Milliman Supplemental Information 

Issued March 9, 2018 

Sheet Metal Workers Local Pension Plan 

Supplemental Information to Actuarial Certification for the Plan Year 

Beginning May 1, 2017 

Prepared by: 

Kevin M. Campe, EA, MAAA 

Principal and Consulting Actuary 

Therese A. Marske, ASA, EA, MAAA 

Consulting Actuary 

Milliman, Inc. 

71 South Wacker Drive, Suite 3100 

Chicago, Illinois 60606 

Tel +1 312 726 0677 

Fax +1 312 726 5225 

milliman.com 

SMW0078
Milliman 

 

 Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2017 i 

Sheet Metal Workers Local Pension Plan 

Supplemental Information to Actuarial Certification for the Plan Year 

Beginning May 1, 2017 of the Sheet Metal Workers Local Pension Plan 

This supplement to the Actuarial Certification for the Plan Year Beginning May 1, 2017 for the Sheet Metal 

Workers Local Pension Plan (the “Plan”) has been completed in accordance with our understanding of IRC 

§432(e)(9) (including §1.432(e)(9)-1 and Revenue Procedure 2017-43). 

Purpose of the Report

This supplement is meant to fulfill the additional disclosure requirements laid out in Revenue Procedure 2017-43 

Section 3.01 which are not explicitly shown in the original certification. This information is based on the Actuarial 

Certification for the Plan Year Beginning May 1, 2017 dated July 28, 2017. 

Limited Distribution 

Milliman’s work is prepared solely for the internal business use of the Board of Trustees Sheet Metal Workers 

Local Pension Plan (the “Plan Sponsor”) and the Plan’s Trustees and may not be provided to third parties without 

our prior written consent. Milliman does not intend to benefit or create a legal duty to any third party recipient of its 

work product. Milliman’s consent to release its work product to any third party may be conditioned on the third 

party signing a release, subject to the following exceptions: 

 The Plan Sponsor may provide a copy of Milliman’s work, in its entirety, to the Plan’s professional service 

advisors who are subject to a duty of confidentiality and who agree to not use Milliman’s work for any purpose 

other than to benefit the Plan. 

 The Plan Sponsor may distribute certain work product that Milliman and the Plan Sponsor mutually agree is 

appropriate as may be required by the Pension Protection Act of 2006. 

Any third party recipient of this work product who desires professional guidance should not rely upon Milliman’s 

work product, but should engage qualified professionals for advice appropriate to its own specific needs. 

Reliance 

In preparing the report, we relied on our Actuarial Certification for the Plan Year Beginning May 1, 2017 dated 

July 28, 2017 and our May 1, 2016 Actuarial Valuation. 

Limited Use 

Actuarial computations presented here were prepared to meet the requirement set forth in IRC §432(e)(9) (taking 

into account §1.432(e)(9)-1 and Revenue Procedure 2017-43). 

Actuarial computations for other purposes may yield significantly different results from those shown in this report. 

Future actuarial measurements may differ significantly from the current measurements presented in this report 

due to factors such as, but not limited to, the following: plan experience differing from that anticipated by the 

economic or demographic assumptions; changes in economic or demographic assumptions; increases or 

decreases expected as part of the natural operation of the methodology used for these measurements (such as 

the end of an amortization period or additional cost or contribution requirements based on plan funded status); 

and changes in plan provisions or applicable law. Due to the limited scope of the actuarial assignment, we did not 

perform an analysis of the potential range of such future measurements. 

The consultants who worked on this assignment are pension actuaries. Milliman’s advice is not intended to be a 

substitute for qualified legal or accounting counsel. 

SMW0079
Milliman 

 

 Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2017 ii 

Sheet Metal Workers Local Pension Plan 

Certification 

In our opinion, each assumption used, other than those assumptions mandated directly by the Internal Revenue 

Code and regulations thereon, is individually reasonable (taking into account the experience of the Plan and 

reasonable expectations) and, in combination, such other assumptions offer our best estimate of anticipated 

experience under the Plan. 

On the basis of the foregoing, we hereby certify that to the best of our knowledge and belief, this report is 

complete and accurate and has been prepared in accordance with generally recognized and accepted actuarial 

principles and practices which are consistent with the principles prescribed by the Actuarial Standards Board and 

the Code of Professional Conduct and Qualification Standards for Actuaries Issuing Statements of Actuarial 

Opinion in the United States promulgated by the American Academy of Actuaries. We are members of the 

American Academy of Actuaries and meet its Qualification Standards to render the actuarial opinion contained 

herein. 

Respectfully submitted, 

Kevin M. Campe, EA, MAAA Therese A. Marske, ASA, EA, MAAA 

Principal and Consulting Actuary Consulting Actuary 

Enrolled Actuary Number 17-05356 Enrolled Actuary Number 17-05155 

March 9, 2018 

Date 

SMW0080
Milliman 

 

 Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2017 

Sheet Metal Workers Local Pension Plan 

Table of Contents 

A. Solvency Projection ........................................................................................................................................1

B. Projected Total Contribution Base Units and Contribution Rates ..................................................................2

C. New Entrant Profile .........................................................................................................................................2

SMW0081
Milliman 

 

 Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2017 1 

Sheet Metal Workers Local Pension Plan 

A. Solvency Projection 

The following table shows the plan-year-by-year market value of assets projection to insolvency. The plan years ending April 30, 2017 through April 30, 2032 

are shown. 

 Plan year beginning May 1 2016 2017 2018 2019 2020 2021 2022 2023 

1. Market value of assets (beginning of year) $39,751,795 $41,448,047 $41,654,170 $41,585,151 $40,511,338 $39,119,455 $37,343,994 $35,258,224 

2. Employer contributions 3,914,858 3,850,000 3,850,000 3,115,000 3,115,000 3,115,000 3,325,000 3,325,000 

3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. Benefit payments 

 a. Current retirees and beneficiaries n/a 5,196,475 5,086,973 4,972,683 4,853,793 4,710,455 4,578,739 4,439,206 

 b. Terminated vested participants n/a 329,423 515,557 620,222 697,571 829,063 1,028,232 1,187,428 

 c. Current actives n/a 377,444 573,224 809,505 1,084,149 1,372,391 1,696,115 1,996,734 

 d. New entrants n/a 0 0 0 0 0 0 0 

 e. Total 5,349,550 5,903,342 6,175,754 6,402,410 6,635,513 6,911,909 7,303,086 7,623,368 

5. Administrative expenses 352,156 359,199 366,383 373,711 381,185 388,809 396,585 404,517 

6. Investment returns 3,483,100 2,618,664 2,623,118 2,587,308 2,509,815 2,410,257 2,288,901 2,142,827 

7. Market value of assets (end of year) 

 (1) + (2) + (3) - (4e) - (5) + (6) $41,448,047 $41,654,170 $41,585,151 $40,511,338 $39,119,455 $37,343,994 $35,258,224 $32,698,166 

8. Available resources 

 (1) + (2) + (3) - (5) + (6) $46,797,597 $47,557,512 $47,760,905 $46,913,748 $45,754,968 $44,255,903 $42,561,310 $40,321,534 

9. Solvency ratio (8) / (4e) 8.75 8.06 7.73 7.33 6.90 6.40 5.83 5.29 

 Plan year beginning May 1 2024 2025 2026 2027 2028 2029 2030 2031 

1. Market value of assets (beginning of year) $32,698,166 $29,734,424 $26,411,941 $22,648,125 $18,510,444 $13,989,348 $9,082,882 $3,848,794 

2. 2. Employer contributions 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 3,325,000 

3. 3. Withdrawal liability payments 0 0 0 0 0 0 0 0 

4. 4. Benefit payments 

 a. Current retirees and beneficiaries 4,295,982 4,146,152 3,991,173 3,832,222 3,668,969 3,501,908 3,331,562 3,158,498 

 b. Terminated vested participants 1,287,270 1,335,942 1,474,944 1,553,242 1,617,443 1,689,308 1,697,918 1,750,898 

 c. Current actives 2,261,952 2,515,807 2,741,753 2,939,031 3,140,244 3,315,171 3,476,228 3,605,391 

 d. New entrants 0 0 0 0 0 0 0 0 

 e. Total 7,845,204 7,997,901 8,207,870 8,324,495 8,426,656 8,506,387 8,505,708 8,514,787 

5. Administrative expenses 412,607 420,859 429,276 437,862 446,619 455,551 464,662 473,955 

6. Investment returns 1,969,069 1,771,277 1,548,330 1,299,676 1,027,179 730,472 411,282 70,478 

7. Market value of assets (end of year) 

 (1) + (2) + (3) - (4e) - (5) + (6) $29,734,424 $26,411,941 $22,648,125 $18,510,444 $13,989,348 $9,082,882 $3,848,794 Insolvent 

8. Available resources 

 (1) + (2) + (3) - (5) + (6) $37,579,628 $34,409,842 $30,855,995 $26,834,939 $22,416,004 $17,589,269 $12,354,502 n/a 

9. Solvency ratio (8) / (4e) 4.79 4.3 3.76 3.22 2.66 2.07 1.45 n/a 

SMW0082
Milliman 

 

 Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2017 2 

Sheet Metal Workers Local Pension Plan 

B. Projected Total Contribution Base Units and Contribution Rates 

The following table shows the assumed contribution base units (hours) and contribution rate used to produce the 

Actuarial Certification for the Plan Year Beginning May 1, 2017. 

Plan Year Beginning May 1 Total Contribution Base Units (hours) Average Contribution Rate 

 (Hourly) 

2017 1,100,000 $3.50 

2018 1,100,000 $3.50 

2019 890,000 $3.50 

2020 890,000 $3.50 

2021 890,000 $3.50 

2022 950,000 $3.50 

2023 950,000 $3.50 

2024 950,000 $3.50 

2025 950,000 $3.50 

2026 950,000 $3.50 

2027 950,000 $3.50 

2028 950,000 $3.50 

2029 950,000 $3.50 

2030 950,000 $3.50 

2031 950,000 $3.50 

C. New Entrant Profile 

Although the active population is assumed to remain stable, no assumption was made with respect to the 

demographic characteristics of new entrants as benefit accruals have been suspended since August 1, 2013. 

SMW0083