25

PENALTY OF PERJURY STATEMENT/PUBLIC DISCLOSURE STATEMENT 

Pursuant to Sections 2.03 and 2.04 of IRS Revenue Procedure 2017-43, the undersigned Trustee makes the following two statements: 

Under penalties of perjury I declare that I have examined this application, including the accompanying documents, and, to the best of my knowledge and belief, the application contains all of the relevant facts relating to this request, and such facts are 

true, correct and complete. 

I acknowledge that, pursuant to Section 432(e)(9)(G)(ii) of the Internal Revenue 

Code, the application for approval of the proposed suspension of benefits, and the application's supporting material, will be publicly disclosed through publication to the Treasury Department's website. 

Signed: March _, 2019 

-~H 5700 

0066
Offices in Principal Cities Worldwide

71 South Wacker Drive

31st Floor

Chicago, IL 60606

USA

Tel +1 312 726 0677

Fax +1 312 499 5695

milliman.com

July 27, 2018

Internal Revenue Service

Employee Plans Compliance Unit

Group 7602 (TEGE:EP:EPCU)

230 S. Dearborn Street

Room 1700, 17th Floor

Chicago, Illinois 60604

Re: Pension Protection Act (PPA) Actuarial Certification for Plan Year Beginning 

May 1, 2018 – Sheet Metal Workers Local Pension Plan

In accordance with IRC Section 432(b)(3)(A), we have prepared and attached an actuarial 

certification for the plan year beginning May 1, 2018 for Sheet Metal Workers Local Pension 

Plan.

In our opinion, the assumptions used for the actuarial certification are individually reasonable 

based on the experience of the plan and on reasonable expectations of anticipated experience 

under the plan. The projections in this report are dependent on the assumptions used. 

Differences between our projections and actual amounts depend on the extent to which future 

experience conforms to the assumptions made for this analysis. It is certain that actual 

experience will not conform exactly to the assumptions used in these projections. Actual results 

will differ from projected amounts to the extent that actual experience is better or worse than 

expected.

On the basis of the foregoing and as a member of the American Academy of Actuaries (AAA) 

who meets the Qualification Standards of the AAA to render the actuarial opinion contained 

herein, I hereby certify that, to the best of my knowledge and belief, this letter is complete and 

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

principles and practices.

____

Kevin M. Campe, EA, MAAA

Principal and Consulting Actuary

cc: Board of Trustees

Mr. Michael Novara

Mr. Paul Newcomer

Ms. Mary Weir

Ms. Kristy Lowell

M:\SMA\66\2018\PPA Certification 2018.docx

ll Milliman 

0067
1

MILLIMAN

Sheet Metal Workers Local Pension Plan

PPA Actuarial Certification for Plan Year Beginning May 1, 2018

Funding Status Projection Results

Plan Year 

Beginning

Funded

Percentage Contributions

Credit Balance

at End of Year

5/1/2017 43.4% 3,889,000 (3,403,000)

5/1/2018

5/1/2019

5/1/2020

5/1/2021

5/1/2022

5/1/2023

5/1/2024

5/1/2025

5/1/2026

5/1/2027

41.4

40.6

39.6

39.0

38.0

36.6

34.9

32.8

30.5

27.7

3,850,000

3,500,000

3,500,000

3,500,000

3,325,000

3,325,000

3,325,000

3,325,000

3,325,000

3,325,000

(7,671,000)

(12,057,000)

(16,201,000)

(20,299,000)

(24,660,000)

(28,549,000)

(32,929,000)

(38,411,000)

(44,126,000)

(49,271,000)

An accumulated funding deficiency is projected to occur for the plan year ending April 30, 2018.

The funded percentage as of May 1, 2018 is projected to be 41.4%.

The Plan fails Critical Tests 2 and 3 (refer to the Appendix), as described under IRC Section 

432(b)(2).

The Plan is projected to become insolvent in the plan year beginning May 1, 2033.

PPA Certification

Based on the actuarial assumptions and methods, financial and participant data, and Plan 

provisions, as used for the actuarial valuation for the Plan year ended April 30, 2018, I hereby 

certify that the Sheet Metal Workers Local Pension Plan is “critical and declining” for the plan 

year beginning May 1, 2018 as defined in the Pension Protection Act of 2006 as amended by the 

Multiemployer Pension Reform Act of 2014 (“MPRA”).

Further, I hereby certify that to the best of my knowledge and belief, the actuarial assumptions 

employed in preparing this certification are individually reasonable and represent my best 

estimate of future experience. Additionally, the “projected industry activity” assumption, as 

required under IRC Section 432(b)(3)(B)(iii), has been provided by the Board of Trustees.

0068
2

MILLIMAN

Sheet Metal Workers Local Pension Plan

PPA Actuarial Certification for Plan Year Beginning May 1, 2018

Scheduled Progress

The Pension Protection Act (PPA) requires the actuary to certify whether the plan is making 

scheduled progress in meeting the requirements of its Rehabilitation Plan. The Rehabilitation 

Plan for the Sheet Metal Workers Local Pension Plan reduced certain benefits and increased the 

Plan’s contribution rates. The Trustees determined using reasonable actuarial assumptions and 

methods that they were unable to adopt a Rehabilitation Plan that would enable the Plan to 

emerge from critical status by the end of the 13-year Rehabilitation Period on April 30, 2024

which began on May 1, 2011 (as extended three additional years under the Worker, Retiree, and 

Employer Recovery Act of 2008).

As a result, the Trustees adopted a Rehabilitation Plan that, in their judgment, consisted of all 

reasonable measures to either emerge from critical status by a later date than the 13-year period 

mentioned above or forestall insolvency. As required under the PPA, the Trustees have been and 

will continue to review the Rehabilitation Plan annually. Based on implementation of the 

Rehabilitation Plan, assumed future contracts adopted by the bargaining parties and reflecting the 

Plan’s experience through April 30, 2018, I hereby certify that the Plan is making scheduled 

progress as of May 1, 2018 as required under IRC Section 432(b)(3)(A)(ii).

___ July 27, 2018

Kevin M. Campe Date

Enrolled Actuary #17-5356

0069
3

MILLIMAN

Sheet Metal Workers Local Pension Plan

PPA Actuarial Certification for Plan Year Beginning May 1, 2018

Summary of Assumptions/Methods

1. Our forecast of future minimum funding requirements is based on:

 May 1, 2017 actuarial valuation.

 April 30, 2018 unaudited financial statements provided by the Fund’s administrator, 

which provides the market value of assets as of April 30, 2018 and the income and 

disbursements for the plan year ended April 30, 2018. The results reflect an estimated

rate of return on market assets of 6.70% (net of investment-related administrative 

expenses) for the plan year ended April 30, 2018.

 Investment returns after April 30, 2018 are based on the Fund’s target asset allocation 

and Horizon 10-year capital market survey assumptions for the first nine years and 

Horizon 10-year capital market survey assumptions thereafter. The assumed annual rate 

of return on market assets (net of investment-related administrative expenses) is 6.64% 

for plan years ending April 30, 2019 through April 30, 2027 and 7.40% for plan years 

after April 30, 2027. 

 No future asset gains or losses other than the gains or losses related to the asset 

smoothing method. 

 Input from the Fund’s Board of Trustees that hours worked will be:

 1,100,000 hours for plan year ending April 30, 2019,

 1,000,000 hours for the plan years ending April 30, 2020 through April 30, 2022,

and

 950,000 hours for each plan year thereafter.

 The assumption of a stable active population for each plan year after April 30, 2017.

 Plan provisions identical to those used in the May 1, 2017 actuarial valuation.

 All other actuarial assumptions and methods being the same as those used in the

May 1, 2017 actuarial valuation except for the following:

 Administrative expenses are assumed to decrease to $385,000 for the plan year 

ending April 30, 2019, further decrease to $287,000 for the plan year ending April 

30, 2020, and then increase by 2% per year thereafter. This assumption was refined 

to reflect the short-term increase in expenses related to the application for the 

proposed benefit suspension. 

2. This actuarial certification is based on 1) the proposed Multiemployer Plan Funding 

Guidance provided by the IRS on March 18, 2008, 2) the December 2007 Practice Note 

issued by the Multiemployer Plans Subcommittee of the Pension Committee of the American 

Academy of Actuaries, and 3) action taken by the Board of Trustees on or before 

June 28, 2018.

0070
4

MILLIMAN

Sheet Metal Workers Local Pension Plan

PPA Actuarial Certification for Plan Year Beginning May 1, 2018

Plan Identification

Name: Sheet Metal Workers Local Pension Plan

EIN: 34-6666753

Plan Number: 001

Address: 1890 Venture Circle SE

Massillon, OH 44646

Telephone Number: (330) 833-2888

Enrolled Actuary Identification

Name: Mr. Kevin M. Campe

Enrollment Number: 17-5356

Address: Milliman, Inc.

71 S. Wacker Drive

31st Floor

Chicago, IL 60606

Telephone Number: (312) 726-0677

0071
5

MILLIMAN

Appendix

Sheet Metal Workers Local Pension Plan

PPA Actuarial Certification for Plan Year Beginning May 1, 2018

Summary of Zone Status Definitions Under PPA as Amended by MPRA

Critical (“Red Zone”) Status - IRC Section 432(b)(2) and 432(b)(4)

Any one of four tests under IRC Section 432(b)(2):

Test 1 Less than 65% funded and market value of assets plus contributions for current year plus 

next following 6 plan years is less than present value of projected benefit payments and 

administrative costs over that 7-year period or

Test 2 Projected funding deficiency in current year or next following 3 plan years (4 plan years 

if 65% funded or less)1or

Test 3 Present value of vested benefits (actives) is less than present value of benefits (inactives), 

and present value of projected contributions is less than the unit credit normal cost plus 

interest on the unfunded present value of accrued benefits and projected funding 

deficiency in current or next 4 plan years1or

Test 4 Market assets plus projected contributions over current year plus next 4 plan years is less 

than the present value of benefit payments plus administrative costs over same 5 year 

period.

Within 30 days after the date of this certification, a plan that is not in critical status but is projected 

to be in critical status in any of the succeeding 5 plan years may elect under IRC Section 432(b)(4) to 

be in critical status effective for the current plan year.

Critical and Declining (“Deep Red Zone”) Status – IRC Section 432(b)(6)

In critical status and either:

 Projected insolvency in current year or any of the 14 following plan years or

 Projected insolvency in current year or any of the 19 following plan years if:

o Ratio of ratio of inactive participants to active participants exceeds 2 to 1 or 

o Less than 80% funded

Endangered (“Yellow Zone”) Status – IRC Section 432(b)(1)

Not in critical status and either:

 Less than 80% funded or

 Projected funding deficiency in current plan year or next following 6 plan years2

Seriously Endangered (“Orange Zone”) Status - IRC Section 432(b)(1)

Not in critical status and both:

 Less than 80% funded and

 Projected funding deficiency in current plan year or next following 6 plan years2

 

1 Not taking into account an extension of amortization periods under IRC Section 431(d), if any

2 Taking into account an extension of amortization periods under IRC Section 431(d), if any

0072
Milliman Supplemental Information

Issued March 2018

Sheet Metal Workers Local Pension Plan

Supplemental Information to Actuarial Certification for the Plan Year 

Beginning May 1, 2018

Prepared by:

Kevin M. Campe, EA, MAAA

Principal and Consulting Actuary

Milliman, Inc.

71 South Wacker Drive, Suite 3100

Chicago, Illinois 60606

Tel +1 312 726 0677

Fax +1 312 726 5225

milliman.com

Milliman 

0073
Milliman

 

 Supplemental Information

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2018 i

Sheet Metal Workers Local Pension Plan

Supplemental Information to Actuarial Certification for the Plan Year 

Beginning May 1, 2018 of the Sheet Metal Workers Local Pension Plan

This supplement to the Actuarial Certification for the Plan Year Beginning May 1, 2018 for the Sheet Metal 

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

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

Purpose of the Report

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

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

Certification for the Plan Year Beginning May 1, 2018 dated July 27, 2018.

Limited Distribution

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

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

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

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

party signing a release, subject to the following exceptions:

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

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

other than to benefit the Plan.

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

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

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

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

Reliance

In preparing the report, we relied on our Actuarial Certification for the Plan Year Beginning May 1, 2018 dated 

July 27, 2018 and our May 1, 2017 Actuarial Valuation dated March 22, 2018.

Limited Use

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

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

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

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

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

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

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

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

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

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

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

substitute for qualified legal or accounting counsel.

--------------

0074
Milliman

 

 Supplemental Information

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2018 ii

Sheet Metal Workers Local Pension Plan

Certification

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

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

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

experience under the Plan. 

On the basis of the foregoing, I hereby certify that to the best of my knowledge and belief, this report is complete 

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

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

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

United States promulgated by the American Academy of Actuaries. I am a member of the American Academy of 

Actuaries and meet its Qualification Standards to render the actuarial opinion contained herein.

Respectfully submitted,

Kevin M. Campe, EA, MAAA

Principal and Consulting Actuary

Enrolled Actuary Number 17-05356

March 29, 2019

Date

--------------

0075
Milliman

 

 Supplemental Information

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2018

Sheet Metal Workers Local Pension Plan

Table of Contents

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

B. Projected Total Contribution Base Units and Contribution Rates ..................................................................3

C. New Entrant Profile.........................................................................................................................................3

--------------

0076
Milliman

 

 Supplemental Information

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2018 1

Sheet Metal Workers Local Pension Plan

A. Solvency Projection

The following table shows the plan-year-by-year market value of assets projection to insolvency. The plan years ending April 30, 2018 through April 30, 2034

are shown.

Plan year beginning May 1 2017 2018 2019 2020 2021 2022 2023 2024

1. Market value of assets (beginning of year) $41,435,167 $42,052,579 $42,098,180 $41,663,342 $40,932,869 $39,812,138 $38,084,799 $35,920,018 

2. Employer contributions 3,888,546 3,850,000 3,500,000 3,500,000 3,500,000 3,325,000 3,325,000 3,325,000 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 5,279,598 5,165,653 5,046,151 4,902,053 4,768,944 4,628,607 4,488,680 

b. Terminated vested participants N/A 390,162 620,033 883,090 1,167,990 1,488,745 1,775,009 2,032,699 

c. Current actives N/A 454,705 554,983 664,011 848,298 995,052 1,155,571 1,256,468 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,473,636 6,124,465 6,340,669 6,593,252 6,918,341 7,252,741 7,559,187 7,777,847 

5. Administrative expenses 503,746 385,000 287,000 292,740 298,595 304,567 310,658 316,871 

6. Investment returns 2,706,248 2,705,066 2,692,831 2,655,519 2,596,205 2,504,969 2,380,064 2,228,977 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,052,579 $42,098,180 $41,663,342 $40,932,869 $39,812,138 $38,084,799 $35,920,018 $33,379,277 

8. Available resources

(1) + (2) + (3) - (5) + (6) $47,526,215 $48,222,645 $48,004,011 $47,526,121 $46,730,479 $45,337,540 $43,479,205 $41,157,124 

9. Solvency ratio (8) / (4e) 8.68 7.87 7.57 7.21 6.75 6.25 5.75 5.29

Plan year beginning May 1 2025 2026 2027 2028 2029 2030 2031 2032

1. Market value of assets (beginning of year) $33,379,277 $30,505,590 $27,225,591 $23,779,853 $19,941,452 $15,727,016 $11,196,003 $6,319,804 

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

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

4. 4. Benefit payments

a. Current retirees and beneficiaries 4,337,710 4,179,513 4,018,912 3,853,835 3,684,730 3,512,093 3,336,453 3,158,393 

b. Terminated vested participants 2,286,701 2,506,178 2,711,970 2,915,441 3,093,642 3,254,311 3,386,797 3,476,990 

c. Current actives 1,306,144 1,447,083 1,526,487 1,614,219 1,687,030 1,696,545 1,742,106 1,758,897 

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

e. Total 7,930,555 8,132,774 8,257,369 8,383,495 8,465,402 8,462,949 8,465,356 8,394,280 

5. Administrative expenses 323,208 329,672 336,265 342,990 349,850 356,847 363,984 371,264 

6. Investment returns 2,055,076 1,857,447 1,822,896 1,563,084 1,275,816 963,783 628,141 269,621 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $30,505,590 $27,225,591 $23,779,853 $19,941,452 $15,727,016 $11,196,003 $6,319,804 $1,148,881 

8. Available resources

(1) + (2) + (3) - (5) + (6) $38,436,145 $35,358,365 $32,037,222 $28,324,947 $24,192,418 $19,658,952 $14,785,160 $9,543,161 

9. Solvency ratio (8) / (4e) 4.85 4.35 3.88 3.38 2.86 2.32 1.75 1.14

0077
Milliman

 

 Supplemental Information

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2018 2

Sheet Metal Workers Local Pension Plan

A. Solvency Projection

Plan year beginning May 1 2033

1. Market value of assets (beginning of year) $1,148,881 

2. Employer contributions 3,325,000 

3. Withdrawal liability payments 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,978,565 

b. Terminated vested participants 3,547,827 

c. Current actives 1,789,137 

d. New entrants 0 

e. Total 8,315,529 

5. Administrative expenses 378,689 

6. Investment returns 8,641

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) Insolvent

8. Available resources

(1) + (2) + (3) - (5) + (6) $4,103,833

9. Solvency ratio (8) / (4e) 0.49

0078
Milliman

 

 Supplemental Information

Supplemental Information to Actuarial Certification for the Plan Year Beginning May 1, 2018 3

Sheet Metal Workers Local Pension Plan

B. Projected Total Contribution Base Units and Contribution Rates

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

Actuarial Certification for the Plan Year Beginning May 1, 2018.

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

(Hourly)

2018 1,100,000 $3.50

2019 1,000,000 $3.50

2020 1,000,000 $3.50

2021 1,000,000 $3.50

2022 950,000 $3.50

2023 950,000 $3.50

2024 950,000 $3.50

2025 950,000 $3.50

2026 950,000 $3.50

2027 950,000 $3.50

2028 950,000 $3.50

2029 950,000 $3.50

2030 950,000 $3.50

2031 950,000 $3.50

2032 950,000 $3.50

2033 950,000 $3.50

C. New Entrant Profile

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

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

0079
Milliman - Report of Required Actuarial Information 

Issued March 2018

Sheet Metal Workers Local Pension Plan

Report of Required Actuarial Information -

Application for Proposed Benefit Suspensions as of May 1, 2020

Prepared by:

Kevin M. Campe, EA, MAAA

Principal and Consulting Actuary

Milliman, Inc.

71 South Wacker Drive, Suite 3100

Chicago, Illinois 60606

Tel +1 312 726 0677

Fax +1 312 726 5225

milliman.com

Milliman 

0080
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions i

Sheet Metal Workers Local Pension Plan

Report of Required Actuarial Information - Application for Proposed Benefit 

Suspensions as of May 1, 2020 for the Sheet Metal Workers Local Pension 

Plan

This report includes the Actuarial Certification of Plan Solvency and a presentation of additional actuarial 

information required for the application to suspend benefits for the Sheet Metal Workers Local Pension Plan (the 

“Plan”). This report has been completed in accordance with our understanding of IRC §432(e)(9) (including 

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

Purpose of the Report

The Plan was certified as “critical and declining” for the plan years beginning May 1, 2016, May 1, 2017 and May 

1, 2018. The Trustees have chosen to pursue benefit suspensions which are allowed to such plans under §432. 

We have completed our analysis of the Trustees’ proposed benefit suspensions and determined that the 

proposed suspensions of benefits would likely enable the Plan to avoid insolvency (as defined in IRC §418E) 

assuming the proposed suspensions continue indefinitely and occur no later than May 1, 2020. In addition, we 

have also completed the analysis required to satisfy §432(e)(9)(D)(iv) (taking into account §1.432(e)(9)-1 and 

Revenue Procedure 2017-43) which requires that the proposed suspension does not materially exceed the level 

necessary to avoid insolvency. This report also includes additional information required for the application to 

suspended benefits.

Specifically, this report contains the materials required in checklist items 6, 9, 11, 25, 26, 27 and 28 included in 

Revenue Procedure 2017-43.

Limited Distribution

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

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

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

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

party signing a release, subject to the following exceptions:

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

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

other than to benefit the Plan.

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

appropriate as may be required by the Pension Protection Act of 2006 and the Multiemployer Pension Reform 

Act of 2014.

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

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

Reliance

In preparing the report, we relied on our May 1, 2017 Actuarial Valuation, and, without audit, information (some 

oral and some in writing) supplied by the Plan’s administrator, auditor, and investment consultant. This 

information includes, but is not limited to, plan documents and provisions, participant data, and financial 

information. In general, the participant data used for purposes of this application are the same data used for the 

May 1, 2017 Actuarial Valuation. Additional individual participant information (i.e. missing pop-up amounts, years 

of service) was supplied by the Plan Administrator subsequent to the May 1, 2017 valuation to refine the benefit 

payment projections. 

--------------

0081
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions ii

Sheet Metal Workers Local Pension Plan

We found this information to be reasonably consistent and comparable with information used for other purposes. 

The results depend on the integrity of this information. If any of this information is incomplete or inaccurate, our 

results may be different and our calculations may need to be revised.

Limited Use

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

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

Determinations for other purposes may yield significantly different results from those shown in this report. Other 

calculations may be needed for other purposes, such as judging benefit security at termination.

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

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

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

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

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

and changes in plan provisions or applicable law. 

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

substitute for qualified legal or accounting counsel.

Certification

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

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

expectations).

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

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

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

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

United States promulgated by the American Academy of Actuaries. I am a member of the American Academy of 

Actuaries and meet its Qualification Standards to render the actuarial opinion contained herein.

Respectfully submitted,

Kevin M. Campe, EA, MAAA

Principal and Consulting Actuary

Enrolled Actuary Number 17-05356

March 29, 2019

Date

--------------

0082
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Sheet Metal Workers Local Pension Plan

Table of Contents

A. Summary of Key Information and Results ......................................................................................................2

B. Development of Projected April 30, 2019 Market Value of Assets .................................................................4

C. Deterministic Projection of Current Plan without Proposed Suspension ........................................................5

D. Deterministic Projection of Proposed Suspension ..........................................................................................6

E. Deterministic Projection Demonstrating Proposed Suspension Does Not Materially Exceed the 

Level that is Necessary to Avoid Insolvency...................................................................................................8

F. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced 

by 1.00% ...................................................................................................................................................... 10

G. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced 

by 2.00% ...................................................................................................................................................... 12

H. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption 

Continues Under the Same Trend as the Plan Experienced Over the Last 10 Years (1.1% per year)....... 14

I. Deterministic Projection of the Proposed Suspension Assuming the Industry Activity Assumption 

Continues Under the Same Trend as the Plan Experienced Over the Last 10 Years, Reduced 

by 1.0% (0.1% per year) .............................................................................................................................. 16

J. Projection of Funded Percentage............................................................................................................... 178

K. Response to Revenue Procedure 2017-43, Sections 6.03, 6.04 and Appendix B...................................... 19

L. Proposed Benefit Suspensions .................................................................................................................... 31

--------------

0083
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 2

Sheet Metal Workers Local Pension Plan

A. Summary of Key Information and Results

The application filed on behalf of the Sheet Metal Workers Local Pension Plan sets forth the following proposed 

benefit suspension to be effective May 1, 2020. The suspension is expected to continue indefinitely.

The application proposes that there shall be a reduction in monthly benefits such that the revised monthly 

amount is based upon a specific percentage reduction of a participant’s accrued benefit depending upon into 

which “group” of participants an individual is categorized; therefore the proposed suspension treats participants 

differently. The proposed reductions are subject to the individual limitations described in §432(e)(9)(D)(i), (ii), 

and (iii) and aggregate limitations described in §432(e)(9)(D)(iv). 

The groups defined for purposes of this application and the proposed percentage reduction in their benefits are:

Active Participants are Plan Participants who worked at least 435 hours during the plan year ended April 30, 

2017 or April 30, 2018 and who have not retired as of April 30, 2018. Non-Active Participants include 

Terminated Vested Participants, Retired Participants, Disabled Participants, Beneficiaries of Participants, and 

Alternate Payees.

The following summary shows the results of the tests required to certify that the proposed suspensions meet 

the requirements set forth by the law.

1. Key Information

a. Projected year of insolvency without consideration of proposed suspension Year Beginning

May 1, 2033

b. Proposed effective date of suspension of benefits May 1, 2020

c. End of extended period April 30, 2050

d. Projected funded percentage under IRC §432(j)(2) at end of extended period

(See Exhibit J) 113.09%

e. Number of Plan active participants (based on May 1, 2017 actuarial valuation) 655

f. Is the proposed suspension in combination with a partition? No

Non-Active Participants

Retirement Date Proposed Suspension 

Reduction

Group 1 Before August 1, 2009 

and all terminated vested participants 35%

Group 2 On or after August 1, 2009 30%

Active Participants

Hire Date Proposed Suspension 

Reduction

Group 3 Before May 1, 2006 25%

Group 4 On or after May 1, 2006 No reduction

--------------

0084
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 3

Sheet Metal Workers Local Pension Plan

2. Limitation on Aggregate Size of Suspension

a. We certify that the proposed suspension is reasonably estimated to enable the Plan to avoid 

insolvency, as required under regulation §1.432(e)(9)-1(d)(5)(ii)(A) based on the following analysis.

i. The solvency ratio is projected on a deterministic basis to be at least 1.0 for each plan year 

throughout the extended period (see Exhibit D).

ii. The Plan’s projected funded percentage at the end of the extended period exceeds 100% (see 

Exhibit J).

b. We certify that the proposed suspension does not materially exceed the level that is necessary to 

avoid insolvency, as required under regulation §1.432(e)(9)-1(d)(5)(iii)(A) based on the following 

analysis.

i. The Plan would fail one or more of the tests listed in 2a if the dollar amount of the proposed 

benefit suspension for each participant and beneficiary were reduced (but not below zero) 

by the greater of 5% of the individual’s monthly amount proposed to be suspended and 2% 

of the individual’s monthly amount without regard to the proposed suspension. Exhibit E 

demonstrates that if the suspension is reduced by the aforementioned amounts, it will no 

longer be sufficient to enable the Plan to satisfy the requirement to avoid insolvency under 

§1.432(e)(9)-1(d)(5)(i)(A). The projection in Exhibit E does not satisfy the requirement in 

§1.432(e)(9)-1(d)(5)(ii)(3) because the Plan’s funded percentage at the end of the extended 

period does not exceed 100%* and in at least one of the last five years of the extended 

period the Plan’s available resources are projected to decrease. Therefore, as specified in 

§1.432(e)(9)-1(d)(5)(iii)(A) “an alternative, similar but smaller suspension of benefits would 

not be sufficient to enable the Plan to satisfy the requirement to avoid insolvency under 

paragraph (d)(5)(i)(A).” 

* It can be demonstrated that the Plan’s funded percentage at April 30, 2050 (the end of the 

extended period) with a smaller suspension does not exceed 100% as follows: The Plan’s 

assets at April 30, 2050 with the smaller suspension are projected to be $16,429,051 as

shown in Exhibit E. The Plan’s liabilities at April 30, 2050 with the proposed suspension are 

projected to be $27,653,238 as shown in Exhibit J. Because the ratio of $16,429,051 to 

$27,653,238 is less than 100%, and a smaller suspension will provide larger liabilities at 

April 30, 2050, the Plan’s funded percentage at April 30, 2050 with a smaller suspension 

will also be less than 100%.

ii. The PBGC did not issue an order partitioning the Plan.

The proposed suspension satisfies the limitations on aggregate size of suspension set forth in

Regulation §1.432(e)(9)-1(d)(5).

--------------

0085
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 4

Sheet Metal Workers Local Pension Plan

B. Development of Projected April 30, 2019 Market Value of Assets

The table below shows the actual change in the market value of assets from May 1, 2017 through April 30, 2018

and from May 1, 2018 through December 31, 2018. It also sets forth the projected market value of assets from 

January 1, 2019 through April 30, 2019. The calculations are based on the following information:

 The market value of assets as of May 1, 2017 and May 1, 2018 and the employer contributions, benefit 

payments and administrative expenses from May 1, 2017 through April 30, 2018, are based financial 

statements prepared by the auditor.

 The market value of assets as of December 31, 2018 and the employer contributions, benefit payments and 

administrative expenses from May 1, 2018 through December 31, 2018 are based on unaudited financial 

statements prepared by the Plan Administrator.

 Estimated employer contributions from January 1, 2019 through April 30, 2019 are based on 4/12ths of the 

assumed contribution of $3.74 million (equal to the product of the assumed 1.1 million hours and an 

average contribution rate of $3.40/hour) for the 2018/2019 plan year.

 Estimated benefit payments from January 1, 2019 through April 30, 2019 are based on 4/12ths of the

expected benefit payments projected for the 2018/2019 plan year by the valuation system based on the 

data and assumptions described in Exhibit K. 

 The administrative expenses from January 1, 2018 through April 30, 2019 are based on the full year’s 

administrative expense assumption described in Exhibit K, less the expenses for May 1, 2018 through 

December 31, 2018 reported in the Plan Administrator’s unaudited December 31, 2018 financial 

statements.

 Investment returns from January 1, 2019 through April 30, 2019 are based on an assumed return of 2.16% 

(4 months of the annual expected return) during that period.

May 1, 2017 

through 

April 30, 2018

May 1, 2018 

through 

Dec. 31, 2018

Jan. 1, 2019 

through 

April 30, 2019

Total for 

2018/2019

Plan Year

1. Market value of assets (beginning 

of period)

$41,435,167 $42,133,231 $39,522,869 $42,133,231

2. Employer contributions 3,973,912 2,757,059 1,246,667 4,003,726

3. Withdrawal liability payments 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries N/A N/A 1,752,596 N/A

b. Terminated vested participants N/A N/A 62,222 N/A

c. Current actives N/A N/A 120,692 N/A

d. New entrants N/A N/A 0 N/A

e. Total 5,473,636 3,761,195 1,935,510 5,696,705

5. Administrative expenses 646,961 361,631 208,369 570,000

6. Investment returns 2,844,749 -1,244,595 843,934 -400,661

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $42,133,231 $39,522,869 $39,469,591 $39,469,591

--------------

0086
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 5

Sheet Metal Workers Local Pension Plan

C. Deterministic Projection of Current Plan without Proposed Suspension

The following table shows the projection of the plan-year-by-plan-year market value of assets projected to the year of insolvency for the plan years beginning 

May 1, 2018 through May 1, 2033.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,469,591 $39,009,325 $38,364,077 $37,403,599 $35,944,349 $34,028,465 $31,732,917 

2. Employer contributions 4,003,726 3,450,000 3,450,000 3,450,000 3,325,000 3,325,000 3,325,000 3,325,000 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 823,703 1,092,066 1,394,615 1,664,705 1,909,508 2,146,776 

b. Terminated vested participants N/A 302,613 403,081 534,864 654,465 866,370 1,003,947 1,133,445 

c. Current actives N/A 5,146,516 5,029,073 4,886,446 4,754,230 4,614,251 4,469,938 4,318,613 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 6,255,857 6,513,376 6,803,310 7,145,326 7,383,393 7,598,834 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (400,661) 2,515,953 2,480,609 2,429,298 2,351,988 2,244,029 2,109,223 1,950,015 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,469,591 $39,009,325 $38,364,077 $37,403,599 $35,944,349 $34,028,465 $31,732,917 $29,055,792 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,166,296 $45,035,544 $44,619,934 $43,916,975 $42,747,659 $41,173,791 $39,116,310 $36,654,626 

9. Solvency ratio (8) / (4e) 7.93 7.47 7.13 6.74 6.28 5.76 5.30 4.82

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $29,055,792 $25,987,752 $22,549,833 $18,950,421 $14,962,341 $10,615,791 $5,859,356 $739,149 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 2,346,614 2,541,960 2,736,926 2,901,468 3,043,806 3,172,967 3,271,334 3,355,377 

b. Terminated vested participants 1,292,471 1,412,999 1,551,839 1,652,501 1,720,448 1,826,940 1,891,155 1,953,207 

c. Current actives 4,159,632 3,998,065 3,831,771 3,661,247 3,487,036 3,309,715 3,129,924 2,948,370 

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

e. Total 7,798,717 7,953,024 8,120,536 8,215,216 8,251,290 8,309,622 8,292,413 8,256,954 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 1,766,049 1,557,684 1,571,055 1,284,566 969,818 626,067 253,043 3,735

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $25,987,752 $22,549,833 $18,950,421 $14,962,341 $10,615,791 $5,859,356 $739,149 Insolvent

8. Available resources

(1) + (2) + (3) - (5) + (6) $33,786,469 $30,502,857 $27,070,957 $23,177,557 $18,867,081 $14,168,978 $9,031,562 $3,653,930

9. Solvency ratio (8) / (4e) 4.33 3.84 3.33 2.82 2.29 1.71 1.09 0.44

--------------------

0087
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 6

Sheet Metal Workers Local Pension Plan

D. Deterministic Projection of Proposed Suspension

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period for the plan years beginning 

May 1, 2018 through May 1, 2049.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,469,591 $39,009,325 $39,575,268 $39,984,428 $40,070,144 $39,913,025 $39,571,822 

2. Employer contributions 4,003,726 3,450,000 3,450,000 3,450,000 3,325,000 3,325,000 3,325,000 3,325,000 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 640,420 847,866 1,080,834 1,288,619 1,477,184 1,660,685 

b. Terminated vested participants N/A 302,613 296,965 391,838 481,211 628,160 725,054 815,969 

c. Current actives N/A 5,146,516 4,145,485 4,024,887 3,910,492 3,789,770 3,665,725 3,536,065 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 5,082,870 5,264,591 5,472,537 5,706,549 5,867,963 6,012,719 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (400,661) 2,515,953 2,518,813 2,550,151 2,566,181 2,564,017 2,548,138 2,520,610 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,469,591 $39,009,325 $39,575,268 $39,984,428 $40,070,144 $39,913,025 $39,571,822 $39,051,407 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,166,296 $45,035,544 $44,658,138 $45,249,019 $45,542,681 $45,619,574 $45,439,785 $45,064,126 

9. Solvency ratio (8) / (4e) 7.93 7.47 8.79 8.59 8.32 7.99 7.74 7.49

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $39,051,407 $38,355,604 $37,505,358 $36,923,608 $36,232,827 $35,466,907 $34,606,904 $33,699,236 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 1,816,411 1,968,269 2,119,120 2,246,685 2,357,502 2,458,125 2,535,235 2,601,182 

b. Terminated vested participants 925,190 1,008,202 1,103,109 1,172,267 1,219,422 1,290,917 1,335,140 1,377,771 

c. Current actives 3,400,543 3,263,428 3,123,017 2,979,809 2,834,327 2,687,106 2,538,706 2,389,725 

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

e. Total 6,142,144 6,239,899 6,345,246 6,398,761 6,411,251 6,436,148 6,409,081 6,368,678 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 2,481,713 2,432,232 2,813,427 2,765,410 2,710,409 2,649,025 2,582,250 2,512,242 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $38,355,604 $37,505,358 $36,923,608 $36,232,827 $35,466,907 $34,606,904 $33,699,236 $32,753,845 

8. Available resources

(1) + (2) + (3) - (5) + (6) $44,497,748 $43,745,257 $43,268,854 $42,631,588 $41,878,158 $41,043,052 $40,108,317 $39,122,523 

9. Solvency ratio (8) / (4e) 7.24 7.01 6.82 6.66 6.53 6.38 6.26 6.14

--------------------

0088
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 7

Sheet Metal Workers Local Pension Plan

D. Deterministic Projection of Proposed Suspension (continued)

Plan year beginning May 1 2034 2035 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) $32,753,845 $31,793,231 $30,853,980 $29,945,005 $29,101,645 $28,339,645 $27,672,629 $27,127,479 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 2,650,955 2,688,193 2,708,760 2,711,231 2,700,564 2,685,243 2,657,945 2,615,109 

b. Terminated vested participants 1,411,852 1,421,233 1,438,804 1,440,546 1,442,334 1,438,178 1,422,945 1,393,340 

c. Current actives 2,240,790 2,092,543 1,945,641 1,800,752 1,658,577 1,519,852 1,385,294 1,255,587 

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

e. Total 6,303,597 6,201,969 6,093,205 5,952,529 5,801,475 5,643,273 5,466,184 5,264,036 

5. Administrative expenses 422,233 430,678 439,291 448,077 457,039 466,180 475,503 485,013 

6. Investment returns 2,440,216 2,368,396 2,298,521 2,232,246 2,171,514 2,117,437 2,071,537 2,036,161 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $31,793,231 $30,853,980 $29,945,005 $29,101,645 $28,339,645 $27,672,629 $27,127,479 $26,739,591 

8. Available resources

(1) + (2) + (3) - (5) + (6) $38,096,828 $37,055,949 $36,038,210 $35,054,174 $34,141,120 $33,315,902 $32,593,663 $32,003,627 

9. Solvency ratio (8) / (4e) 6.04 5.97 5.91 5.89 5.88 5.90 5.96 6.08

Plan year beginning May 1 2042 2043 2044 2045 2046 2047 2048 2049

1. Market value of assets (beginning of year) $26,739,591 $26,513,887 $26,468,977 $26,633,818 $27,022,754 $27,659,549 $28,566,143 $29,762,943 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 2,566,210 2,510,579 2,444,154 2,375,868 2,300,598 2,215,977 2,127,841 2,033,344 

b. Terminated vested participants 1,371,290 1,344,109 1,306,804 1,266,286 1,219,334 1,171,593 1,120,226 1,067,687 

c. Current actives 1,131,344 1,013,112 901,381 796,566 699,019 609,011 526,675 452,018 

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

e. Total 5,068,844 4,867,800 4,652,339 4,438,720 4,218,951 3,996,581 3,774,742 3,553,049 

5. Administrative expenses 494,713 504,608 514,700 524,994 535,494 546,204 557,128 568,270 

6. Investment returns 2,012,854 2,002,497 2,006,880 2,027,650 2,066,240 2,124,379 2,203,669 2,305,726 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $26,513,887 $26,468,977 $26,633,818 $27,022,754 $27,659,549 $28,566,143 $29,762,943 $31,272,349 

8. Available resources

(1) + (2) + (3) - (5) + (6) $31,582,731 $31,336,777 $31,286,157 $31,461,474 $31,878,500 $32,562,724 $33,537,685 $34,825,398 

9. Solvency ratio (8) / (4e) 6.23 6.44 6.72 7.09 7.56 8.15 8.88 9.80

--------------------

0089
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 8

Sheet Metal Workers Local Pension Plan

E. Deterministic Projection Demonstrating Proposed Suspension Does Not Materially Exceed the Level that is Necessary 

to Avoid Insolvency

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period for the plan years beginning May 1, 

2018 through May 1, 2049.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,469,591 $39,009,325 $39,468,789 $39,758,073 $39,708,883 $39,399,723 $38,890,352 

2. Employer contributions 4,003,726 3,450,000 3,450,000 3,450,000 3,325,000 3,325,000 3,325,000 3,325,000 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 656,569 869,311 1,108,271 1,321,405 1,514,809 1,702,992 

b. Terminated vested participants N/A 302,613 304,640 402,082 493,802 644,951 744,557 838,023 

c. Current actives N/A 5,146,516 4,224,781 4,102,467 3,986,603 3,864,277 3,738,551 3,607,071 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 5,185,990 5,373,860 5,588,676 5,830,633 5,997,917 6,148,086 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (400,661) 2,515,953 2,515,454 2,539,544 2,547,414 2,536,060 2,509,924 2,471,087 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,469,591 $39,009,325 $39,468,789 $39,758,073 $39,708,883 $39,399,723 $38,890,352 $38,185,047 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,166,296 $45,035,544 $44,654,779 $45,131,933 $45,297,559 $45,230,356 $44,888,269 $44,333,133 

9. Solvency ratio (8) / (4e) 7.93 7.47 8.61 8.40 8.11 7.76 7.48 7.21

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $38,185,047 $37,286,895 $36,216,607 $35,378,991 $34,409,276 $33,340,822 $32,152,434 $30,890,150 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 1,862,651 2,018,357 2,173,043 2,303,823 2,417,405 2,520,528 2,599,519 2,667,055 

b. Terminated vested participants 950,352 1,035,741 1,133,386 1,204,526 1,253,010 1,326,610 1,372,087 1,415,924 

c. Current actives 3,469,563 3,330,385 3,187,780 3,042,247 2,894,311 2,744,509 2,593,411 2,441,624 

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

e. Total 6,282,566 6,384,483 6,494,209 6,550,596 6,564,726 6,591,647 6,565,017 6,524,603 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 2,419,786 2,356,774 2,706,524 2,638,311 2,561,350 2,476,139 2,383,570 2,285,724 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $37,286,895 $36,216,607 $35,378,991 $34,409,276 $33,340,822 $32,152,434 $30,890,150 $29,562,316 

8. Available resources

(1) + (2) + (3) - (5) + (6) $43,569,461 $42,601,090 $41,873,200 $40,959,872 $39,905,548 $38,744,081 $37,455,167 $36,086,919 

9. Solvency ratio (8) / (4e) 6.93 6.67 6.45 6.25 6.08 5.88 5.71 5.53

--------------------

0090
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 9

Sheet Metal Workers Local Pension Plan

E. Deterministic Projection Demonstrating Proposed Suspension Does Not Materially Exceed the Level that is Necessary 

to Avoid Insolvency (continued)

Plan year beginning May 1 2034 2035 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) $29,562,316 $28,190,055 $26,808,878 $25,425,538 $24,073,824 $22,767,170 $21,516,619 $20,346,571 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 2,717,988 2,756,036 2,776,970 2,779,334 2,768,215 2,752,340 2,724,207 2,680,124 

b. Terminated vested participants 1,450,955 1,460,536 1,478,594 1,480,366 1,482,189 1,477,888 1,462,193 1,431,699 

c. Current actives 2,289,792 2,138,575 1,988,651 1,840,710 1,695,480 1,553,723 1,416,182 1,283,569 

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

e. Total 6,458,735 6,355,147 6,244,215 6,100,410 5,945,884 5,783,951 5,602,582 5,395,392 

5. Administrative expenses 422,233 430,678 439,291 448,077 457,039 466,180 475,503 485,013 

6. Investment returns 2,183,707 2,079,648 1,975,166 1,871,773 1,771,269 1,674,580 1,583,037 1,498,801 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $28,190,055 $26,808,878 $25,425,538 $24,073,824 $22,767,170 $21,516,619 $20,346,571 $19,289,967 

8. Available resources

(1) + (2) + (3) - (5) + (6) $34,648,790 $33,164,025 $31,669,753 $30,174,234 $28,713,054 $27,300,570 $25,949,153 $24,685,359 

9. Solvency ratio (8) / (4e) 5.36 5.22 5.07 4.95 4.83 4.72 4.63 4.58

Plan year beginning May 1 2042 2043 2044 2045 2046 2047 2048 2049

1. Market value of assets (beginning of year) $19,289,967 $18,348,057 $17,535,912 $16,878,932 $16,387,135 $16,079,835 $15,974,093 $16,084,968 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 2,629,863 2,572,699 2,504,464 2,434,344 2,357,082 2,270,216 2,179,743 2,082,781 

b. Terminated vested participants 1,409,001 1,381,040 1,342,660 1,300,975 1,252,679 1,203,578 1,150,752 1,096,729 

c. Current actives 1,156,518 1,035,599 921,320 814,112 714,340 622,284 538,083 461,744 

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

e. Total 5,195,382 4,989,338 4,768,444 4,549,431 4,324,101 4,096,078 3,868,578 3,641,254 

5. Administrative expenses 494,713 504,608 514,700 524,994 535,494 546,204 557,128 568,270 

6. Investment returns 1,423,186 1,356,800 1,301,164 1,257,628 1,227,295 1,211,540 1,211,580 1,228,608 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $18,348,057 $17,535,912 $16,878,932 $16,387,135 $16,079,835 $15,974,093 $16,084,968 $16,429,051 

8. Available resources

(1) + (2) + (3) - (5) + (6) $23,543,439 $22,525,250 $21,647,376 $20,936,566 $20,403,936 $20,070,171 $19,953,546 $20,070,305 

9. Solvency ratio (8) / (4e) 4.53 4.51 4.54 4.60 4.72 4.90 5.16 5.51

--------------------

0091
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 10

Sheet Metal Workers Local Pension Plan

F. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 1.00%

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period as required under regulation 

1.432(e)(9)-1(d)(5)(vi)(B)(1) and Revenue Procedure 2017-43, Section 6.05(1) for the plan years beginning May 1, 2018 through May 1, 2047.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,344,386 $38,496,833 $38,653,359 $38,625,347 $38,246,878 $37,599,798 $36,743,485 

2. Employer contributions 4,003,726 3,450,000 3,450,000 3,450,000 3,325,000 3,325,000 3,325,000 3,325,000 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 640,420 847,866 1,080,834 1,288,619 1,477,184 1,660,685 

b. Terminated vested participants N/A 302,613 296,965 391,838 481,211 628,160 725,054 815,969 

c. Current actives N/A 5,146,516 4,145,485 4,024,887 3,910,492 3,789,770 3,665,725 3,536,065 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 5,082,870 5,264,591 5,472,537 5,706,549 5,867,963 6,012,719 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (525,866) 2,128,666 2,109,396 2,112,979 2,101,996 2,074,056 2,033,028 1,980,699 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,344,386 $38,496,833 $38,653,359 $38,625,347 $38,246,878 $37,599,798 $36,743,485 $35,683,159 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,041,091 $44,523,052 $43,736,229 $43,889,938 $43,719,415 $43,306,347 $42,611,448 $41,695,878 

9. Solvency ratio (8) / (4e) 7.91 7.39 8.60 8.34 7.99 7.59 7.26 6.93

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $35,683,159 $34,422,969 $32,984,085 $31,733,959 $30,335,130 $28,819,665 $27,166,590 $25,420,033 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 1,816,411 1,968,269 2,119,120 2,246,685 2,357,502 2,458,125 2,535,235 2,601,182 

b. Terminated vested participants 925,190 1,008,202 1,103,109 1,172,267 1,219,422 1,290,917 1,335,140 1,377,771 

c. Current actives 3,400,543 3,263,428 3,123,017 2,979,809 2,834,327 2,687,106 2,538,706 2,389,725 

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

e. Total 6,142,144 6,239,899 6,345,246 6,398,761 6,411,251 6,436,148 6,409,081 6,368,678 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 1,917,326 1,843,594 2,145,051 2,057,362 1,960,864 1,855,953 1,743,361 1,624,810 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $34,422,969 $32,984,085 $31,733,959 $30,335,130 $28,819,665 $27,166,590 $25,420,033 $23,587,210 

8. Available resources

(1) + (2) + (3) - (5) + (6) $40,565,113 $39,223,984 $38,079,205 $36,733,891 $35,230,916 $33,602,738 $31,829,114 $29,955,888 

9. Solvency ratio (8) / (4e) 6.60 6.29 6.00 5.74 5.50 5.22 4.97 4.70

--------------------

0092
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 11

Sheet Metal Workers Local Pension Plan

F. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 1.00% (continued)

Plan year beginning May 1 2034 2035 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) $23,587,210 $21,687,555 $19,754,095 $17,791,717 $15,831,249 $13,883,367 $11,956,137 $10,070,308 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 2,650,955 2,688,193 2,708,760 2,711,231 2,700,564 2,685,243 2,657,945 2,615,109 

b. Terminated vested participants 1,411,852 1,421,233 1,438,804 1,440,546 1,442,334 1,438,178 1,422,945 1,393,340 

c. Current actives 2,240,790 2,092,543 1,945,641 1,800,752 1,658,577 1,519,852 1,385,294 1,255,587 

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

e. Total 6,303,597 6,201,969 6,093,205 5,952,529 5,801,475 5,643,273 5,466,184 5,264,036 

5. Administrative expenses 422,233 430,678 439,291 448,077 457,039 466,180 475,503 485,013 

6. Investment returns 1,501,175 1,374,187 1,245,118 1,115,138 985,632 857,223 730,858 608,167 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $21,687,555 $19,754,095 $17,791,717 $15,831,249 $13,883,367 $11,956,137 $10,070,308 $8,254,426 

8. Available resources

(1) + (2) + (3) - (5) + (6) $27,991,152 $25,956,064 $23,884,922 $21,783,778 $19,684,842 $17,599,410 $15,536,492 $13,518,462 

9. Solvency ratio (8) / (4e) 4.44 4.19 3.92 3.66 3.39 3.12 2.84 2.57

Plan year beginning May 1 2042 2043 2044 2045 2046 2047

1. Market value of assets (beginning of year) $8,254,426 $6,505,895 $4,835,180 $3,262,306 $1,791,864 $437,014 

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

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,566,210 2,510,579 2,444,154 2,375,868 2,300,598 2,215,977 

b. Terminated vested participants 1,371,290 1,344,109 1,306,804 1,266,286 1,219,334 1,171,593 

c. Current actives 1,131,344 1,013,112 901,381 796,566 699,019 609,011 

d. New entrants 0 0 0 0 0 0 

e. Total 5,068,844 4,867,800 4,652,339 4,438,720 4,218,951 3,996,581 

5. Administrative expenses 494,713 504,608 514,700 524,994 535,494 546,204 

6. Investment returns 490,027 376,692 269,165 168,272 74,595 5,244

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $6,505,895 $4,835,180 $3,262,306 $1,791,864 $437,014 Insolvent

8. Available resources

(1) + (2) + (3) - (5) + (6) $11,574,739 $9,702,980 $7,914,645 $6,230,584 $4,655,965 $3,221,054

9. Solvency ratio (8) / (4e) 2.28 1.99 1.70 1.40 1.10 0.81

--------------------

0093
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 12

Sheet Metal Workers Local Pension Plan

G. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 2.00%

The table shows the projection of the plan-year-by-plan-year market value of assets until the year of insolvency (plan year beginning May 1, 2039) as required 

under regulation 1.432(e)(9)-1(d)(5)(vi)(B)(2) and Revenue Procedure 2017-43, Section 6.05(2) for the plan years beginning May 1, 2018 through May 1, 2039.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,218,390 $37,986,086 $37,743,571 $37,297,434 $36,483,459 $35,385,710 $34,065,199 

2. Employer contributions 4,003,726 3,450,000 3,450,000 3,450,000 3,325,000 3,325,000 3,325,000 3,325,000 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 640,420 847,866 1,080,834 1,288,619 1,477,184 1,660,685 

b. Terminated vested participants N/A 302,613 296,965 391,838 481,211 628,160 725,054 815,969 

c. Current actives N/A 5,146,516 4,145,485 4,024,887 3,910,492 3,789,770 3,665,725 3,536,065 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 5,082,870 5,264,591 5,472,537 5,706,549 5,867,963 6,012,719 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (651,862) 1,743,915 1,710,355 1,694,854 1,666,490 1,623,387 1,568,830 1,504,358 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,218,390 $37,986,086 $37,743,571 $37,297,434 $36,483,459 $35,385,710 $34,065,199 $32,528,532 

8. Available resources

(1) + (2) + (3) - (5) + (6) $44,915,095 $44,012,305 $42,826,441 $42,562,025 $41,955,996 $41,092,259 $39,933,162 $38,541,251 

9. Solvency ratio (8) / (4e) 7.88 7.30 8.43 8.08 7.67 7.20 6.81 6.41

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $32,528,532 $30,781,262 $28,845,909 $27,040,320 $25,066,331 $22,956,145 $20,688,871 $18,308,623 

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

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

4. Benefit payments

a. Current retirees and beneficiaries 1,816,411 1,968,269 2,119,120 2,246,685 2,357,502 2,458,125 2,535,235 2,601,182 

b. Terminated vested participants 925,190 1,008,202 1,103,109 1,172,267 1,219,422 1,290,917 1,335,140 1,377,771 

c. Current actives 3,400,543 3,263,428 3,123,017 2,979,809 2,834,327 2,687,106 2,538,706 2,389,725 

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

e. Total 6,142,144 6,239,899 6,345,246 6,398,761 6,411,251 6,436,148 6,409,081 6,368,678 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 1,430,246 1,347,125 1,589,588 1,482,202 1,366,143 1,241,754 1,109,670 971,356 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $30,781,262 $28,845,909 $27,040,320 $25,066,331 $22,956,145 $20,688,871 $18,308,623 $15,822,346 

8. Available resources

(1) + (2) + (3) - (5) + (6) $36,923,406 $35,085,808 $33,385,566 $31,465,092 $29,367,396 $27,125,019 $24,717,704 $22,191,024 

9. Solvency ratio (8) / (4e) 6.01 5.62 5.26 4.92 4.58 4.21 3.86 3.48

--------------------

0094
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 13

Sheet Metal Workers Local Pension Plan

G. Deterministic Projection of Proposed Suspension Assuming Annual Rate of Return is Reduced by 2.00% (continued)

Plan year beginning May 1 2034 2035 2036 2037 2038 2039

1. Market value of assets (beginning of year) $15,822,346 $13,249,063 $10,621,113 $7,942,466 $5,242,811 $2,531,416 

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

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,650,955 2,688,193 2,708,760 2,711,231 2,700,564 2,685,243 

b. Terminated vested participants 1,411,852 1,421,233 1,438,804 1,440,546 1,442,334 1,438,178 

c. Current actives 2,240,790 2,092,543 1,945,641 1,800,752 1,658,577 1,519,852 

d. New entrants 0 0 0 0 0 0 

e. Total 6,303,597 6,201,969 6,093,205 5,952,529 5,801,475 5,643,273 

5. Administrative expenses 422,233 430,678 439,291 448,077 457,039 466,180 

6. Investment returns 827,547 679,697 528,849 375,951 222,119 67,745

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $13,249,063 $10,621,113 $7,942,466 $5,242,811 $2,531,416 Insolvent

8. Available resources

(1) + (2) + (3) - (5) + (6) $19,552,660 $16,823,082 $14,035,671 $11,195,340 $8,332,891 $5,457,981

9. Solvency ratio (8) / (4e) 3.10 2.71 2.30 1.88 1.44 0.97

--------------------

0095
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 14

Sheet Metal Workers Local Pension Plan

H. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption Continues Under the 

Same Trend as the Plan Experienced Over the Last 10 Years (1.1% per year)

The table shows the projection of the plan-year-by-plan-year market value of assets over the extended projection period as required under regulation 

1.432(e)(9)-1(d)(5)(vi)(C)(1) and Revenue Procedure 2017-43, Section 6.05(3) for the plan years beginning May 1, 2018 through May 1, 2049.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,576,665 $39,916,778 $41,383,998 $42,802,540 $44,207,732 $45,507,669 $46,770,757 

2. Employer contributions 4,109,662 4,218,269 4,264,670 4,311,581 4,422,183 4,470,827 4,520,006 4,569,726 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 640,420 847,866 1,080,834 1,288,619 1,477,184 1,660,685 

b. Terminated vested participants N/A 302,613 296,965 391,838 481,211 628,160 725,054 815,969 

c. Current actives N/A 5,146,516 4,145,485 4,024,887 3,910,492 3,789,770 3,665,725 3,536,065 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 5,082,870 5,264,591 5,472,537 5,706,549 5,867,963 6,012,719 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (399,523) 2,548,063 2,605,420 2,697,951 2,788,475 2,875,245 2,957,424 3,037,719 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,576,665 $39,916,778 $41,383,998 $42,802,540 $44,207,732 $45,507,669 $46,770,757 $48,012,177 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,273,370 $45,942,997 $46,466,868 $48,067,131 $49,680,269 $51,214,218 $52,638,720 $54,024,896 

9. Solvency ratio (8) / (4e) 7.95 7.62 9.14 9.13 9.08 8.97 8.97 8.99

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $48,012,177 $49,246,747 $50,507,140 $52,397,025 $54,425,849 $56,647,558 $59,064,852 $61,747,492 

2. Employer contributions 4,619,993 4,670,813 4,722,192 4,774,136 4,826,651 4,879,745 4,933,422 4,987,689 

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

4. Benefit payments

a. Current retirees and beneficiaries 1,816,411 1,968,269 2,119,120 2,246,685 2,357,502 2,458,125 2,535,235 2,601,182 

b. Terminated vested participants 925,190 1,008,202 1,103,109 1,172,267 1,219,422 1,290,917 1,335,140 1,377,771 

c. Current actives 3,400,543 3,263,428 3,123,017 2,979,809 2,834,327 2,687,106 2,538,706 2,389,725 

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

e. Total 6,142,144 6,239,899 6,345,246 6,398,761 6,411,251 6,436,148 6,409,081 6,368,678 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 3,117,093 3,197,058 3,887,871 4,035,878 4,196,387 4,371,577 4,564,137 4,778,058 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $49,246,747 $50,507,140 $52,397,025 $54,425,849 $56,647,558 $59,064,852 $61,747,492 $64,730,607 

8. Available resources

(1) + (2) + (3) - (5) + (6) $55,388,891 $56,747,039 $58,742,271 $60,824,610 $63,058,809 $65,501,000 $68,156,573 $71,099,285 

9. Solvency ratio (8) / (4e) 9.02 9.09 9.26 9.51 9.84 10.18 10.63 11.16

--------------------

0096
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 15

Sheet Metal Workers Local Pension Plan

H. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption Continued Under the 

Same Trend as the Plan Experienced Over the Last 10 Years (1.1% per year) (continued)

Plan year beginning May 1 2034 2035 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) $64,730,607 $68,063,863 $71,813,155 $76,019,012 $80,750,877 $86,061,282 $92,003,536 $98,647,326 

2. Employer contributions 5,042,554 5,098,022 5,154,100 5,210,795 5,268,114 5,326,063 5,384,650 5,443,881 

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

4. Benefit payments

a. Current retirees and beneficiaries 2,650,955 2,688,193 2,708,760 2,711,231 2,700,564 2,685,243 2,657,945 2,615,109 

b. Terminated vested participants 1,411,852 1,421,233 1,438,804 1,440,546 1,442,334 1,438,178 1,422,945 1,393,340 

c. Current actives 2,240,790 2,092,543 1,945,641 1,800,752 1,658,577 1,519,852 1,385,294 1,255,587 

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

e. Total 6,303,597 6,201,969 6,093,205 5,952,529 5,801,475 5,643,273 5,466,184 5,264,036 

5. Administrative expenses 422,233 430,678 439,291 448,077 457,039 466,180 475,503 485,013 

6. Investment returns 5,016,532 5,283,917 5,584,253 5,921,675 6,300,805 6,725,643 7,200,827 7,732,063 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $68,063,863 $71,813,155 $76,019,012 $80,750,877 $86,061,282 $92,003,536 $98,647,326 $106,074,221 

8. Available resources

(1) + (2) + (3) - (5) + (6) $74,367,460 $78,015,124 $82,112,217 $86,703,406 $91,862,757 $97,646,809 $104,113,510 $111,338,257 

9. Solvency ratio (8) / (4e) 11.80 12.58 13.48 14.57 15.83 17.30 19.05 21.15

Plan year beginning May 1 2042 2043 2044 2045 2046 2047 2048 2049

1. Market value of assets (beginning of year) $106,074,221 $114,338,951 $123,513,846 $133,685,812 $144,931,695 $157,342,679 $171,013,421 $186,042,760 

2. Employer contributions 5,503,764 5,564,305 5,625,513 5,687,393 5,749,955 5,813,204 5,877,149 5,941,798 

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

4. Benefit payments

a. Current retirees and beneficiaries 2,566,210 2,510,579 2,444,154 2,375,868 2,300,598 2,215,977 2,127,841 2,033,344 

b. Terminated vested participants 1,371,290 1,344,109 1,306,804 1,266,286 1,219,334 1,171,593 1,120,226 1,067,687 

c. Current actives 1,131,344 1,013,112 901,381 796,566 699,019 609,011 526,675 452,018 

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

e. Total 5,068,844 4,867,800 4,652,339 4,438,720 4,218,951 3,996,581 3,774,742 3,553,049 

5. Administrative expenses 494,713 504,608 514,700 524,994 535,494 546,204 557,128 568,270 

6. Investment returns 8,324,524 8,982,997 9,713,492 10,522,204 11,415,474 12,400,322 13,484,060 14,674,461 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $114,338,951 $123,513,846 $133,685,812 $144,931,695 $157,342,679 $171,013,421 $186,042,760 $202,537,700 

8. Available resources

(1) + (2) + (3) - (5) + (6) $119,407,795 $128,381,646 $138,338,151 $149,370,415 $161,561,630 $175,010,002 $189,817,502 $206,090,749 

9. Solvency ratio (8) / (4e) 23.56 26.37 29.74 33.65 38.29 43.79 50.29 58.00

--------------------

0097
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 16

Sheet Metal Workers Local Pension Plan

I. Deterministic Projection of the Proposed Suspension Assuming the Industry Activity Assumption Continues Under 

the Same Trend as the Plan Experienced Over the Last 10 Years, Reduced by 1.0% (0.1% per year)

The table shows projection of the plan-year-by-plan-year market value of assets over the extended projection period as required under regulation 1.432(e)(9)-

1(d)(5)(vi)(C)(2) and Revenue Procedure 2017-43, Section 6.05(4) for the plan years beginning May 1, 2018 through May 1, 2049.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,563,142 $39,845,245 $41,207,001 $42,468,961 $43,659,794 $44,685,326 $45,609,442 

2. Employer contributions 4,096,283 4,162,956 4,167,119 4,171,286 4,235,971 4,240,207 4,244,448 4,248,692 

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

4. Benefit payments

a. Current retirees and beneficiaries N/A 577,090 640,420 847,866 1,080,834 1,288,619 1,477,184 1,660,685 

b. Terminated vested participants N/A 302,613 296,965 391,838 481,211 628,160 725,054 815,969 

c. Current actives N/A 5,146,516 4,145,485 4,024,887 3,910,492 3,789,770 3,665,725 3,536,065 

d. New entrants N/A 0 0 0 0 0 0 0 

e. Total 5,696,705 6,026,219 5,082,870 5,264,591 5,472,537 5,706,549 5,867,963 6,012,719 

5. Administrative expenses 570,000 400,000 320,000 326,400 332,928 339,587 346,378 353,306 

6. Investment returns (399,667) 2,545,366 2,597,507 2,681,664 2,760,327 2,831,460 2,894,010 2,950,384 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $39,563,142 $39,845,245 $41,207,001 $42,468,961 $43,659,794 $44,685,326 $45,609,442 $46,442,493 

8. Available resources

(1) + (2) + (3) - (5) + (6) $45,259,847 $45,871,464 $46,289,871 $47,733,552 $49,132,331 $50,391,875 $51,477,405 $52,455,212 

9. Solvency ratio (8) / (4e) 7.94 7.61 9.11 9.07 8.98 8.83 8.77 8.72

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $46,442,493 $47,194,143 $47,891,562 $49,097,642 $50,339,460 $51,662,278 $53,059,413 $54,590,508 

2. Employer contributions 4,252,941 4,257,194 4,261,451 4,265,712 4,269,978 4,274,248 4,278,522 4,282,801 

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

4. Benefit payments

a. Current retirees and beneficiaries 1,816,411 1,968,269 2,119,120 2,246,685 2,357,502 2,458,125 2,535,235 2,601,182 

b. Terminated vested participants 925,190 1,008,202 1,103,109 1,172,267 1,219,422 1,290,917 1,335,140 1,377,771 

c. Current actives 3,400,543 3,263,428 3,123,017 2,979,809 2,834,327 2,687,106 2,538,706 2,389,725 

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

e. Total 6,142,144 6,239,899 6,345,246 6,398,761 6,411,251 6,436,148 6,409,081 6,368,678 

5. Administrative expenses 360,372 367,579 374,931 382,430 390,078 397,880 405,837 413,954 

6. Investment returns 3,001,225 3,047,704 3,664,806 3,757,297 3,854,169 3,956,915 4,067,491 4,189,090 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $47,194,143 $47,891,562 $49,097,642 $50,339,460 $51,662,278 $53,059,413 $54,590,508 $56,279,767 

8. Available resources

(1) + (2) + (3) - (5) + (6) $53,336,287 $54,131,461 $55,442,888 $56,738,221 $58,073,529 $59,495,561 $60,999,589 $62,648,445 

9. Solvency ratio (8) / (4e) 8.68 8.68 8.74 8.87 9.06 9.24 9.52 9.84

--------------------

0098
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 17

Sheet Metal Workers Local Pension Plan

I. Deterministic Projection of Proposed Suspension Assuming the Industry Activity Assumption Continued Under the 

Same Trend as the Plan Experienced Over the Last 10 Years, Reduced by 1.0% (0.1% per year) (continued)

Plan year beginning May 1 2034 2035 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) $56,279,767 $58,165,069 $60,299,592 $62,710,138 $65,451,343 $68,559,761 $72,071,463 $76,037,532 

2. Employer contributions 4,287,084 4,291,371 4,295,662 4,299,958 4,304,258 4,308,562 4,312,870 4,317,183 

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

4. Benefit payments

a. Current retirees and beneficiaries 2,650,955 2,688,193 2,708,760 2,711,231 2,700,564 2,685,243 2,657,945 2,615,109 

b. Terminated vested participants 1,411,852 1,421,233 1,438,804 1,440,546 1,442,334 1,438,178 1,422,945 1,393,340 

c. Current actives 2,240,790 2,092,543 1,945,641 1,800,752 1,658,577 1,519,852 1,385,294 1,255,587 

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

e. Total 6,303,597 6,201,969 6,093,205 5,952,529 5,801,475 5,643,273 5,466,184 5,264,036 

5. Administrative expenses 422,233 430,678 439,291 448,077 457,039 466,180 475,503 485,013 

6. Investment returns 4,324,049 4,475,799 4,647,381 4,841,853 5,062,675 5,312,592 5,594,886 5,913,807 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $58,165,069 $60,299,592 $62,710,138 $65,451,343 $68,559,761 $72,071,463 $76,037,532 $80,519,473 

8. Available resources

(1) + (2) + (3) - (5) + (6) $64,468,666 $66,501,561 $68,803,343 $71,403,872 $74,361,236 $77,714,736 $81,503,716 $85,783,509 

9. Solvency ratio (8) / (4e) 10.23 10.72 11.29 12.00 12.82 13.77 14.91 16.30

Plan year beginning May 1 2042 2043 2044 2045 2046 2047 2048 2049

1. Market value of assets (beginning of year) $80,519,473 $85,550,365 $91,179,180 $97,467,627 $104,465,369 $112,234,263 $120,837,331 $130,339,288 

2. Employer contributions 4,321,500 4,325,822 4,330,148 4,334,478 4,338,812 4,343,151 4,347,494 4,351,842 

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

4. Benefit payments

a. Current retirees and beneficiaries 2,566,210 2,510,579 2,444,154 2,375,868 2,300,598 2,215,977 2,127,841 2,033,344 

b. Terminated vested participants 1,371,290 1,344,109 1,306,804 1,266,286 1,219,334 1,171,593 1,120,226 1,067,687 

c. Current actives 1,131,344 1,013,112 901,381 796,566 699,019 609,011 526,675 452,018 

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

e. Total 5,068,844 4,867,800 4,652,339 4,438,720 4,218,951 3,996,581 3,774,742 3,553,049 

5. Administrative expenses 494,713 504,608 514,700 524,994 535,494 546,204 557,128 568,270 

6. Investment returns 6,272,949 6,675,401 7,125,338 7,626,978 8,184,526 8,802,702 9,486,332 10,240,511 

7. Market value of assets (end of year)

(1) + (2) + (3) - (4e) - (5) + (6) $85,550,365 $91,179,180 $97,467,627 $104,465,369 $112,234,263 $120,837,331 $130,339,288 $140,810,321 

8. Available resources

(1) + (2) + (3) - (5) + (6) $90,619,209 $96,046,980 $102,119,966 $108,904,089 $116,453,214 $124,833,912 $134,114,030 $144,363,370 

9. Solvency ratio (8) / (4e) 17.88 19.73 21.95 24.54 27.60 31.24 35.53 40.63

--------------------

0099
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 18

Sheet Metal Workers Local Pension Plan

J. Projection of Funded Percentage

The table shows the projected market value of assets, plan liability and funded percentage for the plan years beginning May 1, 2018 through May 1, 2049 for 

the proposed suspension as required under regulation 1.432(e)(9)-1(d)(5)(vi)(D) and Revenue Procedure 2017-43, Section 6.06.

Plan year beginning May 1 2018 2019 2020 2021 2022 2023 2024 2025

1. Market value of assets (beginning of year) $42,133,231 $39,469,591 $39,009,325 $39,575,268 $39,984,428 $40,070,144 $39,913,025 $39,571,822

2. Unit credit accrued liability* 102,336,456 103,109,392 81,322,843 81,363,365 81,218,987 80,850,627 80,216,826 79,375,250 

3. Funded percentage: (1) / (2) 41.17% 38.28% 47.97% 48.64% 49.23% 49.56% 49.76% 49.85%

Plan year beginning May 1 2026 2027 2028 2029 2030 2031 2032 2033

1. Market value of assets (beginning of year) $39,051,407 $38,355,604 $37,505,358 $36,923,608 $36,232,827 $35,466,907 $34,606,904 $33,699,236

2. Unit credit accrued liability* 78,329,585 77,082,387 75,653,239 74,022,479 72,230,493 70,309,139 68,237,203 66,058,524 

3. Funded percentage: (1) / (2) 49.86% 49.76% 49.58% 49.88% 50.16% 50.44% 50.72% 51.01%

Plan year beginning May 1 2034 2035 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) $32,753,845 $31,793,231 $30,853,980 $29,945,005 $29,101,645 $28,339,645 $27,672,629 $27,127,479

2. Unit credit accrued liability* 63,779,926 61,420,382 59,012,347 56,560,033 54,093,494 51,622,516 49,154,187 46,708,171 

3. Funded percentage: (1) / (2) 51.35% 51.76% 52.28% 52.94% 53.80% 54.90% 56.30% 58.08%

Plan year beginning May 1 2042 2043 2044 2045 2046 2047 2048 2049

1. Market value of assets (beginning of year) $26,739,591 $26,513,887 $26,468,977 $26,633,818 $27,022,754 $27,659,549 $28,566,143 $29,762,943

2. Unit credit accrued liability* 44,311,778 41,961,056 39,665,012 37,442,078 35,295,106 33,235,380 31,271,255 29,408,397 

3. Funded percentage: (1) / (2) 60.34% 63.19% 66.73% 71.13% 76.56% 83.22% 91.35% 101.21%

Plan year beginning May 1 2050

1. Market value of assets (beginning of year) $31,272,349

2. Unit credit accrued liability* 27,653,238 

3. Funded percentage: (1) / (2) 113.09%

*The interest rate for calculating the unit credit accrued liability is 6.5% which is the assumption used in the May 1, 2017 actuarial valuation.

--------------------

0100
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 19

Sheet Metal Workers Local Pension Plan

K. Response to Revenue Procedure 2017-43 Sections 6.03, 6.04 and Appendix B

The following is a response to Sections 6.03, 6.04 and Appendix B of Revenue Procedure 2017-43. In many 

cases, we have referenced other materials that are included in this application. Between this response, the May 1, 

2017 Actuarial Valuation, the May 1, 2018 PPA Actuarial Certification, and our report titled “Supplemental 

Information to Actuarial Certification for the Plan Year Beginning May 1, 2018”, all assumptions used in the 

projections required under Section 3.01, 3.02, 4.02(1), 4.03, 6.05 and 6.06 of Revenue Procedure 2017-43 have 

been described. This section responds to the items in Revenue Procedure 2017-43 Appendix B in the same order 

laid out in Appendix B.

Part 1 – Actuarial Assumptions and Methods Used for Projections

Investment Returns

Plan Year 

Beginning May 1 Return

2017* 7.04%

2018** -0.98%

2019 – 2027 6.62%

2028+ 7.85%

** Based on the April 30, 2017 and April 30, 2018 audited financial statements. 

** Estimated return based on the December 31, 2018 unaudited financial statements and assuming 2.16% return for 

January 1, 2019 through April 30, 2019. 2.16% is 4 months of 6.62%, which is the amount derived for the entire year.

Mortality Assumptions

 Active and Terminated Vested Participants: RP-2014 Blue Collar Employee Mortality Table adjusted to 

reflect Mortality Improvement Scale MP-2018 from the 2006 base year, and projected forward using MP2018 on a generational basis.

 Current and Future Retirees, Disabled Participants and Beneficiaries: RP-2014 Blue Collar Healthy 

Annuitant Mortality Table adjusted to reflect Mortality Improvement Scale MP-2018 from the 2006 base 

year, and projected forward using MP-2018 on a generational basis.

Other Demographic Assumptions

Retirement Rates 

Age

Active 

Retirement Rates

Terminated Vested 

Retirement Rates*

55 10% 5%

56 10% 5%

57 10% 5%

58 10% 5%

59 10% 5%

60 10% 5%

61 20% 20%

62 50% 20%

63 50% 10%

64 50% 10%

65 & older 100% 100%

* Applies to both current and future assumed terminated vested participants.

--------------

0101
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 20

Sheet Metal Workers Local Pension Plan

Termination 

Age

Less than 2 

Years of Service

2 - 4 

Years of Service

4 or More 

Years of Service: 

Ultimate Rates 

(Sarason T-5)

20 & under 30.00% 15.00% 7.88%

21 30.00% 15.00% 7.83%

22 30.00% 15.00% 7.79%

23 30.00% 15.00% 7.74%

24 30.00% 15.00% 7.69%

25 30.00% 15.00% 7.64%

26 30.00% 15.00% 7.58%

27 30.00% 15.00% 7.50%

28 30.00% 15.00% 7.39%

29 30.00% 15.00% 7.26%

30 30.00% 15.00% 7.11%

31 30.00% 15.00% 6.94%

32 30.00% 15.00% 6.76%

33 30.00% 15.00% 6.56%

34 30.00% 15.00% 6.35%

35 30.00% 15.00% 6.13%

36 30.00% 15.00% 5.90%

37 30.00% 15.00% 5.66%

38 30.00% 15.00% 5.42%

39 30.00% 15.00% 5.18%

40 30.00% 15.00% 4.93%

41 30.00% 15.00% 4.68%

42 30.00% 15.00% 4.42%

43 30.00% 15.00% 4.16%

44 30.00% 15.00% 3.89%

45 30.00% 15.00% 3.89%

46 30.00% 15.00% 3.63%

47 30.00% 15.00% 3.35%

48 30.00% 15.00% 3.06%

49 30.00% 15.00% 2.75%

50 30.00% 15.00% 2.41%

51 30.00% 15.00% 2.06%

52 30.00% 15.00% 1.70%

53 30.00% 15.00% 1.34%

54 30.00% 15.00% 1.00%

55 & over 30.00% 15.00% 0.00%

Disability

None.

Exclusion of Terminated Vested Participants

None. All terminated vested participants are included.

--------------

0102
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 21

Sheet Metal Workers Local Pension Plan

Assumptions Regarding Form and Commencement of Benefits

 Future retirees are assumed to elect the following forms of payment: 45% elect the single life annuity, 

10% elect the ten year certain and life annuity, 20% elect the joint and 50% survivor annuity with pop-up, 

and 25% elect the joint and 75% survivor with pop-up.

 Terminated vested participants are assumed commence benefits immediately upon retiring. The 

retirement rates for current and future terminated vested participants are described above.

 We assume no future disabilities because the disability benefit was eliminated effective 

September 1, 2013. 

Assumptions Regarding Missing or Incomplete Data

 Active, terminated vested, retiree and disabled records where gender is not reported are assumed to be 

male.

 Beneficiary, deferred beneficiary, and alternate payee records where gender is not reported are assumed 

to be female.

 Spouses are assumed to be opposite gender of the member if gender is not reported.

 Female spouses are assumed to be 3 years younger than male spouses.

 100% of active and terminated vested participants are assumed to be married.

 For missing pop-up amounts, it was assumed that the pop-up benefit is 112% and 119% of the current 

benefit for the 50% joint and survivor and 75% joint and survivor options, respectively.

--------------

0103
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 22

Sheet Metal Workers Local Pension Plan

New Entrant Profile

 No assumption was made with respect to the demographic characteristics of new entrants because 

benefit accruals were suspended effective August 1, 2013. There is no impact on projected plan liabilities 

and benefit payments from new entrants to the Plan during the projection period. However, we have 

assumed that there will be replacement of current participants by new entrants based on Trustee input 

related to projected contribution base units (see below).

Contribution Base Units and Rates

The table below shows the assumed contribution base units (hours) and average contribution rate used for 

projections shown in this report.

Plan Year 

Beginning May 1

Total Contribution

Base Units (Hours)

Average Contribution 

Rate (Hourly)

2018 1,178,226 $3.40

2019 1,000,000 $3.45

2020 1,000,000 $3.45

2021 1,000,000 $3.45

2022 950,000 $3.50

2023 950,000 $3.50

2024 950,000 $3.50

2025 950,000 $3.50

2026 950,000 $3.50

2027 950,000 $3.50

2028 950,000 $3.50

2029 950,000 $3.50

2030 950,000 $3.50

2031 950,000 $3.50

2032 950,000 $3.50

2033 950,000 $3.50

2034 950,000 $3.50

2035 950,000 $3.50

2036 950,000 $3.50

2037 950,000 $3.50

2038 950,000 $3.50

2039 950,000 $3.50

2040 950,000 $3.50

2041 950,000 $3.50

2042 950,000 $3.50

2043 950,000 $3.50

2044 950,000 $3.50

2045 950,000 $3.50

2046 950,000 $3.50

2047 950,000 $3.50

2048 950,000 $3.50

2049 950,000 $3.50

Total estimated hours for the plan year May 2018 through April 2019 are 811,559 + 366,667 = 1,178,226. The 811,559 

hours for May 2018 through December 2018 was provided by the Fund Office. We are estimating 366,667 hours for 

January 2019 through April 2019 based on 4/12ths of the 1.1 million hours assumption for the 2018/2019 plan year.

--------------

0104
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 23

Sheet Metal Workers Local Pension Plan

Withdrawal Liability Payments

 No withdrawal liability payments are currently being made and no future withdrawal liability payments are 

assumed.

Administrative Expenses (Other than Investment-Related Expenses)

 The annual administrative expense assumption is $570,000 for the year beginning May 1, 2018. This is 

based on the expenses incurred from May 1, 2018 through December 31, 2018 and the anticipated 

increase in expenses for the remainder of the year due to work related to the resubmission of the 

application for the proposed suspension of benefits. The administrative expenses are assumed to 

decrease to $400,000 for the year beginning May 1, 2019 and further decrease to $320,000 for the year 

beginning May 1, 2020. After May 1, 2020, administrative expenses are assumed to increase by 2.0% per 

year thereafter for inflation.

Projection Methodology

 No data grouping techniques were used to produce projections.

 No changes or adjustments were made to cash flow projections produced by our valuation software.

--------------

0105
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 24

Sheet Metal Workers Local Pension Plan

Part 2 – Supporting Documentation for Selection of Certain Actuarial Assumptions

Investment Returns

The components of the target portfolio used in the projections, expressed in terms of the asset classes used for 

setting the Plan’s investment policy are as follows:

Asset Class Allocations

US Equity - Large Cap 2.4%

US Equity - Value 7.5%

US Equity - Mid Cap Value 7.5%

US Equity - Small Cap Value 5.0%

Global Equity 3.0%

Non-US Equity – Developed 10.4%

Non-US Equity – Emerging 0.7%

US Fixed Income 11.6%

Global Bonds 0.6%

US Treasuries (Cash Equivalents) 0.4%

Real Estate 20.0%

Hedge Funds 15.9%

Private Equity 15.0%

The components of the target portfolio were allocated as follows among the asset classes provided in Appendix B 

of Revenue Procedure 2017-43:

Asset Class Allocations

US Equity – Large Cap 10.5%

US Equity – Small/Mid Cap 13.3%

Non-US Equity – Developed 11.7%

Non-US Equity – Emerging 1.0%

US Corporate Bonds – Core 11.9%

Non-US Debt Developed 0.3%

US Treasuries (Cash Equivalents) 0.4%

Real Estate 20.0%

Hedge Funds (includes 100% of Absolute Return Assets) 15.9%

Private Equity 15.0%

The 10 and 20-year expected returns (arithmetic returns) shown on Exhibit 15 of the 2018 edition of the Horizon 

Survey of Capital Market Assumptions were used. The associated standard deviations and correlation coefficients 

from Exhibit 15 were also used.

This process produced a median geometric return of 6.62% using the 10-year capital market assumptions and a 

median geometric return of 7.85% using the 20-year capital market assumptions, which were then used to project 

future investment returns. 

--------------

0106
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 25

Sheet Metal Workers Local Pension Plan

Demographic Experience

 An experience study was completed by the prior actuarial firm for the period May 1, 2010 to April 30, 

2015. The retirement rates from active status and termination rates were updated as of May 1, 2015 as a 

result of the experience study. The results of the experience analysis as provided by the prior actuarial 

firm are shown below. Our understanding is that the prior actuarial firm did not prepare a formal 

experience study report. 

 The historical actuarial gains and losses over the last ten years are shown below. The May 1, 2018 

actuarial valuation has not been completed at the time of this filing; as such, the actuarial gains and 

losses for the plan year beginning May 1, 2017 are unavailable. 

Plan Year 

Ending April 30

Demographic and 

Administrative Expense

(Gain)/Loss

Asset 

(Gain)/Loss

Total 

(Gain)/Loss

2017 $(686,979) $2,537,985 $1,851,006

2016 (205,159) 3,903,376 3,698,217

2015 263,280 2,936,285 3,199,565

2014 30,444 (802,801) (772,357)

2013 494,878 (647,011) (152,133)

2012 (1,007,671) 7,955,392 6,947,721

2011 15,363 (2,382,945) (2,367,582)

2010 170,143 (6,229,620) (6,059,477)

2009 (237,956) 16,572,030 16,334,074

2008 700,026 1,344,216 2,044,242

 The detailed demographic (gain)/loss for the 2016-2017 plan year by changes in status is provided below. 

Note the sum of the amounts shown in the table do not match the total shown above due to the 

(gain)/loss on administrative expenses and benefit payments. 

May 1, 2017 Status

May 1, 2016 

Status Active Deferred In Pay

Non 

Participating* Total

Active $8,336 $46,288 $(73,078) $(705) $(19,159)

Deferred (5,491) (69,270) 288 (250,746) (325,219)

In Pay 0 (34,385) 380,621 (775,403) (429,168)

Not in Data 92 0 111,317 0 111,409

Total 2,938 (57,367) 419,148 (1,026,855) (662,137)

* Due to deaths, benefit expirations, and data corrections.

--------------

Expwld's Actual Expected Acituial 

For Retmrrts For Would wld's pesr PE!I" pet[ pet[ 

PYiE HllYe Been Were Not lBli,g Valuation, Valuation, PYE llflaveBeeti, Wer-e ·va1111ation Valmficm 

:D~U- 10.QO, 4 .OJ 4n0/2D15 4!4.84 50 35.D 5D 

:JQl:i.11) g, 0, B 2 8.00 4!3Q/2D14 '13.Q1 48 35.3 48.D 

4l':DW13 10,301 10 4 0.00 4n0/2D13 4!4.43 4 1 34.5 4 1.D 

4l':DW 12 g,_rn 5 5.00 4n0/2D12 '1 1.00 20 32.5 2D.D 

4136'. 11 7.50, ,g 9.00 4n0/2D11 5 1.5't 70 4'•.D 7D.D 

Total 41.W 36 1 82..30 36 

liot..11 226.61 223 171.300 229 

0107
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 26

Sheet Metal Workers Local Pension Plan

 The demographic (gain)/loss for the 2015-2016 plan year by changes in status is provided below. Note 

the sum of the amounts shown in the table do not match the total shown above due to the (gain)/loss on 

administrative expenses and benefit payments, and the difference between our replication of the May 1, 

2015 actuarial valuation results and the prior actuarial firm’s May 1, 2015 actuarial valuation results. 

May 1, 2016 Status

May 1, 2015 

Status Active Deferred In Pay

Non 

Participating* Total

Active $9,191 $13,062 $(4,732) $(88,091) $(70,570)

Deferred (1,405) 14,930 (62,982) (3,054) (52,511)

In Pay 0 0 337,507 (842,005) (504,498)

Not in Data 0 0 27,372 0 27,372

Total 7,785 27,992 297,165 (933,150) (600,206)

* Due to deaths, benefit expirations, and data corrections.

 The details of the demographic (gain)/loss for years prior to 2015-2016 are unavailable. 

 Regarding the assumption that 100% of the active and terminated vested participants are married, we do 

not receive data on the marital status of the active or terminated vested population. This assumption 

determines the projected survivor benefits payable to assumed surviving spouses for projected preretirement deaths from active and terminated vested status. Given the limitations of the available data

and the relatively small impact of the assumption, we believe that the current assumption remains 

reasonable. 

 The distribution of benefit form elections as provided by the Plan Administrator for the last five years (plan 

years ending April 30, 2013 – April 30, 2017) is shown below. The analysis includes retirements from both 

active and terminated vested status.

Benefit Form Percentage Electing 

Single Life 42.7%

Five Year Certain and Life 4.5%

Ten Year Certain and Life 9.0%

Joint and 50% Survivor 7.9%

Joint and 50% Survivor with Pop-up 12.3%

Joint and 75% Survivor 3.4%

Joint and 75% Survivor with Pop-up 20.2%

--------------

0108
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 27

Sheet Metal Workers Local Pension Plan

 The retirement rates by age for active participants for the last two years (plan years ending April 30, 2016 

and April 30, 2017) are shown below. We did not prepare a retirement experience analysis covering years 

prior to May 1, 2015 as the prior actuarial firm completed an experience analysis that covered those 

years.

Age Exposures Number Retired Retirement Rate

55 40 4 10%

56 36 1 3%

57 28 2 7%

58 27 2 7%

59 19 2 11%

60 15 1 7%

61 16 3 19%

62 7 3 43%

63 1 0 0%

64 1 0 0%

65 & over 4 0 0%

 The retirement rates by age for terminated participants for the last five years (plan years ending April 30, 

2013 through April 30, 2017) are shown below.

Mortality Assumptions

 The Plan is not large enough to develop a credible mortality table based exclusively on Plan experience. We 

have relied on the most recent mortality tables (RP-2014) published by the Society of Actuaries in which 

credible mortality experience was analyzed. The Plan’s participants consist primarily of blue-collar 

participants; as such, the blue-collar variations of the RP-2014 tables were used.

 With respect to future mortality improvement, the MP-2018 mortality improvement scale was used to project 

future improvement in mortality from 2006 on a generational basis. 

New Entrant Profile

No assumption was made with respect to the demographic characteristics of new entrants because benefit 

accruals were suspended effective August 1, 2013. There is no impact on projected plan liabilities and benefit 

payments from new entrants to the Plan during the projection period. However, we have assumed that there will 

be replacement of current participants by new entrants based on Trustee input related to projected contribution 

base units (see below).

Age Exposures Number Retired Retirement Rate

55 85 5 6%

56 70 2 3%

57 72 2 3%

58 69 2 3%

59 58 2 3%

60 45 4 9%

61 38 8 21%

62 27 4 15%

63 16 1 6%

64 12 3 25%

65 & over 31 2 6%

--------------

0109
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 28

Sheet Metal Workers Local Pension Plan

Contribution Base Units and Employer Withdrawals

 The table below shows the 10-year history of the employers that contributed 5% or more of annual 

contributions to the Plan as provided on Schedule R (Form 5500). 

Plan Year 

Beginning 

May 1 Employer Name

Estimated 

Contribution 

Base Units*

Hourly 

Contribution 

Rate

Total 

Contributions

2017 EAST COAST METAL SYSTEMS, INC. 124,750 $4.60 $573,852

2017 THE K COMPANY, INC. 83,898 5.18 434,593

2017 R G SMITH CO., INC. 65,308 5.18 338,298

2017 METAL MASTERS, INC. 55,088 5.18 285,354

2016 EAST COAST METAL SYSTEMS, INC. 109,408 4.60 503,277

2016 THE K COMPANY, INC. 81,901 5.18 424,248

2016 R G SMITH CO., INC. 69,216 5.18 358,537

2016 METAL MASTERS, INC. 46,713 5.18 241,975

2015 THE K COMPANY, INC. 82,637 5.18 428,058

2015 EAST COAST METAL SYSTEMS, INC. 90,329 4.60 415,514

2015 R G SMITH CO., INC. 59,532 5.18 308,377

2015 METAL MASTERS, INC. 45,617 5.18 236,295

2015 SHEET METAL CRAFTERS 42,298 5.18 219,103

2015 OHIO FABRICATORS, INC. 38,941 5.18 201,712

2014 EAST COAST METAL SYSTEMS, INC. 95,260 4.60 438,198

2014 THE K COMPANY, INC. 66,050 5.18 342,139

2014 R G SMITH CO., INC. 54,007 5.18 279,758

2014 METAL MASTERS, INC. 52,584 5.18 272,386

2014 OHIO FABRICATORS, INC. 39,168 5.18 202,890

2014 SHEET METAL CRAFTERS 86,325 2.18 188,189

2013 EAST COAST METAL SYSTEMS, INC. 90,020 4.60 414,091

2013 THE K COMPANY, INC. 59,621 5.18 308,837

2013 R G SMITH CO., INC. 57,535 5.18 298,031

2013 OHIO FABRICATORS, INC. 43,266 5.18 224,120

2013 METAL MASTERS, INC. 37,050 5.18 191,921

2012 EAST COAST METAL SYSTEMS, INC. 83,266 4.60 383,024

2012 THE K COMPANY, INC. 62,053 5.18 321,435

2012 R G SMITH CO., INC. 45,724 5.18 236,851

2012 OHIO FABRICATORS, INC. 41,575 5.18 215,361

2012 SHEET METAL CRAFTERS 40,172 5.18 208,093

2012 METAL MASTERS, INC. 35,231 5.18 182,494

2011 EAST COAST METAL SYSTEMS, INC. 96,036 4.03 387,027

2011 THE K COMPANY, INC. 61,132 4.54 277,540

2011 R G SMITH CO., INC. 46,070 4.54 209,160

2011 OHIO FABRICATORS, INC. 45,656 4.54 207,279

2011 METAL MASTERS, INC. 40,331 4.54 183,101

2011 SHEET METAL CRAFTERS 36,881 4.54 167,439

2010 EAST COAST METAL SYSTEMS, INC. 60,372 4.03 243,298

2010 R G SMITH CO., INC. 50,135 4.54 227,612

2010 METAL MASTERS INC. 40,811 4.54 185,281

2010 THE K COMPANY, INC. 37,006 4.54 168,007

2009 GLOBAL INSULATION, INC. 82,434 3.75 309,129

2009 EAST COAST METAL SYSTEMS, INC. 64,256 3.33 213,972

2009 THE K COMPANY, INC. 50,141 3.75 188,029

2009 OHIO FABRICATORS, INC. 43,467 3.75 163,003

* Calculated as Total Contributions divided by Hourly Contribution Rate. 

--------------

0110
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 29

Sheet Metal Workers Local Pension Plan

The table below shows the 10-year experience for certain critical assumptions as required under regulation 

1.432(e)(9)-1(d)(5)(vi)(A) and Revenue Procedure 2017-43, Section 6.04.

Plan Year 

Beginning 

May 1

Total Employer 

Contributions

Total 

Contribution 

Base Units 

(Hours)

Annual 

Change in 

Hours

Average 

Hourly

Contribution 

Rate

Withdrawal 

Liability 

Payments

Market Value 

Return on 

Assets

2017 $3,973,912 1,180,488 4.8% $3.37 $0 7.0%

2016 3,896,375 1,126,133 3.5% 3.46 0 9.1%

2015 3,815,488 1,087,575 4.1% 3.51 0 0.1%

2014 3,696,518 1,044,941 2.9% 3.54 0 7.4%

2013 3,620,036 1,015,775 1.7% 3.56 0 10.6%

2012 3,476,411 998,372 -3.5% 3.48 0 10.3%

2011 3,262,884 1,034,107 12.1% 3.16 0 -7.9%

2010 2,517,134 922,328 -9.9% 2.73 0 14.6%

2009 2,732,416 1,023,122 -4.1% 2.67 0 25.9%

2008 2,619,413 1,066,839 N/A 2.46 0 -30.3%

Compound Annual Growth Rate, 2008 to 2017 1.1%

 Explanation for the historical trends experienced by the Plan with respect to contribution base units and 

contribution rates is documented in several sections within the application, including Section 5.01, 5.02(1)(a), 

5.02(1)(e), 5.02(3), 5.02(4) and 5.03. 

 Contribution rates have increased by over 50% since the implementation of the Rehabilitation Plan effective 

August 1, 2009. For example, the contribution rate for Building Trades Journeymen – Akron increased from 

$3.41 per hour before the Rehabilitation Plan to the current $5.18 per hour rate. The original Rehabilitation 

Plan required annual contribution increases of 10% from 2009 to 2016; however, it was later determined that 

further increases would harm the funding of Plan. The last required rate increase was a 14% increase in 

2012. 

 At their November 30, 2017 meeting and reaffirmed at the March 7, 2019 meeting, the Trustees discussed the 

assumptions for contribution base units for the coming years, ultimately determining that 950,000 for future 

years will be used. While the Trustees had observed actual hours on average 15% higher than 950,000 

during the past five years, the forecasted lesser hours is based on the Trustees’ understanding that there had 

been a short-term upswing in projects that was not predictably sustainable and that several specific projects 

would be winding down and terminating the near term. This was the basis for the projection and supports the 

lesser hours forecast.

 The contribution rate projection is based on the expectation that the reduction in contribution base units will 

disproportionately affect the non-journeymen who are at lower contribution rates to the journeymen.

 No employers have withdrawn from the Plan and been assessed a withdrawal liability during the last five 

years. In addition, there are no future withdrawal liability payments due to the Plan from previous years’ 

withdrawals.

Take-up rate with respect to selection of benefit/contribution schedule

 All bargaining parties elected the Preferred Schedule of the Rehabilitation Plan. 

Projection Methodology

 No approximation techniques were used to produce the projections.

 No changes were made to cash flow projections produced by our valuation software.

--------------

0111
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 30

Sheet Metal Workers Local Pension Plan

Part 3 – Additional Disclosures Relating to Use of Different Assumptions

The following assumptions differed between the projections produced under Section 3.01 and Sections 3.02, 

4.02(1), 4.03, 6.05 and 6.06. An explanation for the difference is included.

 Investment returns - For the purpose of the projections included in Section 3.01, we used 6.64% for plan 

years ending April 30, 2019 through April 30, 2027, and 7.40% for plan years after April 30, 2027. This 

assumption was set based on the Fund’s target asset allocations and the median returns shown in Exhibits 17 

and 18 of the 2017 edition of the Horizon Survey of Capital Market Assumptions. The investment return 

assumption used to develop the projections described in Sections 3.02, 4.02(1), 4.03, 6.05 and 6.06 were 

developed using updated target asset allocations and the expected returns (arithmetic) shown in Exhibit 15 of 

the 2018 edition of the Horizon Survey of Capital Market Assumptions.

 Administrative expenses – For the purposes of the projections included in Section 3.01, we assumed that 

administrative expenses would be $385,000 for the plan year ending April 30, 2019, $287,000 for the plan 

year ending April 30, 2020, and then increase by 2% per year thereafter. The administrative expense 

assumption was refined for the projections described in Sections 3.02, 4.02(1), 4.03, 6.05 and 6.06 to reflect 

the increase in expenses related to the re-submission of the application for the proposed benefit suspension. 

We have maintained the 2% per year inflationary adjustment beginning with the 2021-2022 plan year. 

 Mortality improvement scale – For purposes of the projections included in Section 3.01, we used the MP-2016 

mortality improvement scale. For purposes of the projections described in Sections 3.02, 4.02(1), 4.03, 6.05 

and 6.06 we used the MP-2018 mortality improvement scale. 

 Retirement rates from terminated vested status – For purposes of the projections included in Section 3.01, we 

assumed that terminated vested participants would commence benefits at age 60 or 62, depending on their 

date of termination. For purposes of the projections described in Sections 3.02, 4.02(1), 4.03, 6.05 and 6.06 

we developed retirement rates by age based on actual experience over the past five years as shown in Part 2 

of this exhibit.

 Form of payment – For purposes of the projections included in Section 3.01, we assumed that participants 

would elect the single life annuity form of payment. For purposes of the projections described in Sections 

3.02, 4.02(1) 4.03, 6.05 and 6.06, we added optional forms of payment based on actual experience over the 

past five years as shown in Part 2 of this exhibit. 

 Exclusion of terminated vested participants – For purposes of the projections included in Section 3.01, we 

assumed that terminated vested participants over age 70 at the valuation date are deceased with no benefit 

payable. For purposes of the projections described in Sections 3.02, 4.02(1), 4.03, 6.05 and 6.06, we included 

all terminated vested participants.

 Load for pop-up – For purposes of the projections included in Section 3.01, we assumed a 1.4% load on 

liabilities for retirees who elected the pop-up option on their joint and survivor benefit. For purposes of the 

projections described in described in Sections 3.02, 4.02(1), 4.03, 6.05 and 6.06, we valued the actual 

individual pop-up amount as provided by the Plan Administrator.

 Contribution rate – For purposes of the projections included in Section 3.01, we assumed an average 

contribution rate of $3.50 per hour each year into the future. For purposes of the projections described in 

Sections 3.02, 4.02(1), 4.03, 6.05 and 6.06, we used a select and ultimate contribution rate to reflect the 

temporary increase in non-journeyman who are at lower contribution rates.

--------------

0112
Milliman

 

 Report of Required Actuarial Information – Application for Proposed Benefit Suspensions

 

Report of Required Actuarial Information – Application for Proposed Benefit Suspensions 31

Sheet Metal Workers Local Pension Plan

L. Proposed Benefit Suspensions

The application filed on behalf of the Sheet Metal Workers Local Pension Plan sets forth the following proposed 

benefit suspension to be effective May 1, 2020. The suspension is expected to continue indefinitely.

The application proposes that there shall be a reduction in monthly benefits such that the revised monthly amount 

is based upon a specific percentage reduction of a participant’s accrued benefit depending upon into which 

“group” of participants an individual is categorized; therefore the proposed suspension treats participants 

differently. The proposed reductions are subject to the individual limitations described in §432(e)(9)(D)(i), (ii), and 

(iii) and aggregate limitations described in §432(e)(9)(D)(iv).

The groups defined for purposes of this application and the proposed percentage reduction in their benefits are:

Active Participants are Plan Participants who worked at least 435 hours during the plan year ended April 30, 2017 

or April 30, 2018 and who have not retired as of April 30, 2018. Non-Active Participants include Terminated 

Vested Participants, Retired Participants, Disabled Participants, Beneficiaries of Participants, and Alternate 

Payees.

Non-Active Participants

Retirement Date Proposed Suspension 

Reduction

Group 1 Before August 1, 2009 

and all terminated vested participants 35%

Group 2 On or after August 1, 2009 30%

Active Participants

Hire Date Proposed Suspension 

Reduction

Group 3 Before May 1, 2006 25%

Group 4 On or after May 1, 2006 No reduction

--------------

0113
•@nm11FI,• Report of Required Actuarial Information Application for Proposed Benefit Suspensions 

The table below shows the 10-year experience for certain critical assumptions as required under regulation 

1.432(e)(9)-1 (d)(5)(vi)(A) and Revenue Procedure 2017-43, Section 6.04. 

Total Average 

Plan Year Contribution Annual Hourly Withdrawal Market Value 

Beginning Total Employer Base Units Change in Contribution Liability Return on 

May 1 Contributions (Hours) Hours Rate Payments Assets 

2017 $3,973,912 1,180,488 4.8% $3.37 $0 7.0% 

2016 3,896,375 1,126,133 3.5% 3.46 0 9.1% 

2015 3,815,488 1,087,575 4.1% 3.51 0 0.1% 

2014 3,696,518 1,044,941 2.9% 3.54 0 7.4% 

2013 3,620,036 1,015,775 1.7% 3.56 0 10.6% 

2012 3,476,411 998,372 -3.5% 3.48 0 10.3% 

2011 3,262,884 1,034,107 12.1% 3.16 0 -7.9% 

2010 2,517,134 922,328 -9.9% 2.73 0 14.6% 

2009 2,732,416 1,023,122 -4.1% 2.67 0 25.9% 

2008 2,619,413 1,066,839 N/A 2.46 0 -30.3% 

Compound Annual Growth Rate, 2008 to 2017 1.1% 

• Explanation for the historical trends experienced by the Plan with respect to contribution base units and 

contribution rates is documented in several sections within the application, including Section 5.01, 5.02(1)(a), 

5.02(1)(e), 5.02(3), 5.02(4) and 5.03. 

• Contribution rates have increased by over 50% since the implementation of the Rehabilitation Plan effective 

August 1, 2009. For example, the contribution rate for Building Trades Journeymen -Akron increased from 

$3.41 per hour before the Rehabilitation Plan to the current $5.18 per hour rate. The original Rehabilitation 

Plan required annual contribution increases of 10% from 2009 to 2016; however, it was later determined that 

further increases would harm the funding of Plan. The last required rate increase was a 14% increase in 

2012. 

• At their November 30, 2017 meeting and reaffirmed at the March 7, 2019 meeting, the Trustees discussed the 

assumptions for contribution base units for the coming years, ultimately determining that 950,000 for future 

years will be used. While the Trustees had observed actual hours on average 15% higher than 950,000 

during the past five years, the forecasted lesser hours is based on the Trustees' understanding that there had 

been a short-term upswing in projects that was not predictably sustainable and that several specific projects 

would be winding down and terminating the near term. This was the basis for the projection and supports the 

lesser hours forecast. 

• The contribution rate projection is based on the expectation that the reduction in contribution base units will 

disproportionately affect the non-journeymen who are at lower contribution rates to the journeymen. 

• No employers have withdrawn from the Plan and been assessed a withdrawal liability during the last five 

years. In addition, there are no future withdrawal liability payments due to the Plan from previous years' 

withdrawals. 

Take-up rate with respect to selection of benefit/contribution schedule 

• All bargaining parties elected the Preferred Schedule of the Rehabilitation Plan. 

Projection Methodology 

• No approximation techniques were used to produce the projections. 

• No changes were made to cash flow projections produced by our valuation software. 

Report of Required Actuarial Information - Application for Proposed Benefit Suspensions 

Sheet Metal Workers Local Pension Plan 

29 

0114
3/27/2019 Sheet Metal Workers 

Subscribe to E-mail Updates Ell 

1~0!10•,·1 u,- J ! Wh,1 '.; M·!'.'J J ' _.1 ~;. · C.\I •111!;1r Oloq 

Search BLS.gov 

Home I Subjects I Data Tools I P•.,bli~ut,ons I r-.:t:011om;c ;..,•e~s ;s I S1ude11b I Bera 

Occupational Employment Statistics OES ~ SHARE ON: IJ m! PRINT: ~ 

·BROWSEOES 

OES HOME 

OES OVERVIEW 

OES NEWS RELEASES 

OES DATA 

OES CHARTS 

OES MAPS 

OES PUBLICATIONS 

OES DATABASES 

OES FAQS 

CONTACTOES 

SEARCHOES 

! _. __ _ __ --·--···--·-•] G@ 

OESTOPICS 

RESPONDENTS 

DOCUMENTATION 

SPECIAL NOTICES 

RELATED LINKS 

Subscribe 

to the OES 

Update 

Ema ii Address 

~ 

BLS SPEAKERS 

AVAILABLE! 

Occupat ional Employment and Wages, May 2017 

47-2211 Sheet Metal Workers 

Fabricate, assemble, install, and repair sheet metal products and equipment, such as ducts, control boxes, drainpipes, and furnace 

casings. Worl< may invo_lve any of the following: setting up and operating fabricating machines to cut, bend, and straighten sheet metal; 

shaping metal over anvils, blocks, or forms using hammer; operating soldering and welding equipment to join sheet metal parts; or 

inspecting, assembling, and smoothing seams and joints of burred surfaces. Includes sheet metal duct installers who install 

prefabricated sheet metal ducts used for heating, air conditioning, er other puI·poses. 

National estimates for this occuP.ation 

llli!J.!sm'_profHe for this occuRfiliQn 

~graP.hic 12rofile for this occu12ation 

National estimates for this occupation: Tog_ 

Employment estimate and mean wage estimates for this occupation: 

Employment 0,). Employment Mean hourly Mean annual Wage RSE CU. RSE .GU. wage wage (2). 

132,920 2.1 % $25.05 $52,100 1.0% 

Percentile wage estimates for this occupation: 

Percentile 10% 25% 50% 75% 90% (Median) 

Hourly Wage $13.14 $16.86 $23.07 $30.78 $41.88 

Annual Wage @ . $27,330 $35,060 $47,990 $64,030 $87,120 

Industry profile for this occupation: Tog_ 

Industries with the highest published employment and wages for this occupation are provided. For a list of all industries with 

employment in this occupation, see the Create Customized Tables function. 

Industries with the highest levels of employment in this occupation: 

I 

Employment Percent of Hourly mean Annual mean Industry industry OJ. employment wage wage (2). 

Building_fgui12mgnt ~ontragors I 64,880 3.15 $26.99 $56,140 .. 

Fabricate!.! Metal Prod!,lct Manufacturing_(3323 and I 

.Jlli..onl.Y.). 19,650 4.28 $21.13 $43,950 

Fo!dn!.!ation, Structure, an!.! Building E~ : 

15,440 1.76 $23.49 $48,860 Contractors i 

Fgderal Executivg Branch (~gnation). i 6,650 0.33 I $26.92 I $55,990 I 

Nonresidential Building Cong!].lction I 3,590 I 0.46 I $25.11 $52,240 

Industries with the highest concentration of employment in this occupation: 

I Employment Percent of Hourly mean I Annual mean Industry industry 

I (l}. employment wage I wage (2}. 

----

Fabricated Metal Product Man!,lfacturing_(3323 and 19,650 4.28 $21.13 $43,950 3324 onlv.). 

B!,!ilding_fgui12rnent Contractors 64,880 3.15 $26.99 $56,140 

Foundation, Structure, and Building Exterior I 15,440 1.76 $23.49 $48,860 eo•tracto~ ! 

~P. an!.! !k111t fl!dilding 1,740 1.30 $25.68 $53,410 

Rsiil Trnn~P.QLtfilion I 1,550 I 0.66 $30.05 $62,510 I I 

Top paying industries for this occupation: 

https://www.bls.gov/oes/2017 /may/oes4 72211.htm 1/9 

0115
3/27/2019 Sheet Metal Workers 

Industry Employment Percent of Hourly mean I Annual mean 

OJ industry wage wage {2). 

employment 

Local Government,~g schools and hosptta.J.s. 330 0.01 $38.69 $80,480 (OES Designation). 

General Medical 2nd Surgical Hos~ 70 (Z) $35.94 $74,750 

S!;;ientific R§earch and Develo11ment Sgrvices I 50 0.01 $34.43 I $71,620 

Management of Com11anies and Enterprises I 130 0.01 I $34.30 $71,330 

State Government, excluding schools and hOSP.itals 110 0.01 I $33.56 $69,810 (OES Designation). 

Geographic profile for this occupation: TOPStates and areas with the highest published employment, location quotients, and wages for this occupation are provided. For a list of all 

areas with employment in this occupation, see the Create Customized Tables function. 

Employment of sheet metal workers , by state, May 2017 

MT ND 

Employment 

D130-550 0 610 · 1,620 

• 1,680 · 3,390 • 3,620 · 11.680 

Blank areas indicate data not availabl e. 

States with the highest employment level in this occupation: 

! I Employment Employment I Location Hourly mean Annual mean State i I per thousand 0,). ! jobs quotient en wage wage _{l l 

- -----··----- I I ... -- ------··-·--· 7 I 

Q!lifornii;! 11,680 ! 0.70 0.75 $27.64 $57,480 

Texgs i 11,010 ! 0.93 0.99 ! $19.59 $40,740 i 

New Yods I 8,080 I 0.88 0.94 I $32.08 $66,730 ·- - . .. I 

Florida ! 7,910 i 0.94 1.01 i $18.76 $39,010 --·--·- Ohio I I 4,590 ' 0.85 0.92 $24.32 $50,580 I 

https://www.bls.gov/oes/2017/may/oes472211.htm 2/9 

0116
3/27/2019 Sheet Metal Workers 

Location quotient of sheet metal work.ers. by state, May 2017 

..... HI•• 

• 

Blank areas Indicate data not available. 

States with the highest concentration of jobs and location quotients in this occupation: 

Employment Employment Location State (!). per thousand quotient (21 jobs 

Oklahoma 3,210 2.04 2.19 

Alaska 470 1.47 1.57 

Wisconsin 4,110 1.46 1.56 - · ~ 3,880 1.39 1.49 

QmgQ!l 2,530 1.38 1.48 

https://www.bls.gov/oes/2017 /may/oes4 72211.htm 

Hourly mean 

wage 

$23.91 

$36.97 . 

$26.05 

$30.48 

$24.13 

Location quotient 

D 0.16-0.40 

Q.40 • 0.80 

0.80- 1.25 • 1.25 • 2.50 • 2.so-3.so 

Annual mean 

wage .en 

$49,730 

$76,900 

$54,170 

$63,400 

$50,190 

'.'1/Q 

0117
3/27/2019 Sheet Metal Workers 

Annual mean wage of sheet metal workers, by state. May 2017 

• ... HI •'.llo 

~ 

TX 

\,, . .,_,,/·--,., 

\'I 

\ ...... ✓ 

Annual me.an wage 

• $25.2/J(l- $42,5:;)(l • 14'.:tC!lCT - $48. 150 

Iii $48:·18Q - $54,170 • $54. 18(l- 'r.76.93Q 

Blanl< areas indicate. data t1ot avail able. 

Top paying States for this occupation: 

Employment Employment Location Hourly mean I Annual mean State per thousand ,(!). jobs quotient .CU wage wage .Cil - -- -- L Hawaii 750 1.18 1,27 $37.01 $76,980 -·-··-----· - ----·····- · -· --------···- ---- Alaska 470 1.47 1.57 $36.97 $76,900 .. 

Illinois 4,450 0.75 0.81 $34.46 $71,680 . -- - t:1as~a,b1.12:tts 4,380 1.24 1.33 $32.83 $68,290 

t:j~w York 8,080 0.88 0.94 $32.08 $66,730 

https://www.bls.gov/oes/2017/may/oes472211.htm 4/9 

0118
3/27/2019 Sheet Metal Workers 

Employment of sheet metal workers , by area, May 2017 

Employment 

0 30-70 

• 160 • 360 

80 -150 

• 390 - 7.050 

Blank areas Indicate data not available. 

< 

Metropolitan areas with the highest employment level in this occupation: 

Employment Employment Location Hourly mean Annual mean Metropolitan area cu per thousand quotient HH wage wage (2). jobs 

New York-Jersey Qtv.-White 5,290 0.79 0.85 $34.87 $72,530 E@im, NY-NJ !'::'letrQP.Qli!i!n DivjsiQn 

t101Jsto•-Ibe WQQdlaads-Sugfil 3,140 1.07 1.15 $22.44 $46,670 J.gng,.JX 

Dallas-Plano-Irving, TX 2,950 1.18 1.27 $16.15 $33,590 MetroRQ!itan Division 

~g~r:1erville-ArlingtQD. 2,800 0.76 0.82 $36.46 $75,830 Heights, IL MetroRQlitan Division ---- P!lQe•il!-!'::'le~-Sgittsdale,M 2,690 1.36 1.46 $21.19 $44,070 

BQstQn-Cambndge-NewtQn, M8 2,640 1.44 1.54 $35.83 $74,520 NECTA Division - Oklghoma Cir;,, OK 2,390 3.96 4.25 $25.05 $52,110 -- - - - -·-- Seatt!e::Bellevue-Everett, WA 2,290 1.39 1.49 $31.58 $65,690 .MfilcQRQliti;!n Division - Denver·Al,!rora-l,s!kewood,J;Q 2,170 1.51 1.62 $23.00 $47,850 

$21.47- -T --- Atlanta-SandY. Sr:1rings-RoswelL GA 1,970 0.75 0.81 $44,650 

https://www.bls.gov/oes/2017/may/oes4 72211.htm 

.. ,-, 

t:;/Q 

0119
3/27/2019 Sheet Metal Workers 

Location quotient of sheet metal workers, by area, May 2017 

< 

Location quotient 

0 0.19- 0.40 

0.80 - 1.25 

• 2.50- 17. 10 

Blank. ar,aa::; Ind icate data not available. 

D 0.40 - 0.80 

• 1.25 - 2.50 

Metropolitan areas with the highest concentration of jobs and location quotients in this occupation: 

Employment Employment Location Hourly mean Metropolitan area 0,). per thousand quotient ml wage jobs 

Warner Bobins, GA 1,110 15.95 17.10 $26.57 -- ·-·•-

New Bern,..,W;; 240 5.35 5.74 $27.43 

.t!fil...SRJ:in9l!, AR I 190 5.33 5.72 $17.15 

!;!ri::mi::d;Q•-Silv~rdi!l~,Y1.!!i I 360 4.12 I 4.42 $29.33 I -----···------··--·· - QlsJi!bQma , itv.,..QK 2,390 3.96 4.25 $25.05 

Annual mean 

wage .CU 

$55,270 ----- $57,060 

$35,670 

$61,000 

$52,110 ---·- -------··- ··--·-·---------f----------- ---- -- Qgden-Clear:fiel!l,.JJI 930 3.71 3.98 $24.50 $50,960 -----· -··-··-- · -----· ·- Faictianks, AK 110 2.98 3.20 $35.13 $73,060 

Gul[P.ort-Biloxi-Pal!cagQYt!~Ms-[ - ·• 

440 2.93 3.14 (!l) m. Harrisonburg, VA I 180 ,--- --·· 2.8s 3.06 $20.66 $42,970 --· -·--·1···-- 130 - - -,·-·- -----··· Fond du Lac, WI 2.83 3.03 $26.77 $55,670 

https://www.bls.gov/oes/2017/may/oes4 72211.htm 6/9 

0120
3/27/2019 Sheet Metal Workers 

Annual mean wage of sheet metal workers . by area, May 201 7 

Annual mean wage 

D $22. 130 - $39,2-40 Iii $39,280 - $46,300 

Iii $-46,350 - $55.700 • $55,810- $8-4,920 

Blank areas indicate data not available. 

< 

Top paying metropolitan areas for this occupation: 

Employment Employment Location Hourly mean Annual mean Metropolitan area U.l per thousand quotient (lU wage wage (21 jobs 

S2n~a Cr!,!;!;-Wa~Qnville, CA 40 0.37 0.40 $38.08 $79,200 

ChamP.gjgn-Urban2,J!. 110 1.11 1.19 $38.00 $79,030 

Anchor2ge,...8K 310 1.80 1.93 $37.62 $78,250 

!.!tb2• !::lQDQIUl!.!,..l:!I 650 1.41 1.51 $37.13 $77,230 

~gQ±!.ape[Yille-Atli•gmu I 

2,800 0.76 I 0.82 $36.46 $75,830 Heig~, IL MetroRQlit2n Division I I -·----·- ·- -· ·-- --

Lake ~unty-Kenosh2 County, IL- 110 0.28 0.30 $36.12 $75,120 Wl...MfilrQRQlita• DivisiQ• -----·-· -·- ·- ··-

Bosro•-Cs!mbridg~,...MA 2,640 1.44 1.54 $35.83 $74,520 ~ECTA Division 

camden, NJ MetroP.olitan Division 480 0.90 0.97 $35.63 $74,110 

.E@mi.ng!:@aJ, t18 ~ECI:8 QivisiQ• 180 1.04 1.11 $35.46 $73,750 - Cs!P..ll ~itacdea!J,..MQ:ll. rn>. .nn I HD $35.22 $73,270 

Mon metropolitan areas with the highest employment in this occupation : 

Employment I 

Employment ! Location Hourly mean Annual mean Nonmetropolitan area U.l per thousand I quotient .(2) wage wage (il jobs ~-- ---- ce•t@I Misso!,Jrj •o•metroP.Q]j!gn 390 2.47 I 2.65 $25.65 $53,350 ~ I 

! -·· 

North Northeastern Ohio •onllliill9PQlitan acea (JlQ.•: 340 1.02 i 1.09 $19.27 $40,090 

CQ!!!iguous). ! - No[!hern Indlan2 nQnmetroRQlitan 340 1.56 1.67 $26.21 $54,510 

g[eg 

Northeag MississiP.P.i 290 1.25 1.34 $16.56 $34,450 nonmetroRQll!;i!n areil --- Southwest Maine no•metroRQlitan i 280 1.48 1.59 $25.50 I $53,050 ~ I 

https://www.bls.gov/oes/2017/may/oes472211 .htm -,,n 

0121
3/27/2019 Sheet Metal Workers 

Nonmetropolitan areas with the highest concentration of jobs and location quotients in this occupation: 

I Employment 

I 

Employment 

I 

Location Hourly mean Annual mean Nonmetropolitan area per thousand 

I U.) jobs quotient .on wage wage .Ci>. 

Central Missouri nonm!;ltro1:1olitan I 

390 ' 2.47 2.65 $25.65 $53,350 ~ I I 

Fi!r !;ast NQd;h DakQM! 40 1.76 1.89 $20.50 I $42,650 nonm!:troP-Qlitan are2 I 

Northern Indiana nonmetro1:1olitan 340 1.56 1.67 $26.21 i $54,510 i!.@i!. ! - - Southweg t12ine nonmetroP-Qlitan 280 1.48 1.59 $25.50 i $53,050 area I 

I 

Lower Si!vannah South carolina 80 I 1.42 1.53 $19.51 I $40,580 nonmetroP-Qli!;i!n ares! 

Top paying nonmetropolitan areas for this occupation: 

Employment Employment 

I 

Location Hourly mean Annual mean Nonmetropolitan area OJ per thousand quotient .on wage wage a>. jobs 

SQi.ithw~t WashingtQn 30 0.50 0.54 $40.83 $84,920 nonmetroP-Qlitan area i ----·--·----- ··---

SQutheast Al2sk2 •Qnmeti:Qp21rnln I 

30 0.86 0.92 $39.13 I $81,390 fil§ ------- Hii!Wi!ii l Kauai nonmetrQpQUtan 60 0.62 0.67 $38.24 i $79,550 ~ I -· I NQrthwest IllinQis nQnmetroPQ!i!gn 180 1.32 1.42 $31.23 i $64,960 fil_eg I 

W~t ~entral Illinois ! 

(fl). m. (fl). $29.21 i $60,770 •Q•metroP-Qlitiln i!tei! i 

About May 2017 NatiQnal, State, MetroRolitan, and NQnmetrOROlitan Area Occupational EmRloyment and Wage Estimates 

These estimates are calculated with data collected from employers in all industry sectors, all metropolitan and nonmetropolitan areas, 

and all states and the District of Columbia. The top employment and wage figures are provided above. The complete list is available in 

the downloadable XLS files. 

The percentile wage estimate is the value of a wage below which a certain percent of workers fall. The median wage is the 50th 

percentile wage estimate--50 percent of workers earn less than the median and 50 percent of workers earn more than the median_ More 

about P.ercentile wages. 

(1) Estimates for detailed occupations do not sum to the totals because the totals include occupations not shown separately. Estimates 

do not include self-employed workers. 

(2) Annual wages have been calculated by multiplying the hourly mean wage by a "year-round, full-time" hours figure of 2,080 hours; 

for those occupations where there is not an hourly wage published, the annual wage has been directly calculated from the reported 

survey data. 

(3) The relative standard error (RSE) is a measure of the reliability of a survey statistic. The smaller the relative standard error, the 

more precise the estimate. 

(7) The value is less than .005 percent of industry employment. 

(8) Estimate not released. 

(9) The location quotient is the ratio of the area concentration of occupational employment to the national average concentration. A 

location quotient greater than one indicates the occupation has a higher share of employment than average, and a location quotient less 

than one indicates the occupation is less prevalent in the area than average. 

Other OES estimates and related information: 

May 2017 National OccuRational EmRloyment and Wage Estimates 

Mav. 2017 State OccuRational EmRloyment and Wage Estimates 

Mav. 2017 MetroRolitan and NonmetroRolitan Area OccuRational Employment and Wage Estimates 

Mav. 2017 National Indust[Y2Recific OccuRational EmRloyment and Wage Estimates 

May 2017 Occupation Profiles 

Technical Notes 

https://www.bls.gov/oes/2017/may/oes4 72211.htm 8/9 

0122
3/27/2019 Sheet Metal Workers 

!.ast Modified Date: March 30, 2018 

RECOMMEND TH[S PAGE USiNG: I] Facebook Twitter ffli Linkedln 

TOOLS CALCULATORS HELP INFO RESOURCES 

Areas at a Glgnce Inflation Help & Tutorials What's Mew l:1spector General (OIG) 

Industries at a Glance Injury And Illness FAQs Careers @ BLS Budget and Performance 

Economic Relaases Glossary Find It! DOL Mo Fear Act 

Databases g, Tables About BLS Join our Mailing Lists USA.gov 

Maps Contact Us Linking & Copyright Info Benefits.gov 

!HIREVets.gov 

HIRE Vets Medallion Program 

Fn::c!dum of l nro rrHt1tio11 '\ct , Privac:; q" Sl'Curity St",J:tcnumt Disd,1 iiners Cu~;tomer Surv~!v Important Web Sin: Not it.;.:s 

U.S. Bureau of Labor Statistics I Division of Occupational Employment Statistics, PSB Suite 2135, 2 Massachusetts Avenue, NE Washington, DC 20212-0001 

www.bls.gov/OES I Telephone: 1-202-691-6569 I Contact OES 

https://www.bls.gov/oes/2017/may/oes472211.htm 

0123
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 9/7/1949

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 70 years 8 months

(3) Monthly benefit $51.90

(4) Years of service through accrual freeze date (July 31, 2013) 5.00

(5) Date of retirement 11/1/2008

(6) Form of payment Pop-Up

(7) Joint and survivor percentage 50.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $51.90 $25.95 $58.52

(9) Implied accrual rate = [(8) ÷ (4)] $10.38 $5.19 $11.70

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $10.38 $5.19 $11.53

(11) PBGC guaranteed benefit = [(4) x (10)] $51.90 $25.95 $57.64

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $57.09 $28.55 $63.40

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $51.90 $25.95 $58.52

(14) Amount of monthly benefit based on disability $0.00 $0.00 $0.00

(15) Initial proposed reduction percentage 35.00% 35.00% 35.00%

(16) Initial proposed reduction amount = [(13) x (15)] $18.17 $9.08 $20.48

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $0.00 $0.00 $0.00

(18) Is 110% of PBGC guarantee restriction applicable? Yes Yes Yes

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $0.00 $0.00 $0.00

(20) Months from age 80 (as of May 31, 2020), not greater than 60 60 60 60

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 100.00% 100.00% 100.00%

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $0.00 $0.00 $0.00

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $51.90 $25.95 $58.52

Example 1A - Group 1 individual currently receiving benefits below 110% PBGC Guarantee (including contingent beneficiary)

0124
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 2/15/1953

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 67 years 3 months

(3) Monthly benefit $1,379.01

(4) Years of service through accrual freeze date (July 31, 2013) 28.00

(5) Date of retirement 3/1/2008

(6) Form of payment Pop-Up

(7) Joint and survivor percentage 50.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $1,379.01 $689.51 $1,498.45

(9) Implied accrual rate = [(8) ÷ (4)] $49.25 $24.63 $53.52

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $35.75 $21.22 $35.75

(11) PBGC guaranteed benefit = [(4) x (10)] $1,001.00 $594.13 $1,001.00

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $1,101.10 $653.54 $1,101.10

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $1,379.01 $689.51 $1,498.45

(14) Amount of monthly benefit based on disability $0.00 $0.00 $0.00

(15) Initial proposed reduction percentage 35.00% 35.00% 35.00%

(16) Initial proposed reduction amount = [(13) x (15)] $482.65 $241.33 $524.46

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $277.91 $35.96 $397.35

(18) Is 110% of PBGC guarantee restriction applicable? Yes Yes Yes

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $277.91 $35.96 $397.35

(20) Months from age 80 (as of May 31, 2020), not greater than 60 60 60 60

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 100.00% 100.00% 100.00%

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $277.91 $35.96 $397.35

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $1,101.10 $653.54 $1,101.10

Example 1B - Group 1 individual currently receiving benefits reduced to 110% PBGC Guarantee (including contingent beneficiary)

0125
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 3/8/1944

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 76 years 2 months

(3) Monthly benefit $238.03

(4) Years of service through accrual freeze date (July 31, 2013) 13.00

(5) Date of retirement 4/1/2006

(6) Form of payment Pop-Up

(7) Joint and survivor percentage 50.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $238.03 $119.02 $261.57

(9) Implied accrual rate = [(8) ÷ (4)] $18.31 $9.16 $20.12

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $16.48 $9.16 $17.84

(11) PBGC guaranteed benefit = [(4) x (10)] $214.27 $119.02 $231.93

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $235.70 $130.92 $255.12

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $238.03 $119.02 $261.57

(14) Amount of monthly benefit based on disability $0.00 $0.00 $0.00

(15) Initial proposed reduction percentage 35.00% 35.00% 35.00%

(16) Initial proposed reduction amount = [(13) x (15)] $83.31 $41.66 $91.55

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $2.33 $0.00 $6.45

(18) Is 110% of PBGC guarantee restriction applicable? Yes Yes Yes

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $2.33 $0.00 $6.45

(20) Months from age 80 (as of May 31, 2020), not greater than 60 46 46 46

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 76.67% 76.67% 76.67%

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $1.79 $0.00 $4.94

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $236.24 $119.02 $256.63

Example 1C - Group 1 individual currently receiving benefits between age 75 and 80 (including contingent beneficiary)

0126
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 5/23/1945

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 75 years 0 months

(3) Monthly benefit $312.60

(4) Years of service through accrual freeze date (July 31, 2013) 14.00

(5) Date of retirement 6/1/2007

(6) Form of payment Pop-Up

(7) Joint and survivor percentage 50.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $312.60 $156.30 $348.50

(9) Implied accrual rate = [(8) ÷ (4)] $22.33 $11.16 $24.89

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $19.50 $11.12 $21.42

(11) PBGC guaranteed benefit = [(4) x (10)] $272.95 $155.73 $299.88

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $300.25 $171.30 $329.86

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $0.00 $156.30 $0.00

(14) Amount of monthly benefit based on disability $312.60 $0.00 $348.50

(15) Initial proposed reduction percentage 35.00% 35.00% 35.00%

(16) Initial proposed reduction amount = [(13) x (15)] $0.00 $54.71 $0.00

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $12.36 $0.00 $18.64

(18) Is 110% of PBGC guarantee restriction applicable? No Yes No

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $0.00 $0.00 $0.00

(20) Months from age 80 (as of May 31, 2020), not greater than 60 60 60 60

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 100.00% 100.00% 100.00%

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $0.00 $0.00 $0.00

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $312.60 $156.30 $348.50

Example 1D - Group 1 individual currently receiving benefits based on disability (pre-5/1/1995 disability award) (including contingent beneficiary)

0127
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 1/17/1963

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 57 years 4 months

(3) Accrued monthly benefit payable at Normal Retirement Date (NRD) $155.35

(4) Years of service through accrual freeze date (July 31, 2013) 9.00

(5) Actuarial increase factor for delayed retirement 1.0000

(6) Adjusted monthly benefit payable as single life annuity on proposed suspension date (May 1, 2020) = [(3) x (5)] $155.35

Calculation of PBGC Guarantee Participant

(7) Implied accrual rate = [(3) ÷ (4)] $17.26

(8) PBGC guaranteed accrual rate = [100% of first $11 of (7) + 75% of (7) between $11 and $44] $15.70

(9) PBGC guaranteed benefit = [(4) x (8)] $141.26

(10) 110% of PBGC guaranteed benefit = [(9) x 110%] $155.39

Calculation of Proposed Suspension Participant

(11) Amount of monthly benefit not based on disability $155.35

(12) Amount of monthly benefit based on disability $0.00

(13) Initial proposed reduction percentage 35.00%

(14) Initial proposed reduction amount = [(11) x (13)] $54.37

(15) Maximum reduction due to 110% PBGC guarantee restriction = [(11) + (12) - (10), not less than $0] $0.00

(16) Is 110% of PBGC guarantee restriction applicable? Yes

(17) Reduction in benefit before age-based limitations = [lesser of (14) and (15)] $0.00

(18) Months from age 80 (as of May 31, 2020), not greater than 60 60

(19) Applicable percentage for age-based limitation = [(18) ÷ 60] 100.00%

(20) Final proposed reduction in benefit under suspension = [(17) x (19)] $0.00

(21) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(11) + (12) - (20)] $155.35

Example 1E - Group 1 future retiree below 110% PBGC Guarantee

0128
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 3/9/1971

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 49 years 2 months

(3) Accrued monthly benefit payable at Normal Retirement Date (NRD) $701.01

(4) Years of service through accrual freeze date (July 31, 2013) 15.00

(5) Actuarial increase factor for delayed retirement 1.0000

(6) Adjusted monthly benefit payable as single life annuity on proposed suspension date (May 1, 2020) = [(3) x (5)] $701.01

Calculation of PBGC Guarantee Participant

(7) Implied accrual rate = [(3) ÷ (4)] $46.73

(8) PBGC guaranteed accrual rate = [100% of first $11 of (7) + 75% of (7) between $11 and $44] $35.75

(9) PBGC guaranteed benefit = [(4) x (8)] $536.25

(10) 110% of PBGC guaranteed benefit = [(9) x 110%] $589.88

Calculation of Proposed Suspension Participant

(11) Amount of monthly benefit not based on disability $701.01

(12) Amount of monthly benefit based on disability $0.00

(13) Initial proposed reduction percentage 35.00%

(14) Initial proposed reduction amount = [(11) x (13)] $245.35

(15) Maximum reduction due to 110% PBGC guarantee restriction = [(11) + (12) - (10), not less than $0] $111.14

(16) Is 110% of PBGC guarantee restriction applicable? Yes

(17) Reduction in benefit before age-based limitations = [lesser of (14) and (15)] $111.14

(18) Months from age 80 (as of May 31, 2020), not greater than 60 60

(19) Applicable percentage for age-based limitation = [(18) ÷ 60] 100.00%

(20) Final proposed reduction in benefit under suspension = [(17) x (19)] $111.14

(21) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(11) + (12) - (20)] $589.88

Example 1F - Group 1 future retiree reduced to 110% PBGC Guarantee

0129
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 5/23/1942

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 78 years 0 months

(3) Accrued monthly benefit payable at Normal Retirement Date (NRD) $309.45

(4) Years of service through accrual freeze date (July 31, 2013) 17.00

(5) Actuarial increase factor for delayed retirement 2.2650

(6) Adjusted monthly benefit payable as single life annuity on proposed suspension date (May 1, 2020) = [(3) x (5)] $700.90

Calculation of PBGC Guarantee Participant

(7) Implied accrual rate = [(3) ÷ (4)] $18.20

(8) PBGC guaranteed accrual rate = [100% of first $11 of (7) + 75% of (7) between $11 and $44] $16.40

(9) PBGC guaranteed benefit = [(4) x (8)] $278.84

(10) 110% of PBGC guaranteed benefit = [(9) x 110%] $306.72

Calculation of Proposed Suspension Participant

(11) Amount of monthly benefit not based on disability $700.90

(12) Amount of monthly benefit based on disability $0.00

(13) Initial proposed reduction percentage 35.00%

(14) Initial proposed reduction amount = [(11) x (13)] $245.32

(15) Maximum reduction due to 110% PBGC guarantee restriction = [(11) + (12) - (10), not less than $0] $394.18

(16) Is 110% of PBGC guarantee restriction applicable? No

(17) Reduction in benefit before age-based limitations = [lesser of (14) and (15)] $245.32

(18) Months from age 80 (as of May 31, 2020), not greater than 60 24

(19) Applicable percentage for age-based limitation = [(18) ÷ 60] 40.00%

(20) Final proposed reduction in benefit under suspension = [(17) x (19)] $98.13

(21) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(11) + (12) - (20)] $602.77

Example 1G - Group 1 future retiree between age 75 and 80 

0130
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 12/31/1959

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 60 years 5 months

(3) Accrued monthly benefit payable at Normal Retirement Date (NRD) $2,463.98

(4) Years of service through accrual freeze date (July 31, 2013) 29.00

(5) Actuarial increase factor for delayed retirement 1.0000

(6) Adjusted monthly benefit payable as single life annuity on proposed suspension date (May 1, 2020) = [(3) x (5)] $2,463.98

Calculation of PBGC Guarantee Participant

(7) Implied accrual rate = [(3) ÷ (4)] $84.96

(8) PBGC guaranteed accrual rate = [100% of first $11 of (7) + 75% of (7) between $11 and $44] $35.75

(9) PBGC guaranteed benefit = [(4) x (8)] $1,036.75

(10) 110% of PBGC guaranteed benefit = [(9) x 110%] $1,140.43

Calculation of Proposed Suspension Participant

(11) Amount of monthly benefit not based on disability $492.80

(12) Amount of monthly benefit based on disability $1,971.18

(13) Initial proposed reduction percentage 35.00%

(14) Initial proposed reduction amount = [(11) x (13)] $172.48

(15) Maximum reduction due to 110% PBGC guarantee restriction = [(11) + (12) - (10), not less than $0] $1,323.56

(16) Is 110% of PBGC guarantee restriction applicable? No

(17) Reduction in benefit before age-based limitations = [lesser of (14) and (15)] $172.48

(18) Months from age 80 (as of May 31, 2020), not greater than 60 60

(19) Applicable percentage for age-based limitation = [(18) ÷ 60] 100.00%

(20) Final proposed reduction in benefit under suspension = [(17) x (19)] $172.48

(21) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(11) + (12) - (20)] $2,291.50

Example 1H - Group 1 future retiree with benefits based on disability (post 5/1/1995 disability award) 

0131
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 1/29/1945

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 75 years 4 months

(3) Monthly benefit $585.26

(4) Years of service through accrual freeze date (July 31, 2013) 9.00

(5) Date of retirement 4/1/2012

(6) Form of payment Joint Life

(7) Joint and survivor percentage 75.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $585.26 $438.95 N/A

(9) Implied accrual rate = [(8) ÷ (4)] $65.03 $48.77 N/A

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $35.75 $35.75 N/A

(11) PBGC guaranteed benefit = [(4) x (10)] $321.75 $321.75 N/A

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $353.93 $353.93 N/A

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $585.26 $438.95 N/A

(14) Amount of monthly benefit based on disability $0.00 $0.00 N/A

(15) Initial proposed reduction percentage 30.00% 30.00% N/A

(16) Initial proposed reduction amount = [(13) x (15)] $175.58 $131.68 N/A

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $231.34 $85.02 N/A

(18) Is 110% of PBGC guarantee restriction applicable? No Yes N/A

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $175.58 $85.02 N/A

(20) Months from age 80 (as of May 31, 2020), not greater than 60 56 56 N/A

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 93.33% 93.33% N/A

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $163.87 $79.35 N/A

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $421.39 $359.59 N/A

Example 2A - Group 2 individual currently receiving benefits between age 75 and 80 (including contingent beneficiary)

0132
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 9/7/1942

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 77 years 8 months

(3) Monthly benefit $258.49

(4) Years of service through accrual freeze date (July 31, 2013) 6.46

(5) Date of retirement 4/1/2015

(6) Form of payment Single Life

(7) Joint and survivor percentage 0.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $258.49 N/A N/A

(9) Implied accrual rate = [(8) ÷ (4)] $40.02 N/A N/A

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $32.77 N/A N/A

(11) PBGC guaranteed benefit = [(4) x (10)] $211.63 N/A N/A

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $232.79 N/A N/A

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $258.49 N/A N/A

(14) Amount of monthly benefit based on disability $0.00 N/A N/A

(15) Initial proposed reduction percentage 30.00% N/A N/A

(16) Initial proposed reduction amount = [(13) x (15)] $77.55 N/A N/A

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $25.70 N/A N/A

(18) Is 110% of PBGC guarantee restriction applicable? Yes N/A N/A

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $25.70 N/A N/A

(20) Months from age 80 (as of May 31, 2020), not greater than 60 28 N/A N/A

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 46.67% N/A N/A

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $11.99 N/A N/A

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $246.50 N/A N/A

Example 2B - Group 2 individual currently receiving benefits between age 75 and 80 and limited by 110% PBGC Guarantee

0133
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 8/27/1961

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 58 years 9 months

(3) Monthly benefit $1,003.74

(4) Years of service through accrual freeze date (July 31, 2013) 16.00

(5) Date of retirement 9/1/2016

(6) Form of payment Pop-Up

(7) Joint and survivor percentage 75.00%

Calculation of PBGC Guarantee Participant

Contingent

Beneficiary Pop-Up

(8) Monthly benefit $1,003.74 $752.81 $1,173.96

(9) Implied accrual rate = [(8) ÷ (4)] $62.73 $47.05 $73.37

(10) PBGC guaranteed accrual rate = [100% of first $11 of (9) + 75% of (9) between $11 and $44] $35.75 $35.75 $35.75

(11) PBGC guaranteed benefit = [(4) x (10)] $572.00 $572.00 $572.00

(12) 110% of PBGC guaranteed benefit = [(11) x 110%] $629.20 $629.20 $629.20

Calculation of Proposed Suspension Participant

Contingent

Beneficiary Pop-Up

(13) Amount of monthly benefit not based on disability $0.00 $752.81 $0.00

(14) Amount of monthly benefit based on disability $1,003.74 $0.00 $1,173.96

(15) Initial proposed reduction percentage 30.00% 30.00% 30.00%

(16) Initial proposed reduction amount = [(13) x (15)] $0.00 $225.84 $0.00

(17) Maximum reduction due to 110% PBGC guarantee restriction = [(13) + (14) - (12), not less than $0] $374.54 $123.61 $544.76

(18) Is 110% of PBGC guarantee restriction applicable? No Yes No

(19) Reduction in benefit before age-based limitations = [lesser of (16) and (17)] $0.00 $123.61 $0.00

(20) Months from age 80 (as of May 31, 2020), not greater than 60 60 60 60

(21) Applicable percentage for age-based limitation = [(20) ÷ 60] 100.00% 100.00% 100.00%

(22) Final proposed reduction in benefit under suspension = [(19) x (21)] $0.00 $123.61 $0.00

(23) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(13) + (14) - (22)] $1,003.74 $629.20 $1,173.96

Example 2C - Group 2 individual currently receiving benefits based on disability (post 5/1/1995 disability award) (including contingent beneficiary)

0134
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 10/16/1968

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 51 years 7 months

(3) Accrued monthly benefit payable at Normal Retirement Date (NRD) $108.99

(4) Years of service through accrual freeze date (July 31, 2013) 11.25

(5) Actuarial increase factor for delayed retirement 1.0000

(6) Adjusted monthly benefit payable as single life annuity on proposed suspension date (May 1, 2020) = [(3) x (5)] $108.99

Calculation of PBGC Guarantee Participant

(7) Implied accrual rate = [(3) ÷ (4)] $9.69

(8) PBGC guaranteed accrual rate = [100% of first $11 of (7) + 75% of (7) between $11 and $44] $9.69

(9) PBGC guaranteed benefit = [(4) x (8)] $108.99

(10) 110% of PBGC guaranteed benefit = [(9) x 110%] $119.89

Calculation of Proposed Suspension Participant

(11) Amount of monthly benefit not based on disability $108.99

(12) Amount of monthly benefit based on disability $0.00

(13) Initial proposed reduction percentage 25.00%

(14) Initial proposed reduction amount = [(11) x (13)] $27.25

(15) Maximum reduction due to 110% PBGC guarantee restriction = [(11) + (12) - (10), not less than $0] $0.00

(16) Is 110% of PBGC guarantee restriction applicable? Yes

(17) Reduction in benefit before age-based limitations = [lesser of (14) and (15)] $0.00

(18) Months from age 80 (as of May 31, 2020), not greater than 60 60

(19) Applicable percentage for age-based limitation = [(18) ÷ 60] 100.00%

(20) Final proposed reduction in benefit under suspension = [(17) x (19)] $0.00

(21) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(11) + (12) - (20)] $108.99

Example 3A - Group 3 future retiree below 110% PBGC Guarantee

0135
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Limitations on Individual Suspension are Satisfied

Participant Information

(1) Date of birth 9/19/1974

(2) Age at end of month that includes proposed suspension date (May 31, 2020) 45 years 8 months

(3) Accrued monthly benefit payable at Normal Retirement Date (NRD) $443.22

(4) Years of service through accrual freeze date (July 31, 2013) 14.25

(5) Actuarial increase factor for delayed retirement 1.0000

(6) Adjusted monthly benefit payable as single life annuity on proposed suspension date (May 1, 2020) = [(3) x (5)] $443.22

Calculation of PBGC Guarantee Participant

(7) Implied accrual rate = [(3) ÷ (4)] $31.10

(8) PBGC guaranteed accrual rate = [100% of first $11 of (7) + 75% of (7) between $11 and $44] $26.08

(9) PBGC guaranteed benefit = [(4) x (8)] $371.60

(10) 110% of PBGC guaranteed benefit = [(9) x 110%] $408.76

Calculation of Proposed Suspension Participant

(11) Amount of monthly benefit not based on disability $443.22

(12) Amount of monthly benefit based on disability $0.00

(13) Initial proposed reduction percentage 25.00%

(14) Initial proposed reduction amount = [(11) x (13)] $110.81

(15) Maximum reduction due to 110% PBGC guarantee restriction = [(11) + (12) - (10), not less than $0] $34.46

(16) Is 110% of PBGC guarantee restriction applicable? Yes

(17) Reduction in benefit before age-based limitations = [lesser of (14) and (15)] $34.46

(18) Months from age 80 (as of May 31, 2020), not greater than 60 60

(19) Applicable percentage for age-based limitation = [(18) ÷ 60] 100.00%

(20) Final proposed reduction in benefit under suspension = [(17) x (19)] $34.46

(21) Final Monthly Benefit under Proposed Suspension Effective May 1, 2020 = [(11) + (12) - (20)] $408.76

Example 3B - Group 3 future retiree reduced to 110% PBGC Guarantee

0136
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Proposed Suspension is Equitably Distributed

Rev. Proc. 2017-73, Section 4.04(1) - Information for the Plan in Aggregate

Part a

Terminated Alternate 

Actives Vested1Retirees Disabled2Beneficiaries Payees3Total

Valuation Counts as of May 1, 2017 655 379 408 16 89 17 1,564

Average Monthly Benefit Before Proposed Suspension4

$615 $571 $992 $518 $367 $473 $686

Average Monthly Benefit After Proposed Suspension4, 5 475 419 809 518 346 402 541

Percentage Change in Average Monthly Benefit -22.8% -26.6% -18.4% 0.0% -5.7% -15.0% -21.2%

Present Value of Benefits Before Proposed Suspension6

$31,552,375 $17,705,890 $48,742,905 $1,018,332 $3,475,147 $1,097,866 $103,592,515

Present Value of Benefits After Proposed Suspension6

24,413,645 12,519,268 39,201,376 1,015,368 3,248,424 924,762 81,322,843

Reduction in Present Value of Benefits Due to Proposed Suspension6

-7,138,730 -5,186,622 -9,541,529 -2,964 -226,723 -173,104 -22,269,672

2 Includes 13 pensioners that converted disability benefits to normal/early retirement benefits. The decrease in liability under the proposed suspension reflects the reduction to the contingent beneficiary's benefit.

3 Excludes alternate payees not in payment status. The average benefits and present value of benefits for deferred alternate payees are included with applicable active and terminated vested participants.

4 Accrued benefit payable at normal retirement age (or immediately if over NRA) as single life annuity for actives and terminated vested participants; current monthly benefit for those in payment status.

5 Determined taking into account individual limitations, as applicable.

Part b

Percentage reduction in benefits Actives Trm. Vested Retirees Disabled Beneficiaries Alt. Payees Total Counts % of Total

No reduction 359 92 143 16 63 4 677 43%

Greater than 0% but less than 5% 33 36 40 0 10 5 124 8%

At least 5% but less than 10% 36 68 56 0 8 3 171 11%

At least 10% but less than 15% 14 23 26 0 3 0 66 4%

At least 15% but less than 20% 3 13 16 0 2 2 36 2%

At least 20% but less than 25% 8 13 21 0 1 0 43 3%

At least 25% but less than 30% 202 16 24 0 1 0 243 16%

At least 30% but less than 35% 0 7 36 0 1 3 47 3%

35% 0 111 46 0 0 0 157 10%

Total number of participants impacted by proposed suspension 296 287 265 0 26 13 887 57%

Percentage of participants impacted by suspension (within status) 45% 76% 65% 0% 29% 76% 57%

Average reduction % per member (among those impacted) 19.6% 20.7% 18.7% 0.0% 8.8% 12.5% 19.3%

1 Includes two participants with deferred benefits based on disability. Also includes one terminated vested participant over age 70 that was excluded from the valuation as of May 1, 2017.

6 Estimated as of May 1, 2020 based on a 6.5% valuation interest rate and assumptions described in Exhibit K of the report titled "Report of Required Actuarial Information - 

 Application for Proposed Benefit Suspensions as of May 1, 2020".

0137
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Proposed Suspension is Equitably Distributed

Rev. Proc. 2017-73, Section 4.04(2) - Information for Group 1 Participants (Non-Active Participants with Date of Retirement Before August 1, 2009 and All Terminated Vested Participants)

Part a

Terminated Alternate 

Actives Vested1Retirees Disabled2Beneficiaries Payees3Total

Valuation Counts as of May 1, 2017 0 379 288 12 80 10 769

Average Monthly Benefit Before Proposed Suspension4

N/A $571 $1,022 $408 $335 $402 $711

Average Monthly Benefit After Proposed Suspension4, 5 N/A 419 838 408 325 370 565

Percentage Change in Average Monthly Benefit N/A -26.6% -18.0% 0.0% -3.0% -8.0% -20.4%

Present Value of Benefits Before Proposed Suspension6

N/A $17,705,890 $33,170,881 $503,813 $2,783,466 $519,849 $54,683,899

Present Value of Benefits After Proposed Suspension6

N/A 12,519,268 26,644,202 503,813 2,669,344 476,648 42,813,275

Reduction in Present Value of Benefits Due to Proposed Suspension6

N/A -5,186,622 -6,526,679 0 -114,122 -43,201 -11,870,624

3 Excludes alternate payees not in payment status. The average benefits and present value of benefits for deferred alternate payees are included with applicable active and terminated vested participants.

5 Determined taking into account individual limitations, as applicable.

Part b

Percentage reduction in benefits Actives Trm. Vested Retirees Disabled Beneficiaries Alt. Payees Total Counts % of Total

No reduction N/A 92 128 12 59 2 293 38%

Greater than 0% but less than 5% N/A 36 31 0 9 4 80 10%

At least 5% but less than 10% N/A 68 24 0 8 3 103 13%

At least 10% but less than 15% N/A 23 11 0 2 0 36 5%

At least 15% but less than 20% N/A 13 7 0 1 1 22 3%

At least 20% but less than 25% N/A 13 16 0 1 0 30 4%

At least 25% but less than 30% N/A 16 15 0 0 0 31 4%

At least 30% but less than 35% N/A 7 10 0 0 0 17 2%

35% N/A 111 46 0 0 0 157 20%

Total number of participants impacted by proposed suspension N/A 287 160 0 21 8 476 62%

Percentage of participants impacted by suspension (within status) N/A 76% 56% 0% 26% 80% 62%

Average reduction % per member (among those impacted) N/A 20.7% 20.0% 0.0% 6.7% 6.1% 19.6%

6 Estimated as of May 1, 2020 based on a 6.5% valuation interest rate and assumptions described in Exhibit K of the report titled "Report of Required Actuarial Information - 

4 Accrued benefit payable at normal retirement age (or immediately if over NRA) as single life annuity for actives and terminated vested participants; current monthly benefit for those in payment status.

1 Includes two participants with deferred benefits based on disability. Also includes one terminated vested participant over age 70 that was excluded from the valuation as of May 1, 2017.

2 Includes 9 pensioners that converted disability benefits to normal/early retirement benefits. 

 Application for Proposed Benefit Suspensions as of May 1, 2020".

0138
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Proposed Suspension is Equitably Distributed

Rev. Proc. 2017-73, Section 4.04(2) - Information for Group 2 Participants (Non-Active Participants with Date of Retirement On or After August 1, 2009)

Part a

Terminated Alternate 

Actives Vested Retirees Disabled1Beneficiaries Payees2Total

Valuation Counts as of May 1, 2017 0 0 120 4 9 7 140

Average Monthly Benefit Before Proposed Suspension3

N/A N/A $919 $851 $645 $574 $882

Average Monthly Benefit After Proposed Suspension3, 4 N/A N/A 739 851 527 447 714

Percentage Change in Average Monthly Benefit N/A N/A -19.5% 0.0% -18.2% -22.1% -19.0%

Present Value of Benefits Before Proposed Suspension5

N/A N/A $15,572,024 $514,519 $691,681 $578,017 $17,356,241

Present Value of Benefits After Proposed Suspension5

N/A N/A 12,557,174 511,555 579,080 448,114 14,095,923

Reduction in Present Value of Benefits Due to Proposed Suspension5

N/A N/A -3,014,850 -2,964 -112,601 -129,903 -3,260,318

1 Includes 4 pensioners that converted disability benefits to normal/early retirement benefits. The decrease in liability under the proposed suspension reflects the reduction to the contingent beneficiary's benefit.

2 Excludes alternate payees not in payment status. The average benefits and present value of benefits for deferred alternate payees are included with applicable active and terminated vested participants.

4 Determined taking into account individual limitations, as applicable.

Part b

Percentage reduction in benefits Actives Trm. Vested Retirees Disabled Beneficiaries Alt. Payees Total Counts % of Total

No reduction N/A N/A 15 4 4 2 25 18%

Greater than 0% but less than 5% N/A N/A 9 0 1 1 11 8%

At least 5% but less than 10% N/A N/A 32 0 0 0 32 23%

At least 10% but less than 15% N/A N/A 15 0 1 0 16 11%

At least 15% but less than 20% N/A N/A 9 0 1 1 11 8%

At least 20% but less than 25% N/A N/A 5 0 0 0 5 4%

At least 25% but less than 30% N/A N/A 9 0 1 0 10 7%

At least 30% but less than 35% N/A N/A 26 0 1 3 30 21%

35% N/A N/A 0 0 0 0 0 0%

Total number of participants impacted by proposed suspension N/A N/A 105 0 5 5 115 82%

Percentage of participants impacted by suspension (within status) N/A N/A 88% 0% 56% 71% 82%

Average reduction % per member (among those impacted) N/A N/A 16.6% 0.0% 17.5% 22.9% 16.9%

3 Current monthly benefit for those in payment status.

5 Estimated as of May 1, 2020 based on a 6.5% valuation interest rate and assumptions described in Exhibit K of the report titled "Report of Required Actuarial Information - 

 Application for Proposed Benefit Suspensions as of May 1, 2020".

0139
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Proposed Suspension is Equitably Distributed

Rev. Proc. 2017-73, Section 4.04(2) - Information for Group 3 Participants (Active Participants Hired Before May 1, 2006)

Part a

Terminated Alternate 

Actives Vested Retirees Disabled Beneficiaries Payees Total

Valuation Counts as of May 1, 2017 353 0 0 0 0 0 353

Average Monthly Benefit Before Proposed Suspension1

$1,124 N/A N/A N/A N/A N/A $1,124

Average Monthly Benefit After Proposed Suspension1, 2 865 N/A N/A N/A N/A N/A 865

Percentage Change in Average Monthly Benefit -23.1% N/A N/A N/A N/A N/A -23.1%

Present Value of Benefits Before Proposed Suspension3

$31,291,937 N/A N/A N/A N/A N/A $31,291,937

Present Value of Benefits After Proposed Suspension3

24,153,207 N/A N/A N/A N/A N/A 24,153,207

Reduction in Present Value of Benefits Due to Proposed Suspension3

-7,138,730 N/A N/A N/A N/A N/A -7,138,730

Part b

Percentage reduction in benefits Actives Trm. Vested Retirees Disabled Beneficiaries Alt. Payees Total Counts % of Total

No reduction 57 N/A N/A N/A N/A N/A 57 16%

Greater than 0% but less than 5% 33 N/A N/A N/A N/A N/A 33 9%

At least 5% but less than 10% 36 N/A N/A N/A N/A N/A 36 10%

At least 10% but less than 15% 14 N/A N/A N/A N/A N/A 14 4%

At least 15% but less than 20% 3 N/A N/A N/A N/A N/A 3 1%

At least 20% but less than 25% 8 N/A N/A N/A N/A N/A 8 2%

At least 25% but less than 30% 202 N/A N/A N/A N/A N/A 202 57%

At least 30% but less than 35% 0 N/A N/A N/A N/A N/A 0 0%

35% 0 N/A N/A N/A N/A N/A 0 0%

Total number of participants impacted by proposed suspension 296 N/A N/A N/A N/A N/A 296 84%

Percentage of participants impacted by suspension (within status) 84% N/A N/A N/A N/A N/A 84%

Average reduction % per member (among those impacted) 19.6% N/A N/A N/A N/A N/A 19.6%

1 Accrued benefit payable at normal retirement age (or immediately if over NRA) as single life annuity.

3 Estimated as of May 1, 2020 based on a 6.5% valuation interest rate and assumptions described in Exhibit K of the report titled "Report of Required Actuarial Information - 

 Application for Proposed Benefit Suspensions as of May 1, 2020".

2

 Determined taking into account individual limitations, as applicable.

0140
Sheet Metal Workers Local Pension Plan

Application for Proposed Benefit Suspension as of May 1, 2020

Demonstration that Proposed Suspension is Equitably Distributed

Rev. Proc. 2017-73, Section 4.04(2) - Information for Group 4 Participants (Active Participants Hired On or After May 1, 2006)

Part a

Terminated Alternate 

Actives Vested Retirees Disabled Beneficiaries Payees Total

Valuation Counts as of May 1, 2017 302 0 0 0 0 0 302

Average Monthly Benefit Before Proposed Suspension1

$19 N/A N/A N/A N/A N/A $19

Average Monthly Benefit After Proposed Suspension1, 2 19 N/A N/A N/A N/A N/A 19

Percentage Change in Average Monthly Benefit 0.0% N/A N/A N/A N/A N/A 0.0%

Present Value of Benefits Before Proposed Suspension3

$260,438 N/A N/A N/A N/A N/A $260,438

Present Value of Benefits After Proposed Suspension3

260,438 N/A N/A N/A N/A N/A 260,438

Reduction in Present Value of Benefits Due to Proposed Suspension3

0 N/A N/A N/A N/A N/A 0

Part b

Percentage reduction in benefits Actives Trm. Vested Retirees Disabled Beneficiaries Alt. Payees Total Counts % of Total

No reduction 302 N/A N/A N/A N/A N/A 302 100%

Greater than 0% but less than 5% 0 N/A N/A N/A N/A N/A 0 0%

At least 5% but less than 10% 0 N/A N/A N/A N/A N/A 0 0%

At least 10% but less than 15% 0 N/A N/A N/A N/A N/A 0 0%

At least 15% but less than 20% 0 N/A N/A N/A N/A N/A 0 0%

At least 20% but less than 25% 0 N/A N/A N/A N/A N/A 0 0%

At least 25% but less than 30% 0 N/A N/A N/A N/A N/A 0 0%

At least 30% but less than 35% 0 N/A N/A N/A N/A N/A 0 0%

35% 0 N/A N/A N/A N/A N/A 0 0%

Total number of participants impacted by proposed suspension 0 N/A N/A N/A N/A N/A 0 0%

Percentage of participants impacted by suspension (within status) 0% N/A N/A N/A N/A N/A 0%

Average reduction % per member (among those impacted) N/A N/A N/A N/A N/A N/A N/A

1 Accrued benefit payable at normal retirement age (or immediately if over NRA) as single life annuity.

3 Estimated as of May 1, 2020 based on a 6.5% valuation interest rate and assumptions described in Exhibit K of the report titled "Report of Required Actuarial Information - 

 Application for Proposed Benefit Suspensions as of May 1, 2020".

2

 Determined taking into account individual limitations, as applicable.

0141
I CACONTR I CALOCAL I CNNAME CNADDRl 

012152 01 AIR COMFORT INC 225 BLUFF STREET 

012863 01 ALL COMFORT HTG & A/C 1748 BROWNLEE AVE NE 

013241 01 newcom 120 N LIME ST 

018369 01 ALPHA INDOOR ENVIRONMENTAL & REFRIGERATION, LLC 

020727 01 BRUST SHEET METAL 5020 S PROSPECT ST 

020732 01 BREINING MECHANICAL SYS INC 833 ADDISON ROAD 

021321 01 BEST COMM ENERGY SERVICE 1340 E ARCHWOOD AVE 

029044 01 BUILDING INTEGRATED SERVICES 7777 FIRST PLACE 

030797 01 CROWN HEATING & COOLING INC PO BOX 1030 

030798 01 CRAMERS INC 4944 SOUTHWAY SW 

032356 01 COMFORT SYSTEMS USA 7401 FIRST PLACE 

032377 01 CRS METAL WORKS 1059 EAGON ST 

032723 01 COMPLETE INSTALLATION SERV INC 14670 LIBERTY CHURCH ST 

032773 01 CHUTE SOURCE LLC 525 KENEDY RD 

037652 01 CREWS HEATING & COOLING 2350 13TH ST NE 

041177 01 DJS MAINT & CONST CO INC ATTN: LINDA BROTHERS 

043136 01 DOVER PHILA HEATING AND 

050703 01 EAST COAST METAL SYSTEMS INC PO BOX 6372 

061065 01 FALLS METAL FAB & IND SERVICES 760 HOME AVENUE 

061132 01 FULTON & ASSOCIATES BALANCE CO 1410 LLOYD RD 

070340 01 GEOPFERT COMPANY 1024 HOME AVENUE 

070341 01 GREER HEATING & A/C 1349 W MAIN STREET 

078382 01 GIANGELO SHEET METAL 14 CAYUSE TRAIL 

080448 01 HUDSON HEATING CO 137-C OWEN BROWN STREET 

081327 01 HYBRID HEATING & COOLING LLC 1509 MASSILLON RD 

087046 01 HAYBNER SHEET METAL, INC 7153 HARPS MILL DR 

090646 01 IMPERIAL HTG & CLG INC 30685 SOLON IND PARKWAY 

100201 01 JOHNSONS PLUMBING & HEATING CO 1840 OTSEGO AVENUE 

110325 01 K COMPANY INC THE 2234 S ARLINGTON ROAD 

110441 01 CR KURTZ 802 NAVARRE ROAD SW 

110958 01 KEBCO PRECISION FAB INC PO BOX 20057 

111005 01 KM T METAL SYSTEMS INC P.O. BOX 30187 

119220 01 KC METALWORKS LLC 

120881 01 SMW LU# 033 NORTHERN OHIO 12515 CORPORATE DRIVE 

121122 01 SMW LU# 033 APP ED & PROMO FUN 1890 VENTURE CIR SE 

130833 01 N F MANSUETTO & SONS 2ND & WOOD ST. 

131354 01 T H MARTIN INC 8500 BROOKPARK ROAD 

131767 01 METAL MASTERS INC 125 WILLIAMS DR NW 

132083 01 MICHAEL FABRICATORS 4003 ST A TE RT 44 

140069 01 NORTHERN OHIO ROOFING 880 INFIRMARY ROAD 

140265 01 NIMEN SHEET METAL INC 1277 DUEBER AVE SW 

150141 01 OHIO FABRICATORS INC 833 ADDISON ROAD 

150516 01 ONTARIO MECHANICAL LLC P.O. BOX 134 

151600 01 000 ENTERPRISES PO BOX 68 

160341 01 PROFESSIONAL BALANCE 37903 EUCLID AVENUE 

161483 01 PRECISION AIR BALANCE CO INC 15500 BROOKPARK ROAD 

0142
180045 01 ROTH BROS INC PO BOX4209 

180597 01 R & D HEATING & SHEET METAL PO BOX 142 

181245 01 RAY ROOFING & SUPPLY 34-0664464 

182014 01 RGT SERVICES 26185 BROADWAY AVE 

190202 01 JULIAN SPEER COMPANY 5255 SINCLAIR 

190247 01 R G SMITH OF MANSFIELD INC 34-1867455 

191362 01 SHEET METAL CRAFTERS PO BOX 20648 

192274 01 SAFCO HEATING & AIR CONDITION! 262 CACKLER ROAD 

192329 01 SCHMID MECHANICAL CO 5255 SINCLAIR 

192459 01 R G SMITH OF DOVER 34-1867108 

192460 01 R G SMITH CO INC 34-0678463 

192682 01 SMITH & OBY COMPANY 7676 NORTHFIELD RD 

201449 01 TEMA ROOFING SERVICES LLC 1596 MOTOR INN DR 

230382 01 WRIGHT HEATING CO 418 N WATER STREET 

231356 01 WAINO SHEET METAL, INC. P.O. BOX 2677 

0143
CNADDR2 CNCITY I CNSTATE I CNZIP 

AKRON OH 44304 

CANTON OH 44705 

P.O. BOX 1268 LANCASTER PA 17608-1268 

10322 PORR RD MARSHALLVILLE OH 44645 

RAVENNA OH 44266 

CLEVELAND OH 44103 

AKRON OH 44306 

OAKWOOD VILLAGE OH 44146 

11197 CLEVELAND AVENUE NW UNIONTOWN OH 44685-9401 

CANTON OH 44706 

OAKWOOD VILLAGE OH 44146 

BARBERTON OH 44203 

SE MINERVA OH 44657-8812 

AKRON OH 44305-4425 

CANTON OH 44705 

9921 DOLPHIN ST SW BEACH CITY OH 44608 

WHEELING WV 26003-0923 

AKRON OH 44310 

WICKLIFFE OH 44092 

AKRON OH 44310 

KENT OH 44240 

MALVERN OH 44644 

HUDSON OH 44236 

AKRON OH 44306 

WADSWORTH OH 44281-8194 

SOLON OH 44139 

COSHOCTON OH 43812 

AKRON OH 44319-1929 

CANTON OH 44707 

CANTON OH 44701 

EAST CANTON OH 44730 

PARMA OH 44130 

MASSILLON OH 44646-8629 

MARTINS FERRY OH 43935 

CLEVELAND OH 44129 

DOVER OH 44622 

ROOTSTOWN OH 44272 

ELYRIA OH 44035 

CANTON OH 44706 

CLEVELAND OH 44103 

ONTARIO OH 44862 

BERLIN CENTER OH 44401 

WILLOUGHBY OH 44094 

CLEVELAND OH 44135 

0144
3847 CRUM ROAD YOUNGSTOWN OH 44515 

3200 BLACKMORE ROAD PERRY OH 44081 

1249 DUEBER AVENUE SW CANTON OH 44706 

OAKWOOD VILLAGE OH 44146 

COLUMBUS OH 43229 

1249 DUEBER AVENUE SW CANTON OH 44706 

CANTON OH 44701 

STREETSBORO OH 44241 

COLUMBUS OH 43229 

1249 DUEBER AVENUE SW CANTON OH 44706 

1249 DUEBER AVENUE SW CANTON OH 44706 

WALTON HILLS OH 44146 

GIRARD OH 44420 

KENT OH 44240 

STOW OH 44224 

0145
I CACONTR I CALOCAL I CNNAME CNADDRl 

020724 06 BURNHAM INDUSTRIAL CONTR INC 3229 BABCOCK BLVD 

021850 06 BUCKEYE MECHANICAL CONTRACTORS 2325 TOWNSHIP ROAD #370 

022267 06 BRAND ENERGY SERVICES L 

030414 06 CHAPMAN CORPORATION 331 S MAIN STREET 

030876 06 CATTRELL COMPANIES 906 FRANKLIN STREET 

050703 06 EAST COAST METAL SYSTEMS INC PO BOX 6372 

071032 06 G V H ENVIRONMENTAL INC 2 RIVER ROAD 

071089 06 GREG GANTZER INC OBA: A E PELLEY PLMB & HT 

081111 06 GEORGE V HAMILTON INC 2 RIVER ROAD 

110959 06 KUCERA PLUMBING & CLG LLC 4150 CENTRAL AVENUE 

120881 06 SMW LU# 033 NORTHERN OHIO 12515 CORPORATE DRIVE 

130388 06 MCKAMISH INC 50 55TH STREET 

130833 06 N F MANSUETTO & SONS 2ND & WOOD ST. 

132218 06 MOUNTAIN AIRE SERVICE AMERICA 700 MARKET STREET 

132811 06 MURPHY CONSOLIDATED IND INC OBA MURPHY CONST EQUIP 

140255 06 H E NEUMANN COMPANY PO BOX 6208 

150517 06 OHIO-WEST VA EXCAVATING CO P.O. BOX 128 

180045 06 ROTH BROS INC PO BOX 4209 

190739 06 SCHENERLEIN & SLIGAR 619 NORTH 6TH STREET 

250059 06 YORK MAHONING CO PO BOX 3077 

0146
CNADDR2 CNCITY I CNSTATE I CNZIP 

PITTSBURGH PA 15237 

TORONTO OH 43964 

WASHINGTON PA 15301 

TORONTO OH 43964 

WHEELING WV 26003-0923 

MCKEES ROCK PA 15136 

176-17TH STREET WHEELING WV 26003 

MCKEES ROCK PA 15136 

SHADYSIDE OH 43947 

PARMA OH 44130 

PITTSBURGH PA 15201 

MARTINS FERRY OH 43935 

WHEELING WV 26003 

575 VETERANS DR FOLLANSBEE WV 26037 

WHEELING WV 26003 

POWHATAN POINT OH 43942 

3847 CRUM ROAD YOUNGSTOWN OH 44515 

STEUBENVILLE OH 43952 

724 CANFIELD ROAD YOUNGSTOWN OH 44511 

0147
I CACONTR I CALOCAL I CNNAME CNADDRl 

012152 01 AIR COMFORT INC 225 BLUFF STREET 

012863 01 ALL COMFORT HTG & A/C 1748 BROWNLEE AVE NE 

013241 01 ADVANCED INDUSTRIAL SERVICES 120 N LIME ST 

018369 01 ALPHA INDOOR ENVIRONMENTAL & REFRIGERATION, LLC 

020727 01 BRUST SHEET METAL 5020 S PROSPECT ST 

020732 01 BREINING MECHANICAL SYS INC 833 ADDISON ROAD 

021321 01 BEST COMM ENERGY SERVICE 1340 E ARCHWOOD AVE 

029044 01 BUILDING INTEGRATED SERVICES 7777 FIRST PLACE 

030797 01 CROWN HEATING & COOLING INC PO BOX 1030 

030798 01 CRAMERS INC 4944 SOUTHWAY SW 

032356 01 COMFORT SYSTEMS USA 7401 FIRST PLACE 

032377 01 CRS METAL WORKS 1059 EAGON ST 

032723 01 COMPLETE INSTALLATION SERV INC 14670 LIBERTY CHURCH ST 

032773 01 CHUTE SOURCE LLC 525 KENEDY RD 

037652 01 CREWS HEATING & COOLING 2350 13TH ST NE 

041177 01 DJS MAINT & CONST CO INC ATTN: LINDA BROTHERS 

043136 01 DOVER PHILA HEATING AND 

050703 01 EAST COAST METAL SYSTEMS INC PO BOX 6372 

061065 01 FALLS METAL FAB & IND SERVICES 760 HOME AVENUE 

061132 01 FULTON & ASSOCIATES BALANCE CO 1410 LLOYD RD 

070340 01 GEOPFERT COMPANY 1024 HOME AVENUE 

070341 01 GREER HEATING & A/C 1349 W MAIN STREET 

078382 01 GIANGELO SHEET METAL 14 CAYUSE TRAIL 

080448 01 HUDSON HEATING CO 137-C OWEN BROWN STREET 

081327 01 HYBRID HEATING & COOLING LLC 1509 MASSILLON RD 

087046 01 HAYBNER SHEET METAL, INC 7153 HARPS MILL DR 

090646 01 IMPERIAL HTG & CLG INC 30685 SOLON IND PARKWAY 

100201 01 JOHNSON$ PLUMBING & HEATING CO 1840 OTSEGO AVENUE 

110325 01 K COMPANY INC THE 2234 S ARLINGTON ROAD 

110441 01 CR KURTZ 802 NAVARRE ROAD SW 

110958 01 KEBCO PRECISION FAB INC PO BOX 20057 

111005 01 KM T METAL SYSTEMS INC P.O. BOX 30187 

119220 01 KC METALWORKS LLC 

120881 01 SMW LU# 033 NORTHERN OHIO 12515 CORPORATE DRIVE 

121122 01 SMW LU# 033 APP ED & PROMO FUN 1890 VENTURE CIR SE 

130833 01 N F MANSUETTO & SONS 2ND & WOOD ST. 

131354 01 T H MARTIN INC 8500BROOKPARKROAD 

131767 01 METAL MASTERS INC 125 WILLIAMS DR NW 

132083 01 MICHAEL FABRICATORS 4003 ST ATE RT 44 

140069 01 NORTHERN OHIO ROOFING 880 INFIRMARY ROAD 

140265 01 NIMEN SHEET METAL INC 1277 DUEBER AVE SW 

150141 01 OHIO FABRICATORS INC 833 ADDISON ROAD 

150516 01 ONTARIO MECHANICAL LLC P.O. BOX 134 

151600 01 000 ENTERPRISES PO BOX 68 

160341 01 PROFESSIONAL BALANCE 37903 EUCLID AVENUE 

161483 01 PRECISION AIR BALANCE CO INC 15500 BROOKPARK ROAD 

0148
180045 01 ROTH BROS INC PO BOX4209 

180597 01 R & D HEATING & SHEET METAL PO BOX 142 

181245 01 RAY ROOFING & SUPPLY 34-0664464 

182014 01 RGT SERVICES 26185 BROADWAY AVE 

190202 01 JULIAN SPEER COMPANY 5255 SINCLAIR 

190247 01 R G SMITH OF MANSFIELD INC 34-1867455 

191362 01 SHEET METAL CRAFTERS PO BOX 20648 

192274 01 SAFCO HEATING & AIR CONDITION I 262 CACKLER ROAD 

192329 01 SCHMID MECHANICAL CO 5255 SINCLAIR 

192459 01 R G SMITH OF DOVER 34-1867108 

192460 01 R G SMITH CO INC 34-0678463 

192682 01 SMITH & OBY COMPANY 7676 NORTHFIELD RD 

201449 01 TEMA ROOFING SERVICES LLC 1596 MOTOR INN DR 

230382 01 WRIGHT HEATING CO 418 N WATER STREET 

231356 01 WAINO SHEET METAL, INC. P.O. BOX 2677 

020724 06 BURNHAM INDUSTRIAL CONTR INC 3229 BABCOCK BLVD 

021850 06 BUCKEYE MECHANICAL CONTRACTORS 2325 TOWNSHIP ROAD #370 

022267 06 BRAND ENERGY SERVICES L 

030414 06 CHAPMAN CORPORATION 331 S MAIN STREET 

030876 06 CATTRELL COMPANIES 906 FRANKLIN STREET 

071032 06 G V H ENVIRONMENTAL INC 2 RIVER ROAD 

071089 06 GREG GANTZER INC DBA: A E PELLEY PLMB & HT 

081111 06 GEORGE V HAMILTON INC 2 RIVER ROAD 

110959 06 KUCERA PLUMBING & CLG LLC 4150 CENTRAL AVENUE 

130388 06 MCKAMISH INC 50 55TH STREET 

132218 06 MOUNTAIN AIRE SERVICE AMERICA 700 MARKET STREET 

132811 06 MURPHY CONSOLIDATED IND INC DBA MURPHY CONST EQUIP 

140255 06 H E NEUMANN COMPANY PO BOX 6208 

150517 06 OHIO-WEST VA EXCAVATING CO P.O. BOX 128 

190739 06 SCHENERLEIN & SLIGAR 619 NORTH 6TH STREET 

250059 06 YORK MAHONING CO PO BOX 3077 

0149
CNADDR2 CNCITY I CNSTATE I CNZIP 

AKRON OH 44304 

CANTON OH 44705 

P.O. BOX 1268 LANCASTER PA 17608-1268 

10322 PORR RD MARSHALLVILLE OH 44645 

RAVENNA OH 44266 

CLEVELAND OH 44103 

AKRON OH 44306 

OAKWOOD VILLAGE OH 44146 

11197 CLEVELAND AVENUE NW UNIONTOWN OH 44685-9401 

CANTON OH 44706 

OAKWOOD VILLAGE OH 44146 

BARBERTON OH 44203 

SE MINERVA OH 44657-8812 

AKRON OH 44305-4425 

CANTON OH 44705 

9921 DOLPHIN ST SW BEACH CITY OH 44608 

WHEELING WV 26003-0923 

AKRON OH 44310 

WICKLIFFE OH 44092 

AKRON OH 44310 

KENT OH 44240 

MALVERN OH 44644 

HUDSON OH 44236 

AKRON OH 44306 

WADSWORTH OH 44281-8194 

SOLON OH 44139 

COSHOCTON OH 43812 

AKRON OH 44319-1929 

CANTON OH 44707 

CANTON OH 44701 

EAST CANTON OH 44730 

PARMA OH 44130 

MASSILLON OH 44646-8629 

MARTINS FERRY OH 43935 

CLEVELAND OH 44129 

DOVER OH 44622 

ROOTSTOWN OH 44272 

ELYRIA OH 44035 

CANTON OH 44706 

CLEVELAND OH 44103 

ONTARIO OH 44862 

BERLIN CENTER OH 44401 

WILLOUGHBY OH 44094 

CLEVELAND OH 44135 

0150
3847 CRUM ROAD YOUNGSTOWN OH 44515 

3200 BLACKMORE ROAD PERRY OH 44081 

1249 DUEBER AVENUE SW CANTON OH 44706 

OAKWOOD VILLAGE OH 44146 

COLUMBUS OH 43229 

1249 DUEBER AVENUE SW . CANTON OH 44706 

CANTON OH 44701 

STREETSBORO OH 44241 

COLUMBUS OH 43229 

1249 DUEBER AVENUE SW CANTON OH 44706 

1249 DUEBER AVENUE SW CANTON OH 44706 

WALTON HILLS OH 44146 

GIRARD OH 44420 

KENT OH 44240 

STOW OH 44224 

PITTSBURGH PA 15237 

TORONTO OH 43964 

WASHINGTON PA 15301 

TORONTO OH 43964 

MCKEES ROCK PA 15136 

176-17TH STREET WHEELING WV 26003 

MCKEES ROCK PA 15136 

SHADYSIDE OH 43947 

PITTSBURGH PA 15201 

WHEELING WV 26003 

575 VETERANS DR FOLLANSBEE WV 26037 

WHEELING WV 26003 

POWHATAN POINT OH 43942 

STEUBENVILLE OH 43952 

724 CANFIELD ROAD YOUNGSTOWN OH 44511 

0151
25

Pursuant to Section 6.07 of IRS Revenue Procedure 2017-43, the undersigned Trustee, who has been designated by the Board of Trustees as its Authorized Representative Trustee for the purpose of executing all documents necessary for the Plan's application for approval of suspension of benefits, hereby certifies that if upon final authorization to implement the proposed suspension as described in Internal Revenue Code Section 432(e)(9)(H)(vi) the Board of Trustees determines to implement the suspension, the following plan amendments will be timely adopted and not modified at any time thereafter before the suspension of benefits expires: 

( 1) A plan amendment providing that in accordance with Internal Revenue Code Section 4 3 2( e )(9)( C)(ii) the benefit suspension will cease as of the first day of the first plan year following the plan year in which the plan sponsor fails to maintain a written record of its determination that both: 

a. All reasonable measures to avoid insolvency continue to be taken during the period of benefit suspension; and 

b. the plan is projected to become insolvent unless benefits continue to be 

suspended. 

(2) A plan amendment providing that any future benefit improvements must satisfy the requirements of Internal Revenue Code Section 432(e)(9)(E). 

Signed: March_, 2019 

-~ .. 5700 

0152
SECTION 6.09 

EXHIBIT 10 

SHEET METAL WORKERS LOCAL PENSION PLAN 

NARRATIVE STATEMENT OF THE REASONS THE PLAN 

IS IN CRITICAL AND DECLINING STATUS 

A. INTRODUCTION. 

Contribution and investment income simply have not been adequate, when 

measured against the Plan's vested benefit obligations, to avoid the Plan's descent to 

insolvency. Significantly reduced work hours stemming from the 2008 financial crisis 

and prior plan design changes providing past service benefit improvements have also 

played a role in the Plan's financial decline. Also, the maturity of the Plan is a major 

contributing factor. Specifically, the ratio of active to non-active participants is 

imbalanced and unsustainable. Contributions tied to the hours worked by active 

participants are not adequate to pay for the unfunded benefits of the Plan resulting in a 

large negative cash flow that is unsustainable. In combination, these historical factors are 

the key reasons why the Plan is currently in the critical and declining zone status. 

Consequently, the Trustees have decided to move forward with an application for 

suspension of benefits. 

B. HISTORICAL CONTEXT. 

From the mid-l 980s through 1999 the Plan experienced generally good and 

positive investment returns. The bursting of the dot-com bubble in the early 2000s hurt 

the Plan's funding but likely not mortally. In 2005, for example, the Plan's funded ratio 

was 67% based on the market value of its assets and a funding deficiency (negative credit 

balance) was forecast by the end of Plan Year 2008. In response, the Trustees reduced the 

percentage of contribution accrual rate for future benefits to .36% from 2.2%. As a result, 

the Plan's funded ratio in 2006 remained at 67%, but the date of the projected funding 

deficiency was pushed out to 2016. Also in 2006 the Plan experienced a 6.3% drop in the 

size of the active participant population, reducing the stream of contribution income 

available to pay down prior unfunded benefits. It is conceivable that with the reduced 

accrual rate and good investment returns the Plan may have improved its funding levels, 

but this did not account for the financial crisis of 2008 and the resulting "Great 

Recession" which damaged the Plan irreparably. 

On the investment side of the equation during plan years 2000-2016 the Plan's 

minimum funding valuation interest assumption net of investment-related expenses was 

8.0% per annum (it is now 6.50%). Unfortunately, the Plan's investment performance for 

2008 and 2011 was dramatically below the assumption -30.8% and -7.9%, respectively. 

While in other post-2008 years the Fund had positive rates of return, as of 2018 the Fund 

has only recovered approximately $1.5 million of the $18 million investment loss from 

the plan year ended April 30, 2009. To put it bluntly, the 2008 crisis set the Plan into a 

financial hole out of which only unprecedented positive future returns would save it. This 

cannot reasonably be predicted to occur, nor can the existing contribution base make up 

0153
the shortfall in investment performance. As a result of the historic losses of 2008 the 

Plan's market value funded percentage in 2009 was only 40%. While this ratio fluctuated 

in the years since 2009 (reaching a high water mark of 52% in 2011), the Plan has been 

certified to be in critical status or critical and declining status in every year since 2009. 

The Plan's market value funded percentage, as of May 1, 2017, is 40%, unimproved since 

2009. 

Additionally, the Plan's work hours have fallen from their historic highs as 

foreshadowed in 2006 and are not reasonably projected to return to those levels. 

Although the Trustees expect hours to stabilize in the future, those hours are inadequate 

to fund prior unfunded benefit obligations. From 2001 to 2005, the Plan experienced 

work hours that averaged approximately 1.4 - 1.5 million hours total. From 2008 through 

2016 the Plan's reported work hours were a low (2010) of 922,328 and a high (2017) of 

1,180,488. It is also notable that in some years in which the Plan experienced better work 

hour totals, its investment returns were poor. For example, in 2011 the Plan experienced a 

total of 1,034,107 hours but, as referenced above, its investments returned -7.9%. In 2015 

the Plan experienced 1,087,575 total work hours, but its investments experienced an 

essentially flat return of 0.1 %. The loss of half a million hours coupled with volatile 

investment returns has made it impossible for the Plan to recover to date. Based on 

expected future hours and expected future long-term investment returns (in turn based 

upon the most 2018 Horizon Survey of Capital Market Assumptions) used in the 

solvency analysis presented in the application, it is projected that there cannot be a 

recovery without the suspension of benefits. 

Finally, the "mature" nature of the Plan exacerbates the current funding crisis and, 

most ominously, bodes very ill for the future of the Plan. In 2003 the Plan's 

demographics were 940 active to 567 inactive participants showing a ratio of 1.6 active 

for every inactive. In 2007, that ratio had moved decisively in the wrong direction, with 

698 active to 776 inactive participants. As of the most recent actuarial valuation, there are 

655 active and 908 inactive participants/beneficiaries. In terms of cash flow, the plan had 

a negative cash flow equal to -5% during the 2017-2018 plan year. The negative cash 

flow is anticipated to grow over time to over -10% in the next 4-5 years based on current 

actuarial projections assuming no changes to the current benefit structure. 

The history of the Plan as spelled out in these three data points - investment 

experience, hour loss/contribution reduction, and an increasingly mature demographic 

structure - were observed by the Trustees of the Plan who took many steps, indeed all 

reasonable measures, in an effort to stem the tide of financial decline. Unfortunately, 

these steps have not succeeded. Upon the certification of the Plan as "critical and 

declining" after the amendments to the Code and ERISA in 2014 (Kline-Miller 

Multiemployer Pension Reform Act) the Trustees, who are committed to seeing the Plan 

survive and pay promised benefits, directed their actuary and attorney to file this 

application for suspension of benefits. 

2 

0154
C. DISCUSSION. 

Upon its initial "critical" certification under the Pension Protection Act of 2006, 

the Trustees adopted a Rehabilitation Plan (July 1, 2009) which amended and was 

incorporated into the Plan document. As noted, the Plan continued in critical status until 

2016 at which time it was certified as "critical and declining" ( and was so certified again 

in 2017 and 2018). Since the initial Rehabilitation Plan adoption the Trustees have 

eliminated all adjustable benefits under the Plan, excepting an increase to the Plan's 

normal retirement age. 

The benefit changes under the Rehabilitation Plan demonstrate the consistent 

effort of the Trustees to arrest the financial decline of the Plan while maintaining an 

adequate benefit structure and economically realistic contribution rates, as follows: 

Effective August 1, 2009 -

• Changed the normal form of benefit payment from a 5-year certain and 

life annuity to life-only annuity. Amounts payable under optional payment fonns 

were thereafter to be actuarially adjusted to reflect their value relative to a lifeonly annuity. 

• Increased the early retirement reduction factors from 3% per year prior to 

normal retirement age to actuarially equivalent reductions for the number of years 

prior normal retirement age. 

• Eliminated the fully subsidized pop-up feature on joint & survivor 

payment forms. Participants who wished to elect a pop-up feature as part of a 

joint & survivor payment form were to pay for the feature with an actuarial 

reduction to their benefit. 

• Eliminated the single lump-sum and 60-payment pre-retirement death 

benefits. The only pre-retirement death benefit to be offered would be the 50% 

survivor annuity payable to a surviving spouse of a deceased vested participant 

(payable beginning when the participant would have reached retirement age). 

Effective August 1, 2013 -

• Benefit accruals for contributions made on or after August 1, 2013, were 

suspended (0% accruals) subject to annual review by the Trustees. 

Effective September 1, 2013 -

• Temporary disability benefits were eliminated for applications received on 

or after September 1, 2013. 

The Rehabilitation Plan also made significant funding changes: 

3 

0155
• There were cumulative annual contribution rate increases of 10% in 2009, 

2010, and 2011. 

• There was a 14% contribution rate increase in 2012 

The Trustees have further concluded that it is not economically feasible to 

increase contribution rates any further. Contribution rates have increased by at least 50% 

from the pre-2009 levels due to the Rehabilitation Plan. These contribution rate increases 

resulted in significant wage deferments to the Plan by its active participants and have 

made it very difficult for signatory contractors to remain competitive in the sheet metal 

construction market. The Trustees believe that additional contribution rate increases will 

result in a loss of members in the Union and will make it extremely difficult for the 

Union to attract new members. This will result in a decrease in future contributions to the 

Plan and would inevitably cause a net decrease in future funding of the Plan. Further 

contribution rate increases are therefore counterproductive to the goal of avoiding 

insolvency. 

At present, any would-be contributing employer is faced with participation in a 

Plan that is projected to become insolvent and that requires a high contribution rate, and 

for which new participants will accrue a 0% future benefit notwithstanding the deferral of 

wages into the Plan as contributions. Additionally, new employers who commence 

participation in the Plan could face withdrawal liability. Under these circumstances, it is 

the belief of the Trustees that rational employers face a difficult decision in determining 

whether to sign a CBA that requires contributions to the Plan. The financial position of 

the Plan makes it challenging but not impossible to attract new long-term participating 

employers. New employers have joined the Plan since the accrual rate was reduced to 

0.0% and, four new employers have joined in the past year (since March 1, 2018). The 

addition of new employers is an encouraging indication that others may follow, and 

objectively supports the future contribution base units assumption reflected in the 

application. 

The Trustees seek to retain the contribution base that the Plan has and to 

encourage new employer participation. This is reflected in the determination not to seek 

additional contribution rate increases from the existing employers, which would 

foreseeably lead to employer bankruptcies, likely uncollectible employer withdrawal 

liability, and chill new employer participation. 

Despite the Trustees' efforts and utilization of all reasonable measures, the market 

value funded percentage of the Plan ( as discussed above) has not recovered. It is 

effectively the same as it was at the time of the adoption of the Rehabilitation Plan 

(approximately 40%). 

4 

0156
D. CONCLUSION. 

The economic history of the plan is not a unique one. The "perfect storm" of 

maturing plan populations, reduced work hours and poor investment performance is well 

known. Based upon their careful and thorough analysis of the history recited here and 

actuarial projections of the Plan's future, and after taking all reasonable measures to 

avoid insolvency, it is the Trustees' prudent determination under Code §432(e)(9)(C)(ii) 

that the Plan is projected to become insolvent unless benefits are suspended as proposed 

in the application. 

5 

0157
THIS PAGE INTENTIONALLY LEFT BLANK

0158
INTERNAL REVENUE SERVICE 

P. 0. BOX 2508 

CINCINNATI, OH 45201 

Date: DEC 1 

BOARD OF TRUSTEES SHEET METAL 

WORKERS LOCAL PENSION PLAN 

C/O NOVARA TESIJA PLLC 

EDWARD PASTARNAK 

2000 TOWN CENTER, STE 2370 

SOUTHFIELD, MI 48075 

Dear Applicant: 

DEPARTMENT OF THE TREASURY 

Employer Identification Number: 

34-6666753 

DLN: 

17007023052015 

Person to Contact: 

CATHERINE BROOKS-ALDRETE 

Contact Telephone Number: 

(214) 413-5528 

Plan Name: 

ID# 75813 

SHEET METAL WORKERS LOCAL PENSION 

PLAN 

Plan Number: 001 

Based on the information you provided, we are issuing this favorable 

determination letter for your plan listed above. However, our favorable 

determination only applies to the status of your plan under the Internal 

Revenue Code and is not a determination on the effect of other federal or local 

statutes. To use this letter as proof of the plan's status, you must keep this 

letter, the application forms, and all correspondence with us about your 

application. 

Your determination letter does not apply to any qualification changes that 

become effective, any guidance issued, or any statutes enacted after the dates 

specified in the Cumulative List of Changes in Plan Requirements (the 

Cumulative List) for the cycle you submitted your application under, unless the 

new item was identified in the Cumulative List. 

Your plan's continued qualification in its present form will depend on its 

effect in operation (Section 1.401-l(b) (3) of the Income Tax Regulations). We 

may review the status of the plan in operation periodically. 

You can find more information on favorable determination letters in Publication 

794, Favorable Determination Letter, including: 

The significance and scope of reliance on this letter, 

The effect of any elective determination request in your application 

materials, 

The reporting requirements for qualified plans, and 

Examples of the effect of a plan's operation on its qualified status. 

You can get a copy of Publication 794 by visiting our website at 

www.irs.gov/formspubs or by calling 1-800-TAX-FORM (1-800-829-3676) to request 

a copy. 

This determination letter applies to the amendments dated on 

1/8/15 & 7/28/14. 

This determination letter also applies to the amendments dated on 

Letter 5274 

0159
-2-

BOARD OF TRUSTEES SHEET METAL 

10/30/13 & 9/23/13. 

We made this determination on the condition that you adopt the proposed 

amendments you submitted in your letter dated 11/11/15, on or 

before the date the Income Tax Regulations provide under Section 401(b) of the 

Internal Revenue Code. 

You can't rely on this letter after the end of the plan's first five-year 

remedial amendment cycle that ends more than 12 months after we received the 

application. This letter expires on January 31, 2020. This letter considered 

the 2013 Cumulative List of Changes in Plan Qualification Requirements. 

The information on the enclosed addendum is an integral part of this 

determination. Please be sure to read it and keep it with this letter. 

If you submitted a Form 2848, Power of Attorney and Declaration of 

Representative, or Form 8821, Tax Information Authorization, with your 

application and asked us to send your authorized representative or appointee 

copies of written communications, we will send a copy of this letter to him or 

her. 

If you have any questions, you can contact the person listed at the top of this 

letter. 

Sincerely, 

Karen D. Truss 

Director, EP Rulings & Agreements 

Addendum 

Letter 5274 

0160
-3-

BOARD OF TRUSTEES SHEET METAL 

This determination letter does not apply to any portions of the document that 

incorporate the terms of an auxiliary agreement (collective bargaining, 

reciprocity, or participation agreement), unless you append to the plan 

document the exact language of the sections that you incorporated by reference. 

This determination letter is also applicable for the amendments adopted on 

4/18/13, 4/14/11 and 1/6/11. 

Letter 5274 

0161