Southwest Ohio Regional Council of Carpenters Pension Plan 

Checklist Item #19 

Does the application include the plan information required by Section 5.02? 

The plan information required by Section 5.02 is set forth on the attached Document 19.1. 

SWORCCPP-000151
Southwest Ohio Regional Council of Carpenters Pension Plan 

Document 19.1 

The information requested by Section 5.02 of Internal Revenue Service Revenue Procedure 2016-27 is 

included as follows: 

Summary of Hourly Contribution Rates 2000 through Present 

Effective Date of Change# Hourly Contribution Rate 

June 1, 1999 $2.40 

June 1, 2003 $2.90 

June 1, 2004 $3.40 

June 1, 2005 $3.90 

June 1, 2006 $4.15 

June 1, 2007 $4.50A 

June 1, 2008 $4.85A 

June 1, 2009 $5.20A 

June 1, 2010 $5.70 

June 1, 2011 $5.95 

July 1, 2012 $6.20 

July 1, 2013 $6.45 

June 1, 2014 $6.70 

June 1, 2015 $6.95* 

Through Present $6.95 

#A few of the Collective Bargaining Agreements change the Hourly Contribution Rate as of the 

September that follows the dates above. 

AA temporary additional contribution of $2.00 per hour (in addition to the hourly contribution rate set 

forth in the table above) from July 1, 2007 through June 30, 2010 accomplished by the diversion of a 

portion of the hourly contributions the bargaining parties allocated to the Ohio and Vicinity Regional 

Council of Carpenters Health and Welfare Plan. 

*On September 10, 2015, the Board of Trustees determined that the continued increase in the hourly 

contribution rate would not forestall insolvency, and ceased the annual $0.25 increase to the hourly 

contribution rate. The Board of Trustees determined that the Plan had exhausted all reasonable measures 

at the December 4, 2014 Board of Trustees meeting. 

Levels of Benefit Accruals 

A Year of Credited Service is defined as each Plan Year in which 1,500 Hours of Service are earned at 

the base journeyman rate (pro-rated for hours other than 1,500). 

Prior to January 1, 2002, a Year of Credited Service earned a $99 benefit credit. 

Effective January 1, 2002, a Year of Credited Service was reduced to an $80 benefit credit. 

Effective June 1, 2003, a Year of Credited Service was further reduced to a $50 benefit credit. 

Document #19 - 1 - 

SWORCCPP-000152
Prior Reductions of Adjustable Benefits under 4432(0(8) 

The following adjustable benefits have been reduced: 

Early Retirement Reductions: 

Effective January 1, 2009, an increase the early retirement reduction for benefits accrued after 

January 1, 2009 to 3/10 of 1% for each month by which the commencement of the Participant's 

Early Retirement Benefit precedes the Normal Retirement Date (from the previous 1/4of 1%). 

For retirements commencing on or after September 1, 2010, the accrued benefits of terminated 

vested participants who commenced receipt of pension benefits before their Normal Retirement 

Date would be subject to a full actuarial reduction to reflect the early commencement of their 

benefits. 

For retirements commencing on or after September 1, 2010, the accrued benefits of vested 

participants who retired from active service and commence receipt of pension benefits before 

their Normal Retirement Date would be subject to a reduction of 0.003 for each month that the 

early commencement of their benefits precedes their Normal Retirement Date. 

For a Participant who commenced receipt of an Early Retirement Benefit on or after January 1, 

2013, the Early Retirement Benefit would equal the Participant's actuarially reduced accrued 

benefit. 

Reduction and Elimination of "Rule of 80." 

Effective January 1, 2009, only years of continuous membership in the United Brotherhood of 

Carpenters and Joiners of America through December 31, 2008 would be considered for 

eligibility of the "Rule of 80." The Rule of 80 exempted a Participant's benefits from the 

application of the early retirement reduction, provided the Participant had attained age 50 and 

whose age and years of continuous membership in the United Brotherhood of Carpenters and 

Joiners of America equal at least 80. 

Benefits accrued on or after January 1, 2009 would not be exempted from the early retirement 

reduction as a result of a Participant's continuous membership in the United Brotherhood of 

Carpenters and Joiners of America. 

For retirements on or after September 1, 2010, the Plan's Rule of 80 Early Retirement benefit was 

replaced with a Rule of 85 Early Retirement benefit. Eligibility for the Rule of 85 Early 

Retirement benefit would require a minimum age of 55, and the sum of the participant's age plus 

years of vesting service must equal or exceed 85. In addition, a participant would be required to 

have at least 1,000 hours of contributions to the Plan for work in Covered Employment during the 

24-month period immediately preceding their Early Retirement Date. Only vesting service earned 

under the Plan would be counted in calculating the vesting service required for Rule of 85 Early 

Retirement eligibility. For the participant to receive an unreduced Early Retirement benefit, they 

would be required to satisfy these requirements. 

The Rule of 85 was completely eliminated for Early Retirement Benefits commencing on or after 

January 1, 2013. 

Document #19 - 2 - 

SWORCCPP-000153
Expansion of Suspension of Benefit Rules for Early Retirement Benefits 

For retirements commencing on or after April 30, 2010, the Plan's suspension rules for 

Disqualifying Employment before Normal Retirement Age were expanded by applying the rules 

in effect for benefits accrued on or after July 1, 2005 to benefits accrued before July 1, 2005 as 

well. 

Reduction of Total and Permanent Disability Benefit 

For disabilities incurred on or after July 1, 2010, the Plan's Total and Permanent Disability 

benefit was modified to provide that vested participants who were eligible for an Early 

Retirement Benefit would receive a monthly pension equal to their Early Retirement Benefit. In 

addition, for vested participants who had not yet attained age 55 and incurred a total and 

permanent disability, the participant would receive a monthly pension equal to their accrued 

benefit subject to a full actuarial reduction. 

Reduction of Qualified Pre-Retirement Survivor Annuity and Delay until Age 55 

For deaths occurring on or after July 1, 2010, the Plan would continue to provide a Qualified PreRetirement Survivor Annuity to the surviving spouses of vested participants; however, the 

amount payable to the surviving spouse would be determined as if the participant retired on the 

date before his date of death or age 55 if later, elected the Joint & 50% Survivor Annuity form of 

payment, and died. Payments would not commence before the first month the deceased 

participant would have attained age 55. 

Elimination of Return of Contributions Ancillary Benefit 

Effective as of April 29, 2010, the Board of Trustees amended the Plan to eliminate the lump sum 

return of contributions benefit for (1) those participants who died with less than five (5) years of 

vesting service, (2) deceased unmarried participants who were receiving a single life annuity and 

did not receive benefits in excess of the amount of employer contributions made on their behalf, 

and (3) married participants who died before they or their spouse received benefits in aggregate 

less than the employer contributions made on behalf of the participant. 

Effective April 30, 2010, the Plan's lump sum return of contributions Total and Permanent 

Disability benefit was eliminated. 

Any Prior Suspensions of Benefits Under §432(e)(9). 

The Board of Trustees has not applied for nor received approval for any prior suspensions of 

benefits under §432(e)(9). 

Measures Undertaken by the Plan Sponsor to Retain or Attract Contributing Employers 

The Board of Trustees has worked to retain and attract contributing employers through 

consultation and engagement with the employers and the various associations through the rehabilitation 

plan process. Through this communication, in response to employer association request, the Board of 

Trustees adopted a "free look" plan amendment on June 21, 2007. 

Additionally, the Board of Trustees has had several withdrawing employers re-sign and proceed 

through the abatement process rather than pay withdrawal liability. 

Document #19 - 3 - 

SWORCCPP-000154
The Impact on Plan Solvency of the Subsidies and Ancillary Benefits Available to Active 

Participants. 

As of January 1, 2013, the Plan does not provide any subsidy or ancillary benefit to any active 

participant. All adjustable benefits have been eliminated from the Plan effective as of January 1, 2013. 

Compensation Levels of Active Participants Relative to Employees in the Participants' Industry 

Generally. 

During the review of the suspension of benefits and determination of the exhaustion of all 

reasonable measures, the Board of Trustees reviewed the hourly contribution rate and the amount of 

benefit credit received by the active participants of the Plan. Notably, as part of the determination that the 

Board of Trustees had exhausted all reasonable measures, resulting in the cessation of the continued 

annual increases to the hourly contribution rate, it was demonstrated that continued annual increases to 

the hourly contribution rate would not prevent the eventual projected insolvency of the Plan. 

In comparison to the $6.95 per hour contribution rate and $50.00 benefit credit based on 1500 

hours worked, the other larger nearby Carpenter pension funds each provide a significantly higher benefit. 

Union / Craft Year Contribution Rate 

Ohio Carpenters Pension Plan 2016 Between $7.18 - $8.53 per hour 

contribution rate (for a 1.0% 

benefit credit), which would 

equal approximately between 

$107.70 - $127.95 annual benefit 

credit based on 1500 hours 

worked. 

Indiana / Kentucky/ Ohio 

Regional Council of Carpenters 

Pension Plan 

2016 $8.04 per hour contribution rate 

(for a 0.90% benefit credit), 

which would equal 

approximately $108.54 annual 

benefit credit based on 1500 

hours worked. 

Competitive and other Economic Factors Facing Contributing Employers 

Contributing employers have faced significant competitive and economic difficulties over the last 15 

years, including a general slowdown in construction activity within the Plan's geographic area after the 

financial crisis of 2008, and an increase in non-union competition. 

The geographic area from which contributions are made to the Plan suffered a reduction in hours worked 

for which contributions were due from 4,590,926 in the 2000 Plan Year to 2,147,042 in the 2016 Plan 

Year. In addition, the number of signatory contractors dropped from 256 during the 2000 Plan Year to 

182 during the 2016 Plan Year. 

Document #19 - 4 - 

SWORCCPP-000155