ARIZONA BRICKLAYERS’ PENSION TRUST FUND

________________________________________________

APPLICATION FOR APPROVAL OF

SUSPENSION OF BENEFITS

UNDER THE

MULTIEMPLOYER PENSION REFORM ACT OF 2014

________________________________________________

SEPTEMBER 30, 2020

NOVARA, TESIJA & CATENACCI, PLLC

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SECTION 1. BACKGROUND AND PROCEDURE

The Board of Trustees of the Arizona Bricklayers’ Pension Trust Fund (the “Plan”) submits 

this application and the accompanying Exhibits to the Secretary of the Treasury for approval of a

proposed suspension of benefits. A contemporaneous application for partition is being filed by the 

Plan with the Pension Benefit Guaranty Corporation (“PBGC”). The application is made pursuant 

to Internal Revenue Procedure 2017-43 (the “Revenue Procedure”) and the Department of the 

Treasury’s final regulations issued under §432(e)(9) of the Internal Revenue Code of 1986, as 

amended, (the “Code”) as published in the Federal Register on April 28, 2016 (the “Regulations”). 

Under §432(e)(9)(G) of the Code the Secretary of the Treasury shall approve an application 

for the suspension of benefits upon finding that the Plan is eligible and has satisfied the criteria of 

subparagraphs (C), (D), (E) and (F) of §432(e)(9) of the Code. As set out in detail below, the Plan 

is eligible to suspend benefits and has satisfied each of the criteria under the Code and the

Regulations. 

SECTION 2. APPLICATION PROCEDURES

2.01 Application submitted by plan sponsor.

This Application for Approval of Suspension of Benefits under the Multiemployer Pension 

Reform Act of 2014 (the “Application”) is submitted by the Plan Sponsor, as defined at §432(j)(9) 

of the Code, as required under the Regulations. The Application is signed by the current Chairman 

and Secretary of the Board of Trustees of the Plan who are so authorized under the Plan’s 

agreement and declaration of trust and the letter of authorization executed by the full Board of 

Trustees for purposes of the Application. 

2.02 Term of the plan’s proposed suspension of benefits.

(1) Effective date.

The Trustees of the Plan propose that the suspension be effective (the “Effective Date”),

after the application has been approved and the result of the participant vote has been determined, 

on January 1, 2022.

(2) Expiration date.

The proposed suspension shall remain in effect indefinitely. It will not expire by its own 

terms. 

(3) The proposed suspension.

Description of Proposed Suspension

The proposed benefit suspension shall be accomplished by recalculating all accrued 

benefits and applying a maximum reduction in benefits to 110% of the PBGC guarantee amount. 

No special groups of participants or beneficiaries will be treated differently other that as required 

by law so that:

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• Disability based benefits will not be reduced;

• Participants or beneficiaries who are at least 80 years of age on January 31, 2022, will have 

no reductions; and

• Participants or beneficiaries who are between 75 and 80 years of age on January 31, 2022, 

will have a smaller benefit reduction.

2.03 Penalties of perjury statement. See, Exhibit 3.

2.04 Public disclosure statement. See, Exhibit 3.

SECTION 3. DEMONSTRATION THAT THE PLAN IS ELIGIBLE FOR SUSPENSION

3.01 Plan actuary’s certification of critical and declining status.

The Plan actuary’s required certification (issued March 30, 2020) is found at Exhibit 4 to 

the Application as required under Code §432(b)(3)(A). The Plan is certified as being in critical 

and declining status for the Plan Year beginning January 1, 2020. The certification is supported 

by the January 1, 2019 actuarial valuation report (issued May 5, 2020, and found at Exhibit 30)

and the actuary’s supporting illustrations attached to the required certification is found at Exhibit 

5, which includes a year-by-year projection of the Plan’s available resources and the benefits under 

the Plan demonstrating that the Plan is projected to become insolvent during the Plan Year ending 

December 31, 2039. The certification includes descriptions of the assumptions and methods 

applied, with reference to further detail in the January 1, 2019, actuarial valuation report. The yearby-year projection information separately identifies (1) the market value of assets as of the 

beginning and end of the Plan Years ending December 31, 2019, through December 31, 2039, and 

the following cash-flow items for those years: (2) employer contributions, (3) withdrawal liability 

payments, (4) benefit payments, (5) expenses, and (6) investment income. Additionally, the 

summary of assumptions includes projected total contribution base units for the period from Plan 

Year ending December 31, 2019, through December 31, 2039. Additional information regarding 

the assumptions used in the projections supporting the 2020 critical and declining status 

certification is found at Exhibit 6, Report of Required Actuarial Information. 

3.02 Plan actuary’s certification that the plan is projected to avoid insolvency.

Exhibit 7 is the Plan actuary’s projection that the Plan, with the suspension as described 

above and partition ordered as requested from PBGC will avoid insolvency. Supplementing the 

projections and providing the required certification is Exhibit 6 the Plan actuary’s Report of 

Required Information which sets forth all of the required supporting illustrations and assumptions. 

The certification and supporting projections satisfy the requirements of Code §432(e)(9)(C)(i) by 

providing a year-by-year projection demonstrating that, with the proposed partition and suspension 

taking effect on January 1, 2022, the Plan is projected to avoid insolvency within the meaning of 

Code §418E. The supporting exhibits also separately identify the available resources during each 

year and the market value of assets and changes in cash flow.

3.03 Plan sponsor’s determination of projected insolvency.

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The Trustees of the Plan have made a prudent determination under Code §432(e)(9)(C)(ii), 

after consideration of all of the available information and all remaining possible Plan changes, that 

the Plan is projected to become insolvent unless a partition is ordered and benefits are reduced as 

proposed in the Application. The Trustees have determined this to be so even though they have 

taken all reasonable measures to avoid insolvency. The Trustees’ determination of projected 

insolvency includes consideration of all of the measures taken to avoid insolvency over the past 

10 plan years, as discussed in Section 3.04 of this Application.

Notwithstanding the actions taken as described here and in other parts of this Application, 

the Plan’s funded status has continued to decline. As reported in the 2020 actuarial PPA status 

certification, the Plan’s 2020 PPA funded ratio is 92.2% with a projected year of insolvency of 

2039. 

The Trustees have now prudently determined that notwithstanding their past and possible 

future actions, the Plan cannot be projected to avoid insolvency if the proposed partition and

suspension of benefits is not approved and applied to the Plan.

3.04 Consideration of Specific Plan Factors.

(1) The determination that all reasonable measures have been taken to avoid insolvency 

includes the consideration of the Plan factors specified in Section 432(e)(9)(C)(ii)

for the 10 plan years immediately preceding 2020.

(a) Current and past contribution levels.

The Plan consists of employers in the masonry industry, which declined significantly 

during the great recession and has not yet fully recovered. Eventual recovery remains uncertain. 

The significant decline in the industry caused a reduction in the number of employers and active 

participants in the Plan from 30 to 10 employers and 579 to 54 active participants from 2007 to 

2019. This includes two large employers that left the Plan to continue as "non-union" employers. 

As a result, there are insufficient contributions to the Plan to sustain the plan at a healthy level as 

required by ERISA and the Code. See Exhibit 6 for a summary of past and current contribution 

levels over the most recent 10 years. 

(b) Levels of benefit accruals including any prior reductions in the rate of benefit 

accruals. 

The current benefit accrual level is $30 per month per year of service. This rate was reduced 

from $43 effective for benefit accruals January 1, 2007 and after. The Board determined that 

further reducing the benefit accrual level and further eliminating adjustable benefits would leave 

very little incentive for participants to remain union employees and would therefore have a 

detrimental impact on the Plan’s future funding.

(c) Prior reductions of adjustable benefits under Section 432(e)(8).

The benefit reductions in the Rehabilitation Plan include almost all adjustable benefit 

reductions.

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(d) Prior suspension of benefits under Section 432(e)(9).

This factor is not applicable as the Plan has not had a prior suspension of benefits under 

Section 432(e)(9).

(e) Measures taken to retain or attract contributing employers.

The Trustees’ view is that having no future planned contribution rate increases is the only 

option to retain contributing employers without negatively impacting the Plan’s future funding.

(2) The impact on plan solvency of the subsidies and ancillary benefits available to 

active participants.

As noted above, almost all adjustable benefits have been eliminated under the 

Rehabilitation Plan. 

As of March 31, 2015, the Plan was not certified to be in critical status for that plan year 

but was projected to be in critical status in one or more of the subsequent five plan years. For plan 

year January 1, 2015 through December 31, 2015, the Plan did not elect critical status.

By the next plan year, it became fully clear that the Plan’s decreasing funding levels 

required action beyond that available to the Trustees absent election of critical status and utilization 

of the tools the PPA provides. The Plan was first certified to be in critical status as of March 30, 

2016. On May 5, 2016, the Trustees adopted a Rehabilitation Plan, implementing all reasonable 

measures for the purpose of attempting to emerge from critical status and to avoid insolvency, 

consisting of benefit changes. 

The 2016 Rehabilitation Plan, the 2019 Update to the plan, associated schedules and 

correspondence are attached as Exhibit 8. A summary is provided here.

Rehabilitation Plan Adopted May 5, 2016

Preferred Schedule (elected by all employers)

Benefit Changes:

• Changed eligibility for disability benefit to require participant to have worked 1,000 or 

more hours in Covered Employment for a signatory contractor in the 12-months prior to 

onset of disability.

• Changed early retirement factors to actuarial equivalent factors.

• Eliminated pre-retirement death benefit.

• Eliminated post-retirement 36-month guarantee feature.

• Changed delayed retirement factors to actuarial equivalent factors.

• Changed optional form factors to actuarial equivalent factors.

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Contribution Increases:

• None.

Default Schedule (not elected or imposed on any employer)

Benefit Changes:

• Reduced future benefit accrual rate to $9 per pension credit.

• Eliminated disability benefit.

• Changed early retirement factors to actuarial equivalent factors.

• Eliminated pre-retirement death benefit.

• Eliminated post-retirement 36-month guarantee feature.

• Changed delayed retirement factors to actuarial equivalent factors.

• Changed optional form factors to actuarial equivalent factors.

Contribution Increases:

Required contribution rate increase of $3.85 per hour.

Although the Trustees made significant plan changes, the Plan’s actuary determined that if 

all adjustable benefits were eliminated and future accrual rates were reduced to 1.00% of the 

contribution level, hourly contribution rates would need to increase from $0.90 to $4.75 per hour 

over the 10 year rehabilitation period to enable the Plan to emerge from critical status by the end 

of that period. Given the demographics of the Plan’s remaining employers and the nature of the 

masonry industry in Phoenix, the Trustees determined that the actuarially required contribution 

rate increases would in fact harm the Plan by making employers uncompetitive when bidding for 

work, resulting in still fewer hours for the remaining active employers. Contribution increases, the 

Trustees reasoned, would also precipitate further employer withdrawals and bankruptcies. 

Therefore, the preferred schedule maintained the $0.90 contribution rate (while the default 

schedule required substantial increases). Additionally, the Trustees determined that the 

elimination of all adjustable benefits would leave the remaining active participants with little or 

no reason to remain union employees. 

Notwithstanding the measures described above and given the poor 2018 investment 

performance, for plan years 2019 and 2020, the Plan was certified to be in critical and declining 

status. Again, the Trustees determined that based on reasonable assumptions and the exhaustion 

of all reasonable measures the Plan could not reasonably be expected to emerge from critical status 

by the end of the rehabilitation period or at a later time, and so resolved to implement additional 

reasonable measure to avoid insolvency. This determination was documented in the update to the 

Rehabilitation Plan for the 2019 plan year, which is included in Application Exhibit 8. 

As noted above, substantially all adjustable benefits have been eliminated under the 

rehabilitation and ARM plans. The Trustees have reasonably and prudently determined that 

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elimination of additional benefits would make it impossible to maintain sufficient employee 

participation to staff upcoming work, which otherwise would lead to a further decline in 

contribution hours, hastening the Plan’s insolvency.

(3) Compensation levels of active participants relative to employees in the participants’ 

industry generally.

See, Exhibit 9, Brickmasons and Blockmason OES Data 2019. The CBA rates applicable 

to the remaining active participants in the plan compare appropriately to national wage data.

(4) Competitive and other economic factors facing contributing employers.

See above, and See, Exhibit 10, Narrative Statement of Reasons Plan is in Critical and 

Declining Status). 

How Plan factors were taken into account/other factors considered

- The impact of benefit and contribution levels on retaining active participants and 

bargaining groups under the plan.

With reference to the description above, the Trustees observe that current active 

participants are making significant wage package allocations to the Plan but are accruing future 

pension benefits at $30 per month per year of service. Any further increase in the contribution rate 

would likely result in employer withdrawals and a loss of bargaining unit members for whom Plan 

contributions will be required.

- The impact of past and anticipated contribution increases under the plan on 

employer attrition and retention levels.

With reference to the description above, there is no intention to increase the required 

contribution rate in the foreseeable future, as such an action is reasonably anticipated to have a 

significant detrimental impact on the Plan’s future funding. 

SECTION 4. DEMONSTRATION THAT THE PLAN’S PROPOSED SUSPENSION 

SATISFIES THE STATUTORY REQUIREMENTS

4.01 Demonstration that limitations on individual suspensions are satisfied.

Exhibit 11 contains sample calculations that demonstrate how the proposed suspension 

satisfies the limitations described in Code §432(e)(9)(D)(i), (ii) and (iii). Section 4.01 of the 

Revenue Procedure requires information demonstrating that certain statutory limitations with 

respect to the proposed suspension are satisfied. The limitations set forth in Section 4.01 are 

satisfied based upon the following (summarized) individual demonstrations.

Guarantee-based Limitation

The proposed suspension does not reduce the benefit of any participant or beneficiary to 

an amount that is less than 110% of the PBGC guarantee. 

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If a participant’s benefit has been split with an alternate payee under the terms of a qualified 

domestic relations order (QDRO), the determination of the guaranteed level for both parties is 

based on the terms of the QDRO. Generally, if the QDRO provides the alternate payee a shared 

interest with the participant, the participant’s total benefit is used for purposes of determining the 

guaranteed amount for both parties. If the QDRO provides a separate interest for the alternate 

payee, the alternate payee’s separate benefit level is used to determine the guaranteed amount. 

Age-Based Limitation

The proposed suspension does not affect any participant or beneficiary who will be age 80 

or older as of January 31, 2022 (the end of the month in which the January 1, 2022 effective date 

of the proposed suspension occurs). The proposed suspension only partially affects any participant 

or beneficiary who will be age 75-79 as of January 31, 2022 (with proportionally more of the 

current benefit being protected the closer the participant or beneficiary is to age 80). 

In the event that the age-based limitation applies to a participant that has a QDRO, then the 

type of QDRO will determine whether the Pension Plan uses the participant’s or alternate payee’s 

age. If the QDRO provides the alternate payee a shared interest with the participant, then the 

participant’s age is used for purposes of applying the age-based limitation as of the proposed 

suspension’s effective date. Alternatively, if the QDRO provides a separate interest for the 

alternate payee, then the alternate payee’s age is used to determine the application of the age-based 

limitation. If there are multiple QDROs with multiple alternate payees, the determination of whose 

age to use is determined separately for each applicable QDRO.

The application of the age-based limitation for a participant who elected a joint and 

survivor benefit is based on the age of the participant as of January 31, 2022, unless he or she is 

deceased, in which case the surviving spouse’s age is used to determine the application of the agebased limitation.

Section 4.01(3) of revenue procedure 2017-43 requires submission of sample calculations 

for each group defined in Checklist Item #2 that includes an individual who is over age 75 (as of 

January 31, 2022). 

Section 4.01(3)(c) of revenue procedure 2017-43 requests submission of sample 

calculations on individuals who are between age 75 and 79 but have not commenced benefits. 

However, all plan participants satisfying the preceding criteria are past their IRC section 401(a)(9) 

required beginning date and ARE treated as being in pay status retroactive to such date. 

Disability-based Limitation

The proposed suspension does not affect any disability benefit that is in pay status as of 

January 1, 2022. Furthermore, if a disabled participant has converted to a retirement benefit on or 

prior to January 1, 2022, such participant’s benefit will not be reduced below the amount of the 

disability benefit he or she was receiving immediately prior to conversion.

Sample Calculations

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The sample calculations required by Section 4.01 of the Revenue Procedure are found at 

Application Exhibit 11. Note that:

• There are no ERISA 4022A(a) forfeitable benefits,

• There are no ERISA 4022A(b)(1)(A) benefit increases that have been in effect for less than 

60 months,

• The limitations contained in ERISA 4022A(c)(2) have been reflected in the guaranteebased calculations,

• There have been no ERISA 4022A(d) benefit reductions made pursuant to Code section 

411(a)(3)(E) (related to service with an employer rendered prior to such employer’s 

obligation to contribute to the plan where such employer subsequently ceases to have an 

obligation to contribute), and

• The ERISA 4022A(e) exclusion does not apply as the Secretary of the Treasury has not

determined that the plan fails to satisfy the requirements of Code sections 401(a) or 

404(a)(2).

A list of the required exhibits appears below:

1. Individual currently receiving benefits below 110% PBGC Guarantee (including 

contingent beneficiary)

2. Individual currently receiving benefits reduced to 110% PBGC Guarantee (including 

contingent beneficiary)

3. Individual currently receiving benefits between age 75 and 80 (including contingent 

beneficiary)

4. Individual currently receiving benefits over age 80 (including contingent beneficiary)

5. Individual currently receiving benefits based on disability (including contingent 

beneficiary)

6. Future retiree reduced to 110% PBGC Guarantee

7. Future retiree between age 75 and 80 

8. Future disabled retiree 

4.02 Demonstration that the proposed suspension is reasonably estimated to enable the plan to 

avoid insolvency.

(1) Deterministic Illustrations

Exhibits 6 and 7 contain the Plan Actuary’s Certification that the Plan is Projected to 

Avoid Insolvency under IRC §432(e)(9)(C)(i) as of the Proposed Benefit Suspension Effective 

Date of January 1, 2022. This certification includes a demonstration pursuant to Code 

§432(e)(9)(D)(iv) that the proposed suspension is reasonably estimated to enable the Plan to avoid 

insolvency. 

The Certification contains a year-by-year projection demonstrating that the Plan is 

projected to avoid insolvency within the meaning of Code §418E for the extended period with the 

proposed suspensions going into effect on January 1, 2022. It also contains illustrations as to the 

AZ BRK 000009
Plan’s solvency ratio and available resources for each year of the extended period. The reports 

associated with the Certification provide supporting illustrations including a year-by-year 

solvency projection which demonstrates that, absent the partition and proposed benefit 

suspensions, the Plan will become insolvent in the plan year ending December 31, 2035. The 

supporting illustrations also demonstrate that the Plan will avoid insolvency with the partition and 

proposed benefit suspensions taking effect January 1, 2022. The illustrations separately identify 

the market value of assets, contributions, investment earnings, benefit payments and plan 

expenses. The Actuarial Certification and the supporting illustrations are based upon the actuary’s

interpretation of the requirements under Revenue Procedure 2017-43, Section 3.02.

(2) Stochastic Illustrations

The Plan is not required to appoint a retiree representative under § 432(e)(9)(B)(v)(I), and 

is therefore not required to provide a stochastic illustration that it will avoid insolvency.

Application Exhibit 6 describes the actuarial assumptions and methodology used in the 

reports filed with this application, as required under Revenue Procedure 2017-43, Section 4.02(3). 

4.03 Demonstration that the proposed suspension is reasonably estimated to not materially 

exceed the level necessary to avoid insolvency

Pursuant to the Final Regulation, if the PBGC issues an order partitioning the Plan as 

requested, then the proposed suspension of benefits with respect to the Plan will be deemed to not 

materially exceed the level that is necessary to avoid insolvency.

4.04 Demonstration that the proposed benefit suspension is distributed equitably.

(1) Effect of Proposed Suspension on the Plan in the Aggregate

The proposed benefit suspension does specifically provide for different treatment of 

discrete groups of participants and beneficiaries because, in conjunction with the requested 

partition, the suspension reduces all participants’ and beneficiaries’ benefit to 110% of their PBGC 

guarantee amount. The reduction therefore is distributed in an equitable manner across the Plan’s 

participant and beneficiary population as required pursuant to Code §432(e)(9)(D)(vi). The impact 

of the level cut are shown in Exhibit 12, Equitable Distribution Analysis.

(2) Effect of Proposed Suspension on the Plan on a Group-by-Group Basis

The Exhibit further shows the distribution of participants by benefit reduction percentage 

on an aggregate basis as required by sub-section 4.04(1)(b) of the Revenue Procedure.

(3) Identification of Statutory Factors Taken into Account

The nature of the suspension – an across the board reduction to 110% of each 

participant’s PBGC guarantee amount – does not provide for different treatment for different 

participants and beneficiaries (other than as a result of application of MPRA’s individual 

limitations), and so individual statutory factors that could justify such different treatment are not 

implicated.

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4.05 Notice.

The Trustees have satisfied the notice requirements of Code §432(e)(9)(F) as follows:

(1) Notices.

Exhibits 13 and 14 to the Application are, respectively, the general and individual notices

that will be provided to each participant and beneficiary under the Plan, as well as (with respect to 

the general notice only) to each employer that has an obligation to contribute to Plan and to each 

employee organization representing participants in the Plan. 

(2) Efforts made to contact participants, beneficiaries and alternate payees.

The Board of Trustees has compiled complete and up-to-date records of the Plan’s 

participants and beneficiaries. If an address is found to be invalid, it will be referred to the Plan’s 

third-party administrator (Southwest Service Administrators, Inc. or “SSA”) which would refer 

the it to the Berwyn Group, the entity used by SSA to monitor participant death records and locate 

missing participants. SSA also conducts searches using on-line search tools.

(3) Notices will not be delivered electronically.

(4) Lists of:

(a) Each employer that has an obligation to contribute to the Plan within the 

meaning of section 4212(a) of ERISA.

A list of the contributing employers that have an obligation to contribute to the Plan within 

the meaning of §4212(a) of ERISA is attached as Exhibit 15.

(b) Employee organization representing participants under the plan.

The employee organization representing participants under the Plan is the Bricklayers and 

Allied Craftworkers Union Local No. 3, Arizona, New Mexico and Texas. 

SECTION 5. PLAN SPONSOR DETERMINATION RELATING TO REASONABLE 

MEASURES TAKEN TO AVOID INSOLVENCY

5.01 Measures taken to avoid insolvency.

See, discussion in Section 3.03 and 3.04, above, and the Narrative Statement (Exhibit 10).

5.02 Plan factors.

See, discussion in Section 3.03 and 3.04, above, and the Narrative Statement (Exhibit 10).

5.03 How plan factors were taken into account.

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2020 45,000 6,000 35% $61,965

2021 and 2022 50,000 6,000 40% $70,560

2023 and later 50,000 0 40% $63,000

Avg. contribution rate $0.90 per hour $0.90 per hour N/A N/A

Hours data is now available for June and July, as follows:

Type June July 7-month Total

Non-Refractory 3,639 3,264 27,583

Refractory Only 988 386 4,092

Reciprocal 909 415 3,507

Total 5,535 4,065 35,181

These data are not “level” month-to-month, but certainly bear out the Trustees’ 

assumptions about reduced refractory work in general and the short-term impact on all workhours

due to Covid-19 and the related disruptions. 

The Trustees view this information as providing an objective foundation for the assumption 

for refractory work at an average of 500 hours per month or, 6,000 per year through 2022. The 

refractory hour assumption of zero going forward is, again, a function of the Trustees’ 

understanding of the continual decline of that work, as well as a reasonable actuarial assumption 

due to the essential unreliability/unpredictability of the work. In terms of the reasons for the 

reduction of refractory work the Trustees note that such work is accomplished using large, very 

hot, industrial furnace in which heavy and precious metals are heated. This process creates a 

significant environmental impact and the utilization of refractory work is therefore increasingly 

constrained by environmental regulation in turn driven by climate change political considerations. 

Accordingly, as a result of the uncertain nature of the refractory work and the resulting permanent 

decline of it, the Trustees, after consulting with the Plan’s actuary, do not feel that it is prudent to 

rely on these continued hours in the solvency projections. To summarize, while some refractory 

workhours may continue to be seen past 2022, the anticipated level simply cannot be quantified 

with any reliability beyond observing that it has been and will continue to decline, and so the 

decision was made to treat post 2022 refractory hours as 0 for purposes of the assumptions for the 

application.

The cash flow from the projected level of contribution base units will not permit the Plan 

to avoid insolvency. Cash flow analysis is provided in the required actuarial information included 

with this application.

At the time the Plan first was certified to be in critical status and adopted a Rehabilitation 

Plan (2016) it was noted that in the period 2007 to 2015 the decline in the masonry industry caused 

a reduction in the number of employers participating in the Plan from 30 to 10. This drop included 

the withdrawal of two of the largest contributing employers which left the Plan in order to continue 

in operation as non-union companies. In the same period the number of active participants in the 

plan declined from 579 to 33. As reported in the Plan’s most recent Actuarial Valuation Report 

(January 1, 2019, issued May 5, 2020), the current population of the Plan is 680 total participants 

(300 terminated vested, 217 retirees, 42 disabled participants, and 67 beneficiaries including 11 

alternate payees) of which only 54 are active. This extreme imbalance between actives and nonAZ BRK 000014
actives, the massive reduction in contribution cash flows, the market forces that resulted in the 

significant asset losses in 2008 and the sporadic recovery thereafter, have left the Plan in critical 

and declining status and facing a first plan year of insolvency beginning January 1, 2035.

6.04 Ten-year experience for certain critical assumptions.

Application Exhibit 6 provides the Plan's experience for certain critical assumptions 

including a disclosure for each of the 10 plan years immediately preceding the submission of this 

Application separately identifying, in accordance with Section 6.04 of the Revenue Procedure:

• Total contributions; 

• Total contribution base units; 

• Average contribution rates; 

• Withdrawal liability payments; and 

• Rate of return on plan assets.

6.05 Demonstration of sensitivity projections.

Application Exhibit 19 contains the Plan actuary’s Demonstration of Sensitivity of 

Projections as required under Section 6.05 of the Revenue Procedure, which requires inclusion of 

deterministic projections of the sensitivity of the Plan’s solvency ratio throughout the extended 

period by taking into account alternate assumptions of investment experience and future 

contribution base units than assumed in other parts of this Application. 

These demonstrations satisfy Section 6.05 of the Revenue Procedure.

6.06 Projection of funded percentage.

Application Exhibit 7 contains the Deterministic Projection of Assets, Liabilities, and 

Funded Percentage prepared by the Plan’s actuary and includes deterministic projections for each 

year in the extended period of the value of the Plan's assets, its accrued liability, and its funded 

percentage. The report projects the Plan's funded percentage using the value of Plan assets and 

accrued liabilities during the extended period of December 31, 2019 through December 31, 2052. 

The projections included are without and with the impact of benefit suspensions.

This exhibit satisfies the requirements of Section 6.06 of the Revenue Procedure.

6.07 Plan sponsor certifications relating to Plan amendments.

See, Exhibit 20 for the Trustees’ certification that if they receive final authorization to 

implement the suspension of benefits as described in Code §432(e)(9)(H)(vi), and choose to 

implement the authorized suspensions they will adopt, in a timely manner, the following Plan 

amendments which shall not be modified at any time thereafter before the suspension of benefits 

expires:

(1) in accordance with Code §432(e)(9)(C)(ii) a Plan amendment providing that the 

benefit suspension will cease as of the first day of the first plan year following the plan year in 

which the Trustees fail to determine that both: (a) all reasonable measures to avoid insolvency 

AZ BRK 000015
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; and

(2) a Plan amendment providing that any future benefit improvements must satisfy the 

requirements of Code §432(e)(9)(E).

6.08 Whether the Plan is a plan described in §432(e)(9)(D)(vii).

The Plan is not a plan described in Code §432(e)(9)(D)(vii).

6.09 Narrative statement.

See, Exhibit 10.

SECTION 7. IDENTIFICATION AND BACKGROUND INFORMATION ON THE PLAN

7.01 Plan sponsor.

The Plan sponsor is the Board of Trustees of the Arizona Bricklayers’ Pension Trust Fund. 

The address of the Board is P.O. Box 43170, Phoenix, AZ, 85080-3170. The Telephone number 

is (602) 324-0545. The Board does not have a separate Employer Identification Number (EIN).

7.02 Plan identification.

The name of the Plan is the Arizona Bricklayers’ Pension Trust Fund. The Plan has been 

assigned Plan Number 001. Its Employer Identification Number (EIN) is 51-619487. The Plan is 

a multiemployer plan within the meaning of Code §414(f) and ERISA §3(37).

7.03 Retiree representative.

The Plan is not required to and has not appointed a retiree representative. 

PBGC Participant and Plan Sponsor Advocate Contact Information 

Constance Donovan, PBGC, 1200 K Street, NW, Washington, DC 

20005-4026 Email: Advocate@pbgc.gov

Phone: (202) 229-4448

7.04 Plan’s enrolled actuary.

The Plan’s enrolled and certifying actuary for all actuarial calculations contained in this 

filing is

Name of Actuary: Kevin M. Campe

Enrollment Number: 20-05356

Contact Information

Address: Milliman, Inc.

71 South Wacker Drive, 31st Floor

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Chicago, Illinois 60606

Phone: (312) 726-0677

Mobile: (847) 912-0837

Email: kevin.campe@milliman.com

7.05 Power of attorney.

See, Exhibit 21. The Plan’s representatives as attorney-in-fact are Paul O. Catenacci and 

Paul M. Newcomer of Novara, Tesija & Catenacci, PLLC.

7.06 Plan documents.

See, Exhibit 22 for the Plan’s most recently restated plan document; Exhibit 23 for Plan 

amendment 1; Exhibit 24 for plan amendment 2; Exhibit 25 for the Plan’s current summary plan 

description; and Exhibit 26 for the most recent determination letter issued to the Plan by the IRS.

7.07 Collective bargaining and side agreements.

See, Exhibit 27, for excerpts from the collective bargaining agreements and side 

agreements pursuant to which the Plan is maintained, including language from any portions of a 

collective bargaining agreement or side agreement that are relevant to the Plan or proposed 

suspension.

7.08 Annual return.

See, Exhibit 28 for the following sections of the Plan’s most recently filed form 5500: (1) 

pages 1 and 2 of Form 5500, (2) Schedule MB, including attachments, (3) Schedule R, with 

attachments, and (4) accountant’s report under section 103(a)(3) of ERISA.

7.09 Rehabilitation plan.

See, Exhibit 8 for a copy of the Plan’s most recently updated rehabilitation plan.

7.10 Valuation reports.

See, Exhibits 29 and 30 for the January 1, 2018, and January 1, 2019 Actuarial Valuation 

Reports for the Plan, respectively.

7.11 Completed checklist.

See, Exhibit 1 for the completed checklist of information required to be included in the 

Plan’s Application. 

AZ BRK 000017
The Trustees appreciate Treasury's review of this important matter for the Plan. Should

you have any questions or require any additional information please contact Paul O. Catenacci or 

Paul M. Newcomer at T: (248) 354-0380.

ARIZONA BRICKLAYERS’ PENSION TRUST FUND

See Exhibit 2 Cover Letter and signatures of Plan Sponsor

AZ BRK 000018
ARIZONA BRICKLAYERS’ PENSION TRUST FUND

APPLICATION FOR APPROVAL OF SUSPENSION OF BENEFITS UNDER THE 

MULTIEMPLOYER PENSION REFORM ACT OF 2014

CHECKLIST

Response Item 

number

Description of item Page number

in 

application

Yes 1. Does the application include an original signature of the plan sponsor or an 

authorized representative of the plan sponsor? See section 2.01 of this revenue 

procedure.

000019

Yes 2. Does the application include a description of the proposed benefit 

suspension – calculated as if no other limitations apply – that includes:

• the suspension’s effective date (and its expiration date, if 

applicable),

• whether the suspension provides for different treatment of 

participants and beneficiaries,

• a description of the different categories or groups of individuals 

affected, and

• how the suspension affects these individuals differently? See 

section 2.02 of this revenue procedure.

000002

Yes 3. Does the application include a penalties-of-perjury statement signed by an 

authorized trustee on behalf of the board of trustees? See Section 2.03 of

this revenue procedure.

000020

Yes 4. Does the application include a statement, signed by an authorized trustee on behalf 

of the board of trustees, acknowledging that the application and the application’s 

supporting material will be publicly disclosed on the

Treasury Department’s website? See section 2.04 of this revenue procedure.

000020

Yes 5. Does the application include the plan actuary’s certification of critical and 

declining status and the supporting illustrations, including:

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

insolvency during the relevant period, and

• separately identifying the available resources (and the market value 

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

See section 3.01 of this revenue procedure.

000021

Yes 6. Does the application include the plan actuary’s certification that, taking into 

account the proposed suspension and, if applicable, a proposed partition, the plan 

is projected to avoid insolvency if the suspension takes effect, and the supporting 

illustrations, including:

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

solvency during the relevant period,

• separately identifying the available resources (and the market value 

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

See section 3.02 of this revenue procedure.

000027

Yes 7. Does the application include the plan sponsor’s determination of projected

insolvency that includes the documentation set forth in section 5 of the 

revenue procedure? See section 3.03 of this revenue procedure.

000003
Yes 8 Does the application include a demonstration that the limitations on individual 

suspensions are satisfied, including a description of each benefit based on 

disability, as defined under the plan, that is paid to an individual under the plan 

(without regard to whether the disability benefits are available to newly disabled 

participants) and calculations regarding:

• the guarantee-based limitation,

• the disability-based limitation,

• the age-based limitation, taking into account the guarantee-based 

limitation, and

• if applicable, the age-based limitation taking into account both the 

guarantee-based limitation and the disability-based limitation?

See section 4.01 of this revenue procedure.

000095

Yes 9. Does the application include a demonstration that the proposed suspension is 

reasonably estimated to achieve the level necessary to avoid insolvency for the 

extended period, including illustrations regarding

the plan’s solvency ratio and available resources? See section 4.02(1) of this 

revenue procedure.

000021

Yes 10. Does the application include an illustration that the proposed suspension is 

reasonably estimated to achieve the level necessary to avoid insolvency for the 

extended period utilizing stochastic projections? (This illustration is optional if the 

plan is not required to appoint a retiree representativeunder

§ 432I(9)(B)(v)(I).) See section 4.02(2) of this revenue procedure.

N/A

Yes 11. Does the application include a demonstration that the proposed suspension is 

not projected to materially exceed the level necessary to avoid insolvency, 

including:

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

insolvency during the relevant period, and

• a separate identification of the available resources (and the market 

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

See section 4.03 of this revenue procedure.

000010

Yes 12. Does the application include a demonstration that the proposed 

suspension is equitably distributed, including:

• information on the effect of the suspension on the plan in the 

aggregate,

• information on the effect of the suspension for different 

categories or groups,

• a list of the factors taken into account,

• an explanation of why none of the factors listed in

§ 432€(9)(D)(vi) were taken into account (if applicable),

• for each factor taken into account that is not one of the factors listed 

in § 432€(9)(D)(vi), an explanation why the factor is relevant, and

• an explanation of how any difference in treatment among 

categories or groups of individuals results from a reasonable 

application of the relevant factors?

See section 4.04 of this revenue procedure.

000103

Yes 13. Does the application include a copy of the notices (excluding personally 

identifiable information) that meet the requirements under § 432€(9)(F)? See 

section 4.05(1) of this revenue procedure.

000104

Yes 14. Does the application include a description of the efforts that are being taken 

to contact participants, beneficiaries in pay status, and alternate payees? See 

section 4.05(2) of this revenue procedure.

000011
Yes 15. Does the application describe the steps the plan sponsor has taken to ensure 

that notices delivered electronically are reasonably accessible to the recipients? 

See section 4.05(3) of this revenue procedure.

000011

Yes 16. Does the application include a list of each employer who has an obligation to 

contribute under the plan and each employee organization representing participants 

under the plan? See section 4.05(4) of this revenue

procedure.

000128

Yes 17. Does the application include information on past and current measures taken to 

avoid insolvency? See section 5.01 of this revenue procedure. 000011

000092

Yes 18. Does the application include information regarding the plan factors described in § 

432©(9)©(ii), for the past 10 plan years immediately preceding the plan year in 

which the application is submitted? See section

5.02 of this revenue procedure.

000015,

000028

Yes 19. Does the application describe how the plan sponsor took into account – or did not 

take into account – the factors listed in section 5.02 of this revenue

procedure in the determination that all reasonable measures were taken to avoid 

insolvency? See section 5.03 of this revenue procedure.

000011,

111192

Yes 20. Does the application describe how the plan sponsor took into account – or did 

not take into account – in the determination that all reasonable measures have 

been taken to avoid insolvency, the impact of:

• benefit and contribution levels on retaining activeparticipants and 

bargaining groups under the plan, and

• past and anticipated contribution increases under the plan on 

employer attrition and retention levels?

See section 5.03 of this revenue procedure.

000011,

000092

Yes 21. Does the application include a discussion of any other factors the plan sponsor 

took into account including how and why those factors were taken into account? 

See section 5.04 of this revenue procedure.

000011,

000092

Yes 22. Does the application include a copy of the proposed ballot, excluding the 

information regarding the statement in opposition, the individualized estimate, 

and the voting procedures? See section 6.01 of this revenue

procedure.

000130

N/A 23. Does the application indicate whether the plan sponsor is requesting

approval from PBGC of a proposed partition under section 4233 of ERISA? See 

section 6.02 of this revenue procedure.

000012

N/A 24. If the answer to item 23 is yes, does the application specify the effective date of 

the proposed partition and include a plan-year-by-plan-year projection of the 

amount of the reduction in benefit payments attributable to the partition? See 

section 6.02 of this revenue procedure.

000012,

000167

Yes 25. Does the application include:

• a description of each of the assumptions used in the projections required 

under sections 3.01, 3.02, 4.02(1), 4.02(2), and 4.03 of this revenue

procedure,

• supporting evidence for the selection of those assumptions, and

• an explanation of any differences among the assumptions used for 

various purposes?

See section 6.03 and Appendix B of this revenue procedure.

000028
Yes 26. Does the application describe the plan’s experience with certain critical 

assumptions, including a disclosure for each of the 10 plan years immediately 

preceding the application that separately identifies:

• the total contributions,

• the total contribution base units,

• the average contribution rates,

• the withdrawal liability payments, and

• the rate of return on plan assets? See 

section 6.04 of this revenue procedure.

000028

Yes 27. Does the application include deterministic projections of the sensitivity of the 

plan’s solvency ratio throughout the extended period by taking into account the 

more conservative assumptions of investment experience and

future contribution base units than assumed elsewhere in the application? See 

section 6.05 of this revenue procedure.

000168

Yes 28. Does the plan include deterministic projections for each year in the 

extended period of:

• the value of plan assets,

• the plan’s accrued liability, and

• the plan’s funded percentage? See 

section 6.06 of this revenue procedure.

000052

Yes 29. Does the application include the plan sponsor’s representation that, if it 

receives the Treasury Department’s final authorization to suspend and then 

chooses to implement the suspension, it will also amend the plan:

• to provide that the suspension will cease upon the plan sponsor’s failure 

to maintain a written record of its annual determinationthat

(i) all reasonable measures continue to be taken to avoid 

insolvency and (ii) the plan would not be projected to avoid 

insolvency without a suspension,

• to require that any future benefit improvements must satisfy

§ 432€(9)€, and

• to specify that the plan sponsor will not modify these amendments, 

notwithstanding any other provision of the plan document?

See section 6.07 of this revenue procedure.

000172

N/A 30. Does the application indicate whether the plan is a plan described in

§ 432€(9)(D)(vii) and, if it is, how that is reflected in the proposed benefit 

suspension? See section 6.08.

000016

Yes 31 Does the application include a narrative statement of the reasons the plan is in 

critical and declining status?

See section 6.09.

000092

Yes 32. Does the application include the required plan sponsor identification and 

contact information? See section 7.01 of this revenue procedure. 000016

Yes 33. Does the application include the required plan identification information? See 

section 7.02 of this revenue procedure. 000016

Yes 34. Does the application include the required retiree representative information (if 

applicable)? See section 7.03 of this revenue procedure. N/A

Yes 35. Does the application include the required enrolled actuary information? See 

section 7.04 of this revenue procedure. 000016
Yes 36. Does the application include a designation of power of attorney for each authorized 

representative who will represent the plan sponsor in

connection with the application? See section 7.05 and Appendix C of this revenue 

procedure.

000173

Yes 37. Does the application include:

• the required plan documents

• any recent amendments

• the summary plan description (SPD)

• any summary of material modifications, and

• the most recent determination letter? 

See section 7.06 of this revenue procedure.

000174

Yes 38. Does the application include the required excerpts from the relevant collective 

bargaining agreements and side agreements? See section 7.07

of this revenue procedure.

000337

Yes 39. Does the application include the required excerpts from the most recently filed 

Form 5500? See section 7.08 of this revenue procedure. 000394

Yes 40. Does the application include the most recently updated rehabilitation plan? See 

section 7.09 of this revenue procedure. 000060

Yes 41 Does the application include the two most recent actuarial valuation 

reports? See section 7.10 of this revenue procedure. 000461

Yes 42. Does the application include this checklist, completed and placed on top of the 

application? See section 7.11 of this revenue procedure and this

Appendix D.

0

N/A 43. If the application is being submitted for resubmission review, does the 

application include:

• cross-references to information in the prior application with 

respect to information that has not changed from the prior 

application,

• a statement that the application is being submitted for 

resubmission review, and

• the date on which the Treasury Department indicated that the 

application is a candidate for resubmission review?

See section 8 of this revenue procedure.

N/A