APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 1 of 10

This Exhibit details the information on actuarial assumptions and methods that, pursuant to Section 6.03 

of Revenue Procedure 2017-43, must be described in an application for approval of a proposed benefit 

suspension. The three parts of this Exhibit correspond to the subsections of Section 6.03 of Revenue 

Procedure 2017-43.

Part 1 - Actuarial assumptions and methods used for projections. 

Provided is information regarding specific actuarial assumptions (per Revenue Procedure 2017-43) 

used in the cash flow projections included in the application, with the exception of the projections 

included in Exhibit 3.01, Exhibit 7.10a, and Exhibit 7.10b. The differences in the assumptions used 

for Exhibit 3.01, Exhibit 7.10a, and Exhibit 7.10b are addressed in Part 3 of this Exhibit.

Investment returns 

 Net investment return for deterministic projections:

o Assumed investment return of 10.3% for the 2017 calendar

o 6.58% per year during calendar years 2018-2027 and 7.54% per year during calendar 

years 2028 and later

 Assumptions used for stochastic projections (if applicable): Not applicable

Mortality assumptions 

 Healthy Lives: RP-2014 Blue Collar Tables with separate rates for non-annuitants and annuitants 

and separate rates for males and females. Mortality improvement: MP-2017 projection scale 

beginning in 2014.

 Disabled Lives: RP-2014 Disabled Mortality Tables with separate rates for males and females. 

Mortality improvement: MP-2017 projection scale beginning in 2014.

Other demographic assumptions 

 The complete list of disability, withdrawal, and retirement decrement rates is included as Exhibit 

6.03-1.

Assumptions regarding form and commencement age of benefits 

 Form of payment election assumptions for active and terminated vested participants:

o 35% of all participants elect the straight life annuity

o 15% of all participants elect the 50% joint and survivor with popup annuity

o 30% of all participants elect the 100% joint and survivor annuity

o 20% of all participants elect the 10-year certain and continuous annuity

IW16-0093
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 2 of 10

 Assumptions regarding the probability of benefit commencement by age for participants who 

have terminated with deferred benefits or who are assumed to terminate with deferred benefits 

in the future:

o The retirement age and mortality assumptions for current terminated vested 

participants are the same as those assumed for active participants (see Exhibit 6.03-1).

o The retirement age for future terminated vested participants is assumed to be age 60.

 Assumptions regarding the probability of benefit commencement by age for participants who 

have become disabled or who are assumed to become disabled in the future:

o The Plan does not provide a disability pension benefit for participants with onsets of 

disability on or after January 1, 2014.

o The retirement age assumptions for participants with disability onset dates on or after 

January 1, 2014 (and on or prior to January 1, 2017) are the same as those assumed for 

active participants (see Exhibit 6.03-1).

o The retirement age assumptions for participants with disability onset dates after 

January 1, 2017 is assumed to be age 60.

Assumptions regarding missing or incomplete data 

 Assumption regarding terminated vested participants beyond normal retirement age who, 

because they have not commenced receiving benefit payments, could be considered missing: 

None. All such participants are included for valuation and cash flow projection purposes.

 Assumptions to fill in other missing data:

o Spouses of active male/female participants assumed to be 3 years younger/older than 

the participant.

o There are no other missing or incomplete data that would be considered material.

New entrant profile 

 The following is a description of the composition of the new hire profile, including the weights 

applicable to each assumed age of entry:

o The new hire profile is comprised of 25 participants, with each participant assigned an 

equal weight for purposes of assumed age of entry.

o The new hire profile is comprised of participants who were first reported as plan 

participants in the January 1, 2016 or January 1, 2017 valuations

o The age at hire, the service and accrued benefit as of January 1, 2016 were preserved 

for participants who were newly active participants in the January 1, 2016 valuation.

Contribution rates

 For projection purposes, an effective hourly contribution rate, reflecting non-reciprocated and 

net-reciprocated hours, of $9.50 per hour was used during 2017 and a rate of $9.56 per hour 

was used during 2018 and later years. These effective rates are comprised of the following:

IW16-0094
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 3 of 10

o An hourly contribution rate for non-reciprocated hours of $9.70 per hour during the 

projection period.

o An effective hourly contribution rate for net-reciprocated hours of $8.95 per hour 

during 2017, and $9.18 per hour during 2018 and later years.

Contribution base units

 Contribution base units for projection purposes are equal to hours worked in covered 

employment, including both non-reciprocated and net reciprocated hours.

 For purposes of calculating future Normal Costs, the assumption regarding number of hours 

associated with each active participant is the average of hours for the two years prior to the 

valuation date; however, if there are no hours in the second year preceding the valuation date, 

then the hours assumption is based on prior year hours only.

o The average assumption (i.e., average of each active participant’s assumed 2017 hours) 

reflected in the 2017 Normal Cost is 1,525 hours per participant.

 For purposes of calculating future employer contributions, the assumption regarding the 

number of contribution base units is as follows:

Year

NonReciprocated

Hours Change

Net 

Reciprocated

Hours Change Total Hours Change

2017 261,000 94,000 355,000

2018 242,730 -7% 87,420 -7% 330,150 -7%

2019 228,166 -6% 82,175 -6% 310,341 -6%

 2020+ 216,758 -5% 78,066 -5% 294,824 -5%

IW16-0095
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 4 of 10

Withdrawal liability payments 

There are no current and no assumed future withdrawal liability payments.

Administrative expenses 

Administrative expenses, expressed as of the beginning of the year, are assumed to be $490,000 for the

2017 plan year, $335,000 for the 2018 plan year, and $320,000 for the 2019 plan year. Starting with 

2020, administrative expenses are assumed to increase 2% per year.

Projection methodology 

 A description of any approximation or data grouping techniques that were used: None.

 A description of any changes to the cash flow projections that would normally be provided by 

the actuarial software, including both changes to the programming that affect the results 

generated by the software and modifications to the results generated by the software: None.

Part 2 - Supporting documentation for selection of certain assumptions. 

Investment Returns

 Exhibit 6.03-2 contains the components of the target portfolio used in the projections 

(expressed in terms of the asset classes used for setting the plan’s investment policy) and the 

allocation of the components of the target portfolio among the asset classes, as listed in 

Appendix B of Revenue Procedure 2017-43. This information was provided by the Fund’s 

investment consultant, Investment Performance Services, LLC (“IPS”).

o The target portfolio includes an allocation to the Opportunistic and Global Tactical Asset 

Allocation asset classes, which are not asset classes included on the list in Appendix B.

 While fundamentally different, the Opportunistic asset class most closely 

resembles the Core Real Estate asset class on Appendix B, in terms of the 

expected net return, standard deviation, and correlations.

 While fundamentally different, the Global Tactical Asset Allocation asset class 

most closely resembles the Infrastructure asset class on Appendix B, in terms of 

the expected net return, standard deviation, and correlations.

 Any differences in target and current allocations is due to normal market fluctuations inherent 

to any investment portfolio.

 Generally, the investment policy of the Plan is to invest the assets of the Plan among several 

asset classes and within permitted allocation ranges. The Board of Trustees reviews the 

investment policy and the asset allocation on a regular basis and determines, with input from 

the investment consultant, whether any changes are warranted based on current market 

conditions and expectations about the future. The mix of assets will vary over time due to 

IW16-0096
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 5 of 10

changes to the target allocations, if any, and due to normal market fluctuations. There are no 

current plans or actions to change the existing target allocation.

 Exhibit 6.03-2 contains the net of fees short term and long term investment return assumptions 

used for the deterministic projections. The assumptions are, in part, based on the expected 

returns for the various asset classes. The following information is also provided:

o The expected geometric and arithmetic expected returns, net of fees, for each asset 

class;

o The standard deviation of returns for each asset class; and

o The correlations for the returns among the asset classes. 

o Please also note:

 The inflation rate inherent in the net investment returns is 2.50%.

 The investment-related expense for the 2016 plan year was 0.8%.

 The Plan’s investment consultant provided expected annual returns of 6.58% for a short term 

(10-year) investment horizon and 7.25% for a long term investment horizon, as shown in Exhibit 

6.03-2.

o The expected long term rate of return of 7.25% implies a time-weighted 7.54% annual 

rate of return starting in year 11 of the extended period, given the 6.58% annual rate of 

return during the initial 10 year period. These rates result in a dollar-weighted rate of 

return of 6.92% over the extended period and reflecting the proposed suspensions.

o The investment consultant, IPS, determined the short term investment return 

assumptions using Wilshire Compass, the plan’s target asset allocation, and the 10-year 

investment horizon inputs from the Survey of Capital Market Assumptions (2017 

Edition) published by Horizon Actuarial Services, LLC. IPS used their own expected 

returns for the Opportunistic and GTAA strategies as those asset classes were not listed 

in the Horizon survey. The Horizon survey and IPS expected returns are net of fees 

index returns.

o IPS determined the long term investment return assumptions using Wilshire Compass, 

the plan’s target asset allocation, and IPS’s capital market expectations. IPS expected 

returns are net of fees index returns.

 The investment return for the period October 1, 2017 to December 31, 2017 was based on the 

Plan’s preliminary net of fees investment returns during October and November, as provided by 

IPS, and on the expected investment return during December of 0.53% (based on the 6.58% 

annual short term assumption).

Demographic experience

 Copies of studies of the plan’s demographic experience performed over the last ten years:

o Attached as Exhibit 6.03-3 are the results of the retirement rates experience study 

performed in 2015.

o Attached as Exhibit 6.03-4 are the results of the form of payment experience study 

performed in 2017.

IW16-0097
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 6 of 10

 Any liability gain or loss analysis (by source, if available) performed over the last ten years: 

Exhibit 6.03-5 includes the results of gain or loss analyses performed over the last ten years. 

The results are not available by source other than mortality.

 Percentage of the plan population that is married: Marriage data for non-retired pension plan 

participants is not available since it is not tracked by the plan administrator. However, marriage 

data is tracked for the Local 16 Health Fund, which includes mostly the same active participants 

as the pension plan. The health and welfare plan data shows that about 50% of active members 

are married. Please note that there is no charge for dependents in the Health Fund, so the 

marriage percentage is representative of the actual marriage experience.

 Distribution of each optional form of benefit selected at retirement for the last five years: Please 

see Exhibit 6.03-4.

Retirement rates by age for benefit commencements during the last 5 years, separately for 

active and terminated vested participants: Please see Exhibit 6.03-6.

Mortality assumptions 

 The assumed mortality rates used for Healthy Participants are those from the RP-2014 Blue 

Collar sex-distinct tables as issued by the Society of Actuaries (available at 

https://www.soa.org/experience-studies/2014/research-2014-rp/).

 Description of the process that was used to construct the mortality rates based on experience 

study data and the rationale for selecting that process: See the RP-2014 Mortality Tables Report.

 The assumed mortality improvement rates are those published in the SOA MP-2017 

improvement scale. These mortality improvement rates are applied to the mortality rates

starting with the 2014 year.

New entrant profile 

 Information and analysis used in the selection of the new entrant profile is provided below: 

o A distribution of ages of all new active entrants for each of last five years is shown 

below. A new entrant for purposes of the table below is someone who was an active 

participant as of the valuation date shown but who was not a plan participant as of the 

prior valuation date.

Age Range Percentage of New Entrants

1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017

Below 20 0% 0% 0% 0% 0%

20 – 24 23% 15% 0% 56% 40%

25 – 29 23% 8% 17% 11% 6%

30 – 34 8% 31% 33% 0% 6%

35 – 39 23% 23% 17% 22% 12%

40 – 44 15% 8% 0% 11% 12%

IW16-0098
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 7 of 10

45 – 49 0% 15% 17% 0% 12%

50 – 54 0% 0% 0% 0% 12%

55 – 59 0% 0% 17% 0% 0%

60 and over 8% 0% 0% 0% 0%

o A description of the extent to which a material proportion of the new entrants over the 

last five years have had prior vesting service or benefit service: The portion of new 

entrants with prior vesting service is not material (3 out of 58, or 5%, with each of the 3 

entrants having 3 years of prior service).

Contribution base units and employer withdrawals 

 For each year starting with the 2009 plan year, Exhibit 6.03-7 provides a table of employers that 

contributed 5% or more of the annual contributions to the plan. The exhibit includes the 

number of contribution base units, the average contribution rate, and the total contribution for 

each such employer.

 The historical trends experienced by the plan with respect to contribution base units and 

contribution rates is documented in several sections within the application, including Sections

5.01(II), 5.02(1)(e), 5.02(3), 5.02(4), and 6.04.

 The rationale for the contribution base units (i.e., hours of covered employment) assumption is 

as follows:

o The Board of Trustees has determined that the following annual hours assumption is 

reasonable and is based on all available information at their disposal:

Plan Year Hours % Change

2017 355,000

2018 330,150 -7%

2019 310,341 -6%

2020 294,824 -5%

 2021+ 294,824 0%

o The Trustees based the hours assumption on information available to them about 

contributory employers, the Trustees’ experience and knowledge of the trade and the 

local geography, and relationships that they have built with employers, as well as 

economic and political factors.

o The Trustees also analyzed recent and historic hours experience, including hours for 

individual employers. For example, 2017 total hours reported through August were 

approximately 239,000. The Trustees then estimated the Sep-Dec 2017 hours based on 

the average Jan-Aug 2017 hours, which over the last five years has proven to be a 

reliable estimation technique.

o The Trustees also considered the average rate of decline in total hours in the recent 

past. The average rate of decline in total hours over the last 2 to 4 years (through 2017) 

IW16-0099
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 8 of 10

is 6% to 8%. When eliminating the one-time, recent large decline attributable to the 

loss of a specific employer in 2015, the average rate of decline in total hours over the 

last 2 to 4 years is 4% to 6%.

o The merger of Local 16 into Local 5 in 2017 provides some potential for increased work 

opportunities for the members of Local 5 who work in the Baltimore area and, due to 

reciprocity agreements, whose contributions are paid to the Ironworkers Local No. 16 

Pension Fund. Due to the proximity of Baltimore to Washington, DC and the significant 

amount of work in the DC area, a substantial amount of contributions has been 

reciprocated in the past to the Local 16 Pension Fund from DC area work (see Section 

5.02(4) of the application). With this merger, the Baltimore members will not only have 

work opportunities in DC due to their geographic proximity but they will now have first 

priority due to their membership within the same local union. This factor is expected to 

provide additional stability in the Local 16 Pension fund hours.

o We have assumed no future employer withdrawals and, therefore, no future withdrawal 

liability payments. There have been no employer withdrawals during the past five years 

and none of the current employers have notified the Plan of an upcoming withdrawal.

o The Trustees recognize the significant reductions in hours in the recent past and took

such reductions very seriously in determining their expectations going forward, leading 

to a reduction in the hours assumption in 2018, 2019, and 2020.

 The rationale for the contribution rate assumption is as follows.

o The Local 16 Pension Plan contribution rate of $9.70 per hour is expected to remain at 

this level for the duration of the projection period. Sections 5.02(1)(e) and 5.03(2) of 

the application explain the rationale for why this rate cannot be increased.

o The effective contribution rate used for projection purposes is $9.50 per hour during 

2017 and $9.56 per hour during 2018, and then is assumed to remain at that level for 

the duration of the projection period. The effective contribution rate reflects the effect 

of net reciprocated hours and the contribution rates applicable to work performed in 

geographic areas outside Baltimore. The Local generally has no control over such rates.

 There have not been any employer withdrawals during the last 5 years.

Take-up rate with respect to selection of benefit/contribution schedules

 Description of the plan’s experience for take-up of each benefit/contribution schedule made 

available to bargaining units under the rehabilitation plan: Not applicable as only one schedule 

is available to employers.

Projection methodology

 Provide information and analysis to support any approximation techniques that were used.

o For the standard suspension and the “5% lower suspension” runs, an approximation 

technique was used for two decrements (disability and termination) affecting active 

participants only. 

IW16-0100
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 9 of 10

 The approximation technique relates to the calculation of the PBGC guaranteed 

benefit under all optional forms of payment that may apply to active 

participants who terminate employment prior to November 2020 and who 

would be subject to a partial suspension, as outlined on page 4 of the 

application.

 This approximation technique does not affect terminated vested or retiree

calculations.

 A separate analysis was performed and it was estimated that an exact technique 

would change the Actuarial Accrued Liability by less than $10,000 (or 0.006% of 

the total Actuarial Accrued Liability). Thus, the effect of this approximation 

technique was deemed immaterial.

 This approximation technique was not used for the other two decrements

(retirement and death) applicable to active and terminated vested participants.

An exact calculation was performed for those two decrements (i.e. the actual 

PBGC guaranteed benefits were computed directly for all optional forms of 

payment).

 Provide information and analysis to support any changes to the cash flow projections that would 

normally be generated by the actuarial software, including both changes to the programming 

that affect the results generated by the software and modifications to the results generated by 

the software: No such changes were made.

Part 3 – Additional disclosures relating to use of different assumptions 

 Differences in assumptions used for deterministic projections in various illustrations under the 

revenue procedure:

o The changes in the assumptions from those used for Exhibit 7.10a (i.e., 2016 actuarial 

valuation report) to those used for Exhibit 7.10b (i.e., 2017 actuarial report) are listed in 

Section 1.6 of Exhibit 7.10b. Section 1.7 of Exhibit 7.10a and Section 1.7 of Exhibit 7.10b 

disclose the assumptions used for projection purposes.

o The changes in the assumptions from those used for Section 3.01 (i.e., 2017 PPA 

Certification) to those used for Exhibit 7.10b (i.e., 2017 actuarial valuation report) are as 

follows:

 Section 7.10b is based on the demographic assumptions used for the 2017 

actuarial valuation whereas Section 3.01 is based on demographic assumptions 

used for the 2016 actuarial valuation.

 Differences in cash flow and investment assumptions used for Exhibit 3.01 and 

those used for Exhibit 7.10b are due to information received subsequent to the 

filing of the actuarial certification of status for the 2017 Plan Year.

 Section 7.10b is based on the audited January 1, 2017 market value whereas 

Section 3.01 is based on the unaudited estimated January 1, 2017 market value.

IW16-0101
APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR

IRON WORKERS LOCAL UNION 16 PENSION FUND

EIN/PN: 52-6148924 / 001

Exhibit 6.03 (Checklist Item #25)

Information on Actuarial Assumptions and Methods

Page 10 of 10

 Projected hours assumption: Exhibit 3.01 was prepared in March 2017 and the 

Trustees set the hours assumption based on information available at that 

time. Exhibit 7.10b was prepared in November 2017 and the Trustees set the 

assumption based on currently available information, including actual hours 

reported through August 2017.

 Section 1.7 of Exhibit 7.10b discloses the assumptions used for projection 

purposes.

o The changes in the assumptions from those used for Exhibit 7.10b (i.e., 2017 actuarial 

valuation report) to those used for Section 4.01(1) are as follows:

 For purposes of Section 4.01(1), the retirement decrements for active 

grandfathered participants were changed to those of the active nongrandfathered participants. While the assumption used for Exhibit 7.10b

remains reasonable for valuation purposes, the revised assumption for 

Section 4.01(1) is more reasonable for cash-flow projection purposes.

 The investment return assumption was updated to reflect short term and long 

term investment rates, as documented in Part 2 of this Exhibit 6.03, which is 

more reasonable for cash-flow projection purposes.

 While not an assumption change, there were two census data updates, 

including a change in status for one participant from a pensioner to an active 

grandfathered participant and a change in status for one participant from an 

active non-grandfathered participant to an active grandfathered participant.

 Differences in assumptions used for stochastic projections: Stochastic projections were not 

used in this application.

N:\1080\2017\Benefit Suspensions\Application Exhibits [WORK] - Dec Submission\Exhibit 6.03 (APPENDIX B) - v10.docx

IW16-0102
Exhibit 6.03-1

Decrement Tables

Decrement Tables

Disability Withdrawal Retirement Incidence

Age Incidence Incidence < 30 Service >= 30 Service

17 0.001800 0.088800 - - 

18 0.001800 0.088800 - - 

19 0.001800 0.081900 - - 

20 0.001800 0.076000 - - 

21 0.002000 0.070900 - - 

22 0.002100 0.066500 - - 

23 0.002300 0.062500 - - 

24 0.002400 0.059200 - - 

25 0.002600 0.056000 - - 

26 0.002703 0.053482 - - 

27 0.002844 0.050973 - - 

28 0.002988 0.048590 - - 

29 0.003138 0.046319 - - 

30 0.003300 0.044142 - - 

31 0.003477 0.042051 - - 

32 0.003672 0.040040 - - 

33 0.003891 0.038197 - - 

34 0.004140 0.036217 - - 

35 0.004422 0.034390 - - 

36 0.004749 0.032614 - - 

37 0.005121 0.030878 - - 

38 0.005550 0.029177 - - 

39 0.006042 0.027505 - - 

40 0.006603 0.025857 - - 

41 0.007245 0.024202 - - 

42 0.007974 0.022510 - - 

43 0.008799 0.020783 - - 

44 0.009732 0.019018 - - 

45 0.010785 0.017217 - - 

46 0.011961 0.015378 - - 

47 0.013278 0.013501 - - 

48 0.014745 0.011584 - - 

49 0.016374 0.009625 - - 

50 0.018177 0.007625 - - 

51 0.020169 0.005578 - - 

52 0.022359 0.003484 - - 

53 0.024762 0.001337 - - 

54 0.027396 - - - 

55 0.030267 - 0.150000 0.500000

56 0.033399 - 0.100000 0.250000

57 0.036801 - 0.100000 0.250000

58 0.040494 - 0.100000 0.250000

59 0.044490 - 0.100000 0.250000

60 0.048807 - 0.200000 1.000000

61 0.053460 - 0.200000 1.000000

62 0.058470 - 0.250000 1.000000

63 0.063855 - 0.250000 1.000000

64 0.069630 - 0.250000 1.000000

65 - - 1.000000 1.000000

N:\1080\2017\Benefit Suspensions\Application Exhibits [WORK] - Dec Submission\Exhibit 6 03 sub exhibits\ 

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER

 IRONWORKERS LOCAL UNION 16 PENSION FUND

 EIN/PN: 52-6148924 / 001

IW16-0103
APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER 

IRONWORKERS LOCAL UNION 16 PENSION FUND 

Equity Asset Class 

U.S. Large Cap 

U.S. MlclCap 

U.S. Smid Cap 

U.S. Smal Cap 

International Large Cap 

lntem atlonal Slllllll Cap 

Emerging Marketa 

Global Equity 

IPS Investment Convnittee J an 2017, 

Int.don expectation 2.50%. 

Return 

7.25% 

7.50% 

7.50% 

7.75% 

7.75% 

8.25% 

9.75% 

7.50% 

EIN/PN: 52-6148924 I 001 

Exhibit 6.03-2 

Investment Information 

10- 20 Years Annualized Expectations 

Risk Fixed Income Asset Class Return Risk 

16.00 Cash Equivalents 2.00% o.so 

18.00 ShorM8nn Gov /Credit 2.50% 2.50 

21.00 Intermediate 3.00% 4.oO lnvH tment Grade 

24.QO Core tlveatment Grade 3.25% 5.00 

18.00 MortgagH 4.00'1'. 4,00 

22.00 Short Duration 5.50% 6.clO High Quality High Yield 

25.00 High Quality High Yield 6.00% 9.00 

17.SO MullMlect« Fixed lnc«ne 4.50% 6.00 

Short Duration Global Bonds 3.50% s.so 

Core Plus Bonds 3.75% 5.80 

The above chart represents an annualized return forecast for different asset classes using index returns (net of fees). These forecasts are forwan:Mooking assurrc>tions 

based on reasonable beliefs of the IPS Investment Comrrittee, but are not a guarantee of future performance. Actual results may differ from the forecast above. 

Alternatives Asset Class 

MullMltmllgy 

Hedge Fund of Funds 

Opportunistic Stratitglff 

Long Sh«t Equity 

Hedge Fund of Funds 

Global 

Tactlcal Aaeet Allocatlon 

Core 

RealE9talll 

Value-Add 

Real E9talll 

REITS 

Private Equity FOF 

Prtvm Equity Secondaries 

lnfrutructure 

Risk Partly 

Commodilles 

Return Risk 

4.50% 6,00 

8.00% a.so 

6.00"k 10.00 

1.00% 12.50 

7.75"k 7,50 

9.00% 9.50 

7.75% 21.00 

10.00% 16,00 

10.00% 14.00 

7.o0% 13.50 

6.50% 16,00 

3.75% 18.50 

IW16-0104 
APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER 

IRONWORKERS LOCAL UNION 16 PENSION FUND 

EIN/PN: 52-6148924 I 001 

Exhibit 6.03-2 

Investment Information 

Investment Performance Services, LLC 

Asset Class Correlations 

18.00 21.00 24.00 21 .00 18.00 17.50 25.00 22.00 0.50 2.50 4.00 5.00 6.00 9.00 6.00 5.50 7.50 9.50 14.00 6.00 8.50 10.00 12.50 16.00 18.50 13.50 

1.00 

0.94 1.00 

0.93 0.96 1.00 

0.91 0.94 0.97 1.00 

0.13 o.n o.rs 0.1• 1.oo 

0.68 0.87 0.82 0.78 0.66 1.00 

0.94 0.93 0.90 0.86 0.71 0.96 1.00 

0.77 0.79 0.74 0.70 0.58 0.87 M9 1.00 

0.83 0.84 0.81 0.76 0.63 0.94 0.93 G.88 1.00 

--0.17 --0.16 --0.15 --0.12 --0.12 --0.13 --0.06 --0.18 1.00 

--0.07 --0.11 --0.14 O.G4 0.07 O.G1 0.12 0.06 0.42 

0.03 0.06 --0.01 --0.05 0.25 0.15 0.11 0.20 0.15 0.12 

0.02 0.03 --0.02 --0.07 0.26 0.13 0Jl9 0.18 0.13 O.o? 

o.so o.67 0.62 o.55 o.55 0.65 G.66 0.67 0.69 .0,1 6 

0.68 

0.29 

0.32 

0.12 

0.14 

0.91 

0.71 

0.74 0.70 0.65 0.67 

0.27 0.22 0.18 0.36 

0.31 0.26 0.22 0.39 

0.09 0.08 0.09 0.11 

0.10 0.10 0.11 0.13 

0.94 0.97 0.98 0.74 

0.74 0.68 0.63 0.39 

0.73 0.74 0. 72 

0.46 0.41 G.47 

o.so 0.45 G.51 

0.05 0.07 --0.03 

0.07 0.08 .0.02 

0.78 0.88 0.70 

0.77 0.76 0.75 

0. 73 Jl.17 

0.46 0. 11 

o.so 0.10 

0.02 0.09 

0.03 0.09 

0.76 --0.15 

0.80 --0.11 

0.72 0.78 0.74 0.69 0.71 0.76 0.78 0.75 0.76 -0.19 

0.86 0.89 0.86 0.81 0.56 0.89 0.92 0.89 0.90 ~ 14 

0.92 0.89 0.86 0.81 0.72 0.95 0.96 0.86 0.92 -0.09 

0.55 0.52 0.47 0.43 0.53 0.69 0.66 0.67 0.67 0.07 

0.49 0.51 0.47 0.42 0.31 0,58 0,59 G.65 0.58 0.04 

0.78 0.73 0.68 0.63 0.60 0.84 0.83 0.73 0. 77 --0.06 

A Correlation of 1.00 indicates two series move perfectly together 

while a -1.00 shows they move perfectly opposite one another. 

1.00 

0.78 1.CO 

0.71 0.96 1.00 

0,20 0,32 0.29 1J)O 

0.10 0.27 0.25 0.92 1.00 

0.66 0.75 0,73 0,35 0,35 1.00 

0.65 0.74 0.72 0,39 0.40 0..98 1.00 

--0.24 --0.16 --0.13 --0.16 --0.08 --0..GS --0.06 

--0.23 --0.15 --0.12 --0.17 --0.08 .(),1)7 --0.07 

--0.14 --0.05 --O.G7 G.55 0.65 0.18 0.22 

--0.08 --O.G1 --0Jl3 0.62 0.65 0.18 0.22 

1.00 

G.98 

0.09 

0.12 

1.00 

0. 11 

0.13 

1.00 

0.63 1.00 

0.09 0.25 0.23 0.90 0:31 o..36 0.40 -0.10 -0.1 0 0.69 0.65 1.00 

--0.03 0.00 --0.03 0.69 0.73 G.28 0.32 0.03 0.04 0.8 1 0.9·1 0.76 1.00 

0.14 0.24 0.22 0.64 0.71 o..56 0.60 0.07 0.08 0.81 0.72 0.75 0.87 1.00 

0.52 0.61 0.59 OAS OAS o..94 0.94 2 0.00 0.43 0.38 0.50 0.52 0.78 1..00 

0.16 0.11 0.G7 0.49 0,50 0,42 0.45 0.12 0.13 0.42 0.60 0.51 G.65 o.so 0,53 1.00 

0.11 0.27 0.29 0,52 0.60 0.S3 0,56 0.11 0.13 0.63 0.63 0,62 0,71 0.86 0. 71 0,50 1.00 

IW16-0105 
 Exhibit 6.03-2

Investment Information

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER

 IRONWORKERS LOCAL UNION 16 PENSION FUND

 EIN/PN: 52-6148924 / 001

IW16-0106
Exhibit 6.03-2

Investment Information

US LC 

Equity

Smid Cap 

Equity Internat'l Eq

 Fixed 

Income 

Interm

Short 

Duration HY High Yield Real Estate Value Add HFoF-Multi Strategy Opp GTAA Cash Expected Return Comments

Iron Workers Local No. 16 

Pension Fund Short Term 

Return Expectations

22.5 10.0 7.5 10.0 0.0 10.0 20.0 0.0 0.0 10.0 10.0 0.0 6.58%

Short Term Returns 

using 2017 Horizon 

survey return 

assumptions in 

conjunction with IPS 

return assumptions

Iron Workers Local No. 16 

Pension Fund Long Term 

Return Expectations

22.5 10.0 7.5 10.0 0.0 10.0 20.0 0.0 0.0 10.0 10.0 0.0 7.25%

Long Term Returns 

using IPS Return 

assumptions

US LC 

Equity

Smid Cap 

Equity Internat'l Eq

 Fixed 

Income 

Interm

Short 

Duration HY High Yield Real Estate Value Add HFoF-Multi Strategy Opp GTAA Cash Expected Return Comments

Iron Workers Local No. 16 

Pension Fund 21.0 8.5 8.0 6.5 0.0 10.5 20.5 0.0 0.0 14.5 10.5 0.0 Actual Allocation as of September 30, 2017

% Asset Class - - Target

% Asset Class - - Actual as of September 30, 2017

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER

 IRONWORKERS LOCAL UNION 16 PENSION FUND

 EIN/PN: 52-6148924 / 001

IW16-0107
Ironworkers Local 16 Pension Plan

Exhibit 6.03‐3: Review of 2009‐2013 Retirement Experience for Active Participants

Early Retirement Pension Service Pen

(Service < 25 Years) (Service <30 Years) (Service >= 25 Years) 

Exposures Actual Experience New Rate Exposures Actual Experience 

Age Count Count Observed Rate Effective 1/1/15 Age Count Count Observe

55 19 2 11% 15% 55 12 1 8% 56 16 3 19% 10% 56 10 5 50% 57 11 5 45% 10% 57 6 3 50% 58 3 0 0% 10% 58 6 1 17% 59 3 0 0% 10% 59 5 3 60% 60 10 1 10% 20% 60 2 0 0% 61 5 2 40% 20% 61 4 2 50% 62 5 2 40% 25% 62 2 1 50% 63 4 1 25% 25% 63 0 0 0% 64 5 0 0% 25% 64 0 0 0% 65 3 2 67% 100% 65 1 0 0% 66 1 1 100% 100% 66 1 0 0% 67 0 0 0% 100% 67 1 0 0% 68 0 0 0% 100% 68 3 2 67% 69 0 0 0% 100% 69 1 0 0% 70 0 0 0% 100% 70 1 1 100

* Note that actual past retirement experience for the Service Pension is not as credible for predicting future retirement experience due to the 

changes noted below.

Plan Provision Notes:

1. Eligibility for Early Retirement Pension is 55/10

2. Eligibility for Service Pension was 25 years for retirements prior to June 1, 2012

3. Eligibility for Service Pension is 30 years (and attainment of age 55) for retirements on or after June 1, 2012

4. Service Pension is reduced by 6% per year that retirement precedes age 60, for retirements after June 30, 2014

N:\1080\2017\Benefit Suspensions\Asmp ‐ Retirement\[IW16 Pension ‐ Treasury Item #9 (Exhibit D ‐ ret asmp review) ‐ copied from PY.xlsx]Table (2)

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER IRONWORKERS LOCAL UNION 16 PENSION FUND EIN/PN: 52-6148924 / 001
Ironworkers Local 16 Pension Plan

Exhibit 6.03‐4: Form of Payment

Experience from 1/1/2011 ‐ 1/1/2016

Form of Number Percentage Election

Payment Electing Electing Assumption

Normal Form 37                 36% 35% *

Life Only 1                   1% 0%

60 Month Certain 2                   2% 0%

60 Month Certain w/100% Lump Sum 2                   2% 0%

120 Month Certain 7                   7% 20% **

120 Month Certain w/100% Lump Sum 1                   1% 0%

180 Month Certain 6                   6% 0%

50% Joint & Survivor 13                 13% 15% ***

50% Joint & Survivor w/100% Lump Sum 1                   1% 0%

75% Joint & Survivor 3                   3% 0%

75% Joint & Survivor w/100% Lump Sum 1                   1% 0%

100% Joint & Survivor 24                 24% 30%

100% Joint & Survivor w/100% Lump Sum 3                   3% 0%

Total 101               100% 100%

*      Before 6/1/2012 the normal form was 60‐month certain; after 6/1/2012 it is life annuity only.

**   18% of participants elect some form of certain and continuous option. The average

certain period is 120 months.

*** Includes pop‐up feature for those retiring on or after January 1, 1996.

N:\1080\2017\Benefit Suspensions\Asmp ‐ Marriage & FOP\[IW 16 Retirees Over 10 Years_received 5.24.17 ‐ CSH analysis v2.xlsx]Exhibit

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER

 IRONWORKERS LOCAL UNION 16 PENSION FUND

 EIN/PN: 52-6148924 / 001

IW16-0109
Ironworkers Local 16 Pension Plan

Exhibit 6.03‐5: Gain Loss Analysis

Actuarial Accrued Liab G/(L)

Year Ret Mort* Other** Total

2007 2.2% ‐3.1% ‐0.9%

2008 0.6% ‐2.1% ‐1.5%

2009        4.2%*** ‐4.0% 0.2%

2010 1.0% 0.0% 1.0%

2011 1.4% ‐1.0% 0.4%

2012 0.8% ‐1.7% ‐0.9%

2013 ‐0.2% ‐0.5% ‐0.7%

2014 1.0% ‐0.5% 0.5%

2015 0.4% ‐0.7% ‐0.3%

2016 ‐0.1% 0.0% ‐0.1%

Note: Healthy mortality rates over the period shown above are based on the 1983 gender‐distinct GAM table.

* Represents the actuarial gain/(loss) for healthy retirees and survivors due to mortality experience as

   well as due to effects resulting from data corrections, if any.

** Equal to total gain/(loss) less retiree mortality gain/(loss).

*** Gain distorted by data corrections.

N:\1080\2017\Benefit Suspensions\Asmp ‐ Mortality\[Gain Loss and Death Experience v2.xlsx]Gain Loss

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER

 IRONWORKERS LOCAL UNION 16 PENSION FUND

 EIN/PN: 52-6148924 / 001

IW16-0110
Ironworkers Local 16 Pension Plan

Exhibit 6.03‐6: Retirement experience for the period 1/1/2012 through 12/31/2016

Count of Percent of

Total Count of Terminated Percent of Terminated

Total Terminated Active Vested Actives Vesteds

Age Active Vested to Retired to Retired Retiring Retiring

44 0 0 0 0 0% 0%

45 0 0 0 0 0% 0%

46 3 0 0 0 0% 0%

47 6 0 0 0 0% 0%

48 6 0 2 0 33% 0%

49 4 0 2 0 50% 0%

50 3 0 0 0 0% 0%

51 5 0 0 0 0% 0%

52 5 0 0 0 0% 0%

53 5 0 1 0 20% 0%

54 7 0 1 0 14% 0%

55 17 53 1 1 6% 2%

56 28 55 2 3 7% 5%

57 21 46 1 4 5% 9%

58 19 48 3 1 16% 2%

59 11 39 1 2 9% 5%

60 8 37 2 3 25% 8%

61 6 31 1 1 17% 3%

62 5 28 2 3 40% 11%

63 5 26 0 4 0% 15%

64 6 19 3 0 50% 0%

65 5 16 3 5 60% 31%

66 2 12 1 6 50% 50%

67 1 5 0 0 0% 0%

68 2 3 2 0 100% 0%

69 0 2 0 0 0% 0%

70 0 4 0 0 0% 0%

Note: Counts above include only retirement‐eligible participants

N:\1080\2017\Benefit Suspensions\Asmp ‐ Retirement\[IW16 ‐ Experience rates for benefit susp application v3.xlsx]Exhibit

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER

 IRONWORKERS LOCAL UNION 16 PENSION FUND

 EIN/PN: 52-6148924 / 001

IW16-0111
Ironworkers Local 16 Pension Plan

Exhibit 6.03‐7: 5% Employers

Average A

Number of Contribution Total Number of Con

Employer CBUs Rate Contributions Employer CBUs 

2009 2013

A C Dellovade Inc 41,961 $ 5.46 228,998 BSE Erectors 82,383 $ 

ACM Erectors 57,746 $ 5.37 310,160 Genesis Steel Service 51,558 $ 

American Bridge 47,580 $ 5.34 254,050 Kiewit Infrastructure 32,403 $ C. A. Murren & Sons Mid‐Atlantic 52,123 $ 5.27 274,639 Stone & Webster Construction 21,142 $ 

Washington Group Intl 106,203 $ 5.24 556,944 Whiting‐Turner 38,907 $ 

Whiting‐Turner 73,140 $ 5.40 395,174

2010 2014

ACM Erectors 35,440 $ 6.41 227,239 BSE Erectors 45,896 $ 

Genesis Steel Service 35,893 $ 6.53 234,277 Genesis Steel Service 62,421 $ 

Quality Industrial Contracting 34,114 $ 6.36 217,083 Kiewit Infrastructure 49,631 $ 

TSI Exterior Wall Systems 31,961 $ 6.35 202,820 Stone & Webster Construction 24,575 $ 

Whiting‐Turner 55,973 $ 6.53 365,736 Whiting‐Turner 41,976 $ 

2011 2015

ACM Erectors 45,125 $ 7.10 320,551 American Ironworks 19,355 $ 

Genesis Steel Service 34,808 $ 7.10 247,015 BSE Erectors 14,310 $ 

Stone & Webster Construction 69,821 $ 7.04 491,375 Kiewit Infrastructure 22,589 $ 

TSI Exterior Wall Systems 21,332 $ 7.12 151,981 Stone & Webster Construction 32,120 $ 

Whiting‐Turner 44,472 $ 7.10 315,836 Tuscarora Rigging Inc 23,136 $ 

UCR 19,937 $ 

2012 2016

ACM Erectors 75,834 $ 7.96 603,408 Ashlar Pond 24,077 $ 

Genesis Steel Service 23,432 $ 8.06 188,829 Pioneer Cladding 23,406 $ 

Quality Industrial Contracting 20,888 $ 7.68 160,419 TSI Exterior Wall Systems 30,796 $ Whiting‐Turner 42,063 $ 7.96 334,902 Tuscarora Rigging Inc 36,655 $ 

UCR 21,734 $ 

N \1080\2017\Benefit Suspensions\Asmp ‐ Hours\[16_All_History_Pension_11.20.2017 ‐ CSH analysis v2.xlsx]5% ERs ‐ Sch R ‐ exhibit

APPLICATION FOR APPROVAL OF A PROPOSED SUSPENSION OF BENEFITS UNDER IRONWORKERS LOCAL UNION 16 PENSION FUND EIN/PN: 52-6148924 / 001