Alaska Ironworkers Pension Plan

July 1, 2015 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 17 AIPT 403
July 1, 2015 Actuarial Valuation of the

Alaska Ironworkers Pension Plan

The 2015 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, 2015. 

 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 17 AIPT 404
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 

April 1, 2016

Date

Exhibit 17 AIPT 405
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 2015/2016 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............................................................................................................. 18

C. Historical Hours and Contributions ...................................................................................................... 19

D. Retired Participant Statistics ................................................................................................................ 20

E. Vested Terminated Participant Statistics ............................................................................................. 21

F. Active Participant Statistics.................................................................................................................. 22

G. Historical Net Cash Flow...................................................................................................................... 23

H. Projected Net Cash Flow ..................................................................................................................... 24

I. Historical Summary of Hourly Employer Contribution Rates ............................................................... 25

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 17 AIPT 406
D. Glossary of Actuarial Terms................................................................................................................... D-1 

E. Supporting Actuarial Calculations July 1, 2015

Market Assets ................................................................................................................................................1 

Receipts and Disbursements.........................................................................................................................2 

Actuarial Assets .............................................................................................................................................3 

Schedule of Investment Gain / (Loss) Recognition .......................................................................................4 

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

Application of Employer Contributions to Maximum Deductible Contribution Limit ......................................6 

Summary of Active Participants by Age and Service ....................................................................................7 

Actuarial Balance Sheet ................................................................................................................................8 

Normal Cost...................................................................................................................................................9 

Unfunded Actuarial Accrued Liability.......................................................................................................... 10

Actuarial (Gain) / Loss for Prior Plan Year ................................................................................................. 11

Current Annual Cost and Minimum Required Contribution ........................................................................ 12

Charges and Credits for Funding Standard Account.................................................................................. 13

Current Liability........................................................................................................................................... 14

Full Funding Limitation ............................................................................................................................... 15

Maximum Deductible Contribution under IRC Section 404........................................................................ 16

Charges and Credits for Maximum Deductible Contribution ...................................................................... 17

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

Change in Present Value of Accumulated Plan Benefits ........................................................................... 19

Unfunded Vested Benefit Liability for Withdrawal Liability Calculations..................................................... 20

Exhibit 17 AIPT 407
Summary of Results

Exhibit 17 AIPT 408
A. Overview

Actuarial Valuation for Plan Year Beginning

July 1, 2014 July 1, 2015

Assets

Market Value of Assets (MVA) $61,268,718 $56,786,143

Actuarial Value of Assets (AVA) $55,193,938 $55,701,125

Return for Prior Plan Year

Market Value of Assets 16.3% 0.9% 

Actuarial Value of Assets 11.8% 10.5% 

Funded Status

Present Value of Accrued Benefits $93,844,780 $94,886,295

Market Funded Percentage 65.3% 59.8% 

Actuarial (Pension Protection Act) Funded Percentage 58.8% 58.7% 

Withdrawal Liability

Present Value of Vested Benefits for Withdrawal Liability $89,968,699 $91,352,139

Value of Unamortized Affected Benefit Reductions 1,850,336 1,728,363

Market Value of Assets for Withdrawal Liability (61,268,718) (56,786,143) 

Unfunded Present Value of Vested Benefits (UVB) $30,550,317 $36,294,359

Credit Balance and Contribution Requirements

Actuarial Accrued Liability $93,844,780 $94,886,295

Reserve for Expenses $0 $0 

Actuarial Value of Assets $(55,193,938) $(55,701,125) 

Unfunded Actuarial Accrued Liability $38,650,842 $39,185,170

Credit Balance at End of Prior Plan Year $965,246 $(4,792,391)

Normal Cost (including expenses) $757,830 $781,860

Plan Year Employer Contributions $3,123,859 Not Available

Maximum Deductible Contribution $121,535,537 $123,204,751

Participant Data

Active participants 130 160

Inactive participants with deferred benefits 91 95

Retired participants 473 461

Disabled participants 34 31

Beneficiaries 76 77

Total participants 804 824

Certification

PPA Zone Status Critical (Red) Critical (Red)

Scheduled Progress Forestall Insolvency Forestall Insolvency

Exhibit 17 AIPT 409
B. Purpose of This Report

This report has been prepared for the Alaskan Ironworkers Pension Plan as of July 1, 2015 to:

 Review the experience for the plan year ending June 30, 2015, 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, 2015. 

 Determine the Plan’s unfunded vested benefit liability as of June 30, 2015 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, 2015 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, 2015. There were no changes to the plan 

provisions during the 2014-2015 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 demographic assumptions were updated based on the Demographic Assumptions Study 

prepared concurrently with this valuation. This increased the present value of accrued benefits by 

approximately $3.3 million. The changes included:

o The rates of termination were revised.

o The rates of retirement for terminated participants were revised.

o The mortality assumptions were updated to the gender specific blue collar RP-2014 Mortality 

Tables, adjusted to factor out Scale MP-2014 to the 2006 base year, then projected forward 

using Scale MP-2015 on a generational basis. Employee rates are used before benefit 

commencement and Healthy Annuitant rates are used after benefit commencement.

 Effective July 1, 2015, the current liability interest rate was re-established within the statutory interest 

rate corridor, effective July 1, 2015.

 Effective July 1, 2015, 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 $470,000 to $490,000 to better reflect 

expected future expenses.

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

Exhibit 17 AIPT 410





Actuarial Valuation Process

Exhibit 17 AIPT 416









Historical Statistics and Projections

Exhibit 17 AIPT 426
A. Historical Investment Return

06/30/2015

06/30/2014

06/30/2013

06/30/2012

06/30/2011

06/30/2010

06/30/2009

06/30/2008

06/30/2007

06/30/2006

06/30/2005

06/30/2004

06/30/2003

06/30/2002

06/30/2001

06/30/2000

06/30/1999

06/30/1998

06/30/1997

06/30/1996

06/30/1995

06/30/1994

06/30/1993

06/30/1992

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

11.8

2.8

7.7

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

22.3 4.5 5.5

8.0 2.9 3.1

-18.5 3.3 2.7

-1.3 10.0 5.8

17.3 11.2 7.8

-5.1 4.5 8.6

-2.7 9.8 10.4

13.4 6.5 8.2

10.1 3.3 8.3

11.2 2.0 9.1

0.9 9.5 6.1 7.7

3.3 13.4

21.7 12.9

9.5 16.7

19.2 15.2

4.2 1.7 8.3

Exhibit 17 AIPT 427








Appendix A

Summary of Actuarial Assumptions

Exhibit 17 AIPT 436




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 assumption of 200,000 contributory hours per year (adopted July 1, 2014).

Benefits Not Valued

None.

Changes in Actuarial Assumptions Since Prior Valuation

 The demographic assumptions were updated based on the Demographic Assumptions Study prepared 

concurrently with this valuation. This increased the present value of accrued benefits by approximately 

$3.3 million. The changes included:

o The rates of termination were revised.

o The rates of retirement for terminated participants were revised.

o The mortality assumptions were updated to the gender specific blue collar RP-2014 Mortality 

Tables, adjusted to factor out Scale MP-2014 to the 2006 base year, then projected forward using 

Scale MP-2015 on a generational basis. Employee rates are used before benefit commencement 

and Healthy Annuitant rates are used after benefit commencement.

 Effective July 1, 2015, the current liability interest rate was re-established within the statutory interest rate 

corridor, effective July 1, 2015. 

 Effective July 1, 2015, 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 $470,000 to $490,000 to better reflect 

expected future expenses.

Exhibit 17 AIPT 441
Appendix B

Summary of Basic Benefit Structure

Exhibit 17 AIPT 442


Appendix C

Summary of Actuarial Cost Methods 

Exhibit 17 AIPT 445
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 17 AIPT 446
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.

Death benefits offered by the Plan are not considered vested for withdrawal liability calculations.

Changes in Actuarial Methods Since Prior Valuation

None.

Exhibit 17 AIPT 447
Appendix D

Glossary of Actuarial Terms

Exhibit 17 AIPT 448
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 17 AIPT 449
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 17 AIPT 450
Appendix E

Supporting Actuarial Calculations

July 1, 2015

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 15, 2016. 

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, 2014 Actuarial Valuation Report.

Exhibit 17 AIPT 451
Exhibit 1

Market Assets

June 30, 2015

Assets:

 Investments at fair value: 

 Short term funds $ 4,465,484

 U.S. securities 605,387

 Corporate bonds 418,957

 Foreign bonds 40,828

 Common stocks 24,758,561

 Common/collective funds 2,491,746

 Partnerships 4,152,277

Mutual Funds 6,093,066

Exchange traded funds 12,875,063

 Total investments 55,901,369

 Receivables:

 Employer contributions 308,747

 Accrued interest and dividends 56,799

 Securities transactions 308,440

 Other receivables 100

 Total receivables 674,086

 Cash:

 Checking 883,224

 Total cash 883,224

 Total assets 57,458,679

Liabilities:

 Accounts payable 111,463

 Security transactions payable 561,073

 Total liabilities 672,536

Net assets available for benefits $ 56,786,143

Exhibit 17 AIPT 452
Exhibit 2

Receipts and Disbursements 

(Year Ended June 30, 2015) 

Additions:

 Investment Income: 

 Net appreciation (depreciation) in fair value $ (248,512)

 Interest and dividends 1,063,876

 Security lending -

 815,364

 Less investment expenses: 

 Custodial fees 15,000

 Investment manager fees 276,339

 Investment performance fees 206

 291,545

 Net investment income (loss) 523,819

 Employer contributions 3,123,859

 Other income 10,451

 3,134,310

 Total additions 3,658,129

Deductions:

 Benefits paid 7,654,800

 Administrative expenses 485,904

 Total deductions 8,140,704

 Net increase (decrease) (4,482,575)

Net assets available for benefits:

 Beginning of year 61,268,718

 End of year $ 56,786,143

Exhibit 17 AIPT 453
Exhibit 3

Actuarial Assets

July 1, 2015

Determination of Recognized Investment Gains and Losses - Five-Year Smoothing

1. Expected investment return – Year Ended 6/30/2015 $ 3,674,894

2. Actual investment return – Year Ended 6/30/2015 $ 534,270

3. Gains/(losses) – 2015 (Actual – Expected) $ (3,140,624)

4. Gains/(losses) for prior years

2010-2011 $ 8,978,965

2011-2012 (5,661,065)

2012-2013 3,556,575

2013-2014 5,511,835

2014-2015 (3,140,625)

$ 9,245,685

5. Gains/(losses) recognized at 7/1/2015 $ 1,849,138

Actuarial value of assets 7/1/2014 $ 55,193,938

Net cash flow during year $ (5,016,845)

Expected investment return 3,674,894

Recognized investment gains/(losses) 1,849,138 $ 507,187

Actuarial value of assets 7/1/2015 before corridor* $ 55,701,125

Actuarial value of assets 7/1/2015 after corridor* $ 55,701,125

Unrecognized gain/(loss) 1,085,018

Market value of assets 7/1/2015

(Actuarial value before corridor + unrecognized gain) $ 56,786,143

* Actuarial value must be between 80% and 120% of market value. For July 1, 2015, the market

value of assets equals $56,786,143, and the initial actuarial value of assets falls within this

required corridor.

Determination of Actuarial Assets

Exhibit 17 AIPT 454
Exhibit 4

Schedule of Investment Gain / (Loss) Recognition

(in millions)

Investment

Gain/(Loss)

Year Recognized in Investment Gain/(Loss) to be

Ending Recognized in Past Years Current Year Recognized in Future Years

6/30 2011 2012 2013 2014 2015* 2016 2017 2018 2019

2007 $8.0 $0.0

2008 ($7.1) $0.0 $0.0

2009 ($20.0) $0.0 $0.0 $0.0

2010 $1.0 $0.2 $0.2 $0.2 $0.2

2011 $9.0 $1.8 $1.8 $1.8 $1.8 $1.8

2012 ($5.7) ($1.1) ($1.1) ($1.1) ($1.1) ($1.1)

2013 $3.6 $0.7 $0.7 $0.7 $0.7 $0.7

2014 $5.5 $1.1 $1.1 $1.1 $1.1 $1.1

2015 ($3.1) ($0.6) ($0.6) ($0.6) ($0.6) ($0.6)

2016 $0.0 $0.0 $0.0 $0.0 $0.0

2017 $0.0 $0.0 $0.0 $0.0

2018 $0.0 $0.0 $0.0

2019 $0.0 $0.0

Total Gain/(Loss) Recognized at Each Valuation Date

Recognized Scheduled to be Recognized*

$2.0 $0.9 $1.6 $2.7 $1.8 $0.1 $1.2 $0.5 ($0.6)

$1.1 $1.0 ($0.2) ($0.6) ($0.0)

* The total gain/(loss) actually recognized in each future year will include additional amortizations of future gains and/or losses.

Gain/

(Loss)

Unrecognized Gain/(Loss) Remaining

Market

Value

Investment Investment Gain/(Loss)

Exhibit 17 AIPT 455
Exhibit 5 

Funding Standard Account for Prior Plan Year

The Funding Standard Account for the plan year ending June 30, 2015 is determined below. 

1. Outstanding balances as of July 1, 2014

a. Amortization charges $61,996,378 

b. Amortization credits 22,380,289

c. Accumulated Additional Funding Charges with interest 0 

d. Accumulated Additional Interest Charges with interest 0 

2. Charges to Funding Standard Account

a. Funding Deficiency as of July 1, 2014 0 

b. Normal Cost as of July 1, 2014 757,830

c. Amortization charges as of July 1, 2014 10,295,907

d. Interest on (a), (b), and (c) to end of plan year 690,859

e. Additional Interest Charge for plan year 0 

f. Additional Funding Charge for plan year 0 

g. Total 11,744,596

3. Credits to Funding Standard Account

a. Credit Balance as of July 1, 2014 965,246

b. Employer contributions for plan year 3,123,859

c. Amortization credits as of July 1, 2014 2,563,232

d. Interest on (a), (b), and (c) to end of plan year 299,868

e. Full Funding Credit 0 

f. Total 6,952,205

4. Credit Balance / (Funding Deficiency) as of June 30, 2015 $(4,792,391) 

Exhibit 17 AIPT 456
Exhibit 6 

Application of Employer Contributions to 

Maximum Deductible Contribution Limit

The amount of undeducted employer contributions, if any, as of June 30, 2015 is determined below.

1. Employer contributions for tax year ending June 30, 2015 $3,123,859

2. Undeducted employer contributions as of July 1, 2014 0 

3. Maximum Deductible Contribution for tax year ending June 30, 2015 121,535,537

4. Undeducted employer contributions as of June 30, 2015 to be 

carried over to future tax years

[(1) + (2) - (3), but not less than $0] $0

Exhibit 17 AIPT 457
Exhibit 7 

Summary of Active Participants by Age and Service

Number of Participants by Age and Service Groups

Years of Vesting Service

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

0-24 7 9 - - - - - - - - 16

25-29 11 14 14 - - - - - - - 39

30-34 5 6 11 4 - - - - - - 26

35-39 5 8 9 9 1 - - - - - 32

40-44 3 - 3 2 2 - - - - - 10

45-49 1 3 2 4 2 1 - - - - 13

50-54 - 3 2 3 5 - 1 - - - 14

55-59 - 2 2 1 2 - 1 - - - 8 

60-64 - - - 2 - - - - - - 2 

65-69 - - - - - - - - - - - 

70&Up - - - - - - - - - - - 

Total 32 45 43 25 12 1 2 - - - 160

Exhibit 17 AIPT 458
Exhibit 8 

Actuarial Balance Sheet

The total plan requirements compared to the total value of plan resources as of July 1, 2015 is shown below. 

Plan Requirements

1. Present value of active participant benefits

a. Withdrawal $1,642,018

b. Early Retirement 4,338,072

c. Unreduced Retirement 3,740,323

d. Death 77,377

e. Total 9,797,790

2. Present value of inactive participant benefits

a. Terminated vested participants 9,116,215

b. Contingent vested participants 3,343,842

c. Retired participants 67,187,293

d. Disabled participants 2,289,965

e. Beneficiaries 6,000,818

f. Total 87,938,133

3. Reserve for expenses 0 

4. Total plan requirements

[(1e) + (2f) + (3)] 97,735,923

Plan Resources

5. Actuarial Value of Assets 55,701,125

6. Unfunded Actuarial Accrued Liability 39,185,170

7. Present Value of Future Normal Costs 2,849,628

8. Total plan resources

[(4) + (5) + (6)] $97,735,923

Exhibit 17 AIPT 459
Exhibit 9 

Normal Cost 

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

employer Normal Cost as of July 1, 2015 is determined below. 

1. Normal Cost for benefits

a. Withdrawal $91,734

b. Early Retirement 127,024

c. Unreduced Retirement 85,120

d. Death 2,612

e. Total 306,490

2. Loading for expenses 475,370

3. Total Employer Normal Cost

[(1e) + (2)] $781,860

Exhibit 17 AIPT 460
Exhibit 10

Unfunded Actuarial Accrued Liability

The Actuarial Accrued Liability represents that portion of the Present Value of Benefits that is not provided by 

the Present Value of Future Normal Costs. 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, 2014 and July 1, 2015 is determined below.

7/1/2014 7/1/2015

1. Present Value of Benefits

a. Active participants $9,779,480 $9,797,790

b. Terminated vested participants 7,871,981 9,116,215

c. Contingent vested participants 3,569,849 3,343,842

d. Retired participants 67,482,384 67,187,293

e. Disabled participants 1,906,050 2,289,965

f. Beneficiaries 5,772,517 6,000,818

g. Total 96,382,261 97,735,923

2. Present Value of Future Normal Costs 2,537,481 2,849,628

3. Actuarial Accrued Liability

[(1g) - (2)] 93,844,780 94,886,295

4. Actuarial Value of Assets 55,193,938 55,701,125

5. Reserve for expenses 0 0 

6. Unfunded Actuarial Accrued Liability

[(3) - (4) + (5)] $38,650,842 $39,185,170

Exhibit 17 AIPT 461
Exhibit 11

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, 2015 is determined below.

1. Unfunded Actuarial Accrued Liability as of July 1, 2014 $38,650,842

2. Normal Cost as of July 1, 2014 757,830

3. Interest on (1) and (2) to end of plan year 2,463,042

4. Subtotal 

[(1) + (2) + (3)] 41,871,714

5. Employer contributions for plan year 3,123,859

6. Interest on (5) to end of plan year 79,338

7. Subtotal 

[(5) + (6)] 3,203,197

8. Changes in Actuarial Accrued Liability

a. Plan amendments 0 

b. Changes in actuarial assumptions 3,254,301

c. Changes in cost method 0 

d. Total 3,254,301

9. Expected Unfunded Actuarial Accrued Liability as of July 1, 2015

[(4) - (7) + (8d)] 41,922,818

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

11. Actuarial (Gain) / Loss for prior plan year

[(10) - (9)] $(2,737,648)

Exhibit 17 AIPT 462
Exhibit 12

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, 2015 are determined below.

1. Charges for plan year

a. Funding Deficiency as of July 1, 2015 $4,792,391

b. Normal Cost 781,860

c. Amortization charges (on $58,186,053) 10,616,445

d. Interest on (a), (b), and (c) to end of plan year 1,011,919

e. Additional Funding Charge 0 

f. Total 17,202,615

2. Credits for plan year

a. Amortization credits (on $23,793,272) 2,832,877

b. Other credits 0 

c. Interest on (a) and (b) to end of plan year 177,055

d. Total 3,009,932

3. Current Annual Cost for plan year

[(1f) - (2d)] 14,192,683

4. Full Funding Credit for plan year

a. Full Funding Limitation 61,047,636

b. Full Funding Credit

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

5. Credit Balance for plan year

a. Credit Balance as of July 1, 2015 0 

b. Interest on (a) to end of plan year 0 

c. Total 0 

6. Minimum Required Contribution for plan year

[(3) - (4b) - (5c), but not less than $0] $14,192,683

Exhibit 17 AIPT 463
Exhibit 13

Charges and Credits for Funding Standard Account

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

2015 are determined below. 

1. Charges as of July 1, 2015

Date Amortization Remaining Outstanding

Established Description * Amount Years Balance

a. July 1, 2000 Combination of bases $4,560,950 7.2 $27,469,936

b. July 1, 2001 Actuarial loss (1) 173,490 1.0 173,490

c. July 1, 2002 Actuarial loss (1) 438,175 2.0 850,575

d. July 1, 2003 Actuarial loss (1) 715,782 3.0 2,023,509

e. July 1, 2004 Actuarial loss (1) 628,481 4.0 2,300,677

f. July 1, 2004 Change in assumptions (4) 265,703 19.0 3,089,386

g. July 1, 2005 Actuarial loss (1) 348,883 5.0 1,550,910

h. July 1, 2006 Actuarial loss (1) 20,354 6.0 105,516

i. July 1, 2006 Change in assumptions (4) 68,396 21.0 837,226

j. July 1, 2008 Change in assumptions (4) 39,929 8.0 260,861

k. July 1, 2009 Actuarial loss (1) 673,892 9.0 4,817,530

l. July 1, 2009 Change in assumptions (4) 741,360 9.0 5,299,842

m. July 1, 2009 Change in cost method (5) 1,572,812 4.0 5,757,591

n. July 1, 2011 Change in assumptions (4) 47,705 11.0 394,703

o. July 1, 2015 Change in assumptions (4) 320,533 15.0 3,254,301

p. Total 10,616,445 58,186,053

2. Credits as of July 1, 2015

Date Amortization Remaining Outstanding

Established Description * Amount Years Balance

a. July 1, 2002 Change in assumptions (4) $43,644 17.0 $477,222

b. July 1, 2003 Plan amendment (3) 77,346 18.0 873,351

c. July 1, 2007 Actuarial gain (1) 391,543 7.0 2,301,853

d. July 1, 2007 Change in assumptions (4) 25,210 22.0 315,649

e. July 1, 2008 Actuarial gain (1) 225,088 8.0 1,470,528

f. July 1, 2010 Actuarial gain (1) 99,763 10.0 770,994

g. July 1, 2010 Plan amendment (3) 472,658 10.0 3,652,845

h. July 1, 2010 Change in assumptions (4) 27,344 10.0 211,325

i. July 1, 2011 Actuarial gain (1) 64,125 11.0 530,554

j. July 1, 2012 Actuarial gain (1) 120,617 12.0 1,059,862

k. July 1, 2012 Change in assumptions (4) 35,940 12.0 315,810

l. July 1, 2013 Actuarial gain (1) 184,026 13.0 1,705,948

m. July 1, 2013 Change in assumptions (4) 7,242 13.0 67,135

Exhibit 17 AIPT 464
n. July 1, 2014 Actuarial gain (1) 253,671 14.0 2,466,903

o. July 1, 2014 Change in assumptions (4) 392,438 14.0 3,816,387

p. July 1, 2014 Change in cost method (5) 142,577 9.0 1,019,258

q. July 1, 2015 Actuarial gain (1) 269,645 15.0 2,737,648

r. Total 2,832,877 23,793,272

3. Net outstanding balance [(1p) - (2r)] 34,392,781

4. Funding Deficiency as of July 1, 2015 4,792,391

5. Accumulated reconciliation account as of July 1, 2015

a. Additional Funding Charges 0 

b. Additional Interest Charges 0 

c. Due to Waived Funding Deficiencies 0 

d. Total [(a) + (b) + (c)] 0 

6. Balance test result [(3) + (4) - (5d)] 39,185,172

7. Unfunded Actuarial Accrued Liability as of July 1, 2015, minimum $0 $39,185,170

* The numbers following the descriptions identify the type of base according to Schedule MB line 7 instructions. 

Exhibit 17 AIPT 465
Exhibit 14

Current Liability

In accordance with IRS requirements, the Current Liability has been calculated at 3.34%. The Current Liability 

as of July 1, 2015 is determined below. 

1. Current Liability

Count Vested Benefits All Benefits

a. Participants in pay status 569 $95,307,862 $95,307,862

b. Participants with deferred benefits 95 14,619,317 19,827,907

c. Active participants 160 11,609,480 12,026,676

d. Total 824 121,536,659 127,162,445

2. Expected increase in Current Liability for benefit accruals during year 621,995

3. Expected distributions during year 7,612,128

4. Market Value of Assets $56,786,143

5. Current Liability Funded Percentage

[(4) ÷ (1d)] 44.66%

Exhibit 17 AIPT 466
Exhibit 15

Full Funding Limitation

The Full Funding Limitation for the plan year ending June 30, 2016 and the tax year ending June 30, 2016 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 Maximum

Required Deductible

Contribution Contribution

1. ERISA Actuarial Accrued Liability 6.25%

a. Actuarial Accrued Liability [$94,886,295] $100,816,688 $100,816,688

b. Normal Cost [781,860] 830,726 830,726

c. Expected distributions [7,856,255] 8,347,270 8,347,270

d. Subtotal [(a) + (b) - (c)] 93,300,144 93,300,144

2. Current Liability 3.34%

a. Current Liability [127,162,445] 131,409,671 131,409,671

b. Normal Cost [1,097,365] 1,134,017 1,134,017

c. Expected distributions [7,963,474] 8,229,455 8,229,455

d. Subtotal [(a) + (b) - (c)] 124,314,233 124,314,233

3. Adjusted Plan Assets 6.25%

a. Actuarial Value of Assets [55,701,125] 59,182,445 59,182,445

b. Market Value of Assets [56,786,143] 60,335,277 60,335,277

c. Credit Balance [0] 0 n/a

d. Undeducted employer contributions [0] n/a 0 

e. Expected distributions [7,856,255] 8,347,270 8,347,270

f. ERISA assets [min{(a), (b)} - (c) - (d) - (e)] 50,835,175 50,835,175

g. Current Liability assets [(a) - (d) - (e)] 50,835,175 50,835,175

4. Full Funding Limitation

a. ERISA [max{(1d) - (3f), $0}] 42,464,969 42,464,969

b. Current Liability [max{90% × (2d) - (3g), $0}] 61,047,635 61,047,635

c. Full Funding Limitation [max{(a), (b)}] $61,047,635 $61,047,635

Exhibit 17 AIPT 467
Exhibit 16

Maximum Deductible Contribution under IRC Section 404

The Maximum Deductible Contribution under IRC Section 404 for the tax year beginning July 1, 2015 is 

determined below.

1. Minimum Required Contribution for plan year beginning July 1, 2015 $14,192,683

2. Preliminary Maximum Deductible Contribution under IRC Section 404 

for tax year

a. Normal Cost 781,860

b. Amortization payment on ten-year limitation bases 5,070,350

c. Interest to earlier of tax year end or plan year end 365,763

d. Total 6,217,973

3. Full Funding Limitation for tax year 61,047,635

4. Unfunded 140% of Current Liability as of June 30, 2016

a. Current Liability (for IRC Section 404 purposes) projected 

to end of year 124,314,233

b. Actuarial Value of Assets (for IRC Section 404 purposes) 

projected to end of year 50,835,175

c. Unfunded 140% of Current Liability

[140% × (a) - (b), but not less than $0] 123,204,751

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)] $123,204,751

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. Please consult your tax advisors regarding the deductibility 

of cash contributions. 

Exhibit 17 AIPT 468
Exhibit 17

Charges and Credits for Maximum Deductible Contribution

The ten-year limitation bases for the preliminary Maximum Deductible Contribution as of July 1, 2015 are 

determined below.

1. Ten-year limitation bases

Date Amortization Remaining Outstanding

Established Amount Years Balance

a. July 1, 2015 $5,070,350 10.0 $39,185,170

b. Total 5,070,350 39,185,170

2. Net outstanding balance 39,185,170

3. Undeducted employer contributions 0 

4. Balance test [(2) - (3)] 39,185,170

5. Unfunded Actuarial Accrued Liability

as of July 1, 2015 $39,185,170

Exhibit 17 AIPT 469
Exhibit 18

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, 2014 and July 1, 2015 is shown 

below.

7/1/2014 7/1/2015

1. Present Value of vested Accumulated Plan Benefits

a. Retired participants $67,482,384 $67,187,293

b. Disabled participants 1,906,050 2,289,965

c. Beneficiaries 5,772,517 6,000,818

d. Terminated vested participants 7,823,054 9,116,215

e. Active participants 6,984,694 6,757,848

f. Total 89,968,699 91,352,139

2. Present Value of non-vested Accumulated Plan Benefits 3,876,081 3,534,156

3. Present Value of all Accumulated Plan Benefits

[(1f) + (2)] 93,844,780 94,886,295

4. Market Value of Assets 61,268,718 56,786,143

5. Funded percentage on Market Value of Assets

a. Vested benefits

[(4) ÷ (1f)] 68.10% 62.16%

b. All benefits

[(4) ÷ (3)] 65.29% 59.85%

6. Actuarial Value of Assets $55,193,938 $55,701,125

7. Funded percentage on Actuarial Value of Assets

a. Vested benefits

[(6) ÷ (1f)] 61.35% 60.97%

b. All benefits

[(6) ÷ (3)] 58.81% 58.70%

Exhibit 17 AIPT 470
Milliman Actuarial Valuation 

July 1, 2015 Actuarial Valuation 

Alaska Ironworkers Pension Plan 

Exhibit 19 

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, 2014 to July 1, 2015 is shown below. 

1. Present Value of all Accumulated Plan Benefits as of July 1, 2014 $93,844,780 

2. Changes 

a. Reduction in discount period 5,629,712 

b. Benefits accumulated 320,729 

c. Benefit payments 7,654,800 

d. Plan amendments 0 

e. Change in assumptions 3,254,301 

f. Actuarial (gain) / loss (508,427) 

g. Total 

[(a) + (b) - (c) + (d) + (e) + (f)] 1,041,515 

3. Present Value of all Accumulated Plan Benefits as of July 1, 2015 

[(1) + (2g)] $94,886,295 

Exhibit 17 AIPT 471
Exhibit 20

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 and certain benefits 

such as death and disability benefits which are not considered vested. These liabilities have been determined 

as of June 30, 2014 and June 30, 2015. However, if there is a termination by mass withdrawal during the 

year, a separate calculation would have to be performed.

6/30/2014 6/30/2015

1. Present value of vested accumulated plan benefits

a. Retired participants $67,482,384 $67,187,293

b. Disabled participants 1,906,050 2,289,965

c. Beneficiaries 5,772,517 6,000,818

d. Terminated vested participants 7,823,054 9,116,215

e. Active participants 6,984,694 6,757,848

f. Total vested benefits 89,968,699 91,352,139

2. Additional Vested Benefit Liability 

for Unamortized Benefit Reductions 1,850,336 1,728,363

3. Total Vested Benefit Liability 91,819,035 93,080,502

4. Market Value of Assets 61,268,718 56,786,143

5. Funded ratio

[(4) ÷ (3)] 66.73% 61.01%

6. Unfunded Vested Benefit Liability

[(3) - (4), but not less than $0] $30,550,317 $36,294,359

Exhibit 17 AIPT 472