I.B.E.W. Local Union No. 237 Pension Plan 

Application for Approval of Suspension of Benefits 

Under the Multiemployer Pension Reform Act of 2014 

September 28, 2018 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

EIN/PN - 16-6094914/001 

Table of Contents 

Background and Purpose................................................................................................................................................................ 2 

Application Procedures................................................................................................................................................................... 3 

2.01 Plan Sponsor Submission ................................................................................................................................................... 3 

2.02 Terms of Proposed Benefit Suspension .............................................................................................................................. 4 

2.03 Penalties of perjury statement........................................................................................................................................... 5 

2.04 Public disclosure statement ............................................................................................................................................... 6 

2.05 Submission of Application.................................................................................................................................................. 7 

2.06 Signature ........................................................................................................................................................................... 7 

2.07 Duty to Correct .................................................................................................................................................................. 7 

2.08 Resubmission Review......................................................................................................................................................... 7 

Demonstration the Plan is Eligible for Suspension.......................................................................................................................... 8 

3.01 Plan actuary’s certification of critical and declining status................................................................................................ 8 

3.02 Plan Actuary’s Certification that the Plan is projected to avoid Insolvency........................................................................ 8 

3.03 Plan Sponsor’s Determination of Projected Insolvency ...................................................................................................... 8 

Demonstration that the Plan’s Proposed Suspension Satisfies the Statutory Requirements ....................................................... 14 

4.01 Demonstration that limitations on individual suspensions are satisfied .......................................................................... 14 

4.02 Demonstration that the proposed suspension is reasonably estimated to enable the plan to avoid insolvency.............. 15 

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

avoid insolvency. ...................................................................................................................................................................... 15 

4.04 Demonstration that the proposed benefit suspension is distributed equitably. ............................................................... 16 

4.05 Notice .............................................................................................................................................................................. 16 

Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid Insolvency ........................................................ 18 

5.01 Measures taken to avoid insolvency ................................................................................................................................ 18 

5.02 Plan factors...................................................................................................................................................................... 18 

5.03 How plan factors were taken into account ...................................................................................................................... 18 

5.04 Other factors considered ................................................................................................................................................. 18 

Other Required Information......................................................................................................................................................... 19 

6.01 Ballot ............................................................................................................................................................................... 19 

6.02 Partition........................................................................................................................................................................... 19 

6.03 Actuarial assumptions used for projections ..................................................................................................................... 19 

6.04 Ten-year experience for certain critical assumptions....................................................................................................... 19 

6.05 Demonstration of sensitivity of projections ..................................................................................................................... 20 

6.06 Projection of funded percentage ..................................................................................................................................... 20 

6.07 Plan sponsor certifications relating to plan amendments................................................................................................ 21 

6.08 Whether a plan is described in section 432(e)(9)(D)(vii) .................................................................................................. 22 

6.09 Narrative statement ........................................................................................................................................................ 22 

Identification and Background Information on the Plan............................................................................................................... 23 

7.01 Plan sponsor .................................................................................................................................................................... 23 

7.02 Plan identification............................................................................................................................................................ 23 

7.03 Retiree representative ..................................................................................................................................................... 23 

7.04 Plan’s enrolled actuary .................................................................................................................................................... 23 

7.05 Power of Attorney............................................................................................................................................................ 24 

7.06 Plan documents ............................................................................................................................................................... 24 

7.07 Collective bargaining and side agreements ..................................................................................................................... 24 

7.08 Annual Return.................................................................................................................................................................. 24 

7.09 Rehabilitation Plan .......................................................................................................................................................... 24 

7.10 Valuation Reports ............................................................................................................................................................ 24 

7.11 Completed Checklist ........................................................................................................................................................ 24 

Signature Page.............................................................................................................................................................................. 25 
 

 

 

 

 

 

 

 

 

 

 

 

 

Background and Purpose 

Pursuant to Internal Revenue Service Revenue Procedure 2017-43 and the Department of the Treasury’s

Proposed and Temporary regulations issued under Section 432(e)(9) of the Internal Revenue Code of 

1986 (the “Code”) and published in the Federal Register on April 28, 2016 (collectively, the 

“Regulations”), the Board of Trustees of the I.B.E.W. Local Union No. 237 Pension Plan (the “Plan”)

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

suspension of benefits. 

Section 432(e)(9)(G) of the Code provides that the Secretary of the Treasury shall approve an application 

for the approval of suspension of benefits upon finding that the plan is eligible for the benefits 

suspension and has satisfied the criteria set forth in subparagraphs (C), (D), (E), and (F) of Section 

432(e)(9) of the Code. As explained herein, the Plan is eligible to suspend benefits and has satisfied each 

of the enumerated criteria under the Regulations. Therefore, the Plan respectfully requests that the 

Secretary approve this application to suspend benefits. 

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A lication Procedures 

2.01 Plan Sponsor Submission 

The Board of Trustees of the Plan submits this application for approval of a proposed benefit suspension 

under Section 432(e)(9). This application is signed and dated by both a Union and an Employer Trustee, 

who are both authorized to sign and are current members of the Board of Trustees. 

Name: Name 

Chairman 

Date: Date: raJ?jle 

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Application Procedures (continued) 

2.02 Terms of Proposed Benefit Suspension 

(1) Effective Date 

October 1, 2019 

(2) Expiration Date 

The terms of the proposed benefit suspension will remain in effect indefinitely and will not expire 

by its own terms. 

(3) The proposed suspension does not provide for different treatment of participants and 

beneficiaries (other than as a result of application of the individual limitations of § 432(e)(9)(D)(i), 

(ii), and (iii) (the “individual limitations”)). Benefits will be determined as if the following formula 

has been in effect for all retirements, subject to the individual limitations as required: 

For Plan Years from 1976 through 2008, Pension Service credits will be limited to a maximum 

of 1.4 credits in a year. This is the same as the service limit that exists currently for Plan Years 

from 2009 and later. So all Plan Years from 1976 and later will be treated with the same 

service limit. 

The benefit multiplier for Pension Service credits earned up through 2008 will be limited to 

$71. This is a reduction from the current benefit level of $85 per Pension Service credit. 

Members who retired or had a break in service that resulted in a benefit multiplier of less than 

$71 will have their currently applicable multiplier remain in place. 

The benefit multiplier for Pension Service credits earned in 2009 and later will be reduced to 

$76. This is a reduction from the current benefit level of $80 per service credit. 

Participants who retired prior to the effective date of the suspension will have their benefit 

recalculated using the new service limit and benefit multipliers, and using the same early 

retirement and optional form conversion factors that were applicable at their retirement date. 

Participants who elected a Level Income Option will have their new pre-62 and post-62 

amounts determined based on the ratio of the benefits payable in the Plan’s normal form at 

retirement date using the before and after the application of the MPRA suspension. 

All other plan provisions, including eligibility, early retirement adjustments, etc. will remain as 

in effect prior to the suspension of benefits. 

(4) The proposed suspension does not provide for different treatment of participants and 

beneficiaries (other than as a result of application of the individual limitations). 

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Application Procedures (continued) 

2.03 Penalties ofperjury statement 

Under penalties of perjury, I declare that I have examined this application, including the accompanying 

documents, and, to the best of my knowledge and belief, the request contains all the relevant facts 

relating to the request, and such facts are true, correct, and complete. 

Name: Name: 

Chairman 

Date: Date: Jd?1fe 

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Application Procedures (continued) 

2.04 Public disclosure statement 

I acknowledge that, pursuant to § 432(e)(9)(G)(ii) of the Internal Revenue Code, the application for 

approval of the proposed suspension of benefits, and the application's supporting material, will be 

publicly disclosed through publication on the Treasury Department website. 

Name: 

Chairman 

Name: 

Date: Date: 9/41//fJ ~ 7 

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Application Procedures (continued) 

2.05 Submission of Application 

This application has been submitted to the Secretary via www.treasury.gov/mpra pursuant to the 

requirements of Rev. Proc. 2017-43. 

2.06 Signature 

The signatures required for this application have been submitted electronically in pdf format. 

2.07 Duty to Correct 

The Plan hereby acknowledges that if, after submission of the application for a suspension of benefits, 

any error in the application is discovered, the Trustees shall provide prompt notice to the Treasury 

Department. 

2.08 Resubmission Review 

This is the first application for the Plan and is not under the resubmission review process pursuant to 

§ 1.432(e)(9)-1(g)(3). 

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Demonstration the Plan is Eligible for Suspension 

3.01 Plan actuary’s certification of critical and declining status

Exhibit 3.01 contains the Actuary’s certification of critical and declining status for the Plan Year

beginning January 1, 2018, the Plan Year in which the applications is submitted. 

The Exhibit also provides supporting information used in developing the January 1, 2018 certification, 

including a year-by-year projection of the available resources and benefit payments (by participant 

status), demonstrating that the plan is projected to become insolvent during the relevant period. 

The certification and supporting information are based, in part, on the results of the January 1, 2017 

actuarial valuation, included in Exhibit 7.10. 

3.02 Plan Actuary’s Certification that the Plan is projected to avoid Insolvency 

The attached Exhibit 3.02 is the Actuary’s certification to the plan sponsor that the plan is projected to

avoid insolvency within the meaning of Code. Documentation supporting this certification is included in 

the Exhibit. This includes a plan-year-by-plan-year projection of the available resources and benefit 

payments over the extended period (30 years). 

3.03 Plan Sponsor’s Determination of Projected Insolvency

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

consideration of all of the available information and possible plan changes, that the Plan is projected to 

become insolvent unless benefits are suspended as proposed in the application. The Trustees have 

determined this to be so even though they have taken all reasonable measures to avoid insolvency. The 

Trustees determination of projected insolvency includes consideration of all measures taken to avoid 

insolvency over the past 10 plan years or more, as discussed below. 

On January 1, 2008, the Plan’s actuary certified the Plan’s funding status as endangered for the 2008 

Plan Year. The Trustees adopted a Funding Improvement Plan with the aim of restoring the Fund’s longterm health. However, the market losses of 2008 made worse the funding issues, and in 2013 the Fund 

was first certified in critical status. The Trustees adopted a Rehabilitation Plan that took exhausted all 

reasonable measures but was able to extend the projected solvency of the Fund. 

In spite of additional efforts taken by the Trustees since the 2013 Rehabilitation Plan, the Plan has not 

recovered. The Trustees have been considering their options under MPRA ever since the law was 

passed in 2014. In 2017 following conversations with the Trustees, the Plan’s actuary reduced the

investment return assumption from 7.50% to 7.00%, which shortened the period of projected solvency 

of the Fund. The Plan was first certified in critical and declining status in 2017. The Trustees have 

determined that the Plan cannot be projected to avoid insolvency if the proposed suspension of benefits 

is not applied to the Plan. 

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Demonstration the Plan is Eligible for Suspension (continued) 

(1) For the 10 plan years immediately preceding the plan year in which the application is submitted: 

Contribution levels. 

Contribution rates have increased drastically over the last 10+ years. In 1999 the rate was 

$3.65 per hour. The rate was $4.00 in 2000 through 2002, and in 2003 some of the 

contribution going into the Defined Contribution Plan was reallocated to the Pension 

Plan, thereby increasing the rate to $6.50 per hour. During the period from 2000 to 2008 

the benefit multiplier was left unchanged at $85 per year of service, so all of the increases 

in the contribution rate were being made to help plan funding. 

Rates increased slowly through 2007, but from 2008 until now they have increased 

drastically, both on a voluntary basis and increases required as part of the Rehabilitation 

Plan dated December 3, 2013. The contribution rate, as of the time of this application, is 

now $13.25 per hour. Contribution rates over the last 10+ years are as follows: 

Effective Date Contribution Rate 

6/01/2006 $6.75 

6/18/2007 6.95 

6/02/2008 7.50 

6/01/2009 8.30 

5/31/2010 9.05 

5/30/2011 9.55 

7/30/2012 10.05 

5/27/2013 10.55 

5/26/2014 11.25 

6/01/2015 11.75 

5/30/2016 12.25 

5/29/2017 12.75 

5/28/2018 13.25 

The contribution rates of nearby IBEW Locals as well as some other Building Trades 

Unions are shown to provide illustration that the IBEW Local 237 Pension Fund is already 

strained in its ability to remain competitive on a contribution basis. 

Nearby IBEW Local Contribution Rate 

Buffalo IBEW L.U. 41 $8.95 

Jamestown IBEW L.U. 106 7.40 

Rochester IBEW L.U. 86 7.48 

Syracuse IBEW L.U. 43 9.83 

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Demonstration the Plan is Eligible for Suspension (continued) 

Nearby B&CT Local Contribution Rate* 

Operating Engineers L.U. 463 $8.33 

Steamfitters L.U. 22 10.84 

Iron Workers L.U. 9 9.55 

*Contribution rates as reported or estimated from information reported on 2016 

Form 5500. 

Levels of benefit accruals, including any prior reductions in the rate of benefit accruals. 

The benefit multiplier was historically increased every couple years to coincide with the 

expenditure of excess plan funding. Changes were always made on a basis of retroactive 

application so long as the participant didn’t incur a break in service. Additionally, cost of 

living adjustments (COLAs) were granted on several occasions during the 1990’s. 

In 2000 the Board was again faced with the issue of excess plan funding that was creating 

a situation where employer contributions may not be tax deductible. This was not an 

uncommon situation at that time, and many plans rectified the situation by granting a 

benefit improvement that increased the tax deductible limitation. The IBEW Local 237 

Pension Plan did the same thing. Actuarial studies at the time showed that the benefit 

multiplier should be increased to at least $85, and potentially as high as $100 per year of 

service, and applied as in the past – with retroactive application. The Board of Trustees 

was reluctant to make such a drastic change (the multiplier at the time was $71 per year 

of service), but they agreed that maintaining the deductibility of contributions was 

necessary. While this was the right and necessary decision for the Board to have made at 

the time, the unexpected market losses of the following decade made the funding 

situation of the plan deteriorate fairly quickly. 

As part of the Funding Improvement Plan adopted in 2008, the Board of Trustees limited 

the amount of service that can be accrued in a year and also reduced the benefit 

multiplier. 

Previously, the plan provided Pension Service by giving .001 of a year of service for every 

hour worked. There was no limit on the amount of Pension Service that could be earned 

in a plan year. Starting with 2009 the service accrual was changed to put in place a limit 

of 1.4 years of Pension Service to be earned in a plan year. 

Additionally, in 2009 the plan reduced the benefit multiplier to $80 per year of service. It 

was previously $85 per year of service. 

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Demonstration the Plan is Eligible for Suspension (continued) 

Prior reductions, if any, of adjustable benefits under section 432(e)(8). 

The Rehabilitation Plan dated December 3, 2013 changed the early retirement reduction 

effective June 1, 2014. Prior to that date the reduction for early retirement was 3% per 

year reduced from age 60. In 2014 the reduction was increased to 6% per year from age 

55-58. 

Additionally, in 2018 the plan was amended to completely eliminate any early retirement 

subsidy for participants who retire from terminated vested status. This status is 

determined by the number of aggregate hours worked in the 60 months prior to 

commencement of benefits. 

Any prior suspension of benefits under section 432(e)(9). 

None. 

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

In order to attract contributing employers, IBEW Local 237 has added the full-time 

position of organizer. This has helped to turn a few non-union contractors into 

participating union employers. But the larger impact has been to organize a few 

electricians at a time from non-union contractors and initiating them into the union. They 

then remain at the contractor which, oftentimes, slowly causes the entire contractor to 

become a union contractor. 

The national portability rules of the IBEW make it easy for a contractor located out of the 

jurisdiction to do work in Niagara Falls with member from another jurisdiction. The 

contributions are then reciprocated to the other local instead of remaining in the Plan to 

help restore funding. The Union has often staked out along the major roads leading into 

the jurisdiction keeping watch for trucks of those contractors. On a few occasions they 

have been able to catch one and work to make sure the portability rules aren’t abused.

But the efforts to continue to patrol this are costly, making it implausible to continue on 

an ongoing basis. 

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Demonstration the Plan is Eligible for Suspension (continued) 

(2) Plan Factors 

In accordance with § 432(e)(9)(C)(ii), the following specific information with respect to the plan: 

The impact on plan solvency of the subsidies and ancillary benefits, if any, available to active 

participants. 

There are certain plan benefits and features that are extremely valuable. Of specific note is the 

unreduced early retirement benefit at age 60 with 20 years of service. If this and other plan 

benefits were reduced or eliminated as an “adjustable benefit” then the suspensions under

MPRA may not need to be as drastic. However, the Trustees do not believe that eliminating or 

reducing those benefit features to be reasonable as it would have an adverse impact on the 

Industry. The contribution rate at its current level is already stretching both the Employer and 

the Member. Active participants expressed their overwhelming preference for a solution that 

would save the early retirement option, even at the cost of a lesser accrual rate and increased 

contribution rates. 

Compensation levels of active participants relative to employees in the participants’ industry

generally. 

Most IBEW pension plans in the nearby geography are fairly well funded so they are not strained 

for the increasing contribution rates. This helps to maintain a strong set of fringe benefits while 

providing for a nice level of take home pay. All maintain larger contributions in the Defined 

Contribution (DC) plan as well. 

Below is a chart showing, by Western NY Locals within the IBEW, the division of the total wage 

package between the fringes and the wage rate (gross take home pay). 

Combined 

IBEW Total DC and 

Local Package Pension Welfare Annuity Wage Wage 

Union Geography per Hour Fund Fund Fund (DC) Rate Rate 

Local 41 Buffalo, NY $61.44 $8.95 $12.30 $4.95 $35.24 $40.19 

Local 43 Syracuse, NY 60.82 9.83 10.24 3.00 37.75 40.75 

Local 86 Rochester, NY 55.93 7.48 10.80 4.45 33.20 37.65 

Local 106 Jamestown, NY 56.50 7.40 9.55 4.00 35.55 39.55 

Local 237 Niagara Falls, NY 61.07 13.25 12.04 1.00 34.78 35.78 

As can be seen, Local 237 has one of the highest total packages, but has the lowest total amount 

that is viewed as member discretionary (the combination of the take-home wage rate and the DC 

plan contribution. 

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Demonstration the Plan is Eligible for Suspension (continued) 

Competitive and other economic factors facing contributing employers. 

The impact of having a large, well-funded plan nearby has played a significant role in reducing 

the Even without further increases to the contribution rate leading to market share changes for 

the Union workforce, the electrical industry as a whole has decreased in the Western New York 

area. The industry in Niagara Falls specifically has shrunk, reducing the level of work available to 

bring contributions into the Fund. Several plants have left the area, including Great Lakes 

Carbon, Bell Aerospace, and other carbon plants. 

The non-union presence in Niagara Falls has kept the wage package from increasing too much. 

Increases needed in the Pension contribution have often, at least partially, come by way of a 

reduction in the take home pay for members. The number of non-union contractors has 

increased in recent years, putting even more pressure on the contractors to win work. 

The climate in Niagara Falls makes working into late 50’s and 60’s extremely difficult to take

physically. The work itself is physically demanding in nature, but when it’s April and there’s still

three feet of snow on the ground, the rigors of a six month winter start to exhaust the body. The 

membership puts great value in the early retirement benefits under the plan and would not 

support reductions in that benefit feature. 

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Demonstration that the Plan’s Proposed Suspension Satisfies the Statutory Requirements

4.01 Demonstration that limitations on individual suspensions are satisfied 

See Exhibit 4.01 for a demonstration of how the proposed suspension satisfies the limitations described 

in § 432 (e)(9)(D)(i), (ii), and (iii). Separate benefit demonstrations supporting the proposed benefits 

suspensions satisfies the individual limitations set forth in Rev. Proc. 2017-43 Section 4.01. 

The following is a summary of the individual demonstrations included to show that the limitations set 

forth in section 4.01 are properly satisfied. 

 Example 1 – Disability based limitation, currently in payment 

 Example 2 – Disability based limitation, contingent beneficiary 

 Example 3 – Disability based limitation, future disabled retiree 

 Example 4 – 110% of PBGC limitation, currently in payment 

 Example 5 – 110% of PBGC limitation, contingent beneficiary 

 Example 6 – 110% of PBGC limitation, future retiree 

 Example 7 – Age-based limitation, currently in payment 

 Example 8 – Age-based limitation, contingent beneficiary 

The proposed suspension does not affect any participant or beneficiary that is at least 80 as of the 

effective date. 

In determining the extent to which any participant’s benefit will be reduced pursuant to the Plan’s

suspension of benefits, no participant’s monthly guaranteed benefit, calculated under § 4022A of ERISA, 

is reduced on account of any of the following limitations or exclusions: (1) the § 4022A exclusion of 

certain forfeitable benefits; (2) the § 4022(b)(1)(A) exclusion of certain benefits and benefit increases in 

effect for less than 60 months; (3) the limitations contained in the § 4022A(c)(2) definition of the accrual 

rated used for calculating the monthly guaranteed benefit, so that the accrual rate is based on a benefit 

that is no greater than the monthly benefit payable under the plan at normal retirement age in the form 

of a single life annuity and is calculated without regard to any reduction under § 411(a)(3)(E) of the 

Code, divided by years of credited service (limiting credited service to 1 year for any year of 

participation); (4) the § 4022A(d) limitation that the guaranteed benefit will not exceed the benefit 

calculated under the plan as reduced under § 411(a)(3)(E) of the Code; and (5) the § 4022A(e) exclusion, 

pursuant to § 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan. 

(1) The proposed suspension does not affect any participant or beneficiary in the Plan that was 

awarded, or will be awarded, a disability pension. 

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Demonstration that the Plan’s Proposed Suspension Satisfies the Statutory Requirements (continued) 

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

insolvency 

See Exhibit 4.02 for a demonstration that, in accordance with § 432(e)(9)(D)(iv), the proposed benefit 

suspension is reasonably estimated to enable the Plan to avoid insolvency. It contains a year-by-year 

projection of the Plan’s solvency ratio and available resources during the projection period.

The demonstration is shown on a deterministic basis, and shows that: 

(a) For each plan year during the extended period of 30 years, the Plan’s solvency ratio (the ratio of 

the Plan’s available resources to the scheduled benefit payments under the Plan), is projected to

be at least 1.0. 

(b) Since the Plan’s projected funded percentage at the end of the 30 year extended period is less 

than 100%, 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. 

Since the Plan is not a plan described in § 432(e)(9)(B)(v)(l) so it is not required to use stochastic 

projections in demonstrating that it is reasonably expected to avoid insolvency. 

Information on the actuarial assumptions used for the illustrations is included in Exhibit 6.03. 

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

level necessary to avoid insolvency. 

See Exhibit 4.03 for a demonstration that, in accordance with § 432(e)(9)(D)(iv), the proposed benefit 

suspension is reasonably estimated to not materially exceed the level necessary to enable the Plan to 

avoid insolvency. This illustration shows that the plan would not reasonably avoid suspension if the 

dollar amount of the proposed suspension were reduced, not below zero, by the greater of (1) 5% of the 

reduction in the period payment proposed for that participant, or (2) 2% of the period payment 

determined without regard to the proposed suspension. 

For this purpose, years are shown beyond the 30 year extended period so that the projection of 

insolvency can be illustrated. 

Information on the actuarial assumptions used for the illustration is included in Exhibit 6.03. 

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Demonstration that the Plan’s Proposed Suspension Satisfies the Statutory Requirements (continued) 

4.04 Demonstration that the proposed benefit suspension is distributed equitably. 

Exhibit 4.04 provides a demonstration that, in accordance with § 432(e)(9)(D)(vi), the proposed benefit 

suspension is distributed in an equitable manner across the participant and beneficiary population. The 

Exhibit contains illustrations that provide the following: 

(1) For the plan in aggregate, 

(a) The number of participants, beneficiaries, and alternate payees; the average monthly 

benefit before the suspension; the average monthly benefit after the suspension and 

taking into account the individual limitations; and the aggregate present value of the 

reduction in benefits for all individuals. 

(b) A demonstration of the distribution of the benefit suspension. This demonstration is 

illustrated through a count of individuals whose benefits are reduced by a percentage 

that falls within a series of ranges of 10%. 

(2) The proposed suspension provides for different treatment for service earned prior to 2009 

differently than service earned after 2008. 

(a) Exhibit 4.04 contains the information above in (1)(a) of this section 4.04. 

(b) Factors that were considered in designing the proposed suspension are the following: 

 Amount of benefit – Since service in plan years after 2008 has been limited to a 

maximum of 1.4 years, current members have borne the majority of efforts to 

date aimed at restoring plan funding. The benefit multiplier has been lower since 

2009 also. Applying changes that impacted those with higher benefit amounts 

was not the specific effort, but instead the Board of Trustees desired to create a 

final plan design that was more equitable reflecting the plan provisions in place for 

plan years 2009 and later. 

 Current and past contribution levels – As is described in Section 3.02, the 

contribution rate has increased significantly over the recent past. 

 The extent to which active participants are reasonably likely to withdraw support 

for the plan, accelerating employer withdrawals from the plan and increasing the 

risk of additional benefit reductions for participants in and out of pay status – the 

multiplier is cut more significantly for service earned prior to 2009 than it is for 

service earned after 2008 and for future accruals. This is done to ensure that the 

plan is able to retain participation and attract new participants as older active 

participants retire. 

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Demonstration that the Plan’s Proposed Suspension Satisfies the Statutory Requirements (continued) 

(c) Several of the factors listed in (b) above are listed in § 432(e)(9)(D)(vi)(I) through (XI). 

(d) All factors identified in (b) above are listed in § 432(e)(9)(D)(vi)(I) through (XI). 

(e) The relevant factors considered reflect the Trustees desire to make the final plan design 

have all participants bear a portion of the responsibility of restoring plan health. The 

differences in treatment under the proposed suspension among the categories is not an 

effort to target a specific group of individuals, but instead to a plan design that has shared 

the burden of solving the Plan’s funding issues among all groups.

4.05 Notice 

To satisfy the notice requirements of § 432(e)(9)(F) of the Code, the following information is included: 

(1) Individual Notices 

See Exhibit 4.05a for each type of notice that will be given to each participant and beneficiary 

under the Plan; to each employer that has an obligation to contribute to the Plan, and to each 

employee organization representing participants in the Plan. 

(2) Description of the Efforts Made to Contact Participants, Beneficiaries, and Alternate Payees 

The Board of Trustees believes that it has up-to-date address information for all of the 

participants and beneficiaries. Should any of the mailed notices be return as undeliverable, the 

Trustees will use the Plan’s missing participant procedures to attempt to locate those missing.

These procedures include contacting the Local Union as well as members who may know of their 

whereabouts. Should that provide no help in locating the individual, a third party company such 

as PBI or The Berwyn Group will be hired to provide assistance. Once an individual who was 

previously missing is located, notices will be mailed within five days of location. 

(3) Notices will not be delivered electronically. 

(4) A list of: 

a) See Exhibit 4.05b for a list of contributing employers that have to contribute to the Plan. 

b) The only employee organization representing participants under the Plan is the 

International Brotherhood of Electrical Workers, Local No. 237. 

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Plan Sponsor Determination Relating to Reasonable Measures Taken to Avoid Insolvency 

5.01 Measures taken to avoid insolvency 

See information provided in Section 3.03 as well as the Narrative Statement. 

5.02 Plan factors 

See information provided in Section 3.03 as well as the Narrative Statement. 

5.03 How plan factors were taken into account 

See information provided in Section 3.03 as well as the Narrative Statement. 

5.04 Other factors considered 

See information provided in Section 3.03 as well as the Narrative Statement. 

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Other Required Information 

The application must also include the following information: 

6.01 Ballot 

See Exhibit 6.01 for a proposed ballot that is intended to satisfy the requirements of § 432(e)(9)(H)(iii). 

The ballot does not include the statement in opposition to the proposed benefit suspension described in 

§ 432(e)(9)(H)(iii)(II), the individualized estimate that was provided as part of the notice described in 

§ 432(e)(9)(F), or the voting procedures as described in 1.432(e)(9)-1(h)(3)(i)(M)). 

6.02 Partition 

The Plan is not requesting approval for a partition. 

6.03 Actuarial assumptions used for projections 

See Exhibit 6.03 for 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. Supporting evidence for 

the selection of the assumptions are included within Exhibit 6.03. 

The assumptions detailed in Exhibit 6.03 were used for all projections required under Revenue 

Procedure 2017-43. The only items included within the MPRA Suspension Application that utilized 

actuarial assumptions that differ from those described in the aforementioned Exhibit are (1) the details 

of the actuarial certification of critical and declining status under Section 3.01 of this Application, (2) the 

actuarial calculations included in the Form 5500s requested under Section 7.08, and (3) the Actuarial 

Valuation Reports requested under Section 7.10. In these situations, the actuarial assumption used for 

the measurements are included in the respective Exhibits for those Sections. 

6.04 Ten-year experience for certain critical assumptions 

See Exhibit 6.04 for details of the Plan’s experience with respect to certain critical assumptions for each

of the 10 plan years immediately preceding the plan year in which the application is submitted. The 

exhibit separately identifies 1) total contributions, 2) total contribution base units, 3) average 

contribution rates, 4) withdrawal liability payments, and 5) rate of return on plan assets. 

19 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Required Information (continued) 

6.05 Demonstration of sensitivity of projections 

See Exhibit 6.05 for a presentation of the sensitivity of projections to the plan’s solvency ratio based

upon certain key assumptions. The Exhibit contains the following presentations: 

(1) Illustration #1 - projection of the Plan’s solvency ratio using a 1.0% lower assumed rate of return

(2) Illustration #2 - projection the Plan’s solvency ratio using a 2.0% lower assumed rate of return

(3) Illustration #3 - projection of the Plan’s solvency ratio assuming that future contribution base

units decrease at 0.88% per year. This is the average annual decrease experienced over the 10 

plan years preceding the 2018 plan year 

(4) Illustration #4 – projection of the Plan’s solvency ratio assuming that future contribution base units 

decrease at 1.88% per year. This is the average annual decrease experienced over the 10 plan years 

preceding the 2018 plan year reduced by 1 percentage point 

6.06 Projection of funded percentage 

See Exhibit 6.06 which projects the accrued liability of the plan using the unit credit funding method, 

assets, and funded percentage for each year in the extended period. 

20 
Other Required Information (continued} 

6.07 Plan sponsor certifications relating to plan amendments 

Pursuant to Section 6.07 of IRS Revenue Procedure 2017-43, the Board of Trustees of the I.B.E.W. Local 

Union No. 237 Pension Plan 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 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 records of its determination that both: 

(a) All reasonable measures to avoid insolvency continue to be taken during the period of 

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 benefits improvements must satisfy the 

requirements of§ 432(e)(9)(E). 

Name: Nam 

Chairman 

9/~7

I Date: Date: /;6 I 

21 
 

 

 

 

 

Other Required Information (continued) 

6.08 Whether a plan is described in section 432(e)(9)(D)(vii) 

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

6.09 Narrative statement 

See Exhibit 6.09 for the required Narrative Statement. 

22 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identification and Background Information on the Plan 

The application must include the following identification and background information: 

7.01 Plan sponsor 

Name, contact information (for example, address, telephone number, email address, and fax number) 

and employer identification number (EIN) of the plan sponsor. 

Name of Plan Sponsor: I.B.E.W. Local 237 Pension Plan Board of Trustees 

Telephone Number: (716) 297-3899 

Address: 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Employer Identification Number: 16-6094914 

7.02 Plan identification 

Plan Name: I.B.E.W. Local 237 Pension Plan 

Employer Identification Number: same as plan sponsor 

Plan Number: 001 

The Plan is a multiemployer pension plan within the meaning of Code Section 414(f) and ERISA Section 

3(37). 

7.03 Retiree representative 

The Plan is not required to appoint a Retiree Representative under the Regulations as it is not a plan 

with 10,000 or more participants. 

7.04 Plan’s enrolled actuary

Bradford L. Rigby, ASA, EA, MAAA 

17-07217 

Cowden Associates, Inc. 

444 Liberty Avenue, Suite 605 

Pittsburgh, PA 15222 

(412) 394-9330 

23 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identification and Background Information on the Plan (continued) 

7.05 Power of Attorney 

See Exhibit 7.05. The Plan’s representatives are attorney Mark L. Stulmaker of Lipsitz Green Scime 

Cambria LLP, and Bradford L. Rigby, ASA, EA, MAAA, of Cowden Associates, Inc. 

7.06 Plan documents 

See Exhibit 7.06 for the Fund’s most recently restated Plan Document, including all amendments, the 

most recent Summary Plan Description as defined under § 102 of ERISA and any subsequent Summaries 

of Material Modifications (SMMs), and the Plan’s most recent Determination Letter.

7.07 Collective bargaining and side agreements 

See Exhibit 7.07 for excerpts from the Collective Bargaining Agreements and side agreements pursuant 

to which the Plan is maintained. 

7.08 Annual Return 

See Exhibit 7.08 for the following sections of Plan’s most recently filed Form 5500: (1) pages 1 and 2 of 

the Form 5500, (2) the Schedule MB, including attachments, and (3) the Schedule R with attachments. 

7.09 Rehabilitation Plan 

See Exhibit 7.09 for a copy of the Plan’s most recently updated Rehabilitation Plan.

7.10 Valuation Reports 

See Exhibit 7.10 for the January 1, 2017 and January 1, 2016 actuarial valuation reports for the Plan. 

7.11 Completed Checklist 

See Exhibit 7.11 for the completed checklist of information required to be included in the Plan’s

application. 

24 
Signature Page 

The Trustees very much appreciate the Treasury's willingness to review this important matter and 

application for the Plan. Should you have any questions or required any additional information, please 

contact 

I.B.E.W. Local 237 Pension Plan 

Name: 

Chairman 

Nam 

Date: 9/411/e 

I 7 Date: fdnj;f?

25 
IRC Section 432 Certification 

To: Internal Revenue Service 

Employee Plans Compliance Unit 

Group 7602 (TEGE:EP:EPCU) 

230 South Dearborn Street 

Room 1700 - 17th Floor 

Chicago, IL 60604 

Plan Name: I.B.E.W. Local Union No. 237 Pension Plan 

Employer Identification Number: 16-6094914 

Plan Number: 001 

Name of Plan Sponsor: I.B.E.W. Local 237 Pension Plan Board of Trustees 

Telephone Number of Plan Sponsor: (716) 297-3899 

Address of Plan Sponsor: 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Plan Year of Certification: January 1, 2018 - December 31, 2018 

I certify that the above plan is in critical and declining status as defined in section 432 of the Internal 

Revenue Code for the above plan year. 

I further certify that the above plan is making the scheduled progress under the Rehabilitation Plan. 

Actuarial methods and assumptions and other pertinent details are contained in a separate 2018 report 

that has been provided to the plan sponsor. 

Name of Enrolled Actuary: Bradford L. Rigby 

Address of Enrolled Actuary: Cowden Associates 

Four Gateway Center, Suite 605 

Pittsburgh, PA 15222 

Telephone Number: (412) 394-9330 

Enrollment Number: 17-07217 
   

   

Zone Status Determination 

The following questions work to determine the status of the Fund for the current plan year by reviewing

the criteria necessary for each zone. 

Y or N

Critical Status – Red zone if any of a), b), c), or d) apply 

a) Is the Plan’s Funded Percentage less than 65% and the Plan’s fair market value of

assets plus present value of expected employer contributions for the current and

following 6 plan years less than the present value of all nonforfeitable benefits and

administrative expenses projected to be payable under the plan during the current

and following 6 plan years? N 

b) Does the plan have an accumulated funding deficiency (negative credit balance) in

any of the current or following 3 plan years (4 plan years if the Funded Percentage is

65% or less), without reflecting amortization extensions? Y 

c) Each of the following are applicable.

i) The Plan’s normal cost plus interest on unfunded liability exceeds the present

value of anticipated employer and employee contributions for the year. Y

ii) The present value of nonforfeitable benefits of inactive participants is greater

than the present value of nonforfeitable benefits for active participants. Y 

iii) The plan has an accumulated funding deficiency (negative credit balance) in

any of the current or following 4 plan years, without reflecting amortization

extensions. Y 

Do all apply?  Y 

d) Is the Plan’s fair market value of assets plus present value of expected employer

contributions for the current and following 4 plan years less than the present value

of all nonforfeitable benefits and administrative expenses projected to be payable

under the plan during the current and following 4 plan years? N

Critical and Declining Status – both a) and b) apply 

a) Does the Plan meet the criteria above for Critical Status? Y

b) Is the Plan projected to become insolvent within the current or following 14 plan

years (19 plan years if the ratio of inactive to active participants is at least 2:1 or if

the plan is less than 80% funded)? Y 

Endangered Status – Yellow zone if a) does not apply and either b) or c) apply.  Orange zone 

if not a) and both b) and c) apply.

a) Is the Plan in either Critical or Critical and Declining Status? Y 

b) Is the Plan’s Funded Percentage less than 80%? Y 

c) Is the Plan projected to have an accumulated funding deficiency (negative credit

balance) in any of the current or following 6 plan years (reflecting any amortization

extensions)? Y 

Conclusion  Critical and Declining Status 

6 
   

   

   

   

Actuarial Methods and Assumptions 

As of January 1, 2018 

Mortality  Healthy:  RP‐2014 Combined Healthy Blue Collar Headcount Weighted Mortality 

Table, with fully generational projection using scale MP‐2015 

Disabled:  RP‐2014 Disabled Retiree Headcount Weighted Mortality Table, with 

fully generational projection using scale MP‐2015 

Interest Rate  7.00%

Turnover  None 

Retirement  Based on age as follows: 

  Age Rate

55  10%

56‐57  5 

58 20

59 10

60 75

61‐64  25 

65  100 

Terminated  vested  participants  are  assumed  to  retire  at  age  65. Last  year rates 

were 100% at age 60. 

Expenses  The normal cost is increased by $110,000 for non‐investment related expenses. 

Percent  80% of  the participants are assumed  to be married with  the  female spouse  three 

Married  years younger than the male spouse. 

Disability  1973 Disability Model, Transactions of Society of Actuaries, XXVI.  Sample rates are

as follows:

  Age Rate

25  0.0008 

35  0.0012 

45  0.0032 

55  0.0122 

10
Actuarial Methods and Assumptions (continued)

Asset Valuation  Plan assets are  carried at market  value with a 5  year averaging of  the  difference 

between  actual  and  expected  investment  performance.  The  Actuarial  Value  of 

Assets is subject to limits of 80% and 120% of Market Value. 

Funding  Unit  Credit.    The  unit credit  actuarial  cost  method  develops  normal  cost  and 

Method  actuarial accrued  liability  separately  for  each  individual  in  the  plan.    The  normal

cost is  the present value of  the individual’s benefits expected to be earned in  the 

current year.  The individual’s actuarial accrued liability is the present value of the 

individual’s benefits earned in previous years. 

Liabilities  were  projected  to  future  valuation  dates  using  original  measurements

and data as of January 1, 2017. 

Incomplete  Beneficiary date of birth is missing for one participant. The beneficiary is assumed

Data  to be three years younger than the participant.

Benefit Accrual  Pension credits and expected contributions were projected on the assumption that

Rate all active participants would work annual hours equal  to  the average of  the prior 

three  years,  with  contribution  rates  set  forth  in  the  current  collective  bargaining

agreement(s). 

Calculation of  The  actuarial  present  value  of  accrued  benefits  has  been  calculated  as  of  the

Actuarial  valuation  date,  based  upon  the  Plan  specifications  then  in  effect  and  upon  each 

Present Value  participant’s age and service as of that date.  These calculations consider the same 

of Accrued Plan  actuarial assumptions as were used in the actuarial valuation. 

Benefits 

Projected  For  the purpose of  the credit balance projection,  future covered employment  for 

Industry  2017  and  beyond  has  been  estimated  to  be  262,000  total  hours  per  year.    This

Activity  assumption has been set with input from the Board of Trustees. 

11
 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 3.01 

Supporting Information for Critical and Declining Status 

Withdrawal 

Plan Assumed Liability Benefit Administrative Investment Available Solvency 

Year Return MVA @ BOY Contributions Payments Payments Expenses Return MVA @ EOY Resources Ratio 

2017 7.00% $ 19,142,431 $ 2,505,078 $ 0 $ 4,923,448 $ 133,289 $ 1,721,676 $ 18,312,447 $ 23,235,896 4.72 

2018 7.00% 18,312,447 3,344,652 0 5,109,590 112,750 1,199,686 17,634,445 22,744,035 4.45 

2019 7.00% 17,634,445 3,344,652 0 5,284,068 115,569 1,147,075 16,726,536 22,010,603 4.17 

2020 7.00% 16,726,536 3,344,652 0 5,476,443 118,458 1,076,126 15,552,413 21,028,855 3.84 

2021 7.00% 15,552,413 3,344,652 0 5,643,798 121,419 987,488 14,119,335 19,763,133 3.50 

2022 7.00% 14,119,335 3,344,652 0 5,781,133 124,455 881,859 12,440,258 18,221,391 3.15 

2023 7.00% 12,440,258 3,344,652 0 6,043,905 127,566 754,251 10,367,689 16,411,594 2.72 

2024 7.00% 10,367,689 3,344,652 0 6,186,093 130,755 603,669 7,999,162 14,185,255 2.29 

2025 7.00% 7,999,162 3,344,652 0 6,352,179 134,024 431,460 5,289,071 11,641,249 1.83 

2026 7.00% 5,289,071 3,344,652 0 6,412,752 137,375 239,339 2,322,935 8,735,687 1.36 

2027 7.00% 2,322,935 3,344,652 0 6,455,084 140,809 29,985 (898,322) 5,556,762 0.86 

2028 7.00% (898,322) 3,344,652 0 6,563,425 144,330 (199,734) (4,461,158) 2,102,267 0.32 

2029 7.00% (4,461,158) 3,344,652 0 6,644,362 147,938 (452,328) (8,361,134) (1,716,772) (0.26) 

2030 7.00% (8,361,134) 3,344,652 0 6,735,460 151,636 (728,910) (12,632,488) (5,897,029) (0.88) 

2031 7.00% (12,632,488) 3,344,652 0 6,738,442 155,427 (1,028,151) (17,209,857) (10,471,415) (1.55) 

2032 7.00% (17,209,857) 3,344,652 0 6,717,496 159,313 (1,347,908) (22,089,921) (15,372,426) (2.29) 

2033 7.00% (22,089,921) 3,344,652 0 6,708,567 163,296 (1,689,314) (27,306,446) (20,597,879) (3.07) 

2034 7.00% (27,306,446) 3,344,652 0 6,682,697 167,378 (2,053,632) (32,865,501) (26,182,804) (3.92) 

2035 7.00% (32,865,501) 3,344,652 0 6,614,064 171,562 (2,440,310) (38,746,786) (32,132,722) (4.86) 

2036 7.00% (38,746,786) 3,344,652 0 6,545,706 175,852 (2,849,558) (44,973,249) (38,427,544) (5.87) 

2037 7.00% (44,973,249) 3,344,652 0 6,529,973 180,248 (3,284,968) (51,623,786) (45,093,813) (6.91) 

2038 7.00% (51,623,786) 3,344,652 0 6,510,265 184,754 (3,749,916) (58,724,069) (52,213,805) (8.02) 

2039 7.00% (58,724,069) 3,344,652 0 6,441,409 189,373 (4,244,487) (66,254,687) (59,813,277) (9.29) 

2040 7.00% (66,254,687) 3,344,652 0 6,399,090 194,107 (4,770,191) (74,273,423) (67,874,333) (10.61) 

2041 7.00% (74,273,423) 3,344,652 0 6,345,500 198,960 (5,329,641) (82,802,871) (76,457,372) (12.05) 

2042 7.00% (82,802,871) 3,344,652 0 6,291,055 203,934 (5,924,812) (91,878,020) (85,586,965) (13.60) 

2043 7.00% (91,878,020) 3,344,652 0 6,247,806 209,032 (6,558,611) (101,548,818) (95,301,011) (15.25) 

2044 7.00% (101,548,818) 3,344,652 0 6,223,284 214,258 (7,234,820) (111,876,527) (105,653,244) (16.98) 

2045 7.00% (111,876,527) 3,344,652 0 6,196,300 219,614 (7,956,924) (122,904,714) (116,708,414) (18.84) 

2046 7.00% (122,904,714) 3,344,652 0 6,160,668 225,105 (8,727,738) (134,673,573) (128,512,905) (20.86) 

2047 7.00% (134,673,573) 3,344,652 0 6,111,939 230,732 (9,549,907) (147,221,500) (141,109,561) (23.09) 
 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 3.01 

Supporting Information for Critical and Declining Status - Expected Benefit Payment Detail 

Current Current Terminated Future New 

Plan Year Retirees/Beneficiaries Vested Current Active Entrants Total 

2018 $ 4,637,749 $ 169,237 $ 296,174 $ 6,430 $ 5,109,590 

2019 4,547,810 210,122 512,372 13,764 5,284,068 

2020 4,450,010 248,329 757,038 21,066 5,476,443 

2021 4,344,763 271,829 998,597 28,609 5,643,798 

2022 4,232,579 300,485 1,211,760 36,309 5,781,133 

2023 4,114,010 452,465 1,432,484 44,946 6,043,905 

2024 3,989,619 495,949 1,647,415 53,110 6,186,093 

2025 3,859,969 603,380 1,827,070 61,760 6,352,179 

2026 3,725,596 637,618 1,979,797 69,741 6,412,752 

2027 3,587,036 638,667 2,151,502 77,879 6,455,084 

2028 3,444,846 682,027 2,349,382 87,170 6,563,425 

2029 3,299,593 680,138 2,568,074 96,557 6,644,362 

2030 3,151,858 703,527 2,773,550 106,525 6,735,460 

2031 3,002,223 701,927 2,918,593 115,699 6,738,442 

2032 2,851,239 700,998 3,040,220 125,039 6,717,496 

2033 2,699,442 698,357 3,175,621 135,147 6,708,567 

2034 2,547,353 694,570 3,295,165 145,609 6,682,697 

2035 2,395,534 680,765 3,381,823 155,942 6,614,064 

2036 2,244,588 673,519 3,459,273 168,326 6,545,706 

2037 2,095,151 680,789 3,569,672 184,361 6,529,973 

2038 1,947,877 683,059 3,676,802 202,527 6,510,265 

2039 1,803,392 665,443 3,747,568 225,006 6,441,409 

2040 1,662,273 663,226 3,819,427 254,164 6,399,090 

2041 1,525,051 643,539 3,883,957 292,953 6,345,500 

2042 1,392,224 622,878 3,932,581 343,372 6,291,055 

2043 1,264,223 601,234 3,982,164 400,185 6,247,806 

2044 1,141,410 578,621 4,034,662 468,591 6,223,284 

2045 1,024,141 563,377 4,060,877 547,905 6,196,300 

2046 912,777 538,859 4,074,499 634,533 6,160,668 

2047 807,731 513,515 4,061,619 729,074 6,111,939 
I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 3.02 

Plan Actuary's Certification that the Plan is Projected to Avoid Insolvency 

Pursuant to § 432(e)(9)(C)(i) of the Code, I hereby certify that the Plan is projected to avoid insolvency 

within the meaning of§ 418E throughout the extended period of 35 years, taking into account the proposed 

benefit suspension and assuming that the proposed suspension continues indefinitely. 

I further that, in accordance with Regulation 1.432(e)(9}-l(d)(S), the proposed suspension of benefits is at 

a level that is not materially in excess of the level that is necessary to enable the plan to avoid insolvency. 

This certification was prepared on behalf of the I.B.E.W. Local Union No. 237 Pension Plan based on 

employee data, asset statements and plan documents provided by the Plan Sponsor or its representatives. 

We did not audit the information, but did check for internal consistency as well as consistency with other 

information provided. 

I certify that the actuarial assumptions described in accompanying Exhibits to this Application are 

appropriate and reasonable based upon a study of Plan experience and expectations of future results. The 

assumptions and methods utilized in this analysis are in accordance with applicable Regulations and 

Actuarial Standards of Practice. 

I meet the Qualification Standards of the American Academy of Actuaries to render this actuarial opinion. 

To the best of my knowledge, this report is complete and accurate. 

Certified by: 

1 

Date 

Page 1 of 3 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 3.02 

Supporting Information for Certification of Projection to Avoid Insolvency Reflecting Proposed Suspension 

Withdrawal 

Assumed Liability Benefit Administrative Investment Available Solvency 

Plan Year Return MVA @ BOY Contributions Payments Payments Expenses Return MVA @ EOY Resources Ratio 

2018 3.15% $ 18,312,448 $ 1,590,236 $ 0 $ 2,825,347 $ 278,010 $ 549,302 $ 17,348,629 $ 20,173,976 3.95 

2019 6.30% 17,348,629 3,471,500 0 4,903,549 290,037 1,025,846 16,652,390 21,555,939 4.40 

2020 6.30% 16,652,390 3,509,708 0 4,265,684 143,538 1,009,568 16,762,444 21,028,128 4.93 

2021 6.30% 16,762,444 3,575,208 0 4,315,751 147,126 1,016,744 16,891,519 21,207,270 4.91 

2022 6.30% 16,891,519 3,640,708 0 4,401,294 150,804 1,023,903 17,004,032 21,405,326 4.86 

2023 6.30% 17,004,032 3,706,208 0 4,468,786 154,574 1,030,633 17,117,513 21,586,299 4.83 

2024 6.30% 17,117,513 3,771,708 0 4,521,583 158,439 1,037,922 17,247,122 21,768,705 4.81 

2025 6.30% 17,247,122 3,799,000 0 4,564,306 162,400 1,045,365 17,364,781 21,929,087 4.80 

2026 6.30% 17,364,781 3,799,000 0 4,591,739 166,460 1,051,713 17,457,296 22,049,035 4.80 

2027 6.80% 17,457,296 3,799,000 0 4,579,718 170,621 1,057,821 17,563,777 22,143,495 4.84 

2028 6.80% 17,563,777 3,799,000 0 4,619,183 174,887 1,147,417 17,716,125 22,335,308 4.84 

2029 6.80% 17,716,125 3,799,000 0 4,656,743 179,259 1,156,244 17,835,367 22,492,110 4.83 

2030 6.80% 17,835,367 3,799,000 0 4,679,886 183,740 1,163,348 17,934,088 22,613,974 4.83 

2031 6.80% 17,934,088 3,799,000 0 4,663,633 188,334 1,170,503 18,051,625 22,715,258 4.87 

2032 6.80% 18,051,625 3,799,000 0 4,649,337 193,042 1,178,862 18,187,107 22,836,444 4.91 

2033 6.80% 18,187,107 3,799,000 0 4,634,716 197,868 1,188,450 18,341,973 22,976,689 4.96 

2034 6.80% 18,341,973 3,799,000 0 4,565,654 202,815 1,201,356 18,573,860 23,139,514 5.07 

2035 6.80% 18,573,860 3,799,000 0 4,504,406 207,885 1,219,208 18,879,777 23,384,183 5.19 

2036 6.80% 18,879,777 3,799,000 0 4,443,925 213,082 1,242,061 19,263,830 23,707,755 5.33 

2037 6.80% 19,263,830 3,799,000 0 4,416,675 218,410 1,269,000 19,696,746 24,113,421 5.46 

2038 6.80% 19,696,746 3,799,000 0 4,349,023 223,870 1,300,744 20,223,597 24,572,620 5.65 

2039 6.80% 20,223,597 3,799,000 0 4,299,377 229,467 1,338,208 20,831,961 25,131,338 5.85 

2040 6.80% 20,831,961 3,799,000 0 4,246,815 235,203 1,381,318 21,530,261 25,777,076 6.07 

2041 6.80% 21,530,261 3,799,000 0 4,196,343 241,083 1,430,462 22,322,297 26,518,640 6.32 

2042 6.80% 22,322,297 3,799,000 0 4,149,786 247,110 1,485,830 23,210,231 27,360,017 6.59 

2043 6.80% 23,210,231 3,799,000 0 4,121,958 253,288 1,547,024 24,181,009 28,302,967 6.87 

2044 6.80% 24,181,009 3,799,000 0 4,083,224 259,620 1,614,249 25,251,413 29,334,637 7.18 

2045 6.80% 25,251,413 3,799,000 0 4,058,833 266,111 1,687,714 26,413,183 30,472,016 7.51 

2046 6.80% 26,413,183 3,799,000 0 4,052,904 272,764 1,766,706 27,653,222 31,706,126 7.82 

2047 6.80% 27,653,222 3,799,000 0 4,043,957 279,583 1,851,127 28,979,809 33,023,766 8.17 

2048 6.80% 28,979,809 3,799,000 0 4,081,219 286,572 1,939,725 30,350,743 34,431,962 8.44 

2049 6.80% 30,350,743 3,799,000 0 4,100,547 293,737 2,031,993 31,787,452 35,887,999 8.75 

* The beginning of the initial period is July 1, 2018. The information shown for the 2018 plan year is for the remaining 6 months of the initial period. 

Page 2 of 3 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 3.02 

Expected Benefit Payment Detail Reflecting Proposed Benefit Suspension 

Current Current Terminated Future New 

Plan Year Retirees/Beneficiaries Vested Current Active Entrants Total 

2018 $ 4,847,107 $ 29,685 $ 112,518 $ 0 $ 4,989,310 

2019 4,514,891 52,099 336,560 0 4,903,549 

2020 3,741,088 64,970 459,627 0 4,265,684 

2021 3,623,788 83,393 608,571 0 4,315,751 

2022 3,500,039 126,890 774,365 0 4,401,294 

2023 3,370,973 169,435 928,379 0 4,468,786 

2024 3,237,641 218,349 1,065,591 2 4,521,583 

2025 3,101,012 264,395 1,198,894 5 4,564,306 

2026 2,961,937 308,663 1,320,807 332 4,591,739 

2027 2,821,193 332,781 1,424,383 1,361 4,579,718 

2028 2,679,535 387,307 1,549,228 3,113 4,619,183 

2029 2,537,684 410,042 1,703,549 5,468 4,656,743 

2030 2,396,306 449,906 1,824,679 8,995 4,679,886 

2031 2,256,030 472,989 1,920,415 14,199 4,663,633 

2032 2,117,411 481,271 2,029,991 20,664 4,649,337 

2033 1,980,936 502,181 2,123,323 28,276 4,634,716 

2034 1,847,025 504,815 2,176,560 37,254 4,565,654 

2035 1,716,089 516,317 2,225,201 46,799 4,504,406 

2036 1,588,536 512,406 2,285,180 57,803 4,443,925 

2037 1,464,781 520,539 2,360,063 71,292 4,416,675 

2038 1,345,235 523,105 2,393,876 86,807 4,349,023 

2039 1,230,254 521,279 2,444,025 103,819 4,299,377 

2040 1,120,106 516,873 2,485,390 124,446 4,246,815 

2041 1,015,003 511,211 2,515,415 154,714 4,196,343 

2042 915,126 506,427 2,533,653 194,580 4,149,786 

2043 820,590 497,811 2,561,706 241,851 4,121,958 

2044 731,477 486,681 2,569,346 295,720 4,083,224 

2045 647,874 476,885 2,572,931 361,143 4,058,833 

2046 569,884 461,898 2,572,389 448,733 4,052,904 

2047 497,647 445,080 2,552,188 549,042 4,043,957 

2048 431,264 427,480 2,563,656 658,819 4,081,219 

2049 370,754 408,791 2,542,661 778,341 4,100,547 

* Information shown for the 2018 plan year is based upon the January 1, 2018 valuation census, without regard to actual amounts paid through June 30, 2018. 

Page 3 of 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #1 – Disability-based limitation – participant currently receiving benefits 

Participant Information 

1) Date of Birth 8/19/1957 

2) Age at end of month that includes suspension date (October 31, 2019) 62 years 2 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 44.61 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 44.61 

6) Multiplier for service prior to 2009 $85.00 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $3,791.67 

9) Total years of credited service at normal retirement age (PBGC's definition) * 27.00 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Disabled 

Joint & Survivor 

11) Form of payment for pension Annuity 

12) Contingent beneficiary continuation percentage 50% 

13) Contingent beneficiary continuation amount [(8) x (12)] $1,895.83 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(8) / (9)] $140.43 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $35.75 

16) PBGC guaranteed benefit [(9) x (15)] $965.25 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $1,061.78 

Participant Information 

18) Proposed years of credited service earned prior to 2009 35.43 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $71.00 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $2,515.25 

23) Initial proposed suspension amount [(8) - (22)] $1,276.42 

24) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(8) – (17)] $2,729.89 

25) Is 110% of PBGC guarantee restriction applicable? No 

26) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** N/A 

27) Maximum suspendable benefit [lesser of (23) and (26)] $1,276.42 

28) Months from age 80 (at suspension date), max 60; also zero if benefit is due to disability 0 

29) Applicable percentage for age based limitation [(28) / 60] 0.00% 

30) Final proposed benefit suspension [(27) x (29)] $0.00 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(8) – (30)] $3,791.67 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 1 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #2 – Disability-based limitation – contingent beneficiary of an individual currently receiving benefits 

Participant Information 

1) Date of Birth 8/19/1957 

2) Age at end of month that includes suspension date (October 31, 2019) 62 years 2 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 44.61 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 44.61 

6) Multiplier for service prior to 2009 $85.00 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $3,791.67 

9) Total years of credited service at normal retirement age (PBGC's definition) * 27.00 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Disabled 

Joint & Survivor 

11) Form of payment for pension Annuity 

12) Contingent beneficiary continuation percentage 50% 

13) Contingent beneficiary continuation amount [(8) x (12)] $1,895.83 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(13) / (9)] $70.22 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $35.75 

16) PBGC guaranteed benefit [(9) x (15)] $965.25 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $1,061.78 

Participant Information 

18) Proposed years of credited service earned prior to 2009 35.43 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $71.00 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $2,515.25 

23) Initial proposed contingent beneficiary continuation amount, reflecting suspension $1,257.63 

24) Initial proposed suspension amount [(13) - (23)] $638.21 

25) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(13) – (17)] $834.06 

26) Is 110% of PBGC guarantee restriction applicable? No 

27) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** N/A 

28) Maximum suspendable benefit [lesser of (24) and (27)] $638.21 

29) Months from age 80 (at suspension date), also zero if benefit is due to disability 0 

30) Applicable percentage for age based limitation [(29) / 60] 0.00% 

31) Final proposed benefit suspension [(28) x (30)] $0.00 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(13) –

(31)] $1,895.83 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 2 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #3 – Disability-based limitation – future retiree after Suspension Effective Date 

Participant Information 

1) Date of Birth 5/27/1970 

2) Age at end of month that includes suspension date (October 31, 2019) 49 years 5 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 12.41 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 10.79 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 23.20 

6) Multiplier for service prior to 2009 $85.00 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $1,918.24 

9) Total years of credited service at normal retirement age (PBGC's definition) * 18.39 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Active 

11) Form of payment for pension Not Retired 

12) Contingent beneficiary continuation percentage N/A 

13) Contingent beneficiary continuation amount [(8) x (12)] N/A 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(8) / (9)] $104.30 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $35.75 

16) PBGC guaranteed benefit [(9) x (15)] $657.47 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $723.22 

Participant Information 

18) Proposed years of credited service earned prior to 2009 11.84 

19) Proposed years of credited service earned after 2008 10.79 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $71.00 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $1,660.89 

23) Initial proposed suspension amount [(8) - (22)] $257.35 

24) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(8) – (17)] $1,195.03 

25) Is 110% of PBGC guarantee restriction applicable? No 

26) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** N/A 

27) Maximum suspendable benefit [lesser of (23) and (26)] $257.35 

28) Months from age 80 (at suspension date), max 60; also zero if benefit is due to disability 0 

29) Applicable percentage for age based limitation [(28) / 60] 0.00% 

30) Final proposed benefit suspension [(27) x (29)] $0.00 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(8) – (30)] $1,918.24 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 3 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #4 – Guarantee-based limitation and age-based limitation – participant currently receiving benefits 

Participant Information 

1) Date of Birth 3/13/1943 

2) Age at end of month that includes suspension date (October 31, 2019) 76 years 7 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 20.97 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 20.97 

6) Multiplier for service prior to 2009 $17.55 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $368.04 

9) Total years of credited service at normal retirement age (PBGC's definition) * 11.74 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Retired 

Joint & Survivor 

11) Form of payment for pension Annuity 

12) Contingent beneficiary continuation percentage 50% 

13) Contingent beneficiary continuation amount [(8) x (12)] $184.02 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(8) / (9)] $31.34 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $26.26 

16) PBGC guaranteed benefit [(9) x (15)] $308.37 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $339.21 

Participant Information 

18) Proposed years of credited service earned prior to 2009 18.25 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $17.55 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $320.20 

23) Initial proposed suspension amount [(8) - (22)] $47.84 

24) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(8) – (17)] $28.83 

25) Is 110% of PBGC guarantee restriction applicable? Yes 

26) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** $28.83 

27) Maximum suspendable benefit [lesser of (23) and (26)] $28.83 

28) Months from age 80 (at suspension date), max 60; also zero if benefit is due to disability 41 

29) Applicable percentage for age based limitation [(28) / 60] 68.33% 

30) Final proposed benefit suspension [(27) x (29)] $19.70 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(8) – (30)] $348.34 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 4 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #5 – Guarantee-based limitation – contingent beneficiary of an individual currently receiving benefits 

Participant Information 

1) Date of Birth 6/03/1949 

2) Age at end of month that includes suspension date (October 31, 2019) 70 years 4 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 40.63 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 40.63 

6) Multiplier for service prior to 2009 $35.90 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $1,458.73 

9) Total years of credited service at normal retirement age (PBGC's definition) * 20.24 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Retired 

Joint & Survivor 

11) Form of payment for pension Annuity 

12) Contingent beneficiary continuation percentage 50% 

13) Contingent beneficiary continuation amount [(8) x (12)] $729.37 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(13) / (9)] $36.04 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $29.78 

16) PBGC guaranteed benefit [(9) x (15)] $602.61 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $662.87 

Participant Information 

18) Proposed years of credited service earned prior to 2009 28.24 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $35.90 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $1,013.65 

23) Initial proposed contingent beneficiary continuation amount, reflecting suspension $506.83 

24) Initial proposed suspension amount [(13) - (23)] $222.54 

25) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(13) – (17)] $66.49 

26) Is 110% of PBGC guarantee restriction applicable? Yes 

27) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** $66.49 

28) Maximum suspendable benefit [lesser of (24) and (27)] $66.49 

29) Months from age 80 (at suspension date), also zero if benefit is due to disability 60 

30) Applicable percentage for age based limitation [(29) / 60] 100.00% 

31) Final proposed benefit suspension [(28) x (30)] $66.49 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(13) –

(31)] $662.87 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 5 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #6 – Guarantee-based limitation – future retiree 

Participant Information 

1) Date of Birth 4/27/1953 

2) Age at end of month that includes suspension date (October 31, 2019) 66 years 6 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 18.83 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 18.83 

6) Multiplier for service prior to 2009 $19.00 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $357.74 

9) Total years of credited service at normal retirement age (PBGC's definition) * 10.66 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Terminated Vested 

11) Form of payment for pension Not Retired 

12) Contingent beneficiary continuation percentage N/A 

13) Contingent beneficiary continuation amount [(8) x (12)] N/A 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(8) / (9)] $33.55 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $27.92 

16) PBGC guaranteed benefit [(9) x (15)] $297.68 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $327.45 

Participant Information 

18) Proposed years of credited service earned prior to 2009 14.64 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $19.00 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $278.16 

23) Initial proposed suspension amount [(8) - (22)] $79.58 

24) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(8) – (17)] $30.28 

25) Is 110% of PBGC guarantee restriction applicable? Yes 

26) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** $30.28 

27) Maximum suspendable benefit [lesser of (23) and (26)] $30.28 

28) Months from age 80 (at suspension date), max 60; also zero if benefit is due to disability 60 

29) Applicable percentage for age based limitation [(28) / 60] 100.00% 

30) Final proposed benefit suspension [(27) x (29)] $30.28 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(8) – (30)] $327.45 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 6 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #7 – Aged-based limitation – participant currently receiving benefits 

Participant Information 

1) Date of Birth 1/02/1938 

2) Age at end of month that includes suspension date (October 31, 2019) 81 years 9 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 29.11 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 29.11 

6) Multiplier for service prior to 2009 $46.40 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $1,350.74 

9) Total years of credited service at normal retirement age (PBGC's definition) * 13.00 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Retired 

11) Form of payment for pension Life Annuity 

12) Contingent beneficiary continuation percentage N/A 

13) Contingent beneficiary continuation amount [(8) x (12)] N/A 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(8) / (9)] $103.90 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $35.75 

16) PBGC guaranteed benefit [(9) x (15)] $464.75 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $511.23 

Participant Information 

18) Proposed years of credited service earned prior to 2009 18.12 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $46.40 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $840.58 

23) Initial proposed suspension amount [(8) - (22)] $510.16 

24) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(8) – (17)] $839.51 

25) Is 110% of PBGC guarantee restriction applicable? No 

26) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** N/A 

27) Maximum suspendable benefit [lesser of (23) and (26)] $510.16 

28) Months from age 80 (at suspension date), max 60; also zero if benefit is due to disability 0 

29) Applicable percentage for age based limitation [(28) / 60] 0.00% 

30) Final proposed benefit suspension [(27) x (29)] $0.00 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(8) – (30)] $1,350.74 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 7 of 8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.01 

Demonstration that limitations on individual suspensions are satisfied 

Example #8 – Aged-based and guarantee-based limitation – contingent beneficiary of an individual currently receiving benefits 

Participant Information 

1) Date of Birth 8/10/1938 

2) Age at end of month that includes suspension date (October 31, 2019) 81 years 2 months 

3) Years of credited service earned prior to 2009 at normal retirement age (plan's definition) 39.81 

4) Years of credited service earned after 2008 at normal retirement age (plan's definition) * 0.00 

5) Total years of credited service at normal retirement age (plan's definition) * [(3) + (4)] 39.81 

6) Multiplier for service prior to 2009 $46.40 

7) Multiplier for service after 2008 $80.00 

8) Total accrued benefit payable at normal retirement age * [(3) x (6) + (4) x (7)] $1,847.36 

9) Total years of credited service at normal retirement age (PBGC's definition) * 23.00 

10) Type of participant (retiree, active, terminated vested, beneficiary, disabled) Retired 

Joint & Survivor 

11) Form of payment for pension Annuity 

12) Contingent beneficiary continuation percentage 50% 

13) Contingent beneficiary continuation amount [(8) x (12)] $923.68 

Calculation of 110% of PBGC Guarantee 

14) Plan implied accrual rate [(13) / (9)] $40.16 

15) PBGC guaranteed accrual rate [100% of first $11 of (14) + 75% of (14) between $11 and $44] ** $32.87 

16) PBGC guaranteed benefit [(9) x (15)] $756.01 

17) 110% of PBGC guaranteed benefit [(16) x 110%] $831.61 

Participant Information 

18) Proposed years of credited service earned prior to 2009 30.56 

19) Proposed years of credited service earned after 2008 0.00 

20) Proposed multiplier for service prior to 2009 [lesser of $71 and (6)] $46.40 

21) Proposed multiplier for service after 2008 [lesser of $76 and (7)] $76.00 

22) Initial proposed monthly benefit, reflection suspension [(18) x (20) + (19) x (21)] $1,418.15 

23) Initial proposed contingent beneficiary continuation amount, reflecting suspension $709.08 

24) Initial proposed suspension amount [(13) - (23)] $214.60 

25) Maximum suspension allowed under the 110% of PBGC guarantee restriction [(13) – (17)] $92.07 

26) Is 110% of PBGC guarantee restriction applicable? Yes 

27) Proposed suspension amount reflecting the 110% of PBGC guarantee restriction (23) ** $92.07 

28) Maximum suspendable benefit [lesser of (24) and (27)] $92.07 

29) Months from age 80 (at suspension date), also zero if benefit is due to disability 0 

30) Applicable percentage for age based limitation [(29) / 60] 0.00% 

31) Final proposed benefit suspension [(28) x (30)] $0.00 

October 1, 2019 accrued benefit (payable at normal retirement) under Proposed Suspension [(13) –

(31)] $923.68 

* Includes assumed accruals and service through October 1, 2019 for purposes of determining the PBGC guarantee. 

** Results to these formulas were rounded in a manner to ensure the participant benefited from the rounding. 

Page 8 of 8 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.02 

Demonstration that the Proposed Suspension is Reasonably Estimated to Enable the Plan to Avoid Insolvency 

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00 Solvency Ratio Available Resources and Benefit Payments

Available Resources Benefit Payments

Page 1 of 2 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.02 

Demonstration that the Proposed Suspension is Reasonably Estimated to Enable the Plan to Avoid Insolvency 

Withdrawal 

Assumed Liability Benefit Administrative Investment Available Solvency 

Plan Year Return MVA @ BOY Contributions Payments Payments Expenses Return Resources Ratio 

2018 3.15% $ 18,312,448 $ 1,590,236 $ 0 $ 2,825,347 $ 278,010 $ 549,302 $ 20,173,976 3.95 

2019 6.30% 17,348,629 3,471,500 0 4,903,549 290,037 1,025,846 21,555,939 4.40 

2020 6.30% 16,652,390 3,509,708 0 4,265,684 143,538 1,009,568 21,028,128 4.93 

2021 6.30% 16,762,444 3,575,208 0 4,315,751 147,126 1,016,744 21,207,270 4.91 

2022 6.30% 16,891,519 3,640,708 0 4,401,294 150,804 1,023,903 21,405,326 4.86 

2023 6.30% 17,004,032 3,706,208 0 4,468,786 154,574 1,030,633 21,586,299 4.83 

2024 6.30% 17,117,513 3,771,708 0 4,521,583 158,439 1,037,922 21,768,705 4.81 

2025 6.30% 17,247,122 3,799,000 0 4,564,306 162,400 1,045,365 21,929,087 4.80 

2026 6.30% 17,364,781 3,799,000 0 4,591,739 166,460 1,051,713 22,049,035 4.80 

2027 6.80% 17,457,296 3,799,000 0 4,579,718 170,621 1,057,821 22,143,495 4.84 

2028 6.80% 17,563,777 3,799,000 0 4,619,183 174,887 1,147,417 22,335,308 4.84 

2029 6.80% 17,716,125 3,799,000 0 4,656,743 179,259 1,156,244 22,492,110 4.83 

2030 6.80% 17,835,367 3,799,000 0 4,679,886 183,740 1,163,348 22,613,974 4.83 

2031 6.80% 17,934,088 3,799,000 0 4,663,633 188,334 1,170,503 22,715,258 4.87 

2032 6.80% 18,051,625 3,799,000 0 4,649,337 193,042 1,178,862 22,836,444 4.91 

2033 6.80% 18,187,107 3,799,000 0 4,634,716 197,868 1,188,450 22,976,689 4.96 

2034 6.80% 18,341,973 3,799,000 0 4,565,654 202,815 1,201,356 23,139,514 5.07 

2035 6.80% 18,573,860 3,799,000 0 4,504,406 207,885 1,219,208 23,384,183 5.19 

2036 6.80% 18,879,777 3,799,000 0 4,443,925 213,082 1,242,061 23,707,755 5.33 

2037 6.80% 19,263,830 3,799,000 0 4,416,675 218,410 1,269,000 24,113,421 5.46 

2038 6.80% 19,696,746 3,799,000 0 4,349,023 223,870 1,300,744 24,572,620 5.65 

2039 6.80% 20,223,597 3,799,000 0 4,299,377 229,467 1,338,208 25,131,338 5.85 

2040 6.80% 20,831,961 3,799,000 0 4,246,815 235,203 1,381,318 25,777,076 6.07 

2041 6.80% 21,530,261 3,799,000 0 4,196,343 241,083 1,430,462 26,518,640 6.32 

2042 6.80% 22,322,297 3,799,000 0 4,149,786 247,110 1,485,830 27,360,017 6.59 

2043 6.80% 23,210,231 3,799,000 0 4,121,958 253,288 1,547,024 28,302,967 6.87 

2044 6.80% 24,181,009 3,799,000 0 4,083,224 259,620 1,614,249 29,334,637 7.18 

2045 6.80% 25,251,413 3,799,000 0 4,058,833 266,111 1,687,714 30,472,016 7.51 

2046 6.80% 26,413,183 3,799,000 0 4,052,904 272,764 1,766,706 31,706,126 7.82 

2047 6.80% 27,653,222 3,799,000 0 4,043,957 279,583 1,851,127 33,023,766 8.17 

2048 6.80% 28,979,809 3,799,000 0 4,081,219 286,572 1,939,725 34,431,962 8.44 

2049 6.80% 30,350,743 3,799,000 0 4,100,547 293,737 2,031,993 35,887,999 8.75 

Page 2 of 2 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.03 

Demonstration that the Prescribed Lesser Suspension is Not Reasonably Estimated to Enable the Plan to Avoid Insolvency 

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00 Solvency Ratio Available Resources and Benefit Payments

Available Resources Benefit Payments

Page 1 of 3 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.03 

Demonstration that the Prescribed Lesser Suspension is Not Reasonably Estimated to Enable the Plan to Avoid Insolvency 

Assumed Withdrawal Benefit Administrative Investment Available Solvency 

Plan Year Return MVA @ BOY Contributions Liability Payments Payments Expenses Return Resources Ratio 

2018 3.15% $ 18,312,448 $ 1,590,236 $ 0 $ 2,825,347 $ 278,010 $ 549,302 $ 20,173,976 3.95 

2019 6.30% 17,348,629 3,471,500 0 4,885,143 290,037 1,026,474 21,556,567 4.41 

2020 6.30% 16,671,424 3,509,708 0 4,337,538 143,538 1,008,316 21,045,910 4.85 

2021 6.30% 16,708,372 3,575,208 0 4,390,613 147,126 1,010,782 21,147,236 4.82 

2022 6.30% 16,756,623 3,640,708 0 4,480,315 150,804 1,012,708 21,259,235 4.75 

2023 6.30% 16,778,920 3,706,208 0 4,551,505 154,574 1,013,628 21,344,182 4.69 

2024 6.30% 16,792,677 3,771,708 0 4,607,511 158,439 1,014,525 21,420,472 4.65 

2025 6.30% 16,812,961 3,799,000 0 4,653,165 162,400 1,014,980 21,464,541 4.61 

2026 6.30% 16,811,376 3,799,000 0 4,683,162 166,460 1,013,729 21,457,646 4.58 

2027 6.80% 16,774,484 3,799,000 0 4,672,575 170,621 1,011,635 21,414,497 4.58 

2028 6.80% 16,741,922 3,799,000 0 4,714,818 174,887 1,088,008 21,454,044 4.55 

2029 6.80% 16,739,226 3,799,000 0 4,754,867 179,259 1,086,201 21,445,168 4.51 

2030 6.80% 16,690,301 3,799,000 0 4,780,210 183,740 1,081,788 21,387,348 4.47 

2031 6.80% 16,607,138 3,799,000 0 4,764,937 188,334 1,076,540 21,294,345 4.47 

2032 6.80% 16,529,408 3,799,000 0 4,751,447 193,042 1,071,591 21,206,956 4.46 

2033 6.80% 16,455,509 3,799,000 0 4,737,719 197,868 1,066,907 21,123,548 4.46 

2034 6.80% 16,385,829 3,799,000 0 4,667,937 202,815 1,064,571 21,046,585 4.51 

2035 6.80% 16,378,648 3,799,000 0 4,606,029 207,885 1,066,191 21,035,954 4.57 

2036 6.80% 16,429,925 3,799,000 0 4,544,725 213,082 1,071,759 21,087,601 4.64 

2037 6.80% 16,542,876 3,799,000 0 4,517,414 218,410 1,080,264 21,203,731 4.69 

2038 6.80% 16,686,317 3,799,000 0 4,448,538 223,870 1,092,369 21,353,816 4.80 

2039 6.80% 16,905,278 3,799,000 0 4,398,042 229,467 1,108,928 21,583,739 4.91 

2040 6.80% 17,185,697 3,799,000 0 4,344,415 235,203 1,129,777 21,879,271 5.04 

2041 6.80% 17,534,856 3,799,000 0 4,292,812 241,083 1,155,221 22,247,994 5.18 

2042 6.80% 17,955,182 3,799,000 0 4,245,117 247,110 1,185,355 22,692,427 5.35 

2043 6.80% 18,447,310 3,799,000 0 4,216,432 253,288 1,219,666 23,212,688 5.51 

2044 6.80% 18,996,256 3,799,000 0 4,176,583 259,620 1,258,247 23,793,882 5.70 

2045 6.80% 19,617,299 3,799,000 0 4,151,325 266,111 1,301,187 24,451,375 5.89 

2046 6.80% 20,300,050 3,799,000 0 4,144,851 272,764 1,347,627 25,173,914 6.07 

2047 6.80% 21,029,063 3,799,000 0 4,135,259 279,583 1,397,321 25,945,801 6.27 

2048 6.80% 21,810,542 3,799,000 0 4,172,840 286,572 1,448,840 26,771,810 6.42 

2049 6.80% 22,598,970 3,799,000 0 4,192,136 293,737 1,501,499 27,605,732 6.59 

Page 2 of 3 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.03 

Demonstration that the Prescribed Lesser Suspension is Not Reasonably Estimated to Enable the Plan to Avoid Insolvency 

Assumed Withdrawal Benefit Administrative Investment Available Solvency 

Plan Year Return MVA @ BOY Contributions Liability Payments Payments Expenses Return Resources Ratio 

2050 6.80% 23,413,596 3,799,000 0 4,234,134 301,080 1,555,097 28,466,613 6.72 

2051 6.80% 24,232,479 3,799,000 0 4,306,605 308,607 1,607,855 29,330,727 6.81 

2052 6.80% 25,024,122 3,799,000 0 4,388,916 316,322 1,658,393 30,165,193 6.87 

2053 6.80% 25,776,277 3,799,000 0 4,491,697 324,230 1,705,485 30,956,532 6.89 

2054 6.80% 26,464,835 3,799,000 0 4,583,656 332,336 1,748,644 31,680,143 6.91 

2055 6.80% 27,096,487 3,799,000 0 4,701,583 340,644 1,786,970 32,341,813 6.88 

2056 6.80% 27,640,230 3,799,000 0 4,831,220 349,160 1,818,880 32,908,949 6.81 

2057 6.80% 28,077,729 3,799,000 0 4,970,516 357,889 1,843,203 33,362,043 6.71 

2058 6.80% 28,391,527 3,799,000 0 5,104,161 366,837 1,859,314 33,683,004 6.60 

2059 6.80% 28,578,843 3,799,000 0 5,208,426 376,008 1,867,899 33,869,734 6.50 

2060 6.80% 28,661,308 3,799,000 0 5,336,080 385,408 1,868,485 33,943,386 6.36 

2061 6.80% 28,607,306 3,799,000 0 5,464,496 395,043 1,859,756 33,871,019 6.20 

2062 6.80% 28,406,523 3,799,000 0 5,562,738 404,919 1,842,148 33,642,751 6.05 

2063 6.80% 28,080,013 3,799,000 0 5,657,889 415,042 1,816,097 33,280,068 5.88 

2064 6.80% 27,622,179 3,799,000 0 5,753,596 425,418 1,781,086 32,776,847 5.70 

2065 6.80% 27,023,251 3,799,000 0 5,844,147 436,054 1,736,662 32,122,860 5.50 

2066 6.80% 26,278,713 3,799,000 0 5,934,138 446,955 1,682,348 31,313,106 5.28 

2067 6.80% 25,378,968 3,799,000 0 6,022,952 458,129 1,617,514 30,337,353 5.04 

2068 6.80% 24,314,401 3,799,000 0 6,107,773 469,582 1,541,610 29,185,429 4.78 

2069 6.80% 23,077,656 3,799,000 0 6,193,709 481,322 1,453,947 27,849,281 4.50 

2070 6.80% 21,655,572 3,799,000 0 6,279,065 493,355 1,353,692 26,314,910 4.19 

2071 6.80% 20,035,845 3,799,000 0 6,361,780 505,688 1,240,084 24,569,240 3.86 

2072 6.80% 18,207,460 3,799,000 0 6,441,410 518,331 1,112,391 22,600,521 3.51 

2073 6.80% 16,159,111 3,799,000 0 6,521,678 531,289 969,707 20,396,529 3.13 

2074 6.80% 13,874,851 3,799,000 0 6,600,056 544,571 811,038 17,940,318 2.72 

2075 6.80% 11,340,262 3,799,000 0 6,675,218 558,185 635,455 15,216,531 2.28 

2076 6.80% 8,541,313 3,799,000 0 6,748,677 572,140 441,946 12,210,119 1.81 

2077 6.80% 5,461,442 3,799,000 0 6,819,285 586,444 229,428 8,903,427 1.31 

2078 6.80% 2,084,142 3,799,000 0 6,889,071 601,105 (3,297) 5,278,740 0.77 

2079 6.80% (1,610,332) 

Page 3 of 3 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.04 

Demonstration that the Proposed Benefit Suspension is Distributed Equitably 

Section 4.04(1)(a) Average Average Monthly Average Monthly Aggregate Present

Participant Age at Benefit Before Benefit After Value of Redution in 

Participant Groups defined under 2.02(4) of Rev. Proc. 2017-43 Count 10/1/2019 Suspension Suspension Benefits at 1/1/2018

Active with pre-2009 service only, average hrs < 1400 0 0 0 0 0

Active with pre-2009 service only, average hrs 1400-1800 0 0 0 0 0

Active with pre-2009 service only, average hrs 1800+ 0 0 0 0 0

Active with service pre-2009 and post-2008, average hrs < 1400 60 49 1,815 1,502 1,187,140

Active with service pre-2009 and post-2008, average hrs 1400-1800 46 51 2,787 2,131 2,166,357

Active with service pre-2009 and post-2008, average hrs 1800+ 10 51 3,767 2,609 802,152

Active with post-2008 service only 58 34 478 454 29,627

Total Active Participants 174 45 1,739 1,383 1,038,050

Terminated Vested with pre-2009 service only, average hrs < 1400 27 55 831 656 383,328

Terminated Vested with pre-2009 service only, average hrs 1400-1800 25 57 1,587 1,095 981,728

Terminated Vested with pre-2009 service only, average hrs 1800+ 0 0 0 0 0

Terminated Vested with service pre-2009 and post-2008, average hrs < 1400 6 51 1,220 991 59,346

Terminated Vested with service pre-2009 and post-2008, average hrs 1400-1800 7 43 1,490 1,101 122,409

Terminated Vested with service pre-2009 and post-2008, average hrs 1800+ 2 43 1,390 985 24,802

Terminated Vested with post-2008 service only 1 44 640 608 790

Total Terminated Vested Participants 68 54 1,225 902 531,712

Disabled with pre-2009 service only, average hrs < 1400 6 79 1,411 1,226 0

Disabled with pre-2009 service only, average hrs 1400-1800 11 76 2,613 1,931 0

Disabled with pre-2009 service only, average hrs 1800+ 1 70 4,157 1,732 0

Disabled with service pre-2009 and post-2008, average hrs < 1400 5 57 1,972 1,542 0

Disabled with service pre-2009 and post-2008, average hrs 1400-1800 2 58 2,644 1,787 0

Disabled with service pre-2009 and post-2008, average hrs 1800+ 0 0 0 0 0

Disabled with post-2008 service only 0 0 0 0 0

Total Disabled Participants 25 71 2,261 1,664 0

Retiree with pre-2009 service only, average hrs < 1400 10 74 1,716 1,300 431,596

Retiree with pre-2009 service only, average hrs 1400-1800 43 76 2,596 1,838 2,301,643

Retiree with pre-2009 service only, average hrs 1800+ 21 79 2,222 1,624 741,380

Retiree with service pre-2009 and post-2008, average hrs < 1400 17 65 2,121 1,605 944,466

Retiree with service pre-2009 and post-2008, average hrs 1400-1800 14 66 3,803 2,592 1,922,151

Retiree with service pre-2009 and post-2008, average hrs 1800+ 7 66 4,580 2,917 1,417,957

Retiree with post-2008 service only 0 0 0 0 0

Total Retired Participants 112 73 2,650 1,876 1,533,458

Beneficiary with pre-2009 service only, average hrs < 1400 12 83 1,386 1,177 43,044

Beneficiary with pre-2009 service only, average hrs 1400-1800 10 84 1,488 1,217 1,224

Beneficiary with pre-2009 service only, average hrs 1800+ 8 84 2,004 1,773 0

Beneficiary with service pre-2009 and post-2008, average hrs < 1400 1 57 1,178 727 54,044

Beneficiary with service pre-2009 and post-2008, average hrs 1400-1800 0 0 0 0 0

Beneficiary with service pre-2009 and post-2008, average hrs 1800+ 0 0 0 0 0

Beneficiary with post-2008 service only 0 0 0 0 0

Total Beneficiaries 31 83 1,572 1,329 18,800

Alternate Payees with pre-2009 service only, average hrs < 1400 2 75 334 242 0

Alternate Payees with pre-2009 service only, average hrs 1400-1800 1 75 189 113 1,475

Alternate Payees with pre-2009 service only, average hrs 1800+ 3 71 1,385 1,062 96,116

Alternate Payees with service pre-2009 and post-2008, average hrs < 1400 0 0 0 0 0

Alternate Payees with service pre-2009 and post-2008, average hrs 1400-1800 0 0 0 0 0

Alternate Payees with service pre-2009 and post-2008, average hrs 1800+ 0 0 0 0 0

Alternate Payees with post-2008 service only 0 0 0 0 0

Total Alternate Payees 6 73 835 630 48,304

Page 1 of 2 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.04 

Demonstration that the Proposed Benefit Suspension is Distributed Equitably 

Section 4.04(1)(b) > 0% and > 10% and > 20% and > 30% and > 40% and > 50% and > 60% and

Participant Groups treatments defined under 2.02(4) of Rev. Proc. 2017-43 0% <= 10% <= 20% <= 30% <= 40% <= 50% <= 60% <= 70% Total

Active with pre-2009 service only, average pre-2009 hrs < 1400 0 0 0 0 0 0 0 0 0

Active with pre-2009 service only, average pre-2009 hrs 1400-1800 0 0 0 0 0 0 0 0 0

Active with pre-2009 service only, average pre-2009 hrs 1800+ 0 0 0 0 0 0 0 0 0

Active with service pre-2009 and post-2008, average pre-2009 hrs < 1400 1 9 39 11 0 0 0 0 60

Active with service pre-2009 and post-2008, average pre-2009 hrs 1400-1800 0 0 13 31 2 0 0 0 46

Active with service pre-2009 and post-2008, average pre-2009 hrs 1800+ 0 0 1 3 6 0 0 0 10

Active with post-2008 service only 0 58 0 0 0 0 0 0 58

Total Active Participants 1 67 53 45 8 0 0 0 174

Terminated Vested with pre-2009 service only, average pre-2009 hrs < 1400 0 7 7 8 5 0 0 0 27

Terminated Vested with pre-2009 service only, average pre-2009 hrs 1400-1800 0 0 5 8 12 0 0 0 25

Terminated Vested with pre-2009 service only, average pre-2009 hrs 1800+ 0 0 0 0 0 0 0 0 0

Terminated Vested with service pre-2009 and post-2008, average pre-2009 hrs < 1400 0 1 3 2 0 0 0 0 6

Terminated Vested with service pre-2009 and post-2008, average pre-2009 hrs 1400-1800 0 0 0 6 1 0 0 0 7

Terminated Vested with service pre-2009 and post-2008, average pre-2009 hrs 1800+ 0 0 0 1 1 0 0 0 2

Terminated Vested with post-2008 service only 0 1 0 0 0 0 0 0 1

Total Terminated Vested Participants 0 9 15 25 19 0 0 0 68

Disabled with pre-2009 service only, average pre-2009 hrs < 1400 0 4 0 2 0 0 0 0 6

Disabled with pre-2009 service only, average pre-2009 hrs 1400-1800 0 1 6 0 1 2 1 0 11

Disabled with pre-2009 service only, average pre-2009 hrs 1800+ 0 0 0 0 0 0 1 0 1

Disabled with service pre-2009 and post-2008, average pre-2009 hrs < 1400 0 0 3 2 0 0 0 0 5

Disabled with service pre-2009 and post-2008, average pre-2009 hrs 1400-1800 0 0 0 1 1 0 0 0 2

Disabled with service pre-2009 and post-2008, average pre-2009 hrs 1800+ 0 0 0 0 0 0 0 0 0

Disabled with post-2008 service only 0 0 0 0 0 0 0 0 0

Total Disabled Participants 0 5 9 5 2 2 2 0 25

Retiree with pre-2009 service only, average pre-2009 hrs < 1400 0 1 3 3 2 0 0 1 10

Retiree with pre-2009 service only, average pre-2009 hrs 1400-1800 0 6 11 5 19 1 1 0 43

Retiree with pre-2009 service only, average pre-2009 hrs 1800+ 2 2 5 4 5 2 1 0 21

Retiree with service pre-2009 and post-2008, average pre-2009 hrs < 1400 0 2 3 10 2 0 0 0 17

Retiree with service pre-2009 and post-2008, average pre-2009 hrs 1400-1800 0 0 1 3 9 1 0 0 14

Retiree with service pre-2009 and post-2008, average pre-2009 hrs 1800+ 0 0 0 0 6 1 0 0 7

Retiree with post-2008 service only 0 0 0 0 0 0 0 0 0

Total Retired Participants 2 11 23 25 43 5 2 1 112

Beneficiary with pre-2009 service only, average pre-2009 hrs < 1400 4 4 1 1 1 1 0 0 12

Beneficiary with pre-2009 service only, average pre-2009 hrs 1400-1800 0 4 4 0 1 0 0 1 10

Beneficiary with pre-2009 service only, average pre-2009 hrs 1800+ 1 2 4 1 0 0 0 0 8

Beneficiary with service pre-2009 and post-2008, average pre-2009 hrs < 1400 0 0 0 0 1 0 0 0 1

Beneficiary with service pre-2009 and post-2008, average pre-2009 hrs 1400-1800 0 0 0 0 0 0 0 0 0

Beneficiary with service pre-2009 and post-2008, average pre-2009 hrs 1800+ 0 0 0 0 0 0 0 0 0

Beneficiary with post-2008 service only 0 0 0 0 0 0 0 0 0

Total Beneficiaries 5 10 9 2 3 1 0 1 31

Alternate Payees with pre-2009 service only, average pre-2009 hrs < 1400 0 1 0 1 0 0 0 0 2

Alternate Payees with pre-2009 service only, average pre-2009 hrs 1400-1800 0 0 0 0 0 1 0 0 1

Alternate Payees with pre-2009 service only, average pre-2009 hrs 1800+ 1 0 0 0 1 1 0 0 3

Alternate Payees with service pre-2009 and post-2008, average pre-2009 hrs < 1400 0 0 0 0 0 0 0 0 0

Alternate Payees with service pre-2009 and post-2008, average pre-2009 hrs 1400-1800 0 0 0 0 0 0 0 0 0

Alternate Payees with service pre-2009 and post-2008, average pre-2009 hrs 1800+ 0 0 0 0 0 0 0 0 0

Alternate Payees with post-2008 service only 0 0 0 0 0 0 0 0 0

Total Alternate Payees 1 1 0 1 1 2 0 0 6

Total 9 103 109 103 76 10 4 2 416

Page 2 of 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

NOTICE OF APPLICATION FOR APPROVAL OF A 

PROPOSED REDUCTION OF BENEFITS 

NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS 

On September 28, 2018, the Board of Trustees of the I.B.E.W. Local Union No. 237 Pension Plan 

(“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 (MPRA). 

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 payments.7 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 2027, based on the Plan’s 2018 Pension Protection Act

certification. This estimate is based on how much money the 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 is not expected to 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 Guaranty Corporation (“PBGC”) will be paid. You can find the amount of your 

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

7 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. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

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. 

 Benefits of people who have qualified for a Disability Pension (as defined under the Plan) 

cannot be reduced. 

 The benefits of people who are at least 80 years old on September 30, 2019 and their 

beneficiaries cannot be reduced. 

 The benefits of people who are at least 75 years old on September 30, 2019 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. 

In deciding whether the proposed reduction is spread fairly, the Board of Trustees took into 

account the following: 

 Age and life expectancy of Plan participants. 

 Status in the Plan (active, terminated vested, retired). 

 Amount of benefits provided by the Plan. 

 History of benefit increases and reductions. 

 Historical contribution rates. 

 Discrepancies between benefits provided to active and retired participants. 

 Likelihood of active participants to support the Plan, which is needed to for survival of the 

Plan and, consequently, the local Union Electrical industry. 

4. What are the proposed reductions in benefits? 

This proposed plan is called the MPRA Recovery Plan. 

The Board has committed to increased contribution levels should the Treasury Department 

approve the application and the membership vote to approve the benefit suspension. 

Contribution increases will be at least $0.25 per hour for each of calendar years 2020 through 

2024. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

Additionally, the Board of Trustees proposes the following reduction of benefits: 

 For Plan Years (January 1 to December 31) from 1976 through 2008, Pension Service 

credits will be limited to a maximum of 1.4 credits in a year. This is the same as the service 

limit that exists currently for Plan Years from 2009 and later. So all Plan Years from 1976 

and later will be treated with the same service limit. 

 The benefit multiplier for Pension Service credits earned up through 2008 will be limited 

to $71. This is a reduction from the current benefit level of $85 per Pension Service credit. 

Members who retired or had a break in service that resulted in a benefit multiplier of less 

than $71 will have their currently applicable multiplier remain in place. 

 The benefit multiplier for Pension Service credits earned in 2009 and later will be reduced 

to $76. This is a reduction from the current benefit level of $80 per service credit. 

 In no situation will the above changes result in a benefit of less than 110% of the PBGC 

guaranteed benefit for each affected participant. 

 No category or group will be treated differently for the purpose of the benefit reduction, 

except for the following: 

- Disability pension benefits are not reduced. 

- Benefits for participants who have reached age 80 by October 1, 2019 are not 

reduced. 

- Benefits for participants between ages 75 and 80 on October 1, 2019 will have 

their reduction applied in partially as required. 

The proposed reduction in benefits will remain in effect indefinitely. 

The proposed changes are expected to keep the Plan from running out of money. 

These changes in benefit structure will be apply to all participants in the same way. There are 

no different categories or groups of participants that will have a different set of benefits. But 

because every participant has their own work history, these changes will impact each participant 

differently. To help you understand the impact each of the proposed reductions will have on 

you, we have designated the following 7 categories based upon the pre-suspension benefit 

accrual formula: 

 Category 1 – Participants with service before 2009 only, with average hours per year of 

less than 1400 

 Category 2 – Participants with service before 2009 only, with average hours per year 

between 1400 and 1800 

 Category 3 – Participants with service before 2009 only, with average hours per year of 

at least 1800 

 Category 4 – Participants with service both and after 2009, with average hours per year 

of less than 1400 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

 Category 5 – Participants with service both before and after 2009, with average hours per 

year between 1400 and 1800 

 Category 6 – Participants with service both before and after 2009, with average hours per 

year of at least 1800 

 Category 7 – Participants with service after 2008 only 

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 May 11, 2019 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 of 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 a benefit reduction 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 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

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 30 days: 

 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

summary 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 reduction, 

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 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. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

 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 

copying 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.dol.gov/ebsa/5500main.html. Some of the documents also may be available for 

examination, without charge, at the Plan administrator’s office, your worksite 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 have the calculation 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 notice is wrong, 

please contact the Plan office at: 

I.B.E.W. Local Union #237 Funds Office 

L.P.O. Box 120 

8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Tel (716)297-3899 Fax (716)297-8471 

ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[DISABLED RETIREE] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $2,517.28 This is your current monthly benefit. 

Proposed Benefit under 

MPRA Recovery Plan 

$2,517.28 Because you are receiving a disability pension, your monthy benefit would 

not change under the MPRA Recovery Plan. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$ 849.83 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $2,517.28 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $ 849.83 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 28.6200 years of service credit by the end of 2008 under the Plan. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 67 years and 9 months 

Disability Benefit $2,517.28 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT OVER AGE 80] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $1,670.90 This is your current monthly benefit. 

Proposed Benefit under 

MPRA Recovery Plan 

$1,670.90 Because you will be at least age 80 on October 31, 2019, your monthly 

benefit would not change under the MPRA Recovery Plan. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$ 676.44 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $1,670.90 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $ 676.44 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 27.1928 years of service credit by the end of 2008 under the Plan. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 86 years and 6 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT BETWEEN AGES 75 AND 80] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $4,325.60 This is your current monthly benefit. 

Proposed Benefit under 

MPRA Recovery Plan 

$3,651.73 This is your estimated monthly benefit under the MPRA Recovery Plan, 

beginning on October 1, 2019. Because you will be 34 months younger than 

age 80 on October 31, 2019, your benefit is partially protected under MPRA. 

Only 57% (34/60 months) of the proposed reduction can be applied to your 

current monthly benefit. 

Note: This is not a final benefit calculation. This is an estimate of the effect 

of the proposed reduction on your Plan benefit. The estimate assumes the 

proposed benefit reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$ 939.84 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $4,325.60 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $ 939.84 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 51.5335 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 44.7341 years of service credit. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 77 years and 1 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT UNDER AGE 75] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $4,409.65 This is your current monthly benefit. 

Proposed Benefit under 

MPRA Recovery Plan 

$2,880.76 This is your estimated monthly benefit under the MPRA Recovery Plan, 

beginning on October 1, 2019. 

Note: This is not a final benefit calculation. This is an estimate of the effect 

of the proposed reduction on your Plan benefit. The estimate assumes the 

proposed benefit reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$1,125.56 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $4,409.65 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $1,125.56 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 61.0332 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 47.7342 years of service credit. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 67 years and 11 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT WITH CURRENT BENEFIT LESS THAN 110% OF PBGC GUARANTEE] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $ 194.92 This is your current monthly benefit. 

Proposed Benefit under $ 194.92 This is your estimated monthly benefit under the MPRA Recovery Plan, 

MPRA Recovery Plan beginning on October 1, 2019. 

Note: Without the protections provided through MPRA, your benefit under 

the MPRA Recovery Plan is calculated at $ 179.85. However, under MPRA 

your reduced benefit cannot be lower than 110% of the PBGC guaranteed 

benefit (noted below but not higher than your current benefit); therefore, 

your reduction is limited to $ 194.92. 

Note: This is not a final benefit calculation. This is an estimate of the effect 

of the proposed reduction on your Plan benefit. The estimate assumes the 

proposed benefit reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$ 179.45 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $ 194.92 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $ 179.45 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 23.9361 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 20.4005 years of service credit. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 71 years and 1 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT WITH SUSPENSION LIMITED TO 110% OF PBGC GUARANTEE] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $ 429.34 This is your current monthly benefit. 

Proposed Benefit under $ 396.55 This is your estimated monthly benefit under the MPRA Recovery Plan, 

MPRA Recovery Plan beginning on October 1, 2019. 

Note: Without the protections provided through MPRA, your benefit under 

the MPRA Recovery Plan is calculated at $ 332.87. However, under MPRA 

your reduced benefit cannot be lower than 110% of the PBGC guaranteed 

benefit (noted below but not higher than your current benefit); therefore, 

your reduction is limited to $ 396.55. 

Note: This is not a final benefit calculation. This is an estimate of the effect 

of the proposed reduction on your Plan benefit. The estimate assumes the 

proposed benefit reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$ 360.50 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $ 429.34 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $ 360.50 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 28.2463 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 21.8993 years of service credit. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 73 years and 2 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT BEFORE AGE 62 WITH LEVEL INCOME OPTION] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $3,996.94 This is your current monthly benefit. 

Proposed Benefit under $2,993.38 This is your estimated monthly benefit under the MPRA Recovery Plan, 

MPRA Recovery Plan beginning on October 1, 2019. . This reflects your election of a Level Income 

Option. If you are younger than age 62 at the time of suspension, your 

benefit will be further reduced in accordance with the form of payment. 

Note: This is not a final benefit calculation. This is an estimate of the effect 

of the proposed reduction on your Plan benefit. The estimate assumes the 

proposed benefit reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$1,162.65 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $3,996.94 

until the earlier of your age 62 or if the Plan runs out of money. Then you 

will receive the estimated PBGC guaranteed benefit of $1,162.65 

thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 41.4567 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 35.2796 years of service credit. 

- Post08 Credits You earned 6.4280 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 61 years and 1 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[IN PAYMENT AFTER AGE 62 WITH LEVEL INCOME OPTION] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 Description 

Current Plan $3,478.69 This is your current monthly benefit. 

Proposed Benefit under 

MPRA Recovery Plan 

$2,203.42 This is your estimated monthly benefit under the MPRA Recovery Plan, 

beginning on October 1, 2019. . This reflects your election of a Level Income 

Option. If you are younger than age 62 at the time of suspension, your 

benefit will be further reduced in accordance with the form of payment. 

Note: This is not a final benefit calculation. This is an estimate of the effect 

of the proposed reduction on your Plan benefit. The estimate assumes the 

proposed benefit reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$1,001.74 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will receive $3,478.69 

until the Plan runs out of money. Then you will receive the estimated PBGC 

guaranteed benefit of $1,001.74 thereafter. 

The PBGC benefit applies if the Plan does not have enough money to pay 

benefits. However, your PBGC guaranteed benefit may be significantly less 

if the PBGC runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 51.1448 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 38.7832 years of service credit. 

- Post08 Credits You earned 0.0000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 70 years and 3 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

[NOT IN PAYMENT] 

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

[Participant’s Name]

[Address] 

[City], [State] [Zip] 

Benefit 

Estimated 

Benefit as of 

January 1, 2018 

Projected 

Benefit as of 

October 1, 2019 Description 

Current Plan $5,064.80 $5,288.80 These are your estimated current and projected monthly 

benefits under the current plan if you start to receive 

benefits on or after your Normal Retirement Date in the 

form of a Single Life Annuity. 

Proposed Benefit 

under 

MPRA Recovery Plan 

$3,514.03 $3,726.83 This is your estimated monthly benefit under the MPRA 

Recovery Plan, beginning on October 1, 2019. 

Note: This is not a final benefit calculation. This is an 

estimate of the effect of the proposed reduction on your 

Plan benefit. The estimate assumes the proposed benefit 

reduction is effective on October 1, 2019. If the benefit 

reduction starts later, the effect of the proposed 

reduction on your benefit might be different. 

The proposed reduction is permanent. 

Pension Benefit 

Guaranty Corporation 

(PBGC) 

$1,251.25 $1,322.75 This is your estimated benefit guaranteed by the PBGC. 

Note: Without the proposed benefit reduction, you will 

receive $5,064.80 until the Plan runs out of money. Then 

you will receive the estimated PBGC guaranteed benefit 

of $1,251.25 thereafter. 

The PBGC benefit applies if the Plan does not have 

enough money to pay benefits. However, your PBGC 

guaranteed benefit may be significantly less if the PBGC 

runs out of money itself. 

The above estimates are based on the following information from Plan records: 

Factor Description 

Service Credits 

- Pre08 Credits You earned 47.7271 years of service credit by the end of 2008 under the Plan. 

This is proposed to reduce to 36.0060 years of service credit. 

- Post08 Credits You earned 12.6000 years of service credit after 2008 under the Plan. 

Your Age on October 31, 2019 55 years and 4 months 

Disability Benefit $ 0.00 - This is the portion of you benefit that is based on disability 

Contact the Fund Office if you have a question about the factors used to determine your Plan benefit. 

Phone: (716)297-3899 

Mail: I.B.E.W. Local Union #237 Funds Office, L.P.O. Box 120, 8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Email: ibew237funds@yahoo.com 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.05b 

Employers with an Obligation to Contribute 

Employer Address City State Zipcode 

7 Gens LLC 12587 Route 438 Irving NY 14081 

AC Lighting Protection PO Box 127 Westpoint NB 68788 

Ahlstrom Schaeffer Electric 46 Hopkins Avenue Jamestown NY 14701 

American Rated Cable & Communications 790 E. Delavan Avenue Buffalo NY 14215 

Bethany Techologies Company LLC 7072 E. Bethany-Leroy Rd Leroy NY 14482 

Billitier Electric, Inc. 790 Brooks Avenue Rochester NY 14619 

BN Systems, Inc. P.O. Box 347 Orchard Park NY 14127 

Bridge Utility Construction Company 211 Courtwright Street Fort Erie Ontario, CA L2A2R9 

Buffalo Security & Fire P.O. Box 823 Buffalo NY 14207 

Callea Electric 40 Ajax Road Rochester NY 14624 

Catco Electric Contractors 1266 Townline Road Alden NY 14004 

Cellectric Electrical Corporation 14 Corporate Circle, East Syracuse NY 13057 

PO Box 160 

CIR Electric 400 Ingham Avenue Lackawanna NY 14218 

Clarkson Electrical Contractors, Inc. 2730 Colby Street Brockport NY 14420 

Concord Electric Corp. 705 Maple Street Rochester NY 14611 

Connors-Haas Inc. 6337 Dean Parkway Ontario NY 14519 

Control Network Communications 16 Jupiter Lane, Suite 7 Albany NY 12205 

Cupertino Electric, Inc. 1132 North Seventh Street San Jose CA 95112-4427 

DGI Electrical Services Inc. 978 Upper Mountain Road Lewiston NY 14092 

D. Jones Electric 8565 Roll Road Clarence Ctr NY 14032 

Deltex 220 Elk Street Buffalo NY 14210 

Dave Rulli Electric 2944 Linwood Avenue Niagara Falls NY 14301 

Donahue Control Company 11834 Westwood Road Alden NY 14004 

East Coast Electric 546 Lyell Avenue Rochester NY 14606 

ELDU Energy Services Corporation 165 North Water Street Rochester NY 14604 

Electrical Builders Inc. 2720 1 1/2 Street Sourth Saint Cloud MN 56301 

Electri-Comm Installation & Service 3900 Broadway Cheektowaga NY 14227 

Electrical Corporation of America 7320 Arlington Avenue, Raytown MO 64133 

PO Box 18070 

Electrical Service & Systems Installation 35 Lee Street Buffalo NY 14201 

EZ Electric 4812 West Pea Ridge Road Huntington WV 25705 

Fal-Ken Electric 3306 Dry Brook Road Falconer NY 14733 

Falls Electric 626- 67th Street Niagara Falls NY 14304 

Ferguson Electric 333 Ellicott Street Buffalo NY 14203 

Fredrock Electric, Inc. PO Box 257 Niagara Falls NY 14305 

Frey Electric Construction Company 100 Pearce Avenue Tonawanda NY 14150 

Goodwin Electric 201 South Youngs Road Williamsville NY 14221 

Hatzel & Buehler, Inc. 3600 Silverside Rd, Wilmington DE 19803 

PO Box 7499 

Page 1 of 3 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.05b 

Employers with an Obligation to Contribute (continued) 

Employer Address City State Zipcode 

HMT Inc. P.O. Box 1957 Cicero NY 13039 

Hoot LLC 25 Short Street, Lockport NY 14095 

PO Box 428 

Industrial Power & Lighting Corporation 60 Depot Street Buffalo NY 14206 

J&E Electric 2116 Ellis Drive, Auburn NY 13021 

PO Box 624 

Kaplan Schmidt 50 Saginaw Drive Rochester NY 14623 

KAP Electrical & Industrial, Inc. P.O. Box 2023 Williamsville NY 14231 

KW Electric 5950 Diller Road Sanborn NY 14132 

Kyle Lawrence Electric 101 Hyde Parkway Palmyra NY 14522 

LMC Industrial 2060 Lakeville Road Avon NY 14414 

Lacur Electric 201 South Youngs Road Williamsville NY 14221 

Lauper Electric 357 Davis Street Elmira NY 14901 

Liberty Electric Company LLC 1843 Liberty Drive Williamsport PA 17701 

Marinucci Electric 8020 Ashwood Drive Niagara Falls NY 14304 

M&M ELECTRIC 4819 Henry Avenue Niagara Falls NY 14304 

Matco Electric Corp 320 North Jensen Road Vestal NY 13850 

Metro Electric 100 Atlantic Avenue Sloan NY 14212 

Michels Corporation P.O. Box 128 Brownsville WI 53006 

John Mills Electric, Inc. P.O. Box 2068 Elmira Heights NY 14903 

MJM Electric 453 Richmond Avenue Buffalo NY 14222 

Modern Tech Design & Service Inc 485 Michigan Avenue Buffalo NY 14203 

Network Wiring Solutions 100 Pearce Avenue Tonawanda NY 14150 

New Dawn Electrical Corp. 2294 Genesee Street Cheektowaga NY 14227 

Northeastern Electrical 53 Regency Oak Blvd, Ste 3 Rochester NY 14624 

Northline Utilities 15 School Lane, Ausable Forks NY 12912 

PO Box 656 

O'Connell Electric 830 Phillips Road Victor NY 14564 

OS Electric 397 Cottonwood Drive Williamsville NY 14221 

PISA Electric PO Box 85 Fredonia NY 14063 

Point to Point Networking 1 Griffin Brook Drive Methuen MA 1844 

Rath Electric 3525 Roosevelt Highway Hamlin NY 14464 

Sargent Electric PO Box 30 Pittsburgh PA 15230 

Schuler-Haas Electric Corp 240 Commerce Drive Rochester NY 14263 

Signorelli Electric 671-69th Street Niagara Falls NY 14304 

South Buffalo Electric 1250 Broadway Street Sloan NY 14212 

Slifco Electric LLC 1904 Woodslee Drive Troy MI 48083 

State Group Industrial Limited (USA) 13800 N. Highway 57 Evansville IN 47725 

Suburban Electric of Albion, Inc. 225 E. Bank Street Albion NY 14411 

Superior Electric Great Lakes 264 Executive Drive Troy MI 48083 

Suttles Electrical Contracting 960 Eggert Road Amherst NY 14226 

T&J Electrical Associates LLC 5 Fairchild Square Clifton Park NY 12065 

Page 2 of 3 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 4.05b 

Employers with an Obligation to Contribute (continued) 

Employer 

Twin City Electric 

Union Lighting Protection Installers 

West Electric 

Address 

1868 Niagara Falls Blvd, 

Ste 311 

5800 Milo Road 

3304 Colleen Terrace 

City 

Tonawanda 

Dayton 

Sanborn 

State 

NY 

OH 

NY 

Zipcode 

14150 

45414 

14132 

Westphal & Company Inc. 

Weydman Electric 

14 Marsh Court, PO Box 

7428 

747 Young Street 

Madison 

Tonawanda 

WI 

NY 

53707 

14150 

Page 3 of 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

BALLOT ON THE PROPOSED REDUCTION OF BENEFITS FOR THE 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

The proposed reduction of benefits under the I.B.E.W. Local Union No. 237 Pension Plan (the 

"Plan") is explained in a notice to you dated September 28, 2018. The notice detailed the 

proposed benefit reductions pursuant to the Multiemployer Pension Reform Act of 2014 (MPRA), 

which would take effect on October 1, 2019 if the Application was approved by the Department 

of Treasury. On [date], the proposed reduction was approved by the Secretary of the Treasury, 

in consultation with the Pension Benefit Guaranty Corporation (the "PBGC") and the Secretary of 

Labor. It is now time to vote on the proposed suspension. The following information is intended 

to assist you as you consider whether to vote for or against the suspension. 

The ballot includes the following information: 

 Information about the MPRA Recovery Plan 

 The proposed reduction’s impact on your benefits

 Factors considered by the Trustees in preparing the MPRA Recovery Plan 

 Important information on what happens now that the MPRA Recovery Plan has been 

approved by the Treasury 

Information about the MPRA Recovery Plan 

The Pension Benefit Reduction and Recovery Plan is scheduled to go into effect on October 1, 

2019 and stay in place indefinitely. The Board of Trustees proposed the following reduction to 

your benefits: 

The Board has committed to increased contribution levels should the Treasury Department 

approve the application and the membership vote to approve the benefit suspension. 

Contribution increases will be at least $0.25 per hour for each of 2020 through 2024. 

Additionally, the Board of Trustees proposes the following reduction of benefits: 

 For Plan Years (January 1 to December 31) from 1976 through 2008, Pension Service 

credits will be limited to a maximum of 1.4 credits in a year. This is the same as the service 

limit that exists currently for Plan Years from 2009 and later. So all Plan Years from 1976 

and later will be treated with the same service limit. 

 The benefit multiplier for Pension Service credits earned up through 2008 will be limited 

to $71. This is a reduction from the current benefit level of $85 per Pension Service credit. 

Members who retired or had a break in service that resulted in a benefit multiplier of less 

than $71 will have their currently applicable multiplier remain in place. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

 The benefit multiplier for service credits earned in 2009 and later will be reduced to $76. 

This is a reduction from the current benefit level of $80 per service credit. 

 In no situation will the above changes result in a benefit of less than 110% of the PBGC 

guaranteed benefit for each affected participant. 

 No category or group will be treated differently for the purpose of the benefit reduction, 

except for the following: 

- Disability pension benefits are not reduced. 

- Benefits for participants who have reached age 80 by October 1, 2019 are not 

reduced. 

- Benefits for participants between ages 75 and 80 on October 1, 2019 will have 

their reduction applied in partially as required. 

The effect of the suspension on your benefit is shown on the statement delivered with this ballot. 

Factors considered by Trustees 

Federal law requires that any reduction of benefits under a suspension plan be distributed fairly 

among the various categories or groups of participants and beneficiaries under the Plan. In 

deciding whether the proposed reduction would be distributed fairly under the Plan, the Board 

of Trustees took into account the following factors: 

 Age and life expectancy of Plan participants. 

 Status in the Plan (active, terminated vested, retired). 

 Amount of benefits provided by the Plan. 

 History of benefit increases and reductions. 

 Historical contribution rates. 

 Discrepancies between benefits provided to active and retired participants. 

 Likelihood of active participants to support the Plan, which is needed to for survival of the 

Plan and, consequently, the local Union Electrical industry. 

The Plan’s Trustees support the proposed reduction, because you will receive a larger benefit 

than if the Fund became insolvent and ran out of money. 

Taking into account the proposed reduction of benefits, the Fund's actuary has certified that 

insolvency will be avoided. Although not certain, it represents the actuary's best projection 

based on all available data. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

What happens next? 

If the proposed reduction is rejected by the majority of voters, the 2018 PPA Certification 

indicated the Plan is expected to become insolvent during the 2027 Plan Year. Based on the 

updated assumptions and information we are using to demonstrate the actions taken to avoid 

insolvency, the revised projected insolvency is during the 2028 Plan Year. The projected 

insolvency date is determined using certain assumptions that are reasonably expected to occur 

in the future, but not guaranteed. For example, higher than expected investment returns may 

postpone the insolvency date past 2028, but lower than expected investment returns may bring 

an earlier insolvency date. 

If the Plan becomes insolvent, the PBGC will step in and provide the Plan with financial assistance 

and continue paying a portion of your benefits. As illustrated in the individual benefit statements, 

this is capped at a maximum guaranteed amount that is significantly less than the current benefit 

for most participants. The PBGC does not take into account your age or status as a disabled 

participant in making these adjustments to your benefit. 

The ability of the Plan to receive financial assistance from the PBGC upon insolvency is also based 

upon the financial stability of the PBGC. In a recent report, the PBGC projected that its 

Multiemployer Plan Program would fully exhaust its own assets within ten years, possibly 

becoming insolvent before the Plan’s projected insolvency date. 

In the event that the Plan and the PBGC both become insolvent, participants and beneficiaries in 

pay status would be at risk of receiving benefits that would be dramatically lower than benefits 

otherwise paid in the case of the Plan’s insolvency. If both the Plan and the PBGC Multiemployer 

Program become insolvent, your benefits could be reduced to almost zero. 
 

 

 

 

 

 

 

I.B.E.W. LOCAL UNION NO. 237 PENSION PLAN 

The proposed reduction will go into effect on October 1, 2019 unless a majority of all eligible 

voters reject it. Not voting by the deadline is the same as approving the proposed reduction. 

To register your vote, please check one of the two boxes below, sign and print your name, date 

this ballot, and return the completed ballot to Board of Trustees, by [insert appropriate date]. 

☐ I approve the suspension of benefits. 

☐ I reject the suspension of benefits. 

Signed 

Name (Printed) 

Last four of SSN 

Date 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.03 

Actuarial Assumptions Used for Projections 

This 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. The three parts of this Exhibit correspond to the subsections of Section 6.03 of Revenue 

Procedure 2017-43. 

Part 1 - Actuarial assumptions and methods used for projections. 

Provided is information regarding specific actuarial assumptions (per Revenue Procedure 2017-43) used 

in the cash flow projections included in the application, with the exception of the projections included in 

Exhibit 3.01 and Exhibit 7.10. The differences in the assumptions used for Exhibit 3.01 and Exhibit 7.10 are 

addressed in Part 3 of this Exhibit. 

Investment returns 

 Net investment return for deterministic projections: 

o Assumed investment return of 12.52% for the 2017 calendar year 

o Assumed investment return of 3.68% for the 2018 calendar year 

o 6.30% per year during calendar years 2019-2027 and 7.30% per year during calendar years 

2028 and later 

 Assumptions used for stochastic projections (if applicable): Not applicable 

Mortality assumptions 

 Healthy Lives: Society of Actuaries (SOA) baseline 2006 Headcount-weighted table with Blue Collar 

adjustment, gender distinct, with separate rates for pre-commencement and postcommencement. Mortality improvement: MP-2017 projection scale beginning in 2006. 

 Disabled Lives: SOA baseline 2006 Headcount-weighted disabled retiree mortality, gender distinct. 

Mortality improvement: MP-2017 projection scale beginning in 2006. 

Other demographic assumptions 

 The complete list of disability, withdrawal, and retirement decrement rates is included as Exhibit 

6.03-1 

Page 1 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumptions regarding form and commencement age of benefits 

 Form of payment election assumptions: 

o For active and terminated vested participants at retirement: 

 45% of all participants elect the straight life annuity 

 40% of all participants elect the 50% joint and survivor annuity 

 5% of all participants elect the 75% joint and survivor annuity 

 10% of all participants elect the 100% joint and survivor annuity 

o For active and terminated vested participants at disablement: 

 50% of all participants elect the straight life annuity 

 30% of all participants elect the 50% joint and survivor annuity 

 20% of all participants elect the 100% 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 are included in Exhibit 6.03-1. 

 Assumptions regarding the probability of benefit commencement by age for participants who have 

become disabled or who are assumed to become disabled in the future are included in Exhibit 

6.03-1. 

New entrant profile 

 The following is a description of the composition of the new hire profile, including the weights 

applicable to each assumed age of entry: 

o The new hire profile is comprised of the 66 participants who were either first reported as 

plan participants or reported as participants returning to work during plan years 2009-

2018, grouped down to 11 records by accrued benefit, age and sex, weighted as follows: 

Accrued Benefit = 0 Accrued Benefit > 0 

Age Male Female Male Female 

>20 0 1 0 0 

20-24 51 0 0 0 

25-29 3 0 0 0 

30-34 8 0 0 0 

35-39 0 0 1 0 

40-44 2 0 0 0 

45+ 0 0 0 0 

Assumptions regarding missing or incomplete data 

 Assumption regarding terminated vested participants beyond normal retirement age who, 

because they have not commenced receiving benefit payments, could be considered missing: 

None. All such participants are included for valuation and cash flow projection purposes. 

 Assumptions to fill in other missing data: 

o Spouses of active male/female participants assumed to be 3 years younger/older than the 

participant. 

o There are no other missing or incomplete data that would be considered material. 

Page 2 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution rates 

 An effective hourly contribution rate, reflecting non-reciprocated and net-reciprocated hours, of 

$13.25 per hour according to the CBA and rehabilitation plan in place. The Trustees have indicated 

that they will, upon approval of the MPRA Application and affirmative vote by the membership, 

amend the Rehabilitation Plan to include a $0.25 per year contribution increase for each of 2020 

through 2024. The resulting 2024 contribution rate of $14.50 is assumed to continue thereafter 

without further increase. The tentative increases are used for projection purposes. 

Contribution base units 

 Contribution base units for projection purposes are equal to hours worked in covered 

employment, including both non-reciprocated and net reciprocated hours. 

 For purposes of calculating future Normal Costs, the assumption regarding number of hours 

associated with each active participant is the average of hours for the three years prior to the 

valuation date; however, only years for which the participant was active in the plan are used in the 

averaging. Each active participant’s average number of contribution base units is then adjusted to 

reflect the total expected number of contribution base units for the plan year versus the number 

of contribution base units reported for the given year. 

 For purposes of calculating future employer contributions, it is assumed that 262,000 contribution 

base units (hours) will be worked for the current and all future plan years. 

Withdrawal liability payments 

 There are no current and no assumed future withdrawal liability payments. 

Administrative expenses 

 Administrative expenses, expressed as of the beginning of the year, are assumed to be prior year 

non-investment related expenses, and increasing by 2.5% for inflation each year thereafter. It is 

also expected that an additional $300,000 in 2018 and $150,000 in 2019 will be incurred. 

Administrative expenses are expected to return to the inflation adjusted 2017 amounts. 

Projection methodology 

 A description of any approximation or data grouping techniques that were used: Grouping was 

used on the new entrants file as indicated above. No other approximation or grouping techniques 

were used. 

 A description of any changes to the cash flow projections that would normally be provided by the 

actuarial software, including both changes to the programming that affect the results generated 

by the software and modifications to the results generated by the software: None 

Page 3 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part 2 - Supporting documentation for selection of certain assumptions 

Investment Returns 

 The assumed investment return of 6.30% over the short-term (2018 through 2027) is based upon 

advice of the Fund’s investment consultant reflecting the asset allocation of the Fund. Details on

the expected allocation and 10 year return expectation are attached as Exhibit 6.03-2. 

o This rate falls within the range of reasonable long-term assumptions provided in a national 

survey of investment consultants. 

o The rate is also close to an assumption developed using current risk free rates and a 

building block approach consistent with Actuarial Standards of Practice. 

 The assumed investment return of 6.80% over the long-term (2028 and later) is based upon advice 

of the Fund’s investment consultant reflecting the asset allocation of the Fund. Details on the 

expected allocation and 20 year return expectation are attached as Exhibit 6.03-2. 

o This rate falls within the range of reasonable long-term assumptions provided in a national 

survey of investment consultants. 

o The rate is also close to an assumption developed using current risk free rates and a 

building block approach consistent with Actuarial Standards of Practice. 

 The target portfolio is comprised of the following, as detailed in the Fund’s Investment Policy

Statement: 

Asset Class Allocation 

o US Equity – Large Cap 35.8% 

o US Equity – Small/Mid Cap 4.0% 

o Non-US Equity – Developed 9.1% 

o Non-US Equity – Emerging 2.1% 

o US Corporate Bonds – Core 0.0% 

o US Corporate Bonds – Long Duration 0.0% 

o US Corporate Bonds – High Yield 0.0% 

o Non-US Debt – Developed 22.0% 

o Non-US Debt – Emerging 0.0% 

o US Treasuries (Cash Equiv.) 0.0% 

o TIPS (Inflation Protected) 0.0% 

o Real Estate 12.0% 

o Hedge Funds 15.0% 

o Commodities 0.0% 

o Infrastructure 0.0% 

o Private Equity 0.0% 

o Total 100.0% 

 The target portfolio is approximately the same allocation as the current portfolio of Fund assets. 

 The mix of assets is expected to remain the same over time. Minor variances that will occur over 

time but are assumed to rebalance regularly to maintain allocations close to the target allocation. 

Page 4 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographic experience 

 Provide any study of the plan’s demographic experience performed over the last ten years. 

o Attached as Exhibit 6.03-3 are the results of the retirement rates experience study. 

o Attached as Exhibit 6.03-3 are the results of the withdrawal rates experience study. 

o Attached as Exhibit 6.03-3 are the results of the disability rates experience study. 

o Attached as Exhibit 6.03-4 are the results of the form of payment experience study. 

 Provide any liability gain or loss analysis performed over the last ten years. If the gain or loss 

analysis is by source, provide the results by source. 

o No liability gain or loss analysis by demographic assumption has been performed. Cowden 

Associates, Inc. has been retained as the actuary starting with the work for the 2017 

Valuation. 

 The percentage of the plan population that is married: According to data provided by the plan 

administrator, of the participants reported with a marriage status, 65% were married and 35% 

were either single or divorced. 

 Distribution of each optional form of benefit selected at retirement and disablement for the last 

five years: Please see Exhibit 6.03-4 

 Retirement rates by age for benefit commencements during the last 5 years, separately for active 

and terminated vested participants: Please see Exhibit 6.03-3. 

Mortality assumptions 

 The assumed mortality rates used for Healthy Participants are those from the RPH-2014 Blue Collar 

sex-distinct tables as issued by the Society of Actuaries (available at 

https://www.soa.org/experience-studies/2014/research-2014-rp/). 

 Description of the process that was used to construct the mortality rates based on experience 

study data and the rationale for selecting that process: See the RP-2014 Mortality Tables Report. 

 The assumed mortality improvement rates are those published in the SOA MP-2017 improvement 

scale. These mortality improvement rates are applied to the mortality rates starting with the 2006 

year. 

Page 5 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution base units and employer withdrawals 

 For each year starting with the 2009 plan year, Exhibit 6.03-6 provides a table of employers that 

contributed 5% or more of the annual contributions to the plan. The exhibit includes the number 

of contribution base units, the average contribution rate, and the total contribution for each such 

employer. 

 The historical trends experienced by the plan with respect to contribution base units and 

contribution rates is documented in several sections within the application, including Sections 

5.01(II), 5.02(1)(e), 5.02(3), 5.02(4), and 6.04. 

 The assumption of 262,000 hours worked (contribution base units) has been developed by 

reviewing several years of recent plan years of data. Total plan year contributions net of 

reciprocity was divided by the contribution rate to determine an approximate equivalent number 

of hours worked within IBEW Local 237’s jurisdiction. Trustees have advised that this looks to

produce a reasonable expectation of the amount of contributions to the plan during the current 

and future plan years. 

 Contribution rates are assumed to remain constant at the current collectively bargained rate of 

$13.25 effective May 28, 2018. The Trustees have expressed their commitment to amending the 

Rehabilitation Plan for contribution increases should the Treasury approve this Application and 

the Union membership vote to approve the suspension. The Trustees have indicated their intent 

to increase contributions by $0.25 effective June 1 in 2020 through 2024. Contribution rates for 

projections are assumed to increase according to the indicated intent of the Trustees. 

 The Plan has not had an employer withdrawal within, at least, any of the last 5 years. Since the 

Plan is a Construction Industry Plan, we have assumed that there will not be any future 

withdrawals. 

Take-up rate with respect to selection of benefit/contribution schedules 

 Description of the plan’s experience for take-up of each benefit/contribution schedule made 

available to bargaining units under the rehabilitation plan: Not applicable as only one schedule is 

available to employers. 

Projection methodology 

 No Approximation techniques were utilized in any of the projections. 

 There were no changes to the cash flow projections that would normally be generated by the 

actuarial software, including both changes to the programming that affect the results generated 

by the software and modifications to the results generated by the software. 

Page 6 of 15 
 

 

 

 

 

Part 3 – Additional disclosures relating to use of different assumptions 

 Deterministic projections: See Exhibit 6.03-5 for differences. Assumptions listed in italics 

correspond with assumptions used in section 3.01 and assumptions not in italics correspond with 

assumptions used in section 4.02(1) 

 Stochastic projections: Not applicable. 

Page 7 of 15 
 

 

 

Exhibit 6.03-1 

Decrement Tables 

Age

Disability 

Incidence*

Withdrawal 

Incidence Service < 5 Service >= 5 Service < 5 Service >= 5

15 0.000693 0.0435 - - - -

16 0.000693 0.0435 - - - -

17 0.000693 0.0435 - - - -

18 0.000693 0.0435 - - - -

19 0.000700 0.0435 - - - -

20 0.000709 0.0435 - - - -

21 0.000719 0.0435 - - - -

22 0.000731 0.0435 - - - -

23 0.000744 0.0435 - - - -

24 0.000760 0.0435 - - - -

25 0.000779 0.0373 - - - -

26 0.000800 0.0373 - - - -

27 0.000825 0.0373 - - - -

28 0.000853 0.0373 - - - -

29 0.000886 0.0373 - - - -

30 0.000925 0.0531 - - - -

31 0.000970 0.0531 - - - -

32 0.001022 0.0531 - - - -

33 0.001082 0.0531 - - - -

34 0.001152 0.0531 - - - -

35 0.001233 0.0471 - - - -

36 0.001327 0.0471 - - - -

37 0.001437 0.0471 - - - -

38 0.001564 0.0471 - - - -

39 0.001711 0.0471 - - - -

40 0.001882 0.0368 - - - -

41 0.002080 0.0368 - - - -

42 0.002311 0.0368 - - - -

43 0.002578 0.0368 - - - -

44 0.002888 0.0368 - - - -

45 0.003248 0.0442 - - - -

46 0.003665 0.0442 - - - -

47 0.004150 0.0442 - - - -

48 0.004712 0.0442 - - - -

49 0.005365 0.0442 - - - -

50 0.006122 0.0386 - - - -

51 0.007001 0.0386 - - - -

52 0.008021 0.0386 - - - -

53 0.009205 0.0386 - - - -

54 0.010579 0.0386 - - - -

55 0.012173 - 0.15 - 0.25 - 

56 0.014023 - 0.10 - - -

57 0.016171 - 0.10 - - -

58 0.018663 - 0.05 - - -

59 0.021554 - 0.40 - - -

60 0.024910 - 0.25 - 0.50 - 

61 0.028805 - 0.30 - - -

62 - - 0.75 - 0.25 - 

63 - - 1.00 - - -

64 - - 1.00 - - -

65 - - 1.00 1.00 1.00 1.00

*1973 Disability Model, Transactions of Society of Actuaries XXVI

Retirement Incidence 

from Active status

Retirement Incidence 

from terminated status

Page 8 of 15 
 

 

 

Exhibit 6.03-2 

Investment Return Assumption Documentation 

Page 9 of 15 
 

 

 

Exhibit 6.03-3 

Experience Review - Decrements 

Exposures Exposures

Age Count Count Observed Rate New Rate Age Count Count Observed Rate New Rate

55 53 8 15% 15% 55 26 4 15% 15%

56 41 4 10% 10% 56 20 1 5% 10%

57 35 4 11% 10% 57 18 2 11% 10%

58 27 2 7% 5% 58 14 1 7% 5%

59 21 6 29% 40% 59 10 4 40% 40%

60 13 3 23% 25% 60 6 1 17% 25%

61 7 2 29% 30% 61 5 2 40% 30%

62 4 3 75% 75% 62 2 2 100% 75%

63 1 1 100% 100% 63 1 1 100% 100%

64 0 0 0% 100% 64 0 0 0% 100%

65 0 0 0% 100% 65 0 0 0% 100%

66 0 0 0% 100% 66 0 0 0% 100%

67 0 0 0% 100% 67 0 0 0% 100%

68 0 0 0% 100% 68 0 0 0% 100%

69 0 0 0% 100% 69 0 0 0% 100%

 70+ 0 0 0% 100% 70+ 0 0 0% 100%

Retirement Experience for Active participants from 2014-2018

Actual Experience Actual Experience

Retirement Experience for Active participants from 2008-2018

Exposures Exposures

Age Count Count Observed Rate New Rate Age Count Count Observed Rate New Rate

55 29 4 14% 15% 55 16 1 6% 25%

56 23 2 9% 10% 56 18 0 0% 0%

57 21 2 10% 10% 57 15 0 0% 0%

58 16 1 6% 5% 58 12 0 0% 0%

59 12 5 42% 40% 59 7 1 14% 0%

60 10 2 20% 25% 60 8 0 0% 50%

61 5 2 40% 30% 61 5 0 0% 0%

62 3 2 67% 75% 62 5 1 20% 25%

63 1 1 100% 100% 63 4 0 0% 0%

64 0 0 0% 100% 64 3 0 0% 0%

65 0 0 0% 100% 65 1 0 0% 100%

66 0 0 0% 100% 66 1 0 0% 100%

67 0 0 0% 100% 67 0 0 0% 100%

68 0 0 0% 100% 68 0 0 0% 100%

69 0 0 0% 100% 69 0 0 0% 100%

 70+ 0 0 0% 100% 70+ 0 0 0% 100%

Actual Experience

Retirement Experience for Active participants from 2013-2018 Retirement Experience for Terminated participants from 2013-2018

Actual Experience Exposures Exposures

Age Count Count Observed Rate New Rate Age Count Count Observed Rate

<25 46 2 4.35% 4.35% <25 0 0 0.00%

25-29 161 6 3.73% 3.73% 25-29 46 0 0.00%

30-34 245 13 5.31% 5.31% 30-34 161 0 0.00%

35-39 255 12 4.71% 4.71% 35-39 245 0 0.00%

40-44 299 11 3.68% 3.68% 40-44 255 0 0.00%

45-49 339 15 4.42% 4.42% 45-49 299 0 0.00%

50-54 311 12 3.86% 3.86% 50-54 339 1 0.29%

55-59 5 0 0.00% 100% 55-59 311 2 0.64%

60-64 4 0 0.00% 100% 60-64 182 4 0.00%

65+ 2 1 0.00% 100% 65+ 29 0 0.00%

<Total> 1667 72 0.00% 100% <Total> 2 0 0.00%

Withdrawal Experience for Active participants from 2008-2018

Actual Experience

Disability Experience for Active participants from 2008-2018

Actual Experience

Page 10 of 15 
 

 

 

 

Exhibit 6.03-4 

Experience Review – Payment Form Election 

Form of Payment

Number 

Electing

Percentage 

Electing

Election 

Assumption

Life Annuity 10 43.5% 45%

Joint and 50% Survivor 7 30.4% 40%

Joint and 50% Survivor w/ Popup 0 0.0% 0%

Joint and 75% Survivor 1 4.3% 5%

Joint and 75% Survivor w/ Popup 0 0.0% 0%

Joint and 100% Survivor 3 13.0% 10%

Joint and 100% Survivor w/ Popup 0 0.0% 0%

Level Income 2 8.7% 0%

23 100% 100%

Form of Payment

Number 

Electing

Percentage 

Electing

Election 

Assumption

Life Annuity 3 100.0% 50%

Joint and 50% Survivor 0 0.0% 30%

Joint and 50% Survivor w/ Popup 0 0.0% 0%

Joint and 75% Survivor 0 0.0% 0%

Joint and 75% Survivor w/ Popup 0 0.0% 0%

Joint and 100% Survivor 0 0.0% 20%

Joint and 100% Survivor w/ Popup 0 0.0% 0%

Level Income 0 0.0% 0%

3 100% 100%

Retirement Decrement Election

Disability Decrement Election

Level income payment option is considered an accelerated form of payment and is not permitted under 

§432(f)(2)(A)(i). 

Page 11 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 6.03-5 

Disclosures relating to use of different Assumptions 

Mortality Healthy: Society of Actuaries (SOA) baseline 2006 Headcount-weighted table 

with Blue Collar adjustment, gender distinct, with separate rates for 

pre-commencement and post-commencement. Mortality 

improvement: MP-2017 projection scale beginning in 2006. 

Disabled: SOA baseline 2006 Headcount-weighted disabled retiree mortality, 

gender distinct. Mortality improvement: MP-2017 projection scale 

beginning in 2006. 

Healthy: RP-2014 Combined Healthy Blue Collar Headcount Weighted Mortality 

Table, with fully generational projection using scale MP-2015 

Disabled: RP-2014 Disabled Retiree Headcount Weighted Mortality Table, with 

fully generational projection using scale MP-2015 

Interest Rate Net investment return for deterministic projections: 

 Assumed investment return of 12.52% for the 2017 calendar year 

 Assumed investment return of 3.68% for the 2018 calendar year 

 6.30% per year during calendar years 2019-2027 and 6.80% per year during 

calendar years 2028 and later 

7.00% 

Turnover Age Rate 

<25 4.35% 

25-29 3.73% 

30-34 5.31% 

35-39 4.71% 

40-44 3.68% 

45-49 4.42% 

50-54 3.86% 

55+ 100% 

None 

Page 12 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 6.03-5 

Disclosures relating to use of different Assumptions 

Retirement Based on age and service as follows: 

If Active If Terminated 

Service Service Service Service 3.01 

Age < 5 >= 5 < 5 >= 5 Rates 

55 - 0.15 - 0.25 0.10 

56 - 0.10 - - 0.05 

57 - 0.10 - - 0.05 

58 - 0.05 - - 0.20 

59 - 0.40 - - 0.10 

60 - 0.25 - 0.50 0.75 

61 - 0.30 - - 0.25 

62 - 0.75 - 0.25 0.25 

63 - 1.00 - - 0.25 

64 - 1.00 - - 0.25 

65 1.00 1.00 1.00 1.00 1.00 

Expenses Administrative expenses, expressed as of the beginning of the year, are assumed to 

be prior year non-investment related expenses, and increasing by 2.5% for inflation 

each year thereafter. It is also expected that an additional $300,000 in 2018 and 

$150,000 in 2019 will be incurred. Administrative expenses are expected to return 

to the inflation adjusted 2017 amounts. 

The normal cost is increased by $110,000 for non-investment related expenses. 

Percent 65% of the participants are assumed to be married with the female spouse three 

Married years younger than the male spouse. 

80% of the participants are assumed to be married with the female spouse three 

years younger than the male spouse. 

Payment Form For active and terminated vested participants at retirement: 

Election  45% of all participants elect the straight life annuity 

 40% of all participants elect the 50% joint and survivor annuity 

 5% of all participants elect the 75% joint and survivor annuity 

 10% of all participants elect the 100% joint and survivor annuity 

For active and terminated vested participants at disablement: 

 50% of all participants elect the straight life annuity 

 30% of all participants elect the 50% joint and survivor annuity 

 20% of all participants elect the 100% joint and survivor annuity 

100% of participants were assumed to elect the straight life annuity 

Page 13 of 15 
 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 6.03-5 

Disclosures relating to use of different Assumptions 

Incomplete 

Data 

None. 

Beneficiary date of birth is missing for one participant. The beneficiary is assumed to 

be three years younger than the participant. 

Contribution 

Rates 

An effective hourly contribution rate, reflecting non-reciprocated and netreciprocated hours, of $13.25 per hour according to the CBA and rehabilitation plan 

in place. The Trustees have indicated that they will, upon approval of the MPRA 

Application and affirmative vote by the membership, amend the Rehabilitation Plan 

to include a $0.25 per year contribution increase for each of 2020 through 2024. The 

resulting 2024 contribution rate of $14.50 is assumed to continue thereafter without 

further increase. The tentative increases are used for projection purposes. 

An effective hourly contribution rate of $12.75 per hour according to the CBA and 

rehabilitation plan in place. 

Page 14 of 15 
 

Exhibit 6.03-6 

Average Average

Number of Contribution Total Number of Contribution Total

Employer CBUs Rate Contributions Employer CBUs Rate Contributions

2009

Ferguson Electric 99,594 $8.30 $826,630 2014

Frey Electric 41,943 $8.30 $348,128 Ferguson Electric 107,637 $11.25 $1,210,918

CIR Electric 32,817 $8.30 $272,381 Frey Electric 63,198 $11.25 $710,977

Industrial Power and Lighting 24,048 $8.30 $199,601 CIR Electric 47,781 $11.25 $537,531

Cupertino Electric 82,751 $11.25 $930,954

2010

Cupertino Electric 82,906 $9.05 $750,296

Ferguson Electric 58,655 $9.05 $530,829 Ferguson Electric 106,240 $11.75 $1,248,324

Frey Electric 28,495 $9.05 $257,878 Frey Electric 25,234 $11.75 $296,503

Weydman Electric 30,729 $9.05 $278,093 CIR Electric 39,885 $11.75 $468,654

CIR Electric 24,413 $9.05 $220,934 Cupertino Electric 15,806 $11.75 $185,720

O'Connell Electric 17,534 $9.05 $158,680 O'Connell Electric 15,476 $11.75 $181,839

2011

Ferguson Electric 45,634 $9.55 $435,803 Ferguson Electric 83,748 $12.25 $1,025,911

O'Connell Electric 35,855 $9.55 $342,420 Frey Electric 31,739 $12.25 $388,806

Frey Electric 34,483 $9.55 $329,316 CIR Electric 55,167 $12.25 $675,801

Weydman Electric 28,810 $9.55 $275,137 Industrial Power & Lighting 15,507 $12.25 $189,963

CIR Electric 25,594 $9.55 $244,419 O'Connell Electric 18,379 $12.25 $225,145

Industrial Power & Lighting 20,633 $9.55 $197,047 The State Group Industrial 12,708 $12.25 $155,679

2012

Ferguson Electric 98,549 $10.05 $990,415 Ferguson Electric 63,479 $12.75 $809,343

CIR Electric 38,389 $10.05 $385,805 Frey Electric 26,198 $12.75 $334,019

Frey Electric 20,376 $10.05 $204,777 CIR Electric 71,511 $12.75 $911,769

Industrial Power & Lighting 13,771 $12.75 $175,579

2013 O'Connell Electric 14,867 $12.75 $189,556

Ferguson Electric 103,529 $10.55 $1,092,235 Suburban Electric 12,086 $12.75 $154,093

Frey Electric 77,026 $10.55 $812,622

CIR Electric 56,953 $10.55 $600,852

2015

2016

2017

Page 15 of 15 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.04 

Ten-Year Experience for Certain Critical Assumptions 

Total Effective Average Withdrawal Rate of 

Total Contribution Contribution contribution liability return on 

Year Contributions Base Units Rate rates payments plan assets 

2008 $1,934,376 267,147 $7.24 $7.50 $0 (19.5%) 

2009 1,942,642 246,242 7.89 8.30 0 10.4% 

2010 2,404,309 275,108 8.74 9.05 0 9.6% 

2011 2,280,479 248,708 9.17 9.55 0 (3.7%) 

2012 2,075,728 213,354 9.73 10.05 0 8.9% 

2013 2,811,957 279,014 10.08 10.55 0 11.6% 

2014 3,739,668 293,208 12.75 11.25 0 4.4% 

2015 2,773,727 243,669 11.38 11.75 0 4.5% 

2016 3,098,866 270,980 11.44 12.25 0 7.2% 

2017 2,981,401 246,750 12.08 12.75 0 12.4% 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #1 – 1% lower assumed investment return 

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00 Solvency Ratio Available Resources and Benefit Payments

Available Resources Benefit Payments

Page 1 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #1 – 1% lower assumed investment return 

Plan Year Available Resources Benefit Payments Solvency Ratio 

2018 $ 22,911,099 $ 5,103,159 4.49 

2019 21,555,938 4,903,549 4.40 

2020 20,855,036 4,265,684 4.89 

2021 20,854,660 4,315,751 4.83 

2022 20,862,473 4,401,294 4.74 

2023 20,841,911 4,468,786 4.66 

2024 20,810,965 4,521,583 4.60 

2025 20,745,458 4,564,306 4.55 

2026 20,626,288 4,591,739 4.49 

2027 20,467,888 4,579,718 4.47 

2028 20,383,268 4,619,183 4.41 

2029 20,246,639 4,656,743 4.35 

2030 20,056,668 4,679,886 4.29 

2031 19,826,913 4,663,633 4.25 

2032 19,596,739 4,649,337 4.21 

2033 19,363,929 4,634,716 4.18 

2034 19,130,557 4,565,654 4.19 

2035 18,954,023 4,504,406 4.21 

2036 18,829,160 4,443,925 4.24 

2037 18,756,790 4,416,675 4.25 

2038 18,705,997 4,349,023 4.30 

2039 18,720,159 4,299,377 4.35 

2040 18,783,871 4,246,815 4.42 

2041 18,902,879 4,196,343 4.50 

2042 19,077,876 4,149,786 4.60 

2043 19,307,099 4,121,958 4.68 

2044 19,574,034 4,083,224 4.79 

2045 19,891,767 4,058,833 4.90 

2046 20,247,152 4,052,904 5.00 

2047 20,622,695 4,043,957 5.10 

2048 21,020,892 4,081,219 5.15 

2049 21,394,438 4,100,547 5.22 

Page 2 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #2 – 2% lower assumed investment return 

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00 Solvency Ratio Available Resources and Benefit Payments

Available Resources Benefit Payments

Page 3 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #2 – 2% lower assumed investment return 

Plan Year Available Resources Benefit Payments Solvency Ratio 

2018 $ 22,911,099 $ 5,103,159 4.49 

2019 21,555,938 4,903,549 4.40 

2020 20,681,946 4,265,684 4.85 

2021 20,505,513 4,315,751 4.75 

2022 20,330,284 4,401,294 4.62 

2023 20,119,504 4,468,786 4.50 

2024 19,891,039 4,521,583 4.40 

2025 19,620,425 4,564,306 4.30 

2026 19,288,331 4,591,739 4.20 

2027 18,909,169 4,579,718 4.13 

2028 18,587,386 4,619,183 4.02 

2029 18,203,864 4,656,743 3.91 

2030 17,756,696 4,679,886 3.79 

2031 17,259,402 4,663,633 3.70 

2032 16,751,033 4,649,337 3.60 

2033 16,228,876 4,634,716 3.50 

2034 15,694,493 4,565,654 3.44 

2035 15,204,433 4,504,406 3.38 

2036 14,752,403 4,443,925 3.32 

2037 14,338,057 4,416,675 3.25 

2038 13,929,423 4,349,023 3.20 

2039 13,568,682 4,299,377 3.16 

2040 13,239,058 4,246,815 3.12 

2041 12,944,900 4,196,343 3.08 

2042 12,685,404 4,149,786 3.06 

2043 12,457,248 4,121,958 3.02 

2044 12,242,375 4,083,224 3.00 

2045 12,052,263 4,058,833 2.97 

2046 11,872,083 4,052,904 2.93 

2047 11,682,735 4,043,957 2.89 

2048 11,485,089 4,081,219 2.81 

2049 11,230,375 4,100,547 2.74 

Page 4 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #3 – 0.88% annual decrease in hours worked (contribution base units) 

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00 Solvency Ratio Available Resources and Benefit Payments

Available Resources Benefit Payments

Page 5 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #3 – 0.88% annual decrease in hours worked (contribution base units) 

Plan Year Available Resources Benefit Payments Solvency Ratio 

2018 $ 22,880,083 $ 5,103,159 4.48 

2019 21,460,744 4,903,017 4.38 

2020 20,832,810 4,264,429 4.89 

2021 20,872,955 4,313,324 4.84 

2022 20,890,313 4,397,272 4.75 

2023 20,845,857 4,462,789 4.67 

2024 20,754,853 4,513,241 4.60 

2025 20,593,084 4,553,235 4.52 

2026 20,341,459 4,577,582 4.44 

2027 20,012,486 4,562,224 4.39 

2028 19,714,913 4,597,742 4.29 

2029 19,322,065 4,630,917 4.17 

2030 18,830,671 4,649,299 4.05 

2031 18,251,448 4,628,085 3.94 

2032 17,620,806 4,608,394 3.82 

2033 16,933,796 4,587,971 3.69 

2034 16,189,510 4,513,259 3.59 

2035 15,441,897 4,445,915 3.47 

2036 14,682,979 4,378,981 3.35 

2037 13,910,481 4,344,428 3.20 

2038 13,090,492 4,269,771 3.07 

2039 12,262,088 4,212,497 2.91 

2040 11,406,357 4,152,080 2.75 

2041 10,524,831 4,093,472 2.57 

2042 9,613,789 4,038,452 2.38 

2043 8,666,817 4,001,453 2.17 

2044 7,662,709 3,953,690 1.94 

2045 6,608,645 3,919,660 1.69 

2046 5,485,984 3,903,266 1.41 

2047 4,271,406 3,883,812 1.10 

2048 2,986,877 3,908,510 0.76 

2049 1,580,932 3,916,160 0.40 

Page 6 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #4 – 1.88% annual decrease in hours worked (contribution base units) 

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

10.0

(40.00)

(30.00)

(20.00)

(10.00)

0.00

10.00

20.00

30.00

40.00

50.00 Solvency Ratio Available Resources and Benefit Payments

Available Resources Benefit Payments

Page 7 of 8 
 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.05 

Demonstration of Sensitivity of Projections 

Illustration #4 – 1.88% annual decrease in hours worked (contribution base units) 

Plan Year Available Resources Benefit Payments Solvency Ratio 

2018 $ 22,844,838 $ 5,103,159 4.48 

2019 21,353,242 4,902,412 4.36 

2020 20,613,595 4,263,012 4.84 

2021 20,500,035 4,310,600 4.76 

2022 20,319,321 4,392,785 4.63 

2023 20,029,890 4,456,142 4.49 

2024 19,644,277 4,504,051 4.36 

2025 19,138,236 4,541,117 4.21 

2026 18,492,714 4,562,182 4.05 

2027 17,718,380 4,543,317 3.90 

2028 16,909,665 4,574,716 3.70 

2029 15,946,913 4,603,361 3.46 

2030 14,824,161 4,616,874 3.21 

2031 13,549,143 4,590,648 2.95 

2032 12,154,872 4,565,562 2.66 

2033 10,633,001 4,539,394 2.34 

2034 8,978,922 4,459,177 2.01 

2035 7,242,007 4,385,952 1.65 

2036 5,410,026 4,312,861 1.25 

2037 3,476,059 4,271,382 0.81 

2038 1,401,702 4,190,200 0.33 

2039 (780,001) 4,125,876 (0.19) 

2040 (3,093,446) 4,058,287 (0.76) 

2041 (5,543,399) 3,992,333 (1.39) 

2042 (8,140,267) 3,929,754 (2.07) 

2043 (10,897,564) 3,884,613 (2.81) 

2044 (13,843,729) 3,828,957 (3.62) 

2045 (16,980,181) 3,786,556 (4.48) 

2046 (20,333,976) 3,761,115 (5.41) 

2047 (23,937,253) 3,732,691 (6.41) 

2048 (27,762,936) 3,746,600 (7.41) 

2049 (31,870,942) 3,744,279 (8.51) 

Page 8 of 8 
 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.06 

Projection of Funded Percentage 

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00 Funding Percentage Plan Assets and Liabilities

Plan Assets Accrued Liability (UC)

Page 1 of 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.06 

Projection of Funded Percentage 

Plan Year Actuarial Value of Assets Actuarial Accrued Liability Funded Percentage 

2018 $ 19,163,534 $ 75,048,413 25.53% 

2019 17,626,234 58,990,385 29.87% 

2020 16,524,526 58,436,090 28.27% 

2021 16,751,197 58,487,187 28.64% 

2022 16,983,381 58,486,387 29.03% 

2023 17,004,032 58,385,703 29.12% 

2024 17,117,513 58,200,731 29.41% 

2025 17,247,121 57,947,139 29.76% 

2026 17,364,781 57,632,885 30.12% 

2027 17,457,295 57,271,469 30.48% 

2028 17,563,777 56,907,985 30.86% 

2029 17,716,124 56,760,893 31.21% 

2030 17,835,366 56,571,514 31.52% 

2031 17,934,088 56,359,418 31.82% 

2032 18,051,624 56,162,953 32.14% 

2033 18,187,107 55,979,871 32.48% 

2034 18,341,972 55,819,219 32.85% 

2035 18,573,859 55,744,443 33.31% 

2036 18,879,776 55,752,795 33.86% 

2037 19,263,830 55,847,093 34.49% 

2038 19,696,745 56,002,428 35.17% 

2039 20,223,596 56,265,087 35.94% 

2040 20,831,961 56,622,657 36.79% 

2041 21,530,261 57,082,724 37.71% 

2042 22,322,296 57,652,114 38.71% 

2043 23,210,230 58,329,873 39.79% 

2044 24,181,008 59,101,859 40.91% 

2045 25,251,412 59,986,328 42.09% 

2046 26,413,183 60,974,413 43.31% 

2047 27,653,221 62,047,976 44.56% 

2048 28,979,808 63,214,300 45.84% 

2049 30,350,742 64,428,422 47.10% 

Page 2 of 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I.B.E.W. Local Union No. 237 Pension Plan 

Exhibit 6.09 

NARRATIVE STATEMENT 

A. INTRODUCTION 

We, the Trustees of the I.B.E.W. Local 237 Pension Plan (the “Plan”), are applying for a suspension of 

benefits under the Multiemployer Pension Relief Act of 2014 (MPRA) because we believe it is the solution 

that is in the best interests of all parties involved. 

The Plan finds itself in the current situation primarily as a result of poor asset returns during the 2000’s

coupled with periods of reduced work hours over that same time frame. Despite the Trustee’s efforts to

save the plan through drastic contribution increases, reduced future benefit accruals, and reductions to 

certain plan benefits under a Rehabilitation Plan, the Plan is projected to become insolvent in 2032. The 

plan pays out significantly more in benefits than it receives in contributions, and the industry cannot 

support further efforts to save the Plan with contributions. The Trustees have decided that the only 

possible solution for the Plan to be saved is through benefit suspensions to those already in payment. 

B. BACKGROUND 

Over the past ten years the Board of Trustees has enacted a number of significant changes that have had 

the effort of improving the funding situation of the Plan. Large contribution increases and significant 

changes in the retirement benefits have been implemented. But the Trustees believe that environment 

in which the Plan sits makes it so that restoring the Pension Plan to long-term solvency and health cannot 

be done at the expense of the future retiree. 

During the 1990’s many multiemployer pension plans, including the IBEW Local 237 Pension Plan, had to 

frequently increase benefits in order to ensure that the contributions required would be tax deductible. 

As such, benefits were often increased for both active participants, by way of higher benefit multipliers, 

and for those participants retired at the time, by way of cost of living adjustments (COLAs). In each 

situation, the amount of the increase was based upon the advice of hired consultants. 

During the early 2000’s, investment markets were less than stable. Few funds earned their actuarial 

return assumption over the course of that decade, and unfortunately the IBEW Local 237 Pension Fund 

fell into this group as well. 

Effective January 1, 2001, the benefit multiplier was increased from $71 per year of Pension Service to the 

current $85 per year of Pension Service. The Plan was 98% funded at that time with assets of $45,535,206. 

As the result of investment losses, the Plan had assets of $28,641,900 on January 1, 2003 and was 60% 

funded. 

Page 1 of 4 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 2008, the Plan suffered another large investment loss, starting the year with $30,349,000 in assets and 

ending with $22,566,500. 

There were other factors that had negative consequence on plan funding as well: 

 Industries leaving the area, increased non-union competition, and national portability rules 

resulted in decreasing work hours within the Local’s jurisdiction, and reduced contributions 

coming into the Plan. 

 The Plan is significantly cash flow negative, paying out more annually in benefits than it receives in 

contributions, and has grown even more cash flow negative over recent years. During the years 

of insufficient investment return this compounded the funding troubles as it was more difficult to 

earn the excessive return to make up for investment losses. 

 Increasing life expectancies coupled with active membership declines made it difficult to have 

sufficient contributions to reduce unfunded liabilities. 

When the Pension Protection Act (PPA) first became effective in the 2008 plan year, the Plan was certified 

to be in Endangered Status (“Yellow Zone”).The Trustees promptly enacted a Funding Improvement Plan 

effective January 1, 2009 which, at the time it was enacted, anticipated much of the investment loss of 

2008. While investment returns in the subsequent years were good, they weren’t sufficient to overcome

work hours below actuarial assumptions. In 2013 the Plan was first certified in Critical Status (“Red Zone”)

and a Rehabilitation Plan was adopted. In this instance, however, the Board was unable to come to 

agreement on a Rehabilitation Plan with reasonable measures that would allow the Fund to emerge from 

the Red Zone within the prescribed time. Therefore the Rehabilitation Plan was adopted with the goal of 

forestalling insolvency as long as possible. 

The Funding Improvement and Rehabilitation Plans have worked to put the Plan in a better position than 

would otherwise be the case. However, the Board feels that additional actions available to them in the 

law are not in the best interests of the Plan, the local electrical industry, and the Union. 

There have been significant challenges in the Local with regard to providing enough work for the 

membership: 

1) Industry has generally decreased – the amount of work within the electrical industry has generally 

decreased over the last decade or two. Several large plants have either left the area or gone out 

of business, immediately reducing the amount of union work available. 

2) Non-union competition has increased 

3) National portability rules coupled with reciprocity – these rules allow contractors who are 

headquartered in the jurisdiction of a different local to employ union members from that local 

while performing work within the jurisdiction of IBEW Local 237. This takes away a job that would 

otherwise go to an IBEW 237 member together with the contributions to the IBEW Local 237 

Pension Fund. Instead, those contributions are sent to the traveling employee’s home Local 

pension plan under the National Reciprocity Agreement. This reduces the work hours needed to 

address the Plan’s funding problem. This issue is especially prevalent in the case of IBEW Local 237, 

since it’s a smaller local located adjacent to the larger Buffalo Local where most contractors are 

headquartered. 

Page 2 of 4 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C. WHY THE TRUSTEES FEEL THE MPRA SUSPENSION IS THE ONLY VIABLE SOLUTION 

Efforts taken by the Board thus far have had an impact on anyone who has retired since 2009 through the 

limiting of benefit accruals. But the Trustees feel the largest impact is felt by those who are actively 

working because of the significant increases in the contribution rate over recent years. 

The Pension Protection Act of 2006 that created the rules applicable to multiemployer plans and made 

the annual zone certifications a requirement, also created the mechanisms that allow for a plan to make 

changes to benefits and contributions that will rectify the issue. When a plan is in critical status, the law 

provides for changes in benefit that can be substantial – including reductions or complete elimination of 

death benefits, disability benefits, early retirement benefits and other features. The Board recognized 

from the beginning that although the law permitted the removal of certain benefits, those were not 

reasonable changes even if it was something that would save the Plan. Active participants expressed their 

overwhelming preference for a solution that would save the early retirement option, even at the cost of 

a lesser accrual rate. 

The Board has considered a number of questions and issues as it determines how to best move the Plan 

forward. The issues that hang in the balance are not small ones and they range from local union 

businesses to local union households and the electrical industry in Niagara Falls as a whole. 

 How can the active member be expected to contribute over $13 per hour from their wage package 

for a pension that doesn’t protect them if they become disabled before retirement? 

 Will an active member continue to support a defined benefit plan that is increasing in cost while 

benefits are decreasing? 

 Why would a union member continue to support such a large portion of their wage package being 

devoted to a plan that doesn’t provide decent benefits when a non-union contractor is offering 

more take-home pay? 

 How can union contractors remain competitive with rising contribution rates? 

 After years of work in harsh winters, will members support any change to the early retirement age 

under the Plan? 

In the end, after much consideration and debate since the passage of MPRA, the Trustees have 

determined that in order to preserve the Union, and the unionized electrical industry of Niagara County, 

the active membership of the Plan cannot be asked to alone bear the burden of restoring the Plan to 

health. The burden must be shared by the retirees who are already in payment. 

D. BENEFIT SUSPENSION SOLUTION 

The way that the Trustees propose to solve the funding problem is to indefinitely reduce the benefits to 

those in payment according to a uniform formula that will also apply to the accrued benefit of continuing 

actives. The Board has gone through the process to make sure that all of the necessary protections for 

the benefits of those who are older, disabled, or who have benefits under 100% of the Pension Benefit 

Guaranty Corporation (PBGC) have been preserved. The Board has also followed all of the necessary and 

required projections that help to design a new benefit structure that give the Plan the optimal chance for 

recovery within the prescribed limits. 

Page 3 of 4 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upon approval by the Treasury Department and vote of Plan Participants, the Plan would be amended as 

follows: 

For Plan Years from 1976 through 2008, Pension Service credits will be limited to a maximum of 1.4 

credits in a year. This is the same as the service limit that exists currently for plan years from 2009 

and later. So all years from 1976 and later will be treated with the same service limit. 

The benefit multiplier for Pension Service credits earned up through 2008 will be limited to $71. This 

is a reduction from the current benefit level of $85 per service credit. Members who retired or had a 

break in service that resulted in a benefit multiplier of less than $71 will have their currently applicable 

multiplier remain in place. 

The benefit multiplier for service credits earned in 2009 and later will be reduced to $76. This is a 

reduction from the current benefit level of $80 per service credit. 

The Board of Trustees regrets the measures that are necessary to restore the Fund, but conditions outside 

of their control have created a situation that calls for extreme measures. The Board has given extensive 

thought to all available options, and is confident that of everything available to them, this option provides 

the greatest opportunity for the Plan to regain health and continue to provide benefits to good union 

IBEW members and the highest quality labor to its contractors for generations to come. 

Page 4 of 4 
1.8.E.W. Local Union No. 237 Pension Plan 

Exhibit 7.OS 

POWER OF ATTORNEY AND DECLARATION OF REPRESENTATIVE BEFORE 

THE DEPARTMENT OF THE TREASURY 

Applicant information: 

I.B.E.W. Local 237 Pension Plan Board of Trustees 

8803 Niagara Falls Blvd. 

Niagara Falls, NY 14304 

Contact: Kevin Mislin, Chairman 

Tel: (716) 297-3899, Fax: (716) 297-8471 

ibew237funds@yahoo.com 

EIN/PN: 16-6094914/001 

Applicant hereby appoints the following representative(s) as attorney(s)-in-fact to represent the taxpayer 

before the Department of the Treasury and perform acts related to the attached application dated 

September 28, 2018 for suspension of benefits under§ 432(e)(9) of the Internal Revenue Code of 1986, as 

amended. 

Representative Information 

Mark L. Stulmaker Bradford L. Rigby, ASA, EA, MAAA 

Lipsitz Green Scime Cambria Cowden Associates, Inc. 

42 Delaware Ave., Suite 120 444 Liberty Ave., Suite 605 

Buffalo, NY 14202 Pittsburgh, PA 15222 

Tel: (716) 849-1333 Tel: (412) 394-9330 

Fax: (716) 849-1580 Fax: (412) 394-9324 

mstulmaker@lglaw.com brad r@cowdenassociates.com 

EIN: 16-0905097 EIN: 25-1750131 

Send copies of notices and communications to representatives: Yes 

With the exception of the acts described below, I authorize my representative(s) to receive and inspect 

information, including confidential tax information, and to perform acts that I can perform with respect to 

the attached application dated September 28, 2018 for suspension of benefits under § 432(e)(9). For 

example, my representative(s) shall have the authority to sign any agreements, consents, or similar 

documents. 

Specific acts not authorized: None 
1.8.E.W. Local Union No. 237 Pension Plan 

Signatures of Applicant and Date 

Name: Name: 

Date: Date: Jl:2116 

Authorized Trustees on behalf of the I.B.E.W. Local No. 237 Pension Plan 

Declaration of Representative 

Under penalties of perjury, by my signature below I declare that: 

• I am not currently suspended or disbarred from practice before the Internal Revenue Service; 

• I am authorized to represent the Applicant for the matter(s) specified in this Power of Attorney and 

Declaration of Representative; and 

• I am one of the following: 

'9) Attorney - a member in good standing of the bar of the highest court of the jurisdiction 

shown below. 

o Certified Public Accountant - duly qualified to practice as a certified public accountant in 

the jurisdiction shown below. 

o Enrolled Agent 

o Officer - a bona fide officer of the Applicant. 

o Full-Time Employee-a full-time employee of the Applicant. 

o Enrolled Actuary- enrolled as an actuary by the Joint Board for the Enrollment of Actuaries 

under 29 U.S.C. 1242 (the authority to practice before the Internal Revenue Service is limited 

by section 10.3(d) of Circular 230). 

o Enrolled Retirement Plan Agent. 

Required information for Representative 

Licensing Jurisdiction: New York 

Attorney R

7grsQion No.: 1776384 

21 I 

L. Stulmaker Date 

'--- ------------
I.B.E.W. Local Union No. 237 Pension Plan 

Signatures of Applicant and Date 

Na 

Chairman 

Name: 

Date: Date: f/8-;/;€ 7 I 

Authorized Trustees on behalf of the I.B.E.W. Local No. 237 Pension Plan 

Declaration of Representative 

Under penalties of perjury, by my signature below I declare that: 

• I am not currently suspended or disbarred from practice before the Internal Revenue Service; 

• I am authorized to represent the Applicant for the matter(s) specified in this Power of Attorney and 

Declaration of Representative; and 

• I am one of the following: 

o Attorney - a member in good standing of the bar of the highest court of the jurisdiction 

shown below. 

o Certified Public Accountant - duly qualified to practice as a certified public accountant in 

the jurisdiction shown below. 

o Enrolled Agent 

o Officer - a bona fide officer of the Applicant. 

o Full-Time Employee - a full-time employee of the Applicant. 

Enrolled Actuary- enrolled as an actuary by the Joint Board for the Enrollment of Actuaries 

under 29 U.S.C. 1242 (the authority to practice before the Internal Revenue Service is limited 

by section 10.3(d) of Circular 230}. 

o Enrolled Retirement Plan Agent. 

Required information for Representative 

Licensing Authority: Joint Board 

Enrollment Number: 17-07217 

Date 
FIFTH RESTATEMENT 

OFTHE 

I.B.E.W. LOCAL UNION NO. 237 

PENSION PLAN 

April 1, 2018 

EIN: 16-6094914 
TABLE OF CONTENTS 

ARTICLE I 

DEFINITIONS 

ARTICLE II 

TOP HEAVY 

2.1 TOP HEAVY REQUIREMENTS ......................................................................................... 10 

2.2 DETERMINATION OF TOP HEAVY STATUS ................................................................. 10 

2.3 DETERMINATION OF PRESENT VALUES AND AMOUNTS ...................................... 13 

2.4 MINIMUM BENEFITS .......................................................................................................... 14 

2.5 EXCLUSION OF COLLECTIVELY BARGAINED EMPLOYEES .................................. 14 

ARTICLE III 

ELIGIBILITY/PARTICIPATION 

3.1 COMMENCEMENT OF PARTICIPATION ........................................................................ 14 

3.2 ALTERNATE COMMENCEMENT OF PARTICIPATION ............................................... 14 

3.3 DETERMINATION OF ELIGIBILITY ................................................................................. 14 

3.4 TERMINATION OF ELIGIBILITY ...................................................................................... 15 

3.5 OMISSION OF ELIGIBLE EMPLOYEE ............................................................................. 15 

3.6 INCLUSION OF INELIGIBLE EMPLOYEE ....................................................................... 15 

ARTICLE IV 

CONTRIBUTIONS 

4.1 FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION ............................. 16 

4.2 TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION ............................................ 16 

4.3 ACTUARIAL METHODS .................................................................................................... 16 

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ARTICLEV 

PENSION SERVICE 

5.1 PENSION SERVICE .............................................................................................................. 16 

5.2 LIMITATIONS ....................................................................................................................... 17 

ARTICLE VI 

VESTING SERVICE 

6.1 VESTING ............................................................................................................................... 17 

6.2 VESTING SERVICE .............................................................................................................. 18 

6.3 BREAKS IN SERVICE.......................................................................................................... 18 

6.4 INTERRUPTED PENSION SERVICE ................................................................................. 19 

ARTICLE VII 

BENEFITS 

7.1 NORMAL RETIREMENT BENEFIT ................................................................................... 19 

7.2 SPECIAL EARLY RETIREMENT BENEFIT ..................................................................... 20 

7.3 EARLY RETIREMENT BENEFIT ....................................................................................... 20 

7.4 DISABILITY RETIREMENT BENEFIT .............................................................................. 21 

7.5 CHANGES IN AMOUNT OF BENEFITS ........................................................................... 22 

7.6 BENEFIT INCREASES ......................................................................................................... 22 

7.7 MINIMUM BENEFIT REQUIREMENT FOR TOP HEAVY PLAN ................................. 23 

7.8 COMMENCEMENT OF BENEFITS ................................................................................... 25 

7.9 SUSPENSION OF BENEFITS .............................................................................................. 26 

7.10 NOTIFICATION OF SUSPENSION OF BENEFITS .......................................................... 27 

11 

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ARTICLE VIII 

FORMS OF BENEFIT 

8.1 QUALIFIED JOINT AND SURVIVOR ANNUITY ............................................................ 27 

8.2 STRAIGHT-LIFE ANNUITY ................................................................................................ 28 

8.3 LEVEL INCOME OPTION ................................................................................................... 28 

8.4 WAIVER OF JOINT AND SURVIVOR ANNUITY ........................................................... 29 

8.5 DISTRIBUTION OF BENEFITS UPON DEATH ............................................................... 31 

8.6 DESIGNATED BENEFICIARY ........................................................................................... 32 

8.7 DISTRIBUTION OF BENEFITS ........................................................................................... 32 

8.8 DISTRIBUTION FOR MINOR BENEFICIARY ................................................................. 32 

8.9 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN ................................. 32 

8.10 DIRECT ROLLOVER ............................................................................................................ 33 

8.11 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION .................................. 35 

8.12 HEARTACT .......................................................................................................................... 35 

ARTICLE IX 

REQUIRED DISTRIBUTIONS 

9.1 GENERAL .............................................................................................................................. 36 

9.2 TIME AND MANNER OF DISTRIBUTION ....................................................................... 37 

9.3 AMOUNT TO BE DISTRIBUTED EACH YEAR .............................................................. 38 

9.4 ANNUITY DISTRIBUTIONS THAT COMMENCE DURING LIFETIME ...................... 39 

9.5 REQUIREMENTS FOR MINIMUM DISTRIBUTIONS WHERE 

PARTICIPANT DIES BEFORE DISTRIBUTION BEGINS ...............................................40 

9.6 DEFINITIONS ........................................................................................................................ 41 

111 

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ARTICLEX 

CODE SECTION 415 LIMITATIONS 

10.1 EFFECTIVE DA TE ................................................................................................................ 41 

10.2 GRANDFATHER PROVISIONS .......................................................................................... 41 

10.3 INCORPORATION BY REFERENCE ................................................................................. 42 

10.4 ADJUSTMENT TO DOLLAR LIMIT AFTER SEVERANCE ........................................... 42 

10.5 COMPENSATION PAID AFTER SEVERANCE FROM EMPLOYMENT ..................... 42 

10.6 ADMINISTRATIVE DELAY ............................................................................................... 43 

10.7 OPTION TO APPLY COMPENSATION PROVISIONS EARLY .................................... .43 

10.8 ANNUAL COMPENSATION LIMIT ................................................................................... 43 

10.9 DEFINITION OF COMPENSATION ................................................................................... 43 

10.10 AGGREGATION WITH OTHER EMPLOYER PLANS ................................................... .44 

10.11 PENSION FUNDING EQUITY ACT ................................................................................... 44 

10.12 BENEFIT RESTRICTIONS UNDER THE PENSION PROTECTION ACT .....................47 

ARTICLE XI 

EMPLOYEE RIGHTS 

11.1 GENERAL RIGHTS OF EMPLOYEES AND BENEFICIARIES ..................................... .48 

11.2 REGULAR REPORTS AND DISCLOSURE REQUIREMENTS ..................................... .49 

11.3 INFORMATION GENERALLY AVAILABLE ................................................................... 49 

11.4 SPECIAL DISCLOSURES .................................................................................................... 49 

11.5 EMPLOYEE RIGHT TO COMMENT ................................................................................. 50 

11.6 CLAIMS PROCEDURE ........................................................................................................ 50 

11.7 CLAIMS REVIEW PROCEDURE ....................................................................................... 51 

11.8 ACTION OF TRUSTEES ...................................................................................................... 53 

11.9 PROTECTION FROM REPRISAL. ...................................................................................... 53 

IV 

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50300.0012 
ARTICLE XII 

AMENDMENT, TERMINATION AND MERGERS 

12.1 AMENDMENT ...................................................................................................................... 53 

12.2 TERMINATION ..................................................................................................................... 54 

12.3 MERGER OR CONSOLIDATION ....................................................................................... 54 

ARTICLE XIII 

MISCELLANEOUS 

13.1 PARTICIPANT'S RIGHTS ................................................................................................... 55 

13.2 ALIENATION ........................................................................................................................ 55 

13.3 CONSTRUCTION OF PLAN ................................................................................................ 55 

13.4 GENDERANDNUMBER .................................................................................................... 55 

13 .5 LEGAL ACTION ................................................................................................................... 55 

13.6 PROHIBITION AGAINST DIVERSION OF FUNDS ......................................................... 56 

13.7 BONDING .............................................................................................................................. 56 

13.8 EMPLOYERS' AND TRUSTEES' PROTECTIVE CLAUSE ............................................ 56 

13.9 INSURER'S PROTECTIVE CLAUSE ................................................................................. 57 

13.10 RECEIPT AND RELEASE FOR PAYMENTS .................................................................... 57 

13.11 ACTION BY THE TRUSTEES ............................................................................................. 57 

13.12 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY ........................... 57 

13.13 HEADINGS ............................................................................................................................ 58 

13.14 APPROVAL BY INTERNAL REVENUE SERVICE ......................................................... 58 

13.15 UNIFORMITY........................................................................................................................ 58 

V 

#l 79276l.v2 

50300.0012 
RESTATEMENT 

I.B.E.W. LOCAL UNION NO. 237 

PENSION PLAN 

THIS PLAN is hereby adopted this 2141' day of September, 2018, by the Trustees of the 

I.B.E.W. Local Union No. 237 Pension Fund (the "Trustees"). 

WITNE SE TH: 

WHEREAS, the Trustees of I.B.E.W. Local Union No. 237 Pension Fund have heretofore 

entered into an Agreement and Declaration ofTrust (the "Trust Agreement") establishing a Pension 

Plan effective January 1, 1976, in order to provide retirement income to members of the Union 

employed by certain participating employers; and 

WHEREAS, the Trustees of I.B.E.W. Local Union No. 237 Pension Fund have previously 

adopted a Restated Plan of Benefits ("the Plan") effective the first day of, January 2014; and 

WHEREAS, under the tenns of the Trust Agreement, the Trustees have the ability to amend 

the Plan of Benefits; 

NOW, THEREFORE, effective April 1, 2018, except as otherwise provided, the Trustees in 

accordance with the provisions of Trust Agreement pertaining to amendments thereof, hereby 

amends the Plan in its entirety and restates the Plan to provide as follows: 

ARTICLE I 

DEFINITIONS 

1.1 "Accrued Benefit" means a Participant's earned Normal Retirement Benefit under the Plan 

on any date. The monthly amount of a Paiiicipant's Normal Retirement Benefit is equal to the 

monthly benefit determined in accordance with Article V, which would be payable to the 

Participant on his Early Retirement Date, Special Early Retirement Date, or Nonnal Retirement 

Date based on his Pension Service completed as of the date of detennination, whichever benefit is 

greater. 

1.2 "Act" means the Employee Retirement Income Security Act of 1974, as it may be amended 

from time to time. 

1.3 "Actuarial Equivalent" means a form of benefit differing in time, period, or manner of 

payment from a specific benefit provided under the Plan but having the same value when computed 

using the 1983 Group Annuity Mortality Table and an assumed interest rate of 7 .5% annually. 

Notwithstanding the preceding paragraph, for purposes of determining the amount of a 

distribution in a form other than an annual benefit that is nondecreasing for the life of the 

participant or, in the case of a qualified pre-retirement survivor, the life of the participant's 

#2505297-v2 

50300.0016 
spouse; or that decreases during the life of the participant merely because of the death of the 

surviving annuitant (but only if the reduction is to a level not below 50% of the annual benefit 

payable before the death of the surviving annuitant) or merely because of the cessation or 

reduction of Social Security supplements or qualified disability payments, actuarial equivalence 

will be determined on the basis of the applicable mortality table and applicable interest rate under 

Code Section 417(e), if it produces a benefit greater than that detennined under the preceding 

paragraph. 

The applicable interest rate is the rate of interest on 30-year Treasury securities as specified by 

the Commissioner for the second calendar month preceding the first day of the plan quarter, that 

contains the annuity starting date for the distribution and for which the applicable interest rate 

remains constant. 

A plan amendment that changes the date for detennining the applicable interest rate (including an 

indirect change as a result of a change in plan year), shall not be given effect with respect to any 

distribution during the period commencing one year after the later of the amendment's effective 

date or adoption date, if, during such period and as a result of such amendment, the participant's 

distribution would be reduced. 

The Internal Revenue Code section 417 applicable mortality table shall be as set forth in Rev. Rul. 

95-6, 1995-1 C.B. 80 for distributions prior to December 31, 2002, and the table set forth in Rev. 

Rul. 2001-62 for distributions occurring on or after such date and before January 1, 2008. 

For distributions occurring on or after January 1, 2008, for purposes of the Plan's provisions 

relating to the calculation of the present value of a benefit payment that is subject to Code 

Section 417(e), as well as any other Plan provision refe1Ting directly or indirectly to the 

"applicable interest rate" or "applicable mortality table" used for purposes of Code Section 

417(e), any provision prescribing the use of the annual rate of interest on 30-year U.S. Treasury 

securities shall be implemented by instead using the rate of interest determined by applicable 

interest rate described by Code Section 417(e) after its amendment by PPA. Specifically, the 

applicable interest rate shall be the adjusted first, second, and third segment rates applied under 

the rules similar to the rules of Code Section 430(h)(2)(C) for the calendar month (lookback 

month) before the first day of the Plan Year in which the annuity starting date occurs (stability 

period), or such other lookback month and stability period as elected in Amendment Section 2.7. 

For this purpose, the first, second, and third segment rates are the first, second, and third segment 

rates which would be detennined under Code Section 430(h)(2)(C) if: 

(a) Code Section 430(h)(2)(D) were applied by substituting the average yields for the 

month described in the preceding paragraph for the average yields for the 24-

month period described in such section, and 

(b) Code Section 430(h)(2)(G)(i)(II) were applied by substituting "Section 

417(e)(3)(A)(ii)(II) for "Section 412(b)(5)(B)(ii)(II)," and 

(c) The applicable percentage under Code Section 430(h)(2)(G) is treated as being 

20% in 2008, 40% in 2009, 60% in 2010, and 80% in 2011. 

2 

#2505297-v2 

50300.0016 
For purposes of the Plan's provisions relating to the calculation of the present value of a benefit 

payment that is subject to Code Section 417(e), as well as any other Plan provision referring 

directly or indirectly to the "applicable interest rate," any provision directly or indirectly 

prescribing the use of the m01iality table described in Revenue Ruling 2001-62 shall be amended 

to prescribe the use of the applicable annual mortality table within the meaning of Code Section 

417(e)(3)(B), as initially described in Revenue Rulil)g 2007-67. 

In the event this Section is amended, the Actuarial Equivalent of a Participant's Accrued Benefit on 

or after the date of change shall be determined as the greater of (1) the Actuarial Equivalent of the 

Accrued Benefit as of the date of change computed on the old basis, or (2) the Actuarial Equivalent 

of the total Accrued Benefit computed on the new basis. 

1.4 "Administrator" means the person designated by the Trustees, to administer the Plan on 

behalf of the Trustees. 

1.5 "Affiliated Employer" means any corporation which is a member of a controlled group of 

corporations (as defined in Code Section 414(b)) which includes the Employer; any trade or 

business (whether or not incorporated) which is under common control (as defined in Code Section 

414(c)) with the Employer; any organization (whether or not incorporated) which is a member of an 

affiliated service group (as defined in Code Section 414(m)) which includes the Employer; and any 

other entity required to be aggregated with the Employer pursuant to Regulations under Code 

Section 414( o ). 

1.6 "Aggregate Account" means, with respect to each Participant, the value of all accounts 

maintained on behalf of a Paiiicipant, whether attributable to Employer or Employee contributions, 

used to determine Top Heavy Plan status under the provisions of a defined contribution plan 

included in any Aggregation Group (as defined in Article II). 

1.7 "Anniversary Date" means December 31st. 

1.8 "Beneficiary" means the person to whom the share of a deceased Participant's total account 

is payable, subject to the restrictions of Section 8.6. 

1.9 "Code" means the Internal Revenue Code of 1986, as amended or replaced from time to 

time. 

1.10 "Collective Bargaining Agreement" means any agreement or agreements in force and effect 

between the Union and any Employer or association of Employers, which agreement or agreements 

provides for the payment of periodic contributions by the Employer to the Fund. 

1.11 "Contract" or "Policy" means any life insurance policy, retirement income or annuity 

policy, or annuity contract (group or individual) issued pursuant to the terms of the Plan. 

3 

#2505297-v2 

50300.0016 
1.12 "Disability Retirement Date" means the first day of the month following the date the 

Employee becomes Totally and Permanently Disabled, provided the Employee (i) has not attained 

Normal Retirement Age, and (ii) has completed seven (7) years of Pension Service or seven (7) 

years of Vesting Service. The Plan's definition of Disability Retirement Date and Total and 

Pennanent Disability at the time of disability will control. 

Effective April 1, 2018, "Disability Retirement Date" means the first day of the month 

following the date the Participant becomes Totally and Pennanently Disabled, provided the 

Participant (i) has not attained his earliest Early or Special Early Retirement Date, (ii) has 

completed seven (7) years of Pension Service or seven (7) years of Vesting Service and (iii) has 

completed 2,500 Hours of Service in the sixty (60) calendar months immediately preceding such 

date. 

1.13 "Early Retirement Date" shall mean the first day of a month following the Employee's fiftyfifth (55th) birthday, but before his Normal Retirement Age, providing that such employee has 

completed at least fifteen ( 15) years of Pension Service or ten ( 10) years of Vesting Service. 

Effective January 1, 2009 "Early Retirement Date" shall mean the first day of a month 

following the Employee's fifty-fifth (55th) birthday, but before his Nonnal Retirement Age, 

providing that such employee has completed at least fifteen ( 15) years of Pension Service or five ( 5) 

years of Vesting Service. 

1.14 "Eligible Employee" means all persons covered by a Collective Bargaining Agreement 

between the Union and an Employer where such collective bargaining agreement provides for 

periodic contributions to the Fund, including part-time employees for whom contributions are 

required to be made. 

The tenn "Eligible Employee" shall also include persons in the employ of the Union, for whom the 

Union has become a contributing Employer, with the consent of the Trustees, and persons in the 

employ of the Trust Fund, with the consent of the Trustees. 

Employees of Affiliated Employers shall not be eligible to participate in this Plan unless such 

Affiliated Employers have specifically adopted this Plan in writing. 

1.15 "Employee" means any person who is employed by an Employer or Affiliated Employer, 

but excludes any person who is an independent contractor. Employee shall include Leased 

Employees within the meaning of Code Sections 414(n)(2) and 414(0)(2) unless such Leased 

Employees are covered by a plan described in Code Section 414(n)(5) and such Leased Employees 

do not constitute more than 20% of the recipient's non-highly compensated work force. 

1.16 "Employer" means: 

(a) any individual, finn, association, partnership or corporation, who is bound by a 

Collective Bargaining Agreement with the Union and in accordance therewith 

agrees to participate in and contribute to the Fund; and 

4 

#2505297-vZ 

50300.0016 
(b) with the consent of the Trustees, any individual, finn, association, partnership or 

corporation, who is not a member of or represented in collective bargaining but who 

is in the electrical industry and is bound by a Collective Bargaining Agreement with 

the Union and in accordance therewith, agrees to participate in and contribute to the 

fund. 

1.17 "Family Member" means, with respect to an affected Participant, such Participant's spouse, 

such Participant's lineal descendants and ascendants and their spouses, all as described in Code 

Section 414(q) (6) (B). 

1.18 "Fiduciary" means any person who ( a) exercises any discretionary authority or discretionary 

control respecting management of the Plan or exercises any authority or control respecting 

management or disposition of its assets, (b) renders investment advice for a fee or other 

compensation, direct or indirect, with respect to any monies or other property of the Plan or has any 

authority or responsibility to do so, or (c) has any discretionary authority or discretionary 

responsibility in the administration of the Plan, including, but not limited to, the Trustees, the 

Employer and its representative body, and the Administrator. 

1.19 "Forfeiture" means any amounts contributed on behalf of an Eligible Employee who shall 

fail to become a Participant in the Plan, together with any amounts that may otherwise be forfeited 

under the Plan pursuant to Section 3.4 or 8.9. 

1.20 "Fonner Participant" means a person who has been a Participant, but who has ceased to be a 

Participant for any reason. 

1.21 "Fund" means the "I.B.E. W. Local Union No. 23 7 Pension Fund." 

1.22 "Hour of Service" means: 

(a) Each hour for which an Employee is directly or indirectly paid or entitled to 

payment by an Employer for the performance of duties. These hours shall be 

credited to the Employee for the computation period or periods in which the duties 

are perfonned; and 

(b) Each hour for which the Employee is paid or entitled to payment by an Employer on 

account of a period of time during which no duties are perfonned (irrespective of 

whether the employment relationship has terminated) due to vacation, holiday, 

illness, incapacity (including disability), lay-off, jury duty, military leave or leave of 

absence. Notwithstanding the preceding sentence: 

(1) No more than five hundred one (501) Hours of Service are required to be 

credited to an Employee under this paragraph (b) on account of any single 

continuous period during which the Employee performed no duties (whether 

or not such period occurs in a single computation period); 

5 

#2505297-v2 

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(2) No hours shall be credited under this paragraph (b) for any payments made 

or due under a plan maintained solely for the purpose of complying with any 

applicable workman's compensation, unemployment compensation or 

disability insurance laws; and 

(3) No hours shall be credited under this paragraph (b) for a payment, which 

solely reimburses an Employee for medical or :medically related expenses 

incurred by the Employee. 

For purposes of this paragraph (b) a payment shall be deemed to be made by 

or due from an Employer regardless of whether such payment is made by or 

due from the Employer directly, or indirectly through, among others, a trust 

fund or insurer, to which the Employer contributes or pays premiums. 

(c) Each Hour for which back pay, irrespective of mitigation of damages, is either 

awarded or agreed to by an Employer. The same Hours of Service shall not be 

credited both under paragraph (a) or (b), as the case may be, and under this 

paragraph (c). Nor more than five hundred one (501) Hours shall be credited under 

this subparagraph for a period of time during which an employee did not or would 

not have performed duties. 

The number of Hours to be credited in the computation period in which such hours shall be credited 

shall be detennined under Title 29, Code of Federal Regulations, Section 2530.200(b)-2(b) and (c), 

which regulations are hereby incorporated by reference. 

In addition, an Employee who is absent from work for maternity or paternity reasons shall receive 

credit for each Hour which would otherwise have been credited to him but for his absence, or in any 

case in which such hours cannot be determined eight (8) hours per day during the period of such 

absence. For purposes of this paragraph an absence (i) by reason of the pregnancy of an Employee, 

(ii) by reason of the birth of a child of the Employee, (iii) by reason of the placement of a child with 

the Employee in connection with the adoption of such child by the Employee, or (iv) for purposes 

of caring for such child for a period beginning immediately following such birth or placement. The 

Hours credited under this paragraph shall be limited to such number of Hours as is necessary to 

bring the total number of Hours credited for a computation period to five hundred one (501) Hours 

and shall be credited only for the computation period in which the absence from work commences, 

or if the Employee otherwise has at least five hundred one (501) Hours in such computation period, 

for the following computation period. 

Hours of Service perfonned as a partner or sole proprietor shall not be taken into consideration for 

any purposes ofthis Plan. 

Periods of absence due to service in the Armed Forces of the United States will be provided in 

accordance with §414(u) of the Internal Revenue Code, provided the Employee complies with all of 

the requirements of Federal Law in order to be entitled to re-employment and provided further that 

the Employee returns to employment with an Employer within the period provided by such law. In 

addition, a reemployed veteran's period of military service will constitute service with the 

6 

#2505297-vZ 

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Employer for purposes of detennining the nonforfeitability of the individual's accrued benefits and 

of determining the accrual of benefits under the plan. 

1.23 "Investment Manager" means an entity that (a) has the power to manage, acquire, or dispose 

of Plan assets and (b) acknowledges fiduciary responsibility to the Plan in writing. Such entity 

must be a person, finn, or corporation registered as an investment adviser under the Investment 

Advisers Act of 1940, a bank, or an insurance company. 

1.24 "Key Employee" means any employee or fonner employee (including any deceased 

employee) who at any time during the plan year that includes the determination date was an 

officer of the employer having annual compensation greater than $130,000 (as adjusted under 

section 416(i)(l) of the Code for plan years beginning after December 31, 2002), a 5-percent 

owner of the employer, or a I-percent owner of the employer having annual compensation of 

more than $150,000. For this purpose, annual compensation means compensation within the 

meaning of section 415( c )(3) of the Code. The determination of who is a key employee will be 

made in accordance with section 416 (i)(l) of the Code and the applicable regulations and other 

guidance of general applicability issued thereunder. 

1.25 "Late Retirement Date" means the Anniversary Date coinciding with or next following a 

Participant's actual Retirement Date after having reached his Nonnal Retirement Date. 

1.26 "Leased Employee" means any person who is not an employee of the recipient and who 

provides services to the recipient if: 

(a) such services are provided pursuant to an agreement between the 

recipient and any other person (the "leasing organization"); 

(b) such person has performed such services for the recipient ( or for the 

recipient and related persons) on a substantially full-time basis for a 

period of at least 1 year; and 

(c) such services are performed under primary direction or control by 

the recipient. 

1.27 "Non-Hourly Paid Employee" means an Employee who is not compensated on an hourly 

basis. Hours of service for Non-Hourly Employees shall be based on a normal work week of fifty 

(50) hours. 

1.28 "Non-Key Employee" means any Employee or former Employee (and his Beneficiaries) 

who is not a Key Employee. 

1.29 "Normal Retirement Age" means the Participant's sixty-fifth (65thl birthday. 

From September 1, 1986 to December 31, 1997, Normal Retirement Age was the 

Participant's sixty-second (62nd) birthday. 

7 

#2505297-v2 

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From January 1, 1997 to December 31, 2008, Normal Retirement Age was the Participant's 

sixtieth ( 60th) birthday. 

1.30 "Normal Retirement Date" means a Participant's sixty-fifth (65th) birthday provided he has 

reached his fifth anniversary of participation in the Plan. 

Prior to September 1, 1986, N onnal Retirement Date means the Participant's sixty-fifth 

(65th) birthday provided he has completed fifteen ( 15) years of Pension Service or ten ( 10) years of 

Vesting Service. 

From September 1, 1986 to December 31, 1996, Normal Retirement Date means the 

Participant's sixty-second (62nd) birthday provided he has completed fifteen (15) years of Pension 

Service or ten (10) years of Vesting Service. 

From January 1, 1997 to December 31, 2008, Normal Retirement Date means the 

Participant's sixtieth (60th) birthday provided he has completed fifteen (15) years of Pension 

Service or five (5) years of Vesting Service. 

1.31 "Participant" means any Eligible Employee who elects to participate in the Plan as provided 

in Section 3.2 and who has not for any reason become ineligible to participate further in the Plan. 

1.32 "Plan" means the "I.B.E.W. Local Union No. 237 Pension Plan" set forth herein and all 

subsequent amendments thereto. 

1.33 "Plan Year" means the Plan's accounting year of twelve (12) months commencing on 

January 1st of each year and ending the following December 31st. However, prior to May 1, 1971, 

a Plan Year shall mean each 12 month period beginning May 1 and ending the following April 

30th. The period beginning May 1, 1971, through December 31, 1971, shall constitute a Plan Year. 

1.34 "Pre-Retirement Survivor Annuity" is an immediate annuity for the life of the Participant's 

spouse the payments under which must be equal to the amount of benefit which can be purchased 

with the accounts of a Participant used to provide the death benefit under the Plan. 

1.35 "Regulation" means the Income Tax Regulations as promulgated by the Secretary of the 

Treasury or his delegate, and as amended from time to time. 

1.36 "Retired Participant" means a person who has been a Participant, but who is receiving 

retirement benefits under the Plan. 

1.37 "Retirement Date" means the date as of which a Participant retires for reasons other than 

Total and Pennanent Disability, whether such retirement occurs on a Participant's Nonnal, Early, 

Special Early or Late Retirement Date (see Section 7). 

1.38 "Social Security Retirement Age" means the age used as the retirement age under Section 

216(1) of the Social Security Act, except that such section shall be applied without regard to the age 

increase factor and as if the early retirement age under Section 216(1)(2) of such Act were 62. 

8 

#2505297-v2 

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1.39 "Special Early Retirement Age" means the Participant's sixtieth (60th) birthday. 

1.40 "Special Early Retirement Date" means the Participant's sixtieth (60th) birthday, provided 

he has completed fifteen ( 15) years of Pension Service, or ten ( 10) years of Vesting Service. 

Effective January 1, 2009 "Special Early Retirement Date" shall mean the Participant's 

sixtieth (60th) birthday, provided he has completed fifteen years of Pension Service, or five (5) years 

of Vesting Service. 

Effective April 1, 2018, "Special Early Retirement Date" shall mean the Participant's 

sixtieth (60th) birthday, providing he has completed fifteen (15) years of Pension Service or five (5) 

years of Vesting Service, and further providing that the Employee has completed 2,500 Hours of 

Service in the sixty (60) calendar months immediately preceding such date. 

1.41 "Super Top Heavy Plan" means a plan described in Section 2.2(b ). 

1.42 "Tenninated Participant" means a person who has been a Participant, but whose 

employment has been tenninated other than by death, Total and Permanent Disability or retirement. 

1.43 "Termination of Employment" means the last day of the second consecutive Plan Year 

during which the Participant fails to receive an Employer Contribution to the Trust Fund on his 

behalf. 

1.44 "Top Heavy Plan" means a plan described in Section 2.2( a). 

1.45 "Top Heavy Plan Year" means a Plan Year during which the Plan is a Top Heavy Plan. 

1.46 "Total and Permanent Disability" means a physical or mental condition resulting from 

bodily injury, disease or mental condition which renders a person incapable of continuing any 

gainful occupation and which entitles him/her to benefits under the New York State Disability 

Benefits Law, Federal Social Security Act or Workers' Compensation. The disability of a 

Participant shall be detennined by a licensed physician of the Trustees' choosing. 

The Board of Trustees may at any time, or from time to time, notwithstanding the prior granting 

of a Disability Retirement Benefit under the Plan, require that the individual satisfy the 

provisions of this Section as a prerequisite to the continuance of the Disability Retirement 

Benefit granted under the Plan. 

1.47 "Trustees" means the trustees appointed from time to time and named as trustees under the 

terms of the Trust Agreement. 

1.48 "Trust Fund" means the assets of the Plan and Trust as the same shall exist from time to 

time. 

1.49 "Union" means "I.B.E.W. Local Union No. 237" its successors or assigns. 

9 

#2505297-v2 

50300.0016 
1.50 "Vested" means the portion of a Participant's benefits under the Plan that are nonforfeitable. 

ARTICLE II 

TOP HEAVY 

2.1 TOP HEAVY PLAN REQUIREMENTS 

For any Top Heavy Plan Year, the Plan shall provide the special vesting requirements of 

Code Section 416(b) and the special minimum benefit requirements of Code Section 416(c). 

2.2 DETERMINATION OF TOP HEAVY STATUS 

(a) This Plan shall be a Top Heavy Plan for any Plan Year in which, as of the 

Detennination date, (1) the Present Value of Accrued Benefits of Key Employees 

and (2) the sum of the Aggregate Accounts of Key Employees under this Plan and 

all plans of any Aggregation Group, exceeds sixty percent ( 60%) of the Present 

Value of accrued Benefits and the Aggregate Accounts of all Key and Non-Key 

Employees under this Plan and all plans of an Aggregation Group. 

If any Participant is a Non-Key Employee for any Plan Year, but such Participant 

was a Key Employee for any prior Plan Year, such Participant's Present Value of 

Accrued Benefit and/or Aggregate Account balance shall not be taken into account 

for purposes of detennining whether this Plan is a Top Heavy or Super Top Heavy 

Plan (or whether any Aggregation Group which includes this Plan is a Top Heavy 

Group). In addition, if a Participant or Fonner Participant has not perfonned any 

services for any Employer maintaining the Plan at any time during the five year 

period ending on the Detennination date, any accrued benefit for such Participant or 

Former Participant shall not be taken into account for the purposes of determining 

whether this Plan is a Top Heavy or Super Top Heavy Plan. 

(b) Aggregate Account: A Participant's Aggregate Account as of the Detennination 

Date shall be determined under applicable provisions of the defined contribution 

plan used in determining Top Heavy Plan status. 

(c) "Aggregation Group" means either a Required Aggregation group or a Pennissive 

Aggregation group as hereinafter detennined. 

(1) Required Aggregation Group: In determining a Required Aggregation 

Group hereunder, each plan of the Employer in which a Key Employee is a 

participant in the Plan Year containing the Detennination Date or any of the 

four preceding Plan Years, and each other plan of the Employer which 

enables any plan in which a Key Employee participates to meet the 

requirements of Code Sections 401(a)(4) or 410, will be required to be 

aggregated. Such group shall be known as a Required Aggregation Group. 

10 

#2505297-v2 

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In the case of a Required Aggregation Group, each plan in the group will be 

considered a Top Heavy Plan if the Required Aggregation Group is a Top 

Heavy Group. No plan in the Required Aggregation Group will be 

considered a Top Heavy Plan if the Required Aggregation group is not a Top 

Heavy Group. 

(2) Pennissive Aggregation Group: The Employer may also include any other 

plan not required to be included in the Required Aggregation Group, 

provided the resulting group, taken as a whole, would continue to satisfy the 

provisions of Code Sections 401(a)(4) and 410. Such group shall be known 

as a Pennissive Aggregation Group. 

In the case of a Pennissive Aggregation Group, only a plan that is part of the 

Required Aggregation group will be considered a Top Heavy Plan if the 

Permissive Aggregation Group is a Top Heavy Group. No plan in the 

Permissive Aggregation Group will be considered a Top Heavy Plan if the 

Permissive Aggregation Group is not a Top Heavy Group. 

(3) Only those plans of the Employer in which the Determination Dates fall 

within the same calendar year shall be aggregated in order to determine 

whether such plans are Top Heavy Plans. 

(4) An Aggregation Group shall include any tenninated plan of the Employer if 

it was maintained within the last five (5) years ending on the Detennination 

Date. 

(d) "Determination Date" means ( a) the last day of the preceding Plan Year, or (b) in 

the case of the first Plan Year, the last day of such Plan Year. 

(e) Present Value of Accrued Benefit: In the case of a defined benefit plan, a 

Participant's Present Value of Accrued Benefit shall be detennined: 

(1) in the case of a Participant other than a Key Employee, using the single 

accrual method used for all plans of the Employer and Affiliated Employers, 

or if no such single method exists, using a method which results in benefits 

accruing not more rapidly than the slowest accrual rate pe1mitted under 

Code Section 41 l(b)(l)(C). 

(2) as of the most recent "actuarial valuation date," which is the most recent 

valuation date within a twelve (12) month period ending on the 

Determination Date. 

(3) for the first Plan Year, as if (a) the Participant terminated service as of the 

Detennination Date; or (b) the Participant terminated service as of the 

11 

#2505297-v2 

50300.0016 
achmrial valuation date, but taking into account the estimated Accrued 

Benefits as of the Detennination Date. 

(4) for the second Plan Year, the Accrued Benefit taken into account for a 

current Participant must not be less than the Accrued Benefit taken into 

account for the first Plan Year unless the difference is attributable to using 

an estimate of the Accrued Benefit as of the Determination Date for the first 

Plan Year and using the actual Accrued Benefit for the second Plan Year. 

(5) for any other Plan Year, as if the Paiiicipant terminated service as of the 

actuarial valuation date. 

(6) the actuarial valuation date must be the same date used for computing the 

defined benefit plan minimum funding costs, regardless of whether a 

valuation is perfonned that Plan Year. 

(7) by not taking into account proportional subsidies. 

(8) by taking into account nonproportional subsidies. 

(f) The calculation of a Participant's Present Value of Accrued Benefit as of a 

Determination Date shall be the sum of: 

(1) the Present Value of Accrued Benefit using the actuarial assumptions of 

Section 1.3, which assumptions shall be identical for all defined benefit 

plans being tested for Top Heavy Plan status. 

(2) any Plan distributions made within the Plan Year that includes the 

Detennination Date. However, in the case of distributions made after the 

valuation date and prior to the Detennination Date, such distributions are not 

included as distributions for top heavy purposes to the extent that such 

distributions are already included in the Participant's Present Value of 

Accrued Benefit as of the valuation date. Notwithstanding anything herein 

to the contrary, all distributions, including distributions made prior to 

January 1, 1984, and distributions under a terminated plan which if it had 

not been terminated would have been required to be included in an 

Aggregation Group, will be counted. Further, benefits paid on account of 

death, to the extent such benefits do not exceed the Present Value of 

Accrued Benefits existing immediately prior to death, shall be treated as 

distributions for the purposes ofthis paragraph. 

(3) any Employee contributions, whether voluntary or mandatory. However, 

amounts attributable to tax deductible Qualified Voluntary Employee 

Contributions shall not be considered to be a part of the Participant's Present 

Value of Accrued Benefit. 

12 

#2505297-v2 

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(4) with respect to unrelated rollovers and plan-to-plan transfers (ones which are 

both initiated by the Employee and made from a plan maintained by one 

employer to a plan maintained by another employer), if this Plan provides 

the rollovers or plan-to-plan transfers, it shall always consider such rollovers 

or plan-to-plan transfers as a distribution for the purposes of this Section. If 

this Plan is the plan accepting such rollovers or plan-to-plan transfers, it 

shall not consider such rollovers or plan-to-plan transfers accepted after 

December 31, 1983, as part of the Participant's Present Value of Accrued 

Benefit. 

(5) with respect to related rollovers and plan-to-plan transfers ( ones either not 

initiated by the Employee or made to a plan maintained by the same 

employer), if this Plan provides the rollovers or plan-to-plan transfers, it 

shall not be counted as a distribution for purposes of this Section. If this 

Plan is the plan accepting such rollovers or plan-to-plan transfers, it shall 

consider such rollovers or plan-to-plan transfers as part of the Participant's 

Present Value of Accrued Benefit, irrespective of the date on which such 

rollovers or plan-to-plan transfers are accepted. 

(6) for the purposes of determining whether two employers are to be treated as 

the same employer in (4) and (5) above, all employers aggregated under 

Code Section 414(b), (c), (m) or (o) are treated as the same employer. 

(g) "Top Heavy Group" means an Aggregation Group in which, as of the Determination 

Date, the sum of: 

(1) the Present Value of Accrued Benefits of Key Employees under all defined 

benefit plans included in the group, and 

(2) the Aggregate Accounts of Key Employees under all defined contribution 

plans included in the group, exceeds sixty percent ( 60%) of a similar sum 

detennined for all Participants. 

2.3 DETERMINATION OF PRESENT VALUES AND AMOUNTS 

This section 2.3 shall apply for the purposes of detennining the present values of Accrued 

Benefits and the amounts of account balances of Employees as of the Detennination Date, for 

Plan Years beginning after December 31, 2001. 

(a) Distributions during year ending on the Detennination Date: The present values 

of Accrued Benefits and the amounts of account balances of an Employee as of 

the Detennination Date shall be increased by the distributions made with respect 

to the Employee under the Plan and any plan aggregated with the Plan under 

section 416(g)(2) of the Code during the I-year period ending on the 

Determination Date. The preceding sentence shall also apply to distributions 

under a terminated plan which, had it not been terminated, would have been 

13 

#2505297-v2 

50300.0016 
aggregated with the Plan under section 416(g)(2)(A)(i) of the Code. In the case of 

a distribution made for a reason other than severance from employment, death, or 

disability, this provision shall be applied by substituting "5-year period" for "1-

year period." 

(b) Employees not performing services during year ending on the Detennination 

Date: The Accrued Benefits and accounts of any individual who has not 

performed services for the Employer during the I-year period ending on the 

Determination Date shall not be taken into account. 

2.4 MINIMUM BENEFITS 

For Plan Years beginning after December 31, 2001, for purposes of satisfying the 

minimum benefit requirements of section 416( c )(1) of the Code and the Plan, in determining 

years of service with the Employer, any service with the Employer shall be disregarded to the 

extent that such service occurs during a Plan Year when the Plan benefits (within the meaning of 

section 41 0(b) ofthe Code) no Key Employee or Fonner Key Employee. 

2.5 EXCLUSION OF COLLECTIVELY BARGAINED EMPLOYEES 

The provisions of this Article II do not apply with respect to any Employee included in a 

unit of employees covered by a collective bargaining agreement unless the application of such 

Article has been agreed upon with the collective bargaining agents. 

ARTICLE III 

ELIGIBILITY /PARTICIPATION 

3.1 COMMENCEMENT OF PARTICIPATION 

(a) Prior to Januaiy 1, 1976. Each Employee who earned Future Pension Service prior 

to January 1, 1976, shall continue to participate herein. 

(b) On and After January 1, 1976. An Employee, who completes at least five hundred 

(500) Hours of Vesting Service during a Plan Year after January 1, 1976, shall 

become a Participant herein on the first day of the Plan Year in which he earned 

such Hours. 

3.2 ALTERNATE COMMENCEMENT OF PARTICIPATION 

In the event an Eligible Employee who is not a participant herein, earns at least one 

thousand (1,000) Hours of Service during a twelve (12) consecutive month period measured from 

his/her employment commencement date and ending after January 1, 1976, said Employee shall 

become a Participant on the earlier of the July 1 or January 1 next following the last day of the 

twelve (12) consecutive month period. 

14 

#2505297-v2 

50300.0016 
3.3 DETERMINATION OF ELIGIBILITY 

The Administrator shall detennine the eligibility of each Employee for participation in the 

Plan based upon information furnished by the Employer. Such detennination shall be conclusive 

and binding upon all persons, as long as the same is made pursuant to the Plan and the Act. Such 

determination shall be subject to review per Section 11.7. 

3.4 TERMINATION OF PARTICIPATION 

A Participant shall cease to be a Participant on the earlier of the following: 

(a) the date of his death, or 

(b) the date he no longer has any Pension Service or Vesting Service to his credit, or 

(c) the date he is no longer entitled to a periodic benefit payment hereunder. 

3.5 OMISSION OF ELIGIBLE EMPLOYEE 

If, in any Plan Year, any Employee who should be included as a Participant in the Plan is 

erroneously omitted and discovery of such omission is not made until after a contribution by his 

Employer for the year has been made, the Employer shall make a subsequent contribution with 

respect to the omitted Employee in the amount which the said Employer would have contributed 

with respect to him had he not been omitted. Such contribution shall be made regardless of whether 

or not it is deductible in whole or in part in any taxable year under applicable provisions of the 

Code. 

3.6 INCLUSION OF INELIGIBLE EMPLOYEE 

If, in any Plan Year, any person who should not have been included as a Participant in the 

Plan is erroneously included and discovery of such incorrect inclusion is not made until after a 

contribution for the year has been made, the Employer shall not be entitled to recover the 

contribution made with respect to the ineligible person regardless of whether or not a deduction is 

allowable with respect to such contribution. In such event, the amount cont1ibuted with respect to 

the ineligible person shall constitute a Forfeiture for the Plan Year in which the discovery is made. 

ARTICLE IV 

CONTRIBUTIONS 

4.1 FORMULA FOR DETERMINING EMPLOYER'S CONTRIBUTION 

(a) The Employer shall make contributions on the following basis. On behalf of each 

Participant for each year of his participation in this Plan, the Employer shall 

contribute the amount called for in the respective Collective Bargaining Agreement. 

15 

#2505297-v2 

50300.0016 
(b) Should the Employer, for any reason, fail to make a contribution for any year or 

should the Employer fail to make a contribution as provided for herein, then such 

deficiency shall be made up in subsequent years. 

(c) Notwithstanding the foregoing, the Employer's contribution for any Plan Year shall 

not exceed the maximum amount allowable as a deduction to the Employer under 

the provisions of Code Section 404. 

4.2 TIME OF PAYMENT OF EMPLOYER'S CONTRIBUTION 

The Employer shall pay its contributions to the Plan as required by the Collective 

Bargaining Agreement. 

4.3 ACTUARIAL METHODS 

In establishing the liabilities under the Plan and contributions thereto, the enrolled actuary 

will use such methods and assumptions as will reasonably reflect the cost of the benefits. The Plan 

assets are to be valued on the last day of the Plan Year ( or on any other date determined by the Plan 

Administrator) using any reasonable method of valuation that takes into account fair market value 

pursuant to regulations prescribed by the Secretary of Treasury. There must be an actuarial 

valuation of the Plan at least once every year. 

ARTICLE V 

PENSION SERVICE 

5.1 PENSION SERVICE 

For purposes of detennining a Participant's accrued benefits, Pension Service shall include 

all Hours of Service completed by a Participant with a Contributing Employer, and shall be 

detennined as follows: 

(a) Pension Service before May 1, 1966. For Plan Years prior to May 1, 1966, one (1) 

year of Pension Service shall be credited for each Plan Year in which the Participant 

completes five hundred (500) Hours of Service. 

(b) Pension Service from May 1, 1966 to December 31, 1975. Subsequent to May 1, 

1966 and prior to January 1, 1976, one (1) year of Pension Service shall be credited 

for each Plan Year in which the Participant completes fourteen hundred (1,400) or 

more Hours of Service. For any Plan Year in which a Participant completes less 

than fourteen hundred (1,400) Hours of Service, one-eighth (1/8) of a year of 

Pension Service shall be credited for each one hundred seventy-five (175) Hours of 

Service. 

16 

#2505297-v2 

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(c) Pension Service on or After January 1, 1976. Credit for Pension Service after 

January 1, 1976 shall be granted to an Employee at the rate of .001 of a Year of 

Future Pension Service for each Hour of Service earned during a Plan Year. 

(d) Pension Service on or After January 1, 2009. Credit for Pension Service after 

January 1, 2009 shall be granted to an Employee at the rate of one-tenth of a Year 

of Pension Service for every 100 Hours of Service worked during the Plan Year. 

For purposes of accruing Pension Service, an Employee working at less than a 

Basic Journeyman's hourly rate shall be credited with that proportion of an Hour 

of Service as their Employer's hourly contribution rate bears to the hourly 

contribution for a Basic Journeyman. The maximum amount of Pension Service 

that may be earned in a single Plan Year will be capped at 1.4 years ( 1400 Hours 

of Service). 

5.2 LIMITATIONS 

Prior to May 1, 1971 a maximum of one ( 1) Year of Pension Service may be credited to an 

Employee for any one (1) Plan Year. No Pension Service shall be credited following actual 

commencement of benefits hereunder. Hours of Service performed as a partner or a sole proprietor 

shall not be taken into consideration for any purposes under this Plan. 

ARTICLE VI 

VESTING SERVICE 

6.1 VESTING 

(a) From May 1, 1966 to December 31, 1975. A Paiiicipant's interest in the pension 

benefits provided hereunder shall be fully one hundred (100%) percent vested on the 

earliest date from May 1, 1966 to December 31, 1975 on which: 

(1) the Participant satisfies the age and service requirements for a Normal 

Pension hereunder; 

(2) the Participant completes at least fifteen (15) Years of Pension Service, 

including at least two (2) Years of Future Pension Service, and is at least 

fifty-five (55) years of age; or 

(3) the Participant has attained Normal Retirement Age. 

(b) On or After January 1, 1976. A Participant's interest in the pension benefits 

provided hereunder shall be fully one hundred ( 100%) percent vested on the earliest 

date after January 1, 1976 on which: 

17 

#2505297-v2 

50300.0016 
(1) the Participant has satisfied the age and service requirements for a Nonnal, 

Early, or Special Early Pension hereunder; 

(2) the Participant has completed at least fifteen ( 15) Years of Pension Service 

including at least two (2) years of Future Pension Service; 

(3) the Participant has completed at least five ( 5) Years ( ten ( 10) Years prior to 

1999) ofVesting Service; or 

(4) the Participant has attained Normal Retirement Age hereunder. 

6.2 VESTING SERVICE 

(a) Prior to January 1, 1976. For Plan Years prior to January 1, 1976, one (1) Year of 

Vesting Service shall be credited for each Plan Year in which the Participant 

completes at least five-eighths ( 5/8) or more of a Year of Pension Service. 

(b) On or after January 1, 1976. For Plan Years after January 1, 1976, one (1) Year of 

Vesting Service shall be credited for each Plan Year in which the Participant 

completes one thousand (1,000) Hours of Service. 

6.3 BREAKS IN SERVICE 

After January 1, 1976, a Plan Year during which a Participant completes less than five 

hundred ( 500) Hours of Service shall constitute a Break in Service. A Break in Service shall not be 

deemed to have occurred ifthe Participant is absent for any portion of a Plan Year as a result of: 

(a) service in the armed forces of the United States for a period during which his reemployment rights are guaranteed by law; 

(b) a leave of absence granted by an Employer pursuant to a uniform nondiscriminatory policy; 

(c) pregnancy, child birth or the placement of a child for adoption with such Participant; 

(d) caring for any child during the period immediately following such birth or 

placement for adoption; or 

(e) a leave of absence granted by the Employer pursuant to the Family Medical Leave 

Act of 1993. 

Prior to 2001, a Break in Service did not occur if a Participant was re-employed by a 

Participant prior to the expiration ofthe Plan Year. 

Hours of Service shall include the periods set forth in Article VI for service from and after 

January 1, 1976. Upon incurring a Break in Service, a Participant's rights and benefits under the 

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Plan shall be detennined in accordance with his Pension Service and his Vesting Service at the time 

of the Break in Service. In the case of a Participant who has any one (1) year Break in Service, 

Years of Service before such Break shall not be taken into account until he has completed one (1) 

Year of Service upon his return, and shall not be taken into account in any event unless (i) he had a 

vested interest in the portion of his Accrued Benefit ( as dete1mined in accordance with Section 6.1 

hereof) at the time he incrnTed his Break in Service, or (ii) the number of his consecutive one (1) 

year Breaks in Service is less than the greater of ( a) five, or (b) the aggregate number of his Years 

of Service completed before his Break in Service. 

6.4 INTERRUPTED PENSION SERVICE 

In the event a Participant who is Vested herein incurs a Break in Service, all Pension 

Service and Vesting Service credited shall be classed as Interrupted Pension Service. 

Interrupted Pension Service includes the following: 

(a) A period of time during which an Employee is a Participant in the Plan, that does 

not contain five (5) (three (3) prior to 2005) consecutive Break in Service years; 

(b) A period of five (5) (three (3) prior to 2005) consecutive Break in Service years, 

during which an Employee is a Participant in the Plan, but which is not lost because 

ofthe Plan's Vesting provisions, or is later reinstated; 

(c) Each successive period of five (5) (three (3) prior to 2005) consecutive Break in 

Service years for a Participant, immediately succeeding a period described in 

subsection (b) above, and which is not lost because of the Plan's vesting provisions, 

or is later reinstated. 

ARTICLE VII 

BENEFITS 

7.1 NORMAL RETIREMENT BENEFIT 

Each Participant who retires on or after his Nonnal Retirement Date, on or after January 1, 

2009, shall be entitled to a monthly retirement benefit equal to Eighty Dollars ($80.00) for each 

year of Pension Service. For purposes of this paragraph, years of Pension Service used to 

detennine a Nonnal Retirement Benefit shall not include any segment of service that has been 

classed as Interrupted Pension Service. Notwithstanding the foregoing, the monthly retirement 

benefit accrued by a Participant as of December 31, 2008 shall not be reduced. 

In the event a Participant has been credited with a segment of Interrupted Pension Service, 

the monthly retirement benefit shall be the sum of the product of the number of years of Pension 

Service in each segment, and the unit monthly benefit rate in effect for each year of Pension Service 

for then future Pensioners at the end of each segment. 

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The unit monthly benefit rate applicable to a segment of Interrupted Pension Service shall 

be detennined according to the following schedule: 

Date Segment Ended 

Before 1976 

During 1976 

Dming 1977 

During 1978 or 1979 

During 1980 

During 1981 

During 1982 

During 1983 

During 1984 

During 1985 

During 1986 

During 1987 or 1988 

During 1989 

During 1990 or 1991 

During 1992 

During 1993 

During 1994 or 1995 

Dming 1996 

Dming 1997 

During 1998 

During 1999 

During 2000 to 2008 

During 2009 and later 

Applicable Unit Monthly Benefit Rate 

$ 3.30 

4.00 

5.00 

7.00 

9.00 

10.00 

11.00 

11.85 

14.30 

16.30 

17.55 

19.00 

21.30 

25.50 

30.00 

31.15 

32.10 

35.90 

46.40 

56.00 

71.00 

85.00 

80.00 

Participants who do not fall under the classification of a journeyman electrician for the 

purposes of receiving the full contribution currently specified in the Collective Bargaining 

Agreement shall have their accrual rate pro-rated by using a fraction, the numerator of which is 

the contribution amount actually received by such Participant, and the denominator of which is 

the contribution rate in effect for a journeyman electrician as specified in the Collective 

Bargaining Agreement. 

7.2 SPECIAL EARLY RETIREMENT BENEFIT 

Each Participant who retires on a Special Early Retirement Date, shall commencing on such 

date, be entitled to an unreduced Nonnal Retirement Benefit as hereinabove provided. 

7.3 EARLY RETIREMENT BENEFIT 

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Each Participant who retires on an Early Retirement Date, shall commencing on such date, 

be entitled to a Normal Retirement Benefit as hereinabove provided, actuarially reduced by one-half 

ofone percent (.50%) for each month his retirement precedes his Normal Retirement Date. 

Each Participant who retires on an Early Retirement Date on or after January 1, 2000 

shall, commencing on such date, be entitled to a Nonnal Retirement Benefit as hereinabove 

provided, actuarily reduced for each month his retirement precedes age 60 by three per centum 

(3%) per annum (0.25% per month). 

Effective June 1, 2014, each participant who retires on an Early Retirement Date shall, 

commencing on such date, be entitled to a monthly benefit as determined under Section 7.1, 

reduced by one-half of one percent (0.50%) for each month that his Early Retirement Date precedes 

age 58 and one-quarter of one percent (0.25%) for each month that his Early Retirement Date 

precedes age 60. 

Effective March 1, 2015, each Participant who retires on an Early Retirement Date before 

age 58 shall, commencing on such date, be entitled to a monthly benefit as determined under 

Section 7.1, reduced by one-half of one percent (0.50%) for each month that his Early Retirement 

Date precedes age 60. Each Participant who retires on an Early Retirement Date on or after age 58 

shall, commencing on such date, be entitled to a monthly benefit as determined under Section 7.1, 

reduced by one-quarter of one percent (0.25%) for each month that his Early Retirement Date 

precedes age 60. 

Effective April 1, 2018, each Participant who retires on an Early Retirement Date before age 

58, having completed, or 2,500 Hours of Service in the sixty (60) calendar months immediately 

preceding such date, shall be entitled to a monthly benefit as detennined under Section 7 .1, reduced 

by one-half of one percent (0.50%) for each month that his Early Retirement Date precedes age 60. 

Each Participant who retires on an Early Retirement Date on or after age 58, having completed 

2,500 Hours of Service in the sixty ( 60) calendar months immediately preceding such date shall, 

commencing on such date, be entitled to a monthly benefit as detennined under Section 7.1, 

reduced by one-quarter of one percent (0.25%) for each month that his Early Retirement Date 

precedes age 60. 

Each Participant who retires on an Early Retirement Date, without having completed 2,500 

Hours of Service in the sixty (60) calendar months immediately preceding such date, shall be 

entitled to a monthly benefit Actuarially Equivalent to a monthly benefit as detennined under 

Section 7 .1. 

7.4 DISABILITY RETIREMENT BENEFIT 

Each Participant who retires on a Disability Retirement Date, shall be eligible to receive a 

monthly retirement benefit commencing on such date. The amount of a Disability Retirement 

Benefit shall be equal to the Participant's accrued benefit as of his Disability Retirement Date, and 

shall be subject to the distribution rules as set forth under Article VIII herein. A disability retiree 

21 

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shall continue to be so regarded until he/she 1s no longer disabled, dies or attains Normal 

Retirement Age, whichever occurs first. 

A Paiiicipant shall be entitled to this benefit only if such Participant has been deemed 

disabled under New York State Disability Benefits Law, the Federal Social Security Act or 

Workers' Compensation. 

Effective April 1, 2018, the amount of a Disability Retirement Benefit shall be equal to 

the Early Retirement Benefit or Special Early Retirement Benefit to which the Participant would 

be entitled if he were to retire on his Disability Retirement Date, but in no event will the 

Participant's Disability Retirement benefit be less than his monthly Accrued Benefit payable on 

his Nonnal Retirement Date reduced by thirty (30%) per cent. A disability retiree shall continue 

to be so regarded until he/she is no longer disabled, dies or first becomes eligible for an Early 

Retirement Benefit. 

Effective April 1, 2018, a Participant shall be entitled to this benefit only if such 

Participant has been deemed Totally and Pennanently Disabled and has qualified for a benefit 

under New York State Disability Benefits Law, the Federal Social Security Act or Workers' 

Compensation. 

7.5 CHANGES IN AMOUNT OF BENEFITS 

In detennining the amount of benefits it is and shall continue to be the policy ofthe Trustees 

to make such payments on an actuarially sound basis, as the same may be determined by the 

Trustees upon advice of their actuary, pension consultants and legal counsel, keeping a reserve at all 

times to meet commitments to Employees who have retired and to make payments due in future 

years to those Employees who may retire subsequently and to provide for the expenses of the Fund. 

7.6 BENEFIT INCREASES 

Effective January 1, 1988, the monthly pension benefit payable to all Employees shall be 

increased by the greater of: (i) five (5%) percent or (ii) ten ($10.00) dollars. 

Effective January 1, 1989, the monthly pension benefit payable to all retired Employees 

shall be increased by five (5%) percent. 

Effective April 1, 1991, the monthly pension benefit payable to all retired Employees shall 

be increased by five (5%) percent. 

Effective January 1, 1993, the monthly pension benefit payable to all retired Employees 

shall be increased by the greater of: (i) five (5%) percent, or (ii) ten ($10.00) dollars. 

Effective January 1, 1994, the monthly pension benefit payable to all retired Employees 

shall be increased by the greater of: (i) three (3%) percent, or (ii) ten ($10.00) dollars. 

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#2505297-v2 

50300.0016 
Effective January 1, 1995, the monthly pension benefit payable to all retired Employees 

shall be increased by the greater of: (i) three (3%) percent, or (ii) ten($ 10.00) dollars. 

Effective January 1, 1996, the monthly benefit payable to all retired Employees shall be 

increased by five (5%) percent. 

Effective January 1, 1997, the monthly benefit payable to all Employees retired as of that 

date shall be increased by five (5%) percent. 

Effective January 1, 1998, the monthly benefit payable to all retired Employees shall be 

increased by five (5%) percent. 

Effective January 1, 1998, the monthly pension payable to a Retired Participant, who has 

been retired for five (5) or more consecutive years, shall be increased by $7.35 times the number of 

years said Participant has been retired. 

Effective January 1, 1998, the monthly pension payable to a Retired Participant, who has 

been retired for less than five (5) consecutive years, shall be increased by $30.00. 

Effective January 1, 1999, the monthly pension payable to all Employees retired as of that 

date shall be increased by ten (10%) percent or $100.00 per month, whichever is greater. The 

maximum amount of an increase shall be $200.00 per month. 

Effective January 1, 2000, the monthly pension benefit payable to all retirees retired as of 

that date shall be increased by the amount of twenty ($20.00) dollars times the retiree's years of 

service, but not less than one hundred (S 100.00) dollars. 

For the retiree increases effective January 1, 1998 and January 1, 2000, the years of 

retirement are measured from the year of increase and go back to the year of retirement. 

Consequently, any portion of a year is equivalent to an entire year. 

7.7 MINIMUM BENEFIT REQUIREMENT FOR TOP HEAVY PLAN 

(a) The minimum Accrued Benefit derived from Employer contributions to be provided 

under this Section for each Employee who is a Participant during a Top Heavy Plan 

Year shall equal the product of (1) one-twelfth (1112th) of "415 Compensation" 

averaged over the five (5) consecutive "limitation years" (or the actual number of 

"limitation years," if less) which produce the highest average, and (2) the lesser of 

(i) two (2%) percent multiplied by Plan Years of Service, or (ii) twenty (20%) 

percent, expressed as a single life annuity. 

(b) For purposes of providing the minimum benefit under Code Section 416, an 

Employee who is not a Participant solely because ( 1) his Compensation is below a 

stated amount or (2) he declined to make mandatory contributions (if required) to 

the Plan will be considered to be a Participant. Furthermore, such minimum benefit 

23 

#2505297-v2 

50300.0016 
shall be provided regardless of whether such Employee is employed on a specified 

date. 

(c) For purposes of this Section, Plan Years of Service for any Plan Year beginning 

before January 1, 1984, or for any Plan Year during which the Plan was not a Top 

Heavy Plan shall be disregarded. 

(d) For purposes of this Section, "415 Compensation" for any "limitation year" ending 

in a Plan Year which began prior to January 1, 1984, subsequent to the last 

"limitation year" during which the Plan is a Top Heavy Plan, or in which the 

Participant failed to complete a Plan Year of Service, shall be disregarded. 

(e) For purposes of this Section, "415 Compensation" shall be limited to $200,000.00. 

Such amount shall be adjusted at the same time and in the same manner as permitted 

under Code Section 415( d), except that the dollar increase in effect on January 1 of 

any calendar year shall be effective for the Plan Year beginning with or within such 

calendar year and the first adjustment to the $200,000.00 limitation shall be 

effective on January 1, 1990. For any short Plan-Year the "415 Compensation" 

limit shall be an amount equal to the "415 Compensation" limit for the calendar year 

in which the Plan Year begins multiplied by the ratio obtained by dividing the 

number of full months in the short Plan Year by twelve ( 12). 

In addition to other applicable limitations set forth in the Plan, and notwithstanding 

any other provision of the Plan to the contrary, for Plan Years beginning on or after 

January 1, 1994, the annual Compensation of each Employee taken into account 

under the Plan shall not exceed the OBRA '93 annual compensation limit. The 

OBRA '93 annual compensation limit is $150,000.00, as adjusted by the 

Commissioner for increases in the cost of living in accordance with Code Section 

401 ( a)( 17)(B). The cost of living adjustment in effect for a calendar year applies to 

any period, not exceeding twelve months, over which Compensation is determined 

( determination period) beginning in such calendar year. If a determination period 

consists of fewer than 12 months, the OBRA'93 annual compensation limit will be 

multiplied by a fraction, the numerator of which is the number of months in the 

detennination period, and the denominator of which is 12. 

For Plan Years beginning on or after January 1, 1994, any reference in this Plan to 

the limitation under Code Section 401(a)(l 7) shall mean the OBRA '93 annual 

compensation limit set forth in this provision. 

If Compensation for any prior determination period is taken into account in 

determining an Employee's benefits accruing in the Plan Year, the Compensation 

for that prior determination period is subject to the OBRA '93 annual compensation 

limit in effect for that prior detennination period. For this purpose, for 

determination periods beginning before the first day of the first Plan Year beginning 

on or after January 1, 1994, the OBRA '93 annual compensation limit is 

$150,000.00. 

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#2505297-v2 

50300 0016 
(t) If Section 7.1 provides for the Normal Retirement Benefit to be paid in a fonn other 

than a single life annuity, the Accrued Benefit under this Section shall be the 

Actuarial Equivalent of the minimum Accrued Benefit under (a) above pursuant to 

Section 1.3. 

(g) If payment of the minimum Accrued Benefit co1mnences at a date other than 

Normal Retirement Date, the minimum Accrued Benefit shall be the Actuarial 

Equivalent of the minimum accrued benefit commencing at Normal Retirement 

Date pursuant to Section 1.3. 

(h) To the extent required to be non-forfeitable under Section 3.4, the mm1mum 

Accrued Benefit under this Section may not be forfeited under Code Section 411 

(a)(3)(B) or Code Section 41 l(a)(3)(D). 

(i) For purposes of satisfying the minimum benefit requirements of section 416(c)(l) 

of the Code and the Plan, in detennining years of service with the Employer, any 

service with the Employer shall be disregarded to the extent that such service 

occurs during a Plan Year when the plan benefits (within the meaning of section 

41 0(b) of the Code) no Key Employee or former Key Employee. 

7.8 COMMENCEMENT OF BENEFITS 

Notwithstanding any provision in the Plan to the contrary, the distribution of a Participant's 

benefits shall be made in accordance with the following requirements and shall otherwise comply 

with Code Section 401(a)(9) and the Regulations thereunder (including Regulation l.40l(a)(9)-2), 

the provisions of which are incorporated herein by reference: 

(a) A Participant's benefits shall be distributed or must begin to be distributed to him no 

later than April 1st of the calendar year following the later of (i) the calendar year in 

which the Participant attains age 701⁄2 or, at the Participant's option, (ii) the calendar 

year in which the Participant retires, provided, however, that this clause (ii) shall not 

apply in the case of a Participant who is a "five (5) percent owner" at any time 

during the five (5) Plan Year period ending in the calendar year in which he attains 

age 701⁄2 or, in the case of a Participant who becomes a "five (5%) percent owner" 

during any subsequent Plan Year, clause (ii) shall no longer apply and the required 

beginning date shall be the April 1st of the calendar year following the calendar year 

in which such subsequent Plan Year ends. Such distributions shall be equal to or 

greater than any required distribution. 

A Participant's accrued benefit shall be actuarially increased to take into account the 

period after age 701⁄2 in which the Employee does not receive any benefits under the 

plan. The actuarial increase begins on the April 1 following the calendar year in 

which the employee attains age 701⁄2 ( January 1, 1997 in the case of an Employee 

who attained age 701⁄2 prior to 1996), and ends on the date on which benefits 

commence after retirement in an amount sufficient to satisfy section 401(a)(9). 

25 

#2505297-v2 

50300.0016 
(b) Distributions to a Participant and his Beneficiaries shall only be made in accordance 

with the incidental death benefit requirements of Code Section 401(a)(9)(G) and the 

Regulations thereunder. 

For purposes of this paragraph, a "five (5%) percent owner" is any Employee who owns 

more than five (5%) percent of the capital or profits interest in the Employer or any of them. 

The payment of benefits under the Plan to an Employee, unless he otherwise so elects shall 

not begin later than the sixtieth ( 60th) day after the latest of the Plan Year in which: 

(a) The employee attains the Normal Retirement Age specified under the Plan; 

(b) The occun-ence of the tenth (10th) anniversary of the Plan Year in which the 

Employee commenced participation in the Plan; or 

(c) The Employee terminates service with all of the participating Employers. 

In the case of a Participant who satisfied the service requirements, but separated from 

service (with a non-forfeitable right to an accrued benefit), before satisfying the age requirement for 

any Early Retirement Benefit hereunder, the Participant shall be entitled, upon satisfaction of such 

age requirement, to receive a benefit not less than the Normal Retirement Benefit reduced as 

provided in the Plan. 

Notwithstanding the foregoing, a Participant who has reached his Normal Retirement Date 

while still in employment may elect to start receiving payment of his benefit during employment. 

Effective January 1, 1999, in-service distributions shall be limited to the benefit accrued through 

December 31, 1998, except as described in the preceding paragraphs for Participants who have 

attained age 701⁄2. 

7.9 SUSPENSION OF BENEFITS 

The payment of benefits under this Plan shall be suspended for each calendar month during 

which the Participant completes, as an employee or in a self-employed capacity, forty ( 40) or more 

Hours of Service with an Employer, subsequent to the commencement of benefits, in the same 

industry, or in the practice of the same trade or craft of an Employee under the Plan, and within the 

geographic jurisdiction covered by the Union, herein refen-ed to as "Disqualifying Employment.". 

The above-referenced suspension of benefits shall be pursuant to regulations prescribed by the 

Secretary of Labor as it may be necessary to can-y out the purposes of this subparagraph. 

A retired Participant shall notify the Plan in writing within 15 days after starting any work 

of a type that is or may be Disqualifying Employment under the provisions of the Plan and 

without regard to the number of hours of such work (that is, whether or not less than 40 hours in 

a month). If a Participant has worked in Disqualifying Employment in any month and has failed 

to give timely notice to the Plan of such employment, the Trustees shall presume that he worked 

for at least 40 hours in such month and any subsequent month before the Participant gave notice 

26 

#2505297-v2 

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that he has ceased Disqualifying Employment. The Paiiicipant shall have the right to overcome 

such presumption by establishing to the satisfaction of the Trustees that his work was not in fact 

an appropriate basis, under the Plan, for suspension of his benefits. 

In the event that a retired Participant returns to covered employment, his pension shall be 

suspended and the Paiiicipant shall continue to accrue pension credits as provided in Article V. 

Upon retirement, the Participant's pension shall be computed based upon his prior pension 

credits earned, reduced actuarially for any amounts received while on Early Disability or Normal 

Retirement. 

In the case of an Employee who subsequently retires, his pension shall be computed by 

using the benefits in effect at the time of the Employee's prior retirement for all Years of Service 

prior to said Early Retirement, and the benefits in effect upon the Employee's subsequent 

retirement for all Years of Service earned subsequent to prior retirement, reduced actuarially as 

provided in the prior paragraph. 

In no event shall there be a duplication of benefits upon re-entry into the plan. 

7.10 NOTIFICATION OF SUSPENSION OF BENEFITS 

No payment shall be withheld by the Plan pursuant to Section 7.9 above, unless the Plan 

notifies the Employee by personal delivery or first-class mail during the first calendar month or 

payroll period in which the Plan withholds payments, that his benefits are suspended. Such 

Notification shall contain a description of the specific reasons for the suspension of benefits, a 

description of the Plan provision relating to the suspension of payments, a copy of such provisions, 

and a statement to the effect that applicable Department of Labor regulations may be found in 

Section 2530.203-3 of the Code of Federal Regulations. 

In addition, the notice shall infonn the Employee of the Plan's procedures for affording a 

review of the suspension of benefits. Requests for such reviews may be considered in accordance 

with the claims procedures adopted by the Plan pursuant to Section 503 of the Employment 

Retirement Income Security Act of 1974 and applicable regulations. 

ARTICLE VIII 

FORMS OF BENEFIT 

8.1 QUALIFIED JOINT AND SURVIVOR ANNUITY 

Unless he elects an alternative form of benefit described in this Article VIII, a married 

employee who retires on a Normal Retirement Date or Early Retirement Date shall be paid such 

benefit in the form of a 100% Joint and Survivor Annuity. Under the 100% Joint and Survivor 

Annuity, a reduced amount shall be paid to the Employee for his lifetime, and if his Spouse is 

surviving at the time of his death, such Spouse shall thereafter receive monthly payments in an 

amount equal one hundred percent (100%) of the reduced monthly amount which had been payable 

27 

#2505297-v2 

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to the Employee during his lifetime ending with the last such monthly payment due before such 

Spouse's death. 

An Employee who retires on a Nonna} Retirement Date or Early Retirement Date may also 

elect to receive an annuity benefit with continuation of payments to his Spouse at a rate of 50% or 

75% ofthe rate payable to the Employee during his lifetime. 

The monthly amount of any pension which becomes effective in the form of a 100% Joint 

and Survivor Annuity shall be dete1mined by multiplying the full monthly amount of pension 

otherwise payable (had the Participant and his spouse rejected the Joint and Survivor Annuity at the 

time of retirement without electing any optional form of pension) by 80% plus 1 % for each full year 

that the spouse's age is greater than the Participant's age or minus 1% for each full year that the 

spouse's age is less than the Participant's age. 

The monthly amount of any pension which becomes effective in the form of a 75% Joint 

and Survivor Annuity option shall be determined by multiplying the full monthly amount of 

pension othe1wise payable (had the Participant and his spouse rejected the Joint and Survivor 

Annuity at the time of retirement without electing any optional form of pension) by 85% plus 1 % 

for each full year that the spouse's age is greater than the Participant's age or minus 1 % for each 

full year that the spouse's age is less than the Participant's age. 

The monthly amount of any pension which becomes effective in the fmm of a 50% Joint 

and Survivor Annuity option shall be detennined by multiplying the full monthly amount of 

pension otherwise payable (had the Participant and his spouse rejected the Joint and Survivor 

Annuity at the time of retirement without electing any optional form of pension) by 90% plus 1 % 

for each full year that the spouse's age is greater than the Participant's age or minus 1% for each 

full year that the spouse's age is less than the Participant's. 

In addition to the Joint and Survivor Annuity Options described above, a Participant may 

further elect to receive each Option with a "Pop-Up" feature. Such fonn of Joint and Survivor 

Annuity shall be Actuarially Equivalent to the nonnal Joint and Survivor form of benefit, shall 

provide a reduced monthly benefit to the Participant during his lifetime, and shall provide that in 

the event the Participant's Spouse predeceases the Participant after payment of the Participant's 

benefits have begun, the monthly amount payable to the Participant shall be increased to the full 

monthly amount that would have been payable under the Life Annuity as set forth in Section 8.2 

as if a Joint and Survivor Annuity fonn had not been in effect. 

8.2 STRAIGHT-LIFE ANNUITY 

A Participant who is not married on his Retirement Date, or who has not been married for at 

least one (1) full year, may elect to receive his Retirement Benefit in the fonn of a Straight-Life 

Annuity. This form of benefit provides for a monthly benefit payable for the lifetime of the 

Participant, the final payment of which shall be made as of the last day of the month in which the 

death ofthe Participant occurs. 

8.3 LEVEL INCOME OPTION 

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#2505297-v2 

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As an alternative fonn of the Married Couple benefit or the Straight-Life Annuity benefit, a 

Paiiicipant retiring prior to age 60 may elect to increase his monthly benefit payable prior to age 60, 

by an amount not to exceed fifty (50%) percent of the Participant's projected Social Security 

benefit. His monthly benefit payable upon attaining age 60 will be reduced to an amount that will 

provide him with a total benefit which is the Actuarial Equivalent of the Straight-Life Annuity or 

Married Couple benefit, as applicable. This option will not affect the survivor benefit payable to 

the Participant's spouse that would otherwise be payable to her upon his death under the Married 

Couple benefit fonn. It is the intent of the Trustees that this option be used by the Participant to 

increase his monthly benefit prior to age 60 so that upon attaining age 60, his benefit from the Fund, 

together with the portion of his Social Security benefit utilized in this option will be equal to his 

monthly benefit prior to age 60. 

8.4 W AIYER OF JOINT AND SURVIVOR ANNUITY 

An election to waive the Joint and Survivor Annuity must be made by the Participant in 

writing during the election period and be consented to by the Participant's Spouse. If the Spouse is 

legally incompetent to give consent, the spouse's legal guardian, even if such guardian is the 

Participant, may give consent. Such election shall designate a Beneficiary or a fonn of benefits that 

may not be changed without spousal consent. Such Spouse's consent shall be irrevocable and must 

acknowledge the effect of such election and be witnessed by a Plan representative or a notaiy 

public. Such consent shall not be required if it is established to the satisfaction of the Plan 

Administrator that the required consent cannot be obtained because there is no spouse, the spouse 

cannot be located, or other circumstances that may be prescribed by the Regulations. The election 

made by the Participant and consented to by his Spouse may be revoked by the Participant in 

writing without the consent of the Spouse at any time during the election period. The number of 

revocations shall not be limited. Any new election must comply with the requirements of this 

paragraph, a fonner Spouse's waiver shall not be binding upon a new Spouse. 

The election period to waive the Joint and Survivor Annuity shall be the 90 day period 

beginning on the "annuity starting date." 

For purposes of this Section 8.4, the "annuity starting date" means the first day of the first 

period for which an amount is paid as an annuity, or, in the case of a benefit not payable in the fonn 

of an annuity, the first day on which all events have occurred which entitle the Participant to such 

benefit. 

With regard to the election, the Plan Administrator shall provide to the Participant no less 

than 30 days and no more than 90 days before the "annuity staiiing date" a written explanation of: 

(a) the tenns and conditions of the Joint and Survivor Annuity; 

(b) the Participant's right to make, and the effect of, an election to waive the Joint and 

Survivor Annuity; 

29 

#2505297-v2 

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(c) the right of the Participant's Spouse to consent to any election to waive the Joint and 

Survivor Annuity; and 

(d) the right of the Participant to revoke such election, and the effect of such a 

revocation. 

Ifthe value of the Participant's benefit does not exceed $5,000.00 and has never exceeded 

$5,000.00 at the time of any prior distribution, the Plan Administrator may immediately 

distribute such benefit without such Participant's consent. No distribution may be made under 

the preceding sentence after the "annuity starting date" unless the Participant and his Spouse 

consent in writing to such distribution. Any written consent required under this paragraph must 

be obtained not more than 90 days before commencement of the distribution. 

Any distribution to a Participant who has a benefit, which exceeds, or has ever exceeded, 

$5,000.00 at the time of any prior distribution shall require such Participant's consent if such 

distribution commences prior to the later of his Nonnal Retirement Age or age 62. With regard 

to this required consent: 

(a) No consent shall be valid unless the Participant has received a general description 

of the material features and an explanation of the relative values of the optional 

fonns of benefit available under the Plan that would satisfy the notice 

requirements of Code Section 417. 

(b) The Participant must be infonned of his right to defer receipt of the distribution. 

If a Participant fails to consent, it shall be deemed an election to defer the 

commencement of payment of any benefit. However, any election to defer receipt 

of benefits shall not apply with respect to distributions which are required under 

Section 7.8. 

(c) Notice of the rights specified under this paragraph shall be provided no less than 

30 days and no more than 90 days before the "annuity starting date." 

(d) Written consent of the Participant to the distribution must not be made before the 

Participant receives the notice and must not be made more than 90 days before the 

"annuity starting date." 

Subject to the Spouse's right of consent afforded under the Plan, the restrictions imposed by this 

Section shall not apply if a Participant has, prior to January 1, 1984, made a written designation 

to have his retirement benefit paid in an alternate method acceptable under Code Section 401(a) 

as in effect prior to the enactment of the Tax Equity and Fiscal Responsibility Act of 1982. 

Notwithstanding the above, effective March 22, 2005, in the event of a mandatory distribution 

greater than $1,000 that is made in accordance with the provisions of the Plan providing for an 

automatic distribution to a Participant without the Participant's consent, if the Participant does 

not elect to have such distribution paid directly to an "eligible retirement plan" specified by the 

Participant in a direct rollover (in accordance with the direct rollover provisions of the Plan) or to 

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