Central States, Southeast and Southwest Areas Pension Plan 

Item #7

7.0 

Description of Item 

The plan actuary’s certification that the plan is projected to avoid insolvency if the suspension takes effect 

and the supporting illustrations, including: 

• the year-by-year projections demonstrating projected solvency during the relevant period and 

• separately identifying the available resources (and the market value of assets and changes in cash 

flow) during each of those years. 

See section 3.02. 

The information is provided in document number 7.1 (Actuarial Certification of Plan Solvency under 

ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) of Proposed Benefit Suspensions as of 

July 1, 2016). 

Document number 7.2 (Actuarial Valuation and Review as of January 1, 2015) is the January 1, 2015 

Actuarial Valuation Certificate document referenced in document number 7.1.
Central States, Southeast and 

Southwest Areas Pension Plan Actuarial Certification of Plan Solvency under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) of Proposed Benefit Suspensions as of July 1, 2016 . Copyright © 2015 by The Segal Group, Inc. All rights reserved. 

7.1.1
333 WEST 34TH STREET, NEW YORK, NY 10001-2402 

T 212.251.5000 www.segalco.com 

September 18, 2015 Board of Trustees Central States, Southeast and Southwest Areas Pension Plan 9377 West Higgins Road Rosemont, Illinois 60018-4938 Dear Trustees: As requested by the Trustees and required by ERISA Section 305(e)(9)(C)(i) and Internal Revenue 432(e)(9)(C)(i) (taking into account temporary regulation §1.432(e)(9)-1T, proposed regulation §1Procedure 2015-34), we have completed an actuarial analysis of the Trustees’ proposed benefit susSection 305 and IRC Section 432 that are permitted because of the Plan’s critical and declining sta

we project that the proposed suspensions of benefits are reasonably estimated to enable the Plan to meaning of ERISA Section 4245 and IRC Section 418E, assuming the suspensions of benefits continbenefit accrual reduction and other plan changes become effective upon the proposed July 1, 2016 

accordance with the terms and effective dates summarized in this certification. In addition, this anarequirements under ERISA Section 305(e)(9)(D)(iv) and IRC Section 432(e)(9)(D)(iv) (taking into aregulation §1.432(e)(9)-1T, proposed regulation §1.432(e)(9)-1 and Revenue Procedure 2015-34) 

The attached exhibits outline the projections performed in accordance with the statute, the publishethe assumptions used in the projections, and a summary of the proposed benefit suspensions. These prepared based on the Actuarial Valuation as of January 1, 2015 and the Actuarial Certification of 

January 1, 2015 under IRC Section 432 in accordance with generally accepted actuarial principles current understanding of the law. The actuarial calculations were completed under the supervision Daniel V. Ciner, MAAA, EA. 

7.1.2
Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide lega

interpretation on which the certification is based reflects Segal’s understanding as an actuarial firmthe statute and the significance of its ramifications, Segal recommends that the Board of Trustees cwhen making any decisions regarding compliance with ERISA, the Internal Revenue Code, and relitemporary IRS regulations in the absence of final regulations. Sincerely, Segal Consulting, a Member of The Segal Group By:  Steven M. Rabinowitz, FSA, MAAA, FCA, EA Daniel V. Ciner, MAAA, E Senior Vice President and Actuary Senior Vice President and cc: Mr. Thomas Nyhan  Mr. Mark Angerame  Gary Ford, Esq. 5526211v5/10346.001

7.1.3 Redacted by the US Department of Treasury Redacted by the US Depart

of Treasury
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

September 18, 2015 

ACTUARIAL SOLVENCY CERTIFICATION 

UNDER ERISA SECTION 305(E)(9)(C)(I) AND IRC SECTION 432(E)(9)(C)(I) 

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”), has prepared an actuarial solvenunder ERISA Section 305(e)(9)(C)(i) and Internal Revenue Code Section 432(e)(9)(C)(i), taking into account temporar§1.432(e)(9)-1T, proposed regulation §1.432(e)(9)-1 and Revenue Procedure 2015-34, for the Central States, Southeas

Areas Pension Plan based on participant data as of December 31, 2014 and asset values as of June 30, 2015 in accordanaccepted actuarial principles and practices. It has been prepared at the request of the Board of Trustees to assist in meet

compliance requirements under federal law. This certification may not otherwise be copied or reproduced in any form w

of the Board of Trustees and may only be provided to other parties in its entirety. Based on the items discussed below, the proposed benefit suspensions are reasonably estimated to enable the Plan to avwithin the meaning of ERISA Section 4245, assuming the suspensions of benefits continue indefinitely and both the bereduction and other plan changes become effective upon the proposed July 1, 2016 suspension effective date in accordaand effective dates summarized in this certification. In addition, this analysis demonstrates that the requirements under 305(e)(9)(D)(iv) and IRC Section 432(e)(9)(D)(iv) (taking into account temporary regulation §1.432(e)(9)-1T, propose§1.432(e)(9)-1 and Revenue Procedure 2015-34) have been satisfied. Note that, as required by law, this certification is only intended to demonstrate that the proposed Plan changes are reasobe sufficient to avoid insolvency within the meaning of ERISA Section 4245 and IRC Section 418E. The measurementactuarial certification are not applicable for other purposes. Future actuarial measurements may differ significantly from measurements presented in this report due to such factors as the following: plan experience differing from that anticipaeconomic or demographic assumptions; changes in economic or demographic assumptions; differences in statutory intedifferences in methodology, changes in plan provisions and changes in applicable law. Due to the legal requirements foit does not include an analysis of such future measurements. This certification is based on the January 1, 2015 actuarial valuation, dated August 14, 2015, as well as the Actuarial CStatus as of January 1, 2015 under IRC Section 432. This certification reflects the changes in the law made by the Mult

Reform Act of 2014 (MPRA), taking into account temporary regulation §1.432(e)(9)-1T, proposed regulation §1.432(e

Procedure 2015-34. As required by proposed IRS regulations, assets were updated to June 30, 2015 based on actual exp

assumptions required for the projections (including those required under MPRA and regulations thereunder), and sourcinformation used are summarized in Exhibit VI. A summary of the proposed benefit suspensions is included in Exhibit 

7.1.4
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interprethis certification is based reflect Segal’s understanding as an actuarial firm. Based on discussions with the Plan’s legal understanding that the proposed benefit suspensions satisfy the requirements for such as set forth in MPRA. This certification was based on the assumption that the Plan was qualified as a multiemployer plan for the year. I am a member of the American Academy of Actuaries and I meet the Qualification Standards of the American Academrender the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certification accurate. The projected future employment and contribution levels (including projected withdrawal liability payments) information provided by the plan sponsor. In my opinion, the projections are based on reasonable actuarial estimates, amethods that (other than projected future employment and contribution information provided by the plan sponsor) offeof anticipated experience under the Plan. 

_______ 

Daniel V. Ciner, MAAA, EA 

Senior Vice President and Actuary Enrolled Actuary No. 14-05773 

7.1.5 Redacted by the US Department of Treasury
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

 Certificate Contents 

EXHIBIT I Summary of Key Information and Results EXHIBIT II Development of Projected 2015 Assets EXHIBIT III Deterministic Projection of Proposed Suspension EXHIBIT IV Deterministic Projection of 5% Smaller Suspension EXHIBIT V Stochastic Projection of Proposed Suspension EXHIBIT VI Projected Total Contribution Base Units and Average Contribution Rates EXHIBIT VII Actuarial Assumptions and Methodology EXHIBIT VIII Proposed Benefit Suspensions 

7.1.6
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT I Summary of Key Information and Results A summary of key information and of the results of the different tests (and subtests) required for the certification are shA. Key Information 

1. Proposed effective date of suspension of benefits 2. End of extended period 3. Projected funded percentage (under IRC Section 432(j)(2)) at end of extended period 4. Probability the Plan will avoid insolvency through the extended period 5. Number of Plan participants (based on January 1, 2015 actuarial valuation) 6. Is the proposed suspension in combination with a partition? * See Exhibit VI of report titled: Application under ERISA Section 305(e)(9) and IRC Section 432(e)(9) – Additional Information

B. Limitation on aggregate size of suspension 

1. The proposed suspension is reasonably estimated to enable the Plan to avoid insolvency 

a. The solvency ratio is projected on a deterministic basis to be at least 1.0 for each plan year throughout the extended period. (See Eb. The Plan’s projected funded percentage at the end of the extended period does not exceed 100%, but the Plan’s solvency ratio and 

are not projected to decrease at any time during the last five plan years of the extended period. (See Exhibit III) 

c. Based on stochastic projections, the probability that the Plan will avoid insolvency throughout the extended period is more than 50Because of the results summarized in B.1, the proposed suspension of benefits satisfies the requirement that it be reasonably estPlan to avoid insolvency. 

2. The proposed suspension does not materially exceed the level that is necessary to avoid insolvency, as required under IRC Section 432

a. The Plan would fail one or more of the tests in B.1 if the dollar amount of the proposed benefits suspension for each participant an

smaller. (see Exhibit IV) 

b. The PBGC did not issue an order partitioning the Plan. Because of the results in B.2, the proposed suspension of benefits satisfies the requirements that the proposed suspension not mthat is necessary to avoid insolvency. 

The proposed benefit suspension satisfies the limitation on aggregate size of suspension.

7.1.7
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT II Development of Projected 2015 AssetsThe actual change in Market Value of Assets from January 1, 2015 through June 30, 2015, as provided by the Fund OfStates Funds Financial and Analytical Information as of June 30, 2015 report, and the projected Market Value of AssetDecember 31, 2015 are shown below. 

Year Beginning January 1, 2015 

From January 1, 

2015 Through 

June 30, 2015 

Projected from 

July 1, 2015 Through 

December 31, 2015 

Total for 

Plan Year 

1. Market Value at beginning of period $17,863,105,558 $17,330,922,000 $17,863,105,558 

2. Contributions 290,988,000 294,701,791 585,689,791 3. Withdrawal liability payments 264,988,000 133,712,000 398,700,000 

4. Benefit payments 1,406,943,000 1,427,786,254 2,834,729,254 

5. Administrative expenses 25,576,000 23,524,000 49,100,000 6. Investment earnings 344,359,442 619,327,802 963,687,244 

7. Market Value at end of period: 

(1)+(2)+(3)-(4)-(5)+(6) $17,330,922,000 $16,927,353,339 $16,927,353,339 

7.1.8
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT III Deterministic Projection of Proposed Suspension 

The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through 2064. 

Year Beginning January 1 

2016 2017 2018 2019 

1. Market Value at beginning of year $16,927,353,339 $16,331,962,529 $16,138,746,117 $15,933,085,955 2. Contributions 571,437,939 565,171,453 563,691,836 562,913,672 

3. Withdrawal liability payments 128,698,507 137,397,014 137,397,014 137,397,014 

4. Benefit payments 2,452,281,202 2,023,127,151 2,018,748,103 2,017,650,584 5. Administrative expenses 45,390,000 46,297,800 47,223,756 48,168,231 

6. Investment earnings 1,202,143,946 1,173,640,072 1,159,222,847 1,143,774,892 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $16,331,962,529 $16,138,746,117 $15,933,085,955 $15,711,352,718 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $18,784,243,731 $18,161,873,268 $17,951,834,058 $17,729,003,302 

9. Solvency ratio: (8) ÷ (4) 7.660 8.977 8.893 8.787 

2021 2022 2023 2024 

1. Market Value at beginning of year $15,428,129,308 $15,118,737,641 $14,784,282,024 $14,421,684,389 2. Contributions 560,315,592 559,816,067 559,425,993 557,791,789 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 4. Benefit payments 2,021,093,670 2,021,384,223 2,022,919,141 2,024,141,778 5. Administrative expenses 50,114,228 51,116,512 52,138,842 53,181,619 

6. Investment earnings 1,104,103,625 1,080,832,037 1,055,637,341 1,028,296,281 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $15,118,737,641 $14,784,282,024 $14,421,684,389 $14,027,846,076 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $17,139,831,311 $16,805,666,247 $16,444,603,529 $16,051,987,855 

9. Solvency ratio: (8) ÷ (4) 8.480 8.314 8.129 7.930 

7.1.9
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT III (continued) Deterministic Projection of Proposed Suspension 

Year Beginning January 1 

2026 2027 2028 2029 

1. Market Value at beginning of year $13,604,182,028 $13,157,663,999 $12,692,807,764 $12,209,386,774 2. Contributions 560,977,991 566,689,834 572,714,953 578,724,941 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 4. Benefit payments 2,016,858,517 2,006,860,725 1,996,046,783 1,981,376,735 5. Administrative expenses 55,330,157 56,436,760 57,565,495 58,716,805 

6. Investment earnings 967,295,640 934,354,402 900,079,321 864,555,074 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $13,157,663,999 $12,692,807,764 $12,209,386,774 $11,709,970,263 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $15,174,522,516 $14,699,668,489 $14,205,433,557 $13,691,346,998 

9. Solvency ratio: (8) ÷ (4) 7.524 7.325 7.117 6.910 

2031 2032 2033 2034 

1. Market Value at beginning of year $11,198,605,102 $10,682,177,868 $10,163,648,828 $9,644,452,837 2. Contributions 592,330,713 600,343,200 607,995,601 615,677,379 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 4. Benefit payments 1,935,937,672 1,907,422,127 1,876,987,130 1,843,082,255 5. Administrative expenses 61,088,964 62,310,743 63,556,958 64,828,097 

6. Investment earnings 790,871,675 753,463,616 715,955,482 678,527,614 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $10,682,177,868 $10,163,648,828 $9,644,452,837 $9,128,144,492 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $12,618,115,539 $12,071,070,955 $11,521,439,967 $10,971,226,747 

9. Solvency ratio: (8) ÷ (4) 6.518 6.328 6.138 5.953 

7.1.10
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT III (continued) Deterministic Projection of Proposed Suspension 

Year Beginning January 1 

2036 2037 2038 2039 

1. Market Value at beginning of year $8,619,062,300 $8,115,307,577 $7,616,840,535 $7,137,486,196 

2. Contributions 632,595,337 642,113,530 651,299,231 661,149,369 

3. Withdrawal liability payments 88,698,507 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,762,458,157 1,720,416,336 1,673,770,471 1,624,745,406 

5. Administrative expenses 67,447,152 68,796,095 70,172,017 71,575,458 

6. Investment earnings 604,856,742 568,631,859 533,288,918 499,492,534 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $8,115,307,577 $7,616,840,535 $7,137,486,196 $6,681,807,235 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $9,877,765,734 $9,337,256,871 $8,811,256,667 $8,306,552,641 

9. Solvency ratio: (8) ÷ (4) 5.605 5.427 5.264 5.113 

2041 2042 2043 2044 

1. Market Value at beginning of year $6,251,402,724 $5,850,571,350 $5,478,891,145 $5,140,185,357 

2. Contributions 681,490,405 692,115,990 701,662,146 711,597,298 

3. Withdrawal liability payments 80,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,525,275,423 1,477,338,391 1,426,714,399 1,377,835,110 

5. Administrative expenses 74,467,106 75,956,448 77,475,577 79,025,089 

6. Investment earnings 437,420,750 409,498,644 383,822,042 360,566,543 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $5,850,571,350 $5,478,891,145 $5,140,185,357 $4,835,488,999 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $7,375,846,772 $6,956,229,536 $6,566,899,756 $6,213,324,109 

9. Solvency ratio: (8) ÷ (4) 4.836 4.709 4.603 4.509 

7.1.11
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT III (continued) Deterministic Projection of Proposed Suspension 

Year Beginning January 1 

2046 2047 2048 2049 

1. Market Value at beginning of year $4,565,894,435 $4,331,679,178 $4,129,688,434 $3,960,359,402 

2. Contributions 731,843,424 742,245,939 752,522,902 763,071,031 

3. Withdrawal liability payments 80,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,285,440,026 1,246,207,190 1,208,724,004 1,174,875,323 

5. Administrative expenses 82,217,702 83,862,056 85,539,297 87,250,083 

6. Investment earnings 321,599,047 305,832,563 292,411,367 281,312,415 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $4,331,679,178 $4,129,688,434 $3,960,359,402 $3,822,617,442 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $5,617,119,203 $5,375,895,625 $5,169,083,406 $4,997,492,766 

9. Solvency ratio: (8) ÷ (4) 4.370 4.314 4.276 4.254 

2051 2052 2053 2054 

1. Market Value at beginning of year $3,716,360,712 $3,642,421,797 $3,598,517,304 $3,585,797,683 

2. Contributions 784,463,143 795,478,093 806,560,580 817,889,419 

3. Withdrawal liability payments 80,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,113,607,162 1,088,512,790 1,064,511,941 1,045,292,911 

5. Administrative expenses 90,774,987 92,590,487 94,442,296 96,331,142 

6. Investment earnings 265,980,091 261,720,691 259,674,036 259,794,777 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $3,642,421,797 $3,598,517,304 $3,585,797,683 $3,601,857,826 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $4,756,028,959 $4,687,030,094 $4,650,309,624 $4,647,150,737 

9. Solvency ratio: (8) ÷ (4) 4.271 4.306 4.368 4.446 

7.1.12
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT III (continued) Deterministic Projection of Proposed Suspension 

Year Beginning January 1 

2056 2057 2058 2059 

1. Market Value at beginning of year $3,647,790,190 $3,723,719,932 $3,826,809,562 $3,956,640,066 

2. Contributions 841,145,463 853,075,381 865,107,756 877,338,264 

3. Withdrawal liability payments 80,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,011,432,926 1,000,669,077 992,334,830 985,756,670 5. Administrative expenses 100,222,920 102,227,379 104,271,926 106,357,365 

6. Investment earnings 266,440,125 272,910,705 281,329,504 291,693,914 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $3,723,719,932 $3,826,809,562 $3,956,640,066 $4,113,558,209 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $4,735,152,857 $4,827,478,639 $4,948,974,896 $5,099,314,879 

9. Solvency ratio: (8) ÷ (4) 4.682 4.824 4.987 5.173 

2061 2062 2063 2064 

1. Market Value at beginning of year $4,297,299,627 $4,507,477,246 $4,741,320,139 $4,998,438,596 

2. Contributions 902,454,965 914,656,706 926,055,121 937,425,478 

3. Withdrawal liability payments 80,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 979,868,091 982,240,408 985,851,504 991,546,140 

5. Administrative expenses 110,654,202 112,867,286 115,124,632 117,427,125 

6. Investment earnings 318,244,947 334,293,881 352,039,472 371,449,853 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $4,507,477,246 $4,741,320,139 $4,998,438,596 $5,278,340,662 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $5,487,345,337 $5,723,560,547 $5,984,290,101 $6,269,886,802 

9. Solvency ratio: (8) ÷ (4) 5.600 5.827 6.070 6.323 

7.1.13
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT IV Deterministic Projection of 5% Smaller Suspension The projected Market Value of Assets and Solvency Ratio for the Plan Years beginning January 1, 2016 through 2046. 

Year Beginning January 1 

2016 2017 2018 2019 

1. Market Value at beginning of year $16,927,353,339 $16,310,130,925 $16,071,155,056 $15,815,871,050 2. Contributions 571,437,939 565,171,453 563,691,836 562,913,672 

3. Withdrawal liability payments 128,698,507 137,397,014 137,397,014 137,397,014 

4. Benefit payments 2,473,323,712 2,065,654,464 2,061,692,213 2,061,030,375 5. Administrative expenses 45,390,000 46,297,800 47,223,756 48,168,231 

6. Investment earnings 1,201,354,852 1,170,407,928 1,152,543,113 1,133,357,032 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $16,310,130,925 $16,071,155,056 $15,815,871,050 $15,540,340,162 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $18,783,454,637 $18,136,809,520 $17,877,563,263 $17,601,370,537 

9. Solvency ratio: (8) ÷ (4) 7.594 8.780 8.671 8.540 

2021 2022 2023 2024 

1. Market Value at beginning of year $15,198,847,453 $14,826,396,859 $14,423,756,214 $13,987,514,706 2. Contributions 560,315,592 559,816,067 559,425,993 557,791,789 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 4. Benefit payments 2,065,298,767 2,065,971,663 2,067,839,079 2,069,339,339 5. Administrative expenses 50,114,228 51,116,512 52,138,842 53,181,619 

6. Investment earnings 1,085,249,795 1,057,234,449 1,026,913,406 994,038,647 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $14,826,396,859 $14,423,756,214 $13,987,514,706 $13,514,221,198 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $16,891,695,626 $16,489,727,877 $16,055,353,786 $15,583,560,538 

9. Solvency ratio: (8) ÷ (4) 8.179 7.982 7.764 7.531 

7.1.14
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT IV (continued) Deterministic Projection of 5% Smaller Suspension 

Year Beginning January 1 

2026 2027 2028 2029 

1. Market Value at beginning of year $13,004,941,896 $12,466,189,462 $11,902,120,123 $11,312,100,371 2. Contributions 560,977,991 566,689,834 572,714,953 578,724,941 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 4. Benefit payments 2,062,440,585 2,052,501,702 2,041,634,435 2,026,830,057 5. Administrative expenses 55,330,157 56,436,760 57,565,495 58,716,805 

6. Investment earnings 920,643,303 880,782,275 839,068,211 795,554,094 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $12,466,189,462 $11,902,120,123 $11,312,100,371 $10,698,229,558 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $14,528,630,047 $13,954,621,825 $13,353,734,805 $12,725,059,615 

9. Solvency ratio: (8) ÷ (4) 7.044 6.799 6.541 6.278 

2031 2032 2033 2034 

1. Market Value at beginning of year $10,064,049,196 $9,415,899,329 $8,756,293,771 $8,086,093,983 

2. Contributions 592,330,713 600,343,200 607,995,601 615,677,379 

3. Withdrawal liability payments 97,397,014 97,397,014 97,397,014 97,397,014 4. Benefit payments 1,980,883,155 1,951,861,286 1,920,796,448 1,886,124,800 5. Administrative expenses 61,088,964 62,310,743 63,556,958 64,828,097 

6. Investment earnings 704,094,525 656,826,257 608,761,003 560,036,605 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $9,415,899,329 $8,756,293,771 $8,086,093,983 $7,408,252,084 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $11,396,782,484 $10,708,155,057 $10,006,890,431 $9,294,376,884 

9. Solvency ratio: (8) ÷ (4) 5.753 5.486 5.210 4.928 

7.1.15
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT IV (continued) Deterministic Projection of 5% Smaller Suspension 

Year Beginning January 1 

2036 2037 2038 2039 

1. Market Value at beginning of year $6,726,455,664 $6,038,075,423 $5,342,353,397 $4,652,310,823 

2. Contributions 632,595,337 642,113,530 651,299,231 661,149,369 

3. Withdrawal liability payments 88,698,507 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,803,595,526 1,760,380,262 1,712,422,711 1,661,973,716 

5. Administrative expenses 67,447,152 68,796,095 70,172,017 71,575,458 

6. Investment earnings 461,368,593 411,340,801 361,252,923 311,708,320 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $6,038,075,423 $5,342,353,397 $4,652,310,823 $3,971,619,338 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $7,841,670,949 $7,102,733,659 $6,364,733,534 $5,633,593,054 

9. Solvency ratio: (8) ÷ (4) 4.348 4.035 3.717 3.390 

2041 2042 2043 2044 

1. Market Value at beginning of year $3,300,842,276 $2,643,220,586 $1,997,156,265 $1,365,201,907 

2. Contributions 681,490,405 692,115,990 701,662,146 711,597,298 

3. Withdrawal liability payments 80,000,000 80,000,000 80,000,000 80,000,000 4. Benefit payments 1,559,490,635 1,509,948,327 1,457,671,945 1,407,130,009 5. Administrative expenses 74,467,106 75,956,448 77,475,577 79,025,089 

6. Investment earnings 214,845,646 167,724,464 121,531,018 76,344,226 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $2,643,220,586 $1,997,156,265 $1,365,201,907 $746,988,333 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $4,202,711,221 $3,507,104,592 $2,822,873,852 $2,154,118,342 

9. Solvency ratio: (8) ÷ (4) 2.695 2.323 1.937 1.531 

7.1.16
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT IV (continued) Deterministic Projection of 5% Smaller Suspension 

Year Beginning January 1 

2046 

1. Market Value at beginning of year $142,086,558 

2. Contributions 731,843,424 3. Withdrawal liability payments 80,000,000 

4. Benefit payments 1,311,425,814 5. Administrative expenses 82,217,702 

6. Investment earnings -- 

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $0 

8. Available resources: 

(1)+(2)+(3)-(5)+(6) $871,712,280 

9. Solvency ratio: (8) ÷ (4) 0.665 

7.1.17
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT V Stochastic Projection of Proposed Suspension 

Year Beginning January 1 

Probability of Remaining 

Solvent Through the Year and 

All Prior Years Year Beginning January 1 

Probabilit

Solvent Thro

All P

2016 100.0% 2041 2017 100.0% 2042 2018 100.0% 2043 2019 100.0% 2044 2020 100.0% 2045 2021 100.0% 2046 2022 100.0% 2047 2023 99.9% 2048 2024 99.5% 2049 2025 98.6% 2050 2026 97.1% 2051 2027 95.2% 2052 2028 92.0% 2053 2029 88.8% 2054 2030 85.1% 2055 2031 81.4% 2056 2032 77.4% 2057 2033 74.2% 2058 2034 71.2% 2059 2035 68.6% 2060 2036 66.0% 2061 2037 63.7% 2062 2038 61.8% 2063 2039 60.2% 2064 2040 58.8% 

7.1.18
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT VI Projected Total Contribution Base Units and Average Contribution Rates 

Year Beginning 

January 1 

Total Contribution 

Base Units 

(Equivalent Weeks)

Average 

Contribution Rate

(Weekly) 

Year Beginning 

January 1 

Total Contribution 

Base Units 

(Equivalent Weeks)

C

 2015* 3,286,899 $178 2040 1,738,304  2016 3,140,584 182 2041 1,703,537  2017 3,014,912 187 2042 1,669,467  2018 2,922,156 193 2043 1,636,077  2019 2,832,614 199 2044 1,603,356  2020 2,745,747 205 2045 1,571,289  2021 2,661,744 211 2046 1,539,863  2022 2,580,812 217 2047 1,509,066  2023 2,502,519 224 2048 1,478,885  2024 2,426,789 230 2049 1,449,306  2025 2,353,548 237 2050 1,420,321  2026 2,306,307 243 2051 1,391,914  2027 2,260,204 251 2052 1,364,076  2028 2,215,025 259 2053 1,336,794  2029 2,170,751 267 2054 1,310,059  2030 2,127,359 275 2055 1,283,857  2031 2,084,844 284 2056 1,258,181  2032 2,043,168 294 2057 1,233,017  2033 2,002,320 304 2058 1,208,356  2034 1,962,295 314 2059 1,184,189  2035 1,923,057 324 2060 1,160,505  2036 1,884,601 336 2061 1,137,295  2037 1,846,911 348 2062 1,114,549  2038 1,809,974 360 2063 1,092,258  2039 1,773,778 373 2064 1,070,413 Note: Projections of contributions in Exhibits III, IV, and V were based on contribution rates for individuals contained in the participant data an

assumptions described in Exhibit VII. The above amounts are estimated total base units and estimated average rates that aggregate to the t

contributions each year. 

* Contributions from January 1 through June 30, 2015 were based on financial information provided by the Fund Office. 

7.1.19
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT VII Assumptions and Methodology The actuarial assumptions and methodology are as used in the January 1, 2015 Actuarial Valuation Certificate, dated A

well as the Actuarial Certification of Plan Status as of January 1, 2015 under IRC Section 432, dated March 31, 2015, especifically described below. The calculations are based on a current understanding of the requirements of ERISA Sect

Section 432, temporary regulation §1.432(e)(9)-1T, proposed regulation §1.432(e)(9)-1 and Revenue Procedure 2015-3Contributions and Service Data: Results are based on 2015 Actuarial Valuation data as of December 31, 2014 p

Fund Office on April 24, 2015 and with supplemental data provided on Augusparticipants who had 20 or more total Service Credit, but Contributory Service 

20. 

 This data also included contributions by Tier, Service Credit, Contributory Se

service to be used to calculate PBGC guaranteed benefits and to model the prosuspension.

Contribution Rates: For participants under the Primary Schedule, annual contribution rate increase

reallocations are equivalent to 8% for 5 years, 6% for 3 years and 4% thereafteRehabilitation Plan) to a maximum of $348 per week for each participant coveMaster Automobile Transporters Agreement and $342 per week for all other pFor participants under the Default Schedule, annual contribution rate increasereallocations are 4%. No contribution increases are assumed for employers that qualify as “New EmSection 2.2(b) of Appendix E of the Plan. No future “New Employers” are ass

Projected Industry Activity: The annual active attrition assumption is 3% for the first 10 years and 2% ther

the attrition assumption for participants under the Default Schedule is increasefor first 5 years and 6% per year for next 5 years, from the average dates emplsubject to the Default Schedule. 

7.1.20
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

As part of the proposed suspension plan, the plan sponsor is factoring in the foto the contribution increases currently required under the rehabilitation plan:  The maximum rates ($348 or $342 as described above) are assumed to inc

beginning 2018 and 3.0% per year beginning 2028 and YRCW is assumed annual contribution rate increases of 2.5% beginning August 1, 2019 and August 1, 2028.

15% of the attrition for Classes 15 and above is assumed to be attributable to vwithdrawals (Rehabilitation Plan Withdrawals). The assumptions for future attrition and contributions are based on input from for the actuarial certification of plan status as of January 1, 2015 and updated subsequent input from the plan sponsor assuming the proposed plan changes asuspensions, as described in Exhibit VII of this report, become effective July subsequent input to reflect suspensions included lowering the annual attrition 4% for the first 10 years and 2% thereafter to 3% for the first 10 years and 2% factoring in future increases in the contribution rate requirements under the reh

Withdrawal Liability Payments: 25% of future population declines are assumed to result in withdrawal liability 

projected withdrawal liability payments reflect the assumption that units have prior years and are assumed payable in annual installments over 20 years startfollowing the decline, with minimum annual payments of $120 million per yeyears and $80 million per year thereafter. The assumption for future withdrawals is based on input from the plan sponsoCertification of Plan Status as of January 1, 2015. However, based on input frosubsequent to completion of the Actuarial Certification of Plan Status as of January 1, 2015:  Estimated withdrawal liability payments for the second half of 2015 are a

$133,712,000 (rather than one-half of $120 million). 

 There are no assumed payments related to an agreement with YRCW (Co

Agreement) that are not already recognized in the value of assets as of June 30, 2015.

7.1.21
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

 Kroger is assumed to have a Rehabilitation Plan Withdraw (“RPW”) in 20

monthly withdrawal liability payments of $1,449,751 for 240 months begiThese amounts are valued in addition to the withdrawal liability payment assumed in the projections. Kroger participants’ benefit features are assumaccordance with the Rehabilitation Plan and applicable benefit suspensionwithdrawal liability and participant data are based on information provideOffice for this purpose.

New Entrants: New entrants are assumed to have a demographic mix consistent with recent e

past year. 

Financial Information: The market value of assets was $17.331 billion as of June 30, 2015, based on 

reported in the Central States Funds Financial and Analytical Information as oJune 30, 2015. Based on this financial report, the assumed administrative expeplan year are assumed to equal the Fund’s budget of $49.1 million. Because some expenses during the 2015 plan year are expected to be nonrecurexpenses are assumed to be $45.39 million for the 2016 plan year and increase thereafter. The annual administrative expenses were based on historical and current data, the Fund’s budget for the upcoming year, current statute PBGC premium rates future experience and professional judgment. Post-June 30, 2015 annual investment returns for deterministic projection purpto be 7.5% per year on a market value basis. The net investment return assumption is a long-term estimate derived from hisand recent market expectations, and professional judgment. As part of the anablock approach was used that reflects inflation expectations and anticipated ri

each of the portfolio’s asset classes as provided by Segal Rogerscasey, as well asset allocation. 

Benefit Payment Projections: Projected benefit payments were developed separately for accrued benefits as 

suspension effective data (accrued benefits) and post-suspension benefit accrubenefits). 

7.1.22
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Future benefits were projected based on open group forecasts with the number participants and contributions assumed to change as described above and the na demographic mix consistent with recent entrants during the past year. Accrued benefits were projected by first projecting expected annual benefit amparticipant based on both the current Plan benefit level and at the maximum sureflecting the 110% PBGC guaranteed benefit amount. A suspension percentaformula for proposed benefit suspension was determined for each participant bbenefit for in-pay participants and the projected accrued Normal Retirement bproposed suspension date for participants not in pay status as of the census dat2014). The suspension percentage is the ratio of the benefit after applying the (without regard to the MPRA age and disability protections) to the benefit amsuspension. This suspension percentage was then applied to the participant’s pbenefits prior to suspension, but not allowed to drop below the corresponding year assuming the maximum suspension level. Any applicable age or disabilitthen applied.

Retirement Rates: Retirement rates for participants not subject to the “under 20 years” rates (as d

actuarial valuation as of January 1, 2015) are lowered to the average of the “unand the “20-24 years” rates for purposes of the suspension projections in this rThe retirement rates used for the most recent actuarial valuation were based on current demographic data, economic conditions of the industry, estimated futuprofessional judgment. As part of the analysis, a comparison was made betweliability change due to retirements and the projected liability change based on assumption over the most recent five years. The assumed rates were adjusted fprojections to reflect the proposed benefit reductions under the rehabilitation psuspension, by using the average of the “under 20 years” rates and the “20-24 described in the actuarial valuation as of January 1, 2015. 

Terminated Participants: All participants in inactive vested status for purposes of the Actuarial Valuatio

2015 are assumed to be considered “terminated” for purposes of the general bprovisions of the proposed suspension plan.

7.1.23
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Benefit Election: Married participants are assumed to elect the 75% joint and survivor option up

This was changed from the assumption used for the January 1, 2015 actuarial participants assumed to elect the 50% joint and survivor annuity) because of thguaranteed benefit formula on a surviving spouse’s benefit and the expectation will elect a benefit option with more valuable post-suspension total benefits. 

Stochastic Projections: Stochastic projections are based on a Monte Carlo simulation of market value 

with 10,000 trials. Other cash flows are based on a deterministic projection.

Stochastic modeling of investment returns begins January 1, 2016. The initial 

based on the actual value as of June 30, 2015, and an assumed annual rate of r

through December 31, 2015. There are no future gains or losses except for inv

generated under the stochastic projections. The assumptions for stochastic modeling were based on the Plan’s target asset capital market assumptions reflecting a June 30, 2015 yield curve with a 50-yeprovided by Segal Rogerscasey, as follows: 

Asset Class 

Target 

Allocation 

Expected 

Returns 

Standa

Deviati

Domestic Equity 46.50% 9.75% 18.50International Developed Markets – Equity 13.00% 10.45% 21.00Emerging Markets – Equity 3.50% 12.75% 24.00Core – Fixed Income 26.00% 4.65% 5.00High Yield – Fixed Income 8.00% 7.50% 12.50Core Real Estate 1.75% 7.55% 12.00

Short Term Governmental Money Market 0.50% 4.05% 2.00Private Equity 0.75% 14.85% 24.50

* Not used for stochastic modeling purposes

7.1.24
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Correlations 

Equity Fixed Income 

Core Real 

Estate

Short Te

Governme

Money 

Marke

Domestic 

International 

Developed 

Markets 

Emerging 

Markets Core High Yield 

Domestic Equity 1.0000 0.8830 0.7952 0.0648 0.7509 0.2620 -0.15International Developed Markets – Equity 0.8830 1.0000 0.8955 0.1396 0.7497 0.1858 -0.06Emerging Markets – Equity 0.7952 0.8955 1.0000 0.1407 0.7318 0.0975 -0.01Core – Fixed Income 0.0648 0.1396 0.1407 1.0000 0.2744 -0.2482 -0.15High Yield – Fixed Income 0.7509 0.7497 0.7318 0.2744 1.0000 -0.0455 -0.21Core Real Estate 0.2620 0.1858 0.0975 -0.2482 -0.0455 1.0000 0.18Short Term Governmental Money Market -0.1520 -0.0652 -0.0171 -0.1584 -0.2163 0.1802 1.00Private Equity 0.7743 0.7520 0.7098 -0.2681 0.6300 0.5159 -0.01

7.1.25
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

EXHIBIT VIII Proposed Benefit Suspensions The plan of benefits is as used in the January 1, 2015 actuarial valuation certificate, dated August 14, 2015, except as sdescribed below. Proposed Benefit Suspensions: Effective July 1, 2016, the Plan will reduce benefits based on three main facto

certain protections described below. The first factor is the “tier” to which thosassigned. The second factor is the amount of contributions made to the Plan on 

behalf. The third factor is whether the participant is an active participant, a ter

or a retiree as of July 1, 2016. The tiers are defined as follows: Tier 1: Benefits attributable to contributions made by an employer that withdron or before July 1, 2016 and failed to pay (or are delinquent with respect to pamount of its withdrawal liability under law or an agreement with the Plan. Tier 2: Benefits attributable to contributions not assigned to Tier 1 or Tier 3. Tier 3: Benefits attributable to contributions made by an employer that (a) ha

the Plan in a complete withdrawal in which the employer paid the full amount withdrawal liability under law or an agreement with the Plan and also, (b) purbargaining agreement, has agreed to provide benefits to participants and benefunder a separate, single-employer-sponsored plan, in an amount equal to any ramount of benefits for such participants and beneficiaries as a result of the finPlan. The Plan will reduce benefits in accordance with the structure outlined below statutory 110% of PBGC guaranteed benefit, age and disability limitations: Tier 1 Benefit Reductions 

Benefits attributable to Tier 1 contributions must be reduced to the maximum In general, the amount of Tier 1 benefits after the reduction will be determined 110% of the participant’s PBGC guarantee amount by the percentage of the pacontributions in Tier 1 before application of the statutory age and disability lim

7.1.26
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Cap on Reduction Percentage for Tier 2 and Tier 3 Contributions Participants with 20 or more years of Contributory Service Credit as of July 1have a reduction of more than 50% for benefits attributable to Tier 2 contributbenefits attributable to Tier 3 contributions. Tier 2 and Tier 3 Benefit Reductions The following general benefit reduction provisions apply to benefits that are aand Tier 3 contributions, subject to both the cap described above and the statuPBGC guaranteed benefit, age and disability limitations:  Unless stated otherwise, benefits will be reduced to 1.0% of the Tier 2 and 

contributions made on the participant’s behalf with early retirement and jobenefit reductions applied. 

 Benefits for terminated participants with less than 20 years of Contributor

of July 1, 2016 and without a benefit commencement date on or before Ocbe reduced to 0.5% of the Tier 2 and Tier 3 contributions made on the parwith early retirement and joint and survivor benefit reductions applied. A in “terminated” status for purposes of the suspension plan if, as of July 1, participant: 

o (a) has a Year of Employment under the Plan during any year 

before December 31, 2014, and (b) earned no Contributory Se2014; or 

o (a) has a Year of Employment under the Plan during any year 

before December 31, 2015, and (b) earned no Contributory Se2015; or 

o (a) has earned or earns an Hour of Service while employed w

Employer (or any predecessor or successor entity) that at any October 1, 2015 incurs a Rehabilitation Plan Withdrawal, and 

earned the last year of Contributory Service Credit on or befowhile a member of a Bargaining Unit (or any predecessor or sBargaining Unit) ultimately incurring such Rehabilitation Plaearned the last year of Contributory Service Credit on or befowhile a member of a Bargaining Unit (or any predecessor or s

7.1.27
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Bargaining Unit) ultimately incurring such Rehabilitation Plaprovision shall not apply to Rehabilitation Plan Withdrawals oJuly 1, 2016 unless the Bargaining Unit, on or before July 1, 2otherwise agrees to a Collective Bargaining Agreement (or otwhich permits the withdrawal of the Bargaining Unit in whole Plan (regardless of when the withdrawal in fact occurs). 

Disability Benefits 

Monthly Disability Benefits for service through July 1, 2016 will not be subjeParticipants who receive a retirement pension from the Plan after converting fDisability Benefit cannot have their benefit reduced below the amount of the dthey were receiving prior to conversion. 

Other Amendments: In accordance with the proposed amendments to be implemented in conjunctio

suspensions effective July 1, 2016: The Benefit Accrual Rate attributable to a participant’s service on and after Jureduced from 1.0% of contributions to 0.75% of contributions.Effective June 1, 2021, the Contribution-Based Pension is reduced by 0.5% foage of the participant on his retirement date is less than 63 if the participant haof Service Credit (the reduction occurs from age 65 if the participant has less tService Credit).Effective June 1, 2023, the Contribution-Based Pension is reduced by 0.5% foage of the participant on his retirement date is less than 64 if the participant haof Service Credit (the reduction occurs from age 65 if the participant has less tService Credit). Effective June 1, 2025, the Contribution-Based Pension is reduced by 0.5% foage of the participant on his retirement date is less than 65. Regardless of the above changes, if a participant is subject to the Default SchePlan Withdrawal, or Distressed Employer Schedule, the Contribution-Based Page 65 continues to be reduced to an actuarially equivalent benefit in accordanof the Plan. 

7.1.28
Actuarial Solvency Certification under ERISA Section 305(e)(9)(C)(i) and IRC Section 432(e)(9)(C)(i) for Central 

and Southwest Areas Pension Plan 

EIN 

Technical Issues Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutorwhich the certification is based reflects Segal’s understanding as an actuarial firm. Due to the complexity of the statute significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when making regarding compliance with ERISA and the Internal Revenue Code.5526211v5/10346.001

7.1.29
This report has been prepared at the request of the Board of Trustees to assist in administering the Fund and meeting filing requirements of fe

valuation report may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees and may only be provide

The measurements shown in this actuarial valuation may not be applicable for other purposes. Copyright © 2015 by The Segal Group, Inc. All rights reserved. 

Central States, Southeast and Southwest Areas Pension Plan Actuarial Valuation and Review as of January 1, 2015 

7.2.1
333 West 34th Street New York, NY 10001

T 212.251.5000 www.segalco.com 

Benefits, Compensation and HR Consulting. Member of The Segal Group. Offices throughout the United States and Ca

August 14, 2015

Board of Trustees Central States, Southeast and Southwest Areas Pension Plan 9377 West Higgins Road Rosemont, Illinois 60018-4938 Dear Trustees: We are pleased to submit the Actuarial Valuation and Review as of January 1, 2015. It establishes the funding requir

year and analyzes the preceding year’s experience. It also summarizes the actuarial data and includes the actuarial into be filed with Form 5500 to federal government agencies. The census information upon which our calculations were based was prepared by the Fund Office. That assistance is acknowledged. The actuarial calculations were completed under the supervision of Daniel V. Ciner, MAAA, EnrolleWe look forward to reviewing this report with you at your next meeting and to answering any questions you may havSincerely, Segal Consulting, a Member of The Segal Group By: 

Steven M. Rabinowitz, FSA, MAAA, EA, FCA 

Senior Vice President and Actuary 

cc: Mr. Thomas Nyhan 

Mr. Mark Angerame Gary Ford, Esq. 

7.2.2 Redacted by the US Department of Treasury
Table of Contents Central States, Southeast and Southwest Areas Pension Plan Actuarial Valuation and Review as of January 1, 20

Section 1: Actuarial Valuation Summary

Introduction .............................................................................................................................................Important Information about Actuarial Valuations ...................................................................................A. Developments Since Last Valuation ................................................................................................B. Solvency Projections .......................................................................................................................C. Funded Percentage and Funding Standard Account ......................................................................Summary of Key Valuation Results ........................................................................................................Comparison of Funded Percentages ......................................................................................................

Section 2: Actuarial Valuation Results

Participant Information ............................................................................................................................

Financial Information ..............................................................................................................................Actuarial Experience ...............................................................................................................................Actuarial Assumptions ............................................................................................................................Plan Provisions .......................................................................................................................................Funding Standard Account .....................................................................................................................Pension Protection Act of 2006 ..............................................................................................................Cash Flow ...............................................................................................................................................Withdrawal Liability .................................................................................................................................Disclosure Requirements .......................................................................................................................

7.2.3
Section 3: Supplementary Information

Exhibit A - Table of Plan Coverage ........................................................................................................

Exhibit B - Participant Population ...........................................................................................................Exhibit C - Summary Statement of Income and Expenses on an Actuarial Basis ..................................Exhibit D - Financial Information Table ...................................................................................................Exhibit E - Investment Return – Actuarial Value vs. Market Value .........................................................Exhibit F - Annual Funding Notice for Plan Year Beginning January 1, 2015 and Ending December 31Exhibit G - Funding Standard Account ...................................................................................................Exhibit H - Maximum Deductible Contribution ........................................................................................

Exhibit I - Pension Protection Act of 2006 ..............................................................................................Exhibit J - Section 415 Limitations ..........................................................................................................

Section 4: Certificate of Actuarial Valuation

Certificate of Actuarial Valuation ............................................................................................................

Exhibit 1 - Summary of Actuarial Valuation Results ...............................................................................Exhibit 2 - Information on Plan Status as of January 1, 2015 .................................................................Exhibit 3 - Schedule of Active Participant Data ......................................................................................Exhibit 4 - Funding Standard Account ....................................................................................................Exhibit 5 - Current Liability ......................................................................................................................Exhibit 6 - Actuarial Present Value of Accumulated Plan Benefits .........................................................Exhibit 7 - Actuarial Funded Status (IRC 412(e) Letter Basis) ...............................................................Exhibit 8 - Statement of Actuarial Assumptions/Methods .......................................................................Exhibit 9 - Summary of Plan Provisions .................................................................................................

7.2.4
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Section 1: Actuarial Valuation Summary Introduction There are several ways of evaluating funding adequacy for a pension plan. In monitoring the Plan’s financial positionkeep in mind all of these concepts. 

Zone Information 

The Pension Protection Act of 2006 (PPA’06) called on plan sponsors to actively monitor the balance, the funded percentage (the ratio of the actuarial value of assets to the present value and cash flow sufficiency. Based on these measures, plans are then categorized as critical (R(Yellow Zone), or neither (Green Zone). The Multiemployer Pension Reform Act of 2014 (MPRmade the zone provisions permanent. 

Solvency Projections 

Pension plan funding anticipates that, over the long term, both contributions and investment ecover benefit payments and expenses. To the extent that contributions are less than benefit p

earnings and fund assets will be needed to cover the shortfall. In some situations, a plan may assets to cover its current obligations and may need assistance from the Pension Benefit GuaMPRA provides options for some plans facing insolvency. 

Funding Standard Account 

The ERISA Funding Standard Account (FSA) measures the cumulative difference between acminimum required contributions. If actual contributions exceed the minimum required contributhe credit balance. If actual contributions fall short of the minimum required contributions, a fu

Withdrawal Liability 

ERISA provides for assessment of withdrawal liability to employers who withdraw from a multunfunded vested benefit liabilities. A separate report is available. 

7.2.5
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Important Information about Actuarial Valuations An actuarial valuation is a budgeting tool with respect to the financing of future uncertain obligations of a pension plforecast the precise future contribution requirements or the precise future stream of benefit payments. In any event, i— the actual cost of the plan will be determined by the benefits and expenses paid, not by the actuarial valuation. 

In order to prepare a valuation, Segal Consulting (“Segal”) relies on a number of input items. These include: 

Plan Provisions 

Plan provisions define the rules that will be used to determine benefit payments, and those rules, omay change over time. Even where they appear precise, outside factors may change how they opemay require the award of a Social Security disability pension as a condition for receiving a disability changes in the Social Security law or administration may change the plan’s costs without any chanitself. It is important for the Trustees to keep Segal informed with respect to plan provisions and adto review the plan summary included in our report to confirm that Segal has correctly interpreted th

Participant Information 

An actuarial valuation for a plan is based on data provided to the actuary by the plan. Segal does ncompleteness or accuracy, other than reviewing it for obvious inconsistencies compared to prior daappears unreasonable. For most plans, it is not possible nor desirable to take a snapshot of the act

valuation date. It is not necessary to have perfect data for an actuarial valuation: the valuation is an prediction. The uncertainties in other factors are such that even perfect data does not produce a “pNotwithstanding the above, it is important for Segal to receive the best possible data and to be infoincomplete or inaccurate data. 

Financial Information 

Part of the cost of a plan will be paid from existing assets – the balance will need to come from futuinvestment income. The valuation is based on the asset values as of the valuation date, typically replans include assets, such as private equity holdings, real estate, or hedge funds, that are not subjeto transactions in the marketplace. A snapshot as of a single date may not be an appropriate value year’s contribution requirement, especially in volatile markets. Plan sponsors often use an “actuariafrom market value to gradually reflect year-to-year changes in the market value of assets in determrequirements. 

Actuarial Assumptions 

In preparing an actuarial valuation, Segal starts by developing a forecast of the benefits to be paid for the rest of their lives and the lives of their beneficiaries. This requires actuarial assumptions as tdisability, withdrawal, and retirement of participants in each year, as well as forecasts of the plan’s 

events. The forecasted benefits are then discounted to a present value, typically based on an estimwill be achieved on the plan’s assets. All of these factors are uncertain and unknowable. Thus, therreasonable assumptions, and the results may vary materially based on which assumptions the actuThat is, there is no right answer (except with hindsight). It is important for any user of an actuarial vaccept this constraint. The actuarial model may use approximations and estimates that will have an results and will have no impact on the actual cost of the plan (the total of benefits and expenses pathe actuarial assumptions may change over time, and while this can have a significant impact on thnot mean that the previous assumptions or results were unreasonable or wrong. 

7.2.6
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Given the above, the user of Segal’s actuarial valuation (or other actuarial calculations) needs to keep the following iThe actuarial valuation is prepared for use by the Trustees. It includes information for compliance with federal filing requiremenauditor. Segal is not responsible for the use or misuse of its report, particularly by any other party. An actuarial valuation is a measurement at a specific date — it is not a prediction of a plan’s future financial condition. Accordinan analysis of the potential range of financial measurements, except where otherwise noted. Actuarial results in this report are not rounded, but that does not imply precision. Critical events for a plan include, but are not limited to, decisions about changes in benefits and contributions. The basis for succonsider many factors such as the risk of changes in employment levels and investment losses, not just the current valuation reERISA requires a plan’s enrolled actuary to provide a statement for inclusion in the plan’s annual report disclosing any event or has not taken into account, if, to the best of the actuary’s knowledge, such an event or trend may require a material increase in contribution rates. If the Trustees are currently aware of any event that was not considered in this valuation and that may matethe Plan, they must advise Segal, so that we can evaluate it and take it into account. A certification of “zone” status under PPA’06 is a separate document from the actuarial valuation. Segal does not provide investment, legal, accounting, or tax advice. This valuation is based on Segal’s understanding of applicareas and of the plan’s provisions, but they may be subject to alternative interpretations. The Trustees should look to their othethese areas. While Segal maintains extensive quality assurance procedures, an actuarial valuation involves complex computer models and 

event that an inaccuracy is discovered after presentation of Segal’s valuation, Segal may revise that valuation or make an apprnext valuation. 

Segal’s report shall be deemed to be final and accepted by the Trustees upon delivery and review. Trustees should notify Segaquestions or concerns about the final content. As Segal Consulting has no discretionary authority with respect to the management or assets of the Plan, it is not a fi

actuaries and consultants with respect to the Plan. 

7.2.7
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

ACTUARIAL VALUATION OVERVIEW 

Participant 

Information Financial Information

Funding 

Standard Account

Withdr

Liab

Actuarial 

Assum

ptions

Zone 

Information Disclosures

Experience

Plan 

Provisions

Solvency 

Projections

Actuarial 

Modeling

7.2.8
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

This January 1, 2015 actuarial valuation report is based on financial and demographic information as of that date. Ch

that date are not reflected unless specifically identified, and could affect future results. Segal is prepared to work witanalyze the effects of any subsequent developments. The current year’s actuarial valuation results follow. 

A. Developments Since Last Valuation 1. On December 16, 2014, the Multiemployer Pension Reform Act of 2014 (MPRA) was enacted. MPRA 

expanded and clarified various zone status rules, made changes to withdrawal liability rules for plans 

in the red or yellow zones, enabled suspension of benefits for deeply troubled plans, and granted 

PBGC flexibility in facilitating plan mergers and approving partitions. 

2. The 2015 certification, issued on March 31, 2015, classified the Plan as critical and declining status 

because there were projected deficiencies in the Funding Standard Account (disregarding the Section 412(e) extension) and insolvency was projected within 15 years. The Plan was certified to be making 

scheduled progress in meeting the requirements of the Rehabilitation Plan, based on a projection showing that the Fund will forestall possible insolvency prior to 2023. 

3. The number of active participants declined by 1.2% during 2014. As of this valuation, the ratio of nonactive to active participants is 5.16 to 1. 

4. The rate of return on the market value of plan assets was 6.6% for the 2014 plan year. The rate of return on 

the actuarial value of assets was 11.2% as a result of the asset valuation method. These rates are estimates, net of 

on a mid-year average cash flow assumption, which is consistent with the calculation used for the Schedule MB. long-term rate of return on investments is 7.50%. Given the low fixed income interest rate environment, target asexpectations of future investment returns for various asset classes, we will continue to monitor the Plan’s actual a

investment returns. 

5. The following plan provision was changed and is reflected in this valuation: 

 During the plan year ended December 31, 2014, 605 active participants and 1,116 inactive vested participant

covered under the Default Schedule, Distressed Employer Schedule, or were subject to the Adjustable Benefi

a Rehabilitation Plan Withdrawal. As participants become subject to these schedules, their changes in benefit

change. 

7.2.9
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

6. The following assumptions were changed effective January 1, 2015 for funding purposes and December 31, 2014 

withdrawal liability purposes:  The annual administrative expense assumption was changed from $37,000,000 (payable monthly) to $48,400

to reflect the Fund Office budget for 2015. 

 The mortality rates for non-annuitants were changed from the RP-2000 Combined Healthy Blue Collar Morta

projected on a generational basis using Scale AA for 13 years and Scale BB thereafter to the RP-2014 Blue C

Tables (sex distinct) with rates increased by 15%, projected on a generational basis using Scale MP-2014 fro

 The mortality rates for healthy annuitants were changed from the RP-2000 Combined Healthy Blue Collar M

distinct), projected on a generational basis using Scale AA for 13 years and Scale BB thereafter to the RP-20

Annuitant Mortality Tables (sex distinct) with rates increased by 15%, projected on a generational basis using 

2014. 

 The mortality rates for disabled annuitants were changed from the RP-2000 Disabled Retiree Mortality Table

RP-2014 Disabled Retiree Mortality Tables (sex distinct) with rates increased by 15%, projected on a genera

MP-2014 from 2014. 

B. Solvency Projections 1. The Plan is projected to be unable to pay benefits within 12 years, based on a projection 

shown in the 2015 actuarial status (zone) certification for purposes of reviewing the scheduled progress in meeting the requirements of the Rehabilitation Plan. This cash-flow crisis requires continued monitoring by the Trustees. The actions already taken to address 

this issue include the adoption of and updates to the Rehabilitation Plan. 

7.2.10
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

C. Funded Percentage and Funding Standard Account 1. Based on this January 1, 2015 actuarial valuation, the funded percentage as of that date is 47.9%. 

This will be reported on the 2015 Annual Funding Notice. 

2. The funding deficiency in the Funding Standard Account as of December 31, 2014 was 

$6,623,445,113 (disregarding the 412(e) amortization extension), an increase of $1,639,847,943 from the prior year funding deficiency. PPA ’06 requires plan sponsors to monitor the projected credit balance. 

3. The imbalance between the benefit levels in the Plan and the resources available to pay for them must be address

deficiency and 47.9% funded percentage require continued monitoring by the Trustees. The actions already taken include the adoption of and updates to the Rehabilitation Plan. 

7.2.11
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Summary of Key Valuation Results 

2014 

Certified Zone Status Critical Demographic Data: Number of active participants 65,324 Number of inactive participants with vested rights 129,700 Number of retired participants and beneficiaries 206,622 Assets: Market value of assets (MVA) $18,740,758,554 $Actuarial value of assets (AVA) 17,028,061,298 AVA as a percent of MVA 90.9% Cash Flow: Projected employer contributions (excluding withdrawal liability payments) $572,284,552 Actual contributions (excluding withdrawal liability payments) 584,486,747 Withdrawal liability payments received 232,836,446 Statutory Funding Information: ERISA Minimum required contribution $7,471,417,926 Maximum deductible contribution 59,325,966,067 Annual Funding Notice percentage 48.4% FSA deficiency projected at the end of prior year $4,983,597,170 Actuarial Funded Status – IRC 412(e) Letter Basis: Funded Ratio 62.8% Minimum required funded ratio per 412(e) condition 61.0% 

7.2.12
Section 1: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Comparison of Funded Percentages

Funded Percentages 

as of January 1 2015 

2014 2015 Liability 

1. Present Value of Future Benefits 46.1% 45.6% $36,823,057,239 $16,2. PPA’06 Liability and Annual Funding Notice 48.4% 47.9% 35,062,805,288 16,3. Current Liability 34.9% 33.0% 54,100,020,891 17,4. 412(e) Funded Ratio 62.8% 60.2% 29,653,206,197 17,

Notes: 

1. Includes the value of benefits earned through the valuation date (accrued benefits) plus the value of benefits projected to be 

for current participants. Used to develop the actuarial accrued liability, based on long-term funding investment return assumactuarial value of assets. The funded percentage using market value of assets is 48.5% for 2015 and 50.7% for 2014. 

2. Measures present value of accrued benefits using the current participant census and financial data. As defined by the PPA’0

funding investment return assumption of 7.50% and the actuarial value of assets. 

3. Used to determine maximum tax-deductible contributions and is reported on Schedule MB to Form 5500. Based on the pres

benefits, using a prescribed mortality table and investment return assumption of 3.51% for 2015 and 3.64% for 2014, and thassets. The funded percentage is also shown on the Schedule MB if it is less than 70%. 

4. Used to determine compliance with the conditions of the 412(e) amortization extension. Based on the actuarial accrued liab

assumptions in effect on January 1, 2004, including the former investment return assumption of 8.00%, and the market valu

Disclosure: These measurements are not necessarily appropriate for assessing the sufficiency of Plan assets to cover the estimated cost of settling the Plan’s 

the amount of future contributions. 

7.2.13
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Section 2: Actuarial Valuation Results Participant Information  The Actuarial Valuation and Review considers the number and demographic characteristics of covered participan

2014. More detailed information for this valuation year, and the preceding year can be found in Section 3, Exhibi

64,527

Active Participants

128,114

Inactive Vested Participants

204,851

Pensioners and Beneficiaries 

Actives

Beneficiaries

Inactive 

Vesteds Pensioners

7.2.14
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

0

50,000

100,000150,000200,000250,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Active Inactive Vested In Pay Status

0.001.002.003.004.005.006.00

2005 2006 2007 2008 2009 2010 2

Changes in Population Over Time  The number of active participants has declined from 156,744 to 64,527 over the last 10 years. The ratio of non-ac

increased from 1.9 to 5.2 over the same period. 

 The significant shift in participants from active to inactive vested status in 2007 is primarily due to the withdraw

 More details on the historical information are included in Section 3, Exhibit A and B.

POPULATION AS OF 

DECEMBER 31 

RATIO OF NON-ACTIVES T

AS OF DECEMBER 

7.2.15
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

0

2,0004,0006,0008,000

10,00012,00014,000

0

2,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

Active Participants  There were 64,527 active participants in this year’s valuation compared to 65,324 in the prior year. 

 The age and service distribution is included in Section 4, Exhibit 3. 

DISTRIBUTION BY AGE 

AS OF DECEMBER 31, 2014 

DISTRIBUTION BY PENSIO

AS OF DECEMBER 31

Average age 48.4 Average pension credits 

Prior year average age 48.4 Prior year average pension credits 

Difference 0.0 Difference 

7.2.16
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Inactive Vested Participants  Participants who leave the coverage of the Plan after satisfying the requirements for a deferred pension or an imm

to defer commencement are considered “inactive vesteds” and are included in the pension plan cost. 

 In this year’s valuation, there were 128,114 inactive vested participants with an average age of 53.1. This compa

valuation with an average age of 52.6. 

 No cost is included for other inactive participants, even though some may return to active employment before inc

in service. 

7.2.17
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

New Pensions Awarded  There were 5,963 pensions awarded during the fiscal year ended December 31, 2104.  The average monthly pension awarded, after adjustment for optional forms of payment, was $1,232. 

Total Regular Disab

Year 

Ended 

Dec 31 Number Average Amount Number Average Amount Number 

2005 7,514 -- 7,289 225 2006 6,203 $1,404 6,148 $1,410 55 2007 7,605 1,278 7,417 1,296 188 2008 7,269 1,216 7,123 1,230 146 2009 8,221 1,387 8,072 1,401 149 2010 8,253 1,207 8,026 1,224 227 2011 6,747 1,153 6,520 1,172 227 2012 5,540 1,142 5,407 1,156 133 2013 6,029 1,140 5,877 1,156 152 2014 5,963 1,232 5,846 1,247 117 

7.2.18
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

0

5,000

10,00015,00020,00025,00030,00035,00040,00045,000

Contribution-Based Early DisabilityVested Contributory Twenty-Year ServiceOther

0

5,000

10,00015,00020,00025,00030,00035,000

Contribution-Based Early Vested Contributory Other

Pay Status Information 

2014 vs. 2015 

172,834 pensioners and 32,980 beneficiaries 

 170,543 pensioners and 33,2

$234,797,979 total monthly benefits received 

 $234,847,488 total monthly b

 There were 1,032 suspended pensioners and beneficiaries in this valuation compared with 808 in the prior ye

Distribution of Pensioners 

PENSIONERS BY TYPE AND BY AGE AS OF 

DECEMBER 31, 2014

PENSIONERS BY TYPE A

AMOUNT AS OF DECEM

7.2.19
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Progress of Pension Rolls Over the Past Ten Years 

IN PAY STATUS AT YEAR END 

Year Number 

Average 

Age 

Average 

Amount Terminations1 Additions2

2005 180,955 70.8 $1,123 7,305 7,514 2006 180,234 71.0 1,148 6,924 6,203 2007 179,653 71.3 1,173 8,186 7,605 2008 178,412 71.6 1,197 8,510 7,269 2009 178,768 71.8 1,225 7,865 8,221 2010 178,913 72.0 1,242 8,108 8,253 2011 177,563 72.3 1,257 8,097 6,747 2012 175,031 72.7 1,271 8,072 5,540 2013 172,834 73.1 1,284 8,226 6,029 2014 170,543 73.4 1,296 8,254 5,963 

1 Terminations include pensioners who died plus net suspensions during the prior year. 2 Additions to the pension rolls include new pensions awarded. 

7.2.20
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

0.01.02.03.04.05.06.07.08.0

2005 2006 2007 2008 2009 2010 2011 2012 

$ Billions 

Net Contributions Benefits Paid

Financial Information  Pension plan funding anticipates that, over the long term, both contributions (less administrative expenses) and in

investment fees) will be needed to cover benefit payments. 

 A summary of these transactions for the valuation year and the prior year, including investment activity on an ac

in Section 3, Exhibit C. 

 Contributions and withdrawal liability installments net of administrative expenses were $779,245,629 for the yea

 Benefit payments during the year totaled $2,822,248,295. To the extent that future contributions are projected to 

payments, investment earnings or fund assets will be needed to cover the shortfall. 

COMPARISON OF NET EMPLOYER CONTRIBUTIONS 

AND BENEFITS PAID 

7.2.21
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Determination of Actuarial Value of Assets  Because the Plan is funded by negotiated contribution rates, it is desirable to have a level and predictable pension 

to the next. The Trustees have approved an asset valuation method that recognizes changes in market value over 

valuation method, the full value of market fluctuations is not recognized in a single year. 

1 Market value of assets, December 31, 2014 

Original Unrecogniz

2 Calculation of unrecognized return Amount* Return** 

(a) Year ended December 31, 2014 -$161,386,806 -$129,109(b) Year ended December 31, 2013 1,857,415,173 1,114,449(c) Year ended December 31, 2012 970,780,120 388,312(d) Year ended December 31, 2011 -1,459,149,077 -291,829(e) Year ended December 31, 2010 1,139,783,380(f) Total unrecognized return 

3 Preliminary actuarial value: (1) - (2f) 

4 Adjustment to be within 20% corridor 5 Final actuarial value of assets as of December 31, 2014: (3) + (4) 6 Actuarial value as a percentage of market value: (5) ÷ (1) 7 Amount deferred for future recognition: (1) - (5) 

* Total return minus expected return on a market value basis ** Recognition at 20% per year over 5 years 

7.2.22
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

05

1015202530

2005 2006 2007 2008 2009 2010 2011 2012 20

$ Billions 

Actuarial Value Market Value

Asset History  Both the actuarial value and the market value of assets are representations of the Plan’s financial status.  The actuarial value is significant because it is subtracted from the Plan’s total actuarial accrued liability to determ

funded and is used to determine the PPA’06 funded percentage. 

 Amortization of the unfunded accrued liability is an important element in the contribution requirements of the Pl

ACTUARIAL VALUE OF ASSETS VS. MARKET VALUE OF ASSETS 

7.2.23
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Actuarial Experience  To calculate the cost requirements of the Plan, assumptions are made about future events that affect the amount a

be paid and assets to be accumulated. For contribution requirements to remain stable, assumptions should approxexpectations for the future, which may require adjustments in the assumptions from time to time. 

 Each year actual experience is measured against the assumptions and differences are reflected in the contribution 

assumptions are changed, the contribution requirement is adjusted to take into account a change in experience an

years. 

 Taking account of experience gains or losses in one year without making a change in assumptions reflects the be

was a short-term development and that, over the long run, experience will return to assumed levels. 

 The net experience variation for the year ending December 31, 2014, other than investment experience, was 0.2% 

actuarial accrued liability from the prior valuation, and was not significant when compared to that liability. 

1 Net gain from investments $597,940,8522 Net loss from administrative expenses -1,114,1223 YRCW receivable change -2,207,8164 Net gain from other experience 83,345,5165 Net experience gain: 1 + 2 + 3 + 4 $677,964,430

7.2.24
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Actuarial Value Investment Experience  The actuarial rate of return for a given year is the investment income net of investment expenses, expressed as a 

actuarial value of assets during the year. 

 Net investment income consists of expected investment income at the actuarially assumed rate of return, and the 

value changes. Investment expenses are subtracted. 

EXPERIENCE FOR THE YEAR ENDED DECEMBER 31, 2014 

1 Net investment income $1,798,353,0492 Average actuarial value of assets 16,005,495,9583 Rate of return: 1 

 2 11.24%

4 Assumed rate of return 7.50%5 Expected net investment income: 2 x 4 $1,200,412,1976 Actuarial gain: 1 - 5 $597,940,852

7.2.25
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

-40%-30%-20%-10%

0%

10%20%30%

2005 2006 2007 2008 2009 2010 2011 2012 

Actuarial Value Market Value

Historical Investment Returns  As expected, the experience in the past few years has shown both higher and lower rates of return than the long-t

However, actuarial planning is long term, as the obligations of a pension plan are expected to continue for the lifinactive participants. 

 Based upon this experience, the current asset allocation, and future expectations, we have maintained the assume

of 7.50%. We will continue to monitor the Plan’s actual and anticipated investment returns and may revise our as

return in a future actuarial valuation, if warranted. 

MARKET VALUE AND ACTUARIAL RATES OF RETURN FOR YEARS EN

DECEMBER 31 

Average Rates of Return Actuarial Value Market Value 

Most recent five-year average return: 5.11% 10.16%10-year average return: 5.48% 5.95%

7.2.26
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Non-Investment Experience Administrative Expenses  Administrative expenses for the year ended December 31, 2014 of $38,077,564 resulted in a loss of $1,114,122 f

 The assumption for 2015 is being changed to $48,400,000 annually, payable monthly, to reflect the expense budgMortality Experience  Mortality experience (fewer or more than expected deaths) yields actuarial gains or losses. 

 The average number of deaths for nondisabled pensioners over the past two years was 7,844 per year compared t

per year. The average number of deaths for disabled pensioners over the past two years was 168 per year compardeaths per year. Actuarial gains from mortality were less than 0.1% of projected liability. 

 Mortality assumptions were updated to reflect past experience, future expectations and new tables and scales pub

Actuaries in 2014. 

YRCW Receivable Change Due to receipt of YRCW contributions previously recognized as a receivable in the assets, partially offset by a decre

uncollectible YRCW payments receivable, a net charge of $2,207,816 was reflected in the Funding Standard Accoun

Other Experience There are other differences between projected and actual experience that appear when a new valuation is compared w

previous valuation. These include the extent of turnover among the participants, retirement experience (earlier or late

number of disability retirements. Another difference may be a significant change among the participants, such as the previously inactive participants who are not vested but have credit for prior service. 

Net Liability Experience The net gain from mortality and other experience amounted to $83,345,516 for the last plan year. This is primarily d

retirees than expected and fewer active participants retiring than expected. 

7.2.27
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Actuarial Assumptions  Effective January 1, 2015 for funding purposes (December 31, 2014 for withdrawal liability purpose as applicabl

following assumptions:  The annual administrative expense assumption was changed from $37,000,000 (payable monthly) to $48,400

to reflect the Fund Office budget for 2015. 

 The mortality rates for non-annuitants were changed from the RP-2000 Combined Healthy Blue Collar Morta

projected on a generational basis using Scale AA for 13 years and Scale BB thereafter to the RP-2014 Blue C

Tables (sex distinct) with rates increased by 15%, projected on a generational basis using Scale MP-2014 fro

 The mortality rates for healthy annuitants were changed from the RP-2000 Combined Healthy Blue Collar M

distinct), projected on a generational basis using Scale AA for 13 years and Scale BB thereafter to the RP-20

Annuitant Mortality Tables (sex distinct) with rates increased by 15%, projected on a generational basis using 

2014. 

 The mortality rates for disabled annuitants were changed from the RP-2000 Disabled Retiree Mortality Table

RP-2014 Disabled Retiree Mortality Tables (sex distinct) with rates increased by 15%, projected on a genera

MP-2014 from 2014. 

 The actuarial assumptions and methods can be found in Section 4, Exhibit 8.

Plan Provisions  The following plan provision changes are reflected in this valuation: 

 During the plan year ended December 31, 2014, 605 active participants and 1,116 inactive vested participant

covered under the Default Schedule, Distressed Employer Schedule, or were subject to the Adjustable Benefi

a Rehabilitation Plan Withdrawal. As participants become subject to these changes, their changes in benefits 

change. 

 A summary of all plan provisions can be found in Section 4, Exhibit 9. 

7.2.28
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Funding Standard Account  A summary of the ERISA minimum funding requirements, including the exceptions that can apply, is included in 

 On December 31, 2014, the FSA had a funding deficiency of $6,623,445,113, as will be shown on the 2014 Sche

which is shown in Section 3, Exhibit G. Contributions meet the legal requirement on a cumulative basis if that acdeficiency. For a plan that is in critical status under PPA’06, employers will generally not be penalized if a fundiprovided the parties fulfill their obligations in accordance with the Rehabilitation Plan developed by the Trustees bargaining agreements reflect that Rehabilitation Plan. 

 The minimum funding requirement for the year beginning January 1, 2015 is $9,235,664,385. 

 Based on contribution rates reported in the participant data, assuming that 64,527 participants will work an avera

days, or weeks as noted below, the contributions projected for the year beginning January 1, 2015 are $581,403,5year beginning January 1, 2015 are projected to be less than the maximum allowable deduction level. 

 Participants are assumed to work 1,300 hours or 47 weeks in benefit classes 1 through 14 and 1,700 hours or 51 w

through 18 plus or 210 days in classes 1 through 16 and 240 days in classes 17 and 18 plus. 

7.2.29
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Pension Protection Act of 2006 2015 Actuarial Status Certification  PPA’06 requires trustees to actively monitor their plans’ financial prospects to identify emerging funding challen

addressed effectively. Details are shown in Section 3, Exhibit I. 

 The 2015 certification, completed on March 31, 2015, was based on the liabilities calculated in the January 1, 20

adjusted for subsequent events and projected to December 31, 2014, and estimated asset information as of Decem

addition, the Trustees provided the industry activity assumption. 

 This Plan was classified as in critical and declining status because there were projected deficiencies in the Fundin

(disregarding the Section 412(e) extension) and insolvency is projected within 15 years. 

 The Trustees have adopted and updated a Rehabilitation Plan. The Plan is making the scheduled progress in mee

its Rehabilitation Plan, based on the annual standards of the Rehabilitation Plan. 

7.2.30
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

05

10152025303540

2006 2007 2008 2009 2010 2011 2012 2013 20

$ Billions 

PVAB Actuarial Value of Assets

0%

10%20%30%40%50%60%70%80%

2006 2007 2008 2009 2010 2011 2012 2013 20

PPA’06 Funded Percentage Historical Information 

PRESENT VALUE OF ACCRUED BENEFITS (PVAB) VS. 

ACTUARIAL VALUE OF ASSETS AS OF JANUARY 1 

PPA ’06 FUNDED PERCENTAGE AS OF JANUARY 1 

A historical comparison over the past ten years is shown in the charts above

7.2.31
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Cash Flow  The Plan is operating under a Rehabilitation Plan that is intended to forestall insolvency of the Fund. Upon insolv

assistance will be needed to continue payment of Plan benefits at the reduced PBGC guaranteed benefit level. 

 Section 432(e)(3)(B) requires that the Trustees annually update the Rehabilitation Plan and Schedules. We will w

provide annual cash flow projections to assist the Trustees with those updates and to prepare our required assessm

progress in meeting the requirements of the Rehabilitation Plan. 

 The Plan was projected to become insolvent within 12 years (2026) based on a projection shown in the 2015 actu

certification for purposes of reviewing the scheduled progress in meeting the requirements of the Rehabilitation P

7.2.32
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Withdrawal Liability  The actuarial present value of vested plan benefits for withdrawal liability purposes is not the same figure as dete

960 purposes because the two calculations involve different benefit provisions and different actuarial assumption

 In general for a plan in critical status (Red Zone), reductions in accrued benefits, contribution surcharges, and po

increases required to enable the plan to meet the requirements of a Rehabilitation Plan (unless due to increased leemployment, or periods for which compensation is provided) are disregarded for determination of withdrawal lia

 A detailed report on withdrawal liability is available. 

7.2.33
Section 2: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Disclosure Requirements Annual Funding Notice  PPA’06 requires the annual funding notice to be provided to participants, employers, unions and government age

sent by 120 days after the end of the plan year. The actuarial information to be provided in the annual funding no

Section 3, Exhibit F.

 The value of plan benefits earned to date as of January 1, 2015 is $35,062,805,288 using the long-term funding in

the actuarial value of assets is $16,781,283,666, the Plan’s funded percentage is 47.9%, compared to 48.4% in thpercentage is one measure of a plan’s funded status. It is not indicative of how well funded a plan may be in the fevent of plan termination. 

Current Liability  ERISA also requires the disclosure by the actuary of the funding percentage based on "current liability" assumpti

of assets, if it is less than 70%. The Plan’s current liability as of January 1, 2015 is $54,100,020,891 using an inte

on 30-year U.S. Treasury security rates. As the market value of assets is $17,863,105,558, this funded current lia

33.0%. This will be disclosed on the 2015 Schedule MB of IRS Form 5500. Details are shown in Section 4, Exhi

Accounting Information  The Financial Accounting Standards Board (FASB) requires determination of the present value of accumulated p

single-sum value of the benefits, vested or not, earned by participants as of the valuation date. Additional details the accumulated plan benefits can be found in Section 4, Exhibit 6.

 These present values are determined based on the plan of benefits reflected for FSA purposes and are based upon 

assumptions used to determine the ERISA funding costs of the ongoing Plan. These are not appropriate liability mpurposes such as if the Plan were to terminate. 

7.2.34
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Section 3: Supplementary Information 

EXHIBIT A - TABLE OF PLAN COVERAGE 

Year Ended December 31 

Category 2013 2014 

Active participants in valuation: Number 65,324 64,52Number covered by Default Schedule, Distressed Employer Schedule or Rehabilitation Plan Withdrawal 

17,077 16,40

Average age 48.4 48Average pension credits 14.0 13Number with unknown age 514 36Total active vested participants 51,902 48,69Inactive participants with rights to a pension: Number 129,700 128,1Number covered by Default Schedule, Distressed Employer Schedule or Rehabilitation Plan Withdrawal 

21,395 22,67

Average age 52.6 53Pensioners: Number in pay status 172,834 170,54

Average age 73.1 73Average monthly benefit $1,284 $1,29

Number in suspended status 541 70Beneficiaries: Number in pay status 32,980 33,27Average monthly benefit $389 $39Number in suspended status 267 33

7.2.35
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT B - PARTICIPANT POPULATION 

Year Ended 

December 31 

Active 

Participants 

Inactive Vested 

Participants 

Pensioners and 

Beneficiaries 

Ratio of Non-Act

to Actives 

2005 156,744 86,213 208,666 1.88 2006 154,926 88,025 208,674 1.92 20071 106,169 124,196 209,590 3.14 2008 98,799 125,273 209,127 3.38 20092 80,961 131,304 210,208 4.22 20103 73,800 131,327 211,063 4.64 20114 70,158 130,866 210,214 4.86 2012 68,544 130,926 208,243 4.95 2013 65,324 129,700 206,622 5.15 2014 64,527 128,114 204,851 5.16 

1 Reflects withdrawal of UPS. 2 Includes 16,062 YRCW employees in the active participant counts since contributions were assumed to resume for these participa3 Includes 12,701 YRCW employees determined to be active based on employment during 2010 in the Health and Welfare Plan and 

on their behalf resumed June 1, 2011. 

4 To reflect withdrawal of Hostess, 2,850 participants reported as active are excluded from the active counts. 2,032 of those participa

the inactive vested counts.

7.2.36
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT C - SUMMARY STATEMENT OF INCOME AND EXPENSES ON AN ACTU

Year Ended December 31, 2013 Year Ended De

Contribution income:  Employer contributions $566,442,633 $584,486,747 Withdrawal liability payments 153,928,639 232,836,446 Adjustment for receivable employer contributions not 

collected in time to be recognized in the Schedule MB 

4,661,123 -2,128,015

 Less administrative expenses -36,799,378 -38,077,564Net contribution income $688,233,017 

Investment income: 

 Expected market return $1,252,359,124 $1,328,864,491 Recognition of market value gains (losses) 1,114,339,557 469,488,558Net investment income 2,366,698,681 Total income available for benefits $3,054,931,698 Less benefit payments -2,822,507,812 Change in reserve for future benefits $232,423,886 

7.2.37
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT D - FINANCIAL INFORMATION TABLE 

Year Ended December 31, 2013 Year Ended De

Cash equivalents $1,839,575,176 Accounts receivable:  Employer contributions, less allowance for uncollectible 

contributions 

$82,384,530 $84,074,040

 Interest and dividends 55,082,074 62,986,033 Other, primarily for securities sold 412,159,973 354,773,980Total accounts receivable 549,626,577 Investments:  Cash equivalents $503,084,159 $652,095,115 Fixed income securities 5,067,648,637 5,292,887,935 Equity securities 12,412,426,988 11,179,144,418 Other, primarily real estate related 834,696,613 808,375,810Total investments at market value 18,817,856,397 Total assets $21,207,058,150 Less accounts payable:  Liability to return collateral held under securities lending 

agreements 

-$1,835,378,512 -$2,142,191,334

 Payables for securities purchased -439,737,060 -357,262,621 Withdrawal liability refundable -126,582,722 -154,211,237 Accounts payable and accrued expenses -64,601,302 -67,531,953Total accounts payable -2,466,299,596 Net assets at market value $18,740,758,554 Net assets at actuarial value $17,028,061,298 

7.2.38
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT E - INVESTMENT RETURN – ACTUARIAL VALUE VS. MARKET V

Projected Investment 

Income 

Recognition of Market 

Value Gains (Losses) 

Actuarial Value 

Investment Return 

Mar

Invest

Year Ended 

December 31 Amount Amount Amount Percent Amoun

2005 $1,449,898,000 -$459,090,000 $990,808,000 5.60% $1,789,7092006 1,498,975,253 271,391,109 1,770,366,362 10.04% 2,596,3792007 1,507,356,663 895,402,137 2,402,758,800 13.23% 1,182,4122008 1,943,506,319 -5,415,952,648 -3,472,446,329 -13.78% -7,662,3352009 1,223,053,967 2,814,845,365 4,037,899,332 20.41% 4,285,9222010 1,382,393,425 -926,146,146 456,247,279 2.11% 2,522,1762011 1,407,939,175 -1,437,456,872 -29,517,697 -0.15% -51,2092012 1,244,976,663 -1,178,311,875 66,664,788 0.37% 2,215,7562013 1,252,359,124 1,114,339,557 2,366,698,681 15.05% 3,109,7742014 1,328,864,491 469,488,558 1,798,353,049 11.24% 1,167,477

Total $14,239,323,080 -$3,851,490,815 $10,387,832,265 $11,156,062

Most recent five-year average return: 5.11% 

Most recent 10-year average return: 5.48% 

Note: Each year’s yield is weighted by the average asset value in that year.

7.2.39
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT F - ANNUAL FUNDING NOTICE FOR PLAN YEAR BEGINNIN

JANUARY 1, 2015 AND ENDING DECEMBER 31, 2015 

2015

Plan Year 

2014

Plan Year 

P

Actuarial valuation date January 1, 2015 January 1, 2014 JanFunded percentage 47.9% 48.4% Value of assets $16,781,283,666 $17,028,061,298 $16Value of liabilities 35,062,805,288 35,189,411,452 35Fair market value of assets as of plan year end Not available 17,863,105,558 18

Critical or Endangered Status This Plan was classified as in critical and declining status because there were projected deficiencies in the Funding S

(disregarding the Section 412(e) extension) and insolvency is projected within 15 years. The Trustees have adopted aRehabilitation Plan. 

7.2.40
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT G - FUNDING STANDARD ACCOUNT 

 ERISA imposes a minimum funding standard that requires the Plan to maintain an FSA. The accumulation of co

the minimum required contributions is called the FSA credit balance. If actual contributions fall short on a cumu

deficiency has occurred. For a plan that is in critical status under PPA’06, employers will generally not be penalideficiency develops, provided the parties fulfill their obligations in accordance with the Rehabilitation Plan devethe negotiated bargaining agreements reflect that Rehabilitation Plan. 

 The FSA is charged with the normal cost and the amortization of increases or decreases in the unfunded actuaria

plan amendments, experience gains or losses, and changes in actuarial assumptions and funding methods. The FSemployer contributions and withdrawal liability payments. 

 Increases or decreases in the unfunded actuarial accrued liability are amortized over 15 years except that short-te

checks, are amortized over the scheduled payout period. 

FSA FOR THE YEAR ENDED DECEMBER 31, 2014 (WITHOUT EFFECT OF 412(e

Charges Credits 

1 Prior year funding deficiency $4,983,597,170

6 Prior year credit balance 

2 Normal cost, including administrative expenses 282,317,656

7 Employer contributions 

3 Total amortization charges 2,723,904,562

8 Total amortization credits 

4 Interest to end of the year 599,236,454

9 Interest to end of the year 

5 Total charges $8,589,055,842 10 Full-funding limitation credit 

11 Total credits Credit balance (Funding deficiency): 11 - 5

The above reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to significant investment lo

February 12, 2009, the Plan filed an application with the IRS to change the conditions. Since the anticipated condition relief has not yet been ob

was completed without recognition of the amortization extension. 

7.2.41
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Additional Information Required for Section 412(e) Extension 

 Effective for the 2004 Plan Year, the Plan received IRS approval to extend the amortization period by ten years f

charge bases. There were several financial conditions attached to that approval. 

 First, the Plan must maintain a credit balance in the Funding Standard Account that is at least as large as the accu

valuation rate) of the amortized (at the Plan’s valuation rate over a period of 15 years) differences between the am

of such bases had such bases been extended and amortized at the Plan’s valuation rate. The Plan’s credit balance 

minimum required credit balance as shown below. 

 Second, the Plan’s funded ratio, calculated by dividing the market value of assets by the actuarial accrued liabilit

Unit Credit cost method and the Plan’s assumptions as of January 1, 2004), must be at least 59% for each valuatiJanuary 1, 2011; increasing to 60% on January 1, 2012; 61% on January 1, 2014; 62% of January 1, 2016; and fufor each valuation date after January 1, 2016. Since the ratio for 2009 was less than 59%, the Plan did not meet thFunding Standard Account is determined as if the extension was never granted. While the chart on the previous pdevelopment of the December 31, 2014 funding deficiency without regard to the 412(e) amortization extension, t

credit balance development as if the 412(e) amortization extension was still in effect. 

FSA FOR THE YEAR ENDED DECEMBER 31, 2014 (INCLUDING 412(e) EXT

Charges Credits 

1 Prior year funding deficiency $0

6 Prior year credit balance 

2 Normal cost, including administrative expenses 282,317,656

7 Employer contributions 

3 Total amortization charges 2,368,455,607

8 Total amortization credits 

4 Interest to end of the year 146,709,206

9 Interest to end of the year 

5 Total charges $2,797,482,469 10 Full-funding limitation credit 

11 Total credits Credit balance (Funding deficiency)*: 11 - 5

* Exceeds minimum required credit balance of $6,173,289,152 in accordance with the conditions of the amortization extension under IRC Secti

7.2.42
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT H - MAXIMUM DEDUCTIBLE CONTRIBUTION 

 Employers that contribute to defined benefit pension plans are allowed a current deduction for payments to such 

measures of a plan’s funded level that are considered in the development of the maximum deductible contributio

 One of the limits is the excess of 140% of “current liability” over assets. “Current liability” is one measure of the 

of all benefits earned by the participants as of the valuation date. 

 Contributions in excess of the maximum deductible amount are not prohibited; only the deductibility of these con

challenge and may have to be deferred to a later year. In addition, if contributions are not fully deductible, an exc

equal to 10% of the non-deductible contributions may be imposed. However, the plan sponsor may elect to exem

amount up to the ERISA full-funding limitation from the excise tax. 

 The Trustees should review the interpretation and applicability of all laws and regulations concerning any issues 

contribution amounts with Fund Counsel. 

1 Normal cost, including administrative expenses 2 Amortization of unfunded actuarial accrued liability 3 Preliminary maximum deductible contribution: 1 + 2, with interest to the end of the plan year 4 Full-funding limitation (FFL) 5 Preliminary maximum deductible contribution, adjusted for FFL: lesser of 3 and 4 6 Current liability for maximum deductible contribution, projected to the end of the plan year 7 Actuarial value of assets, projected to the end of the plan year 8 Excess of 140% of current liability over projected assets at end of plan year: [140% of (6)] - (7), not less than zero 9 End of year minimum required contribution Maximum deductible contribution: greatest of 5, 8, and 9 

7.2.43
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

 In a multiemployer plan, the Trustees generally have no control over the contributions received because those co

economic conditions. Action may be limited to establishing benefits so that the maximum allowable deduction le

under a reasonable income assumption and to taking prompt action whenever the limits are exceeded. It has been Section 413(b)(7) of the Internal Revenue Code allows full deductions for contributions to multiemployer plans icontributions for the plan year are less than the maximum, even if the actual contributions exceed the maximum. General Counsel’s Memorandum expresses a different view. An IRS Private Ruling issued in October 2002 limitfacts, and supports the conclusion that all contributions to a multiemployer plan are deductible if the total reason

as of the start of the year was within the limits. Since a Private Letter Ruling is, technically, binding only with reit was issued, Trustees faced with a similar question will need to decide, in consultation with Fund Counsel, wheruling or to wait to deal with it when and if challenged by an IRS auditor. 

 You should review with Fund Counsel the interpretation and applicability of all laws and regulations concerning 

deductibility of contribution amounts.

7.2.44
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT I - PENSION PROTECTION ACT OF 2006 

PPA’06 Zone Status 

 Based on projections of the credit balance in the FSA, the funded percentage, and cash flow sufficiency tests, plans are cate

“zones”: critical status, endangered status, or neither. 

 The funded percentage is determined using the actuarial value of assets and the present value of benefits earned to date, bas

estimate assumptions. 

Critical Status (Red Zone) 

A plan is classified as being in critical status (the Red Zone) if:  The funded percentage is less than 65%, and either there is a projected FSA deficiency within five yea

be unable to pay benefits within seven years, or 

 There is a projected FSA deficiency within four years, or  There is a projected inability to pay benefits within five years, or  The present value of vested benefits for inactive participants exceeds that for actives, contributions are 

current year’s benefit accruals plus interest on existing unfunded accrued benefit liabilities, and there is within five years, or 

 As permitted by the Multiemployer Pension Reform Act of 2014, the plan is projected to be in the Red Z

the plan sponsor elects to be in critical status. 

A critical status plan is further classified as being in critical and declining status if: 

 The ratio of inactives to actives is at least 2 to 1, and there is an inability to pay benefits projected withi The funded percentage is less than 80%, and there is an inability to pay benefits projected within 20 ye There is an inability to pay benefits projected within 15 years. 

Any amortization extensions are ignored for testing initial entry into the Red Zone. 

The Trustees are required to adopt a formal Rehabilitation Plan, designed to allow the plan to emerge froof the rehabilitation period. If they determine that such emergence is not reasonable, the Rehabilitation Pemerge as of a later time or to forestall possible insolvency. Trustees of Red Zone plans have tools, such as the ability to reduce or eliminate early retirement subsidie

Accelerated forms of benefit payment (such as lump sums) are prohibited. However, unless the plan is crTrustees may not reduce benefits of participants who retired before being notified of the plan’s critical sta

recent benefit increases) or alter core retirement benefits payable at normal retirement age. 

7.2.45
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

Endangered Status (Yellow Zone) 

A plan not in critical status (Red Zone) is classified as being in endangered status (the Yellow Zone) if:  The funded percentage is less than 80%, or  There is a projected FSA deficiency within seven years. 

A plan that has both of the endangered conditions present is classified as seriously endangered. Trustees of a plan that was in the Green Zone in the prior year can elect not to enter the Yellow Zone in t

otherwise required to do so) if the plan’s current provisions would be sufficient (with no further action) to afrom the Yellow Zone within 10 years. 

The Trustees are required to adopt a formal Funding Improvement Plan, designed to improve the current avoid a funding deficiency as of the emergence date. 

Green Zone A plan not in critical status (the Red Zone) nor in endangered status (the Yellow Zone) is classified as beEarly Election of Critical Status 

Trustees of a Green or Yellow Zone plan that is projected to enter the Red Zone within six years must ele

the Red Zone for the current year. 

7.2.46
Section 3: Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest 

Areas Pension Plan 

EXHIBIT J - SECTION 415 LIMITATIONS 

 Section 415 of the IRC specifies in terms of pay or dollars the maximum benefit that may be paid to an individua

plan and the maximum amount that may be allocated each year to an individual’s account in a defined contributi

 If an individual is covered only by multiemployer plans, the plans’ benefits do not have to be combined. If the in

multiemployer and a single-employer plan, the benefits from all plans maintained by the same employer are com

plan benefits do not need to be combined with single-employer plan benefits in testing the pay-based limit but ardollar-based limit. 

 A qualified pension plan may not pay benefits in excess of the IRC Section 415 limits. Non-compliance can resu

the plan; the plan could lose its tax-exempt status, employers could lose their deductions and active participants c

vested benefits. 

 Section 415(b) as amended by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) lim

benefit payable to a dollar limit of $160,000 indexed for inflation. The dollar limit indexed for inflation has rema

$210,000 for 2014 and 2015. The limits must be adjusted based on each participant’s circumstances for such thinand form of benefits chosen. 

 While the actual determination of the exact limits applicable to each participant’s benefit can only be determined 

retires and applies for benefits, the overall impact of the Section 415 dollar limits has been reflected in this valua

maximum funding purposes, based on our understanding of the requirements of IRC Sections 404, 412, 415, and available to us. 

 The Trustees should review the interpretation and applicability of the law and regulations in this area with Fund 

7.2.47
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Section 4: Certificate of Actuarial Valuation 

AUGUST 14, 2015 

CERTIFICATE OF ACTUARIAL VALUATION 

This is to certify that Segal Consulting, a Member of The Segal Group, Inc. (“Segal”), has prepared an actuarial valu

Southeast and Southwest Areas Pension Plan as of January 1, 2015 in accordance with generally accepted actuarial pbeen prepared at the request of the Board of Trustees to assist in administering the Fund and meeting filing requiremagencies. This valuation report may not otherwise be copied or reproduced in any form without the consent of the Boonly be provided to other parties in its entirety. The measurements shown in this actuarial valuation may not be applicable for other purposes. Future actuarial measusignificantly from the current measurements presented in this report due to such factors as the following: plan experianticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increa

part of the natural operation of the methodology used for these measurements (such as the end of an amortization per

contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. The valuation is based on the assumption that the Plan is qualified as a multiemployer plan for the year and on draft 

Central States with respect to contributions and assets and reliance on the Plan Administrator with respect to the part

Consulting does not audit the data provided. The accuracy and comprehensiveness of the data is the responsibility of the extent we can, however, Segal does review the data for reasonableness and consistency. Based on our review of tto doubt the substantial accuracy of the information on which we have based this report and we have no reason to be

circumstances that would affect the validity of these results. Adjustments for incomplete or apparently inconsistent d

in the attached Exhibit 8. 

I am a member of the American Academy of Actuaries and I meet the Qualification Standards of the American Acad

the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial valuation is comnoted in Exhibit 1. Each prescribed assumption for the determination of Current Liability was applied in accordance regulations. In my opinion, each other assumption is reasonable (taking into account the experience of the plan and rsuch other assumptions, in combination, offer my best estimate of anticipated experience under the plan. 

Daniel V. Ciner, MAAA, EA Senior Vice President and Actuary

Enrolled Actuary No. 14-05773 

7.2.48 Redacted by the US Department of Treasury
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 1 - SUMMARY OF ACTUARIAL VALUATION RESULTS 

The valuation was made with respect to the following data supplied to us by the Plan Administrator: 

Pensioners as of the valuation date (including 33,276 beneficiaries in pay status, 700 pensioners in suspended status and 332 beneficiaries in suspended status) Participants inactive during year ended December 31, 2014 with vested rights (including 816 participants with unknown age) Participants active during the year ended December 31, 2014 (including 365 participants with unknown age) 

Fully vested 48,692 Not vested 15,835 

Total participants 

The actuarial factors as of the valuation date are as follows: 

Normal cost, including administrative expenses Actuarial accrued liability Pensioners and beneficiaries $23,564,718,5Inactive participants with vested rights 6,397,636,5Active participants 5,100,450,1Actuarial value of assets ($17,863,105,558 at market value as reported in draft financial statements) Unfunded actuarial accrued liability 

7.2.49
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 2 - INFORMATION ON PLAN STATUS AS OF JANUARY 1, 20

Plan status (as certified on March 31, 2015, for the 2015 zone certification) CrScheduled progress (as certified on March 31, 2015, for the 2015 zone certification) Actuarial value of assets for FSA Accrued liability under unit credit cost method Funded percentage for monitoring plan's status Reduction in unit credit accrued liability resulting from the reduction in adjustable benefits since the prior valuation date 

 

7.2.50
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 3 - SCHEDULE OF ACTIVE PARTICIPANT DATA 

(SCHEDULE MB, LINE 8B) 

The participant data is for the year ended December 31, 2014 

Pension Credits 

Age Total Under 1 1-4 5-9 10-14 15-19 20-24 25-29 30-34 

Under 25 1,907 615 1,263 29 – – – – – 25 - 29 3,114 528 1,887 674 25 – – – – 30 - 34 3,984 507 1,684 1,240 519 34 – – – 35 - 39 5,078 478 1,644 1,321 1,046 571 18 – – 40 - 44 6,930 539 1,712 1,477 1,446 1,280 452 24 – 45 - 49 9,381 483 1,654 1,532 1,625 1,997 1,351 719 20 50 - 54 12,620 447 1,452 1,513 1,788 2,306 2,139 2,194 687 55 - 59 12,728 248 1,050 1,173 1,400 1,935 1,998 2,503 1,522 60 - 64 7,083 85 427 592 775 1,026 997 1,292 917 65 - 69 1,189 13 74 134 152 193 166 139 112 70 & over 148 4 24 19 16 16 16 14 16 Unknown 365 130 213 19 3 – – – – Total 64,527 4,077 13,084 9,723 8,795 9,358 7,137 6,885 3,274 

7.2.51
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT 

The table below presents the FSA for the Plan Year ending December 31, 2015. 

Charges Credits 

1 Prior year funding deficiency $6,623,445,113

6 Prior year credit balance 

2 Normal cost, including administrative expenses 296,684,544

7 Amortization credits 

3 Amortization charges 2,723,904,561

8 Interest on 6 and 7 

4 Interest on 1, 2 and 

3 723,302,566

9 Full-funding limitation credit 

5 Total charges $10,367,336,784 10 Total credits Minimum contribution with interest required to avoid a funding deficiency: 5 - 10, not less than zero Full funding limitations (FFL) and credits: ERISA FFL (accrued liability FFL) RPA’94 override (90% current liability FFL) FFL credit Note: The above reflects that the Section 412(e) amortization extension conditions were not met as of January 1, 2009 due to significant investment losses i

the Plan filed an application with the IRS to change the conditions. Since anticipated condition relief has not yet been obtained, this valuation was completamortization extension.

7.2.52
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Charges, Without Amortization Extension) (Schedule MB, Line 9

Type of Base 

Date 

Established 

Amortization 

Amount 

Years 

Remaining 

O

Plan Amendment 01/01/1993 $38,762,592 8 Plan Amendment 01/01/1994 31,006,197 9 Change in Assumptions 01/01/1995 17,021,297 10 Plan Amendment 01/01/1995 73,323,008 10 Plan Amendment 01/01/1996 25,039,818 11 Plan Amendment 01/01/1997 28,387,073 12 Plan Amendment 01/01/1998 78,124,643 13 Plan Amendment 01/01/1999 77,674,687 14 Plan Amendment 01/01/2000 39,147,195 15 Experience Loss 01/01/2001 70,722,931 1 Plan Amendment 01/01/2001 21,660,667 16 Experience Loss 01/01/2002 72,276,217 2 Plan Amendment 01/01/2002 17,972,771 17 Plan Amendment 01/01/2003 8,357,478 18 Experience Loss 01/01/2003 326,695,127 3 Change in Assumptions 01/01/2003 123,927,774 18 Experience Loss 01/01/2005 185,462,548 5 Experience Loss 01/01/2006 69,704,771 6 Change in Assumptions 01/01/2006 148,231,626 21 Change in Assumptions 01/01/2007 237,812,085 22 Plan Amendment 01/01/2009 167,530 9 

7.2.53
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Charges, Without Amortization Extension) (Schedule MB, Line 9

Type of Base 

Date 

Established 

Amortization 

Amount 

Years 

Remaining 

O

Experience Loss 01/01/2009 561,524,191 9 Experience Loss 01/01/2011 123,801,820 11 Experience Loss 01/01/2012 162,390,815 12 Change in Assumptions 01/01/2013 42,965,078 13 Experience Loss 01/01/2013 141,744,622 13 Total $2,723,904,561 $

7.2.54
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Credits) (Schedule MB, Line 9c)

Type of Base 

Date 

Established 

Amortization 

Amount 

Years 

Remaining 

O

Experience Gain 01/01/2004 $44,825,572 4 Plan Amendment 01/01/2004 20,969,649 19 Change in Assumptions 01/01/2004 40,431,538 19 Experience Gain 01/01/2007 62,145,951 7 Plan Amendment 01/01/2008 88,507,360 8 Experience Gain 01/01/2008 176,591,670 8 Plan Amendment 01/01/2010 1,422,139 10 Experience Gain 01/01/2010 301,688,293 10 Plan Amendment 01/01/2011 1,283,693 11 Change in Assumptions 01/01/2011 25,645,809 11 Plan Amendment 07/01/2011 57,365,342 11.5 Plan Amendment 01/01/2012 18,176,560 12 Plan Amendment 01/01/2013 3,142,834 13 Plan Amendment 01/01/2014 2,329,146 14 Experience Gain 01/01/2014 134,693,412 14 Change in Assumptions 01/01/2015 630,383 15 Plan Amendment 01/01/2015 1,422,912 15 Experience Gain 01/01/2015 71,446,248 15 Total $1,052,718,511 

7.2.55
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Charges, With Amortization Extension) (Schedule MB, Line 9c)

Type of Base 

Date 

Established 

Amortization 

Amount 

Years 

Remaining 

O

Combined and offset charge 01/01/1992 $244,872,868 6.48 Experience Loss 01/01/1993 5,708,926 3 Plan Amendment 01/01/1993 15,393,357 18 Experience Loss 01/01/1994 8,021,839 4 Plan Amendment 01/01/1994 12,167,722 19 Experience Loss 01/01/1995 13,932,561 5 Change in Assumptions 01/01/1995 6,595,242 20 Plan Amendment 01/01/1995 28,409,944 20 Experience Loss 01/01/1996 2,806,665 6 Plan Amendment 01/01/1996 9,572,574 21 Plan Amendment 01/01/1997 10,700,968 22 Plan Amendment 01/01/1998 29,025,961 23 Experience Loss 01/01/1999 11,209,234 9 Plan Amendment 01/01/1999 28,430,936 24 Plan Amendment 01/01/2000 14,111,678 25 Experience Loss 01/01/2001 29,269,584 11 Plan Amendment 01/01/2001 7,687,553 26 Plan Amendment 01/01/2002 6,278,856 27 Experience Loss 01/01/2002 29,937,743 12 Plan Amendment 01/01/2003 2,873,440 28 Change in Assumptions 01/01/2003 42,608,828 28 

7.2.56
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT (CONTINUED)

Schedule of FSA Bases (Charges, With Amortization Extension) (Schedule MB, Line 9c)

Type of Base 

Date 

Established 

Amortization 

Amount 

Years 

Remaining 

O

Experience Loss 01/01/2003 135,034,044 13 Experience Loss 01/01/2005 185,462,548 5 Experience Loss 01/01/2006 69,704,771 6 Change in Assumptions 01/01/2006 148,231,626 21 Change in Assumptions 01/01/2007 237,812,085 22 Plan Amendment 01/01/2009 167,530 9 Experience Loss 01/01/2009 561,524,191 9 Experience Loss 01/01/2011 123,801,820 11 Experience Loss 01/01/2012 162,390,815 12 Change in Assumptions 01/01/2013 42,965,078 13 Experience Loss 01/01/2013 141,744,622 13 Total $2,368,455,609 $

Note: Bases established through January 1, 2003 are amortized at 0% interest as of January 1, 2015 with the 412(e) amortization extension, 

valuation. On February 12, 2009, the Plan filed an application with the IRS to change the conditions of the amortization extension. Since any 

obtained, this valuation was completed without recognition of the amortization extension. 

7.2.57
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 4 - FUNDING STANDARD ACCOUNT (CONTINUED)

Equation of Balance 1 Net outstanding balance of bases 2 Credit balance (Funding deficiency) 3 Unfunded actuarial accrued liability: 1 - 2 

7.2.58
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 5 - CURRENT LIABILITY1

The table below presents the current liability for the Plan Year beginning January 1, 2015. 

Item Am

Retired participants and beneficiaries receiving payments Inactive vested participants Active participants 

Non-vested benefits $553,274,092Vested benefits 8,970,402,419Total active 

Total Expected increase in current liability due to benefits accruing during the plan year Expected release from current liability for the plan year Expected plan disbursements for the plan year, including administrative expenses of $48,400,000 Current value of assets Percentage funded for Schedule MB 

1 The actuarial assumptions used to calculate these values are shown in Exhibit 8. 

7.2.59
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 6 - ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BE

The actuarial present value of accumulated plan benefits calculated in accordance with FASB ASC 960 is shown bel

and as of January 1, 2015. In addition, the factors that affected the change between the two dates follow. 

Benefit Information 

January 1, 2014 J

Actuarial present value of vested accumulated plan benefits: Participants currently receiving payments $23,681,961,891 Other vested benefits 11,266,513,194 Total vested benefits $34,948,475,085 

Actuarial present value of non-vested accumulated plan benefits 240,936,367 

Total actuarial present value of accumulated plan benefits $35,189,411,452 

Factors 

Ch

P

Accum

Plan amendments Benefits accumulated Net experience gain or loss and changes in data Benefits paid Changes in actuarial assumptions Interest Total 

7.2.60
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 7 - ACTUARIAL FUNDED STATUS (IRC 412(e) LETTER BAS

The actuarial funded status on the IRC 412(e) letter basis uses the actuarial assumptions from the January 1, 2004 Va

January 1, 2014 J

Interest rate 8.0% Actuarial liability $29,822,856,638 Market value of assets $18,740,758,554 Funded ratio 62.8% Minimum required funded ratio per IRC 412(e) condition 61.0% 

7.2.61
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 8 - STATEMENT OF ACTUARIAL ASSUMPTIONS/METHOD

(SCHEDULE MB, LINE 6) 

Decrements Rates of Retirement: Table A, except effective July 1, 2011, benefits commence no earlier than 

The retirement rates were based on historical and current demographic data, adjusted to reflect conditions of the industry and estimated future experience and professional judgment. As part ocomparison was made between the actual liability change due to retirements and the projected on the prior years' assumption over the most recent five years. 

Rates of Withdrawal Prior to Retirement: Table B Rates of Disability: Table C 

The withdrawal rates and disability rates were based on historical and current demographic dataeconomic conditions of the industry and estimated future experience and professional judgmenta comparison was made between the actual liability change due to withdrawals and disability reprojected liability change based on the prior years' assumption over the most recent five years. 

Rates of Mortality for Non-Annuitant Lives: RP-2014 Blue Collar Employee tables (sex distinct) w

15%, and generational projection using Scale MP-2014 from 2014 

Rates of Mortality for Healthy Annuitant Lives: RP-2014 Blue Collar Healthy Annuitant tables (se

increased by 15%, and generational projection using Scale MP-2014 from 2014

Rates of Mortality for Disabled Lives: RP-2014 Disabled Retiree tables (sex distinct) with rates i

generational projection using Scale MP-2014 from 2014 The adjusted underlying tables with the generational projection to the ages of participants as of reasonably reflect the mortality experience of the Plan as of the measurement date. These adjusted mortality tables were then projected to future years using the generational projemortality improvement from 2014. The mortality rates were based on historical and current demographic data, adjusted to reflect hthe industry, and estimated future experience and professional judgment. As part of this analysimade between the actual number of deaths and liability change due to deaths, and the projectechanges based on the prior years’ assumption over the most recent five years. Note: The rates described above are rates of decrement, not probability rates. Probability rates calculated by considering all applicable rates of decrement at that age. 

7.2.62
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Table A 

Retirement (%)

Benefit Classes 1 – 14 Benefit Classes 15 and 16 Benefit Classes 1

Age Under 20 20 & Over Under 20 20 – 24 25 – 29* 30 & Over* Under 20 20 – 24 25 

48 0.0 0.0 0.0 0.0 1.0 10.0 0.0 0.0 49 0.0 0.0 0.0 0.0 2.0 10.0 0.0 0.5 50 0.5 1.5 0.5 1.0 3.0 10.0 0.5 1.0 51 0.5 1.5 0.5 1.0 3.0 10.0 0.5 1.0 52 0.5 1.5 0.5 1.5 4.0 10.0 0.5 1.0 53 0.5 1.5 0.5 1.5 4.0 10.0 0.5 1.0 54 1.0 3.0 1.0 1.5 5.0 10.0 0.5 1.5 55 1.0 4.0 1.5 3.0 6.0 10.0 1.0 2.5 56 1.0 5.0 2.0 5.0 8.0 10.0 2.0 4.0 57 2.5 6.0 5.0 7.0 12.0 18.0 4.0 9.5 58 3.0 6.0 5.0 9.0 13.0 17.0 4.0 9.0 59 3.0 7.0 5.0 10.0 15.0 17.5 6.0 9.5 60 6.0 15.0 8.0 15.0 20.0 20.0 7.5 10.5 61 10.0 20.0 15.0 25.0 30.0 35.0 12.0 18.0 62 25.0 50.0 35.0 50.0 55.0 65.0 27.5 37.0 63 25.0 35.0 25.0 35.0 50.0 50.0 24.5 30.5 64 25.0 35.0 25.0 35.0 45.0 40.0 23.0 32.5 65 50.0 55.0 50.0 60.0 60.0 55.0 48.0 46.0 66 30.0 35.0 40.0 60.0 60.0 55.0 34.0 35.5 67 25.0 25.0 35.0 35.0 35.0 45.0 28.5 35.0 68 25.0 25.0 30.0 35.0 35.0 30.0 33.5 18.5 69 25.0 25.0 30.0 35.0 35.0 30.0 21.0 12.5 70 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 

* Participants who have less than 15 years of contributory credit on 12/31/03 are assumed to retire in accordance with the “20-24” rates. 

7.2.63
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Table A (continued) 

Retirement (%)

Benefit Class 18** Benefit Class 18 Plus Vested In

Age 

Under 

20 20 – 24 25 – 29* 30 & Over* 

Under 

20 20 – 24 25 – 29* 30 & Over* 

Vested 

Pension 

48 0.0 1.0 2.0 10.0 0.0 0.0 2.0 10.0 0.0 49 0.0 1.0 3.0 10.0 0.0 0.5 3.0 10.0 0.0 50 0.0 1.5 4.0 10.0 0.25 0.5 4.0 10.0 0.5 51 0.0 2.0 5.0 10.0 0.25 1.0 5.0 10.0 0.5 52 0.5 2.0 7.0 10.0 0.25 1.0 7.0 10.0 0.5 53 0.5 1.5 7.0 10.0 0.25 1.0 7.0 10.0 1.0 54 0.5 3.0 9.0 15.0 0.5 1.5 9.0 15.0 1.5 55 1.0 3.0 10.0 15.0 2.0 2.5 10.0 15.0 2.5 56 1.5 5.5 15.0 20.0 2.0 4.0 15.0 20.0 2.5 57 3.5 12.5 30.0 25.0 3.0 9.5 30.0 25.0 4.0 58 3.5 11.0 20.0 25.0 4.0 9.0 20.0 25.0 4.0 59 4.0 13.0 20.0 25.0 4.0 9.5 20.0 25.0 4.0 60 4.5 15.5 25.0 25.0 4.0 10.5 25.0 25.0 5.0 61 10.5 20.0 30.0 35.0 8.0 18.0 30.0 35.0 8.0 62 27.0 35.5 60.0 65.0 20.0 37.0 60.0 65.0 15.0 63 20.0 27.0 45.0 45.0 10.0 30.5 45.0 45.0 8.0 64 20.0 35.0 45.0 40.0 25.0 32.5 45.0 40.0 15.0 65 50.0 61.0 45.0 50.0 35.0 46.0 45.0 50.0 30.0 66 25.0 38.0 40.0 50.0 50.0 35.5 40.0 50.0 8.0 67 25.5 36.0 40.0 50.0 25.0 35.0 40.0 50.0 8.0 68 25.0 18.0 30.0 35.0 25.0 18.5 30.0 35.0 8.0 69 25.0 9.0 30.0 20.0 25.0 12.5 30.0 20.0 8.0 70 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 

* Participants who have less than 15 years of contributory credit on 12/31/03 are assumed to retire in accordance with the “20-24” rates. 

** YRCW participants subject to benefit reductions under the Distressed Employer Schedule are assumed to retire in accordance with the 

Pension” rates. In addition, YRCW participants who were age 55 with 25 years of service as of July 1, 2009 are assumed to defer bene

age 62. 

7.2.64
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Table B 

Withdrawals (%) *

Years of Service Classes 1 – 14 Classes 15 and 16 Classes 17A and 17B Class 18 

0 40.00 35.00 35.00 25.00 1 30.00 25.00 20.00 14.00 2 25.00 20.00 15.00 10.00 3 25.00 15.00 12.00 10.00 4 20.00 14.00 12.00 8.00 5 20.00 13.00 10.00 6.00 6 17.00 11.00 10.00 6.00 7 16.00 10.00 10.00 6.00 8 15.00 10.00 10.00 6.00 9 15.00 10.00 7.00 6.00 

10 15.00 9.00 7.00 5.00 11 15.00 9.00 7.00 5.00 12 13.00 8.00 6.00 4.00 13 13.00 7.00 5.00 4.00 14 13.00 6.00 4.00 3.00 15 10.00 6.00 4.00 3.00 16 9.00 6.00 4.00 2.00 17 8.00 5.00 4.00 2.00 18 8.00 5.00 4.00 2.00 19 9.00 5.00 4.00 2.00 20 11.00 5.00 4.00 2.00 21 9.00 5.00 3.00 2.00 22 8.00 5.00 3.00 2.00 23 7.00 5.00 2.00 2.00 24 6.00 5.00 2.00 1.00 25 6.00 3.00 2.00 1.00 26 6.00 3.00 2.00 1.00 27 6.00 2.00 1.00 1.00 28 6.00 2.00 1.00 1.00 29 5.00 2.00 1.00 1.00 

30 & over 5.00 2.00 1.00 1.00 

* Withdrawal rates cut out at eligibility for retirement provided a non-zero rate of retirement apply at that age. 

7.2.65
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Table C 

Disability (%)

Age Rate of Disability Age Rate of Disability Age 

21 0.00 36 0.03 51 22 0.00 37 0.04 52 23 0.00 38 0.05 53 24 0.00 39 0.06 54 25 0.00 40 0.07 55 26 0.00 41 0.08 56 27 0.00 42 0.10 57 28 0.00 43 0.10 58 29 0.00 44 0.11 59 30 0.00 45 0.12 60 31 0.00 46 0.12 61 32 0.01 47 0.13 62 33 0.02 48 0.12 63 34 0.02 49 0.11 64 35 0.03 50 0.11 65 

7.2.66
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Table D 

Mortality* (%)

Healthy** Disabled 

Age Male Female Male Fem

20 0.06 0.02 0.80 025 0.07 0.02 0.95 030 0.07 0.03 0.90 035 0.08 0.04 1.04 040 0.09 0.05 1.24 045 0.14 0.08 1.91 150 0.25 0.14 2.29 155 0.41 0.21 2.65 160 0.96 0.65 3.03 165 1.44 0.98 3.61 270 2.22 1.57 4.56 375 3.55 2.59 6.11 480 5.83 4.30 8.62 685 9.77 7.32 12.75 1090 16.50 12.59 19.50 14

* Rates above are sample rates in 2015. Rates are projected on a generational basis after 2015 using Scale MP-2014. ** Employee rates shown for ages 20-55 and annuitant rates shown for ages 60-90. 

7.2.67
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Description of Weighted Average Retirement Age 

Age 62, determined as follows: The weighted average retirement age for each participant is calcthe product of each potential current or future retirement age times the probability of surviving frage and then retiring at that age, assuming no other decrements. The overall weighted retiremethe individual retirement ages based on all the active participants included in the January 1, 201

Future Benefit Accruals 

One year of service per year The future benefit accruals were based on historical and current demographic data, adjusted to experience and professional judgment. As part of the analysis, a comparison was made betweeactual benefit accruals over the most recent five years. 

Frequency of Employer Contributions Benefit Class 

Assumed Weeks 

Worked 

Assumed Days 

Worked 

Assumed Hours 

Worked 

1 through 14 47 210 1,300 

15 & 16 51 210 1,700 

17A & 17B 51 240 1,700 

18 & 18 Plus 51 240 1,700 

The frequency of employer contributions was based on historical and current demographic dataestimated future experience and professional judgment. As part of the analysis, a comparison wassumed and the actual frequency of employer contributions over the most recent five years. 

Unknown Data for Participants 

Same as those exhibited by participants with similar known characteristics. If not specified, partbe male. The Fund Office adjusted for missing birth dates by assuming that they were 30 years date. 

Definition of Active Participants 

Active participants are defined as those reported as Active by the Fund Office excluding those wthe valuation date. All actives have earned one year of vesting service in the most recent plan y

Exclusion of Inactive Vested Participants 

Inactive participants over age 70 are excluded from the valuation, based on an assumption that apply for a pension or respond to inquiries by the Fund Office. This assumption does not apply tparticipants that became inactive vested participants as a result of UPS’s withdrawal. The exclusion of inactive vested participants over age 70 was based on historical and current deadjusted to reflect advice from the Trustees and estimated future experience and professional juanalysis, the ages of new retirees from inactive vested status were reviewed. 

Percent Married 80% 

The percent married was based on historical and current demographic data, adjusted to reflect experience and professional judgment. As part of this analysis, the percent married was reviewe

7.2.68
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Age and Sex of Spouse 

Spouses are assumed to be the opposite sex of participants. Females are three years younger The age and sex of spouse were based on historical and current demographic data, adjusted to experience and professional judgment. As part of this analysis, the age and sex of spouse were 

Benefit Election Married participants are assumed to elect the 50% Joint and Survivor Annuity. Single participan

the Single Life Annuity with 60 months of payments guaranteed (without guarantee for participaSchedule). The benefit elections were based on historical and current demographic data, adjusted to reflecestimated future experience and professional judgment. As part of the analysis, a comparison wassumed and the actual option election patterns over the most recent five years. 

Net Investment Return 7.50% - The net investment return assumption is a long-term estimate derived from historical da

market expectations, and professional judgment. As part of the analysis, a building block approareflects inflation expectations and anticipated risk premiums for each of the portfolio’s asset clasSegal Rogerscasey, as well as the Plan’s target asset allocation. 

Annual Administrative Expenses 

$48,400,000, payable monthly, for the year beginning January 1, 2015 (equivalent to $46,550,7beginning of the year). The annual administrative expenses were based on the expense budget for the upcoming year, recent PBGC premium increase.

Actuarial Value of Assets 

The market value of assets less unrecognized returns in each of the last five years. Unrecognizdifference between the actual market return and the projected market return, and is recognized The actuarial value is further adjusted, if necessary, to be within 20% of the market value. 

Actuarial Cost Method Unit Credit Actuarial Cost Method. Normal Cost and Actuarial Accrued Liability are calculated on 

are allocated by service. 

Benefit Class Plan participants are assumed to remain in their current Benefit Class until termination or retiremBenefits Valued Unless otherwise indicated, includes all benefits summarized in Exhibit 9. Current Liability Assumptions 

Interest: 3.51%, within the permissible range prescribed under IRC Section 431(c)(6)(E) Mortality: Mortality prescribed under IRS Regulations 1.431(c)(6)-1 and 1.430(h)(3)-1: RP-2000 to the valuation year plus seven years for annuitants and 15 years for nonannuitants 

7.2.69
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Justification for Change in Actuarial Assumptions (Schedule MB, line 11) 

Based on past experience and future expectations, the following actuarial assumptions were ch2015 for funding purposes, and December 31, 2014 as applicable for withdrawal liability purpos

 Administrative expenses, previously $37,000,000, payable monthly.  Mortality for healthy lives, previously RP-2000 Combined Healthy Blue Collar Mortality T

projected on a generational basis using Scale AA for 13 years and Scale BB thereafter 

 Mortality for disabled lives, previously RP-2000 Disabled Retiree Mortality Table (sex di

Estimated Rate of Investment Return 

On actuarial value of assets (Schedule MB, line 6g): 11.2%, for the Plan Year ended December On current (market) value of assets (Schedule MB, line 6h): 6.6%, for the Plan Year ended Dec

FSA Contribution Timing (Schedule MB, line 3a) 

Unless otherwise noted, contributions are paid periodically throughout the year pursuant to colleagreements. The interest credited in the FSA is therefore assumed to be equivalent to a July 1 c

7.2.70
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

EXHIBIT 9 - SUMMARY OF PLAN PROVISIONS 

(SCHEDULE MB, LINE 6) 

This exhibit summarizes the major provisions of the Plan included in the valuation. It is not intended to be, nor shoucomplete statement of all plan provisions. Plan Year January 1 through December 31 Pension Credit Year January 1 through December 31 Plan Status Ongoing plan Participation Employee is eligible to participate when at least 20 weeks of contributions have been made on his o

first year of employment or in any calendar year thereafter (for Benefit Classes 15A through 18+, nedays of contributions). 

Contributions Employers made daily or weekly contributions on behalf of their employees, as established by a col

agreement. These contribution rates are a factor in determining Benefit Class. Minimum contributioseveral factors, including Benefit Class and year of last contract. 

The average annual contribution per participant, based on the assumptions regarding frequency is $

Service Credit Sum of Contributory Credit and Non-Contributory Credit. Contributory Credit Credit is based on contributions made by employer on employee’s behalf. Contributory Credit is ear

year basis according to the following schedule: 

Benefit Classes 1 – 14 0 – 19 weeks contributed No Credit 20 – 39 weeks contributed Number of weeks divided by 40 40 or more weeks contributed 1 year credit Benefit Classes 15A – 18+ 0 – 19 weeks contributed No Credit 20 – 39 weeks contributed Number of weeks divided by 40 40 or more weeks contributed 1 year credit Or 74 days contributed No Credit 75 – 179 days contributed Number of days divided by 180 180 or more days contributed 1 year credit 

7.2.71
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Non-Contributory Credit 

Employee can earn Non-Contributory Credit if he or she became a Participant prior to April 1, 1985

worked for a Teamster type organization prior to becoming a participant in this plan. Up to one year Credit can be given for each year of Contributory Credit. 

Reemployment If a pensioner or disabled Participant returns to work, benefit payments may be suspended pursuan

Plan. Benefit may have to be re-calculated if he or she earns additional credit. 

Vesting Service A Participant earns one year of Vesting Service for each calendar year during which the employer m

weeks of contribution on his or her behalf (20 weeks or 75 days for Benefit Classes 15A through 18becomes vested upon earning five years of vesting service. 

Break in Service A one-year break is a calendar year with less than 10 weeks of Contributory Credit, Non-Contributo

Service. A Break in Service occurs when a non-vested Participant has the greater of a) five consecutive onenumber of consecutive one-year breaks equal to the number of years of Vesting Service prior to the 

Retirement Benefits A Participant receives the best of the following benefit types at retirement: 

 Twenty-Year Service Pension  Contribution-Based Pension  Contributory Credit Pension 

7.2.72
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Twenty-Year Service Pension 

This benefit is earned by combining Contributory Credit and Non-Contributory Credit, and at least oCredit must be Contributory. This Benefit is based on Benefit Class and age at retirement as follows: 

Monthly Pension Benefit 

Benefit Class Age 57 Age 58 Age 59 60-64 Age 65 

1 $60 $60 $60 $60 $60 2 90 90 90 90 90 

2A 125 125 125 125 125 

3 140 140 140 170 170 

3A 170 170 170 210 210 

4 225 225 225 275 275 5 260 260 260 315 315 6 285 285 285 350 350 7 330 330 330 400 400 8 365 365 365 445 445 9 400 400 400 485 485 

10 435 435 435 530 530 11 490 490 490 595 595 12 575 575 575 675 675 13 600 600 600 725 725 14 625 625 625 775 775 15 700 750 800 900 900 16 700 750 800 900 1,100 

17A&B 700 750 800 900 1,100 

18&18+ 700 750 800 900 1,100 

 Eligibility: Attain age 50 while an active plan participant with 20 years of Credit 

Or 30 years of Credit, regardless of age. 

 Amount: Monthly pension benefit is based on chart above using age on the earlier of 1) retiremen

termination. Benefit is reduced by .5% for each month retirement age precedes age 57. 

7.2.73
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Deferred Pension (Special Provision) 

 Eligibility: Attain age 57 while an active plan participant with 20 years of Credit 

Or 20 years of Contributory Credit, regardless of age, with at least 20 weeks under ScheduClass Rate Chart Or Attain age 50 while an active plan participant with 20 years of Contributory Credit. 

 Amount: Monthly pension benefit is based on previous chart using age at retirement (not age at t

special Deferred Pension allows a participant to terminate employment, but delay retirement to a a greater benefit. This benefit is reduced .5% for each month retirement age precedes age 57. Thpayable prior to age 50. 

Contribution-Based Pension 

 Eligibility: Five years of Vesting Service.  Amount: This monthly pension benefit is payable, unreduced, at the earlier of age 65 and age 62 

Credit, and is equal to (a) + (b) + (c): (a) 1% of all employer contributions paid on the Participant’s behalf on or after January 1, 2004; (b) 2% of all employer contributions paid on the Participant’s behalf on or after January 1, 1986 t

December 31, 2003; 

(c) Pre-1986 credit is determined using a formula as defined in the January 1, 1985 Pension PlaThis benefit can be taken early, with a reduction of .5% for each month retirement date precedes with 20 years of Credit if earlier. 

Contributory Pension  Eligibility (must meet any of the following):

 30 years of Contributory Credit, with at least 1⁄2 year of Contributory Credit earned prior to Jan

Contribution being made under Schedule B of the Benefit Class Rate Chart; 

 At least age 57 with at least 20 years of Contributory Credit and Benefit Class 16 or higher;  At least age 57 with at least 25 years of Contributory Credit and Benefit Class 15C or higher;  At least age 60 with at least 25 years of Contributory Credit and Benefit Class 15A or higher;  25 years of Contributory Credit and Benefit Class 17A, 18, or 18+;  At least age 55 with at least 25 years of Contributory Credit and Benefit Class 17B;  At least age 50 with at least 20 years of Contributory Credit and Benefit Class 18 or 18+. 

7.2.74
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

 Amount: The sum of (a) and (b), where:

(a) 1% of Contributions paid on participant’s behalf on or after January 1, 2004 (payable monthly 

per month for retirement prior to 62);

(b) a percentage (determined by taking years of Contributory Credit as of December 31, 2003 div

Contributory Credit at retirement) of the amount, payable monthly, taken from the following cchart should be age at date or termination).

For Benefit Classes 1 – 14: 

Use age 60 amount from Twenty-Year Service Pension Chart. 

For Benefit Class 15A: 

Age 25 Years 30 Years 

Any $0 $1,000 

60-61 950 1,050 62-64 1,050 1,125 

65+ 1,125 1,250 

For Benefit Class 15B: 

Age 25 Years 30 Years 

Any $0 $1,000 

60-61 1,000 1,100 62-64 1,100 1,250 

65+ 1,250 1,500 

For Benefit Class 15C (Phase I): 

Age 25 Years 30 Years 

Any $0 $1,000 

57-59 900 1,125 60-61 1,125 1,350 62-64 1,225 1,500 

65+ 1,375 1,750 

7.2.75
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

For Benefit Class 15C (Phase II): 

Age 25 Years 30 Years 

Any $0 $1,000 

57-59 1,000 1,250 60-61 1,250 1,600 62-64 1,350 1,750 

65+ 1,500 2,000 

For Benefit Class 16: 

Age 20 Years 25 Years 30 Years 

Any $0 $0 $2,000 

57 900 1,200 2,000 58 950 1,300 2,000 59 1,000 1,400 2,000 60 1,050 1,500 2,000 61 1,100 1,600 2,100 62 1,200 1,700 2,200 63 1,300 1,800 2,300 64 1,400 1,900 2,400 

65+ 1,500 2,000 2,500 

7.2.76
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Contributory Credit Pensions Under Benefit Class 17A 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 

Any Age - $1,500 $1,500 $1,500 $1,500 $1,500 $2,000 $2,100 $2,200 $2,300 $2,4

56 - 1,500 1,600 1,600 1,600 1,600 2,000 2,100 2,200 2,300 2,457 $900 1,500 1,600 1,700 1,700 1,700 2,000 2,100 2,200 2,300 2,458 950 1,500 1,600 1,700 1,800 1,800 2,000 2,100 2,200 2,300 2,459 1,000 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,460 1,050 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,461 1,100 1,600 1,600 1,700 1,800 1,900 2,100 2,100 2,200 2,300 2,462 1,200 1,700 1,700 1,700 1,800 1,900 2,200 2,200 2,200 2,300 2,463 1,300 1,800 1,800 1,800 1,800 1,900 2,300 2,300 2,300 2,300 2,464 1,400 1,900 1,900 1,900 1,900 1,900 2,400 2,400 2,400 2,400 2,4

65 & Up 1,500 2,000 2,000 2,000 2,000 2,000 2,500 2,500 2,500 2,500 2,5

7.2.77
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Contributory Credit Pensions Under Benefit Class 17B 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 

Any Age - - - - - - $2,500 $2,600 $2,700 $2,800 $2,9

55 - $1,500 $1,500 $1,500 $1,500 $1,500 2,500 2,600 2,700 2,800 2,956 - 1,500 1,600 1,600 1,600 1,600 2,500 2,600 2,700 2,800 2,957 $900 1,500 1,600 1,700 1,700 1,700 2,500 2,600 2,700 2,800 2,958 950 1,500 1,600 1,700 1,800 1,800 2,500 2,600 2,700 2,800 2,959 1,000 1,500 1,600 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,960 1,050 1,500 1,600 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,961 1,100 1,600 1,600 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,962 1,200 1,700 1,700 1,700 1,800 1,900 2,500 2,600 2,700 2,800 2,963 1,300 1,800 1,800 1,800 1,800 1,900 2,500 2,600 2,700 2,800 2,964 1,400 1,900 1,900 1,900 1,900 1,900 2,500 2,600 2,700 2,800 2,9

65 & Up 1,500 2,000 2,000 2,000 2,000 2,000 2,500 2,600 2,700 2,800 2,9

7.2.78
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Contributory Credit Pensions Under Benefit Class 18 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 

Any Age - $2,000 $2,100 $2,200 $2,300 $2,400 $3,000 $3,100 $3,200 $3,300 $3,4

50 $650 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,451 700 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,452 750 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,453 800 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,454 850 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,455 900 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,456 950 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,457 1,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,458 1,050 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,459 1,100 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,460 1,150 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,461 1,200 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,462 1,300 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,463 1,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,464 1,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,4

65 & Up 2,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,4

7.2.79
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Contributory Credit Pensions Under Benefit Class 18 Plus 

Years of Contributory Service 

Age 20-24 25 26 27 28 29 30 31 32 33 34 

Any Age - $2,000 $2,100 $2,200 $2,300 $2,400 $3,000 $3,100 $3,200 $3,300 $3,4

50 $650 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,451 700 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,452 750 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,453 800 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,454 850 2,000 2,100 2,200 2,300 2,400 3,000 3,100 3,200 3,300 3,455 900 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,456 950 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,457 1,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,458 1,050 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,459 1,100 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,460 1,150 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,461 1,200 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,462 1,300 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,463 1,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,464 1,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,4

65 & Up 2,000 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,4

7.2.80
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Disability Pension  Eligibility: Under age 62 with 10 years of credited service and Benefit Class 4 or higher 

 Amount: For Benefit Class 18: $650 per month plus $50 for each year that the age at time of disa

50 with a maximum benefit of $1,000. For other Benefit Classes: $265 per month until death or redisability. At age 65, a disabled participant may elect to receive a normal retirement benefit instea

Vesting  Eligibility: 5 years of vesting service 

 Amount: Vested participants retiring after January 1, 1987 will get a Contribution-Based Pension. 

Pension is only for those retiring on or before January 1, 1987. 

Pre-Retirement Death Benefits 

Survivors may only receive one non-disability death benefit. 50% Surviving Spouse Benefit  Eligibility: Married and either a vested participant or eligible for an immediate pension.  Amount: 50% of the pension that would have been payable under the Joint and 50% Surviving S60-Month Survivor Benefit  Eligibility: Active participant with 20 years of credited service, married or with dependent children

or higher 

 Amount: 60 months’ pension equal to the greater of $160 per month or the pension the deceased 

have received under the lifetime with limited surviving spouse payment option.

Lump-Sum Death Benefit  Eligibility: Active participant with 10 years of credited service  Amount: $4,000 under Schedule B, $2,000 under Schedule A, or $10,000 under Benefit Class 18 

50% of the contributions made for the participant. Survivor eligible for more than one death benefone to receive if not covered under Benefit Class 18.

Disability Death Benefit  Eligibility: Receiving a disability pension.  Amount: $1,000 of 50% of spouse’s benefitLump-Sum Disability Benefit  Eligibility: Age 45 with 10 years of credited service and not eligible for the disability pension.  Amount: $3,000 under Schedule B or $2,000 under Schedule A, but not more than 50% of the co

the participant. 

7.2.81
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Optional Forms of Payment 

For single participants: 

 Single Life Annuity for members of Benefit Classes 4 and higher, with a $1,000 death benefit  Single Life Annuity for members of Benefit Classes below 4 and a benefit based on 20 years of 

$1,000 death benefit 

For married participants: 

 50% Joint and Survivor Pension (QJSA) with pop-up provision, reduced from the single life ann 75% Joint and Survivor Pension (QOSA) with pop-up provision, reduced from the single life ann Single Life Annuity for members of Benefit Classes 4 and higher, with 60 months of payments g

spouse does not survive to the pensioner’s death, a $1,000 death benefit 

 Single Life Annuity for members of Benefit Classes below 4 and a benefit based on 20 years of 

$1,000 death benefit upon the pensioner’s death and a $500 death benefit upon the spouse’s d

Benefit Transfer Effective January 1, 2008, the responsibility to pay all benefits to non-retired UPS participants as of 

other than the Contribution-Based Pension Accrued Benefit payable at age 65 was transferred to thPension Plan 

Summary of Plan Changes Under Rehabilitation Plan 

Primary Schedule: Except for plan withdrawals, preserves all current benefit provisions. Annually c

contribution increases are required effective immediately after the expiration of the Collective BargaFor 2008 agreements, the increases are 8% for the first five years, 6% for the next three years, and thereafter. Effective for retirements on or after July 1, 2011, participants will not be granted a retiremage 57, and effective June 1, 2011, required contributions will be limited to $348 per week for each by the National Automobile Transporter Agreement and $342 per week for all other participants. Anqualifies as a New Employer under Section 2.2(b) of Appendix E of the Plan is not required to make contribution rate increases otherwise required by the Rehabilitation Plan as of the date it qualifies a

Default Schedule: Adjustable Benefits are eliminated or reduced to the maximum extent permitted 

employees of contributing employers subject to the Default Schedule. Adjustable Benefits include thService Pension, the Contributory Credit Pension, all disability benefits not yet in pay status, and bedeath benefits other than the 50% surviving spouse benefit. Effective for retirements on or after July retirement reductions in the Default Schedule are based on actuarially equivalent factors rather than 65 and may not commence prior to age 57. Annually compounded contribution increases of 4% are immediately after the expiration of the Collective Bargaining Agreement. Any employer that qualifies under Section 2.2(b) of Appendix E of the Plan is not required to make additional contribution rate inrequired by the Rehabilitation Plan as of the date it qualifies as a New Employer. 

7.2.82
Section 4: Certificate of Actuarial Valuation as of January 1, 2015 for the Central States, Southeast and Southwest Areas Pension Plan 

Rehabilitation Plan Withdrawals: When a contributing employer is no longer required to make em

to the Pension Fund under one or more of its Collective Bargaining Agreements as a result of actionBargaining Unit, its representatives, or the contributing employer; the participants of that employer tcommenced benefits shall be subject to the Adjustable Benefit reductions of the Default Schedule. 

Distressed Employer Schedule: Adjustable Benefits are eliminated or reduced to the maximum e

law for employees of contributing employers subject to the Distressed Employer Schedule, except fthat has achieved a minimum age of 55 and accrued a minimum of 25 years of Contributory Credit Distressed Employer’s termination of participation in the Fund provided that the retirement is not priAdjustable Benefits include the Twenty-Year Service Pension, the Contributory Credit Pension, all dyet in pay status, and before retirement death benefits other than the 50% surviving spouse benefitreductions are based on actuarially equivalent factors effective for retirements on or after July 1, 20

Changes in Plan Provisions 

The following plan provision was changed and is reflected in this valuation: 

 During the plan year ended December 31, 2014, 605 active participants and 1,116 inactive 

were first reported to be covered under the Default Schedule, Distressed Employer ScheduAdjustable Benefit reductions as a result of a Rehabilitation Plan Withdrawal. As participantthese schedules, their changes in benefits are treated as a plan change. 

5522167v3/10346.006

7.2.83