Page 5.0

Automotive Industries Pension Plan

Checklist Item #5

Does the application include the plan actuary’s certification of critical and declining status 

and the supporting illustrations, including:

• the plan-year-by-plan-year projections demonstrating projected insolvency 

during the relevant period, and

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

and changes in cash flow) during each of those years?

See section 3.01.

The application filed on behalf of the Automotive Industries Pension Plan includes an Actuarial 

Certification of Plan Status as of January 1, 2016 under IRC Section 432, which was filed on 

March 30, 2016 and designated this Pension Plan as meeting the “critical and declining status” 

for the current Plan Year. This certification is attached as Document No. 5.1.

A Supplemental Report includes year-by-year solvency projections of the market value of assets, 

contributions, withdrawal liability payments, investment earnings, separately identified benefit 

payments and plan expenses. The supplementary report is based upon our interpretation of the 

requirements under Revenue Procedure 2016-27 and is attached as Document No. 5.2.
Automotive Industries Pension Plan

Actuarial Certification of Plan Status as of 

January 1, 2016 under IRC Section 432 

Copyright © 2016 by The Segal Group, Inc. All rights reserved.

Page 5.1.1
Page 1 

100 MONTGOMERY STREET, 5TH FLOOR - SUITE 500 SAN FRANCISCO, CA 94104

T 415.263.8200 www.segalco.com

March 30, 2016 

Board of Trustees

Automotive Industries Pension Plan 

Alameda, California 

Dear Trustees:

As required by ERISA Section 305 and Internal Revenue Code (IRC) Section 432, we have completed the Plan’s actuarial 

status certification as of January 1, 2016 in accordance with the Multiemployer Pension Reform Act of 2014 (MPRA). The 

attached exhibits outline the projections performed and the results of the various tests required by the statute. These 

projections have been prepared based on the Actuarial Valuation as of January 1, 2015 and in accordance with generally 

accepted actuarial principles and practices and a current understanding of the law. The actuarial calculations were completed 

under the supervision of Paul C. Poon, ASA, MAAA, Enrolled Actuary. 

As of January 1, 2016, the Plan is in critical and declining status (Red Zone). 

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its 

Rehabilitation Plan, based on the annual standards in the Rehabilitation Plan. This certification is being filed with the Internal 

Revenue Service, pursuant to ERISA section 305(b)(3) and IRC section 432(b)(3). 

Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutory 

interpretation on which the certification is based reflects Segal’s understanding as an actuarial firm. Due to the complexity of 

the statute and the significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel 

when making any decisions regarding compliance with ERISA and the Internal Revenue Code.

Page 5.1.2
Page 5.1.3 Board ofTrustees Automotive Industries Pension Plan March 30, 2016 

Page2 

We look forward to reviewing this certification with you at your next meeting and to answering an

We are available to assist the Trustees in communicating this information to plan stakeholders as 

Rehabilitation Plan. 

Sincerely, 

Segal Consulting, a Member of the Segal Group 

By: PXP!hy 

cc: Anne Bevington, Esq. 

Bill Boyle 

Sun Chang, Esq. 

Kara Dantono 

Kimberly Hancock, Esq. 

Philip M Miller, Esq. 

Raymond Monteiro 

Jessica Roster, CPA 

Michael Schumacker 

PaulC. Poon,ASA,MAU

Associate Actuary 

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of t
March 30, 2016 

Internal Revenue Service

Employee Plans Compliance Unit 

Group 7602 (TEGE:EP:EPCU) 

Room 1700 - 17th Floor 

230 S. Dearborn Street 

Chicago, IL 60604 

To Whom It May Concern: 

As required by ERISA Section 305 and the Internal Revenue Code (IRC) Section 432, we have completed the actuarial status 

certification as of January 1, 2016 for the following plan:

Name of Plan: Automotive Industries Pension Plan 

Plan number: EIN 94-1133245 / PN 001

Plan sponsor: Board of Trustees, Automotive Industries Pension Plan 

Address: 1640 South Loop Road, Alameda, California 94502-7089 

Phone number: 510.836.2484 

As of January 1, 2016, the Plan is in critical and declining status. 

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its 

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

If you have any questions on the attached certification, you may contact me at the following: 

Segal Consulting 

100 Montgomery Street, 5th Floor - Suite 500 

San Francisco, CA 94104 

Phone number: 415.263.8200 

Sincerely,

Paul C. Poon, ASA, MAAA

Associate Actuary 

Enrolled Actuary No. 14-06069 

Page 5.1.4

Redacted by the U.S. Department of the Treasury
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

1 

March 30, 2016 

Illustration Supporting Actuarial Certification of Status (Schedule MB, line 4a)

ACTUARIAL STATUS CERTIFICATION AS OF JANUARY 1, 2016 UNDER IRC SECTION 432 

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

Internal Revenue Code Section 432 for the Automotive Industries Pension Plan as of January 1, 2016 in accordance with generally 

accepted actuarial principles and practices. It has been prepared at the request of the Board of Trustees to assist in administering the Fund 

and meeting filing and compliance requirements under federal law. This certification may not otherwise be copied or reproduced in any 

form without the consent of the Board of Trustees and may only be provided to other parties in its entirety. 

The measurements shown in this actuarial certification may not be applicable for other purposes. Future actuarial measurements may 

differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing 

from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or 

decreases expected as part of the natural operation of the methodology used for these measurements; differences in statutory interpretation

and changes in plan provisions or applicable law.

This certification is based on the January 1, 2015 actuarial valuation, dated May 29, 2015. This certification reflects the changes in the law 

made by the Multiemployer Pension Reform Act of 2014 (MPRA). Additional assumptions required for the projections (including those 

under MPRA), and sources of financial information used are summarized in Exhibit VI. 

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretations on which 

this certification is based reflect Segal’s understanding as an actuarial firm. 

This certification was based on the assumption that the Plan was qualified as a multiemployer plan for the year. 

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

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this actuarial certification is complete and 

accurate. As required by IRC Section 432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan 

sponsor. In addition, as allowed by IRC Section 432(b)(3)(B), in my opinion, the contributions used for Insolvency Projections are 

reasonable. In my opinion, the projections are based on reasonable actuarial estimates, assumptions and methods that (other than projected 

industry activity and contributions as otherwise specified) offer my best estimate of anticipated experience under the Plan.

Associate Actuary

Enrolled Actuary No. 14-06069 

Page 5.1.5

Redacte

d by the 

U.S. 

Depart

ment of 

the 

Treasury

Redacted by the U.S. Department of the Treasury
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

2 

Certificate Contents

EXHIBIT I Status Determination as of January 1, 2016

EXHIBIT II Summary of Actuarial Valuation Projections

EXHIBIT III Funding Standard Account Projections

EXHIBIT IV Funding Standard Account – Projected Bases Assumed Established After January 1, 2015 

EXHIBIT V Solvency Projection

EXHIBIT VI Actuarial Assumptions and Methodology

EXHIBIT VII Documentation Regarding Progress Under Rehabilitation Plan

Page 5.1.6
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

3 

EXHIBIT I

Status Determination as of January 1, 2016

Status Condition 

Test 

Component 

Result

Final 

Result

Critical Status: 

Determination of critical status: 

C1. A funding deficiency is projected in four years?............................................................................................................................. Yes Yes

C2. (a) A funding deficiency is projected in five years, ...................................................................................................................... Yes

(b) AND the present value of vested benefits for non-actives is more than the present value of vested benefits for actives, ....... Yes

(c) AND the normal cost plus interest on the unfunded actuarial accrued liability (unit credit basis) is greater than the

contributions for the current year? .......................................................................................................................................... Yes Yes

C3. (a) A funding deficiency is projected in five years, ...................................................................................................................... Yes

(b) AND the funded percentage is less than 65%?........................................................................................................................ Yes Yes

C4. (a) The funded percentage is less than 65%, ................................................................................................................................ Yes

(b) AND the sum of assets plus the present value of contributions is less than the present value of benefit payments and

administrative expenses over seven years? ............................................................................................................................. No No

C5. The sum of assets plus the present value of contributions is less than the present value of benefit payments and administrative 

expenses over five years?................................................................................................................................................................ No No

Test regular emergence rules for failure: 

C6. (a) Was in critical status for the immediately preceding plan year, .............................................................................................. N/A

(b) AND EITHER a funding deficiency is projected for the plan year or any of the next nine plan years, without regard to the

use of the shortfall method but taking into account any extension of amortization periods under IRC Section 431(d)(2) or

IRC Section 412(e) as in effect prior to PPA’06, .................................................................................................................... N/A

(c) OR is projected to become insolvent for the current year or any of the 30 succeeding plan years? ........................................ N/A N/A

In Critical Status? (If any of (C1) through (C6) is Yes then Yes) ..................................................................................................... Yes

Page 5.1.7
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

4 

Status Condition 

Test 

Component 

Result

Final 

Result

Determination of critical and declining status:

C7. (a) Is in critical status because one of tests C1-C5 is YES,........................................................................................................... Yes

(b) AND insolvency is projected within 15 years using assumptions described in Exhibit VI.B?................................................ Yes Yes

C8. (a) Is in critical status because one of tests C1-C5 is YES,........................................................................................................... Yes

(b) AND the ratio of inactives to actives is at least 2 to 1,............................................................................................................ Yes

(c) AND insolvency is projected within 20 years using assumptions described in Exhibit VI.B? ............................................... Yes Yes

C9. (a) Is in critical status because one of tests C1-C5 is YES,........................................................................................................... Yes

(b) AND the funded percentage is less than 80%, ....................................................................................................................... Yes

(c) AND insolvency is projected within 20 years using assumptions described in Exhibit VI.B?................................................ Yes Yes

In Critical and Declining Status? (If any of (C7) through (C9) is Yes, then Yes)............................................................................ Yes

Endangered Status: 

E1. (a) Is not in critical status, ............................................................................................................................................................ No

(b) AND the funded percentage is less than 80%? ....................................................................................................................... N/A No

E2. (a) Is not in critical status,............................................................................................................................................................. No

(b) AND a funding deficiency is projected in seven years? ......................................................................................................... N/A No

In Endangered Status? (Yes when either (E1) or (E2) is Yes)........................................................................................................... No

In Seriously Endangered Status? (Yes when BOTH (E1) and (E2) are Yes) ................................................................................... No

Neither Critical Status Nor Endangered Status: 

Neither Critical nor Endangered Status?............................................................................................................................................ No

This certification also notifies the IRS that the Plan is making the scheduled progress in meeting the requirements of its Rehabilitation 

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

Page 5.1.8
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

5 

EXHIBIT II 

Summary of Actuarial Valuation Projections

The actuarial factors as of January 1, 2016 (based on projections from the January 1, 2015 valuation certificate):

I. Financial Information

1. Market value of assets $1,192,990,400

2. Actuarial value of assets 1,185,777,582

3. Reasonably anticipated contributions and withdrawal liability payments

a. Upcoming year 23,871,027

b. Present value for the next five years 100,387,108

c. Present value for the next seven years 130,930,098

4. Reasonably anticipated withdrawal liability payments 1,900,000

5. Projected benefit payments 140,839,929

6. Projected administrative expenses (beginning of year) 2,975,646

II. Liabilities

1. Present value of vested benefits for active participants 203,336,884

2. Present value of vested benefits for non-active participants 1,767,490,239

3. Total unit credit accrued liability 1,972,010,329

4. Present value of payments Benefit Payments Administrative Expenses Total

a. Next five years $612,338,851 $13,744,875 $626,083,726 

b. Next seven years 820,148,316 18,510,496 838,658,812

5. Unit credit normal cost plus expenses 8,575,824

6. Ratio of inactive participants to active participants 5.5184

III. Funded Percentage (I.2)/(II.3) 60.1%

IV. Funding Standard Account

1. Credit Balance as of the end of prior year ($443,231,445)

2. Years to projected funding deficiency 1

V. Projected Year of Emergence N/A

VI. Years to Projected Insolvency 14

Page 5.1.9
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

6 

EXHIBIT III

Funding Standard Account Projections

The table below presents the Funding Standard Account Projections for the Plan Years beginning January 1. 

Year Beginning January 1,

2015 2016 2017 2018 2019 2020

1. Credit balance (BOY) ($332,583,760) ($443,231,445) ($566,575,346) ($695,326,719) ($832,534,626) ($982,138,590)

2. Interest on (1) (24,112,323) (32,134,280) (41,076,713) (50,411,187) (60,358,760) (71,205,048)

3. Normal cost 3,306,304 3,204,823 3,127,068 3,066,050 3,003,502 3,005,117

4. Administrative expenses 2,888,977 2,975,646 3,064,915 3,156,862 3,251,568 3,349,115

5. Net amortization charges 103,021,787 101,927,664 99,144,475 97,757,616 99,579,011 81,406,976

6. Interest on (3), (4) and (5) 7,918,237 7,837,840 7,636,893 7,538,588 7,672,971 6,362,688

7. Expected contributions 29,529,498 23,871,027 24,413,694 23,857,560 23,413,123 23,213,123

8. Interest on (7) 1,070,445 865,325 884,997 864,836 848,725 841,476

9. Full-funding limit credit 0 0 0 0 0 0 

10. Credit balance (EOY): (1) + (2) – (3) 

– (4) – (5) – (6) + (7) + (8) + (9) ($443,231,445) ($566,575,346) ($695,326,719) ($832,534,626) ($982,138,590) ($1,123,412,935)

2021 2022 2023 2024 2025

1. Credit balance (BOY) ($1,123,412,935) ($1,174,230,863) ($1,228,976,516) ($1,287,910,155) ($1,351,286,152)

2. Interest on (1) (81,447,438) (85,131,738) (89,100,797) (93,373,486) (97,968,246)

3. Normal cost 3,011,471 3,019,319 3,027,968 3,037,570 3,045,931

4. Administrative expenses 3,449,588 3,553,076 3,659,668 3,769,458 3,882,542

5. Net amortization charges (12,591,512) (12,475,878) (12,386,993) (12,348,185) (12,337,247)

6. Interest on (3), (4) and (5) (444,458) (428,003) (413,203) (401,734) (392,136)

7. Expected contributions 23,213,123 23,213,123 23,213,123 23,213,123 23,013,123

8. Interest on (7) 841,476 841,476 841,475 841,475 834,226

9. Full-funding limit credit 0 0 0 0 0 

10. Credit balance (EOY): (1) + (2) – (3) 

– (4) – (5) – (6) + (7) + (8) + (9) ($1,174,230,863) ($1,228,976,516) ($1,287,910,155) ($1,351,286,152) ($1,419,606,139)

Page 5.1.10
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

7 

EXHIBIT IV 

Funding Standard Account – Projected Bases Assumed Established After January 1, 2015 

Schedule of Funding Standard Account Bases

Type of Base Date Established

Base

Established

Amortization

Period

Amortization

Payment

Experience (Gain)/Loss 1/ 1/2016 ($10,520,912) 15 ($1,094,122)

Experience (Gain)/Loss 1/ 1/2017 (26,762,729) 15 (2,783,190)

Experience (Gain)/Loss 1/ 1/2018 (13,335,804) 15 (1,386,857)

Experience (Gain)/Loss 1/ 1/2019 17,514,247 15 1,821,394

Experience (Gain)/Loss 1/ 1/2020 17,030,106 15 1,771,046

Experience (Gain)/Loss 1/ 1/2021 974,819 15 101,376

Experience (Gain)/Loss 1/ 1/2022 1,111,895 15 115,632

Experience (Gain)/Loss 1/ 1/2023 854,725 15 88,887

Experience (Gain)/Loss 1/ 1/2024 373,151 15 38,806

Experience (Gain)/Loss 1/ 1/2025 105,205 15 10,941

0 0 0

Page 5.1.11
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

8 

EXHIBIT V

Solvency Projection

The table below presents the projected Market Value of Assets for the Plan Years beginning January 1, 2016 through 2029. 

Year Beginning January 1,

2015 2016 2017 2018 2019 2020 2021 2022

1. Market Value at beginning of

year $1,297,668,067 $1,192,990,400 $1,155,081,799 $1,113,405,587 $1,066,599,232 $1,013,806,335 $952,998,625 $883,681,522

2. Contributions 29,529,498 23,871,027 24,413,694 24,965,199 25,638,621 25,438,621 25,438,621 25,438,621

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

4. Benefit payments 133,827,364 140,839,929 142,273,786 144,764,981 147,842,755 151,582,643 155,436,033 160,621,896

5. Administrative expenses 2,969,504 3,090,000 3,182,700 3,278,181 3,376,526 3,477,822 3,582,157 3,689,622

6. Interest earnings 2,589,703 82,150,301 79,366,580 76,271,608 72,787,763 68,814,134 64,262,466 59,045,463

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,192,990,400 $1,155,081,799 $1,113,405,587 $1,066,599,232 $1,013,806,335 $952,998,625 $883,681,522 $803,854,088

2023 2024 2025 2026 2027 2028 2029

1. Market Value at beginning of

year $803,854,088 $713,833,469 $613,587,171 $502,459,863 $380,595,498 $247,309,651 $103,063,921

2. Contributions 25,438,621 25,438,621 25,238,621 25,238,621 25,238,621 25,238,621 25,138,621

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

4. Benefit payments 164,763,151 168,219,300 171,389,018 173,855,031 176,226,705 177,350,112 177,071,516

5. Administrative expenses 3,800,311 3,914,320 4,031,750 4,152,703 4,277,284 4,405,603 4,537,771

6. Interest earnings 53,104,222 46,448,701 39,054,839 30,904,748 21,979,521 12,271,364 1,815,686

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $713,833,469 $613,587,171 $502,459,863 $380,595,498 $247,309,651 $103,063,921 $0

Page 5.1.12
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

9 

EXHIBIT VI 

Actuarial Assumptions and Methodology

The actuarial assumptions and plan of benefits are as used in the January 1, 2015 actuarial valuation certificate, dated May 29, 2015, 

except as specifically described below. We also assumed that experience would emerge as projected, except as described below. The 

calculations are based on a current understanding of the requirements of ERISA Section 305 and IRC Section 432. 

A. Actuarial Assumptions and Plan Provisions Except as Modified by Section B

Contributions: The Default Schedule of the Rehabilitation Plan calls for seven annual 5% contribution rate 

increases, beginning January 1, 2014. We have assumed two increases, on average, have been 

negotiated into the existing CBAs for 2016 and 2017. 

The projected contributions also include the following anticipated withdrawal liability payments 

by year.

Year

Amount 

(In Millions) Year

Amount 

(In Millions)

2016 $1.9 2026 $1.3

2017 $1.8 2027 $1.3

2018 $1.7 2028 $1.3

2019 $1.7 2029 $1.2

2020 $1.5 2030 $1.2

2021 $1.5 2031 $1.2

2022 $1.5 2032 $0.6

2023 $1.5 2033 $0.3

2024 $1.5 2034 $0.3

2025 $1.3

Page 5.1.13
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

10

Asset Information: The financial information as of December 31, 2015 was based on an unaudited financial 

statement provided by the Fund Administrator. 

For projections after that date, the assumed administrative expenses were increased by 3% per 

year and the benefit payments were projected based on the January 1, 2015 actuarial valuation

with an open group forecast. The projected net investment return was assumed to be 7.25% of the 

average market value of assets for the 2015 - 2029 Plan Years. Any resulting investment gains or 

losses due to the operation of the asset valuation method are amortized over 15 years in the 

Funding Standard Account. 

Projected Industry Activity: As required by Internal Revenue Code Section 432, assumptions with respect to projected 

industry activity are based on information provided by the plan sponsor. Based on this 

information, the total number of contributory months is expected to decline by 2% per year for 

the next four years, then remain level after. 

Future Normal Costs: We have determined the future Normal Costs based on an open group forecast with the number of 

active participants assumed to decline by 2% for the next four years and remaining level after. As 

employees are projected to terminate or retire, they are assumed to be replaced by new hires with 

the same demographic characteristics as the actual new entrants over the five years preceding 

the forecast.

B. Assumptions for Insolvency Projections

Assumptions for this purpose are the same as shown in Section A with the following exceptions:

1) Projected contributions reflect anticipated contribution increases as required by the Default Schedule of the Rehabilitation Plan,

including those not yet adopted by the collective bargaining parties.

Page 5.1.14
Actuarial Status Certification as of January 1, 2016 under IRC Section 432 for the Automotive Industries Pension Plan

EIN 94-1133245 / PN 001 

11

EXHIBIT VII

Documentation Regarding Progress Under Rehabilitation Plan

Based on the Rehabilitation Plan in effect as of December 31, 2015, the applicable standard for January 1, 2016 was for no projected 

insolvency until after December 31, 2020, using the plan provisions, assumptions/methods, and contribution levels that form the basis of 

this certification.

Our projections based on this certification indicate the plan will become insolvent during the 2029 Plan Year. Therefore, the annual 

standard is met. 

5423758v2/01149.027

Page 5.1.15
Automotive Industries Pension Plan 

Supplemental Information to Actuarial Certification of 

Plan Status as of January 1, 2016 under IRC Section 432

. 

Copyright © 2016 by The Segal Group, Inc. All rights reserved.

Page 5.2.1
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2016 under IRC Section 432 for

Automotive Industries Pension Plan 

EIN 94-1133245 / PN 001 

1

September 15, 2016 

APPLICATION UNDER ERISA SECTION 305(E)(9) AND IRC SECTION 432(E)(9) – 

SUPPLEMENTAL INFORMATION TO ACTUARIAL CERTIFICATION OF PLAN STATUS AS OF JANUARY 1, 2016

As requested by the Trustees of the Automotive Industries Pension Plan and required by ERISA Section 305(e)(9) and Internal Revenue 

Code (IRC) Section 432(e)(9) (taking into account regulation §1.432(e)(9)-1 and Revenue Procedure 2016-27), Segal Consulting, a 

Member of The Segal Group, Inc. (“Segal”) has prepared supplemental information required as part of the application for proposed benefit 

suspensions permitted under ERISA Section 305 and IRC Section 432 because of the Plan’s critical and declining status. This information 

is based on, and is in addition to, our Actuarial Certification of Plan Status as of January 1, 2016 under IRC Section 432, dated March 30, 

2016. The purpose is to provide information required under Revenue Procedure 2016-27, Section 3.01 not explicitly shown in that 

certification.

This supplement may not otherwise be copied or reproduced in any form without the consent of the Board of Trustees and may only be 

provided to other parties in its entirety. The measurements shown are not applicable for other purposes. Future actuarial measurements 

may differ significantly from the current measurements presented in this supplement due to such factors as the following: plan experience 

differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; 

differences in statutory interpretation; differences in methodology, changes in plan provisions and changes in applicable law. Due to the 

legal requirements for this information, it does not include an analysis of such future measurements.

Segal Consulting does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretations on which the 

information shown in this supplement are based reflect Segal’s understanding as an actuarial firm. 

This supplement was based on the assumption that the Plan was qualified as a multiemployer plan for the year. 

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

render the actuarial opinion herein. To the best of my knowledge, the information supplied in this supplement is complete and accurate. As 

required by IRC Section 432(b)(3)(B)(iii), the projected industry activity is based on information provided by the plan sponsor. In my 

opinion, the projections are based on reasonable actuarial estimates, assumptions and methods that (other than projected industry activity) 

offer my best estimate of anticipated experience under the Plan.

Paul C. Poon, ASA, MAAA

Vice President & Associate Acutary

Enrolled Actuary No. 14-06069 

/hy 

Page 5.2.2

Redacted by the U.S. Department of the Treasury
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2016 under IRC Section 432 for

Automotive Industries Pension Plan 

EIN 94-1133245 / PN 001 

2

EXHIBIT I 

Solvency Projection

The table below presents the projected Market Value of Assets and Available Resources for the Plan Years beginning January 1, 2016 

through December 31, 2029.

Year Beginning January 1,

2015 2016 2017 2018 2019 2020 2021 2022

1. Market Value at beginning of year $1,297,668,067 $1,192,990,400 $1,155,081,799 $1,113,405,587 $1,066,599,232 $1,013,806,335 $952,998,625 $883,681,522 

2. Contributions 20,928,597 21,971,027 22,613,694 23,265,199 23,938,621 23,938,621 23,938,621 23,938,621

3. Withdrawal liability payments 8,600,901 1,900,000 1,800,000 1,700,000 1,700,000 1,500,000 1,500,000 1,500,000

4. Benefit payments

(a) New Entrants - - - - - - 3,969 12,526

(b) Current Actives - 4,550,810 6,429,342 8,337,647 10,223,251 12,171,556 14,148,712 16,328,209

(c) Current Inactive Vested - 7,071,131 9,631,378 13,387,214 17,868,501 23,080,755 28,526,117 35,301,763

(d) Current In Pay Status 133,827,364 129,217,988 126,213,066 123,040,120 119,751,003 116,330,332 112,757,235 108,979,398

(e) Total 133,827,364 140,839,929 142,273,786 144,764,981 147,842,755 151,582,643 155,436,033 160,621,896

5. Administrative expenses 2,969,504 3,090,000 3,182,700 3,278,181 3,376,526 3,477,822 3,582,157 3,689,622

6. Investment earnings 2,589,703 82,150,301 79,366,580 76,271,608 72,787,763 68,814,134 64,262,466 59,045,463

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $1,192,990,400 $1,155,081,799 $1,113,405,587 $1,066,599,232 $1,013,806,335 $952,998,625 $883,681,522 $803,854,088 

8. Available resources:

(1)+(2)+(3)-(5)+(6) $1,326,817,764 $1,295,921,728 $1,255,679,373 $1,211,364,213 $1,161,649,090 $1,104,581,268 $1,039,117,555 $964,475,984 

2023 2024 2025 2026 2027 2028 2029

1. Market Value at beginning of year $803,854,088 $713,833,469 $613,587,171 $502,459,863 $380,595,498 $247,309,651 $103,063,921 

2. Contributions 23,938,621 23,938,621 23,938,621 23,938,621 23,938,621 23,938,621 23,938,621

3. Withdrawal liability payments 1,500,000 1,500,000 1,300,000 1,300,000 1,300,000 1,300,000 1,200,000

4. Benefit payments

(a) New Entrants 25,020 43,133 69,157 103,436 148,355 204,682 274,146

(b) Current Actives 18,302,860 20,396,748 22,467,272 24,287,867 26,082,979 27,699,878 29,199,251

(c) Current Inactive Vested 41,311,426 46,635,667 51,837,950 56,696,873 61,600,816 65,509,389 68,236,408

(d) Current In Pay Status 105,123,845 101,143,752 97,014,639 92,766,855 88,394,555 83,936,163 79,361,711

(e) Total 164,763,151 168,219,300 171,389,018 173,855,031 176,226,705 177,350,112 177,071,516

5. Administrative expenses 3,800,311 3,914,320 4,031,750 4,152,703 4,277,284 4,405,603 4,537,771

6. Investment earnings 53,104,222 46,448,701 39,054,839 30,904,748 21,979,521 12,271,364 1,815,686

7. Market Value at end of year: 

(1)+(2)+(3)-(4)-(5)+(6) $713,833,469 $613,587,171 $502,459,863 $380,595,498 $247,309,651 $103,063,921 Insolvent

8. Available resources:

(1)+(2)+(3)-(5)+(6) $878,596,620 $781,806,471 $673,848,881 $554,450,529 $423,536,356 $280,414,033 $125,480,457 

Page 5.2.3
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2016 under IRC Section 432 for

Automotive Industries Pension Plan 

EIN 94-1133245 / PN 001 

3

EXHIBIT II

Projected Total Contribution Base Units and Contribution Rates 

Year Beginning

January 1

Total Contribution Base Units

(Months) 

Contribution Rate

(Monthly) 

2016 45,369 $484.29

2017 44,462 508.51

2018 43,573 533.93

2019 42,702 560.63

2020 42,702 560.63

2021 42,702 560.63

2022 42,702 560.63

2023 42,702 560.63

2024 42,702 560.63

2025 42,702 560.63

2026 42,702 560.63

2027 42,702 560.63

2028 42,702 560.63

2029 42,702 560.63

Note: Projections of contributions in Exhibit I were based on an average monthly credited contribution rate of $398.43 as of January 1, 2015, 

increased to reflect past and anticipated off-benefit contribution increases as required by the Default Schedule of the Rehabilitation Plan, 

including those not yet adopted by the collective bargaining parties.

* Contributions for the Plan year beginning January 1, 2015 were based on preliminary financial information provided by the Fund Office.

Page 5.2.4
Supplemental Information to Actuarial Certification of Plan Status as of January 1, 2016 under IRC Section 432 for

Automotive Industries Pension Plan 

EIN 94-1133245 / PN 001 

4

EXHIBIT III

New Entrant Profile

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

past five years, with an entry age ranging from age 18 through 66 and an average of 33.2. New 

entrants are assumed to preserve the existing active breakdown of 98% male and 2% female. The 

following table shows the distribution of new entrants by entry age. 

Age Range

Percentage of New 

Entrants

Below 20 3%

20 – 24 21%

25 – 29 22%

30 – 34 18%

35 – 39 12%

40 – 44 9%

45 – 49 8%

50 and over 7%

The actuarial assumptions, methodology, and plan provisions are as used for the solvency projection in the Actuarial Certification of Plan 

Status as of January 1, 2016 under IRC Section 432, dated March 30, 2016. The calculations are based on a current understanding of the 

requirements of ERISA Section 305, IRC Section 432, regulation §1.432(e)(9)-1, and Revenue Procedure 2016-27. 

Segal Consulting (“Segal”) does not practice law and, therefore, cannot and does not provide legal advice. Any statutory interpretation on 

which these calculations are based reflects Segal’s understanding as an actuarial firm. Due to the complexity of the statute and the 

significance of its ramifications, Segal recommends that the Board of Trustees consult with legal counsel when making any decisions 

regarding compliance with ERISA and the Internal Revenue Code. 

Actuarial calculations were completed under the supervision of Paul C. Poon, ASA, MAAA, Enrolled Actuary. 

5449215v1/01149.036

Page 5.2.5