Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 1 

Does the application include an original signature of the plan sponsor or an authorized 

representative of the plan sponsor? 

See Section 2.01 of this revenue procedure.

12 N/A

Yes 2 

Does the application include a description of the proposed benefit suspension - calculated 

as if no other limitations apply - that includes:

•the suspension's effective date (and its expiration date, if applicable), 

•whether the suspension provides for different treatment of participants and beneficiaries, 

•a description of the different categories or groups of individuals affected, and 

•how the suspension affects these individuals differently? 

See Section 2.02 of this revenue procedure.

12 N/A

Yes 3 

Does the application include a penalties-of-perjury statement signed by an authorized 

trustee on behalf of the board of trustees? 

See Section 2.03 of this revenue procedure.

12 N/A

Yes 4 

Does the application include a statement, signed by an authorized trustee on behalf of the 

board of trustees, acknowledging that the application and the application's supporting 

material will be publicly disclosed on the Treasury Department's website?

See Section 2.04 of this revenue procedure.

13 N/A

Yes 5 

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

and the supporting illustrations, including: 

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

relevant period, and 

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

in cash flow) during each of those years? 

See Section 3.01 of this revenue procedure.

14 3.01a 

3.01b 

IBT436-0001
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 6 

Does the application include the plan actuary's certification that, taking into account the 

proposed suspension and, if applicable, a proposed partition, the plan is projected to 

avoid insolvency if the suspension takes effect, and the supporting illustrations, 

including: 

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

relevant period, 

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

changes in cash flow) during each of those years? 

See Section 3.02 of this revenue procedure.

14 3.02 

Yes 7 

Does the application include the plan sponsor's determination of projected insolvency 

that includes the documentation set forth in section 5 of the revenue procedure? 

See Section 3.03 of this revenue procedure.

15 N/A

Yes 8 

Does the application include a demonstration that the limitations on individual 

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

defined under the plan, that is paid to an individual under the plan (without regard to 

whether the disability benefits are available to newly disabled participants) and 

calculations regarding:

• the guarantee-based limitation,

• the disability-based limitation,

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

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

limitation and the disability-based limitation?

See Section 4.01 of this revenue procedure.

16 4.01a4.01h 

Yes 9 

Does the application include a demonstration that the proposed suspension is 

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

extended period, including illustrations regarding the plan's solvency ratio and 

available resources? 

See Section 4.02(1) of this revenue procedure.

17 3.02 

IBT436-0002
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

N/A 10 

Does the application include an illustration that the proposed suspension is reasonably 

estimated to achieve the level necessary to avoid insolvency for the extended period 

utilizing stochastic projections? (This illustration is optional if the plan is not required 

to appoint a retiree representative under § 432(e)(9)(B)(v)(I).)

See Section 4.02(2) of this revenue procedure.

N/A 11 

Does the application include a demonstration that the proposed suspension is not 

projected to materially exceed the level necessary to avoid insolvency, including:

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

relevant period, and 

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

changes in cash flow) during each of those years? 

See Section 4.03 of this revenue procedure.

Yes 12 

Does the application include a demonstration that the proposed suspension is equitably 

distributed, including: 

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

•information on the effect of the suspension for different categories or groups, 

•a list of the factors taken into account, 

•an explanation of why none of the factors listed in 

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

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

432(e)(9)(D)(vi), an explanation why the factor is relevant, and

•an explanation of how any difference in treatment among categories or groups of 

individuals results from a reasonable application of the relevant factors?

See Section 4.04 of this revenue procedure.

17 4.04(1a) 

4.04(1b) 

IBT436-0003
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 13 

Does the application include a copy of the notices (excluding personally identifiable 

information) that meet the requirements under §432(e)(9)(F)? 

See Section 4.05(1) of this revenue procedure.

17 4.05a4.05h 

Yes 14 

Does the application include a description of the efforts that are being taken to contact 

participants, beneficiaries in pay status, and alternate payees?

See Section 4.05(2) of this revenue procedure.

17 N/A

Yes 15 

Does the application describe the steps the plan sponsor has taken to ensure that notices 

delivered electronically are reasonably accessible to the recipients?

See Section 4.05(3) of this revenue procedure.

18 N/A

Yes 16 

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

contribute under the plan and each employee organization representing participants 

under the plan? See Section 4.05(4) of this revenue procedure.

18 N/A

Yes 17 

Does the application include information on past and current measures taken to avoid 

insolvency? 

See Section 5.01 of this revenue procedure.

22 N/A

IBT436-0004
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 18 

Does the application include information regarding the plan factors described in

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

which the application is submitted? 

See Section 5.02 of this revenue procedure.

23 N/A

Yes 19 

Does the application describe how the plan sponsor took into account - or did not take 

into account - the factors listed in section 5.02 of this revenue procedure in the 

determination that all reasonable measures were taken to avoid insolvency? 

See Section 5.03 of this revenue procedure.

26 N/A

Yes 20 

Does the application describe how the plan sponsor took into account - or did not take into 

account - in the determination that all reasonable measures have been taken to avoid 

insolvency, the impact of: 

•benefit and contribution levels on retaining active participants and bargaining groups 

under the plan, and 

•past and anticipated contribution increases under the plan on employer attrition and 

retention levels?

See Section 5.03 of this revenue procedure.

26 N/A

Yes 21 

Does the application include a discussion of any other factors the plan sponsor took 

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

See Section 5.04 of this revenue procedure..

27 N/A

Yes 22 

Does the application include a copy of the proposed ballot, excluding the information 

regarding the statement in opposition, the individualized estimate, and the voting 

procedures? 

See Section 6.01 of this revenue procedure.

28 6.01 

Yes 23 

Does the application indicate whether the plan sponsor is requesting approval from 

PBGC of a proposed partition under section 4233 of ERISA? 

See Section 6.02 of this revenue procedure..

28 N/A

IBT436-0005
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 24 

If the answer to item 23 is yes, does the application specify the effective date of the 

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

reduction in benefit payments attributable to the partition? 

See Section 6.02 of this revenue procedure.

28 6.02 

Yes 25 

Does the application include:

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

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

•supporting evidence for the selection of those assumptions, and 

•an explanation of any differences among the assumptions used for various purposes? 

See Section 6.03 and Appendix B of this revenue procedure.

28 6.03 

Yes 26 

Does the application describe the plan's experience with certain critical assumptions, 

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

application that separately identifies:

•the total contributions,

•the total contribution base units,

•the average contribution rates,

•the withdrawal liability payments, and

•the rate of return on plan assets?

See Section 6.04 of this revenue procedure.

28 N/A

Yes 27 

Does the application include deterministic projections of the sensitivity of the plan's 

solvency ratio throughout the extended period by taking into account the more 

conservative assumptions of investment experience and future contribution base units 

than assumed elsewhere in the application? 

See Section 6.05 of this revenue procedure..

29 6.05(1)- 

6.05(4) 

Yes 28 

Does the plan include deterministic projections for each year in the extended period of:

•the value of plan assets,

•the plan's accrued liability, and

•the plan's funded percentage? 

See Section 6.06 of this revenue procedure.

29 3.02 

IBT436-0006
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 29 

Does the application include the plan sponsor’s representation that, if it receives the 

Treasury Department's final authorization to suspend and then chooses to implement the 

suspension, it will also amend the plan: 

•to provide that the suspension will cease upon the plan sponsor's failure to maintain a 

written record of its annual determination that (i) all reasonable measures continue to be 

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

without a suspension, 

•to require that any future benefit improvements must satisfy 

§432(e)(9)(E), and 

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

other provision of the plan document? 

See Section 6.07 of this revenue procedure.

29 N/A

Yes 30 

Does the application indicate whether the plan is a plan described in § 432(e)(9)(D)(vii) 

and, if it is, how that is reflected in the proposed benefit suspension? 

See Section 6.08.

30 N/A

Yes 31 

Does the application include a narrative statement of the reasons the plan is in critical and 

declining status? 

See Section 6.09.

30 N/A

Yes 32 

Does the application include the required plan sponsor identification and contact 

information? 

See Section 7.01 of this revenue procedure.

31 N/A

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

See Section 7.02 of this revenue procedure. 31 N/A

N/A 34 Does the application include the required retiree representative information (if applicable)? 

See Section 7.03 of this revenue procedure.

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

See Section 7.04 of this revenue procedure. 31 N/A

IBT436-0007
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001 

Exhibit 7.11 Checklist (Checklist Item #42)

Response Item Description of Item Page Exhibit

Yes 36 

Does the application include a designation of power of attorney for each authorized 

representative who will represent the plan sponsor in connection with the application? 

See Section 7.05 and Appendix C of this revenue procedure.

31 7.05 

Yes 37 

Does the application include:

•the required plan documents 

•any recent amendments

•the summary plan description (SPD) 

•any summary of material modifications, and 

•the most recent determination letter?

See Section 7.06 of this revenue procedure.

32 7.06a7.06c 

Yes 38 

Does the application include the required excerpts from the relevant collective bargaining 

agreements and side agreements? 

See Section 7.07 of this revenue procedure.

32 7.07 

Yes 39 Does the application include the required excerpts from the most recently filed Form 5500?

See Section 7.08 of this revenue procedure. 32 7.08 

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

See Section 7.09 of this revenue procedure. 32 7.09 

IBT436-0008

Building Material Drivers Local 436 Pension Trust Fund

Application to the

Secretary of the Treasury

for 

Approval of Suspension of Benefits

IBT436-0010
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 1. Background and Purpose

Section 201 of the Multiemployer Pension Reform Act of 2014, Division O of the Consolidated 

and Further Continuing Appropriations Act, 2015, Public Law 113-235 (128 Stat.2130 (2014)) 

(MPRA), amended the Internal Revenue Code (Code) and the Employee Retirement Income 

Security Act of 1974, Public Law 93-406 (88 Stat. 829 (1974)), as amended (ERISA), to permit 

the sponsor of a multiemployer defined benefit plan in critical and declining status to suspend 

benefits in certain situations. 

In particular, MPRA amended §432(e) (9) of the Code and section 305(e)(9) of ERISA to permit 

the sponsor of a multiemployer defined benefit plan in critical and declining status to submit to 

the Secretary of the Treasury (Secretary) an application to suspend benefits in certain situations. 

MPRA requires the Secretary to approve a plan sponsor’s proposed suspension if the plan is 

eligible for the proposed suspension and proposed suspension satisfies §432(e)(9)(C) through (F) 

of the Code. 

Revenue Procedure 2017-42 prescribes the application process for approval of a proposed benefit 

suspension in accordance with §432(e)(9)(G) and provides a model notice that a plan sponsor 

proposing a benefit suspension may use to satisfy the content and readability requirements of 

§432(e)(9)(F)(ii) and (iii)(II).

This application is submitted in accordance with Revenue Procedure 2017-43 and the section 

numbers and exhibits included with this application match those in the Revenue Procedure.

IBT436-0011



Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 3. Demonstration that Fund is Eligible for Suspension

3.03 Plan Sponsor’s Determination of Projected Insolvency 

Pursuant to §432(e)(9)(C)(ii), the Plan Sponsor has determined that the plan would not be 

projected to avoid insolvency if no suspension of benefits were applied under the plan, 

even though all reasonable measures to avoid insolvency have been taken. 

The Board of Trustee’s determination that the Fund is projected to become insolvent 

unless benefits are suspended and partitioned is based on Exhibit 3.01a. Additionally, the 

Board of Trustees’ determination is based on the documentation in Section 5 of this 

application. 

IBT436-0015
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 4. Demonstration that the Proposed Suspension Satisfies the Statutory 

Requirements

4.01 Demonstration that Limitations on Individual Suspensions are Satisfied 

Sample calculations demonstrating how the proposed suspension satisfies the individual 

limitations can be found in Exhibits 4.01a-4.01h. Please note the following; 

a. There are no increased benefits that have not become part of the accrued benefit

b. There are no benefit increases in effect for less than 60 months 

c. The Fund does not offer a social security level income option. The Fund does not 

provide for late retirement increase adjustments. The Fund does not allow service 

accruals of greater than 1 per year. The Fund does limit service for benefit accrual 

purposes to 32 years for most accrual schedules (all service for purposes of 

determining the PBGC Guarantee have likewise been limited).

1. Sample calculations applying the guarantee-based limitation under §432(e)(9)(D)(i) 

a. Exhibit 4.01a - individual currently receiving single life annuity, with over 32 

years of service

b. Exhibit 4.01b - beneficiary currently receiving single life annuity 

c. Exhibit 4.01c - Active participant

d. Exhibit 4.01d – Term Vested Participant

2. The plan provided for benefits based on disability 

a. Disability Benefits were eliminated on the effective date of the first Collective 

Bargaining Agreement following November 16, 2009, after which no future 

benefits will be treated as a benefit based on disability. For participants that 

entered pay status as a result of disability prior to this date, their entire benefit 

is treated as a benefit based on disability.

b. Exhibit 4.01e - Disabled participant and contingent beneficiary receiving a 

joint and survivor annuity 

3. Sample calculations applying the age-based limitation under §432(e)(9)(D)(ii)

a. Exhibit 4.01f - individual currently receiving single life annuity who is 

between age 75 and age 79 on the last day of the month that contains the 

proposed effective date of the suspension

b. Exhibit 4.01g - beneficiary currently receiving single life annuity who is 

between age 75 and age 79 on the last day of the month that contains the 

proposed effective date of the suspension

c. Exhibit 4.01h - Term Vested participant who has not commenced benefits 

who is between age 75 and age 79 on the last day of the month that contains 

the proposed effective date of the suspension

IBT436-0016
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 4. Demonstration that the Proposed Suspension Satisfies the Statutory 

Requirements

4.02 Demonstration that the Proposed Suspension is Reasonably Estimated to Enable the 

Fund to Avoid Insolvency

1. Exhibit 3.02 shows a deterministic demonstration that, in accordance with 

§432(e)(9)(D)(iv), the proposed benefit suspension and plan partition are reasonably 

estimated to enable the plan to avoid insolvency

a. For each plan year during the extended period described in §432(e)(9)-

1(d)(5)(ii)(C), the plan’s solvency ratio is projected to be at least 1.0 

b. The plan’s projected funded percentage at the end of the extended period is less 

than 100%, however, neither the plan’s solvency ratio nor its available resources 

are projected to decrease in any of the last five plan years of the extended period 

2. This illustration is not required. The plan sponsor was not required to appoint a 

retiree representative under §432(e)(9)(B)(v)(I) 

3. Section 6.03 of this application includes information on the actuarial assumptions 

used for the illustrations herein

4.03 Demonstration that the Proposed Suspension is Reasonably Estimated to not 

Materially Exceed the Level Necessary to Avoid Insolvency 

The Plan is applying for a partition in combination with a suspension; therefore this item 

is not required. 

4.04 Demonstration that the Proposed Benefit is Distributed Equitably 

1. In accordance with §432(e)(9)(D)(vi), the proposed benefit suspension is distributed 

in an equitable manner 

a. Exhibit 4.04(1a) shows information about the plan in aggregate 

b. Exhibit 4.04(1b) is the demonstration of the distribution of benefit suspension 

2. The Plan is applying for a partition in combination with a suspension, therefore this 

item is not required

4.05 Participant Notice 

The following is the plan sponsor’s method for satisfying the notice requirements under 

§432(e)(9)(F) 

1. Exhibit 4.05 contains sample participant notices. Exhibits 4.05a-4.05h contain 

sample benefit statements (without personally identifiable information) 

2. Efforts that are being made to contact participants, beneficiaries and alternate payees 

include; contracting with an independent firm to search the Plan’s database of 

IBT436-0017
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 4. Demonstration that the Proposed Suspension Satisfies the Statutory 

Requirements

deferred vested members to discover deceased participants and out of date or invalid 

addresses on a regular basis; further search as necessary to discover spouses of 

deceased participants; contract with that firm to perform both an address search and a 

search for deceased retirees.

3. Steps the plan sponsor has taken to ensure that any electronically delivered notices 

are reasonably accessible to the recipients include; the fund does not distribute 

anything electronically, and has not in the past. 

4. A list of

a. Employers that have an obligation to contribute within the meaning of section 

4212(a) of ERIS.A 

These include all who have obligation to contribute but excludes any employer 

paying withdrawal liability:

A & J CEMENT CONTRACTORS INC.

27900 LAKELAND BLVD.

EUCLID OH 44132 

AMERICAN VAULT

2275 SCRANTON RD

CLEVELAND OH 44113 

B & B WRECKING & EXCAV. CO

4510 EAST 71ST ST.

SUITE 6

CLEVELAND OH 44105

B.T.B. TRUCKING

3560 EAST 55TH STREET

CLEVELAND OH 44105 

C A AGRESTA CONSTRUCTION

4186 GREENVALE RD

SO EUCLID OH 44121 2839 

CEM-BASE, INC.

8530 N. BOYLE PKWY 

TWINSBURG OH 44087 2267 

COLUMBIA BUILDING PRODUCTS INC

25961 ELM STREET

P.O. BOX 38248 

OLMSTED FALLS OH 44138 1615

IBT436-0018
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 4. Demonstration that the Proposed Suspension Satisfies the Statutory 

Requirements

COOK PAVING CO., INC.

4545 SPRING RD.

BROOKLYN HTS OH 44131 0

DAY & ZIMMERMAN NPS

1500 SPRING GARDEN STREET

PHILADELPHIA PA 19130

DECKER STEEL COMPANY

4500 TRAIN AVE.

CLEVELAND OH 44102 

DONLEY'S INC.

5430 WARNER RD. 

CLEVELAND OH 44125

FABRIZI TRUCKING & PAVING CO.

20389 FIRST STREET

MIDDLEBURG HTS. OH 44130 

 

HAJOCA CORPORATION

2001 JOSHUA ROAD

LAFAYETTE HILL PA 19444 

 

INDEPENDENCE EXCAVATING INC.

5720 SCHAAF RD.

INDEPENDENCE OH 44131 

INDUSTRIAL FIRST INC.

25840 MILES AVE. 

CLEVELAND OH 44146

 

KELLEY STEEL SCRAP HAULERS

7220 DIVISION ST

BEDFORD OH 44146 5488

LAFARGE-HOLCIM

6509 AIRPORT RD

MISSISSAUGA, ON CANADA, L4V 1S7

LAKESIDE SUPPLY COMPANY

3000 W. 117TH ST. 

CLEVELAND OH 44111

IBT436-0019
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 4. Demonstration that the Proposed Suspension Satisfies the Statutory 

Requirements

LOCAL 436 PENSION FUND

6051 CAREY DRIVE

VALLEY VIEW OH 44125 4259 

LOCAL UNION 436

6051 CAREY DRIVE

VALLEY VIEW OH 44125

MID AMERICA TRUCKING

5585 CANAL RD.

VALLEY VIEW OH 44125

MIDWEST EQUIPMENT CO.

9800 BROADWAY AVE.

CLEVELAND OH 44125 1639 

PREMIER ASPHALT PAVING CO INC.

10519 ROYALTON RD

NO. ROYALTON OH 44133 4401 

RELMEC MECHANICAL LLC

4975 HAMILTON AVE.

CLEVELAND OH 44114 3906 

REX PIPE & SUPPLY CO.

2001 JOSHUA ROAD

LAFAYETTE HILL PA 19444 0

S.B. MORABITO TRKG. CO. INC.

3560 EAST 55TH STREET

CLEVELAND OH 44105 

SAFWAY SERVICES LLC

5251 W. 130TH 

CLEVELAND OH 44130 1033 

SCHWEIZER DIPPLE INC.

7227 DIVISION STREET

OAKWOOD VILLAGE OH 44146

STEVENS ENGINEERS CONSTRUCTORS

7850 FREEWAY CIRCLE

SUITE 100

MIDDLEBURG HTS OH 44130 6317

IBT436-0020
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 4. Demonstration that the Proposed Suspension Satisfies the Statutory 

Requirements

THE PERK CO

8100 GRAND AVE., STE 300

CLEVELAND OH 44104 3110 

THE SHELLY COMPANY

PO BOX 266

THORNVILLE OH 43076

VANDRA BROS.

24629 BROADWAY AVENUE

OAKWOOD VILLAGE OH 44146 6340 

b. Employee organizations representing participants under the plan; 

IBT Local Union No. 436, 6051 Carey Drive alley View OH 44125 

IBT436-0021
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 5. Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid 

Insolvency

5.01 Measures Taken to Avoid Insolvency 

A detailed description of measures taken to avoid insolvency over the past 10 plan years 

immediately preceding the 2020 plan year, is provided below: 

In 2006 the Plan Sponsor (Board of Trustees), enacted the following measures to stabilize 

the Plan:

1. Increased the number of hours needed for participants to earn a full year of credited 

service from 1,300 to 2,080 

2. Increased the normal retirement age for benefits accrued January 1, 2007 and later to 

65 from 62 and, 

3. Instituted a 60% increase in contribution rates to be phased in, in three steps for new 

and renegotiated collective bargaining agreements with no increase in benefits. For 

example collective bargaining agreements that required a $3.45 per hour contribution 

to accrue benefits under the Plan’s $2,700 formula were required to increase that 

contribution rate to $4.15 in the first year of the new agreement, $4.85 in the second 

year of the agreement and $5.55 in the third year of the agreement. 

In adopting the Rehabilitation Plan pursuant to the Pension Reform Act the Plan Sponsor 

adopted a plan that required contributing employers to increase contribution rates by 81% 

in five equal steps. At that time the Plan’s post-retirement death benefit, disability 

benefit, early retirement benefit and life annuity benefit option with sixty month 

guaranteed payments were eliminated. Details of these Reductions include; 

1. Benefit Accrual Rate: Benefit accrual rates remained the same as pre pension reform 

act

2. Early Retirement Subsidies: All early retirement pensions were removed upon the 

Plan entering critical status in 2010; prior early retirement benefits were not 

subsidized 

3. Optional Form of Payment Subsidies: Upon entering critical status the Plan removed 

the only subsidized form of benefit payment which was a life annuity with a sixty 

month guarantee of benefit payments 

4. Disability Pension Benefits for Current Active Participants: The Plan removed all 

disability benefit pensions for active members whose disability occurred after the 

Plan entering critical status or after the participant’s employer adopted a new or 

renegotiated collective bargaining agreement

5. Death Benefit: The Plan removed a $5,000 post-retirement death benefit for all active 

participants and deferred vested participants not in pay status upon the Plan entering 

critical status for deferred vested participants or upon the participant’s last employer 

adopting a new or renegotiated collective bargaining agreement after January 1, 2010 

IBT436-0022
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 5. Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid 

Insolvency

5.02 Fund Factors 

In accordance with §432(e)(9)(C)(ii), the following specific information was taken into 

account by the plan sponsor in determining that all reasonable measures have been taken 

to avoid insolvency:

1. For the 10 Plan Years immediately preceding 2020; 

a. Section 6.04 summarizes total contributions and contribution base units, Sections 

5.01 and 5.03 summarize the contribution rates

b. Benefit accrual levels are as follows: 

Regular Plan

 Basic Monthly For employers at $30-$40 weekly contribution:

 Benefit $16.50 for each year of service up to 30 years plus

$1.00 for each year of service in excess of 30 years

 Supplement $250.00 per month

 Lower Plan For employers at less than $30 weekly contribution:

$5.50 for each year of service up to 30 years

1992 Plan Effective in 1992, a lifetime monthly pension equal to:

For employers at $40 weekly contribution:

$27.00 for each year of service up to 10 years,

$31.00 for each year of service between 10 and 20 years,

$35.00 for each year of service between 20 and 30 years,

$36.00 for each year of service between 30 and 32 years

Maximum amount is $1,002

1995 Plan Effective in 1995, a lifetime monthly pension equal to:

For employers where ultimate Rehabilitation Plan contribution is 

$6.50 per hour:

$35.10 for each year of service up to 10 years

$40.30 for each year of service between 10 and 20 years

$45.50 for each year of service between 20 and 30 years

$46.50 for each year of service between 30 and 32 years

Maximum amount is $1,302

1997 Plan Effective in 1997, a lifetime monthly pension equal to:

For employers where ultimate Rehabilitation Plan contribution is 

$7.35 per hour:

$41.10 for each year of service up to 10 years

$47.20 for each year of service between 10 and 20 years

$53.30 for each year of service between 20 and 30 years

$54.50 for each year of service between 30 and 32 years

Maximum amount is $1,525

1998 Plan Effective in 1998, a lifetime monthly pension equal to:

For employers where ultimate Rehabilitation Plan contribution is 

$7.80 per hour:

$47.20 for each year of service up to 10 years

IBT436-0023
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 5. Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid 

Insolvency

$54.20 for each year of service between 10 and 20 years

$61.10 for each year of service between 20 and 30 years

$62.10 for each year of service between 30 and 32 year

Maximum amount is $1,750

2000 Plan Effective in 2000, a lifetime monthly pension equal to:

For employers where ultimate Rehabilitation Plan contribution is 

$8.70 per hour:

$56.70 for each year of service up to 10 years

$65.00 for each year of service between 10 and 20 years

$73.30 for each year of service between 20 and 30 years

$75.00 for each year of service between 30 and 32 years

Maximum amount is $2,100

2001 Plan Effective in 2001, a lifetime monthly pension equal to:

For employers where ultimate Rehabilitation Plan contribution is 

$9.15 per hour:

$62.10 for each year of service up to 10 years

$71.20 for each year of service between 10 and 20 years

$80.30 for each year of service between 20 and 30 years

$82.00 for each year of service between 30 and 32 years

Maximum amount is $2,300

For employers where ultimate Rehabilitation Plan contribution is 

$9.60 per hour:

$67.20 for each year of service up to 10 years

$77.50 for each year of service between 10 and 20 years

$87.50 for each year of service between 20 and 30 years

$89.00 for each year of service between 30 and 32 years

Maximum amount is $2,500

For employers where ultimate Rehabilitation Plan contribution is 

$10.05 per hour:

$72.60 for each year of service up to 10 years

$83.70 for each year of service between 10 and 20 years

$94.50 for each year of service between 20 and 30 years

$96.00 for each year of service between 30 and 32 years

Maximum amount is $2,700

2014 Plan Effective in 2014, a lifetime monthly pension equal to:

For employers where ultimate Rehabilitation Plan contribution is 

$2.28 per hour:

$8.55 for each year of service up to 10 years

$9.86 for each year of service between 10 and 20 years

$11.13 for each year of service between 20 and 30 years

$11.31 for each year of service between 30 and 32 years

Maximum amount is $318

c. Section 5.01 summarizes the reductions of adjustable benefits under §432(e)(8) 

d. There have been no prior suspensions of benefits under §432(e)(9) 

e. Measures undertaken by the plan sponsor to retain or attract contributing 

employers;

IBT436-0024
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 5. Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid 

Insolvency

Effective October 1, 2014 the Plan implemented the Excavating and Building Material 

Drivers Union Local 436 Pension Fund Policy Statement on the Acceptance of Proposed 

Bargaining Agreements for Plan Participation which contained the following provision 

for accommodation of employers who otherwise cannot financially adhere to the policy 

of full participation in the Plan. 

Employer Hardship Circumstances 

If an otherwise non-complying contributing employer can demonstrate through the 

submission of objective evidence satisfactory to the Trustees that: (i) it cannot financially 

sustain the contribution requirements of this Policy for all or a part of any term of a 

collective bargaining agreement; (ii) it has not otherwise acted in a manner that 

undermines, either directly or indirectly, the actuarial solvency of the Plan (e.g. through 

‘double breast’ or other non-union operation(s)); and (iii) a complete or partial 

withdrawal from the Pension Fund would likely result in the employer’s withdrawal 

liability being uncollectable. Notwithstanding the foregoing, the Trustees shall be 

empowered to vary the terms and conditions of this Policy for employers meeting this 

hardship exception in their sole discretion, so as to permit an employer’s continued 

participation in the Fund, provided that the employer’s contribution rates and 

corresponding benefits to the employer’s employees are actuarially sound. 

Additionally, in 2014 the Plan Sponsor instituted a new benefit plan that accrues benefits 

of $318 per month for a participant who earns thirty-two years of service. 

2. The impact on plan solvency of the subsidies and ancillary benefits, if any, available 

to the active participants.

There are no remaining ancillary benefits for Active Participants 

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

industry generally. 

When taking into account the total wage package for our Active participants, the 

compensation levels are higher than the employees of competing trucking firms. 

4. Competitive and other economic factors facing contributing employers. 

Generally the Northeast Ohio economy has lagged the general national economy. 

Nearly all of the Plan’s participants are in the construction industry and the 

construction industry in Northeast Ohio has been stagnant over the last twenty years.

Additionally, the growth of cheap, non-union trucking has driven a number of 

companies to utilize those companies rather than employers who contribute to the 

Plan.

The burden of potential large withdrawal liability amounts have made it more 

difficult for contributing employers to obtain financing thereby hindering growth of 

their business and possible addition of active participants. 

IBT436-0025
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 5. Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid 

Insolvency

5.03 How Funds Factors Were Taken Into Account 

The factors listed under section 5.02 of this application were taken into account in the 

determination that all reasonable measures have been taken to avoid insolvency, as 

follows: 

1. Contribution levels - The highest hourly wage rate collectively bargained by 

contributing employers is $30.15 as of May 1, 2020 in the Ohio Contractors 

Association – Ohio Conference of Teamsters bargaining agreement May 1, 2019 to 

April 30, 2022. The negotiated pension contribution rate is $10.05, 33.33% of the 

wage rate. In other agreements that require the same $10.05 contribution rate the 

hourly wage rate is a s low as $21.98 in the S.B. Morabito Trucking – IBT Local 

Union No, 436 2014 to 2019 agreement, 45.7% of the wage rate. 

2. Levels of Benefit accruals - The Plan Sponsor has not increased benefit levels since 

2001. In 2014 a new benefit plan was established which only provides for a 

maximum $318 benefit after 32 years of service. 

3. Prior reductions of adjustable benefits under §432(e)(8) - See section 5.01 above. 

4. Measures undertaken by the plan sponsor to retain or attract contributing employers - 

See section 5.02(1)e above. 

5. Impact on plan solvency of the subsidies and ancillary benefits available to active 

participants - These are no longer available to active participants.

6. Compensation levels of active participants relative to employees in the participants’ 

industry generally - See paragraph 1 above.

7. Competitive and other economic factors facing contributing employers - See 

paragraph 1 above.

8. Factors described in §432(e)(9)(C)(ii)(VIII) (the impact of benefit and contribution 

levels on retaining active participants and bargaining groups under the plan) and 

§432(e)(9)(C)(II)(IX) (the impact of past and anticipated contribution increases under 

the plan on employer attrition and retention levels) - The Trustees determined that 

increasing contribution levels further than already discussed or reducing future 

benefit accruals any further, will result in a loss of the members support for the 

pension plan. 

IBT436-0026
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 5. Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid 

Insolvency

5.04 Other Factors Considered

Many of the employers contributing to the Plan are also contributing employers in the 

Excavating and Building Material Drivers Union Local 436 Welfare Fund. The current 

contribution rate for that Welfare Fund is $8.10 per hour. In 2019 the highest 

contribution rate was $7.69 per hour. The Plan Sponsor considered the total benefit cost 

in relation to the wages paid by contributing employers and decided that contribution 

increases without a commensurate increase in benefit levels was unsupportable. 

IBT436-0027
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 6. Other Required Information 

6.01 Ballot

Exhibit 6.01 contains the proposed ballot intended to satisfy the requirements of 

§432(e)(9)(H)(iii). 

6.02 Partition 

The plan sponsor is requesting approval from the Pension Benefit Guaranty Corporation 

(PBGC) of a proposed partition under section 4233 of ERISA. The proposed effective 

date of the partition is May 1, 2021. 

Exhibit 6.02 contains a plan-year-by-plan year projection of the amount of the reduction 

in benefit payments attributable to the partition. 

6.03 Actuarial Assumptions Used for Projections

 Exhibit 6.03 contains: 

1. A description of each of the assumptions used in the projections required under 

Sections 3.01, 3.02, 4.02(1). 4.02(2) and 4.03 of Revenue Procedure 2017-43. 

2. Supporting evidence for the selection of these assumptions.

3. An explanation of any difference among assumptions used for various purposes 

throughout this application. 

6.04 Ten-Year Experience for Certain Critical Assumptions 

Plan Year 

Beginning 

January 1,

Total 

Contributions

Contribution 

Base Units

Average 

Contribution 

Rate

Withdrawal 

Liability 

Payments

Rate of 

Return on 

Plan Assets

(1) (2) (3) (4) (5)

2010 $ 3,750,698 693,363 5.41 $359,734 12.98%

2011 $ 3,923,394 672,272 5.84 977,401 -0.84%

2012 $ 3,809,827 593,419 6.42 1,692,384 13.42%

2013 $ 3,201,073 440,984 7.26 1,081,665 19.22%

2014 $ 3,595,482 433,192 8.30 2,229,277 7.70%

2015 $ 4,230,702 369,915 11.44 1,707,851 -2.37%

2016 $ 2,824,567 326,219 8.66 2,839,452 8.06%

2017 $ 2,796,041 304,304 9.19 2,029,222 12.93%

2018 $ 2,705,407 275,000 9.84 2,508,140 -6.07%

2019 $ 2,345,877 246,925 9.50 3,038,275 19.10%

IBT436-0028
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 6. Other Required Information 

6.05 Demonstration of Sensitivity of Projections

Exhibits 6.05(1)-6.05(4) contain the deterministic projections of the sensitivity of the 

plan’s solvency ratio throughout the extended period to the following key assumptions. 

All other assumptions used for these projections are the same as those used under section 

4.02(1) of the application, except that; 

1. The assumed rate of return is reduced by 1 percentage point 

2. The assumed rate of return is reduced by 2 percentage points 

3. Future contribution base units decrease at a rate of 11% (the average annual rate of 

decrease that the plan experienced over the past ten years)

4. Future contribution base units decrease at a rate of 12% (the rate stated in 6.05(3) 

reduced by one percentage point) 

6.06 Projection of Funded Percentage

Exhibit 3.02 contains the illustration, prepared on a deterministic basis, of the projected 

value of Fund assets, the accrued liability of the Fund (calculated using the unit credit 

funding method) and the funded percentage for each year in the extended period. 

6.07 Plan Sponsor Certifications Relating to Plan Amendments

The plan sponsor certifies that if it receives final authorization to implement the 

suspension as described in §432(e)(9)(H)(vi) and chooses to implement the authorized 

suspension, then, in addition to the Plan of Benefits amendment implementing the 

suspension, the following Plan amendments will be timely adopted and not modified at 

any time thereafter before the suspension of benefits expires:

1. A plan amendment providing that in accordance with §432(e)(9)(C)(ii) the benefit 

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

in which the plan sponsor fails to maintain a written record of its determination that 

both: 

a. All reasonable measures to avoid insolvency continue to be taken during the 

period of the benefit suspension. 

b. The plan would not be projected to avoid insolvency if no suspension of benefits 

were applied under the plan. 

2. A plan amendment providing that any future benefit improvements must satisfy the 

requirements of §432(e)(9)(E). 

IBT436-0029
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 6. Other Required Information 

6.08 Whether a Plan is Described in §432(e)(9)(D)(vii)

This is not a plan described in §432(e)(9)(D)(vii).

6.09 Narrative Statement of Reasons Fund is in Critical and Declining Status

Economic conditions in the Northeast Ohio area have lagged the general economy. This 

has resulted in diminished construction activities which reduced the need for trucking 

which caused contributing employers to reduce their participation in the Plan. Due to 

economic conditions construction companies have sought to reduce costs by contracting 

with cheaper, i.e. non-union, trucking firms, thereby reducing the number of union truck 

drivers employed. Over the last twenty years participation in the Plan has dropped 

precipitously: 

• In 2000 147 contributing employers reported 1,117 active participants to the plan 

who worked 1,903,000 hours. 

• In 2005 117 contributing employers reported 758 active participants to the plan 

who worked 1,281,000 hours. 

• In 2010 85 contributing employers reported 448 active participants to the plan 

who worked 705,000 hours. 

• In 2015 51 contributing employers reported 230 active participants to the plan 

who worked 380,000. 

• In 2019 37 contributing employers reported 171 active participants to the plan 

who worked 262,000 hours. 

Additionally, two large employers ceased operations without warning and did not pay 

their withdrawal liability due to lack of assets. In February 2013, Granger Trucking 

ceased operations without warning. In 2012 Granger Trucking employed 24 participants 

and reported over 42,000 hours to the Plan. Attempts to collect withdrawal liability in 

the amount of $3,300,000 resulted in no recovery for the Plan due to lack of assets. 

In 2010 Collinwood Shale and related companies Southwest Supply and Sherman 

Industries ceased operations. In 2008 and 2009 these companies reported over 61,000 

hours to the Plan for 35 participants. 

IBT436-0030
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 7. Identification and Background Information on the Fund

7.01 Board of Trustees Information 

Board of Trustees Information

Sponsor Name Board of Trustees of Building Material Drivers 

Local 436 Pension Fund 

Sponsor EIN/PN 34-6665225/001

Address 6051 Carey Drive

Valley View, OH 44125

Telephone 216-328-0436

Email gboncella@ibt436funds.com

Fax 216-328-0652

7.02 Plan Identification 

Plan Identification

Plan Name Building Material Drivers Local 436 Pension Fund

Plan EIN / PN 34-6665225/001

7.03 Retired Participant Representative

The plan sponsor was not required to appoint a retiree representative under 

§432(e)(9)(B)(v)(I)

7.04 Fund’s Enrolled Actuary 

Fund’s Enrolled Actuary

Actuary Name Joseph Mara Jr.

Enrollment Number 20-06992

Company Cheiron, Inc.

Address 200 West Monroe Street, Suite 1800

Chicago, IL 60606

Telephone 312-629-8401 x1207

Email jmara@cheiron.us

7.05 Power of Attorney 

Designation of power of attorney for all authorized representatives who will represent the 

Board of Trustees in connection with the application is provided as Exhibit 7.05.

IBT436-0031
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Section 7. Identification and Background Information on the Fund

7.06 Plan Documents

 The following information is provided as Exhibits 7.06a-c:

 

Exhibit 7.06a: Most recent plan document and 

plan amendments adopted since 

that restatement 

Exhibit 7.06b: Most recent summary plan 

description (SPD) and all 

subsequent summaries of 

material modification

Exhibit 7.06c: Most recent determination letter 

issued to the Fund

7.07 Collective Bargaining and Side Agreements

Excerpts from the collective bargaining agreement pursuant to which the Fund

maintained are provided as Exhibit 7.07. The required excerpts contain language from 

the collective bargaining agreement that are relevant to the Fund or the proposed 

suspension. 

7.08 Annual Return 

Exhibit 7.08 contains the following excerpts from the most recently filed Form 5500, the 

Form 5500 for the Plan Year ending December 31, 2018: 

• Pages 1 and 2 of the Form 5500, without attachments or schedules 

• The Schedule MB, including attachments 

• The Schedule R, including attachments 

• The accountant’s report under section 103(a)(3) of ERISA 

7.09 Rehabilitation Plan 

Exhibit 7.09 contains the most recently updated Rehabilitation Plan described in 

§432(e)(3). 

7.10 Valuation Reports 

Exhibit 7.10 contains the two most recent actuarial valuation reports for the Fund. 

7.11 Completed Checklist 

A completed checklist of Information required to be included in the application is 

provided as Exhibit 7.11.

IBT436-0032
 

FOR PLAN YEAR COMMENCING JANUARY 1, 2020

ANNUAL CERTIFICATION OF PLAN STATUS UNDER SECTION 432(b) OF THE 

INTERNAL REVENUE CODE, (SEC. 305(b) OF THE EMPLOYEE RETIREMENT 

INCOME SECURITY ACT OF 1974)

FOR

BUILDING MATERIAL DRIVERS

LOCAL 436 PENSION FUND

 

March 30, 2020

EIN: 34-6665225

PN: 001

Fund Contact Information

Gary A. Boncella

Plan Administrator

Building Material Drivers

Local 436 Pension Fund

6051 Carey Drive

Valley View, OH 44125-4259

(216) 328-0436

Exhibit 3.01a 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0033
Board of Trustees of the March 30, 2020 

Building Material Drivers Local 436 Pension Fund EIN: 34-6665225 

6051 Carey Drive PN: 001 

Valley View, OH 44125 Tel: (216) 328-0436 

Re: Annual Certification of Plan Status under Internal Revenue Code §432(b) and 

Employee Retirement Income Security Act of 1974 §305(b)

Dear Board of Trustees:

CERTIFICATION

As required by Section 432(b)(3) of the Internal Revenue Code (“Code”) and Section 305(b)(3) of 

the Employee Retirement Income Security Act of 1974 (“ERISA”), we certify, for the Plan year 

beginning January 1, 2020, that the Fund is classified as being in Critical and Declining status as 

this term is defined in Section 432(b) of the Code and Section 305(b) of ERISA as amended by 

the Multiemployer Pension Reform Act of 2014. This certification also takes into account the 

funding relief under Section 431(b)(8)(A) and 431(b)(8)(B) of the Code and Section 304(b)(8)(A) 

and 304(b)(8)(B) of ERISA. 

The rehabilitation period began on January 1, 2012. We certify that the Fund is making scheduled 

progress in meeting the requirements of its Rehabilitation Plan as discussed in Appendix III. 

This certification has been prepared in accordance with the requirements of Section 432 of the 

Code, Section 305 of ERISA, and generally recognized and accepted actuarial principles and 

practices and our understanding of the Code of Professional Conduct and applicable Actuarial 

Standards of Practice set out by the Actuarial Standards Board as well as applicable laws and 

regulations. Furthermore, as credentialed actuaries, we meet the Qualification Standards of the 

American Academy of Actuaries to render the opinion contained herein. This report does not 

address any contractual or legal issues. We are not attorneys and our firm does not provide any 

legal services or advice.

This certification was prepared for the Trustees of the Pension Fund and the Secretary of the 

Treasury. It only certifies the condition of the Fund under Code Section 432 as added by the 

Pension Protection Act of 2006 and should be used only for that purpose. Other users of this report 

are not intended users as defined in the Actuarial Standards of Practice, and Cheiron assumes no 

duty or liability to such other users. 

In preparing this certification, we have relied on information supplied by the Fund Office and the 

Board of Trustees. This information includes, but is not limited to, fund provisions, employee data, 

financial information, and expectations of future industry activity. We performed an informal 

examination of the obvious characteristics of the data for reasonableness and consistency in 

accordance with Actuarial Standard of Practice No. 23. 

Exhibit 3.01a 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0034

APPENDIX I – TESTS OF FUND STATUS

Condition

Met?

Critical Status – The Fund, which has a 431(d) five-year automatic extension, was certified as 

Critical last year and will remain Critical if it meets either of the 2 following conditions:

1 The Fund is projected to have an accumulated funding deficiency for the current 

Plan year or the next nine plan years. YES

2 The Fund is projected to become insolvent within 30 years.

YE

Critical and Declining Status – The Fund will be certified as Critical and Declining if it meets 

test 3.

3 The Fund is Critical and projected to become insolvent within the current or the 

next 19 (since the funding level is below 80%) plan years. YE

The Fund is certified to be in Critical and Declining status for 2020. 

Exhibit 3.01a 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0036

 

APPENDIX III – SCHEDULED PROGRESS

IRC §432(e)(3)(A)(i) and (ii) require that a Critical plan (as defined in IRC §432(b)(2)) adopt a 

Rehabilitation Plan that, based on reasonable assumptions, projects that it will not emerge from 

Critical status by the end of its rehabilitation period, or that such plan take “all reasonable 

measures” which enable it to emerge at a later date or which forestall its possible insolvency. 

In the absence of guidance and direction from the Internal Revenue Service in this regard, the 

Plan’s Board of Trustees believes that its actions to date constitute “all reasonable measures.” 

Currently, all active employers have adopted this Rehabilitation Plan for the duration of their most 

recent collective bargaining agreement. On this basis we believe that the Fund is making scheduled 

progress in meeting the requirements of its Rehabilitation Plan as discussed in IRC 

§432(b)(3)(A)(ii).

Exhibit 3.01a 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0038
APPENDIX IV – METHODOLOGY AND ASSUMPTIONS

A. Actuarial Assumptions

1. Rate of Investment Return

Funding and disclosure purposes: 7.00% compounded annually 

All investment returns are net of investment expenses.

2. Mortality

Healthy Lives: RP-2014 adjusted to 2006 Blue Collar Mortality, projected using the 

MP-2016 improvement scale with base year 2006 and generational mortality 

improvements. 

Disabled Lives: RP-2014 Disabled Retiree Mortality, projected using the MP-2014 

improvement scale with base year 2014 and generational mortality improvements 

3. Rates of Turnover 

Termination rates due to disability that were used when the Plan provided a disability 

benefit are added to rates for termination of employment for reasons other than death, 

disability, or retirement. Sample rates:

Rate of Rate of Total Turnover 

Age Termination Disability Rate 

25 17.24% 0.09% 17.33% 

35 14.88% 0.13% 15.01% 

45 10.88% 0.34% 11.22% 

55 4.45% 1.16% 5.61% 

4. Retirement

Age Rate

62 20.0% 

63-64 12.5% 

65 17.5% 

66 100.0% 

5. Late Retirement

We have assumed that Suspension of Benefits Notices have been given to all participants 

who worked beyond their Normal Retirement Date. 

6. Administrative Expenses

$670,000 assumed payable at the beginning of the year. 

7. Marriage Rate 

For participants not receiving benefits, 80% of the male participants and 50% of the female 

participants will have a surviving spouse with wives assumed to be three years younger 

than husbands. 

Exhibit 3.01a 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0039
APPENDIX IV – METHODOLOGY AND ASSUMPTIONS

B. Actuarial Methods

1. Asset Valuation Method

The valuation assets are determined as the market value less (1) 80% of the investment 

gain/(loss) during the preceding year, less (2) 60% of the investment gain/(loss) during the 

second preceding year, less (3) 40% of the investment gain/(loss) during the third preceding 

year, less (4) 20% of the investment gain/(loss) for the fourth preceding year. However, 

the 2008 investment loss is recognized at a rate of 10% per Plan year due to PRA 2010 

Funding Relief. For the purpose of this calculation, the gain/(loss) is defined as the 

difference between the actual and the expected return (based on the valuation interest rate) 

on the Market Value of Assets during the year.

The actuarial value is taken to be the adjusted market value as described above, but subject 

to a 20% corridor limit around the actual market value; that is, the actuarial value is never 

greater than 120% of market value, not less than 80% of market value. 

2. Funding Method: Unit Credit Cost Method

The cost method for valuation of liabilities used for this valuation is the Unit Credit method. 

This is one of a family of valuation methods known as an accrued benefits method. The 

chief characteristic of an accrued benefits method is that the funding pattern follows the 

pattern of benefit accrual. Under the Unit Credit Actuarial cost method, the normal cost is 

determined as that portion of each participant’s benefit attributable to service expected to 

be earned in the upcoming plan year. The Actuarial Liability, which is determined for each 

participant as of each valuation date, represents the Actuarial Present Value of the

participant’s current accrued benefit as of the valuation date.

One of the significant effects of this funding method is that, depending on the 

demographics of the population, the Unit Credit method tends to produce lower costs in 

the early years. There is a possibility that as the population ages, the annual cost could 

increase over time.

Exhibit 3.01a 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0040
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 3.01b 

Actuarial Certification of Status for the 2020 Plan Year (Checklist #5)

IBT436-0041
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 3.02

Certification of Avoiding Insolvency (Checklist Item #6, #9, & #28) 

 

WL WL Terminated Future Total

Payments Payments Administrative Vested New Benefit Investment Investment Available Solvency Accrued Funded

Year BoY Assets Contributions Prior Future Expenses Retirees Beneficiaries Participants Actives Entrants Payments Rate Return EoY Assets Resources Ratio Liability Percentage

2020 18,600,185 1,345,430 1,444,925 91,751 626,147 5,587,435 687,168 778,466 101,318 - 7,154,387 16.92% 2,748,888 16,450,645 23,605,032 3.30 108,513,350 17%

2021 16,450,645 1,724,361 1,217,429 242,286 595,987 4,509,514 514,739 326,666 188,690 - 5,539,610 6.11% 916,302 14,415,427 19,955,036 3.60 108,976,726 15%

2022 14,415,427 1,541,800 1,202,495 334,499 460,700 3,028,396 318,521 62,944 201,898 - 3,611,759 6.11% 850,876 14,272,638 17,884,396 4.95 33,933,490 42%

2023 14,272,638 1,385,925 1,157,846 334,499 470,756 2,900,551 302,032 81,520 267,138 - 3,551,241 6.11% 837,635 13,966,547 17,517,788 4.93 32,789,879 44%

2024 13,966,547 1,241,238 1,103,511 334,499 481,707 2,770,050 285,569 102,248 320,703 - 3,478,569 6.11% 814,801 13,500,319 16,978,888 4.88 31,607,108 44%

2025 13,500,319 1,115,647 1,103,511 334,499 493,582 2,638,222 269,457 118,998 362,511 499 3,389,685 6.11% 784,852 12,955,560 16,345,245 4.82 30,397,178 44%

2026 12,955,560 1,115,647 1,029,858 334,499 507,797 2,505,049 253,687 137,202 403,557 1,767 3,301,263 6.11% 751,584 12,378,088 15,679,351 4.75 29,176,912 44%

2027 12,378,088 1,115,647 1,000,062 334,499 522,849 2,371,099 238,319 145,407 445,377 2,540 3,202,743 6.11% 717,916 11,820,621 15,023,363 4.69 27,962,691 44%

2028 11,820,621 1,115,647 990,420 334,499 538,741 2,236,988 223,412 151,268 501,464 3,481 3,116,613 6.11% 685,678 11,291,511 14,408,124 4.62 26,765,386 44%

2029 11,291,511 1,115,647 981,128 334,499 555,475 2,103,359 209,014 153,163 539,088 4,808 3,009,432 6.11% 655,792 10,813,670 13,823,102 4.59 25,573,363 44%

2030 10,813,670 1,115,647 882,503 334,499 573,064 1,970,902 195,162 161,960 584,353 7,811 2,920,188 7.35% 752,909 10,405,976 13,326,164 4.56 24,408,767 44%

2031 10,405,976 1,115,647 662,182 334,499 578,887 1,840,356 181,878 164,039 614,771 11,817 2,812,861 7.35% 718,654 9,845,210 12,658,071 4.50 23,254,964 45%

2032 9,845,210 1,115,647 651,072 334,499 574,520 1,712,475 169,169 164,606 647,805 16,829 2,710,885 7.35% 680,876 9,341,899 12,052,784 4.45 22,131,415 44%

2033 9,341,899 1,115,647 622,046 334,499 553,289 1,587,958 157,037 168,862 666,376 22,348 2,602,580 7.35% 647,511 8,905,733 11,508,313 4.42 21,034,702 44%

2034 8,905,733 1,115,647 534,969 334,499 530,674 1,467,404 145,483 174,415 671,491 28,493 2,487,286 7.35% 617,287 8,490,174 10,977,460 4.41 19,973,251 45%

2035 8,490,174 1,115,647 534,969 334,499 508,448 1,351,292 134,500 170,559 681,090 36,420 2,373,861 7.35% 591,641 8,184,621 10,558,482 4.45 18,956,759 45%

2036 8,184,621 1,115,647 534,969 334,499 487,215 1,239,932 124,076 173,290 681,935 46,110 2,265,344 7.35% 573,866 7,991,044 10,256,388 4.53 17,986,440 46%

2037 7,991,044 1,115,647 534,969 334,499 464,274 1,133,518 114,194 168,123 675,290 57,109 2,148,234 7.35% 564,694 7,928,345 10,076,579 4.69 17,060,450 47%

2038 7,928,345 1,115,647 391,067 334,499 442,249 1,032,172 104,836 166,843 662,138 69,676 2,035,664 7.35% 559,749 7,851,394 9,887,058 4.86 16,190,781 49%

2039 7,851,394 1,115,647 247,165 334,499 425,138 935,940 95,983 165,284 665,796 84,624 1,947,626 7.35% 552,695 7,728,636 9,676,262 4.97 15,376,677 51%

2040 7,728,636 1,115,647 123,582 212,164 405,506 844,836 87,621 160,468 652,933 101,113 1,846,970 7.35% 539,137 7,466,690 9,313,660 5.04 14,596,654 53%

2041 7,466,690 1,115,647 - 92,212 388,445 758,884 79,737 156,295 646,438 117,810 1,759,165 7.35% 514,878 7,041,817 8,800,982 5.00 13,866,149 54%

2042 7,041,817 1,115,647 - - 371,743 678,115 72,317 151,647 635,862 135,242 1,673,182 7.35% 484,028 6,596,567 8,269,749 4.94 13,175,334 53%

2043 6,596,567 1,115,647 - - 355,926 602,548 65,346 146,199 623,858 153,707 1,591,659 7.35% 454,816 6,219,445 7,811,104 4.91 12,525,104 53%

2044 6,219,445 1,115,647 - - 339,615 532,200 58,810 141,005 602,106 173,615 1,507,735 7.35% 430,716 5,918,457 7,426,192 4.93 11,913,685 52%

2045 5,918,457 1,115,647 - - 325,445 467,079 52,694 135,786 583,390 195,652 1,434,602 7.35% 411,745 5,685,802 7,120,404 4.96 11,346,279 52%

2046 5,685,802 1,115,647 - - 313,097 407,165 46,987 129,920 568,034 218,581 1,370,686 7.35% 397,398 5,515,064 6,885,750 5.02 10,814,804 53%

2047 5,515,064 1,115,647 - - 299,848 352,430 41,684 123,242 543,460 241,579 1,302,395 7.35% 387,792 5,416,260 6,718,655 5.16 10,312,241 53%

2048 5,416,260 1,115,647 - 287,830 302,803 36,784 116,647 519,453 264,716 1,240,403 7.35% 383,201 5,386,875 6,627,278 5.34 9,845,139 55%

2049 5,386,875 1,115,647 - 277,276 258,174 32,285 110,231 497,272 287,914 1,185,877 7.35% 383,391 5,422,760 6,608,637 5.57 9,409,465 57%

2050 5,422,760 1,115,647 - 266,683 218,381 28,183 103,244 470,260 311,251 1,131,320 7.35% 388,380 5,528,784 6,660,105 5.89 8,999,697 60%

2051 5,528,784 1,115,647 - 257,051 183,209 24,468 96,246 443,194 334,617 1,081,734 7.35% 398,311 5,703,957 6,785,691 6.27 8,617,678 64%

2052 5,703,957 1,115,647 - 248,730 152,413 21,124 89,195 419,108 357,028 1,038,867 7.35% 413,034 5,945,039 6,983,907 6.72 8,260,210 69%

2053 5,945,039 1,115,647 - 241,201 125,711 18,139 82,205 395,018 379,049 1,000,122 7.35% 432,424 6,251,786 7,251,909 7.25 7,922,061 75%

2054 6,251,786 1,115,647 - 234,635 102,797 15,497 75,330 371,748 400,971 966,343 7.35% 456,426 6,622,881 7,589,225 7.85 7,600,320 82%

Benefit Payments

IBT436-0042
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.01a-4.01h

Demonstration of Federal Limitations on Individual Suspension (Checklist Item #8)

Data 4.01a 4.01b 4.01c 4.01d 4.01e 4.01f 4.01g 4.01h

1 Rec ID 171 197 3 1198 336 416 313 1337

2 Status Retired Beneficiary Active Term Vested Disability Retired Beneficiary Term Vested

3 Date of Birth 12/24/1950 8/30/1962 8/20/1979 11/17/1963 3/25/1952 3/24/1943 8/16/1945 4/11/1945

4 Spouse Date of Birth 6/26/1951 12/5/1936 12/31/1942

5 Effective Date 5/1/2021 5/1/2021 5/1/2021 5/1/2021 5/1/2021 5/1/2021 5/1/2021 5/1/2021

6 Normal Retirement Date 9/1/2044 12/1/2028 1/1/2020

7 Form of Payment JS LA LA LA LA LA LA LA

8 Credited Service at Effective Date 32.0000 30.7000 12.8111 26.3000 20.9860 31.2000 25.7000 5.8000

9 Accrued Benefit at Effective Date 2,148.24$ 1,011.92$ $ 794.53 $ 2,158.35 1,533.27$ $ 2,623.20 $ 960.08 $ 421.08

Participant Calculations

10 Plan's Accrual Rate ([9]/[8]) 67.13 32.96 62.02 82.07 73.06 84.08 37.36 72.60

11 PBGC Accrual Rate1 35.75 27.47 35.75 35.75 35.75 35.75 30.77 35.75

12 PBGC Guarantee ([8]*[11]) 1,144.00 843.37 458.00 940.23 750.25 1,115.40 790.74 207.35

13 110% PBGC Guarantee

(110%*[12], not more than [9]) 1,258.40 927.70 503.80 1,034.25 825.27 1,226.94 869.81 228.09

14 Maximum Suspendable

([9]-[13], $0 for Disabled) 889.84 84.22 290.73 1,124.10 - 1,396.26 90.27 192.99

15 Age for MPRA Limitation2 70.42 58.75 41.75 57.50 69.17 78.17 75.75 76.08

16 Age Based Protection3 0.00% 0.00% 0.00% 0.00% 100.00% 63.33% 15.00% 21.67%

17 Proposed Benefit ([9]-[14]*(1-[16])) 1,258.40$ $ 927.70 $ 503.80 $ 1,034.25 1,533.27$ $ 2,111.24 $ 883.35 $ 269.90

Beneficiary Calculations (if applicable)

18 Survivor's Benefit 1,074.12$ 

19 Plan's Accrual Rate ([18]/[8]) 33.57

20 PBGC Accrual Rate4 27.92

21 PBGC Guarantee ([8]*[20]) 893.59

22

110% PBGC Guarantee

(110%*[12], not more than [18]) 982.95

23

Maximum Suspendable

([18]-[22], $0 for Disabled) 91.17

24 Proposed Benefit ([18]-[23]*(1-[16])) $ 982.95

1 100% of first $11 plus 75% of the next $33 (based on [10])

2 Age on the last day of the month that contains the proposed effective date 

3 Number of months from [15] to age 80, divided by 60

4 100% of first $11 plus 75% of the next $33 (based on [19])

IBT436-0043
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.04(1a)

Effect of Proposed Suspension in Aggregate and by Group (Checklist Item #12)

Average Monthly Average Monthly Aggregate Present

Participant Benefit Before Benefit After Value of Reduction

Status Count Suspension Suspension in Benefits

Retired 638 907.02 704.91 14,155,985

Beneficiary 235 331.77 322.40 258,416

Disability 33 1,243.55 1,243.55 -

QDRO 25 382.96 294.01 288,254

Term Vested 525 609.97 382.38 9,646,000

Active 116 930.10 496.35 3,618,712

Total 1,572 4,405.36 3,443.60 27,967,367

IBT436-0044
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.04(1b)

Distribution of Proposed Suspension by Group (Checklist Item #12)

 

>0% and >10% and >20% and >30% and >40% and >50% and >60% and >70% and >80% and >90% and

Status 0% <=10% <=20% <=30% <=40% <=50% <=60% <=70% <=80% <=90% <=100% Total

Retired 242 148 47 40 50 91 19 1 0 0 0 638

Beneficiary 188 45 1 0 0 1 0 0 0 0 0 235

Disability 33 0 0 0 0 0 0 0 0 0 0 33

QDRO 5 7 3 0 3 3 3 0 1 0 0 25

Term Vested 63 93 59 38 87 167 17 0 0 0 1 525

Active 4 15 12 6 9 43 27 0 0 0 0 116

Total 535 308 122 84 149 305 66 1 1 0 1 1,572

Headcount by Benefit Reduction Percentage

IBT436-0045
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05

Participant Notice (Checklist Item #13)

Fund Office: 6051 Carey Drive • Valley View, OH 44125 

Phone: (216) 328-0436 / Fax: (216) 328-0652 

NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS

On June 30, 2020, the Board of Trustees of the Building Material Drivers Local 436 Pension 

Fund (“Plan”) submitted an application to the U.S. Treasury Department for approval to reduce 

benefits under the Plan. This type of benefit reduction is allowed by the Federal law called the 

Multiemployer Pension Reform Act of 2014. 

You are getting this notice because you have a pension benefit under the plan. The end of this 

notice describes the proposed reduction of your monthly payments1. This notice will also 

answer the following questions for you: 

1. Why is the Board of Trustees proposing to reduce benefits? 

2. What will happen if the Plan runs out of money? 

3. How did the Board of Trustees decide whose benefits to reduce and by how much? 

4. What are the proposed reductions in benefits? 

5. What comes next? 

1. WHY IS THE BOARD OF TRUSTEES PROPOSING TO REDUCE BENEFITS?

The Plan’s actuary estimated that, unless benefits are reduced, the Plan will not have enough 

money to pay benefits in the year 2023. This estimate is based on how much money the Plan’s 

actuary expects the Plan to receive and to pay out each year. The Plan’s actuary estimated that, 

with the reduction of benefits that the Board of Trustees has proposed, the Plan should not run 

out of money. 

2. WHAT WILL HAPPEN IF THE PLAN RUNS OUT OF MONEY?

If the plan does not have enough money to pay benefits, then only the amount guaranteed by the 

Pension Benefit Guarantee Corporation (“PBGC”) will be paid. You can find the amount of your 

benefit that is guaranteed by PBGC at the end of this notice. 

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that 

represent Plan participants and to all contributing employers. 

IBT436-0046
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05

Participant Notice (Checklist Item #13)

3. HOW DID THE BOARD OF TRUSTEES DECIDE WHOSE BENEFITS TO 

REDUCE AND BY HOW MUCH?

Under Federal law, the Board of Trustees must apply the following rules to the proposed 

reduction: 

■ The total reduction in everybody’s benefits must be estimated to be large enough to keep 

the plan from running out of money, but not larger than needed to do that. 

■ Your monthly benefit and the benefit of your beneficiary cannot be reduced below 110% 

of the amount guaranteed by PBGC. 

■ Disability benefits (as defined under the Plan) cannot be reduced. 

■ The benefits of people who are at least 80 years old on May 31, 2021 and their 

beneficiaries cannot be reduced.

■ The benefits of people who are at least 75 years old on May 31, 2021 and their 

beneficiaries are partially protected, and the closer the person is to age 80 the less the 

benefits can be reduced.

■ The reduction of benefits must be spread fairly among the people who have a pension 

benefit under the Plan. 

The Board of Trustees took into account many factors when making their decision. However, the 

overriding factor was that even the maximum allowable reductions under law were not enough to 

prevent the Plan from running out of money. Consequently, the Board of Trustees has also 

applied for a partition which should prevent the Plan from running out of money when combined 

with the proposed benefit reductions. 

4. WHAT ARE THE PROPOSED REDUCTIONS IN BENEFITS?

The Board of Trustees proposes the following reduction in benefits effective May 1, 2021: 

The benefits of all Plan Participants, except as indicated in Section 3 above, will be reduced to 

110% of the PBGC guarantee, which is the maximum reduction in benefits allowable by law. 

The PBGC’s guarantee is equal to 100% of the first $11of the plan’s monthly benefit rate, plus 

75% of the next $33 of the monthly benefit rate, times your years of benefit service. The last 

page of this notice provides a dollar estimate of how the proposed reduction applies to you. 

The proposed suspension will remain in effect indefinitely and will not expire by its own terms. 

These reductions, combined with a partition, are projected to keep the plan from running out of 

money. 

IBT436-0047
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05

Participant Notice (Checklist Item #13)

5. WHAT COMES NEXT?

Approval or Denial of the Application by the Treasury Department 

The Treasury Department will review the application to see whether it meets all of the legal 

requirements under Federal Law. If the application meets all of those requirements, the Treasury 

Department is required to approve the application. If the application does not meet the legal 

requirements, the Treasury Department will deny the application. The Treasury Department will 

have until February 10, 2021 to make a decision.

You Can Get Information from the Treasury Department

More information about the proposed benefit reductions and a copy of the application will be 

available at www.treasury.gov/mpra. 

The application will be available on that website within 30 days after the Treasury Department 

receives it. The application includes more information about the proposed reduction, including 

details about: 1) the Plan actuary’s certification that the Plan will run out money (that is, that the 

plan is in “critical and declining status”); 2) how the proposed reduction would satisfy the 

requirement that it be large enough so that the Plan is estimated not to run out of money, while 

not being larger than needed; and 3) the sensitivity of these estimates to the assumptions used.

The application describes the steps the Board of Trustees has already taken to keep the Plan from 

running out of money and why the Board of Trustees believes that the combination of a partition 

and reduction of benefits is the only remaining option to keep the plan from running out of 

money. In addition, the application explains why the Board of Trustees believes that the 

proposed reduction is spread fairly among the people who have a pension benefit under the Plan. 

The Treasury Department website will also provide updated information on the application, such 

as whether the application has been withdrawn. 

For further information and assistance, you can also write to the Treasury Department at the 

following address: 

Department of the Treasury 

Attn: MPRA Office, Room 1204 

1500 Pennsylvania Avenue, NW 

Washington, DC 20220 

IBT436-0048
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05

Participant Notice (Checklist Item #13)

You can Comment on the Application to Reduce Benefits 

You will be able to submit a comment on the application by going to www.treasury.gov/mpra. 

Comments may also be mailed to the Treasury Department, at the address listed above. All 

interested parties can make comments, and the comments will be publicly available.

Retiree Representative

If a plan has 10,000 or more participants, the Board of Trustees must select a retiree 

representative to advocate for the interests of retirees, beneficiaries, and deferred vested 

participants as part of this process. A plan is required to pay the reasonable expenses of the 

retiree representative.

The Board of Trustees is not required to select a retiree representative because the Plan has fewer 

than 10,000 participants. The Board of Trustees has not chosen to select a retiree representative.

Vote on the Proposed Benefit Reduction 

If the application for the proposed reduction of benefits is approved by the Treasury Department, 

then you will have the opportunity to vote on the proposed reduction. Unless a majority of all 

participants and beneficiaries of the Plan vote to reject the reduction, the Treasury Department 

must allow the reduction of benefits to take effect. This means that not voting counts the same as 

a vote to approve the reduction. 

Your Right to See Plan Documents 

You may want to review Plan Documents to help you understand your rights and the proposed 

reduction to your benefits. The Plan Administrator must respond to your request for the 

following documents within 30days: 

■ The Plan document (including any amendments adopted to reflect an authorized 

reduction of benefits), trust agreement, and other documents governing the Plan (such as 

collective bargaining agreements).

■ The Plan’s most recent summary plan description (SPD or plan brochure) and any 

summaries of material modifications. 

■ The Plan’s Form 5500 annual reports, including the accountant’s report and audited 

financial statements, filed with the U.S. Department of Labor during the last six years.

■ The annual funding notices furnished by the Plan during the last six years. 

■ Actuarial reports, including reports prepared in anticipation of the benefit reductions, 

furnished to the Plan within the last six years. 

■ The Plan’s current rehabilitation plan, including contribution schedules, and, if the 

proposed benefit reduction goes into effect, annual plan-sponsor determinations that all 

IBT436-0049
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05

Participant Notice (Checklist Item #13)

reasonable measures to avoid running out of money continue to be taken and that the Plan 

would run out of money if there were no benefit reductions. 

■ Any quarterly, semi-annual, or annual financial reports prepared for the Plan by an 

investment manager, fiduciary, or other advisor and furnished to the plan within the last 

six years.

The Plan Administrator may charge you the cost per page to the Plan for the cheapest way of 

coping documents, but cannot charge more than 25 cents per page. The Plan’s Form 5500 

Annual Return / Report of Employee Benefit Plan is also available free of charge at 

www.efast.dol.gov. Some of the documents also may be available for examination, without 

charge, at the Plan Administrator’s office or Union Hall.

Your Right to Challenge Incorrect Calculations 

If you think the Plan miscalculated the reduction to your benefits, then you have the right to 

submit a claim to the Plan to request that the calculation be corrected. The Plan’s SPD tells you 

how to submit a claim. The SPD also describes your right to have a court review the Plan’s final 

decision on your claim. 

If you believe the information used to calculate your estimate at the end of this is wrong, please 

contact the Plan Office:

6051 Carey Drive 

Valley View, OH 44125 

(216) 328-0436 

gboncella@ibt436funds.com

IBT436-0050
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05a

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

In-Pay (Retiree – J&S Payment Form) 

Your current monthly benefit is $2,148.24. Under the proposed reduction your monthly benefit will be 

reduced to $1,258.40 beginning on May 1, 2021. The proposed reduction is intended to be permanent. 

Without a reduction the plan will run out of money, at which point your benefit will be reduced to 

$1,144.00.

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different. For more information please contact the Fund office at (216) 328-0436.

The estimate is also based on the following information from Plan records:

• Plan records show that you have 32.00 years of Credited Service associated with your benefit.

• You will be 70 years and 5 months old as of May 31, 2021, based on your December 24, 1950 date 

of birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 2,148.24

(b) Credited Service 32.00

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 67.13

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 35.75

(e) PBGC Guaranteed Benefit: (b) × (d) $ 1,144.00

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 1,258.40

(g) Amount of Reduction: (a) – (f) $ 889.84

(h) Monthly Retirement Benefit payable during your lifetime, After Reduction: (f) $ 1,258.40

Estimate of 50% Survivor’s Annuity

(i) 50% Survivor’s Benefit, Before Reduction: Equal to 50% × (a) $ 1,074.12

(j) Accrual Rate, Before Reduction: (i) ÷ (b) $ 33.57 

(k) PBGC Guarantee Accrual Rate, per formula in (d) above: $ 27.92

(l) PBGC Guaranteed Benefit: (b) × (k) $ 893.59

(m) 110% of PBGC Guaranteed Benefit: 1.10 × (l) $ 982.95 

(n) Amount of Reduction: (i) – (m) $ 91.17 

(o) 50% Survivor’s Benefit, After Reduction: Equal to (m) $ 982.95

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $1,144.00. 

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that represent Plan participants 

and to all contributing employers.

IBT436-0051
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05b

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

In-Pay (Beneficiary)

Your current monthly benefit is $1,011.92. Under the proposed reduction your monthly benefit will be 

reduced to $927.70 beginning on May 1, 2021. The proposed reduction is intended to be permanent.

Without a reduction the plan will run out of money, at which point your benefit will be reduced to 

$843.37. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different. 

The estimate is also based on the following information from Plan records:

• Plan records show that you have 30.07 Service Credits associated with your benefit.

• You will be 58 years and 9 months old as of May 31, 2021, based on your August 30, 1962 date 

of birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 1,011.92 

(b) Credited Service 30.07 

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 32.96

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 27.47 

(e) PBGC Guaranteed Benefit: (b) × (d) $ 843.37

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 927.70 

(g) Amount of Reduction: (a) – (f) $ 84.22

(h) Monthly Retirement Benefit payable during your lifetime, After Reduction: (f) $ 927.70

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $843.37. 

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that represent Plan participants 

and to all contributing employers.

IBT436-0052
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05c

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

Not In-Pay (Active Participant)

If you start receiving your benefit on your Normal Retirement Date of September 1, 2044 with no 

additional accruals beyond January 1, 2020, in the form of a Single Life Annuity, your monthly benefit 

without the proposed reduction is estimated to be $794.53. Under the proposed reduction your monthly 

benefit in the same form would be reduced to $503.80. The proposed reduction is intended to be 

permanent. Without a reduction the plan will run out of money, at which point your benefit will be 

reduced to $458.00. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different.

The estimate is also based on the following information from Plan records:

• Plan records show that you have 12.811 Service Credits as of January 1, 2020 associated with 

your benefit.

• You will be 41 years and 9 months old as of May 31, 2021, based on your August 20, 1979 date 

of birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 794.53

(b) Credited Service 12.81

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 62.02

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 35.75

(e) PBGC Guaranteed Benefit: (b) × (d) $ 458.00

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 503.80

(g) Amount of Reduction: (a) – (f) $ 290.73

(h) Monthly Retirement Benefit payable during your lifetime, After Reduction: (f) $ 503.80

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $458.00. 

 

1 A version of this notice that does not include the estimate of the effect on you benefit is being sent to unions that represent Plan participants and 

to all contributing employers.

IBT436-0053
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05d

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

Not In-Pay (Term Vested)

If you start receiving your benefits on your Normal Retirement Date of December 1, 2028 with no 

additional accruals beyond January 1, 2020, in the form of a Single Life Annuity, your monthly benefit 

without the proposed reduction would be $2,158.35. Under the proposed reduction your monthly benefit 

in the same form would be reduced to $1,034.25. The proposed reduction is intended to be permanent. 

Without a reduction the plan will run out of money, at which point your benefit will be reduced to 

$940.23. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different. 

The estimate is also based on the following information from Plan records:

• Plan records show that you have 26.30 Service Credits associated with your benefit.

• You will be 57 years and 6 months old as of May 31, 2021, based on your November 17, 1963 

date of birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 2,158.35

(b) Credited Service 26.30

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 82.07

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 35.75 

(e) PBGC Guaranteed Benefit: (b) × (d) $ 940.23

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 1,034.25

(g) Amount of Reduction: (a) – (f) $ 1,124.10

(h) Monthly Retirement Benefit payable during your lifetime, After Reduction: (f) $ 1,034.25

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $940.23. 

 

1 A version of this notice that does not include the estimate of the effect on you benefit is being sent to unions that represent Plan participants and 

to all contributing employers.

IBT436-0054
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05e

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

No Reduction (Disabled)

Your monthly benefit of $1,533.27 would not change under the proposed reduction. Without a reduction 

the plan will run out of money, at which point your benefit will be reduced to $750.25. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021.

The estimate is also based on the following information from Plan records:

• Plan records show that you have 20.99 Service Credits associated with your benefit

• You will be 69 years and 2 months old as of May 31, 2021, based on your March 25, 1952 date of 

birth.

• The portion of your benefit that is based on disability is $1,533.27. 

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 1,533.27

(b) Credited Service 20.99

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 73.06

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 35.75 

(e) PBGC Guaranteed Benefit: (b) × (d) $ 750.25

(f) Amount of Reduction: $0 for Disabled benefits $ 0.00 

(g) Monthly Retirement Benefit payable during your lifetime, After Reduction: (f) $ 1,533.27

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $750.25

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that represent Plan participants 

and to all contributing employers.

IBT436-0055
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05f

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

In-Pay (Retiree with age-based limitation)

Your current monthly benefit is $2,623.20. Under the proposed reduction your monthly benefit will be 

reduced to $2,111.24 beginning on May 1, 2021. The proposed reduction is intended to be permanent. 

Without a reduction the plan will run out of money, at which point your benefit will be reduced to 

$1,115.40. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different. 

The estimate is also based on the following information from Plan records:

• Plan records show that you have 31.20 Service Credits associated with your benefit.

• You will be 78 years and 2 month old as of May 31, 2021, based on your March 24, 1943 date of 

birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 2,623.20

(b) Credited Service 31.20 

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 84.08

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 35.75 

(e) PBGC Guaranteed Benefit: (b) × (d) $ 1,115.40

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 1,226.94

(g) Maximum Suspendable: (a) – (f) $ 1,396.26

(h) Age based Protection: 63.33% 

(i) Monthly Retirement Benefit payable during your lifetime, After Reduction:

 (a) – (g) × [1 – (h)] $ 2,111.24

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $1,115.40. 

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that represent Plan participants 

and to all contributing employers.

IBT436-0056
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05g

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

In-Pay (Beneficiary with age-based limitation)

Your current monthly benefit is $960.08. Under the proposed reduction your monthly benefit will be 

reduced to $883.35 beginning on May 1, 2021. The proposed reduction is intended to be permanent. 

Without a reduction the plan will run out of money, at which point your benefit will be reduced to 

$790.74. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different. 

The estimate is also based on the following information from Plan records:

• Plan records show that you have 25.70 Service Credits associated with your benefit.

• You will be 75 years and 9 months old as of May 31, 2021, based on your August 16, 1945 date 

of birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 960.08 

(b) Credited Service 25.70 

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 37.36

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 30.77 

(e) PBGC Guaranteed Benefit: (b) × (d) $ 790.74 

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 869.81

(g) Maximum Suspendable: (a) – (f) $ 90.27 

(h) Age based Protection: 15.00% 

(i) Monthly Retirement Benefit payable during your lifetime, After Reduction:

 (a) – (g) × [1 – (h)] $ 883.35

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $790.74. 

 

1 A version of this notice that does not include the estimate of the effect on your benefit is being sent to unions that represent Plan participants 

and to all contributing employers.

IBT436-0057
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 4.05h

Participant Notice Calculations (Checklist Item #13)

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED1

This estimate of the effect of the proposed reduction of benefits has been prepared for:

Not In-Pay (Term Vested with age-based limitation)

Your benefit without the proposed reduction as of January 1, 2020 in the form of a Single Life Annuity is

$421.08. Under the proposed reduction your monthly benefit in the same form would be reduced to 

$269.90. The proposed reduction is intended to be permanent. Without a reduction the plan will run out of 

money, at which point your benefit will be reduced to $207.35. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It is not a final 

benefit calculation. This estimate was prepared assuming that the proposed reduction starts on May 1, 

2021. If the benefit reduction starts later, the effect of the proposed reduction on your benefit might be 

different. 

The estimate is also based on the following information from Plan records:

• Plan records show that you have 5.80 Service Credits associated with your benefit.

• You will be 76 years and 1 month old as of May 31, 2021, based on your April 11, 1945 date of 

birth.

• No portion of your benefit is based on a disability pension in this Plan.

Your Estimated Monthly Benefit

(a) Monthly Retirement Benefit, Before Reduction $ 421.08

(b) Credited Service 5.80 

(c) Accrual Rate, Before Reduction: (a) ÷ (b) $ 72.60 

(d) PBGC Guarantee Accrual Rate, equal to 100% of (c) up to $11, plus

75% of the portion of (c) between $11 and $44 $ 35.75 

(e) PBGC Guaranteed Benefit: (b) × (d) $ 207.35

(f) 110% of PBGC Guaranteed Benefit: 1.10 × (e) $ 228.09

(g) Maximum Suspendable: (a) – (f) $ 192.99

(h) Age based Protection: 21.67% 

(i) Monthly Retirement Benefit payable during your lifetime, After Reduction:

 (a) – (g) × [1 – (h)] $ 269.90

PBGC Guaranteed Benefits

If the Plan does not have enough money to pay benefits, your monthly benefit would be no larger than the 

amount guaranteed by the PBGC. The amount of your monthly benefit guaranteed by PBGC is estimated 

to be $207.35. 

 

1 A version of this notice that does not include the estimate of the effect on you benefit is being sent to unions that represent Plan participants and 

to all contributing employers.

IBT436-0058
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.01

Sample Ballot (Checklist Item #22) 

Fund Office: 6051 Carey Drive • Valley View, OH 44125

Phone: (216) 328-0436 / Fax: (216) 328-0652 

BALLOT ON THE PROPOSED SUSPENSION OF BENEFITS FOR THE BUILDING 

MATERIAL DRIVERS LOCAL 436 PENSION TRUST FUND.

The Trustees of the Building Material Drivers Local 436 Pension Trust Fund sent a Notice to all 

participants, retirees and beneficiaries on June 30, 2020, setting forth a proposal to suspend 

benefits received by participants and beneficiaries on or after May 1, 2021. “Suspend” means 

that benefits will be reduced for an indefinite period of time.

The notice sent in June 2020 described the proposed reduction in benefits, the effect of the 

reduction on those affected by the proposal and the factors considered by the Trustees in 

designing the proposal. The Trustees have taken this action because they have determined that a 

reduction in benefits, along with partition, is necessary for the Plan to avoid running out of 

money. 

This ballot is being provided to you because you are eligible to vote to approve or reject the 

suspension (reduction) of benefits.

THE PROPOSED SUSPENSION 

An explanation of the proposed suspension and the individualized estimate detailing how the 

suspension will affect your benefit were included in the June 2020 Notice. A new copy of your 

individualized estimate is attached to this Ballot. If you need another copy of the June 2020 

Notice please contact the Fund Office. The proposed suspension is summarized below. 

The benefits of all Plan Participants, except as indicated below, will be reduced to 110% of the 

Pension Benefit Guaranty Corporation (“PBGC”) guarantee, which is the maximum reduction in 

benefits allowable by law. The PBGC’s guarantee is based on a pension for each year of service 

a person earns under his or her pension plan. As a monthly benefit amount, the PBGC guarantees 

a payment equal to 100% of the first $11 of the plan’s monthly benefit rate, plus 75% of the next 

$33 of the monthly benefit rate times the participant’s years of credited service. 

The proposed suspension will remain in effect indefinitely and will not expire by its own terms. 

These reductions, combined with a partition, are projected to keep the Plan from running out of 

money. 

IBT436-0059
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.01

Sample Ballot (Checklist Item #22) 

FACTORS CONSIDERED BY THE TRUSTEES IN DESIGNING THE BENEFIT 

SUSPENSIONS

The Trustees considered a variety of factors including but not limited to the factors listed in 

Internal Revenue Code Section 432(e)(9)(D)(vi) in designing the benefit suspension and making 

them as fair as possible. Under Federal law, the Board of Trustees must apply the following rules 

to the proposed reduction: 

• The total reduction in everybody’s benefits must be estimated to be large enough to keep 

the plan from running out of money but not larger than needed to do that. However, in 

this case the Board of Trustees recognized that the maximum allowable reductions under

the law were not enough to prevent the plan from running out of money except when 

combined with a partition. 

• Your monthly benefit and benefit of your beneficiary cannot be reduced below 110% of 

the amount guaranteed by PBGC. 

• Disability benefits (as defined under the plan) cannot be reduced. 

• The benefits of people who are at least 80 years old on May 31, 2021 and their 

beneficiaries cannot be reduced.

• The benefits of people who are at least 75 years old on May 31, 2021, and their 

beneficiaries are partially protected, and the closer the person is to age 80 the less the 

benefits can be reduced. 

• The reduction of benefits must be spread fairly among the people who have a pension 

benefit under the Plan. 

IMPORTANT POINTS YOU SHOULD CONSIDER

In considering how you will vote, here is some additional information that may be helpful to you 

in making your decision: 

1. The proposed benefit reduction will not reduce future accruals for service earned on or after 

May 1, 2021. 

2. The proposed reduction will remain in effect indefinitely. 

3. The Plan Actuary has determined that if the benefits are not reduced as proposed, the Fund

will run out of money in the year 2023. Conversely, the Plan Actuary has certified that the 

Plan is projected to avoid running out of money if these reduction are approved and 

implemented along with the partition. The Plan Actuary’s projections are, in part, based on 

assumptions about future contribution levels and investment rates of return, and therefore 

these projections are subject to some degree of uncertainty. 

4. If the Fund runs out of money, the Fund will not be able to pay all of the benefits promised 

and benefits paid would be less than the benefits under the proposed suspension. 

IBT436-0060
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.01

Sample Ballot (Checklist Item #22) 

5. The PBGC acts as a guarantor of benefits provided by Plans like this one, but only to a 

certain level. The benefits that would be paid under the Trustees’ proposal are greater than 

the benefits guaranteed by the PBGC. In addition, should the PBGC itself run out of money, 

the PBGC would not be able to pay the guaranteed benefits and whatever it could pay would 

be less than what would otherwise be paid if the plan runs out of money. 

6. The proposed suspension will go into effect unless a majority of all eligible voters vote to 

reject the suspension. Therefore, a failure to vote has the same effect on the outcome of the 

vote as a vote in favor of suspension. Votes must be received by April 2, 2021 in order to be 

eligible for counting. 

SUPPORT, APPROVAL AND OPPOSITION 

1. The Board of Trustees strongly and unanimously supports these proposed benefit 

reductions. The Trustees believe all reasonable measures have been taken to avoid benefit 

reductions, including reductions in active participants’ benefits and future accruals as 

well as increases in Employer contributions to the Plan. The Trustees have determined 

that despite these measures the benefit reductions and partition are required to reasonably 

ensure that the Plan will not run out of money. 

2. The Secretary of the Treasury, in consultation with PBGC and the Secretary of Labor, has 

approved the Trustees’ proposal. 

3. Statement of Opposition [TBD] 

IBT436-0061
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.02

Amount of Reduction in Benefit Payments Attributable to Partition (Checklist Item #24) 

Terminated Future Total PV

Administrative Vested New PBGC GB Discount PBGC 

Year Expenses Retirees Beneficiaries Participants Actives Entrants Payments Factor Obligation

2020 - - - - - - - 0.9896141 -

2021 169,189 1,694,253 342,088 337,891 - - 2,374,232 0.9691647 2,464,994 

2022 224,166 2,462,238 488,211 632,212 - - 3,582,661 0.9491379 3,613,204 

2023 226,487 2,378,792 463,735 821,216 - - 3,663,743 0.9295249 3,616,066 

2024 228,187 2,292,595 439,798 1,030,484 - - 3,762,877 0.9103172 3,633,134 

2025 229,243 2,203,668 416,469 1,198,561 - - 3,818,698 0.8915064 3,608,765 

2026 228,474 2,112,438 393,798 1,383,557 - - 3,889,793 0.8730844 3,595,594 

2027 227,139 2,019,306 371,812 1,465,894 - - 3,857,012 0.8550429 3,492,125 

2028 225,243 1,924,643 350,517 1,528,755 - - 3,803,916 0.8373743 3,373,914 

2029 222,788 1,828,808 329,901 1,548,606 - - 3,707,316 0.8200709 3,222,964 

2030 219,768 1,732,159 309,940 1,637,014 - - 3,679,113 0.8031249 3,131,288 

2031 228,808 1,635,065 290,602 1,658,442 - - 3,584,109 0.7865292 2,998,970 

2032 224,149 1,537,905 271,858 1,665,518 - - 3,475,281 0.7702763 2,849,583 

2033 218,911 1,441,049 253,683 1,709,363 - - 3,404,095 0.7543593 2,733,048 

2034 213,089 1,344,861 236,062 1,764,987 - - 3,345,910 0.7387713 2,629,286 

2035 206,685 1,249,703 218,984 1,726,872 - - 3,195,558 0.7235053 2,461,541 

2036 199,706 1,155,928 202,451 1,754,376 - - 3,112,756 0.7085548 2,347,060 

2037 192,154 1,063,884 186,473 1,703,072 - - 2,953,429 0.6939132 2,182,761 

2038 184,050 973,930 171,073 1,690,478 - - 2,835,481 0.6795742 2,051,996 

2039 175,418 886,454 156,291 1,674,838 - - 2,717,583 0.6655315 1,925,383 

2040 166,306 801,866 142,174 1,626,712 - - 2,570,752 0.6523862 1,785,619 

2041 156,767 720,597 128,778 1,585,043 - - 2,434,419 0.6400964 1,658,608 

2042 146,887 643,078 116,156 1,538,339 - - 2,297,573 0.628038 1,535,214 

2043 136,755 569,709 104,347 1,483,874 - - 2,157,930 0.6162069 1,414,001 

2044 126,488 500,849 93,375 1,431,708 - - 2,025,933 0.6045986 1,301,350 

2045 116,198 436,808 83,251 1,379,175 - - 1,899,234 0.5932089 1,195,572 

2046 106,004 377,823 73,967 1,320,246 - - 1,772,036 0.5820339 1,093,083 

2047 96,015 324,040 65,502 1,252,835 - - 1,642,377 0.5710694 992,742 

2048 86,344 275,525 57,822 1,186,283 - - 1,519,630 0.5603114 899,845 

2049 77,076 232,235 50,886 1,121,445 - - 1,404,566 0.5497561 814,542 

2050 68,303 194,042 44,645 1,050,747 - - 1,289,435 0.5393996 732,364 

2051 60,091 160,732 39,047 979,879 - - 1,179,658 0.5292382 656,123 

2052 52,489 131,999 34,036 908,383 - - 1,074,417 0.5192683 585,167 

2053 45,526 107,491 29,554 837,445 - - 974,490 0.5094861 519,684 

2054 39,216 86,819 25,547 767,609 - - 879,975 0.4998883 459,493 

Present Value of PBGC Financial Assistance 71,575,084

PBGC Guarantee Benefit Payments

IBT436-0062
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

The Exhibit details the information on actuarial assumptions and methods that, pursuant to 

Section 6.03 of Revenue Procedure 2017-43, must be described in an application for approval of 

a proposed benefit suspension. 

Part 1 – Actuarial assumptions and methods used for projections. 

Investment returns 

• Net investment return for deterministic projections:

o The beginning asset date is March 31, 2020. The actual known return of 12.94% is 

used for April 1, 2020 through May 31, 2020. An annual rate of 6.11% is used for the 

remainder of the year.

o 6.11% per year for the Plan Years ending December 31, 2021 thru December 31, 

2029 

o 7.35% per year for the Plan Years ending December 31, 2030 and each year thereafter

• Assumptions used for stochastic projections (if applicable): Not applicable

Mortality assumptions 

• Healthy Lives: RP-2014 adjusted to 2006 Blue Collar Tables with separate rates for nonannuitants and annuitants and separate rates for males and females. Mortality 

improvement: MP-2019 projection scale beginning in 2006. 

• Disabled Lives: RP-2014 adjusted to 2006 Disabled Mortality Tables with separate rates 

for males and females. Morality improvement: MP-2019 projection scale beginning in 

2006. 

Other demographic assumptions

• Exhibit 6.03a contains the complete list of, withdrawal, and retirement decrement rates

Assumptions regarding form and commencement age of benefits

• Form of payment election assumptions for active and terminated vested participants:

o 70% of all participants elect the straight life annuity 

o 30% of all participants elect the 50% joint and survivor annuity 

• Assumptions regarding the probability of benefit commencement by age for participants 

who have terminated with deferred benefits or who are assumed to terminate with 

deferred benefits in the future:

o Exhibit 6.03a contains the retirement age assumptions for current terminated vested 

participants. For participants that terminate in the future, those with less than 15 

years of service are assumed to retire at age 65, those with 15 or more years of service 

are assumed to retire at age 62.

• Assumptions regarding the probability of commencement by age for participants who 

have become disabled or who are assumed to become disabled in the future:

o does not apply 

IBT436-0063
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

Assumptions regarding missing or incomplete data

• Assumptions regarding terminated vested participants beyond normal retirement age 

who, because they have not commenced receiving benefit payments, could be considered 

missing: 

o All terminated vested participants are valued. Those beyond normal retirement age 

are assumed to retire immediately and receive a lump sum for missed payments.

• Assumptions to fill in other missing data:

o Wives of participants not yet in-pay are assumed to be three years younger than 

husbands. 

o 60% of participants not yet in-pay status are assumed to be married.

New entrant profile 

• The following is a description of the composition of the new hire profile, including the 

weight applicable to each assumed age of entry: 

o The 112 Participants who were first reported as Plan participants in the January 1, 

2016, January 1, 2017, January 1, 2018, January 1, 2019, or January 1, 2020 

valuations were included in the development of the new hire profile. 

o Each participant was assigned an equal weight for purposes of assumed age of entry.

o The data was adjusted such that each new entrant’s age at hire, service, and accrued 

benefit as of each respective valuation date were preserved.

o New Entrants are assumed to work 1,750 hours per year. 

Contribution rates

• Each employer’s current contribution rate is assumed to be level throughout the 

projection period. 

Contribution base units 

• The following contribution base units are assumed for years during the projection period: 

• From 2010 to 2019, contribution base units declined by approximately 10% per year. It is 

assumed that contribution base units will continue to decline by approximately 10% per 

year until 2025. After 2025 it is assumed that plan membership will remain level, and that 

each active participant will continue working the same hours they worked in the prior 

year.

Plan Year Beginning 

January 1, Head Count Contribution Base Units (Hours)

2020 116 205,198

2021 104 198,278

2022 94 175,344

2023 85 156,422

2024 76 138,216

2025+ 68 122,360

IBT436-0064
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

Withdrawal Liability Payments

Plan Year Beginning 

January 1,

Current Withdrawn 

Employers Future Withdrawals Total Withdrawal Liability Payments

2020 1,926,567 122,334 2,048,901

2021 1,217,429 242,286 1,459,715

2022 1,202,495 334,499 1,536,994

2023 1,157,846 334,499 1,492,345

2024 1,103,511 334,499 1,438,010

2025 1,103,511 334,499 1,438,010

2026 1,029,858 334,499 1,364,357

2027 1,000,062 334,499 1,334,561

2028 990,420 334,499 1,324,919

2029 981,128 334,499 1,315,627

2030 882,503 334,499 1,217,002

2031 662,182 334,499 996,681

2032 651,072 334,499 985,571

2033 622,046 334,499 956,545

2034 534,969 334,499 869,468

2035 534,969 334,499 869,468

2036 534,969 334,499 869,468

2037 534,969 334,499 869,468

2038 391,067 334,499 725,566

2039 247,165 334,499 581,664

2040 123,582 212,164 335,746

2041 0 92,212 92,212

2042+ 0 0 0

• Current Withdrawn Employers: As of June 2020, there are 15 former employers who are 

currently paying withdrawal liability. Four of these employers will complete their 

withdrawal liability payments by the end of 2020. For the remaining 11 employers, it is

assumed that 90% of the amount owed will be collectible, based upon the Fund’s history 

of withdrawal liability collections.

• Future Withdrawals: As of January 2020, there were 33 employers contributing to the 

Fund. 

o We are aware of two small employers withdrawing during the 2020 plan year due to 

retirement of their sole employee.

o It is assumed that 5 small employers will withdraw during 2021 or 2022. Each 

employer employed several employees in the past, but now employs only one 

employee. 

• It is assumed that the 26 remaining employers will continue doing business and not 

withdraw from the Fund during the projection period. Half of these employers employ 1 

or 2 employees. It is assumed that most of the remaining 13 employers will lose 10% of 

their employees per year for the next 5 years, resulting in a decrease of approximately 

10% per year in contribution base units as described in the prior section. 

IBT436-0065
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

Administrative expenses

In General expenses are assumed to increase 2% per year, with certain adjustments for Actuarial 

Fees, Legal Fees, PBGC Premium, and a cap equal to 20% of expected benefit payments.

• Insolvent Scenarios 

o Actuarial Fees 

 During 2020 it is assumed to be $250,000. This includes work to build the 

suspension and partition applications 

 During 2021 it is assumed to be $170,000. This includes work done during the 

application review process

 During 2022 it is assumed to drop to $90,000

 During 2023 it is assumed to increase to $115,000. This includes work done in 

preparation for the insolvency 

 During 2024 it is assumed to drop to $30,000. 

 Fees are assumed to increase 2% per year thereafter

o Legal Fees 

 Assumed to increase 2% per year. 

 During 2024 it is assumed to decrease 25% 

 Fees are assumed to increase 2% per year thereafter

o All other expenses (except for PBGC Premiums) are assumed to increase 2% per year 

o The assumed expenses (excluding PBGC Premiums) are capped at 20% of the 

expected benefit payments 

o Finally the PBGC Premium is added. The PBGC Flat Rate Premium is assumed to 

increase 2% per year and is applied to the anticipated headcount

• Avoid insolvency scenarios 

o Actuarial Fees 

 During 2020 it is assumed to be $250,000. This includes work to build the 

suspension and partition applications 

 During 2021 it is assumed to be $170,000. This includes work done during the 

application review process

 During 2022 it is assumed to drop to $90,000 

 Fees are assumed to increase 2% per year thereafter

o Legal Fees 

 Assumed to increase 2% per year. 

 During 2022 it is assumed to decrease 25% 

 Fees are assumed to increase 2% per year thereafter

o All other expenses (except for the PBGC Premium) are assumed to increase 2% per 

year

o The above expenses are allocated between the Successor plan and the Ongoing plan 

based on head counts 

o The assumed expenses (excluding PBGC Premiums) are capped at 20% of the 

expected benefit payments from their respective plan

IBT436-0066
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

o Finally the PBGC Premium is added. The PBGC Flat Rate Premium is assumed to 

increase 2% per year and is applied to the anticipated headcount. For the first ten 

years after the suspension/partition the entire PBGC premium is assigned to the 

Ongoing plan 

Projection Methodology 

• No approximation or data grouping techniques were used in projections. 

• No changes were made to the cash flow projections that would normally be provided by 

the actuarial software.

Part 2 – Supporting documentation for selection of certain assumptions.

Investments Returns 

• Exhibit 6.03b contains the components of the target portfolio used in the projections 

(expressed in terms of the asset classes used for setting the Fund’s investment policy). 

Exhibit 6.03c contains the allocation of the components of the target portfolio among the 

asset classes, as listed in Appendix B of Revenue Procedure 2017-43. This information 

was provided by AndCo 

• The current mix of assets is not materially different from the target portfolio

• The mix of assets is not expected to vary over time

• Exhibit 6.03c contains the net of fees short term and long-term investment return 

assumptions associated with the target portfolio. The assumptions are based on

expectations as provided by AndCO. The following information is also provided: 

o The expected geometric and arithmetic expected returns, gross of fees, for each asset 

class

o The standard deviation of returns for each asset class

o The correlations for the returns among the asset classes

o The inflation rate inherent in the net investment return

• The investment-related expense inherent in the net investment return for target portfolio 

was 0.40% of the portfolio. 

Demographic experience 

• Exhibit 6.03e and 6.03f contain recent demographic experience, due to the small nature 

of this plan there isn’t enough credibility to warrant more large expensive experience 

studies 

• Exhibit 6.03d contains the liability gain or loss analyses performed over the last ten years. 

The results by source where available 

• Marital information was available for 167 Participants with hours in 2019, of which 99 

were married (59.3%). Additionally, marital information was available for 131 

Terminated Vested Participants, of which 79 were married (60.3%). 

• Exhibit 6.03e contains the distribution of each optional form of benefit selected at 

retirement for the last five years

IBT436-0067
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

• Exhibit 6.03f contains the retirement rates by age for benefit commencements during the 

last 5 years, separately for active and terminated vested participants. Note that these 

participants cannot retire from the Plan until they cease working in the industry. 

Mortality assumptions 

• The assumed mortality rates used for Healthy participants are those from the RP-2014 

adjusted to 2006 Blue Collar sex-distinct tables

• The assumed mortality rates used for Disabled participants are those from the RP-2014 

adjusted to 2006 Disabled Retiree sex-distinct tables

• Tables issued by the Society of Actuaries (available at https://www.soa.org/experiencestudies/2014/research-2014-rp/).

• Mortality rates were not based on Plan experience study data but were instead taken from 

the SOA tables noted above. A description of the process that was used to construct these 

mortality rates can be found in the RP-2014 Mortality Tables Report. 

• The assumed mortality improvement rates are those published in the SOA MP-2019 

improvement scale. These mortality improvement rates are applied to the mortality rates 

starting with the 2006 year.

• No adjustments have been made to the published mortality tables with improvements. 

New entrant profile

• Information and analysis used in the selection of the new entrant profile provided below: 

o A distribution of ages of all new active entrants for each of last five years is shown 

below. A new entrant for purposes of the table below is someone who was an active 

participant as of the valuation date shown but who was not a plan participant as of the 

prior valuation date. 

Age Range Percentage of New Entrants

1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020

Below 20 0% 0% 0% 0% 0%

20 – 24 5% 14% 4% 5% 0%

25 – 29 9% 0% 0% 23% 14%

30 – 34 5% 7% 8% 9% 14%

35 – 39 11% 0% 8% 14% 14%

40 – 44 16% 0% 4% 14% 0%

45 – 49 11% 43% 24% 14% 14%

50 – 54 14% 21% 16% 5% 14%

55 – 59 14% 14% 24% 9% 29%

60 and Over 16% 0% 12% 9% 0%

o 46 of the 112 new entrants had prior benefit service. Of these 46, their average 

benefit service is 0.84. 55 of the 112 new entrants had 1 year of prior eligibility 

service.

IBT436-0068
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

Contribution base units and employer withdrawals 

• Exhibit 6.03g contains for each of the last 10 years a table of employers that contributed 

5% or more of the annual contributions to the Fund. The Exhibit includes the number of 

contribution base units, the average contribution rate, and the total contribution for each 

employer. 

• The historical experience of the Fund with respect to contribution base units can be found 

in Section 6.04 and the historical contribution rates are documented in Section 5.01. 

• The rationale for the contribution base units (i.e., hours of covered employment) 

assumption is as follows:

o Since 2010 the Fund has experienced a decline in its contribution base units 

averaging 10.58%. Based upon discussions with the Trustees and Fund 

Administrator, it is assumed that contribution base units will continue to decline for 5 

more years before leveling off. 

• The rationale for the contribution rate assumption is as follows.

o It has been determined that future contribution increases are not sustainable. Sections 

5.02(1)(e) and 5.03(1) of the application provide more background on keeping 

employers in the plan at this current rate, and the pension contribution rate as a 

percentage of the total wage rate. 

• Over the last 5 years the Plan has experienced 13 employer withdrawals. All of these 

withdrawals are currently paying or have paid their withdrawal liability. 

Take-up rate with respect to selection of benefit/contribution schedules 

• All Employers elected to maintain their benefit schedule and increase their contribution 

rate under the rehabilitation. See section 5.01 for more detail. 

Projection methodology

• There were no approximation techniques used in the projections. 

• No changes were made to the cash flow projections that would normally be generated by 

the actuarial software. 

IBT436-0069
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03

Information on Actuarial Assumptions and Methods (Checklist Item #25) 

Part-3 Additional disclosures relating to use of different assumptions

• The following differences from the assumptions shown above were used for deterministic 

projections in various illustrations under the revenue procedure: 

o Exhibits 3.01a and 3.01b of the Suspension of Benefits Application use the 

assumptions detailed with Exhibit 3.01a – the certification for the January 1, 2020 

Plan Year.

o Exhibits 3.02, 6.05(1), 6.05(2), 6.05(3), and 6.05(4) of the Suspension of Benefit 

Application, along with Exhibit 7a3, 7a5, 7a7, 7a9, and 7a10 of the Application for a 

Partition Order use the assumptions detailed in this Exhibit 6.03. The following 

assumptions differ from the January 1, 2020 certification. They were revised to reflect 

the most recent data available and the details outlined in the American Academy of 

Actuaries MPRA Discussion Notes: 

 Form of Payment Assumptions 

 New Entrant Profile

 Contribution Base Units 

 Investment Return

 Marriage assumption

 Retirement age assumption

 Mortality

 Employer withdrawals from the fund 

 Withdrawal liability payments

o Additionally, Exhibit 7a4 of the application for a Partition Order differs from Exhibit 

7a8 of the application for a Partition Order as follows: 

 In Exhibit 7a8, benefits are reduced to the PBGC Guarantee as of 5/1/2021 

and reflect accruals through this date. 

 In Exhibit 7a4, benefits are reduced to the PBGC Guarantee as of 1/1/2024 

and reflect accruals through this date. Benefit accruals cease thereafter.

• Stochastic projections were not used in this application. 

IBT436-0070
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03a 

Complete Decrement Tables (Checklist Item #25) 

Retirement Retirement

Retirement (Term Vested (Term Vested

Age Termination (Actives) Pct frozen >=90%) Pct frozen <90%)

15 0.1804 - - -

16 0.1804 - - -

17 0.1804 - - -

18 0.1804 - - -

19 0.1804 - - -

20 0.1804 - - -

21 0.17898 - - -

22 0.17756 - - -

23 0.17614 - - -

24 0.17472 - - -

25 0.1733 - - -

26 0.17126 - - -

27 0.16922 - - -

28 0.16718 - - -

29 0.16514 - - -

30 0.1631 - - -

31 0.1605 - - -

32 0.1579 - - -

33 0.1553 - - -

34 0.1527 - - -

35 0.1501 - - -

36 0.14668 - - -

37 0.14326 - - -

38 0.13984 - - -

39 0.13642 - - -

40 0.133 - - -

41 0.12884 - - -

42 0.12468 - - -

43 0.12052 - - -

44 0.11636 - - -

45 0.1122 - - -

46 0.10698 - - -

47 0.10176 - - -

48 0.09654 - - -

49 0.09132 - - -

50 0.0861 - - -

51 0.0801 - - -

52 0.0741 - - -

53 0.0681 - - -

54 0.0621 - - -

55 0.0561 - - -

56 0.05243 - - -

57 0.04876 - - -

58 0.04509 - - -

59 0.04142 - - -

60 0.03775 - - -

61 0.0333 - - -

62 0.02885 0.2 0.3 0.5

63 0.0244 0.25 0.1 0.3

64 0.01995 0. 5 0.2 0.2

65 - 0.3 1 1

66 - 1 1 1

IBT436-0071
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03b 

Components of Target Portfolio (Checklist Item #25) 

Asset Class Target Allocation

Domestic Core Equity 30%

Domestic Small/Mid Equity 20%

International Equity 10%

Fixed Income 30%

Real Estate 5%

Total Alternatives 5%

Total Fund 100%

IBT436-0072
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03c

Investment Return Assumption (Checklist Item #25)

Target Standard Correlations Among Asset Classes

Asset Class Allocation Arith Geo Arith Geo Deviation 1 2 3 4 5

1 US Equity - Large Cap 31.5% 8.14% 10.00% 14.34% 1 0.86 0.83 0.15 0.48

2 US Equity - Small/Mid Cap 20.0% 8.36% 10.00% 17.63% 0.86 1 0.74 0.07 0.49

3 Non-US Equity - Developed 11.0% 10.46% 11.00% 18.23% 0.83 0.74 1 0.17 0.46

4 US Corporate Bonds - Core 32.5% 3.87% 5.00% 9.89% 0.15 0.07 0.17 1 0.16

5 Real Estate (REITs) 5.0% 9.07% 7.00% 15.42% 0.48 0.49 0.46 0.16 1

Inflation 2.01% 2.50% 1.40%

Total Portfolio 100% 7.10% 6.51% 8.34% 7.75% 10.82%

Investment Management Fees 0.40% 0.40%

Net of Fees Return 6.11% 7.35%

Expected Returns

10 year 20 year

IBT436-0073
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03d 

Liability Gain / Loss Analysis (Checklist Item #25) 

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

BOY Accrued Liability $ 96,792,435 $ 94,779,591 $ 94,383,378 $ 95,536,126 $ 97,270,978 $ 106,831,355 $ 107,119,441 $ 116,237,429 $ 116,027,947 $ 111,462,761

Actual EOY Accrued Liability 94,779,591 94,383,378 95,536,126 97,270,978 106,831,355 107,119,441 116,237,429 116,027,947 111,462,761 108,513,350

Liability Increase/(Decrease) $ (2,012,844) $ (396,213) $ 1,152,748 $ 1,734,852 $ 9,560,377 $ 288,086 $ 9,117,988 $ (209,482) $ (4,565,186) $ (2,949,411)

Change due to:

Plan Amendment $ (3,256,530) $ (260,805) 0 $ $ 1,815,792 0 $ $ (1,022,124) 0 $ $ 0 $ (1,181,423) 0 $ 

Assumption Change 0 0 0 9,398,219 0 515,274 11,884,102 0 91,944 3,374,789

Accrual of Benefits 672,088 605,072 624,961 494,920 475,168 526,166 511,698 433,214 405,213 367,300

Increase for Interest 7,486,300 7,581,283 7,277,213 7,355,095 7,483,329 7,215,453 7,236,469 7,871,583 7,847,785 7,525,568

Benefit Payments (7,923,988) (8,413,913) (8,244,971) (8,345,252) (8,574,009) (8,706,508) (8,652,368) (8,584,109) (8,792,589) (8,692,791)

Actuarial (Gain)/Loss 1,009,286 (168,655) 1,756,346 2,230,089 (1,038,122) 737,701 (839,789) 69,830 (4,117,539) (4,342,854)

Total $ (2,012,844) $ (396,213) $ 1,152,744 $ 1,734,852 $ 9,560,377 $ 288,086 $ 9,117,988 $ (209,482) $ (4,565,186) $ (2,949,411)

1 06% -0 18% 1 84% 2 29% -0 97% 0 69% -0 72% 0 06% -3 69% -4 00%

Actuarial Liability Gain/Loss Analysis

(Gain)/Loss as a percent of 

EOY Accrued Liability

IBT436-0074
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03e 

Distribution of Optional Forms (Checklist Item #25) 

Percentage Election

Form Total Electing Assumption

Life Only 114 65% 70%

5-Year Certain and Life 8 5%

50% Joint and Survivor 31 18% 30%

75% Joint and Survivor 22 13%

Total 175 100%

IBT436-0075
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03f 

Retirement Rates by Age (Checklist Item #25) 

Term Vesteds Retirement Rates Percent Frozen >=90%

Retirement Terminated Terminated

Eligible Vesteds Vesteds

Terminated Count Percentage

Age Vesteds Retiring Retiring Assumption

62 108 32 30% 30%

63 27 3 11% 10%

64 21 4 19% 20%

65 13 3 23% 100%

66 7 1 14% 100%

67 4 0 0% 100%

68 5 1 20% 100%

69 2 0 0% 100%

70+ 12 2 17% 100%

Term Vesteds Retirement Rates Percent Frozen <90%

Retirement Terminated Terminated

Eligible Vesteds Vesteds

Terminated Count Percentage

Age Vesteds Retiring Retiring Assumption

62 80 43 54% 50%

63 16 5 31% 30%

64 10 2 20% 20%

65 32 10 31% 100%

66 9 5 56% 100%

67 4 0 0% 100%

68 4 1 25% 100%

69 3 0 0% 100%

70+ 13 1 8% 100%

IBT436-0076
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03f 

Retirement Rates by Age (Checklist Item #25) 

Actives Retirement Rates

Retirement Actives Actives

Eligible Count Percentage

Age Actives Retiring Retiring Assumption

62 60 14 23% 20.0%

63 19 5 26% 25.0%

64 15 7 47% 50.0%

65 21 6 29% 30.0%

66 8 2 25% 100.0%

67 5 0 0% 100.0%

68 6 2 33% 100.0%

69 3 1 33% 100.0%

70+ 5 5 100% 100.0%

IBT436-0077
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03g 

Employers that Contributed 5% or More (Checklist Item #25) 

Number Average Total Number Average Total

Employer Name of CBUs Contribution Rate Contributions Employer Name of CBUs Contribution Rate Contributions

2009 2015

Granger Trucking 58,865 4.55 267,838 SB Morabito Trucking Co Inc 28,505 9.15 260,820 

Ohio Bulk 42,853 4.80 205,695 Industrial First Inc 25,586 9.15 234,115 

SB Morabito Trucking 31,542 5.55 175,058 Independence Excavating Inc 22,429 10.05 225,411 

Rexel Dist Ctr Solon 27,942 7.15 199,782 

2010 Local 436 Union 16,652 10.05 167,353 

Granger Trucking 50,798 4.55 231,130 

SB Morabito Trucking 39,666 5.55 220,145 2016

Ohio Bulk 43,834 4.80 210,402 Industrial First Inc 26,615 10.05 267,476 

Carr Brothers 30,732 5.55 170,561 SB Morabito Trucking Co Inc 23,006 10.05 231,206 

Rexel Distribution, Solon 27,139 7.85 213,043 

2011 Independence Excavating Inc 17,612 10.05 176,996 

Carr Brothers 41,126 5.55 228,251 IBT Local Union 436 17,071 10.05 171,564 

SB Morabito Trucking 38,057 5.55 211,215 BTB Trucking 29,082 5.34 155,296 

Granger Trucking Inc 28,525 6.77 193,115 

2017

2012 SB Morabito Trucking Co Inc 31,591 10.05 317,487 

Granger Trucking Inc 39,413 6.77 266,824 Industrial First Inc 28,864 10.05 290,079 

SB Morabito Trucking 34,099 6.45 219,939 Rexel USA Inc 27,930 7.85 219,247 

Carr Brothers 31,006 6.45 199,986 BTB Trucking 31,107 5.92 184,153 

Tech Ready Mix Inc 37,052 5.13 190,077 IBT Local Union 436 16,984 10.05 170,689 

Independence Excavating Inc 15,408 10.05 154,848 

2013

SB Morabito Trucking 33,767 7.35 248,184 2018

Tech Ready Mix Inc 39,837 5.13 204,364 Industrial First Inc 33,158 10.05 333,234 

Industrial First Inc 23,475 7.35 172,541 SB Morabito Trucking Co Inc 30,135 10.05 302,857 

Rexel Dist Ctr 29,049 5.75 167,034 Rexel USA Inc 31,073 7.85 243,924 

BTB Trucking 28,467 6.50 185,038 

2014 IBT Local Union 436 16,716 10.05 167,996 

SB Morabito Trucking Inc 33,665 7.35 247,438 

Independence Excavating 20,859 10.05 209,633 

Industrial First Inc 25,224 8.25 208,095 

Rexel Dist Ctr 28,591 6.45 184,411 

Local 436 Union 16,649 10.05 167,324 

IBT436-0078
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.03h

Withdrawn Employers Payments (Checklist Item #25) 

 Withdrawn Employers Withdrawal Liability Payments

 All Crane $ 25,000.00 per quarter

 Bruder, Inc. $ 32,250.87 per quarter

 C.J. Zak $ 6,643.89 per quarter

 Chas. Svec $ 15,000.00 per month until July 2020

 IBT Joint Council 41 $ 5,259.50 per quarter

 J&T Trucking $ 300.00 per month until December 2020

 Kenmore Construction $ 5,225.25 per quarter

 Marous Brothers $ 5,091.58 per quarter

 Ohio Bulk Transfer $ 79,945.54 per quarter

 RW Sidley $ 23,510.44 per quarter

 Rexel Holdings $ 63,565.33 per quarter

 Stein, Inc. $ 633,437.52 fully paid 5/27/2020

 Tech Ready Mix $ 59,423.61 per quarter

 Tri-Mor Corporation $ 32,258.69 per quarter

IBT436-0079
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.05(1)

Sensitivity to Return on Market Value: Assumed Rate of Return by 1 Percentage Point (Checklist Item #27)

WL WL Terminated Future Total

Payments Payments Administrative Vested New Benefit Investment Investment Available Solvency Accrued Funded

Year BoY Assets Contributions Prior Future Expenses Retirees Beneficiaries Participants Actives Entrants Payments Rate Return EoY Assets Resources Ratio Liability Percentage

2020 18,600,185 1,345,430 1,444,925 91,751 626,147 5,587,435 687,168 778,466 101,318 - 7,154,387 15.92% 2,585,586 16,287,343 23,441,729 3.28 108,513,350 17%

2021 16,287,343 1,724,361 1,217,429 242,286 595,987 4,509,514 514,739 326,666 188,690 - 5,539,610 5.11% 757,811 14,093,633 19,633,243 3.54 108,976,726 15%

2022 14,093,633 1,541,800 1,202,495 334,499 460,700 3,028,396 318,521 62,944 201,898 - 3,611,759 5.11% 695,113 13,795,081 17,406,840 4.82 33,933,490 42%

2023 13,795,081 1,385,925 1,157,846 334,499 470,756 2,900,551 302,032 81,520 267,138 - 3,551,241 5.11% 676,071 13,327,425 16,878,666 4.75 32,789,879 42%

2024 13,327,425 1,241,238 1,103,511 334,499 481,707 2,770,050 285,569 102,248 320,703 - 3,478,569 5.11% 648,709 12,695,105 16,173,675 4.65 31,607,108 42%

2025 12,695,105 1,115,647 1,103,511 334,499 493,582 2,638,222 269,457 118,998 362,511 499 3,389,685 5.11% 615,172 11,980,666 15,370,352 4.53 30,397,178 42%

2026 11,980,666 1,115,647 1,029,858 334,499 507,797 2,505,049 253,687 137,202 403,557 1,767 3,301,263 5.11% 578,678 11,230,288 14,531,551 4.40 29,176,912 41%

2027 11,230,288 1,115,647 1,000,062 334,499 522,849 2,371,099 238,319 145,407 445,377 2,540 3,202,743 5.11% 541,688 10,496,592 13,699,335 4.28 27,962,691 40%

2028 10,496,592 1,115,647 990,420 334,499 538,741 2,236,988 223,412 151,268 501,464 3,481 3,116,613 5.11% 505,725 9,787,529 12,904,142 4.14 26,765,386 39%

2029 9,787,529 1,115,647 981,128 334,499 555,475 2,103,359 209,014 153,163 539,088 4,808 3,009,432 5.11% 471,539 9,125,435 12,134,867 4.03 25,573,363 38%

2030 9,125,435 1,115,647 882,503 334,499 573,064 1,970,902 195,162 161,960 584,353 7,811 2,920,188 6.35% 543,183 8,508,015 11,428,203 3.91 24,408,767 37%

2031 8,508,015 1,115,647 662,182 334,499 578,887 1,840,356 181,878 164,039 614,771 11,817 2,812,861 6.35% 500,263 7,728,858 10,541,719 3.75 23,254,964 37%

2032 7,728,858 1,115,647 651,072 334,499 574,520 1,712,475 169,169 164,606 647,805 16,829 2,710,885 6.35% 453,763 6,998,434 9,709,319 3.58 22,131,415 35%

2033 6,998,434 1,115,647 622,046 334,499 553,289 1,587,958 157,037 168,862 666,376 22,348 2,602,580 6.35% 410,523 6,325,281 8,927,861 3.43 21,034,702 33%

2034 6,325,281 1,115,647 534,969 334,499 530,674 1,467,404 145,483 174,415 671,491 28,493 2,487,286 6.35% 369,367 5,661,802 8,149,089 3.28 19,973,251 32%

2035 5,661,802 1,115,647 534,969 334,499 508,448 1,351,292 134,500 170,559 681,090 36,420 2,373,861 6.35% 331,477 5,096,086 7,469,947 3.15 18,956,759 30%

2036 5,096,086 1,115,647 534,969 334,499 487,215 1,239,932 124,076 173,290 681,935 46,110 2,265,344 6.35% 299,610 4,628,252 6,893,596 3.04 17,986,440 28%

2037 4,628,252 1,115,647 534,969 334,499 464,274 1,133,518 114,194 168,123 675,290 57,109 2,148,234 6.35% 274,281 4,275,141 6,423,374 2.99 17,060,450 27%

2038 4,275,141 1,115,647 391,067 334,499 442,249 1,032,172 104,836 166,843 662,138 69,676 2,035,664 6.35% 251,567 3,890,007 5,925,671 2.91 16,190,781 26%

2039 3,890,007 1,115,647 247,165 334,499 425,138 935,940 95,983 165,284 665,796 84,624 1,947,626 6.35% 225,900 3,440,455 5,388,080 2.77 15,376,677 25%

2040 3,440,455 1,115,647 123,582 212,164 405,506 844,836 87,621 160,468 652,933 101,113 1,846,970 6.35% 193,426 2,832,797 4,679,768 2.53 14,596,654 24%

2041 2,832,797 1,115,647 - 92,212 388,445 758,884 79,737 156,295 646,438 117,810 1,759,165 6.35% 150,505 2,043,552 3,802,716 2.16 13,866,149 20%

2042 2,043,552 1,115,647 - - 371,743 678,115 72,317 151,647 635,862 135,242 1,673,182 6.35% 100,715 1,214,988 2,888,170 1.73 13,175,334 16%

2043 1,214,988 1,115,647 - - 355,926 602,548 65,346 146,199 623,858 153,707 1,591,659 6.35% 51,144 434,194 2,025,853 1.27 12,525,104 10%

2044 434,194 1,115,647 - - 339,615 532,200 58,810 141,005 602,106 173,615 1,507,735 6.35% 4,697 (292,812) 1,214,923 0.81 11,913,685 4%

2045 (292,812) 1,115,647 - - 325,445 467,079 52,694 135,786 583,390 195,652 1,434,602 6.35% (38,738) (975,950) 458,652 0.32 11,346,279 -3%

Benefit Payments

IBT436-0080
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.05(2)

Sensitivity to Return on Market Value: Assumed Rate of Return by 2 Percentage Points (Checklist Item #27)

WL WL Terminated Future Total

Payments Payments Administrative Vested New Benefit Investment Investment Available Solvency Accrued Funded

Year BoY Assets Contributions Prior Future Expenses Retirees Beneficiaries Participants Actives Entrants Payments Rate Return EoY Assets Resources Ratio Liability Percentage

2020 18,600,185 1,345,430 1,444,925 91,751 626,147 5,587,435 687,168 778,466 101,318 - 7,154,387 14.92% 2,422,382 16,124,138 23,278,525 3.25 108,513,350 17%

2021 16,124,138 1,724,361 1,217,429 242,286 595,987 4,509,514 514,739 326,666 188,690 - 5,539,610 4.11% 602,659 13,775,277 19,314,886 3.49 108,976,726 15%

2022 13,775,277 1,541,800 1,202,495 334,499 460,700 3,028,396 318,521 62,944 201,898 - 3,611,759 4.11% 545,950 13,327,561 16,939,320 4.69 33,933,490 41%

2023 13,327,561 1,385,925 1,157,846 334,499 470,756 2,900,551 302,032 81,520 267,138 - 3,551,241 4.11% 524,496 12,708,331 16,259,572 4.58 32,789,879 41%

2024 12,708,331 1,241,238 1,103,511 334,499 481,707 2,770,050 285,569 102,248 320,703 - 3,478,569 4.11% 496,252 11,923,554 15,402,124 4.43 31,607,108 40%

2025 11,923,554 1,115,647 1,103,511 334,499 493,582 2,638,222 269,457 118,998 362,511 499 3,389,685 4.11% 463,010 11,056,953 14,446,639 4.26 30,397,178 39%

2026 11,056,953 1,115,647 1,029,858 334,499 507,797 2,505,049 253,687 137,202 403,557 1,767 3,301,263 4.11% 427,404 10,155,301 13,456,564 4.08 29,176,912 38%

2027 10,155,301 1,115,647 1,000,062 334,499 522,849 2,371,099 238,319 145,407 445,377 2,540 3,202,743 4.11% 391,438 9,271,355 12,474,098 3.89 27,962,691 36%

2028 9,271,355 1,115,647 990,420 334,499 538,741 2,236,988 223,412 151,268 501,464 3,481 3,116,613 4.11% 356,340 8,412,908 11,529,520 3.70 26,765,386 35%

2029 8,412,908 1,115,647 981,128 334,499 555,475 2,103,359 209,014 153,163 539,088 4,808 3,009,432 4.11% 322,709 7,601,983 10,611,416 3.53 25,573,363 33%

2030 7,601,983 1,115,647 882,503 334,499 573,064 1,970,902 195,162 161,960 584,353 7,811 2,920,188 5.35% 376,064 6,817,445 9,737,633 3.33 24,408,767 31%

2031 6,817,445 1,115,647 662,182 334,499 578,887 1,840,356 181,878 164,039 614,771 11,817 2,812,861 5.35% 330,955 5,868,980 8,681,840 3.09 23,254,964 29%

2032 5,868,980 1,115,647 651,072 334,499 574,520 1,712,475 169,169 164,606 647,805 16,829 2,710,885 5.35% 282,726 4,967,519 7,678,404 2.83 22,131,415 27%

2033 4,967,519 1,115,647 622,046 334,499 553,289 1,587,958 157,037 168,862 666,376 22,348 2,602,580 5.35% 237,152 4,120,994 6,723,574 2.58 21,034,702 24%

2034 4,120,994 1,115,647 534,969 334,499 530,674 1,467,404 145,483 174,415 671,491 28,493 2,487,286 5.35% 193,205 3,281,352 5,768,639 2.32 19,973,251 21%

2035 3,281,352 1,115,647 534,969 334,499 508,448 1,351,292 134,500 170,559 681,090 36,420 2,373,861 5.35% 151,865 2,536,024 4,909,885 2.07 18,956,759 17%

2036 2,536,024 1,115,647 534,969 334,499 487,215 1,239,932 124,076 173,290 681,935 46,110 2,265,344 5.35% 115,416 1,883,996 4,149,340 1.83 17,986,440 14%

2037 1,883,996 1,115,647 534,969 334,499 464,274 1,133,518 114,194 168,123 675,290 57,109 2,148,234 5.35% 84,230 1,340,833 3,489,067 1.62 17,060,450 11%

2038 1,340,833 1,115,647 391,067 334,499 442,249 1,032,172 104,836 166,843 662,138 69,676 2,035,664 5.35% 54,925 759,058 2,794,722 1.37 16,190,781 8%

2039 759,058 1,115,647 247,165 334,499 425,138 935,940 95,983 165,284 665,796 84,624 1,947,626 5.35% 22,777 106,382 2,054,007 1.05 15,376,677 5%

2040 106,382 1,115,647 123,582 212,164 405,506 844,836 87,621 160,468 652,933 101,113 1,846,970 5.35% (15,458) (710,160) 1,136,810 0.62 14,596,654 1%

2041 (710,160) 1,115,647 - 92,212 388,445 758,884 79,737 156,295 646,438 117,810 1,759,165 5.35% (62,804) (1,712,715) 46,450 0.03 13,866,149 -5%

Benefit Payments

IBT436-0081
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.05(3)

Sensitivity to Future CBUs: Assume plan experience (Checklist Item #27)

WL WL Terminated Future Total

Payments Payments Administrative Vested New Benefit Investment Investment Available Solvency Accrued Funded

Year BoY Assets Contributions Prior Future Expenses Retirees Beneficiaries Participants Actives Entrants Payments Rate Return EoY Assets Resources Ratio Liability Percentage

2020 18,600,185 1,345,430 1,444,925 91,751 626,147 5,587,435 687,168 778,466 101,318 - 7,154,387 16.92% 2,748,888 16,450,645 23,605,032 3.30 108,513,350 17%

2021 16,450,645 1,197,433 1,217,429 242,286 595,987 4,509,514 514,739 326,666 188,690 - 5,539,610 6.11% 900,443 13,872,640 19,412,249 3.50 108,976,726 15%

2022 13,872,640 1,065,715 1,202,495 334,499 460,700 3,028,396 318,521 62,944 201,898 - 3,611,759 6.11% 803,383 13,206,273 16,818,032 4.66 33,933,490 41%

2023 13,206,273 948,487 1,157,846 334,499 470,756 2,900,551 302,032 81,520 267,138 - 3,551,241 6.11% 759,315 12,384,423 15,935,664 4.49 32,789,879 40%

2024 12,384,423 844,153 1,103,511 334,499 481,707 2,770,050 285,569 102,248 320,703 - 3,478,569 6.11% 706,182 11,412,491 14,891,061 4.28 31,607,108 39%

2025 11,412,491 751,296 1,103,511 334,499 493,582 2,638,222 269,457 118,998 362,511 499 3,389,685 6.11% 646,320 10,364,850 13,754,535 4.06 30,397,178 38%

2026 10,364,850 668,654 1,029,858 334,499 507,797 2,505,049 253,687 137,202 403,557 1,767 3,301,263 6.11% 579,838 9,168,639 12,469,902 3.78 29,176,912 36%

2027 9,168,639 595,102 1,000,062 334,499 522,849 2,371,099 238,319 145,407 445,377 2,540 3,202,743 6.11% 506,152 7,878,862 11,081,605 3.46 27,962,691 33%

2028 7,878,862 529,641 990,420 334,499 538,741 2,236,988 223,412 151,268 501,464 3,481 3,116,613 6.11% 427,200 6,505,267 9,621,880 3.09 26,765,386 29%

2029 6,505,267 471,380 981,128 334,499 555,475 2,103,359 209,014 153,163 539,088 4,808 3,009,432 6.11% 343,962 5,071,329 8,080,762 2.69 25,573,363 25%

2030 5,071,329 419,528 882,503 334,499 573,064 1,970,902 195,162 161,960 584,353 7,811 2,920,188 7.35% 305,718 3,520,325 6,440,514 2.21 24,408,767 21%

2031 3,520,325 373,380 662,182 334,499 578,887 1,840,356 181,878 164,039 614,771 11,817 2,812,861 7.35% 185,764 1,684,403 4,497,264 1.60 23,254,964 15%

2032 1,684,403 332,308 651,072 334,499 574,520 1,712,475 169,169 164,606 647,805 16,829 2,710,885 7.35% 52,779 (230,343) 2,480,541 0.92 22,131,415 8%

2033 (230,343) 295,754 622,046 334,499 553,289 1,587,958 157,037 168,862 666,376 22,348 2,602,580 7.35% (85,646) (2,219,559) 383,021 0.15 21,034,702 -1%

Benefit Payments

IBT436-0082
Application for Approval of Benefit Suspension for

Building Material Drivers Local 436 Pension Trust Fund

EIN/PN: 34-6665225 / 001

Exhibit 6.05(4)

Sensitivity to Future CBUs: Assume plan experience reduced by one percentage point (Checklist Item #27)

WL WL Terminated Future Total

Payments Payments Administrative Vested New Benefit Investment Investment Available Solvency Accrued Funded

Year BoY Assets Contributions Prior Future Expenses Retirees Beneficiaries Participants Actives Entrants Payments Rate Return EoY Assets Resources Ratio Liability Percentage

2020 18,600,185 1,345,430 1,444,925 91,751 626,147 5,587,435 687,168 778,466 101,318 - 7,154,387 16.92% 2,748,888 16,450,645 23,605,032 3.30 108,513,350 17%

2021 16,450,645 1,183,979 1,217,429 242,286 595,987 4,509,514 514,739 326,666 188,690 - 5,539,610 6.11% 900,038 13,858,780 19,398,390 3.50 108,976,726 15%

2022 13,858,780 1,041,901 1,202,495 334,499 460,700 3,028,396 318,521 62,944 201,898 - 3,611,759 6.11% 801,820 13,167,036 16,778,795 4.65 33,933,490 41%

2023 13,167,036 916,873 1,157,846 334,499 470,756 2,900,551 302,032 81,520 267,138 - 3,551,241 6.11% 755,966 12,310,224 15,861,465 4.47 32,789,879 40%

2024 12,310,224 806,848 1,103,511 334,499 481,707 2,770,050 285,569 102,248 320,703 - 3,478,569 6.11% 700,526 11,295,331 14,773,900 4.25 31,607,108 39%

2025 11,295,331 710,026 1,103,511 334,499 493,582 2,638,222 269,457 118,998 362,511 499 3,389,685 6.11% 637,919 10,198,019 13,587,704 4.01 30,397,178 37%

2026 10,198,019 624,823 1,029,858 334,499 507,797 2,505,049 253,687 137,202 403,557 1,767 3,301,263 6.11% 568,326 8,946,465 12,247,728 3.71 29,176,912 35%

2027 8,946,465 549,845 1,000,062 334,499 522,849 2,371,099 238,319 145,407 445,377 2,540 3,202,743 6.11% 491,215 7,596,494 10,799,237 3.37 27,962,691 32%

2028 7,596,494 483,863 990,420 334,499 538,741 2,236,988 223,412 151,268 501,464 3,481 3,116,613 6.11% 408,569 6,158,492 9,275,104 2.98 26,765,386 28%

2029 6,158,492 425,800 981,128 334,499 555,475 2,103,359 209,014 153,163 539,088 4,808 3,009,432 6.11% 321,402 4,656,413 7,665,846 2.55 25,573,363 24%

2030 4,656,413 374,704 882,503 334,499 573,064 1,970,902 195,162 161,960 584,353 7,811 2,920,188 7.35% 273,603 3,028,470 5,948,659 2.04 24,408,767 19%

2031 3,028,470 329,739 662,182 334,499 578,887 1,840,356 181,878 164,039 614,771 11,817 2,812,861 7.35% 148,037 1,111,180 3,924,041 1.40 23,254,964 13%

2032 1,111,180 290,170 651,072 334,499 574,520 1,712,475 169,169 164,606 647,805 16,829 2,710,885 7.35% 9,126 (889,357) 1,821,528 0.67 22,131,415 5%

2033 (889,357) 255,350 622,046 334,499 553,289 1,587,958 157,037 168,862 666,376 22,348 2,602,580 7.35% (135,542) (2,968,873) (366,293) (0.14) 21,034,702 -4%

Benefit Payments

IBT436-0083