United Actuarial
Services, Inc.
’!e) Cansuih ants,

July 29, 2016

Board of Trustees
Sheet Metal Workers Local Pension Fund
Akron, OI

Re: 2016 Actuarial Certification Under the Pension Protection Act

Dear Trustees:

The following information is intended to comply with the annual certification requirements of
IRC section 432, with respect to the funded status of the Sheet Metal Workers’ Local Pension

Fund,

Identifying Information

Plan Name: Sheet Metal Workers’ Local Pension Fund

EIN/Plan #: 34-6666753/001
Plan year of Certification: year beginning May 1, 2016
Plan Sponsor: Board of Trustees of the Sheet Meta! Workers’ Local Pension Fund

Sponsor Address: 700 Tower Drive, Suite 300, Troy, MI 48098
Sponsor Telephone: (248) 813-9800
Enrolled Actuary Name: Erika L, Creager

Enrollment Number: 14-07288
Actuary Address: 11590 N. Meridian St., Suite 610, Carmel, IN 46032

Actuary Telephone: (317) 580-8631

Certification of Plan Status

I certify that the above-named Plan is in the following status as of May 1, 2016 (all that apply are

checked):

Safe--Neither Endangered nor Critical Status

Safe Due to Special Rule

Endangered Status

Seriously Endangered Status

Projected to be in Critical Status within 5 years
Critical Status

Critical and Declining Status x

11590 North Meridian Strout, Suite 610 » Carmel, Indiina 46032-4529 « (317) 580-8670 * Fax (317) 580-8651

SMW0361


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 11
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 11 - Justification for Change in Actuarial Assumptions
The assumptions and methods differ from those used the preceding year in the following
respects:

« The assumed select withdrawal rates were changed from 3 year select rates of 30%,
20% and 10% to 4 year select rates of 30%, 30%, 15% and 15%. This change
reflects our best estimate of future withdrawal patterns based on recent plan
experience.

« The assumed retirement rates were changed according to the schedule in Appendix
B to represent our best estimate of future retirement patterns based on recent plan
experience.

e The pop-up load was decreased on liabilities for retirees receiving a joint and
survivor form of benefit (who retired between January 1, 1995 and July 31, 2009 with
a subsidized pop-up feature) from 1.6% to 1.4%.

* The current liability interest rate was changed from 3.61% to 3.37%. The new rate is
within established statutory guidelines.

Actuary’s Statement of Reliance

In completing this Schedule MB, the enrolled actuary has relied upon the correctness of
the financial information presented in the pension fund audit and upon the accuracy and
completeness of participant census data provided by the plan administrator.

SMW0382


Sheet Metal Workers Local Pension Plan
EIN: 34-6666753/PN: 001

Attachment to 2015 Schedule MB: Lines 9c and 9h
Schedule of Funding Standard Account Bases

_ ; 5/1/2015 6/1/2015

Date Source of Change in Original | Original | Remaining Period | Outstanding | Amortization |

Established Unfunded Liability Amount! Period | Years | Months Balance Payment |

Charges
5/1/1978 Ual 40 3 0 524,930 188,600
5/1/1979 Ben 40 4 o 105,761 29,566
5/1/1987 Ben 30 2 (0) 344,802 179,024
5/1/1988 Assump 30 3 0 66,241 23,793
5/1/1990 Ben 30 5 0 1,028,593 238,529
5/1/1991 Assump 30 6 0 153,090 30,663
5/1/1992 Assump 30 7 Q 350,176 62,278
5/1/1994 Assump 1,055,296 30 9 0 582,256 86,304
5/1/1994 Ben 501,639 30 9 0 276,783 41,025
5/1/1995 Assump 875,897 30 10 0 519,652 71,707
5/1/1996 Assump 4,913,285 30 1 (0) 3,104,395 402,641
5/1/1997 Assump 1,453,639 30 12 0 970,500 119,240
5/1/1997 Ben 1,059,232 30 12 i?) 707,182 86,887
§/1/1998 Assump 2,744,734 30 13 ta) 1,923,673 225,355
5/1/1998 Ben 760,670 30 13 te) 533,122 62,455
5/1/1999 Assump 2,253,043 30 14 0 1,648,521 185,150
5/1/1999 Ben 1,075,250 30 14 0 786,759 88,361
5/1/2001 Assump 1,243,344 30 16 0 977,574 102,262
5/1/2001 Loss 2,610,037 15 1 0 282,353 282,353
5/1/2002 Assumptions 313,072 30 17 0 253,675 25,749
§/1/2002 EGGTRA 9,508 30 17 0 7,695 782
5/1/2002 Loss 3,212,158 15 2 0 669,215 347,477
5/1/2003 Assumptions 3,688,763 30 18 0 3,070,831 303,392
5/1/2003 Loss 6,342,515 16 3 (0) 1,909,615 686,105
5/1/2004 Assumptions 1,639,908 30 19 0 1,398,944 134,879
5/1/2004 Loss 3,996,056 15 4 0 1,546,296 432,275
5/1/2005 Loss 3,004,426 15 5 0 1,401,476 325,005,
5/1/2006 Loss 2,421,892 15 6 0 1,308,044 261,989
5/1/2007 Loss 1,049,396 15 7 0 638,297 113,519
5/1/2008 Assumptions 4,727,835 15 8 0 3,174,161 511,436
5/1/2008 Loss 2,044,242 15 8 0 1,372,455 221,137
5/1/2009 Loss 1,628,083 15 9 0 1,188,205 176,119
5/1/2009 Relief 09 Asset Loss 14,705,991 29 23 0 13,668,325 1,220,305
5/1/2010 Assumptions 35,984 15 10 0 28,210 3,893
5/1/2010 Relief 09 Asset Loss 336,765 28 23 0 316,046 28,216
Page C-1

SMW0378


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS

The non prescribed actuarial assumptions were selected to provide a reasonable long
term estimate of developing experience. The assumptions are reviewed annually,
including a comparison to actual experience. The following describes our rationale for
the selection of each non-prescribed assumption that has a significant effect on the

valuation results.

ERISA rate of return used | Future rates of return were modeled based on the Plan's
to value liabilities current investment policy asset allocation and composite,
long-term capital market assumptions taken from Horizon
Actuarial's 2015 survey of investment consultants.

Based on this analysis, we selected a final assumed rate
of 8.00%, which we feel is reasonable. This rate may not
be appropriate for other purposes such as settlement of
liabilities.

Mortality The RP 2000 fully generational, combined healthy
mortality table was chosen as the base table for this
population. Projected mortality improvement was
determined using Scale AA.

Based on the industry of plan participants, the blue collar
adjustment was applied.

Finally, a 1-year set forward was applied in order to more
closely match projected deaths for the coming plan year
to extrapolated deaths derived from a study of retiree
deaths between May 1, 2006 to April 30, 2011.

Mortality is monitored annually and no further adjustments
are deemed necessary at this time.

Retirement Actual rates of retirement by age were last studied for this
plan for the period May 1, 2010 to April 30, 2015. The
assumed future rates of retirement were selected based
on the results of this study.

Withdrawal Actual rates of withdrawal by age were last studied for
this plan for the period May 1, 2010 to April 30, 2015. The
assumed future rates of withdrawal were adjusted based
on the results of this study.

Future hours worked Based on review of recent plan experience.

. : Page B-4
United Actuarial Services, Inc.

SMW0387


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 3
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 3 - Employer Contributions

The employer contributions shown in line 3 of the Schedule MB were contributed or
accrued throughout the plan year for work performed during the plan year.

SMW0355


Note 3.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Investments (continued)

Company. Another of the Plan's investment funds, Pinehurst Institutional Ltd. Ser
BI/I, requires investors to provide 100 day prior written notice to the fund to
redeem part of its shares as of the last day of any calendar quarter. Three of the
Plan's investments, Blackstone Tactical Opportunities, Goldman Sachs Vintage VI,
and McMorgan Infrastructure Fund I, LP, are considered illiquid.

The fair value of private equity and hedge funds include the following at April 30:

2016 2015
Pinehurst Institutional Ltd. $ 6,266,499 $ 6,624,383
Blackstone Tactical Opportunities 2,241,867 1,863,817
Goldman Sachs Vintage VI 2,017,812 1,243,817
McMorgan Infrastructure Fund I, LP 1,128,139 109,387

Pinehurst Institutional Ltd. may invest in equity and debt securities of U.S. and non
U.S. corporations, U.S. government securities, non U.S. government securities,
futures contracts, options, options on futures, other derivatives including swaps,
forward contracts, currencies and physical commodities, partnership interests,
money market instruments, and derivatives on securities.

Blackstone Tactical Opportunities is a private equity fund that may invest in a
variety of private equity opportunities.

Goldman Sachs Vintage VI is a private equity fund that may invest both
domestically and internationally across all sections of the private equity market.

McMorgan Infrastructure Fund I, LP is a private equity fund that may invest in
large-scale global infrastructure assets.

The Plan was obligated at April 30, 2016 to invest additional funds in Blackstone
Tactical Opportunities ($392,370), Goldman Sachs Vintage VI ($1,155,171), and
McMorgan Infrastructure Fund I, LP ($1,921,330).

-10-

SMW0415


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 3
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 3 - Employer Contributions
The employer contributions shown in line 3 of the Schedule MB were contributed or
accrued throughout the plan year for work performed during the plan year.

SMW0397


Sheet Metal Workers Local Pension Plan

EIN: 34-6666753/PN: 001

Attachment to 2015 Schedule MB: Lines 9c and 9h
Schedule of Funding Standard Account Bases

| 7 ; 8/1/2015 5/1/2015
Date Source of Change in Original | Original Remaining Period Outstanding | Amortization ;
|_Established Unfunded Liability Amount ! Period | Years | Months Balance Payment_!
Charges
5/1/1978 Ual 40 3 0 524,930 188,600
5/1/1979 Ben 40 4 i) 105,761 29,566
5/1/1987 Ben 30 2 0 344,802 179,024
5/1/1988 Assump 30 3 te) 66,241 23,793
5/1/1990 Ben 30 5 ie) 1,028,593 238,529
5/1/1991 Assump 30 6 0 153,090 30,663
5/1/1992 Assump 30 7 0 350,176 62,278
5/1/1994 Assump 1,055,296 30 9 0 582,256 86,304
5/1/1994 Ben 501,639 30 9 0 276,783 41,025
5/1/1995, Assump 875,897 30 10 0 519,652 71,707
§/1/1996 Assump 4,913,285 30 1 0 3,104,395 402,641
5/1/1997 Assump 1,453,639 30 12 0 970,500 119,240
5/1/1997 Ben 1,059,232 30 12 i) 707,182 86,887
5/1/1998 Assump 2,744,734 30 13 0 1,923,673 225,355
5/1/1998 Ben 760,670 30 13 0 533,122 62,455
5/1/1999 Assump 2,253,043 30 14 0 1,648,521 185,150
5/1/1999 Ben 1,075,250 30 14 0 786,759 88,361
5/1/2001 Assump 1,243,344 30 16 0 977,574 102,262
5/1/2001 Loss 2,610,037 15 1 0 282,353 282,353
5/1/2002 Assumptions 313,072 30 7 0 253,675 25,749
§/1/2002 EGGTRA 9,508 30 17 0 7,695 782
5/1/2002 Loss 3,212,158 15 2 0 669,215 347,477
§/1/2003 Assumptions 3,688,763 30 18 0 3,070,831 303,392
5/1/2003 Loss 6,342,515 15 3 19) 1,909,615 686,105
5/1/2004 Assumptions 41,639,908 30 19 0 1,398,944 134,879
5/1/2004 Loss 3,996,056 15 4 i) 1,546,296 432,275
5/1/2005 Loss 3,004,426 15 5 0 1,401,476 325,005
5/1/2006 Loss 2,421,892 15 6 0 1,308,044 261,989
5/1/2007 Loss 1,049,396 15 7 0 638,297 113,519
5/1/2008 Assumptions 4,727,835 15 8 0 3,174,161 $11,436
5/1/2008 Loss 2,044,242 15 t] t) 1,372,455 221,137
5/1/2009 Loss 1,628,083 15 9 0 1,188,205 176,119
5/1/2009 Relief 09 Asset Loss 14,705,991 29 23 0 13,668,325 1,220,305
5/1/2010 Assumptions 35,984 15 10 i) 28,210 3,893
5/1/2010 Relief 09 Asset Loss 336,765 28 23 10) 316,046 28,216
Page C-1

SMW0395


Schedule R, Update of Rehabilitation Plan

Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

SUMMARY OF REHABILITATION PLAN

Rehabilitation Plan for 2015

The fund continued to be in Critical status in 2015. The rehabilitation plan established in
2009 was amended June 22, 2016. Results are reviewed annually with the completion
of the actuarial valuation report. The rehabilitation period is from May 1, 2011 through
April 30, 2024. The preferred schedule in effect as of April 30, 2016 is summarized, as

follows:

Preferred Schedule

Benefit Changes | * For all benefits:

effective o Change the normal form of benefit payment from a 5-year

August 1, 2009 certain and life annuity to life-only annuity. Amounts payable
under optional payment forms will be actuarially adjusted to
reflect their value relative to a life-only annuity.

o Increase 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.

o Eliminate the fully subsidized pop-up feature on joint & survivor
payment forms. Participants who wish to elect a pop-up feature
as part of a joint & survivor payment form will pay for the
feature with an actuarial reduction to their benefit.

o Eliminate the single lump-sum and 60-payment pre-retirement
death benefits. The only pre-retirement death benefit offered
will 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).

Benefit Changes | Benefit accruals for contributions on or after August 1, 2013 are
effective suspended subject to reinstatement when the Rehabilitation Plan is

August 1, 2013 reviewed by the Trustees in 2014.
Benefit Changes | Temporary Disability Benefits are eliminated for applications

effective received on or after September 1, 2013.

Sept. 1, 2013

Funding Changes | Cumulative annual contribution rate increases of 10.0% in 2009,
2010, 2011.

A 14.0% contribution rate increases of 14.0% in 2012.

No future additional contribution rate increases are currently
affordable.

On July 1, 2009, the 13 year rehabilitation plan period was elected under WRERA of
2008. Effective May 1, 2010, the trustees elected the 10-year smoothing with respect to
the loss incurred during the plan year ended in 2009 and elected an amortization
extension (30 years) for the net investment loss that occurred during the plan year ending

in 2009 under PRA of 2010.

SMW0401


SHEET METAL WORKERS LOCAL PENSION PLAN

CONTENTS
Page
INDEPENDENT AUDITORS' REPORT 1-2
FINANCIAL STATEMENTS
Statements of net assets available for benefits 3
Statements of changes in net assets available for benefits 4
Notes to financial statements 5-15

SUPPLEMENTAL SCHEDULES
Schedules of administrative expenses 16
Schedule H, line 4i — schedule of assets (held at end of year) as of April 30, 2016
Schedule H, line 4j — schedule of reportable transactions for the year ended

April 30, 2016

*Refers to Section of Form 5500 (Annual Return/Report of Employee Benefit Plan) for the
Plan year ended April 30, 2016 which material is incorporated herein by reference.

SMW0405


Years of Service
Attained
age Under’ | 1to4 5to9 | 10to14| 15 to 19 | 20 to 24 | 25 to 29 | 30 to 34 | 35 to 39 | 40 & up

Under 25. 3 24 E} 0} 0} 0} 0} 0} i!) 0}
25 to 29 1 31 26) 1 0} iY te) 0| Ly 0}
30 to 34 2! 26 33) 17 5 0} i) oO iY 0}
35 to 39 2 1g 20) 33} 8 0} iy 0} 0} 0
40 to 44 2 14 15 22 22) 22 1 0} 0} 0
45 to 49 2 8 12 16) 20) 24) 24 1 0} i]
50 to 54 3) 7 9 13] 21 10) 28) 12) 4 i)
55 to 59 1 5 9 4 il 6 7 9 16 i!)
60 to 64 0 0 iy 3 E} 0 3 4 ) 0}
65 to 69 i) 0} i) LY) 0} ie) 1 A!) ) 1
70 & up iy i] 0 0) ) 0} ie) i!) 0 0

Display may contain values based on estimated data.

SMW0393


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 6
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 6 - Summary of Plan Provisions
Attached is a summary of the plan provisions valued. The plan provisions are the same
as those valued in the preceding year.

Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Attached is a summary of the actuarial assumptions and methods used to perform the
most recent valuation.

SMW0365


SHEET METAL WORKERS LOCAL PENSION PLAN

EIN: 34-6666753/PN: 001

ATTACHMENT TO 2015 SCHEDULE MB: LINE 4
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 4b - Iilustration Supporting Actuarial Certification of

Status

The plan was certified in Critical status as of May 1, 2015. Refer to the attached PPA
certification. This result is based on a funded ratio of 56.8%, an existing funding
deficiency, and the Plan projected to remain negative at the end of the 2015-16 plan

year as shown in the table below:

Credit Balance/
As of (Funding Deficiency)
4/30/2016 (2,458,000)

SMW0383


Note 2.

Note 3.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Summary of Significant Accounting Polices (continued)

Use of Estimates:

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires the plan
administrator to make estimates and assumptions that affect certain reported
amounts of assets, liabilities and changes therein, disclosure of contingent
assets and liabilities, and the actuarial present value of accumulated plan
benefits at the date of the financial statements, and changes therein. Actual
results could differ from those estimates.

Basis of Accounting:

The accompanying financial statements are prepared on the accrual basis of
accounting.

Subsequent Events:

The Plan has evaluated subsequent events through February 3, 2017 which is
the date the financial statements were available to be issued.

Change in Accounting Principle:

New Accounting Pronouncements — In July 2015, the FASB issued ASU No.
2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960),
Defined Contribution Pension Plans (Topic 962), and Health and Welfare
Benefit Plans (Topic 965). The Plan elected early adoption of this
pronouncement, which changed certain investment disclosure requirements.
As such, the Plan is no longer required to (1) disclose individual investments
that represent 5% or more of net assets available for benefits; (2) disclose the
net appreciation or depreciation for investments by general type; or (3)
disaggregate investments by anything other than general type within the fair
value hierarchy. These changes have been applied retrospectively to the
financial statements.

Investments

Individual investment management companies manage the Plan's investments.
These assets were held by non-insured bank trusts at Morgan Stanley Smith Barney
and Comerica Bank. One of the Plan's investment funds, Principal U.S. Property
Account, has the ability to delay payment of withdrawal requests until cash
becomes available for distributions, as determined by Principal Life Insurance

-9-

SMW0414


Schedule MB (Form 5500) 2015 Page3- [__]

i [] Reorganization 7 [other (specify):

K If box h is checked, enter period of use of shortfall method

I Has a change been made in funding method for this plan year?

M If line Lis “Yes,” was the change made pursuant to Revenue Procedure 2000-40 or other automatic approval?

Nn Ifline 1is “Yes,” and line m is “No,” enter the date (MM-DD-YYYY) of the ruling letter (individual or class) én
approving the change in funding method .. is

6 Checklist of certain actuarial assumptions:
@ Interest rate for “RPA ‘94” current liability.

Pre-retirement
b Rates specified in insurance or annuity contracts [] ves [] No fy nia [] yes [] No fj na
© Mortality table code for valuation purposes:
11P+]| 11P+1
11FP+1 LIFP+1
d Valuation liability interest rate.... 8.00% 8.00%
Expense loading... 100.0 % {J wa % | fk twa
f Salary scale % NA
Estimated investment return on actuarial value of assets for year ending on the valuation date .. 1.8%
h Estimated investment return on current value of assets for year ending on the valuation date... 7.4%
7 New amortization bases established in the current plan year:
(1) Type of base (2) initial balance (3) Amortization Charge/Credit
1 3,199,565] 346,115
4 51,343 5,554
8 Miscellaneous information:
@ If a waiver of a funding deficiency has been approved for this plan year, enter the date (MM-DD-YYYY) of the ta
ruling letter granting the approval ....
b(1) Is the plan required to provide a projection of expected benefit payments? (See the instructions.) If “Yes,” attach a schedule. fy Yes ia No
b(2) Is the plan required to provide a Schedule of Active Participant Data? (See the instructions.) If “Yes,” attach a schedule. fq ves [] No
© Are any of the plan’s amortization bases operating under an extension of time under section 412(e) (as in effect prior to [] Yes fi No

2008) or section 431(d) of the Code?.
d Ifline cis “Yes,” provide the following additional information:

[] Yes [] No

(1) Was an extension granted automatic approval under section 431(d)(1) of the Code?..

(2) Ifline 8d(1) is “Yes,” enter the number of years by which the amortization period was extended | 8d(2) [

(3) Was an extension approved by the Internal Revenue Service under section 412(e) (as in effect prior to [] ves [] no
2008) or 431(d)(2) of the Code? 7

(4) If line 84(3) is “Yes,” enter number of years by which the amortization period was extended (not including Bata)

the number of years in line (2))..

(5) If line 8d(3) is “Yes,” enter the date of the ruling letter approving the extension. | 8a(5)

(6) If line 8d(3) is “Yes,” is the amortization base eligible for amortization using interest rates applicable under section 0 Yes 0 No
6621(b) of the Code for years beginning after 2007? ..

€ If box 5h is checked or line 8c is “Yes,” enter the difference between the minimum required contribution for the

year and the minimum that would have been required without using the shortfall method or extending the 8e

amortization base(s)

9 Funding standard account statement for this plan year:

Charges to funding standard account:
@ Prior year funding deficiency, if any.

9a 2,245,624
9b 259,615

b Employer's normal cost for plan year as of valuation date...

SMW0346


SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Note 4. Fair Value of Investments (continued)
Mutual funds:

Valued at fair value based on quoted market prices, which represents the net
asset value of shares held by the Plan at year end. These assets are considered
Level 1.

The methods described above may produce a fair value calculation that may not be
indicative of net realizable value or reflective of future fair values. There have been
no changes in methodologies used from 2015 to 2016. Furthermore, while the Plan
believes its valuation methods are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine the fair
value of certain financial instruments could result in a different fair value
measurement at the reporting date.

The following table sets forth by level the Plan's assets at fair value:

As of April 30, 2016

Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ - $ 391,567 $ - $ 391,567
Common stocks 7,687,284 7,687,284
Insurance company separate

account - real estate - - 7,072,097 7,072,097

Private equity and hedge funds - - 11,654,317 11,654,317
Mutual funds 11,971,162 = : 11,971,162
Total $ 19,658,446 $ 391,567 $18.726.414  $ 38.776,427

As of April 30, 2015

Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ - $541,322 $ - $ 541,322
Common stocks 9,105,267 - - 9,105,267
Insurance company separate

account - real estate - - 6,311,979 6,311,979
Private equity and hedge funds - - 9,841,404 9,841,404
Mutual funds 14,696,900 - - 14.696.900
Total $ 23,802,167 $541,322 $ 16,153.383 $40,496,872
-12-

SMW0417


SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Note 4. Fair Value of Investments

The Plan estimates the fair value of financial instruments using available market
information and other generally accepted valuation methodologies. The inputs used
to measure fair value are classified into three levels:

¢ Level | — Quoted market prices in active markets for identical assets and
liabilities

¢ Level 2 ~ Observable market-based inputs or unobservable inputs that are
corroborated by market data

¢ Level 3 - Unobservable inputs in which little or no market data exists

The following is a description of the valuation methodologies used for assets of the
Plan measured at fair value at April 30, 2016 and 2015.

Money market funds:

Valued based on reported Net Asset Value, which is based on market value of
underlying investments. These assets are considered Level 2.

Common stocks:

Valued at quoted prices from national securities exchanges for identical assets
in active markets. These assets are considered Level 1.

Insurance company separate account:

Certain investments are stated at fair value as determined by annual
appraisals. Other investment values are determined by discounting future
contractual cash flows to present value using interest rates and anticipated
returns a market participant would incur with similar risk and terms. This
fund primarily invests in real estate, real estate joint ventures, lines of credit
and debt and adjustment to investment commitments. This account is
considered Level 3.

Private equity and hedge funds:
Valued based on reported Net Asset Value, which is based on market value of

underlying investments. A significant portion of the underlying investments
are considered Level 3; therefore, these funds are considered Level 3.

-ll-

SMW0416


Note 5.

Note 6.

Note 7.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Accumulated Plan Benefits (continued)

The changes in accumulated plan benefits for the year ended May 1, 2015 were as
follows:

Actuarial present value of accumulated plan

benefits — beginning of year $ 82,339,780
Increase (decrease) during the year attributable to:

Change in actuarial assumptions 51,343

Benefits accumulated and actuarial experience

gain or loss 125,670

Interest due to decrease in discount period 6,587,182

Benefits paid (5.219.325)
Net increase 1,544,870
Actuarial present value of accumulated plan

benefits — end of year $ 83,884,650

Insurance Company Experience Credit

Prudential Financial insures certain group annuity contracts on the Plan's behalf.
Under the terms of the contracts, Prudential Financial is responsible for the
payment of such benefits. Each June 30", Prudential Financial adjusts the contracts
for interest earned, expenses charged and the mortality experienced, and at their
discretion, may issue an experience credit to the Plan. Accordingly, experience
credits received or receivable for the years ended April 30, 2016 and 2015 are
$30,370 and $43,156, respectively.

Plan Termination

In the event the Plan terminates, its net assets generally will not be available on a
pro-rata basis to provide a participant benefits and will be allocated as prescribed by
ERISA and its related regulations. Whether a particular participant's accumulated
plan benefits will be paid depends on the priority of those benefits, the level of
benefits guaranteed by the Pension Benefit Guaranty Corporation (PBGC), and the
PBGC's financial condition at the time. Some benefits may be fully or partially
provided for based on the then existing assets and the PBGC guaranty while other
benefits may not be provided for at all. Participants should refer to the Plan
agreement for detailed information regarding Plan termination.

-14-

SMW0419


Years of Service
Attained
age Under1} 1to4 Sto9 | 10to14| 15to 19 | 20 to 24 | 25 to 29 | 30 to 34 | 35 to 39 | 40 &up

Under 25 3 24) 3 0! 0 ) 0} i) 0} 0}
25 to 29 1 31 26) 4 oO 0 ) i!) 0| LY)
30 to 34 2 26) 33 17 5 i!) te) () oO (¢)
35 to 39 2 19 20} 33 8 0) 0 0} 0 0}
40 to 44 2 14 15; 22 22) 22) ES 0} 0| C)
45 to 49 2| 8 12; 16) 20) 24 24 1 i) 0
50 to 54 3 7 9 13 21 10) 28 12 4 0}
55 to 59 i 5 9 4 11) 6 7 9| 16) )
60 to 64 0} 0} 0} 3] 5 CY) 3 ef 0| i)
65 to 69 iy 0| 0} 0 0 0 1 0} 0} 1
70 & up 0} t) Le) 0 0} te) ie) t) iy i)

Display may contain values based on estimated data.

SMW0376


United Actuarial Services, Inc.

Actuaries and Consultants

Board of Trustees -2- July 29, 2016

This certification is based on the following results:
Projected Funded ratio as of May 1, 2016: 53.6%

Previously emerged from critical status using IRC Section No
432(e)(4)(B)(2) special emergence rule:

First projected deficiency April 30, 2017
At least 8 year of benefit payments in plan assets: Yes

Plan year of projected insolvency 2033-2034
Ratio of inactive to active participants: 1,384

Certification of Scheduled Progress

I certify that the above-named has made the scheduled progress as outlined in the 2009
rehabilitation plan (updated on June 22, 2016) as of May 1, 2016. Projections indicate that the

Plan is not projected to emerge from Critical status at the end of the rehabilitation plan period as
specified in the updated rehabilitation plan. This rehabilitation plan, however, includes the use
of the “exhaustion of all reasonable measures” clause at IRC 432(e)(3)(A)(ii). Therefore, we
interpret scheduled progress for this Plan to mean continued use of all reasonable measures to

forestall insolvency.

These certifications are intended to be in good faith compliance with the necessary disclosures
for certification and represent my best estimate of the Plan's funded position.

Basis for Result

The certifications utilize the assumptions, methods, plan provisions and demographic data as
disclosed in the May 1, 2015 actuarial valuation report with the following exceptions:

* Based on the April 30, 2016 unaudited financial statements provided by the plan
administrator, the asset return for the 2015-16 plan year is assumed to be 0.35%. We also
updated the contributions, benefit payments, and expenses for the 2015-16 plan year

based on these financial statements.
© No adjustments were made to the contribution rate assumption.

» Based on information provided by the Trustees regarding projection of future industry
activity, the following hours were assumed: 950,000 for the plan year beginning in 2016
and for each plan year thereafter. For the 2015-16 plan year, our projections used actual

hours of 1,087,575,

SMW0362


Schedule MB, line 6 - Summary of Plan Provisions
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

SUMMARY OF PLAN PROVISIONS

Plan Year May 1 through April 30.

Participation First day of plan year or November 1, if earlier, following
completion of 435 hours during a computation period of
eligibility.

Year of service Plan Year with at least 435 hours.

Break in service Plan Year with less than 435 hours. Not a break in

service if ill or in Armed Forces.

Normal retirement benefit
Eligibility Age 61 and 5 years of service.

Monthly amount $2.00 times years of past service credit ($3.50 for
members not covered by Sheet Metal Workers National
Plan), plus 3.65% of employer contributions through
April 30, 2003, plus 2.20% of credited employer
contributions from May 1, 2003 through April 30, 2006,
plus 0.36% of employer contributions from May 1, 2006
through July 31,2013. Benefit accruals for employer
contributions on or after August 1, 2013 are suspended.
Payable for life.

Early retirement benefit
Eligibility Age 55 and 5 years of service.

Monthly amount Normal, reduced by an actuarial equivalent factor for each
year under age 61 and payable for life. Participants
eligible for retirement before August 1, 2009 are reduced
3% for each year under 61 and payable for life.

Total and permanent

disability benefit
Eligibility 40 years of service. Disabled while active. Must be

eligible for social security disability benefit. This benefit
was eliminated effective September 1, 2013.

Monthly amount 80% of accrued normal. Payable until the earlier of age
55, recovery or death. Early at age 55 or deferred normal
at age 61.
Page A-3

United Actuarial Services, Inc.

SMW0368


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 4F
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 4f - Assumptions Used to Project Plan Year in which
Insolvency is Expected

The assumptions used in the projection are the same as those detailed in the July 29,
2016 certification.

Assumed return on fund 0.35% estimated return for the plan year ending 2016

assets 8.00% thereafter

Future total hours worked | 1,087,575 for the plan year ending 2016
950,000 thereafter

Contribution rate None

increases

Plan changes None

SMW0364


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 9
STATEMENT BY ENROLLED ACTUARY

Schedule MB, lines 9c and 9h - Schedule of Funding Standard Account

Bases
Attached is a schedule of minimum funding amortization bases maintained pursuant to

IRC Section 431.

SMW0377


United Actuarial Services, Inc.

Actuaries and Consultants

Board of Trustees -3- July 29, 2015

J am a member of the American Academy of Actuaries and meet the Qualification Standards of
the American Academy of Actuaries to render the actuarial opinion contained herein. We will
have a full update of the Plan’s funded position with the next valuation report.

Sincerely,

Erika L. Creager, EA, MAAA
Consulting Actuary
EA number; 14-07288

Date of Signature: 7/249 /20/ Dy

ce: Secretary of the Treasury
Mary Weir, Fund Administrator
Ed Pasternak, Fund Counsel
Mike Novara, Fund Counsel
Paul Catenacci, Fund Counsel
Mark Crawford, Auditor

m:\docs\sm local\db 02476\valuntions\20150501\ppa\20150501 ppa cert.docx

SMW0359


Note 4.

Note 5.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Fair Value of Investments (continued)

Changes in assets measured at fair value on a recurring basis using significant
unobservable inputs (Level 3 inputs) are as follows:

Insurance company

Private equity separate account-

and hedge funds real estate
Balance at April 30, 2014 $ 7,139,735 $ 5,558,199
Return of capital (615,768) -
Purchases 2,704,515 -
Unrealized gain 612,922 753.780
Balance at April 30, 2015 9,841,404 6,311,979
Return of capital (532,301) -
Purchases 2,277,599 -
Unrealized gain 67.615 760.118
Balance at April 30, 2016 $ 11,654,317 $ 7,072,097

The Plan does not use separate quantitative information to value its investment in
the hedge fund of funds or the insurance company separate account.

Accumulated Plan Benefits

The actuarial present values of accumulated plan benefits as of May 1 were as
follows:

2015 2014
Vested benefits:

Participants currently receiving payments $45,995,729 $45,785,697
Other participants 36.618.776 35.788.510
Total vested benefits 82,614,505 81,574,207
Nonvested benefits 1,270,145 765,573

Total actuarial present value of
accumulated plan benefits $ 83,884,650 $82,339,780

SMW0418


Schedule R, Update of Rehabilitation Plan
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

SUMMARY OF REHABILITATION PLAN (CONT.)

Expected Annual Progress

The following projection of the credit balance illustrates the expected progress under the
rehabilitation plan. As shown below, the Plan is currently not projected to emerge from
Critical status at the end of the rehabilitation period on April 30, 2024. The projections
also indicate a projected insolvency in the plan year beginning May 1, 2033. These
projections are based on the data, plan provisions, assumptions and method as
described in the July 29, 2016 PPA certification.

Credit Balance/
As of (Funding Deficiency)

4/30/2015 (2,246,000)
4/30/2016 (2,178,000)
4/30/2017 (2,618,000)
4/30/2018 (2,827,000)
4/30/2019 (6,082,000)
4130/2020 (9,190,000)
4/30/2021 (12,016,000)
4130/2022 (14,751,000)
4/30/2023 (17,516,000)
4130/2024 (19,711,000)

SMW0403


SCHEDULE MB Multiemployer Defined Benefit Plan and Certain OMB No. 1210-0110
(Form 5500) Money Purchase Plan Actuarial Information
Department of the Treasury 2015
Intomal Revenue Service This schedule Is required to be filed under section 104 of the Employee
Pension Benet Guaranty Comporation > File as an attachment to Form 8500 or 5500-SF.
For calendar plan year 2015 or fiscal plan year beginning 05/01/2015 and ending 04/30/2016

> Round off amounts to nearest dollar.
> Caution: A penalty of $1,000 will be assessed for late filing of this report unless reasonable cause is established.

A Name of plan B Three-digit
Sheet Metal Workers Local Pension Plan plan number (PN) » ool

C Plan sponsor's name as shown on line 2a of Form 5500 or 5500-SF D_ Employer Identification Number (EIN)

Sheet Metal Workers Local Pension Plan 34~6666753
E Type of plan: (1) x] Muttiemployer Defined Benefit (2) [] Money Purchase (see instructions)
fa Enter the valuation date: Month__5. Day__t Year_2015
b Assets
(1) Current value of assets. bi) 41, 508, 264
(2) Actuarial value of assets for funding standard account. 4b(2) 47,518, 829
© (1) Accrued liability for plan using Immediate gain methods te(1) 83,884, 650
(2) Information for plans using spread gain methods:
(a) Unfunded liability for methods with bases 1c(2)(a)

4e(2)(b)
4e(2Xe)

{b) Accrued liability under entry age normal method
{c) Normal cost under entry age normal method.

(3) Accrued lability under unit credit cost method ‘Ae(3) 83,884, 650
d. Information on current tiabilities of the plan:
(1) Amount excluded from current liability attributable to pre-participation service (see instructions)..... ta
(2) "RPA‘84" Informati
(a) Current liability. Ad(2)(a) 150,371, 619
{b) Expected increase in current liability due to benefits accruing during the plan year 4d(2)(b) ()
(c) Expected release from “RPA ‘94” current liability for the plan year 4d(2}{c) 5,781,159
40(3) 5,878,572

(3) Expected plan disbursements for the plan year ..

‘Statement by Enrolled Actuary
"To the best of my knowledge, he informaton suppled in ths schedue and accompanying Schedules, statements and attachments if any, 1s complete and accurate. Esch prescribed assumpton was applied in
2ecordance with appheable law and regulators. in my opinion, each othar assumption Is reasonabie (taking into account the expenence of he plan and reasonable expectators) and such other assumptons, in

‘combination, offer my best estimate of antcipated expenence under the plan.

HERE PLL I017

Date
14-07288
Most recent enroliment number
(317) 580-8631
Telephone number (including area code)

Erika L. Creager, EA, MAAA

Type or print name of actuary
United Actuarial Services, Inc.

11590 N. Meridian Street, SMM@*e10
IN 46032-4529

Carmel
‘Address of the firm
ifthe actuary has not fully reflected any regulation or ruling promulgated under the statute in completing this schedule, check the box and see i]
instructions
For Paperwork Reduction Act Notice and OMB Controt Numbers, see the instructions ‘for Form 6600 or Form 6500-SF. ‘Schedule MB (Form 5500) 2016
v. 150123

SMW0351


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

ACTUARIAL METHODS

Funding method
Funding period Individual entry age normal with costs spread as a level
dollar amount over service

ERISA Funding Traditional unit credit cost method, effective May 1, 2004.

Population valued
Actives Eligible employees with at least one hour during the

preceding plan year.

Inactive vested Vested participants with no hours during the preceding
plan year.
Retirees Participants and beneficiaries in pay status as of the

valuation date.

Asset valuation method

Actuarial value Smoothed market value with phase-in effective May 1,
4999. Each year’s gain (or loss) is spread over a period
of 5 years. The actuarial value is limited to not less than
80% and not more than 120% of the actual market value
of assets in any plan year.

Unfunded vested For the presumptive method, actuarial value is used.
benefits Through April 30, 1999, the actuarial value was equal to
the market value.

Pension Relief Act of 2010 | » 10-year smoothing is assumed to be elected with
respect to the loss incurred during the plan year ended

in 2009.

¢ 30-year amortization of net investment loss was
elected with respect to the loss incurred during the plan
year ended in 2009. The loss was allocated to future
years using the “prospective method” of IRS. The
amount of each allocation is shown in Appendix C.

. Page B-5
United Actuarial Services, Inc.

SMW0374


Note 1.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS

Description of Plan

The following brief description of the Sheet Metal Workers Local Pension Plan (the
Plan) is provided for general information purposes only. Participants should refer
to the Plan agreement for a more comprehensive description of the Plan's
provisions.

General:

The Plan is a multi-employer defined benefit pension plan covering
substantially all members within certain districts of Sheet Metal Workers
Local No. 33 located in Northern Ohio and West Virginia. It is subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA), as amended.

The Plan is subject to the Pension Protection Act of 2006 (Act), as amended
by the Multiemployer Pension Reform Act of 2014. The Act revised
minimum funding rules and expanded the reporting and disclosure
requirements for multiemployer plans. The Act requires an annual actuarial
certification of the Plan's funded status. The Plan's actuary has certified the
Plan as being in "critical" status as of May 1, 2015 and 2014. In accordance
with the Act, the Plan has adopted a "rehabilitation plan" in an effort to
improve its funded status. The rehabilitation plan includes the use of the
“exhaustion of all reasonable measures" clause in Section 432 of the Internal
Revenue Code. The Plan's actuary has certified that the Plan has made the
scheduled progress as outlined in the rehabilitation plan.

Effective August 1, 2013, benefit accruals for contributions on or after August
1, 2013 are suspended.

Pension Benefits:

Participants with five or more years of service are entitled to annual pension
benefits beginning at normal retirement age of 61 equal to the sum of the
participants’ past service benefit and future service benefit.

The Plan permits early retirement at ages 55-60 for those participants with at
least five years of service. The amount of the early retirement is equal to the
normal retirement benefit reduced at an actuarial equivalent factor for each
year younger than age 61.

The normal and early retirement benefits to which a participant is entitled may
be payable in the form of a joint and 50% survivor benefit, a joint and 75%
survivor benefit, and/or five or ten year certain life benefit.

-5-

SMW0410


Note 1.

Note 2.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Description of Plan (continued)

rate for the Residential workers is $0.77 per hour. The minimum funding
testing requirements of the Pension Protection Act were not met for the years
ended April 30, 2016 and 2015. As noted above, the Plan's actuary has
certified that the Plan has made the scheduled progress as outlined in the

rehabilitation plan.
Summary of Significant Accounting Policies

A summary of the Plan's significant accounting policies consistently applied in the
preparation of the accompanying financial statement follows:

Actuarial Present Value of Accumulated Plan Benefits:

Accumulated plan benefits are those future periodic payments, including
lump-sum distributions that are attributable under the Plan's provisions to the
service which participants have rendered. Accumulated plan benefits include
benefits expected to be paid to (a) retired or terminated participants or their
beneficiaries, (b) beneficiaries of participants who have died, and (c) present
participants or their beneficiaries. Benefits under the Plan are based upon
years of service prior to the inception of the Plan and employer contributions
made on the participant's behalf subsequent to the inception of the Plan.
Benefits payable under all circumstances (retirement, death, disability, and
termination) are included, to the extent they are deemed attributable to
participant service rendered through July 31, 2013.

The actuarial present value of accumulated plan benefits is determined by an
actuary from United Actuarial Services, Inc. and is the amount that results
from applying actuarial assumptions to adjust the accumulated plan benefits to
reflect the time value of money (through discounts for interest) and the
probability of payment (by means of decrements such as for death, disability,
withdrawal, or retirement) between the valuation date and the expected date of

payment.
The assumptions underlying the actuarial computations used in the valuation
as of May 1, 2015 are the same as those used in the prior year's valuation,

except for revisions as noted below. Some of the more significant actuarial
assumptions used are as follows:

Assumed Rate of Return of
Investments 8.0% per year after investment expenses

-7-

SMW0412


SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Note 2. Summary of Significant Accounting Policies (continued)

Normal Retirement Age

Mortality Basis

Asset Valuation Method

Actuarial Cost Method

Operational Expenses

55-60: 10%
61-64: 20%-50% retired
65+: 100% retired

RP 2000 Combined Healthy
Generational Mortality

Table using scale AA with blue collar
adjustment.

Smoothed market value — 5 year
amortization.

Traditional Unit credit

$270,000

The foregoing actuarial assumptions are based on the presumption that the Plan will
continue. Were the Plan to terminate, different actuarial assumptions and other
factors might be applicable in determining the actuarial value of accumulated plan
benefits. The computations of the actuarial present value of accumulated plan
benefits were made as of May 1, 2015 and 2014. Had the valuations been
performed as of April 30, there would be no material differences.

Valuation of Investments and Income Recognition:

Fair value is defined as the price that would be received to sell an asset or
would be paid to transfer a liability in an orderly transaction between market
participants at the measurement date. In accordance with the policy of stating
investments at fair value, net appreciation or depreciation for the year, which
consists of realized gains and losses and unrealized appreciation and
depreciation, is reflected in the statements of changes in net assets available
for benefits. Purchases and sales of securities are recorded on a trade-date
basis. Dividends are recorded on the ex-dividend date. Interest is recorded

when earned.

Payment of Benefits:

Benefit payments to participants are generally recorded upon distribution.

-8-

SMW0413


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN. 001
May 1, 2015

ACTUARIAL ASSUMPTIONS (CONT.)

Withdrawal Ultimate rates according to T-5 Turnover Table from The
Actuary’s Pension Handbook (less GAM 51 mortality)
adjusted for ages 45 and later to account for the
elimination of the disability benefit - specimen rates

shown below:
Withdrawal
Age Rate
25 .0764
30 0711
35 0613
40 0493
45 .0389
50 0241

Select rates are 30% at each age for the first and second
year of employment and 15% at each age for the third
and fourth year of employment.

Retirement
Active lives When eligible and according to annual retirement
decrements below:
Retirement
Age Rate
55 - 60 10
61 .20
62 - 64 50
65 or older 1.00
Resulting in an average expected retirement age of 60.6
Inactive vested lives Terminated before 5/1/99 - 62 or current age, if older.

Terminated after 5/1/99 - 60 or current age, if older.

. . . Page B-2
United Actuarial Services, Inc.

SMW0371


OMB No, 1210-0110

SCHEDULE R Retirement Plan Information

(Form 5500) 2015
Department ofthe Treasury This schedule is required to be filed under section 104 and 4065 of the

Intemal Revenue Service Employee Retirement Income Security Act of 1974 (ERISA) and section

6058(a) of the Internal Revenue Code (the Code).

Department of Labor’ This Form is Open to Public

Employes Benefis Security Adminitaton > File as an attachment to Form 5500. Inspection.
Pension Benefit Guaranty Corporation
For calendar plan year 2016 or fiscal plan year beginning 05/01/2015 and ending 04/30/2016
B Three-digit

A Name of plan

SHEET METAL WORKERS LOCAL PENSION PLAN plan number

en > oo1

Plan sponsor's name as shown on line 2a of Form 5500 D Employer Identification Number (EIN)

34-6666753

BOARD OF TRUSTEES SHEET METAL WORKERS LOCAL PENSION PLAN

[ Part | Distributions
‘All references to distributions relate only to payments of benefits during the plan year.

4. Total value of distributions paid in property other than in cash or the forms of property specified in the
instructions...
2 Enter the EIN(s) of payor(s) who paid benefits on behalf of the plan to participants or beneficiaries during the year (if more than two, enter EINs of the two
payors who paid the greatest dollar amounts of benefits):

EINGs): 34-0383347

°

Profit-sharing plans, ESOPs, and stock bonus plans, skip line 3.

o

3. Number of participants (living or deceased) whose benefits were distributed in a single sum, during the plan
year..

Part Il

Funding Information (ifthe plan is not subject to the minimum funding requirements of section of 412 of the intemal Revenue Code or
ERISA section 302, skip this Part)

4 Is the plan administrator making an election under Code section 412(d)(2) or ERISA section 302(4)(2)? .. Uy Yes kl No [] NA
If the plan is a defined benefit plan, go to line 8.

5 fa waiver of the minimum funding standard for a prior year is being amortized in this

plan year, see instructions and enter the date of the ruling letter granting the waiver. Date: Month Day Year
If you completed line 5, complete lines 3, 9, and 10 of Schedule MB and do not complete the remainder of this schedule.
6 a Enter the minimum required contribution for this plan year (include any prior year accumulated funding ba
deficiency not waived) ..
b Enter the amount contributed by the employer to the plan for this plan year... 6b
Subtract the amount in line 6b from the amount in line 6a. Enter the result
(enter a minus sign to the left of a negative amount). 6c

If you completed line 6c, skip lines 8 and 9.
7 Will the minimum funding amount reported on line 6c be met by the funding deadline? ..

[] Yes [Jno [] NA

8 ifachange in actuarial cost method was made for this plan year pursuant to a revenue procedure or other
authority providing automatic approval for the change or a class ruling letter, does the plan sponsor or plan Ov. Ow NA
administrator agree with the change?... ees es io

Part Ill | Amendments

9 Ifthis is a defined benefit pension plan, were any amendments adopted during this plan

year that increased or decreased the value of benefits? If yes, check the appropriate
box. if'no, check the “No” box. .. [Jimerease  []becrease [] Both fk] No

[ Part IV | ESOPs (see instructions). If this is not a plan described under Section 409(a) or 4975(e)(7) of the Internal Revenue Code, skip this Part.
40 Were unallocated employer securities or proceeds from the sale of unallocated securities used to repay any exempt loan? .. [[ves_[] No

41 a Does the ESOP hold any preferred stock? ... . [J Yes [| No
b ifthe ESOP has an outstanding exempt loan with the employer as lender, is such loan part of a “back-to-back” loan? Oo Yes i No

(See instructions for definition of “back-to-back” loan.).. a
42 Does the ESOP hold any stock that is not readily tradable on an established securities market? .. [[ ves _[] No

For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500. Schedule R (Form 5500) 2015
v. 150123

SMW0348


‘Schedule MB (Form 5500) 2015

Page4- [__]

Amortization charges as of valuation date:

Outstanding balance

co) al bases except funding waivers and certain bases for which the ‘ec(1) 59,329,988 8, 686, 205
(2) Funding waivers... 8c(2) 0 0
(3) Certain bases for which the amortization period has been extended.... 9¢(3) 0 0
di interest as applicable on lines 9a, 9b, and 9c. 9d 895,311
Total charges. Add lines 9a through 9d ge 12,086,755
Credits to funding standard account:
f Prior year credit balance, if any .. of 0
g_ Employer contributions. Total from column (b) of line 3 .. 99 3,815,488
Outstanding balance
hh Amortization credits as of valuation date.. 9h 25,209,79] 5,527,467
i Interest as applicable to end of plan year on lines Sf, 99, and 9h 91 594,817
J Full funding limitation (FFL) and credits:
(1) ERISA FFL (accrued liability FFL) 9i(4) 46,047,297
(2) “RPA ‘94” override (90% current liability FFL) ... 9i(2) 89,589,545
(3) FFL credit 9i(3) 0
k (4) Waived funding deficiency .. 9k(4) 0
(2) Other credits 9k(2) 0
1 Total credits. Add lines 9f through 9i, 9)(3), 9k(1), and 9k(2).. gt 9,937,772
TM Credit balance: If line 91 is greater than line Ye, enter the difference . om
Nn Funding deficiency: If line Ye is greater than line 91, enter the difference. 9n 2,148,983
90 Current year's accumulated reconciliation account:
(1) Due to waived funding deficiency accumulated prior to the 2014 plan year [sot 0
(2) Due to amortization bases extended and amortized using the interest rate under section 6621(b) of the Code:
(a) Reconciliation outstanding balance as of valuation date. 90(2)(a)
(b) Reconciliation amount (line 9c(3) balance minus line 90(2)(a)) . 90(2\b) °
(3) Total as of valuation date . 90(3) J
40 Contribution necessary to avoid an accumulated funding deficiency. (See instructions.) 10 2,148,983

41 Has a change been made in the actuarial assumptions for the current plan year? If “Yes,” see instructions.

fx] Yes [] No

SMW0347


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 4c
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 4c - Documentation Regarding Progress Under Funding
Improvement or Rehabilitation Plan

The Plan has made the scheduled progress as outlined in the 2009 rehabilitation plan as
updated by the Board on June 22, 2016. This is based on the data, plan provisions,
assumptions and methods as described in the attached certification dated July 29, 2016.
Projections indicate that the Plan is not projected to emerge from Critical at the end of
the rehabilitation plan period on April 30, 2024. This rehabilitation plan, however,
includes the use of the “exhaustion of all reasonable measures” clause of IRC
432(e)(3)(A)(ii). Therefore, we interpret scheduled progress for this Plan to mean
continued use of all reasonable measures to forestall insolvency. The following
projection of credit balance illustrates that there is a projected deficiency during the
rehabilitation period.

Credit Balance/
As of (Funding Deficiency)

4130/2015 (2,246,000)
4/30/2016 (2,178,000)
4/30/2017 (2,618,000)
4130/2018 (2,827,000)
4/30/2019 (6,082,000)
4/30/2020 (9,190,000)
4130/2021 (12,016,000)
4/30/2022 (14,751,000)
4/30/2023 (17,516,000)
4/30/2024 (19,711,000)
4/30/2025 (22,529,000)
4130/2026 (26,239,000)
4/30/2027 (30,114,000)
4130/2028 (33,289,000)
4130/2029 (36,628,000)
4/30/2030 (40,122,000)
4/30/2031 (43,516,000)
4/30/2032 (46,614,000)
4/30/2033 (49,630,000)
4/30/2034 (52,257,000)

SMW0360


Schedule R (Form §500) 2015 Page 3 -[]

44 Enter the number of participants on whose behalf no contributions were made by an employer as an employer of the

participant for:

a The current year 14a

b The plan year immediately preceding the current plan year. 14b

© _The second preceding plan year 14¢
415 Enter the ratio of the number of participants under the plan on whose behalf no employer had an obligation to make an

employer contribution during the current plan year to:

a The corresponding number for the plan year immediately preceding the current plan year ... 15a 1.01

b_ The corresponding number for the second preceding plan year... 415b 1.02
46 information with respect to any employers who withdrew from the plan during the preceding plan year:

a Enter the number of employers who withdrew during the preceding plan year 16a

b  {fline 16a is greater than 0, enter the aggregate amount of withdrawal liability assessed or estimated tobe | 46b

assessed against such withdrawn employers ... .

47  Ifassets and liabilities from another plan have been transferred to or merged with this plan during the plan year, check box and see instructions regardin

supplemental information to be included as an attachment. ...

i"

[Part VI_[_Additional information for Single-Employer and Multiemployer Defined Benefit

Pension Plans

18 If any liabilities to partici
and beneficiaries under two or more pension plans as of immediately before such plan year, check

information to be included as an attachment...

box and see inst

pants or their beneficiaries under the plan as of the end of the plan year consist (in whole or in part) of liabilities to such participants
tructions regarding supplemental

419 ifthe total number of participants is 1,000 or more, complete lines (a) through (c)
a Enter the percentage of plan assets held as:

Stock: 70.0% Investment-Grade Debt: 20.0% High-Yield Debt: 2.0% RealEstate: 0.0

'% Other: 8.0%

b Provide the average duration of the combined investment-grade and high-yield debt:
[]o-3years fx] 3-6years [] 6-9 years []9-12years [] 12-15 years [] 15-18 ye
© What duration measure was used to calculate line 19(b)?
[WEffective duration []Macaulay duration [| Modified duration [Jother (specify):

ars [] 18-21 years [] 21 years or more

[Part Vil_| IRS Compliance Questions

20a Is the plan a 401(K) plan?...

| [] Yes

[] No

20b If “Yes,” how does the 401(k) plan satisfy the nondiscrimination requirements for employee deferrals and
‘employer matching contributions (as applicable) under sections 401(k)(3) and 401(m)(2)?..

|0

Design-based

206 ifthe ADP/ACP test is used, did the 401(k) plan perform ADP/ACP testing for the plan year using the “current
year testing method" for nonhighly compensated employees (Treas. Reg sections 1.401(k)-2(a)(2)(i) and

1.404 (m)-2(a)(2)(ii))? .

21a Check the box to indicate the method used by the plan to satisfy the coverage requirements under section
410(b):

safe harbor [|] ADP/ACP test
method
[1 Yes {] No
Ratio
Average
. oO percentage
Pest benefit test

211b Does the plan satisfy the coverage and nondiscrimination tests of sections 410(b) and 401(a)(4) by combining
this plan with any other plans under the permissive aggregation rules’

[] Yes

[] Ne

22a Has the plan been timely amended for all required tax law changes?..

[] Yes []No [JNA

22b Date the last plan amendment/restatement for the required tax law changes was adopted _____. 1.1 Ent

instructions for tax law changes and codes).

er the applicable code (See

1&P) or volume submitter plan that is st

22c If the plan sponsor is an adopter of a pre-approved master and prototype (M
a and the letter's serial number

advisory letter, enter the date of that favorable letter is) a

subject to a favorable IRS opinion or

22d If the plan is an individually-designed plan and received a favorable determination letter from the IRS, enter the date of the plan’s last favorable

determination letter

23 Is the Plan maintained in a U.S. territory (j.e., Puerto Rico (if no election under ERISA section 1022(i)(2) has
been made), American Samoa, Guam, the Commonwealth of the Norther Mariana Islands or the U.S. Virgin
Islands)? .

[] Yes

[] No

SMW0350


Schedule MB, line 6 - Summary of Plan Provisions
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN; 001
May 1, 2015

PLAN HisToRY

Origins/Purpose

The Sheet Metal Workers Local #70 Pension Plan was established effective May 18,
1961 as the result of Collective Bargaining Agreements between the Sheet Metal
Workers International Association Local #70 and the Akron Sheet Metal and Roofing
Contractors Association and other employers coming under the jurisdiction of Local #70.
On April 25, 1990 the Trustees approved changing the name of the Plan to Sheet Metal
Workers Local Pension Plan.

The Pension Plan is managed under the provisions of the Labor Management Relations
Act by a Board of Trustees consisting of an equal number of representatives from Labor
and from Management.

The purpose of the Pension Plan is to provide Normal and Early Retirement Benefits,
Joint and 50% Survivor Benefits, Optional Retirement Benefits, Total and Permanent
Disability Benefits, Vested Benefits and Death Benefits. The benefits first became
payable on May 1, 1962.

Employer Contributions

The Pension Plan is financed entirely by contributions from the employers as specified in
the Collective Bargaining Agreements. Following is a partial listing of hourly pension
contribution rates.

Hourly Rate
Under Preferred

Participants’ Classification | Effective Date Schedule
Building Trades Journeymen

Akron June 1, 2012 $5.18

Wheeling July 1, 2012 $ 4.60
Building Trades Apprentices

Akron June 1, 2012 $0.76

Wheeling July 1, 2012 $0.30
Residential Workers

Akron March 1, 2013 $0.77
Production Workers

Industrial Workers June 1, 2012 $ 0.61

. . . Page A-1
United Actuarial Services, Inc.

SMW0366


Form 5500 Annual Return/Report of Employee Benefit Plan (OMB Nos. 1210-0110

1210-0089
Deparment Do Treasury This form is required to be filed for employee benefit plans under sections 104
tomel Revenue Service and 4065 of the Employee Retirement Income Security Act of 1974 (ERISA) and
Deparment of Labor i
emperee bane sections 6047(e), 6057(b), and 6058(a) of the Internal Revenue Code (the Code). 2015
‘Adminssvation > Complete all entries in accordance with
Pension Benet Guaranty Corporation the instructions to the Form 5500,
This Form Is Open to Public
inspection
[Part _[ Annual Report Identification information
For calendar plan year 2015 or fiscal plan year beginning 05/01/201 and ending 0473072016
A This returnireportis for: kX] a muttiempioyer pian; {J 2 muttipte-employer plan (Filers checking this box must attach a list of
. participating employer information in accordance with the form instructions); or
[J 2 single-emptoyer pian; [] aDre (specity)
B This retumreportis: [] the first returnireport; [] the finat return/report;
(an amended returnireport; [J 2 shor pian year return/report (less than 12 months).
C Ifthe plan is a collectively-bargained plan, check here... o.oo cee eeeceeeeceeeectvteeeeceees » kl
D Check box if filing under: fj Form 5558; [] automatic extension; [] the DFVC program;
[| speciat extension (enter description)
[ Part Il | Basic Plan Information—enter all requested information
ta Name of plan 1b Three-digit plan 001
SHEET METAL WORKERS LOCAL PENSION PLAN number (PN) >
‘1e Effective date of plan
05/18/1961
2a Pian sponsor's name (employer, if for a single-employer plan) 2b Employer identification
Mailing address {include room, apt, suite no. and street, or P.O. Box) Number (EIN)
City or town, state or province, country, and ZIP or foreign postal cade (if foreign, see instructions) 34-6666753
BOARD OF TRUSTEES SHEET METAL WORKERS LOCAL PENSION PLAN ‘2c Pian Sponsor's telephone
number
330-833-2888
1890 VENTURE CIRCLE SE 2d Business code (see
instructions)
MASSILLON OH 44646 238220

Caution: A penalty for the late or incomplete filing of this return/report will be assessed unless reasonable cause is established.
Under penalties of perjury and other penalties set forth in the instructions, | declare that | have examined this retum/tepor, including accompanying schedules,
Statements and attachments, as well as the electronic version of this retumm/report, and to the best of my knowledge and belief, itis true, correct, and complete,

Price Us. i ial BRAD KLAUSNER
Date Enter name of individual signing as plan administrator
sign LF] PHILIP CHIARAPPA
Date Enter name of individual signing as employer or plan sponsor
SIGN
HERE
Signature of DFE Date Enter name of individual signing as DFE
Preparer’s name (including firm name, if applicable) and address (include room or suite number) Preparer’s telephone number
For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500. Form 5500 (2015)

v. 150123

SMW0342


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 6
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 6 - Summary of Plan Provisions
Attached is a summary of the plan provisions valued. The plan provisions are the same

as those valued in the preceding year.

Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Attached is a summary of the actuarial assumptions and methods used to perform the
most recent valuation.

SMW0389


‘Schedule MB (Form 5500) 2015 Page3-[_]

(1) Males. 6e(4) 11P+1 11P+1
(2) Females. 6e(2) LLEP+1 LEP +1
di Valuation liability interest rate .. 6d 8.00 % 8.00 %
© Expense loading .. 6e 100.0% [] a % | i Na
f Salary scale. 6f % x) NIA
Estimated investment return on actuarial value of assels for year ending on the valuation date .. 1.8%
hh Estimated investment return on current value of assets for year ending on the valuation date. 7.4%
7 New amortization bases established in the current plan year.
(1) Type of base (2) Initial balance @) Amortization Charge/Credit
1 3,199, 565 346,115
4 51,343 5,554

8 Miscellaneous information:

a Ifa waiver of a funding deficiency has been approved for this plan year, enter the date (MM-DD-YYYY) of the ta
ruling letter granting the approval

(4) is the plan required to provide a projection of expected benefit payments? (See the instructions.) If Yes," attach a
schedule .

fi] Yes [] No

‘b(2) Is the plan required to provide a Schedule of Active Participant ‘Data? (See the instructions.) if Yes,” attach a
schedule.
© Are any of the plan's amortization bases operating under an extension of time under section 412(e) (as in effect prior to
2008) or section 431(d) of the Code?..

di If line cis “Yes,” provide the following additional information:

(1) Was an extension granted automatic approval under section 431(d)(1) of the Code?..

{2) If line 8d(1) is "Yes," enter the number of years by which the amortization period was extended ..
(3) Was an extension approved by the Internal Revenue Service under section 412(e) (as in effect prior to

fi Yes [] No
(1 ves fx] No

[esa [

[1 Yes [J No

2008) or 431(d)(2) of the Code’...
(4) ifline 84(3) is “Yes,” enter number of years by which the amortization period was extended (notincluding | gag)
the number of years in line (2)).. su

(8) If line 8d(3) is “Yes,” enter the date of the ruling letter approving the extension. 8d(5)

(6) Ifine 84(3) is “Yes.” is the amortization base eligible for amortization using interest rates applicable under section
6621(b) of the Code for years beginning after 20077... .

O ves [] No

@ if box 5h is checked or line 8c is “Yes,” enter the difference between the minimum required contribution for the

year and the minimum that would have been required without using the shortfall method or extending the 86
amortization base(s)....
9 Funding standard account statement for this plan year:
Charges to funding standard account:
@ Prior year funding deficiency, if any.. 9a 2,245, 624
b Employer's normal cost for pian year as of valuation date. 9b 259,615
© Amortization charges as of valuation date: Outstanding balance
(1) Allbases except funding waivers and certain bases for which the ge(t) .
amortization period has been extended... 59,329,988 8,686,205
(2) Funding waivers.. 8c(2) 0 ()
(3) Certain bases for which the amortization period has been extended 9c(3) 0 0
d Interest as applicable on lines 9a, 9b, and 8c... od 895,311
@ Total charges. Add lines 9a through 94... e 12,086,755
Credits to funding standard account:
f Prior year credit balance, if any. of 0
Q Employer contributions. Total from column (b) of line 3 .. 99 3,815, 488
Outstanding balance
h Amortization credits as of valuation date... 25,209,791 5,927, 467
9 594,817

i Interest as applicable to end of plan year on lines 9f, Sg, and 9h...

SMW0353


Page 2-[__]

Schedule MB (Form 5500) 2015

2 Operational information as of beginning of this plan year:

@ Current value of assets (see instructions) .. 2a 41,508,264
b “RPA‘S¢" current liability/parlicipant count breakdown: (1) Number of participants (2) Current tiabitity,
(1) For retired participants and beneficiaries receiving payment. 521 69,290,077
(2) For terminated vested participants .. 376 27,691,767
{3) For active participants:
(a) Non-vested benefits. 1,820,353
{b) Vested benefits .. 51,569, 422
{c) Total active. 648 53,389,775
(4) Total... 1,545) 150,371,619
© Ifthe percentage resulting from dividing line 2a by line 2b(4), column (2), is less than 70%, enter such 2c
percentage. 27.60%

3 Contributions made to the plan for the plan year by employer(s) and employees:

(@) Date (b) Amount paid by (c) Amount paid by (a) Date {b) Amount paid by {e) Amount paid by
(MM-DD-YYYY) employer(s) employees (MM-DD-YYYY) employer(s) employees
04/30/2016 3,815, 488

Totals > | 3(b) 3,815, 488| 3c) | 0
4 information on plan status:
4a 56.6 %

@ Funded percentage for monitoring plan's status (line 1b(2) divided by line 1c(3))

b Enter code to indicate plan's status (see instructions for attachment of supporting evidence of plan's status). If

code Is "N,” go to line 5.
Is the plan making the scheduled progress under any applicable funding improvement or rehabilitation plan?...

°

If the plan is in critical status or critical and deciining status, were any benefits reduced (see instructions)? ..

a

if line d is *Yes,” enter the reduction in liability resulting from the reduction in benefits (see instructions),
measured as of the valuation date ..

c)

If the rehabilitation plan projects emergence from critical status or critical and declining status, enter the pian

year in which it is projected to emerge.
if the rehabilitation plan is based on forestalling possible insolvency, enter the plan year in which insolvency is

expected and check here

~

4b

[] ves k) No

af

2033

5 Actuarial cost method used as the basis for this plan year's funding standard account computations (check all that apply):

b  [] Entry age normal
 — [] individual level premium
[] other (specity):

a [] Attained age normal
e@  [] Frozen initial nabiity

i [] Reorganization j

9 [] Individual aggregate

ck] Accrued benefit (unit credit)

a (J Aagregate
h [J Shortfat

k If boxh is checked, enter period of use of shortfall method ...
| Has a change been made in funding method for this plan year?..
m If line lis “Yes,” was the change made pursuant to Revenue Procedure 2000-40 or other automatic approval? ..

1 Ifline IIs “Yes,” and line m Is *No,” enter the date (MM-DD-YYYY) of the ruling letter (individual or class)
approving the change in funding method ..

Sn

6 Checklist of certain actuarial assumptions:
@ Interest rate for “RPA ‘94° current liability.

6a 3.37%

Pre-retirement

Post-retirement

LT ves [] No ik NIA

b Rates specified In insurance or annuity contracts.

[] ves [] No fq Na

© Mortality table code for valuation purposes:

SMW0352


Schedule R, Update of Rehabilitation Plan

Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 007
May 1, 2015

SUMMARY OF REHABILITATION PLAN (CONT.)

Exhaustion of all Reasonable Measures Under IRC 432(e)(3)(A)(ii)

The benefit reductions in the above Preferred Schedule include all adjustable benefits
other than the benefit credit rate. The present benefit credit rate is 36%. This reduction
was made by the Trustees prior to the various effective dates appearing in the Pension
Protection Act. The Trustees, based upon the information that presently is before them,
are convinced that any further reduction to the benefit credit rate would significantly
damage the ability of the Plan to meet its monthly benefit obligations and would
accelerate insolvency. The Trustees reasonably have concluded that any further
reduction in the benefit credit rate would cause Sheet Metal Workers’ Local Union 33 to
experience a loss of members and would make it much more difficult for the Union to
attract new members. This would result in a decrease in contributions to the Plan and
inevitably would cause a net decrease in future funding of the Plan.

In addition, investment losses since May, 2008 have made recovery by the Plan more
difficult, to the point of being improbable. This situation was not anticipated by the
Trustees when the original Rehabilitation Plan was developed and adopted. Significant
contribution increases to the Plan have been made by signatory contractors since May,
2008. This has resulted in significant wage deferments by members of the Union. As
indicated above, this undoubtedly will result in a loss of members by the Union and will
make it extremely difficult for the Union to attract new members. These significant
contribution increases have made it very difficult for signatory contractors to remain
competitive in the sheet metal construction market. As with the Union's loss of
membership, the Trustees anticipate, legitimately, that employers will seek to avoid their
obligations under the Union's collective bargaining agreement, will terminate their
operations or will seek bankruptcy protection to discharge their contribution obligations
and any withdrawal liability allocations or assessments. This will result in a net decrease
in future funding for the Plan. The Trustees will continue to monitor this situation on an
annual basis and will make further adjustments to the Rehabilitation Plan as may be

required.

The Trustees reasonably believe, based upon the information and projections received
from the Plan’s actuary, that the above projections meet the criteria for forestalling

insolvency.

SMW0402


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN, 001
May 1, 2015

ACTUARIAL ASSUMPTIONS (CONT.)

Withdrawal Ultimate rates according to T-5 Turnover Table from The
Actuary’s Pension Handbook (less GAM 51 mortality)
adjusted for ages 45 and later to account for the
elimination of the disability benefit - specimen rates

shown below:
Withdrawal
Age Rate
25 .0764
30 0711
35 0613
40 .0493
45 .0389
50 0241

Select rates are 30% at each age for the first and second
year of employment and 15% at each age for the third
and fourth year of employment.

Retirement
Active lives When eligible and according to annual retirement
decrements below:
Retirement

Age Rate

55 - 60 10

61 .20

62 - 64 .50

65 or older 1.00

Resulting in an average expected retirement age of 60.6

Inactive vested lives Terminated before 5/1/99 - 62 or current age, if older.
Terminated after 5/1/99 - 60 or current age, if older.

. . Page B-2
United Actuarial Services, Inc.

SMW0385


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS

The non prescribed actuarial assumptions were selected to provide a reasonable long
term estimate of developing experience. The assumptions are reviewed annually,
including a comparison to actual experience. The following describes our rationale for
the selection of each non-prescribed assumption that has a significant effect on the

valuation results.

ERISA rate of return used | Future rates of return were modeled based on the Plan's
to value liabilities current investment policy asset allocation and composite,
long-term capital market assumptions taken from Horizon
Actuarial's 2015 survey of investment consultants.

Based on this analysis, we selected a final assumed rate
of 8.00%, which we feel is reasonable. This rate may not
be appropriate for other purposes such as settlement of
liabilities.

Mortality The RP 2000 fully generational, combined healthy
mortality table was chosen as the base table for this
population. Projected mortality improvement was
determined using Scale AA.

Based on the industry of plan participants, the blue collar
adjustment was applied.

Finally, a 1-year set forward was applied in order to more
closely match projected deaths for the coming plan year
to extrapolated deaths derived from a study of retiree
deaths between May 1, 2006 to April 30, 2011.

Mortality is monitored annually and no further adjustments
are deemed necessary at this time.

Retirement Actual rates of retirement by age were last studied for this
plan for the period May 1, 2010 to April 30, 2015. The
assumed future rates of retirement were selected based
on the results of this study.

Withdrawal Actual rates of withdrawal by age were last studied for
this plan for the period May 1, 2010 to April 30, 2015. The
assumed future rates of withdrawal were adjusted based
on the results of this study.

Future hours worked Based on review of recent plan experience.

. . . Page B-4
United Actuarial Services, Inc.

SMW0373


Schedule MB, line 6 - Summary of Pian Provisions
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

PLAN HISTORY

Origins/Purpose

The Sheet Metal Workers Local #70 Pension Plan was established effective May 18,
1961 as the result of Collective Bargaining Agreements between the Sheet Metal
Workers International Association Local #70 and the Akron Sheet Metal and Roofing
Contractors Association and other employers coming under the jurisdiction of Local #70.
On April 25, 1990 the Trustees approved changing the name of the Plan to Sheet Metal
Workers Local Pension Plan.

The Pension Plan is managed under the provisions of the Labor Management Relations
Act by a Board of Trustees consisting of an equal number of representatives from Labor
and from Management.

The purpose of the Pension Plan is to provide Normal and Early Retirement Benefits,
Joint and 50% Survivor Benefits, Optional Retirement Benefits, Total and Permanent
Disability Benefits, Vested Benefits and Death Benefits. The benefits first became
payable on May 1, 1962.

Employer Contributions

The Pension Plan is financed entirely by contributions from the employers as specified in
the Collective Bargaining Agreements. Following is a partial listing of hourly pension
contribution rates.

Hourly Rate
Under Preferred

Participants’ Classification |_Effective Date Schedule
Building Trades Journeymen

Akron June 1, 2012 $5.18

Wheeling duly 1, 2012 $ 4.60
Building Trades Apprentices

Akron June 1, 2012 $0.76

Wheeling July 1, 2012 $ 0.30
Residential Workers

Akron March 1, 2013 $0.77
Production Workers

Industrial Workers June 1, 2012 $0.61

. Page A-1
United Actuarial Services, Inc.

SMW0390


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

ACTUARIAL ASSUMPTIONS (CONT.)

Future hours worked
Vested lives 1,650 hours per year, 0 after assumed retirement age

Non-vested lives 4,250 hours per year, 0 after assumed retirement age

Future hourly contribution | Based on individual's average rate for the most recent

rate plan year.

Age of participants with Based on average age of participants with recorded birth
unrecorded birth dates dates and same vesting status.

Marriage assumptions 400% assumed married with the male spouse 3 years

older than his wife.

Inactive vested lives over | Continuing inactive vested participants over age 70 are
age 70 assumed deceased and are not valued.

QDRO benefits Benefits to alternate payee included with participant's
benefit until payment commences.

Section 415 limit

assumptions
Dollar limit $210,000 per year.
Assumed form of Qualified joint and 75% survivor annuity.
payment for those limited
by Section 415
Benefits not valued None

Page B-3
United Actuarial Services, Inc.

SMW0372


SHEET METAL WORKERS LOCAL PENSION PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Years Ended April 30, 2016 and 2015

2016 O15

ADDITIONS AND INVESTMENT ACTIVITY
Investment activity:
Net (depreciation) appreciation in fair value of investments $ (357,806) $ 2,419,846

Dividends and interest 502,687 722,691
144,881 3,142,537
Less: Investment expenses (48,697) (130,371)
96,184 3,012,166
Employers' contributions 3,860,606 3,741,614
Insurance company experience credit and other income 30,370 64,506
Total additions and investment activity 3,987,160 6,818,286
DEDUCTIONS
Benefits paid directly to participants 5,265,389 5,219,325
Administrative expenses 433,122 375,253
Reciprocity paid 45,118 45,096
Total deductions 5,743,629 5,639,674
NET (DECREASE) INCREASE (1,756,469) 1,178,612
NET ASSETS AVAILABLE FOR BENEFITS —
BEGINNING OF YEAR 41,508,264 40,329,652
END OF YEAR $ 39,751,795 $ 41,508,264

The accompanying notes are an integral part of these financial statements.
4.

SMW0409


Schedule R (Form $500) 2015 Page 2

[Part V [_Additional Information for Multiemployer Defined Benefit Pension Plans
13 Enter the following information for each employer that contributed more than 5% of total contributions to the plan during the plan year (measured in
dollars), See instructions. Complete as many entries as needed to report all applicable employers.

@ Name of contributing employer THE K COMPANY, INC.

b EIN 34-1113803 ¢__Dollar amount contributed by employer 428,058

Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box [ ]

and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month 05 Day 31 Year_2017

© Contribution rate information (if more than one rate applies, check this box ] and see instructions regarding required attachment. Otherwise,
complete lines 13e(1) and 13e(2),)

(1) Contribution rate (in dollars and cents) 5.18
(2) __Base unit measure: [x}_ Hourly Weekly Unit of production _[] Other (specify):
@ Name of contributing employer EAST COAST METAL SYSTEMS, INC.
b EIN 55-0702472 __ Dollar amount contributed by employer 415,514

d Date collective bargaining agreement expires (if employer contributes under more than one collective bargaining agreement, check box
and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month 06 Day 30 Year_2019
© Contribution rate information (if more than one rate applies, check this box] and see instructions regarding required attachment. Otherwise,

complete lines 13e(1) and 13e(2).)
(1) Contribution rate (in dollars and cen

its) 4.60
(2) Base unit measure: [x] Hourly al Weekly Unit of production ial Other (specify):

@ _ Name of contributing employer RG SMITH CO., INC.
b EIN 34-0678463 Dollar amount contributed by employer 308,377

Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box | |
and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month 05 Day__31__ Year_2017
Contribution rate information (if more than one rate applies, check this box [ | and see instructions regarding required attachment. Otherwise,

complete lines 13e(1) and 13e(2).)
(1) Contribution rate (in dollars and cere 5.18

(2)_Base unit measure: fx] Hourly Weekly Unit of production _[]_Other (specify):

@__Name of contributing employer METAL MASTERS, INC.
b_ EIN 34-1594389 €__ Dollar amount contributed by employer 236,295

Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box [ |
and see instructions regarding required attachment. Otherwise, enter the applicable date.)_Month os Day 31 Year 2017
© Contribution rate information (if more than one rate applies, check this box [ | and see instructions regarding required attachment. Otherwise,
complete lines 13e(1) and 13e(2).)
(1) Contribution rate oe dollars and cents) 5.18
(2) Base unit measure: fx] Hourly Weekly Unit of production _[] Other (specify):
@__Name of contributing employer SHEET METAL CRAFTERS
b_ EIN 34-1617710 __ Dollar amount contributed by employer 219,103

d_ Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box | |
and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month 05 Day__31___Year_ 2017
@ Contribution rate information (if more than one rate applies, check this box [| and see instructions regarding required attachment. Otherwise,
complete lines 13e(1) and 13e(2).)
(1) Contribution rate (in dollars and cents} 5.18
(2) __Base unit measure: [x] Hourly Weekly Unit of production _[] Other (specify):
@__Name of contributing employer OHIO FABRICATORS, INC.
b_ EIN 34-1053553 C__Dollar amount contributed by employer 201,712

d Date collective bargaining agreement expires (If employer contributes under more than one collective bargaining agreement, check box[]
and see instructions regarding required attachment. Otherwise, enter the applicable date.) Month O05 Day__31  Year_2

© Contribution rate information (if more than one rate applies, check this box | | and see instructions regarding required attachment. Otherwise,

complete lines 13e(1) and 13e(2).)
(1) Contribution rate (in dollars and one 5.18

(2)__Base unit measure: [x] Hourly Weekly Unit of production _[] Other (specify):

SMW0349


United Actuarial Services, Inc.
Actuaries and Consultants

Board of Trustces -3- July 29, 2016

1 am a member of the American Academy of Actuaries and meet the Qualification Standards of
the American Academy of Actuaries to render the actuarial opinion contained herein. We will
have a full update of the Plan’s funded position with the next valuation report.

Erika L. Creager, EA, MAAA
Consulting Actuary
EA number: 14-07288

Date of Signature: PLE ol &

cc: Secretary of the Treasury
Mary Weir, Fund Administrator
Ed Pasternak, Fund Counsel
Mike Novara, Fund Counsel
Paul Catenacci, Fund Counsel
Mark Crawford, Auditor

mi\docstsm localidb 02476\vuluations\20160501\ppa\20 160501 ppa cert.docx

SMW0363


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 10
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 10- Accumulated Funding Deficiency

Pursuant to IRC Section 4971(g)(1), the excise tax related to the accumulated funding
deficiency that would otherwise be assessed under IRC Section 497 1(a) and/or (b) is not
assessed because:

¢ The Plan is in critical status for the plan year ended April 30, 2016.

© The rehabilitation period is May 1, 2011 to April 30, 2024. Since the rehabilitation
period has not yet expired, the Plan has not failed to meet the requirements of IRC
Section 432(e) by the end of the rehabilitation period.

« The Plan has not received certifications under IRC Section 432(b)(3)(A)(ii) for 3

consecutive plan years that it is not meeting its requirements under the rehabilitation
plan.

SMW0400


Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects,
information regarding the Plan's net assets available for benefits as of April 30, 2016 and
changes therein for the year then ended, and its financial status as of April 30, 2015 and changes
therein for the year then ended in accordance with accounting principles generally accepted in
the United States of America.

Report on Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the financial statements as a
whole. The supplemental schedules of administrative expenses, assets (held at end of year), and
reportable transactions are presented for purposes of additional analysis and are not a required
part of the financial statements, but the schedules of assets (held at end of year) and reportable
transactions are supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974. Such information is the responsibility of the Plan's management and was derived from
and relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audits
of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole.

Emphasis of Matter in the Audit Report
As discussed in Note 2 to the financial statements, in 2016, the Plan adopted new guidance

relative to certain investment disclosures which was retrospectively applied to the 2015 financial
statements. Our opinion is not modified with respect to this matter.

Canton, Ohio
February 3, 2017

-2-

SMW0407


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 10
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 10- Accumulated Funding Deficiency

Pursuant to IRC Section 4971(g)(1), the excise tax related to the accumulated funding
deficiency that would otherwise be assessed under IRC Section 497 1(a) and/or (b) is not
assessed because:

¢ The Plan is in critical status for the plan year ended April 30, 2016.

« The rehabilitation period is May 1, 2011 to April 30, 2024. Since the rehabilitation
period has not yet expired, the Plan has not failed to meet the requirements of IRC
Section 432(e) by the end of the rehabilitation period.

¢ The Plan has not received certifications under IRC Section 432(b)(3)(A)(ii) for 3
consecutive plan years that it is not meeting its requirements under the rehabilitation

plan.

SMW0380


Note 8.

Note 9.

Note 10.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Tax Status

The Internal Revenue Service has advised that the Plan is qualified under Section
401(a) of the Internal Revenue Code and, as such, is exempt from federal income
tax. The Plan obtained its latest determination letter on December 15, 2015 in
which the Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code (IRC).

The plan administrator has analyzed the tax positions taken by the Plan and has
concluded that as of April 30, 2016, there are no uncertain positions taken or
expected to be taken that would require such recognition or disclosure in the
financial statements. As of April 30, 2016, the Plan's tax years from 2012 and
thereafter remain subject to examination by the Internal Revenue Service, as well as
various other taxing authorities.

Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed
to various risks such as interest rate, market, and credit risks. Due to the level of
risk associated with certain investment securities, it is at least reasonably possible
that changes in the values of investment securities will occur in the near term and
that such changes could materially affect the amounts reported in the statement of
net assets available for benefits.

Plan contributions are made and the actuarial present value of accumulated plan
benefits are reported based on certain assumptions pertaining to interest rates,
inflation rates, and employee demographics, all of which are subject to change.
Due to uncertainties inherent in the estimations and assumptions process, it is at
least reasonably possible that changes in these estimates and assumptions in the
near term would be material to the financial statements.

Related Party and Party in Interest Transactions
The Plan pays certain expenses related to plan operations and investment activity to

various service providers. Certain of these transactions are party in interest
transactions under ERISA.

-15-

SMW0420


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 11
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 11 - Justification for Change in Actuarial Assumptions
The assumptions and methods differ from those used the preceding year in the following
respects:

« The assumed select withdrawal rates were changed from 3 year select rates of 30%,
20% and 10% to 4 year select rates of 30%, 30%, 15% and 15%. This change
reflects our best estimate of future withdrawal patterns based on recent plan
experience.

* The assumed retirement rates were changed according to the schedule in Appendix
B to represent our best estimate of future retirement patterns based on recent plan
experience.

* The pop-up load was decreased on liabilities for retirees receiving a joint and
survivor form of benefit (who retired between January 1, 1995 and July 31, 2009 with
a subsidized pop-up feature) from 1.6% to 1.4%.

e The current liability interest rate was changed from 3.61% to 3.37%. The new rate is
within established statutory guidelines.

Actuary’s Statement of Reliance

In completing this Schedule MB, the enrolled actuary has relied upon the correctness of
the financial information presented in the pension fund audit and upon the accuracy and
completeness of participant census data provided by the plan administrator.

SMW0381


Sheet Metal Workers Local Pension Plan

EIN: 34-6666753/PN: 001

Attachment to 2015 Schedule MB: Lines 9c and 9h
Schedule of Funding Standard Account Bases

SMW0396

. —_ ee 5472015 «1/2015 |
Date Source of Change in Original | Original . Remaining Period Outstanding | Amortization |
l Established Unfunded Liability Amount Period __Years_| Months Balance Payment _|
5/1/2011 Assumption 351,608 15 4 0 293,258 38,035
5/1/2011 Relief 09 Asset Loss 577,669 27 23 10) 547,868 48,914
5/1/2012 Assumption 102,128 15 12 0 89,915 11,048
5/1/2012 Loss 6,632,881 15 12 0 5,839,832 717,515
5/1/2012 Relief 09 Asset Loss 314,840 26 23 0 302,056 26,968
5/1/2013 Relief 09 Asset Loss 1,545,407 25 23 0 1,501,437 134,048
5/1/2014 Relief 09 Asset Loss 677,001 24 23 0 666,861 59,537
5/1/2015 Assumption 51,343 15 15 0 51,343 5,554
5/1/2015 Loss 3,199,565 15 15 0 3,199,565 346,115
Total Charges: 59,329,988 8,686,205
Credits
5/1/2009 Combined Credits 23,103,637 9 3 0 9,531,199 3,424,466
8/1/2009 Amendment 6,640,390 15 9 3 4,951,961 718,328
5/1/2010 Gain 6,396,242 15 10 0 5,014,243 691,917
5/1/2011 Gain 2,945,251 15 11 0 2,456,464 318,604
5/1/2013 Gain 1,697,540 15 13 i) 1,567,499 183,632
§/1/2013 Plan Amendment 199,130 15 13 0 183,876 21,541
5/1/2014 Assumption 5,193 15 14 0 5,001 562
§/1/2014 Gain 1,449,358 15 14 0 1,395,979 156,785
5/1/2014 Plan Amendment 107,530 15 14 1) 103,569 11,632
Total Credits: 25,209,791 5,527,467
Net Charges: 34,120,197 3,188,738
Less Credit Balance: 2,245,624
Less Reconciliation Balance: 0
Unfunded Actuarial Liability: 36,365,821
Page C-2


Schedule MB, line 6 - Summary of Plan Provisions

Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001

May 1, 2015

SUMMARY OF PLAN PROVISIONS (CONT.)

Vested benefit
Eligibility

Monthly amount

Optional forms of
payment
Joint and 50% survivor
benefit

Joint and 50% survivor
benefit (with pop-up)

Joint and 75% survivor
benefit

Joint and 75% survivor
benefit (with pop-up)

Life-five years certain
benefit

Life-ten years certain
benefit

Pre-retirement surviving
spouse benefit
Eligibility

Monthly amount

United Actuarial Services, Inc.

5 years of service. No longer in covered employment.

Normal commencing at age 61 or early commencing prior
to age 61. Payable for life.

Normal or early, actuarially reduced. Payable for life.
Spouse receives 50% for life upon participant's death.

Same as Joint and 50% survivor benefit except if spouse
predeceases participant, participant's benefit is increased
to the original unreduced normal or early. Effective
August 1, 2009, the pop-up feature is no longer
subsidized.

Normal or early, actuarially reduced. Payable for life.
Spouse receives 75% for life upon participant's death.

Same as Joint and 75% survivor benefit except if spouse
predeceases participant, participant's benefit is increased
to the original unreduced normal or early. Effective
August 1, 2009, the pop-up feature is no longer
subsidized.

Normal or early, actuarially reduced. Payable for life. If
participant dies before 60 payments, beneficiary receives
remainder of payments. Effective August 1, 2009, this
optional form is no longer subsidized.

Normal or early, actuarially reduced. Payable for life. If

participant dies before 120 payments, beneficiary
receives remainder of payments.

Death of married vested participant
50% of participant's joint and 50% survivor that would

have been payable at age 55 (or age at death, if later)
commencing at participant’s earliest retirement date.

Page A-4

SMW0369


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 4F
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 4f - Assumptions Used to Project Plan Year in which
Insolvency is Expected

The assumptions used in the projection are the same as those detailed in the July 29,
2016 certification.

Assumed return on fund 0.35% estimated return for the plan year ending 2016

assets 8.00% thereafter

Future total hours worked | 1,087,575 for the plan year ending 2016
950,000 thereafter

Contribution rate None

increases

Plan changes None

SMW0399


SHEET METAL WORKERS LOCAL PENSION PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

April 30, 2016 and 2015

2016 2015
ASSETS
Investments at fair value:
Private equity and hedge funds $ 11,654,317 $ 9,841,404
Mutual funds 11,971,162 14,696,900
Insurance company separate account 7,072,097 6,311,979
Common stocks 7,687,284 9,105,267
Money market funds 391,567 541,322
Total investments 38,776,427 40,496,872
Receivables:
Employers’ contributions 459,762 431,531
Insurance company experience credit 30,370 43,156
Total receivables 490,132 474,687
Cash 223,300 549,974
Prepaid expenses 333,379 18,107
Total assets 39,823,238 41,539,640
LIABILITIES
Accounts payable 71,443 31,376
NET ASSETS AVAILABLE FOR BENEFITS $ 39,751,795 $ 41,508,264

The accompanying notes are an integral part of these financial statements.
-3-

SMW0408


Schedule MB (Form 5500) 2015

Page 2-[__]

2 Operational information as of beginning of this plan year:

@ Current value of assets (see instructions) [2a 41,508,264
b “RPA ‘94” current liability/participant count breakdown: (1) Number of participants (2) Current liability
(1) For retired participants and beneficiaries receiving payment. 524) 69,290,077
(2) For terminated vested participants . 376| 27,691,767
(3) For active participants:
(a) Non-vested benefits. 1,820,353
(b) Vested benefits. 51,569,422
(c) Total active. 648) 53,389,775
(4) Total. 1,545) 150,371,619
¢ If the percentage resulting from dividing line 2a by line 2b(4), column (2), is less than 70%, enter such 2¢ 27.60
percentage... 60%

3 Contributions made to the plan for the plan year by employer(s) and employees:

(@) Date (b) Amount paid by {e) Amount paid by (a) Date (b) Amount paid by (e) Amount paid by
(MM-DD-YYYY) employer(s) employees (MM-DD-YYYY) employer(s) employees
04/30/2016 3,815, 488

Totals * | 3(b) 3,815, 488| 3c) | 0
4 Information on plan status:
@ Funded percentage for monitoring plan's status (line 1b(2) divided by line 1¢(3)).. fa 56.6%
b Enter code to indicate plan's status (see instructions for attachment of supporting evidence of plan's status). If | 4, c

code is “N,” go to line 5.

© Is the plan making the scheduled progress under any applicable funding improvement or rehabilitation plan?

d ifthe plan is in critical status or critical and declining status, were any benefits reduced (see instructions)?,

€ Ifline dis “Yes,” enter the reduction in liability resulting from the reduction in adjustable benefits, measured as

of the valuation date.. 4e
f Ifthe rehabilitation plan projects emergence from critical status or critical and declining status, enter the plan
year in which it is projected to emerge. at

If the rehabilitation plan is based on forestalling possible insolvency, enter the plan year in which insolvency is

expected and check here ..

Yes [] No

[Yes [xf No

2033

5 Actuarial cost method used as the basis for this plan year's funding standard account computations (check all that apply):

a [Attained age normal b [J Entry age normal

e@ []] Frozen initial ability f [| Individual tevel premium 9 [| Individual aggregate

c[k Accrued benefit (unit credit)

d O Aggregate

h [J Shortfan

SMW0345


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001

May 1, 2015
ACTUARIAL METHODS
Funding method
Funding period Individual entry age normal with costs spread as a level
dollar amount over service
ERISA Funding Traditional unit credit cost method, effective May 1, 2004.

Population valued
Actives Eligible employees with at least one hour during the

preceding plan year.

Inactive vested Vested participants with no hours during the preceding
plan year.
Retirees Participants and beneficiaries in pay status as of the

valuation date.

Asset valuation method
Actuarial value Smoothed market value with phase-in effective May 1,

4999. Each year's gain (or loss) is spread over a period
of 5 years, The actuarial value is limited to not less than
80% and not more than 120% of the actual market value
of assets in any plan year.

Unfunded vested For the presumptive method, actuarial value is used.
benefits Through April 30, 1999, the actuarial value was equal to
the market value.

Pension Relief Act of 2010 | » 10-year smoothing is assumed to be elected with
respect to the loss incurred during the plan year ended

in 2009.

¢ 30-year amortization of net investment loss was
elected with respect to the loss incurred during the plan
year ended in 2009. The loss was allocated to future
years using the “prospective method” of IRS. The
amount of each allocation is shown in Appendix C.

7 Page B-5
United Actuarial Services, Inc.

SMWO0388


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods

Sheet Metal

Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

ACTUARIAL ASSUMPTIONS (CONT.)

Future hours worked
Vested lives
Non-vested lives

Future hourly contribution
rate

Age of participants with
unrecorded birth dates

Marriage assumptions

Inactive vested lives over
age 70

QDRO benefits

Section 415 limit
assumptions
Dollar limit

Assumed form of
payment for those limited
by Section 415

Benefits not valued

United Actuarial Services, Inc.

4,650 hours per year, 0 after assumed retirement age
1,250 hours per year, 0 after assumed retirement age

Based on individual's average rate for the most recent
plan year.

Based on average age of participants with recorded birth
dates and same vesting status.

100% assumed married with the male spouse 3 years
older than his wife.

Continuing inactive vested participants over age 70 are
assumed deceased and are not valued.

Benefits to alternate payee included with participant's
benefit until payment commences.

$210,000 per year.
Qualified joint and 75% survivor annuity.

None

Page B-3

SMW0386


Note 1.

SHEET METAL WORKERS LOCAL PENSION PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Description of Plan (continued)

A participant who terminates employment after obtaining five or more years
of service shall be 100% vested in his accrued benefit and thus will become
eligible for a normal or early retirement benefit at such time as he/she reaches
normal or early retirement age.

The benefits of any participant who retires after age 70-1/2 shall only be
suspended to the extent his/her monthly pension benefit exceeds the monthly
required minimum distribution amount required pursuant to the Internal
Revenue Code. In addition, to the extent payment of a pension benefit is
commenced after the normal annuity starting date, the Plan shall pay the
retroactive monthly payments along with interest in an amount equivalent to
the actuarial equivalent interest rate. Such payments shall be made in lump-
sum form.

Mandatory or involuntary lump-sum distributions in an amount in excess of
$1,000, but less than $5,000, shall only be made in the form of an automatic
rollover IRA, as provided for by the Plan.

Death and Disability Benefits:

A surviving spouse of a deceased participant who elected the 50% or 75%
survivor benefit and who would have been eligible to receive or was receiving
retirement benefits prior to death will receive 50% or 75% of the retirement
benefit for life.

A surviving spouse of a deceased participant who elected to waive the 50% or
75% survivor benefit and elected a five year certain benefit will receive
monthly payments equal to the amount received at the time of the participant's
death for the remainder of the five year period.

Active participants with at least ten years of service who become totally
disabled are eligible to receive monthly disability benefits equal to 80% of the
normal retirement benefits they have accumulated as of the time they become
disabled.

Funding Policy:

Employers in the Akron/Canton/Mansfield area are required under collective
bargaining agreements to make monthly contributions to the Plan at $5.18 and
$0.76 for each hour worked by journeymen and apprentices, respectively.
Employers in the Wheeling, West Virginia area contribute $4.60 per hour for
the journeymen and $0.30 per hour for apprentices. The rate for the
Production Shops and Industrial workers is $0.61 per hour. The

-6-

SMW0411


SHEET METAL WORKERS LOCAL PENSION PLAN

EIN: 34-6666753/PN: 001

ATTACHMENT TO 2015 SCHEDULE MB: LINE 4
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 4b - Illustration Supporting Actuarial Certification of

Status

The plan was certified in Critical status as of May 1, 2015. Refer to the attached PPA
certification. This result is based on a funded ratio of 56.8%, an existing funding
deficiency, and the Plan projected to remain negative at the end of the 2015-16 plan

year as shown in the table below:

Credit Balance/
As of (Funding Deficiency)
4/30/2016 (2,458,000)

SMW0356


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 4c
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 4c - Documentation Regarding Progress Under Funding
Improvement or Rehabilitation Plan

The Plan has made the scheduled progress as outlined in the 2009 rehabilitation plan as
updated by the Board on June 22, 2016. This is based on the data, plan provisions,
assumptions and methods as described in the attached certification dated July 29, 2016.
Projections indicate that the Plan is not projected to emerge from Critical at the end of
the rehabilitation plan period on April 30, 2024. This rehabilitation plan, however,
includes the use of the “exhaustion of all reasonable measures” clause of IRC
432(e)(3)(A)(ii). Therefore, we interpret scheduled progress for this Plan to mean
continued use of all reasonable measures to forestall insolvency. The following
projection of credit balance illustrates that there is a projected deficiency during the

rehabilitation period.

Credit Balance/
As of (Funding Deficiency)

4/30/2015 (2,246,000)
4/30/2016 (2,178,000)
4/30/2017 (2,618,000)
4/30/2018 (2,827,000)
4/30/2019 (6,082,000)
4/30/2020 (9,190,000)
4/30/2021 (12,016,000)
4/30/2022 (14,751,000)
4130/2023 (17,516,000)
4130/2024 (19,711,000)
4/30/2025 (22,529,000)
4130/2026 (26,239,000)
4/30/2027 (30,114,000)
4/30/2028 (33,289,000)
4130/2029 (36,628,000)
4/30/2030 (40,122,000)
4/30/2031 (43,516,000)
4/30/2032 (46,614,000)
4/30/2033 (49,630,000)
4130/2034 (62,257,000)

SMW0398


SHEET METAL WORKERS
LOCAL PENSION PLAN

FINANCIAL REPORT

APRIL 30, 2016 and 2015

SMW0404


United Actuarial Services, Inc.
Actuarles and Consultants

Board of Trustees -2- July 29, 2015

This certification is based on the following results:

Projected Funded ratio as of May 1, 2015: 56.8%

Previously emerged from critical status using IRC Section No
432(e)(4)(B)(2) special emergence rule:

First projected deficiency April 30, 2016

At least 8 year of benefit payments in plan assets: Yes

Certification of Scheduled Progress

I certify that the above-named has made the scheduled progress _as outlined_in_the 2009

rehabilitation plan updated on May 14, 2015 as of May 1, 2015. Projections indicate that the
Plan is not projected to emerge from Critical status at the end of the rehabilitation plan period as

specified in the updated rehabilitation plan. This rehabilitation plan, however, includes the use
of the “exhaustion of all reasonable measures” clause at IRC 432(e)(3)(A)(ii). Therefore, we
interpret scheduled progress for this Plan to mean continued use of all reasonable measures to

forestall insolvency.

These certifications are intended to be in good faith compliance with the necessary disclosures
for certification and represent my best estimate of the Plan’s funded position.

Basis for Result

The certifications utilize the assumptions, methods, plan provisions and demographic data as
disclosed in the May 1, 2014 actuarial valuation report with the following exceptions:

© Based on the April 30, 2015 unaudited financial statements provided by the plan
administrator, the asset return for the 2014-15 plan year is assumed to be 7.11%. We also
updated the contributions, benefit payments, and expenses for the 2014-15 plan year

based on these financial statements.
« No adjustments were made to the contribution rate assumption.

e Based on information provided by the Trustees regarding projection of future industry
activity, the following hours were assumed: 950,000 for the plan year beginning in 2015
and for each plan year thereafter. For the 2014-15 plan year, our projections used actual
hours of 1,021,976.

SMW0358


SCHEDULE MB Multiemployer Defined Benefit Plan and Certain OMB No. 1210-0110
(Form 5500) Money Purchase Plan Actuarial Information 2015
Department of the Treasury
Intemat Revenue Senice This schedule is required to be filed under section 104 of the Employee
Department of Labor Retirement Income Security Act of 1974 (ERISA) and section 6059 of the , 7
Employee Benefits Security Administration Internal Revenue Code (the Code). This Form Oran to Public
Pension Beneft Guaranty Comoraion > File as an attachment to Form 5500 or 500-SF.
For calendar plan year 2015 or fiscal plan year beginning 05/01/2015 and ending 04/30/2016

> Round off amounts to nearest dollar.
> Caution: A penalty of $1,000 will be assessed for late filing of this report unless reasonable cause is established.
A Name of plan B  Three-digit
SHEET METAL WORKERS LOCAL PENSION PLAN plan number (PN) » 001

C Plan sponsor's name as shown on line 2a of Form 5500 or 5500-SF D Employer Identification Number (EIN)

34-6666753
BOARD OF TRUSTEES SHEET METAL WORKERS LOCAL PENSION PLAN
E Type of plan: (1) [x] Muttiemployer Defined Benefit (2) [] Money Purchase (see instructions)
Ta Enter the valuation date: Month_ 05 Day__01 Year__2015
b Assets
(1) Current value of assets. 1b(1) 41,508,264
(2) Actuarial value of assets for funding standard account 1b(2) 47,518, 829
© (1) Accrued liability for plan using immediate gain methods 4e(1) 83,884,650
(2), Information for plans using spread gain methods:
{a) Unfunded liability for methods with bases... tc(2)(a)

(b) Accrued liability under entry age normal method 1¢(2)(b)
{c) Normal cost under entry age normal method Ac(2\{c)
Accrued liability under unit credit cost method Ac(3) 83,884,650

(3)

d_ Information on current liabilities of the plan:
(1) Amount excluded from current liability attributable to pre-participation service (see instructions) .. 4a(4)
(2) “RPA ‘94" information:
{a) Current liability. 4d(2)(a) 150,371,619
(b) Expected increase in current liability due to benefits accruing during the plan year... 10(2)(b) 0
{c) Expected release from “RPA '94” current liability for the plan year... 14(2)(c) 5,781,159
(3)_ Expected plan disbursements for the plan year 14(3) 5,878,572

‘Statement by Enrolled Actuary
‘To the best of my knowledge, the information supplied in this schedule and accompanying schedules, statements and attachments, if any, is complete and accurate. Each prescribed assumption was applied in
accordance with applicable law and regulations. In my opinion, each other assumption is reasonable (taking into account ‘the experience of the plan and reasonable expectations) and such other assumptions, in

‘combination, offer my best estimate of anticipated experience under the plan.

SIGN

HERE |ERIKA L CREAGER 02/03/2017
Signature of actuary Date
1407288

ERIKA L. CREAGER, EA, MAAA

‘Type or print name of actuary
UNITED ACTUARIAL SERVICES, INC.

Most recent enrollment number
317-580-8631

Telephone number (including area code)

Firm name
11590 N MERIDIAN STREET SUITE 610
CARMEL in__ Seeisseofeg gm
Ifthe actuary has not fully reflected any regulation or ruling promulgated under the statute in completing this schedule, check the box and see i
instructions
‘Schedule MB (Form 5500) 2015

For Paperwork Reduction Act Notice and OMB Control Numbers, see the instructions for Form 5500 or Form 5500-SF.
v. 150123

SMW0344


Sheet Metal Workers Local Pension Plan

EIN: 34-6666753/PN: 001

Attachment to 2015 Schedule MB: Lines 9c and 9h
Schedule of Funding Standard Account Bases

Page C-2

~ a j sii2ois | 5/1/2018 |
Date Source of Change in Original | Original , Remaining Period Outstanding Amortization
|__Established Unfunded Liability Amount Period — Years | Months Balance Payment !
5/1/2011 Assumption 351,608 15 14 to) 293,258 38,035
5/1/2011 Relief 09 Asset Loss 577,669 27 23 0 547,868 48,914
5/1/2012 Assumption 102,128 15 12 ie) 89,915 11,048
5/1/2012 Loss 6,632,881 16 12 0 5,839,832 717,515
5/1/2012 Relief 09 Asset Loss 314,840 26 23 0 302,056 26,968
5/1/2013 Relief 09 Asset Loss 1,545,407 25 23 0 1,501,437 134,048
5/1/2014 Relief 09 Asset Loss 677,001 24 23 0 666,861 59,537
5/1/2015 Assumption 51,343 15 15 0 51,343 5,554
5/1/2015 Loss 3,199,565 15 15 te) 3,199,565 346,115
Total Charges: 59,329,988 8,686,205
Credits
5/1/2009 Combined Credits 23,103,637 9 3 0 9,531,199 3,424,466
8/1/2009 Amendment 6,640,390 15 9 3 4,951,961 718,328
5/1/2010 Gain 6,396,242 15 10 0 5,014,243 691,917
5/1/2011 Gain 2,945,251 15 1 0 2,456,464 318,604
5/1/2013 Gain 1,697,540 15 13 0 1,567,499 183,632
5/1/2013 Plan Amendment 199,130 15 13 0 183,876 21,541
5/1/2014 Assumption 5,193 15 14 0 5,001 562
5/1/2014 Gain 1,449,358 15 14 0 1,395,979 156,785
5/1/2014 Pian Amendment 107,530 15 14 0 103,569 11,632
Total Credits: 25,209,791 5,527,467
Net Charges: 34,120,197 3,158,738
Less Credit Balance: 2,245,624
Less Reconciliation Balance: to)
Unfunded Actuarial Liability: 36,365,821

SMW0379


SHEET METAL WORKERS LOCAL PENSION PLAN

SCHEDULES OF ADMINISTRATIVE EXPENSES

Consulting fees - investments
Administrative fees - Benesys
Administrative fees - other
Consulting fees - actuary
Conferences

Insurance

Legal

Auditing and accounting
Printing and reproduction
Postage

Dues

Trust fees

Storage expense
Miscellaneous expenses

Years Ended April 30, 2016 and 2015

Total administrative expenses

-16-

$

2016 2015
99,663 $ 109,577
96,258 93,457
10,786 12,357
40,950 36,700

2,359 -
59,926 38,677
75,780 26,040
20,000 20,000

3,321 2,843

6,093 4,833

1,105 945
12,095 22,546

2,081 2,122

2,705 5,156

433,122. $ 315,253

SMW0421


Schedule MB, line 6 - Summary of Plan Provisions
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

PLAN History (CONT.)

On January 1, 1981 the Trustees entered into an Immediate Participation Guarantee
Contract with Prudential Insurance Company of America. Prior to January 1, 1981 these
funds were invested in a Deposit Administration Contract with Prudential, whereby all
benefits were fully purchased with the exception of the survivorship portion of Joint and
50% Survivor Benefits and the deferred normal retirement benefit portion of Disability
Benefits. On April 1, 1990, the Plan paid Prudential Insurance Company $6,163,375 to
assume the liability for single life payments to those receiving benefits as of March 31,
1990. After that date, the Fund is responsible only for benefit payments made to
participants who retire after March 31, 1990, together with those survivorship benefits
and deferred disability benefits not purchased and benefit increases granted to retirees
or beneficiaries whose benefits were purchased on March 31, 1990.

Reciprocity
The fund has entered into reciprocity agreements with other pension funds so that
contributions will be transferred to an employee's home fund.

. Page A-2
United Actuarial Services, Inc.

SMW0367


Form 5500 (2015) Page 2

3a

Plan administrator's name and address [ Same as Plan Sponsor
BOARD OF TRUSTEES SHEET METAL WORKERS LOCAL PENSION PLAN

3b Administrator's EIN
34-6666753

3¢ Administrator's telephone

number
1890 VENTURE CIRCLE SE 330-833-2888
MASSILLON OH 44646
4 Ifthe name and/or EIN of the plan sponsor has changed since the last return/report filed for this plan, enter the name, [4b EIN
EIN and the plan number from the last return/report:
Sponsor's name 4c PN
5 Total number of participants at the beginning of the plan year 5 | 1,557
6 Number of participants as of the end of the plan year unless otherwise stated (welfare plans complete only lines 6a(1),
6a(2), 6b, 6c, and 6d).
a(1) Total number of active participants at the beginning of the plan year... .{6a(1) 651
a(2) Total number of active participants at the end of the plan year ... .{6a(2) 655
b_ Retired or separated participants receiving benefits... 6b 433
© Other retired or separated participants entitled to future benefits... 6c 369
d_ Subtotal. Add lines 6a(2), 6b, and 6c. 6d 1,457
@ Deceased participants whose beneficiaries are receiving or are entitled to receive benefits. 6e 121
f Total. Add lines 6d and 6e.... 6f 1,578
Q Number of participants with account balances as of the end of the plan year (only defined contribution plans
complete this item) 6g
h_ Number of participants that terminated employment during the plan year with accrued benefits that were
less than 100% vested
7 Enter the total number of employers obligated to contribute to the plan (only multiemployer plans complete this item) 7 75
8a_ Ifthe plan provides pension benefits, enter the applicable pension feature codes from the List of Plan Characteristics Codes in the instructions:
1B I
b ifthe plan provides welfare benefits, enter the applicable welfare feature codes from the List of Plan Characteristics Codes in the instructions:
9a Plan funding arrangement (check all that apply) 9b Plan benefit arrangement (check all that apply)
(1) Insurance ) Insurance
(2) Code section 412(e)(3) insurance contracts (2) [| Code section 412(e)(3) insurance contracts
(3) Trust (3) fk} Trust
(4) General assets of the sponsor (4) General assets of the sponsor
10 Check all applicable boxes in 10a and 10b to indicate which schedules are attached, and, where indicated, enter the number attached. (See instructions)
@ Pension Schedules b General Schedules
(1) fl R (Retirement Pian information) “ a H. (Financial Information)
(2) fx] MB (Multiempioyer Defined Benefit Plan and Certain Money (2) 0 1 Financial Information — Small Plan)
Purchase Plan Actuarial Information) - signed by the plan (3) 1 A (insurance information)
actuary (4) (Service Provider Information)
(3) 0 SB (Single-Employer Defined Benefit Plan Actuarial (5) Ry D (DFE/Participating Plan information)
Information) - signed by the plan actuary 6) G (Financial Transaction Schedules)

SMW0343


Schedule MB, line 6 - Summary of Plan Provisions
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

PLAN History (CONT.)

On January 1, 1981 the Trustees entered into an Immediate Participation Guarantee
Contract with Prudential Insurance Company of America. Prior to January 1, 1981 these
funds were invested in a Deposit Administration Contract with Prudential, whereby all
benefits were fully purchased with the exception of the survivorship portion of Joint and
50% Survivor Benefits and the deferred normal retirement benefit portion of Disability
Benefits. On April 1, 1990, the Plan paid Prudential Insurance Company $6,163,375 to
assume the liability for single life payments to those receiving benefits as of March 31,
4990. After that date, the Fund is responsible only for benefit payments made to
participants who retire after March 31, 1990, together with those survivorship benefits
and deferred disability benefits not purchased and benefit increases granted to retirees
or beneficiaries whose benefits were purchased on March 31, 1990.

Reciprocity
The fund has entered into reciprocity agreements with other pension funds so that
contributions will be transferred to an employee's home fund.

Page A-2
United Actuarial Services, Inc.

SMW0391


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 8
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 8b(1) — Schedule of Projection of Expected Benefit

Payments
Below is the projected expected benefit payout from the most recent actuarial valuation.

The projections exclude any future accruals.

Plan Year | Expected Annual

Beginning | Benefit Payments
2015 $ 5,872,756
2016 6,078,387
2017 6,269,699
2018 6,704,357
2019 7,034,855
2020 7,291,390
2021 7,688,734
2022 8,048,239
2023 8,490,630
2024 8,786,973

Schedule MB, line 8b(2) - Schedule of Active Participant Data
Attached is the required Schedule of Active Participant Data from the most recent

actuarial valuation.

SMW0375


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

ACTUARIAL ASSUMPTIONS

The following assumptions are used throughout this report except as specifically noted
herein.

Valuation date May 1, 2015

interest rates
ERISA rate of return 8.0% per year after investment expenses.
used to value liabilities

Current liability 3.37% (in accordance with Section 431(c)(6) of the
Internal Revenue Code)
Operational expenses $270,000
Loading for pop-up Liabilities for retired participants receiving a joint and
feature survivor form of benefit increased 1.4%.
Mortality

Assumed plan mortality | RP 2000 Combined Healthy Generational Mortality Table
using scale AA with blue collar adjustment, set forward 1

year for males and females,

Current liability Separate annuitant and non-annuitant rates based on the
RP-2000 Mortality Tables Report developed for males
and females as prescribed by Section 431(c)(6) of the
Internal Revenue Code.

. . Page B-1
United Actuarial Services, Inc.

SMW0384


Schedule MB, line 6 - Statement of Actuarial Assumptions/Methods
Sheet Metal Workers Local Pension Plan EIN: 34-6666753/PN: 001
May 1, 2015

ACTUARIAL ASSUMPTIONS

The following assumptions are used throughout this report except as specifically noted
herein.

Valuation date May 1, 2015

interest rates
ERISA rate of return 8.0% per year after investment expenses.

used to value liabilities

Current liability 3.37% (in accordance with Section 431(c)(6) of the
Internal Revenue Code)
Operational expenses $270,000
Loading for pop-up Liabilities for retired participants receiving a joint and
feature survivor form of benefit increased 1.4%.
Mortality

Assumed plan mortality | RP 2000 Combined Healthy Generational Mortality Table
using scale AA with blue collar adjustment, set forward 1

year for males and females,

Current liability Separate annuitant and non-annuitant rates based on the
RP-2000 Mortality Tables Report developed for males
and females as prescribed by Section 431(c)(6) of the
Internal Revenue Code.

. Page B-1
United Actuarial Services, Inc.

SMW0370


Schedule MB (Form 5500) 2015 Page 4

J Full funding imitation (FFL) and credits:

(1) ERISA FFL (accrued liability FFL) y(t) 46,047,297
(2) "RPA '94" override (90% current liability FFL) (2) 89,589,545
(3) FFL credit 94(3) 0
Kk (1) Waived funding deficiency... 9k(1) i)
(2) Other credits. 9k(2) t)
1 Total credits. Add lines 9f through 91, 9)(3), 9k(1), and 9k(2)... 91 9,937,772
TM Credit balance: If line 91 is greater than line Se, enter the difference .. am
1 Funding deficiency: If line 9e is greater than line 91, enter the differenc on 2,148, 983
90 Current year's accumulated reconciliation account:
(1) Due to waived funding deficiency accumulated prior to the 2015 plan year 90(1) i}
(2) Due to amortization bases extended and amortized using the interest rate under section 6621{b) of the Code:
{a) Reconciliation outstanding balance as of valuation date..... 90(2)(a) )
(b) Reconciliation amount (line 9¢(3) balance minus line 9o(2)(a)).. 9o(2}(b) 0
(3)_ Total as of valuation date... 90(3) )
40 Contribution necessary to avoid an accumulated funding deficiency. (See instructions. 10 2,148, 983

41. Has a change been made in the actuarial assumptions for the current plan year? If “Yes,” see instructions.

i] ves [] No

SMW0354


maloney

4774 Munson Street NW Suite 402 | Canton, Ohio 44718
P 330.966.9400 F 330.966.9401 w maloneynovotny.com maloney - Novotny.

Independent Auditors' Report

To the Board of Trustees
Sheet Metal Workers Local Pension Plan
Massillon, Ohio

We have audited the accompanying financial statements of Sheet Metal Workers Local Pension
Plan (the "Plan"), which comprise the statements of net assets available for benefits as of April
30, 2016 and 2015, and the related statements of changes in net assets available for benefits for
the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,

whether due to fraud or error.
Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors!
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

-l-

Worthington @QNexia

SMW0406


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 8
STATEMENT BY ENROLLED ACTUARY

Schedule MB, line 8b(1) — Schedule of Projection of Expected Benefit

Payments

Below is the projected expected benefit payout from the most recent actuarial valuation.
The projections exclude any future accruals.

Plan Year | Expected Annual

| Beginning | Benefit Payments
2015 $ §,872,756
2016 6,078,387
2017 6,269,699
2018 6,704,357
2019 7,034,855
2020 7,291,390
2021 7,688,734
2022 8,048,239
2023 8,490,630
2024 8,786,973

Schedule MB, line 8b(2) - Schedule of Active Participant Data

Attached is the required Schedule of Active Participant Data from the most recent

actuarial valuation.

SMW0392


SHEET METAL WORKERS LOCAL PENSION PLAN
EIN: 34-6666753/PN: 001
ATTACHMENT TO 2015 SCHEDULE MB: LINE 9
STATEMENT BY ENROLLED ACTUARY

Schedule MB, lines 9c and 9h - Schedule of Funding Standard Account

Bases
Attached is a schedule of minimum funding amortization bases maintained pursuant to

IRC Section 431.

SMW0394


United Actuarial
Services, Inc.
Actuarles and Consultants

July 29, 2015

Board of Trustees
Sheet Metal Workers Local Pension Fund
Akron, OH

Re: 2015 Actuarial Certification Under the Pension Protection Act

Dear Trustee:

The following information is intended to comply with the annual certification requirements of
IRC section 432, with respect to the funded status of the Sheet Metal Workers’ Local Pension

Fund.
Identifying Information

Plan Name: Sheet Metal Workers’ Local Pension Fund

EIN/Plan #: 34-6666753/001
Plan year of Certification: year beginning May 1, 2015
Plan Sponsor: Board of Trustees of the Sheet Metal Workers’ Local Pension Fund

Sponsor Address: 700 Tower Drive, Suite 300, Troy, MI 48098
Sponsor Telephone: (248) 813-9800
Enrolled Actuary Name: Erika L. Creager

Enrollment Number: 14-07288
Actuary Address: 11590 N. Meridian St., Suite 610, Carmel, IN 46032

Actuary Telephone: (317) 580-8631

Certification of Plan Status

I certify that the above-named Plan is in the following status as of May 1, 2015 (all that apply are
checked):

Safe--Neither Endangered nor Critical Status

Safe Due to Special Rule

Endangered Status

Seriously Endangered Status

Projected to be in Critical Status within 5 years
Critical Status Xx
Critical and Declining Status

11590 North Meridian Street, Suite 610 = Carmel, indiana 46032-4529 « (317) 580-8670 = Fax (317) 580-8651
<<

SMW0357