amount as mandated by Federal law. This report is for the use of the Plan 

and its auditors in preparing financial reports in accordance with applicable law and accounting requirements. 

Your attention is called to the Foreword in which we refer to the general approach employed in the preparation of this report. 

The Summary section discusses the long-term funded status and emerging issues facing the Trustees. We also comment on the 

sources and reliability of both the data and the actuarial assumptions used. Those comments are the basis for our certification 

that this report is complete to the best of our knowledge. The results of this report are only applicable to the 2014 Plan Year 

and rely on future Plan experience conforming to the underlying assumptions. To the extent that actual Plan experience 

deviates from the underlying assumptions and methods, or there are any changes in Plan provisions or applicable laws, the 

results would vary accordingly. 

To the best of our knowledge, this report and its contents have been prepared in accordance with generally recognized and 

accepted actuarial principles and practices which are consistent with the Code of Professional Conduct and applicable 

Actuarial Standards of Practice set out by t~e Actuarial Standards Board. Furthermore, as credentialed actuaries, we meet the 

Qualification Standards of the American Academy of Actuaries to render the opinion contained in this report. This report does 

not address any contractual or legal issues. We are not attorneys and our firm does not provide any legal services or advice. 

1000 Atrium Way, Suite 403. Mount Laurel. NJ 08054 Tel: 877.243.4766 ·Fax: 609.257.0093 www.cheiro~.us 
Board ofTrustees 

United Furniture Workers Pension Plan A 

February 3, 2015 

This report was prepared solely for the Plan for the purposes described herein. This valuation report is not intended to benefit 

any third party, and Cheiron assumes no duty or liability to any such party. 

Sincerely, 

Cheiron 

Redacted by the U.S. Department of the 

reasury 

Christian E. Benjaminson, FSA, EA, MAAA 

Principal Consulting Actuary 

~-HE IRON 

Redacted by the U.S. 

Department of the Treasury 

Gene M. Kalwarski, FSA, EA, MAAA 

Principal Consulting Actuary 

i i 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

FOREWORD 

Cheiron has performed the Actuarial Valuation of the United 

Furniture Workers Pension Fund A as of March I, 2014. The 

purpose of this report is to: 

1) Measure and disclose, as of the valuation date, the financial 

condition ofthe Plan; 

2) Provide specific information and documentation required 

by the Federal Government and the auditors of the Plan; and 

3) Review past and expected trends in the financial conditions 

of the Plan. 

An actuarial valuation establishes and analyzes Plan assets, 

liabilities and contributions on a consistent basis, and traces the 

progress of each from one year to the next. It includes 

measurement of the Plan's investment performance as well as an 

analysis of Actuarial Liability gains and losses. 

Section I - Summary presents key valuation results and compares 

this year's results to last year's results. 

Section II - Assets contains exhibits relating to the valuation of 

assets. 

Section lll- Liabilities shows the various measures of liabilities. 

Section IV - Contributions develops .the minimum and maximum 

contributions. 

Section V - Unfunded Vested Benefits (UVB) shows the 

development of the UVB as of March 1, 2014 that would be 

allocated to employers that withdraw before February 28, 2015 . 

Section VI - Reorganization Status contains a demonstration that 

the Plan is not in reorganization. 

Section VII - F ASB ASC Topic #960 Disclosure provides 

information required by the Plan's auditor. 

The appendices to this report contain a summary of the Plan's 

membership at the valuation date, a summary of the major 

provisions of the Plan, and the actuarial methods and assumptions 

used in the valuation. 

In preparing our report, we relied on information (some oral and 

some written) supplied by the Fund Office and Joseph Warren & 

Co, A Division of Rogoff and Company PC. This information 

includes, but is not limited to, the Plan provisions, employee data, 

and financial information. We performed an informal examination 

of the obvious characteristics of the data for reasonableness and 

consistency in accordance with Actuarial Standard of Practice #23. 

The actuarial assumptions, taken individually, reflect our 

understanding and best estimate of the likely future experience of 

the Plan. The results of this report are dependent upon future 

· experience conforming to these assumptions. To the extent that the 

actual Plan experience deviates from the underlying assumptions 

and methods, or there are any changes in Plan provisions or 

applicable laws, the results would vary accordingly. 

Finally, in preparing this report, we have conformed to generally 

accepted actuarial principles and practices which are consistent 

with the Code of Professional Conduct, and applicable Actuarial 

Standards of Practice. set out by the Actuarial Standards Board. 

.C-ttEIRON Ill 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION I 

SUMMARY 

The table below sets out the principal results of this year's valuation and compares them to last year's results. 

Table I-I 

United Furniture Workers Pension Fund A 

Summary of Principal Results 

3/1/2013 3/112014 

Participant Counts 

Actives 1,358 1,105 

Terminated Vesteds 3,420 3,487 

In Pay Status 5,624 5,596 

Total 10,402 10,188 

Financial Information 

Market Value of Assets (MV A) $ 78,766,444 $ 77,060,732 

Actuarial Value of Assets (AVA) 75,375,639 74,249,342 

AVA as a% ofMVA 95.7% 96.4% 

Present Value of Future Benefits $ 174,843,385 $ 174,603,761 

Actuarial / PPA Liability $ 168,065,456 $ 168,388,149 

Surplus I (Unfunded) based on Actuarial Value of Assets $ (92,689,817) $ (94, 138,807) 

Funded Ratio based on Actuarial Value of Assets 44.8% 44.1% 

Present Value of Vested Benefits $ 167,514,376 $ 167,900,413 

Surplus I (Unfunded) based on Market Value of Assets $ (88, 747 ,932) $ (90,839,681) 

Gain I (Loss), Minimum Funding, and Cash Flows 

Actuarial Asset Gain I (Loss) $ (3,275,024) $ 4,596,770 

Liability Gain I (Loss) $ 32,255 (568,0 18) 

Total Normal Cost (Unit Credit plus Admin. Expenses) $ 2,032,964 $ 2,047,388 

ERISA Minimum Funding before Credit Balance 9,290,923 12,080,801 

ERISA Credit Balance (Beginning of Year) (13,752,769) (20,415,717) 

Prior Year Contributions (net from all sources) $ 3,422,872 $ 7,552,748 

PriorY ear Benefit Payments 13,270,161 13,367,997 

Prior Year Administrative Expenses 1,140,659 1,155,762 

Prior Year Total Investment Income (net of expenses) 5,489,670 9,170,731 

Change 

( 18.6%) 

2.0% 

( 0.5%) 

( 2.1 %) 

( 2.2%) 

( 1.5%) 

( 0.1 %) 

0.2% 

1.6% 

0.2% 

2.4% 

0.7% 

30.0% 

48.4% 

120.7% 

0.7% 

1.3% 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACIUARJAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION I 

SUMMARY 

Following is an analysis of the Plan's results for the prior year 

followed by historical results for the last ten years. After that a . . , proJectiOn of future results is shown. Please note this valuation was 

prepared using census data and financial information as of the 

valuation date, March I, 2014. Therefore, events following that 

date are not, and should not be, reflected in this report. The next 

valuation will reflect all membership and investment experience 

changes through February"28, 2015. 

General Comments on Prior Year Results: 

Investment and liability experience and their effect on future costs 

traditionally have been the focus of year to year analyses. 

o The Market Value of Assets returned 12.51% for the Plan 

Year ending February 28, 2014. For long-term planning the 

Plan develops an Actuarial Value of Assets usina a 

smoothing method which phases in investment gains "'and 

losses over five years. On this basis the Actuarial Value of 

Assets returned 13.84%. Comparing this return to the longterm investment assumption of 7.50% results in an actuarial 

asset gain of$4.60 million. 

o The Plan experienced a liability loss totaling $0.57 million. 

Combined with the actuarial investment gain of $4.60 

million, the Plan had a net actuarial gain of $4.03 million. 

o The funding ratio (Actuarial Value of Assets as a percentage 

of Actuarial Liability) decreased from 44.8% to 44.1 %. 

Based on Market Value of Assets, · the funding ratio 

decreased from 46.9% to 45.8%. 

The Pension Protection Act of 2006 (PPA) added a significant 

layer of new considerations related to the Plan's PPA Funded 

status. 

o The Plan remains in "Critical" status under the Pension 

Protection Act (PPA) for the 2014 Plan Year because of the 

current Funding Deficiency. The PP A status is re-determined 

annually. 

o A Rehabilitation Plan was prepared in December 2008 

modifying adjustable benefits and requiring annual 

contribution increases of 5.5% beginning March I, 2009. 

This Rehabilitation Plan is based on the reasonable measure 

(exhaustion) method and is annually monitored. 

o In May, we certified that the Fund is making scheduled 

progress because all active employers have adopted the 

Rehabilitation Plan provisions for the duration of their most 

recent collective bargaining agreement 

o The funding ratio is an important measure that is used in 

determining the PPA zone, which as noted, has declined over 

the past year. 

o The period of time until a Funding Deficiency occurs is also 

an important measure that is used for PPA testing. The Plan 

currently has a Funding Deficiency which increased from 

$13.8 million as of March I, 2013 to $20.4 million as of 

March 1, 2014. The Funding Deficiency is projected to grow, 

however under the PPA there is no excise tax due as lono- as 

"' the Plan has a valid Rehabilitation Plan. 

.C++E.IRON 2 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH l, 2014 

In addition, please note that: 

SECTION I 

SUMMARY 

o Active membership declined by 18.6% over last year, mainly 

due to the withdrawals of Film co Ind. and Hufcor Inc. 

o The Plan received $7.55 million in contributions (including 

Withdrawal Liability payments of $4.2 million) and paid 

$14.52 million in benefits and expenses for the year ending 

February 28, 2014. Comparing these two amounts shows a 

negative net cash flow of $6.97 million, which means the 

Plan is currently using investment returns to pay for benefits 

and expenses not covered by contributions. 

o The large increase in the Minimum Required Contribution 

was due to a credit base being almost completely recognized. 

The remaining amount will be recognized this year. 

o The Plan assesses Withdrawal Liability based on a 7.00% 

interest rate assumption. The Unfunded Vested Benefits 

(UVB) decreased from S102.1 million as of March 1, 2013 to 

$100.3 million as ofMarch 1, 2014. 

~+lEI RON 

Historical Review: It is important to take a step back from 

the results and view them in the context of the Plan's recent 

history. On the next few pages, we present a series of charts 

which display key results from the last ten years. 

3 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION I 

SUMMARY 

Assets & Liabilities: In this graph the gold bars represent the 

value of vested benefits already earned and the gray bars are the 

additional benefits if all participants were fully vested. The lines 

represent the Actuarial Value of Assets and Market Value of 

Assets, respectively. The percentages shown are ratios of the 

Actuarial Value of Assets to the Actuarial Liability. 

Vested Liability 

...,.Assets Smoothed 

Actuarial I PPA Liability 

....._Assets Market 

73 80/ 55 7o/c 59 7"/ 54.1% 47.6% 44.8% 44.1% 78.4% . / O • • • / O 

• The Funded Ratio (assets at Actuarial Value as a percent of 

Actuarial Liabilities) has decreased over the last four years and 

is now 44.1 %. 

• The five-year average compounded investment return is 13.0% 

on the Market Value and 7.7% on the Actuarial Value; as 

compared to our 7.5% assumption. 

Minimum Funding: The next chart shows the contributions paid 

to the Plan (green line), the Minimum Required Contribution 

before the Credit Balance (red line) and the Credit Balance (gray 

area). When the red line is greater than the green line the Credit 

Balance generally decreases. 

2005 2006 2007 2008 2009 2010 2011 2012 2013 

• Contributions have been less than the Minimum Required 

Contribution since 2007. 

• A Funding Deficiency occurred at the end of the 2009 Plan 

Year and will continue to grow if actual contributions continue 

to be less than the Minimum Required Contribution. However, 

under the PP A there is no excise tax due as long as the Plan has 

a valid Rehabilitation Plan. 

-c-HEIRON 4 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH l, 2014 

SECTION I 

SUMMARY 

Participation: The chart below shows the participants of the Plan 

at successive valuations. The numbers above each bar represent the 

number of inactive members to active members at each valuation 

date. 

• The inactive-to-active ratio has more than tripled over the nineyear period shown above. Primarily due to employer 

withdrawals the ratio jumped to 8.2 inactives to every one 

active in the Plan. 

• The active population has declined steadily over the period 

shown, with an average annual decline of 12.4% per year 

during the nine-year period shown and 10.7% per year for the 

prior three years. 

Cash Flow: Plan cash flow is a critical measure, as it reflects the 

ability to have funds available to meet benefit payments without 

having to make difficult investment decisions, especially during 

volatile markets. 

...,_Net Cash Flow (w/o lnv) 

• The Plan's net cash flow has averaged negative $9.1 million 

per year for the period shown, which represents 

approximately 12% of the current Market Value of Assets. 

• The implications of a plan in negative cash flow are that the 

impact of market fluctuations can be more severe. This is 

because as assets are being depleted to pay benefits in down 

markets, there is less principal that is available to be 

reinvested during favorable return periods. 

.C-HEIRON 5 
Future Outlook: 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION I 

SUMMARY 

In this section we move away from viewing a single year's results 

or historical trends and focus on the future ofthe Plan. Below we 

present a projection of the Plan's assets, contributions, and benefit 

payments. This projection assumes annual returns of7.50%, a 10% 

annual membership decline, and 5.5% compounding contribution 

increases. The Plan is projected to be insolvent shortly after 

March I, 2021. At that time the benefit payments would drop to 

the PBGC guarantee level as illustrated in the graph and the PBGC 

would provide financial assistance to the Plan. 

{:+tEl RON 6 
Assets at Market Value: 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION II 

ASSETS 

Assets at Actuarial Value: 

Market values represent "snap-shot" or "cash-out" values which 

provide the principal basis for measuring financial performance 

from one year to the next. · 

For long-term planning, actuaries commonly use smoothing 

techniques to mitigate the short-term volatility exhibited by the 

capital markets. The Plan currently phases in investment gains and 

losses over five years. The Actuarial Value of Assets is also 

constrained so that it cannot exceed 120% of the Market Value and 

cannot be less than 80% of the Market Value. The table below 

shows the development of the Actuarial Asset Value. 

Table II - 1 

Statement of Assets at Market Value, March 1 

Assets 

Short Term Obligations 

Common Stocks 

Intech Institutional Large Cap Growth Fund 

Fidelity Growth International Fund 

Fidelity Emerging Markets Fund 

Rothchild SMID Ftind 

Pimco Bond Fund 

BPIF Non-Taxable LP 

State Street Global - MSCI 

Wellington Global Total Return Fund 

JPMCB Strategic Property Fund 

State Street Global - Daily 

Robeco BP- All Cap Value Fund 

Mortgage Receivable 

Cash 

Fixed Assets less accumulated depreciation 

Receivables 

Employer Contributions 

Accrued Interest & Dividends 

Liabilities 

Accrued Expenses and payroll taxes 

Total Market Value 

2013 

$ 285,675 

5,439,582 

6,324,339 

9,477,899 

1,163,098 

3,858,083 

14,659,765 

9,213,225 

0 

5,580,448 

9,265,968 

0 

4,764,272 

1,300,000 

1,022,264 

22,312 

$ 6,520,433 

14,037 

2014 

$ 521,691 

5,479,771 

6,344,495 

6, 175,892 

696,793 

6,063,210 

14,597,028 

7,847,418 

3,078,000 

4,369,390 

8,339,847 

2,922,000 

5,736,405 

1,260,000 

1,136,95 1 

34,066 

$ 2,592,801 

15,452 

$ (144,956) $ (150,478) 

$ 78,766,444 $ 77,060,732 

Table II- 2 

Development of Actuarial Value of Assets as of March 1, 2014 

Market Value of Assets as of March I, 2014 $ 77,060,732 

Plan Investment Percent Percent Amount 

Year Gains I {Losses) Recotmized Deferred Deferred 

2009 $ 15,359,240 100% 0% $ 0 

201 0 6,51 1,385 80% 20% 1,302,277 

2011 (3,803,566) 60% 40% (1,521 ,426) 

201 2 (4,321) 40% 60%. (2,593) 

2013 3,791 ,415 20% 80% 3,033,132 

Total $ 2,811,390 

Preliminary Actuarial value as ofMarch 1, 2014 $ 74,249,342 

Corridor for Actuarial Value 

80% of Market Value $ 61,648,586 

120% of Market Value $ 92,472,878 

Actuarial Value of Assets as of March 1, 2014 $ 74,249,342 

-as a percent of Market Value of Assets 96.4% 

-c-HEIRON 7 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARJAL VALUATION REPORT AS OF MARCH 1, 2014 

Changes in Market Value: 

The components of asset change are: 

• Contributions 

• Benefit payments 

• Expenses 

• Investment income (realized and unrealized) 

SECTION II 

ASSETS 

Actuarial Gains/Losses from Investment Performance: 

The specific changes during the 20 I 3 Plan Year are presented 

below: 

The following table calculates the investment related gain/loss for 

the Plan year on both a Market Value and Actuarial Value basis. 

The Market Value gain/loss is an appropriate measure for 

comparing the actual asset performance to the long-term 7.5 0% 

assumption. The gain/loss on the Actuarial Value basis is one 

component of the Plan's experience gain/loss recognized in 

minimum funding. 

Table U -3 

Changes in Market Values 

Total Value of Assets - March I, 2013 S 

Contributions S 

Investment Return (Net) 

Benefit Payments 

Other Income I Adjustments 

Administrative Expenses 

rr otal Value of Assets - March 1, 20 14 $ 

78,766,444 

3,643,116 

9,170,731 

(13,367,997) 

4,200 

(1.155.762 ) 

77,060,732 

Table II- 5 

Asset Gain I (Loss) 

Item Market Value Actuarial Value 

March I, 2013 Value 

Contributions 

Benefit Payments 

Administrative Expenses 

Expected Investment Earnings (7.50%) 

Other 

Expected Value on February 28, 2014 

Investment Gain I (Loss) 

March I, 2014 Value 

Return 

$ 78,766,444 

3,643, 116 

(I 3,367 ,997) 

( 1,155,762) 

5,379,316 

4,200 

$ 73,269,317 

3.791,415 

s 77,060,732 

12.51% 

$ 75,375,639 

3,643,116 

(I 3,367,997) 

(I ,085,000) * 

5,086,814 

N/A 

$ 69,652,572 

4.596.770 

$ 74,249,342 

13.84% 1 

Market Value for valuation purposes was determined as follows: 

*Assumed Expenses, payable beginning of year 

Table II - 4 

Reconciliation with Market Value from Financial Statement 

Market Value of Assets on Financial Statement 

Additional Employer Contributions 

Withdrawal Liability Payments Receivable 

Net 

IMarket Value of Assets for Valuation Purposes 

March 1.2014 

$ 75,065,931 

$ 2,337,801 

. (343,000) 

1,994,801 

$ 77,060,732 

..C++EIRON 8 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION ill 

LIABILITIES 

In this section, we present detailed information on Plan liabilities 

including: 

• Disclosure of plan liabilities at March 1, 2013 and March 

l,2014;and 

• Statement of changes in these liabilities during the year. 

Disclosure: 

Several types of liabilities are calculated and presented in this 

report. Each type is distinguished by the people ultimately using 

the figures and the purpose for which they are using them. 

• Present Value of Future Benefits: Used for analyzing the 

fmancial outlook of the Plan, this represents the amount of 

money needed today to fully pay off all future benefits 

assuming participants continue to accrue benefits. 

• Actuarial Liabilities: Used for communicating the current 

levels of liabilities for funding purposes. These liabilities 

are used to determine statutory Minimum Funding 

Requirements and maximum tax deductible contributions. 

These liabilities represent the total amount of money 

needed to fully pay off all obligations of the Trust using 

funding assumptions and assuming no further accrual of 

benefits. For the Plan, the Trustee's chose the Unit Credit 

Cost Method to determine the liability. 

-c-HEIRON 

• Accrued Liabilities: These liabilities are required for 

determining PP A funded status and for accounting 

disclosure purposes (F ASB ASC 960). For that purpose 

they are referred to as the present value of accumulated 

benefits. These liabilities are determined using the Unit 

Credit Cost Method, and so, for the Plan will equal the 

Actuarial Liabilities. 

• Vested Liabilities: Required for accounting purposes, this 

liability represents that portion of the Accrued Liabilities 

which are vested. 

• Current Liabilities: Used for Federal Government 

compliance purposes, the calculation of thls liability is 

defined by the Internal Revenue Code regulations and is 

used to determine maximum allowable tax deductible 

contributions. 

The table below discloses most of these liabilities for the 

current valuation and the prior one. With respect to each 

disclosure, a subtraction of the appropriate value of Plan assets 

yields an unfunded liability for each respective type. 

9 
I 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION III 

LIABILITIES 

Table III - 1 

Liabilities/Net Surplus (Unfunded) 

3/1/2013 

ACTUARlAL I PPA LIABILITY 

Actuarial/ PP A Liability $ 168,065,456 

Actuarial Value of Assets 75,375,639 

Net Surplus (Unfunded) $ (92,689,817) 

VESTED LIABILITY 

Actuarial I PPA Liability $ 168,065,456 

Less Present Value of Non-Vested Benefits 551,080 

Vested Liability $ 167,514,376 

Market Value of Assets 78,766,444 

Net Surplus (Unfunded) $ (88,747,932) 

CURRENT LIABILITY (RP A 1994) $ 281,383,375 

Market Value of Assets ~8,766,444 

Net Surplus (Unfunded) $ (202,616,931) 

-c-HEIRON 

3/1/2014 

$ 168,388,149 

74,249,342 

$ (94,138,807) 

$ 168,388, I 49 

487,736 

$ 167,900,413 

77,060,732 

$ (90,839,681) 

$ 283,826,417 

77,060,732 

$ (206,765,685) 

10 
Allocation of Liabilities by Type: 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION III 

LIABILITIES 

The Plan's participants may qualify for a benefit upon death, termination, and disability as well as upon retirement. The value of the liabilities 

arising from each of these sources is sho\vn in the following table: 

Benefit T...YPe 

Unit Credit Normal Cost s 

Actuarial I PPA Liability 

Actives $ 

Terminated Vesteds 

Retirees and Beneficiaries 

Total $ 

RP A Current Liability Normal Cost $ 

A Current Liability 

Actives $ 

Terminated Vesteds 

Retirees and Beneficiaries 

Total $ 

'vested RP A Current Liability 

Actives $ 

Terminated Vesteds 

Retirees and Beneficiaries 

Total $ 

Table III- 2 

ALLOCATION OF LIABILITIES BY TYPE 

March 1, 2014 

Retirement . Termination Death 

727,564 $ 118,292 $ 19,154 

23,491,260 $ 2,704,291 $ 581,386 

0 38,557,276 0 

83.676,523 0 6,855.432 

107,167,783 $ 41,261,567 $ 7,436,818 

1,469,546 $ 410,836 $ 15,887 

45,095,824 $ 8,716,586 $ 453,288 

0 82,026,160 0 

117.274,!272 0 9,430,945 

162,370,803 $ 90,742,746 $ 9,884,233 

32,371,308 ·$ 21,149,130 $ 449,736 

0 82,026,160 0 

117.274.979 0 9 430 945 

149,646,287 $ 103,175,290 $ 9,880,681 

-c~EIRON 

Disability Total - $ 32,378 $ 897,388 

$ 824,502 $ 27,601,439 

0 38,557,276 

11,697,479 102,229,434 

$ 12,52 I ,981 $ 168,388,149 

$ 66,378 $ 1,962,647 

$ 1,628,620 $ 55,894,318 

0 82,026,160 

19,200,015 145,905,939 

$ 20,828,635 $ 283,826,417 

$ 1,604,536 $ 55,574,710 

0 82,026,160 

19,200,015 145.905,939 

$ 20,804,551 $ 283,506,809 

ll 
Changes in Liabilities: 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION TIT 

LIABILITIES 

The liability shown in Table III-3 is subject to change at successive 

valuations as the experience of the Plan varies from that assumed 

in the valuation. The liability may change for any of several 

reasons, including: 

There were no changes to assumptions, methods, or Plan 

provisions since last year. 

• New hires since the last valuation 

• Benefits accrued since the last valuation 

• Plan amendments 

• Interest on Actuarial Liabilities 

• Benefits paid to retirees 

• Participants leaving employment at rates different from 

expected 

• Changes in actuarial assumptions 

• Changes in actuarial methods 

.C-HEIRON 

Table III - 3 

Actuarial (PP A) Liabili tv 

Liabilities 3/112013 $ 

Liabilities 3/1/2014 

Liability Increase (Decrease) 

Change due to: 

Plan Amendment $ 

Assumption Change 

Accrual of Benefits 

Actual Benefits 

Passage of Time 

Other Sources 

Actuarial (Gain)/Loss 

168,065,456 

168,388,149 

322,693 

0 

0 

947,964 

( 13,367 ,997) 

12,174,708 

0 

568,018 

12 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION IV 

CONTRIBUTIONS · 

In this section, we present detailed information on Plan 

contributions from two perspectives: 

• Minimum Required Contributions, based on the Unit 

Credit funding method; and 

• Government Limits which could affect the above. 

Minimum Required Contributions: 

For this Plan, the funding method used is the Unit Credit method. 

The Minimum Required Contribution is determined in two parts. 

The first part is the Unit Credit Normal Cost. The Normal Cost is 

determined as that portion of each participant's benefit attributable 

to service expected to be earned in the upcoming Plan Year. The 

Normal Cost includes a provision for administrative expenses. 

The second part is an amortization payment to pay off the 

Unfunded Actuarial Liability (UAL). The UAL is the difference 

between the Actuarial Value of Assets at the valuation date and the 

Actuarial Liability determined by the actuarial cost method. The 

amortization schedule is established by the minimum funding rules 

in the Internal Revenue Code. 

Government Limitations: 

ERISA and the IRS tax code place various limits on the 

contributions made to qualified pension plans. The limits impact 

the minimum that must be paid, the maximum that can be deducted 

and the timing of contributions. 

To ensure that minimum contributions are met, pension plans are 

required to retain an Enrolled Actuary to complete Schedule MB to 

Fonn 5500 on an annual basis. In the past, bargained contributions 

exceeded the Minimum Required Contribution and the Plan built 

up a Credit Balance. The Credit Balance can be used to make up 

the difference between the Minimum Required Contribution and 

the bargained contribution. However, for the past few years the 

Plan has exhausted the Credit Balance and has a Funding 

Deficiency (i.e. a negative Credit Balance) for the current Plan 

Year. 

The Minimum Required Contribution for 2014 is shown below 

compared to various. Government Limits and the estimated 

employer contributions. The table also shows the per capita 

Minimum Required Contribution and contribution. 

Table IV -1 

Contributions for 2014 

Minimum Required Contribution 

Unit Credit Normal Cost (with Expenses) 

Amortization Payment 

Interest to End of Year 

Total 

Government Limits 

Maximum Deductible Contribution 

Minimum Contribution (before Credit Balance) 

Credit Balance with Interest 

Estimated Employer Contributions with Interest 

Count of Active Participants 

Per Capita Minimum Required Contribution 

Per Capita Contribution 

$ 2,047;388 

9,190,566 

842,847 

$ 12,080,801 

$ 330,698,324 

12,080,801 

(21,946,896) 

$ 3,050,331 

1,105 

$ 

$ 

10,933 

2,760 

.C-HEIRON 13 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION IV 

CONTRIBUTIONS 

The tables on the following pages show the development of the minimum and maximum contributions for the 2014 Plan Year. 

Table IV- 2 

FUNDING STANDARD ACCOUNT FOR PLAN YEARS ENDING 

2/28/2014 2/28/2015 

1. Charges for Plan Year 

a. Prior Year Funding Deficiency $ 13,752,769 $ 20,415,717 

b. Normal Cost with Expenses 2,032,964 2,047,388 

c. Amortization Charges 16,887,313 16,762,867 

d. Interest on a., b., and c. to Year End 2,450,478 2,941,948 

e. Additional Funding Charge N/A NIA 

f. Interest Charge due to Late Quarterly Contributions N/A N/A 

g. Total Charges $ 35,123,524 $ 42,167,920 

2. Credits for Plan Year 

a. Prior Year Credit Balance $ 0 $ 0 

b. Contributions for Minimum Funding (actual/ expected) 3,643,116 2,942,000 

c. Amortization Credits 10,277,558 7,572,301 

d. Interest on a., b., and c. to Year End 787,133 579,698 

e. Full Funding Limit Credit 0 0 

f. Total Credits $ 14,707,807 $ 11,093,999 

3. Credit Balance at End of Year [2. - 1.] $ (20,415,717) $ (31,073,921) 

-c-HEIRON 14 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH l, 2014 

SECTION IV 

CONTRIBUTIONS 

Table IV -3 

CALCULATION OF THE MAXIMUM DEDUCTIBLE CONTRIBUTION 

FOR THE PLAN YEAR STARTING MARCH 1, 2014 

1. "Fresh Start" Method 

a. Unit Credit Normal Cost with Expenses $ 

b. Net Charge to Amortize Unfunded Actuarial Liability Over l 0 Years 

c. Interest on a. and b. to Year End 

d. Total 

e. Minimum Required Contribution at Year End 

f. Larger of d. and e. 

g. Full Funding Limit 

h. Preliminary Maximum Deductible Contribution [lesser off. and g.] $ 

2. 140% of Current Liability Calculation 

a. RPA 1994 Current Liability at Start of Year $ 

b. Present Value of Benefits Estimated to Accrue during Year 

c. Expected Benefit Payments 

d. Net Interest on a., b. a~d c. at Current Liability Interest Rate (3.63%) 

e. Expected Current Liability at End of Year [a. + b. - c. + d.) 

f 140% of e. 

g. Actuarial Value of Assets 

h. Expected Expenses 

1. Net Interest on c., g., and h. at Valuation Interest Rate (7.50%) 

J. Estimated Value of Assets [g.- c.- h. + i.] 

k. Unfunded Current Liability at Year End [f. - j.], not less than $0 $ 

b. Maximum Deductible Contribution at Year End, greater of Lh. and 2.k. $ 

.C++EIRON 

2,047,388 

12,757,860 

·1,110,394 

15,915,642 

34,027,697 

34,027,697 

182.626.403 

34,027,697 

283,826,417 

1,962,647 

13,771,637 

10,126,416 

282,143,843 

395,001,380 

74,249,342 

1,150,000 

4,975,351 

64.303.056 

330,698,324 

330,698,324 

15 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACfUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION IV 

CONTRIBUTIONS 

Table IV -4 

DEVELOPMENT OF ACTUARIAL GAIN I (LOSS) 

FOR THE YEAR ENDED FEBRUARY 28, 2014 

1. Unfunded Actuarial Liability at Start of Year (not less than zero) 

2. Normal Cost and Expenses at Start ofYear 

3. Interest on I. and 2. to End of Year 

4. Contributions for Prior Year 

5. Interest on 4. to End of Year 

6. Change in Unfunded Actuarial Liability Due to Changes in Methods 

7. Change in Unfunded Actuarial Liability Due to Changes in Assumptions 

8. Change in UnfundE:;d Actuarial Liability Due to Changes in Plan Design 

9. Expected Unfunded Actuarial Liability at End of Year 

[I. + 2. + 3. - 4.- 5. + 6. + 7. + 8.] 

10. Actual Unfunded Actuarial Liability at End of Year (not less than zero) 

11. Actuarial Gain I (Loss) [9. - 10.] 

12. Amortization Factor for Actuarial Gain I (Loss) 

13. Amortization Credit I (Charge) for Actuarial Gain I (Loss) 

-c+tEIRON 

$ 92,689,817 

2,032,964 

7,104,209 

3,643,116 

16,3 I 5 

0 

0 

0 

$ 98,167,559 

94,138,807 

$ 4,028,752 

9.4892 

$ 424,564 

16 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION IV 

CONTRIBUTIONS 

Table IV - 5 

SCHEDULE OF AMORTIZATIONS REQUIRED FOR MINIMUM REQUIRED CONTRIBUTION 

AS OF MARCH 1, 2014 

Initial 3/1/2014 Remaining BegofYr 

Date Initial Amortization Outstanding Amortization Amortization 

Type of Base Established Amount Years Balance Years Amount 

CHARGES 

1. Initial Unfunded 3/1/1978 $ I6,575,006 40 $ 4,273,993 4 $ 1,187,046 

2. Plan Amendment 3/1/1989 63,848 30 21,401 5 4,921 

3. Method Change 3/1/1989 15,842,844 30 5,310,791 5 1,221,061 

4. Plan Amendment 3/1/ 1993 5,282,693 30 2,809,778 9 409,749 

5. Plan Amendment 3/1/2000 1,738,637 15 181,067 1 181,067 

6. Actuarial Loss 3/112000 7,511,951 30 5,772,875 16 587,443 

7. Actuarial Loss 3/112001 II,966,014 15 2,409,867 2 1,248,485 

8. Actuarial Loss 311/2002 13,842,899 15 4,044,980 3 1,446,927 

9. Actuarial Loss 3/112003 22,582,575 15 8,713,806 4 2,420,148 

1 0. Actuarial Loss 3/ 1/2005 3,018,172 15 1,599,986 6 317,086 

II. Actuarial Loss 3/1/2006 2,642,095 15 1,582,869 7 277,997 

I2. Assumption Change 3/112007 8,194,633 30 7,498,215 23 645,442 

13. Actuarial Loss 311/2007 2,180,614 15 1,446,961 8 229,801 

14. Actuarial Loss 311/2008 15,092,752 15 10,906,721 9 1,590,527 

15. Actuarial Loss 3/1/2009 28,127,155 15 21,872,036 10 2,964,137 

16. Actuarial Loss 3/112011 7,919,489 15 6,939,915 12 834,583 

17. Assumption Change 3/1/1012 2,075,229 15 1,910,360 13 218,695 

18. Actuarial Loss 3/1/2012 6,035,275 15 5,555,797 13 636,018 

19. Actuarial Loss 3/112013 3,242,769 15 3,118.613 14 341 734 

TOTAL CHARGES $ 95,970,031 $ 16,762,867 

. .C-HEIRON 17 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACfUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION IV · 

CONTRIBUTIONS 

Table IV - 6 

SCHEDULE OF AMORTIZATIONS REQUIRED FOR MINIMUM REQUIRED CONTRIBUTION 

AS OF MARCH 1, 2014 

Type of Base 

CREDITS 

I. Combined Base 

2. Funding Method Change 

3. Plan Amendment 

4. Actuarial Gain 

5. Actuarial Gain 

TOTAL CREDITS 

NET CHARGE 

Date 

Established 

3/1/2007 

3/1/2008 

3/ l/2009 

3/1/2010 

3/1/2014 

$ 

Initial 

Amount 

48,962,861 

6,945,571 

590,517 

11,371,471 

4,028,752 

Initial 3/112014 Remaining Beg ofYr 

Amortization Outstanding Amortization Amortization 

Years Balance Years Amount 

7.6038 $ 4,945,865 0.6038 $ 4,945,865 

10 3,389,091 4 941,276 

15 459,192 10 62,231 

15 9,424,041 11 I, 198,365 

15 4,028,752 15 424 564 

$ 22,246,941 $ 7,572,301 

$ 73,723,090 s 9,190,566 

.C++EIRON 18 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION IV 

CONTRIBUTIONS 

Table IV -7 

ACCUMULATED RECONCILIATION ACCOUNT AND BALANCE TEST 

AS OF MARCH 1, 2014 

l. Amount due to Additional Interest Charges in prior years $ 

2. Amount due to Additional Funding Charges in prior years 

3. Reconciliation Account at Start of Year (1. + 2.] $ 

4. Net Outstanding Amortization Bases $ 

5. Credit Balance at Start of Year $ 

6. Unfunded Actuarial Liability at Start of Year from Funding Equation [4.- 3.- 5.] $ 

7. Actuarial Liability at Start of Year $ 

8. Actuarial Value of Assets at Start of Year $ 

9. Unfunded Actuarial Liability at Start of Year from Liability Calculation [7.- 8.] $ 

The Plan passes the Balance Test because line 6. equals line 9 . 

.C+tEIRON 

0 

NA 

0 

73,723,090 

(20,415,717) 

94,138,807 

168,388,149 

74,249,342 

94,138,807 

19 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION IV 

CONTRIBUTIONS 

Table IV - 8 

DEVELOPMENT OF FULL FUNDING LIMITATION 

FOR THE YEAR BEGINNING MARCH 1, 2014 

l . Actuarial I PPA Liability Full Funding Limit Calculation 

a. Actuarial I PPA Liability 

b. Normal Cost with Expenses 

c. Lesser of Market Value and Actuarial Value of Assets 

d. Credit Balance at Start of Year, not less than zero 

e. Net Interest on a., b., c., and d. at Funding Interest Rate (7.50%) 

f. Actuarial I PPA Liability Full Funding Limit [a. + b. -c. + d. + e.], limited to zero 

2. Full Funding Limit Override (RP A 1994) 

a. RP A 1994 Current Liability at Start of Year 

b. Present Value of Benefits Estimated to Accrue during Year 

c. Expected Benefit Payments 

d. Net Interest on a., b. and. c. at Current Liability Interest Rate (3.63%) 

e. Expected Current Liability at End of Year [a. + b. - c. + d.] 

f. 90%ofe. 

g. Actuarial Value of Assets 

h. Expected Expenses 

1. Net Interest on c., g., and h. at Valuation Interest Rate (7.50%) 

j. Estimated Value of Assets [g.- c. - h.+ i.] 

k. RPA 1994 Full Funding Limit Override [f.-j.], limited to zero 

3. Full Funding Limitation at End of Plan Year, greater of l.f. and 2.k. 

.C-HEIRON 

Minimum 

$ 168,388,149 

2,047,388 

74,249,342 

0 

7.213.965 

$ 103,400,160 

$ 283,826,417 

1,962,647 

13,771,637 

10,126,416 

282,143,843 

253,929,459 

74,249,342 

1,150,000 

4,975,351 

64.303.056 

$ 189,626,403 

$ 189,626,403 

Maximum 

$ 168,388,149 

2,047,388 

74,249,342 

NIA 

7,213,965 

$ 103,400,160 

$ 283,826,417 

1,962,647 

13,771,637 

10,126,416 

282,143,843 

253,929,459 

74,249,342 

1,150,000 

4,975,351 

64.303.056 

$ 189,626,403 

$ 189,626,403 

20 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTIONV 

UNFUNDED VESTED BENEFITS 

The allocation of the Unfunded Vested Benefits (UVB) is determined under the Presumptive method as defined in the Multiemployer Pension 

Plan Amendments Act of 1980 (MEPPA). If an employer withdraws between March 1, 2014 and February 28, 2015, they will be assessed 

Withdrawal Liability based on their share of the UVB. The Present Value of Vested Benefits (PVVB) is valued using a 7.00% interest rate 

assumption. 

Under the Presumptive method, "pools" are created each year based on the change in the Plan's Unfunded Vested Benefits (UVB). The UVB 

is calculated as the difference between the PVVB and the Market Value of Assets (MVA). In addition, the pools may include an adjustment 

for uncollectible Withdrawal Liability for prior withdrawn employers and statutory limits. Each pool is then written down over 20 years and 

allocated among the employers based on their proportional share of contributions. 

Table V -I 

UNFUNDED VESTED BENEFITS 

2/28/2013 

1. Present Value ofVested Benefits (valued at 7.00%) 

a. Retirees and Beneficiaries $ 105,229,922 

b. Terminated Vested Participants 39,161,633 

c. Active Participants 301

211 1252 

d. Total $ 174,602,807 

2. Market Value of Assets on Financial Statement (without the 

Withdrawal Liability Payments Receivable) $ 72,519,011 

3. Unfunded Vested Benefits [l.d - 2.] $ 102,083,796 

4. Funded Ratio [2. + l.d] 41.5% 

-c-HEIRON 

2/28/2014 

$ 105,541,627 

41,569,783 

271901 1834 

$ 175,013,244 

$ 74,722,931 

$ 100,290,313 

42.7% 

21 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACT UARIAL VALUATION REPORT AS OF MARCH 1, 2014 

SECTION VI 

REORGANIZATION STATUS 

Table VI- 1 

DEMONSTRATION THAT THE PLAN IS NOT IN REORGANIZATION 

FOR THE YEAR STARTING MARCH 1, 2014 

MPP AA requires accelerated funding for an underfunded multi employer plan which has a large proportion of inactive vested participants'. 

Such plans are labeled "in Reorganization" and are subject to requirements for more stringent funding and solvency testing, as well as 

notification to each contributing employer and each employee organization representing plan participants. Among other things, such plans 

have slightly higher minimum funding requirements. The calculation of a Plan's "Reorganization Index" and its Vested Benefits Charge is 

specified in MPP AA and its regulations. These calculations begin with detennining a "Base Plan Year". 

The Base Plan Year is the plan year ending at least six months before the Relevant Effective Date. The Relevant Effective Date is the earliest 

date of all Relevant Bargaining Agreements in force during the plan year. Relevant Bargaining Agreements are contracts that as of the end of 

the plan year have been in force at least six months but no more than 36 months. If there are no Relevant Bargaining Agreements, the Base 

Plan Year is the plan year ending at least 12 months before the beginning of the plan year. An Adjustment Date is also defmed as the day 

ending 90 days before the Relevant Effective Date. 

Based on the bargaining agreements in effect on 3/112014 we have detennined the following applicable dates: 

Relevant Effective Date 6/112012 

End of Base Plan Year 2/28/20 II 

Adjustment Date 3/3/2012 

The Reorganization Index and Vested Benefits Charge can be based on the actuarial valuation as of the last day of the Base Plan Year 

adjusted for any decrease of 5% or more in the value of plan assets or increase of 5% or more in the number of participants in pay status 

during the first day of the plan year following the Base Plan Year and ending on the Adjustment Date. However, the Trustees can opt to use 

ail actuarial valuation as of the Adjustment Date or any later date before the last day of the year for which the detennination is being made. 

Therefore, we used the 3/1/2012 valuation for the Reorganization Test, the first annual valuation date following the Adjustment Date. 

Vested Benefits Charge for 2014 based on the 311/201 2 Valuation: 

I. Present Value of Vested Benefits for Retirees $ 

2. Present Value of Vested Benefits for Non-Retirees 

3. Actuarial Value of Assets 

4. Retiree UVB (1. - 3.), but not less than zero 

5. Non-Retiree UVB (I.+ 2. - 3.- 4.), but not less than zero 

6. I 0-year Amortization of ( 4.) 

7. 25-year Amortization of(5.) 

8. Vested Benefits Charge (6. + 7.) 

9. Net Charges to Funding Standard Account for 2014 

10. Reorganization Index (8. - 9.) 

The Plan is not in Reorganization because the Reorganization Index is zero . 

. .C++EIRON 

I 02,505,977 

65,197,451 

80,082,383 

22,423,594 

65,197,451 

3,038,886 

5,440,844 

8,479,729 

11 ,237,954 

0. 

22 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

SECTION VII 

FASB ASC TOPIC #960 

Table VII -1 

PRESENT VALUE OF ACCUMULATED BENEFITS AS OF MARCH i, 2014 

IN ACCORDANCE WITH ASC TOPIC NO. 960 

Amounts 

I. Actuarial Present Value of Vested Benefits 

For Retirees and Beneficiaries $ 102,229,434 

Terminated Vesteds 38,557,276 

Active Participants 21,]1~.103 

Total Vested Benefits $ 167,900,413 

2. Non-Vested Benefits $ 487,736 

3. Accumulated Benefits $ 168,388,149 

4. Market Value of Assets on Financial Statement (without the 

Withdrawal Liability Payments Receivable) $ 74,722,931 

5. Funded Ratios 

Vested Benefits 

Accumulated Benefits 

44.5% 

44.4% 

Vested Counts 

5,596 

3,487 

884 

9,967 

221 

10,188 

RECONCILIATION OF PRESENT VALUE OF ACCUMULATED BENEFITS 

l. Actuarial Present Value at Start of Prior Plan Year 

2. Increase (Decrease) over Prior Year due to: 

Benefit Accruals 

Benefit Payments 

Increase for Interest 

Experience (Gains)/Losses 

Changes in Assumptions 

Plan Amendments 

Total 

3. Actuarial Present Value at End ofPrior Year 

$ 168,065,456 

$ 947,964 

(13 ,367 ,997) 

12,174,708 

568,018 

0 

0 

s 322,693 

$ 168,388,149 

23 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

APPENDIX A 

MEMBERSHIP INFORMATION 

The data for this valuation was provided by the Fund Office as of March I, 2014. Cheiron did not audit any of the data; however, it was 

reviewed to ensure that it complies with generally accepted actuarial standards. 

The following is a list of data charts contained in this section: 

~ Summary of Participant Data 

~ Changes in Plan Membership 

)> Age/Service Distribution for Active Participants 

~ Counts and Average Benefit Amount by Age for Retirees, Beneficiaries, and Disabled Participants 

~ Counts and Average Benefit Amount by Age for Terminated Vested Participants 

SUMMARY OF PARTICIPANT DATA 

Active Participants 

Count 

Average Age 

Average Benefit Service 

March 1. 2013 

1,358 

47.6 

14.7 

Retirees and Beneficiaries Receiving Payments 

Count 5,624 

Annual Benefits $ 13,098,595 

Average Annual Benefit 2,329 

Terminated Vested Participants 

Count 

Annual Benefits 

Average Annual Benefit 

$ 

3,420 

9,198,104 

2,690 

.C-HEIRON 

Ma.rch l, 2014 

1,105 

47.7 

14.9 

5,596 

$ 13,206,363 

$ 

2,360 

3,487 

9,441,383 

2,708 

24 
l. March 1, 2013 Valuation 

2. Additions 

a. New entrants 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2014 

APPENDIX A 

MEMBERSHIP INFORMATION 

Changes in Plan Membership from March 1, 2012 to March 1, 2013 

Terminated 

Actives Vested Retired Disabled 

1,358 3,420 4,554 333 

75 0 0 0 

b. Inactive but riot in prior year's data 0 11 17 3 

c. Total 75 11 17 3 

3. Reductions 

a. Terminated Nonvested (80) 0 0 0 

b. Benefits expire~ 0 0 0 0 

c. Died without beneficiary 0 0 (177) (10) 

d. Assumed deceased 0 (9) 0 0 - e. Total (80) (9) (177) (10) 

4. Changes in Status 

a. Terminated Vested (227) 227 0 0 

b. Returned to work 4 (4) 0 0 

c. Retired (21) (125) 146 0 

d. Disabled (2) (8) (5) 15 

e. Died with beneficiary (2) (18) (43) (5) 

·f. Data correction 0 (7) (l) l 

g. Total (248) 65 97 11 

5. March 1, 2014 Valuation 1,105 3,487 4,491 337 

-c-HEIRON 

Beneficiaries Total 

737 10,402 

0 75 

5 36 

5 111 

0 (80) 

(5) (5) 

(37) (224) 

0 (9) - - (42) (318) 

0 0 

0 0 

0 0 

0 0 

68 0 

0 (7) 

68 (7) 

768 10,188 

25 
Age Under 1 

Under25 14 

25 to 29 15 

30 to 34 10 

35 to 39 6 

40 to 44 9 

45 to 49 2 

50 to 54 2 

55 to 59 2 

60 to 64 

65 to 69 0 

1 70 & up 0 

It Total 

' ][ . 61 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

APPENDIX A 

MEMBERSHIP INFORMATION 

AGE I SERVICE DISTRIBUTION OF ACTIVE PARTICIPANTS 

AS OF MARCH 1, 2014 

Sen ice 

1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 

21 0 0 0 0 0 0 

24 10 0 0 0 0 

31 16 27 3 0 0 0 

18 26 39 33 0 0 

16 17 38 36 14 5 0 

22 21 31 37 21 15 0 

14 18 35 42 26 26 20 

7 13 28 42 28 28 26 

5 11 16 21 8 14 18 

2 3 7 5 4 5 6 

0 0 3 0 0 0 0 

160 135 225 219 102 93 70 

Average Age= 47.7 Average Service = 14.9 

-c+fEIRON 

35 to 39 40&up Total 

0 0 35 

0 0 50 

0 0 87 

·o 0 123 

0 0 135 

0 0 149 

3 0 186 

8 0 182 

12 6 112 

2 8 42 

0 1 4 

25 15 1 1,105 

26 
Under 55 

55-59 

60-64 

65-69 

. 70-74 

75-79 

80&0ver 

Total 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACfUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

APPENDIX A 

MEMBERSHIP INFORMATION 

AGE DISTRIBUTION OF INACTIVE PARTICIPANTS 

PENSIONERS AND BENEFICIARIES RECEIVING BENEFITS AS OF MARCH 1, 2014 

Disability 

Retirements 

Monthly 

Number Benefit 

49 $ 20,028 

54 19,890 

59 25,391 

54 21,645 

48 10,833 

30 7,327 

43 8,056 

337 $ p3,170 

Normal, Early 

Deferred Vested 

Retirements 

Monthly 

Number Benefit 

0 $ 0 

234 50,674 

527 115,632 

838 184,461 

838 180,396 

743 152,028 

1,311 226,408 

4,491 $ 909,599 

I 

' 

Surviving Spouses 

and Beneficiaries 

Receiving Benefits 

Monthly 

Number Benefit 

29 . $ 2,700 

31 4,448 

64 7,259 

99 10,463 

105 11 ,888 

137 13,213 

303 27,790 

768 $ 77,761 

Total 

I Number 

Monthly 

Benefit 

! 78 $ 22,727 

319 75,012 

650 148,283 

991 216,569 

991 203,117 

910 172,568 

1,657 262,254 

5,596 $ 1' l 00,530 

DEFERRED VESTED PARTICIPANTS AND SURVIVING SPOUSES ENTITLED TO FUTURE BENEFITS 

Monthly Benefit Payable at 

Age Number Normal Retirement Date 

Under45 702 $ 155,048 

45-49 459 109,623 

50-54 750 219,167 

55-59 727 157,048 

60-64 551 105,337 

65 &Over 298 40,560 

Total 3,487 $ 786,782 

-c44EIRON 27 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH J, 2014 

APPENDIXB 

SUMMARY OF MAJOR PLAN PROVISIONS 

The following is a summary of the major provisions. Please refer 

to the plan document for a more complete description. 

1. Effective Date 

The Plan was established on March l, 1962. The most recent 

amendment was effective March 1, 2009. 

2. Participation 

Employees become Participants as of the date their employer is 

obligated to begin contributions to the Plan on their behalf. 

3. Past Service 

Participants shall, after 36 months of contributions have been 

made, be credited with a year of Past Service during any 

calendar year prior to the employe(s applicable effective date 

in which they were employed for at least six months. 

4. Effective Service 

Participants on July 1, I974 shall be credited with Effective 

Service for each month for which contributions were made on 

their behalf through January l, 1971. 

5. Future Eligibility Service 

A Participant shall be credited with a year of Future Eligibility 

Service for each calendar year beginning January 1, 1971 

during which contributions were made on their behalf and they 

worked at least 1,000 hours. 

6. Normal Retirement 

Eligibility: The later of age 65 and 5

1

h anniversary of Plan 

participation. 

Benefit: The monthly benefit is equal to the sum of the 

following, but not less than $50: 

(A) Multiply the average annual contribution made on the 

Participant's behalf after January 1, 1971 by the 

number of years of Past Service by the applicable 

percentage. The percentage ranges from 1.8% to 2.2% 

depending on when participation began and how many 

months employer contributions were made. 

(B) Multiply the average annual contribution made on the 

Participant's behalf after January 1, 1971 by the 

Effective Service Credit by 3.0%. 

(C) Multiply the total amount contributed on behalf of the 

participant from January 1, I 97 I to August 31, 2003 by 

3%. 

(D) Multiply the total amount contributed on behalf of the 

participant from September 1, 2003 to August 31, 2006 

by2%. 

(E) Multiply the total amount contributed on behalf of the 

participant after August 31, 2006 by 1%. 

Effective March 1, 2009, the monthly benefit for participants 

not yet retired ~ill have no 36-month guarantee feature. 

-c-Hf:IRON 28 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

APPENDIXB 

SUMMARY OF MAJOR PLAN PROVISIONS 

7. Early Retirement 

Eli! ibjlity: Age 55 and five years of service (ten years of 

service if the participant did not have at least one hour of 

service after March 1, 1998). 

Benefit: The normal retirement benefit described above 

reduced by 5/9 of 1% for each month the Participant is less 

than 65 and by 5112 of I% for each month the Participant is 

less than 62. 

Effective March 1, 2009, the subsidized reduction described 

above is only applied to Participants retiring directly from 

active status. All other retirements will be actuarially reduced 

to reflect early commencement of benefits. 

8. Disability Retirement 

Eligibilitv: Five years of service (ten years of service if the 

participant did not have at least one hour of service after 

March I, 1998) and awarded a Social Security Disability 

Award. 

Benefit: The normal retirement benefit earned to date will be 

payable without reduction for age. 

9. Deferred Vested Pension 

Elicibjlitv: Five years of service (ten years of service if the 

participant did not have at least one hour of service after 

March 1, 1998). 

Benefit Accrued benefit payable at normal retirement. 

10. Joint & Survivor Annuity Benefit 

Eligibility: Participant must be eligible for early, normal or 

disability pension on their date of death. 

Benefit: The actuarial equivalence of 50% or 75% of the 

accrued benefit with reduction for early retirement if 

applicable. 

11. Normal Form 

If Single: Straight Life Annuity 

If Married: 50% Joint & Survivor, actuarial equivalence 

12. Changes to Plan Provisions Since Last Valuation 

None. 

-c+fEIRON 29 
A. Actuarial Assumptions 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

APPENDIXC 

ACTUARIAL ASSUMPTIONS AND METHODS 

1. Investment Return (net of investment expenses) 4. Rates ofTurnover 

Funding & ASC 960 purposes 

Current Liability under RP A 1994 

Withdrawal Liability purposes 

7.50% per year 

3.63% per year 

7.00% per year 

Service 

2. Administrative Expenses 

Average expenses from the most recent two years rounded 

to the nearest $5,000; this year the · assumption is 

$1,150,000. 

3. Rates of Mortality 

Funding & ASC 960: 

- Healthy Lives: RP2000 with blue collar adjustment, 

projected 5~years with Scale AA 

- Disabled Lives: same with ages set-forward five years 

RP A '94 Current Liability: 

-2014 Current Liability Combined Mortality Table 

Terminated Vested Participants over age 80 are assumed to 

be deceased. 

In accordance with Actuarial Standard of Practice #35, we 

have considered the effect of mortality improvement prior 

to and subsequent to the measurement date in developing 

this assumption. 

-c+fEIRON 

Age 0 - 1 1- 2 2-3 

25 20.5% 20.5% 19.0% 

35 16.9 16.9 16.9 

45 15.0 15.0 12.4 

55 15.0 15.0 7.0 

62 15.0 15.0 7.0 

5. Rates of Disability 

Age Rate 

25 0.050% 

35 0.065 

45 0.244 

55 0.406 

65 0.000 

6. Rates of Retirement 

Age Rate 

55-59 3.00% 

60 5.00 

61 10.00 

62-64 15.00 

65 - 69 50.00 

70 100.00 

7. Normal Form Life Annuity 

3+ 

15.0% 

11.3 

7.8 

7.0 

7.0 

30 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2014 

APPENDIXC 

ACTUARIAL ASSUMPTIONS AND METHODS 

8. Changes in Assumptions Since the Last Valuation 

The RP A '94 current liability interest rate was changed 

from 3.72% to 3.63% to comply with appropriate guidance. 

The RP A '94 current"liability mortality table changed from 

the 2013 static mortality table to the 2014 static mortality 

table to comply with appropriate guidance. 

B. Actuarial Methods 

1. Actuarial Cost Method 

The cost method for detennining liabilities for this 

valuation is the Unit Credit Cost method. This is one of a 

family of valuation methods known as accrued benefit 

methods. The chief characteristic of accrued benefit 

methods is that the funding pattern follows the pattern of 

benefit accrual. The normal cost is determined as that 

portion of each participant's benefit attributable to service 

expected to be earned in the upcoming plan year. The 

Actuarial Liability, which is determined for each 

participant as of each valuation date, represents the 

actuarial present value of the portion of each participant's 

benefit attributable to service earned prior to the valuation 

date. 

.C-HEIRON 

2. Asset Valuation Method 

The actuarial value of assets is determined in accordance 

with Section 3.16 of Revenue Procedure 2000-40 using a 

five-year smoothing period. Specifically, the actuarial value 

of assets as of March 1, 2007 is set equal to the market 

value of assets. For each subsequent plan year, the actuarial 

value shall be the market value minus a decreasing fraction 

(4/5, 3/5, 2/5, 1/5) of each gain or loss for each of the 

preceding four plan years. Gains or losses prior to March 1, 

2007 are ignored. The resulting actuarial value of assets is 

then limited to be no greater than 120% and no less than 

80% of the market value of assets on the valuation date. 

3. Withdrawal Liability Method 

The Plan uses the Presumptive method with the Unfunded 

Vested Benefits calculated as the difference between the 

market value of assets and the present value of vested 

benefits valued at 7 .00%. 

4. Changes in Actuarial Methods Since the Last Valuation 

None. 

31 
I ffEIRON Jf. If_ ~ ---

United Furniture Workers 

Pension Fund 

Actuarial Valuation Report 

as of March 1, 2015 

Produced by Cheiron 

April2016 
TABLE OF CONTENTS 

Section 

Transmittal Letter 

Foreword Ill 

Section I 

Section II 

Section III 

Section IV 

Section V 

Section VI 

Appendices 

Summary ..................................................................................................................................................................................... 1 

Assets ..................................................... ..................................................................................................................................... 7 

Liabilities ................................................................................................................................. : ................................................... 9 

Contributions ............................................................................................................................................................................. 13 

Unfunded Vested Benefits ......................................................................................................................................................... 21 

FASB ASC Topic #960 ............................................................................................................................................. : ............... 22 

Appendix A Membership Information ....................... : ................................................................................................................................... 23 

Appendix B Summary of Major Plan Provisions .......................................................................................................................................... 27 

Appendix C Actuarial Assumptions and Methods ........................................................................................................................................ 29 

.C-HEIRON~ 
--- - . -

-{:+tEIRON ,P. b_ - - -- -- -

April 20, 2016 

Board of Trustees 

c/o Ms. Dee Anne Walker, Secretary-Treasurer/Director 

United Furniture Workers Pension Fund A 

1910 Air Lane Drive 

Nashville, Tennessee 37210 

Dear Trustees: 

At your request, we have performed the March 1, 2015 Actuarial Valuation of the United Furniture Workers Pension Fund A (the 

"Plan"). The purpose of this report is to present information on the Plan's assets and liabilities and to disclose contribution levels, 

including the minimum required amount as mandated by Federal law to the Trustees. This report is for the use of the Plan and its 

auditors in preparing financial reports in accordance with applicable law and accounting requirements. 

In the Foreword we refer to the general approach employed in the preparation of this report. The Summary section discusses the longterm funded status and emerging issues facing the Trustees. We also comment on the sources and reliability of both the data and the 

actuarial assumptions. The results of this report are only applicable to the 2015 Plan Year and rely on future Plan experience 

conforming to the underlying assumptions. Future valuation reports may differ significantly from the current results presented in this 

report due to such factors as the following: Plan experience differing from that anticipated by the assumptions, changes in 

assumptions, and changes in Plan provisions or applicable law. 

To the best of our knowledge, this report and its contents have been prepared in accordance with generally recognized and accepted 

actuarial principles and practices which are consistent with the Code of Professional Conduct and applicable Actuarial Standards of 

Practice set out by the Actuarial Standards Board. Furthermore, as credentialed actuaries, we meet the Qualification Standards of the 

American Academy of Actuaries to render the opinion contained in this report. This report does not address any contractual or legal 

issues. We are not attorneys and our firm does not provide any legal services or advice. 
Board of Trustees 

United Furniture Workers Pension Plan A 

April 20, 2016 

This report was prepared exclusively for the Plan for the purposes described herein. Other users of this report are not intended users as 

defined in the Actuarial Standards of Practice, and Cheiron assumes no duty or liability to any other user. 

Sincerely, 

Cheiron 

Redacted by the U.S. Department of the 

Treasury 

Christian E. Benjaminson, FSA, EA, MAAA 

Principal Consulting Actuary 

.C-HEIRON 

Redacted by the U.S. 

Department of the Treasury 

Gene M. Kalwarski, FSA, EA, MAAA 

Principal Consulting Actuary 

ii 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

FOREWORD 

Cheiron has performed the Actuarial Valuation of the United 

Furniture Workers Pension Fund A as of March 1, 2015. The 

purpose of this report is to: 

1) Measure and disclose, as of the valuation date, the financial 

condition of the Plan; 

2) Provide specific information and documentation required 

by the Federal Government and the auditors of the Plan; and 

3) Review past and expected trends in the financial conditions 

of the Plan. 

An actuarial valuation establishes and analyzes . Plan assets, 

liabilities and contributions on a consistent basis, and traces the 

progress of each from one year to the next. It includes 

measurement of the Plan's investment performance as well as an 

analysis of actuarial liability gains and 'losses. This valuation report 

is organized as follows: 

Section I - Summary presents key valuation results and 

compares this year's results to last year's results. It also 

provides the historical summary and future outlook of the Plan. 

Section II - Assets contains exhibits relating to the valuation of 

assets. 

Section III - Liabilities shows the various measures of 

liabilities. 

Section IV - Contributions shows the development of the 

minimum and maximum contributions . 

..C++EIRON ~ 

Section V - Unfunded Vested Benefits (UVB) shows the 

development of the UVB as of March 1, 2015 that would be 

allocated to employers that withdraw before February 29, 2016. 

Section VI - FASB ASC Topic #960 Disclosure provides 

information required by the Plan's auditor. 

Finally, at the end of this report we present appendices that contain 

a summary of the Plan's membership at the valuation date, a 

summary of the major provisions of the Plan, and the actuarial 

methods and assumptions used in the valuation. 

In preparing our report, we relied on information (some oral and 

some written) supplied by the Fund Office and Joseph Warren & 

Co, A Division of Rogoff and Company PC. This information 

includes, but is not limited to, the Plan provisions, employee data, 

and financial information. We performed an informal examination 

of the obvious characteristics of the data for reasonableness and 

consistency in accordance with Actuarial Standard ofPractice #23. 

The actuarial assumptions, taken individually, reflect our 

understanding and best estimate of the likely future experience of 

the Plan. The results of this report are dependent upon future 

experience conforming to these assumptions. To the extent that 

future experience deviates from the actuarial assumptions, the true 

cost of the Plan could vary from our results. 

Finally, in preparing this report, we have conformed to generally 

accepted actuarial principles and practices which are consistent 

with the Code of Professional Conduct, and applicable Actuarial 

Standards of Practice set out by the Actuarial Standards Board. 

iii 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION I -SUMMARY 

The table below sets out the principal results of this year's valuation and compares them to last year's results. 

Table 1-1 

Summar)· or Principal Resu lt ~ 

Participant Counts 3/1/2014 3/1/2015 

Actives 1,105 1,029 

Terminated Vesteds 3,487 3,471 

In Pay Status 5,596 5,563 

Total 10,188 10,063 

Financial Information 

Market Value of Assets $ 77,060,732 $ 70,887,468 

Actuarial Value of Assets 74,249,342 69,965,653 

Present Value of Future Benefits $ 174,603,761 $ 187,800,158 

Actuarial / PPA Liability $ 168,388,149 $ 181,564,343 

Surplus I (Unfunded) based on Actuarial Value of Assets $ (94,138,807) $ (111,598,690) 

Funded Ratio based on Actuarial Value of Assets 44.1% 38.5% 

Present Value of Vested Benefits $ 167,900,413 $ 181,058,453 

Surplus I (Unfunded) based on Market Value of Assets $ (90,839,681) $ (110,170,985) 

Gain I (Loss), Minimum Funding, and Cash Flows 

Actuarial Asset Gain I (Loss) $ 4,596,770 $ 1,357,542 

Liability Gain I (Loss) (568,018) (1,125,905) 

Total Normal Cost (Unit Credit plus Admin. Expenses) $ 2,047,388 $ 2,064,551 

ERISA Minimum Funding before Funding Deficiency 12,080,801 18,183,029 

ERISA Funding Deficiency (Beginning of Year) 20,415,717 29,886,971 

Prior Year Contributions (net from all sources) $ 7,552,748 $ . 3,958,319 

Prior Year Benefit Payments 13,367,997 13,604,248 

Prior Year Administrative Expenses 1,155,762 1,198,244 

P~or Year Total Investment Income (net of expenses) 9,170,731 4,506,559 

<:-HEIRON~ 

o/o Change 

(6.9)% 

(0.5)% 

(0.6)% 

(1.2)% 

(8.0)% 

(5.8)% 

7.6% 

7.8% 

18.5% 

7.8% 

21.3% 

0.8% 

50.5% 

46.4% 

(47.6)% 

1.8% 

3.7% 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION I -SUMMARY 

General Comments 

Following is an analysis of the Plan's results for the prior year 

followed by historical results for the last ten years. After that, a 

projection of future results is shown. Please note this valuation was 

prepared using census data and financial information as of the 

valuation date, March 1, 2015. Therefore, events following that 

date are not, and should not be, reflected in this report. The next 

valuation will reflect all membership and investment experience 

changes through February 29, 2016. 

Prior Year Results: 

Investment and liability experience and their effect on future costs 

traditionally have been the focus of year to year analyses. 

o The Market Value of Assets returned 6.28% for the Plan 

Year ending February 28, 2015. For long-term planning the 

Plan develops an Actuarial Value of Assets using a 

smoothing method which phase.s in investment gains and 

losses over five years. On this basis the Actuarial Value of 

Assets returned 9.21 %. Comparing this return to the prior 

year's long-term investment assumption of 7.50% results in 

an actuarial asset gain of$1.36 million. 

o The Plan experienced a liability loss totaling $1.13 million. 

Combined with the actuarial investment gain of $1.36 

million, the Plan had a net actuarial experience gain of $0.23 

million. 

o Effective with this valuation, we made an assumption change 

to reduce the discount rate from 7.50% to 6.75%. This 

change resulted in a $12.6 million increase in the liability as 

well as an increase in the Minimum Required Contribution. 

Please refer to Appendix C for more details on the actuarial 

assumptions. 

~-HEIRON~ 

o The funding ratio (Actuarial Value of Assets as a percentage 

of Actuarial Liability) decreased from 44.1% to 38.5%. 

Based on Market Value of Assets, the funding ratio 

decreased from 45.8% to 39.0%. 

The Pension Protection Act of 2006 (PP A) added a significant 

layer of new considerations related to the Plan's PPA Funded 

status. 

o The Plan was certified as "Critical and Declining" status 

under the Pension Protection Act (PP A) as amended by the 

Multiemployer Pension Refonn Act of2014 (MPRA) for the 

2015 Plan Year because of the current Funding Deficiency 

and is projected insolvent within the next 19 years. The PPA 

status is re-determined annually. 

o A Rehabilitation Plan was prepared in December 2008 

modifying adjustable benefits and requmng annual 

contribution increases of 5.5% beginning March 1, 2009. 

This Rehabilitation Plan is based on the reasonable measures 

(exhaustion) method and is annually monitored. 

o The funding ratio is an important measure that is used in 

determining the PP A zone, which as noted, has declined over 

the past year. 

o The period of time until a Funding Deficiency occurs is 

usually an important measure that is used for PP A testing. 

The Plan already has a Funding Deficiency which increased 

from $20.4 million as ofMarch 1, 2014 to $29.9 million as of 

March 1, 2015 and is projected to grow. However; under 

PP A there is no excise tax due as long as the Plan has a valid 

Rehabilitation Plan. 

2 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION I -SUI\t)1ARY 

In addition, please note that: 

0 

0 

Active membershlp declined by 6.9% over last year, mainly 

due to the withdrawal of Sealy Components. 

The Plan received $3.96 million in contributions (including 

Withdrawal Liability payments of $0.30 million) and paid 

$14.80 million in benefits and expenses for the year ending 

February 28, 2015. Comparing these two amounts shows a 

negative net cash flow of $10.84 million, which means the 

Plan is currently using investment returns to pay for benefits 

and expenses not covered by contributions. 

o The increase in the. Minimum Required Contribution was 

partially due to (I) a large credit base being completely 

recognized last year and no longer available for the current 

Plan Year, and (2) the decrease in the investment return 

assumption. 

o The Plan assesses Withdrawal Liability based on a 6.25% 

interest rate assumption (7 .00% last year) whlch is 0.5% less 

than the discount rate assumption used for funding. The 

Unfunded Vested Benefits increased from $100.3 million as 

ofMarch 1, 2014 to $121.5 million as ofMarch 1, 2015 . 

..C-HEIRON~ 

Historical Review: 

It is important to take a step back from the results and view 

them in the context of the Plan's recent history. On the next 

few pages, we present a series of charts which display key 

results in the valuations of the last ten years. 

3 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUAR.lAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION I -SUMMARY 

Assets & Liabilities: 

In this graph, the gold bars represent the present value of vested 

benefits while the gray bars add the additional non-vested benefits 

making up the Actuarial Liability. The blue line is the Market 

Value of Assets and the green line is the Actuarial Value of Assets. 

The percentages shown are the funding ratios (Actuarial Value of 

· Assets as a percent of the Actuarial Liability). 

"' d 

e 

:.:: $200 

~ 

$100 

$50 

$0 

- Actuarial/ PPA Liability 

..,.Assets Market 

38.5% 

78.4% 73.8%55.7% 59.7% 54.1%47.6% 44.8%44.1% 

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 

• The funding ratio has decreased every year except 2010 and is 

now 38.5% funded. This decline is projected to continue. 

• The increase in the Actuarial Liability for 2015 is due to the 

change in the discount rate, from 7.50% to 6.75%. 

• The five-year average compounded investment return is 8.72% 

on the Market Value and 5.75% on the Actuarial Value; as 

compared to our 6. 75% assumption. 

-{:++EIRON~ 

Minimum Funding: 

The next graph shows the contributions paid to the Plan (yellow 

line), the Minimum Required Contribution before the Credit 

Balance (red line) and the Credit Balance (green area). When the 

red line is greater than the yellow line the Credit Balance generally 

decreases. A Funding Deficiency occurs when the Credit Balance 

becomes negative. 

"'$20.0 

c 

~ $15.0 

~ $10.0 

$5.0 

$0.0 

.. -

($5.0) 

2008 2009 20 10 2011 2012 2013 2014 2015 f-.. 

($10.0) +----------

($15.0) +----------------~ 

($20.0) 

($25.0) 

($30.0) -'-----------

• Contributions have been less than the Minimum Required 

Contribution since 2007. 

• A Funding Deficiency occurred at the end of the 2009 Plan 

Year and has grown every year since. However, under the PPA 

there is no excise tax due as· long as the Plan has a valid 

Rehabilitation Plan. 

4 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION I -SUMMARY 

Participation: 

The graph below shows the participants of the Plan at successive 

valuations. The numbers above each bar represent the number of 

inactive members (retirees and terminated vested) to active 

members at each valuation date (called the support ratio). 

14,000 

2.8 3.3 3.6 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 

• The support ratio has more than tripled over this nine-year 

period. Primarily due to employer withdrawals the ratio · 

jumped to 8.8 inactives to every one active in the Plan. 

• The active population has declined steadily over the period 

shown, with an average annual decline of 12.2% per year 

during the nine-year period shown and 8.6% per year for the 

prior three years. 

..C-HEIRON~ 

Cash Flow: 

Plan cash flow is a critical measure, as it reflects the ability to have 

funds available to meet benefit payments without having to make 

difficult investment decisions, especially during volatile markets. 

"' c Contributions ~ $30.0 t...-Investment Return :::l 

i.......~ Benefits & Expenses 

... Net Cash Flow (w/o lnv) 

~ 

$20.0 

$10.0 

$0.0 

($10.0) 

($20.0) 

($30.0) 

• The Plan's net cash flow has averaged negative $9.4 million 

per year for the period shown, which represents almost 14% 

ofthe current Market Value of Assets. 

• The implications of a plan in negative cash flow are that the 

impact of market fluctuations can be more severe. This is 

because as assets are being depleted to pay benefits in down 

markets, there is less principal that is available to be 

reinvested during favorable return periods . 

5 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2015 

SECTION I -SUMMARY 

Future Outlook: 

In this section we focus on the future of the Plan and provide a 

projection of the Plan's assets, contributions, and benefit payments 

over the next 20 years. 

This projection scenario assumes the assets earn exactly 6.75% 

each year on their market value, including the current plan year, 

and all other assumptions are· met. We also factor in the current 

Rehabilitation Plan with annual 5.5% contribution increases and 

the Trustees' industry assumption of 1 0% annual membership 

declines. 

Under this scenario, the Plan is projected to be insolvent shortly 

after March I, 2022. At that time the benefit payments would drop 

to the PBGC guarantee level and the PBGC would provide 

financial assistance to the Plan. The drop in benefit payments is 

illustrated in the graph; the solid red line represents the benefit 

actually paid which are cut to the PBGC guarantee at the point of 

insolvency. The dotted red line represents the benefit payments 

prior to reduction to the PBGC guarantee. 

<:++EIRON ~ 

~ $80 r------------------------------------------

g - Assets - Benefit Paid •••• • Benefits Before PBGC • Contributions 

§ $70+------------------------------------------- :; 

$60 

$50 

$40 

$30 

$20 

$10 

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 

6 
UNITED FURNITURE WORKERS PENSION PLA.N A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION II - ASSETS 

Assets at Market Value: 

Market values represent "snap-shot" or "cash-out" values which 

provide the principal basis for measuring financial performance 

from one year to the next. 

!'able II - I 

St:.u.:mtnl of u~ets ar ,\larl.e1 \"alue.l\larch I 

Assets 2014 2015 

Short Term Obligations $ 521,691 s 264,333 

Common Stocks 5,479,771 5,234,786 

lntech Institutional Large Cap Growth Fund 6,344,495 5,772,886 

Fidelity Growth International Fund 6,175,892 5,083,707 

Fidelity Emerging Markets Fund 696,793 582,499 

Rothchild SMID Fund 6,063,210 4,564,317 

Pimco Bond Fund 14,597,028 6,421 ,005 

BPIF Non-Taxable LP 7,847,418 8,231,939 

State Street Global - MSCI 3,078,0()0 3,032,140 

Wellington Global Total Return Fund 4,369,390 3,272,743 

JPMCB Strategic Property Fund 8,339,847 8,828,137 

State Street Global- Daily 2,922,000 3,235,289 

Robeco BP - All Cap Value Fund 5,736,405 5,215,651 

Loomis Sayles Credit Long/Short 0 5,901,800 

Mortgage Receivable 1,260,000 1,260,000 

Cash 1,136,951 1,292,443 

Fixed Assets less accumulated depreciation 34,066 28,701 

Receivables 

Employer Contributions $ 2,592,801 $ 2,827,951 

Accrued Interest & Dividends 15,452 13,475 

Liabilitie$ 

Accrued Expenses and payroll taxes $ !150,478) $ !176.334) 

Total Market Value $ 77,060,732 s 70,887,468 

<:-HEIRON ~ 

Assets at Actuarial Value: 

For long-term planning, actuaries commonly use smoothing 

techniques to mitigate the short-term volatility exhibited by the 

capital markets. The Plan currently phases in investment gains and 

losses over five years. The Actuarial Value of Assets is also 

constrained so that it cannot exceed 120% of the Market Value and 

cannot be less than 80% of the Market Value. The table below 

shows the development of the Actuarial Asset Value. 

'I abll' II - 2 

\}c' tlopment of .\ctuarial \'alue of \~~t'h :u uf ,\larch 1, 2015 

Market Value of Assets as of March 1, 2015 $ 70,887,468 

Plan Investment Percent Percent Amount 

Year Q.ain~ L (Loss!)~ l R!l!O~sn~g O!li~<tWI I2!lfl<rr~Q 

2010 $ 6,511,385 100% 0% $ 0 

2011 (3,803,566) 80% 20% (760,713) 

2012 (4,321) 60% 40% (1,728) 

2013 3,791,415 40% .60% 2,274,849 

2014 (738,241) 20% 80% !~2Q~2Jl 

Total $ 921,815 

Preliminary Actuarial value as of March 1, 2015 $ 69,965,653 

Corridor for Actuarial Value 

80% of Market Value $ 56,709,975 

120% of Market Value $ 85,064,961 

Actuarial Value of Assets as of March 1, 2015 $ 69,965,653 

- as a percent of Market Value of Assets 98.7% 

7 
UNITED FUR!'IITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION II- ASSETS 

Changes in Market Value: 

The components of change in market value are: 

• Contributions 

• Benefit payments 

• Expenses 

• Investment income (realized and unrealized) 

The specific changes since the prior valuation are presented below: 

Tahlc 11 - 3 

Ch:JOJ.:I:' in ,\larli.:l \"11luc' 

Total Value of Assets- March 1, 2014 

Contributions 

Investment Return (Net) 

Benefit Payments 

Other Income I Adjustments 

Administrative Expenses 

Total Value of Assets- March 1, 2015 

$ 77,060,732 

$ 4,120,469 

4,506,559 

(13,604,248) 

2,200 

! 1.12ll,l44) 

$ 70,887,468 

Market Value for valuation purposes was determined as follows: 

Tab It' II - o& 

Rccuncilinrion "ith ,\1arl..l'l \ 'alut' rrom F'inancia.l Shttement 

Market Value of Assets on Financial Statement 

l Additional Employer Contributions 

Withdrawal Liability Payments Receivable 

Net 

Market Value of Assets for Valuation Purposes 

--(+iEIRON ~ 

March 1. 2015 

$ 69,335,517 

s 

$ 

2,499,951 

(948,000) 

1,551,951 

70,887,468 

Actuarial Gains/Losses from Investment Performance: 

The following table calculates the investment related actuarial 

gain/loss for the plan year on both a Market Value and Actuarial 

Value basis. Because the Actuarial Value of Assets is used to 

establish the Minimum Required Contribution and the Internal 

Revenue Code limits and contribution requirements, the actuarial 

gain/loss on the Actuarial Value of Assets most directly impacts 

the valuation results. We derive the gain!(loss) on both values of 

assets in the following table: 

l'ublc.- II - S 

\~'l'l (;um I (l o~\1 

Market Value 

March 1, 2014 Value $ 77,060,732 

Contributions 4,120,469 

Benefit Payments (13,604,248) 

Administrative Expenses (1,198,244) 

Expected Investment Earnings (7.50%) 5,244,800 

Other 2 200 

Expected Value on February 28, 2015 $ 71,625,709 

Investment Gain I (Loss) (73!(241) 

March 1, 2015 Value $ 70,887,468 

Return 6.28% 

*Assumed Expenses, payable beginning of year 

Actuarial Value 

$ 74,249,342 

4,120,469 

(13,604,248) 

(I, 150,000) * 

4,992,548 

NIA 

$ 68,608,111 

I .357.542 

$ 69,965,653 

9.21% 

8 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION III -LIABILITIES 

In this section, we present detailed information on Plan liabilities 

including: 

• Disclosure of Plan liabilities at March 1, 20 I 4 and March 

1, 2015; 

• Statement of changes in these liabilities during the year; 

and 

• Development of the actuarial liability gain/loss during the 

year. 

Disclosure: 

Several types of liabilities are calculated and presented in this 

report. Each type is distinguished by the people ultimately using 

the figures and the purpose for which they are using them. 

• Present Value of Future Benefits: Used for analyzing the 

financial outlook of the Plan, this represents the amount of 

money needed today to fully pay off all future benefits 

assuming participants continue to accrue benefits. 

• Actuarial Liabilities: Used in determining Minimum 

Funding Requirements, maximum tax deductible 

contributions, and long-term funding targets. These 

liabilities represent the total amount of money needed to 

fully pay off all obligations of the Plan using funding 

assumptions and assuming no further accrual of benefits. 

For this Plan, the Trustee's chose the Unit Credit Cost 

Method to determine the liability. 

--(-HEIRON ~ 

• Accrued Liabilities: These liabilities are required for 

determining PPA funded status and for accounting 

disclosure purposes (F ASB ASC 960). For that purpose 

they are referred to as the present value of accumulated 

benefits. These liabilities are determined using the Unit 

Credit Cost Method, and so, for the Plan will equal the 

Actuarial Liabilities. 

• Vested Liabilities: Required for accounting purposes, this 

liability represents the portion of the Accrued Liabilities 

which are vested. 

• Current Liabilities: Used for Federal Government 

compliance purposes, the calculation of this liability is 

defined by the Internal Revenue Code and regulations to 

determine maximum allowable tax deductible 

contributions. 

The table on the following page discloses most of these 

liabilities for the current valuation and the prior one. With 

respect to each disclosure, a subtraction of the appropriate 

value of Plan assets yields an unfunded liability for each 

respective type. 

9 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION III - LIABILITIES 

-

Tablc lll - 1 

Lia bilitic:!l./Nct Surplus (Unfunded) 

3/1/2014 

FUNDING DISCOUNT RATE ASSUMPTION 7.50% 

ACTUARIAL I PPA LIABILITY 

Actuarial I PPA Liability $ 168,3~8,149 

Actuarial Value of Assets 74,249,342 

Net Surplus (Unfunded) $ (94,138,807) 

VESTED LIABILITY 

Actuarial/ PP A Liability $ 168,388, 149 

Less Present Value ofNon-Vested Benefits 487,736 

Vested Liability $ 167,900,413 

Market Value of Assets 77,060,732 

Net Surplus (Unfunded) $ (90,839,681) 

RPA DISCOUNT RATE 3.63% 

CURRENT LIABILITY (RPA 1994) $ 283,826,417 

Market Value of Assets 77,060,732 

Net Surplus (Unfunded) $ (206,765,685) 

~-HEIRON~ 

3/1/2015 

6.75% 

$ 181,564,343 

69,965,653 

$ (111,598,690) 

$ 181,564,343 

5052890 

$ 181,058,453 

70,887,468 

$ (110,170,985) 

3.44% 

$ 290,549,936 

70,887,468 

$ (219,662,468) 

10 
Allocation of Liabilities by Type: 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION III- LIABILITIES 

The Plan participants may qualify for a benefit upon death, termination, and disability as well as upon retirement. The value of the liabilities 

arising from each of these sources is shown in the following table: 

Table Ill- 2 

r\LLOCA'J'IOl\' OF LIAHII..ITJES BY 1 \'P£ 

March J, 2015 

Benefit T) pe Retiremenl Termination Death l)i,ability Total 

Unit Credit Normal Cost $ 728,023 $ 114,240 $ 18,650 $ 28,638 $ 889,551 

Actuarial I PPA Liability 

Actives $ 22,737,823 $ 2,392,125 $ 553,878 $ 689,013 $ 26,372,839 

Terminated Vesteds 0 45,764,390 0 0 45,764,390 

Retirees and Beneficiaries 89.542.664 0 7.348.683 12.535,767 109,427,114 

Total $ J 12,280,487 $ 48,156,515 $ 7,902,561 $ 13,224,780 $ 181,564,343 

RP A Current Liability Normal Cost $ 1,355,813 $ 344,027 s 13,963 $ 55,077 $ 1,768,880 

RP A Current Liability 

Actives $ 40,570,196 $ 6,684,322 $ 390,461 $ 1,279,745 $ 48,924,724 

Terminated Vesteds 0 89,993,573 0 0 89,993,573 

Retirees and Beneficiaries 121,890,937 0 9 799 733 19,940,969 151 ~631 ,639 

Total $ 162,461,133 $ 96,677,895 s 10,190,194 $ 21,220,714 $ 290,549,936 

Vested RPA Current Liability 

Actives $ 30,107,072 $ 16,634,292 $ 385,454 $ 1,247,852 $ 48,374,670 

T enninated V esteds 0 89,993,573 0 0 89,993,573 

Retirees and Beneficiaries 121,890,937 0 9 799 733 19,940,969 151,631.639 

Total $ 151,998,009 $ 106,627,865 $ 10,185,187 $ 21,188,821 $ 289,999,882 

..C++EIRON ~ 11 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION III - LIABILITIES 

Changes in Liabilities: 

The Actuarial Liability shown in the preceding table changes at 

successive valuations based on as the experience of the Plan. The 

liability may change for any of several reasons; including: 

• New hires since the last valuation 

• Benefits accrued since the last valuation 

• Plan amendments 

• Interest on Actuarial Liability 

• Benefits paid to retirees and beneficiaries 

• Participants leaving employment at rates different than 

expected 

• Changes in actuarial assumptions 

• .Changes in actuarial methods 

..C-HEIRON ~ 

The following table shows the change in the Actuarial Liability 

measure since the last valuation. There were no changes to 

methods or Plan provisions since last year. However, we made an 

assumption change to reduce the discount rate from 7.50% to 

6.75% per annum .resulting in a $12.6 million increase in the 

liability. Please refer to Appendix C for more details on the 

actuarial assumptions. 

Liabilities 311/2014 

Liabilities 3/ 112015 

Liability Increase (Decrease) 

Change due to: 

Plan Amendment 

Assumption Change 

Accrual of Benefits 

Actual Benefits 

Passage of Time 

Other Sources 

Actuarial (Gain)/Loss 

$ 0 

12,570,893 

897,388 

(13,604,248) 

12,186,256 

0 

1,125,905 

12 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION TV- CONTRIBUTIONS 

In this section, we present detailed information on Plan 

contributions from two perspectives: 

• Minimum Required Contributions, based on the Unit 

Credit Cost Method; and 

• Government Limitations which could affect the above. 

Minimum Required Contributions: 

For this Plan, the funding method used is the Unit Credit Cost 

Method. The Minimum Required Contribution is determined in 

two parts. 

The first part is the Unit Credit Normal Cost. This is the cost for 

the benefits expected to be earned in the current year for each 

active participant. The Normal Cost includes a provision for 

administrative expenses. 

The second part is an amortization payment to pay off the 

Unfunded Actuarial Liability (UAL). ·The UAL is the difference 

between the Actuarial Value of Assets at the valuation date and the 

Actuarial Liability determined by the actuarial cost method. The 

amortization payment is determined using the amortization 

schedule required by the minimum funding rules in the Internal 

Revenue Code. 

Government Limitations: 

ERISA and the Internal Revenue Code place various limits on the 

contributions made to qualified pension plans. The limits impact 

the minimum that must be paid, the maximum that can be 

deducted, and the timing of contributions. 

<:++EIRON ~ 

To ensure that Minimum Required Contributions are met, pension 

plans are required to retain an Enrolled Actuary to complete 

Schedule MB to Form 5500 on an annual basis. In the past, 

bargained contributions exceeded the Minimum Required 

Contribution and the Plan built up a Credit Balance. The Credit 

Balance can be used to make up the difference between the 

Minimum Required Contribution and the bargained contribution. 

However, for the past several years the Plan has exhausted the 

Credit Balance and has a Funding Deficiency (i.e. a negative 

Credit Balance) for the current Plan Year. 

The Minimum Required Contribution for 20 15 is shown below 

compared to the Government Limitations and the estimated 

employer contributions. The table also shows the per capita cost 

and contribution. 

Minimum Required Contribution 

Unit Credit Normal Cost (with Expenses) $ 2,064,551 

Amortization Payment 14,968,73 1 

Interest to End of Year 1 149 747 

Total $ 18,183,029 

Government Limits 

Maximum Deductible Contribution $ 344,395,488 

Minimum Contribution (before Funding Deficiency) 18,183,029 

Funding Deficiency with Interest 31,904,342 

Estimated Employer Contributions with Interest $ 3,977,816 

Count of Active Participants 1,029 

Per Capita Minimum Required Contribution $ 17,671 

Per Contribution $ 3,866 . 

13 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION IV- CONTRIBUTIONS 

The tables on the following pages show the IRS Funding Standard Account, as well as the development of the minimum and maximum 

contributions for the 2015 Plan Year. 

Tahle IV- 2 

US ~G STA~ RD ACCOUNT FOR PLAN \'EARS ENDING 

2/28/2015 2/29/2016 

l. Charges for Plan Year 

a. Prior Year Funding Deficiency $ 20,415,717 $ 29,886,971 

b. Normal Cost with Expenses 2,047,388 2,064,551 

c. Amortization Charges 16,762,867 17,562,499 

d. Interest on a., b., and c. to Year End 2,941,948 3,342,196 

e. Additional Funding Charge N/A NIA 

f. Interest Charge due to Late Quarterly Contributions N/A N/A 

g. Total Charges $ 42,167,920 $ 52,856,217 

2. Credits for Plan Year 

a. Prior Year Credit Balance $ 0 $ 0 

b. Contributions for Minimum Funding (actual / expected) 4,120,469 3,850,000 

c. Amortization Credits 7,572,301 2,593,768 

d. Interest on a., b., and c. to Year End 588,179 190,267 

e. Full Funding Limit Credit 0 0 

f. Total Credits $ 12,280,949 $ 6,634,035 

3. Credit Balance I (Funding Deficiency) at End of Year [2. - I.] $ (29 ,886,971) $ ( 46,222, 182) 

..C+fEIRON ~ 14 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION IV - CONTRIBUTIONS 

Table J\'- 3 

CALCUL..-\ T ION OF T ilE i\1,\ XI,\ JU[\J llf<:llUC'I'I KLE CO~T RI BUTIOJ'\' 

FOR T HE PLAN YEAR STARTING 1\JARC•I I , 2015 

1. "Fresh Start" Method 

a. Unit Credit Normal Cost with Expenses 

b. Net Charge to Amortize Unfunded Actuarial Liability Over 10 Years 

c. Interest on a. and b. to Year End 

d. Total 

e. Minimum Required Contribution at Year End 

f. Larger of d. and e. 

g. Full Funding Limit 

h. Preliminary Maximum Deductible Contribution [Jesser of f. and g.] 

2. 140% of Current Liability Calculation 

a. RPA 1994 Current Liability at Start of Year 

b. Present Value of Benefits Estimated to Accrue during Year 

c. Expected Benefit Payments 

d. Net Interest on a., b. and c. at Current Liability Interest Rate (3.44%) 

e. Expected Current Liability at End of Year [a.+ b.- c.+ d.] 

f. 140% of e. 

g. Actuarial Value of Assets 

h. Expected Expenses 

1. Net Interest on c., g., and h. at Valuation Interest Rate (6.75%) 

J. Estimated Value of Assets [g.- c.- h.+ i.] 

k. Unfunded Current Liability at Year End [f.- j.], not less than $0 

3. Maximum Deductible Contribution at Year End, greater of l.b. and 2.k. 

<:++EIRON~ 

$ 

$ 

$ 

$ 

$ 

2,064,551 

14,712,901 

1,132,478 

17,909,930 

50,087,371 

50,087,371 

200.360,669 

50,087,371 

290,549,936 

1,768,880 

14,065,072 

9,815,894 

288,069,638 

403,297,493 

69,965,653 

1,175,000 

4,176,424 

58.902.005 

344,395,488 

344,395,488 

15 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH I, 2015 

SECTION IV- CONTRIBUTIONS 

Table I\'- 4 

DEVELOPME~T OF ACTUARIAL GAl~ I (LOSS) 

FOR THE \'EAR E:'-1DED FEBRUARY 28. 2015 

1. Unfunded Actuarial Liability at Start of Year (not less than zero) 

2. Normal Cost and Expenses at Start of Year 

3. Interest on I. and 2. to End of Year 

4. Contributions for Prior Year 

5. Interest on 4. to End ofYear 

6. Change in Unfunded Actuarial Liability Due to Changes in Methods 

7. Change in Unfunded Actuarial Liability Due to Changes in Assumptions 

8. Change in Unfunded .Actuarial Liability Due to Changes in Plan Design 

9. Expected Unfunded Actuarial Liability at End of Year 

[1. + 2. + 3.-4.- 5. + 6. + 7. + 8.] 

10. Actual Unfunded Actuarial Liability at End ofYear (not less than zero) 

ll. Actuarial Gain I (Loss) [9.- 10.] 

12. Amortization Factor for Actuarial Gain I (Loss) 

13. Amortization Credit I (Charge) for Actuarial Gain I (Loss) 

<:-HEIRON 

$ 94,138,807 

2,047,388 

7,213,964 

4,120,469 

20,256 

0 

12,570,893 

0 

$ 111,830,327 

111,598,690 

$ 231,637 

9.8781 

$ 23,450 

16 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH l, 2015 

SECTION IV- CONTRIBUTIONS 

Table 1\'- 5 

SCHEDULE OF AMORTIZA TIO~S REQUIRED FOR i\11~1:\IUM REQUIRED CONTI~ I BUTJO;\' 

AS OF l\1.\RCH I. 2015 

T~ pe of Base 

. . I. Initial Unfunded 

2. Plan Amendment 

3. Method Change 

4. Plan Amendment 

5. Actuarial Loss 

6. Actuarial Loss 

7. Actuarial Loss 

8. Actuarial Loss 

9. Actuarial Loss 

1 0. Actuarial Loss 

11. Assumption Change 

12. Actuarial Loss 

13. Actuarial Loss 

14. Actuarial Loss 

15. Actuarial Loss 

16. Assumption Change 

17. Actuarial Loss 

18. Actuarial Loss 

19. Assumption Change 

TOTAL CHARGES 

..C-HEIRON ~ 

Date 

Established 

3/1/1978 

3/111989 

3/ 111989 

3/ 1/1 993 

3/ 1/2000 

3/ 1/2001 

3/ l/2002 

3/112003 

3/112005 

3/1/2006 

3/l/2007 

3/ 1/2007 

3/l/2008 

3/ 1/2009 

3/l/2011 

3/l/2012 

3/l/2012 

3/l/2013 

3/1/2015 

$ 

Initial 

Amount 

16,575,006 

63,848 

15,842,844 

5,282,693 

7,511,951 

11,966,014 

13,842,899 

22,582,575 

3,018,172 

2,642,095 

8,194,633 

2,180,614 

15,092,752 

28,127,155 

7,919,489 

2,075,229 

6,035,275 

3,242,769 

12,570,893 

Initial 

Amortiz~•tion 

\ 'cars 

40 

30 

30 

30 

30 

15 

15 

15 

15 

15 

30 

15 

15 

15 

15 

15 

15 

15 

15 

311 /2015 

Out.,tanding 

Balance 

$ 3,318,468 

17,716 

4,396,460 

2,580,031 

5,574,339 

. 1,248,486 

2,792,907 

6,765,682 

1,379,118 

1,402,737 

7,366,731 

1,308,447 

10,014,909 

20,325,991 

6,563,232 

1,818,540 

5,288,762 

2,985,145 

12.570.893 

$ 97,718,594 

Remaining Beg of \'r 

Amortization Amortization 

\'ears Amount 

3 $ 1,179,144 

4 4,872 

4 1,209,031 

8 400,839 

15 564,313 

1 1,248,486 

2 1,442,045 

3 2,404,035 

5 312,980 

6 273,556 

22 611,008 

7 225,456 

8 1,555,936 

9 2,891,493 

11 809,729 

12 211,632 

12 615,477 

13 329,865 

15 1,272.602 . 

$ 17,562,499 

17 
UNITED FURNlTURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATTON REPORT AS OF MARCH 1, 2015 

SECTION IV- CONTRIBUTIONS 

Table IV- 6 

SClii£0UL£ OF A:\ ORTIZATIO~S REQUIRED FOR :\11~1:\IU;\I REQUIRED CO;'~;TRIBUTIOi\' 

AS OF AR I-I I, 2015 

T~pc of Ba!>e 

CREDITS 

1. Funding Method Change 

2. Plan Amendment 

3. Actuarial Gain 

4. Actuarial Gain 

5. Actuarial Gain 

TOTAL CREDITS 

NET CHARGE 

..C+~EIRON ~ 

Date 

Established 

3/112008 

3/1/2009 

3/1/2010 

3/1/2014 

3/112015 

$ 

Initial 

Amount 

6,945,57 I 

590,517 

11,371,471 

4,028,752 

231,637 

Initial 3/1/20 15 Remaining Beg of Yr 

Amortization Outstanding Amortization Amortization 

\'cars Balnncc \'ears Amount 

10 $ 2,631,401 3 $ 935,010 

15 426,733 9 60,705 

15 8,842,602 10 1,165,787 

15 3,874,502 14 408,816 

15 231.637 15 23.450 

$ 16,006,875 $ 2,593,768 

$ 81,711,719 $ 14,968,731 

18 
Ul'l'lTED FURNlTURE WORKERS PENSION PLAN A 

ACfUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION IV - CONTRIBUTIONS 

Table IV -7 

ACCU:\1ULATEO ECO~CILI TI 0;\1 ACCOUNT A:'IID 8,\ L \ ;\;CE TEST 

AS O F \R II I , 2015 

1. Amount due to Additional Interest Charges in prior years $ 

2. Amount due to Additional Funding Charges in prior years 

3. Reconciliation Account at Start of Year [1. + 2.] $ 

4. Net Outstanding Amortization Bases $ 

5. Funding Deficiency at Start of Year $ 

6. Unfunded Actuarial Liability at Start of Year from Funding Equation [ 4.- 3.- 5.] $ 

7. Actuarial Liability at·Start of Year $ 

8. Actuarial Value of Assets at Start of Year $ 

9. Unfunded Actuarial Liability at Start of Year from Liability Calculation (7. - 8.] $ 

The Plan passes the Balance Test because line 6. equals line 9. 

<:++EfRON~ 

0 

NA 

0 

81,711,719 

29,886,971 

111,598,690 

181,564,343 

69,965,653 

111,598,690 

19 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACIUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION IV- CONTRIBUTIONS 

Table 1\' - 8 

OE\'ELOP:\IE:'\'T OF FULL Fll:\JJU\'G I.L'\11'1'.-\TIO;\' 

FOR THE YEAR BEGii\'~ :\' C :\1.-\.RCH I. 2015 

1. Actuarial I PP A Liability Full Funding Limit Calculation 

a. Actuarial I PPA Liability $ 

b. Normal Cost with Expenses 

c. Lesser ofMarket Value and Actuarial Value of Assets 

d. Credit Balance at Start of Year, not less than zero 

e. Net Interest on a., b., c., and d. at Funding Interest Rate (6.75%) 

f. Actuarial I PPA Liability Full Funding Limit (a.+ b.- c. + d.+ e.], limited to iero $ 

2. Full Funding Limit Override (RP A 1994) 

a. RP A 1994 Current Liability at Start of Year $ 

b. Present Value ofBenefits Estimated to Accrue during Year 

c. Expected Benefit Payments 

d. Net Interest on a., b. and c: at Current Liability Interest Rate (3.44%) 

e. Expected Current Liability at End of Year [a. + b. - c. + d.) 

f. 90%ofe. 

g. Actuarial Value of Assets 

h. Expected Expenses 

I. Net Interest on c., g., and h. at Valuation Interest Rate (6.75%) 

j. Estimated Value of Assets [g.- c.- h.+ i.] 

k. RPA 1994 Full Funding Limit Override [f.-j.], limited to zero $ 

3. Full Funding Limitation at End of Plan Year, greater of l.f. and 2.k. $ 

.C+tEIRON ~ 

Minimum Maximum 

181,564,343 $ 181,564,343 

2,064,551 2,064,551 

69,965,653 69,965,653 

0 NIA 

7.672,269 7,672.269 

121,335,510 $ 121,335,510 

290,549,936 $ 290,549,936 

1,768,880 1,768,880 

14,065,072 14,065,072 

9,815,894 9,815,894 

288,069,638 288,069,638 

259,262,674 259,262,674 

69,965,653 69,965,653 

1,175,000 1,175,000 

4,176,424 4,176,424 

58902.005 58,202.005 

200,360,669 $ 200,360,669 

200,360,669 $ 200,360,669 

20 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARJAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION V- UNFUNDED VESTED BENEFITS 

The allocation of the Unfunded Vested Benefits (UVB) is determined under the Presumptive method as defined in the Multiemployer Pension 

Plan Amendments Act of 1980 (MEPPA). If an employer withdraws between March 1, 2015 and February 29, 2016, they will be assessed 

Withdrawal Liability based on their share of the UVB. The Present Value of Vested Benefits (PVVB) is valued using a 6.25% interest rate 

assumption (7.00% for Plan Year ending 2/28/2014), and the same provisions as disclosed in Appendix B with the exception that disability 

benefits are excluded. 

Under the Presumptive method, "pools" are created each year based on the change in the Plan's Unfunded Vested Benefits (UVB). The UVB 

is calculated as the difference between the PVVB and the Market Value of Assets (MVA). In addition, the pools may include an adjustment 

for uncollectible Withdrawal Liability for prior withdrawn employers and statutory limits. Each pool is then written down over 20 years and 

allocated among the employers based on their proportional share of contributions. 

<:-HEIRON ~ 

Table\'- I 

Ui\FU;\Or!:O VEST~O BF.i\"F.FITS 

2/28/2014 

1. Present Value of Vested Benefits 

a. Retirees and Beneficiaries $ 105,541,627 

b. Terminated Vested Participants 41,569,783 

c. Active Participants 271901,834 

d. Total $ 175,013,244 

2. Interest Rate 7.00% 

3. Market Value of Assets on Financial Statement (without the 

Withdrawal Liability Payments Receivable) $. 74,722,931 

4. Unfunded Vested Benefits [l.d - 3.] $ 100,290,313 

5. Funded Ratio [3. + l .d] 42.7% 

2/28/2015 

$ 113,139,696 

49,471,348 

2713161651 

$ 189,927,695 

6.25% 

$ 68,387,517 

$ 121,540,178 

36.0% 

"21 
<:++EIRON~ 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACfUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

SECTION VI- FASB ASC TOPIC #960 

Table \"1- 1 

PRESE:\T VALUE OF ACCU,\IUL\TI::U HE1'1£HI'S AS OF ;\1.\RCII 1, 2015 

1:\ ACCORVA;\CE WlTII ASCTOPIC ;\0. 960 

1. Actuarial Present Value of Vested Benefits I I • I I I 

For Retirees and Beneficiaries $ I • , 

Terminated Vesteds 45,764,390 3,471 

Active Participants 2~ 822 -242 713 

Total Vested Benefits $ I 81,058,453 9,747 

2. Non-Vested Benefits $ ~Q~.82Q 316 

3. Accumulated Benefits $ 181,564,343 10,063 

4. Market Value of Assets on Financial Statement (without the 

Withdrawal Liability Payments Receivable) $ 68,387,517 

5. Funded Ratios 

Vested Benefits 37.8% 

I. Actuarial Present Value at Start of Prior Plan Year $ 168,388,149 

2. Increase (Decrease) over Prior Year due to: 

Benefit Accruals $ 897,388 

Benefit Payments (13,604,248) 

Increase for Interest 12,186,256 

Experience (Gains)/Losses 1,125,905 

Changes in Assumptions 12,570,893 

Plan Amendments 0 

Total $ 13,176,194 

3. Actuarial Present Value at End of Prior Year $ 181,564,343 

22 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX A- MEMBERSHIP INFORMATION 

The data for this valuation was provided by the Fund Office as of March 1, 2015. Cheiron did not audit any of the data. However, we did 

perform an informal examination of the obvious characteristics of the data for reasonableness and consistency in accordance with Actuarial 

Standard of Practice No. 23. 

The following is a list of data charts contained in this section: 

)> Summary of Participant Data . 

)> Changes in Plan Membership 

)> Age/Service Distribution for Active Participants 

~ Counts and Average Benefit Amount by Age for Retirees, Beneficiaries, and Disabled Participants 

~ Counts and Average Benefit Amount by Age for Terminated Vested Participants 

<:+IEIRON ~ 

SUMi\IARY OF PARTIC PA ~'T 0.\ fA 

Active Participants 

Count 

Average Age 

A ve:age Benefit Service 

March l, 2014 

1,105 

47.7 

14.9 

Retirees and Beneficiaries Receiving Payments 

Count 5,596 

Annual Benefits $ 13,206,363 

Average Annual Benefit 2,360 

Terminated Vested Participants 

Count 

Annual Benefits 

Average Annual Benefit 

$ 

3,487 

9,441,383 

2,708 

March 1. 2015 

1,029 

47.1 

13.1 

5,563 

$ 13,462,349 

$ 

2,420 

3,471 

9,913,931 

2,856 

23 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX A- MEMBERSHIP INFORMATION . 

P.-\U.TICIP.-\:'\ 1' RF.CO:\C II.I.\TIO:'\ FIW\1 :\1.\RCU I, ::!OI.S TO :\1.\IKH I, 2H1 5 

Terminated 

Actives Vested Retired Disabled Beneficiaries 

l. March 1, 2014 valuation 1,105 3,487 4,491 337 768 

2. Additions 

a. New entrants 152 0 0 0 0 

b. Inactive but not in prior year's data 0 6 17 0 2 

c. NewQDRO 0 0 0 0 I 

d. Total 152 6 17 0 3 

3. Reductions 

a. Terminated Nonvested (41) 0 0 0 0 

b. Benefits expired 0 0 0 0 0 

c. Died without beneficiary 0 (13) (179) (8) (51) 

d. Assumed deceased 0 (6) 0 0 0 

e. Total (41 ) (19) (179) (8) (51) 

4. Changes in Status 

a. Tenninated Vested (168) 168 0 0 0 

b. Returned to work 5 (3) 0 0 0 

c. Retired (21) (155) 176 0 0 

d. Disabled (3) (4) 0 7 0 

e. Beneficiary commencing 0 (2) 0 0 2 

f. Died with beneficiary 0 (5) (41) (3) 49 

g. Data Correction 0 {2) 0 (I) (4) 

h. Total (187) (3) 135 3 47 

5. March 1, 2015 Valuation 1,029 3,471 4,464 332 767 

<:++EIRON ~ 

Total 

10,188 

!52 

25 

1 

178 

(41) 

0 

(251) 

(6) 

(298) 

0 

2 

0 

0 

0 

0 

_ _m_ 

(5) 

10,063 

24 
Age Under 1 

Under25 32 

25 to 29 31 

30 to 34 11 

35 to 39 12 

40 to 44 16 

45 to 49 13 

50 to 54 10 

55 to 59 8 

60 to 64 2 

65 to 69 0 

/ 70& up 0 

I Total 135 

<:++EIRON ~ 

I to 4 

19 

31 

28 

22 

27 

19 

18 

11 

4 

2 

0 

181 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX A- MEMBERSHIP INFORMATION 

ACE I SERVICE DISTRIBUTION OF ACTIVE I'ARTJCIP1\ l\'TS 

AS Of I\IARCB 1. 2015 

Sen ice 

5 to 9 10 to 14 IS to 19 20 to 24 25 to 29 30 to 34 

0 0 0 0 0 0 

8 0 0 0 0 0 

16 12 0 0 0 0 

17 36 22 3 0 0 

13 18 28 7 2 0 

20 24 33 ll 14 1 

15 26 32 17 29 7 

7 25 45 23 29 21 

11 17 24 15 11 18 

1 6 6 3 4 3 

0 1 0 0 0 0 

108 165 190 79 89 50 

Average Age= 47.1 Average Service = 13.1 

35 to 39 40&up Total 

0 0 51 

0 0 70 

0 0 67 

0 0 112 

0 0 111 

0 0 135 

2 0 156 

6 1 176 

7 5 114 

5 6 36 

0 0 1 

20 12 1,029 

25 
Age 

Under 55 

55-59 

60-64 

65-69 

70-74 

75-79 -1 

80 & Over 

Total 

UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX A- MEMBERSHIP INFORMATION 

ACE DISTR TIO~ OF INACTIVE PA TIC PA~TS 

PENSIONERS AND BEXEFICIARIES RECE VI~C BENEFITS AS OF :\lARCH I. 2015 

Normal, Early Surviving Spouses 

Disability Deferred Vested and Beneficiaries 

Retirements Retirements Receiving Benefits Total 

Monthly Monthly Monthly Monthly 

Number Benefit Number Benefit Number Benefit Number Benefit 

45 $ 19,171 0 $ 0 23 $ 2,641 68 $ 21,812 

53 21,592 220 48,472 24 2,552 297 72,616 

57 24,209 527 119,143 69 9,297 653 152,649 

47 19,640 822 185,687 91 9,733 960 215,060 

56 15,398 . 849 ] 88,377 110 11,910 ] ,015 215,685 

31 7,284 1 760 157,237 144 15,894 I 935 180,415 

43 8,440 1,286 227,224 306 27,961 1,635 263,625 

332 $ 115,734 4,464 $ 926,140 767 $ 79,988 5,563 $ 1,121,862 

OEFEt<nEU \'£STEU RI'I CIPA ~TS .\NU SLIIH'I\'ING St•OUSES E~T TLE D TO FUTURE BENEFITS 

Monthly Benefit Payable at 

Age Number Normal Retirement Date 

Under45 691 $ 165,774 

45-49 441 107,567 

50-54 735 230,569 

55-59 734 165,332 

60-64 553 112,170 

65 & Over 317 44,749 

I Total 3,471 $ 826,161 

~+iEIRON~ 

I 

I 

26 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX B- SUMMARY OF MAJOR PLAN PROVISIONS 

The following is a summary of the major provisions. Please refer to the Plan document for a more complete description. 

1. Effective Date 

The Plan was established on March 1, 1962. The most recent 

amendment was effective March 1, 2009. 

2. Participation 

Employees become Participants as of the date their employer is 

obligated to begin contributions to the Plan on their behalf. 

3. Past Service 

Participants shall, after 36 months of contributions have been 

made, be credited with a year of Past Service during any 

calendar year prior to the employer's applicable effective date 

in which they were employed for at least six months. 

4. Effective Service 

Participants on July 1, 1974 shall be credited with Effective 

Service for each month for which contributions were made on 

their behalf through January 1, 1971. 

5. Future Eligibility Service 

A Participant shall be credited with a year of Future Eligibility 

Service for each calendar year beginning January 1, 1971 

during which contributions were made on their behalf and they 

worked at least 1,000 hours. 

-{:-HEIRON ~ 

6. Normal Retirement 

EliE!ibilitv: The later of age 65 and 51h anniversary of Plan 

participation. 

Benefit: The monthly benefit is equal to the sum of the 

following, but not less than $50: 

(A) Multiply the average annual contribution made on the 

Participant's behalf after January 1, 1971 by the 

number of years of Past Service by the applicable 

percentage. The percentage ranges from 1.8% to 2.2% 

depending on when participation began and how many 

months employer contributions were made. 

(B) Multiply the average annual contribution made on the 

Participant's behalf after January 1, 1971 by the 

Effective Service Credit by 3.0%. 

(C) Multiply the total amount contributed on behalf of the 

participant from January 1, 1971 to August 31, 2003 by 

3%. 

(D) Multiply the total amount contributed on behalf of the 

participant from September 1, 2003 to August 3-1, 2006 

by2%. 

(E) Multiply the total amount contributed on behalf of the 

participant after August 31, 2006 by 1%. 

Effective March 1, 2009, the monthly benefit for participants 

not yet retired will have no 36-month guarantee feature. 

27 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX B- SUMMARY OF MAJOR PLAN PROVISIONS 

7. Early Retirement 

Eligibility: Age 55 and five years of service (ten years of 

service if the participant did not have at least one. hour of 

service after March 1, 1998). 

Benefit: The normal retirement benefit described above 

reduced by 5/9 of 1% for each month the Participant is less 

than 65 and by 5/l2 of I% for each month the Participant is 

less than 62. 

Effective March l, 2009, the subsidized reduction described 

above is only applied to Participants retiring directly from 

active status. All other retirements will be actuarially reduced 

to reflect early commencement of benefits. 

8. Disability Retirement 

Eligibility: Five years of service (ten years of service if the 

participant did not have at least one hour of service after 

March 1, 1998) and awarded a Social Security Disability 

Award. 

Benefit: The normal retirement benefit earned to date will be 

payable without reduction for age. 

..C-HEIRON ~ 

9. Deferred Vested Pension 

Eligibilitv: Five years of service (ten years of service if the 

participant did not have at least one hour of service after 

March 1, 1998). 

Benefit: Accrued benefit payable at normal retirement. 

10. Joint~ Survivor Annuity Benefit 

Eligibility: Participant must be eligible for early, normal or 

disability pension on their date of death. 

Benefit: The actuarial equivalence of 50% or 75% of the 

accrued benefit with reduction for early retirement if 

applicable. 

11. Normal Form 

If Single: Straight Life Annuity 

If Married: 50% Joint & Survivor, actuarial equivalence 

12. Changes to Plan Provisions Since Last Valuation 

None . 

28 
A. Actuarial Assumptions 

U~ITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX C- ACTUARIAL ASSUMPTIONS AND METHODS 

1. Investment Return (net of investment expenses) 4. Rates of Turnover 

Sen ice Funding & ASC 960 purposes 

Current Liability under RP A 1994 

Withdrawal Liability purposes 

6.75% per year 

3.44% per year 

6.25% per year 

A~ 0 - 1 1-2 l-3 3+ 

2. Administrative Expenses 

Average expenses from the most recent two years rounded 

to the nearest $5,000; this year the assumption is 

$1,175,000. 

3. Rates of Mortality 

Funding & ASC 960: 

- Healthy Lives: RP2000 with blue collar adjustment, 

projected 5-years with Scale AA 

-Disabled Lives: same with ages set-forward five years 

RP A '94 Current Liability: 

-2015 Current Liability Combined Mortality Table 

Terminated Vested Participants over age 80 are assumed to 

be deceased. 

In accordance with Actuarial Standard of Practice #35, we 

have considered the effect of mortality improvement prior 

to and subsequent to the measurement date in developing 

this assumption. 

--(-HEIRON ,P. 

5. 

25 20.5% 20.5% 

35 16.9 16.9 

45 15.0 15.0 

55 15.0 15.0 

62 15.0 15.0 

Rates of Disability 

A •e Rare 

25 

35 

45 

55 

65 

0.050% 

0.065 

0.244 

0.406 

0.000 

6. Rates of Retirement 

62-64 

65-69 

70 

15.00 

50.00 

100.00 

19.0% 

16.9 

12.4 

7.0 

7.0 

7. Normal Form Life Annuity 

15.0% 

11.3 

7.8 

7.0 

7.0 

29 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACfUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX C-ACTUARIAL ASSUMPTIONS AND METHODS 

8. Justification for Economic Assumptions 

In accordance with Actuarial Standard of Practice No. 27, 

the rationale for our 6.75% discount rate is based on the 

Trustees risk preference, the Fund's current asset 

allocation, and the investment managers capital market 

outlook. 

Based on the current asset allocation, the investment 

manager's 10-year projected real return is 3.46%. Using 

Cheiron's long term price inflation of 3.25% increases the 

expected return to 6.71%. Furthermore, it is expected that 

a 30-year forecast may provide for higher returns. 

9. Changes in Assumptions Since the Last Valuation 

The RP A ' 94 current liability interest rate was changed 

from 3.63% to 3.44% to comply with appropriate guidance. 

The RP A '94 current liability mortality table changed from 

the 20 14 static mortality table to the 2015 static mortality 

table to comply with appropriate guidance. 

The investment return assumption was reduced from 7.50% 

to 6.75% to better reflect future investment expectation 

given the current risk tolerance. 

The investment return assumption for withdrawal liability 

purposes was reduced from 7.00% to 6.25%. 

<:-HEIRON ~ 30 
UNITED FURNITURE WORKERS PENSION PLAN A 

ACTUARIAL VALUATION REPORT AS OF MARCH 1, 2015 

APPENDIX C- ACTUARIAL ASSUMPTIONS AND METHODS 

B. Actuarial Methods 

1. Actuarial Cost Method 

The cost method for determining liabilities for this 

valuation is the Unit Credit Cost method. This is one of a 

family of valuation methods known as accrued benefit 

methods. The chief characteristic of accrued benefit 

methods is that the funding pattern follows the pattern of 

benefit accrual. The normal cost is determined as that 

portion of each participant's benefit attributable to service 

expected to be earned in the upcoming plan year. The 

Actuarial Liability, which is determined for each 

participant as of each valuation date, represents the 

actuarial present value of the portion of each participant's 

benefit attributable to service earned prior to the valuation 

date. 

2. Asset Valuation Method 

The actuarial value of assets is determined in accordance 

with Section 3.16 of Revenue Procedure 2000-40 using a 

five-year smoothing period. Specifically, the actuarial value 

of assets as of March 1, 2007 is set equal to the market 

value of assets. For each subsequent plan year, the actuarial 

value shall be the market value minus a decreasing fraction 

(4/5, 3/5, 2/5, 115) of each gain or loss for each of the 

preceding four plan years. Gains or losses prior to March 1, 

2007 are ignored. The resulting actuarial value of assets is 

then limited to be no greater than 120% and no less than 

80% ofthe market value of assets on the valuation date. 

<":-HEIRON ~ 

3. Withdrawal Liability Method 

The Plan uses the Presumptive method with the Unfunded 

Vested Benefits calculated as the difference between the 

market value of assets and the present value of 

nonforfeitable benefits valued at 6.25%. 

4. Changes in Actuarial Methods Since the Last Valuation 

None. 

31