DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C.

June 8, 2018

Mr. Paul Carr, Chairman 

Board of Trustees of the Alaska Ironworkers Pension Plan 

PO Box 93870

Anchorage, AK 99509

Re: Alaska Ironworkers Pension Plan Application for Reduction of Benefits

Dear Mr. Carr:

On May 3, 2018, you were notified that the Secretary of the Treasury (Treasury), in consultation 

with the Secretary of Labor (DOL) and the Pension Benefit Guaranty Corporation (PBGC), had

reviewed your application (Application) for a reduction in benefits, which was submitted on 

December 19, 2017, and determined that the Application satisfied the requirements of 

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

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

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

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

reject the proposed benefit reduction. 

The voting period began on May 11, 2018 and ended on June 2, 2018. The Plan identified 824

participants and beneficiaries as eligible to vote. Of the voters identified by the Plan who 

received a ballot, 142 (or 17.25% of all eligible voters) voted to reject the benefit reduction, 175

voted to approve the benefit reduction, and 507 did not return a ballot. Because a majority of 

voters identified as eligible by the Plan did not vote to reject the benefit reduction, the benefit 

reduction is permitted to go into effect. Treasury, in consultation with DOL and PBGC, has 

issued a final authorization to reduce benefits under the Plan as described in the Application, 

effective July 1, 2018, subject to the conditions described below.

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

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

reduction goes into effect, the plan sponsor of the Plan must make an annual determination that, 

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

unless a benefit reduction continues. The Plan must maintain a written record of these annual 

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

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

be made available to participants and beneficiaries. If the Plan fails to satisfy the annual plan 

sponsor determination requirement for a plan year (including maintaining the written record), 
Mr. Paul Carr, Chairman 

Board of Trustees, Alaska Ironworkers Pension Plan 

June 8, 2018

Page 2

then the reduction of benefits will expire as of the first day of the following plan year.1 

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

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

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

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

Sincerely, 

 

Sam Alberts

MPRA Special Master

 1 26 C.F.R. § 1.432(e)(9)-1(c)(5).