Aiwd0372.docx - 2 

0014 AIW 35 / JG/cmh 

Offices in Principal Cities Worldwide

1301 Fifth Avenue

Suite 3800

Seattle, WA 98101-2605

USA

Tel +1 206 624 7940

Fax +1 206 623 3485

September 28, 2017 milliman.com

Internal Revenue Service

Employee Plans Compliance Unit

Group 7602 (TEGE: EP: EPCU)

230 S. Dearborn Street

Room 1700, 17th Floor

Chicago, IL 60604

Re: Pension Protection Act (PPA) Actuarial Certification 

for the Plan Year Beginning July 1, 2017 – Alaska Ironworkers Pension Plan

In accordance with IRC Section 432(b)(3)(A), we have prepared and attached an actuarial 

certification for the Plan Year beginning July 1, 2017 for the Alaska Ironworkers Pension Plan. 

In our opinion, the assumptions used for the actuarial certification are individually reasonable 

based on the experience of the Plan and on reasonable expectations of anticipated experience 

under the Plan. The projections in this report are dependent on the assumptions used. 

Differences between our projections and actual amounts depend on the extent to which future 

experience conforms to the assumptions made for this analysis. It is certain that actual 

experience will not conform exactly to the assumptions used in these projections. Actual results 

will differ from projected amounts to the extent that actual experience is better or worse than 

expected.

On the basis of the foregoing and as members of the American Academy of Actuaries (AAA) 

who meet the Qualification Standards of the AAA to render the actuarial opinion contained 

herein, we hereby certify that, to the best of our knowledge and belief, this letter is complete and 

accurate and has been prepared in accordance with generally recognized and accepted 

actuarial principles and practices.

Josh Goodwin, ASA, EA, MAAA

Consulting Actuary

JG/cmh 

Enclosures

cc: Board of Trustees

Mr. Charles Dunnagan (w/ Enclosures)

Ms. Donna Whitford (w/ Enclosures)

Mr. Mark Olleman (w/ Enclosures)

Exhibit 2 AIPT 018
ALASKA IRONWORKERS PENSION PLAN

PPA Actuarial Certification for Plan Year Beginning July 1, 2017

Alaska Ironworkers Pension Plan

September 28, 2017 PPA Actuarial Certification

Page 1 

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0014 AIW 35 / JG/cmh 

Funding Status Projection Results

• Projection of Credit Balance

Plan Year 

Beginning

Funded 

Percentage

Credit Balance at 

End of Year

7/1/2017 54% Projected Funding Deficiency

7/1/2018 52% Projected Funding Deficiency

7/1/2019 48% Projected Funding Deficiency

7/1/2020 45% Projected Funding Deficiency

7/1/2021 43% Projected Funding Deficiency

7/1/2022 41% Projected Funding Deficiency

7/1/2023 38% Projected Funding Deficiency

Conclusion: The Plan currently has an accumulated funding deficiency. 

• Funded Percentage

The funded percentage as of July 1, 2017 is expected to be 54%.

Conclusion: The funded percentage is less than 65% as of July 1, 2017. 

• Projected Insolvency

As of July 1, 2017, the Plan is projected to become insolvent during the Plan Year 

beginning July 1, 2031.

Conclusion: The Plan is in critical and declining status according to 432(b)(6).

Status Certification

Based on the actuarial assumptions and methods, financial and participant data, and Plan 

provisions, as described in the actuarial report for the Plan year ended June 30, 2017, I hereby 

certify that the Alaska Ironworkers Pension Plan is considered “critical and declining” for the 

Plan Year beginning July 1, 2017, as defined in the Pension Protection Act of 2006 and 

amended by the Multiemployer Pension Reform Act of 2014.

Further, I hereby certify that to the best of my knowledge and belief, the actuarial assumptions 

employed in preparing this certification are individually reasonable and represent my best 

estimate of future experience. Further, the “projected industry activity” assumption, as required 

under IRC Section 432(b)(3)(B)(iii), has been provided by the Board of Trustees.

September 28, 2017 

Josh Goodwin Date

Enrolled Actuary Number 

Exhibit 2 AIPT 019
ALASKA IRONWORKERS PENSION PLAN

PPA Actuarial Certification for Plan Year Beginning July 1, 2017

Alaska Ironworkers Pension Plan

September 28, 2017 PPA Actuarial Certification

Page 2 

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0014 AIW 35 / JG/cmh 

Scheduled Progress Certification

IRC Section 432 requires the actuary to certify whether the Plan is making scheduled progress 

in meeting the requirements of its Rehabilitation Plan. The Rehabilitation Plan for the Alaska 

Ironworkers Pension Plan, which was adopted on August 30, 2010 and revised July 29, 2014, 

reduced certain benefits and increased the Plan’s contribution rates. At this point, it has been 

determined using reasonable actuarial assumptions and methods that the Rehabilitation Plan 

will not enable the Plan to emerge from critical status by the end of the 10-year Rehabilitation 

Period on July 1, 2021, which began on July 1, 2011. The Rehabilitation Plan is now considered 

a “forestall insolvency plan” as defined in IRC Section 432(e)(3)(A)(ii). 

The Trust submitted an application to suspend benefits on March 30, 2017. This application is 

still in review as of September 28, 2017. As required under the PPA, the Trustees have been 

and will continue to review the Rehabilitation Plan annually. Since the Rehabilitation Plan is a 

“forestall insolvency plan” it does not provide for annual standards and a scheduled progress 

certification is not applicable. 

______ September 28, 2017 

Josh Goodwin Date

Enrolled Actuary Number

Exhibit 2 AIPT 020
ALASKA IRONWORKERS PENSION PLAN

PPA Actuarial Certification for Plan Year Beginning July 1, 2017

Alaska Ironworkers Pension Plan

September 28, 2017 PPA Actuarial Certification

Page 3 

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0014 AIW 35 / JG/cmh 

Summary of Plan Provisions/Assumptions/Methods

• Our forecast of future minimum funding requirements is based on:

o July 1, 2016 participant data and July 1, 2016 actuarial valuation results, as provided in 

our actuarial report dated March 7, 2017. 

o June 30, 2017 unaudited market value of assets, 2016/17 contributions, and benefit 

payments provided by the trust office, and administration expenses equal to the amounts 

assumed in our July 1, 2016 actuarial valuation. In combination, these values reflect an 

actual return on plan assets of 11.6% for 2016/17 (net of investment-related expenses). 

Our forecast is also based on an assumed rate of return on market assets of 6.0% (net 

of investment-related expenses) for every year after the Plan Year ended June 30, 2017, 

and no future asset gains or losses other than the gains or losses related to the asset 

smoothing method are reflected.

o The future activity assumption is 165,000 hours a year through the plan year ending 

June 30, 2021 and 190,000 hours thereafter and is based on Trustees’ anticipated 

industry levels in the near future.

o Estimated base contributions assuming an average hourly contribution rate of $4.75 per 

hour for each plan year after June 30, 2017. 

o Funding only employer contributions due to the rehabilitation plan are reflected for all 

CBAs.

o An assumption that the active population will remain stable for each plan year after 

June 30, 2017. 

o All other actuarial assumptions and methods are the same as those used to determine 

July 1, 2016 actuarial valuation results.

o Plan provisions are those used in the July 1, 2016 actuarial valuation. 

• This actuarial certification is based on 1) our understanding of actuarial certification 

requirements under the Internal Revenue Code Section 432 as of June 30, 2017, 2) the 

December 2007 Practice Note issued by the Multiemployer Plans Subcommittee of the 

Pension Committee of the American Academy of Actuaries, and 3) action taken by the 

Board of Trustees on or before September 28, 2017. 

Exhibit 2 AIPT 021
ALASKA IRONWORKERS PENSION PLAN

PPA Actuarial Certification for Plan Year Beginning July 1, 2017

Alaska Ironworkers Pension Plan

September 28, 2017 PPA Actuarial Certification

Page 4 

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0014 AIW 35 / JG/cmh 

Plan Identification

Name: Alaska Ironworkers Pension Plan

EIN/PN: 91-6123695

Plan Year: July 1, 2017

Plan Number: 001

Address: P.O. Box 93870

 Anchorage, AK 99509-3870

Telephone Number: (907) 561-5119

Enrolled Actuary Identification

Name: Mr. Josh Goodwin

Enrolled Actuary #: 17-08050

Address: Milliman

1301 Fifth Avenue

 Suite 3800

 Seattle, WA 98101

Telephone Number: (206) 624-7940

Exhibit 2 AIPT 022
Milliman Actuarial Valuation

Issued March 7, 2017

Alaska Ironworkers Pension Plan

July 1, 2016 Actuarial Valuation 

Prepared by:

Mark C. Olleman

FSA, EA, MAAA

Kelly S. Coffing

FSA, EA, MAAA

Milliman, Inc.

1301 Fifth Avenue, Suite 3800

Seattle WA 98101-2605

Tel +1 206 624 7940

Fax +1 206 623 3485

milliman.com

Exhibit 2 AIPT 023
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation i 

Alaska Ironworkers Pension Plan

July 1, 2016 Actuarial Valuation of the

Alaska Ironworkers Pension Plan

The 2016 actuarial valuation of the Alaska Ironworkers Pension Plan (the “Plan”) has been completed in 

accordance with our understanding of IRS minimum funding requirements as amended by the Pension 

Protection Act of 2006 (PPA), reflecting all regulations and guidance issued to date. The results are contained 

in this report, including a summary of the underlying actuarial assumptions (Appendix A), a description of the 

principal plan provisions (Appendix B), and a summary of actuarial methods (Appendix C).

Purpose of the Valuation

In general, the annual actuarial valuation determines the current level of employer contributions which, 

considering prior funding, will accumulate assets sufficient to meet benefit payments when due under the 

terms of the Plan. More specifically, the valuation determines the minimum contribution for the current plan 

year required to support the Plan under the funding requirements of the Employee Retirement Income 

Security Act of 1974 (ERISA) and the maximum deductible contribution for the current fiscal year. The 

valuation also includes:

 Operational information that is required either for inclusion in financial statements or in forms to be filed 

with regulatory governmental agencies.

 A review of plan experience for the plan year ending on June 30, 2016. 

 An assessment of the relative funded position of the Plan through a comparison of plan assets and 

projected plan liabilities.

Limited Distribution

Milliman’s work is prepared solely for the internal business use of the Trustees of the Plan, and may not be 

provided to third parties without our prior written consent. Milliman does not intend to benefit or create a legal 

duty to any third party recipient of its work product. Milliman’s consent to release its work product to any third 

party may be conditioned on the third party signing a release, subject to the following exceptions:

 The Plan may provide a copy of Milliman’s work, in its entirety, to the Plan’s professional service advisors 

who are subject to a duty of confidentiality and who agree to not use Milliman’s work for any purpose 

other than to benefit the Plan.

 The Plan may distribute certain work product that Milliman and the Plan Sponsor mutually agree is 

appropriate as may be required by the Pension Protection Act of 2006.

Third party recipients of Milliman’s work product should engage their own qualified professionals for advice 

appropriate to their specific needs.

Reliance

In preparing the report, we relied, without audit, on information (some oral and some in writing) supplied by 

the Plan’s administrator and auditor. This information includes, but is not limited to, plan documents and 

provisions, participant data, and draft financial information. We found this information to be reasonably 

consistent and comparable with information used for other purposes. The valuation results depend on the 

integrity of this information. If any of this information is incomplete or inaccurate, our results may be different 

and our calculations may need to be revised.

Exhibit 2 AIPT 024
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation ii

Alaska Ironworkers Pension Plan

Limited Use

Actuarial computations under ERISA are for the purposes of determining the minimum required and maximum 

deductible funding amounts for an ongoing plan. Actuarial computations under FASB ASC Topic 960 are to 

fulfill plan financial accounting requirements. The calculations in this report are based on our understanding 

of: 

 ERISA and the related sections of the tax code.

 IRS minimum funding requirements as amended by subsequent legislation, including the Pension 

Protection Act of 2006, and reflecting all regulations and guidance issued to date. 

 FASB ASC Topic 960.

Determinations for other purposes may be significantly different than the results in this report. Other 

calculations may be needed for other purposes, such as judging benefit security at termination.

Future actuarial measurements may differ significantly from the current measurements presented in this 

report due to factors such as, but not limited to, the following: plan experience differing from that anticipated 

by the economic or demographic assumptions; changes in economic or demographic assumptions; increases 

or decreases expected as part of the natural operation of the methodology used for these measurements 

(such as the end of an amortization period or additional cost or contribution requirements based on the Plan’s 

funded status); and changes in plan provisions or applicable law. Due to the limited scope of the actuarial 

assignment, we did not perform an analysis of the potential range of such future measurement.

The consultants who worked on this assignment are pension actuaries. Milliman’s advice is not intended to be 

a substitute for qualified legal or accounting counsel.

Certification

In our opinion, each assumption used (other than those assumptions mandated directly by the Internal 

Revenue Code and its regulations) is individually reasonable (taking into account the experience of the Plan 

and reasonable expectations) and, in combination, offer our best estimate of anticipated experience under the 

Plan. 

On the basis of the foregoing, we hereby certify that to the best of our knowledge and belief, this report is 

complete and accurate and has been prepared in accordance with generally recognized and accepted 

actuarial principles and practices which are consistent with the principles prescribed by the Actuarial 

Standards Board and the Code of Professional Conduct and Qualification Standards for Public Statements of 

Actuarial Opinion of the American Academy of Actuaries. We are members of the American Academy of 

Actuaries and meet the Qualification Standards to render the actuarial opinion contained herein.

Respectfully submitted, 

Mark C. Olleman, FSA, EA, MAAA Kelly S. Coffing, FSA, EA, MAAA

Principal and Consulting Actuary Principal and Consulting Actuary

Enrolled Actuary Number Enrolled Actuary Number

March 7, 2017

Date

Exhibit 2 AIPT 025
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation iii

Alaska Ironworkers Pension Plan

Table of Contents

1. Summary of Results

A. Overview .................................................................................................................................................1

B. Purpose of This Report ...........................................................................................................................2

C. Changes to Plan Provisions....................................................................................................................2

D. Changes to Actuarial Methods and Assumptions ...................................................................................2

E. Plan Assets .............................................................................................................................................3

F. Funded Status.........................................................................................................................................4

G. Plan Experience ......................................................................................................................................5

H. Withdrawal Liability .................................................................................................................................6

I. Zone Status.............................................................................................................................................6

J. Contributions for the 2016/2017 Plan Year.............................................................................................6

K. Summary.................................................................................................................................................7

2. Actuarial Valuation Process

A. Four Necessary Elements of an Actuarial Valuation ..............................................................................8

B. Purpose of the Actuarial Valuation..........................................................................................................8

C. Plan Assets .............................................................................................................................................9

D. Retirees and Beneficiaries ................................................................................................................... 10

E. Terminated and Inactive Participants................................................................................................... 11

F. Active Participants................................................................................................................................ 13

G. Plan Requirements............................................................................................................................... 14

H. Actuarial Methodology and Results ..................................................................................................... 15

3. Historical Statistics and Projections

A. Historical Investment Return................................................................................................................ 17

B. Historical Participant Statistics............................................................................................................. 17

C. Historical Hours and Contributions ...................................................................................................... 18

D. Retired Participant Statistics ................................................................................................................ 19

E. Vested Terminated Participant Statistics ............................................................................................. 20

F. Active Participant Statistics.................................................................................................................. 21

G. Historical Net Cash Flow...................................................................................................................... 22

H. Projected Net Cash Flow ..................................................................................................................... 23

I. Historical Summary of Hourly Employer Contribution Rates ............................................................... 24

Appendices

A. Summary of Actuarial Assumptions...................................................................................................... A-1 

B. Summary of Basic Benefit Structure..................................................................................................... B-1 

C. Summary of Actuarial Cost Methods .................................................................................................... C-1 

Exhibit 2 AIPT 026
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation iv

Alaska Ironworkers Pension Plan

D. Glossary of Actuarial Terms................................................................................................................... D-1 

E. Supporting Actuarial Calculations July 1, 2016

Summary of Market Value of Assets .............................................................................................................1 

Summary of Income and Disbursements ......................................................................................................2 

Actuarial Value of Assets...............................................................................................................................3 

Asset (Gain) / Loss for Prior Plan Year on Actuarial Value of Assets ...........................................................4 

Funding Standard Account for Prior Plan Year .............................................................................................5 

Active Participants by Age and Service.........................................................................................................6 

Actuarial Balance Sheet ................................................................................................................................7 

Normal Cost...................................................................................................................................................8 

Unfunded Actuarial Accrued Liability.............................................................................................................9 

Actuarial (Gain) / Loss for Prior Plan Year ................................................................................................. 10

Current Annual Cost and Minimum Required Contribution ........................................................................ 11

Charges and Credits for Funding Standard Account.................................................................................. 12

Current Liability........................................................................................................................................... 13

Full Funding Limitation ............................................................................................................................... 14

Maximum Deductible Contribution under IRC Section 404........................................................................ 15

Charges and Credits for Maximum Deductible Contribution ...................................................................... 16

Present Value of Accumulated Plan Benefits............................................................................................. 17

Change in Present Value of Accumulated Plan Benefits ........................................................................... 18

Unfunded Vested Benefit Liability for Withdrawal Liability Calculations..................................................... 19

Exhibit 2 AIPT 027
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Summary of Results

Exhibit 2 AIPT 028
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 1 

Alaska Ironworkers Pension Plan

A. Overview

Actuarial Valuation for Plan Year Beginning

July 1, 2015 July 1, 2016

Assets

Market Value of Assets (MVA) $56,786,143 $49,524,313

Actuarial Value of Assets (AVA) $55,701,125 $52,450,498

Return for Prior Plan Year

Market Value of Assets 0.9% -2.9% 

Actuarial Value of Assets 10.5% 4.6% 

Funded Status

Present Value of Accrued Benefits $94,886,295 $94,638,324

Market Funded Percentage 59.8% 52.3% 

Actuarial (Pension Protection Act) Funded Percentage 58.7% 55.4% 

Withdrawal Liability

Present Value of Vested Benefits for Withdrawal Liability $91,352,139 $91,287,921

Value of Unamortized Affected Benefit Reductions 1,728,363 1,598,768

Market Value of Assets for Withdrawal Liability (56,786,143) (49,524,313) 

Unfunded Present Value of Vested Benefits (UVB) $36,294,359 $43,362,376

Credit Balance and Contribution Requirements

Actuarial Accrued Liability $94,886,295 $94,638,324

Reserve for Expenses $0 $0 

Actuarial Value of Assets $(55,701,125) $(52,450,498) 

Unfunded Actuarial Accrued Liability $39,185,170 $42,187,826

Credit Balance at End of Prior Plan Year $(4,792,391) $(11,858,124) 

Normal Cost (including expenses) $781,860 $750,409

Plan Year Employer Contributions $2,276,515 Not Available

Maximum Deductible Contribution $123,204,751 $124,442,419

Participant Data

Active participants 160 153

Inactive participants with deferred benefits 95 101

Retired participants 461 457

Disabled participants 31 32

Beneficiaries 77 80

Total participants 824 823

Certification

PPA Zone Status Critical (Red) Critical & Declining

Scheduled Progress Forestall Insolvency Forestall Insolvency

Exhibit 2 AIPT 029
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 2 

Alaska Ironworkers Pension Plan

B. Purpose of This Report

This report has been prepared for the Alaskan Ironworkers Pension Plan as of July 1, 2016 to:

 Review the experience for the plan year ending June 30, 2016, including the investment return on the 

Plan’s assets and changes in the Plan’s participant demographics that impact liabilities.

 Review the Plan’s funded status.

 Calculate the Plan’s funding requirements under ERISA for the plan year beginning July 1, 2016. 

 Determine the Plan’s unfunded vested benefit liability as of June 30, 2016 for withdrawal liability 

purposes calculated in accordance with the requirements of the Multiemployer Pension Plan 

Amendments Act of 1980.

 Determine the actuarial present value of accumulated plan benefits as of June 30, 2016 for purposes 

of disclosing the Plan's liabilities under FASB ASC Topic 960.

 Provide operational information required for governmental agencies and other interested parties.

C. Changes to Plan Provisions

The valuation reflects the plan provisions in effect on July 1, 2016. There were no changes to the plan 

provisions during the 2015-2016 plan year that impacted the Plan’s liabilities.

See Appendix B for a detailed description of the plan provisions.

D. Changes to Actuarial Methods and Assumptions

Other than the assumptions mandated by the IRS, the following changes were made for this valuation:

 The interest rate used for funding and withdrawal liability was updated from 6.25% to 6.00% to better 

reflect anticipated future experience.

 The Trustees changed the activity assumption from 200,000 hours to 165,000 hours to better reflect 

anticipated industry activity.

 The method used to spread the activity assumption over the active population was changed. We now 

assume all actives work the same number of hours. Previously, we assumed actives would work 

hours that are proportional to the hours worked in the prior year.

 Effective July 1, 2016, the current liability interest rate was re-established within the statutory interest 

rate corridor. 

 Effective July 1, 2016, the statutory current liability mortality basis was re-established based on the 

RP-2000 Combined Mortality Table projected as set forth in Treasury Regulation §1.412(I)(7)-1.

 The annual operating expense assumption was changed from $490,000 to $520,000 to better reflect 

expected future expenses.

Details on the assumptions and methods can be found in Appendices A and C of this report. 

Exhibit 2 AIPT 030
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 3 

Alaska Ironworkers Pension Plan

E. Plan Assets

The Plan’s Market Value of Assets (MVA) is the net asset value available for benefits as shown on the 

Plan’s financial statements. For funding calculations under ERISA, the Plan uses an asset-smoothing 

method, which recognizes market value investment gains and losses over a period of five years. The 

resulting asset value is called the Actuarial Value of Assets (AVA), and is used for determining the 

Pension Protection Act funded percentage and the minimum and maximum contributions under ERISA. 

The table below shows these values along with the Plan’s rate of investment return, net of investment 

expenses, over the past five years.

July 1, 

Prior Year Rate of Return Market Value of 

Assets 

(in millions)

Actuarial Value 

of Assets 

(in millions)

Gain / (Loss) on 

Market Value 

Market Actuarial (in millions)

2012 -2.9% 8.7% $57.0 $55.8 $(5.7)

2013 12.8 9.4 57.9 54.7 3.6

2014 16.3 11.8 61.3 55.2 5.5

2015 0.9 10.5 56.8 55.7 (3.1)

2016 -2.9 4.6 49.5 52.5 (4.9) 

The Plan’s investment return of -2.92% last year was 9.17% less than anticipated by the actuarial 

assumption of 6.25%.

Over the past 10 years, the Plan’s assets have averaged a 4.5% return on a market-value basis, net of 

investment expenses. The graph below shows the Plan’s annual returns over this time period, compared 

to the Plan’s current 6.00% investment return assumption. Returns on both the Actuarial Value of Assets 

(AVA) and the Market Value of Assets (MVA) are shown.

Returns in Plan Years Ended June 30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

AVA 2.6% 6.6% 12.0% 10.9% -17.0% 6.6% 9.9% 8.7% 9.4% 11.8% 10.5% 4.6%

MVA 10.1% 13.4% 17.3% -1.3% -18.5% 8.0% 22.3% -2.9% 12.8% 16.3% 0.9% -2.9%

-30%

-20%

-10%

0%

10%

20%

30%

Exhibit 2 AIPT 031
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 4 

Alaska Ironworkers Pension Plan

F. Funded Status

An important indicator of the Plan’s funded status is the ratio of the Plan’s market value of assets to the 

Plan’s liability for all benefits earned to date, called the present value of accrued benefits. For purposes of 

determining the Plan’s zone status under the Pension Protection Act, the Plan’s actuarial value of assets

is compared to this liability measurement. The table below shows these measurements, along with the 

comparable figures for previous valuations. 

The annual funding notice to participants must be distributed within 120 days of the end of the plan year 

(October 28, 2017) and will include the AVA funded ratio for 2014, 2015, and 2016, as shown above.

(A) (B) (C) (A) - (C) (A) / (C) (B) - (C) (B) / (C) 

MVA AVA

Prior Year Market Value Actuarial Value Present Value Funding MVA Funding AVA

Investment of Assets of Assets of Accrued Reserve/ Funded Reserve/ Funded

July 1, Return (MVA) (AVA) Benefits* (Shortfall) Ratio (Shortfall) Ratio

1992 11.8% 50,680,603 48,766,817 42,438,445 8,242,158 119.4% 6,328,372 114.9%

1993 7.7% 52,611,578 51,568,871 45,578,859 7,032,719 115.4% 5,990,012 113.1%

1994 2.8% 51,854,710 53,031,846 46,781,764 5,072,946 110.8% 6,250,082 113.4%

1995 19.0% 59,359,652 55,940,940 49,301,462 10,058,190 120.4% 6,639,478 113.5%

1996 14.5% 65,490,745 60,685,228 51,180,077 14,310,668 128.0% 9,505,151 118.6%

1997 21.7% 76,776,012 69,195,291 62,997,164 13,778,848 121.9% 6,198,127 109.8%

1998 19.2% 87,168,448 77,982,682 72,122,771 15,045,677 120.9% 5,859,911 108.1%

1999 9.5% 91,751,351 87,270,758 80,064,024 11,687,327 114.6% 7,206,734 109.0%

2000 3.3% 89,456,389 89,456,389 82,879,180 6,577,209 107.9% 6,577,209 107.9%

2001 -2.7% 82,167,419 88,908,815 84,765,653 (2,598,234) 96.9% 4,143,162 104.9%

2002 -5.1% 72,744,957 85,494,836 84,614,473 (11,869,516) 86.0% 880,363 101.0%

2003 4.2% 71,109,460 81,822,944 87,282,994 (16,173,534) 81.5% (5,460,050) 93.7%

2004 11.2% 73,590,426 78,023,604 93,435,180 (19,844,754) 78.8% (15,411,576) 83.5%

2005 10.1% 75,539,302 74,774,121 94,344,998 (18,805,696) 80.1% (19,570,877) 79.3%

2006 13.4% 80,119,881 74,300,010 95,787,476 (15,667,595) 83.6% (21,487,466) 77.6%

2007 17.3% 87,908,584 77,263,935 95,845,630 (7,937,046) 91.7% (18,581,695) 80.6%

2008 -1.3% 81,279,274 79,830,278 96,550,409 (15,271,135) 84.2% (16,720,131) 82.7%

2009 -18.5% 60,775,802 60,775,802 104,391,737 (43,615,935) 58.2% (43,615,935) 58.2%

2010 8.0% 59,320,761 58,536,169 99,086,581 (39,765,820) 59.9% (40,550,412) 59.1%

2011 22.3% 65,393,938 57,622,322 98,935,066 (33,541,128) 66.1% (41,312,744) 58.2%

2012 -2.9% 57,001,715 55,750,892 97,360,483 (40,358,768) 58.5% (41,609,591) 57.3%

2013 12.8% 57,890,426 54,654,071 95,423,016 (37,532,590) 60.7% (40,768,945) 57.3%

2014 16.3% 61,268,718 55,193,938 93,844,780 (32,576,062) 65.3% (38,650,842) 58.8%

2015 0.9% 56,786,143 55,701,125 94,886,295 (38,100,152) 59.8% (39,185,170) 58.7%

2016 -2.9% 49,524,313 52,450,498 94,638,324 (45,114,011) 52.3% (42,187,826) 55.4%

 * Present Value of Accrued Benefits are valued at a 6.25% discount rate beginning in 2009. From 1997 to 2008, a 7.00% discount rate was used. 

 For 1996 and before, a discount rate of 7.25% was used.

50%

60%

70%

80%

90%

100%

110%

120%

130%

Funded Ratio

MVA Funded Ratio AVA Funded Ratio

Exhibit 2 AIPT 032
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 5 

Alaska Ironworkers Pension Plan

G. Plan Experience

Impact of Plan Experience during Prior Plan Year

The following table shows how the Plan’s experience affected the unfunded present value of accrued 

benefits on a market value of assets basis during the prior plan year.

Prior Year Changes in the Funding Reserve/(Shortfall)

(all values in millions)

July 1, 2015 Funding Reserve / (Shortfall) $ (38.10) 

Interest on Unfunded $(2.38)

Contributions with Interest 2.35

Value of Benefit Accruals with Interest (0.27)

Expenses with Interest (0.53)

Expected Change in the Reserve / (Shortfall) (0.83) 

Asset Gain / (Loss) $ (4.94) 

Assumption Changes

Experience Gain / (Loss) on Liabilities

(Experience different than assumed)

(2.29) 

1.05

Combined Impact of Gains, Losses, and Changes $ (6.18) 

July 1, 2016 Funding Reserve / (Shortfall) $ (45.11)

The funding shortfall was expected to increase by $0.83 million due to the value of benefit accruals, 

expenses, and interest on the beginning of year funding shortfall being more than contributions. 

Combined with the net impact of earning 9.17% less than the actuarial assumption of 6.25% and a liability 

increase due to assumption changes, resulted in an increase in the shortfall. In total, the Plan now has a 

funding shortfall of $45.11 million.

Expected Plan Experience in Next Plan Year

The following table shows how the Plan’s unfunded accrued liability on a market value of assets basis is 

projected to change in the next year.

Projected Changes in the Funding Reserve/(Shortfall)

(all values in millions)

July 1, 2016 Funding Reserve / (Shortfall) $ (45.11) 

Interest on Unfunded $(2.71)

Expected Contributions with Interest 2.34

Value of Benefit Accruals with Interest (0.26)

Expenses with Interest (0.54)

Expected Change in the Reserve / (Shortfall) $ (1.17)

Projected January 1, 2017 Funding Reserve / (Shortfall) $ (46.28) 

The table above shows that if the actuarial assumptions are realized, the Plan’s funding shortfall is 

projected to increase by $1.17 million during the plan year. This means that the contributions expected to 

come into the Plan during 2016/2017 are less than the expected cost of benefit accruals, expenses, and 

interest on the funding shortfall.

Exhibit 2 AIPT 033
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 6 

Alaska Ironworkers Pension Plan

H. Withdrawal Liability

The Plan’s unfunded vested benefit liability for withdrawal liability is determined by subtracting the Plan’s 

assets for withdrawal liability purposes (market value of assets) from the liability for all vested benefits 

earned to date. The table below shows the Plan’s unfunded vested benefit liability used to determine 

withdrawal liability for withdrawing employers June 30, 2015 and the preceding four plan year ends. 

June 30, Vested Benefit 

Liability (VBL)

Value of “Affected 

Benefits” 

Removed by 

Rehab Plan

Market Assets for 

Withdrawal Liability

Unfunded Vested 

Benefit Liability

2012 $93,132,576 $2,073,178 $(57,001,715) $38,204,039

2013 91,387,290 1,965,133 (57,890,426) 35,461,997

2014 89,968,699 1,850,336 (61,268,718) 30,550,317

2015 91,352,139 1,728,363 (56,786,143) 36,294,359

2016 91,287,921 1,598,768 (49,524,313) 43,362,377

As of June 30, 2016, the interest assumption for determining vested benefit liability is based on the 

valuation rate of 6.00%.

I. Zone Status

The following chart shows the Plan’s zone status that was reported in the actuarial certification for the 

past several years.

Year Zone Status

2012 Critical (Red)

2013 Critical (Red)

2014 Critical (Red)

2015 Critical (Red)

2016 Critical and Declining

As shown above, the Plan is critical and declining for the plan year beginning July 1, 2016. Please see 

our separate certification letters for details.

J. Contributions for the 2016/2017 Plan Year

Minimum Required Contribution and Credit Balance 

The Plan’s minimum required contribution, prior to the application of the credit balance, consists of two 

components: 

 Gross normal cost, which consists of the cost of benefits allocated to the next plan year and 

administrative expenses expected to be paid in the next plan year (see Exhibit 8 for details).

 Amortization payment to pay for past liabilities (see Exhibit 12 for details).

Exhibit 2 AIPT 034
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 7 

Alaska Ironworkers Pension Plan

If contributions do not meet these costs, the Plan’s credit balance, which was built up through 

contributions in excess of the minimum required contributions in past years, may be used to offset the 

costs. 

The Plan’s contribution requirements and expected contributions for the current year and preceding plan 

years are shown below:

Plan Year

Beginning 

July 1,

Normal 

Cost 

at End of 

Plan Year

Net 

Amortization 

Payment 

at End of 

Plan Year

Minimum Required 

Contribution

Employer 

Contributions

(Actual)

Credit 

Balance 

at End of 

Plan Year

Before 

Credit 

Balance

After 

Credit 

Balance

2009 $ 761,571 $ 5,094,130 $ 5,855,701 $ 0 $ 1,749,934 $ 17,344,573

2010 443,310 4,456,879 4,900,189 0 1,933,723 15,511,254

2011 334,018 4,489,272 4,823,290 0 1,810,073 13,513,642

2012 245,044 9,257,168 9,502,212 0 2,166,310 7,077,361

2013 231,499 9,053,946 9,285,445 1,765,749 2,663,353 965,246

2014 805,194 8,215,967 9,021,161 7,995,587 3,123,859 (4,792,391) 

2015 830,726 8,270,042 14,192,683 14,192,683 2,276,515 (11,858,124)

2016 797,310 8,270,019 21,615,603 21,615,603 2,268,750* (19,300,000)*

* Expected based on hours assumption of 165,000 in 2016/2017 and average contribution rates.

The contribution of $2,276,515 for the plan year ended June 30, 2016 did not satisfy ERISA minimum 

funding standards and is allowable in full by the IRS as a tax deduction. The Plan has a funding 

deficiency.

K. Summary

Investment Return: At July 1, 2015, the Plan’s market assets covered 59.8% of the value of its accrued 

benefits. Due primarily to investment return during 2015/2016 of -2.92%, which was 9.17% below the 

6.25% investment return assumption, and lowering the investment return assumption from 6.25% to 

6.00% the funded ratio has decreased from 59.8% to 52.3% at July 1, 2016. 

Uncertain Future: Despite a rehabilitation plan that is designed to take all reasonable measures by 

making large contribution increases and benefit reductions, the Plan still needs experience more 

favorable than assumed to return to health. Based on experience through July 1, 2016, the Plan is 

projected to become insolvent in 2030. 

Volatility: The Plan’s funding remains heavily dependent on future contributory hours and investment 

returns.

Exhibit 2 AIPT 035
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Actuarial Valuation Process

Exhibit 2 AIPT 036
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 8 

Alaska Ironworkers Pension Plan

A. Four Necessary Elements of an Actuarial Valuation

There are four necessary elements of an actuarial valuation: data, assumptions, assets, and a plan of 

benefits. Those elements, combined with an actuarial cost method, produce the actuarial valuation 

results.

B. Purpose of the Actuarial Valuation

The purpose of the actuarial valuation is to take the four elements above and determine whether the 

Plan’s resources and liabilities are in balance for purposes of benefit security and legal funding standards. 

This report compares:

The Plan’s Liability:

the value of earned and unearned benefits

TO

The Plan’s Resources:

current Trust assets, future contributions, and anticipated 

investment returns

In the actuarial valuation, we start by projecting the future benefit payments that will be made from the 

Trust for current participants. These are used to determine the value of the Plan’s liability. We then 

determine the value of the Plan’s resources based on the current asset information and the actuarial 

assumptions. The rest of this section briefly describes how we make the projections of future benefit 

payments and determine the value of the Plan’s resources based on the data provided by the Trust Office 

and the actuarial assumptions.

Exhibit 2 AIPT 037
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 9 

Alaska Ironworkers Pension Plan

investment 

earnings

$ $ $

$

$

$ $ $ $

$

$ $ $

$ Assets $

$ $ $

$

$

$

$ $

PENSION

FUND

$ $

benefits

expenses

contributions

investment 

earnings

$ $ $

$

$

$ $ $ $

$

$ $ $

$ Assets $

$ $ $

$

$

$

$ $

PENSION

FUND

$ $

benefits

expenses

contributions

C. Plan Assets

The illustration below represents the financial function of a pension trust. Ultimately, all benefits and 

expenses must be provided for by current assets, future contributions, and future investment returns.

The chart below shows the change in the net assets available for benefits for the prior two plan years.

Change in Net Assets Available for Benefits

June 30, 2015 June 30, 2016

Beginning of Year Market Value $61,268,718 $56,786,143

Contributions 3,123,859 2,276,515

Investment Earnings 534,270 (1,573,264)

Benefit Payments (7,654,800) (7,451,069)

Operating Expenses (485,904) (514,012)

Net Change in Assets $(4,482,575) $(7,261,830)

End of Year Market Value $56,786,143 $49,524,313

Market Value Investment Return 0.9% -2.9% 

Exhibit 2 AIPT 038
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 10

Alaska Ironworkers Pension Plan

D. Retirees and Beneficiaries

To place a value on the liability for current retirees, disabilities, and beneficiaries we started with the data 

provided by the Trust and used actuarial assumptions for mortality to project future benefit payments for 

this group.

Data

Distribution of Retirees, Disabilities, and Beneficiaries

Assumptions

Mortality: Benefit payments are projected based on the probability that the participant or his beneficiary is 

still alive. Detail is provided in Appendix A.

Projected Benefit Payments for Retirees

Based on the data and assumptions used in this valuation, the Trust will need to have assets to pay for 

the following stream of benefit payments due to current retirees (including disabilities and beneficiaries). 

Age 54 & Less 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90 & Over Total

Count 16 51 99 120 106 83 60 26 8 569

Avg Mo Ben 1,147 909 1,702 1,146 933 728 815 622 1,813 1,072

0

20

40

60

80

100

120

140

Count

0

2

4

6

8

2016 2026 2036 2046 2056 2066 2076 2086

Millions of Dollars

Retirees

Exhibit 2 AIPT 039
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 11

Alaska Ironworkers Pension Plan

E. Terminated and Inactive Participants

This group includes vested terminated participants. To place a value on their liabilities, we started with the 

data provided by the Trust and used actuarial assumptions to project future benefit payments for this 

group.

Data

Distribution of Vested Terminated Participants

In addition to the 101 vested terminated participants represented above, there are 710 non-vested 

participants who may still vest due to reciprocity or returning as an active. 

Assumptions

Benefit payments are projected based on the following assumptions. Detail is in Appendix A.

 Benefit Commencement – Participants who have 10 or more years of service are assumed to retire 

between the ages of 50 and 62 according to rates in Appendix A. All other participants are assumed 

to retire at “Normal Retirement Age.”

 Mortality – Participants receive benefits as long as they are alive.

 Vesting – We assume 45% of the non-vested participants under age 65 will eventually become 

vested.

Age 34 & Less 35-39 40-44 45-49 50-54 55-59 60-64 65 & Over Total

Count 7 12 14 9 21 20 8 10 101

Avg Mo Ben 541 630 1,232 1,286 2,053 982 539 187 1,080

0

20

40

60

80

100

120

140

Count

Exhibit 2 AIPT 040
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 12

Alaska Ironworkers Pension Plan

Projected Benefit Payments for Terminated and Inactive Participants

Based on the data and assumptions used in this valuation, the Trust will need to have assets to pay for 

the following stream of benefit payments due to terminated and inactive participants. 

0

2

4

6

8

2016 2026 2036 2046 2056 2066 2076 2086

Millions of Dollars

Terminated & Inactive

Exhibit 2 AIPT 041
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 13

Alaska Ironworkers Pension Plan

F. Active Participants

To place a value on the liability for the active participants, we started with the data provided by the Trust 

and used actuarial assumptions to project future benefit payments for this group.

Data

Assumptions

Benefit payments are projected based on the Plan of benefits and the assumptions for future 

contributions, termination, retirement, death, and disability. Detail is provided in Appendix A.

Projected Benefit Payments for Active Participants

Based on the data, plan of benefits, and assumptions used in this valuation, the Trust will need to have 

assets to pay for the following stream of benefit payments due to the participants that are currently active. 

Benefits earned in the past and anticipated to be earned in the future are both included.

Age 24 & Less 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Over Total

Count 12 36 22 30 17 12 15 8 1 0 153

Avg Mo Ben 75 229 438 745 967 1,151 1,936 1,761 57 0 749

Avg Svc Credit 1.4 3.2 5.6 8.2 8.2 9.5 12.8 12.2 1.0 0.0 6.9

0

20

40

60

80

100

120

140

Count

0

2

4

6

8

2016 2026 2036 2046 2056 2066 2076 2086

Millions of Dollars

Actives - Unaccrued Benefits Actives - Accrued Benefits

Exhibit 2 AIPT 042
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 14

Alaska Ironworkers Pension Plan

G. Plan Requirements

Projected Benefit Payments for All Current Participants

We estimate that the following stream of payments will be made on account of all benefits defined in the 

Plan for the current active, retired, terminated and inactive members. This includes benefits earned in the 

past and future for current actives. Our calculations are based on the participant data provided by the 

Trust, and the assumptions shown in this report.

The Investment Return Assumption and Actuarial Present Values

The investment return assumption used in the actuarial valuation is 6.00%. If a fund of investments 

earned a level annual return of 6.00%, net of investment expenses, a balance of $97.0 million on July 1, 

2016 would be sufficient to provide for all benefit payments shown above; the Actuarial Present Value of 

Future Benefits is $97.0 million (see Exhibit 7 for details). Current assets plus the present value of future 

contributions must provide for this requirement.

The actuarial valuation also measures the Actuarial Present Value of Accrued Benefits. In this case, the 

active participants’ unearned benefits (benefits that will be credited for future contributions) are excluded. 

If a fund of investments earned a level annual return of 6.00%, net of all expenses, a balance of 

$94.6 million on July 1, 2016 would be sufficient to provide for all accrued benefits.

Summary of Plan Requirements

Actuarial Present Value of All Future Benefits

(all benefits shown above)

 $97.0 million

Actuarial Present Value of Accrued Benefits

(Retirees, Terminated Vested, and Active Accrued)

 $94.6 million

Actuarial Value of Assets $52.5 million

Market Value of Assets $49.5 million

0

2

4

6

8

2016 2026 2036 2046 2056 2066 2076 2086

Millions of Dollars

Actives - Unaccrued Benefits Actives - Accrued Benefits Terminated & Inactive Retirees

Exhibit 2 AIPT 043
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 15

Alaska Ironworkers Pension Plan

PV of Benefits Earned in Future PV of Future Contributions

PV of Active Participants Market Value of Assets

PV of Vested Terminated Participants

PV of Retirees, Beneficiaries and Disabilities

ab t es esou ces

H. Actuarial Methodology and Results

Detail of Actuarial Present Value of Future Benefits

July 1, 2015

(in millions)

July 1, 2016

(in millions)

Retired Participants, Disabilities, and Beneficiaries $ 75.5 $ 74.9

Terminated Vested Participants 9.1 9.3

Parity and Reciprocity Reserves 3.3 3.2

Total Inactive Liability $ 87.9 $ 87.4

Active Accrued Benefits 7.0 7.2

Active Unaccrued Benefits 2.8 2.4 

Total Active Liability $ 9.8 $ 9.6

Total Plan Requirements $ 97.7 $ 97.0

Comparing Liabilities to Resources as of July 1, 2016

 The Plan’s liabilities, $97.0 million, are the sum of the actuarial present value of accrued benefits, 

$94.6 million, and the actuarial present value of unaccrued benefits, $2.4 million.

 The Plan’s resources, $65.1 million, are the sum of the market value of assets, $49.5 million, and the 

actuarial present value of future contributions for current participants, $15.6 million.

 The Plan’s resources of $65.1 million are less than the Plan’s liabilities of $97.0 million.

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

Liabilities Resources

Millions

Exhibit 2 AIPT 044
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 16

Alaska Ironworkers Pension Plan

Funding Benefits

Funding can be examined by focusing on benefits. There are two primary measures:

1. Does the market value of assets cover the Actuarial Present Value of Accrued Benefits?

2. Does the market value of assets cover the Actuarial Present Value of Vested Benefits (sometimes 

called Vested Benefit Liability)? 

Funding as of 

July 1, 2015 July 1, 2016

Present Value of Accrued Benefits $94.9 million $94.6 million

Vested Benefit Liability $91.4 million $91.3 million

Market Value of Assets (MVA) $56.8 million $49.5 million

MVA / Present Value of Accrued Benefits 59.8% 52.3%

MVA / Vested Benefit Liability 62.2% 54.2%

Exhibit 2 AIPT 045
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Historical Statistics and Projections

Exhibit 2 AIPT 046
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 17

Alaska Ironworkers Pension Plan

A. Historical Investment Return

B. Historical Participant Statistics

The following chart shows the participant counts by status over the last several plan years.

6/30/2016

6/30/2015

6/30/2014

6/30/2013

6/30/2012

6/30/2011

6/30/2010

6/30/2009

6/30/2008

6/30/2007

6/30/2006

6/30/2005

6/30/2004

6/30/2003

6/30/2002

6/30/2001

6/30/2000

6/30/1999

6/30/1998

6/30/1997

6/30/1996

6/30/1995

6/30/1994

6/30/1993

6/30/1992

(1) Annualized time weighted average based on market value.

-2.9 4.5 4.5 7.2

0.9 9.5 6.1

3.3 13.4

4.2 1.7 8.3

-5.1 4.5 8.6

-2.7 9.8 10.4

21.7 12.9

9.5 16.7

19.2 15.2

13.4 6.5 8.2

10.1 3.3 8.3

11.2 2.0 9.1

-18.5 3.3 2.7

-1.3 10.0 5.8

17.3 11.2 7.8

22.3 4.5 5.5

8.0 2.9 3.1

14.5 11.0

19.0

 Period 

Ended 1 Year 5 Years(1) 10 Years(1)

Since 

1992(1)

16.3 11.0 7.1

-2.9 0.6 5.8

12.8 3.3 6.6

11.8

2.8

7.7

0

200

400

600

800

1,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Active Participants 191 231 204 162 128 128 123 130 160 153

Terminated Participants 76 83 87 83 80 91 86 91 95 101

Retired Participants 539 546 565 580 599 589 589 583 569 569

Total 806 860 856 825 807 808 798 804 824 823

Historical Participant Counts

Exhibit 2 AIPT 047
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 18

Alaska Ironworkers Pension Plan

C. Historical Hours and Contributions

The following table shows the total contributory hours as reported by the Trust Office. 

Plan Year

Ending 

June 30,

Number of 

Actives at Plan 

Year End

Total 

Contributory 

Hours(1)

Rounded 5-Year 

Average Hours

Reciprocal 

Hours(1)

Total 

Contribution(2)

2000 181 174,901 $737,730

2001 173 197,788 863,228

2002 174 211,183 895,003

2003 256 331,406 1,361,630

2004 234 294,046 242,000 1,132,752

2005 216 301,025 267,000 1,218,698

2006 227 292,005 286,000 1,286,458

2007 191 247,228 293,000 23,526 1,239,139

2008 231 323,913 292,000 32,606 1,607,470

2009 204 290,399 291,000 34,888 1,607,445

2010 162 219,681 275,000 33,099 1,749,934

2011 128 163,184 249,000 25,302 1,933,723

2012 128 166,922 233,000 31,901 1,810,073

2013 123 185,055 205,000 28,825 2,166,310

2014 130 204,616 188,000 37,150 2,663,353

2015 160 238,039 192,000 32,433 3,123,859

2016 153 183,745 196,000 11,920 2,276,515

(1) Based on total hours reported in WPAS summary reports.

(2) Includes withdrawal liability payments. 

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hours

Hours History

Pension Hours 5-Year Average Hours Current Assumption(165,000)

Exhibit 2 AIPT 048
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 19

Alaska Ironworkers Pension Plan

D. Retired Participant Statistics

Current Distribution of Retirees, Beneficiaries, and Disabilities by Monthly Benefit Amount

Retired Participant Historical Information

Plan Year

Number of 

Retirees Total Annual Benefits

Average Annual 

Benefits

2006 522 $6,156,726 $11,794

2007 539 6,471,346 12,006

2008 546 6,790,124 12,436

2009 565 7,067,791 12,509

2010 580 7,290,239 12,569

2011 599 7,839,631 13,088 

2012 589 7,739,241 13,140

2013 589 7,677,765 13,035

2014 583 7,616,676 13,065

2015 569 7,434,968 13,067

2016 569 7,316,405 12,858

Under $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400 $2,700 Over

$300 -599 -899 -1,199 -1,499 -1,799 -2,099 -2,399 -2,699 -2,999 $3,000

Count 235 55 58 41 42 24 22 15 16 7 54 569

Monthly Benefit Total

0

25

50

75

100

125

150

175

200

225

250

Count

Exhibit 2 AIPT 049
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 20

Alaska Ironworkers Pension Plan

E. Vested Terminated Participant Statistics

Current Distribution of Vested Terminated Participants by Monthly Benefit Amount

Vested Terminated Participant Historical Information

Plan Year

Number of 

Vested

Terminees Total Annual Benefits

Average Annual 

Benefits

2006 73 $1,818,346 $24,909 

2007 76 1,618,003 21,290

2008 83 1,454,495 17,524

2009 87 1,449,813 16,665 

2010 83 1,494,187 18,002

2011 80 1,229,970 15,375 

2012 91 1,302,353 14,312 

2013 86 1,269,715 14,764

2014 91 1,253,941 13,780

2015 95 1,351,187 14,223

2016 101 1,309,198 12,962

Under $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400 $2,700 Over

$300 -599 -899 -1,199 -1,499 -1,799 -2,099 -2,399 -2,699 -2,999 $3,000

Count 26 23 16 6 10 3 4 0 1 4 8 101

Monthly Benefit Total

0

25

50

75

100

125

150

175

200

225

250

Count

Exhibit 2 AIPT 050
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 21

Alaska Ironworkers Pension Plan

F. Active Participant Statistics

Current Distribution of Active Participants by Accrued Monthly Benefit Amount

Active Participant Historical Information

Plan Year

Beginning July 1,

Number of 

Actives

Average 

Age

Average Years 

of Service

2006 227 40.7 6.4

2007 191 40.4 7.1

2008 231 38.5 6.1

2009 204 38.0 6.3

2010 162 37.0 7.0

2011 128 37.6 7.0

2012 128 38.1 7.4

2013 123 38.1 7.8

2014 130 38.0 7.7

2015 160 36.2 6.4

2016 153 37.3 6.9

Under $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400 $2,700 Over

$300 -599 -899 -1,199 -1,499 -1,799 -2,099 -2,399 -2,699 -2,999 $3,000

Count 68 22 25 10 10 1 3 2 2 3 7 153

Monthly Benefit Total

0

25

50

75

100

125

150

175

200

225

250

Count

Exhibit 2 AIPT 051
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 22

Alaska Ironworkers Pension Plan

G. Historical Net Cash Flow (1)

The chart shows the relationship between contributions, investment management expenses, operating expenses, and benefit payments for the 

past 10 plan years. Net cash flow is equal to contributions minus benefit payments, operating expenses, and investment management expenses.

The amounts shown are based on the Auditor’s Report for 2007-2016. 

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(A) Contributions 1.2 1.6 1.6 1.7 1.9 1.8 2.2 2.7 3.1 2.3

(B) Investment Management Expenses 0.7 0.7 0.6 0.6 0.5 0.4 0.4 0.3 0.3 0.2

(C) Operating Expenses 0.4 0.4 0.5 0.5 0.4 0.5 0.4 0.5 0.5 0.5

(D) Benefit Payments without 13th Check 6.5 6.7 7.1 7.3 7.9 8.0 7.8 7.8 7.7 7.5

(E) Net Cashflow (A-B-C-D) (6.4) (6.2) (6.6) (6.7) (6.9) (7.1) (6.4) (5.9) (5.4) (5.9)

(1) Based on draft Auditor's Report.

0

2

4

6

8

10

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Amount in Millions

of Dollars

Exhibit 2 AIPT 052
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 23

Alaska Ironworkers Pension Plan

H. Projected Net Cash Flow

The following chart shows the relationship between contributions(1), investment management expenses(2), operating expenses(3), and benefit 

payments(4) on a projected basis for 10 plan years. Net cash flow is equal to contributions minus benefit payments, operating expenses, and 

investment management expenses. 

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

(A) Contributions (1) 2.3 2.3 2.3 2.3 2.3 2.6 2.6 2.6 2.6 2.6

(B) Investment Management Expenses (2) 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

(C) Operating Expenses (3) 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5

(D) Benefit Payments without 13th Check (4) 7.4 7.4 7.3 7.2 7.2 7.2 7.1 7.1 7.1 7.0

(E) Net Cashflow (A-B-C-D) (5.8) (5.8) (5.7) (5.6) (5.6) (5.3) (5.2) (5.2) (5.2) (5.1)

(1) The contribution assumption used in the valuation is projected forward with no inflation.

(2) Investment expenses are projected as last year's actual amount with no inflation.

(3) Operating expenses are projected as last year's actual amount with no inflation.

(4) Benefit payments are projected based on the actuarial valuation calculations and assume no 13th check.

0

2

4

6

8

10

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Amount in Millions

of Dollars

Exhibit 2 AIPT 053
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation 24

Alaska Ironworkers Pension Plan

I. Historical Summary of Hourly Employer Contribution Rates

Effective Date Master Hourly Contribution Rate

Year Month

Included in 

Benefits

Funding 

Only

Total 

Contribution

1966 July $0.15 $0.00 $0.15

1968 July 0.55 0.00 0.55

1969 August 0.70 0.00 0.70

1970 August 0.85 0.00 0.85

1971 August 1.00 0.00 1.00

1973 August 1.25 0.00 1.25

1975 February 1.75 0.00 1.75

1977 February 2.25 0.00 2.25

1977 August 2.75 0.00 2.75

1978 August 3.00 0.00 3.00

1983 August 3.25 0.00 3.25

1991 August 3.75 0.00 3.75

1997 March 3.90 0.00 3.90

1997 August 4.40 0.00 4.40

2005 August 4.75 0.00 4.75

2006 August 4.75 1.00 5.75

2007 September 4.75 2.00 6.75

2009 July 4.75 3.00 7.75

2009 August 4.75 4.00 8.75

2010 August 4.75 5.00 9.75

2011 August 4.75 6.00 10.75

2012 August 4.75 7.00 11.75

2013 August 4.75 8.00 12.75

2015 August 4.75 9.00 13.75

Exhibit 2 AIPT 054
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Appendix A

Summary of Actuarial Assumptions

Exhibit 2 AIPT 055
Milliman Actuarial Valuation Appendix A - Summary of Actuarial Assumptions

July 1, 2016 Actuarial Valuation A-1 

Alaska Ironworkers Pension Plan

The following details the principal actuarial assumptions used in our valuation. The rationale for all significant 

economic assumptions is noted below. All significant demographic assumptions are based on analysis of the

Plan’s experience, in particular, a study of all demographic assumptions was performed in conjunction with 

our July 1, 2015 Actuarial Valuation

Investment Return (Interest)

Funding: 6.00% per year (adopted July 1, 2016). The investment return assumption represents the expected 

long-term return on assets based on the Plan’s investment policy, asset allocation, and the capital market 

assumptions.

Withdrawal Liability: 6.00% per year (adopted July 1, 2016).

Current Liability: 3.18% per year (adopted July 1, 2016).

Inflation

No explicit assumption.

Administrative Expenses 

The annual operating expense assumption is $520,000 (adopted July 1, 2016).

Pay Increases

Not applicable. 

Rates for Active Participants

Death: The RP-2014 Mortality Table with Blue Collar adjustment, adjusted to factor out Scale MP-2014 from 

the 2006 base year, then projected forward using Scale MP-2015 on a generational basis, with genderspecific Employee rates (adopted July 1, 2015):

Age Sex

Future Life Expectancy (in years) 

2015 2025 2035 2045

60 Male 24.2 25.2 26.1 27.0

65 Male 19.9 20.7 21.6 22.5

Exhibit 2 AIPT 056
Milliman Actuarial Valuation Appendix A - Summary of Actuarial Assumptions

July 1, 2016 Actuarial Valuation A-2 

Alaska Ironworkers Pension Plan

Withdrawal: Sample termination rates are shown in the following table (adopted July 1, 2015). 

Duration 

from Hire

Termination

Rate

0 25.00%

1 25.00

2 15.00

3 12.00

4 10.00

7 8.00

12 7.00

17 7.00

22 5.00

27+ 3.00

Retirement: Sample retirement rates are shown in the following table (adopted July 1, 2011). These rates 

apply for those retiring from active and vested terminated status.

Age

Retirement

Pre-July, 1 2011 

Benefits

Post-July, 1 2011 

Benefits

20 0.00% 0.00%

25 0.00 0.00

30 0.00 0.00

35 0.00 0.00

40 0.00 0.00

45 0.00 0.00

50 5.00 5.00

51 5.00 5.00

52 5.00 5.00

53 5.00 5.00

54 5.00 5.00

55 5.00 5.00

56 10.00 10.00

57 15.00 10.00

58 20.00 10.00

59 20.00 15.00

60 100.00 20.00

61 100.00 20.00

62 100.00 100.00

Exhibit 2 AIPT 057
Milliman Actuarial Valuation Appendix A - Summary of Actuarial Assumptions

July 1, 2016 Actuarial Valuation A-3 

Alaska Ironworkers Pension Plan

Marriage: Survivor benefits are provided for all Plan participants. 100% of active and terminated vested 

participants are assumed to be married. Wives are assumed to be three years younger than husbands.

Lump Sum – A lump-sum distribution option is provided upon retirement for benefits valued under $5,000. 

However, there is no explicit assumption for this. These benefits are valued as annuities.

Weighted Average Retirement Age

The weighted average retirement age for participants’ benefits earned prior to July 1, 2011 is 57. This equals 

the sum, over all retirement ages, of the retirement age multiplied by the probability of retiring at that age, as 

shown below.

(a) (b) (c) (b) x (c) = (d) (a) x (d) = (e)

Possible 

Retirement Age 

“r”

Assumed Rate of 

Retirement at Age 

“r”

Probability of 

Person Age 55 

Still Working at 

“r”

Probability of 

Person Age 55 

Retiring at “r”

Component of 

Weighted Average 

Retirement Age

50 0.0500 1.0000 0.0500 2.5000

51 0.0500 0.9500 0.0475 2.4225

52 0.0500 0.9025 0.0451 2.3465

53 0.0500 0.8574 0.0429 2.2720

54 0.0500 0.8174 0.0407 2.1992

55 0.0500 0.7738 0.0387 2.1279

56 0.1000 0.7351 0.0735 4.1165

57 0.1500 0.6616 0.0992 5.6565

58 0.2000 0.5623 0.1125 6.5232

59 0.2000 0.4499 0.0900 5.3085

60 1.0000 0.3599 0.3599 21.5941

Weighted Average Retirement Age: 57.0670

Rounded to Nearest Age: 57

Exhibit 2 AIPT 058
Milliman Actuarial Valuation Appendix A - Summary of Actuarial Assumptions

July 1, 2016 Actuarial Valuation A-4 

Alaska Ironworkers Pension Plan

The weighted average retirement age for participants’ benefits earned after July 1, 2011 is 58. This equals the 

sum, over all retirement ages, of the retirement age multiplied by the probability of retiring at that age, as 

shown below.

(a) (b) (c) (b) x (c) = (d) (a) x (d) = (e)

Possible 

Retirement Age 

“r”

Assumed Rate of 

Retirement at Age 

“r”

Probability of 

Person Age 55 

Still Working at 

“r”

Probability of 

Person Age 55 

Retiring at “r”

Component of 

Weighted Average 

Retirement Age

50 0.0500 1.0000 0.0500 2.5000

51 0.0500 0.9500 0.0475 2.4225

52 0.0500 0.9025 0.0451 2.3465

53 0.0500 0.8574 0.0429 2.2720

54 0.0500 0.8145 0.0407 2.1992

55 0.0500 0.7738 0.0387 2.1279

56 0.1000 0.7351 0.0735 4.1165

57 0.1000 0.6616 0.0662 3.7710

58 0.1000 0.5954 0.0595 3.4535

59 0.1500 0.5359 0.0804 4.7426

60 0.2000 0.4555 0.0911 5.4660

61 0.2000 0.3644 0.0729 4.4457

62 0.1750 0.2915 0.2915 18.0742

Weighted Average Retirement Age: 57.9376

Rounded to Nearest Age: 58

Assumed Form of Payment

Future retirees are assumed to elect a single life annuity form of payment.

Mortality Rates after Leaving Active Participation

Healthy and Disabled Lives: The RP-2014 Mortality Table with Blue Collar adjustment, adjusted to factor 

out Scale MP-2014 from the 2006 base year, then projected forward using Scale MP-2015 on a generational 

basis, with gender-specific Healthy Annuitant rates (adopted July 1, 2015). 

Mortality for Current Liability

RP-2000 Combined Mortality Table projected as set forth in Treasury Regulation §1.412(I)(7)-1.

Postretirement Benefit Increases

None. (The Plan does not provide for any future postretirement benefit increases.)

Exhibit 2 AIPT 059
Milliman Actuarial Valuation Appendix A - Summary of Actuarial Assumptions

July 1, 2016 Actuarial Valuation A-5 

Alaska Ironworkers Pension Plan

Inactive Partially Vested Members

No liability was retained for contingently vested former participants currently age 65 or over, based on the 

assumption that they are either currently retired or will never apply for benefits; 45% of the liability was 

retained for those under age 65 to account for reciprocity agreements with related trusts. The retained 

contingent liability is reflected in the present value of accrued nonvested benefits. 

Records with No Birth Date

New records with no birth date are assumed to be 41 years old. Records that are not new and have no birth 

date used the same birth date as the prior year’s valuation. 

Activity Assumption

This valuation uses an hours assumption provided by the Trustees of 165,000 and currently negotiated hourly 

contribution rates. The hourly base contribution rate is assumed to be $4.75, so the assumed contribution is 

$783,750. This assumption is spread evenly over all active participants (adopted July 1, 2016).

Benefits Not Valued

None.

Changes in Actuarial Assumptions Since Prior Valuation

 The interest rate used for funding and withdrawal liability was updated from 6.25% to 6.00% to better 

reflect anticipated future experience.

 The Trustees changed the activity assumption from 200,000 hours to 165,000 hours to better reflect 

anticipated industry activity.

 The method used to spread the activity assumption over the active population was changed. We now 

assume all actives work the same number of hours. Previously, we assumed actives would work hours 

that are proportional to the hours worked in the prior year.

 Effective July 1, 2016, the current liability interest rate was re-established within the statutory interest rate 

corridor, effective July 1, 2016. 

 Effective July 1, 2016, the statutory current liability mortality basis was re-established based on the 

RP-2000 Combined Mortality Table projected as set forth in Treasury Regulation §1.412(I)(7)-1.

 The annual operating expense assumption was changed from $490,000 to $520,000 to better reflect 

expected future expenses.

Exhibit 2 AIPT 060
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Appendix B

Summary of Basic Benefit Structure

Exhibit 2 AIPT 061
Milliman Actuarial Valuation Appendix B - Summary of Basic Benefit Structure

July 1, 2016 Actuarial Valuation B-1 

Alaska Ironworkers Pension Plan

Plan Identification

EIN: 91-6123695

Plan Number: 001

Plan Year: July 1 to June 30 

Normal Retirement Benefits

Pre-July 1, 2011

Benefits: 1.2% x contributions made for the participant as a monthly benefit 

= 14.4% x contributions per year

Eligibility: Normal Retirement Age is age 60 with five pension credits. 

Post-July 1, 2011

Benefits: 1.0% x contributions made for the participant as a monthly benefit 

= 12.0% x contributions per year

Eligibility: Normal Retirement Age is age 62 with five pension credits. 

Early Retirement Benefits

Benefits: The normal retirement benefit (based on contributions to date) reduced by age according to 

the following scale:

Age at Retirement Benefits earned 

prior to July 1, 2011

Benefits earned 

on or after July, 2011 

62 1.0000 1.0000

61 1.0000 0.9200

60 1.0000 0.8400

59 0.9200 0.7600

58 0.8400 0.6800

57 0.7600 0.6000

56 0.6800 0.5600

55 0.6000 0.5200

54 0.5600 0.4800

53 0.5200 0.4400

52 0.4800 0.4000

51 0.4400 0.3600

50 0.4000 0.3200

Eligibility: Age 50 with five pension credits. 

Exhibit 2 AIPT 062
Milliman Actuarial Valuation Appendix B - Summary of Basic Benefit Structure

July 1, 2016 Actuarial Valuation B-2 

Alaska Ironworkers Pension Plan

Vesting (Withdrawal before Retirement)

A participant who leaves with five pension credits is 100% vested in his normal and early retirement benefits 

based on contributions to date. 

Disability Benefits

Benefits: None. 

Eligibility: N/A. 

Death Benefits

Benefits: A 50% joint and survivor annuity payable any time after the participant’s early retirement 

date.

Eligibility: Five pension credits and married at death. 

Forms of Pension Payment

The normal form of payment for a single employee is a life annuity. A participant may elect to receive a 

reduced benefit payable for life with 50%, 662⁄3%, 75%, or 100% of such reduced benefit continued to his or 

her spouse upon the death of the employee. In addition, a participant may elect to receive a further reduced 

benefit in order to receive the normal form benefit amount if the spouse predeceases the employee. 

Plan Changes Since Prior Valuation

None.

Ad Hoc Benefit Increases

(Improvements that do not change the “Basic Benefit Structure”)

None. 

Benefit Structure of the Plan

Effective Date Description

Prior to July 1, 1974 $37.56 per year of pension credit. 

July 1, 1974 5.4% of yearly contributions for benefits.

July 1, 2001 2.1% of yearly contributions for benefits.

July 1, 2003 1.2% of yearly contributions for benefits.

July 1, 2011 1.0% of yearly contributions for benefits. The normal retirement age was also 

changed to 62 on a prospective basis.

Exhibit 2 AIPT 063
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Appendix C

Summary of Actuarial Cost Methods 

Exhibit 2 AIPT 064
Milliman Actuarial Valuation Appendix C - Summary of Actuarial Cost Methods

July 1, 2016 Actuarial Valuation C-1 

Alaska Ironworkers Pension Plan

Background

Before we explain our cost method, we must first define the term "actuarial present value”.

An actuarial present value is the value, on a given date, of a series of future benefit payments, future 

compensation payments or future contributions, where each amount in the series is:

 adjusted for the probability of increase (or decrease) due to such events as death, changes in marital 

status, etc.;

 multiplied by the probability of the event occurring on which the payment is conditioned, such as the 

probability of survival, retirement, death, disability, termination of employment, etc.; and

 discounted at an assumed rate of investment return.

Our actuarial assumptions estimate these probabilities and the investment return.

Actuarial Cost Method

The actuarial cost method used to calculate the funding requirements of the Plan is called the traditional unit 

credit actuarial cost method. 

The actuarial cost method is used to calculate the normal cost and unfunded actuarial accrued liability, which 

in turn determine the funding requirements of the Plan (minimum amount required and maximum amount 

deductible). The cost method allocates the total cost of the Plan over time: the normal cost is that portion of 

the cost allocated to the current year, and the actuarial accrued liability is the actuarial present value of 

costs allocated to prior years. The unfunded actuarial accrued liability (UAAL) is equal to the excess, if 

any, of the actuarial accrued liability over the actuarial value of assets.

Under the traditional unit credit cost method, the normal cost is the actuarial present value of all benefits 

expected to be earned during the plan year; for active employees, these earned benefits are generally due to 

additional covered hours worked. The actuarial accrued liability is the actuarial present value of all benefits 

accrued to date, generally based on service to date. 

Funding Requirements

Each year contributions must fund the normal cost and amortize a portion of the unfunded actuarial accrued 

liability. IRS minimum and maximum funding rules specify amortization schedules for the unfunded actuarial 

accrued liability, depending on the source of increase or decrease (Plan improvements, assumption changes, 

gains/losses, etc.).

Another factor can also affect funding requirements. The excess, if any, of past contributions over the 

accumulated minimum required amount creates a credit balance, which may be used to offset the minimum 

required contribution.

Asset Valuation Method

The actuarial value of assets is the asset value used to determine funding requirements. The actuarial asset 

method is a part of the Plan's cost method and may include smoothing to reduce large year-to-year swings in 

funding requirements due to asset gains and losses.

The method used recognizes market value gains and losses in relation to the investment assumption over the 

five-year periods following the occurrence of the gains or losses. However, this method cannot produce an 

asset value that varies from market value more than 20%.

Exhibit 2 AIPT 065
Milliman Actuarial Valuation Appendix C - Summary of Actuarial Cost Methods

July 1, 2016 Actuarial Valuation C-2 

Alaska Ironworkers Pension Plan

Withdrawal Liability

The market value of assets is used for determining unfunded vested benefit liability for withdrawal liability. 

The PBGC Technical Update 10-3 Simplified Method is used to determine the value of adjustable benefits 

that were removed under the rehabilitation plan that are included for withdrawal liability purposes.

Only the vested benefits are valued for withdrawal liability calculations.

Changes in Actuarial Methods Since Prior Valuation

None.

Exhibit 2 AIPT 066
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Appendix D

Glossary of Actuarial Terms

Exhibit 2 AIPT 067
Milliman Actuarial Valuation Appendix D - Glossary of Actuarial Terms

July 1, 2016 Actuarial Valuation D-1 

Alaska Ironworkers Pension Plan

The following definitions are from a glossary adopted by the Actuarial Standards Board. In some cases, the 

definitions have been modified for specific applicability to the Alaska Ironworkers Pension Plan. Defined terms 

are capitalized throughout this Appendix.

Actuarial Assumptions

Assumptions as to the occurrence of future events affecting pension costs, such as: mortality, withdrawal, 

disablement and retirement; changes in compensation; rates of investment earnings and asset appreciation 

or depreciation; procedures used to determine the Actuarial Value of Assets; and other relevant items.

Actuarial Cost Method

A procedure for determining the Actuarial Present Value of pension plan benefits and expenses and for 

developing an actuarially equivalent allocation of this value to time periods, usually in the form of a Normal 

Cost and an Actuarial Accrued Liability.

Actuarial Accrued Liability

That portion, as determined by a particular Actuarial Cost Method, of the Actuarial Present Value of pension 

plan benefits and expenses which is not provided for by future Normal Costs.

Actuarial Present Value

The value of an amount or series of amounts payable or receivable at various times, determined as of a given 

date by the application of a particular set of Actuarial Assumptions.

Actuarial Valuation

The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of 

Assets, and related Actuarial Present Values for a pension plan.

Actuarial Value of Assets

The value of cash, investments and other property belonging to a pension plan, as used by the actuary for the 

purpose of an Actuarial Valuation.

Actuarially Equivalent

Of equal Actuarial Present Value, determined as of a given date, with each value based on the same set of 

Actuarial Assumptions.

Amortization Payment

That portion of the pension plan contribution that is designed to pay interest on and to amortize the Unfunded 

Actuarial Accrued Liability.

Experience Gain (Loss)

A measure of the difference between actual experience and that expected based upon a set of Actuarial 

Assumptions, during the period between two Actuarial Valuation dates, as determined in accordance with a 

particular Actuarial Cost Method.

Funding Reserve (Deficit)

The amount by which the Market Value of Assets exceeds the Present Value of Accrued Benefits may be 

referred to as the Funding Reserve. If the Market Value of Assets is smaller it may be referred to as the 

Deficit. 

Exhibit 2 AIPT 068
Milliman Actuarial Valuation Appendix D - Glossary of Actuarial Terms

July 1, 2016 Actuarial Valuation D-2 

Alaska Ironworkers Pension Plan

Normal Cost

That portion of the Actuarial Present Value of pension plan benefits and expenses which is allocated to a 

valuation year by the Actuarial Cost Method.

Present Value of Accrued Benefits

The expected discounted value of projected benefits corresponding to benefits accrued as of the valuation 

date.

Present Value of Future Benefits

The expected discounted value of projected benefits corresponding to both the accrued benefits and the 

unaccrued benefits. 

Projected Benefits

Those pension plan benefit amounts which are expected to be paid at various future times to current 

participants under a particular set of Actuarial Assumptions, taking into account such items as the effect of 

advancement in age and past and anticipated future compensation and service credits.

Unaccrued Benefits

Projected Benefits that have not yet been earned as of the valuation date. 

Unfunded Actuarial Accrued Liability

The excess of the Actuarial Accrued Liability over the Actuarial Value of Assets.

Exhibit 2 AIPT 069
Milliman Actuarial Valuation

July 1, 2016 Actuarial Valuation

Alaska Ironworkers Pension Plan

Appendix E

Supporting Actuarial Calculations

July 1, 2016

The exhibits in this section provide detail of the actuarial calculations on which this report is based. 

The calculations reflect draft financial statements provided by the Auditor on February 2, 2017. 

There were no changes to the draft asset information provided by the auditor last year that had any impact on 

the supporting actuarial calculations provided in our July 1, 2015 Actuarial Valuation. 

Exhibit 2 AIPT 070
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 1 

Summary of Market Value of Assets

The summary of plan assets on a market-value basis as of July 1, 2016 is shown below.

1. Assets

a. Cash & equivalents

b. Short term funds

c. U.S. securities

d. Corporate bonds

e. Foreign bonds

f. Common stocks

g. 102-12 investment entity

h. Limited partnerships

i. Mutual funds

j. Exchange traded funds

k. Employer contributions receivable

l. Accrued interest and dividends receivable

m. Security transactions receivable

n. Other accruals or receivables

o. Total

$804,141

2,402,720

2,054,750

985,303

100,662

14,120,356

4,551,414

4,262,833

6,637,776

13,534,466

207,744

63,275

41,349

100

49,766,889

2. Liabilities

a. Accounts payable

b. Security transactions payable

c. Other payables

d. Total

94,754

147,822

0 

242,576

3. Total

[(1o) - (2d)] 49,524,313

Exhibit 2 AIPT 071
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 2 

Summary of Income and Disbursements

The change in the Market Value of Assets from July 1, 2015 to July 1, 2016 is shown below.

1. Market Value of Assets as of July 1, 2015 $56,786,143

2. Income

a. Net appreciation (depreciation) in fair value of investmenets

b. Interest and dividends

c. Employer contribution for plan year

d. Other income

e. Total

(2,193,625)

859,179

2,276,515

1,779

943,848

3. Disbursements

a. Benefit payments to participants

b. Custodial fees

c. Investment manager fees

d. Investment performance fees

e. Administrative expenses

f. Total

7,451,069

17,195

223,150

252

514,012

8,205,678

4. Net increase / decrease

[(2e) - (3f)] (7,261,830)

5. Market Value of Assets as of July 1, 2016

[(1) + (4)] 49,524,313

Exhibit 2 AIPT 072
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 3 

Actuarial Value of Assets

The Actuarial Value of Assets is the Market Value of Assets less a weighted average of asset gains / (losses) 

over a four-year period (five-year smoothing), but not less than 80% nor more than 120% of the Market Value of 

Assets. The Actuarial Value of Assets as of July 1, 2016 is determined below. 

1. Market Value of Assets as of June 30, 2016 $49,524,313

2. Unrecognized asset gains / (losses) for the plan years ending 

Plan Year Ending

a. June 30, 2016

b. June 30, 2015

c. June 30, 2014

d. June 30, 2013

e. Total

Gain / (Loss) for Year

($4,947,324)

(3,140,625)

5,511,835

3,556,575

Percent 

Unrecognized

80%

60%

40%

20%

Amount

Unrecognized

(3,957,859)

(1,884,375)

2,204,734

711,315

(2,926,185)

3. Preliminary Actuarial Value of Assets as of July 1, 2016

[(1) - (2e)] 52,450,498

4. Actuarial Value of Assets as of July 1, 2016

[(3), but not less than 80% x (1), nor more than 120% x (1)] 52,450,498

Exhibit 2 AIPT 073
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 4 

Asset (Gain) / Loss for Prior Plan Year on Actuarial Value of Assets

The asset (gain) / loss is the difference between the expected and actual values of the Actuarial Value of Assets. 

An asset gain is negative because it represents a decrease from the expected Unfunded Actuarial Accrued 

Liability. The asset (gain) / loss for the plan year ending June 30, 2016 is determined below. 

1. Expected Actuarial Value of Assets

a. Actuarial Value of Assets as of July 1, 2015

b. Employer contributions for plan year

c. Benefit payments

d. Administrative expenses

e. Expected investment return based on 6.25% interest rate

f. Expected Actuarial Value of Assets as of July 1, 2016

[(a) + (b) – (c) – (d) + (e)]

$55,701,125

2,276,515

7,451,069

514,012

3,306,247

53,318,806

2. Actuarial Value of Assets as of July 1, 2016 52,450,498

3. Asset (gain) / loss

[(1f) – (2)] 868,308

4. Estimated investment return on Actuarial Value of Assets 4.61% 

Exhibit 2 AIPT 074
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 5 

Funding Standard Account for Prior Plan Year

The Funding Standard Account for the plan year ending June 30, 2016 is determined below. 

1. Outstanding balances as of July 1, 2015

a. Amortization charges

b. Amortization credits

$58,186,053

23,793,272

2. Charges to Funding Standard Account

a. Funding Deficiency as of July 1, 2015

b. Normal Cost as of July 1, 2015

c. Amortization charges as of July 1, 2015

d. Interest on (a), (b), and (c) to end of plan year

e. Total

4,792,391

781,860

10,616,445

1,011,919

17,202,615

3. Credits to Funding Standard Account 

a. Credit Balance as of July 1, 2015

b. Employer contributions for plan year

c. Amortization credits as of July 1, 2015

d. Interest on (a), (b), and (c) to end of plan year

e. Full Funding Credit

f. Total

0 

2,276,515

2,832,877

235,099

0 

5,344,491

4. Credit Balance / (Funding Deficiency) as of June 30, 2016 (11,858,124)

Exhibit 2 AIPT 075
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 6 

Active Participants by Age and Service

The number of active participants summarized by attained age and years of vesting service as of July 1, 2016 is 

shown below.

Years of Credited Service

Age < 1 1-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40+ Total

0-24 6 3 0 0 0 0 0 0 0 0 9 

25-29 6 21 9 0 0 0 0 0 0 0 36 

30-34 5 7 8 3 0 0 0 0 0 0 23 

35-39 1 7 12 10 1 0 0 0 0 0 31 

40-44 5 1 3 4 2 0 0 0 0 0 15 

45-49 2 1 3 5 3 1 0 0 0 0 15 

50-54 2 2 1 2 4 1 1 1 0 0 14 

55-59 0 2 2 3 1 0 1 0 0 0 9 

60-64 0 1 0 0 0 0 0 0 0 0 1 

65-69 0 0 0 0 0 0 0 0 0 0 0 

70+ 0 0 0 0 0 0 0 0 0 0 0 

Total 27 45 38 27 11 2 2 1 0 0 153 

Exhibit 2 AIPT 076
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 7 

Actuarial Balance Sheet

The total plan requirements compared to the total value of plan resources as of July 1, 2016 is shown below. 

Plan Requirements

1. Present value of active participant benefits

a. Retirement

b. Termination

c. Death

d. Disability

e. Total

$7,951,521

1,596,880

78,189

0 

9,626,590

2. Present value of inactive participant benefits

a. Retired participants

b. Terminated vested participants

c. Beneficiaries

d. Disabled participants

e. Total

66,066,114

12,552,969

6,496,646

2,283,522

87,399,251

3. Reserve for expenses 0 

4. Total plan requirements

[(1e) + (2e) + (3)] 97,025,841

Plan Resources

5. Actuarial Value of Assets 52,450,498

6. Unfunded Actuarial Accrued Liability 42,187,826

7. Present Value of Future Normal Costs 2,387,517

8. Total plan resources

[(5) + (6) + (7)] 97,025,841

Exhibit 2 AIPT 077
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 8 

Normal Cost

The Normal Cost is the amount allocated to the current plan year under the Plan’s actuarial cost method. The 

Normal Cost as of July 1, 2016 is determined below.

1. Present value of active participant benefits

a. Retirement

b. Termination

c. Death

d. Disability

e. Total

$171,091

72,117

2,132

0 

245,340

2. Beginning of year loading for administrative expenses 505,069

3. Total 750,409

Exhibit 2 AIPT 078
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 9 

Unfunded Actuarial Accrued Liability

The Actuarial Accrued Liability represents that portion of the Present Value of Benefits that is allocated to service 

before the current plan year. The Unfunded Actuarial Accrued Liability is the excess (deficiency) of the Actuarial 

Accrued Liability over the Actuarial Value of Assets. The Unfunded Actuarial Accrued Liability as of July 1, 2016 is 

determined below

1. Actuarial Accrued Liability for active participants

a. Retirement

b. Termination

c. Death

d. Disability

e. Total

$6,051,814

1,128,842

58,417

0 

7,239,073

2. Actuarial Accrued Liability for inactive participant benefits

a. Retired participants

b. Terminated vested participants

c. Beneficiaries

d. Disabled participants

e. Total

66,066,114

12,552,969

6,496,646

2,283,522

87,399,251

3. Total Actuarial Accrued Liability

[(1e) + (2e)] 94,638,324

4. Actuarial Value of Assets 52,450,498

5. Reserve for expenses 0 

6. Unfunded Actuarial Accrued Liability

[(3) – (4) + (5)] 42,187,826

Exhibit 2 AIPT 079
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 10

Actuarial (Gain) / Loss for Prior Plan Year

The Actuarial (Gain) / Loss for the prior plan year is the difference between the expected and actual Unfunded 

Actuarial Accrued Liability as of the beginning of the current plan year. The Actuarial (Gain) / Loss for the plan 

year ending June 30, 2016 is determined below

1. Unfunded Actuarial Accrued Liability as of July 1, 2015 $39,185,170

2. Normal Cost as of July 1, 2015 781,860

3. Interest on (1) and (2) to end of plan year 2,497,938

4. Subtotal 

[(1) + (2) + (3)] 42,464,969

5. Employer contributions for plan year 2,276,515

6. Interest on (5) to end of plan year 58,044

7. Subtotal 

[(5) + (6)] 2,334,559

8. Changes in Actuarial Accrued Liability

a. Plan amendments

b. Changes in actuarial assumptions

c. Changes in cost method

d. Total

0 

2,289,202

0 

2,289,202

9. Expected Unfunded Actuarial Accrued Liability as of July 1, 2016

[(4) - (7) + (8d)] 42,419,612

10. Actual Unfunded Actuarial Accrued Liability as of July 1, 2016 42,187,826

11. Actuarial (Gain) / Loss on Actuarial Value of Assets 868,308

12. Actuarial (Gain) / Loss on Actuarial Accrued Liability

[(10) - (9) - (11)] (1,100,094)

13. Total Actuarial (Gain) / Loss for prior plan year

[(11) + (12)] (231,786)

14. Total Actuarial (Gain) / Loss for prior plan year subject to amortization (231,788)

Exhibit 2 AIPT 080
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 11

Current Annual Cost and Minimum Required Contribution

The Current Annual Cost is the Plan’s cost under the minimum funding requirements prior to the recognition of the 

Full Funding Limitation and any Credit Balance. The Minimum Required Contribution is the amount needed to 

avoid a Funding Deficiency in the Funding Standard Account. These amounts for the plan year beginning July 1, 

2016 are determined below.

1. Charges for plan year

a. Funding Deficiency as of July 1, 2016

b. Normal Cost

c. Amortization charges (on $52,831,910) 

d. Interest on (a), (b), and (c) to end of plan year

e. Additional Funding Charge

f. Total

$11,858,124

750,409

10,611,206

1,393,184

0 

24,612,923

2. Credits for plan year

a. Amortization credits (on $22,502,208) 

b. Other credits

c. Interest on (a) and (b) to end of plan year

d. Total

2,827,660

0 

169,660

2,997,320

3. Current Annual Cost for plan year

[(1f) - (2d)] 21,615,603 

4. Full Funding Credit for plan year

a. Full Funding Limitation

b. Full Funding Credit

[(3) - (4a), but not less than $0]

62,869,570

0 

5. Credit Balance for plan year

a. Credit Balance as of July 1, 2016

b. Interest on (a) to end of plan year

c. Total

0 

0 

0 

6. Minimum Required Contribution for plan year

[(3) - (4b) - (5c), but not less than $0] 21,615,603

Exhibit 2 AIPT 081
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 12

Charges and Credits for Funding Standard Account

The amortization charges and credits for the Funding Standard Account for the plan year beginning July 1, 2016

are determined below. 

1. Charges as of July 1, 2016

Date

Established

a. July 1, 2000

b. July 1, 2002

c. July 1, 2003

d. July 1, 2004

e. July 1, 2004

f. July 1, 2005

g. July 1, 2006

h. July 1, 2006

i. July 1, 2008

j. July 1, 2009

k. July 1, 2009

l. July 1, 2009

m. July 1, 2011

n. July 1, 2015

o. July 1, 2016

p. Total

Description

Combination of bases

Actuarial loss (1)

Actuarial loss (1)

Actuarial loss (1)

Change in assumptions (4)

Actuarial loss (1)

Actuarial loss (1)

Change in assumptions (4)

Change in assumptions (4)

Actuarial loss (1)

Change in assumptions (4)

Change in cost method (5)

Change in assumptions (4)

Change in assumptions (4)

Change in assumptions (4)

Amortization

Amount

$4,534,859

438,175

714,965

627,060

261,401

347,713

20,265

67,188

39,670

668,848

735,811

1,569,259

47,257

316,374

222,361

10,611,206

Remaining

Years

6 

1 

2 

3 

18

4 

5 

20

7 

8 

8 

3 

10

14

15

Outstanding

Balance

$24,340,798

438,175

1,389,460

1,776,708

3,000,163

1,277,154

90,484

816,882

234,740

4,402,615

4,843,387

4,446,328

368,685

3,117,129

2,289,202

52,831,910

2. Credits as of July 1, 2016

Date

Established

a. July 1, 2002

b. July 1, 2003

c. July 1, 2007

d. July 1, 2007

e. July 1, 2008

f. July 1, 2010

g. July 1, 2010

h. July 1, 2010

i. July 1, 2011

j. July 1, 2012

k. July 1, 2012

l. July 1, 2013

Description

Change in assumptions (4)

Plan amendment (3)

Actuarial gain (1)

Change in assumptions (4)

Actuarial gain (1)

Actuarial gain (1)

Change in assumptions (4)

Plan amendment (3)

Actuarial gain (1)

Actuarial gain (1)

Change in assumptions (4)

Actuarial gain (1)

Amortization 

Amount

$43,005

76,154

389,402

24,747

223,628

98,919

27,113

468,661

63,522

119,371

35,569

181,958

Remaining

Years

16

17

6 

21

7 

9 

9 

9 

10

11

11

12

Outstanding

Balance

$460,677

845,755

2,029,704

308,591

1,323,280

713,183

195,480

3,378,949

495,581

997,948

297,362

1,617,042

Exhibit 2 AIPT 082
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

m. July 1, 2013

n. July 1, 2014

o. July 1, 2014

p. July 1, 2014

q. July 1, 2015

r. July 1, 2016

s. Total

Change in assumptions (4)

Actuarial gain (1)

Change in assumptions (4)

Change in cost method (5)

Actuarial gain (1)

Actuarial gain (1)

 

7,161

250,597

387,682

141,510

266,146

22,515

2,827,660

12

13

13

8 

14

15

63,636

2,351,559

3,637,946

931,474

2,622,253

231,788

22,502,208

3. Net outstanding balance [(1p) - (2s)] 30,329,702

4. Credit Balance / (Funding Deficiency) as of July 1, 2016 (11,858,124) 

5. Accumulated reconciliation account 0 

6. Balance test result [(3) - (4) - (5)] 42,187,826

7. Unfunded Actuarial Accrued Liability as of July 1, 2016 42,187,826

Exhibit 2 AIPT 083
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 13

Current Liability

In accordance with IRS requirements, the Current Liability has been calculated at 3.18%. The Current Liability as 

of July 1, 2016 is determined below. 

1. Current Liability

a. Participants in pay status

b. Participants with deferred benefits

c. Active participants

d. Total

Count

569 

101

153

823

Vested Benefits

$93,537,229

14,648,339

12,287,209

120,472,777

All Benefits

$93,537,229

19,646,034

12,473,399

125,656,662

2. Expected increase in Current Liability for benefit accruals during year 995,219

3. Expected release from “RPA 94” current liability 0 

4. Expected distributions during year 7,416,711

5. Market Value of Assets 49,524,313

6. Current Liability Funded Percentage

[(5) ÷ (1d)] 39.41%

Exhibit 2 AIPT 084
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 14

Full Funding Limitation

The Full Funding Limitation for the plan year ending June 30, 2017 and the tax year ending June 30, 2017 is 

determined below. The bracketed numbers are as of the beginning of the plan year. The other numbers are as of 

the end of the plan year. 

Minimum 

Required 

Contribution

Maximum 

Deductible 

Contribution

1. ERISA Actuarial Accrued Liability

a. Actuarial Accrued Liability

b. Normal Cost

c. Expected distributions

d. Subtotal [(a) + (b) - (c)]

6.25%

[$94,638,324]

[750,409]

[7,705,369] 

$100,316,623

795,434

8,167,691

92,944,366

$100,316,623

795,434

8,167,691

92,944,366

2. Current Liability

a. Current Liability

b. Normal Cost

c. Expected distributions

d. Subtotal [(a) + (b) - (c)]

3.18%

[$125,656,662]

[995,219]

[7,806,594] 

129,652,544

1,026,867

8,054,844

122,624,567

129,652,544

1,026,867

8,054,844

122,624,567

3. Adjusted Plan Assets

a. Actuarial Value of Assets

b. Market Value of Assets

c. Credit Balance

d. Undeducted employer contributions

e. Expected distributions

f. ERISA assets [min{(a), (b)} - (c) - (d) - (e)]

g. Current Liability assets [(a) - (d) - (e)]

[52,450,498]

[49,524,313]

[0]

[0]

[7,705,369]

55,597,528

52,495,772

0 

0 

8,167,691

44,328,081

47,429,837

55,597,528

52,495,772

0 

0 

8,167,691

44,328,081

47,429,837

4. Full Funding Limitation

a. ERISA [max{(1d) - (3f), $0}]

b. Current Liability [max{90% × (2d) - (3g), 

$0}]

c. Full Funding Limitation [max{(a), (b)}]

48,616,285

62,932,273

62,932,273

48,616,285

62,932,273

62,932,273

Exhibit 2 AIPT 085
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 15

Maximum Deductible Contribution under IRC Section 404

The Maximum Deductible Contribution under IRC Section 404 for the tax year beginning July 1, 2016 is 

determined below.

1. Minimum Required Contribution for plan year beginning July 1, 2016 $21,615,603

2. Preliminary Maximum Deductible Contribution under IRC Section 404 for tax year

a. Normal Cost

b. 10-year amortization of Unfunded Actuarial Accrued Liability 

c. Interest to earlier of tax year end or plan year end

d. Total

750,409

5,407,523

369,476

6,527,408

3. Full Funding Limitation for tax year 62,869,570

4. Unfunded 140% of Current Liability as of June 30, 2017

a. Current Liability (for IRC Section 404 purposes) projected to end of year

b. Actuarial Value of Assets (for IRC Section 404 purposes) projected to end of year

c. Unfunded 140% of Current Liability

[140% × (a) - (b), but not less than $0]

123,145,697

47,961,557

124,442,419

5. Maximum Deductible Contribution under IRC Section 404 for tax year

[greater of (1) and (2d), but not more than (3), nor less than (4c)] 124,442,419

There are alternative calculations of the Maximum Deductible Contribution under IRC Section 404 that may

produce a different amount than illustrated above. Additionally, deductibility of contributions to a defined 

contribution plan maintained for the same employees may be affected by the 25% of pay limitation for defined 

benefit and defined contribution plans combined. Employers should consult their tax advisors regarding the 

deductibility of contributions.

Exhibit 2 AIPT 086
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 16

Charges and Credits for Maximum Deductible Contribution

The 10-year limitation bases for the preliminary Maximum Deductible Contribution as of June 30, 2016 are 

determined below. 

1. 10-year limitation bases

Date Established

a. July 1, 2016

b. Total

Amortization

Amount

$5,407,523

5,407,523

Remaining

Years

Outstanding

Balance

$42,187,826

42,187,826

2. Net outstanding balance 42,187,826

3. Undeducted employer contributions 0 

4. Balance test [(2) - (3)] 42,187,826

5. Unfunded Actuarial Accrued Liability

as of June 30, 2016 42,187,826

Exhibit 2 AIPT 087
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 17

Present Value of Accumulated Plan Benefits

Accumulated Plan Benefits are benefits earned to date, based on pay history and service rendered to date, 

expected to be paid in the future to retired, terminated vested, and active participants, and beneficiaries of active 

or former participants. The Present Value of Accumulated Plan Benefits (determined on a plan continuation basis 

in accordance with FASB ASC Topic 960) as of July 1, 2015 and July 1, 2016 is shown below.

07/01/15 07/01/16

1. Present Value of vested Accumulated Plan Benefits

a. Active participants

b. Retired participants

c. Terminated vested participants

d. Beneficiaries

e. Disabled participants

f. Total

$6,757,848

67,187,293

9,116,215

6,000,818

2,289,965

91,352,139

$7,120,555

66,066,114

9,321,085

6,496,646

2,283,522

91,287,922

2. Present Value of non-vested 

Accumulated Plan Benefits 3,534,156 3,350,402

3. Present Value of all Accumulated Plan Benefits

[(1f) + (2)] 94,886,295 94,638,324

4. Market Value of Assets 56,786,143 49,524,313

5. Funded percentage on Market Value of Assets

a. Vested benefits

[(4) ÷ (1f)]

b. All benefits

[(4) ÷ (3)]

62.16%

59.85%

54.25% 

52.33% 

6. Actuarial Value of Assets 55,701,125 52,450,498

7. Funded percentage on Actuarial Value of Assets

a. Vested benefits

[(6) ÷ (1f)]

b. All benefits

[(6) ÷ (3)]

60.97%

58.70%

57.46% 

55.42% 

Exhibit 2 AIPT 088
Milliman 

 Actuarial Valuation

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 18

Change in Present Value of Accumulated Plan Benefits

The change in the Present Value of Accumulated Plan Benefits (determined on a plan continuation basis in 

accordance with FASB ASC Topic 960) from July 1, 2015 to July 1, 2016 is shown below. 

1. Present Value of all Accumulated Plan Benefits as of July 1, 2015 $94,886,295

2. Changes

a. Reduction in discount period

b. Benefits accumulated plus actuarial (gain) / loss

c. Benefit payments

d. Plan amendments

e. Change in assumptions

f. Total

5,701,076

(787,180)

(7,451,069)

0 

2,289,202

(247,971) 

3. Present Value of all Accumulated Plan Benefits as of July 1, 2016

[(1) + (2f)] 94,638,324

Exhibit 2 AIPT 089
Milliman 

 Actuarial Valuation 

July 1, 2016 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 19 

Unfunded Vested Benefit Liability for Withdrawal Liability Calculations 

Withdrawal liability payments are based on unfunded vested benefit liability. Vested benefit liability is the present 

value of benefits earned to date, excluding benefits for non-vested participants. These liabilities have been 

determined as of June 30, 2015 and June 30, 2016. However, if there is a termination by mass withdrawal during 

the year, a separate calculation would have to be performed. 

06/30/15 06/30/16 

1. Present Value of vested Accumulated Plan Benefits 

a. Active participants 

b. Retired participants 

c. Terminated vested participants 

d. Beneficiaries 

e. Disabled participants 

f. Total vested benefits 

$6,757,848 

67,187,293 

9,116,215 

6,000,818 

2,289,965 

91,352,139 

$7,120,555 

66,066,114 

9,321,085 

6,496,646 

2,283,522 

91,287,921 

2. Additional Vested Benefit Liability for 

Unamortized Benefit Reductions 1,728,363 1,598,768 

3. Total Vested Benefit Liability 93,080,502 92,886,690 

4. Market Value of Assets 56,786,143 49,524,313 

5. Funded ratio 

[(4) ÷ (3)] 61.01% 53.32% 

6. Unfunded Vested Benefit Liability 

[(3) - (4), but not less than $0] $36,294,359 $43,362,377 

Exhibit 2 AIPT 090