Exhibit 3: Page 1 of 29

WESTERN STATES OFFICE AND 

PROFESSIONAL EMPLOYEES PENSION FUND

SUSPENSION APPLICATION 

Exhibit 3
Redacted by the U.S. Department of the 

Treasury

j

y 

Pursuant to IRC Section 432{e)(9){C)(i) 

The attached graphs demonstrate that based upon the attached assumptions, the benefit suspension 

being requested in this application is sufficient to avoid Plan insolvency. 

The graphs demonstrate that the Plan is not expected to go insolvent under the assumptions shown, and 

in addition, the Plan's funded status begins to improve over the last five plan years in the 40-year 

extended projection period ending December 31 , 2055. 

This certification was prepared on behalf of the Western States Office and Professional Employees 

Pension Fund based on employee data, asset statements and plan documents provided by the Plan 

Sponsor or its representatives. We relied upon the data as submitted, without formal audit. However, the 

data was tested for reasonableness, and we have no reason to believe that any other information which 

would have had a material effect on the results of this valuation was overlooked. 

Therefore, to the best of our knowledge and belief, the information presented in this certification is 

complete and accurate, and each assumption used represents our best estimate of anticipated 

experience under the Plan. 

The actuarial assumptions used are the same as those used in the January 1, 2016 actuarial valuation, 

except as noted below and in the following table of assumptions: 

1. Updated mortality table, including mortality improvement 

2. An assumption for joint and survivor annuity election 

3. Revised assumed spousal age difference 

4. Estimated contributions and benefit payments for 2016 based on unaudited Administrator 

financial statements as of November 30, 2016 

5. Future investment experience was modified to reflect an estimated 2016 net investment return of 

6.60%, as provided by the Plan's investment consultant and adjusted for operating expenses. 

For 2017 and thereafter, varied expected index returns, based on capital market expectations, 

were used. We have added 0.35% of alpha to the expected index returns to reflect active 

investment management and then subtract assumed operating expenses (see page 10). 

6. Contributions for 11 employers known to have withdrawn in the 2016 Plan Year, including WPAS, 

have been removed from estimates of future accruing contributions and costs. All withdrawn 

employers are assumed to make quarterly withdrawal liability payments, except for ATPA. Due to 

its recent bankruptcy filing, no withdrawal liability payments are assumed to be made by ATPA . 

• '.'6 

- - ---

Paul Graf, A.S.A., E.A., M.A.A.A. Enrolled Actuary No. 14-05627 

February 15, 2017 

Exhibit 3: Page 2 of 29 
Western States Office and Professional Employees Pension Fund 

Exhibit 3: Page 3 of 29

ACTUARIAL METHODS AND ASSUMPTIONS 

METHODS:

Asset Valuation: Assets are valued according to a method which recognizes 20% of each year’s 

excess (or deficiency) of actual investment return on the Market Value of Assets 

over the expected return on the Market Value of Assets in the year the excess (or 

deficiency) occurs. An additional 20% of the excess (or deficiency) is recognized 

in each of the succeeding four years until it is totally recognized. In no event will 

the Actuarial Value be less than 80% or more than 120% of the Market Value. 

Actuarial Cost Method: Unit Credit Cost Method 

Under this method, we determine the present value of all benefits earned through 

the valuation date. An individual's normal cost is the present value of the benefit 

expected to be earned in the valuation year. The total accrued liability is the sum of 

the individual present values for all participants. The Unfunded Accrued Liability 

is the difference between the accrued liability and the assets of the Trust. If the 

assets exceed the accrued liability, the Plan is in a surplus position. This method 

requires that each year’s contributions be applied first to the normal cost, and the 

balance of the contributions applied to amortize the Unfunded Accrued Liability. 

The normal cost is adjusted at the close of the Plan Year to reflect the actual level of 

contributions received during that Plan Year.
Western States Office and Professional Employees Pension Fund 

Exhibit 3: Page 4 of 29

ASSUMPTIONS:

Interest Discount Rate: 7.25% for funding. 

Assumed Rate of Return on 

Investments: 

For 2016, 6.60% after adjusting for operating expenses. For 2017 thereafter, varied 

expected index returns, based on capital market expectations, were used. We have 

added 0.35% of alpha to the expected index returns to reflect active investment 

management and then subtract assumed operating expenses (see page 10). 

Derivation of Net Investment 

Return and Discount Rate for 

FASB ASC 960 Accounting: 

The expected return assumptions are established based on a long run outlook and 

are based on past experience, future expectations and professional judgement. We 

have modeled the assumptions based on average long-term future expected returns 

and their respective capital market assumptions as provided by several investment 

professionals. Based on the inputs of the Plan’s specific target asset allocation, we 

have established the reasonability of the Plan’s assumption. 

Selection of Demographic 

and Other Noneconomic 

Assumptions for Measuring 

Pension Obligations

The demographic and other noneconomic assumptions are established based on a 

long-term outlook and are based on past actuarial experience, future expectations 

and professional judgment. We believe the current demographic and other 

noneconomic assumptions reasonably reflect anticipated experience for the Plan.

Operating Expenses: $1,000,000 for 2016 and 2017, $700,000 for 2018 and all future years. 

Mortality: Healthy Lives: RP2000 Combined Mortality Table projected to 2020 (75% Scale 

BB) for Males and Females 

Disabled Lives: RP2000 Combined Mortality Table projected to 2020 (75% Scale 

BB) for Males and Females with ages set forward 8 years 

Mortality Improvement: The current mortality assumption has been updated to reflect anticipated mortality 

improvement for the Plan. 

Turnover: Table T-7, The Actuary's Pension Handbook. Non-Vested Participants are assumed 

to earn one year of vesting credit annually until vested. 

Retirement Rates: Active participants are assumed to retire based on the following rate table: 

Age Rate of Retirement 

 55 20% 

 56 15% 

 57-59 12% 

 60 15% 

 61 20% 

 62 40% 

 63-70 35% 

 71+ 100% 

Inactive Vested participants are assumed to retire at age 62. 

Disability Incidence: 1952 Society of Actuaries Table, Period 2, Benefit 5. 

Form of Payment: For those not yet in pay status, 55% of participants are assumed to elect a Life 

Annuity and 45% of participants are assumed to elect a 50% Joint and Survivor 

Annuity. 

Marital Status: 80% of non-retired participants are assumed to be married. Spouses are assumed to 

be one year younger than participants in the population. 

Active Employment: Worked at least 200 hours in covered employment. 

Future Employment: Each active participant is assumed to work the same amount of hours worked in the 

prior plan year. 
Western States Office and Professional Employees Pension Fund 

Exhibit 3: Page 5 of 29

ASSUMPTIONS:

Missing Data: If not specified, participants are assumed to be female and the same age as the 

average of participants with the same status code.

Withdrawal: Employers known to have withdrawn prior to and during 2016, including WPAS, 

are assumed to make quarterly withdrawal liability payments; no withdrawal 

liability payments are assumed to be made by ATPA due to its recent bankruptcy 

filing. 

New Entrant Profile:

New Entrants: New entrants are assumed to enter the Plan with an average age of 39 to replace 

participants that terminated employment during the year from actively participating 

employers. This experience includes those that are rehired from terminated nonvested and terminated vested status. All new entrants are assumed to be female. 

CHANGES SINCE PPA 

CERTIFICATION

The mortality assumption for healthy lives was changed from 1983 GAM(F)

Mortality Table to RP2000 Combined Mortality Table projected to 2020 (75% 

Scale BB) for Males and Females.

The mortality assumption for disabled lives was changed from 1983 GAM(F)

Mortality Table with ages set forward 17 years until age 62 to RP2000 Combined 

Mortality Table projected to 2020 (75% Scale BB) for Males and Females with 

ages set forward 8 years.

The form of payment assumption was changed from all participants elect a Life 

Annuity to 55% of participants elect a Life Annuity and 45% elect a 50% Joint and 

Survivor Annuity.

The spousal age difference assumption was changed from the spouse assumed to be 

the same age as the participant to the spouse assumed to be one year younger than 

the participant.

Accruing and supplemental/surcharge contributions for 11 employers known to 

have withdrawn during 2016 have been removed from future expected 

contributions and costs, and quarterly withdrawal liability payments have been 

added to future expected contributions. No withdrawal liability payments are 

expected from ATPA due to its recent bankruptcy filing.
Rael & Letson Expected Investment Return Calculator Results

10-Year Expected Returns

Client Name

Horizon Survey Year (Insert either any 4 digit year between 2013 and 2015)

Date of Asset Allocation (Insert either any 4 digit year between 2013 and 2015)

Short/Long Run/Blended Expected Returns

Summary of Calculations

R&L 

Calculation 

Results

Investment 

Consultant 

Results Check

Arithmetic Return 6.74% 6.74%

Geometric Return (estimate) 6.25% 6.25%

Portfolio Standard Deviation 10.25% 10.25%

Capital Market Assumptions are derived from Horizon's 2014 or 2015 Edition of their Survey of Capital Market Assumptions

If this spreadsheet is used as the only tool for ASOP 27 analysis, it should be disclosed that Horizon's Survey was used.

Input Assets Allocation on "Input Data" tab.

Option to toggle on alpha is located on the "Toggle Alpha" tab.

Western States Office and Professional Employees Pension Fund

OWS - Western States Office and Professional 

Employees Pension Fund

2015

12/31/2015

0

0=10yr; 1=20yr; 2 = blended (generally we are interested in "1" 

which provides a longer run analysis)

Exhibit 3: Page 6 of 29
10-Year Input, Returns, Standard Deviation and Correlation Matrix

Asset Class

Paste 

Values

Asset 

Class Names 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Names

Correlation 

Matrix 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1 19.70% US Equity - Large Cap 8.16% 17.12% 1 1 1

2 4.40% US Equity - Small/Mid Cap 8.98% 20.99% 2 2 0.91 1

3 22.70% Non-US Equity - Developed 9.07% 19.57% 3 3 0.82 0.76 1

4 Non-US Equity - Emerging 11.86% 26.61% 4 4 0.74 0.72 0.8 1

5 27.70% US Corporate Bonds - Core 3.47% 5.60% 5 5 0.19 0.13 0.17 0.14 1

6 US Corporate Bonds - Long Duration 4.29% 10.84% 6 6 0.17 0.11 0.18 0.16 0.91 1

7 US Corporate Bonds - High Yield 6.19% 11.20% 7 7 0.64 0.64 0.62 0.63 0.38 0.38 1

8 Non-US Debt - Developed 2.64% 7.43% 8 8 0.17 0.12 0.34 0.2 0.6 0.55 0.22 1

9 Non-US Debt - Emerging 6.40% 11.66% 9 9 0.54 0.5 0.58 0.65 0.44 0.42 0.61 0.35 1

10 1.70% US Treasuries (Cash Equivalents) 2.11% 2.77% 10 10 -0.17 -0.37 -0.09 -0.16 0.38 0.34 -0.13 0.3 0.14 1

11 TIPS (Inflation-Protected) 3.08% 6.31% 11 11 0.04 -0.01 0.11 0.16 0.72 0.62 0.26 0.53 0.39 0.35 1

12 13.20% Real Estate 7.22% 13.56% 12 12 0.38 0.38 0.36 0.31 0.12 0.13 0.37 0.11 0.26 0.11 0.13 1

13 4.90% Hedge Funds 5.89% 8.34% 13 13 0.64 0.63 0.67 0.71 0.15 0.08 0.55 0.13 0.51 -0.02 0.13 0.27 1

14 Commodities 5.83% 17.96% 14 14 0.32 0.31 0.43 0.46 0.11 0.09 0.33 0.23 0.33 0.01 0.25 0.23 0.46 1

15 5.70% Infrastructure 7.78% 13.10% 15 15 0.5 0.48 0.53 0.47 0.26 0.23 0.48 0.21 0.35 0.08 0.16 0.23 0.44 0.3 1

16 Private Equity 11.91% 23.55% 16 16 0.78 0.75 0.73 0.65 0.04 0.1 0.55 0.12 0.44 -0.11 -0.09 0.41 0.64 0.31 0.45 1

Total 100.00% Boundary 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Western States Office and Professional Employees Pension Fund

Paste 

Values 

Client 

Information

Client 

Specific 

Weightings

Long Run 

Expected 

Return

Standard 

Deviation

Exhibit 3: Page 7 of 29
Rael & Letson Expected Investment Return Calculator Results

20-Year Expected Returns

Client Name

Horizon Survey Year (Insert either any 4 digit year between 2013 and 2015)

Date of Asset Allocation (Insert either any 4 digit year between 2013 and 2015)

Short/Long Run/Blended Expected Returns

Summary of Calculations

R&L 

Calculation 

Results

Investment 

Consultant 

Results Check

Arithmetic Return 7.57% 7.57%

Geometric Return (estimate) 7.09% 7.09%

Portfolio Standard Deviation 10.25% 10.25%

Capital Market Assumptions are derived from Horizon's 2014 or 2015 Edition of their Survey of Capital Market Assumptions

If this spreadsheet is used as the only tool for ASOP 27 analysis, it should be disclosed that Horizon's Survey was used.

Input Assets Allocation on "Input Data" tab.

Option to toggle on alpha is located on the "Toggle Alpha" tab.

Western States Office and Professional Employees Pension Fund

OWS - Western States Office and Professional 

Employees Pension Fund

2015

12/31/2015

1

0=10yr; 1=20yr; 2 = blended (generally we are interested in "1" 

which provides a longer run analysis)

Exhibit 3: Page 8 of 29
20-Year Input, Returns, Standard Deviation and Correlation Matrix

Asset Class

Paste 

Values

Asset 

Class Names 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Names

Correlation 

Matrix 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1 19.70% US Equity - Large Cap 9.18% 17.12% 1 1 1

2 4.40% US Equity - Small/Mid Cap 10.15% 20.99% 2 2 0.91 1

3 22.70% Non-US Equity - Developed 9.80% 19.57% 3 3 0.82 0.76 1

4 Non-US Equity - Emerging 12.26% 26.61% 4 4 0.74 0.72 0.8 1

5 27.70% US Corporate Bonds - Core 4.58% 5.60% 5 5 0.19 0.13 0.17 0.14 1

6 US Corporate Bonds - Long Duration 5.27% 10.84% 6 6 0.17 0.11 0.18 0.16 0.91 1

7 US Corporate Bonds - High Yield 6.93% 11.20% 7 7 0.64 0.64 0.62 0.63 0.38 0.38 1

8 Non-US Debt - Developed 3.70% 7.43% 8 8 0.17 0.12 0.34 0.2 0.6 0.55 0.22 1

9 Non-US Debt - Emerging 6.85% 11.66% 9 9 0.54 0.5 0.58 0.65 0.44 0.42 0.61 0.35 1

10 1.70% US Treasuries (Cash Equivalents) 3.14% 2.77% 10 10 -0.17 -0.37 -0.09 -0.16 0.38 0.34 -0.13 0.3 0.14 1

11 TIPS (Inflation-Protected) 3.65% 6.31% 11 11 0.04 -0.01 0.11 0.16 0.72 0.62 0.26 0.53 0.39 0.35 1

12 13.20% Real Estate 7.42% 13.56% 12 12 0.38 0.38 0.36 0.31 0.12 0.13 0.37 0.11 0.26 0.11 0.13 1

13 4.90% Hedge Funds 6.40% 8.34% 13 13 0.64 0.63 0.67 0.71 0.15 0.08 0.55 0.13 0.51 -0.02 0.13 0.27 1

14 Commodities 6.32% 17.96% 14 14 0.32 0.31 0.43 0.46 0.11 0.09 0.33 0.23 0.33 0.01 0.25 0.23 0.46 1

15 5.70% Infrastructure 8.39% 13.10% 15 15 0.5 0.48 0.53 0.47 0.26 0.23 0.48 0.21 0.35 0.08 0.16 0.23 0.44 0.3 1

16 Private Equity 12.85% 23.55% 16 16 0.78 0.75 0.73 0.65 0.04 0.1 0.55 0.12 0.44 -0.11 -0.09 0.41 0.64 0.31 0.45 1

Total 100.00% Boundary 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Western States Office and Professional Employees Pension Fund

Paste 

Values 

Client 

Information

Client 

Specific 

Weightings

Long Run 

Expected 

Return

Standard 

Deviation

Exhibit 3: Page 9 of 29
Western States Office and Professional Employees Pension Fund

Assumed Return on Investments

Plan Year

Assumed Index 

Returns Alpha

Operating 

Expenses

2016 6.60% $1,000,000

2017 5.00% 0.35% $1,000,000

2018 5.27% 0.35% $700,000

2019 5.54% 0.35% $700,000

2020 5.81% 0.35% $700,000

2021 6.08% 0.35% $700,000

2022 6.35% 0.35% $700,000

2023 6.62% 0.35% $700,000

2024 6.89% 0.35% $700,000

2025 7.16% 0.35% $700,000

2026 7.29% 0.35% $700,000

2027 7.42% 0.35% $700,000

2028 7.55% 0.35% $700,000

2029 7.68% 0.35% $700,000

2030 7.81% 0.35% $700,000

2031 7.94% 0.35% $700,000

2032 8.07% 0.35% $700,000

2033 8.20% 0.35% $700,000

2034 8.33% 0.35% $700,000

2035 8.46% 0.35% $700,000

2036+ 7.25% 0.35% $700,000

Exhibit 3: Page 10 of 29
Western States Office and Professional Employees Pension Fund 

Exhibit 3: Page 11 of 29

PROJECTION OF PROPOSED SUSPENSION 

Year Beg January 1, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Return 6.60% 5.35% 5.62% 5.89% 6.16% 6.43% 6.70% 6.97% 7.24% 7.51% 7.64% 7.77% 7.90% 8.03% 8.16% 8.29% 8.42% 8.55% 8.68% 8.81% 7.60% 7.60% 7.60%

Supplemental % 69.6% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%

% Decrease in Hours 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Economic Inputs
Western States Office and Professional Employees Pension Fund 

Exhibit 3: Page 12 of 29

 
Western States Office and Professional Employees Pension Fund 

Exhibit 3: Page 13 of 29

Projected Total Contribution Base Units and Contribution Rates 

Year Beginning

January 1

Base Accrual

Contribution

Total Contribution 

Base Units

(Hours)

Average 

Contribution Rate

(Hourly)

2016 4,477,091 1,552,415 2.88

2017 3,983,739 1,202,805 3.31

2018 3,983,739 1,202,805 3.31

2019 3,983,739 1,202,805 3.31

2020 3,983,739 1,202,805 3.31

2021 3,983,739 1,202,805 3.31

2022 3,983,739 1,202,805 3.31

2023 3,983,739 1,202,805 3.31

2024 3,983,739 1,202,805 3.31

2025 3,983,739 1,202,805 3.31

2026 3,983,739 1,202,805 3.31

2027 3,983,739 1,202,805 3.31

2028 3,983,739 1,202,805 3.31

2029 3,983,739 1,202,805 3.31

2030 3,983,739 1,202,805 3.31

2031 3,983,739 1,202,805 3.31

2032 3,983,739 1,202,805 3.31

2033 3,983,739 1,202,805 3.31

2034 3,983,739 1,202,805 3.31

2035 3,983,739 1,202,805 3.31

2036 3,983,739 1,202,805 3.31

2037 3,983,739 1,202,805 3.31

2038 3,983,739 1,202,805 3.31

2039 3,983,739 1,202,805 3.31

2040 3,983,739 1,202,805 3.31

2041 3,983,739 1,202,805 3.31

2042 3,983,739 1,202,805 3.31

2043 3,983,739 1,202,805 3.31

2044 3,983,739 1,202,805 3.31

2045 3,983,739 1,202,805 3.31

2046 3,983,739 1,202,805 3.31

2047 3,983,739 1,202,805 3.31

2048 3,983,739 1,202,805 3.31

2049 3,983,739 1,202,805 3.31

2050 3,983,739 1,202,805 3.31

2051 3,983,739 1,202,805 3.31

2052 3,983,739 1,202,805 3.31

2053 3,983,739 1,202,805 3.31

2054 3,983,739 1,202,805 3.31

2055 3,983,739 1,202,805 3.31
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year Beginning 1/1/2016 1/1/2017 1/1/2018 1/Plan Year Ending 12/31/2016 12/31/2017 12/31/2018 12/3A. Market Value at Beginning of Year 334,210,200 325,872,761 310,837,808 295,15

IncomeB. Base Contributions 4,477,091 3,983,739 3,983,739 3,98

C. Supplemental/Surcharge Contributions 3,113,918 3,186,991 3,186,991 3,18

D. Withdrawal Liability Payments 3,143,651 3,997,686 3,994,682 3,99

E. Total Investment Income 21,054,925 16,562,218 16,543,865 16,39

DisbursementsF. Benefit Payments (a) Current Actives 1,064,916 2,020,356 2,821,724 3,47

 (b) Current Inactive Vested 1,537,256 2,306,784 3,297,574 4,20

 (c) Current Retirees/Beneficiaries 36,524,852 37,438,448 36,572,079 35,66

 (d) Future New Entrants - - - 

 (e) Total 39,127,024 41,765,587 42,691,377 43,34

G. Administrative expenses 1,000,000 1,000,000 700,000 70

H. Market Value at End of Year(A+B+C+D+E-F(e)-G)

325,872,761 310,837,808 295,155,708 278,66

I. Available Resources (A+B+C+D+E-G)

364,999,785 352,603,395 337,847,085 322,01

J. Solvency Ratio (I / F) 9.33 8.44 7.91 

K. Accrued Liability 529,954,836 529,409,922 521,093,240 516,01

L. Funded Percentage (A / K) 63.06% 61.55% 59.65% 5

Exhibit 3: Page 14 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2021 1/1/2022 1/1/2023 1/

12/31/2021 12/31/2022 12/31/2023 12/3

261,274,900 242,869,236 223,636,516 203,53

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

3,985,664 3,983,350 3,972,733 3,96

15,681,567 15,098,687 14,362,057 13,45

4,493,663 4,904,316 5,254,327 5,55

6,329,745 7,195,782 8,042,220 9,18

33,719,507 32,683,328 31,605,241 30,48

710 2,060 4,036 

44,543,626 44,785,487 44,905,824 45,23

700,000 700,000 700,000 70

242,869,236 223,636,516 203,536,211 182,18

287,412,862 268,422,003 248,442,035 227,41

6.45 5.99 5.53 

502,671,120 494,333,878 485,141,558 475,15

51.98% 49.13% 46.10% 4

Exhibit 3: Page 15 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2026 1/1/2027 1/1/2028 1/

12/31/2026 12/31/2027 12/31/2028 12/3

159,931,690 136,465,700 111,710,321 85,57

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

3,955,948 3,955,948 3,955,948 3,95

10,880,023 9,254,891 7,470,059 5,51

6,077,011 6,276,831 6,476,775 6,66

10,565,237 11,269,267 11,940,345 12,66

28,116,697 26,872,552 25,591,224 24,27

13,746 18,296 23,567 2

44,772,692 44,436,947 44,031,911 43,63

700,000 700,000 700,000 70

136,465,700 111,710,321 85,575,148 57,88

181,238,391 156,147,269 129,607,058 101,51

4.05 3.51 2.94 

452,468,590 440,254,296 427,502,379 414,24

35.35% 31.00% 26.13% 2

Exhibit 3: Page 16 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2031 1/1/2032 1/1/2033 1/

12/31/2031 12/31/2032 12/31/2033 12/3

28,593,254 (2,301,381) (35,169,017) (70,67

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

3,872,769 3,762,484 3,141,632 1,90

1,018,564 (1,542,053) (4,367,836) (7,52

6,880,738 7,000,794 7,079,525 7,07

13,766,937 14,323,676 14,777,970 14,96

21,564,381 20,180,480 18,787,841 17,39

44,642 53,848 100,589 17

42,256,698 41,558,797 40,745,925 39,61

700,000 700,000 700,000 70

(2,301,381) (35,169,017) (70,670,416) (109,42

39,955,316 6,389,780 (29,924,491) (69,81

0.95 0.15 (0.73) 

386,260,012 371,852,795 357,124,252 342,17

7.40% -0.62% -9.85% -2

Exhibit 3: Page 17 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2036 1/1/2037 1/1/2038 1/

12/31/2036 12/31/2037 12/31/2038 12/3

(150,505,623) (192,098,540) (237,050,499) (283,95

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

1,560,757 - - 

(12,567,975) (15,736,285) (19,098,864) (22,61

7,093,159 7,040,435 6,965,125 6,90

14,928,123 14,813,162 14,615,529 14,41

14,646,336 13,310,430 12,013,158 10,76

388,811 522,377 677,611 85

37,056,429 35,686,404 34,271,423 32,94

700,000 700,000 700,000 70

(192,098,540) (237,050,499) (283,950,056) (333,04

(155,042,111) (201,364,095) (249,678,633) (300,09

(4.18) (5.64) (7.29) 

312,654,463 298,299,621 284,323,743 270,80

-48.14% -64.40% -83.37% -10

Exhibit 3: Page 18 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2041 1/1/2042 1/1/2043 1/

12/31/2041 12/31/2042 12/31/2043 12/3

(384,762,008) (439,272,349) (496,821,602) (557,59

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

- - - 

(30,192,587) (34,294,962) (38,626,698) (43,20

6,651,363 6,511,329 6,330,536 6,11

13,806,242 13,429,995 12,978,077 12,50

8,449,765 7,399,707 6,429,206 5,54

1,881,114 2,383,990 2,881,762 3,36

30,788,483 29,725,021 28,619,580 27,53

700,000 700,000 700,000 70

(439,272,348) (496,821,601) (557,597,150) (621,86

(408,483,865) (467,096,580) (528,977,569) (594,33

(13.27) (15.71) (18.48) (

244,682,566 231,894,921 219,282,184 206,90

-157.25% -189.43% -226.57% -26

Exhibit 3: Page 19 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2046 1/1/2047 1/1/2048 1/

12/31/2046 12/31/2047 12/31/2048 12/3

(689,933,249) (762,086,676) (838,675,009) (920,06

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

- - - 

(53,182,425) (58,627,692) (64,411,158) (70,56

5,706,262 5,468,875 5,238,813 5,00

11,427,875 10,858,363 10,247,220 9,62

4,025,336 3,394,031 2,843,616 2,36

4,282,259 4,710,102 5,121,542 5,51

25,441,731 24,431,372 23,451,191 22,51

700,000 700,000 700,000 70

(762,086,676) (838,675,009) (920,066,628) (1,006,67

(736,644,944) (814,243,638) (896,615,437) (984,15

(28.95) (33.33) (38.23) (

182,792,293 171,058,175 159,520,318 148,16

-377.44% -445.51% -525.75% -62

Exhibit 3: Page 20 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow without Proposed Suspension

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2051 1/1/2052 1/1/2053 1/

12/31/2051 12/31/2052 12/31/2053 12/3

(1,098,930,027) (1,197,302,706) (1,302,283,645) (1,414,42

3,983,739 3,983,739 3,983,739 3,98

3,186,991 3,186,991 3,186,991 3,18

- - - 

(84,088,096) (91,532,641) (99,481,278) (107,97

4,506,134 4,240,991 3,981,395 3,72

8,369,467 7,738,698 7,117,592 6,51

1,623,741 1,339,222 1,104,077 91

6,255,971 6,600,118 6,928,745 7,23

20,755,313 19,919,029 19,131,810 18,38

700,000 700,000 700,000 70

(1,197,302,705) (1,302,283,645) (1,414,426,003) (1,534,31

(1,176,547,393) (1,282,364,616) (1,395,294,193) (1,515,93

(56.69) (64.38) (72.93) (

125,853,086 114,847,177 103,909,938 92,99

-873.18% -1042.52% -1253.28% -152

Exhibit 3: Page 21 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year Beginning 1/1/2016 1/1/2017 1/1/2018 1/1/20Plan Year Ending 12/31/2016 12/31/2017 12/31/2018 12/31/20A. Market Value at Beginning of Year 334,210,200 325,872,761 311,506,867 304,314,00

IncomeB. Base Contributions 4,477,091 3,983,739 3,983,739 3,983,73

C. Supplemental/Surcharge Contributions 3,113,918 3,186,991 3,186,991 3,186,99

D. Withdrawal Liability Payments 3,143,651 3,997,686 3,994,682 3,990,01

E. Total Investment Income 21,054,925 16,579,649 16,812,466 17,186,80

DisbursementsF. Benefit Payments (a) Current Actives 1,064,916 1,974,309 2,048,668 2,527,08

 (b) Current Inactive Vested 1,537,256 2,261,644 2,496,577 3,165,01

 (c) Current Retirees/Beneficiaries 36,524,852 36,878,005 29,925,493 29,104,09

 (d) Future New Entrants - - - - 

 (e) Total 39,127,024 41,113,959 34,470,738 34,796,19G. Administrative expenses 1,000,000 1,000,000 700,000 700,00

H. Market Value at End of Year(A+B+C+D+E-F(e)-G)

325,872,761 311,506,867 304,314,006 297,165,36

I. Available Resources (A+B+C+D+E-G)

364,999,785 352,620,826 338,784,745 331,961,55

J. Solvency Ratio (I / F) 9.33 8.58 9.83 9.5

K. Accrued Liability 529,954,836 430,063,669 416,163,695 412,416,10L. Funded Percentage (A / K) 63.06% 75.77% 74.85% 73.79

Exhibit 3: Page 22 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2021 1/1/2022 1/1/2023 1/1/20

12/31/2021 12/31/2022 12/31/2023 12/31/20

290,062,672 282,994,242 276,176,619 269,666,20

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

3,985,664 3,983,350 3,972,733 3,960,18

17,828,101 18,102,345 18,358,436 18,595,22

3,268,853 3,569,658 3,826,290 4,049,60

4,722,604 5,362,046 5,993,049 6,820,11

27,360,737 26,440,204 25,488,765 24,506,41

732 2,141 4,214 6,95

35,352,925 35,374,048 35,312,317 35,383,08

700,000 700,000 700,000 700,00

282,994,242 276,176,619 269,666,201 263,309,26

318,347,167 311,550,667 304,978,518 298,692,34

9.00 8.81 8.64 8.4

403,087,316 397,477,518 391,439,121 385,026,90

71.96% 71.20% 70.55% 70.04

Exhibit 3: Page 23 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2026 1/1/2027 1/1/2028 1/1/20

12/31/2026 12/31/2027 12/31/2028 12/31/20

257,482,928 251,902,149 246,627,768 241,716,52

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

3,955,948 3,955,948 3,955,948 3,955,94

18,716,789 18,617,406 18,530,014 18,458,55

4,430,642 4,578,542 4,726,399 4,862,67

7,825,644 8,333,701 8,819,493 9,338,04

22,453,463 21,386,875 20,297,071 19,187,60

14,498 19,346 24,975 31,47

34,724,246 34,318,465 33,867,937 33,419,79

700,000 700,000 700,000 700,00

251,902,149 246,627,768 241,716,523 237,181,96

286,626,395 280,946,233 275,584,461 270,601,76

8.25 8.19 8.14 8.1

370,940,688 363,651,727 356,254,809 348,788,47

69.41% 69.27% 69.23% 69.30

Exhibit 3: Page 24 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2031 1/1/2032 1/1/2033 1/1/20

12/31/2031 12/31/2032 12/31/2033 12/31/20

233,144,604 229,757,174 226,927,730 224,221,69

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

3,872,769 3,762,484 3,141,632 1,904,08

18,395,759 18,421,423 18,467,238 18,498,79

5,027,485 5,115,585 5,174,137 5,176,78

10,122,700 10,519,844 10,845,524 10,975,90

16,928,934 15,791,187 14,656,258 13,530,84

47,569 57,465 109,720 195,11

32,126,687 31,484,081 30,785,638 29,878,63

700,000 700,000 700,000 700,00

229,757,174 226,927,730 224,221,692 221,216,66

261,883,861 258,411,811 255,007,330 251,095,30

8.15 8.21 8.28 8.4

333,766,745 326,474,395 319,319,250 312,369,11

69.85% 70.38% 71.07% 71.78

Exhibit 3: Page 25 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2036 1/1/2037 1/1/2038 1/1/20

12/31/2036 12/31/2037 12/31/2038 12/31/20

219,144,540 215,138,897 210,275,353 206,121,78

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

1,560,757 - - - 

15,872,997 15,548,306 15,218,200 14,938,85

5,194,894 5,159,106 5,107,399 5,067,00

10,944,710 10,856,958 10,710,855 10,563,00

11,336,826 10,282,188 9,264,571 8,290,51

433,697 584,328 759,674 965,94

27,910,127 26,882,580 25,842,499 24,886,47

700,000 700,000 700,000 700,00

215,138,897 210,275,353 206,121,784 202,644,89

243,049,024 237,157,933 231,964,283 227,531,37

8.71 8.82 8.98 9.1

299,872,537 294,492,267 289,786,723 285,817,81

73.08% 73.05% 72.56% 72.12

Exhibit 3: Page 26 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2041 1/1/2042 1/1/2043 1/1/20

12/31/2041 12/31/2042 12/31/2043 12/31/20

199,567,978 196,942,573 194,765,477 193,098,35

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

- - - - 

14,490,174 14,314,360 14,173,628 14,071,04

4,889,003 4,792,526 4,664,760 4,515,88

10,110,231 9,833,629 9,502,535 9,157,62

6,496,769 5,687,253 4,940,957 4,260,18

2,090,306 2,648,780 3,203,232 3,743,07

23,586,308 22,962,187 22,311,485 21,676,76

700,000 700,000 700,000 700,00

196,942,574 194,765,476 193,098,350 191,963,35

220,528,882 217,727,663 215,409,835 213,640,12

9.35 9.48 9.65 9.8

279,712,164 277,350,824 275,465,033 274,116,81

71.35% 71.01% 70.70% 70.44

Exhibit 3: Page 27 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2046 1/1/2047 1/1/2048 1/1/20

12/31/2046 12/31/2047 12/31/2048 12/31/20

191,366,099 191,357,789 191,958,791 193,196,23

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

- - - - 

13,985,460 14,007,158 14,074,461 14,188,85

4,227,613 4,058,620 3,894,701 3,729,68

8,366,406 7,948,766 7,499,934 7,043,22

3,098,247 2,615,153 2,194,012 1,830,88

4,772,235 5,254,347 5,719,100 6,168,45

20,464,500 19,876,886 19,307,748 18,772,25

700,000 700,000 700,000 700,00

191,357,789 191,958,791 193,196,235 195,083,57

211,822,289 211,835,677 212,503,982 213,855,82

10.35 10.66 11.01 11.3

273,106,124 273,500,820 274,533,046 276,229,87

70.07% 69.97% 69.92% 69.94

Exhibit 3: Page 28 of 29
Western States Office and Professional Employees Pension F

Projected Cash Flow to Avoid Insolvency

Projection for Plan Years beginning January 1, 2016 through December 31, 2055

Plan Year BeginningPlan Year EndingA. Market Value at Beginning of YearIncomeB. Base ContributionsC. Supplemental/Surcharge ContributionsD. Withdrawal Liability PaymentsE. Total Investment IncomeDisbursementsF. Benefit Payments (a) Current Actives (b) Current Inactive Vested (c) Current Retirees/Beneficiaries (d) Future New Entrants (e) TotalG. Administrative expensesH. Market Value at End of Year(A+B+C+D+E-F(e)-G)I. Available Resources (A+B+C+D+E-G)J. Solvency Ratio (I / F)K. Accrued LiabilityL. Funded Percentage (A / K)

1/1/2051 1/1/2052 1/1/2053 1/1/20

12/31/2051 12/31/2052 12/31/2053 12/31/20

197,652,925 200,926,664 204,947,941 209,740,66

3,983,739 3,983,739 3,983,739 3,983,73

3,186,991 3,186,991 3,186,991 3,186,99

- - - - 

14,565,919 14,832,982 15,155,652 15,536,11

3,372,933 3,180,482 2,992,369 2,803,12

6,122,790 5,660,770 5,205,845 4,762,95

1,259,848 1,041,519 860,817 712,45

7,007,339 7,399,664 7,774,628 8,128,41

17,762,910 17,282,435 16,833,659 16,406,95

700,000 700,000 700,000 700,00

200,926,664 204,947,941 209,740,664 215,340,55

218,689,575 222,230,376 226,574,323 231,747,50

12.31 12.86 13.46 14.1

281,689,246 285,505,741 290,096,823 295,485,80

70.17% 70.38% 70.65% 70.98

Exhibit 3: Page 29 of 29