067
068
069
070
071
072
073
074
Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

EIN /PN: 13-6043977 /001 

EXHIBIT 9 

DEMONSTRATION THAT PROPOSED 

SUSPENSION IS DISTRIBUTED 

EQUITABLY 

075
Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

EIN /PN: 13-6043977 /001

MID-JERSEY TRUCKING INDUSTRY 

AND LOCAL NO. 701 PENSION FUND 

APPLICATION FOR BENEFIT 

SUSPENSIONS 

Information Required by Section 4.04 of 

Revenue Procedure 2017-43 

076
Demonstration that Proposed Benefit 

Suspension Distributed Equitably 

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

EIN /PN: 13-6043977 /001

The proposed suspension is equitably distributed across the participant and beneficiary population 

taking into account the statutory factors listed in Treasury Regulation 1.432(e)(9)-1(d)(6)(ii)(B). 

The proposed suspension provides a different post-suspension formula for Active Participants and 

Non-Active Participants. Active Participants for this purpose are those: (1) who were not in pay 

status as of January 1, 2018, (2) who earned at least 1 Pension Credit during the 2017 calendar year, 

and (3) whose last Contributing Employer had not withdrawn from the Fund as of December 31, 

2017. All other participants and beneficiaries are considered Non-Active Participants. Because of 

the nature of the suspension formula, the same percentage of benefit will not be suspended for each 

participant or beneficiary. 

The proposed benefit suspension for Active Participants will be calculated as follows:

(1) take the difference between (a) the monthly accrued benefit earned through December 31, 

2017, and (b) Pension Credits earned through December 31, 2017 times $17.50, not less 

than $0; and 

(2) apply the necessary adjustments for early commencement and payment forms. 

(3) The proposed benefit suspension is subject to the limitations described in Code Sections 

432(e)(9)(D)(i), (ii) and (iii). 

The proposed benefit suspension for Non-Active Participants will be calculated as follows:

(1) take the difference between (a) the monthly benefit payable at normal retirement age, and 

(b) Pension Credits earned by the participant times $12.75, not less than $0; and 

(2) apply the necessary adjustments for early or delayed commencement, payment forms and 

vesting percentage. 

(3) The proposed benefit suspension is subject to the limitations described in Code Sections 

432(e)(9)(D)(i), (ii) and (iii). 

The primary statutory factors the Trustees took into account in designing the proposed benefit 

suspensions are those listed in Code Section 432(e)(9)(D)(vi)(III), (VII), (IX) and (X) because they 

have the greatest impact on the Plan liabilities. Consistent with Code Section 432(e)(9)(D)(vi)(X) 

and Treasury Regulation 1.432(e)(9)-1(d)(6)(ii)(B)(10), the Trustees decided to treat Active 

Participants more favorably than Non-Active Participants to discourage Active Participants from 

withdrawing their support for the Plan, which could accelerate employer withdrawals, further 

damaging the Plan’s funding status. Furthermore, the Trustees feel that the Active Participants have 

077
Demonstration that Proposed Benefit 

Suspension Distributed Equitably (cont’d) 

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

EIN /PN: 13-6043977 /001

borne the heavier burden of trying to fix this Plan’s funding issues over the last 10 years when their

contributions increased and their future accruals were cut in half. 

Code Section 432(e)(9)(D)(vi)(III), (VII) and (IX) were also primary factors the Trustees 

considered because they felt that the benefit accruals earned in the late 1990s and early 2000s were 

artificially high due to the need at the time to stay below the maximum tax deductible contribution 

limit, ensuring the tax deductibility of employers’ contributions that they were contractually bound 

to make. The Trustees felt that raising the benefit accrual rate to $29.17 per credit in those years 

(i.e., $350 per month per year of service) to make the contributions tax-deductible, followed by the 

investment environment turning negative after the “dot-com” bubble in 2001-2002 and worsened 

after the 2008 market melt-down were the primary factors to the erosion of the Plan’s funding status. 

The Trustees believe that all participants whose benefits are suspended will still have a substantial 

pension from this Plan and the suspended benefits at normal retirement will be generally more than 

four times what they would get under the PBGC maximum guarantee. For example, a Non-Active 

Participant whose benefit is suspended will still have a normal retirement benefit of approximately 

$3,000 per month with 20 years of service and roughly $4,500 per month with 30 years of service 

under the Plan. 

The Trustees have identified five different groups within each of the Active Participant and NonActive Participant categories to ensure that the suspensions are equitably allocated among 

participants in each group. See Treasury Regulations 1.432(e)(9)-1(d)(6)(iv) and (v). Active 

Participants hired after June 30, 2009, when benefit accrual levels were reduced 50% by the 

Trustees, will have no benefit suspension. All other Active Participants (Group 10) may experience 

some benefit suspensions because the Trustees’ believe that some benefit levels before July 2009 

were too high and, therefore, Active Participants hired before then with those high benefit rates 

should incur benefit suspensions. 

Based on the statutory factors listed in Treasury Regulation 1.432(e)(9)-1(d)(6)(ii)(B), the groups 

are as follows: 

• Group 1: Non-Active Participants with an accrual rate less than $12.75 per Pension 

Credit. 

• Group 2: Non-Active Participants with dates of termination in 1997 or 1998, with an 

accrual rate of $14.58 per Pension Credit. 

• Group 3: Non-Active Participants with dates of termination in 1998 or 1999, with an 

accrual rate of $22.92 per Pension Credit. 

• Group 4: Non-Active Participants with dates of termination in 1999, 2000 or 2001, with an 

accrual rate of $29.17 per Pension Credit. 

078
Demonstration that Proposed Benefit 

Suspension Distributed Equitably (cont’d) 

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund 

EIN /PN: 13-6043977 /001

• Group 5: Non-Active Participants who are not in groups 1, 2, 3 or 4. Their accrual rate 

varies for different years of service. 

• Group 6: Active Participants of Acetylene Supply Company who were hired after June 

2009, whose accrual rate was always $5.50 per Pension Credit. 

• Group 7: Active Participants of Southern Wine Spirits NJ who were hired after June 2009, 

whose accrual rate was always $9.38 per Pension Credit. 

• Group 8: Active Participants of YRC Worldwide, Inc. who were hired after May 2011, 

whose accrual rate was always $2.865 per Pension Credit. 

• Group 9: Active Participants of ABF Freight System, Inc., H. M. Royal, Local Union 701, 

and Mid-Jersey Trucking Industry and Local 701 Welfare Fund who were hired after June 

2009, whose accrual rate was always $11.46 per Pension Credit. 

• Group 10: All other Active Participants whose accrual rate varies for different years of 

service. 

079
PLAN IN AGGREGATE

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 1,577 $1,778.02 $1,279.23 

Beneficiaries 275 $1,028.91 $796.17 

Alternate Payees1

 35 $1,465.78 $823.75 

Total 1,887 

Reduction Count Percentage of the Total

No reduction 1,346 71.33%

0.00-10.00% 94 4.98%

10.01-20.00% 69 3.66%

20.01-30.00% 58 3.07%

30.01-40.00% 41 2.17%

40.01-50.00% 71 3.76%

50.01-60.00% 206 10.92%

60.01-70.00% 2 0.11%

 1,887 

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 108,866,867 

1

 Includes Alternate Payees with Shared Interest QDROs.

2

 The first valuation date after the Suspensions are in effect.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund

EIN /PN: 13-6043977 /001

Demonstration that the Proposed Benefit Suspension is 

Distributed Equitably (cont'd)

The interest rate to calculate the reduction in the present value of the benefits before and after

suspensions is 6.71% for the years thoough 2026 and 7.75% for the years after 2026. For the

complete list of actuarial assumptions please refer to Appendix B of the Application.

080
GROUP 1

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 973 $689.93 $689.93 

Beneficiaries 239 $496.31 $496.31 

Alternate Payees1

 10 $470.22 $470.22 

Total 1,222 

Reduction Count Percentage of Group 1

No reduction 1,222 100.00%

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 0.00 

GROUP 2

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 23 $3,199.77 $2,933.47 

Beneficiaries 2 $2,662.90 $2,545.35 

Alternate Payees1

 0 

Total 25 

Reduction Count Percentage of Group 2

No reduction 2 8.00%

0.00-10.00% 8 32.00%

10.01-20.00% 15 60.00%

 25 

Present Value of the Reduction in Benefits (projected to June 1, 20192

)

 648,741 

1

 Includes Alternate Payees with Shared Interest QDROs.

2

 The first valuation date after the Suspensions are in effect.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund

EIN /PN: 13-6043977 /001

Demonstration that the Proposed Benefit Suspension is 

Distributed Equitably (cont'd)

081
GROUP 3

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 24 $4,187.66 $2,769.50 

Beneficiaries 4 $4,412.56 $2,630.70 

Alternate Payees1

 3 $1,953.40 $1,086.65 

Total 31 

Reduction Count Percentage of Group 3

No reduction 2 6.45%

0.00-10.00% 1 3.23%

10.01-20.00% 0 0.00%

20.01-30.00% 3 9.68%

30.01-40.00% 3 9.68%

40.01-50.00% 22 70.97%

 31 

Present Value of the Reduction in Benefits (projected to June 1, 20192

)

 5,224,952 

GROUP 4 Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 15 $6,748.38 $3,295.24 

Beneficiaries 3 $9,417.74 $5,870.30 

Alternate Payees1

 0 

Total 18 

Reduction Count Percentage of Group 4

No reduction 0 0.00%

0.00-10.00% 0 0.00%

10.01-20.00% 0 0.00%

20.01-30.00% 2 11.11%

30.01-40.00% 1 5.56%

40.01-50.00% 2 11.11%

50.01-60.00% 13 72.22%

 18 

Present Value of the Reduction in Benefits (projected to June 1, 20192

)

 7,727,505 

1

 Includes Alternate Payees with Shared Interest QDROs.

2

 The first valuation date after the Suspensions are in effect.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund

EIN /PN: 13-6043977 /001

Demonstration that the Proposed Benefit Suspension is 

Distributed Equitably (cont'd)

082
GROUP 5

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 331 $4,379.62 $2,415.93 

Beneficiaries 26 $4,340.80 $2,571.60 

Alternate Payees1

 22 $1,851.82 $948.59 

Total 379 

Reduction Count Percentage of Group 5

No reduction 16 4.22%

0.00-10.00% 21 5.54%

10.01-20.00% 30 7.92%

20.01-30.00% 38 10.03%

30.01-40.00% 32 8.44%

40.01-50.00% 47 12.40%

50.01-60.00% 193 50.92%

60.01-70.00% 2 0.53%

 379 

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 91,243,676 

GROUP 6 Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 4 $340.94 $340.94 

Beneficiaries 0 

Alternate Payees 0 

Total 4 

Reduction Count Percentage of Group 6

No reduction 4 100.00%

 4 

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 0.00 

1

 Includes Alternate Payees with Shared Interest QDROs.

2

 The first valuation date after the Suspensions are in effect.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund

EIN /PN: 13-6043977 /001

Demonstration that the Proposed Benefit Suspension is 

Distributed Equitably (cont'd)

083
GROUP 7

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 9 $301.43 $301.43 

Beneficiaries 0 

Alternate Payees 0 

Total 9 

Reduction Count Percentage of Group 7

No reduction 9 100.00%

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 0.00 

GROUP 8

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 30 $102.28 $102.28 

Beneficiaries 0 

Alternate Payees 0 

Total 30 

Reduction Count Percentage of Group 8

No reduction 30 100.00%

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 0.00 

1

 Includes Alternate Payees with Shared Interest QDROs.

2

 The first valuation date after the Suspensions are in effect.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund

EIN /PN: 13-6043977 /001

Demonstration that the Proposed Benefit 

Suspension is Distributed Equitably (cont'd)

084
GROUP 9

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 8 $499.94 $499.94 

Beneficiaries 0 

Alternate Payees 0 

Total 8 

Reduction Count Percentage of Group 9

No reduction 8 100.00%

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 0.00 

GROUP 10

Average Monthly Benefit Average Monthly Benefit

Count Before Suspension After Suspension

Participants 161 $2,464.33 $2,187.01 

Beneficiaries 0 

Alternate Payees1

 0 

Total 161 

Reduction Count Percentage of Group 10

No reduction 53 32.92%

0.00-10.00% 64 39.75%

10.01-20.00% 24 14.91%

20.01-30.00% 15 9.32%

30.01-40.00% 5 3.11%

 161 

Present Value of the Reduction in Benefits (projected to June 1, 20192)

 4,021,993.35 

1

 Includes Alternate Payees with Shared Interest QDROs.

2

 The first valuation date after the Suspensions are in effect.

Mid-Jersey Trucking Industry and Local No. 701 Pension Fund

EIN /PN: 13-6043977 /001

Demonstration that the Proposed Benefit 

Suspension is Distributed Equitably (cont'd)

085
Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN /PN: 13-6043977 /001 

EXHIBIT 10 

List Of Contributing Employers And 

Employee Organizations 

Contributing Employers 

Acetylene Supply Company 

ABF Freight System, Inc. 

Bunzl New Jersey 

GCP Applied Technologies 

H. M. Royal 

Southern Wine Spirits NJ 

YRC Worldwide, Inc. 

Local Union 701 

Mid-Jersey Trucking Industry and Teamsters Local 701 Welfare Fund and affiliated 

organizations 

Employee Organization 

Local No. 701 of the Highway and Local Motor Freight Drivers, Dockmen and Helpers, 

affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and 

Helpers of America 

086
EXHIBIT 11 

TEN-YEAR EXPERIENCE FOR 

CERTAIN CRITICAL ASSUMPTIONS 

087
Ten-year Experience for Certain Critical Assumptions

Total Average Withdrawal Rate of

Plan Year Total Contribution Contribution Liability Return on

Ending Contributions Base Units Rate Payments Plan Assets

5/31/2008 $4,278,537 740,312 5.78 -0.74%

5/31/2009 $4,302,730 690,712 6.23 -18.28%

5/31/2010 $2,901,868 423,499 6.85 15.18%

5/31/2011 $2,468,238 344,068 7.17 $3,894,103 17.36%

5/31/2012 $2,902,648 460,730 6.30 -3.01%

5/31/2013 $2,467,483 450,423 5.48 20.23%

5/31/2014 $2,391,009 434,336 5.50 15.44%

5/31/2015 $2,742,203 480,192 5.71 $12,200 5.03%

5/31/2016 $2,709,220 483,149 5.61 $16,266 -4.76%

5/31/2017 $2,568,773 459,063 5.60 $20,333 13.51%

Mid-Jersey Trucking Industry and Local 701 Pension Fund

EIN /PN: 13-6043977 /001

N:\Fact\Local 701\Suspension application\work\[10 Year Experience.xlsx]10yrexper

Information Required in Sections 5.02 and 6.04 

of Revenue Procedure 2017-43

088
Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN/Plan Number: 13-6043977/001

EXHIBIT 12 

PROPOSED

BALLOT FOR RATIFICATION OF THE 

BENEFIT SUSPENSION PLAN FOR THE 

MID-JERSEY TRUCKING INDUSTRY AND TEAMSTERS 

LOCAL 701 PENSION AND ANNUITY FUND 

[DATE] 

PARTICIPANTS AND BENEFICIARIES: 

The Board of Trustees for the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and 

Annuity Fund (“Fund”) previously sent you a Notice that an Application for Approval of a 

Suspension Plan was filed with the Secretary of Treasury on June 27, 2018. This Notice detailed 

the proposed benefit reductions pursuant to the Multiemployer Pension Reform Act of 2014 

(MPRA) that would take effect on April 1, 2019 if the Application was approved by the U.S. 

Department of Treasury. The Notice explained that if the Fund's application was approved by the 

Department of Treasury, then the Participants and beneficiaries will be asked to vote whether the 

Proposed Suspension Plan should go into effect. On [DATE], the Secretary of Treasury approved 

the Fund's Proposed Suspension Plan. 

THIS BALLOT IS INTENDED TO ASSIST YOU IN MAKING YOUR DECISION WHETHER 

TO VOTE FOR OR AGAINST THE PROPOSED BENEFIT SUSPENSION PLAN. 

This Ballot includes the following important information: 

• DETAILED INFORMATION ON THE PROPOSED SUSPENSION PLAN; 

• FACTORS CONSIDERED BY THE TRUSTEES IN PREPARING THIS SUSPENSION 

PLAN; 

• A STATEMENT FROM THE BOARD OF TRUSTEES IN SUPPORT OF THE 

SUSPENSION PLAN; AND 

• IMPORTANT INFORMATION ON WHAT WILL HAPPEN IF THE SUSPENSION 

PLAN IS REJECTED. 

PROPOSED SUSPENSION PLAN 

The application filed on behalf of the Fund set forth the following Proposed Suspension Plan to be 

effective as of April 1, 2019 and continuing indefinitely thereafter. 

089
PROPOSED BALLOT FOR RATIFICATION OF THE BENEFIT 

SUSPENSION PLAN (Cont’d) 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN/Plan Number: 13-6043977/001

The Trustees propose to change the benefit formula for Active Participants and Non-Active 

Participants affected by the suspension of benefits. Active Participants for this purpose are defined 

as those: a) who were not receiving a monthly benefit under the Plan as of January 1, 2018, b) who 

earned at least 1 Pension Credit during the 2017 calendar year, and c) whose last Contributing 

Employer had not withdrawn from the Fund as of December 31, 2017. All other Participants are 

considered Non-Active Participants. Please note that the following formula will only take effect 

if it results in a lower benefit for you (i.e., if your benefit is reduced by the suspension of benefits): 

• Active Participants affected by the suspension will have earned a monthly benefit on April 

1, 2019 equal to $17.50 times the number of Pension Credits earned for all service under 

the Plan through December 31, 2017, plus their current accrual rate times the number of 

Pension Credits earned after December 31, 2017. 

 

• Non-Active Participants affected by the suspension will have earned a monthly benefit on 

and after April 1, 2019 equal to $12.75 times the number of Pensions Credits earned for all 

service under the Plan times the adjustments for early or late commencement, payment 

form and vesting percentage. 

The Fund actuary has determined that this change in the benefit formula would result in a benefit 

reduction for approximately 28.8% of the Participants and beneficiaries in the Fund, and no benefit 

reduction for approximately 71.2% of Participants and beneficiaries. The average monthly benefit 

reduction would be approximately 36.3% for affected Participants and beneficiaries, with 

approximately 66% as the largest reduction in monthly benefits. 

The Proposed Suspension Plan recognizes that certain groups are exempted by MPRA from these 

benefit reductions. These groups are as follows: 

• All Participants who were awarded a disability pension; 

• All Participants and beneficiaries who are at least age 80 as of April 30, 2019; and 

• All Participants or beneficiaries who are receiving or would receive a benefit that is less 

than 110% of the PBGC guarantee in the absence of these changes. 

Additionally, the Proposed Suspension Plan would limit the application of these proposed 

reductions for any Participant, beneficiary or Alternate Payee who is between age 75 and 80 as of 

April 30, 2019. These Limited Suspension Participants would have their accrued benefit or benefit 

in pay status recalculated under the change described above. However, the Fund would then 

determine 1/60th of the difference between the current benefit and the reduced benefit. This factor 

would be multiplied by the number of months the Limited Suspension Participant is over age 75 

as April 30, 2019 to determine the increase factor. The new benefit under the Proposed Suspension 

Plan for this Limited Suspension Participant group would be the sum of the reduced benefit plus 

the increase factor. 

090
PROPOSED BALLOT FOR RATIFICATION OF THE BENEFIT 

SUSPENSION PLAN (Cont’d) 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN/Plan Number: 13-6043977/001

FACTORS CONSIDERED BY THE TRUSTEES IN MAKING THIS SUSPENSION PLAN 

MPRA requires that any reduction of benefits under a suspension plan be distributed fairly among 

the various categories or groups of Participants and beneficiaries under the Plan. In deciding 

whether the proposed reduction would be distributed fairly under the Plan, the Board of Trustees 

took into account the following factors: 

(1) Age and life expectancy of the Participants in the Plan; 

(2) The length of time the Participants are in pay status; 

(3) The amount of the benefits being provided by the Plan; 

(4) The extent to which the benefits provided contain subsidies; 

(5) The history of benefit increases and reductions; 

(6) Discrepancies between the benefits provided to active and retired Participants; and 

(7) The extent to which the current active Participants are reasonably likely to withdraw 

support for the Plan that will cause employer withdrawals and increase the risk of 

additional benefit reductions for all Participants and beneficiaries in this Plan. 

BOARD OF TRUSTEES' STATEMENT IN SUPPORT OF THE PROPOSED SUSPENSION 

PLAN 

The Board of Trustees is required to manage and preserve the long-term financial viability of the 

Fund to protect the retirement security of retirees, beneficiaries, terminated vested Participants and

active Participants. As a result, we continually monitor the state of the Fund and where the Fund 

is headed based on future projections. We regularly meet with our professional advisors, including 

investment advisors, actuaries and attorneys, to review the Fund's status and discuss possible 

options to strengthen the Fund and protect your benefits for the future. 

This year the Fund was certified by the Fund’s Actuary to be in Critical and Declining Status, 

primarily because of a rapidly declining work force in the long-distance trucking industry. As a 

result, the Fund’s Board of Trustees is allowed to develop a relief plan that includes a reduction in 

benefits already earned in order to save the Fund’s ability to continue paying benefits in the future. 

The Board of Trustees considered reasonable measures for emerging from Critical and Declining 

Status by May 31, 2030, based on projections by the Fund’s actuary based on reasonable actuarial 

assumptions. For instance, the Fund’s Actuary determined that, with no changes to the Fund’s 

current plan of benefits, for the Fund to emerge from Critical and Declining Status by May 31, 

2030, employer contribution rates would have to be increased by 45% annually for each of the 

next ten years, ultimately increasing to a rate that is more than 40 times the current contribution 

rate. By comparison, the Fund’s Actuary has determined that, even with a 50% reduction in future 

benefit accruals for all active Participants and the elimination of all “adjustable benefits,” as 

defined in the Pension Protection Act, employer contribution rates would still have to be increased 

091
PROPOSED BALLOT FOR RATIFICATION OF THE BENEFIT 

SUSPENSION PLAN (Cont’d) 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN/Plan Number: 13-6043977/001

by approximately 44% per year for each of the next ten years for the Fund to emerge from Critical 

and Declining Status by May 31, 2030. 

The Board determined that these and any similar measures were not reasonable. Specifically, the 

Board determined that such measures are unlikely to be agreed upon by the bargaining parties (the 

Union and employers), and therefore the likely outcome of collective bargaining over these types 

of alternatives would be negotiated withdrawals from the Fund. In such case, it is possible that the 

Plan could become insolvent during the Plan Year ending in 2030. 

It is important to understand that if the Plan were to become insolvent, the benefits of most, if not 

all Participants and beneficiaries would be reduced to the Pension Benefit Guaranty Corporation 

(PBGC) guarantee levels. Thus, if the Proposed Suspension Plan is not approved, larger cuts will 

be necessary to a much larger percentage of the Fund’s Participants. If the benefits are reduced to 

the PBGC guarantee levels, the benefits would be reduced for approximately 95.7% of the 

Participants and beneficiaries in the Fund, with no benefit reduction for approximately 4.3% of 

Participants and beneficiaries only. The average monthly benefit reduction would be 

approximately 46% for affected Participants and beneficiaries, with approximately 90% as the 

largest reduction in monthly benefits. 

 

As noted above, the proposed suspension plan will affect only 28.8% of Fund Participants. The 

majority of Participants, approximately 71.2%, will continue to receive the same monthly benefit 

they are currently receiving, well into the future. 

We are taking action now because, the longer we wait, the larger that benefit reductions will have 

to be and an increasing number of Participants will be affected. If we wait too long, no suspension 

plan will be able to save the Fund from running out of money. If that happens, the PBGC will be 

responsible for funding your pension, and your payments will be reduced significantly more than 

under our proposed changes. Additionally, in the event the Fund does become insolvent, the PBGC 

does not follow the same rules with regard to which Participants will have their benefit reduced. 

The PBGC guaranteed benefit levels will apply regardless of your age or status as a disabled 

Participant. 

We realize that if you are within the groups of Participants or Beneficiaries that will be affected 

by these changes, that these are big changes and may be expected to impact you and your family. 

It has come to that point where we have to take drastic steps to preserve this Plan for all 

Participants. We have tried to create a series of benefit reductions that are equitably distributed 

between all of the groups of Participants and Beneficiaries in this Fund. However, there are certain 

groups that by law cannot be impacted, including Participants over age 80 and those who retire on 

a disability pension. The only reason we are attempting to make these changes to the benefits of 

the remaining Participants and Beneficiaries is to prevent the Fund from becoming insolvent, and 

your pension payments from being cut even more at insolvency. Our Proposed Suspension Plan is 

designed to keep the Fund solvent for the future, and provide you with the greatest amount of 

retirement income possible. 

092
PROPOSED BALLOT FOR RATIFICATION OF THE BENEFIT 

SUSPENSION PLAN (Cont’d) 

Mid-Jersey Trucking Industry and Local 701 Pension Fund 

EIN/Plan Number: 13-6043977/001

WHAT WOULD HAPPEN IF THE PROPOSED SUSPENSION PLAN IS REJECTED? 

The Board of Trustees, in consultation with the Fund's Actuary, has determined that the Fund will 

become insolvent in the Plan Year ending May 31, 2030 if the Proposed Suspension Plan is not 

implemented on April 1, 2019. This means that during the Plan Year beginning June 1, 2029, the 

Fund will no longer have enough money to make all monthly pension benefit payments when due. 

This projected insolvency date is based on assumptions that are reasonably expected to occur in 

the future, but are not guaranteed. For example, if the investment markets are better than expected 

and the Fund earns more than a 7.28% investment return for several years, the insolvency date 

may be postponed beyond 2030. The opposite is true if the Fund's investment returns are less than 

7.28% in the future. 

Insolvency of the Fund will likely result in a monthly benefit lower than benefits paid under the 

reductions in the Proposed Suspension Plan. If the Fund becomes insolvent, the PBGC will 

provide the Fund with financial assistance to continue paying a portion of your monthly retirement 

benefit. By law, this is capped as a maximum guaranteed amount that is significantly less than the 

current benefit for most Participants in this Fund. For example, a Participant with 20 years of 

service and a $7,000 monthly benefit under the Plan, would receive $715 a month from the PBGC. 

Additionally, the PBGC does not take into account your age or status as a disabled Participant in 

making these adjustments to your benefits. 

THE PENSION FUND IS PROJECTED TO AVOID INSOLVENCY IF THE SUSPENSION 

PLAN IS IMPLEMENTED 

The Fund's Actuary has certified that the Fund is projected to avoid insolvency at least through the 

Plan Year ending in 2049 if the benefit reductions under the Proposed Suspension Plan are 

implemented. 

 

SECRETARY OF TREASURY'S APPROVAL OF THE PROPOSED SUSPENSION PLAN 

This Proposed Suspension Plan was reviewed and approved by the Secretary of Treasury, in 

consultation with the PBGC and the Secretary of Labor. 

093
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EXHIBIT 17 

PLAN DOCUMENTS 

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