2020 UPDATED REHABILITATION PLAN 

FOR THE 

WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST FUND 

I. Introduction

On March 29, 2019, the actuary of the Warehouse Employees Union Local No. 730 

Pension Trust Fund (the “Fund”) certified that the Fund is in Critical and Declining Status for the 

2019 Plan Year for the purposes of the Employee Retirement Income Security Act (“ERISA”) as 

amended by the Pension Protection Act of 2006 (“PPA”). The Fund has been in Critical Status 

since 2009. 

As required by law, the Board of Trustees sent a Notice of Critical and Declining Status 

to participants, beneficiaries, Local 730 as the participating union, the participating employers 

(“Employers”), the Pension Benefit Guaranty Corporation and the Department of Labor, 

advising that the Fund is in Critical and Declining Status for the 2019 Plan Year and describing 

the consequences of being in Critical and Declining Status. Similar notices have been 

distributed annually since the Fund first entered Critical Status in 2009. 

As a result of being in Critical Status the Trustees adopted a Rehabilitation Plan on 

November 26, 2009 and have continued to approve the plan until this revision. The Fund’s 

Rehabilitation Period began on January 1, 2012, and was scheduled to run until December 31, 

2024 because the Fund elected to extend its ten-year Rehabilitation Period by an additional 

three years as permitted under Section 205 of the Worker, Retiree and Employer Recovery Act 

of 2008. Generally, the Fund must emerge from Critical Status by the end of its thirteen-year 

Rehabilitation Period, as defined under ERISA. However, the Fund’s Board of Trustees has 

determined that, based on reasonable actuarial assumptions and upon exhaustion of all 

reasonable measures, the Fund cannot be reasonably expected to emerge from critical status 

by the end of the Rehabilitation Period. Pursuant to ERISA Section 305(e)(3)(A)(ii), the Board of 

Trustees adopted this 2020 Updated Rehabilitation Plan to enable the Fund to emerge from 

critical status at a time later than the end of the extended Rehabilitation Period or to forestall 

possible insolvency (as defined by ERISA Section 4245). 

This 2020 Updated Rehabilitation Plan is based on reasonable assumptions about how 

the Fund’s assets and liabilities will change in the coming years, particularly as a result of 

changes in the Fund’s level of participation. The Board of Trustees will review the Fund’s 

Rehabilitation Plan and will update the Rehabilitation Plan as required by law to the extent 

necessary to enable the Fund to emerge from critical status at a later time than the end of the 

Rehabilitation Period or to forestall possible insolvency. In addition, the Board of Trustees will 

continue to consider all options available to the Fund, including but not limited to reducing 

Fund expenditures, taking advantage of any changes in law, or exploring a merger with another 

plan. The Board of Trustees has the sole discretion to amend and construe this Rehabilitation 

Plan. 

Exhibit 7.09a 

Most recently updated Rehabilitation Plan (Checklist Item #40)

IBT730-0362
Given the findings of the Trustees described in Section II of this Rehabilitation Plan, the 

Trustees will send the entire updated Rehabilitation Plan to the Union and the Employers. The 

Board of Trustees will update this Rehabilitation Plan, as required by law. The Board of Trustees 

has the sole discretion to amend and construe this Rehabilitation Plan. 

II. Determination that Section 305(e)(3)(A)(ii) of ERISA Applies 

The Board of Trustees considered alternatives to enable the Fund to emerge from 

Critical Status by the end of the Rehabilitation Period. The alternatives considered were based 

on projections by the Fund’s actuary using reasonable actuarial assumptions. The Fund’s 

actuary projected that Employer contribution rates beginning with 2020 contract anniversaries 

would have to be increased by 60% every year from when the current contracts expire until 

2024 for the Fund to emerge from Critical Status by the end of the rehabilitation period. 

The Board of Trustees considered whether it would be reasonable to expect the Fund’s 

largest Employers and the Union to negotiate the increased Employer contributions necessary 

for the Fund to emerge from Critical Status prior to the end of the Rehabilitation Period. The 

Trustees concluded that the contribution rate increases stated above, as necessary for the 

Fund to emerge from Critical Status by the end of the Fund’s Rehabilitation Period, are not 

reasonable and likely could not be negotiated. Therefore the possible outcome of collective 

bargaining over such extreme rate increases would be negotiated withdrawals from the fund. 

Upon a mass withdrawal, while the Employer withdrawal liability payments are fixed, 

participant benefits are at risk for further reduction if Employer liability payments are not 

collected and the Fund becomes insolvent, thus reducing benefits to the PBGC guaranteed 

levels. 

Based on the above-referenced information and analysis, the Board of Trustees has 

determined that, upon exhaustion of all reasonable measures, the Fund cannot reasonably 

be expected to emerge from Critical Status by the end of the Rehabilitation Period. 

III. Alternatives Considered 

The Board of Trustees noted that the bargaining parties largest employers best know 

the competitive market and the Employers’ potential future in the market. Therefore it would 

be most prudent to be informed by the parties’ negotiations which have most recently yielded 

a 4.9% annual rate increase. The Trustees have reviewed that result and have no objective 

reason to reject it. Therefore, the Trustees adopt the 4.9% annual increases for the bargaining 

parties as contracts continue or expire. 

IV. Actions to be Taken by the Board of Trustees 

The Fund’s Board of Trustees will review the Fund’s Rehabilitation Plan as required by 

law, and will update the Rehabilitation Plan as required by law to enable the Fund to emerge 

Exhibit 7.09a 

Most recently updated Rehabilitation Plan (Checklist Item #40)

IBT730-0363
from critical status at a later time (than the end of the Rehabilitation Period) or to forestall 

possible insolvency. In addition, the Board of Trustees will consider all options available to the 

Fund, including but not limited to reducing Fund expenditures, that may assist the Fund in 

emerging from Critical Status. 

V. Annual Standards for Meeting the Requirements of this Rehabilitation Plan 

The Fund will make adequate progress, to the extent reasonable based on financial 

markets activity and other relevant factors, toward enabling the Fund to emerge from critical 

status at a later time (than the end of the Rehabilitation Period) or to forestall possible 

insolvency, because, based on reasonable actuarial assumptions and upon the exhaustion of all 

reasonable measures, the Fund is not expected to emerge from Critical Status by the end of the 

Rehabilitation Period. 

Exhibit 7.09a 

Most recently updated Rehabilitation Plan (Checklist Item #40)

IBT730-0364
2014 UPDATED REHABILITATION PLAN 

FOR THE

WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST FUND 

I. Introduction 

On March 31, 2014, the actuary of the Warehouse Employees Union Local No. 730 

Pension Trust Fund (the “Fund”) certified that the Fund is in Critical Status for the 2014 Plan 

Year for the purposes of the Employee Retirement Income Security Act (“ERISA”) as amended 

by the Pension Protection Act of 2006 (“PPA”). The Fund has been in Critical Status since 2009. 

As required by law, the Board of Trustees sent a Notice of Critical Status to participants, 

beneficiaries, Local 730 as the participating union, the participating employers (“Employers”), 

the Pension Benefit Guaranty Corporation and the Department of Labor, advising that the Fund 

is in Critical Status for the 2013 Plan Year and describing the consequences of being in Critical 

Status. Similar notices have been distributed annually since the Fund first entered Critical 

Status in 2009. 

As a result of being in Critical Status the Trustees adopted a Rehabilitation Plan on 

November 26, 2009 and have continued to approve the plan until this revision. The Fund’s 

Rehabilitation Period began on January 1, 2012, and was scheduled to run until December 31, 

2024 because the Fund elected to extend its ten-year Rehabilitation Period by an additional 

three years as permitted under Section 205 of the Worker, Retiree and Employer Recovery Act 

of 2008. Generally, the Fund must emerge from Critical Status by the end of its thirteen-year 

Rehabilitation Period, as defined under ERISA. However, the Fund’s Board of Trustees has 

determined that, based on reasonable actuarial assumptions and upon exhaustion of all 

reasonable measures, the Fund cannot be reasonably expected to emerge from critical status 

by the end of the Rehabilitation Period. Pursuant to ERISA Section 305(e)(3)(A)(ii), the Board of 

Trustees adopted this 2014 Rehabilitation Plan to enable the Fund to emerge from critical 

status at a time later than the end of the extended Rehabilitation Period or to forestall possible 

insolvency (as defined by ERISA Section 4245). 

This 2014 Rehabilitation Plan is based on reasonable assumptions about how the Fund’s 

assets and liabilities will change in the coming years, particularly as a result of changes in the 

Fund’s level of participation. The Board of Trustees will review the Fund’s Rehabilitation Plan 

and will update the Rehabilitation Plan as required by law to the extent necessary to enable the 

Fund to emerge from critical status at a later time than the end of the Rehabilitation Period or 

to forestall possible insolvency. In addition, the Board of Trustees will continue to consider all 

options available to the Fund, including but not limited to reducing Fund expenditures, taking 

advantage of any changes in law, or exploring a merger with another plan. The Board of 

Trustees has the sole discretion to amend and construe this Rehabilitation Plan. 

Given the findings of the Trustees described in Section II of this Rehabilitation Plan, the 

Trustees will send the entire updated Rehabilitation Plan to the Union and the Employers. The 

Board of Trustees will update this Rehabilitation Plan, as required by law. The Board of 

Trustees has the sole discretion to amend and construe this Rehabilitation Plan. 

Exhibit 7.09b 

Recently updated Rehabilitation Plan

IBT730-0365
2

II. Determination that Section 305(e)(3)(A)(ii) of ERISA Applies 

The Board of Trustees considered alternatives to enable the Fund to emerge from 

Critical Status by the end of the Rehabilitation Period. The alternatives considered were based 

on projections by the Fund’s actuary using reasonable actuarial assumptions. The Fund’s 

actuary projected that, with no further changes to the Fund’s current plan of benefits (the 

“Plan”), Employer contribution rates would have to be increased by 25% every year from when 

the current contracts expire until 2024 for the Fund to emerge from Critical Status by the end of 

the Rehabilitation Period. This would have raised the hourly contribution rate of the largest 

contributor from $5.70 per hour to $53.09 per hour. The Fund’s actuary also has projected 

that, with the elimination of all future benefit accruals and all adjustable benefits, Employer 

contribution rates would have to be increased by 18% annually for the Fund to emerge from 

Critical Status by the end of the Rehabilitation Period. This would raise the hourly contribution 

rate of the largest contributor from $5.70 per hour to $29.83 per hour. 

The Board of Trustees considered whether it would be reasonable to expect the Fund’s 

largest Employer and the Union to negotiate the increased Employer contributions necessary 

for the Fund to emerge from Critical Status prior to the end of the Rehabilitation Period. The 

Trustees concluded that the contribution rate increases and benefit decreases under the 

alternatives discussed above, as necessary for the Fund to emerge from Critical Status by the 

end of the Fund’s Rehabilitation Period, are not reasonable and likely could not be negotiated. 

Solutions in between these two extremes are not likely to occur. Therefore the possible 

outcome of collective bargaining over these types of alternatives would be negotiated 

withdrawals from the Fund. Upon a mass withdrawal, while the Employer withdrawal liability 

payments are fixed, participant benefits are at risk for further reduction if Employer liability 

payments are not collected and the Fund becomes insolvent, thus reducing benefits to the 

PBGC guaranteed levels. 

 Based on the above-referenced information and analysis, the Board of Trustees has 

determined that, upon exhaustion of all reasonable measures, the Fund cannot reasonably be 

expected to emerge from Critical Status by the end of the Rehabilitation Period. 

III. Alternatives Considered 

The Board of Trustees noted that, since the contributions of the Fund’s largest Employer 

makes up over 50% of the Fund’s contribution income, and that the bargaining parties best 

know the competitive market and the employer’s potential future in the market, it would be 

most prudent to be informed by the parties’ negotiations. The negotiation with the largest 

Employer yielded a 4.9% annual rate increase. The Trustees have reviewed that result and have 

no objective reason to reject it. Therefore, the Trustees for this Plan adopt the 4.9% annual 

increase for the remaining bargaining parties as contracts expire. 

Exhibit 7.09b 

Recently updated Rehabilitation Plan

IBT730-0366
3

IV. Actions to be Taken by the Board of Trustees

The Fund’s Board of Trustees will review the Fund’s Rehabilitation Plan as required by 

law, and will update the Rehabilitation Plan as required by law to enable the Fund to emerge 

from critical status at a later time (than the end of the Rehabilitation Period) or to forestall 

possible insolvency. In addition, the Board of Trustees will consider all options available to the 

Fund, including but not limited to reducing Fund expenditures, that may assist the Fund in 

emerging from Critical Status. 

V. Annual Standards for Meeting the Requirements of this Rehabilitation Plan

 The Fund will make adequate progress, to the extent reasonable based on financial 

markets activity and other relevant factors, toward enabling the Fund to will enable the Fund to 

emerge from critical status at a later time (than the end of the Rehabilitation Period) or to 

forestall possible insolvency, because, based on reasonable actuarial assumptions and upon the 

exhaustion of all reasonable measures, the Fund is not expected to emerge from Critical Status 

by the end of the Rehabilitation Period. 

Exhibit 7.09b 

Recently updated Rehabilitation Plan

IBT730-0367
Warehouse Employees Union 

Local No. 730 Pension Trust 

Actuarial Valuation Report 

as of January 1, 2019 

Produced by Cheiron 

March 2020

IBT730-0368
TABLE OF CONTENTS 

Section Page 

Letter of Transmittal .................................................................................................................................................................................... i 

Foreword ..................................................................................................................................................................................................... ii 

Section I Summary ..............................................................................................................................................................................1

Section II Risk Analysis ......................................................................................................................................................................6

Section III Assets ..................................................................................................................................................................................9

Section IV Liabilities ...........................................................................................................................................................................12

Section V Contributions......................................................................................................................................................................16

Section VI Withdrawal Liability ..........................................................................................................................................................25

Section VII FASB ASC 960 Disclosures ..............................................................................................................................................26

Appendices 

Appendix A Membership Information ...................................................................................................................................................27

Appendix B Summary of Major Plan Provisions ...................................................................................................................................30

Appendix C Actuarial Assumptions and Methods .................................................................................................................................34

IBT730-0369
March 02, 2020

Warehouse Employees Union 

Local No. 730 Pension Trust 

911 Ridgebrook Road 

Sparks, Maryland 22102 

Dear Trustees: 

At your request, we have performed the January 1, 2019 Actuarial Valuation of the Warehouse Employees Union Local No. 730 

Pension Trust (the “Fund”). This report contains information on the Fund’s assets and liabilities and discloses contribution levels, 

including the minimum required amount as mandated by Federal law. This report is for the use of the Board of Trustees and its

auditors in preparing financial reports in accordance with applicable law and accounting requirements. 

Your attention is called to the introductory section in which we refer to the general approach employed in the preparation of this 

report. We also comment on the sources and reliability of both the data and the actuarial assumptions on which our findings are based. 

Those comments are the basis for our certification that this report is complete to the best of our knowledge and belief. The results of 

this report are only applicable to the 2019 Plan Year. Future results may differ significantly from the current plan year presented in 

this report due to such factors as the following: plan experience differing from that anticipated by the assumptions; changes in 

assumptions; and changes in plan provisions or applicable law. 

This report and its contents have been prepared in accordance with generally recognized and accepted actuarial principles and 

practices which are consistent with the Code of Professional Conduct and applicable Actuarial Standards of Practice set out by the 

Actuarial Standards Board. Furthermore, as credentialed actuaries we meet the Qualification Standards of the American Academy of 

Actuaries to render the opinion contained in this report. This report does not address any contractual or legal issues. We are not 

attorneys, and our firm does not provide any legal services or advice. 

This report was prepared exclusively for the Fund for the purposes described herein. Other users of this valuation report are not 

intended users as defined in the Actuarial Standards of Practice, and Cheiron assumes no duty or liability to any other users. 

Sincerely, 

SA, MAAA, EA , EA

Principal Consulting Actuary Consulting Actuary

IBT730-0370
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

FOREWORD 

ii

Cheiron has performed the Actuarial Valuation of the 

Warehouse Employees Union Local No. 730 Pension Trust as 

of January 1, 2019. The purpose of this report is to: 

1) Measure and disclose, as of the valuation date, the 

financial condition of the Fund; 

2) Provide specific information and documentation required 

by the Federal Government and the auditors of the Fund; 

and 

3) Review past and expected trends in the financial 

conditions of the Fund. 

An actuarial valuation establishes and analyzes fund assets, 

liabilities and contributions on a consistent basis, and traces the 

progress of both from one year to the next. It includes 

measurement of the fund’s investment performance as well as 

an analysis of actuarial liability gains and losses. 

Section I presents a summary of the key valuation results, 

general comments about the results, a review of historical 

trends including assets versus liabilities, minimum funding, 

participation and cash flows, and projection scenarios. 

Section II discloses specific risks that may significantly affect 

the Plan’s future financial condition.

Section III contains exhibits relating to the valuation of assets. 

Section IV shows the various measures of liabilities. 

Section V shows the development of the minimum and 

maximum contributions. 

Section VI provides the calculation of unfunded vested 

benefits for withdrawal liability purposes as of January 1, 2019 

that would be allocated to employers that withdrew during the 

2019 calendar year. 

Section VII provides the FASB Accounting Standard 

Codification (ASC) 960 Disclosure required by the Fund’s 

auditor. 

The appendices to this report contain a summary of the Fund’s 

membership at the valuation date, a summary of the major 

provisions of the Fund, and the actuarial methods and 

assumptions used in the valuation. 

In preparing our report, we relied on information (some oral 

and some written) supplied by Associated Administrators, LLC 

and Novak Francella, LLC. This information includes, but is 

not limited to, the fund provisions, employee data, and 

financial information. We performed an informal examination 

of the obvious characteristics of the data for reasonableness 

and consistency in accordance with Actuarial Standard of 

Practice No. 23. 

The actuarial assumptions reflect our understanding of the 

likely future experience of the Fund and the assumptions, taken 

individually, represent our best estimate for the future 

experience of the Fund. Future experience may differ 

significantly from the current results presented in this report 

due to such factors as the following: plan experience differing 

from that anticipated by the assumptions; changes in 

assumptions; and changes in plan provisions or applicable law. 

Please note this valuation was prepared using census data and 

financial information as of the valuation date, January 1, 2019 

and events following that date are not reflected. 

IBT730-0371
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION I – SUMMARY 

1

The table below sets out the principal results of this year’s valuation and compares them to last year’s results. Both years reflect the 

Board adopted funding relief under Internal Revenue Code Sections 431(d) and 431(b)(8). 

Table I-1

Summary of Principal Results

January 1, 2018 January 1, 2019 Change

Participant Counts

Actives 368 ( 18.2%) 301

Terminated Vesteds 736 738 0.3% 

In Pay Status 978 1,001 2.4% 

Total 2,082 2,040 ( 2.0%)

Financial Information

Market Value of Assets $ 167,271,666 $ 153,296,273 ( 8.4%)

Actuarial Value of Assets 160,515,367 158,236,069 ( 1.4%)

AVA as a % of MVA 96.0% 103.2%

Entry Age Actuarial Liability $ 278,076,443 $ 279,273,711 0.4% 

Surplus (Unfunded Actuarial Liability) (117,561,076) (121,037,642) N/A

Present Value of Accrued Benefits/Accrued Liability 274,037,389 $ $ 275,242,089 0.4% 

Accrued Benefit Surplus (Unfunded) (113,522,022) (117,006,020) N/A

Accrued Benefit Funding Ratio (AVA Basis) 58.6% 57.5% N/A

Present Value of Vested Benefits $ 270,920,799 $ 272,863,143 0.7% 

Vested Benefit Surplus (Unfunded) (103,649,133) (119,566,870) N/A

Vested Benefit Funding Ratio (MVA Basis) 61.7% 56.2% N/A

Contributions and Cash Flows

ERISA Credit Balance (Beginning of Year) $ (16,958,696) $ (25,845,291) 52.4% 

Employer Contributions (actual/estimated ) 6,123,435 4,536,702 ( 25.9%)

ERISA Minimum Funding before Credit Balance 13,893,560 13,729,626 ( 1.2%)

Prior Year Benefit Payouts $ 18,442,083 $ 19,391,415 5.1% 

Prior Year Administrative Expenses 356,261 316,151 ( 11.3%)

Prior Year Total Investment Income (Net) 23,989,967 (391,262) N/A

IBT730-0372
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION I – SUMMARY 

2

The following is an analysis of the Fund’s recent past 

performance followed by historical results for the last ten 

years. After that, projections of future results are shown.

General Comments 

Investment and liability experience and their effect on future 

costs traditionally have been the focus of year-to-year analyses.

 The Market Value of Assets (MVA) returned -0.24% 

during the year ending December 31, 2018. The total 

actuarial investment loss (the difference between actual and 

expected returns) was $13.2 million. 

 For long-term planning and especially for minimum 

funding requirements, the Fund develops an Actuarial 

Value of Assets (AVA) to smooth investment gains and 

losses over time. Due to the continued phase-in of historical 

investment gains and losses of the past five years, the rate 

of return on the AVA was 7.38%, resulting in an actuarial 

loss of $0.9 million. 

 For minimum funding requirements, the Fund’s actuarial 

liability is determined using the Entry Age Normal Cost 

Method. Although the liability increased by $1.2 million, it 

increased less than expected, resulting in a liability 

experience gain of $1.7 million. 

 The end of year minimum required contribution, before 

taking into account the credit balance, decreased from 

$13.9 million to $13.7 million. The decrease was mostly 

attributable to the $1.7 million liability gain even though it 

was partially offset by the $0.9 million AVA loss. This 

added an annual amortization credit of $0.1 million.

 During the 2018 Plan Year, the Fund’s funding deficiency 

increased from $17.0 million to $25.8 million. Due to the 

Pension Protection Act of 2006 (PPA), no excise tax is due 

provided the Fund has a valid Rehabilitation Plan and all 

employers are complying with it. 

PPA added a significant layer of new considerations related to 

the Fund’s PPA funded status. 

 For 2019, the Fund was certified as “Critical and 

Declining” under PPA as amended. This was caused by the 

current funding deficiencies and the projected insolvency

within the next 12 years. The PPA status is re-determined 

annually. 

 The Fund’s funding ratio for PPA purposes is based on the 

accrued liability determined using the Unit Credit Cost 

Method. It decreased from 58.6% to 57.5% primarily 

because contributions are less than the benefit payments 

and expenses, leading to a negative cash flow of 

approximately 8% of the assets.

 Despite the $1.7 million liability gain, for funding 

purposes, the Fund’s accrued liabilities used in the PPA 

funding ratio grew by $1.2 million during the 2018 Plan 

Year. 

IBT730-0373
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION I – SUMMARY 

3

 The Board of Trustees of the Fund first adopted a 

Rehabilitation Plan (RP) on November 26, 2009. The 

Rehabilitation Plan is applicable for collective bargaining 

agreements and participation agreements renewed or 

extended after December 25, 2009. The Fund’s 

Rehabilitation Period began on January 1, 2012. 

After the initial adoption of the Rehabilitation Plan, 

subsequent employer withdrawals resulted in a 

deterioration of the funding of the plan. Consequently, in 

2014 the Trustees updated the Rehabilitation and adopted a 

“reasonable measures to forestall insolvency” approach for 

PPA compliance. As a result of this update and annual 

reviews of the RP in light of then current conditions, all 

future contracts must include 4.9% annually compounded

contribution increases. 

 In February 2010, the Trustees took a five-year extension 

of the Fund’s amortization bases as of January 1, 2009 

under Section 431(d) of the Code. The net impact on the 

Funding Standard Account is an $18.9 million smaller 

funding deficiency, as of January 1, 2019, from what it 

would be without the Section 431(d) extension. Unless 

indicated otherwise, throughout this report, the terms credit 

balance and funding deficiency refer to the amounts 

reflecting the 431(d) extension.

 The Unfunded Vested Benefits (UVB) on a market value 

basis increased from $103.6 million to $119.6 million. 

Under the provisions of the Multiemployer Pension Plan 

Amendment Act of 1980 (MPPAA) if the vested benefit 

liabilities exceed fund assets, an assessment of Withdrawal 

Liability may be made to any employer withdrawing from 

the Fund. 

Historical Summary 

It is important to take a step back from the results and view 

them in the context of the Plan’s recent history. Below are two 

charts which display key results in the valuations of the last ten 

years.

Assets & Liabilities: The following graph compares historical 

assets and liabilities. The gold bars represent the present value 

of vested benefits while the red bars add the additional 

non-vested benefits making up the Accrued Liability. The blue 

line is the Market Value of Assets and the green line is the 

Actuarial Value of Assets. The percentages shown on top of 

the bars represent the Fund’s PPA funding ratio (AVA as a 

percentage of Accrued Liabilities). 

88.3%

81.8%

69.0% 70.2% 69.7% 67.2% 63.5% 61.0% 58.6% 57.5%

$0

$50

$100

$150

$200

$250

$300

$350

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Millions

Vested Liability Accrued (PPA) Liability

Market Value of Assets Actuarial Value of Assets

IBT730-0374
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION I – SUMMARY 

4

Minimum Funding: The next graph shows the Credit Balance 

(green area) which is the accumulated contributions in excess 

of the Minimum Required Contribution before the Credit 

Balance (red line), and the Actual Contributions (yellow line). 

-$30

-$20

-$10

$0

$10

$20

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Millions

Credit Balance Minimum Required Contribution

Actual / Expected Contribution

On average, the contributions for the last ten years have been 

significantly lower than the minimum required contribution.

This has caused a steep decline in the credit balance since 2012 

leading to a funding deficiency beginning in 2017. 

Contributions, including expected Withdrawal Liability 

payments, are expected to again fall short of the minimum 

required contribution next year. 

Participation: The following graph shows the participation of 

the Fund at successive valuation dates. The numbers above 

each bar represent the number of inactive members to active 

members (i.e., support ratio) at each valuation date. The 

support ratio increased significantly as of January 1, 2013 due 

to the withdrawal of two participating employers (Jessup and 

McKesson) during 2012. Another increase is noticeable this 

year as a result of the 2018 withdrawal of Adams Burch. 

713 768 831 859 882 926 946 946 978 1,001

589 600 662

861 841 799 796 772 736 738

941 925 816 444 413 416 406 379 368 301

1.38 1.48 1.83

3.87 4.17 4.15 4.29 4.53 4.66 5.78

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Retirees Terminated Vested Actives

Further declines in active membership will reduce future 

contributions and increase the negative cash flow, which will 

put more pressure on the overall plan funding. 

IBT730-0375
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION I – SUMMARY 

5

Cash Flow: The following graph shows the Fund’s cash flow, 

contributions less benefit payments and expenses, at successive 

valuation dates. This is a critical measure, as it reflects the 

ability to have funds available to meet benefit payments 

without having to make difficult investment decisions, 

especially during volatile markets. 

The main consequence for a fund with negative cash flow is 

that the impact of market fluctuations will be more severe. This 

is because assets will have to be used to pay benefits in down 

markets. This means there will be less principal left to benefit 

from later favorable investment experience. 

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

($50)

($40)

($30)

($20)

($10)

$0

$10

$20

$30

$40

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Millions

Plan Year Ending December 31,

Contributions Benefits & Expenses

Investment Return Net Cash Flow

Net Cash Flow %

Future Outlook 

In this section we move away from viewing a single year’s 

results or historical trends and focus on the future of the Fund. 

In light of the Fund’s “Critical and Declining” classification, 

this future outlook focuses on the projection of assets. 

The following projection assumes participation remains 

constant, contributions increase 4.9% annually, the expected 

Withdrawal Liability payments from McKesson Drug continue, 

and all of the assumptions set out in Appendix C are realized 

including the return of 8% per year. 

Under this scenario, the projection shows the Fund will exhaust 

its assets during 2030. This is one year earlier than last year’s 

projection showed. This decline is mainly the result of the 

return on the Market Value of Assets during 2018 falling short 

of the expected 8%. 

57% 52% 45% 37% 27% 13% 0% 0% 0% 0% 0%

$0

$50

$100

$150

$200

$250

$300

2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 Millions

Safe Endangered Seriously Endg Critical AVA MVA

IBT730-0376
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION II – RISK ANALYSIS 

6

Actuarial valuations are based on a set of assumptions about 

future economic and demographic experience. In our opinion, 

the assumptions we are using are our best estimate of the 

Fund’s long-term future experience. 

Nonetheless, it is important to realize that future experience 

could deviate, sometimes significantly, from that predicted by 

our assumptions. This deviation of actual experience compared 

to expected experience can affect the future viability of the 

Fund and must be monitored closely. 

This section of the report is intended to identify the primary 

risks to this fund, provide some background information about 

those risks and the factors that influence them, and provide an 

assessment of them. 

Identification of Risks 

The primary risk that every plan faces is future insolvency. 

This is the risk that its current assets and future contributions 

are or will be inadequate to fund all plan benefits. For some 

plans, this risk is small. For others it is significant. This 

insolvency risk can manifest itself in several different ways: 

 An impending insolvency date, a near term date when its 

assets will be completely depleted, 

 Funded ratios that are declining, especially if they are 

currently less than 100%, and 

 Funded ratios that are never expected to exceed 100%. 

As shown in the previous section, under the baseline projection 

scenario, the Fund is projected to become insolvent during the 

2030 plan year. Once the Fund becomes insolvent, benefits are 

required to be reduced to the PBGC guaranteed level. While 

this will have little or no impact for some participants, it could 

result in significant reductions in the monthly benefit amount 

being paid for others. 

The remainder of this section focuses on how the potential 

insolvency date could change thereby changing the amount of 

time before such benefit cuts would go into effect. The key 

items that will impact this date are: 

 Investment returns, 

 Contributions, and 

 Withdrawal Liability payments. 

Other risk factors that are not explicitly identified may also 

turn out to be important. 

Investment Risk is the potential for investment returns to be 

different than expected. The current assumption for investment 

returns is 8.00% per year net of investment expenses. This is a 

long-term expectation. In any given year, investment returns 

can be greater than or less than this assumption. However, over 

time the geometric mean of the actual investment returns over 

time should be close to the assumption. 

Lower investment returns than anticipated will decrease the 

expected future funding ratio and increase the FSA 

contribution requirement which will lower the credit balance in 

the future. 

The potential magnitude and volatility of future investment 

returns is influenced by economic conditions and the Fund’s

IBT730-0377
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION II – RISK ANALYSIS 

7

asset allocation. A plan with an investment portfolio generating 

higher expected rates of return may anticipate lower future 

contribution requirements; however, this approach also comes 

with higher amounts of volatility. 

Due to the significant underfunding and large negative net cash 

flow, investment returns have a much less significant impact 

upon the projected insolvency date. The following projection 

illustrates the impact of investment returns by assuming a 0% 

return going forward. Under this scenario, the Fund is 

projected to be insolvent during the 2026 plan year, four years 

earlier than the baseline. 

57% 49% 35% 18% 0% 0% 0% 0% 0% 0% 0%

$0

$50

$100

$150

$200

$250

$300

2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 Millions

Safe Endangered Seriously Endg Critical AVA MVA

Alternatively, if the Fund were to earn 16% for the 2019 plan 

year, the insolvency date is pushed back to 2031, as shown in 

the following projection. 

57% 54% 49% 44% 35% 23% 8% 0% 0% 0% 0%

$0

$50

$100

$150

$200

$250

$300

2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 Millions

Safe Endangered Seriously Endg Critical AVA MVA

Contribution and Withdrawal Liability Payment risk is the 

potential for actual future money coming into the Fund to 

deviate from what is expected in the baseline projection. In 

particular, additional future withdrawals can reduce the regular 

contribution income. Additionally, bankruptcies can impact the 

willingness or ability of previously withdrawn employers to 

make their required withdrawal liability payments to the Fund. 

The following projection illustrates the contribution and 

withdrawal liability risk by showing the impact of fully 

eliminating all such income. In this projection the Fund is 

projected to be insolvent during the 2027 plan year. 

IBT730-0378
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION II – RISK ANALYSIS 

8

The combination of no investment returns and the elimination 

of all future contribution and withdrawal liability income 

would move the insolvency into the 2025 plan year, as shown 

below. 

IBT730-0379
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION III – ASSETS 

9

Assets at Market Value 

Market values represent “snap-shot” or “cash-out” values, 

which provide the principal basis for measuring financial 

performance from one year to the next. 

Table III-1

Statement of Assets at Market Value, December 31

2017 2018

Invested Assets

Common Stocks $ 46,974,592 $ 34,941,233

U.S. Government Agencies Notes 

and Bonds 1,769,586 860,220

Corporate Notes and Bonds 3,918,005 1,721,131

Limited Partnerships & DFEs 85,515,091 82,762,206

Common Collective Trusts 25,753,271 21,110,554

Temporary Investments 1,521,708 6,942,729

Other (Fund of Funds) 101,069 0

Total Investments: $ 165,553,322 $ 148,338,073

Other Assets

Employer Contributions Receivable 340,118 378,288

Accrued Interest and Dividends 79,748 74,708

Other Receivables 1,996 5,639

Prepaid Expenses 20,813 21,668

Cash 1,566,858 1,646,727

Accounts Payable (291,189) (125,220)

Accounts Receivable 0 2,956,390

Total Non-Invested Assets: $ 1,718,344 $ 4,958,200

Net Assets Available for Benefits $ 167,271,666 $ 153,296,273

The table above shows the market value of assets taken into 

account for funding purposes. These values exclude receivable 

withdrawal liability payments because they are not 

“receivable” as defined by the IRS. At December 31, 2018, the 

amount including this receivable shown in the audited financial 

statement was $159,289,655.

Changes in Market Value

The components of asset change are: 

 Contributions 

 Benefit payments 

 Expenses 

 Investment income (realized and unrealized) 

The specific changes during 2018 are presented below. 

Table III-2 *

Changes in Market Values

Value of Assets - January 1, 2018 $ 167,271,666

Employer Contributions 3,759,761

Withdrawal Liability Payments 2,363,674

Investment Return (Gross) 909,732

Benefit Payments (19,391,415)

Administrative Expenses (316,151)

Investment Expenses (1,300,994)

Value of Assets - January 1, 2019 $ 153,296,273

* On this table $1,000 of other income is classed as investment income.

IBT730-0380
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION III – ASSETS 

10

Investment Performance 

The following table calculates the actuarial investment 

gain/loss and the return for the plan year on a market value 

basis. The return is an appropriate measure for comparing the 

actual asset performance to the long-term 8% assumption. 

Table III-3

Change in Market Value of Assets

Item Market Value

January 1, 2018 value $ 167,271,666

2018 Employer Contributions 3,759,761

2018 Withdrawal Liability Payments 2,363,674

2018 Benefit Payments (19,391,415)

Actual Administrative Expenses (316,151)

Expected Investment Earnings (8%) 12,848,821

Expected Value December 31, 2018 166,536,356 $ 

Investment Gain / (Loss) (13,240,083)

January 1, 2019 value $ 153,296,273

Investment Return -0.24%

Assets at Actuarial Value 

For long-term planning, actuaries developed an actuarial value 

of assets using smoothing techniques to mitigate the effects of 

short-term volatility exhibited by the capital markets. The asset 

valuation method, adopted with the 2007 valuation, phases in 

actuarial investment gains and losses over five years. The 

actuarial value of assets is then constrained, if necessary, so 

that it is not more than 120% of the market value and is not less 

than 80% of the market value. The asset valuation method is 

described more fully in Appendix C. 

The table below shows the development of the actuarial value 

of assets. 

Table III-4

Development of Actuarial Value of Assets

Market Value of Assets as of January 1, 2019 $ 153,296,273

Plan Investment Percent Percent Amount

Year Gains / (Losses) Recognized Deferred Deferred

12/31/2014 (78,622) 100% 0% 0

12/31/2015 (5,127,301) 80% 20% (1,025,460)

12/31/2016 (1,210,474) 60% 40% (484,190)

12/31/2017 11,936,534 40% 60% 7,161,920

12/31/2018 (13,240,083) 20% 80% (10,592,066)

Total $ (4,939,796)

Preliminary Actuarial Value of Assets January 1, 2019 $ 158,236,069

120% of MV, upper limit for actuarial value 183,955,528

80% of MV, lower limit for actuarial value 122,637,018

Actuarial Value of Assets January 1, 2019 $ 158,236,069

- as a percent of Market Value of Assets 103.2%

IBT730-0381
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION III – ASSETS 

11

Asset Gain/(Loss) 

The following table calculates the investment gain/loss and the 

return for the plan year on an actuarial value basis. This 

gain/loss is one component of the Fund’s overall actuarial 

experience gain/loss, which is recognized for minimum 

funding requirements. 

Over 2018, the Fund’s assets at actuarial value produced an 

actuarial loss of $944,726.

Table III-5

Change in Actuarial Value of Assets

Item Actuarial Value

January 1, 2018 value $ 160,515,367

2018 Employer Contributions 3,759,761

2018 Withdrawal Liability Payments 2,363,674

2018 Benefit Payments (19,391,415)

Expected Administrative Expenses (358,623)

Expected Investment Earnings (8%) 12,292,031

Expected Value December 31, 2018 $ 159,180,795

Investment Gain / (Loss) (944,726)

January 1, 2019 value $ 158,236,069

Investment Return 7.38%

IBT730-0382
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION IV – LIABILITIES 

12

In this section, we present detailed information on the Fund’s 

liabilities including:

 Disclosure of the Fund’s liabilities at January 1, 2018 and 

January 1, 2019; and 

 Statement of changes in these liabilities during the year. 

Disclosure 

Several types of liabilities are calculated and presented in this 

report. Each type is distinguished by the purpose for which 

they are used. 

 Actuarial Liabilities: Used in determining minimum 

funding requirements, maximum tax-deductible 

contributions, and long-term funding targets, this amount is 

calculated using the Entry Age Normal Cost Method.

 Accrued Liabilities: Used for communicating the current 

levels of liabilities, these liabilities represent the total 

amount of money needed to fully pay off all future 

obligations of the Fund using funding assumptions and 

assuming no further accrual of benefits. They are 

determined using the Unit Credit Cost Method.

These liabilities are used for determining funded status 

under PPA. The law requires them to be compared to the 

actuarial value of assets to measure funded status. They can 

also be used to establish comparative benchmarks with 

other plans. 

The accrued liabilities must also be included in the Fund’s 

financial statement for accounting disclosure purposes 

(FASB ASC Topic No. 960). However, the accounting 

disclosure must also include the present value of future 

administrative expenses. This sum is called the Present 

Value of Accumulated Benefits. 

 Vested Liabilities: Used for administrative purposes in 

determining employer withdrawal liability, this liability 

represents that portion of the accrued liabilities, which are 

vested. 

 Current Liabilities: Used for Federal Government 

compliance purposes, the calculation of this liability is 

defined by federal regulations and is used to determine 

maximum allowable tax-deductible contributions. 

The table on the following page discloses each of these 

liabilities for the current valuation and the prior one. With 

respect to each disclosure, a subtraction of the appropriate 

value of fund assets yields, for each respective type, a surplus 

or unfunded liability.

IBT730-0383
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION IV – LIABILITIES 

13

Table IV-1

Liabilities/Net Surplus (Unfunded)

January 1, 2018 January 1, 2019

ACTUARIAL LIABILITY

Active Participant Benefits $ 48,340,866 $ 47,049,955

Retiree and Inactive Benefits 229,735,577 232,223,756

Actuarial Liability $ 278,076,443 $ 279,273,711

Actuarial Value of Assets 160,515,367 158,236,069

Net Surplus (Unfunded) $ (117,561,076) $ (121,037,642)

ACCRUED LIABILITY 

Active Participant Benefits $ 44,301,812 $ 43,018,333

Retiree and Inactive Benefits 229,735,577 232,223,756

Accrued Liability $ 274,037,389 $ 275,242,089

Actuarial Value of Assets 160,515,367 158,236,069

Net Surplus (Unfunded) $ (113,522,022) $ (117,006,020)

VESTED LIABILITY

Accrued Liability $ 274,037,389 $ 275,242,089

Less Present Value of Non-Vested Benefits 3,116,590 2,378,946

Vested Liability $ 270,920,799 $ 272,863,143

Actuarial Value of Assets 160,515,367 158,236,069

Net Surplus (Unfunded) $ (110,405,432) $ (114,627,074)

CURRENT LIABILITY (RPA 1994)

Current Liability $ 486,394,917 $ 474,757,777

Market Value of Assets 167,271,666 153,296,273

Net Surplus (Unfunded) $ (319,123,251) $ (321,461,504)

IBT730-0384
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION IV – LIABILITIES 

14

Allocation of Liabilities by Type

The Fund’s participants may qualify for a benefit upon death, termination, and disability as well as upon retirement. The value of the 

liabilities arising from each of these sources is shown in the following table. 

Table IV-2

Allocation of Liabilities by Type

Benefit Type Retirement Termination Death Expenses Total

Entry Age Normal Cost $ 533,949 $ 166,339 $ 7,757 $ 353,198 $ 1,061,243

Entry Age Actuarial Liability

Actives $ 46,620,217 $ 178,051 $ 251,687 $ 47,049,955 0 $ 

Terminated Vesteds 80,586,231 0 0 80,586,231 0 

Retirees and Beneficiaries 145,708,786 0 5,928,739 0 151,637,525

Total $ 192,329,003 $ 80,764,282 $ 6,180,426 $ 279,273,711 0 $ 

Current Liability Normal Cost $ 2,260,729 $ 237,323 $ 16,004 $ 2,514,056 0 $ 

Current Liability 

Actives $ 79,736,357 $ 3,577,335 $ 443,210 $ 83,756,902 0 $ 

Terminated Vesteds 157,595,714 0 0 157,595,714 0 

Retirees and Beneficiaries 224,322,269 0 9,082,892 0 233,405,161

Total $ 304,058,626 $ 161,173,049 $ 9,526,102 $ 474,757,777 0 $ 

Vested Current Liability 

Actives $ 36,285,054 $ 43,613,774 $ 439,073 $ 80,337,901 0 $ 

Terminated Vesteds 157,595,714 0 0 157,595,714 0 

Retirees and Beneficiaries 224,322,269 0 9,082,892 0 233,405,161

Total $ 260,607,323 $ 201,209,488 $ 9,521,965 $ 471,338,776 0 $ 

IBT730-0385
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION IV – LIABILITIES 

15

Changes in Liabilities 

Each of the liabilities shown in the table below is subject to change at successive valuations as the experience of the Fund varies from 

that assumed in the valuation. The liabilities may change for any of several reasons, including: 

 New hires since the last valuation 

 Benefits accrued since the last valuation 

 Plan amendments 

 Interest on liabilities 

 Benefits paid to retirees 

 Participants leaving employment at rates different from expected 

 Changes in actuarial assumptions 

 Changes in actuarial methods 

Table IV-3

Reconciliation of Liabilities

Actuarial 

Liability

Accrued 

Liability

Liabilities as of January 1, 2018 $ 278,076,443 $ 274,037,389

Liabilities as of January 1, 2019 $ 279,273,711 $ 275,242,089

Liability Increase (Decrease) $ 1,197,268 $ 1,204,700

Change Due due to:

 Plan Amendment $ 0 $ 0

 Assumption Change 0 0

 Accrual of Benefits 769,678 1,163,200

 Passage of Time (Interest less benefits paid) 2,155,540 1,863,898

 Other Sources 0 0

 Actuarial Liability (Gain) / Loss (1,727,950) (1,822,398)

Total Change $ 1,197,268 $ 1,204,700

IBT730-0386
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

16

In this section, we present detailed information on the Fund’s 

contributions from two perspectives: 

 Actuarially determined contributions or actuarial cost and 

 Government Limits, which could affect the above. 

Actuarial Determined Contributions 

For this Fund, the cost method used to calculate the actuarially 

determined contribution is the Entry Age Normal Cost 

Method. The actuarially determined contribution or cost is 

determined in two parts. 

The first part is the Entry Age Normal Cost. This is the level 

cost of providing the benefits promised by the Fund to each 

individual participant in service at the valuation date assuming 

that contributions are made over the period of the participant’s 

working life. The normal cost includes a provision for the 

Fund’s expenses. 

The second part is an amortization payment to pay off the 

unfunded actuarial liability. The unfunded actuarial liability is 

the difference between the actuarial assets of the Fund at the 

valuation date and the assets the Fund should hold as 

determined by the actuarial cost method. The amortization 

payment is determined using the amortization schedule 

established by the IRS minimum funding rules. 

Government Limits

ERISA and the IRS tax code place various limits on the 

contributions made to qualified pension plans. The limits 

impact the minimum that must be paid, the maximum that can 

be deducted and the timing of contributions. Pension plans are 

required to retain an Enrolled Actuary to report on the progress 

of funding through completion of Schedule MB to Form 5500 

on an annual basis. The actuarially determined 

contribution/cost for 2019 is shown in the following table 

compared to the various Government Limits and the estimated 

employer contributions (including withdrawal liability 

payments). 

The table below summarizes the results of the tables on the 

following pages. It also shows the per capita actuarially 

determined contribution/actuarial cost and per capita expected 

contribution. The cost is almost three times the expected 

contribution. 

Table V-1

Contributions for 2019

Actuarially Determined Contribution

Entry Age Normal Cost $ 708,045

Administrative Expense 353,198

Amortization Payment 11,651,374

Interest to End of Year 1,017,009

Total $ 13,729,626

Government Limits

Maximum Deductible Contribution $ 509,636,618

Minimum Required Contribution (before Credit Balance) 13,729,626 $ 

Funding Deficiency (with interest to End of Year) $ 27,912,914

Minimum Contribution (after Credit Balance) $ 41,642,540

Employer Contributions with Interest* $ 4,714,679

Count of Active Participants 301

Per Capita Actuarial Cost $ 45,613

Per Capita Contribution $ 15,663

* Estimated contributions of $4,536,702 (including interest to end of year)

IBT730-0387
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

17

Table V-2

Funding Standard Account for 2018 and 2019 Plan Years

2018 2019 

1. Charges For Plan Year

a. Funding Deficiency $ 16,958,696 $ 25,845,291

b. Normal Cost with Expenses 1,128,301 1,061,243

c. Amortization Charges 20,988,707 20,988,701

d. Interest on a. and b. to Year End 3,126,056 3,831,619

e. Additional Funding Charge N/A N/A

f. Interest Charge due to Late Quarterly Contributions N/A N/A

g. Total Charges $ 42,201,760 $ 51,726,854

2. Credits For Plan Year

a. Prior Year Credit Balance $ 0 $ 0

b. Employer Contributions (actual/expected ) 6,123,435 4,536,702

c. Amortization Credits 9,252,601 9,337,327

d. Interest on a., b., and c. to Year End 980,433 924,963

e. Full Funding Limit Credit 0 0

f. Total Credits $ 16,356,469 $ 14,798,992

3. Credit Balance at End of Year [2. - 1., not less than $0] $ 0 $ 0

4. Funding Deficiency at End of Year [1. – 2., not less than $0] $ 25,845,291 $ 36,927,862

IBT730-0388
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

18

Table V-3

Calculation of the Maximum Deductible Contribution

for the Plan Year Starting January 1, 2019

1. "Fresh Start" Method

a. Normal Cost with Expenses $ 1,061,243

b. Net Charge to Amortize Unfunded Actuarial Liability Over 10 years 16,702,017 

c. Interest on a. and b. 1,421,061

d. Total 19,184,321

e. Minimum Required Contribution at Year End 41,642,540

f. Larger of d. and e. 41,642,540

g. Full Funding Limitation as of Year End 274,961,343

h. Regular Maximum Deductible Contribution, lesser of f. and g. $ 41,642,540

2. 140% of Current Liability Calculation*

a. RPA 1994 Current Liability at Start of Year $ 474,757,777

b. Present Value of Benefits Estimated to Accrue during Year 2,514,056

c. Expected Benefit Payments 22,188,869

d. Net Interest on a., b. and c. at Current Liability Interest Rate 14,267,586

e. Expected Current Liability at End of Year, [a. + b. – c. + d.] 469,350,550

f. 140% of e. 657,090,770

g. Actuarial Value of Assets 158,236,069

h. Expected Expenses at Start of Year 353,198

i. Net Interest on c., g. and h. at Valuation Interest Rate 11,760,150

j. Estimated Value of Assets, [g. – c. – h. + i.] 147,454,152

k. Unfunded Current Liability at Year End, [f. – j.] $ 509,636,618

3. Maximum Deductible Contribution at Year End, greater of 1. and 2. $ 509,636,618

* Based on combined mortality specified in Reg. §1.412(l)(7)-1 and an interest rate of 3.06%.

IBT730-0389
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

19

Table V-4

Development of Actuarial Gain/(Loss)

for the Year Ended December 31, 2018

1. Unfunded Actuarial Liability at Start of Year $ 117,561,076

2. Normal Cost (with expenses) at Start of Year $ 1,128,301

3. Interest on 1. and 2. to End of Year $ 9,495,150

4. Employer Contributions for Year $ 6,123,435

5. Interest on 4. to End of Year $ 240,226

6. Change in Unfunded Actuarial Liability Due to Changes in Plan Design $ 0

7. Change in Unfunded Actuarial Liability Due to Changes in Assumptions $ 0

8. Expected Unfunded Actuarial Liability at End of Year $ 121,820,866

[1. + 2. + 3. – 4. - 5. + 6.+ 7.]

9. Actual Unfunded Actuarial Liability at End of Year, not less than zero $ 121,037,642

10. Actuarial Gain / (Loss) [8. – 9.] $ 783,224

(a) Liability Gain / (Loss) $ 1,727,950

(b) Asset Gain / (Loss) $ (944,726)

IBT730-0390
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

20

Table V-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2019

1/1/2019 Remaining Beginning of Year

Date Outstanding Amortization Amortization

Type of Base Established Balance Years 1 Amount

CHARGES

1. Change in Actuarial Cost Method 01/01/1984 542,706 $ 2 $ 281,792

2. Increase in Employer Contributions 01/01/1985 62,897 1 62,897

3. Increase in Employer Contributions 01/01/1986 5,961 2 3,094

4. Plan Amendments 01/01/1986 214,417 2 111,332

5. Increase in Employer Contributions 01/01/1987 256,593 3 92,192

6. Change in Actuarial Assumptions 01/01/1988 28,688 4 8,020

7. Increase in Employer Contributions 01/01/1988 375,466 4 104,965

8. Increase in Employer Contributions 01/01/1989 542,038 5 125,702

9. Increase in Employer Contributions 01/01/1990 538,587 6 107,874

10. Increase in Employer Contributions 01/01/1991 974,534 7 173,316

11. Plan Amendments 01/01/1992 28,660 8 4,619

12. Increase in Employer Contributions 01/01/1992 421,590 8 67,928

13. Change in Actuarial Cost Method 01/01/1992 330,102 2 171,400

14. Change in Actuarial Assumptions 01/01/1992 1,226,121 8 197,558

15. Increase in Employer Contributions 01/01/1993 719,509 9 106,647

16. Increase in Employer Contributions 01/01/1994 941,401 10 129,905

17. Increase in Employer Contributions 01/01/1995 810,490 11 105,120

18. Plan Amendments 01/01/1996 473,518 12 58,180

19. Increase in Employer Contributions 01/01/1996 907,497 12 111,500

20. Plan Amendments 01/01/1997 31,712 13 3,716

21. Increase in Employer Contributions 01/01/1997 988,578 13 115,811

22. Increase in Employer Contributions 01/01/1998 437,956 14 49,188

23. Plan Amendments 01/01/1998 7,951,295 14 893,025

24. Increase in Employer Contributions 01/01/1999 1,394,583 15 150,860

25. Plan Amendments 01/01/1999 3,147,813 15 340,517

26. Increase in Employer Contributions 01/01/2000 357,319 16 37,379

27. Plan Amendments 01/01/2001 307,067 17 31,169

1

 The remaining amortization period for the charge bases established prior to 1/1/2009 reflect a 5-year automatic extension granted under 431(d).

IBT730-0391
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

21

Table V-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2019

1/1/2019 Remaining Beginning of Year

Date Outstanding Amortization Amortization

Type of Base Established Balance Years 1 Amount

CHARGES

28. Change in Actuarial Assumptions 01/01/2001 568,463 $ 17 $ 57,704

29. Experience Loss 01/01/2001 153,226 2 79,562

30. Increase in Employer Contributions 01/01/2001 1,913,339 17 194,220

31. Plan Amendments 01/01/2002 495,174 18 48,923

32. Increase in Employer Contributions 01/01/2002 1,744,886 18 172,392

33. Experience Loss 01/01/2002 553,827 3 198,986

34. Increase in Employer Contributions 01/01/2003 1,957,481 19 188,729

35. Experience Loss 01/01/2003 2,985,271 4 834,553

36. Increase in Employer Contributions 01/01/2004 1,764,831 20 166,438

37. Experience Loss 01/01/2004 2,577,524 5 597,740

38. Increase in Employer Contributions 01/01/2005 1,996,270 21 184,530

39. Experience Loss 01/01/2005 2,526,881 6 506,113

40. Recognized Portion of the 2008 ENIL 01/01/2009 38,584,066 19 3,720,062

41. Bifurcation Base 01/01/2009 6,752,862 10 931,830

42. Bifurcation Base 01/01/2010 4,094,792 6 820,154

43. Recognized Portion of the 2008 ENIL 01/01/2011 5,580,290 19 538,021

44. Method Change 01/01/2011 3,976,938 2 2,064,950

45. Recognized Portion of the 2008 ENIL 01/01/2012 17,866,695 19 1,722,607

46. Assumption Change 01/01/2012 10,024,183 8 1,615,145

47. Recognized Portion of the 2008 ENIL 01/01/2013 5,972,294 19 575,815

48. Recognized Portion of the 2008 ENIL 01/01/2014 3,767,832 19 363,274

49. Experience Loss 01/01/2015 3,941,415 11 511,203

50. Experience Loss 01/01/2016 6,200,661 12 761,849

51. Experience Loss 01/01/2017 2,319,616 13 271,742

52. Experience Loss 01/01/2018 1,927,254 14 216,453

TOTAL CHARGES $ 154,263,169 $ 20,988,701

1 The remaining amortization period for the charge bases established prior to 1/1/2009 reflect a 5-year automatic extension granted under 431(d).

IBT730-0392
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

22

Table V-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2019

1/1/2019 Remaining Beginning of Year

Date Outstanding Amortization Amortization

Type of Base Established Balance Years Amount

CREDITS

1. Change in Actuarial Assumptions 01/01/1994 184,602 $ 5 $ 42,810

2. Change in Actuarial Assumptions 01/01/1996 1,785,563 7 317,552

3. Change in Actuarial Assumptions 01/01/1999 148,198 10 20,452

4. Change in Actuarial Assumptions 01/01/2002 802,443 13 94,005

5. Experience Gain 01/01/2006 1,144,275 2 594,143

6. Experience Gain 01/01/2007 621,246 3 223,207

7. Experience Gain 01/01/2008 2,235,664 4 624,995

8. Method Change 01/01/2009 11,958,531 20 1,127,780

9. Recognized Portion of the 2008 ENIL 01/01/2010 6,878,112 19 663,149

10. Plan Amendment 01/01/2010 11,342,322 6 2,271,776

11. Bifurcation Base 01/01/2011 4,613,812 7 820,542

12. Bifurcation Base 01/01/2012 2,075,919 8 334,481

13. Bifurcation Base 01/01/2013 11,462,063 9 1,698,930

14. Bifurcation Base 01/01/2014 3,034,844 10 418,779

15. Experience Gain 01/01/2019 783,224 15 84,726

TOTAL CREDITS 59,070,818 $ 9,337,327

NET CHARGE $ 95,192,351 $ 11,651,374

IBT730-0393
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

23

Table V-6

Accumulated Reconciliation Account and Balance Test

as of January 1, 2019

1. Amount due to Additional Interest Charges in prior years $ 0

2. Amount due to Additional Funding Charges in prior years NA

3. Reconciliation Account at Start of Year $ 0

[1. + 2.]

4. Net Outstanding Amortization Bases $ 95,192,351

5. Funding Deficiency at Start of Year $ 25,845,291

6. Unfunded Actuarial Liability at Start of Year from Funding Equation $ 121,037,642

[4. – 3. + 5.]

7. Actuarial Liability at Start of Year $ 279,273,711

8. Actuarial Value of Assets at Start of Year $ 158,236,069

9. Unfunded Actuarial Liability at Start of Year from Liability Calculation $ 121,037,642

[7. – 8., Limited to Zero]

The Fund passes the Balance Test because line 6. equals line 9.

IBT730-0394
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION V – CONTRIBUTIONS 

24

Table V-7

Development of Full Funding Limitation

for Plan Year Starting January 1, 2019

Minimum Maximum 

1. Entry Age Actuarial Liability Calculation

a. Actuarial Liability $ 279,273,711 $ 279,273,711

b. Normal Cost with Expenses 1,061,243 1,061,243

c. Lesser of Market Value and Actuarial Value of Assets 153,296,273 153,296,273

d. Credit Balance/(Funding Deficiency) at Start of Year (25,845,291) 0

e. Actuarial Liability Full Funding Limit $ 109,288,861 $ 137,201,775

[a. + b. – c. + d.] x 1.08, limited to zero

2. Full Funding Limit Overide (RPA 1994)

Interest Rate used to Calculate Current Liability 3.06% 3.06%

a. RPA 1994 Current Liabilty at Start of Year $ 474,757,777 $ 474,757,777

b. Present Value of Benefits Estimated to Accrue during Year 2,514,056 2,514,056

c. Expected Benefit Payments 22,188,869 22,188,869

d. Net Interest on a., b. and c. at Current Liability Interest Rate 14,267,586 14,267,586

e. Expected Current Liability at End of Year, [a. + b. – c. + d.] 469,350,550 469,350,550

f. 90% of e. 422,415,495 422,415,495

g. Actuarial Value of Assets at Start of Year 158,236,069 158,236,069

h. Expected Expenses 353,198 353,198

i. Net Interest on c., g. and h. at Valuation Interest Rate 11,760,150 11,760,150

j. Estimated Value of Assets, [g. – c. – h. + i.] 147,454,152 147,454,152

k. RPA 1994 Full Funding Limit Override $ 274,961,343 $ 274,961,343

3. Full Funding Limitation at End of Year, greater of 1e. and 2k. $ 274,961,343 $ 274,961,343

IBT730-0395
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION VI – WITHDRAWAL LIABILITY 

25

The Multi-Employer Pension Plan Amendments Act of 1980 (MPPAA) provides that a contributing employer who withdraws from a 

multi-employer pension plan, either partially or totally, will be liable to the fund for a share of the fund’s Unfunded Vested Benefits 

(UVB) that exist as of the end of the plan year prior to the year in which the withdrawal occurs. The UVB is apportioned using the 

Presumptive Method as described in ERISA §4211(b)(1). 

Vested Benefits are the benefits that the Fund cannot take away from participants. Vested Benefits belong to two groups of 

participants: those former employees who have retired and are currently receiving retirement benefits; and those employees and 

former employees who have not yet retired, but who have accumulated enough service to earn the right to receive a benefit when they 

do retire even if their employment is terminated prior to retirement. 

The total liability for all Vested Benefits as of December 31, 2018 is $272,863,143. This liability has been determined using the 

actuarial assumptions shown in Appendix C for funding purposes. As of December 31, 2018, the Market Value of Assets applicable to 

the use of the Presumptive Method of allocating UVB was $153,296,273. Because the present value of Vested Benefits exceeds the 

assets of the Fund, there are Unfunded Vested Benefits as of December 31, 2018. Consequently, a participating employer who 

withdraws from the Fund during the plan year beginning January 1, 2019 may have a Withdrawal Liability, which will be based on its 

share of the Unfunded Vested Benefits. 

In addition, a withdrawing employer will be assessed a portion of the Affected Benefit liability in accordance with the provisions of 

the Pension Protection Act. The Affected Benefit liability arose when the Fund removed certain Adjustable Benefits effective 

January 1, 2010. The unamortized balance of the Affected Benefit liability at December 31, 2018 is $202,593.

IBT730-0396
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

SECTION VII – FASB ASC 960 DISCLOSURES 

26

Table VII-1

Present Value of Accumulated Benefits as of January 1, 2019

in Accordance with FASB ASC 960

Amounts Counts

1. Actuarial Present Value of Vested Benefits

For Retirees and Beneficiaries $ 151,637,525 1,001

Terminated Vesteds 80,586,231 738

Active Participants 40,639,387 258

Total Vested Benefits $ 272,863,143 1,997

2. Non-vested Benefits $ 2,378,946 43

3. Present Value of Expected Administrative Expenses1$ 4,597,691

4. Accumulated Benefits $ 279,839,780 2,040

5. Market Value of Assets $ 153,296,273

6. Funded Ratios

Vested Benefits 56%

Accumulated Benefits 55%

Reconciliation of Present Value of Accumulated Benefits

1. Actuarial Present Value at Start of Prior Year $ 274,037,389

2. Increase (Decrease) over Prior Year due to:

Benefit Accruals $ 1,163,200

Benefit Payments (19,391,415)

Increase for Interest 21,255,313

Liability Experience (Gains)/Losses (1,822,398)

Changes in Assumptions 0

Plan Amendments 0

Total $ 1,204,700

3. Actuarial Present Value at End of Prior Year (w/o Administrative Expenses) 275,242,089 $ 

4. Present Value of Expected Administrative Expenses1$ 4,597,691

5. Actuarial Present Value at End of Prior Year (w/ Administrative Expenses) 279,839,780 $ 

1 The present value of expected administrative expenses is equal to 1.67% of the Accrued Liability.

IBT730-0397
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX A – MEMBERSHIP INFORMATION 

27

The data for this valuation was provided by Associated Administrators LLC (AA). Cheiron did not audit any of the data; however, the 

data was reviewed to ensure that it complies with generally accepted actuarial standards. The data is as of January 1, 2019. 

The following is a list of data charts contained in this section: 

 Age/Service Distribution for Active Participants 

 Counts and Average Benefit Amount by Age for Retirees, Beneficiaries, and Disabled Participants 

 Counts and Average Benefit Amount by Age for Terminated Vested Participants 

Table A-1

Age/Service Distribution of Active Participants as of January 1, 2019

COMPLETED YEARS OF CREDITED SERVICE

AGE 0-4 5-9 10-14 15-19 20-24 25-29 30 & Up Total

Under 25 5 0 0 0 0 0 0 5 

25-29 8 4 0 0 0 0 0 12 

30-34 14 13 7 0 0 0 0 34 

35-39 9 8 10 8 1 0 0 36 

40-44 4 10 10 9 4 0 0 37 

45-49 1 7 10 9 11 2 0 40 

50-54 2 4 8 10 11 9 10 54 

55-59 3 5 10 13 7 10 12 60 

60-64 1 1 3 3 5 3 2 18 

65 & Up 1 1 2 0 0 0 1 5 

Total 48 53 60 52 39 24 25 301 

Average Age = 47.1 Average Service = 15.0

IBT730-0398
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX A – MEMBERSHIP INFORMATION 

28

Normal, Early Surviving Spouses

Deferred Vested and Beneficiaries

Retirements Receiving Benefits Total

Age Number Monthly Benefit Number Monthly Benefit Number

Monthly 

Benefit

Under 55 12 51,495 $ 2 $ 952 14 52,447 $ 

55-59 58 227,415 8 4,992 66 232,407

60-64 227 570,230 18 9,300 245 579,530

65-69 196 333,760 24 10,965 220 344,725

70-74 153 184,080 27 16,929 180 201,009

75-79 135 142,875 24 8,371 159 151,246

80 & Over 90 59,038 27 8,585 117 67,623

Total 871 1,568,893 $ 130 60,094 $ 1,001 1,628,987 $ 

Monthly Benefit Payable at

Age Number Normal Retirement Date

Under 45 126 $ 132,360

45-49 115 181,947

50-54 209 436,626

55-59 213 426,063

60-64 50 51,944

65 & Over 25 12,187

Total 738 $ 1,241,127

Table A-2

Age/Benefit Distribution of Inactive Participants as of January 1, 2019

PENSIONERS AND BENEFICIARIES RECEIVING BENEFITS

DEFERRED VESTED PARTICIPANTS AND SURVIVING SPOUSES ENTITLED TO FUTURE BENEFITS

IBT730-0399
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX A – MEMBERSHIP INFORMATION 

29

Table A-3

Participant Reconciliation from January 1, 2018 to January 1, 2019

Terminated Deferred

Actives Vested Spouses Retired QDROs Spouses Total

1. January 1, 2018 Valuation 368 722 14 830 23 125 2,082 

2. Additions

a. New entrants 15 15

b. New spouse 0 

c. New QDRO 0 

d. Pickups 3 2 5 

Total Additions 15 3 0 0 0 2 20 

3. Reductions

a. Terminated - not vested (29) (29)

b. Non-Participating (1) (1) 

c. Lump sum 0 

d. Deaths without beneficiary (5) (28) (2) (35) 

e. Data corrections, missing 0 

Total Reductions (29) (5) 0 (28) (1) (2) (65) 

4. Changes in status

a. Terminated - vested (44) 44 0 

b. Returned to work 8 (8) 0 

c. Retired (17) (29) 46 0 

d. Died with beneficiary (5) 2 (2) 5 0 

e. Data corrections 3 3 

Total Changes (53) 2 2 47 0 5 3 

5. January 1, 2019 Valuation 301 722 16 849 22 130 2,040 

IBT730-0400
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

30

This summary of plan provisions provides an overview of the 

major provisions of the pension fund used in the actuarial 

valuation. It is not intended to replace the more precise 

language of the plan document and is not to be relied upon for 

calculating participant benefits. 

1. Eligibility 

Any employee on whose behalf contributions are made to 

the pension plan is eligible to participate in the Fund. 

2. Normal Retirement 

Eligibility: Age 60 with five years of service. 

 For service after the adoption or imposition of a 

Rehabilitation Benefit Schedule, the normal 

retirement age has been increased to age 62 with 

five years of service. 

Amount: The greater of the Flat Benefit or the Percentage 

of Contributions benefit given below. 

Flat Benefit 

Employer’s Contribution

At Least But Less Than

First 60 

Months

Later 

Months

---* $.15 $100* $ 55

$.15 $.25 $200 $110

$.25 $.35 $300 $165

$.35 $.45 $400 $220

$.45 --- $500 $275

* This benefit amount is applicable only if the employer’s effective 

date is after January 1, 1981. If the employer’s effective date is prior 

to January 1, 1981, the minimum flat benefit amount for contribution 

rates less than $0.25 is the $200/$110 amount. 

The flat benefit amounts are reduced 5% for each year of 

service for benefit accrual less than 20. Increases in the 

level of monthly benefits are made when the employer’s 

contribution rate is increased after the employer’s effective 

date, subject to certain limitations. 

Percentage of Contributions Benefit 

For service prior to the adoption or imposition of a 

Rehabilitation Benefit Schedule: 

A monthly life annuity reducing to 55% of the original 

amount after 60 months, equal to (a) 4.17% of all 

contributions required to be made on a participant’s behalf 

on and after January 1, 1978 plus (b) X% of all 

contributions required to be made on a participant’s behalf 

IBT730-0401
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

31

prior to January 1, 1978, where “X” is determined from the 

following table: 

Participant’s Age

on January 1, 1978 X%

Participant’s Age

on January 1, 1978 X%

60 or over 12.0 49 7.6

59 11.6 48 7.2

58 11.2 47 6.8

57 10.8 46 6.4

56 10.4 45 6.0

55 10.0 44 5.6

54 9.6 43 5.2

53 9.2 42 4.8

52 8.8 41 4.4

51 8.4 40 and under 4.17

50 8.0

For those employers who elected through a collective 

bargaining agreement to make a supplemental contribution 

beginning January 1, 1998, the monthly life annuity above 

reduces to 55% of the original amount after 96 months 

instead of 60. 

Effective for participants who earned an hour of service on 

or after January 1, 1999, 24 months is added to the number 

of months described above (i.e., 60 months and 96 months 

for a total of 84 and 120 months, respectively). 

For service after the adoption or imposition of a 

Rehabilitation Benefit Schedule: 

Preferred Schedule: 2.0% of all contributions required to 

be made on a participant’s behalf on and after the date of 

adoption of the Preferred Schedule, reducing to 1.0% after 

the pension has been in effect for 60, 84, 96, or 120 

months. 

Default Schedule: 1.0% of all contributions required to be 

made on a participant’s behalf on and after the date of 

adoption or imposition of the Default Schedule. 

3. Early Retirement Benefit 

Eligibility: At least age 55 and has 20 continuous years of 

service for benefit accrual; and has ten 

continuous years of participation. 

Amount: Actuarial equivalent of the accrued normal 

retirement benefit. 

Eligibility: On completion of 30 years of service with the 

Fund. 

Amount: Accrued normal retirement benefit payable 

immediately. 

4. Postponed Retirement Benefit 

Participant Entitled to Flat Benefit 

A participant who elects to postpone his retirement beyond 

his normal retirement date is entitled to a postponed 

retirement benefit equal to the flat benefit increased by 5% 

IBT730-0402
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

32

for each year of service for benefit accrual after his normal 

retirement date, provided that the years of service for 

benefit accrual do not exceed 25, in the aggregate. 

Participant Entitled to Percentage 

A participant who elects to postpone his retirement of 

contributions benefit beyond his normal retirement date is 

entitled to a postponed retirement benefit, in lieu of his 

normal retirement benefit, in the amount of the normal 

retirement benefit calculated as if he had reached his 

normal retirement date on the day he actually retires. 

5. Termination Benefit 

Eligibility: Five credited years of service for vesting. 

Amount: A deferred annuity in the amount of the 

participant’s accrued normal benefit at 

termination commencing at the participant’s 

normal retirement age. 

6. Disability Retirement 

Eligibility: At least age 45, and has at least 15 continuous 

years of service for benefit accrual, and has at 

least five continuous years of participation, and 

has at least 40 weeks’ payments into the trust 

fund by an employer, and be totally and 

permanently disabled for at least 6 months as 

determined by trustees. 

Amount: A lump sum of $2.00 per paid week up to a 

maximum of $2,000. 

Eliminated after the adoption or imposition of a 

Rehabilitation Benefit Schedule. 

In addition, the participant is eligible for the termination 

benefit under the plan. 

7. Death Benefits 

Pre-Retirement Lump Sum Death Benefit 

Eligibility: Five continuous years of participation in the 

pension plan, and has had at least 40 weeks’ 

payments into the trust fund by an employer. 

Amount: $2.00 per paid week up to a maximum of $2,000 

reduced by any disability benefits paid. 

Eliminated after the adoption or imposition of a 

Rehabilitation Benefit Schedule. 

Pre-Retirement Spouse’s Pension

Eligibility: Available only to married participants who are 

eligible for a termination benefit, including 

vested terminated participants. 

IBT730-0403
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

33

Amount: A life annuity to the participant’s lawful spouse 

in the amount of the surviving spouse’s benefit 

that would have been provided under the 

qualified joint and survivor annuity payable at 

what would have been the participant’s earliest 

retirement date. 

The pre-retirement spouse’s benefit will be paid in addition 

to the lump sum death benefit.

8. Normal Form of Pension 

For participants who are married as of the normal 

retirement date, the normal retirement benefit is 

automatically payable as a joint and survivor annuity 

actuarially equivalent to the above benefit. The normal 

form of pension payable to a married employee who does 

not elect otherwise will be an actuarially reduced pension 

on the Joint and 50% Survivor basis. 

9. Effective Date of Plan 

August 15, 1965. Restated as of January 1, 2002. 

10. Last Amended 

Restated as of January 1, 2009 and executed on December 

17, 2009. The Rehabilitation Plan was last amended in 

2014 to adopt reasonable measures to forestall insolvency. 

11. Contributions 

Employee: None permitted or required. 

Employer: On an hourly or weekly basis, on behalf of 

participating employees, as specified in the 

applicable collective bargaining agreement. 

12. Changes since Last Valuation 

None. 

IBT730-0404
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

34

A. Actuarial Assumptions 

1. Rates of Investment Return 

8.00% for funding and disclosure purposes. 

3.06% for determining RPA ’94 Current Liability. 

This interest rate is the top of the corridor established 

by law. 

All investment returns are net of investment expenses. 

2. Rates of Mortality 

RP 2000 Mortality Table with blue-collar adjustment 

and Scale AA generational mortality improvements. 

For Current Liability purposes, the 2019 Static 

Mortality Table as prescribed under IRS Regulations. 

3. Rates of Turnover

Double the combination of Sarason’s Advanced 

Pension Tables. Sample rates: 

Age Rate

20 24.77%

22 22.62

24 20.47

25 19.40

26 18.02

28 15.25

30 12.49

35 8.21

40 5.24

45 2.57

50 0.00

4. Rates of Retirement 

Age

Less than 

30 Years 

of Service

30 Years

of

Service

Over 30 

Years of 

Service

51 – 59 0% 50% 10%

60 and over 100% 100% 100%

5. Rates of Disability

None assumed. 

IBT730-0405
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

35

6. Marriage Rates

Percentage Married: Males – 80% 

Females – 80% 

Age Differences: Males are assumed to be three 

years older than spouse. 

7. Administrative Expenses

$353,198 payable at the beginning of the year. 

Projected expenses incorporate an expense inflation 

assumption of 3% per year. 

For financial disclosure under FASB ASC 960, the 

present value of future administrative expense is 1.67% 

of accrued liability. This amount is based on future 

projected cash flows of $ $173.14 per participant, midyear, that increase 3% per year for inflation. 

8. Active Participants

All non-retired participants who have hours worked 

during the plan year ending December 31, 2018. 

9. Future Hours Worked By Active Participants

Each active participant will work average annual hours 

worked in the past three years, excluding the year of 

entry. No participant is assumed to work less than 870 

hours per year. 

10. Contribution Rate Used for Determination of 

Minimum Flat Benefit 

The contribution rate in effect on January 1, 2019. 

11. Contribution Rate Used for Determination of 

Percentage of Contributions Benefit 

The contribution rate in effect on January 1, 2019. 

12. Participant Data 

This report is based upon employee data furnished by 

the Fund Administrator. All non-retired participants 

who have hours worked during the plan year ending 

December 31, 2018 are assumed to be active 

participants as of January 1, 2019 unless identified as 

having been terminated. 

13. Assets 

Provided by the independent auditors’ report as of 

December 31, 2018. 

The Actuarial Value of Assets is based on the market 

value with an adjustment to smooth appreciation or 

depreciation in the market value over the past five 

years. 

80% of the net appreciation or depreciation for the most 

recently completed plan year is removed from the value 

of the assets, 60% of the appreciation or depreciation 

IBT730-0406
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

36

for the year prior to that is removed, etc., until the fifth 

year prior to this plan year for which none of the 

appreciation or depreciation is removed. The actuarial 

value of assets is adjusted, if necessary, to be within 

80% to 120% of the market value of the assets. 

14. Rehabilitation Plan Benefit Schedule 

In preparing our report and valuation results, all 

participating employers were valued under the 

Preferred Schedule as of January 1, 2019. 

15. Choice of Assumptions 

Economic: The expected investment return was chosen 

by comparing long-term real portfolio returns with 

inflation expectations. For a portfolio weighted 60% in 

US Large Cap equity and 40% in investment grade 

bonds, the 25-year return ending on the valuation date 

was 8.26% or a return in excess of inflation of 

approximately 6%. The Fund’s investments are 

invested more diversely than the model portfolio in 

expectation of generating higher returns but today’s 

inflation targets adopted by the Federal Reserve are 

lower than the experience over the last 25 years. A 

long-term rate return of a little over 8% would be 

indicated by history and Fed policy. 

Demographic: The demographic assumptions were last 

changed with the 2012 valuation. The gains and losses 

from demographic experience have been minor since 

then with the exception of a large number of actives 

becoming terminated vested due to their employer 

withdrawing from the Fund, which is not part of a 

demographic assumption set. An experience study will 

be performed in conjunction with the 2020 valuation. 

16. Changes in Assumptions since Last Valuation 

For funding calculations, the administrative expense 

assumption was changed from $358,623 to $353,198 to 

better reflect recent experience. 

For financial disclosure under FASB Topic ASC 960,

the present value of future administrative expense is 

based on future mid-year cash flows of $ $173.14 per 

participant that increase 3% per year for inflation. Last 

year we used $172.25 per participant. 

The RPA ’94 Current Liability interest rate was 

changed from 2.98% to 3.06% and the RPA ’94 Current 

Liability mortality table was changed from the IRS 

2018 Static Mortality Table to the IRS 2019 Static 

Mortality Table to comply with appropriate guidance. 

B. Actuarial Methods 

1. Asset Valuation Method 

The Actuarial Value of Assets is determined in 

accordance with Section 3.16 of Revenue Procedure 

2000-40 using a five-year smoothing period. 

Specifically, the actuarial value of assets as of January 

1, 2006 is set equal to the market value of assets. For 

IBT730-0407
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2019 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

37

each subsequent plan year, the actuarial value shall be 

the market value minus a decreasing fraction (4/5, 3/5, 

2/5, 1/5) of each gain or loss for each of the preceding 

four plan years except for 2008 market losses which are 

recognized at 10% a year due to funding relief. Gains or 

losses prior to January 1, 2006 are ignored. 

The resulting actuarial value of assets is then limited to 

be no greater than 120% and no less than 80% of the 

market value of assets on the valuation date. 

2. Funding Method: Entry Age Normal Cost Method 

Under the Entry Age Normal Cost Method, the 

individual Entry Age Normal cost is determined for 

each participant by calculating the level annual 

contribution required to fund that individual’s expected

benefits based on the current plan provisions over the 

participant’s expected active working lifetime with the 

Fund at entry. 

At the valuation date, the present value of future normal 

cost is calculated for each individual participant by 

multiplying the Entry Age Normal cost by the present 

value of the participant’s expected future active 

working lifetime with the Fund. The cost for each 

participant is then summed to yield the present value of 

future normal costs. 

The excess of the present value of future benefits for all 

individuals at the valuation date over the present value 

of future normal costs is called the Actuarial Liability, 

or past service liability. 

The excess, if any, of the actuarial liability over the 

actuarial value of assets is known as the unfunded 

accrued liability. If the actuarial value of assets exceeds 

the actuarial liability, the Fund may have a surplus. 

3. PRA 2010 Funding Relief 

The Fund’s Board of Trustees elected funding relief 

under §431(b)(8) of the Code and §304(b)(8) of 

ERISA, specifically: 

 The “special amortization rule,” which allows the 

Fund’s investment losses for the plan year ended 

December 31, 2008 be separately amortized over 29 

years. 

4. Changes in Actuarial Methods Since Last Valuation 

None. 

IBT730-0408
IBT730-0409
Warehouse Employees Union 

Local No. 730 Pension Trust 

Actuarial Valuation Report 

as of January 1, 2018 

Produced by Cheiron 

January 2019 

IBT730-0410
TABLE OF CONTENTS 

Section Page 

Letter of Transmittal .................................................................................................................................................................................... i 

Foreword ..................................................................................................................................................................................................... ii 

Section I Summary ..............................................................................................................................................................................1

Section II Assets ..................................................................................................................................................................................6

Section III Liabilities .............................................................................................................................................................................9

Section IV Contributions......................................................................................................................................................................13

Section V Withdrawal Liability ..........................................................................................................................................................22

Section VI FASB ASC 960 Disclosures ..............................................................................................................................................23

Appendices 

Appendix A Membership Information ...................................................................................................................................................24

Appendix B Summary of Major Plan Provisions ...................................................................................................................................27

Appendix C Actuarial Assumptions and Methods .................................................................................................................................31

IBT730-0411
January 31, 2019 

Warehouse Employees Union 

Local No. 730 Pension Trust 

911 Ridgebrook Road 

Sparks, Maryland 22102 

Dear Trustees: 

At your request, we have performed the January 1, 2018 Actuarial Valuation of the Warehouse Employees Union Local No. 730 

Pension Trust (the “Fund”). This report contains information on the Fund’s assets and liabilities and discloses contribution levels, 

including the minimum required amount as mandated by Federal law. This report is for the use of the Board of Trustees and its

auditors in preparing financial reports in accordance with applicable law and accounting requirements. 

Your attention is called to the introductory section in which we refer to the general approach employed in the preparation of this 

report. We also comment on the sources and reliability of both the data and the actuarial assumptions on which our findings are based. 

Those comments are the basis for our certification that this report is complete to the best of our knowledge and belief. The results of 

this report are only applicable to the 2018 Plan Year. Future results may differ significantly from the current plan year presented in 

this report due to such factors as the following: plan experience differing from that anticipated by the assumptions; changes in 

assumptions; and changes in plan provisions or applicable law. 

To the best of our knowledge, this report and its contents have been prepared in accordance with generally recognized and accepted 

actuarial principles and practices which are consistent with the Code of Professional Conduct and applicable Actuarial Standards of 

Practice set out by the Actuarial Standards Board. Furthermore, as credentialed actuaries, we meet the Qualification Standards of the 

American Academy of Actuaries to render the opinion contained in this report. This report does not address any contractual or legal 

issues. We are not attorneys, and our firm does not provide any legal services or advice. 

This report was prepared exclusively for the Fund for the purposes described herein. Other users of this valuation report are not 

intended users as defined in the Actuarial Standards of Practice, and Cheiron assumes no duty or liability to any other users. 

Sincerely, 

, FSA, MAAA, EA Matthew Deveney, ASA, MAAA, EA

Principal Consulting Actuary Consulting Actuary

IBT730-0412
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

FOREWORD 

ii

Cheiron has performed the Actuarial Valuation of the 

Warehouse Employees Union Local No. 730 Pension Trust as 

of January 1, 2018. The purpose of this report is to: 

1) Measure and disclose, as of the valuation date, the 

financial condition of the Fund; 

2) Provide specific information and documentation required 

by the Federal Government and the auditors of the Fund; 

and 

3) Review past and expected trends in the financial 

conditions of the Fund. 

An actuarial valuation establishes and analyzes fund assets, 

liabilities and contributions on a consistent basis, and traces the 

progress of both from one year to the next. It includes 

measurement of the fund’s investment performance as well as 

an analysis of actuarial liability gains and losses. 

Section I presents a summary of the key valuation results, 

general comments about the results, a review of historical 

trends including assets versus liabilities, minimum funding, 

participation and cash flows, and projection scenarios. 

Section II contains exhibits relating to the valuation of assets. 

Section III shows the various measures of liabilities. 

Section IV shows the development of the minimum and 

maximum contributions. 

Section V provides the calculation of unfunded vested benefits 

for withdrawal liability purposes as of January 1, 2018 that 

would be allocated to employers that withdrew during the 2018

calendar year. 

Section VI provides the FASB Accounting Standard 

Codification (ASC) 960 Disclosure required by the Fund’s 

auditor. 

The appendices to this report contain a summary of the Fund’s 

membership at the valuation date, a summary of the major 

provisions of the Fund, and the actuarial methods and 

assumptions used in the valuation. 

In preparing our report, we relied on information (some oral 

and some written) supplied by Associated Administrators, LLC 

and Novak Francella, LLC. This information includes, but is 

not limited to, the fund provisions, employee data, and 

financial information. We performed an informal examination 

of the obvious characteristics of the data for reasonableness 

and consistency in accordance with Actuarial Standard of 

Practice No. 23. 

The actuarial assumptions reflect our understanding of the 

likely future experience of the Fund and the assumptions, taken 

individually, represent our best estimate for the future 

experience of the Fund. Future experience may differ 

significantly from the current results presented in this report 

due to such factors as the following: plan experience differing 

from that anticipated by the assumptions; changes in 

assumptions; and changes in plan provisions or applicable law. 

Please note this valuation was prepared using census data and 

financial information as of the valuation date, January 1, 2018 

and events following that date are not reflected. 

IBT730-0413
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION I – SUMMARY 

1

The table below sets out the principal results of this year’s valuation and compares them to last year’s results. Both years reflect the 

Board adopted funding relief under Internal Revenue Code Sections 431(d) and 431(b)(8). 

Table I-1

Summary of Principal Results

January 1, 2017 January 1, 2018 Change

Participant Counts

Actives 379 ( 2.9%) 368

Terminated Vesteds 772 ( 4.7%) 736

In Pay Status 946 978 3.4% 

Total 2,097 2,082 ( 0.7%)

Financial Information

Market Value of Assets $ 157,775,289 $ 167,271,666 6.0% 

Actuarial Value of Assets 166,069,842 160,515,367 ( 3.3%)

AVA as a % of MVA 105.3% 96.0%

Entry Age Actuarial Liability $ 276,068,525 $ 278,076,443 0.7% 

Surplus (Unfunded Actuarial Liability) (109,998,683) (117,561,076) N/A

Present Value of Accrued Benefits/Accrued Liability 272,099,196 $ $ 274,037,389 0.7% 

Accrued Benefit Surplus (Unfunded) (106,029,354) (113,522,022) N/A

Accrued Benefit Funding Ratio (AVA Basis) 61.0% 58.6% N/A

Present Value of Vested Benefits $ 268,691,744 $ 270,920,799 0.8% 

Vested Benefit Surplus (Unfunded) (110,916,455) (103,649,133) N/A

Vested Benefit Funding Ratio (MVA Basis) 58.7% 61.7% N/A

Contributions and Cash Flows

ERISA Credit Balance (Beginning of Year) $ (7,181,407) $ (16,958,696) 136.1% 

Employer Contributions (actual/estimated ) 4,304,754 4,484,871 4.2% 

ERISA Minimum Funding before Credit Balance 13,676,408 13,893,560 1.6% 

Prior Year Benefit Payouts $ 17,357,541 $ 18,442,083 6.2% 

Prior Year Administrative Expenses 308,693 356,261 15.4% 

Prior Year Total Investment Income (Net) 11,065,177 23,989,967 N/A

IBT730-0414
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION I – SUMMARY 

2

The following is an analysis of the Fund’s recent past 

performance followed by historical results for the last ten 

years. After that, projections of future results are shown.

General Comments 

Investment and liability experience and their effect on future 

costs traditionally have been the focus of year-to-year analyses.

 The Market Value of Assets (MVA) returned 15.94% 

during the year ending December 31, 2017. The total 

actuarial investment gain (the difference between actual 

and expected returns) was $11.9 million. 

 For long-term planning and especially for minimum 

funding requirements, the Fund develops an Actuarial 

Value of Assets (AVA) to smooth investment gains and 

losses over time. Due to the continued phase-in of historical 

investment gains and losses of the past five years, the rate 

of return on the AVA was 5.61%, resulting in an actuarial 

loss of $3.8 million. 

 For minimum funding requirements, the Fund’s actuarial 

liability is determined using the Entry Age Normal Cost 

Method. Although the liability increased by $2.0 million, 

on a positive note there was a liability experience gain of 

$1.8 million. 

 The end of year minimum required contribution, before 

taking into account the credit balance, increased from 

$13.7 million to $13.9 million. The increase was mostly 

attributable to the $3.8 million AVA loss even though it 

was partially offset by the $1.8 million liability gain. This 

added an annual amortization charge of $0.2 million.

 During the 2017 Plan Year, the Fund’s funding deficiency 

increased from $7.2 million to $17.0 million. Due to the 

Pension Protection Act of 2006 (PPA) no excise tax is due 

provided the Fund has a valid Rehabilitation Plan and all 

employers are complying with it. 

PPA added a significant layer of new considerations related to 

the Fund’s PPA funded status. 

 For 2018, the Fund was certified as “Critical and 

Declining” under PPA as amended. This was caused by the 

current funding deficiencies and the projected insolvency

within the next 14 years. The PPA status is re-determined 

annually. 

 The Fund’s funding ratio for PPA purposes is based on the 

accrued liability determined using the Unit Credit Cost 

Method. It decreased from 61.0% to 58.6% primarily 

because contributions are less than the benefit payments 

and expenses, leading to a negative cash flow of 

approximately 9% of the assets.

 Despite the $1.8 million liability gain, for funding 

purposes, the Fund’s accrued liabilities used in the PPA 

funding ratio grew by $1.9 million during the 2017 Plan 

Year. 

IBT730-0415
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION I – SUMMARY 

3

 The Board of Trustees of the Fund first adopted a 

Rehabilitation Plan (RP) on November 26, 2009. The 

Rehabilitation Plan is applicable for collective bargaining 

agreements and participation agreements renewed or 

extended after December 25, 2009. The Fund’s 

Rehabilitation Period began on January 1, 2012. 

After the initial adoption of the Rehabilitation Plan, 

subsequent employer withdrawals resulted in a 

deterioration of the funding of the plan. Consequently, in 

2014 the Trustees updated the Rehabilitation and adopted a 

“reasonable measures to forestall insolvency” approach for 

PPA compliance. As a result of this update and annual 

reviews of the RP in light of then current conditions, all 

future contracts must include 4.9% annually compounded

contribution increases. 

 In February 2010, the Trustees took a five-year extension 

of the Fund’s amortization bases as of January 1, 2009 

under Section 431(d) of the Code. The net impact on the 

Funding Standard Account is an $18.6 million increase in 

the January 1, 2018 credit balance from what it would be 

without the Section 431(d) extension. Unless indicated 

otherwise, throughout this report, the term credit balance 

refers to the credit balance reflecting the 431(d) extension. 

 The Unfunded Vested Benefits (UVB) on a market value 

basis decreased from $110.9 million to $103.6 million. 

Under the provisions of the Multiemployer Pension Plan 

Amendment Act of 1980 (MPPAA) if the vested benefit 

liabilities exceed fund assets, an assessment of withdrawal 

liability may be made to any employer withdrawing from 

the Fund. 

Historical Summary 

On the following pages, we present a series of charts which 

display key results from the prior ten actuarial valuations. 

Assets & Liabilities: The following graph compares historical 

assets and liabilities. The gold bars represent the present value 

of vested benefits while the red bars add the additional 

non-vested benefits making up the Accrued Liability. The blue 

line is the Market Value of Assets and the green line is the 

Actuarial Value of Assets. The percentages shown on top of 

the bars represent the Fund’s PPA funding ratio (AVA as a 

percentage of Accrued Liabilities). 

81.8%

88.3%

81.8%

69.0% 70.2% 69.7% 67.2% 63.5% 61.0% 58.6%

$0

$50

$100

$150

$200

$250

$300

$350

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Millions

Vested Liability Accrued (PPA) Liability

Market Value of Assets Actuarial Value of Assets

Minimum Funding: The next graph shows the Credit Balance 

(green area) which is the accumulated contributions in excess 

IBT730-0416
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION I – SUMMARY 

4

of the Minimum Required Contribution before the Credit 

Balance (red line), and the Actual Contributions (yellow line). 

-$20

-$15

-$10

-$5

$0

$5

$10

$15

$20

Millions

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Credit Balance Minimum Required Contribution

Actual / Expected Contribution

On average, the contributions for the last ten years have been 

significantly lower than the minimum required contribution.

This has caused a steep decline in the credit balance since 2012 

leading to a funding deficiency beginning in 2017. 

Contributions, including expected withdrawal liability 

payments, are expected to again fall short of the minimum 

required contribution next year. 

Participation: The following graph shows the participants of 

the Fund at successive valuation dates. The numbers above 

each bar represent the number of inactive members to active 

members (i.e., support ratio) at each valuation date. The 

support ratio increased significantly as of January 1, 2013 due 

to the withdrawal of two participating employers (Jessup and 

McKesson) during 2012. 

683 713 768 831 859 882 926 946 946 978

613 589 600 662

861 841 799 796 772 736

924 941 925 816 444 413 416 406 379 368

1.40 1.38 1.48 1.83

3.87 4.17 4.15 4.29 4.53 4.66

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Retirees Terminated Vested Actives

Further declines in active membership will reduce future 

contributions and increase the negative cash flow, which will 

put more pressure on the overall plan funding. 

Cash Flow: The following graph shows the Fund’s cash flow, 

contributions less benefit payments and expenses, at successive 

valuation dates. This is a critical measure, as it reflects the 

ability to have funds available to meet benefit payments 

without having to make difficult investment decisions, 

especially during volatile markets. 

The main consequence for a fund with negative cash flow is

that the impact of market fluctuations will be more severe. This 

IBT730-0417
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION I – SUMMARY 

5

is because assets will have to be used to pay benefits in down 

markets. This means there will be less principal left to benefit 

from later favorable investment experience. 

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

($60)

($50)

($40)

($30)

($20)

($10)

$0

$10

$20

$30

$40

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Millions

Plan Year Ending December 31,

Contributions Benefits & Expenses

Investment Return Net Cash Flow

Net Cash Flow %

Future Outlook 

In this section we move away from viewing a single year’s 

results or historical trends and focus on the future of the Fund. 

In light of the Fund’s “Critical and Declining” classification, 

this future outlook focuses on the projection of assets. 

The following projection assumes participation remains 

constant, contributions increase 4.9% annually, the expected 

withdrawal liability payments from McKesson Drug continue, 

and all of the assumptions set out in Appendix C are realized 

including the return of 8% per year. 

Under this scenario, the projection shows the Fund will exhaust 

its assets during 2031. This is one year later than last year’s 

projection showed. This improvement is mainly the result of

the return on the market value of assets during 2017 exceeding 

the expected 8%. In addition to the excess asset, returns there 

were more deaths than expected and fewer than expected 

retirements, both positive results. 

59% 56% 52% 47% 39% 28% 15% 0% 0% 0% 0%

$0

$50

$100

$150

$200

$250

$300

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 Millions

Safe Endangered Seriously Endg Critical AVA MVA

IBT730-0418
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION II – ASSETS 

6

Assets at Market Value 

Market values represent “snap-shot” or “cash-out” values, 

which provide the principal basis for measuring financial 

performance from one year to the next. 

Table II-1

Statement of Assets at Market Value, December 31

2016 2017

Invested Assets

Common Stocks $ 54,443,612 $ 46,974,592

U.S. Government Agencies Notes 

and Bonds 2,017,860 1,769,586

Corporate Notes and Bonds 3,286,055 3,918,005

Limited Partnerships & DFEs 76,787,322 85,515,091

Common Collective Trusts 16,693,820 25,753,271

Temporary Investments 2,864,235 1,521,708

Other (Fund of Funds) 201,336 101,069

Total Investments: $ 156,294,240 $ 165,553,322

Other Assets

Employer Contributions Receivable 379,395 340,118

Accrued Interest and Dividends 95,140 79,748

Other Receivables 3,975 1,996

Prepaid Expenses 19,227 20,813

Cash 1,485,120 1,566,858

Accounts Payable (501,808) (291,189)

Total Non-Invested Assets: $ 1,481,049 $ 1,718,344

Net Assets Available for Benefits $ 157,775,289 $ 167,271,666

The table above shows the market value of assets taken into 

account for funding purposes. These values exclude receivable 

withdrawal liability payments because they are not 

“receivable” as defined by the IRS. At December 31, 2017, the 

amount including this receivable shown in the audited financial 

statement was $173,515,750.

Changes in Market Value

The components of asset change are: 

 Contributions 

 Benefit payments 

 Expenses 

 Investment income (realized and unrealized) 

The specific changes during 2017 are presented below. 

Table II-2 *

Changes in Market Values

Value of Assets - January 1, 2017 $ 157,775,289

Employer Contributions 3,641,080

Withdrawal Liability Payments 663,674

Investment Return (Gross) 25,682,718

Benefit Payments (18,442,083)

Administrative Expenses (356,261)

Investment Expenses (1,692,751)

Value of Assets - January 1, 2018 $ 167,271,666

* On this table $1,500 of other income is classed as investment income.

IBT730-0419
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION II – ASSETS 

7

Investment Performance 

The following table calculates the actuarial investment 

gain/loss and the return for the plan year on a market value 

basis. The return is an appropriate measure for comparing the 

actual asset performance to the long-term 8% assumption. 

Table II-3

Change in Market Value of Assets

Item Market Value

January 1, 2017 value $ 157,775,289

2017 Employer Contributions 3,641,080

2017 Withdrawal Liability Payments 663,674

2017 Benefit Payments (18,442,083)

Actual Administrative Expenses (356,261)

Expected Investment Earnings (8%) 12,053,433

Expected Value December 31, 2017 155,335,132 $ 

Investment Gain / (Loss) 11,936,534

January 1, 2018 value $ 167,271,666

Investment Return 15.94%

Assets at Actuarial Value 

For long-term planning, actuaries developed an actuarial value 

of assets using smoothing techniques to mitigate the effects of 

short-term volatility exhibited by the capital markets. The asset 

valuation method, adopted with the 2007 valuation, phases in 

actuarial investment gains and losses over five years (ten years 

for the 2008 loss). The actuarial value of assets is then 

constrained, if necessary, so that it is not more than 120% of 

the market value and is not less than 80% of the market value. 

The asset valuation method is described more fully in 

Appendix C. 

The table below shows the development of the actuarial value 

of assets. 

Table II-4

Development of Actuarial Value of Assets

Market Value of Assets as of January 1, 2018 $ 167,271,666

Plan Investment Percent Percent Amount

Year Gains / (Losses) Recognized Deferred Deferred

12/31/2008 (74,150,277) 100% 0% 0

12/31/2013 15,983,419 100% 0% 0

12/31/2014 (78,622) 80% 20% (15,724)

12/31/2015 (5,127,301) 60% 40% (2,050,920)

12/31/2016 (1,210,474) 40% 60% (726,284)

12/31/2017 11,936,534 20% 80% 9,549,227

Total $ 6,756,299

Preliminary Actuarial Value of Assets January 1, 2018 $ 160,515,367

120% of MV, upper limit for actuarial value 200,725,999

80% of MV, lower limit for actuarial value 133,817,333

Actuarial Value of Assets January 1, 2018 $ 160,515,367

- as a percent of Market Value of Assets 96.0%

IBT730-0420
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION II – ASSETS 

8

Asset Gain/(Loss) 

The following table calculates the investment gain/loss and the 

return for the plan year on an actuarial value basis. This 

gain/loss is one component of the Fund’s overall actuarial 

experience gain/loss, which is recognized for minimum 

funding requirements. 

Over 2017, the Fund’s assets at actuarial value produced an 

actuarial loss of $3,787,217.

Table II-5

Change in Actuarial Value of Assets

Item Actuarial Value

January 1, 2017 value $ 166,069,842

2017 Employer Contributions 3,641,080

2017 Withdrawal Liability Payments 663,674

2017 Benefit Payments (18,442,083)

Expected Administrative Expenses (334,170)

Expected Investment Earnings (8%) 12,704,241

Expected Value December 31, 2017 $ 164,302,584

Investment Gain / (Loss) (3,787,217)

January 1, 2018 value $ 160,515,367

Investment Return 5.61%

IBT730-0421
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION III – LIABILITIES 

9

In this section, we present detailed information on the Fund’s 

liabilities including:

 Disclosure of the Fund’s liabilities at January 1, 2017 and 

January 1, 2018; and 

 Statement of changes in these liabilities during the year. 

Disclosure 

Several types of liabilities are calculated and presented in this 

report. Each type is distinguished by the purpose for which 

they are used. 

 Actuarial Liabilities: Used in determining minimum 

funding requirements, maximum tax-deductible 

contributions, and long-term funding targets, this amount is 

calculated using the Entry Age Normal Cost Method.

 Accrued Liabilities: Used for communicating the current 

levels of liabilities, these liabilities represent the total 

amount of money needed to fully pay off all future 

obligations of the Fund using funding assumptions and 

assuming no further accrual of benefits. They are 

determined using the Unit Credit Cost Method.

These liabilities are used for determining funded status 

under PPA. The law requires them to be compared to the 

actuarial value of assets to measure funded status. They can 

also be used to establish comparative benchmarks with 

other plans. 

The accrued liabilities must also be included in the Fund’s 

financial statement for accounting disclosure purposes 

(FASB ASC Topic No. 960). However, the accounting 

disclosure must also include the present value of future 

administrative expenses. This sum is called the Present 

Value of Accumulated Benefits. 

 Vested Liabilities: Used for administrative purposes in 

determining employer withdrawal liability, this liability 

represents that portion of the accrued liabilities, which are 

vested. 

 Current Liabilities: Used for Federal Government 

compliance purposes, the calculation of this liability is 

defined by federal regulations and is used to determine 

maximum allowable tax-deductible contributions. 

The table on the following page discloses each of these 

liabilities for the current valuation and the prior one. With 

respect to each disclosure, a subtraction of the appropriate 

value of fund assets yields, for each respective type, a surplus 

or unfunded liability.

IBT730-0422
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION III – LIABILITIES 

10

Table III-1

Liabilities/Net Surplus (Unfunded)

January 1, 2017 January 1, 2018

ACTUARIAL LIABILITY

Active Participant Benefits $ 51,899,712 $ 48,340,866

Retiree and Inactive Benefits 224,168,813 229,735,577

Actuarial Liability $ 276,068,525 $ 278,076,443

Actuarial Value of Assets 166,069,842 160,515,367

Net Surplus (Unfunded) $ (109,998,683) $ (117,561,076)

ACCRUED LIABILITY 

Active Participant Benefits $ 47,930,383 $ 44,301,812

Retiree and Inactive Benefits 224,168,813 229,735,577

Accrued Liability $ 272,099,196 $ 274,037,389

Actuarial Value of Assets 166,069,842 160,515,367

Net Surplus (Unfunded) $ (106,029,354) $ (113,522,022)

VESTED LIABILITY

Accrued Liability $ 272,099,196 $ 274,037,389

Less Present Value of Non-Vested Benefits 3,407,452 3,116,590

Vested Liability $ 268,691,744 $ 270,920,799

Actuarial Value of Assets 166,069,842 160,515,367

Net Surplus (Unfunded) $ (102,621,902) $ (110,405,432)

CURRENT LIABILITY (RPA 1994)

Current Liability $ 474,054,870 $ 486,394,917

Market Value of Assets 157,775,289 167,271,666

Net Surplus (Unfunded) $ (316,279,581) $ (319,123,251)

IBT730-0423
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION III – LIABILITIES 

11

Allocation of Liabilities by Type

The Fund’s participants may qualify for a benefit upon death, termination, and disability as well as upon retirement. The value of the 

liabilities arising from each of these sources is shown in the following table. 

Table III-2

Allocation of Liabilities by Type

Benefit Type Retirement Termination Death Expenses Total

Entry Age Normal Cost $ 579,495 $ 181,680 $ 8,503 $ 358,623 $ 1,128,301

Entry Age Actuarial Liability

Actives $ 47,917,181 $ 149,000 $ 274,684 $ 48,340,865 0 $ 

Terminated Vesteds 80,852,537 0 0 80,852,537 0 

Retirees and Beneficiaries 143,253,004 0 5,630,037 0 148,883,041

Total $ 191,170,185 $ 81,001,537 $ 5,904,721 $ 278,076,443 0 $ 

Current Liability Normal Cost $ 2,457,151 $ 261,273 $ 17,013 $ 2,735,437 0 $ 

Current Liability 

Actives $ 84,478,047 $ 3,971,567 $ 479,106 $ 88,928,720 0 $ 

Terminated Vesteds 164,529,401 0 0 164,529,401 0 

Retirees and Beneficiaries 224,136,670 0 8,800,126 0 232,936,796

Total $ 308,614,717 $ 168,500,968 $ 9,279,232 $ 486,394,917 0 $ 

Vested Current Liability 

Actives $ 34,310,902 $ 49,909,187 $ 472,852 $ 84,692,941 0 $ 

Terminated Vesteds 164,529,401 0 0 164,529,401 0 

Retirees and Beneficiaries 224,136,670 0 8,800,126 0 232,936,796

Total $ 258,447,572 $ 214,438,588 $ 9,272,978 $ 482,159,138 0 $ 

IBT730-0424
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION III – LIABILITIES 

12

Changes in Liabilities 

Each of the liabilities shown in the table below is subject to change at successive valuations as the experience of the Fund varies from 

that assumed in the valuation. The liabilities may change for any of several reasons, including: 

 New hires since the last valuation 

 Benefits accrued since the last valuation 

 Plan amendments 

 Interest on liabilities 

 Benefits paid to retirees 

 Participants leaving employment at rates different from expected 

 Changes in actuarial assumptions 

 Changes in actuarial methods 

Table III-3

Reconciliation of Liabilities

Actuarial 

Liability

Accrued 

Liability

Liabilities as of January 1, 2017 $ 276,068,525 $ 272,099,196

Liabilities as of January 1, 2018 $ 278,076,443 $ 274,037,389

Liability Increase (Decrease) $ 2,007,918 $ 1,938,193

Change Due due to:

 Plan Amendment $ 0 $ 0

 Assumption Change 0 0

 Accrual of Benefits 809,520 1,178,147

 Passage of Time (Interest less benefits paid) 2,984,669 2,696,613

 Other Sources 0 0

 Actuarial Liability (Gain) / Loss (1,786,271) (1,936,567)

Total Change $ 2,007,918 $ 1,938,193

IBT730-0425
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

13

In this section, we present detailed information on the Fund’s 

contributions from two perspectives: 

 Actuarially determined contributions or actuarial cost and 

 Government Limits, which could affect the above. 

Actuarial Determined Contributions 

For this Fund, the cost method used to calculate the actuarially 

determined contribution is the Entry Age Normal Cost 

Method. The actuarially determined contribution or cost is 

determined in two parts. 

The first part is the Entry Age Normal Cost. This is the level 

cost of providing the benefits promised by the Fund to each 

individual participant in service at the valuation date assuming 

that contributions are made over the period of the participant’s 

working life. The normal cost includes a provision for the 

Fund’s expenses. 

The second part is an amortization payment to pay off the 

unfunded actuarial liability. The unfunded actuarial liability is 

the difference between the actuarial assets of the Fund at the 

valuation date and the assets the Fund should hold as 

determined by the actuarial cost method. The amortization 

payment is determined using the amortization schedule 

established by the IRS minimum funding rules. 

Government Limits

ERISA and the IRS tax code place various limits on the 

contributions made to qualified pension plans. The limits 

impact the minimum that must be paid, the maximum that can 

be deducted and the timing of contributions. Pension plans are 

required to retain an Enrolled Actuary to report on the progress 

of funding through completion of Schedule MB to Form 5500 

on an annual basis. The actuarially determined 

contribution/cost for 2018 is shown in the following table 

compared to the various Government Limits and the estimated 

employer contributions (including withdrawal liability 

payments). 

The table below summarizes the results of the tables on the 

following pages. It also shows the per capita actuarially 

determined contribution/actuarial cost and per capita expected 

contribution. The cost is almost three times the expected 

contribution. 

Table IV-1

Contributions for 2018

Actuarially Determined Contribution

Entry Age Normal Cost $ 769,678

Administrative Expense 358,623

Amortization Payment 11,736,106

Interest to End of Year 1,029,153

Total $ 13,893,560

Government Limits

Maximum Deductible Contribution $ 524,273,864

Minimum Required Contribution (before Credit Balance) 13,893,560 $ 

Funding Deficiency (with interest to End of Year) $ 18,315,392

Minimum Contribution (after Credit Balance) $ 32,208,952

Employer Contributions with Interest* $ 4,660,815

Count of Active Participants 368

Per Capita Actuarial Cost $ 37,754

Per Capita Contribution $ 12,665

* Estimated contributions of $4,484,871 (including interest to end of year)

IBT730-0426
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

14

Table IV-2

Funding Standard Account for 2017 and 2018 Plan Years

2017 2018 

1. Charges For Plan Year

a. Funding Deficiency $ 7,181,407 $ 16,958,696

b. Normal Cost with Expenses 1,143,690 1,128,301

c. Amortization Charges 20,772,254 20,988,707

d. Interest on a. and b. to Year End 2,327,788 3,126,056

e. Additional Funding Charge N/A N/A

f. Interest Charge due to Late Quarterly Contributions N/A N/A

g. Total Charges $ 31,425,139 $ 42,201,760

2. Credits For Plan Year

a. Prior Year Credit Balance $ 0 $ 0

b. Employer Contributions (actual/expected ) 4,304,754 4,484,871

c. Amortization Credits 9,252,603 9,252,601

d. Interest on a., b., and c. to Year End 909,086 916,152

e. Full Funding Limit Credit 0 0

f. Total Credits $ 14,466,443 $ 14,653,624

3. Credit Balance at End of Year [2. - 1., not less than $0] $ 0 $ 0

4. Funding Deficiency at End of Year [1. – 2., not less than $0] $ 16,958,696 $ 27,548,136

IBT730-0427
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

15

Table IV-3

Calculation of the Maximum Deductible Contribution

for the Plan Year Starting January 1, 2018

1. "Fresh Start" Method

a. Normal Cost with Expenses $ 1,128,301

b. Net Charge to Amortize Unfunded Actuarial Liability Over 10 years 16,222,284 

c. Interest on a. and b. 1,388,047

d. Total 18,738,632

e. Minimum Required Contribution at Year End 32,208,952

f. Larger of d. and e. 32,208,952

g. Full Funding Limitation as of Year End 282,989,308

h. Regular Maximum Deductible Contribution, lesser of f. and g. $ 32,208,952

2. 140% of Current Liability Calculation*

a. RPA 1994 Current Liability at Start of Year $ 486,394,917

b. Present Value of Benefits Estimated to Accrue during Year 2,735,437

c. Expected Benefit Payments 20,829,249

d. Net Interest on a., b. and c. at Current Liability Interest Rate 14,268,007

e. Expected Current Liability at End of Year, [a. + b. – c. + d.] 482,569,112

f. 140% of e. 675,596,757

g. Actuarial Value of Assets 160,515,367

h. Expected Expenses at Start of Year 358,623

i. Net Interest on c., g. and h. at Valuation Interest Rate 11,995,398

j. Estimated Value of Assets, [g. – c. – h. + i.] 151,322,893

k. Unfunded Current Liability at Year End, [f. – j.] $ 524,273,864

3. Maximum Deductible Contribution at Year End, greater of 1. and 2. $ 524,273,864

* Based on combined mortality specified in Reg. §1.412(l)(7)-1 and an interest rate of 2.98%.

IBT730-0428
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

16

Table IV-4

Development of Actuarial Gain/(Loss)

for the Year Ended December 31, 2017

1. Unfunded Actuarial Liability at Start of Year $ 109,998,683

2. Normal Cost (with expenses) at Start of Year $ 1,143,690

3. Interest on 1. and 2. to End of Year $ 8,891,390

4. Employer Contributions for Year $ 4,304,754

5. Interest on 4. to End of Year $ 168,880

6. Change in Unfunded Actuarial Liability Due to Changes in Plan Design $ 0

7. Change in Unfunded Actuarial Liability Due to Changes in Assumptions $ 0

8. Expected Unfunded Actuarial Liability at End of Year $ 115,560,129

[1. + 2. + 3. – 4. - 5. + 6.+ 7.]

9. Actual Unfunded Actuarial Liability at End of Year, not less than zero $ 117,561,076

10. Actuarial Gain / (Loss) [8. – 9.] $ (2,000,947)

(a) Liability Gain / (Loss) $ 1,786,271

(b) Asset Gain / (Loss) $ (3,787,217)

IBT730-0429
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

17

Table IV-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2018

1/1/2018 Remaining Beginning of Year

Date Outstanding Amortization Amortization

Type of Base Established Balance Years 1 Amount

CHARGES

1. Change in Actuarial Cost Method 01/01/1984 784,298 $ 3 281,792

2. Increase in Employer Contributions 01/01/1985 121,141 2 62,903

3. Increase in Employer Contributions 01/01/1986 8,613 3 3,094

4. Plan Amendments 01/01/1986 309,866 3 111,332

5. Increase in Employer Contributions 01/01/1987 329,778 4 92,192

6. Change in Actuarial Assumptions 01/01/1988 34,583 5 8,020

7. Increase in Employer Contributions 01/01/1988 452,619 5 104,965

8. Increase in Employer Contributions 01/01/1989 627,589 6 125,702

9. Increase in Employer Contributions 01/01/1990 606,566 7 107,874

10. Increase in Employer Contributions 01/01/1991 1,075,662 8 173,316

11. Plan Amendments 01/01/1992 31,156 9 4,619

12. Increase in Employer Contributions 01/01/1992 458,289 9 67,928

13. Change in Actuarial Cost Method 01/01/1992 477,050 3 171,400

14. Change in Actuarial Assumptions 01/01/1992 1,332,855 9 197,558

15. Increase in Employer Contributions 01/01/1993 772,859 10 106,647

16. Increase in Employer Contributions 01/01/1994 1,001,573 11 129,905

17. Increase in Employer Contributions 01/01/1995 855,574 12 105,120

18. Plan Amendments 01/01/1996 496,623 13 58,180

19. Increase in Employer Contributions 01/01/1996 951,775 13 111,500

20. Plan Amendments 01/01/1997 33,079 14 3,716

21. Increase in Employer Contributions 01/01/1997 1,031,161 14 115,811

22. Increase in Employer Contributions 01/01/1998 454,703 15 49,188

23. Plan Amendments 01/01/1998 8,255,335 15 893,025

24. Increase in Employer Contributions 01/01/1999 1,442,141 16 150,860

25. Plan Amendments 01/01/1999 3,255,159 16 340,517

26. Increase in Employer Contributions 01/01/2000 368,230 17 37,379

27. Plan Amendments 01/01/2001 315,490 18 31,169

1

 The remaining amortization period for the charge bases established prior to 1/1/2009 reflect a 5-year automatic extension granted under 431(d).

IBT730-0430
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

18

Table IV-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2018

1/1/2018 Remaining Beginning of Year

Date Outstanding Amortization Amortization

Type of Base Established Balance Years 1 Amount

CHARGES

28. Change in Actuarial Assumptions 01/01/2001 584,059 $ 18 57,704

29. Experience Loss 01/01/2001 221,438 3 79,562

30. Increase in Employer Contributions 01/01/2001 1,965,830 18 194,220

31. Plan Amendments 01/01/2002 507,417 19 48,923

32. Increase in Employer Contributions 01/01/2002 1,788,027 19 172,392

33. Experience Loss 01/01/2002 711,789 4 198,986

34. Increase in Employer Contributions 01/01/2003 2,001,211 20 188,729

35. Experience Loss 01/01/2003 3,598,693 5 834,553

36. Increase in Employer Contributions 01/01/2004 1,800,541 21 166,438

37. Experience Loss 01/01/2004 2,984,336 6 597,740

38. Increase in Employer Contributions 01/01/2005 2,032,928 22 184,530

39. Experience Loss 01/01/2005 2,845,818 7 506,113

40. Recognized Portion of the 2008 ENIL 01/01/2009 39,446,049 20 3,720,062

41. Bifurcation Base 01/01/2009 7,184,480 11 931,830

42. Bifurcation Base 01/01/2010 4,611,628 7 820,154

43. Recognized Portion of the 2008 ENIL 01/01/2011 5,704,956 20 538,021

44. Method Change 01/01/2011 5,747,300 3 2,064,950

45. Recognized Portion of the 2008 ENIL 01/01/2012 18,265,843 20 1,722,607

46. Assumption Change 01/01/2012 10,896,796 9 1,615,145

47. Recognized Portion of the 2008 ENIL 01/01/2013 6,105,717 20 575,815

48. Recognized Portion of the 2008 ENIL 01/01/2014 3,852,007 20 363,274

49. Experience Loss 01/01/2015 4,160,661 12 511,203

50. Experience Loss 01/01/2016 6,503,202 13 761,849

51. Experience Loss 01/01/2017 2,419,535 14 271,742

52. Experience Loss 01/01/2018 2,000,947 15 216,453

TOTAL CHARGES $ 163,824,975 $ 20,988,707

IBT730-0431
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

19

Table IV-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2018

1/1/2018 Remaining Beginning of Year

Date Outstanding Amortization Amortization

Type of Base Established Balance Years Amount

CREDITS

1. Change in Actuarial Assumptions 01/01/1994 213,738 $ 6 $ 42,810

2. Change in Actuarial Assumptions 01/01/1996 1,970,851 8 317,552

3. Change in Actuarial Assumptions 01/01/1999 157,672 11 20,452

4. Change in Actuarial Assumptions 01/01/2002 837,008 14 94,005

5. Experience Gain 01/01/2006 1,653,657 3 594,143

6. Experience Gain 01/01/2007 798,435 4 223,207

7. Experience Gain 01/01/2008 2,695,054 5 624,995

8. Method Change 01/01/2009 12,200,494 21 1,127,780

9. Recognized Portion of the 2008 ENIL 01/01/2010 7,031,771 20 663,149

10. Plan Amendment 01/01/2010 12,773,926 7 2,271,776

11. Bifurcation Base 01/01/2011 5,092,590 8 820,542

12. Bifurcation Base 01/01/2012 2,256,628 9 334,481

13. Bifurcation Base 01/01/2013 12,311,951 10 1,698,930

14. Bifurcation Base 01/01/2014 3,228,820 11 418,779

TOTAL CREDITS 63,222,595 $ 9,252,601

NET CHARGE $ 100,602,380 $ 11,736,106

IBT730-0432
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

20

Table IV-6

Accumulated Reconciliation Account and Balance Test

as of January 1, 2018

1. Amount due to Additional Interest Charges in prior years $ 0

2. Amount due to Additional Funding Charges in prior years NA

3. Reconciliation Account at Start of Year $ 0

[1. + 2.]

4. Net Outstanding Amortization Bases $ 100,602,380

5. Funding Deficiency at Start of Year $ 16,958,696

6. Unfunded Actuarial Liability at Start of Year from Funding Equation $ 117,561,076

[4. – 3. + 5.]

7. Actuarial Liability at Start of Year $ 278,076,443

8. Actuarial Value of Assets at Start of Year $ 160,515,367

9. Unfunded Actuarial Liability at Start of Year from Liability Calculation $ 117,561,076

[7. – 8., Limited to Zero]

The Fund passes the Balance Test because line 6. equals line 9.

IBT730-0433
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION IV – CONTRIBUTIONS 

21

Table IV-7

Development of Full Funding Limitation

for Plan Year Starting January 1, 2018

Minimum Maximum 

1. Entry Age Actuarial Liability Calculation

a. Actuarial Liability $ 278,076,443 $ 278,076,443

b. Normal Cost with Expenses 1,128,301 1,128,301

c. Lesser of Market Value and Actuarial Value of Assets 160,515,367 160,515,367

d. Credit Balance/(Funding Deficiency) at Start of Year (16,958,696) 0

e. Actuarial Liability Full Funding Limit $ 109,869,135 $ 128,184,527

[a. + b. – c. + d.] x 1.08, limited to zero

2. Full Funding Limit Overide (RPA 1994)

Interest Rate used to Calculate Current Liability 2.98% 2.98%

a. RPA 1994 Current Liabilty at Start of Year $ 486,394,917 $ 486,394,917

b. Present Value of Benefits Estimated to Accrue during Year 2,735,437 2,735,437

c. Expected Benefit Payments 20,829,249 20,829,249

d. Net Interest on a., b. and c. at Current Liability Interest Rate 14,268,007 14,268,007

e. Expected Current Liability at End of Year, [a. + b. – c. + d.] 482,569,112 482,569,112

f. 90% of e. 434,312,201 434,312,201

g. Actuarial Value of Assets at Start of Year 160,515,367 160,515,367

h. Expected Expenses 358,623 358,623

i. Net Interest on c., g. and h. at Valuation Interest Rate 11,995,398 11,995,398

j. Estimated Value of Assets, [g. – c. – h. + i.] 151,322,893 151,322,893

k. RPA 1994 Full Funding Limit Override $ 282,989,308 $ 282,989,308

3. Full Funding Limitation at End of Year, greater of 1e. and 2k. $ 282,989,308 $ 282,989,308

IBT730-0434
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION V – WITHDRAWAL LIABILITY 

22

The Multi-Employer Pension Plan Amendments Act of 1980 (MPPAA) provides that a contributing employer who withdraws from a 

multi-employer pension plan, either partially or totally, will be liable to the fund for a share of the fund’s Unfunded Vested Benefits 

(UVB) that exist as of the end of the plan year prior to the year in which the withdrawal occurs. The UVB is apportioned using the 

Presumptive Method as described in ERISA §4211(b)(1). 

Vested Benefits are the benefits that the Fund cannot take away from participants. Vested Benefits belong to two groups of 

participants: those former employees who have retired and are currently receiving retirement benefits; and those employees and 

former employees who have not yet retired, but who have accumulated enough service to earn the right to receive a benefit when they 

do retire even if their employment is terminated prior to retirement. 

The total liability for all Vested Benefits as of December 31, 2017 is $270,920,799. This liability has been determined using the 

actuarial assumptions shown in Appendix C for funding purposes. As of December 31, 2017, the Market Value of Assets applicable to 

the use of the Presumptive Method of allocating UVB was $167,271,666. Because the present value of Vested Benefits exceeds the 

assets of the Fund, there are Unfunded Vested Benefits as of December 31, 2017. Consequently, a participating employer who 

withdraws from the Fund during the plan year beginning January 1, 2018 may have a Withdrawal Liability, which will be based on its 

share of the Unfunded Vested Benefits. 

In addition, a withdrawing employer will be assessed a portion of the Affected Benefit liability in accordance with the provisions of 

the Pension Protection Act. The Affected Benefit liability arose when the Fund removed certain Adjustable Benefits effective 

January 1, 2010. The unamortized balance of the Affected Benefit liability at December 31, 2017 is $228,164.

IBT730-0435
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

SECTION VI – FASB ASC 960 DISCLOSURES 

23

Table VI-1

Present Value of Accumulated Benefits as of January 1, 2018

in Accordance with FASB ASC 960

Amounts Counts

1. Actuarial Present Value of Vested Benefits

For Retirees and Beneficiaries $ 148,883,041 978

Terminated Vesteds 80,852,537 736

Active Participants 41,185,221 297

Total Vested Benefits $ 270,920,799 2,011

2. Non-vested Benefits $ 3,116,590 71

3. Present Value of Expected Administrative Expenses1$ 4,710,976

4. Accumulated Benefits $ 278,748,365 2,082

5. Market Value of Assets $ 167,271,666

6. Funded Ratios

Vested Benefits 62%

Accumulated Benefits 60%

Reconciliation of Present Value of Accumulated Benefits

1. Actuarial Present Value at Start of Prior Year $ 272,099,196

2. Increase (Decrease) over Prior Year due to:

Benefit Accruals $ 1,178,147

Benefit Payments (18,442,083)

Increase for Interest 21,138,696

Liability Experience (Gains)/Losses (1,936,567)

Changes in Assumptions 0

Plan Amendments 0

Total $ 1,938,193

3. Actuarial Present Value at End of Prior Year (w/o Administrative Expenses) 274,037,389 $ 

4. Present Value of Expected Administrative Expenses1$ 4,710,976

5. Actuarial Present Value at End of Prior Year (w/ Administrative Expenses) 278,748,365 $ 

1 The present value of expected administrative expenses is equal to 1.72% of the Accrued Liability.

IBT730-0436
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX A – MEMBERSHIP INFORMATION 

24

The data for this valuation was provided by Associated Administrators LLC (AA). Cheiron did not audit any of the data; however, the 

data was reviewed to ensure that it complies with generally accepted actuarial standards. The data is as of January 1, 2018. 

The following is a list of data charts contained in this section: 

 Age/Service Distribution for Active Participants 

 Counts and Average Benefit Amount by Age for Retirees, Beneficiaries, and Disabled Participants 

 Counts and Average Benefit Amount by Age for Terminated Vested Participants 

Table A-1

Age/Service Distribution of Active Participants as of January 1, 2018

COMPLETED YEARS OF CREDITED SERVICE

AGE 0-4 5-9 10-14 15-19 20-24 25-29 30 & Up Total

Under 25 6 0 0 0 0 0 0 6 

25-29 14 1 0 0 0 0 0 15 

30-34 19 17 7 0 0 0 0 43 

35-39 18 10 7 10 0 0 0 45 

40-44 6 9 11 11 3 0 0 40 

45-49 5 10 12 10 13 2 1 53 

50-54 7 5 9 11 6 19 7 64 

55-59 3 10 9 12 7 15 11 67 

60-64 4 3 7 6 6 1 4 31 

65 & Up 0 1 2 0 0 1 0 4 

Total 82 66 64 60 35 38 23 368 

Average Age = 46.9 Average Service = 14.0

IBT730-0437
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX A – MEMBERSHIP INFORMATION 

25

Normal, Early Surviving Spouses

Deferred Vested and Beneficiaries

Retirements Receiving Benefits Total

Age Number Monthly Benefit Number Monthly Benefit Number

Monthly 

Benefit

Under 55 15 65,114 $ 3 $ 1,595 18 66,709 $ 

55-59 66 261,231 5 2,832 71 264,063

60-64 226 541,151 19 9,597 245 550,748

65-69 177 286,589 26 12,178 203 298,767

70-74 155 181,997 32 15,859 187 197,856

75-79 132 128,225 21 8,222 153 136,447

80 & Over 82 54,432 19 5,702 101 60,134

Total 853 1,518,739 $ 125 55,985 $ 978 1,574,724 $ 

Monthly Benefit Payable at

Age Number Normal Retirement Date

Under 45 135 $ 150,535

45-49 123 220,042

50-54 214 463,493

55-59 197 406,441

60-64 50 50,360

65 & Over 17 9,550

Total 736 $ 1,300,421

Table A-2

Age/Benefit Distribution of Inactive Participants as of January 1, 2018

PENSIONERS AND BENEFICIARIES RECEIVING BENEFITS

DEFERRED VESTED PARTICIPANTS AND SURVIVING SPOUSES ENTITLED TO FUTURE BENEFITS

IBT730-0438
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX A – MEMBERSHIP INFORMATION 

26

Table A-3

Participant Reconciliation from January 1, 2017 to January 1, 2018

Terminated Deferred

Actives Vested Spouses Retired QDROs Spouses Total

1. January 1, 2017 Valuation 379 761 11 803 25 118 2,097 

2. Additions

a. New entrants 27 27

b. New spouse 0 

c. New QDRO 0 

d. Pickups 5 4 9 

Total Additions 27 0 0 5 0 4 36 

3. Reductions

a. Terminated - not vested (8) (8)

b. Non-Participating 0 

c. Lump sum 0 

d. Deaths without beneficiary (1) (9) (25) (6) (41) 

e. Data corrections, missing (2) (2) 

Total Reductions (9) (9) 0 (25) (2) (6) (51) 

4. Changes in status

a. Terminated - vested (14) 14 0 

b. Returned to work 7 (7) 0 

c. Retired (22) (33) (1) 55 1 0 

d. Died with beneficiary (4) 4 (4) 4 0 

e. Data corrections (4) 4 0 

Total Changes (29) (30) 3 47 0 9 0 

5. January 1, 2018 Valuation 368 722 14 830 23 125 2,082 

IBT730-0439
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

27

This summary of plan provisions provides an overview of the 

major provisions of the pension fund used in the actuarial 

valuation. It is not intended to replace the more precise 

language of the plan document and is not to be relied upon for 

calculating participant benefits. 

1. Eligibility 

Any employee on whose behalf contributions are made to 

the pension plan is eligible to participate in the Fund. 

2. Normal Retirement 

Eligibility: Age 60 with five years of service. 

 For service after the adoption or imposition of a 

Rehabilitation Benefit Schedule, the normal 

retirement age has been increased to age 62 with 

five years of service. 

Amount: The greater of the Flat Benefit or the Percentage 

of Contributions benefit given below. 

Flat Benefit 

Employer’s Contribution

At Least But Less Than

First 60 

Months

Later 

Months

---* $.15 $100* $ 55

$.15 $.25 $200 $110

$.25 $.35 $300 $165

$.35 $.45 $400 $220

$.45 --- $500 $275

* This benefit amount is applicable only if the employer’s effective 

date is after January 1, 1981. If the employer’s effective date is prior 

to January 1, 1981, the minimum flat benefit amount for contribution 

rates less than $0.25 is the $200/$110 amount. 

The flat benefit amounts are reduced 5% for each year of 

service for benefit accrual less than 20. Increases in the 

level of monthly benefits are made when the employer’s 

contribution rate is increased after the employer’s effective 

date, subject to certain limitations. 

Percentage of Contributions Benefit 

For service prior to the adoption or imposition of a 

Rehabilitation Benefit Schedule: 

A monthly life annuity reducing to 55% of the original 

amount after 60 months, equal to (a) 4.17% of all 

contributions required to be made on a participant’s behalf 

on and after January 1, 1978 plus (b) X% of all 

contributions required to be made on a participant’s behalf 

IBT730-0440
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

28

prior to January 1, 1978, where “X” is determined from the 

following table: 

Participant’s Age

on January 1, 1978 X%

Participant’s Age

on January 1, 1978 X%

60 or over 12.0 49 7.6

59 11.6 48 7.2

58 11.2 47 6.8

57 10.8 46 6.4

56 10.4 45 6.0

55 10.0 44 5.6

54 9.6 43 5.2

53 9.2 42 4.8

52 8.8 41 4.4

51 8.4 40 and under 4.17

50 8.0

For those employers who elected through a collective 

bargaining agreement to make a supplemental contribution 

beginning January 1, 1998, the monthly life annuity above 

reduces to 55% of the original amount after 96 months 

instead of 60. 

Effective for participants who earned an hour of service on 

or after January 1, 1999, 24 months is added to the number 

of months described above (i.e., 60 months and 96 months 

for a total of 84 and 120 months, respectively). 

For service after the adoption or imposition of a 

Rehabilitation Benefit Schedule: 

Preferred Schedule: 2.0% of all contributions required to 

be made on a participant’s behalf on and after the date of 

adoption of the Preferred Schedule, reducing to 1.0% after 

the pension has been in effect for 60, 84, 96, or 120 

months.

Default Schedule: 1.0% of all contributions required to be 

made on a participant’s behalf on and after the date of 

adoption or imposition of the Default Schedule. 

3. Early Retirement Benefit 

Eligibility: At least age 55 and has 20 continuous years of 

service for benefit accrual; and has ten 

continuous years of participation. 

Amount: Actuarial equivalent of the accrued normal 

retirement benefit. 

Eligibility: On completion of 30 years of service with the 

Fund. 

Amount: Accrued normal retirement benefit payable 

immediately. 

4. Postponed Retirement Benefit 

Participant Entitled to Flat Benefit 

A participant who elects to postpone his retirement beyond 

his normal retirement date is entitled to a postponed 

retirement benefit equal to the flat benefit increased by 5% 

IBT730-0441
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

29

for each year of service for benefit accrual after his normal 

retirement date, provided that the years of service for 

benefit accrual do not exceed 25, in the aggregate. 

Participant Entitled to Percentage 

A participant who elects to postpone his retirement of 

contributions benefit beyond his normal retirement date is 

entitled to a postponed retirement benefit, in lieu of his 

normal retirement benefit, in the amount of the normal 

retirement benefit calculated as if he had reached his 

normal retirement date on the day he actually retires. 

5. Termination Benefit 

Eligibility: Five credited years of service for vesting. 

Amount: A deferred annuity in the amount of the 

participant’s accrued normal benefit at 

termination commencing at the participant’s 

normal retirement age. 

6. Disability Retirement 

Eligibility: At least age 45, and has at least 15 continuous 

years of service for benefit accrual, and has at 

least five continuous years of participation, and 

has at least 40 weeks’ payments into the trust 

fund by an employer, and be totally and 

permanently disabled for at least 6 months as 

determined by trustees. 

Amount: A lump sum of $2.00 per paid week up to a 

maximum of $2,000. 

Eliminated after the adoption or imposition of a 

Rehabilitation Benefit Schedule. 

In addition, the participant is eligible for the termination 

benefit under the plan. 

7. Death Benefits 

Pre-Retirement Lump Sum Death Benefit 

Eligibility: Five continuous years of participation in the 

pension plan, and has had at least 40 weeks’ 

payments into the trust fund by an employer. 

Amount: $2.00 per paid week up to a maximum of $2,000 

reduced by any disability benefits paid. 

Eliminated after the adoption or imposition of a 

Rehabilitation Benefit Schedule. 

Pre-Retirement Spouse’s Pension 

Eligibility: Available only to married participants who are 

eligible for a termination benefit, including 

vested terminated participants. 

IBT730-0442
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

30

Amount: A life annuity to the participant’s lawful spouse 

in the amount of the surviving spouse’s benefit 

that would have been provided under the 

qualified joint and survivor annuity payable at 

what would have been the participant’s earliest 

retirement date. 

The pre-retirement spouse’s benefit will be paid in addition 

to the lump sum death benefit. 

8. Normal Form of Pension 

For participants who are married as of the normal 

retirement date, the normal retirement benefit is 

automatically payable as a joint and survivor annuity 

actuarially equivalent to the above benefit. The normal 

form of pension payable to a married employee who does 

not elect otherwise will be an actuarially reduced pension 

on the Joint and 50% Survivor basis. 

9. Effective Date of Plan 

August 15, 1965. Restated as of January 1, 2002. 

10. Last Amended 

Restated as of January 1, 2009 and executed on December 

17, 2009. The Rehabilitation Plan was last amended in 

2014 to adopt reasonable measures to forestall insolvency. 

11. Contributions 

Employee: None permitted or required. 

Employer: On an hourly or weekly basis, on behalf of 

participating employees, as specified in the 

applicable collective bargaining agreement. 

12. Changes since Last Valuation 

None. 

IBT730-0443
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

31

A. Actuarial Assumptions 

1. Rates of Investment Return 

8.00% for funding and disclosure purposes. 

2.98% for determining RPA ’94 Current Liability. 

This interest rate is the top of the corridor established 

by law. 

All investment returns are net of investment expenses. 

2. Rates of Mortality 

RP 2000 Mortality Table with blue-collar adjustment 

and generational mortality improvements. For current 

liability purposes, the 2018 Static Mortality Table as 

prescribed under IRS Regulations. 

3. Rates of Turnover

Double the combination of Sarason’s Advanced 

Pension Tables. Sample rates: 

Age Rate

20 24.77%

22 22.62

24 20.47

25 19.40

26 18.02

28 15.25

30 12.49

35 8.21

40 5.24

45 2.57

50 0.00

4. Rates of Retirement 

Age

Less than 

30 Years 

of Service

30 Years

of

Service

Over 30 

Years of 

Service

51 – 59 0% 50% 10%

60 and over 100% 100% 100%

5. Rates of Disability

None assumed. 

IBT730-0444
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

32

6. Marriage Rates

Percentage Married: Males – 80% 

Females – 80% 

Age Differences: Males are assumed to be three 

years older than spouse. 

7. Administrative Expenses

$358,623 payable at the beginning of the year. 

Projected expenses incorporate an expense inflation 

assumption of 3% per year. 

For financial disclosure under FASB ASC 960, the 

present value of future administrative expense is 1.72% 

of accrued liability. This amount is based on future 

projected cash flows of $172.25 per participant, midyear, that increase 3% per year for inflation. 

8. Active Participants

All non-retired participants who have hours worked 

during the plan year ending December 31, 2017. 

9. Future Hours Worked By Active Participants

Each active participant will work average annual hours 

worked in the past three years, excluding the year of 

entry. No participant is assumed to work less than 870 

hours per year. 

10. Contribution Rate Used for Determination of 

Minimum Flat Benefit 

The contribution rate in effect on January 1, 2018. 

11. Contribution Rate Used for Determination of 

Percentage of Contributions Benefit 

The contribution rate in effect on January 1, 2018. 

12. Participant Data 

This report is based upon employee data furnished by 

the Fund Administrator. All non-retired participants 

who have hours worked during the plan year ending 

December 31, 2017 are assumed to be active 

participants as of January 1, 2018 unless identified as 

having been terminated. 

13. Assets 

Provided by the independent auditors’ report as of 

December 31, 2017. 

The actuarial value of assets is based on the market 

value with an adjustment to smooth appreciation or 

depreciation in the market value over the past five 

years. 

80% of the net appreciation or depreciation for the most 

recently completed plan year is removed from the value 

of the assets, 60% of the appreciation or depreciation 

IBT730-0445
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

33

for the year prior to that is removed, etc., until the fifth 

year prior to this plan year for which none of the 

appreciation or depreciation is removed. The actuarial 

value of assets is adjusted, if necessary, to be within 

80% to 120% of the market value of the assets. 

14. Rehabilitation Plan Benefit Schedule 

In preparing our report and valuation results, all 

participating employers were valued under the 

Preferred Schedule as of January 1, 2018. 

15. Choice of Assumptions 

Economic: The expected investment return was chosen 

by comparing long-term real portfolio returns with 

inflation expectations. For a portfolio weighted 60% in 

US Large Cap equity and 40% in investment grade 

bonds, the 25-year return ending on the valuation date 

was 8.26% or a return in excess of inflation of 

approximately 6%. The Fund’s investments are 

invested more diversely than the model portfolio in 

expectation of generating higher returns but today’s 

inflation targets adopted by the Federal Reserve are 

lower than the experience over the last 25 years. A 

long-term rate return of a little over 8% would be 

indicated by history and Fed policy. 

Demographic: The demographic assumptions were last 

changed with the 2012 valuation. The gains and losses 

from demographic experience have been minor since 

then with the exception of a large number of actives 

becoming terminated vested due to their employer 

withdrawing from the Fund, which is not part of a 

demographic assumption set. An experience study will 

be performed in conjunction with the 2019 valuation. 

16. Changes in Assumptions since Last Valuation 

For funding calculations, the administrative expense 

assumption was changed from $334,170 to $358,623 to 

better reflect recent experience. 

For financial disclosure under FASB Topic ASC 960,

the present value of future administrative expense is 

based on future mid-year cash flows of $172.25 per 

participant that increase 3% per year for inflation. Last 

year we used $153.96 per participant. 

The RPA ’94 Current Liability interest rate was 

changed from 3.05 % to 2.98 % and the RPA ’94 

Current Liability mortality table was changed from the 

IRS 2017 Static Mortality Table to the IRS 2018 Static 

Mortality Table to comply with appropriate guidance. 

B. Actuarial Methods 

1. Asset Valuation Method 

The Actuarial Value of Assets is determined in 

accordance with Section 3.16 of Revenue Procedure 

2000-40 using a five-year smoothing period. 

Specifically, the actuarial value of assets as of January 

1, 2006 is set equal to the market value of assets. For 

IBT730-0446
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2018

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

34

each subsequent plan year, the actuarial value shall be 

the market value minus a decreasing fraction (4/5, 3/5, 

2/5, 1/5) of each gain or loss for each of the preceding 

four plan years except for 2008 market losses which are 

recognized at 10% a year due to funding relief. Gains or 

losses prior to January 1, 2006 are ignored. 

The resulting actuarial value of assets is then limited to 

be no greater than 120% and no less than 80% of the 

market value of assets on the valuation date. 

2. Funding Method: Entry Age Normal Cost Method 

Under the Entry Age Normal Cost Method, the 

individual Entry Age Normal cost is determined for 

each participant by calculating the level annual 

contribution required to fund that individual’s expected

benefits based on the current plan provisions over the 

participant’s expected active working lifetime with the 

Fund at entry. 

At the valuation date, the present value of future normal 

cost is calculated for each individual participant by 

multiplying the Entry Age Normal cost by the present 

value of the participant’s expected future active 

working lifetime with the Fund. The cost for each 

participant is then summed to yield the present value of 

future normal costs. 

The excess of the present value of future benefits for all 

individuals at the valuation date over the present value 

of future normal costs is called the Actuarial Liability, 

or past service liability. 

The excess, if any, of the actuarial liability over the 

actuarial value of assets is known as the unfunded 

accrued liability. If the actuarial value of assets exceeds 

the actuarial liability, the Fund may have a surplus. 

3. PRA 2010 Funding Relief 

The Fund’s Board of Trustees elected funding relief 

under §431(b)(8) of the Code and §304(b)(8) of 

ERISA, specifically: 

 The “special amortization rule,” which allows the 

Fund’s investment losses for the plan year ended 

December 31, 2008 be separately amortized over 29 

years. 

 The “special asset valuation rule” in determining 

the actuarial value of Fund assets which allows the 

Fund to recognize the 2008 investment loss over ten 

years, at 10% per year. 

 The “special asset corridor” which allows the upper 

limit on the actuarial value of assets to be raised 

from 120% to 130% of market value of assets for 

plan years beginning January 1, 2009 and 

January 1, 2010. 

4. Changes in Actuarial Methods Since Last Valuation

None. 

IBT730-0447
IBT730-0448
Warehouse Employee

Local No. 730 Pension Actuarial Valuation Reporas of January 1, 2020 Produced by Cheiron February 2021 
TABLE OF CONTENTS 

Section Letter of Transmittal ..................................................................................................................................................Foreword ....................................................................................................................................................................Section I Summary ............................................................................................................................................Section II Risk Analysis ....................................................................................................................................Section III Assets ................................................................................................................................................Section IV Liabilities ...........................................................................................................................................Section V Contributions......................................................................................................................................Section VI Withdrawal Liability ..........................................................................................................................Section VII FASB ASC 960 Disclosures ..............................................................................................................Appendices Appendix A Membership Information ...................................................................................................................Appendix B Summary of Major Plan Provisions ...................................................................................................Appendix C Actuarial Assumptions and Methods .................................................................................................
February 26, 2021 

Warehouse Employees Union Local No. 730 Pension Trust 911 Ridgebrook Road Sparks, Maryland 22102 Dear Trustees: At your request, we have performed the January 1, 2020 Actuarial Valuation of the Warehouse Employees Pension Trust (the “Fund”). This report contains information on the Fund’s assets and liabilities and discloseincluding the minimum required amount as mandated by Federal law. This report is for the use of the Boar

auditors in preparing financial reports in accordance with applicable law and accounting requirements. Your attention is called to the introductory section in which we refer to the general approach employed in treport. We also comment on the sources and reliability of both the data and the actuarial assumptions on which o

Those comments are the basis for our certification that this report is complete to the best of our knowledge and 

this report are only applicable to the 2020 Plan Year. Future results may differ significantly from the current p

this report due to such factors as the following: plan experience differing from that anticipated by the assumpchanges in assumptions; and changes in plan provisions or applicable law. This report and its contents have been prepared in accordance with generally recognized and accepted acpractices which are consistent with the Code of Professional Conduct and applicable Actuarial Standards of P

Actuarial Standards Board. Furthermore, as credentialed actuaries, we meet the Qualification Standards of the AActuaries to render the opinion contained in this report. This report does not address any contractual or legattorneys, and our firm does not provide any legal services or advice. This report was prepared exclusively for the Fund for the purposes described herein. Other users of this vaintended users as defined in the Actuarial Standards of Practice, and Cheiron assumes no duty or liability to any Sincerely, Cheiron Peter R. Hardcastle, CFA, FSA, MAAA, EA Principal Consulting Actuary Consulting Actuary
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

FOREWORD 

Cheiron has performed the Actuarial Valuation of the Warehouse Employees Union Local No. 730 Pension Trust as of January 1, 2020. The purpose of this report is to: 1) Measure and disclose, as of the valuation date, the 

financial condition of the Fund; 

2) Provide specific information and documentation required 

by the Federal Government and the auditors of the Fund; and 

3) Review past and expected trends in the financial 

conditions of the Fund. 

An actuarial valuation establishes and analyzes fund assets, liabilities and contributions on a consistent basis, and traces the progress of both from one year to the next. It includes measurement of the fund’s investment performance as well as an analysis of actuarial liability gains and losses. Section I presents a summary of the key valuation results, general comments about the results, a review of historical trends including assets versus liabilities, minimum funding, participation and cash flows, and projection scenarios. Section II discloses specific risks that may significantly affect the Plan’s future financial condition. Section III contains exhibits relating to the valuation of assets. Section IV shows the various measures of liabilities. Section

V shows the development of the minimum and 

maximum contributions. 

Section VI provides the calculation benefits for withdrawal liability purposes that would be allocated to employers tha2020 calendar year. Section VII provides the FASB ACodification (ASC) 960 Disclosure reqauditor. The appendices to this report contain a sumembership at the valuation date, a suprovisions of the Fund, and the acassumptions used in the valuation. In preparing our report, we relied on inand some written) supplied by Associated and Novak Francella, LLC. This informnot limited to, the fund provisions, financial information. We performed an of the obvious characteristics of the daand consistency in accordance with APractice No. 23. The actuarial assumptions reflect our likely future experience of the Fund and tindividually, represent our best estimexperience of the Fund. Future expsignificantly from the current results prdue to such factors as the following: plafrom that anticipated by the assumassumptions; and changes in plan provisioPlease note this valuation was prepared financial information as of the valuation and events following that date are not refl
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION I – SUMMARY 

The table below sets out the principal results of this year’s valuation and compares them to last year’s results. Bo

the Board adopted funding relief under Internal Revenue Code Sections 431(d) and 431(b)(8). 

Table I-1

Summary of Principal Results

January 1, 2019 January 1, 2020 

Participant Counts

Actives 301 294 Terminated Vesteds 738 703 In Pay Status 1,001 1,030 

Total 2,027 2,040 

Financial Information

Market Value of Assets 153,296,273 $

$ 161,910,558 

Actuarial Value of Assets 158,236,069 154,623,680 AVA as a % of MV

A 103.2% 95.5%

Entry Age Actuarial Liabilit

y

$ 279,273,711

$ 295,591,424 

Surplus (Unfunded Actuarial Liability) (121,037,642) (140,967,744) 

Present Value of Accrued Benefits/Accrued Liability

$ 275,242,089

$ 290,601,829 

Accrued Benefit Surplus (Unfunded) (117,006,020) (135,978,149) 

Accrued Benefit Funding Ratio (AVA Basis) 57.5% 53.2% Present Value of Vested Benefits $ 272,863,143 $ 288,102,507 

Vested Benefit Surplus (Unfunded) (119,566,870) (126,191,949) 

Vested Benefit Funding Ratio (MVA Basis) 56.2% 56.2% 

Contributions and Cash Flows

ERISA Credit Balance (Beginning of Year) $ (25,845,291) $ (36,920,899) 

Employer Contributions (actual/estimated ) 4,543,402 4,734,628 

ERISA Minimum Funding before Credit Balance 13,729,626 14,617,163 

Prior Year Benefit Payouts

$ 19,391,415

$ 20,567,862 

Prior 

Year Ad

ministrative 

Expenses 316,151 355,379
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION I – SUMMARY 

The following is an analysis of the Fund’s recent past performance followed by historical results for the last ten years. After that, projections of future results are shown. General Comments Investment and liability experience and their effect on future costs traditionally have been the focus of year-to-year analyses. The Market Value of Assets (MVA) returned 17.22% 

during the year ending December 31, 2019. The total actuarial investment gain (the difference between actual and expected returns) was $13.4 million. 

 For long-term planning and especially for minimum 

funding requirements, the Fund develops an Actuarial Value of Assets (AVA) to smooth investment gains and losses over time. Due to the continued phase-in of historical investment gains and losses of the past five years, the rate of return on the AVA was 8.51%, resulting in an actuarial gain of $0.8 million. 

 For minimum funding requirements, the Fund’s actuarial 

liability is determined using the Entry Age Normal Cost Method. Although the liability increased by $16.3 million (primarily due to assumption changes), it increased less than expected, resulting in a liability experience gain of $1.1 million. 

 Effective with this valuation, we have updated the discount 

rate assumption from 8.00% to 7.00%. Changes were also made to the retirement and mortality rates, as well as the 

marital and forms of payment assumpof the assumption changes was a $15the Actuarial Liability. Please refer to details on the changes to the actuarial 

 The end of year minimum required 

taking into account the credit bal$13.7 million to $14.6 million. The attributable to the assumption chanannual amortization charge of $1.6 m

 During the 2019 Plan Year, the Fund

increased from $25.8 million to $36Pension Protection Act of 2006 (PPAprovided the Fund has a valid Rehabemployers are complying with it. 

PPA added a significant layer of new cothe Fund’s PPA funded status.  For 2020, the Fund was certifie

Declining” under PPA as amended. Tcurrent funding deficiencies and the within the next 13 years. The PPA sannually. 

 The Fund’s funded ratio for PPA pur

accrued liability determined using Method. It decreased from 57.5% to 5the increase in liability for the assumas last year’s negative cash flow (conpayments and expenses) of approxassets. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION I – SUMMARY 

 The Board of Trustees of the Fund first adopted a 

Rehabilitation Plan (RP) on November 26, 2009. The Rehabilitation Plan is applicable for collective bargaining agreements and participation agreements renewed or extended after December 25, 2009. The Fund’s Rehabilitation Period began on January 1, 2012. After the initial adoption of the Rehabilitation Plan, subsequent employer withdrawals resulted in a deterioration of the funding of the plan. Consequently, in 2014 the Trustees updated the Rehabilitation and adopted a “reasonable measures to forestall insolvency” approach for PPA compliance. 

 In February 2010, the Trustees took a five-year extension 

of the Fund’s amortization bases as of January 1, 2009 under Section 431(d) of the Code. The net impact on the Funding Standard Account is a $18.2 million smaller funding deficiency, as of January 1, 2020, from what it would be without the Section 431(d) extension. Unless indicated otherwise, throughout this report, the terms credit balance and funding deficiency refer to the amounts reflecting the 431(d) extension. 

 The Unfunded Vested Benefits (UVB) on a market value 

basis increased from $119.6 million to $126.2 million. Under the provisions of the Multiemployer Pension Plan Amendment Act of 1980 (MPPAA) if the vested benefit liabilities exceed fund assets, an assessment of Withdrawal Liability may be made to any employer withdrawing from the Fund. 

Historical Summary It is important to take a step back from them in the context of the Plan’s recent hcharts which display key results in the vayears. Assets & Liabilities: The following grapassets and liabilities. The gold bars repreof vested benefits while the red barnon-vested benefits making up the Accruline is the Market Value of Assets and Actuarial Value of Assets. The percentathe bars represent the Fund’s PPA fundpercentage of Accrued Liabilities). 

81.8%

69.0% 70.2% 69.7% 67.2% 63.5% 6

$0

$50

$100$150$200$250$300$350

2011 2012 2013 2014 2015 2016 2

Millions

Vested Liability AMarket Value of Assets A
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION I – SUMMARY 

Minimum Funding: The next graph shows the Credit Balance (green area) which is the accumulated contributions in excess of the Minimum Required Contribution before the Credit Balance (red line), and the Actual Contributions (yellow line). 

-$40-$30-$20-$10

$0

$10$20$30

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

Credit Balance Minimum Required ContributionActual / Expected Contribution

On average, the contributions for the last ten years have been significantly lower than the minimum required contribution. This has caused a steep decline in the credit balance since 2012 leading to a funding deficiency beginning in 2017. Contributions, including expected Withdrawal Liability payments, are expected to again fall short of the minimum required contribution next year. 

Participation: The following graph showthe Fund at successive valuation dates. each bar represent the number of inactimembers (i.e., support ratio) at each support ratio increased significantly as oto the withdrawal of two participating eMcKesson) during 2012. Another increaJanuary 1, 2019 as a result of the 2018 Burch. 

768 831 859 882 926 946 

600

662

861 841 799 796 

925 816 444 413 416 406 

1.48 1.83

3.87 4.17 4.15 4.29 

0

500

1,0001,5002,0002,5003,000

2011 2012 2013 2014 2015 2016 2

Retirees Terminated Veste
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION I – SUMMARY 

Cash Flow: The following graph shows the Fund’s cash flow, contributions less benefit payments and expenses, at successive valuation dates. This is a critical measure, as it reflects the ability to have funds available to meet benefit payments without having to make difficult investment decisions, especially during volatile markets. The main consequence for a fund with negative cash flow is that the impact of market fluctuations will be more severe. This is because assets will have to be used to pay benefits in down markets. This means there will be less principal left to benefit from later favorable investment experience. 

-12%-10%-8%-6%-4%-2%0%2%4%6%8%

($60)($50)($40)($30)($20)($10)

$0

$10$20$30$40

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Millions

Plan Year Ending December 31,

Contributions Benefits & ExpensesInvestment Return Net Cash FlowNet Cash Flow %

Future Outlook In this section we move away from vieresults or historical trends and focus on tIn light of the Fund’s “Critical and Decthis future outlook focuses on the projectiThe following projection assumes pconstant, annual contribution increases o2% through 2032, and 0% thereafter, the Liability payments from McKesson Druthe assumptions set out in Appendix C the return of 7% per year. Under this scenario, the projection shows its assets during 2033. This is three yearprojection showed. This delay in insoresult of the return on the Market Value exceeding last year’s expected 8% return. 

53% 50% 47% 41% 34% 25% 13% 

$0

$50

$100$150$200$250$300$350

2020 2022 2024 2026 2028 2030 2032 

Millions Safe Endangered Seriously Endg 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION II – RISK ANALYSIS 

Actuarial valuations are based on a set of assumptions about future economic and demographic experience. In our opinion, the assumptions we are using are our best estimate of the Fund’s long-term future experience. Nonetheless, it is important to realize that future experience could deviate, sometimes significantly, from that predicted by our assumptions. This deviation of actual experience compared to expected experience can affect the future viability of the Fund and must be monitored closely. This section of the report is intended to identify the primary risks to this fund, provide some background information about those risks and the factors that influence them, and provide an assessment of them. Identification of Risks The primary risk that every plan faces is future insolvency. This is the risk that its current assets and future contributions are or will be inadequate to fund all plan benefits. For some plans, this risk is small. For others it is significant. This insolvency risk can manifest itself in several different ways: 

 An impending insolvency date, a near term date when its 

assets will be completely depleted, 

 Funded ratios that are declining, especially if they are 

currently less than 100%, and 

 Funded ratios that are never expected to exceed 100%. 

As shown in the previous section, under t

scenario, the Fund is projected to becom

2033 plan year. Once the Fund becomes required to be reduced to the PBGC guthis will have little or no impact for somresult in significant reductions in the mobeing paid for others. 

The remainder of this section focuses insolvency date could change thereby chtime before such benefit cuts would go items that will impact this date are: 

 Investment returns,  Contributions, and  Withdrawal Liability payments. 

Other risk factors that are not explicitly turn out to be important. Investment Risk is the potential for invdifferent than expected. The current assureturns is 7.00% per year net of investmelong-term expectation. In any given yeacan be greater than or less than this assumtime the geometric mean of the actual intime should be close to the assumption. Lower investment returns than anticipaexpected future funding ratio and contribution requirement which will lowethe future. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION II – RISK ANALYSIS 

The potential magnitude and volatility of future investment returns is influenced by economic conditions and the Fund’s asset allocation. A plan with an investment portfolio generating higher expected rates of return may anticipate lower future contribution requirements; however, this approach also comes with higher amounts of volatility. Due to the significant underfunding and large negative net cash flow, investment returns have a much less significant impact upon the projected insolvency date. The following projection illustrates the impact of investment returns by assuming a 0% return going forward. Under this scenario, the Fund is projected to be insolvent during the 2029 plan year, four years earlier than the baseline. 

53% 48% 38% 25% 9% 0% 0% 0% 0% 0% 0%

$0

$50

$100$150$200$250$300$350

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Millions Safe Endangered Seriously Endg Critical AVA MVA

Alternatively, if the Fund were to earn 1year, the insolvency date is pushed back the following projection. 

53% 52% 50% 46% 40% 32% 22% 

$0

$50

$100$150$200$250$300$350

2020 2022 2024 2026 2028 2030 2032 

Millions Safe Endangered Seriously Endg 

Contribution and Withdrawal Liability potential for actual future money comdeviate from what is expected in the bparticular, additional future withdrawals contribution income. Additionally, bankrwillingness or ability of previously witmake their required withdrawal liability p
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION II – RISK ANALYSIS 

The following projection illustrates the contribution and withdrawal liability risk by showing the impact of fully eliminating all such income. In this projection the Fund is projected to be insolvent during the 2029 plan year. 

53% 47% 39% 27% 12% 0% 0% 0% 0% 0% 0%

$0

$50

$100$150$200$250$300$350

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Millions Safe Endangered Seriously Endg Critical AVA MVA

The combination of no investment returns and the elimination of all future contribution and withdrawal liability income would move the insolvency into the 2027 plan year, as shown below. 

53% 45% 31% 11% 0% 0% 0% 0% 0% 0% 0%

$0

$50

$100$150$200$250$300$350

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Millions Safe Endangered Seriously Endg Critical AVA MVA
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION III – ASSETS 

Assets at Market Value Market values represent “snap-shot” or “cash-out” values, which provide the principal basis for measuring financial performance from one year to the next. 

Table III-1

Statement of Assets at Market Value, December 31

2018 2019

Invested Assets

Common Stocks $ 34,941,233 $ 43,571,348U.S. Government Agencies Notes and Bonds 860,220 668,067Corporate Notes and Bonds 1,721,131 1,020,887Limited Partnerships & DFEs 82,762,206 86,669,192Common Collective Trusts 21,110,554 24,905,194Temporary Investments 6,942,729 3,248,646

Total Investments: $ 160,083,334 148,338,073 $ 

Other Assets

Employer Contributions Receivable 303,271 378,288

Accrued Interest and Dividends 74,708 60,372Other Receivables 5,639 1,802Prepaid Expenses 21,668 25,146Cash 1,646,727 1,729,331Accounts Payable (125,220) (146,937)Accounts Receivable 2, 0 956,390Due to Broker 0 (145,761)

Total Non-Invested Assets: $ 1,827,224 4,958,200 $ Net Assets Available for Benefits $ 161,910,558 153,296,273 $ 

The table above shows the market value of assets taken into account for funding purposes. These values exclude receivable withdrawal liability payments because they are not “receivable” as defined by the IRS. At December 31, 2019, the amount including this receivable shown in the audited financial statement was $167,635,979. 

Changes in Market ValueThe components of asset change are: 

 Contributions  Benefit payments  Expenses  Investment income (realized and u

The specific changes during 2019 are pre

Table III-2 *

Changes in Market Va

Value of Assets - January 1, 2019 

Employer Contributions Withdrawal Liability Payments Investment Return (Gross) Benefit Payments Administrative Expenses Investment Expenses 

Value of Assets - January 1, 2020 

* On this table $1,000 of other income is classed a
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION III – ASSETS 

Investment Performance The following table calculates the actuarial investment gain/loss and the return for the plan year on a market value basis. The return is an appropriate measure for comparing the actual asset performance to the prior year’s long-term 8% assumption. 

Table III-3

Chan

ge in Market Value of Assets

Item Market ValueJanuary 1, 2019 value 153,296,273 $ 

2019 Employer Contributions 3,879,7282019 Withdrawal Liability Payments 663,6742019 Benefit Payments (20,567,862)Actual Administrative Expenses (355,379)Expected Investment Earnings (8%) 11,621,113

Expected Value December 31, 2019 148,537,547 $ Investment Gain / (Loss) 13,373,011

January 1, 2020 value 161,910,558 $ Investment Return 17.22%

Assets at Actuarial Value For long-term planning, actuaries develoof assets using smoothing techniques to short-term volatility exhibited by the capvaluation method, adopted with the 200actuarial investment gains and losses actuarial value of assets is then constrathat it is not more than 120% of the markethan 80% of the market value. The assedescribed more fully in Appendix C. The table below shows the development of assets. 

Table III-4

Development of Actuarial Valu

Market Value of Assets as of January 1, 2020 

Plan Investment Percent 

Year Gains / (Losses) Recognized 

12/31/2015 (5,127,301) 100% 

12/31/2016 (1,210,474) 80% 12/31/2017 11,936,534 60% 12/31/2018 (13,240,083) 40% 12/31/2019 13,373,011 20% 

Total 

Preliminary Actuarial Value of Assets January 1, 2020 120% of MV, upper limit for actuarial value 

80% of MV, lower limit for actuarial value 

Actuarial Value of Assets January 1, 2020 - as a percent of Market Value of Assets 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION III – ASSETS 

Asset Gain/(Loss) The following table calculates the investment gain/loss and the return for the plan year on an actuarial value basis. This gain/loss is one component of the Fund’s overall actuarial experience gain/loss, which is recognized for minimum funding requirements. Over 2019, the Fund’s assets at actuarial value produced an actuarial gain of $763,286. 

Table III-5

Chan

ge in Actuarial Value of Assets

Item Actuarial ValueJanuary 1, 2019 value 158,236,069 $ 

2019 Employer Contributions 3,879,7282019 Withdrawal Liability Payments 663,6742019 Benefit Payments (20,567,862)Expected Administrative Expenses (353,198)Expected Investment Earnings (8%) 12,001,983

Expected Value December 31, 2019 153,860,394 $ Investment Gain / (Loss) 763,286

January 1, 2020 value 154,623,680 $ Investment Return 8.51%
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION IV – LIABILITIES 

In this section, we present detailed information on the Fund’s liabilities including: Disclosure of the Fund’s liabilities at January 1, 2019 and 

January 1, 2020; and 

 Statement of changes in these liabilities during the year. Disclosure Several types of liabilities are calculated and presented in this report. Each type is distinguished by the purpose for which they are used.  Actuarial Liabilities: Used in determining minimum 

funding requirements, maximum tax-deductible contributions, and long-term funding targets, this amount is calculated using the Entry Age Normal Cost Method.

 Accrued Liabilities: Used for communicating the current 

levels of liabilities, these liabilities represent the total amount of money needed to fully pay off all future obligations of the Fund using funding assumptions and assuming no further accrual of benefits. They are determined using the Unit Credit Cost Method. 

These liabilities are used for deterunder PPA. The law requires them tactuarial value of assets to measure fualso be used to establish comparatother plans. The accrued liabilities must also be ifinancial statement for accounting (FASB ASC Topic No. 960). Howdisclosure must also include the pradministrative expenses. This sum Value of Accumulated Benefits. 

 Vested Liabilities: Used for admin

determining employer withdrawal lrepresents that portion of the accrued vested. 

 Current Liabilities: Used for 

compliance purposes, the calculatiodefined by federal regulations and maximum allowable tax-deductible co

The table on the following page discliabilities for the current valuation and respect to each disclosure, a subtractiovalue of fund assets yields, for each respor unfunded liability. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION IV – LIABILITIES 

Table IV-1

Liabilities/Net Sur

plus (Unfunded)

January 1, 2019 January 1

ACTUARIAL LIABILITY

Active Participant Benefits 47,049,955 $ 45,5

$ 

Retiree and Inactive Benefits 232,223,756 250,0

Actuarial Liability $ 279,273,711 $ 295,5

Actuarial Value of Assets 154,6

158,236,069

Net Surplus (Unfunded) (121,037,642) $ (140,9

$ 

ACCRUED LIABILITY 

Active Participant Benefits 43,018,333 $ 40,5

$ 

Retiree and Inactive Benefits 232,223,756 250,0

Accrued Liability 275,242,089 $ 290,6

$ 

Actuarial Value of Assets 158,236,069 154,6Net Surplus (Unfunded) $ (117,006,020) $ (135,9

VESTED LIABILITY

Accrued Liability $ 275,242,089 $ 290,6Less Present Value of Non-Vested Benefits 2,4

2,378,946

Vested Liability $ 272,863,143 $ 288,1

Actuarial Value of Assets 154,6

158,236,069

Net Surplus (Unfunded) (114,627,074) $ (133,4

$ 

CURRENT LIABILITY (RPA 1994)

Current Liability $ 472,8

474,757,777 $ 

Market Value of Assets 153,296,273 161,9

Net Surplus (Unfunded) (321,461,504) $ (310,9

$ 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION IV – LIABILITIES 

Allocation of Liabilities by TypeThe Fund’s participants may qualify for a benefit upon death, termination, and disability as well as upon retiremliabilities arising from each of these sources is shown in the following table. 

Table IV-2

Allocation of Liabilities by Type

Benefit Type Retirement Termination Death Expenses 

Entry Age Normal Cost $ 606,502 $ 172,199 $ 8,927 $ 366,579 

Entry Age Actuarial Liability

Actives $ 45,026,334 $ 271,679 $ 260,237 $ 

0 

Terminated Vesteds 79,970,379 0

0 

0

Retirees and Beneficiaries 163,612,871

0 6,449,924

0 

Total $ 208,639,205 $ 80,242,058 $ 6,710,161 $ 

0 

Current Liability Normal Cost $ 2,384,989 $ 261,838 $ 14,541 $ 

0 

Current Liability 

Actives $ 72,745,799 $ 3,621,221 $ 332,096 $ 

0 

Terminated Vesteds 151,318,754 0

0 

0

Retirees and Beneficiaries 235,739,438

0 9,134,767

0 

Total $ 308,485,237 $ 154,939,975 $ 9,466,863 $ 

0 

Vested Current Liability 

Actives $ 26,657,089 $ 45,812,957 $ 327,622 $ 

0 

Terminated Vesteds 151,318,754 0

0 

0

Retirees and Beneficiaries 235,739,438

0 9,134,767

0 

Total $ 262,396,527 $ 197,131,711 $ 9,462,389 $ 

0 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION IV – LIABILITIES 

Changes in Liabilities Each of the liabilities shown in the table below is subject to change at successive valuations as the experience o

that assumed in the valuation. The liabilities may change for any of several reasons, including: 

 New hires since the last valuation  Benefits accrued since the last valuation  Plan amendments  Interest on liabilities  Benefits paid to retirees  Participants leaving employment at rates different from expected  Changes in actuarial assumptions  Changes in actuarial methods 

Table IV-3

Reconciliation of LiabilitiesActuarial

Liability

Accrue

d

Liability

Liabilities as of Januar

y 1, 2019 $ 275,242,089 279,273,711 $ 

Liabilities as of Januar

y 1, 2020 $ 290,601,829 295,591,424 $ 

Liabilit

y Increase (Decrease) $ 15,359,740 16,317,713 $ 

Chan

ge Due due to:

 Plan Amendment $ 0 0 $  Assumption Change 14,691,479 15,725,253

 Accrual of Benefits 708,045 1,091,725 Passage of Time (Interest less benefits paid) 1,023,791 731,956 Other Sources 0 0 Actuarial Liability (Gain) / Loss (1,155,420

(1,139,376)

Total Change 16,317,713 $ 15,359,740 $ 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

In this section, we present detailed information on the Fund’s contributions from two perspectives:  Actuarially determined contributions or actuarial cost and  Government Limits, which could affect the above. Actuarial Determined Contributions For this Fund, the cost method used to calculate the actuarially determined contribution is the Entry Age Normal Cost Method. The actuarially determined contribution or cost is determined in two parts. The first part is the Entry Age Normal Cost. This is the level cost of providing the benefits promised by the Fund to each individual participant in service at the valuation date assuming that contributions are made over the period of the participant’s working life. The normal cost includes a provision for the Fund’s expenses. The second part is an amortization payment to pay off the unfunded actuarial liability. The unfunded actuarial liability is the difference between the actuarial assets of the Fund at the valuation date and the assets the Fund should hold as determined by the actuarial cost method. The amortization payment is determined using the amortization schedule established by the IRS minimum funding rules. Government LimitsERISA and the IRS tax code place various limits on the contributions made to qualified pension plans. The limits impact the minimum that must be paid, the maximum that can 

be deducted and the timing of contributio

required to retain an Enrolled Actuary to of funding through completion of Schedu

on an annual basis. The actcontribution/cost for 2020 is shown in compared to the various Government Limemployer contributions (including payments). The table below summarizes the results following pages. It also shows the pdetermined contribution/actuarial cost ancontribution. The cost is almost three contribution. 

Table V-1

Contributions for 2020

Actuarially Determined Contribution

Entry Age Normal Cost Administrative Expense Amortization Payment Interest to End of Year 

Total Government Limits

Maximum Deductible Contribution 

Minimum Required Contribution (before Credit BalaFunding Deficiency (with interest to End of Year) Minimum Contribution (after Credit Balance) 

Employer Contributions with Interest* Count of Active Participants Per Capita Actuarial Cost Per Capita Contribution 

* Estimated contributions of $4,734,628 (including interest to 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-2

Fundin

g Standard Account for 2019 and 2020 Plan Years

2019 2020 

1. Charges For Plan Year

a. Funding Deficienc

y $ 36,920,

25,845,291 $ 

b. Normal Cost with Expenses 1,061,243 1,154,

c. Amortization Charges 20,988,701 21,780,d. Interest on a. and b. to Year End 3,831,619 4,189,

e. Additional Funding Charge N/

A N

f. Interest Charge due to Late Quarterly Contributions N/

A N

g. Total Charges $ 51,726,854 $ 64,045,

2. Credits For Plan Year

a. Prior Year Credit Balance $ 

0 $ 

b. Employer Contributions (actual/expected ) 4,543,402 4,734,

c. Amortization Credits 9,337,327 9,273,d. Interest on a., b., and c. to Year End 925,226 812,

e. Full Funding Limit Credit

0

f. Total Credits $ 14,805,955 $ 14,820,

3. Credit Balance at End of Year [2. - 1., not less than $0] $ 

0 $ 

4. Funding Deficiency at End of Year [1. – 2., not less than $0] 36,920,899 $ $ 49,224,
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-3

Calculation of the Maximum Deductible Contribution

for the Plan Year Starting January 1, 2020

1. "Fresh Start" Method

a. Normal Cost with Expenses 1,154,2

$ 

b. Net Charge to Amortize Unfunded Actuarial Liability Over 10 years 18,757,6

c. Interest on a. and b. 1,393,8d. Total 21,305,6

e. Minimum Required Contribution at Year End 54,122,5f. Larger of d. and e. 54,122,5g. Full Funding Limitation as of Year End 278,199,2

h. Regular Maximum Deductible Contribution, lesser of f. and g. $ 54,122,5

2. 140% of Current Liability Calculation*

a. RPA 1994 Current Liability at Start of Year $ 472,892,0

b. Present Value of Benefits Estimated to Accrue during Year 2,661,3

c. Expected Benefit Payments 21,696,7d. Net Interest on a., b. and c. at Current Liability Interest Rate 13,711,1

e. Expected Current Liability at End of Year, [a. + b. – c. + d.] 467,567,8

f. 140% of e. 654,594,9g. Actuarial Value of Assets 154,623,6

h. Expected Expenses at Start of Year 366,5i. Net Interest on c., g. and h. at Valuation Interest Rate 10,051,4

j. Estimated Value of Assets, [g. – c. – h. + i.] 142,611,8

k. Unfunded Current Liability at Year End, [f. – j.] $ 511,983,1

3. Maximum Deductible Contribution at Year End, greater of 1. and 2. $ 511,983,1

* Based on combined mortality specified in Reg. §1.412(l)(7)-1 and an interest rate of 2.95%.
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-4

Development of Actuarial Gain/(Loss)

for the Year Ended December 31, 2019

1. Unfunded Actuarial Liability at Start of Year $ 121,03

2. Normal Cost (with expenses) at Start of Year 1,06

$ 

3. Interest on 1. and 2. to End of Year 9,76

$ 

4. Employer Contributions for Year 4,54

$ 

5. Interest on 4. to End of Year 17

$ 

6. Change in Unfunded Actuarial Liability Due to Changes in Plan Desig

n $ 

7. Change in Unfunded Actuarial Liability Due to Changes in Assumptions 15,72

$ 

8. Expected Unfunded Actuarial Liability at End of Year $ 142,87

[1. + 2. + 3. – 4. - 5. + 6.+ 7.]

9. Actual Unfunded Actuarial Liability at End of Year, not less than zero $ 140,96

10. Actuarial Gain / (Loss) [8. – 9.] 1,90

$ 

(a) Liability Gain / (Loss) 1,13

$ 

(b) Asset Gain / (Loss) 76

$ 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2020

1/1/2020 Remaining Beginning 

Date Outstanding Amortization Amortiz

Type of Base Established Balance Years 1 Amou

CHARGES

1. Change in Actuarial Cost Method 01/01/1984 281,787 $ 1 

$ 

2. Increase in Employer Contributions 01/01/1986 3,096 1 

3. Plan Amendments 01/01/1986 111,332 1 

4. Increase in Employer Contributions 01/01/1987 177,553 2 

5. Change in Actuarial Assumptions 01/01/1988 22,321 3 

6. Increase in Employer Contributions 01/01/1988 292,141 3 7. Increase in Employer Contributions 01/01/1989 449,643 4 8. Increase in Employer Contributions 01/01/1990 465,170 5 9. Increase in Employer Contributions 01/01/1991 865,315 6 

10. Plan Amendments 01/01/1992 25,964 7 

11. Increase in Employer Contributions 01/01/1992 381,955 7 

12. Change in Actuarial Cost Method 01/01/1992 171,398 1 

13. Change in Actuarial Assumptions 01/01/1992 1,110,848 7 

14. Increase in Employer Contributions 01/01/1993 661,891 8 15. Increase in Employer Contributions 01/01/1994 876,416 9 16. Increase in Employer Contributions 01/01/1995 761,800 10 17. Plan Amendments 01/01/1996 448,565 11 

18. Increase in Employer Contributions 01/01/1996 859,677 11 

19. Plan Amendments 01/01/1997 30,236 12 

20. Increase in Employer Contributions 01/01/1997 942,588 12 

21. Increase in Employer Contributions 01/01/1998 419,869 13 

22. Plan Amendments 01/01/1998 7,622,932 13 

23. Increase in Employer Contributions 01/01/1999 1,343,221 14 24. Plan Amendments 01/01/1999 3,031,880 14 25. Increase in Employer Contributions 01/01/2000 345,535 15 

26. Plan Amendments 01/01/2001 297,970 16 

27. Change in Actuarial Assumptions 01/01/2001 551,620 16 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2020

1/1/2020 Remaining Beginning 

Date Outstanding Amortization Amorti

Type of Base Established Balance Years 1 Amo

CHARGES

28. Experience Loss 01/01/2001 79,557 $ 1 

$ 

29. Increase in Employer Contributions 01/01/2001 1,856,649 16 

30. Plan Amendments 01/01/2002 481,951 17 

31. Increase in Employer Contributions 01/01/2002 1,698,294 17 

32. Experience Loss 01/01/2002 383,228 2 

33. Increase in Employer Contributions 01/01/2003 1,910,252 18 

34. Experience Loss 01/01/2003 2,322,775 3 

35. Increase in Employer Contributions 01/01/2004 1,726,264 19 

36. Experience Loss 01/01/2004 2,138,167 4 

37. Increase in Employer Contributions 01/01/2005 1,956,679 20 

38. Experience Loss 01/01/2005 2,182,429 5 

39. Recognized Portion of the 2008 ENIL 01/01/2009 37,653,124 18 

40. Bifurcation Base 01/01/2009 6,286,715 9 

41. Bifurcation Base 01/01/2010 3,536,609 5 

42. Recognized Portion of the 2008 ENIL 01/01/2011 5,445,651 18 

43. Method Change 01/01/2011 2,064,947 1 

44. Recognized Portion of the 2008 ENIL 01/01/2012 17,435,615 18 

45. Assumption Change 01/01/2012 9,081,761 7 

46. Recognized Portion of the 2008 ENIL 01/01/2013 5,828,197 18 

47. Recognized Portion of the 2008 ENIL 01/01/2014 3,676,923 18 

48. Experience Loss 01/01/2015 3,704,629 10 

49. Experience Loss 01/01/2016 5,873,917 11 

50. Experience Loss 01/01/2017 2,211,704 12 

51. Experience Loss 01/01/2018 1,847,665 13 

52. Assumption Change 01/01/2020 15,725,253 15 

TOTAL CHARGES $ 159,661,678 $ 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-5

Schedule of Amortizations Required for Minimum Required Contribution

as of January 1, 2020

1/1/2020 Remaining Beginni

Date Outstanding Amortization Amor

Type of Base Established Balance Years Am

CREDITS

1. Change in Actuarial Assumptions 01/01/1994 153,135 $ 4 

$ 

2. Change in Actuarial Assumptions 01/01/1996 1,585,452 6 

3. Change in Actuarial Assumptions 01/01/1999 137,966 9 

4. Change in Actuarial Assumptions 01/01/2002 765,113 12 

5. Experience Gain 01/01/2006 594,143 1 

6. Experience Gain 01/01/2007 429,882 2 

7. Experience Gain 01/01/2008 1,739,523 3 

8. Method Change 01/01/2009 11,697,211 19 

9. Recognized Portion of the 2008 ENIL 01/01/2010 6,712,160 18 

10. Plan Amendment 01/01/2010 9,796,190 5 11. Bifurcation Base 01/01/2011 4,096,731 6 12. Bifurcation Base 01/01/2012 1,880,753 7 13. Bifurcation Base 01/01/2013 10,544,184 8 14. Bifurcation Base 01/01/2014 2,825,350 9 15. Experience Gain 01/01/2019 754,378 14 16. Experience Gain 01/01/2020 1,902,662 15 

TOTAL CREDITS 55,614,833 $ NET CHARGE $ 104,046,845 $ 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-6

Accumulated Reconciliation Account and Balance Test

as of Januar

y 1, 2020

1. Amount due to Additional Interest Charges in prior years $ 

2. Amount due to Additional Funding Charges in prior years 

3. Reconciliation Account at Start of Year $ 

[1. + 2.]

4. Net Outstanding Amortization Bases $ 104,046,

5. Funding Deficiency at Start of Year $ 36,920,6. Unfunded Actuarial Liability at Start of Year from Funding Equatio

n $ 140,967,

[4. – 3. + 5.]

7. Actuarial Liability at Start of Year $ 295,591,

8. Actuarial Value of Assets at Start of Year 154,623,

$ 

9. Unfunded Actuarial Liability at Start of Year from Liability Calculatio

n $ 140,967,

[7. – 8., Limited to Zero]The Fund passes the Balance Test because line 6. equals line 9.
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION V – CONTRIBUTIONS 

Table V-7

Development of Full Fundin

g Limitation

for Plan Year Startin

g Januar

y 1, 2020

Minimum M

1. Entry Age Actuarial Liability Calculatio

n

a.

Actuarial Li

ability

$ 295,591,424

$ 2

b. Normal Cost with

Expenses 1,154,207 

c. Lesser o

f Mar

ket Value an

d

Actuarial Value o

f

Assets 15

4,623,680 1

d. Credit Balance/(Funding Deficiency) at Start of Year (36,920,899)

e.

Actuarial Li

ability 

F

ull

Funding Limit $ 112,565,126

$ 1

[a. + 

b. – c. + 

d.] x 1.07, limite

d to zero

2. F

ull

Funding Limit Overide (RPA 1994)

Interest 

Rate use

d to 

C

alculate 

Current Li

ability

2.95%

a. RPA 1994

Current Li

abilty at 

Start o

f

Year

$ 472,892,075

$ 4

b. Present 

V

alue o

f

Benefits 

Estimate

d to 

Accrue 

during 

Year

2,661,368

c.

Expecte

d

Benefit Payments 21,696,748 

d. Net Interest on a., 

b. an

d c. at 

Current Li

ability Interest 

Rate 13,711,126 

e.

Expecte

d

Current Li

ability at 

E

n

d o

f

Year, [a. + 

b. – c. + 

d.] 467,567,821 4

f. 90% o

f e. 420,811,039 4

g.

Actuarial V

alue o

f

Assets at 

Start o

f

Year 154,623,680 1

h. Expecte

d

Expenses 366,579 

i. Net Interest on c., g. an

d

h. at 

V

aluation Interest 

Rate 10,051,454 

j. Estimate

d

V

alue o

f

Assets, [g. – c. – 

h. + i.] 142,611,807 1

k. RPA 1994

F

ull

Funding Limit Overrid

e

$ 278,199,232

$ 2

3. F

ull

Funding Limitation at 

E

n

d o

f

Year, greater o

f 1e. an

d 2k. $ 278,199,232

$ 2
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION VI – WITHDRAWAL LIABILITY 

The Multi-Employer Pension Plan Amendments Act of 1980 (MPPAA) provides that a contributing employer wmulti-employer pension plan, either partially or totally, will be liable to the fund for a share of the fund’s Unfu(UVB) that exist as of the end of the plan year prior to the year in which the withdrawal occurs. The UVB is Presumptive Method as described in ERISA §4211(b)(1). Vested Benefits are the benefits that the Fund cannot take away from participants. Vested Benefits beloparticipants: those former employees who have retired and are currently receiving retirement benefits; and former employees who have not yet retired, but who have accumulated enough service to earn the right to receiv

do retire even if their employment is terminated prior to retirement. 

The total liability for all Vested Benefits as of December 31, 2019 is $288,102,507. This liability has been 

actuarial assumptions shown in Appendix C for funding purposes. As of December 31, 2019, the Market Value othe use of the Presumptive Method of allocating UVB was $161,910,558. Because the present value of Vested assets of the Fund, there are Unfunded Vested Benefits as of December 31, 2019. Consequently, a particiwithdraws from the Fund during the plan year beginning January 1, 2020 may have a Withdrawal Liability, whishare of the Unfunded Vested Benefits. In addition, a withdrawing employer will be assessed a portion of the Affected Benefit liability in accordance 

the Pension Protection Act. The Affected Benefit liability arose when the Fund removed certain AdjustabJanuary 1, 2010. The unamortized balance of the Affected Benefit liability at December 31, 2019 is $174,977. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

SECTION VII – FASB ASC 960 DISCLOSURES 

Table VII-1

Present Value of Accumulated Benefits as of Januar

y 1, 2020

in Accordance with FASB ASC 960

Amounts Counts

1. Actuarial Present Value of Vested Benefits

For Retirees and Beneficiaries 170,062,795 $ 1,030Terminated Vesteds 79,970,379 703

Active 

Participants 38,069,333 244

Total Vested Benefits $ 288,102,507 1,977

2. Non-vested Benefits $ 2,499,322 503. Present Value of Expected Administrative Expenses1 $ 4,636,103

4. Accumulated Benefits 295,237,932 $ 2,0275. Market Value of Assets 161,910,558 $ 6. Funded Ratios

Vested Benefits 56%Accumulated Benefits 55%

Reconciliation of Present Value of Accumulated Benefits

1. Actuarial Present Value at Start of Prior Year 275,242,089 $ 2. Increase (Decrease) over Prior Year due to:

Benefit Accruals 1,091,725 $ Benefit Payments (20,567,862)Increase for Interest 21,299,818Liability Experience (Gains)/Losses (1,155,420)

Changes in Assumptions 14,691,479Plan Amendments 0

Total 15,359,740 $ 

3. Actuarial Present Value at End of Prior Year (w/o Administrative Expenses) 290,601,829 $ 4. Present Value of Expected Administrative Expenses1 $ 4,636,103

5. Actuarial Present Value at End of Prior Year (w/ Administrative Expenses) 295,237,932 $ 

1 The present value of expected administrative expenses is equal to 1.60% of the Accrued Liability.
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX A – MEMBERSHIP INFORMATION 

The data for this valuation was provided by Associated Administrators LLC (AA). Cheiron did not audit any of 

data was reviewed to ensure that it complies with generally accepted actuarial standards. The data is as of JanuarThe following is a list of data charts contained in this section: 

 Age/Service Distribution for Active Participants  Counts and Average Benefit Amount by Age for Retirees, Beneficiaries, and Disabled Participants 

 Counts and Average Benefit Amount by Age for Terminated Vested Participants 

Table A-1

Age/Service Distribution of Active Participants as of Januar

y 1, 2020

COMPLETED YEARS OF CREDITED SERVICE

AGE 0-4 5-9 10-14 15-19 20-24 25-29 30 & Up T

Under 25 9 0 0 0 0 0 0 

25-29 6 3 0 0 0 0 0 30-34 11 15 8 0 0 0 0 35-39 11 13 10 8 1 0 0 40-44 6 4 13 6 6 0 0 45-49 1 3 13 5 7 3 0 50-54 5 3 7 9 15 6 12 55-59 2 3 11 10 5 7 10 60-64 1 1 4 2 6 3 2 

65 & Up 1 1 3 1 0 0 2 

Total 53 46 69 41 40 19 26 

Average Age = 46.6 Average Service = 14.5
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX A – MEMBERSHIP INFORMATION 

Normal, Early Surviving Spouses

Deferred Vested and Beneficiaries

Retirements Receiving Benefits Total

Age Number

Monthl

y

Benefit Number Monthly Benefit Number

Monthl

y

Benefit

Under 55 12 49,294 $ 2 952 $ 14 50,246 $ 

55-59 53 195,044 7 5,388 60 200,43260-64 235 605,380 18 7,345 253 612,72565-69 211 395,497 23 11,346 234 406,84370-74 156 193,135 26 14,268 182 207,40375-79 135 132,944 24 13,180 159 146,124

80 & Over 103 86,150 25 7,269 128 93,419

Total 905 1,657,444 $ 125 59,748 $ 1,030 1,717,192 $ 

Monthl

y Benefit Pa

yable at

Age Number Normal Retirement Date

Under 45 112 $ 117,125

45-49 107 144,71350-54 184 383,39255-59 224 461,29160-64 53 53,042

65 & Over 23 11,248

Total 703 $ 1,170,811

Table A-2

Age/Benefit Distribution of Inactive Participants as of January 1, 2020

PENSIONERS AND BENEFICIARIES RECEIVING BENEFITS

DEFERRED VESTED PARTICIPANTS AND SURVIVING SPOUSES ENTITLED TO FUTURE BENEF
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX A – MEMBERSHIP INFORMATION 

Table A-3

Participant Reconciliation from January 1, 2019 to January 1, 2020

 Terminated Deferred

Actives Vested Spouses Retired QDROs Spou

1. January 1, 2019 Valuation 301 722 16 849 22 

 

2. Additions

a. New entrants 

25

b. New spouse 

c. New QDRO 6 

d. Pickups 

Total Additions 25 0 0 0 6 

3. Reductions

a. Terminated - not vested 

(4)

b. Non-Participating 

c. Lump sum 

d. Deaths without beneficiary (2) (1) (24) (1) 

 

e. Data corrections, missing (3) (1) (1) 

 

Total Reductions (6) (1) (25) (4) (1) 

4. Changes in status

a. Terminated - vested (16) 

16

b. Returned to work 3 (3) 

c. Retired (11) 55 (44) 

d. Died with beneficiary (2) (5) 6 (1) 

 

e. Data corrections 

Total Changes (26) (36) 54 6 0 

 

5. January 1, 2020 Valuation 294 685 878 18 

27 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

This summary of plan provisions provides an overview of the major provisions of the pension fund used in the actuarial valuation. It is not intended to replace the more precise language of the plan document and is not to be relied upon for calculating participant benefits. 1. Eligibility 

Any employee on whose behalf contributions are made to the pension plan is eligible to participate in the Fund. 

2. Normal Retirement 

Eligibility: Age 60 with five years of service.  For service after the adoption or imposition of a 

Rehabilitation Benefit Schedule, the normal retirement age has been increased to age 62 with five years of service. 

Amount: Percentage of Contributions For service prior to the adoption or imposition of a Rehabilitation Benefit Schedule: A monthly life annuity reducing to 55% of the original amount after 60 months, equal to (a) 4.17% of all contributions required to be made on a participant’s behalf on and after January 1, 1978 plus (b) X% of all contributions required to be made on a participant’s behalf prior to January 1, 1978, where “X” is determined from the following table: 

Participant’s Age 

on January 1, 1978 X% 

Partici

on Janu

60 or over 12.0 

59 11.6 58 11.2 57 10.8 56 10.4 55 10.0 54 9.6 53 9.2 52 8.8 51 8.4 40 a50 8.0 

For those employers who elected bargaining agreement to make a suppbeginning January 1, 1998, the montreduces to 55% of the original aminstead of 60. Effective for participants who earned or after January 1, 1999, 24 months iof months described above (i.e., 60 mfor a total of 84 and 120 months, respFor service after the adoption Rehabilitation Benefit Schedule: Preferred Schedule: 2.0% of all conbe made on a participant’s behalf on adoption of the Preferred Schedule, rthe pension has been in effect for months. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

Default Schedule: 1.0% of all contributions required to be made on a participant’s behalf on and after the date of adoption or imposition of the Default Schedule. 

3. Early Retirement Benefit 

Eligibility: On completion of 30 years of service with the 

Fund. 

Amount: Accrued normal retirement benefit payable 

immediately. 

4. Postponed Retirement Benefit 

A participant who elects to postpone his retirement of contributions benefit beyond his normal retirement date is entitled to a postponed retirement benefit, in lieu of his normal retirement benefit, in the amount of the normal retirement benefit calculated as if he had reached his normal retirement date on the day he actually retires. 

5. Termination Benefit 

Eligibility: Five credited years of service for vesting. Amount: A deferred annuity in the amount of the 

participant’s accrued normal benefit at termination commencing at the participant’s normal retirement age. 

6. Death Benefits 

Pre-Retirement Lump Sum Death BenEligibility: Five continuous years of 

pension plan, and has hapayments into the trust fun

Amount: $2.00 per paid week up to 

reduced by any disability bEliminated after the adoptRehabilitation Benefit Sch

Pre-Retirement Spouse’s Pension Eligibility: Available only to married 

eligible for a terminatiovested terminated participa

Amount: A life annuity to the partic

in the amount of the survthat would have been qualified joint and survivwhat would have been the retirement date. 

The pre-retirement spouse’s benefit wto the lump sum death benefit. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX B – SUMMARY OF MAJOR PLAN PROVISIONS 

7. Normal Form of Pension 

For participants who are married as of the normal retirement date, the normal retirement benefit is automatically payable as a joint and survivor annuity actuarially equivalent to the above benefit. The normal form of pension payable to a married employee who does not elect otherwise will be an actuarially reduced pension on the Joint and 50% Survivor basis. 

8. Effective Date of Plan 

August 15, 1965. Restated as of January 1, 2002. 

9. Last Amended 

Restated as of January 1, 2009 and executed on December 17, 2009. The Rehabilitation Plan was last amended in 2014 to adopt reasonable measures to forestall insolvency. 

10. Contributions 

Employee: None permitted or required. Employer: On an hourly or weekly basis, on behalf of 

participating employees, as specified in the applicable collective bargaining agreement. 

11. Changes since Last Valuation 

None. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

A. Actuarial Assumptions 

1. Rates of Investment Return 

Funding purposes: 7.00% Current Liability under RPA 1994: 2.95% This interest rate is the top of the corridor established by law. All investment returns are net of investment expenses. 

2. Rates of Mortality 

Funding: SOA RP-2014 Blue Collar Mortality adjustment to 2006, generationally projected using scale MP-2019 Current Liability under RPA 1994: The 2020 Static Mortality Table as prescribed under IRS Regulations. 

3. Rates of Disability 

None assumed. 

4. Rates of Turnover 

Double the combination of SarasoPension Tables. Sample rates: 

Age Rate 

20 24.7722 22.624 20.425 19.426 18.028 15.230 12.435 8.240 5.245 2.550 0.0

5. Rates of Retirement 

For individuals commencing from 

Age 

Less than 30 Years 

of Service 

NRA = 60 NRA = 62

<60 0% 0% 

60 25% 0% 61 15% 0% 62 15% 25% 

63 – 64 15% 15% 

65+ 100% 100% 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

6. Rates of Retirement (continued) 

For individuals commencing from Inactive status: 

Age 

NRA 

of 60 

NRA 

of 62 

<60 0% 0% 

60 50% 0% 61 25% 0% 62 25% 50% 

63-64 25% 25% 

65+ 100% 100% 

7. Marriage Rates 

Percentage Married: Males – 61% 

Females – 61% 

Age Differences: Males are assumed to be three 

years older than spouse. 

8. Payment Form Elections 

Level Income Option – 65% Single Life or Certain Annuity – 15% Joint & Survivor Annuity – 20% 

9. Administrative Expenses

$366,579 payable at the begProjected expenses incorporate assumption of 2% per year. For financial disclosure under Fpresent value of future administraof accrued liability. This amounprojected cash flows of $180.85 year, that increase 2% per year for 

10. Active Participants

All non-retired participants who during the plan year ending Decem

11. Future Hours Worked By Activ

Each active participant will work worked in the past three years, entry. No participant is assumed hours per year. 

12. Contribution Rate Used for 

Minimum Flat Benefit The contribution rate in effect on 

13. Contribution Rate Used for 

Percentage of Contributions BenThe contribution rate in effect on 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

14. Participant Data 

This report is based upon employee data furnished by the Fund Administrator. All non-retired participants who have hours worked during the plan year ending December 31, 2019 are assumed to be active participants as of January 1, 2020 unless identified as having been terminated. 

15. Assets 

Provided by the independent auditors’ report as of December 31, 2019. The Actuarial Value of Assets is based on the market value with an adjustment to smooth appreciation or depreciation in the market value over the past five years. 80% of the net appreciation or depreciation for the most recently completed plan year is removed from the value of the assets, 60% of the appreciation or depreciation for the year prior to that is removed, etc., until the fifth year prior to this plan year for which none of the appreciation or depreciation is removed. The actuarial value of assets is adjusted, if necessary, to be within 80% to 120% of the market value of the assets. 

16. Rehabilitation Plan Benefit Sche

In preparing our report and vparticipating employers were Preferred Schedule as of January 

17. Choice of Assumptions 

Economic: The expected investmby modeling the Fund’s current asHorizon Investment Survey. Treturn is 6.53% and the expect7.34%. Historically the Fund has 

return over the past 10 years. Tahistorical returns and forward lolong-term rate return of 7% is reasDemographic: The demographireviewed and updated to bexperience. 

18. Changes in Assumptions since L

The assumed retirement and morthe forms of payment and mariupdated to better reflect actual expThe discount rate assumption 8.00% to 7.00% to better expectations. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

For funding calculations, the administrative expense assumption was changed from $353,198 to $366,579. For financial disclosure under FASB Topic ASC 960, the present value of future administrative expense is based on future mid-year cash flows of $180.85 per participant that increase 2% per year for inflation. Last year we used $173.14 per participant, and a 3% inflation assumption. The RPA ’94 Current Liability interest rate was changed from 3.06% to 2.95% and the RPA ’94 Current Liability mortality table was changed from the IRS 2019 Static Mortality Table to the IRS 2020 Static Mortality Table to comply with appropriate guidance.
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

B. Actuarial Methods 

1. Asset Valuation Method 

The Actuarial Value of Assets is determined in accordance with Section 3.16 of Revenue Procedure 2000-40 using a five-year smoothing period. Specifically, the actuarial value of assets as of January 1, 2006 is set equal to the market value of assets. For each subsequent plan year, the actuarial value shall be the market value minus a decreasing fraction (4/5, 3/5, 2/5, 1/5) of each gain or loss for each of the preceding four plan years except for 2008 market losses which are recognized at 10% a year due to funding relief. Gains or losses prior to January 1, 2006 are ignored. The resulting actuarial value of assets is then limited to be no greater than 120% and no less than 80% of the market value of assets on the valuation date. 

2. Funding Method: Entry Age Normal Cost Method 

Under the Entry Age Normal Cost Method, the individual Entry Age Normal cost is determined for each participant by calculating the level annual contribution required to fund that individual’s expected benefits based on the current plan provisions over the participant’s expected active working lifetime with the Fund at entry. 

At the valuation date, the present cost is calculated for each indi

multiplying the Entry Age Normvalue of the participant’s expworking lifetime with the Fundparticipant is then summed to yiefuture normal costs. 

The excess of the present value of individuals at the valuation date oof future normal costs is called thor past service liability. The excess, if any, of the actuaactuarial value of assets is knoaccrued liability. If the actuarial vthe actuarial liability, the Fund ma

3. PRA 2010 Funding Relief 

The Fund’s Board of Trustees under §431(b)(8) of the Code ERISA, specifically:  The “special amortization ru

Fund’s investment losses for December 31, 2008 be separatyears. 

4. Changes in Actuarial Methods S

None. 
WAREHOUSE EMPLOYEES UNION LOCAL NO. 730 PENSION TRUST 

ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2020 

APPENDIX C – ACTUARIAL ASSUMPTIONS AND METHODS 

5. Reliance on Models 

Cheiron utilizes ProVal, an actuarial valuation software leased from Winklevoss Technologies (WinTech) to calculate the liabilities, normal costs and projected benefit payments. We have relied on WinTech as the developer of ProVal. We have reviewed ProVal and have a basic understanding of it and have used ProVal in accordance with its original intended purpose. We have not identified any material inconsistencies in assumptions or output of ProVal that would affect this actuarial valuation. Projections in this report were developed using P-Scan, our proprietary tool for developing deterministic projections to illustrate the impact of changes in assumptions, methods, plan provisions, or actual experience (particularly investment experience) on the future financial status of the plan.